Increased production in second quarter buffers lower prices for EnCana

Steve Sutherlin

Calgary, Alberta-based EnCana Corp. earned C$458 million or 97 cents per diluted share in the second quarter of 2002, the company said July 25. Included in second quarter earnings is an unrealized after tax gain of C$134 million, or 29 cents per share diluted, related to foreign exchange gains on EnCana’s U.S. dollar denominated debt. Revenues were C$2.676 billion in second quarter 2002.

Daily oil and gas sales were 693,104 barrels of oil equivalent, up more than 10 percent from the pro forma second quarter results of EnCana’s founding companies one year earlier, the company said.

The company earned C$445 million from continuing operations, or C$1.70 per share diluted on revenue of C$1.136 billion in second quarter 2001, calculated on a pro forma basis as if the merger of PanCanadian Energy Corp. and Alberta Energy Co. Ltd. had occurred at the beginning of the period.

“I’m pleased to report that our merger is complete and EnCana is forging full speed ahead,” said Gwyn Morgan, EnCana president and CEO. Morgan said proceeds from the sale of interests in two major oil pipelines would be re-deployed into upstream and natural gas storage opportunities.

The company said increased production resulting primarily from the merger with Alberta Energy Co. Ltd. helped compensate for lower natural gas prices in the quarter.