Encana Corporation (NYSE:ECA) (TSE:ECA) reported its second quarter earnings before opening bell, soaring past the expectations of analysts. The company’s net earnings were $730 million or 99 cents per share. Operating earnings were 34 cents per share. Analysts had been expecting the company to report between 14 and 17 cents per share in earnings on $1.46 billion in revenue.
The company reported a 69 percent year over year increase in oil and natural gas liquid volumes for the second quarter. Also Encana Corporation (NYSE:ECA) (TSE:ECA)’s average production increased to about 47,600 barrels per day. Natural gas production averaged about 2.8 billion cubic feet per day.
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Encana projects a solid rest of the year ahead
Encana President and Chief Executive Officer Doug Suttles, who just took the helm in June, said the company’s strong second quarter results have put it on track to meet its 2013 guidance.
“Our focus moving forward is to continue to exercise capital discipline while working to achieve ever greater efficiencies in how we run our business,” Suttles said in a statement. “We expect to see cost savings materialize throughout the rest of the year as a result of those efforts.”
Encana Corporation (NYSE:ECA) (TSE:ECA) said its full-year capital investment will likely be toward the lower end of its guidance range of $3 billion to $3.2 billion. Cash flow is expected to be in the middle to higher end of the guidance range of $2.3 billion to $2.5 billion. The company doesn’t expect to significantly change its capital spending plan for the rest of this year.
Encana continues to explore further potential assets
Last month Encana Corporation (NYSE:ECA) (TSE:ECA) purchased 67,000 net acres in the San Juan Basin. It also closed its divesture of the Jean Marie natural gas assets in British Columbia last month, unlocking value from one of the company’s mature assets. It began a divesture process for its Osage County, Okla. assets, which are the rest of Encana’s land position in the Mississippi Lime. In the Deep Panuke project, Encana is close to the final steps of achieving its first natural gas.
The company’s chairman David P. O’Brien also announced he would step down from the position but continue to hold a position on the company’s board.