Encana to update five-year plan during Investor Day; company expects to deliver leading corporate returns, strong cash flow g...
October 18 2017 - 6:00AM
(TSX:ECA) (NYSE:ECA)
At today’s Investor Day in New York City, Encana
President & CEO Doug Suttles, along with members of the
executive and management teams, will outline the company’s
relentless focus on creating value and its updated five-year
plan.
“Successful execution of our strategy and strong
performance through 2017 has set the stage for the next five
years,” said Suttles. “We have created a highly resilient business
that is unique in our industry. Our updated five-year plan is
better on every measure. We are on track to deliver leading
corporate returns, strong cash flow growth and substantial free
cash flow, without any improvement in commodity prices.”
Encana’s track record and continuous focus on
innovation and discipline enables it to create value and manage
risk. Through its five-year plan, the company expects its return on
capital employed will climb to between 10 to 15 percent. In
addition, Encana expects to deliver approximately 25 percent
compound annual growth in non-GAAP cash flow and around $1.5
billion of cumulative non-GAAP free cash flow.
Starting at 8 a.m. ET (6 a.m. MT), the webcast
of Encana’s 2017 Investor Day is available
at:https://livestream.com/ICENYSE2/EncanaInvestorDay2017
Presentation slides for today’s event are
available for download at:
http://www.encana.com/investors/presentations-events/
Encana CorporationEncana 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 NON-GAAP MEASURES - Certain
measures in this news release do not have any standardized meaning
as prescribed by U.S. GAAP and, therefore, are considered non-GAAP
measures. These measures may not be comparable to similar measures
presented by other companies and should not be viewed as a
substitute for measures reported under U.S. GAAP.
- Non-GAAP Cash Flow is a non-GAAP measure
defined as cash from operating activities excluding net change in
other assets and liabilities, net change in non-cash working
capital and current tax on sale of assets. Non-GAAP Free
Cash Flow is defined as Non-GAAP Cash Flow in excess of
capital investment, excluding net acquisitions and
divestitures.
- Return on Capital Employed (ROCE) is a
non-GAAP measure defined as Adjusted Operating Earnings divided by
Capital Employed. Adjusted Operating Earnings is defined as
non-GAAP Operating Earnings (Loss) plus after-tax interest expense.
Capital Employed is defined as average net debt plus average
shareholders’ equity. Non-GAAP Operating Earnings
(Loss) is a non-GAAP measure defined as net earnings
(loss) excluding non-recurring or non-cash items that management
believes reduces the comparability of the company's financial
performance between periods. These items may include, but are not
limited to, unrealized gains/losses on risk management,
impairments, restructuring charges, non-operating foreign exchange
gains/losses, gains/losses on divestitures and gains on debt
retirement. Income taxes may include valuation allowances and the
provision related to the pre-tax items listed, as well as income
taxes related to divestitures and adjustments to normalize the
effect of income taxes calculated using the estimated annual
effective income tax rate.
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: expectation of meeting or exceeding targets in Encana’s
corporate guidance and five-year plan; expected corporate returns,
return on capital employed, cash flow growth and free cash flow at
certain commodity prices; focus on innovation and discipline to
create value and manage risk; 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; assumptions contained
in Encana’s corporate guidance and five-year plan; results from
innovations; access to transportation and processing facilities;
and expectations and projections made in light of, and generally
consistent with, Encana's historical experience and its perception
of historical trends.
Risks and uncertainties that may affect these
business outcomes include: commodity price volatility; ability to
generate cash flow; unexpected technical difficulties; ability to
secure adequate transportation and potential curtailments; risks
inherent in Encana's corporate guidance and five-year plan; access
to sources of liquidity; failure to achieve cost and efficiency
initiatives; imprecision of reserves estimates and recoverable
quantities, including future net revenue estimates; 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 |
Encana (NYSE:ECA)
Historical Stock Chart
From Aug 2024 to Sep 2024
Encana (NYSE:ECA)
Historical Stock Chart
From Sep 2023 to Sep 2024