Encana further reduces 2016 budget by 40%, workforce by 20%

Encana Corp., Calgary, will further cut its planned capital budget for 2016 to $900 million-$1 billion, down 40% from its initial budget for the year and 55% from its 2015 capital investment (OGJ Online, Dec. 14, 2015).

The additional drop includes a 20% workforce reduction, bringing the firm's total workforce reduction since 2013 to more than 50%.

The firm says the reduction will have minimal impact on 2016 production, which is expected to range 340,000-360,000 boe/d. The company estimates total liquids volumes will average 120,000-130,000 b/d with natural gas production ranging 1,300-1,400 MMcfd.

Encana also reported a 2015 net loss of $5.2 billion, largely attributable to after-tax noncash ceiling test impairments totaling $4.1 billion and a nonoperating foreign exchange loss of about $700 million.

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