Encana’s production guidance
For 2017, Encana expects total production in a range of 310–320 Mboepd (thousand barrels of oil equivalent per day), which represents a mid-point decrease of ~8% from its production in 2016.
Based on ECA’s 2017 production guidance and its production in the first three quarters of 2017, ECA’s 4Q17 production should come in the range of 322–342 Mboepd. This range also means ECA could report its first quarterly production growth in the last two years. On a year-over-year basis, the mid-point of Encana’s estimated 4Q17 production guidance range is ~3% higher compared with 4Q16 production of ~322 Mboepd. Even sequentially, Encana’s estimated 4Q17 production guidance is ~17% higher compared with its 3Q17 production of ~284 Mboepd.
For 2017, Encana expects natural gas (UNG) production in a range of 1,075–1,125 MMcf (million cubic feet) per day and liquids production in a range of 127–132 MBbls (thousand barrels) per day.
Encana’s core assets
On January 9, Encana announced that its core assets delivered production growth of around 31% in 4Q17 compared to 4Q16. Per ECA’s 3Q17 earnings presentation, it was expecting production growth of ~31% from 4Q16 to 4Q17 for its core assets. Encana’s Montney assets’ liquids production more than doubled in 4Q17 compared with 4Q16. Encana’s core assets include the Eagle Ford Shale and Permian Basin in the United States and Montney and Duvernay in Canada.
EP Energy (EPE), Diamondback Energy (FANG), Energen Corporation (EGN), and Approach Resources (AREX) also operate in the Permian Basin and have a higher percentage of crude oil in their production mix.