- Encana (NYSE:ECA) -0.3% premarket after reporting Q4 earnings that fell far short of estimates and cutting its capital spending and cash flow guidance for the year.
- ECA says it will slash 2015 capex by ~25% to US$2B-US$2.2B from its earlier guidance of $2.7B-$2.9B, and it now sees cash flow of $1.4B-$1.6B for the year, down from its previously announced $2.5B-$2.7B.
- ECA's original capital budget for 2015 was based on an oil price of $70/bbl for West Texas crude, while its updated budget is based on $50/bbl.
- ECA, which has been shifting its focus to oil and gas liquids and away from natural gas, says Q4 liquids production averaged 106.4K bbl/day, up 61% Y/Y, as realized liquids prices fell 0.9% to $66.40/bbl; natural gas output fell nearly a third to 1.9B cf/day, while realized nat gas prices fell 4% to $4.16/Mcf.
- Q4 cash flow fell 44% to $377M, largely due to higher taxes and one-time costs associated with last year's $5.9B purchase of Athlon Energy.