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Encana (ECA) Q1 Earnings Beat on Price and Output Gains
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Encana Corporation reported first-quarter 2018 operating earnings of 16 cents per share, surpassing the Zacks Consensus Estimate of 13 cents. Increased liquids production along with higher price realizations drove the better-than-expected results.
The bottom line also improved from 11 cents per share reported in the year-ago quarter. Of late, Encana has successfully repositioned its asset base and transitioned to the more profitable crude. Production growth from its core assets: Permian, Montney, Eagle Ford and Duvernay led the company deliver impressive year-over-year results. The four core assets accounted for 94.8% of Encana’s total production, with Montney assets alone accounting for more than half of its output.
Quarterly revenues of $1,313 million also topped the Zacks Consensus Estimate of $1,110 million. Revenues were also higher than the prior-year figure of $1,289 million.
Encana Corporation Price, Consensus and EPS Surprise
Total first-quarter production came in at 324,400 barrels of oil equivalent per day (BOE/d), compared with 317,900 BOE/d in the prior-year quarter.
Quarterly natural gas production declined approximately 13% year over year to 1,075 million cubic feet per day, while liquids production rose 31% from the prior-year quarter to 145.2 thousand barrels per day.
Encana's realized natural gas price was $2.94 per thousand cubic feet, compared with the year-ago quarter level of $2.50. Meanwhile, realized oil price rose to $55.74 per barrel from $49.66 in the first quarter of 2017.
Costs & Expenses
Total operating expenses increased 22% from first-quarter 2017 to $976 million. The rise is primarily attributed to an increase in depreciation charges and higher purchased products costs.
Capital Spending and Balance Sheet
Encana's capital investments during the quarter were $509 million. As of Mar 31, 2018, cash and cash equivalents were $433 million and long-term debt was $4,198 million. The debt-to-capitalization ratio stood at 38.25%.
Zacks Rank & Key Picks
Based in Calgary, Alberta, Encana is a focused pure-play natural gas exploration and production company, carrying a Zacks Rank #3 (Hold).
Some better-ranked stocks in the oil and energy sector are China Petroleum & Chemical Corporation or Sinopec , Crescent Point Energy Corporation and Canadian Natural Resources Limited (CNQ - Free Report) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Sinopec delivered an average positive earnings surprise of 492.75% in the trailing four quarters.
Crescent Point surpassed earnings estimates in three of the trailing four quarters, with an average of 363.54%.
Canadian Natural delivered an average positive earnings surprise of 0.78% in the trailing four quarters.
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
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Encana (ECA) Q1 Earnings Beat on Price and Output Gains
Encana Corporation reported first-quarter 2018 operating earnings of 16 cents per share, surpassing the Zacks Consensus Estimate of 13 cents. Increased liquids production along with higher price realizations drove the better-than-expected results.
The bottom line also improved from 11 cents per share reported in the year-ago quarter. Of late, Encana has successfully repositioned its asset base and transitioned to the more profitable crude. Production growth from its core assets: Permian, Montney, Eagle Ford and Duvernay led the company deliver impressive year-over-year results. The four core assets accounted for 94.8% of Encana’s total production, with Montney assets alone accounting for more than half of its output.
Quarterly revenues of $1,313 million also topped the Zacks Consensus Estimate of $1,110 million. Revenues were also higher than the prior-year figure of $1,289 million.
Encana Corporation Price, Consensus and EPS Surprise
Encana Corporation Price, Consensus and EPS Surprise | Encana Corporation Quote
Production & Prices
Total first-quarter production came in at 324,400 barrels of oil equivalent per day (BOE/d), compared with 317,900 BOE/d in the prior-year quarter.
Quarterly natural gas production declined approximately 13% year over year to 1,075 million cubic feet per day, while liquids production rose 31% from the prior-year quarter to 145.2 thousand barrels per day.
Encana's realized natural gas price was $2.94 per thousand cubic feet, compared with the year-ago quarter level of $2.50. Meanwhile, realized oil price rose to $55.74 per barrel from $49.66 in the first quarter of 2017.
Costs & Expenses
Total operating expenses increased 22% from first-quarter 2017 to $976 million. The rise is primarily attributed to an increase in depreciation charges and higher purchased products costs.
Capital Spending and Balance Sheet
Encana's capital investments during the quarter were $509 million. As of Mar 31, 2018, cash and cash equivalents were $433 million and long-term debt was $4,198 million. The debt-to-capitalization ratio stood at 38.25%.
Zacks Rank & Key Picks
Based in Calgary, Alberta, Encana is a focused pure-play natural gas exploration and production company, carrying a Zacks Rank #3 (Hold).
Some better-ranked stocks in the oil and energy sector are China Petroleum & Chemical Corporation or Sinopec , Crescent Point Energy Corporation and Canadian Natural Resources Limited (CNQ - Free Report) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Sinopec delivered an average positive earnings surprise of 492.75% in the trailing four quarters.
Crescent Point surpassed earnings estimates in three of the trailing four quarters, with an average of 363.54%.
Canadian Natural delivered an average positive earnings surprise of 0.78% in the trailing four quarters.
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
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