Encana bounces back from $151M loss

Company on track to meet production plan for 2019

Encana Corp. says it had a $336 million (U.S.) profit in the second quarter and remains on track to meet its production and capital investment plan for 2019 while reducing costs more than previously projected.

The Calgary-based company’s net income, reported in U.S. currency, amounted to 24 cents per share, a turnaround from a loss of $151 million or 16 cents per share in the second quarter of 2018.

Last year’s second quarter included a $326-million accounting item for unrealized riskmanagement losses, compared with an $83-million unrealized risk-management gain this year.

Encana’s operating earnings were $290 million or 21 cents per share for the three months ended June 30, one cent above analyst estimates from financial markets data firm Refinitiv.

Revenue was $2.06 billion, up from $983 million and in line with estimates, with most of the increase from Encana’s U.S. operations.

Encana says it has raised its annualized cost reduction estimate for 2019 to $175 million from the original $125 million, while capital investment will be between $500 million and $600 million per quarter as previously projected.