Encana (ECA) Tops Q1 EPS by 5c; Affirms Capital Outlook

Encana (NYSE: ECA) reported Q1 EPS of $0.14, $0.05 better than the analyst estimate of $0.09.

• Following the successful close of the Newfield acquisition, Encana exceeds annualized general and administrative (G&A) synergies by $25 million; new annualized estimate increased to $150 million
• Anadarko well costs reduced by $1 million since acquisition close in mid-February; Company has line of sight to significantly more savings in months ahead
• Year-to-date share buyback of ~91 million shares at an average price of $7.19 per share
• Company reiterates annual proforma capital outlook of $2.7 to $2.9 billion and reaffirms production targets, including approximately 15 percent liquids growth from its core growth assets
• Generated cash from operating activities in the quarter of $529 million and non-GAAP cash flow of $422 million

“We are off to a very strong start to 2019. Integration of Newfield into Encana has gone exceptionally well, and we now expect to deliver annual G&A synergies of at least $150 million, 20 percent greater than our original commitment,” said Encana President & CEO Doug Suttles. “In addition, we have already achieved our objective of reducing Anadarko well costs by $1 million and our most recent wells have delivered even larger savings. All of this was accomplished within weeks of closing.

“This strong start gives us confidence that we will meet our annual guidance, deliver competitive growth and generate substantial free cash within our stated capital guidance. Year-to-date, we have executed about 61 percent of our share buyback program and increased our dividend by 25 percent. These results demonstrate the quality of our business and our commitment to return cash to shareholders.”

For earnings history and earnings-related data on Encana (ECA) click here.

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