Have you been eager to see how Encana Corp. ECA – one of the largest gas producers in North America – performed in Q4 in comparison with the market expectations? Let’s quickly scan through the key facts from this Calgary, Alberta-based behemoth’s earnings release this morning:
About Encana: Encana is a focused pure-play natural gas exploration and production company. It holds a highly competitive land and resource position in a number of the region's most promising shale and tight gas resource plays. This provides the company with a low risk, long-life, and sustainable growth profile.
Zacks Rank & Surprise History: Currently, Encana has a Zacks Rank #3 (Hold) but that could change following its fourth quarter 2016 earnings report which has just released. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Coming to earnings surprise history, the company has a good record: its beaten estimates in three of the last four quarters.
Estimate Revision Trend: Investors should note that the earnings estimate revisions for Encana was unmoved prior to the earnings release. The Zacks Consensus Estimate remained the same over the last 7 days.
We have highlighted some of the key details from the just-released announcement below:
A Higher-than-Expected Profit: The company announced operating earnings per share of 9 cents, ahead of the Zacks Consensus Estimate of 3 cents.
Revenue Surpassed Estimates: Total revenues came in at $822 million, which outperformed the Zacks Consensus Estimate of $772 million.
Key Stats: Quarterly natural gas production declined approximately 19% year over year to 1,276 million cubic feet per day, while liquids production fell 25% year over year to 108.9 thousand barrels per day.
Encana's realized natural gas price were $2.35 per thousand cubic feet, down 31% from the year-ago quarter level of $3.43. Meanwhile, realized liquids price rose to $42.96 per barrel from $39.11 in the fourth quarter of 2015.
2017 Guidance: Encana has set $1.6-$1.8 billion as 2017 capital expenditure budget, while total production for the year is expected to be between 320 thousand barrels of oil equivalent per day and 330 thousand barrels of oil equivalent per day.
Share Performance: Shares have risen 9% year-to-date, while the Zacks categorized Oil & Gas – Canadian Exploration & Production industry lost 4% over the same period. Over the last 12 months, Encana stock has soared 230%.
Check back later for our full write up on this Encana earnings report later!
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