EnCana boosts gas sales 21% as high prices bolster results

Allen Baker, PNA contributing writer

EnCana Corp. reported profits of C$429 million in the fourth quarter as gas sales surged 21 percent compared with the total for its predecessor companies the year before. Comparisons with the prior period are difficult because of the merger that formed EnCana early last year.

The profit for the fourth quarter was more than double the C$204 million the Calgary-based company posted in the third quarter of this year, when it took a big charge due to foreign exchange losses.

Average gas sales in the fourth quarter were 3.04 billion cubic feet daily, including 149 million cubic feet coming out of storage. Liquid sales averaged 271,000 barrels daily, up 8 percent from the total produced by Alberta Energy Co. and PanCanadian Energy Co. in the fourth quarter of 2001. That’s about even with the third quarter production figure.

Gas prices averaged C$5.11 in the quarter. That’s 42 percent higher than what the company collected a year ago an 44 percent above the third-quarter figure.

Liquids brought an average of C$32.94, up 26 percent from the corresponding quarter of 2001.

For the year, profits totaled C$1.25 billion on a pro forma basis that assumes the companies operated as one entity for the entire year. The merger actually occurred in late January of last year.

Revenues for the quarter were C$3.39 billion, up from C$2.88 billion in the third quarter. The two predecessor companies operated separately in the last quarter of 2001, so a comparison isn’t available.

For the year, EnCana’s revenues were C$11.21 billion.