Encana Q4 Loss Widens, Adj. Earnings Beat View As Liquids Production Rises

(RTTNews) - Canadian energy producer Encana Corp. (ECA.TO, ECA) Thursday reported a wider loss for the fourth quarter, reflecting change in unrealized hedging position, a foreign exchange loss as well as charges related to its organizational restructuring.

However, adjusted earnings topped analysts' expectations on significant year-over-year increases in liquids production.

Liquids output averaged 66,000 barrels per day, an 82 percent increase year-over-year. Meanwhile, natural gas production, after royalties, declined 7 percent to 2,744 million cubic feet per day, or Mmcf/d.

For the quarter, the company posted a net loss of $251 million, significantly wider than $80 million in the prior-year quarter.

Operating earnings, a non-GAAP measure, totaled $0.31 per share in the latest period, while the company posted $0.40 per share last year.

On average, 17 analysts polled by Thomson Reuters expected earnings per share of $0.20 for the quarter. Analysts' estimates typically exclude one-time items.

Unrealized hedging loss totaled $209 million, compared to a loss of $72 million reported last year. Non-operating foreign exchange loss was $124 million, as against a loss of $66 million a year earlier.

The firm also recorded restructuring charges of $64 million in the fourth quarter of 2013.

Looking ahead to full-year 2014, Encana forecast a 30 percent year-over-year increase in total liquids production. Natural gas production is expected to decline slightly in 2014.

Doug Suttles, president and CEO of the company said, "We finished 2013 strong and we're well positioned to deliver on our priorities and objectives in 2014 with our new strategy very much underway."

Further, Encana's board has declared a quarterly dividend of $0.07 cents per share, to shareholders of record on March 14, 2014, payable on March 31.

ECA is currently trading at $19.03, up 2.48 percent on the NYSE. On the Toronto Stock Exchange, the shares ended on Wednesday at C$20.48.