EnCana Corporation (Encana or 'the company') is a leading North American energy producer that is focused on developing its strong portfolio of diverse resource plays producing natural gas, oil and NGLs. Encana's operations also include the marketing of natural gas, oil and NGLs. All of Encana's reserves and production are located in North America.
During FY2016, the company had a total of 789.7 million barrels of oil equivalent (MMBoe) reserves including 2,902 billion cubic feet (Bcf) of natural gas, 155.6 million barrels (MMBbls) of oil and 150.4 MMBbls of NGLs.
The company operates through three segments that are categorized based on the company's operations and geographic locations. Encana's operating segments include: the US Operations, Canadian Operations, and Market Optimization. In addition the company also operates through Corporate and Other segment.
The US Operations segment includes the exploration for, development of, and production of natural gas, oil and NGLs and other related activities within the US. Core assets that are part of the US include: Eagle Ford in south Texas and Permian in west Texas. Other Upstream Operations comprise assets that are not part of Encana’s current strategic focus and primarily include: San Juan in northwest New Mexico, Piceance in northwest Colorado and Tuscaloosa Marine Shale in east Louisiana and west Mississippi.
Eagle Ford is a tight oil play located in south Texas in the Karnes, Wilson and Atascosa counties. The focus is on the development of the thickest portion of the Eagle Ford shale in the Karnes Trough, where Encana holds a largely contiguous position. At December 31, 2016, Encana controlled approximately 42,000 net acres in the play. In 2016, Encana drilled approximately 28 net wells in the area and production averaged approximately 32,400 barrels per day (bbls/d) of oil, approximately 48 million cubic feet per day (MMcf/d) of natural gas and approximately 7,200 bbls/d of NGLs.
Permian is a tight oil play located in west Texas in the Midland, Martin, Howard, Glasscock and Upton counties. The primary focus is on the development of the Spraberry and Wolfcamp formations, in the Midland basin, where Encana holds a large position. At December 31, 2016, Encana controlled approximately 127,000 net acres in the play. In 2016, Encana drilled 78 horizontal net wells and 10 vertical net wells in the area. In 2016, production averaged approximately 29,800 bbls/d of oil, approximately 50 MMcf/d of natural gas and approximately 10,000 bbls/d of NGLs.
San Juan is a light sweet oil play located in the San Juan Basin in northwest New Mexico where Encana has a significant land position. In 2016, production averaged approximately 3,900 bbls/d of oil and NGLs and approximately 9 MMcf/d of natural gas. At December 31, 2016, Encana had approximately 204 gross producing wells (109 net producing wells) and controlled approximately 203,000 net acres in the play, which includes 164,000 net undeveloped acres.
Piceance is a play located in northwest Colorado where Encana historically focused development on natural gas in the Williams Fork, Iles, Mancos and Niobrara formations within the play. In 2016, production averaged approximately 271 MMcf/d of natural gas, approximately 2,800 bbls/d of oil and NGLs. At December 31, 2016, Encana had approximately 3,967 gross producing natural gas wells (3,236 net producing natural gas wells) and controlled approximately 693,000 net acres in the play, which includes 447,000 net undeveloped acres.
The Tuscaloosa Marine Shale is an emerging oil play located in east Louisiana and west Mississippi. In 2016, production averaged approximately 2,400 bbls/d of oil. At December 31, 2016, Encana had approximately 48 gross producing oil wells (32 net producing oil wells) and controlled approximately 144,000 net acres, which includes 117,000 net undeveloped acres.
In FY2016, the US Operations segment had total capital investment of approximately $873 million and drilled approximately 116 net wells all of which were in Eagle Ford and Permian. At the end of FY2016, the segment had a total of 5,413 net producing wells. Production after royalties averaged approximately 417 million cubic feet per day (MMcf/d) of natural gas, approximately 71,700 barrels per day (bbls/d) of oil, and approximately 23,200 bbls/d of NGLs. At December 31, 2016, the US operations had an established land position of approximately 1.2 million net acres including approximately 0.8 million net undeveloped acres.
In FY2016, the US Operations segment reported revenues of $1,770 million, which accounted for 60.7% of the company's total revenue.
Canadian Operations segment include the exploration for, development of, and production of natural gas, oil and NGLs and other related activities within Canada. Core assets in Canada include: Montney in northeast British Columbia and northwest Alberta and Duvernay in west central Alberta, and other upstream Operations comprise assets that are not part of Encana’s current strategic focus and include: Wheatland in southern Alberta, Horn River in northeast British Columbia and Deep Panuke located offshore Nova Scotia.
Montney is primarily a condensate rich natural gas play located in northeast British Columbia and northwest Alberta. In 2016, total production from the play averaged approximately 735 MMcf/d of natural gas and approximately 18,500 bbls/d of oil and NGLs. As at December 31, 2016, Encana controlled approximately 890,000 net acres in the play.
Duvernay is an emerging liquids rich shale gas play located in west central Alberta and includes properties that are primarily located in the Duvernay formation, but also holds potential in other formations such as the Montney. As at December 31, 2016, Encana controlled approximately 369,000 net acres in the play.
Wheatland is located in southern Alberta and includes producing horizons such as the Lethbridge and Horseshoe Canyon formations, shallow sands formations including the Belly River, Medicine Hat and deeper natural gas formations including the Glauconitic and Mannville formations. Production averaged approximately 76 MMcf/d of natural gas and approximately 400 bbls/d of oil and NGLs. As at December 31, 2016, Encana had approximately 5,164 gross producing wells (5,059 net producing wells) and controlled approximately 757,000 net acres in the play, which includes 109,000 net undeveloped acres.
Horn River is located in northeast British Columbia, where development was historically in the Horn River Basin shales (Muskwa, Otter Park and Evie), which are upwards of 500 feet thick. In 2016, Encana’s natural gas production averaged approximately 58 MMcf/d. As at December 31, 2016, Encana had approximately 97 gross producing horizontal wells (49 net producing horizontal wells) and controlled approximately 168,000 net acres, which includes 147,000 net undeveloped acres in the Horn River Basin shales.
Encana is the owner and operator of the Deep Panuke gas field located offshore Nova Scotia, which is approximately 250 kilometers southeast of Halifax on the Scotian shelf. In 2016, natural gas production averaged approximately 52 MMcf/d. At December 31, 2016, Encana had approximately four gross producing wells (four net producing wells) and controlled approximately 30,000 net acres offshore Nova Scotia. Encana operates five of its six licenses in these areas.
In FY2016, the Canadian operations had total capital investment of approximately $256 million and drilled approximately 44 net wells all of which were in Montney and Duvernay. The company had a total of 6,268 producing wells in Canada region. Production after royalties averaged approximately 966 MMcf/d of natural gas, approximately 2,000 bbls/d of oil, and approximately 25,200 bbls/d of NGLs. At December 31, 2016, the Canadian operations had an established land position in Canada of approximately 2.4 million net acres including approximately 1.2 million net undeveloped acres.
In FY2016, the Canadian Operations segment reported revenues of $1,067 million, which accounted for 36.6% of the company's total revenue.
Market Optimization segment activities are managed by the midstream, marketing and fundamentals team, which is primarily responsible for the sale of the company's proprietary production and enhancing the associated netback price. Market optimization activities include third party purchases and sales of product to provide operational flexibility for transportation commitments, product type, delivery points and customer diversification.
In FY2016, the Market Optimization segment reported revenues of USD646.0 million, which accounted for 22.1% of the company's total revenue.
Corporate and other is not an operating segment and mainly includes unrealized gains or losses recorded on derivative financial instruments. Once the instruments are settled, the realized gains and losses are recorded in the operating segment to which the derivative instruments relate.
Geographically, the company classifies its operations into two segments, namely US and Canada. In FY2016, the US segment accounted for 66.9% of the company's total revenues, followed by Canada with 33.1%.
Scope of the Report
-- About the Company - Historical Details, Current Ownership Structure and basic overview of EnCana Corporation in terms of revenue, net income, and operating income.
-- Financials - Details about EnCana Corporation listing status, annual financial reports (for the past 5 years), key financial highlights and region wise and category wise breakdown of their net revenue.
-- Products / Services - Listing of the company’s entire portfolio along with description of individual products / services providing a clear picture of their target audience.
-- Company SWOT Analysis - Outlines EnCana Corporation’s strengths, weaknesses, and opportunities and threats facing the company.
-- Recent Developments - Showcases EnCana Corporation’s recent developments including mergers, acquisitions, partnerships, collaborations, new product launches, investment and divestment plans.
-- Strategic Evaluation - Provides an overview of EnCana Corporation’s corporate goals and strategic initiatives and evaluates their outcomes along with outlining any persisting legal issues and outlook of our in-house analyst panel on the particular company.
-- Technology Landscape - Details how the company allocates its IT budget across the core areas of its business, CIO/CTO Profile, Key IT Initiatives and Deals undertaken buy the company at present along with outlook.
Key Questions Answered
-- What domain does EnCana Corporation operate and what are key points about it?
-- What is the product / service portfolio of EnCana Corporation?
-- How has EnCana Corporation performed financially from the 2013?
-- How does EnCana Corporation rank among its peers in terms of revenue and market share?
-- What are EnCana Corporation strengths and weaknesses and what opportunities and threats does it face?
-- What are EnCana Corporation’s main growth strategies and how successful has the company been at implementing them?
-- What is the in-house technical capability of EnCana Corporation? Where does it procure / outsource it?
Reasons to buy
-- Report delivered in easily accessible PPT format which can be used to gain insights quickly and further prepare presentations of your own
-- Lean pricing structure ultimately giving you vast access to the unlimited knowledge repository of the company profiles at very competitive cost
-- 12 hour delivery time fulfilling your urgent requests as per your requirement
-- On-demand customization options that can completely cater to your needs by focusing the report onto given specifics
1. About the Company
1.1 History and Basic Facts
1.2 Ownership Structure and Key Executives
1.3 Head Office
1.4 Other Locations & Subsidiaries
1.5 List of Competitors
1.6 Employee Count & Distribution
2.1 Company Type (Listed / Unlisted)
2.2 Annual Statements
2.3 Key Financial Highlights
2.4 Region-wise Breakdown
3. Product / Services
4. SWOT Analysis
4.1 SWOT Overview
5. Recent Developments
5.1 Mergers & Acquisitions
5.2 Partnerships, Collaborations & Joint Ventures
5.3 New Product Launches
5.4 Business Expansion / Divestment
6. Strategic Evaluation
6.1 Corporate Strategy
6.2 Legal Issues
6.3 Analyst Outlook
7. Technology Landscape
-- 7.1.1 Industry Snapshot
-- 7.1.2 IT Spend
-- 7.1.3 Key Information Technology Trends
-- 7.2.1 IT Overview
-- 7.2.2 Key IT Technologies
-- 7.2.3 Recent IT Initiatives
-- 7.2.4 IT Outsourcing Engagements
-- 7.2.5 Key IT Management
-- 7.2.6 CIO/CTO Profile
-- About Us
-- Contact Us