Calgary-based Encana (an oil and gas producer), saw their profit fall 7.3% compared to the same period last year.
Production was down to 284,000 barrels of oil equivalent per day compared to 338,000 last year. Natural gas production fell a full 29%.
Profit fell from $317 million to $294 million.
Notably, Encana seems to be doing well in the Permian basin in the United States, raising the issue of a possible gap between US and Canadian production going forward.
The company also locked in 88,000 barrels per day of oil and condensate in 2018 at the price of $53 per barrel in USD, protecting them against a possible oil price decline, while forgoing the ability to benefit if prices rise further.
Encana shares fell 2.3% on the TSX.
Encana’s profit decline will raise further concerns among many about the health of Canada’s energy industry, particularly as we have a federal government unwilling to stand up for Canada’s energy sector.