Encana Says Q4 Performance Strong; Firmly On Track To Meet Or Beat Targets

(RTTNews) - Encana (ECA.TO, ECA) Tuesday said it has delivered strong performance through the fourth quarter of 2017 and that it is firmly on track to meet or exceed the targets in the five-year plan shared at its Investor Day in October 2017.

Encana said its core assets delivered production growth of approximately 31 percent in the fourth quarter. This growth significantly exceeds the company's original target of greater than 20 percent and is above the top end of its revised 25 to 30 percent guidance range. Encana accomplished this growth with a capital investment of approximately $1.8 billion.

In the Montney, liquids production more than doubled, driven by a focus on condensate rich wells and the early start-up of the Tower, Saturn and Sunrise processing plants.

In the fourth quarter, Encana further focused its portfolio with the sale of most of its Wheatland assets in south central Alberta. These assets consisted of approximately 520,000 net acres and approximately 4,750 gas wells. In 2017, Encana's production from the assets was approximately 60 million cubic feet per day of natural gas.

In 2018, Encana expects to grow its liquids production as it fills capacity at the new plants and completes two additional liquids hubs in the second half of the year.

The company expects its 2018 capital program will be similar to 2017 with modest allocation adjustments to optimize delivery. Encana plans to invest virtually all its anticipated 2018 capital in its core assets, with around 70 percent directed to the Permian and Montney. The company anticipates between 25 to 35 percent production growth from its core assets in the fourth quarter of 2018, with significant oil and condensate growth in the second half of the year.

The company plans to issue 2018 guidance along with its 2017 fourth quarter and year-end results on February 15.