Quarterly revenues (net of royalties) came in at $1,249 million, falling nearly 34% from the prior-year figure of $1,829 million. The top line also failed to meet our expectation of $1,286 million. Production & Prices In the first quarter, natural gas production declined over 34% year over year to 1,857 million cubic feet per day (Mmcf/d). Encana's realized natural gas prices were $4.78 per thousand cubic feet, lower than the year-ago quarter level of $5.82.
The company's oil and liquids production surged 78% year over year to 120,700 barrels per day on strong contribution from the Montney, Duvernay, Eagle Ford and Permian shale plays. Encana sold oil at $37.83 per barrel, significantly down from $69.19 per barrel during first-quarter 2014. Operating Expenses
Encana reported operating cost of $189 million for this quarter, flat year over year. Cash Flows
Encana generated cash flows from operations of $495 million or 65 cents per share as against $1.1 billion or $1.48 per share in the first quarter of 2014. Capital Spending and Balance Sheet
Encana's capital investments during the quarter were $736 million. As of Mar 31, 2015, cash on hand was $2,030 million and long-term debt was $5,925 million, which represents a debt-to-capitalization ratio of 38.4%. Guidance
Encana reiterated 2015 capital investment guidance of $2–$2.2 billion. The company expects full-year cash flow in the range of $1.4–$1.6 billion. For 2015, the company expects total natural gas production in the 1,600–1,700 Mmcf/d range. Liquid production is expected to range between 130 Mbbls/d and 150 Mbbls/d. Zacks Rank
Encana currently carries a Zacks Rank #3 (Hold). Better-ranked players from the energy sector include Pembina Pipeline Corporation PBA, Suncor Energy Inc. SU and Tallgrass Energy Partners, LP TEP. All these stocks sport a Zacks Rank #1 (Strong Buy). Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report SUNCOR ENERGY (SU): Free Stock Analysis Report ENCANA CORP (ECA): Free Stock Analysis Report PEMBINA PIPELN (PBA): Free Stock Analysis Report TALLGRASS ENRGY (TEP): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research
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