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Encana (ECA) Q3 Earnings Miss Estimates on Lower Production
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Exploration and production company, Encana Corporation reported third-quarter 2017 operating earnings of 2 cents per share, missing the Zacks Consensus Estimate of 5 cents. Further, the bottom line declined from 4 cents per share reported in the year-ago quarter. Lower production adversely impacted results.
Quarterly revenues of $861 million however beat the Zacks Consensus Estimate of $827 million due to a rise in realized commodity prices. However, revenues were 12.1% lower than the prior-year figure of $979 million.
Encana Corporation Price, Consensus and EPS Surprise
Quarterly natural gas production declined approximately 29% year over year to 939 million cubic feet per day, while liquids production rose 9% year over year to 127.5 thousand barrels per day. Total production declined 16% to 284 thousand barrels of oil equivalent per day (MBoe/d).
Encana's realized natural gas price was $2.23 per thousand cubic feet, up 10.4% from the year-ago quarter level of $2.02. Meanwhile, liquids price rose marginally to $41.86 per barrel from $41.82 in the third quarter of 2016.
Costs & Expenses
Total operating expenses increased 1.7% from third-quarter 2016 to $865 million. The rise is primarily attributed to an increase in depreciation, depletion and amortization charges.
Encana reported operating costs of $132 million, 9% lower than the year-ago quarter level. Also, transportation and processing expenses fell 1.5% to $199 million. Administrative expenses were down 5.5% to 86 million.
Capital Spending and Balance Sheet
Encana's capital investments during the quarter were $473 million. As of Sep 30, 2017, cash and cash equivalent was $889 million and long-term debt was $4,197 million. This, in turn, represents a debt-to-capitalization ratio of 37.6%.
About the Company
Based in Calgary, Alberta, Encana is a focused pure-play natural gas exploration and production (E&P) company. It is the second largest gas producer in North America, holding a highly competitive land and resource position among a number of promising shale and tight gas resource plays in the region. This provides the company with a low risk, long-life and a sustainable growth profile.
Q3 Price Performance
Encana has gained 33.8% in the third quarter compared with 18.1% growth of its industry.
Braskem’s 2017 earnings are expected to grow 12.1% year over year. The company delivered a positive earnings surprise of 68.5% in the second quarter of 2017.
Par Pacific’s sales for 2017 are expected to increase 28.5% year over year. The company delivered an average positive earnings surprise of 203% in the last four quarters.
Northern Oil and Gas’s sales for 2017 are expected to increase 44.1% year over year. The company delivered an average positive earnings surprise of 66.7% in the last four quarters.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +18.8% from 2016 - Q1 2017, our top stock-picking screens have returned +157.0%, +128.0%, +97.8%, +94.7%, and +90.2% respectively.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - Q1 2017, the composite yearly average gain for these strategies has beaten the market more than 11X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
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Encana (ECA) Q3 Earnings Miss Estimates on Lower Production
Exploration and production company, Encana Corporation reported third-quarter 2017 operating earnings of 2 cents per share, missing the Zacks Consensus Estimate of 5 cents. Further, the bottom line declined from 4 cents per share reported in the year-ago quarter. Lower production adversely impacted results.
Quarterly revenues of $861 million however beat the Zacks Consensus Estimate of $827 million due to a rise in realized commodity prices. However, revenues were 12.1% lower than the prior-year figure of $979 million.
Encana Corporation Price, Consensus and EPS Surprise
Encana Corporation Price, Consensus and EPS Surprise | Encana Corporation Quote
Production & Prices
Quarterly natural gas production declined approximately 29% year over year to 939 million cubic feet per day, while liquids production rose 9% year over year to 127.5 thousand barrels per day. Total production declined 16% to 284 thousand barrels of oil equivalent per day (MBoe/d).
Encana's realized natural gas price was $2.23 per thousand cubic feet, up 10.4% from the year-ago quarter level of $2.02. Meanwhile, liquids price rose marginally to $41.86 per barrel from $41.82 in the third quarter of 2016.
Costs & Expenses
Total operating expenses increased 1.7% from third-quarter 2016 to $865 million. The rise is primarily attributed to an increase in depreciation, depletion and amortization charges.
Encana reported operating costs of $132 million, 9% lower than the year-ago quarter level. Also, transportation and processing expenses fell 1.5% to $199 million. Administrative expenses were down 5.5% to 86 million.
Capital Spending and Balance Sheet
Encana's capital investments during the quarter were $473 million. As of Sep 30, 2017, cash and cash equivalent was $889 million and long-term debt was $4,197 million. This, in turn, represents a debt-to-capitalization ratio of 37.6%.
About the Company
Based in Calgary, Alberta, Encana is a focused pure-play natural gas exploration and production (E&P) company. It is the second largest gas producer in North America, holding a highly competitive land and resource position among a number of promising shale and tight gas resource plays in the region. This provides the company with a low risk, long-life and a sustainable growth profile.
Q3 Price Performance
Encana has gained 33.8% in the third quarter compared with 18.1% growth of its industry.
Zacks Rank and Stocks to Consider
Encana currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the oil and energy sector are Braskem S.A. (BAK - Free Report) , Par Pacific Holdings, Inc. (PARR - Free Report) and Northern Oil and Gas, Inc. (NOG - Free Report) . All these sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Braskem’s 2017 earnings are expected to grow 12.1% year over year. The company delivered a positive earnings surprise of 68.5% in the second quarter of 2017.
Par Pacific’s sales for 2017 are expected to increase 28.5% year over year. The company delivered an average positive earnings surprise of 203% in the last four quarters.
Northern Oil and Gas’s sales for 2017 are expected to increase 44.1% year over year. The company delivered an average positive earnings surprise of 66.7% in the last four quarters.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +18.8% from 2016 - Q1 2017, our top stock-picking screens have returned +157.0%, +128.0%, +97.8%, +94.7%, and +90.2% respectively.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - Q1 2017, the composite yearly average gain for these strategies has beaten the market more than 11X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
See Them Free>>