- Encana (ECA) -2.5% premarket after saying it will cut its 2016 capital budget by ~25% to $1.5B-$$1.7B and reduce its annual dividend by $0.01.
- ECA says most of its 2016 capital spending, down from this year's $2.2B, will be directed to its four core assets in the Permian and Eagle Ford shale fields in Texas and Montney and Duvernay shale fields in western Canada, and is based on an estimated WTI price of $50/bbl.
- However, ECA estimates its overall 2016 production at 340K-370K boe/day, with output from its core assets at 260K-280K boe/, up 12% from 2015.
- ECA also lowers its dividend to $0.06 from $0.07 and discontinues its dividend reinvestment plan; it expects the moves will save ~$185M/year.