Capital program guidance
For 2017, Encana’s (ECA) capital program will be in the range of $1.6 billion–$1.8 billion, which represents a mid-point increase of ~55% compared with capital expenditures of ~$1.1 billion in 2016. Encana’s capital program in 2017 will be funded by cash flow and cash on hand.
Most of ECA’s capital will be allocated to its core four assets, with the Permian receiving the most capital, followed by Eagle Ford, Montney, and Duvernay assets. In 2016, Encana allocated 97% of its 2016 capital to its four core assets.
For 2017, Encana expects total production (USO) (UNG) in a range of 320–330 Mboepd (thousand barrels of oil equivalent per day), which represents a mid-point decrease of ~8% from production in 2016. Encana expects to return to sequential production growth in 3Q17.
For its core assets, Encana expects production growth of ~20% from 4Q16 to 4Q17. Encana’s core assets should contribute ~78% to its estimated 2017 production.
Encana’s peer ConocoPhillips (COP) expects full-year production in a range of 1,540–1,570 Mboepd, a mid-point of decrease of ~7 Mboepd (or ~0.45%) from 2016.