Encana Corp (NYSE:ECA) recorded robust performance through Q4 2017 to end another year successfully implementing its strategy, offering notable oil and condensate progress and driving improved efficiency gains. Boosted by the remarkable finish to 2017, the firm is firmly on track to exceed or meet the targets in the 5-year plan shared on October 2017.
Driven by its focus on execution efficiency and innovation, Encana’s core assets recorded production growth of approximately 31% from Q4 2016 to Q4 2017. This growth considerably exceeds the company’s initial target of greater than 20% and is above the higher end of its revised 25% to 30% guidance range. The company accomplished this milestone with a capital investment of around $1.8 billion.
Doug Suttles, the CEO and President of Encana, expressed that consistent with their plan, they recorded a strong finish to 2017. They have established a remarkable track record of meeting and surpassing their targets, continuously driving capital discipline and efficiency. They are positioned to offer considerable value growth in 2018 while supporting their capital plan from corporate cash flows. The firm expects its 2018 capital plan will be similar to that of 2017 with modest allocation changes to enhance delivery.
Encana intends to invest virtually all its expected 2018 funds in its core assets, with almost 70% directed to the Permian and Montney. The firm expects between 25% to 35% production growth from its major assets from Q4 2017 to Q4 2018, with significant condensate and oil growth in the second half of this year.
The company’s large-scale cube advancement model continues to enhance resource recovery and returns from its stacked, unconventional reservoirs. Encana’s development approach also enhances capital efficiency. Cube development and better completion designs recorded strong show in the Permian where production in fourth quarter surpassed 80,000 BOE/d, well ahead of the firm’s target of 75,000 BOE/d.