Encana Releases 2nd Quarter Earnings
Encana Corporation released 2016 second quarter earnings, announcing they one of the lowest cost, highest performing operators in the Eagle Ford Shale Play.
Related: Encana’s Strong First Quarter
Encana is one of the first oil and gas producers out of gate with 2016 second quarter earnings and operations reports. In their recent conference call, executives focused on their success at reducing costs, increasing capital efficiency and increasing production instead of their loss of $601 million.
Encana is focused on activity in their four core assets at Eagle Ford, Permian, Duvernay and Montney and anticipate they will deliver approximately 13,000 BOE/d of production in the fourth quarter of this year and between 30,000 to 35,000 BOE/d in 2017.
“Our current Eagle Ford pacesetter is just $3 million and this compares to an average of over $8 million when we first entered the play. This pacesetter well cost took us over eight days to drill and was completed with a larger frac intensity. We signaled last quarter that we intended to ramp up our frac intensity and that would add approximately $400,000 per well.”
Highlights include:
- Cash flow up over 75 percent from the previous quarter to $182 million
- 95 percent of capital invested in high return wells in the core four assets; the Permian, Eagle Ford, Duvernay and Montney
- Maintained scale in the core four assets which delivered 268,300 barrels of oil equivalent per day (BOE/d), representing 73 percent of the company’s 368,300 BOE/d total production
- Adding 50 percent more drilling and completions activity to our 2016 program