Calgary

Encana posts Q2 loss linked to hedging program but powers ahead by other measures

Operating earnings and production are both up from the same time last year.

Excluding program, company's financial performance improved from last year's 2nd quarter

Encana's hedging program, designed to offset low oil prices, ended up costing the company money in the second quarter. (The Canadian Press)

​Encana Corp. recorded a $151 million net loss in the second quarter linked to its risk management program but says it did better than last year by most other financial measures.

The Calgary-based company said the net loss was equal to 16 cents per share and compared with a year-earlier net profit of $331 million or 34 cents per share.

Excluding unrealized losses from its hedging program, which is designed to offset the impact of low oil prices, Encana's financial performance improved from last year's second quarter.

Operating earnings grew 10 per cent to $198 million, which was ahead of analyst estimates from Thomson Reuters Eikon.

Its cash from operating activities was up nearly 12 per cent at $475 million and cash flow margin was up 57 per cent at $19.09 per oil-equivalent barrel.

Liquids production was 155,300 barrels per day, up 24 per cent from the same time last year.