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.

Did You Like this Article? Get All the Energy Industry News Delivered to Your Inbox

Subscribe to an email newsletter today at no cost and receive the latest news and information.

 Subscribe Now


Making DDoS Mitigation Part of Your Incident Response Plan: Critical Steps and Best Practices

Like a new virulent strain of flu, the impact of a distributed denial of service (DDoS) attack is...

The Multi-Tax Challenge of Managing Excise Tax and Sales Tax

To be able to accurately calculate multiple tax types, companies must be prepared to continually ...

Operational Analytics in the Power Industry

Cloud computing, smart grids, and other technologies are changing transmission and distribution. ...

Maximizing Operational Excellence

In a recent survey conducted by PennEnergy Research, 70% of surveyed energy industry professional...