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Encana's (ECA) Q2 Earnings & Revenues Top Estimates, Up Y/Y
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Calgary, Alberta-based Encana Corporation reported second-quarter 2017 operating earnings of 18 cents per share, ahead of the Zacks Consensus Estimate of 4 cents. Further, the bottom line improved from the year-ago period earnings of 10 cents per share. Improvement in the top line, higher realized prices and reduction in the costs lead to better results.
Quarterly revenues of $1,083 million came above the Zacks Consensus Estimate of $773 million. Moreover, revenues were 197.5% higher than the prior-year figure of $364 million.
Encana Corporation Price, Consensus and EPS Surprise
Quarterly natural gas production declined approximately 19% year over year to 1,146 million cubic feet per day, while liquids production fell 5% year over year to 124.9 thousand barrels per day.
Encana's realized natural gas price were $2.56 per thousand cubic feet, up 37.6% from the year-ago quarter level of $1.86. Meanwhile, liquids price rose to $41.97 per barrel from $38.47 in the second quarter of 2016, reflecting an increase of 9%.
Costs & Expenses
Total operating expenses reduced by 40.3% from second-quarter 2016 to $762 million. The decline is primarily attributed to the reduction in impairment charges.
Specifically, Encana reported operating costs of $113 million for the reported quarter, 16% lower than the year-ago quarter level. Also, transportation and processing expenses fell 15% to $206 million. Administration and depreciation charges were down by 60% and 16%, respectively.
Capital Spending and Balance Sheet
Encana's capital investments during the quarter were $415 million. As of Jun 31, 2017, cash and cash equivalent was $395 million and long-term debt was $4,198 million. This, in turn, represents a debt-to-capitalization ratio of 38.2%.
Zacks Rank & Stocks to Consider
Encana is a focused pure-play natural gas exploration and production company. It is the second largest gas producer in North America with land and resources in a number of the region's promising shale and tight gas resource plays. The company currently carries a Zacks Rank #4 (Sell).
McDermott delivered an average positive earnings surprise of 387.5% in the last four quarters.
SeaDrill pulled off an average positive earnings surprise of 97.13% in the last four quarters.
Petrobras came up with an average positive earnings surprise of 59.58% in the last four quarters.
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Encana's (ECA) Q2 Earnings & Revenues Top Estimates, Up Y/Y
Calgary, Alberta-based Encana Corporation reported second-quarter 2017 operating earnings of 18 cents per share, ahead of the Zacks Consensus Estimate of 4 cents. Further, the bottom line improved from the year-ago period earnings of 10 cents per share. Improvement in the top line, higher realized prices and reduction in the costs lead to better results.
Quarterly revenues of $1,083 million came above the Zacks Consensus Estimate of $773 million. Moreover, revenues were 197.5% higher than the prior-year figure of $364 million.
Encana Corporation Price, Consensus and EPS Surprise
Encana Corporation Price, Consensus and EPS Surprise | Encana Corporation Quote
Production & Prices
Quarterly natural gas production declined approximately 19% year over year to 1,146 million cubic feet per day, while liquids production fell 5% year over year to 124.9 thousand barrels per day.
Encana's realized natural gas price were $2.56 per thousand cubic feet, up 37.6% from the year-ago quarter level of $1.86. Meanwhile, liquids price rose to $41.97 per barrel from $38.47 in the second quarter of 2016, reflecting an increase of 9%.
Costs & Expenses
Total operating expenses reduced by 40.3% from second-quarter 2016 to $762 million. The decline is primarily attributed to the reduction in impairment charges.
Specifically, Encana reported operating costs of $113 million for the reported quarter, 16% lower than the year-ago quarter level. Also, transportation and processing expenses fell 15% to $206 million. Administration and depreciation charges were down by 60% and 16%, respectively.
Capital Spending and Balance Sheet
Encana's capital investments during the quarter were $415 million. As of Jun 31, 2017, cash and cash equivalent was $395 million and long-term debt was $4,198 million. This, in turn, represents a debt-to-capitalization ratio of 38.2%.
Zacks Rank & Stocks to Consider
Encana is a focused pure-play natural gas exploration and production company. It is the second largest gas producer in North America with land and resources in a number of the region's promising shale and tight gas resource plays. The company currently carries a Zacks Rank #4 (Sell).
Better-ranked players from the broader energy space include McDermott International, Inc. , SeaDrill Limited (SDRL - Free Report) and Petróleo Brasileiro S.A. or Petrobras (PBR - Free Report) . All the three companies sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
McDermott delivered an average positive earnings surprise of 387.5% in the last four quarters.
SeaDrill pulled off an average positive earnings surprise of 97.13% in the last four quarters.
Petrobras came up with an average positive earnings surprise of 59.58% in the last four quarters.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
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