Canada’s Encana Posts 2Q Profit
Canada’s Encana, a major player in the Permian basin in the US and the Montney basin in Canada, said July 31 it had net earnings in 2Q 2019 of $336mn (C$441mn), reversing a 2Q 2018 loss of $151mn.
The company attributed the reversal to strong liquids production and cost focus.
“Encana is performing exceptionally well,” Encana CEO Doug Suttles said. “The combination of our high-quality portfolio and relentless focus on efficiency is delivering strong returns, growth and free cash flow.”
Cash from operations nearly doubled, to $906mn from $475mn, while non-GAAP cash flow rose to $877mn from $586mn.
Total production in the quarter averaged 591,800 barrels of oil equivalent/day, up 11% on a pro-forma basis after accounting for the acquisition earlier this year of Newfield Exploration.
Reportable natural gas production averaged 1.6bn ft3/day in 2Q 2019, up from 1.1bn ft3/day in 2Q 2018. Pro-forma natural gas production in 2Q 2018 was 1.52bn ft3/day.
In Canada, Encana’s Montney gas production averaged 922mn ft3/day, up from 826mn ft3/day, while in the US, its Permian gas production increased to 95mn ft3/day from 82mn ft3/day. The Newfield acquisition added 263mn ft3/day of production, bringing Encana’s total US gas production to 494mn ft3/day in 2Q 2019 from 143mn ft3/day in 2Q 2018.
The company reports in US dollars.