CALGARY, Alberta, Feb. 25 (UPI) -- Canadian energy company Encana said Wednesday its U.S. natural gas assets performed well last year, but 2015 capital investments will be cut by $700 million.
"We're responding decisively and prudently to the current low commodity price environment," President and Chief Executive Officer Doug Suttles said in a statement. "We will continue to execute our strategy at a pace that makes sense and continue our relentless efforts to realize enduring efficiencies in all aspects of our business."
While noting it was able to meet 2014 production targets with reduced spending, the company said it was reducing its capital investment plans for the year by $700 million to about $2.1 billion. The capital program is based on a full-year average price for West Texas Intermediate crude oil of $50 per barrel, about 1.3 percent higher than the contract for April delivery.
The low price market for crude is already creating problems for energy companies working in the Canadian market. Encana in January closed on an already announced sale of some of its acreage in Alberta for around $500 million.
At the time, Sherri Brillon, the company's chief financial officer, said the company was determined to move through 2015 without incurring any more debt.
In its latest statement, the company said fourth quarter production was up 61 percent year-on-year, largely as a result of drilling programs in the Eagle Ford and Permian shale basins in Texas.
