CALGARY, A.B. — Encana says it delivered strong performance in the fourth quarter of 2017, and that the company is on track to meet or exceed targets in its five-year plan unveiled at its Investor Day last October.
In a press release, Encana said its core assets delivered production growth of approximately 31 percent from the fourth quarter of 2016 to the fourth quarter of 2017. This growth significantly exceeds the company’s original target of greater than 20 percent and is above the top end of its revised 25 to 30 percent guidance range. The company said it accomplished that growth with a capital investment of approximately $1.8 billion.
“Consistent with our plan, we delivered a strong finish to 2017,” said Encana’s President & CEO Doug Suttles. “We have established a powerful track record of meeting and beating our targets, continuously driving efficiency and capital discipline. We are positioned to deliver significant value growth in 2018 while funding our capital program from corporate cash flows.”
Encana expects its 2018 capital program will be similar to 2017 with modest allocation adjustments to optimize delivery. The company said it plans to invest virtually all anticipated capital in its core assets this year, with around 70 percent directed at the Permian Basin in Texas and the Montney Basin in Northeast B.C. The company anticipates production growth from its core assets of between 25 and 35 percent over the next twelve months, with significant oil and condensate growth in the second half of the year.
In 2017, the company said liquids production in the Montney more than doubled from the fourth quarter of 2016 to the fourth quarter of 2017, driven by a focus on condensate rich wells and the early start-up of the Tower, Saturn and Sunrise processing plants. In 2018, Encana expects to grow its liquids production as it fills capacity at the new plants and completes two additional liquids hubs in the second half of the year. Encana has minimized its exposure to AECO pricing through a focus on growing condensate production and diversifying market access.
The company plans to issue 2018 guidance along with its 2017 fourth quarter and year-end results on February 15th.