July 21, 2016 / 10:27 AM / in a year

BRIEF-Encana posts Q2 operating profit of $0.10/share

July 21 (Reuters) - Encana Corp:

* Encana delivers significant efficiency improvements with strong second quarter results

* Q2 operating earnings per share $0.10

* Q2 loss per share $0.71

* Encana Corp qtrly cash flow per share $0.21

* Expect to use proceeds from announced divestitures to strengthen balance sheet and modestly increase 2016 capital program

* Anticipate additional activity to deliver about 13,000 boe/d of production from core four assets in q4

* Co is increasing 2016 production guidance and expects q4 exit production decline from core four assets to be cut from 10 percent to five percent

* Increasing its 2016 production guidance and expects q4 exit production decline from its core four assets to be cut from 10 percent to five percent

* Encana Corp says Gordondale and DJ Basin divestitures are expected to close by end of July delivering proceeds of approximately $1.1 billion

* Expects full-year benefit of transportation-related cost savings to be even greater in 2017

* Has 300 mmcf/d of expected 2017 natural gas production hedged under 3-way options, 350 mmcf/d using nymex fixed price contracts for q1 2017

* About 15,500 bbls/d of expected 2017 crude and condensate hedged using WTI fixed price contracts at an average price of $49.49 per bbl

* Q2 earnings per share view $-0.08 -- Thomson Reuters I/B/E/S

* “Adding 50 percent more drilling and completions activity to our 2016 program”

* Expect to use proceeds from divestitures to strengthen balance sheet and modestly increase 2016 capital program

* Re-investing savings from continued capital efficiency improvements and expects to use portion of proceeds from Gordondale and DJ Basin divestitures to increase 2016 capital program by $200 million

* Anticipate additional activity to deliver between 30,000 to 35,000 boe/d in 2017, of which about 75 percent will be liquids

* Expects to use portion of proceeds from divestitures to increase 2016 capital program by $200 million

* Lowering guidance for transportation, processing and operating costs by $100 million for year

* As at June 30, 2016, co has hedged about 78 percent of remaining expected 2016 oil and condensate production at average price of $55.91/bbl

* Core four assets contributed 268,300 boe/d or approximately 73 percent of total q2 production of 368,300 boe/d

* Increasing 2016 production guidance and expects q4 exit production decline from core four assets to be cut from 10% to 5%

* Qtrly total liquids production averaged 132,000 barrels per day (bbls/d), natural gas production averaged 1.4 billion cubic feet per day (bcf/d)

* As at June 30, Encana hedged about 78 percent of remaining expected 2016 oil and condensate production at average price of $55.91 per barrel

* As at June 30 , hedged 86 percent of expected natural gas production at an average price of $2.63 per thousand cubic feet Source text for Eikon: Further company coverage: (Bengaluru Newsroom: +1-646-223-8780)

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