Encana Corp. (NYSE: ECA) cut its capital budget and production target for 2016 and said it would slash more jobs as the company struggles to cope with a steep fall in oil prices.
Encana lowered the upper end of its production target for this year to 360,000 barrels of oil equivalent per day (boe/d) from 370,000 boe/d, maintaining the lower end at 340,000 boe/d.
The oil and natural gas producer also slashed its capital spending target to $900 million-$1 billion from $1.5 billion-$1.7 billion it forecast earlier.
Encana, which cut 200 jobs in July last year, said on Feb. 24 it would lay off 20% of its workforce this year.
The company reported a net loss of $612 million attributable to common shareholders for the fourth quarter ended Dec. 31. Encana had a profit of $198 million in the year-earlier quarter.
Excluding items, the company reported an operating profit of 13 cents per share, handily beating the analyst average estimate of 1 cent, according to Thomson Reuters.
Encana's core assets include the Permian Basin and Eagle Ford Shale in Texas and the Duvernay and Montney plays in Canada.
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