Goldman Sachs Comments On EnCana's 1Q11 Results

According to Goldman Sachs, EnCana (NYSE: ECA) reported 1Q11 adj. EPS of $0.02 vs. GS/consensus $0.15.

Goldman Sachs said that operating cash flow was $932 mn vs. our $978 mn. “The miss was mostly due to lower natural gas production/realized prices and higher costs. Production/ capex guidance for 2011 was unchanged. ECA is shifting capex to liquids vs. gas (due to low gas prices and liquids drilling success by peers), in contrast to its strategy a year ago that ECA could aggressively grow gas production and thrive at low gas prices. Our 2011E/2012E/2013E EPS go to $0.45/$0.60/ $0.27 from $0.63/$0.54/$0.32 on production mix, cost and hedging changes.”

EnCana closed yesterday at $32.78.