EnCana Corporation (NYSE:ECA) (TSE:ECA) posted net losses in its first-quarter report this morning before opening bell. The company’s loss was $431 million, compared to its $12 million net income in the same quarter a year ago. Its non-operating foreign-exchange loss was $101 million, compared to a gain of $86 million in the same quarter a year ago.
The company attributed its losses to foreign exchange. It also said its cost-reduction efforts were indicate in the figures from the second half of its March quarter.
“Our focus remains on reducing costs and increasing our profitability, said Interim President and CEO Clayton Woitas in a statement. “Through the first quarter we identified several areas where we can become more efficient in our business.
The company saw its oil and natural gas liquids volumes climb 48 percent and its average production rise to 43,500 barrels per day during the March quarter. The company’s average natural gas volumes were reported to be 2.88 billion cubic feet per day.
EnCana hedged approximately 1.52 billion cubic feet per day of output expected between April and December as of the end of March. That locked prices in at $4.39 per 1,000 cubic feet. The company also hedged 1.5 billion cubic feet per day for 2014 production, locking those prices in at $4.19 per 1,000 cubic feet.
It continues its search for a new CEO to replace Randall Eresman, who resigned earlier this year. EnCana said it has narrowed down its choices for the position and intends to finish searching by the end of June.
EnCana Corporation (NYSE:ECA) (TSE:ECA) also declared a 20-cent per share dividend which will be paid June 28 to shareholders of common stock as of June 14.
Gas in the U.S. averaged approximately $3.478 million British thermal units during the March quarter, which is a 39 percent increase over the same quarter a year ago. Natural gas producers reduced drilling during the quarter while colder temperatures pushed demand higher.
Shares of EnCana Corporation (NYSE:ECA) (TSE:ECA) were inactive prior to opening bell at the New York Stock Exchange. The stock has fallen almost 2 percent so far this year.