Form 8-K ENCANA CORP For: Oct 31

[ad_1]

Suttles added, “Our ability to drive efficiency improvements ensures that we can continue to deliver
competitive returns despite volatility in commodity prices. Our business is resilient, sustainable and competitive both within and outside of our industry. Our free cash flow in 2019 continues to grow and will be used to strengthen our balance
sheet.”

Third Quarter Production and Operating Highlights

Total production in the quarter was 605,100 barrels of oil equivalent per day (BOE/d), up four percent year-over-year on a proforma basis. Production in the
quarter exceeded the second half guidance. Total production excluding the volumes from Arkoma and China was over 596,000 BOE/d, exceeding the top end of the second half guided range of 565,000 to 585,000 BOE/d. Liquids production also exceeded the
second half run-rate of 310,000 – 320,000 barrels per day (bbls/d), coming in over 328,000 bbls/d excluding Arkoma and China volumes. Third quarter total liquids production increased eight percent
year-over-year proforma, to 329,200 bbls/d. Oil and condensate production during the period was 237,300 bbls/d.

Capital Investment and Production

 

     Reportable (1)      Proforma (2)  

(for the period ended September 30)

   Q3 2019      Q3 2018      Q3 2019      Q3 2018  

Upstream Capital Expenditures ($ millions)

     563        519        563        890  
  

 

 

    

 

 

    

 

 

    

 

 

 

Oil (Mbbls/d)

     178.8        95.5        178.8        172.7  

NGLs – Plant Condensate (Mbbls/d)

     58.5        41.0        58.5        47.5  

NGLs – Other (Mbbls/d)

     91.9        42.2        91.9        83.6  
  

 

 

    

 

 

    

 

 

    

 

 

 

Oil and NGLs Total (Mbbls/d)

     329.2        178.7        329.2        303.8  
  

 

 

    

 

 

    

 

 

    

 

 

 

Natural gas (MMcf/d)

     1,655        1,197        1,655        1,659  
  

 

 

    

 

 

    

 

 

    

 

 

 

Total production (MBOE/d)

     605.1        378.2        605.1        580.3  
  

 

 

    

 

 

    

 

 

    

 

 

 

 

(1)

Reportable includes Encana and Newfield Upstream capital and combined production volumes for Q3 2019. Q3 2018
includes Encana’s capital and production as previously reported.

(2)

Proforma includes Encana and Newfield Upstream capital and combined production volumes for both Q3 2019 and Q3
2018.

Permian

Third quarter
production in the Permian Basin averaged a record 111 MBOE/d (83 percent liquids). Encana continues to demonstrate efficiency gains with its four-rig program focused on cube development. Recent wells in
Howard County are contributing to the Permian’s strong Q3 production, with wells out-performing their type curve. Encana’s third quarter cubes employed 100 percent recycled water leading to
lower water costs, and continued drilling efficiencies are being realized, resulting in an 11 percent reduction in cost per lateral foot versus the prior quarter.

Anadarko

Third quarter Anadarko Basin production
averaged 162 MBOE/d (62 percent liquids). Oil and condensate volumes averaged 57 Mbbls/d in the third quarter. Production results are further enhanced with continued completion efficiency gains, with pace-setter wells under $6 million and
cycle times reduced to 90 days as a result of deploying our cube development model across the asset. Longer dated production data from 2019 wells continues to track type curve.

Montney

Third quarter Montney production averaged 210
MBOE/d (26 percent liquids). Liquids production during the quarter averaged 54 Mbbls/d. The continued outperformance of the Montney condensate type curve paired with sub 80-day cycle times is accelerating
well payouts and further enhancing returns.

Outlook

Encana expects to continue generating significant free cash flow in the fourth quarter of 2019. Strong production results year to date have more than offset
the impact of disposition volumes and Encana has increased annual production guidance, lowered cost guidance, and maintained mid-point of original capital guidance. Cost performance has been strong and Encana
is now guiding to the bottom end of the previous $12.75 – $13.25 per BOE range.

For more detailed information on the Company’s assets and third
quarter results, please refer to the Corporate Presentation at http://investor.encana.com/presentations-events.



[ad_2]

Source link

Leave a Comment

Your email address will not be published. Required fields are marked *