“We’ll still be remaining very active in the Montney, but it will certainly be at an adjusted pace that makes more sense given the current market conditions,” says McIntyre. “We are currently not looking at any layoffs.”
The Montney represents 35 per cent of their gross investment for a total expenditure of $570 million for 2015 – compared to the anticipated $600 million – $700 million projected in December 2014.
“Certainly there was more than a $100 million reduction but we still plan to run three rigs.”
McIntyre says in late-2013 and early-2014, the company had a “significant restructuring” that resulting in a workforce cut of 20 per cent – leaving the company “leaner”.
“We feel that we’re in a very good place to deal with any of the commodity price cycles,” explains McIntyre.
Encana has adjusted to assume the price of West Texas Intermediate oil to be $50 US per barrel and $3 per million British thermal units of natural gas.
In the fourth quarter of 2014, the company reported a cash flow of $377 million and $35 million in operating earnings. That’s compared to a $677 million cash flow and $226 million operation earnings in the fourth quarter of 2013.
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