Encana Corp., Calgary, reported a $1.3 billion impairment charge for the second quarter, which executives said reflected a decline in oil and natural gas reserves values because of lower commodity prices. Overall Encana reported a second-quarter loss of $1.6 billion.
Doug Suttles, Encana chief executive officer, said during a July 24 conference call that he remains committed to boosting second-half liquids production from Encana’s core plays—the Eagle Ford and Permian in Texas and the natural gas liquids-rich Duvernay and Montney in Western Canada.
The 2015 budget remains the same, said Suttles, adding that production volumes might decline during 2016 if crude oil and gas prices continue downward.
“Clearly as we look towards 2016, the amount of money we spend and ultimately the amount of oil and gas we produce will be dependent on the price,” he said.