Encana profit plunges but oil, natural gas production rises


Encana (ECA +0.8%) shares are higher after reporting a steeper than expected drop in Q2 earnings but revenues fell less than expected

Q2 output of oil and natural gas liquids increased 43% Y/Y to 68.2K bbl/day, while natural gas production fell 8% to 2.54B cf/day; citing strong YTD results, ECA raised its 2014 total liquids production forecast to 86K-91K bbl/day from 68K-73K.

Q2 cash flow fell to $656M from $665M, but raised its 2014 cash flow guidance to $3.4B-$3.6B from its prior estimate of $2.9B-$3B.

Analysts say ECA's overall outlook is positive given rapid progress in switching to more liquids production and cutting drilling costs.

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Comments (1)
  • starcorral
    , contributor
    Comments (1717) | Send Message
     
    The first half of the the year was all about Encana buying and selling for strategic positioning in the market. I can't imagine how one might look at the current figures and draw any conclusion other than the management is acting confidently and aggresively. The Beta is not at all scary and there seems much greater upside potential than downside risk. With all the other problems in the world and in the U. S. today, energy is relegated to asterisks and footnotes for now.
    24 Jul 2014, 04:29 PM Reply Like
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