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Encana (ECA) Q2 Earnings Crush Loss Estimate, Misses Revenue

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Encana Corp. , based in Calgary, Alberta, is a focused pure-play natural gas exploration and production (E&P) company. It is one of the largest gas producers in North America, and holds a highly competitive land and resource position in a number of the region's most promising shale and tight gas resource plays.

Currently, Encana has a Zacks Rank #3 (Hold) but that could change following its second quarter 2016 earnings report which has just released. Coming to earnings surprise history, the company has a dismal record: its beaten estimates in just 1 of the last four quarters.

We have highlighted some of the key details from the just-released announcement below:

Earnings: Encana earnings crush loss estimate. The company announced operating earnings per share of 10 cents, contrary to the Zacks Consensus Estimate for a loss of 8 cents.

Revenue: Revenue below expectations. Revenues (net of royalties) came in at $364 million, which underperformed the Zacks Consensus Estimate of $775.32 million.

Key Stats: Quarterly natural gas production declined approximately 10% year over year to 1,418 million cubic feet per day. However, liquid production improved 4% year over year to 132.0 thousand barrels per day.

Encana's realized natural gas price were $1.86 per thousand cubic feet, almost halving from the year-ago quarter level of $3.52. Realized liquids price fell to $38.47 per barrel from $43.78 in the second quarter of 2015.

Rise in Planned Capex: Encana plans to utilize a part of its divestment proceeds to increase its 2016 capital expenditure budget by $200 million.

Check back later for our full write up on this Encana earnings report later!

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