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How Did Encana’s 3Q16 Earnings Look?

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Nov. 8 2016, Published 7:37 p.m. ET

Encana beat 3Q16 earnings estimates

Encana (ECA) announced its 3Q16 earnings on November 3, 2016, before the markets opened. Encana reported adjusted EPS (earnings per share) of $0.04 per share, $0.07 better than the Wall Street analyst consensus for a loss of $0.03 per share.

ECA’s 3Q16 earnings are higher by $0.07 per share when compared with a 3Q15 loss of $0.03 per share. But when compared sequentially with 2Q16, ECA’s 3Q16 earnings are lower by $0.06 per share.

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Encana’s 3Q16 revenues beat estimates

For 3Q16, ECA reported adjusted revenues of ~$979 million, ~35% better than Wall Street analyst consensus for revenues of ~$726 million. ECA’s 3Q16 revenues are lower by ~25% when compared with 3Q15 revenues of ~$1.3 billion. But when compared sequentially with 2Q16, ECA’s 3Q16 revenues are higher by ~169%.

Encana’s earnings trend

As seen in the above chart, Encana reported much lower EPS (earnings per share) in 2015 due to lower realized natural gas (UNG) prices. In 2Q15, Encana saw its adjusted earnings turn negative for the first time since 2012.

Since 2013, Encana has beat earnings expectations ~67% of the time. During the natural gas uptrend from 4Q12 to 2Q14, Encana beat earnings expectations 100% of the time.

Since 2013, other upstream players Devon Energy (DVN), ConocoPhillips (COP), and Range Resources (RRC) have beat earnings expectations ~80%, ~67%, and ~67% of the times, respectively.

In this series

In the rest of this series, we’ll look at Encana’s 3Q16 cash flow, operational performance, outlook for the next two years, Wall Street analyst ratings, price forecasts using implied volatility, and how its stock price reacted to past earnings beats.

Now let’s take a look at how much cash Encana generated in 3Q16.

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