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Encana latest North American energy company to shake off Harvey

Encana latest North American energy company to shake off Harvey
UPI

Sept. 28 (UPI) — North American energy producer Encana Corp. became the latest to say its operations weren’t curtailed by the impact in Texas from Hurricane Harvey.

Chesapeake Energy started the week with a statement that third quarter production figures would be lower because of Harvey, which struck Texas in late August and moved over the state’s shale basin. Sanchez Energy, however, followed up with a statement that its operations were able to withstand the storm with few major impacts on production.

Encana Corp. said the storm sidelined about 3,500 barrels of oil equivalent per day from the Eagle Ford and Permian basin. That’s less than 1 percent of the combined oil production alone in the September forecast from the U.S. Energy Information Administration.

The company said new operations began, meanwhile, at its Montney shale basin in British Columbia on time and under budget. With that, and performance across the rest of its portfolio, Encana said its fourth quarter production should be at least 25 percent higher than the same period last year.

“We are firmly on track with our 2017 guidance and well positioned for 2018 when we expect to deliver significant value growth within cash flow,” President and CEO Doug Suttles said in a statement.

Canada-based Encana said last year “relentless focus” on controlling costs meant operating earnings improved even as commodity prices remain suppressed. Analysis this week from consultant group Wood Mackenzie said production so far for players outside the Organization of Petroleum Exporting Countries has been resilient because they’re learning to do more with less.

Encana entered 2016 by saying it was revising its spending plan for the year in order to strengthen its balance sheet with minor impacts on production. “Virtually all” of the spending would focus on its North American shale portfolio.

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