Prince George, B.C.- EnCana Corporation is releasing it's second quarter results. The 2^nd quarter numbers show the company has exceeded its target of saving %900 million dollars and some of the savings have been re-deployed to other parts of EnCana’s portfolio, namely the shale gas projects.

 

The reports indicates that in the 2^nd quarter, a time of very low natural gas prices, cash flow was $2.2 billion, or $2.87 per share, and operating earnings were $917 million, or $1.22 per share – down 25 and 38 percent respectively on a per share basis compared to the second quarter of 2008

 

“EnCana’s continued strong financial and operating performance during this period of weak natural gas prices provides clear evidence of how our risk management measures reduce volatility in our business and help us continue to enhance long-term value creation. In the past year, natural gas prices dropped close to 70 percent, yet we have continued to meet or exceed our 2009 financial and operating objectives. Our natural gas price hedges provide an increased level of certainty to our cash flows so that we can most effectively manage our capital programs. Operationally, our production is on track for the year and we have additional natural gas productive capacity that we are not bringing on due to the prevailing weak prices. In our oil activities, we’ve seen a promising price recovery from the first quarter of 2009 and our newly expanded oil projects at Foster Creek and Christina Lake are ramping up production, up about 65 percent in the past year,” said Randy Eresman, EnCana’s President & Chief Executive Officer.

 

“Through 2009, EnCana will remain focused on directing our capital investment to our lowest cost, highest return projects and on maintaining our financial strength and flexibility. We are taking advantage of cost deflation and reduced industry activity by renegotiating supply and services contracts and by improving efficiencies.”