Canada’s Encana Posts Strong 4Q, Year

Canadian producer Encana – active in Canada’s Montney basin and in the Permian and Anadarko basins in the US – said February 28 it had 4Q 2018 net earnings of US$1.03bn (C$1.35bn) and full-year earnings of US$1.07bn, up from a loss of US$229mn and earnings of US$827mn in the respective year-earlier periods.

“Encana delivered in 2018, posting another strong year of performance,” CEO Doug Suttles said. “Our results demonstrate the strength of our portfolio and the ability of our people to continually innovate to drive industry leading performance in all areas where we operate.”

Total production averaged 403,400 boe/day in 4Q, up 20% year-on-year, while full year production averaged 361,200 boe/day, with gas comprising about 53.5% of the total.

Natural gas production averaged 1.26bn ft3/day in 4Q 2018, up 20% year-on-year, while full-year natural gas production was 5% higher, at 1.16bn ft3/day.

In February 2019, Encana closed its acquisition of Newfield Exploration, an Anadarko producer that registered 2018 pro-forma production of 555,000 boe/day, 48% of which was natural gas.

“With the addition of the Anadarko basin, Encana has formed a prolific Core 3 with leading positions in top unconventional plays in North America,” the company said. “Core 3 pro-forma 4Q production averaged approximately 465,000 boe/day (51% gas) and full-year pro-forma production comprised 75% of total production, averaging 418,000 boe/d (52% gas).”