Encana hikes targets for cash flow, investment, liquids production

BUSINESS

Encana hikes targets for cash flow, investment, liquids production

The Canadian Press Published Thursday, July 24, 2014 9:55AM EDT

$Encana Corp. hydraulic fracturing operation$

In this March 25, 2014 photo, a machine mixes sand and water, left, before it is pumped underground during a hydraulic fracturing operation at an Encana Corp. well pad near Mead, Colo. (AP / Brennan Linsley)

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CALGARY -- Encana Corp. (TSX:ECA) says strong performance in 2014 has led it it to hike its cash flow targets for the year.

The Calgary-based energy giant says cash flow is now expected to range from between $3.4 billion to $3.6 billion compared to $2.9 billion to $3 billion.

Production of valuable natural gas liquids is also expected to come in above previous targets at between 86,000 to 91,000 barrels per day from between 68,000 and 73,000 barrels per day.

Capital spending is expected to rise by about $300 million as a result of Encana's $3.1 billion acquisition of land in the Eagle Ford formation in Texas.

Encana said it earned a second-quarter profit attributable to shareholders of $271 million, or 37 cents per share, compared with a profit of $730 million, or 99 cents per share a year ago.

Revenue, net of royalties, totalled $1.58 billion compared with $1.98 billion a year ago.