This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Encana: Strong Liquids Growth To Balance Sources Of Cash Flow In 2013

Stocks in this article: ECA

Encana Corporation (TSX, NYSE: ECA) is planning to invest an additional $600 million during the remainder of 2012 to take advantage of positive initial results achieved in a number of oil and liquids rich natural gas plays. In addition to the revised capital guidance, the company also increased its expected total liquids production for the year by seven percent to 30,000 barrels per day (bbls/d).

“We’re encouraged with the success we have realized so far this year in our oil and liquids rich natural gas plays. Increasing our 2012 capital investment supports our goal of developing a more diversified production portfolio,” says Randy Eresman, Encana President & CEO. “Our teams have been successfully transitioning their technical and commercial expertise from the development of natural gas plays to oil and natural gas liquids rich plays, and through their efforts, we expect to achieve a more balanced operating cash flow stream in 2013.”

Encana’s original 2012 plan to drill between 40 and 45 wells has been expanded to drill between 115 and 120 wells in 10 plays primarily focused on oil. The company is expecting to drill approximately 350 oil and liquids rich wells in 2013.

Encana projects liquids production in 2013 to range from 60,000 bbls/d to 70,000 bbls/d, about 40 percent of which is expected to be comprised of oil and field condensate. This represents a two year compound annual growth rate of approximately 65 percent, based on the midpoint of the range. Annualized natural gas production is expected to remain near current levels of approximately 3 billion cubic feet per day for 2012 and 2013. For 2013, capital investment is estimated to range between $4.0 billion to $5.0 billion, cash flow to be between $2.5 billion to $3.5 billion and net divestitures to be in the range of $1.0 billion to $1.5 billion.

1 of 5

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,164.95 -251.90 -1.45%
S&P 500 1,994.99 -26.26 -1.30%
NASDAQ 4,635.24 -48.1670 -1.03%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs