Encana announced Tuesday its “highly focused” 2015 capital program in which the company plans to spend between $2.7 and $2.9 billion, with approximately 80 percent of it directed to four of its highest margin growth plays. Those growth plays include the Montney, Duvernay, Eagle Ford and Permian.
Encana also says they plan to deliver an approximate 70 percent year-over-year growth in liquids production as well as continuing to realize capital and cost efficiency improvements. Two other areas of focus for Encana are protecting its balance sheet and maintaining financial flexibility to respond to market dynamics and optimizing and enhancing cash flow from base assets.
Doug Suttles, Chief Executive Officer and President of Encana:
“In 2015, we plan to continue to execute our strategy and capitalize on the portfolio we have built by investing in our highest margin plays and highest impact projects to keep us on track to reach our long-term strategic goals.”
Encana says that the Eagle Ford, Permian, Montney and Devernay growth plays have low supply costs averaging about $35 to $55 per boe (barrels of oil equivalent) and are capable of delivering quality returns in a lower commodity price environment. Encana anticipates the four growth plays to contribute about 60 percent of total production and 70 percent of total upstream operating cash flow in 2015.