Free Research Report as Encana’s Quarterly Non-GAAP Operating Earnings Advanced 50%
Stock Monitor: Aegean Marine Petroleum Network Post Earnings Reporting
LONDON, UK / ACCESSWIRE / May 29, 2018 / If you want access to our free earnings report on Encana Corp. (NYSE: ECA), all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=ECA. The Company reported its financial results on May 01, 2018, for the first quarter of the fiscal year 2018 ended March 31, 2018. Encana's first quarter financial and operating performance has the Company firmly on track to deliver more than 30% of annual production growth within expected cash flow. Besides, the Company surpassed analysts' estimates for earnings and revenues in Q1 FY18. Register today and get access to over 1,000 Free Research Reports by joining our site below:
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Active-Investors.com is currently working on the research report for Aegean Marine Petroleum Network Inc. (NYSE: ANW), which also belongs to the Basic Materials sector as the Company Encana. Do not miss out and become a member today for free to access this upcoming report at:
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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Encana most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:
www.active-investors.com/registration-sg/?symbol=ECA
Earnings Highlights and Summary
For Q1 FY18, Encana's net revenues reached $1.31 billion, reflecting an increase of 1.86% from $1.29 billion in Q1 FY17. The Company's revenue numbers exceeded analysts' consensus estimates of $1.11 billion. For the quarter under review, the Company's product and service revenues advanced 34.9% to $1.26 billion on a y-o-y basis.
Encana's total liquids production was 145,200 barrels per day (bbls/d) in the reported quarter, up 31% from the previous year's same quarter. The Company's Permian production was 83,800 barrels of oil equivalent per day (BOE/d) in Q1 FY18, up 49% on a y-o-y basis.
During Q1 FY18, Encana incurred operating expenses of $976 million, 22% higher than $800 million in Q1 FY17. The Company's operating income fell 31.08% to $337 million in the reported quarter from $489 million in the previous year's comparable quarter.
For the quarter ended March 31, 2018, Encana's net earnings were $151 million compared to $431 million in the corresponding period of last year. The Company's diluted earnings per share (EPS) were $0.16 in Q1 FY18 compared to $0.44 in Q1 FY17. The Company's reported earnings included an unrealized gain on risk management, a non-operating foreign exchange loss, and a gain on divestitures. Encana's non-GAAP operating earnings, excluding these special items, were $156 million in Q1 FY18, 50% higher than $104 million in Q1 FY17. The Company's non-GAAP operating EPS were $0.16 in Q1 FY18, higher than analysts' consensus estimates of $0.13.
Segment Details
During Q1 FY18, Encana's Canadian Operations had net revenues of $416 million, up 48.57% on a y-o-y basis. The segment's operating income was $116 million in Q1 FY18 compared to $48 million in Q1 FY17, reflecting an increase of 141.67%.
Encana's US Operations reported revenues of $511 million in Q1 FY18, an increment of 15.09% from Q1 FY17. The segment's operating income was $200 million in the quarter under review, 19.05% higher than $168 million in the previous year's same quarter.
For Q1 FY18, Encana's Market Optimization segment generated revenues of $301 million, 61.83% higher than in the prior year's comparable quarter. The segment had an operating loss of $8 million in Q1 FY18 compared to $15 million in Q1 FY17.
Cash Matters
Encana had cash and cash equivalents of $433 million as on March 31, 2018, 39.78% lower than $719 million as on December 31, 2017. The Company had a long-term debt of $4.20 billion as on March 31, 2018, almost the same as on December 31, 2017.
Encana's cash flow from operating activities was $381 million for the three months ended March 31, 2018, 259.43% higher than $106 million in the corresponding period of last year. The Company had a non-GAAP cash flow of $400 million in the quarter under review, up 43.88% from $278 million in Q1 FY17.
Encana incurred a capital expenditure of $508 million in the reported quarter, an increase of 27.32% from $399 million in the year ago same quarter.
Dividend and Share Repurchase
Encana distributed dividends of $15 million in Q1 FY18, the same as in Q1 FY17. Besides, the Company demonstrated its commitment to shareholder returns and confidence in its five-year plan by declaring a share repurchase program of $400 million, to be funded with cash on hand. The Company purchased and cancelled 10 million common shares for a total consideration of $111 million, through its normal course issuer bid during Q1 FY18.
On April 30, 2018, Encana's Board of Directors declared a dividend of $0.015 per share, payable on June 29, 2018, to common shareholders of record as of June 15, 2018.
Stock Performance Snapshot
May 25, 2018 - At Friday's closing bell, Encana's stock dropped 2.47%, ending the trading session at $12.64.
Volume traded for the day: 11.00 million shares, which was above the 3-month average volume of 9.58 million shares.
Stock performance in the last three-month – up 13.77%; previous six-month period – up 7.57%; and past twelve-month period – up 18.91%
After last Friday's close, Encana's market cap was at $12.48 billion.
Price to Earnings (P/E) ratio was at 14.08.
The stock has a dividend yield of 0.47%.
The stock is part of the Basic Materials sector, categorized under the Major Integrated Oil & Gas industry.
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