Encana Corp. reported another steep quarterly loss Friday, hurt
for the second consecutive quarter by a significant impairment
charge and a continued slump in oil and gas prices.
The Calgary, Alberta-based energy company booked a $1.3 billion
impairment charge in its latest quarter, leading to an overall loss
of $1.6 billion.
Even without the charge, Encana swung to an operating loss of
$167 million, or 20 cents a share, which missed the Thomson Reuters
mean estimate for a loss of 16 cents. A year earlier, Encana had an
operating profit of $171 million, or 23 cents a share.
Operators in Canada's energy patch have been hard hit by
slumping commodity prices, leading many to scale back spending and
trim staff. In June, Encana said it planned additional job cuts
beyond an earlier 25% staff cut it already had implemented.
The company didn't provide specific details about planned job
cuts in its release Friday, although it said it continued
streamlining its operations during the quarter.
Encana, which has been shifting its focus toward more crude-oil
production and away from its traditional focus on natural gas, said
cash flow for the quarter fell 72% to $181 million.
Natural-gas production was down 38% from a year earlier, while
oil and gas liquids production jumped 87%. Prices for both were
lower, with the company's realized natural-gas price declining
nearly 14% and oil and gas liquids prices down 37%.
Encana said it remains on track to meet its 2015 cash flow
guidance of $1.4 billion to $1.6 billion.
Write to Judy McKinnon at judy.mckinnon@wsj.com
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