EnCana Corporation achieved strong increases in 2007 cash flow and operating earnings during a year of solid growth in natural gas and oil production. Financial results were enhanced by EnCana's favourable gas price hedges, which offset weaker gas prices, and excellent performance from the company's downstream segment of the integrated oil business. EnCana also achieved very strong proved reserves additions at competitive costs.
"EnCana delivered tremendous operational and financial performance in 2007, a direct result of our sharpened focus on North American unconventional natural gas and integrated oil resource plays. The sustainable value creation capacity of our resource play strategy is becoming increasingly evident. With strong production growth of 11 percent per share and successful price hedges that delivered a $1 billion benefit to 2007 cash flow, our company's cash flow, operating earnings and free cash flow all increased substantially in a year when our industry faced many challenges. In 2007, production from our key natural gas resource plays grew 14 percent, while production from our integrated oil projects increased 25 percent. Our newly established refining business also delivered great results, achieving twice the cash flow we expected during its inaugural year. Completing the year's success story, proved reserves additions were also substantial, replacing more than two times the amount of oil and gas we produced. Most importantly, these reserves additions were achieved at a highly-competitive finding and development cost of $1.65 per thousand cubic feet equivalent," said Randy Eresman, EnCana's President & Chief Executive Officer.
"EnCana's energy resources lie beneath its more than 25 million net acres of land in North America, largely in the heart of the unconventional fairway. Our low-risk, long-life resource play assets hold the potential to deliver strong shareholder value creation for many years ahead. As a reflection of the company's confidence in the sustainability of its business model, EnCana's board of directors has approved a doubling of our quarterly dividend to 40 cents per share," Eresman said.
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