By Judy McKinnon
Encana Corp. (ECA) posted a better-than-expected third-quarter profit, helped by a surge in oil and natural gas liquids production and cost-cutting measures.
The Calgary, Alberta-based energy giant, Canada's largest natural-gas producer, said it earned $188 million, or 25 cents a share, in its latest quarter, compared with a year-earlier loss of $1.24 billion, or $1.69 a share. Results in the year-ago quarter included a $1.2 billion asset-impairment charge.
It said operating earnings came in at $150 million, or 20 cents a share, down from $263 million, or 36 cents a year earlier.
Analysts polled by Thomson Reuters were expecting a profit of 17 cents a share.
Cash flow fell 28% to $660 million.
Encana said oil and natural-gas liquids volumes jumped 92% to an average of 58,200 barrels a day, which it said puts it on track for total liquids production for the year of 50,000-60,000 barrels a day. Natural gas production volumes averaged about 2.7 billion cubic feet a day in the third quarter.
Under newly minted president and chief executive, Doug Suttles, Encana has been looking at ways to shave costs as slumping natural-gas prices bite into profits.
The company, which is targeting cost savings of $100 million to 150 million by next year, said it expects to realize about $110 million of that total by year-end.
Encana said it has lowered its capital-spending guidance for the year to a range of $2.7 billion to $2.9 billion. In July, it had forecast capital investments near the low end of previous guidance of $3 billion to $3.2 billion.
Write to Judy McKinnon at firstname.lastname@example.org
Order free Annual Report for EnCana Corp.
Visit http://djnweurope.ar.wilink.com/?ticker=CA2925051047 or call +44 (0)208 391 6028
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
October 23, 2013 07:43 ET (11:43 GMT)Copyright (c) 2013 Dow Jones & Company, Inc.
|NRG Energy Swings to 3rd-Quarter Profit; Lowers Upper End of 2013 View (2013/11/12)|
|Manulife Financial Posts 3rd-Quarter Profit of C$1 Billion -- Update (2013/11/7)|
|Manulife Financial Posts 3rd-Quarter Profit of C$1 Billion (2013/11/7)|
|Loblaw Cos. 3rd-Quarter Profit Falls 29%, Cuts View for Year (2013/11/13)|
|Caterpillar 3rd-Quarter Profit Falls 44%, Lowers Year View (2013/10/23)|
|Travelers Posts Flat 3rd-Quarter Profit, Adds $5 Billion in Share Buybacks (2013/10/22)|
|Chevron 3rd-Quarter Profit Slips 5.8% on Lower Refining Margins ()|
|Cigna 3rd-Quarter Profit Up 19%, Lifts Full-Year View ()|
|Hess 3rd-Quarter Profit Down 25% on Lower Revenue, Production ()|
|Eaton 3rd-Quarter Profit Rises 48%, Offers Weak 4th-Quarter View -- Update (2013/10/25)|
|Start Premium Trial||Register For Free|
|P||F||Fund Financial Data (13,000+ funds)|
|P||F||Stock Financial Data (7,000+ stocks)|
|P||F||Stock and Fund Screeners (basic)|
|P||F||Investing Articles and Market Commentary|
|P||F||Articles Archive (>30 days)|
|P||F||Discuss (dozens of stock, fund, bond, and general bulletin boards)|
|P||F||Portfolio Manager (basic)|
|P||F||Morningstar Investment Classroom|
|P||F||Access Your Portfolio Anytime, Anywhere via Your Mobile Device|
|P||Morningstar Fund Analyst Reports (full research on 1,700 funds, ETFs, and CEFs)|
|P||Morningstar Stock Analyst Reports (full research on more than 1,100 stocks)|
|P||Portfolio Manager (advanced with 10 X-Ray analyses, including recommendations)|
|P||Portfolio Monitor (monthly and on-demand personalized portfolio statements)|
|P||Morningstar Proprietary Stock Information (stock star ratings, buy/sell prices, economic moat ratings, and more)|
|P||Morningstar 5-Star Stock and Fund Favorites & Red Flags eNewsletters|
|P||Premium Stock and Fund Screeners (advanced with nearly infinite ways to find the best securities for you)|
|P||Discounts on Morningstar newsletters, books, seminars, and more|
Access these features and more when you sign up for Free Membership.
Join Morningstar today. It's Free.
Access these features and more when you sign up for Premium Membership.
Start your free 14-day trial today online
Your subscription may be tax deductible. Please contact your tax advisor.