Encana Corporation continued to deliver strong operational performance and solid financial results in the third quarter of 2011, growing natural gas and liquids production by 6 percent per share from the third quarter of 2010.
Encana generated third quarter cash flow of US$1.2 billion, or $1.57 per share, and operating earnings were $171 million, or 23 cents per share. Encana’s commodity price hedges contributed $146 million in realized after-tax gains, or 20 cents per share, to cash flow. Total production in the third quarter was approximately 3.51 billion cubic feet of gas equivalent per day (Bcfe/d), an increase of 190 million cubic feet equivalent per day (MMcfe/d) from the same quarter of 2010.
“ Encana delivered another excellent quarter in every aspect of its operations, achieving solid cash flow and operating earnings. Our third-quarter production growth of 6 percent per share puts us in line to achieve our 2011 targeted growth range of 5 to 7 percent per share. We are highly focused on core initiatives that will strengthen our financial capacity and position us for future growth. Through the expanded application of our resource play hub model – highly integrated and optimized production facilities that continually improve efficiencies – we continue to lower our capital and operating cost structures. The competitive sale of select midstream assets frees up capital for reinvestment in higher-return upstream projects. Recent transactions include agreements to sell a portion of our Piceance midstream assets and our interest in the Cabin Gas Plant for a total of about $800 million, and we are well advanced in the sale process for our midstream assets in the Cutbank Ridge area. The sales process for our North Texas Barnett shale assets is also moving ahead ,” said Randy Eresman, Encana’s President & Chief Executive Officer .
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Source: Encana, October 20, 2011