UPDATE 1-Encana adjusted profit beats as liquids production rises

Thu Feb 13, 2014 6:46am EST
 
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* Fourth-quarter operating profit $0.31/share vs est. $0.20

* Fourth-quarter liquids output up 82 pct

* Expects liquids production to rise 30 pct in 2014

Feb 13 (Reuters) - Encana Corp, Canada's largest natural gas producer, reported a smaller-than-expected fall in quarterly operating profit as the company ramped up production of liquids such as light oil and condensate.

Encana is in the midst of a restructuring launched by new Chief Executive Doug Suttles and is now looking to cut production of low-value natural gas and increase output of more lucrative oil and natural gas liquids.

Liquids output rose 82 percent to average 66,000 barrels per day in the fourth quarter ended Dec. 31.

Encana said it expected liquids production to rise 30 percent in 2014, making up for the small decrease expected in natural gas output.

The company said on Thursday that its focus on growing liquids output and lowering cost structures would help lift margins.

Encana set capital investment target of $2.4 billion-$2.5 billion for the year, lower than the $2.7 billion it spent in 2013.   Continued...