Encana starts up second Montney plant ahead of schedule and under budget; condensate growth to expand margins and drive quali...
05 October 2017 - 11:00AM
(TSX:ECA) (NYSE:ECA) Encana successfully started up the Sunrise
processing plant on September 27, under budget and more than one
month ahead of original schedule. Sunrise is the second of three
processing plants that support Encana’s condensate-focused growth
plan in the Montney.
In parallel with the Sunrise and Tower
facilities ramping up, the third plant, Saturn remains ahead of
schedule and is on track to start up before year-end. In addition,
the Towerbirch lateral pipeline which connects all three plants to
the NGTL system started up on October 1.
“Our ability to deliver complex projects ahead
of schedule and under budget demonstrates the strength of our
execution capabilities,” said Doug Suttles, Encana President and
CEO. “The new processing and midstream infrastructure now in place
firmly supports our growth plan in the Montney, which is a key
driver to expanding our corporate margin and delivering quality
returns.”
Encana’s innovative midstream agreement with
Veresen Midstream enables Encana, via the Cutbank Ridge
Partnership, to construct and operate the Tower, Sunrise and Saturn
plants, as well as any future build opportunities, on behalf of
Veresen Midstream on a contracted basis. Veresen Midstream funds
and owns the facilities and Encana pays to use them through a
fee-for-service agreement.
Encana Corporation Encana is a
leading North American energy producer that is focused on
developing its strong portfolio of resource plays, held directly
and indirectly through its subsidiaries, producing oil, natural gas
liquids (NGLs) and natural gas. By partnering with employees,
community organizations and other businesses, Encana contributes to
the strength and sustainability of the communities where it
operates. Encana common shares trade on the Toronto and New York
stock exchanges under the symbol ECA.
ADVISORY REGARDING FORWARD-LOOKING
STATEMENTS - This news release contains certain
forward-looking statements or information (collectively, “FLS”)
within the meaning of applicable securities legislation. FLS
include: status, operational timing and cost of certain facilities;
expectation of meeting or exceeding targets in Encana’s corporate
guidance; anticipated plans, production, growth and commodity mix,
including impact to cash flow and timing thereof; ability to expand
corporate margin, deliver quality returns, lower costs and drive
efficiency; Encana’s execution capabilities; future build
opportunities and funding thereof; and performance relative to
peers.
Readers are cautioned against unduly relying on
FLS which, by their nature, involve numerous assumptions, risks and
uncertainties that may cause such statements not to occur, or
results to differ materially from those expressed or implied. These
assumptions include: future commodity prices and differentials;
foreign exchange rates; Encana’s ability to access its revolving
credit facilities and shelf prospectuses; assumptions contained in
Encana’s corporate guidance and in the news release; data contained
in key modeling statistics; availability of attractive hedges and
enforceability of risk management program; effectiveness of
Encana's drive to productivity and efficiencies; results from
innovations; expectation that counterparties will fulfill their
obligations under the gathering, midstream and marketing
agreements; access to transportation and processing facilities
where Encana operates; assumed tax, royalty and regulatory regimes;
and expectations and projections made in light of, and generally
consistent with, Encana's historical experience and its perception
of historical trends, including with respect to the pace of
technological development, the benefits achieved and general
industry expectations.
Risks and uncertainties that may affect these
business outcomes include: business interruption and casualty
losses or unexpected technical difficulties, including impact of
weather and access to properties; the ability to generate
sufficient cash flow to meet Encana's obligations; commodity price
volatility; ability to secure adequate product transportation and
potential pipeline curtailments; variability and discretion of
Encana's board of directors to declare and pay dividends, if any;
the timing and costs of well, facilities and pipeline construction;
counterparty and credit risk; risk and effect of a downgrade in
credit rating and its impact on access to capital markets and other
sources of liquidity; fluctuations in currency and interest rates;
risks inherent in Encana's corporate guidance; failure to achieve
anticipated results from cost and efficiency initiatives; risks
inherent in marketing operations; risks associated with technology;
changes in or interpretation of royalty, tax, environmental,
greenhouse gas, carbon, accounting and other laws or regulations;
risks associated with existing and potential future lawsuits and
regulatory actions made against Encana; impact to Encana as a
result of disputes arising with its partners, including the
suspension by its partners of certain of their obligations and the
inability to dispose of assets or interests in certain
arrangements; Encana's ability to acquire or find additional
reserves; imprecision of reserves estimates and estimates of
recoverable quantities of natural gas and liquids from plays and
other sources not currently classified as proved, probable or
possible reserves or economic contingent resources, including
future net revenue estimates; risks associated with past and future
acquisitions or divestitures of certain assets or other
transactions or receipt of amounts contemplated under the
transaction agreements (such transactions may include third-party
capital investments, farm-outs or partnerships, which Encana may
refer to from time to time as “partnerships” or “joint ventures”
and the funds received in respect thereof which Encana may refer to
from time to time as “proceeds”, “deferred purchase price” and/or
“carry capital”, regardless of the legal form) as a result of
various conditions not being met; and other risks and uncertainties
impacting Encana's business, as described in its most recent Annual
Report on Form 10-K and as described from time to time in Encana’s
other periodic filings as filed on SEDAR and EDGAR.
Although Encana believes the expectations
represented by such FLS are reasonable, there can be no assurance
that such expectations will prove to be correct. Readers are
cautioned that the assumptions, risks and uncertainties referenced
above are not exhaustive. FLS are made as of the date of this news
release and, except as required by law, Encana undertakes no
obligation to update publicly or revise any FLS. The FLS contained
in this news release are expressly qualified by these cautionary
statements.
Further information on Encana Corporation is
available on the company’s website, www.encana.com, or by
contacting:
Investor contact:Brendan McCrackenVice-President,
Investor Relations(403) 645-2978 Patti
PosadowskiSr. Advisor, Investor Relations(403)
645-2252 |
Media contact:Simon
ScottVice-President, Communications(403) 645-2526
Jay AverillDirector, Media Relations(403)
645-4747 |
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SOURCE: Encana Corporation |
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