In the last trading session, the stock price of Encana Corp (USA)(NYSE:ECA) declined almost 1% to close the day at $9.33. The market cap of firm was recorded at around $9 billion. Earlier in July, the company reported that its performance in the second quarter of the year has brought it well ahead in the first year of its 5-year plan. Led by strong oil and condensate performance, a growingly liquids-weighted portfolio and reduced costs, the company expanded corporate margin.
During the release of the second quarter results, Encana reported that core asset growth is moving ahead of schedule and it has increased its premium return well inventory and type curves. The company has increased total liquids manufacturing and reduced costs in its 2017 corporate projection. Doug Suttles, reported that the quarterly report highlight their resilience and showcase that they can achieve quality corporate gains through the commodity cycle.
The shift to a balanced production mix, robust oil and condensate performance and lower costs are leading in margin expansion. For the third year in a row, the company strengthened its balance sheet. Suttles added that led by innovation and operational excellence, they continue to expand their premium return well inventory.
The updated projection reflects their strong performance, efficiency and confidence. Encana is generating significant momentum and in fact is well positioned for next year when it projects to grow within cash flow.
The company reported that second quarter total production came at 316,000 BOE/d, including liquids output of 124,900 bbls/d, of which 80% was condensate and oil. Liquids volumes in the second quarter accounted for around 40% of its total production mix, a gain of 35% in the first quarter. The firm’s core assets constituted 246,500 BOE/d, representing around 80% of total production. Natural gas output came at average 1,146 MMcf/d.