Canadian oil and gas producer Encana Corp. (NYSE: ECA) posted a bigger-than-expected quarterly loss due to lower production amid a steep fall in oil prices. The company's total production fell by 11% to 383,400 barrels of oil equivalent per day in the first quarter of 2016, which ended March 31.
Calgary, Alberta-based Encana's cash flow, an indicator of its ability to pay for new projects and drilling, fell 79.4% to CA$102 million.
On a per-share basis, Encana posted an operating loss, which excludes most one-time items, of 15 cents compared with a profit of 3 cents one year earlier.
Analysts on average had expected a loss of 12 cents per share, according to Thomson Reuters I/B/E/S.
However, the company's net loss decreased to CA$379 million in 2016's first quarter from CA$1.71 billion a year earlier, helped by lower costs. In 2015's first quarter, Encana took an impairment charge of CA$1.22 billion.
The company said it was on track to deliver CA$550 million of year-over-year cost savings.
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