July 28, 2017 - 7:22 AM EDT
Print Email Article Font Down Font Up Charts

Earnings Review and Free Research Report: Encana Reported Blowout Quarter; Revenue Rocketed 19.5%

LONDON, UK / ACCESSWIRE / July 28, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on Encana Corp. (NYSE: ECA), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=ECA, following the Company's announcement of its second quarter fiscal 2017 results on July 21, 2017. Canada's No. 2 oil and gas producer outperformed top and bottom-line expectations. The Company increased its total liquids production and lowered costs in its updated 2017 corporate guidance. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at: http://protraderdaily.com/register/.

At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on ECA. With the links below you can directly download the report of your stock of interest-free of charge at: http://protraderdaily.com/optin/?symbol=ECA.

Earnings Reviewed

For the second quarter ended June 30, 2017, EnCana's revenue soared 197.5% to $1.08 billion, compared to revenue of $364 million in Q2 2016. The Company's revenue numbers exceeded analysts' expectations of $773.2 million.

Encana delivered Q2 2017 net earnings of $331 million, or $0.34 per share, compared to net loss of $601 million, or $0.71 per share, in Q2 2016. The Company's non-GAAP earnings, adjusted for non-recurring gains, totaled $0.18 per share, topping Wall Street's expectations for earnings of $0.04 per share.

Segment Information

During Q2 2017, Encana delivered total production of 316,000 BOE/d, including total liquids production of 124,900 bbls/d, of which 80% was oil and condensate. The Company's reported quarter liquids volumes accounted for approximately 40% of its total production mix, up from 35% in Q1 2017. Encana's core assets contributed 246,500 BOE/d, representing almost 80% of total production and up 9,200 BOE/d from the previous quarter. The Company's natural gas production averaged 1,146 million cubic feet per day (MMcf/d) in the reported quarter.

Driving Cost Efficiencies

On a per unit basis, Encana's combined Q2 2017 operating costs (excluding long-term incentives) and transportation and processing costs were down $0.34 per BOE compared to Q1 2017. Operational improvements and productivity gains across its portfolio through H1 2017 strengthened Encana, and the Company now expects that it can deliver its five-year growth plan announced in October 2016 in a flat $50 WTI oil price environment.

Managing Risk

In the earnings release, Encana stated that it has protected over 75% of its expected oil, condensate, and natural gas production for the remainder of 2017 and has limited its exposure to AECO natural gas and Midland oil regional pricing through 2020 through a combination of term financial basis hedging and physical transportation agreements.

As at June 30, 2017, Encana had hedged approximately 88,000 bbls/d of expected 2017 oil and condensate production for the balance of the year using a variety of structures at an average price of $49.73 per barrel (bbl). The company has hedged approximately 865 MMcf/d of expected 2017 natural gas production for the balance of the year using a variety of structures at an average price of $3.10 per thousand cubic feet (Mcf).

For 2018, Encana has hedged approximately 31,000 bbls/d of expected oil and condensate production at an average price of $55.45 per bbl and approximately 650 MMcf/d of expected natural gas production at an average price of $3.07 per Mcf.

Cash Matters

During Q2 2017, Encana generated cash from operating activities of $218 million. The Company's non-GAAP cash flow was $351 million in the reported quarter, compared to $278 million in the previous quarter.

Encana expects that by year-end 2017 its net debt to adjusted EBITDA ratio will be approximately two times and that it will have total liquidity of over $5 billion. Encana has no debt maturities until 2019 and almost 75% of its long-term debt is not due until 2030 and beyond.

Completes Divestiture

On July 26, 2017, Encana announced that its wholly-owned subsidiary, Encana Oil & Gas (USA) Inc., has completed the previously announced sale of its Piceance natural gas assets, located in northwestern Colorado, to Denver-based Caerus Oil and Gas LLC.

Outlook

Encana maintained its original capital investment guidance range while lowering expected costs and increasing expected production growth from its core assets from Q4 2016 to Q4 2017 to be between 25% to 30%.

Stock Performance

On Thursday, July 27, 2017, the stock closed the trading session at $10.29, climbing 2.69% from its previous closing price of $10.02. A total volume of 18.74 million shares have exchanged hands, which was higher than the 3-month average volume of 12.74 million shares. Encana's stock price surged 21.63% in the last one month and 34.69% in the previous twelve months. The stock has a dividend yield of 0.58% and currently has a market cap of $10.01 billion.

Pro-Trader Daily:

Pro-Trader Daily (Pro-TD) produces regular sponsored and non-sponsored reports, articles, stock market blogs, and popular investment newsletters covering equities listed on NYSE and NASDAQ and Canadian stocks. PRO-TD has two distinct and independent departments. One department produces non-sponsored analyst certified content, generally in the form of press releases, articles, and reports covering equities listed on NYSE and NASDAQ, and the other produces sponsored content (in most cases not reviewed by a registered analyst), which typically consists of compensated investment newsletters, articles, and reports covering listed stocks and micro-caps. Such sponsored content is outside the scope of procedures detailed below.

PRO-TD has not been compensated, directly or indirectly, for producing or publishing this document.

PRESS RELEASE PROCEDURES:

The non-sponsored content contained herein has been prepared by a writer (the ''Author'') and is fact checked and reviewed by a third party research service company (the ''Reviewer'') represented by a credentialed financial analyst [for further information on analyst credentials, please email contact@protraderdaily.com]. Rohit Tuli, a CFA® charterholder (the ''Sponsor''), provides necessary guidance in preparing the document templates. The Reviewer has reviewed and revised the content, as necessary, based on publicly available information which is believed to be reliable. Content is researched, written, and reviewed on a reasonable-effort basis. The Reviewer has not performed any independent investigations or forensic audits to validate the information herein. The Reviewer has only independently reviewed the information provided by the Author according to the procedures outlined by PRO-TD. PRO-TD is not entitled to veto or interfere in the application of such procedures by the third-party research service company to the articles, documents, or reports, as the case may be. Unless otherwise noted, any content outside of this document has no association with the Author or the Reviewer in any way.

NO WARRANTY

PRO-TD, the Author, and the Reviewer are not responsible for any error which may be occasioned at the time of printing of this document or any error, mistake, or shortcoming. No liability is accepted whatsoever for any direct, indirect, or consequential loss arising from the use of this document. PRO-TD, the Author, and the Reviewer expressly disclaim any fiduciary responsibility or liability for any consequences, financial or otherwise, arising from any reliance placed on the information in this document. Additionally, PRO-TD, the Author, and the Reviewer do not (1) guarantee the accuracy, timeliness, completeness, or correct sequencing of the information, or (2) warrant any results from use of the information. The included information is subject to change without notice.

NOT AN OFFERING

This document is not intended as an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed, and is to be used for informational purposes only. Please read all associated disclosures and disclaimers in full before investing. Neither PRO-TD nor any party affiliated with us is a registered investment adviser or broker-dealer with any agency or in any jurisdiction whatsoever. To download our report(s), read our disclosures, or for more information, visit http://protraderdaily.com/disclaimer/.

CONTACT

For any questions, inquiries, or comments reach out to us directly. If you're a company we are covering and wish to no longer feature on our coverage list, contact us via email and/or phone between 09:30 EDT to 16:00 EDT from Monday to Friday at:

Email: contact@protraderdaily.com
Phone Number: (917) 341.4653
Office Address: Mainzer Landstrasse 50 Frankfurt am Main, Germany 60325

CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.

SOURCE: Pro-Trader Daily


Source: ACCESSWIRE Investor Awareness (July 28, 2017 - 7:22 AM EDT)

News by QuoteMedia
www.quotemedia.com
Tags:

Legal Notice