On Thursday, the stock price of Encana Corp (USA)(NYSE:ECA) gained 0,32% to close the day at $9.29. In the last week of July, the company reported that its subsidiary firm Encana Oil & Gas (USA) Inc., has closed the previously disclosed sale of its Piceance natural gas resources to Caerus Oil and Gas LLC.
BMO Capital Markets worked as Encana’s financial advisor while Davis, Graham & Stubbs served as company’s external legal counsel for the deal. Evercore and TD Securities served as financial counselors for Caerus and Vinson and Elkins and Thompson & Knight served as legal counsel. Debt financing was underwritten by J.P. Morgan, Wells Fargo Bank and TD Securities.
Encana’s financial performance through Q2 2017 has put the firm well ahead in the first year of its 5-year plan. Led by strong condensate and oil growth, a progressively liquids-weighted portfolio along with reduced costs, Encana considerably expanded overall non-GAAP corporate margin.
The company reported that core asset growth is progressing better than planned and it has increased its type curves as well as premium return well inventory. The projections for total liquids production for FY2017 has been changed on positive side.
Doug Suttles, the CEO and President of Encana, reported that the results demonstrate their resilience and highlight that they can offer quality corporate returns across the commodity cycle. The transition to a strong condensate and oil growth, balanced production mix and lower costs are leading corporate margin growth. For the third successive year, the company is considerably strengthening its balance sheet.”
Suttles added that led by operational excellence and innovation, they continue to expand their premium return well inventory. The updated projection reflects their strong performance, confidence and efficiency. They are recording considerable momentum and are well positioned for FY2018 when they anticipate to progress within cash flow, even if there is no change in commodity prices remain as compared to current price levels.