En su informe trimestral de este miércoles ENCANA anunció que reducirá su plantilla en un 20% este año, ya que busca alcanzar entre 200 $ – $ 250 millones adicionales en ahorros de costos en 2016. ENCANA dice que los despidos de 2016 terminarán con una reducción del 50% de su fuerza de trabajo total desde el año 2013.
No hace mención alguna a sus explotaciones de shale gas y shale oil que fueron sus apuestas en 2014.
Cost Savings Target:
Encana expects its cost structure this year to be about “$550 million lower than in 2015. Of this amount, between $200 million and $250 million are new and incremental savings from the company’s previous 2016 guidance.”
These new cost savings include $50 million in overhead costs, realized primarily through the headcount reductions. Encana also expects to reduce transportation and processing costs by between $75 million and $125 million and cut other costs by $75 million.
Source: Encana, 2/24/16 Conference Call Presentation
55% Capex Cut
The company also revised its 2016 Capex to between $900 million and $1 billion- a 55% decrease from last year. The company said it expects the lower spending to have a minimal effect on 2016 production levels, which are expected to range between 340,000 boepd and 360,000 boepd. Encana estimates total liquids volumes will average between 120,000 bpd and 130,000 bpd with natural gas production ranging from 1,300 MMcf/d to 1,400 MMcf/d.
CEO Doug Suttles said Encana plans to invest 95% of its budget this year to its four core assets: the Permian, Eagle Ford, Duvernay and Montney. “We will invest virtually all of our capital in our core four assets and our cost structure will be about $550 million lower than in 2015.”
Furthering The “Value vs. Volumes” Strategy
Encana continues to pursue CEO Doug Suttles “value vs. volumes” strategy, first articulated in 2014: steering the company towards oil and NGL production- and away from natural gas. The visual below encapsulates Encana’s plans for its core areas this year as it continues to pursue this strategy:
Encana likewise focused its 2015 capital investment on these core assets. 4Q15 production from these assets totaled 274,400 boepd, up 35% from 4Q14 and exceeding the target of 270,000 boepd. The company reported 4Q15 total liquids production of 145,000 bpd- a 36% increase from 4Q14.
Management Comments: Doug Suttles, President & CEO
“Each year since the launch of our strategy, we have strengthened our balance sheet, increased our financial flexibility and lowered our cost structures. We enter 2016 with tremendous liquidity, a robust hedging program and a strong balance sheet which we will continue to prudently manage and protect.”
“The combination of our high quality portfolio, additional improvements in costs and capital efficiency and significant hedge position mean we have largely offset the impacts of a smaller capital program and lower oil and gas prices. Under our new plan, we will invest virtually all of our capital in our core four assets and our cost structure will be about $550 million lower than in 2015.”
4Q15 Results Recap
The company’s quarterly results included a net loss of $612 million, mainly as the result of asset write downs and other non-operating items. Excluding $514 million in asset impairments and other items, Encana’s operating earnings in 4Q were $111 million — an increase from $35 million from the same quarter a year ago.