Encana Corp. (NYSE: ECA) reported a quarterly operating profit that topped analysts' estimates and boosted its 2017 capex target by 50% from a year earlier.

Crude prices are recovering from a two-year slump, prompting oil producers to raise their capital expenditure targets for the year and ramp up drilling and well completions.

The Calgary, Alberta-based company said its capex for the year would range between $1.6 billion and $1.8 billion.

Encana has also narrowed operations to focus on four core North American plays: the Montney and Duvernay in Western Canada, and the Eagle Ford Shale and Permian in the U.S.

The company's oil and NGL production fell nearly 25% to average 108,900 barrels per day in the fourth quarter, while natural gas output fell 19% to 1.28 billion cubic feet per day.

However, Encana's operating expenses nearly halved to $876 million in the quarter, helping it beat analysts' profit estimates for the third straight quarter.

Encana's operating profit, which excludes one-time items, was 9 cents per share, well above 3 cents per share estimated by analysts, according to Thomson Reuters I/B/E/S.

The company's net loss narrowed to $281 million for the three months ended Dec. 31 from $612 million a year earlier, when it took an impairment charge of $805 million.