Also in this brief: Encana posted Q2 net earnings of $331 million, premiers meet in Edmonton to discuss Canadian Energy Strategy
According to the CBC, Encana has been named in three lawsuits filed on Monday that are trying to link damages suffered from climate change to the industry’s attempts to slow down action on the issue.
Three California communities argue Encana, along with 19 other international energy majors deliberately promoted misinformation and doubt on climate change and bear responsibility for related damages, including shoreline erosion.
The lawsuits draw on legal precedents used against tobacco companies. The United Nations estimates there are more than 600 similar cases in 24 countries.
Encana posted net earnings of $331 million in Q2
Encana posted a quarterly profit that beat analysts’ expectations and the Calgary-based company has raised its full-year core asset production growth forecast.
On Friday, US and Canadian shares of Encana were up about 3 per cent in trading.
Canada’s No.2 oil and gas producer reported operating earnings of 18 cents per share, beating analysts’ forecasts of 4 cents per share, according to Thomson Reuters.
The company posted net earnings of $331 million, or 34 cents per share in Q2.
In the second quarter of 2016, Encana reported a loss of $601 million, or 71 cents per share. According to Reuters, operating earnings, which include most one-time items, doubled to $180 million.
Encana opted to focus on four core North American assets, including the Montney and Duvernay in Western Canada, and the Eagle Ford and Permian basins in the US.
In May, Encana had forecast its core asset production growth forecast to 20 per cent. On Friday, it upped its estimates for 2017 to between a 25 per cent and 30 per cent growth.
The company says it is on track to meet its capital expenditure forecast of between $1.6 billion and $1.8 billion and production of 320,000 barrels of oil equivalent per day to 330,000 boe/d.
“The fact that it chose to bump up production guidance rather than reduce capex guidance … is an interesting data point,” Cormark Securities analyst Amir Arif told Reuters. The company’s rivals could improve their forecasts following Encana’s lead, he added.
Encana’s core asset production fell to 246,500 boe/d from 268,300 boe/d in Q2 2016. The company’s total oil and gas production fell to 316,000 boe/d, including total liquids production of 124,900 barrels per day (b/d) from 368,300 b/d one year ago.
Canadian Energy Strategy update
Alberta Premier Rachel Notley hosted Canadian premiers in Edmonton to discuss jobs and economic growth.
Premiers discussed the ongoing implementation of the Canadian Energy Strategy (CES), released in July 2015.
The CES is a flexible framework for provinces and territories to realize a common vision for Canada’s energy future. It supports sustainable energy development while also ensuring a globally competitive energy sector.
At last summer’s meeting, the premiers directed ministers to continue collaborative work across the four priority areas including energy efficiency, delivering energy to people, climate change and the transition to a lower carbon economy, and technology and innovation.
Work to date under CES includes collaboration on innovative solutions to reduce diesel use in remote communities, and joint work to support greater adoption of innovative technologies such as zero emission vehicles and renewable energy generation and storage.
Through CES, provinces and territories have also made significant progress in harmonization of energy efficiency standards and influencing of federal product efficiency standards and building codes.
The CES has also advanced opportunities to enhance regional electricity interties and other energy transmission and transportation infrastructure.
These achievements are in addition to ongoing work regionally and within individual provinces and territories supporting the goals and vision of CES.
