Encana Corporation ((ECA – Analyst Report)) is a focused pure-play natural gas exploration and production (E&P) company. It is the second largest gas producer 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.
The weakness in commodity prices has affected the company’s earnings through reduced realizations. This is reflected in the consensus estimate that has moved down in the last few months. In the trailing four quarters, Encana has reported a negative average earnings surprise of 58.46%.
Currently, Encana has a Zacks Rank #3 (Hold) but that could change following its first quarter 2015 earnings report which has just released. We have highlighted some of the key details from the just-released announcement below:
Earnings: Encana beats on earnings. The company announced operating earnings per share (excluding one-time items) of 1 cent compared with the Zacks Consensus Estimate of a loss of 12 cents.
Revenue: Revenues (net of royalties) came in at $1,249 million, which failed to meet the Zacks Consensus Estimate of $1,268 million.
Key Stats: Quarterly natural gas production declined approximately 34% year over year to 1,857 million cubic feet per day. Liquid production increased 78% year over year to 120.7 thousand barrels per day.
Encana’s realized natural gas prices were $4.78 per thousand cubic feet, down from the year-ago quarter level of $5.82. Realized oil prices fell to $37.83 per barrel from $69.19 in the first quarter of 2014.
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