CALGARY, Alberta, July 24 (UPI) -- Drawing on momentum in U.S. shale basins, Canadian energy company Encana Corp. said Friday it expected production to increase for the rest of the year.
"We continue to lower costs, improve well performance and increase well inventory in our four most strategic assets," Doug Suttles, Encana president and chief executive officer, said in a statement.
The company in February said it was reducing its capital investment plans for the year by $700 million to about $2.1 billion. About 80 percent of new spending would target the four key U.S. shale basins. Cash flow for 2015 would range between $1.4 billion and $1.6 billion, Encana said in its latest statement.
Combined, output from its four key shale basins – Permian, Eagle Ford, Duvernay and Montney – will represent 65 percent of total production during the fourth quarter. Second quarter production increased more than 5 percent from the previous quarter, driven in large part by the Permian and Eagle Ford basins in Texas.
Despite taking an operating loss of $148 million and a net loss of $3.3 billion, Suttles said momentum was working in his favor.
"We exited the second quarter with significant operational momentum and we expect to accelerate liquids growth through the second half of the year," he said.
Encana was basing its expectations on oil priced at $50 per barrel for West Texas Intermediate, the U.S. benchmark. WTI traded Friday at $48.66 per barrel.
