Encana profit plunges but oil, natural gas production rises

|About: Encana Corporation (ECA)|By:, SA News Editor

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.