Encana vows to boost oil, gas field output

Firm says most growth this year to come from Texas, Canadian assets “We are wellpositioned to execute another year of ... growth,” says CEO Doug Suttles.

CALGARY— The chief executive of Encana Corp. says the company will ramp up output from its U.S. and Canadian oil and gas fields this year after it reported first-quarter operating earnings and production that missed analyst expectations.

“We are well-positioned to execute another year of strong growth for Encana as we prepare to cross the 400,000 boe (barrels of oil equivalent) per day milestone later this year,” Doug Suttles said.

Encana reported first-quarter production of 324,400 barrels of oil equivalent per day, with 145,200 barrels per day of more valuable oil and natural gas liquids and the rest dry natural gas.

That’s up from 317,900 boe per day in the same period last year, but short of analyst expectations of 338,000 boe per day, according to a report from ana- lyst Kristopher Zack of Desjardins Capital Markets.

He said the miss is partly due to timing of drilling wells and producing from them.

Encana is focused on the Permian and Eagle Ford regions in Texas and the Montney and Duvernay regions on the Alberta-B.C. border. It said most of its growth this year will come from its Permian and Montney assets.

Encana said it expects fourthquarter production this year to be between 400,000 and 425,000 boe per day. It left its 2018 spending plan unchanged at between $1.8 billion (U.S.) and $1.9 billion.

The firm, which reports in U.S. dollars, had operating income of $156 million in the three months ended March 31, missing expectations of $168 million according to Thomson Reuters.