Encana announced on Tuesday that it had posted a net loss of $245 million in the first quarter of 2019, compared with net earnings of $151 million in the first quarter of 2018.
The primary drivers associated with the loss before tax were non-cash unrealized losses on risk management of $427 million, restructuring costs of $113 million and acquisition-related costs of $31 million, the company said in a news release.
“We are off to a very strong start to 2019. Integration of Newfield into Encana has gone exceptionally well, and we now expect to deliver annual general and adminstrative synergies of at least $150 million, 20 per cent greater than our original commitment,” said Encana president and CEO Doug Suttles in a statement.
“In addition, we have already achieved our objective of reducing Anadarko well costs by $1 million and our most recent wells have delivered even larger savings. All of this was accomplished within weeks of closing.
“This strong start gives us confidence that we will meet our annual guidance, deliver competitive growth and generate substantial free cash within our stated capital guidance. Year to date, we have executed about 61 per cent of our share buyback program and increased our dividend by 25 per cent. These results demonstrate the quality of our business and our commitment to return cash to shareholders.”
– Mario Toneguzzi for Calgary’s Business