By January 4, 2017 Read More →

Encana expects 2017 margins to top previous forecast


Encana has downsized some of its operations, allowing the company to focus on its Montney, Duvernay plays in Western Canada and Eagle Ford and Permian plays in the United States. Company photo.

Encana dropping costs, increasing output

Jan 4 (Reuters) – Canadian oil and natural gas producer Encana Corp said on Wednesday it expects its margins in 2017 to exceed its previous target on lower costs and an expected rise in output in the second half of this year.

The company also said it expects production from its core assets to be in the upper range, or exceed its previous forecast of 15-20 per cent growth, between the fourth quarter of this year and the corresponding period last year.

Encana has downsized operations to focus on four core North American plays – the Montney and Duvernay in Western Canada, and the Eagle Ford and Permian in the United States.

The company said it expects its corporate margin to be above $10 per barrel of oil equivalent (boe) in 2017, higher than the $8 per boe it had forecast at its investor day in October.

The Calgary-based company is scheduled to report its fourth-quarter results and 2017 budget on Feb 16.

(Reporting by Arathy S Nair in Bengaluru; Editing by Shounak Dasgupta)

Posted in: Canada

Comments are closed.