- Encana (ECA +2.3%) CEO Doug Suttles says he is looking to "accelerate, not slow down" in the current environment of declining crude oil prices, which he calls “annoying... not threatening."
- As some competitors cut spending plans for 2015, ECA plans to ramp up activity as it doubles the number of rigs targeting oil in the Permian basin, where it closed a $5.9B deal to buy Athlon Energy last week; the CEO says ECA’s spending won’t exceed cash coming in, and it could moderate drilling if oil prices plunge further.
- Suttles says it’s good that ECA is 24 months ahead of schedule in rebalancing its oil and natural gas liquids output; after swapping gas properties for oil fields, gas now makes up two-thirds of output vs. 90% a year ago.
- Regardless of whether ECA is producing more oil from attractive lands, crude’s price collapse comes at a terrible time, says one analyst: “Losing 30% of your cash flow overnight is definitely going to impact you.”