Encana Corporation reported significantly higher production from the Montney in 2018, but Duvernay production declined.
The Montney delivered 190,700 boe/d for the year, up from 126,700 boe/d. The Duvernay delivered 17,900 boe/d, down from 20,400 boe/d the previous year. Total Canadian operations produced 217,500 boe/d, up from 169,100 boe/d.
In terms of capital spending, $516 million was spent in the Montney for the year, up from $346 million the previous year. Spending in the Duvernay climbed to $117 million from $78 million. Total Canadian spending was $632 million for 2018, up from $426 million the previous year. These are all in U.S. dollars.
For the fourth quarter of 2018, Encana reported net earnings of $1.03 billion, a reversal from a $229 million loss. Full-year income climbed to just over $1 billion from earnings of $827 million the previous year. Total revenues also were up to $2.38 billion in Q4 from $1.21 billion the previous year. Full-year revenues surged to nearly $6 billion from $4.44 billion.
At year-end, Encana had more than $5 billion of total liquidity including approximately $1.1 billion in cash and cash equivalents on hand and $4 billion available credit on the company’s undrawn credit facilities.
Fourth quarter production in the Montney averaged 220,000 boe/d (25 per cent liquids) and was negatively impacted by 2,000 bbls/d of liquids and 50 mmcf/d of natural gas related primarily to temporary third-party issues. For the year, liquids production grew 116 per cent to 41,700 bbls/d.
Encana’s average well cost in 2018 was $4.3 million (a nearly 30 per cent reduction in drilling and completion costs since 2015, normalized for lateral length). Thirty-nine net wells were turned to sales during the fourth quarter and have averaged more than 500 bbls/d for the first 90 days of production.