Encana Corp. (NYSE: ECA) reported a quarterly operating profit that topped analysts' estimates and boosted its 2017 capex target by 50% from a year earlier.
Crude prices are recovering from a two-year slump, prompting oil producers to raise their capital expenditure targets for the year and ramp up drilling and well completions.
The Calgary, Alberta-based company said its capex for the year would range between $1.6 billion and $1.8 billion.
Encana has also narrowed operations to focus on four core North American plays: the Montney and Duvernay in Western Canada, and the Eagle Ford Shale and Permian in the U.S.
The company's oil and NGL production fell nearly 25% to average 108,900 barrels per day in the fourth quarter, while natural gas output fell 19% to 1.28 billion cubic feet per day.
However, Encana's operating expenses nearly halved to $876 million in the quarter, helping it beat analysts' profit estimates for the third straight quarter.
Encana's operating profit, which excludes one-time items, was 9 cents per share, well above 3 cents per share estimated by analysts, according to Thomson Reuters I/B/E/S.
The company's net loss narrowed to $281 million for the three months ended Dec. 31 from $612 million a year earlier, when it took an impairment charge of $805 million.
Recommended Reading
Biden Administration Criticized for Limits to Arctic Oil, Gas Drilling
2024-04-19 - The Bureau of Land Management is limiting new oil and gas leasing in the Arctic and also shut down a road proposal for industrial mining purposes.
PHX Minerals’ Borrowing Base Reaffirmed
2024-04-19 - PHX Minerals said the company’s credit facility was extended through Sept. 1, 2028.
SLB’s ChampionX Acquisition Key to Production Recovery Market
2024-04-19 - During a quarterly earnings call, SLB CEO Olivier Le Peuch highlighted the production recovery market as a key part of the company’s growth strategy.
Exclusive: The Politics, Realities and Benefits of Natural Gas
2024-04-19 - Replacing just 5% of coal-fired power plants with U.S. LNG — even at average methane and greenhouse-gas emissions intensity — could reduce energy sector emissions by 30% globally, says Chris Treanor, PAGE Coalition executive director.
Energy Transition in Motion (Week of April 19, 2024)
2024-04-19 - Here is a look at some of this week’s renewable energy news, including the latest on global solar sector funding and M&A.