Encana's Reports Strong First Quarter

Encana's Earnings Report
Encana's Earnings Report

Dramatic cost reductions, operational innovation and Eagle Ford flexibility highlight Encana's first quarter.

Related:Cabot Waits to Resume Eagle Ford Drilling

Encana Corp. announced first quarter results last week, which included total production of 383,400 barrels of oil equivalent per day (BOE/d).  The company reduced drilling and completions costs between 22 -44% over 2015 along with a 20% reduction in general administrative.

We delivered a very strong operational performance during the quarter. We are achieving basin-leading well results in each of our core four plays, both in terms of cost and production performance.
— CEO Douglas James Suttles

Eagle Ford Q1 Highlights

For Q1, Encana reported that their Eagle Ford operations delivered dramatic cost improvements for the sixth consecutive quarter. The flexibility of the company's Eagle Ford assets have made it a a core part of their portfolio.

  • Company expects to increase completions intensity for the remainder of the 2016 program, which will add $400,000 per well
  • Average Q1 D&C cost of $3.5 MM/well – Beat our $4.3 MM D&C cost target – 44% reduction from 2015 average
  •  2 Upper Eagle Ford infill wells drilled on existing 6-well pad
  • Company expects production in Eagle Ford to modestly grow in Q2
The one thing the Eagle Ford gives us is a tremendous amount of flexibility. The acreage is held, “ said Suttles. “This year’s program is largely what we think of as a drill-to-fill program. So we’re not building new facilities; we’re filling in where we have excess facility capacity to get better capital efficiency. But it’s very competitive.