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Encana (ECA) Earnings, Revenues Beat Estimates in Q1
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Calgary, Alberta-based Encana Corporation reported first-quarter 2017 operating earnings per share of 11 cents, ahead of the Zacks Consensus Estimate of 4 cents. Further, the bottom line improved from the year-ago period loss of 15 cents per share amid declining natural gas prices and volumes. Improvement in the top line, higher realized prices and reduction in the costs drove better results.
Quarterly revenues – at $1,297 million – came above the Zacks Consensus Estimate of $789 million. Moreover, revenues were 72% higher than the prior-year figure of $753 million.
Production & Prices
Quarterly natural gas production declined approximately 18% year over year to 1,241 million cubic feet per day, while liquids production fell 15% year over year to 110.9 thousand barrels per day.
Encana's realized natural gas price was $2.50 per thousand cubic feet, up 14.6% from the year-ago quarter level of $2.18. Meanwhile, realized liquids price rose to $43.45 per barrel from $33.09 in the first quarter of 2016 reflecting an increase of 31.3%.
Costs & Expenses
Total operating expenses reduced by 55.4% from first-quarter 2016 to $800 million. The decrease is primarily attributed to the reduction in impairment charges.
Specifically, Encana reported operating costs of $132 million for the reported quarter, 20% lower than the year-ago quarter level. Further, transportation and processing expenses fell 28% to $187 million.
Capital Spending and Balance Sheet
Encana's capital investments during the quarter were $399 million. As of Mar 31, 2017, cash and cash equivalent was $523 million and long-term debt was $4,198 million. This represents a debt-to-capitalization ratio of 39%.
Encana Corporation Price, Consensus and EPS Surprise
Encana is a focused pure-play natural gas exploration and production company. It is the second largest gas producer in North America with land and resources in a number of the region's promising shale and tight gas resource plays. The company under Zacks Oil and Gas Production & ExplorationCanadianindustry currently carries a Zacks Rank #3 (Hold).
Some better-ranked players from the broader energy space include Penn Virginia Corp. W&T Offshore, Inc (WTI - Free Report) and Rice Midstream Partners LP . While Penn Virginia sports a Zacks Rank #1 (Strong Buy), W&T Offshore and Rice Midstream carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
In the last four quarters, Penn Virginia posted an average positive earnings surprise of 36.67%.
W&T Offshore reported a positive earnings surprise of 50.53% in the preceding four quarters.
Rice Midstream posted a positive earnings surprise of 70.93% in the trailing four quarters.
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Encana (ECA) Earnings, Revenues Beat Estimates in Q1
Calgary, Alberta-based Encana Corporation reported first-quarter 2017 operating earnings per share of 11 cents, ahead of the Zacks Consensus Estimate of 4 cents. Further, the bottom line improved from the year-ago period loss of 15 cents per share amid declining natural gas prices and volumes. Improvement in the top line, higher realized prices and reduction in the costs drove better results.
Quarterly revenues – at $1,297 million – came above the Zacks Consensus Estimate of $789 million. Moreover, revenues were 72% higher than the prior-year figure of $753 million.
Production & Prices
Quarterly natural gas production declined approximately 18% year over year to 1,241 million cubic feet per day, while liquids production fell 15% year over year to 110.9 thousand barrels per day.
Encana's realized natural gas price was $2.50 per thousand cubic feet, up 14.6% from the year-ago quarter level of $2.18. Meanwhile, realized liquids price rose to $43.45 per barrel from $33.09 in the first quarter of 2016 reflecting an increase of 31.3%.
Costs & Expenses
Total operating expenses reduced by 55.4% from first-quarter 2016 to $800 million. The decrease is primarily attributed to the reduction in impairment charges.
Specifically, Encana reported operating costs of $132 million for the reported quarter, 20% lower than the year-ago quarter level. Further, transportation and processing expenses fell 28% to $187 million.
Capital Spending and Balance Sheet
Encana's capital investments during the quarter were $399 million. As of Mar 31, 2017, cash and cash equivalent was $523 million and long-term debt was $4,198 million. This represents a debt-to-capitalization ratio of 39%.
Encana Corporation Price, Consensus and EPS Surprise
Encana Corporation Price, Consensus and EPS Surprise | Encana Corporation Quote
Zacks Rank & Key Picks
Encana is a focused pure-play natural gas exploration and production company. It is the second largest gas producer in North America with land and resources in a number of the region's promising shale and tight gas resource plays. The company under Zacks Oil and Gas Production & ExplorationCanadianindustry currently carries a Zacks Rank #3 (Hold).
Some better-ranked players from the broader energy space include Penn Virginia Corp. W&T Offshore, Inc (WTI - Free Report) and Rice Midstream Partners LP . While Penn Virginia sports a Zacks Rank #1 (Strong Buy), W&T Offshore and Rice Midstream carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
In the last four quarters, Penn Virginia posted an average positive earnings surprise of 36.67%.
W&T Offshore reported a positive earnings surprise of 50.53% in the preceding four quarters.
Rice Midstream posted a positive earnings surprise of 70.93% in the trailing four quarters.
5 Trades Could Profit "Big-League" from Trump Policies
If the stocks above spark your interest, wait until you look into companies primed to make substantial gains from Washington's changing course. Today Zacks reveals 5 tickers that could benefit from new trends like streamlined drug approvals, tariffs, lower taxes, higher interest rates, and spending surges in defense and infrastructure. See these buy recommendations now >>