Encana Corp. says it had a US$336 million profit in the second quarter and remains on track to meet its production and capital investment plan for 2019 while reducing costs more than previously projected.
The Calgary-based company’s net income, reported in U.S. currency, amounted to 24 cents per share, a turnaround from a loss of $151 million or 16 cents per share in the second quarter of 2018.
Last year’s second quarter included a $326 million accounting item for unrealized risk-management losses, compared with an $83 million unrealized risk-management gain this year.
Encana’s operating earnings were $290 million or 21 cents per share for the three months ended June 30, one cent above analyst estimates from financial markets data firm Refinitiv.
Revenue was $2.06 billion, up from $983 million and in line with estimates, with most of the increase from Encana’s U.S. operations.
Encana says it has raised its annualized cost reduction estimate for 2019 to $175 million from the original $125 million, while capital investment will be between $500 million and $600 million per quarter as previously projected.