EnCana CEO: Company to remain conservative with capital spending

By Jennifer Lanning Drey

Portland, Ore., June 15 - EnCana Corp. believes its portfolio of assets is capable of generating significant growth but plans to remain conservative with its capital in light of the current economic environment, Randy Eresman, chief executive officer of EnCana, said Monday at the CAPP Investment Symposium in Calgary, Alta.

"This is a time we need to be a little bit more conservative about our capital spending plan," Eresman said.

The company continues to adjust its portfolio to ensure it is focused on the lowest-cost and most economic areas of North America, he said.

"Attractive returns are still possible, despite our expectation of lower, longer-term prices," Eresman said.

EnCana expects to generate cash flow in a range of $7.1 billion to $8.3 billion for full-year 2009 and will continue to return capital to shareholders through a strong dividend, he said.

EnCana's confidence in its ability to generate cash flow comes in part from its risk management program, which provides downside protection on a go-forward basis for 51% of expected 2009 production, Eresman said.

"Our successful strategy, commitment to free cash flow and conservative approach to debt has resulted in considerable strength and flexibility," he said.

EnCana is a Calgary, Alta., oil and natural gas company.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.