For: February 15, 2007 | Commission File Number: 1-15226 |
Date: February 15, 2007 |
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ENCANA CORPORATION (Registrant) |
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By: | /s/ Linda H. Mackid
|
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Title: Assistant Corporate Secretary |
Exhibit No. | ||
99.1
|
News release dated February 15, 2007 referenced as: | |
EnCana generates 2006 cash flow of US$7.2 billion, or $8.56 per share |
1
| Cash flow per share diluted increased 3 percent to $8.56 | ||
| Operating earnings per share diluted up 7 percent to $3.91 | ||
| Net earnings per share diluted up 76 percent to $6.76 | ||
| Generated $892 million in free cash flow (as defined in Note 1 on page 8) | ||
| Net divestitures of $3.0 billion, resulting in net capital investment of $3.3 billion | ||
| Purchased 85.6 million EnCana shares at an average share price of $49.26 under the Normal Course Issuer Bid for a total cost of $4.2 billion | ||
| Reduced shares outstanding at year end by 9 percent, net of share option exercises | ||
| At year end, net debt-to-adjusted-EBITDA was 0.6 times and net debt-to-capitalization was 27 percent |
| Key resource play production up 12 percent | ||
| Natural gas production of 3.37 billion cubic feet per day (Bcf/d), up 4 percent | ||
| Oil and natural gas liquids (NGLs) production of about 167,100 barrels per day (bbls/d), down 26 percent, primarily due to the sale of Ecuador oil assets, which produced an average of 12,366 bbls/d in 2006 | ||
| Operating costs of 86 cents per thousand cubic feet equivalent (Mcfe) for continuing operations, up 21 percent due to inflation, a stronger Canadian dollar and higher electricity costs | ||
| Upstream capital investment in continuing operations of $6.2 billion |
| Added 3.1 Tcfe of proved reserves with drill bit additions and revisions in continuing operations | ||
| Added 2.3 Tcfe of proved reserves in total operations, taking into account the sale of about 822 billion cubic feet equivalent (Bcfe) of proved reserves largely as a result of the Ecuador divestiture | ||
| Proved reserves additions included 160 million bbls (960 Bcfe) at the Foster Creek and Christina Lake oilsands key resource plays | ||
| Proved reserves increased 9 percent in continuing operations and 4 percent in total operations to 19.2 Tcfe | ||
| Finding and development (F&D) costs averaged $1.99 per Mcfe for total operations | ||
| Production replacement of 197 percent for continuing operations; 144 percent for total operations, which includes the sale of Ecuador reserves | ||
| Average three-year reserve replacement cost of $1.56 per Mcfe for continuing operations; $1.34 per Mcfe for total operations |
| Created an integrated heavy oil business with ConocoPhillips composed of two 50/50 entities one upstream and one downstream which became effective January 2, 2007. The integrated business intends to produce 400,000 barrels of Canadian bitumen and refine 275,000 barrels of bitumen at two U.S. refineries by 2015. | ||
| Completed sale of Ecuador assets for $1.1 billion and sale of interest in Brazil oil discovery for proceeds of $367 million | ||
| Sold natural gas storage business for $1.5 billion | ||
| Received environmental impact statement approval for Jonah gas field, which enables advancing toward full development of this key resource play |
2
(for the period ended December 31) | Q4 | Q4 | ||||||||||||||||||||||||||||
($ millions, except per share amounts) | 2006 | 2005 | % D | 2006 | 2005 | % D | ||||||||||||||||||||||||
Cash flow |
1,761 | 2,510 | - 30 | 7,161 | 7,426 | - 4 | ||||||||||||||||||||||||
Per share diluted |
2.18 | 2.88 | - 24 | 8.56 | 8.35 | + 3 | ||||||||||||||||||||||||
Net earnings |
663 | 2,366 | - 72 | 5,652 | 3,426 | + 65 | ||||||||||||||||||||||||
Per share diluted |
0.82 | 2.71 | - 70 | 6.76 | 3.85 | + 76 | ||||||||||||||||||||||||
Operating earnings1 |
675 | 1,271 | - 47 | 3,271 | 3,241 | + 1 | ||||||||||||||||||||||||
Per share diluted |
0.84 | 1.46 | - 42 | 3.91 | 3.64 | + 7 | ||||||||||||||||||||||||
Earnings Reconciliation Summary Total Consolidated |
||||||||||||||||||||||||||||||
Net earnings from continuing operations |
643 | 1,869 | - 66 | 5,051 | 2,829 | + 79 | ||||||||||||||||||||||||
Net earnings from discontinued operations |
20 | 497 | - 96 | 601 | 597 | + 1 | ||||||||||||||||||||||||
Net Earnings |
663 | 2,366 | - 72 | 5,652 | 3,426 | + 65 | ||||||||||||||||||||||||
(Add back losses & deduct gains) |
||||||||||||||||||||||||||||||
Unrealized mark-to-market hedging gain (loss), after-tax |
95 | 746 | 1,370 | (277 | ) | |||||||||||||||||||||||||
Unrealized foreign exchange gain (loss) on translation of U.S.
dollar debt issued in Canada, after-tax |
(128 | ) | (21 | ) | | 92 | ||||||||||||||||||||||||
Future tax recovery due to Canada and Alberta tax rate reductions |
| | 457 | | ||||||||||||||||||||||||||
Gain on sale of discontinued operations, after-tax2 |
21 | 370 | 554 | 370 | ||||||||||||||||||||||||||
Operating earnings |
675 | 1,271 | - 47 | 3,271 | 3,241 | + 1 | ||||||||||||||||||||||||
Per share diluted |
0.84 | 1.46 | - 42 | 3.91 | 3.64 | + 7 | ||||||||||||||||||||||||
1 | Operating earnings is a non-GAAP measure that shows net earnings excluding non-operating items such as the after-tax impacts of the gain on the sale of discontinued operations, the after-tax gain/loss on unrealized mark-to-market accounting for derivative instruments, the after-tax gain/loss on translation of U.S. dollar denominated debt issued in Canada and the effect of the reduction in income tax rates. | |
2 | In 2006, gain on sale of natural gas storage business and loss on sale of Ecuador assets |
Cash flow information 2006 | ||||||||||
(for the period ended December 31, $ millions) | Q4 | 2006 | ||||||||
Cash from Operating Activities |
1,697 | 7,973 | ||||||||
Deduct (Add back): |
||||||||||
Net change in other assets and liabilities |
90 | 138 | ||||||||
Net change in non-cash working capital from continuing operations |
39 | 3,343 | ||||||||
Net change in non-cash working capital from discontinued operations |
(193 | ) | (2,669 | ) | ||||||
Cash Flow3 |
1,761 | 7,161 | ||||||||
Cash flow from Discontinued Operations |
19 | 118 | ||||||||
Cash flow from Continuing Operations |
1,742 | 7,043 | ||||||||
3 | 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 from continuing operations and net change in non-cash working capital from discontinued operations, all of which are defined in the Consolidated Statement of Cash Flows. |
3
(for the period ended December 31) | Q4 | Q4 | ||||||||||||||||||||||||||||
(After royalties) | 2006 | 2005 | % D | 2006 | 2005 | % D | ||||||||||||||||||||||||
Natural Gas sales (MMcf/d) |
3,406 | 3,326 | + 2 | 3,367 | 3,227 | + 4 | ||||||||||||||||||||||||
Natural gas sales per 1,000 shares (Mcf) |
395 | 358 | + 10 | 1,499 | 1,357 | + 10 | ||||||||||||||||||||||||
Oil and NGLs sales (bbls/d) |
152,154 | 229,232 | - 34 | 167,070 | 227,065 | - 26 | ||||||||||||||||||||||||
Oil and NGLs sales per 1,000 shares
(Mcfe) |
106 | 148 | - 28 | 446 | 573 | - 22 | ||||||||||||||||||||||||
Total sales (MMcfe/d) |
4,319 | 4,701 | - 8 | 4,369 | 4,589 | - 5 | ||||||||||||||||||||||||
Total sales per 1,000 shares (Mcfe) |
501 | 506 | - 1 | 1,945 | 1,929 | + 1 | ||||||||||||||||||||||||
Net wells drilled |
809 | 1,146 | - 29 | 3,657 | 4,676 | - 22 | ||||||||||||||||||||||||
Continuing Operations |
||||||||||||||||||||||||||||||
North America Natural Gas sales (MMcf/d) |
3,406 | 3,326 | + 2 | 3,367 | 3,227 | + 4 | ||||||||||||||||||||||||
North America Oil and NGLs (bbls/d) |
152,154 | 159,289 | - 4 | 154,704 | 156,000 | - 1 | ||||||||||||||||||||||||
Total sales (MMcfe/d) |
4,319 | 4,282 | + 1 | 4,295 | 4,163 | + 3 | ||||||||||||||||||||||||
Net wells drilled |
809 | 1,138 | - 29 | 3,650 | 4,658 | - 22 | ||||||||||||||||||||||||
Daily Production | ||||||||||||||||||||||||||||||||||||||||||||
2006 | 2005 | |||||||||||||||||||||||||||||||||||||||||||
Full | Full | |||||||||||||||||||||||||||||||||||||||||||
Resource Play | Year | Q4 | Q3 | Q2 | Q1 | Year | Q4 | Q3 | Q2 | Q1 | ||||||||||||||||||||||||||||||||||
Natural Gas (MMcf/d) |
||||||||||||||||||||||||||||||||||||||||||||
Jonah |
464 | 487 | 455 | 450 | 461 | 435 | 454 | 440 | 416 | 431 | ||||||||||||||||||||||||||||||||||
Piceance |
326 | 335 | 331 | 324 | 316 | 307 | 326 | 302 | 302 | 300 | ||||||||||||||||||||||||||||||||||
East Texas |
99 | 95 | 106 | 93 | 99 | 90 | 98 | 94 | 85 | 82 | ||||||||||||||||||||||||||||||||||
Fort Worth |
101 | 99 | 104 | 108 | 93 | 70 | 88 | 66 | 63 | 61 | ||||||||||||||||||||||||||||||||||
Greater Sierra |
213 | 212 | 209 | 224 | 208 | 219 | 226 | 225 | 228 | 195 | ||||||||||||||||||||||||||||||||||
Cutbank Ridge |
170 | 199 | 167 | 173 | 140 | 92 | 125 | 105 | 80 | 56 | ||||||||||||||||||||||||||||||||||
Bighorn |
91 | 99 | 97 | 95 | 72 | 55 | 56 | 57 | 53 | 56 | ||||||||||||||||||||||||||||||||||
CBM1 |
194 | 211 | 209 | 179 | 177 | 112 | 165 | 117 | 104 | 59 | ||||||||||||||||||||||||||||||||||
Shallow Gas |
600 | 601 | 593 | 590 | 615 | 625 | 625 | 616 | 633 | 625 | ||||||||||||||||||||||||||||||||||
Oil (Mbbls/d)
|
||||||||||||||||||||||||||||||||||||||||||||
Foster Creek |
37 | 41 | 37 | 33 | 36 | 29 | 35 | 27 | 24 | 30 | ||||||||||||||||||||||||||||||||||
Christina Lake |
6 | 6 | 6 | 6 | 6 | 5 | 5 | 6 | 7 | 4 | ||||||||||||||||||||||||||||||||||
Pelican Lake |
24 | 20 | 23 | 22 | 29 | 26 | 28 | 27 | 27 | 21 | ||||||||||||||||||||||||||||||||||
Total (MMcfe/d) |
2,656 | 2,740 | 2,668 | 2,601 | 2,609 | 2,366 | 2,567 | 2,381 | 2,312 | 2,197 | ||||||||||||||||||||||||||||||||||
% change from prior years period |
12.3 | 6.7 | 12.1 | 12.5 | 18.8 | 20.0 | ||||||||||||||||||||||||||||||||||||||
1 | CBM 2005 volumes restated to report commingled gas volumes from the coal and sand intervals based on regulatory approval. |
4
Net Wells Drilled | ||||||||||||||||||||||||||||||||||||||||||||
2006 | 2005 | |||||||||||||||||||||||||||||||||||||||||||
Full | Full | |||||||||||||||||||||||||||||||||||||||||||
Resource Play | Year | Q4 | Q3 | Q2 | Q1 | Year | Q4 | Q3 | Q2 | Q1 | ||||||||||||||||||||||||||||||||||
Natural Gas |
||||||||||||||||||||||||||||||||||||||||||||
Jonah |
163 | 41 | 48 | 48 | 26 | 104 | 21 | 25 | 30 | 28 | ||||||||||||||||||||||||||||||||||
Piceance |
220 | 50 | 48 | 59 | 63 | 266 | 55 | 69 | 65 | 77 | ||||||||||||||||||||||||||||||||||
East Texas |
59 | 11 | 12 | 17 | 19 | 84 | 20 | 21 | 22 | 21 | ||||||||||||||||||||||||||||||||||
Fort Worth |
97 | 19 | 22 | 27 | 29 | 59 | 20 | 18 | 12 | 9 | ||||||||||||||||||||||||||||||||||
Greater Sierra |
115 | 5 | 16 | 34 | 60 | 164 | 25 | 33 | 47 | 59 | ||||||||||||||||||||||||||||||||||
Cutbank Ridge |
116 | 19 | 35 | 36 | 26 | 135 | 34 | 40 | 38 | 23 | ||||||||||||||||||||||||||||||||||
Bighorn |
52 | 7 | 7 | 18 | 20 | 51 | 20 | 10 | 10 | 11 | ||||||||||||||||||||||||||||||||||
CBM1 |
729 | 157 | 156 | 35 | 381 | 1,245 | 344 | 314 | 242 | 345 | ||||||||||||||||||||||||||||||||||
Shallow Gas |
1,164 | 326 | 442 | 199 | 197 | 1,267 | 288 | 341 | 365 | 273 | ||||||||||||||||||||||||||||||||||
Oil |
||||||||||||||||||||||||||||||||||||||||||||
Foster Creek |
6 | | | | 6 | 39 | 13 | 14 | 2 | 10 | ||||||||||||||||||||||||||||||||||
Christina Lake |
2 | | | | 2 | | | | | | ||||||||||||||||||||||||||||||||||
Pelican Lake |
| | | | | 52 | | 3 | 33 | 16 | ||||||||||||||||||||||||||||||||||
Total net wells |
2,723 | 635 | 786 | 473 | 829 | 3,466 | 840 | 888 | 866 | 872 | ||||||||||||||||||||||||||||||||||
1 | CBM 2005 wells restated to report commingled gas drilling from the coal and sand intervals based on regulatory approval. |
| Proved reserves increased 4 percent to 19.2 Tcfe | ||
| Proved reserves in North America (continuing operations) increased 9 percent | ||
| Proved reserves additions were 3.1 Tcfe in continuing operations, compared to production of 1.6 Tcfe |
| Proved gas reserves increased 5 percent to 12.4 Tcf | ||
| Proved gas additions were 1.9 Tcf, compared to production of 1.2 Tcf | ||
| Gas production replacement of 152 percent |
| Proved oil and NGLs reserves in continuing operations increased 15 percent to 1.1 billion bbls | ||
| Proved oil and NGLs additions in continuing operations were 205 million bbls, compared to production of 57 million bbls | ||
| Oil and NGLs production replacement of 357 percent in continuing operations |
| Bitumen reserves up 22 percent to 800 million bbls | ||
| Proved bitumen additions were 160 million bbls compared to production of 17 million bbls |
| Total three-year reserves replacement cost averaged $1.34 per Mcfe | ||
| Total 2006 finding and development cost of $1.99 per Mcfe |
5
Natural gas | Crude oil and Natural Gas Liquids | Gas Equivalent1 | |||||||||||||||||||||||||||||||||||||||||||||||
(Bcf) | (MMbbls) | (Bcfe) | |||||||||||||||||||||||||||||||||||||||||||||||
Canada | Canada | Canada | Continuing | ||||||||||||||||||||||||||||||||||||||||||||||
Canada | USA | Total | Conv. | Bitumen | Total | USA | Ecuador | Total | Total | Ops.4 | |||||||||||||||||||||||||||||||||||||||
Start of 2006 |
6,517 | 5,267 | 11,784 | 275.1 | 657.4 | 932.5 | 53.1 | 135.0 | 1,120.6 | 18,507 | 17,697 | ||||||||||||||||||||||||||||||||||||||
Revisions & improved
recovery |
301 | (88 | ) | 213 | 27.5 | (66.5 | ) | (39.0 | ) | (1.1 | ) | | (40.1 | ) | (27 | ) | (27 | ) | |||||||||||||||||||||||||||||||
Extensions & discoveries |
1,014 | 606 | 1,620 | 12.6 | 226.1 | 238.7 | 6.4 | | 245.1 | 3,091 | 3,091 | ||||||||||||||||||||||||||||||||||||||
Acquisitions |
| 68 | 68 | | | | 0.3 | | 0.3 | 69 | 69 | ||||||||||||||||||||||||||||||||||||||
Divestitures |
(6 | ) | (32 | ) | (38 | ) | (0.1 | ) | | (0.1 | ) | | (130.6 | ) | (130.7 | ) | (822 | ) | (38 | ) | |||||||||||||||||||||||||||||
Production |
(798 | ) | (431 | ) | (1,229 | ) | (35.3 | ) | (17.4 | ) | (52.7 | ) | (4.7 | ) | (4.4 | ) | (61.8 | ) | (1,600 | ) | (1,574 | ) | |||||||||||||||||||||||||||
End of 2006 |
7,028 | 5,390 | 12,418 | 279.8 | 799.6 | 1,079.4 | 54.0 | | 1,133.4 | 19,218 | 19,218 | ||||||||||||||||||||||||||||||||||||||
Developed |
4,718 | 2,964 | 7,682 | 215.3 | 101.6 | 316.9 | 33.5 | | 350.4 | 9,784 | 9,784 | ||||||||||||||||||||||||||||||||||||||
Undeveloped |
2,310 | 2,426 | 4,736 | 64.5 | 698.0 | 762.5 | 20.5 | | 783.0 | 9,434 | 9,434 | ||||||||||||||||||||||||||||||||||||||
Total |
19,218 | 19,218 | |||||||||||||||||||||||||||||||||||||||||||||||
- | |||||||||||||||||||||||||||||||||||||||||||||||||
% Change 2 |
+ 8 | + 2 | + 5 | + 2 | + 22 | + 16 | + 2 | + 1 | + 4 | + 9 | |||||||||||||||||||||||||||||||||||||||
Partnership
contribution3 |
| | | | (398.0 | ) | (398.0 | ) | | | (398.0 | ) | (2,388 | ) | (2,388 | ) | |||||||||||||||||||||||||||||||||
Effective
Jan. 2, 2007 |
7,028 | 5,390 | 12,418 | 279.8 | 401.6 | 681.4 | 54.0 | | 735.4 | 16,830 | 16,830 | ||||||||||||||||||||||||||||||||||||||
1 | Gas equivalency has been calculated by EnCana. See the Advisory Regarding Reserves Data and Other Oil and Gas Information accompanying this release. | |
2 | EnCanas growth in proved reserves in 2006 is expressed as the percentage change from the start to the end of the year. | |
3 | Effective January 2, 2007, EnCana established a heavy oil integration arrangement with ConocoPhillips, resulting in ConocoPhillips acquiring a 50 percent interest in EnCanas Foster Creek and Christina Lake oilsands projects and EnCana acquiring a 50 percent interest in ConocoPhillips Wood River and Borger refineries. | |
4 | Continuing operations are composed of North American operations, and exclude the Ecuador assets, which were sold in 2006. |
Cumulative | ||||||||||||||||||||||||
Capital investment | ($ millions) | 2006 | 2005 | 2004 | 2004-06 | |||||||||||||||||||
Finding and development |
6,107 | 6,231 | 4,792 | 17,130 | ||||||||||||||||||||
Acquisitions |
368 | 472 | 3,469 | 4,309 | ||||||||||||||||||||
Divestitures |
(1,639 | ) | (2,552 | ) | (3,827 | ) | (8,018 | ) | ||||||||||||||||
Net capital investment |
4,836 | 4,151 | 4,434 | 13,421 | ||||||||||||||||||||
Total reserve additions |
(Bcfe) | 2,311 | 4,542 | 3,163 | 10,016 | |||||||||||||||||||
($/Mcfe) | 3-year average | |||||||||||||||||||||||
Reserve replacement cost |
2.09 | 0.91 | 1.40 | 1.34 | ||||||||||||||||||||
Finding, development and acquisition cost |
2.07 | 1.36 | 1.70 | 1.66 | ||||||||||||||||||||
Finding and development cost |
1.99 | 1.29 | 1.44 | 1.52 | ||||||||||||||||||||
6
Q4 | Q4 | % | % | |||||||||||||||||||||||||||
Natural gas ($/Mcf) | 2006 | 2005 | Change | 2006 | 2005 | Change | ||||||||||||||||||||||||
NYMEX Price |
6.55 | 12.96 | - 49 | 7.22 | 8.62 | - 16 | ||||||||||||||||||||||||
EnCana Realized Gas Price |
5.79 | 10.29 | - 44 | 6.25 | 7.46 | - 16 | ||||||||||||||||||||||||
Oil and NGLs ($/bbl) |
||||||||||||||||||||||||||||||
WTI Price |
60.17 | 60.05 | + 1 | 66.25 | 56.70 | + 17 | ||||||||||||||||||||||||
Western Canada Select (WCS) |
39.08 | 36.40 | + 7 | 44.69 | 36.39 | + 23 | ||||||||||||||||||||||||
Differential WTI/WCS |
21.09 | 23.65 | - 11 | 21.56 | 20.31 | + 6 | ||||||||||||||||||||||||
EnCana Realized Liquids Price |
38.69 | 37.16 | + 4 | 43.71 | 36.17 | + 21 | ||||||||||||||||||||||||
7
| 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 from continuing operations and net change in non-cash working capital from discontinued operations, all of which are defined on the Consolidated Statement of Cash Flows. | ||
| Total operating earnings is a non-GAAP measure that shows net earnings excluding non-operating items such as the after-tax impacts of a gain on the sale of discontinued operations, the after-tax gain/loss of unrealized mark-to-market accounting for derivative instruments, the after-tax gain/loss on translation of U.S. dollar denominated debt issued in Canada and the effect of the reduction in income tax rates. | ||
Management believes that these excluded items reduce the comparability of the companys underlying financial performance between periods. The majority of the unrealized gains/losses that relate to U.S. dollar debt issued in Canada are for debt with maturity dates in excess of five years. | |||
| Free cash flow is a non-GAAP measure that EnCana defines as cash flow in excess of core capital investment. |
8
9
FOR FURTHER INFORMATION: |
||
Investor contact:
|
Media contact: | |
EnCana Corporate Communications |
||
Sheila McIntosh
|
Alan Boras | |
Executive Vice-President, Corporate Communications
|
Manager, Media Relations | |
(403) 645-2194
|
(403) 645-4747 | |
Paul Gagne |
||
Manager, Investor Relations |
||
(403) 645-4737 |
||
Ryder McRitchie |
||
Manager, Investor Relations |
||
(403) 645-2007 |
10
Three Months Ended | Twelve Months Ended | ||||||||||||||||||||
December 31, | December 31, | ||||||||||||||||||||
($ millions, except per share amounts) | 2006 | 2005 | 2006 | 2005 | |||||||||||||||||
REVENUES, NET OF ROYALTIES |
(Note 3) | ||||||||||||||||||||
Upstream |
$ | 2,812 | $ | 3,525 | $ | 11,342 | $ | 10,772 | |||||||||||||
Market Optimization |
735 | 1,417 | 3,007 | 4,267 | |||||||||||||||||
Corporate Unrealized gain (loss) on risk management |
129 | 991 | 2,050 | (466 | ) | ||||||||||||||||
3,676 | 5,933 | 16,399 | 14,573 | ||||||||||||||||||
EXPENSES |
(Note 3) | ||||||||||||||||||||
Production and mineral taxes |
80 | 162 | 349 | 453 | |||||||||||||||||
Transportation and selling |
275 | 211 | 1,070 | 845 | |||||||||||||||||
Operating |
428 | 452 | 1,655 | 1,438 | |||||||||||||||||
Purchased product |
702 | 1,376 | 2,862 | 4,159 | |||||||||||||||||
Depreciation, depletion and amortization |
766 | 751 | 3,112 | 2,769 | |||||||||||||||||
Administrative |
84 | 63 | 271 | 268 | |||||||||||||||||
Interest, net |
(Note 6) | 142 | 104 | 396 | 524 | ||||||||||||||||
Accretion of asset retirement obligation |
(Note 10) | 13 | 10 | 50 | 37 | ||||||||||||||||
Foreign exchange (gain) loss, net |
(Note 7) | 172 | 37 | 14 | (24 | ) | |||||||||||||||
Stock-based compensation options |
| 3 | | 15 | |||||||||||||||||
(Gain) on divestitures |
(Note 5) | (2 | ) | | (323 | ) | | ||||||||||||||
2,660 | 3,169 | 9,456 | 10,484 | ||||||||||||||||||
NET EARNINGS BEFORE INCOME TAX |
1,016 | 2,764 | 6,943 | 4,089 | |||||||||||||||||
Income tax expense |
(Note 8) | 373 | 895 | 1,892 | 1,260 | ||||||||||||||||
NET EARNINGS FROM CONTINUING OPERATIONS |
643 | 1,869 | 5,051 | 2,829 | |||||||||||||||||
NET EARNINGS FROM DISCONTINUED OPERATIONS |
(Note 4) | 20 | 497 | 601 | 597 | ||||||||||||||||
NET EARNINGS |
$ | 663 | $ | 2,366 | $ | 5,652 | $ | 3,426 | |||||||||||||
NET EARNINGS FROM CONTINUING OPERATIONS PER COMMON SHARE |
(Note 13) | ||||||||||||||||||||
Basic |
$ | 0.81 | $ | 2.19 | $ | 6.16 | $ | 3.26 | |||||||||||||
Diluted |
$ | 0.80 | $ | 2.14 | $ | 6.04 | $ | 3.18 | |||||||||||||
NET EARNINGS PER COMMON SHARE |
(Note 13) | ||||||||||||||||||||
Basic |
$ | 0.84 | $ | 2.77 | $ | 6.89 | $ | 3.95 | |||||||||||||
Diluted |
$ | 0.82 | $ | 2.71 | $ | 6.76 | $ | 3.85 | |||||||||||||
Twelve Months Ended | |||||||||||||
December 31, | |||||||||||||
($ millions) | 2006 | 2005 | |||||||||||
RETAINED EARNINGS, BEGINNING OF YEAR |
$ | 9,481 | $ | 7,935 | |||||||||
Net Earnings |
5,652 | 3,426 | |||||||||||
Dividends on Common Shares |
(304 | ) | (238 | ) | |||||||||
Charges for Normal Course Issuer Bid |
(Note 11) | (3,485 | ) | (1,642 | ) | ||||||||
RETAINED EARNINGS, END OF YEAR |
$ | 11,344 | $ | 9,481 | |||||||||
EnCana Corporation | Consolidated Financial Statements (prepared in US$) |
11
As at | As at | ||||||||||||
December 31, | December 31, | ||||||||||||
($ millions) | 2006 | 2005 | |||||||||||
ASSETS |
|||||||||||||
Current Assets |
|||||||||||||
Cash and cash equivalents |
$ | 402 | $ | 105 | |||||||||
Accounts receivable and accrued revenues |
1,721 | 1,851 | |||||||||||
Risk management |
(Note 14) | 1,403 | 495 | ||||||||||
Inventories |
176 | 103 | |||||||||||
Assets of discontinued operations |
(Note 4) | | 1,050 | ||||||||||
3,702 | 3,604 | ||||||||||||
Property, Plant and Equipment, net |
(Note 3) | 28,213 | 24,881 | ||||||||||
Investments and Other Assets |
533 | 496 | |||||||||||
Risk Management |
(Note 14) | 133 | 530 | ||||||||||
Assets of Discontinued Operations |
(Note 4) | | 2,113 | ||||||||||
Goodwill |
2,525 | 2,524 | |||||||||||
(Note 3) | $ | 35,106 | $ | 34,148 | |||||||||
LIABILITIES AND SHAREHOLDERS EQUITY |
|||||||||||||
Current Liabilities |
|||||||||||||
Accounts payable and accrued liabilities |
$ | 2,494 | $ | 2,741 | |||||||||
Income tax payable |
926 | 392 | |||||||||||
Risk management |
(Note 14) | 14 | 1,227 | ||||||||||
Liabilities of discontinued operations |
(Note 4) | | 438 | ||||||||||
Current portion of long-term debt |
(Note 9) | 257 | 73 | ||||||||||
3,691 | 4,871 | ||||||||||||
Long-Term Debt |
(Note 9) | 6,577 | 6,703 | ||||||||||
Other Liabilities |
79 | 93 | |||||||||||
Risk Management |
(Note 14) | 2 | 102 | ||||||||||
Asset Retirement Obligation |
(Note 10) | 1,051 | 816 | ||||||||||
Liabilities of Discontinued Operations |
(Note 4) | | 267 | ||||||||||
Future Income Taxes |
6,240 | 5,289 | |||||||||||
17,640 | 18,141 | ||||||||||||
Shareholders Equity |
|||||||||||||
Share capital |
(Note 11) | 4,587 | 5,131 | ||||||||||
Paid in surplus |
160 | 133 | |||||||||||
Retained earnings |
11,344 | 9,481 | |||||||||||
Foreign currency translation adjustment |
1,375 | 1,262 | |||||||||||
17,466 | 16,007 | ||||||||||||
$ | 35,106 | $ | 34,148 | ||||||||||
EnCana Corporation | Consolidated Financial Statements (prepared in US$) |
12
Three Months Ended | Twelve Months Ended | ||||||||||||||||||||
December 31, | December 31, | ||||||||||||||||||||
($ millions) | 2006 | 2005 | 2006 | 2005 | |||||||||||||||||
OPERATING ACTIVITIES |
|||||||||||||||||||||
Net earnings from continuing operations |
$ | 643 | $ | 1,869 | $ | 5,051 | $ | 2,829 | |||||||||||||
Depreciation, depletion and amortization |
766 | 751 | 3,112 | 2,769 | |||||||||||||||||
Future income taxes |
(Note 8) | 260 | 717 | 950 | 56 | ||||||||||||||||
Cash tax on sale of assets |
(Note 5) | | (13 | ) | 49 | 578 | |||||||||||||||
Unrealized (gain) loss on risk management |
(Note 14) | (141 | ) | (985 | ) | (2,060 | ) | 469 | |||||||||||||
Unrealized foreign exchange (gain) loss |
155 | 28 | 76 | (50 | ) | ||||||||||||||||
Accretion of asset retirement obligation |
(Note 10) | 13 | 10 | 50 | 37 | ||||||||||||||||
(Gain) on divestitures |
(Note 5) | (2 | ) | | (323 | ) | | ||||||||||||||
Other |
48 | 13 | 138 | 274 | |||||||||||||||||
Cash flow from discontinued operations |
19 | 120 | 118 | 464 | |||||||||||||||||
Net change in other assets and liabilities |
90 | (108 | ) | 138 | (281 | ) | |||||||||||||||
Net change in non-cash working capital from continuing operations |
39 | 1,165 | 3,343 | 497 | |||||||||||||||||
Net change in non-cash working capital from discontinued operations |
(193 | ) | (140 | ) | (2,669 | ) | (212 | ) | |||||||||||||
Cash From Operating Activities |
1,697 | 3,427 | 7,973 | 7,430 | |||||||||||||||||
INVESTING ACTIVITIES |
|||||||||||||||||||||
Capital expenditures |
(Note 3) | (1,250 | ) | (2,362 | ) | (6,600 | ) | (6,925 | ) | ||||||||||||
Proceeds on disposal of assets |
(Note 5) | 55 | 30 | 689 | 2,523 | ||||||||||||||||
Cash tax on sale of assets |
(Note 5) | | 13 | (49 | ) | (578 | ) | ||||||||||||||
Net change in investments and other |
40 | (161 | ) | 2 | (109 | ) | |||||||||||||||
Net change in non-cash working capital from continuing operations |
188 | 165 | 19 | 330 | |||||||||||||||||
Discontinued operations |
180 | 572 | 2,557 | 239 | |||||||||||||||||
Cash (Used in) Investing Activities |
(787 | ) | (1,743 | ) | (3,382 | ) | (4,520 | ) | |||||||||||||
FINANCING ACTIVITIES |
|||||||||||||||||||||
Net issuance (repayment) of revolving long-term debt |
646 | (1,513 | ) | 134 | (538 | ) | |||||||||||||||
Repayment of long-term debt |
| (145 | ) | (73 | ) | (1,104 | ) | ||||||||||||||
Issuance of long-term debt |
| | | 429 | |||||||||||||||||
Issuance of common shares |
(Note 11) | 39 | 24 | 179 | 294 | ||||||||||||||||
Purchase of common shares |
(Note 11) | (1,246 | ) | | (4,219 | ) | (2,114 | ) | |||||||||||||
Dividends on common shares |
(78 | ) | (64 | ) | (304 | ) | (238 | ) | |||||||||||||
Other |
(3 | ) | (17 | ) | (11 | ) | (125 | ) | |||||||||||||
Cash (Used in) Financing Activities |
(642 | ) | (1,715 | ) | (4,294 | ) | (3,396 | ) | |||||||||||||
DEDUCT: FOREIGN EXCHANGE LOSS ON CASH AND CASH
EQUIVALENTS HELD IN FOREIGN CURRENCY |
| 1 | | 2 | |||||||||||||||||
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS |
268 | (32 | ) | 297 | (488 | ) | |||||||||||||||
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD |
134 | 137 | 105 | 593 | |||||||||||||||||
CASH AND CASH EQUIVALENTS, END OF YEAR |
$ | 402 | $ | 105 | $ | 402 | $ | 105 | |||||||||||||
EnCana Corporation | Consolidated Financial Statements (prepared in US$) |
13
| Upstream includes the Companys exploration for, and development and production of, natural gas, crude oil and natural gas liquids and other related activities. The majority of the Companys Upstream operations are located in Canada and the United States. Frontier and international new ventures exploration is mainly focused on opportunities in Brazil, the Middle East, Greenland and France. |
| Market Optimization is conducted by the Midstream & Marketing division. The Marketing groups primary responsibility is the sale of the Companys proprietary production. The results are included in the Upstream segment. Correspondingly, the Marketing groups also undertake market optimization activities which comprise third party purchases and sales of product that provide operational flexibility for transportation commitments, product type, delivery points and customer diversification. These activities are reflected in the Market Optimization segment. |
| Corporate includes unrealized gains or losses recorded on derivative instruments. Once amounts are settled, the realized gains and losses are recorded in the operating segment to which the derivative instrument relates. |
Encana Corporation | Consolidated Financial Statements (prepared in US$) |
14
Upstream | Market Optimization | ||||||||||||||||
2006 | 2005 | 2006 | 2005 | ||||||||||||||
Revenues, Net of Royalties |
$ | 2,812 | $ | 3,525 | $ | 735 | $ | 1,417 | |||||||||
Expenses |
|||||||||||||||||
Production and mineral taxes |
80 | 162 | | | |||||||||||||
Transportation and selling |
276 | 208 | (1 | ) | 3 | ||||||||||||
Operating |
428 | 415 | 13 | 32 | |||||||||||||
Purchased product |
| | 702 | 1,376 | |||||||||||||
Depreciation, depletion and amortization |
743 | 731 | 4 | 1 | |||||||||||||
Segment Income |
$ | 1,285 | $ | 2,009 | $ | 17 | $ | 5 | |||||||||
Corporate * | Consolidated | ||||||||||||||||||||
2006 | 2005 | 2006 | 2005 | ||||||||||||||||||
Revenues, Net of Royalties |
$ | 129 | $ | 991 | $ | 3,676 | $ | 5,933 | |||||||||||||
Expenses |
|||||||||||||||||||||
Production and mineral taxes |
| | 80 | 162 | |||||||||||||||||
Transportation and selling |
| | 275 | 211 | |||||||||||||||||
Operating |
(13 | ) | 5 | 428 | 452 | ||||||||||||||||
Purchased product |
| | 702 | 1,376 | |||||||||||||||||
Depreciation, depletion and amortization |
19 | 19 | 766 | 751 | |||||||||||||||||
Segment Income |
$ | 123 | $ | 967 | 1,425 | 2,981 | |||||||||||||||
Administrative |
84 | 63 | |||||||||||||||||||
Interest, net |
142 | 104 | |||||||||||||||||||
Accretion of asset retirement obligation |
13 | 10 | |||||||||||||||||||
Foreign exchange (gain) loss, net |
172 | 37 | |||||||||||||||||||
Stock-based compensation options |
| 3 | |||||||||||||||||||
(Gain) on divestitures |
(Note 5) | (2 | ) | | |||||||||||||||||
409 | 217 | ||||||||||||||||||||
Net Earnings Before Income Tax |
1,016 | 2,764 | |||||||||||||||||||
Income tax expense |
373 | 895 | |||||||||||||||||||
Net Earnings From Continuing Operations |
$ | 643 | $ | 1,869 | |||||||||||||||||
* | For the three months ended December 31, the pre-tax unrealized gain (loss) on risk management is recorded in the Consolidated Statement of Earnings as follows (see Note 14): |
2006 | 2005 | |||||||
Revenues, Net of Royalties Corporate |
$ | 129 | $ | 991 | ||||
Operating Expenses and Other Corporate |
12 | (6 | ) | |||||
Total Unrealized Gain on Risk Management before-tax Continuing Operations |
$ | 141 | $ | 985 | ||||
EnCana Corporation | Consolidated Financial Statements (prepared in US$) |
15
Upstream | Canada | United States | |||||||||||||||
2006 | 2005 | 2006 | 2005 | ||||||||||||||
Revenues, Net of Royalties |
$ | 1,966 | $ | 2,331 | $ | 765 | $ | 1,106 | |||||||||
Expenses |
|||||||||||||||||
Production and mineral taxes |
20 | 29 | 60 | 133 | |||||||||||||
Transportation and selling |
210 | 160 | 66 | 48 | |||||||||||||
Operating |
276 | 227 | 76 | 64 | |||||||||||||
Depreciation, depletion and amortization |
536 | 511 | 200 | 166 | |||||||||||||
Segment Income |
$ | 924 | $ | 1,404 | $ | 363 | $ | 695 | |||||||||
Other | Total Upstream | ||||||||||||||||
2006 | 2005 | 2006 | 2005 | ||||||||||||||
Revenues, Net of Royalties |
$ | 81 | $ | 88 | $ | 2,812 | $ | 3,525 | |||||||||
Expenses |
|||||||||||||||||
Production and mineral taxes |
| | 80 | 162 | |||||||||||||
Transportation and selling |
| | 276 | 208 | |||||||||||||
Operating |
76 | 124 | 428 | 415 | |||||||||||||
Depreciation, depletion and amortization |
7 | 54 | 743 | 731 | |||||||||||||
Segment Income (Loss) |
$ | (2 | ) | $ | (90 | ) | $ | 1,285 | $ | 2,009 | |||||||
Produced Gas | ||||||||||||||||||||||||||
Canada | United States | Total | ||||||||||||||||||||||||
2006 | 2005 | 2006 | 2005 | 2006 | 2005 | |||||||||||||||||||||
Revenues, Net of Royalties |
$ | 1,401 | $ | 1,852 | $ | 706 | $ | 1,041 | $ | 2,107 | $ | 2,893 | ||||||||||||||
Expenses |
||||||||||||||||||||||||||
Production and mineral taxes |
11 | 20 | 54 | 127 | 65 | 147 | ||||||||||||||||||||
Transportation and selling |
66 | 72 | 66 | 48 | 132 | 120 | ||||||||||||||||||||
Operating |
166 | 144 | 76 | 64 | 242 | 208 | ||||||||||||||||||||
Operating Cash Flow |
$ | 1,158 | $ | 1,616 | $ | 510 | $ | 802 | $ | 1,668 | $ | 2,418 | ||||||||||||||
Oil & NGLs | ||||||||||||||||||||||||||
Canada | United States | Total | ||||||||||||||||||||||||
2006 | 2005 | 2006 | 2005 | 2006 | 2005 | |||||||||||||||||||||
Revenues, Net of Royalties |
$ | 565 | $ | 479 | $ | 59 | $ | 65 | $ | 624 | $ | 544 | ||||||||||||||
Expenses |
||||||||||||||||||||||||||
Production and mineral taxes |
9 | 9 | 6 | 6 | 15 | 15 | ||||||||||||||||||||
Transportation and selling |
144 | 88 | | | 144 | 88 | ||||||||||||||||||||
Operating |
110 | 83 | | | 110 | 83 | ||||||||||||||||||||
Operating Cash Flow |
$ | 302 | $ | 299 | $ | 53 | $ | 59 | $ | 355 | $ | 358 | ||||||||||||||
Other | Total Upstream | ||||||||||||||||
2006 | 2005 | 2006 | 2005 | ||||||||||||||
Revenues, Net of Royalties |
$ | 81 | $ | 88 | $ | 2,812 | $ | 3,525 | |||||||||
Expenses |
|||||||||||||||||
Production and mineral taxes |
| | 80 | 162 | |||||||||||||
Transportation and selling |
| | 276 | 208 | |||||||||||||
Operating |
76 | 124 | 428 | 415 | |||||||||||||
Operating Cash Flow |
$ | 5 | $ | (36 | ) | $ | 2,028 | $ | 2,740 | ||||||||
EnCana Corporation | Consolidated Financial Statements (prepared in US$) |
16
Upstream | Market Optimization | ||||||||||||||||
2006 | 2005 | 2006 | 2005 | ||||||||||||||
Revenues, Net of Royalties |
$ | 11,342 | $ | 10,772 | $ | 3,007 | $ | 4,267 | |||||||||
Expenses |
|||||||||||||||||
Production and mineral taxes |
349 | 453 | | | |||||||||||||
Transportation and selling |
1,054 | 832 | 16 | 13 | |||||||||||||
Operating |
1,605 | 1,351 | 62 | 85 | |||||||||||||
Purchased product |
| | 2,862 | 4,159 | |||||||||||||
Depreciation, depletion and amortization |
3,025 | 2,688 | 12 | 8 | |||||||||||||
Segment Income |
$ | 5,309 | $ | 5,448 | $ | 55 | $ | 2 | |||||||||
Corporate * | Consolidated | ||||||||||||||||||||
2006 | 2005 | 2006 | 2005 | ||||||||||||||||||
Revenues, Net of Royalties |
$ | 2,050 | $ | (466 | ) | $ | 16,399 | $ | 14,573 | ||||||||||||
Expenses |
|||||||||||||||||||||
Production and mineral taxes |
| | 349 | 453 | |||||||||||||||||
Transportation and selling |
| | 1,070 | 845 | |||||||||||||||||
Operating |
(12 | ) | 2 | 1,655 | 1,438 | ||||||||||||||||
Purchased product |
| | 2,862 | 4,159 | |||||||||||||||||
Depreciation, depletion and amortization |
75 | 73 | 3,112 | 2,769 | |||||||||||||||||
Segment Income (Loss) |
$ | 1,987 | $ | (541 | ) | 7,351 | 4,909 | ||||||||||||||
Administrative |
271 | 268 | |||||||||||||||||||
Interest, net |
396 | 524 | |||||||||||||||||||
Accretion of asset retirement obligation |
50 | 37 | |||||||||||||||||||
Foreign exchange (gain) loss, net |
14 | (24 | ) | ||||||||||||||||||
Stock-based compensation options |
| 15 | |||||||||||||||||||
(Gain) on divestitures |
(Note 5) |
(323 | ) | | |||||||||||||||||
408 | 820 | ||||||||||||||||||||
Net Earnings Before Income Tax |
6,943 | 4,089 | |||||||||||||||||||
Income tax expense |
1,892 | 1,260 | |||||||||||||||||||
Net Earnings From Continuing Operations |
$ | 5,051 | $ | 2,829 | |||||||||||||||||
* | For the twelve months ended December 31, the pre-tax unrealized gain (loss) on risk management is recorded in the Consolidated Statement of Earnings as follows (see Note 14): |
2006 | 2005 | |||||||
Revenues, Net of Royalties Corporate |
$ | 2,050 | $ | (466 | ) | |||
Operating Expenses and Other Corporate |
10 | (3 | ) | |||||
Total Unrealized Gain (Loss) on Risk Management before-tax Continuing Operations |
$ | 2,060 | $ | (469 | ) | |||
EnCana Corporation
|
Consolidated Financial Statements (prepared in USS) |
17
Upstream | Canada | United States | |||||||||||||||
2006 | 2005 | 2006 | 2005 | ||||||||||||||
Revenues, Net of Royalties |
$ | 7,911 | $ | 7,312 | $ | 3,121 | $ | 3,177 | |||||||||
Expenses |
|||||||||||||||||
Production and mineral taxes |
116 | 104 | 233 | 349 | |||||||||||||
Transportation and selling |
806 | 650 | 248 | 182 | |||||||||||||
Operating |
1,029 | 826 | 283 | 212 | |||||||||||||
Depreciation, depletion and amortization |
2,142 | 1,927 | 848 | 682 | |||||||||||||
Segment Income |
$ | 3,818 | $ | 3,805 | $ | 1,509 | $ | 1,752 | |||||||||
Transportation and selling for the United States includes a one time payment in the first quarter of 2006 of $14 million to terminate a long-term physical delivery contract. |
Other | Total Upstream | ||||||||||||||||
2006 | 2005 | 2006 | 2005 | ||||||||||||||
Revenues, Net of Royalties |
$ | 310 | $ | 283 | $ | 11,342 | $ | 10,772 | |||||||||
Expenses |
|||||||||||||||||
Production and mineral taxes |
| | 349 | 453 | |||||||||||||
Transportation and selling |
| | 1,054 | 832 | |||||||||||||
Operating |
293 | 313 | 1,605 | 1,351 | |||||||||||||
Depreciation, depletion and amortization |
35 | 79 | 3,025 | 2,688 | |||||||||||||
Segment Income (Loss) |
$ | (18 | ) | $ | (109 | ) | $ | 5,309 | $ | 5,448 | |||||||
Upstream Geographic and Product Information (Continuing Operations) (For the twelve months ended December 31) |
Produced Gas | ||||||||||||||||||||||||||
Canada | United States | Total | ||||||||||||||||||||||||
2006 | 2005 | 2006 | 2005 | 2006 | 2005 | |||||||||||||||||||||
Revenues, Net of Royalties |
$ | 5,440 | $ | 5,486 | $ | 2,854 | $ | 2,932 | $ | 8,294 | $ | 8,418 | ||||||||||||||
Expenses |
||||||||||||||||||||||||||
Production and mineral taxes |
80 | 76 | 213 | 325 | 293 | 401 | ||||||||||||||||||||
Transportation and selling |
278 | 283 | 248 | 182 | 526 | 465 | ||||||||||||||||||||
Operating |
629 | 521 | 283 | 212 | 912 | 733 | ||||||||||||||||||||
Operating Cash Flow |
$ | 4,453 | $ | 4,606 | $ | 2,110 | $ | 2,213 | $ | 6,563 | $ | 6,819 | ||||||||||||||
Transportation and selling for the United States includes a one time payment in the first quarter of 2006 of $14 million to terminate a long-term physical delivery contract. |
Oil & NGLs | ||||||||||||||||||||||||||
Canada | United States | Total | ||||||||||||||||||||||||
2006 | 2005 | 2006 | 2005 | 2006 | 2005 | |||||||||||||||||||||
Revenues, Net of Royalties |
$ | 2,471 | $ | 1,826 | $ | 267 | $ | 245 | $ | 2,738 | $ | 2,071 | ||||||||||||||
Expenses |
||||||||||||||||||||||||||
Production and mineral taxes |
36 | 28 | 20 | 24 | 56 | 52 | ||||||||||||||||||||
Transportation and selling |
528 | 367 | | | 528 | 367 | ||||||||||||||||||||
Operating |
400 | 305 | | | 400 | 305 | ||||||||||||||||||||
Operating Cash Flow |
$ | 1,507 | $ | 1,126 | $ | 247 | $ | 221 | $ | 1,754 | $ | 1,347 | ||||||||||||||
Other | Total Upstream | ||||||||||||||||
2006 | 2005 | 2006 | 2005 | ||||||||||||||
Revenues, Net of Royalties |
$ | 310 | $ | 283 | $ | 11,342 | $ | 10,772 | |||||||||
Expenses |
|||||||||||||||||
Production and mineral taxes |
| | 349 | 453 | |||||||||||||
Transportation and selling |
| | 1,054 | 832 | |||||||||||||
Operating |
293 | 313 | 1,605 | 1,351 | |||||||||||||
Operating Cash Flow |
$ | 17 | $ | (30 | ) | $ | 8,334 | $ | 8,136 | ||||||||
EnCana Corporation
|
Consolidated Financial Statements (prepared in USS) |
18
Three Months Ended | Twelve Months Ended | ||||||||||||||||
December 31, | December 31, | ||||||||||||||||
2006 | 2005 | 2006 | 2005 | ||||||||||||||
Upstream Core Capital |
|||||||||||||||||
Canada |
$ | 849 | $ | 1,370 | $ | 4,015 | $ | 4,150 | |||||||||
United States |
315 | 633 | 2,061 | 1,982 | |||||||||||||
Other Countries |
24 | 31 | 75 | 70 | |||||||||||||
1,188 | 2,034 | 6,151 | 6,202 | ||||||||||||||
Upstream Acquisition Capital |
|||||||||||||||||
Canada |
17 | 4 | 47 | 30 | |||||||||||||
United States |
16 | 227 | 284 | 418 | |||||||||||||
33 | 231 | 331 | 448 | ||||||||||||||
Market Optimization |
4 | 68 | 44 | 197 | |||||||||||||
Corporate |
25 | 29 | 74 | 78 | |||||||||||||
Total |
$ | 1,250 | $ | 2,362 | $ | 6,600 | $ | 6,925 | |||||||||
Property, Plant and Equipment | Total Assets | ||||||||||||||||||||
As at December 31, | As at December 31, | ||||||||||||||||||||
2006 | 2005 | 2006 | 2005 | ||||||||||||||||||
Upstream |
$ | 27,781 | $ | 24,247 | $ | 32,299 | $ | 28,858 | |||||||||||||
Market Optimization |
154 | 371 | 469 | 597 | |||||||||||||||||
Corporate |
278 | 263 | 2,338 | 1,530 | |||||||||||||||||
Assets of Discontinued Operations |
(Note 4) | | 3,163 | ||||||||||||||||||
Total |
$ | 28,213 | $ | 24,881 | $ | 35,106 | $ | 34,148 | |||||||||||||
EnCana Corporation | Consolidated Financial Statements (prepared in US$) |
19
For the three months ended December 31, | |||||||||||||||||||||||||||||||||||
Ecuador | United Kingdom | Midstream | Total | ||||||||||||||||||||||||||||||||
2006 | 2005 | 2006 | 2005 | 2006 | 2005 | 2006 | 2005 | ||||||||||||||||||||||||||||
Revenues, Net of Royalties |
$ | | $ | 242 | $ | | $ | | $ | 5 | $ | 645 | $ | 5 | $ | 887 | |||||||||||||||||||
Expenses |
|||||||||||||||||||||||||||||||||||
Production and mineral taxes |
| 30 | | | | | | 30 | |||||||||||||||||||||||||||
Transportation and selling |
| 12 | | | | 3 | | 15 | |||||||||||||||||||||||||||
Operating |
| 38 | | | 8 | 110 | 8 | 148 | |||||||||||||||||||||||||||
Purchased product |
| | | | 2 | 343 | 2 | 343 | |||||||||||||||||||||||||||
Depreciation, depletion and amortization |
| 111 | | | | 8 | | 119 | |||||||||||||||||||||||||||
Administration |
| | | | | 30 | | 30 | |||||||||||||||||||||||||||
Interest, net |
| (2 | ) | | | | (1 | ) | | (3 | ) | ||||||||||||||||||||||||
Foreign exchange (gain) loss, net |
| (4 | ) | (1 | ) | (37 | ) | (1 | ) | | (2 | ) | (41 | ) | |||||||||||||||||||||
(Gain) loss on discontinuance |
| | | | (41 | ) | (364 | ) | (41 | ) | (364 | ) | |||||||||||||||||||||||
| 185 | (1 | ) | (37 | ) | (32 | ) | 129 | (33 | ) | 277 | ||||||||||||||||||||||||
Net Earnings Before Income Tax |
| 57 | 1 | 37 | 37 | 516 | 38 | 610 | |||||||||||||||||||||||||||
Income tax expense |
| 57 | 1 | 4 | 17 | 52 | 18 | 113 | |||||||||||||||||||||||||||
Net Earnings From Discontinued Operations |
$ | | $ | | $ | | $ | 33 | $ | 20 | $ | 464 | $ | 20 | $ | 497 | |||||||||||||||||||
For the twelve months ended December 31, | |||||||||||||||||||||||||||||||||||
Ecuador | United Kingdom | Midstream | Total | ||||||||||||||||||||||||||||||||
2006 | 2005 | 2006 | 2005 | 2006 | 2005 | 2006 | 2005 | ||||||||||||||||||||||||||||
Revenues, Net of Royalties * |
$ | 200 | $ | 965 | $ | | $ | | $ | 482 | $ | 1,570 | $ | 682 | $ | 2,535 | |||||||||||||||||||
Expenses |
|||||||||||||||||||||||||||||||||||
Production and mineral taxes |
23 | 131 | | | | | 23 | 131 | |||||||||||||||||||||||||||
Transportation and selling |
10 | 58 | | | | 9 | 10 | 67 | |||||||||||||||||||||||||||
Operating |
25 | 138 | | | 37 | 301 | 62 | 439 | |||||||||||||||||||||||||||
Purchased product |
| | | | 356 | 1,100 | 356 | 1,100 | |||||||||||||||||||||||||||
Depreciation, depletion and amortization |
84 | 234 | | | | 28 | 84 | 262 | |||||||||||||||||||||||||||
Administration |
| | | | | 30 | | 30 | |||||||||||||||||||||||||||
Interest, net |
(2 | ) | (2 | ) | | | | (2 | ) | (2 | ) | (4 | ) | ||||||||||||||||||||||
Accretion of asset retirement obligation |
| 1 | | | | | | 1 | |||||||||||||||||||||||||||
Foreign exchange (gain) loss, net |
1 | (4 | ) | (1 | ) | (40 | ) | 4 | (2 | ) | 4 | (46 | ) | ||||||||||||||||||||||
(Gain) loss on discontinuance |
279 | | | | (807 | ) | (364 | ) | (528 | ) | (364 | ) | |||||||||||||||||||||||
420 | 556 | (1 | ) | (40 | ) | (410 | ) | 1,100 | 9 | 1,616 | |||||||||||||||||||||||||
Net Earnings (Loss) Before Income Tax |
(220 | ) | 409 | 1 | 40 | 892 | 470 | 673 | 919 | ||||||||||||||||||||||||||
Income tax expense (recovery) |
59 | 278 | (4 | ) | 5 | 17 | 39 | 72 | 322 | ||||||||||||||||||||||||||
Net Earnings (Loss) From Discontinued Operations |
$ | (279 | ) | $ | 131 | $ | 5 | $ | 35 | $ | 875 | $ | 431 | $ | 601 | $ | 597 | ||||||||||||||||||
* | Revenues, net of royalties in Ecuador include realized losses of $1 million related to derivative financial instruments. In 2005, revenues, net of royalties included realized losses of $128 million. |
EnCana Corporation | Consolidated Financial Statements (prepared in US$) |
20
As at | |||||||||||||||||||||||||||||||||
December 31, 2006 | December 31, 2005 | ||||||||||||||||||||||||||||||||
United | United | ||||||||||||||||||||||||||||||||
Ecuador | Kingdom | Midstream | Total | Ecuador | Kingdom | Midstream | Total | ||||||||||||||||||||||||||
Assets |
|||||||||||||||||||||||||||||||||
Cash and cash equivalents |
$ | | $ | | $ | | $ | | $ | 207 | $ | 8 | $ | (7 | ) | $ | 208 | ||||||||||||||||
Accounts receivable and accrued revenues |
| | | | 137 | | 271 | 408 | |||||||||||||||||||||||||
Risk management |
| | | | | | 21 | 21 | |||||||||||||||||||||||||
Inventories |
| | | | 23 | | 390 | 413 | |||||||||||||||||||||||||
| | | | 367 | 8 | 675 | 1,050 | ||||||||||||||||||||||||||
Property, plant and equipment, net |
| | | | 1,166 | | 520 | 1,686 | |||||||||||||||||||||||||
Investments and other assets |
| | | | 360 | | | 360 | |||||||||||||||||||||||||
Goodwill |
| | | | | | 67 | 67 | |||||||||||||||||||||||||
$ | | $ | | $ | | $ | | $ | 1,893 | $ | 8 | $ | 1,262 | $ | 3,163 | ||||||||||||||||||
Liabilities |
|||||||||||||||||||||||||||||||||
Accounts payable and accrued liabilities |
$ | | $ | | $ | | $ | | $ | 91 | $ | 27 | $ | 49 | $ | 167 | |||||||||||||||||
Income tax payable |
| | | | 184 | 6 | 40 | 230 | |||||||||||||||||||||||||
Risk management |
| | | | | | 41 | 41 | |||||||||||||||||||||||||
| | | | 275 | 33 | 130 | 438 | ||||||||||||||||||||||||||
Asset retirement obligation |
| | | | 21 | | | 21 | |||||||||||||||||||||||||
Future income taxes (recovery) |
| | | | 162 | (2 | ) | 86 | 246 | ||||||||||||||||||||||||
| | | | 458 | 31 | 216 | 705 | ||||||||||||||||||||||||||
Net Assets of Discontinued Operations |
$ | | $ | | $ | | $ | | $ | 1,435 | $ | (23 | ) | $ | 1,046 | $ | 2,458 | ||||||||||||||||
EnCana Corporation | Consolidated Financial Statements (prepared in US$) |
21
Three Months Ended | Twelve Months Ended | ||||||||||||||||
December 31, | December 31, | ||||||||||||||||
2006 | 2005 | 2006 | 2005 | ||||||||||||||
Interest Expense Long-Term Debt |
$ | 97 | $ | 107 | $ | 366 | $ | 417 | |||||||||
Early Retirement of Long-Term Debt |
| | | 121 | |||||||||||||
Interest Expense Other |
57 | 6 | 76 | 18 | |||||||||||||
Interest Income |
(12 | ) | (9 | ) | (46 | ) | (32 | ) | |||||||||
$ | 142 | $ | 104 | $ | 396 | $ | 524 | ||||||||||
Three Months Ended | Twelve Months Ended | ||||||||||||||||
December 31, | December 31, | ||||||||||||||||
2006 | 2005 | 2006 | 2005 | ||||||||||||||
Unrealized Foreign Exchange (Gain)
Loss on Translation of U.S. Dollar
Debt Issued from Canada |
$ | 155 | $ | 27 | $ | | $ | (113 | ) | ||||||||
Other Foreign Exchange (Gain) Loss |
17 | 10 | 14 | 89 | |||||||||||||
$ | 172 | $ | 37 | $ | 14 | $ | (24 | ) | |||||||||
Three Months Ended | Twelve Months Ended | ||||||||||||||||
December 31, | December 31, | ||||||||||||||||
2006 | 2005 | 2006 | 2005 | ||||||||||||||
Current
|
$ | 70 | $ | 205 | $ | 764 | $ | 493 | |||||||||
Canada
|
|||||||||||||||||
United States |
41 | (25 | ) | 128 | 719 | ||||||||||||
Other |
2 | (2 | ) | 50 | (8 | ) | |||||||||||
Total Current Tax |
113 | 178 | 942 | 1,204 | |||||||||||||
Future |
260 | 717 | 1,407 | 56 | |||||||||||||
Future Tax Rate Reductions |
| | (457 | ) | | ||||||||||||
$ | 373 | $ | 895 | $ | 1,892 | $ | 1,260 | ||||||||||
Three Months Ended | Twelve Months Ended | ||||||||||||||||
December 31, | December 31, | ||||||||||||||||
2006 | 2005 | 2006 | 2005 | ||||||||||||||
Net Earnings Before Income Tax |
$ | 1,016 | $ | 2,764 | $ | 6,943 | $ | 4,089 | |||||||||
Canadian Statutory Rate |
34.7 | % | 37.9 | % | 34.7 | % | 37.9 | % | |||||||||
Expected Income Tax |
352 | 1,048 | 2,407 | 1,550 | |||||||||||||
Effect on Taxes Resulting from: |
|||||||||||||||||
Non-deductible Canadian Crown payments |
22 | 68 | 97 | 207 | |||||||||||||
Canadian resource allowance |
2 | (87 | ) | (16 | ) | (202 | ) | ||||||||||
Statutory and other rate differences |
(18 | ) | (124 | ) | (98 | ) | (235 | ) | |||||||||
Effect of tax rate changes* |
| | (457 | ) | | ||||||||||||
Non-taxable capital (gains) losses |
29 | 3 | (1 | ) | (24 | ) | |||||||||||
Tax basis retained on divestitures |
| | | (68 | ) | ||||||||||||
Large corporations tax |
| 1 | | 25 | |||||||||||||
Other |
(14 | ) | (14 | ) | (40 | ) | 7 | ||||||||||
$ | 373 | $ | 895 | $ | 1,892 | $ | 1,260 | ||||||||||
Effective Tax Rate |
36.7 | % | 32.4 | % | 27.3 | % | 30.8 | % | |||||||||
*During the second quarter of 2006, the Canadian federal and Alberta governments substantively enacted income tax rate reductions. |
EnCana Corporation | Consolidated Financial Statements (prepared in US$) |
22
As at | As at | ||||||||
December 31, | December 31, | ||||||||
2006 | 2005 | ||||||||
Canadian Dollar Denominated Debt |
|||||||||
Revolving credit and term loan borrowings |
$ | 1,456 | $ | 1,425 | |||||
Unsecured notes |
793 | 793 | |||||||
2,249 | 2,218 | ||||||||
U.S. Dollar Denominated Debt |
|||||||||
Revolving credit and term loan borrowings |
104 | | |||||||
Unsecured notes |
4,421 | 4,494 | |||||||
4,525 | 4,494 | ||||||||
Increase in Value of Debt Acquired * |
60 | 64 | |||||||
Current Portion of Long-Term Debt |
(257 | ) | (73 | ) | |||||
$ | 6,577 | $ | 6,703 | ||||||
* | Certain of the notes and debentures of EnCana were acquired in business combinations and were accounted for at their fair value at the dates of acquisition. The difference between the fair value and the principal amount of the debt is being amortized over the remaining life of the outstanding debt acquired, approximately 21 years. |
As at | As at | ||||||||
December 31, | December 31, | ||||||||
2006 | 2005 | ||||||||
Asset Retirement Obligation, Beginning of Year |
$ | 816 | $ | 611 | |||||
Liabilities Incurred |
68 | 77 | |||||||
Liabilities Settled |
(51 | ) | (42 | ) | |||||
Liabilities Divested |
| (23 | ) | ||||||
Change in Estimated Future Cash Flows |
172 | 135 | |||||||
Accretion Expense |
50 | 37 | |||||||
Other |
(4 | ) | 21 | ||||||
Asset Retirement Obligation, End of Year |
$ | 1,051 | $ | 816 | |||||
EnCana Corporation | Consolidated Financial Statements (prepared in US$) | |
23
December 31, 2006 | December 31, 2005 | ||||||||||||||||
(millions) | Number | Amount | Number | Amount | |||||||||||||
Common Shares Outstanding, Beginning of Year |
854.9 | $ | 5,131 | 900.6 | $ | 5,299 | |||||||||||
Common Shares Issued under Option Plans |
8.6 | 179 | 15.0 | 283 | |||||||||||||
Stock-based Compensation |
| 11 | | 11 | |||||||||||||
Common Shares Purchased |
(85.6 | ) | (734 | ) | (60.7 | ) | (462 | ) | |||||||||
Common Shares Outstanding, End of Year |
777.9 | $ | 4,587 | 854.9 | $ | 5,131 | |||||||||||
Weighted | |||||||||
Stock | Average | ||||||||
Options | Exercise | ||||||||
(millions) | Price (C$) | ||||||||
Outstanding, Beginning of Year |
20.7 | 23.36 | |||||||
Exercised |
(8.6 | ) | 23.60 | ||||||
Forfeited |
(0.3 | ) | 23.80 | ||||||
Outstanding, End of Year |
11.8 | 23.17 | |||||||
Exercisable, End of Year |
11.8 | 23.17 | |||||||
Outstanding Options | Exercisable Options | ||||||||||||||||||||
Weighted | |||||||||||||||||||||
Number of | Average | Weighted | Number of | Weighted | |||||||||||||||||
Options | Remaining | Average | Options | Average | |||||||||||||||||
Outstanding | Contractual | Exercise | Outstanding | Exercise | |||||||||||||||||
Range of Exercise Price (C$) | (millions) | Life (years) | Price (C$) | (millions) | Price (C$) | ||||||||||||||||
11.00 to 16.99 |
0.8 | 2.3 | 11.89 | 0.8 | 11.89 | ||||||||||||||||
17.00 to 22.99 |
0.2 | 1.0 | 22.32 | 0.2 | 22.32 | ||||||||||||||||
23.00 to 23.99 |
5.4 | 1.3 | 23.87 | 5.4 | 23.87 | ||||||||||||||||
24.00 to 24.99 |
5.2 | 0.4 | 24.19 | 5.2 | 24.19 | ||||||||||||||||
25.00 to 25.99 |
0.2 | 1.7 | 25.58 | 0.2 | 25.58 | ||||||||||||||||
11.8 | 1.0 | 23.17 | 11.8 | 23.17 | |||||||||||||||||
EnCana Corporation | Consolidated Financial Statements (prepared in US$) | |
24
Three Months Ended | Twelve Months Ended | ||||||||||||||||
December 31, | December 31, | ||||||||||||||||
2006 | 2005 | 2006 | 2005 | ||||||||||||||
Current Service Cost |
$ | 6 | $ | 6 | $ | 16 | $ | 11 | |||||||||
Interest Cost |
4 | 6 | 17 | 16 | |||||||||||||
Expected Return on Plan Assets |
(4 | ) | (5 | ) | (16 | ) | (14 | ) | |||||||||
Expected Actuarial Loss on Accrued Benefit Obligation |
2 | 3 | 6 | 5 | |||||||||||||
Expected Amortization of Past Service Costs |
1 | 1 | 2 | 2 | |||||||||||||
Amortization of Transitional Obligation |
| (1 | ) | (1 | ) | (2 | ) | ||||||||||
Expense for Defined Contribution Plan |
8 | 6 | 28 | 22 | |||||||||||||
Net Benefit Plan Expense |
$ | 17 | $ | 16 | $ | 52 | $ | 40 | |||||||||
Weighted | |||||||||
Average | |||||||||
Outstanding | Exercise | ||||||||
SARs | Price | ||||||||
Canadian Dollar Denominated (C$) |
|||||||||
Outstanding, Beginning of Year |
246,739 | 23.13 | |||||||
Exercised |
(246,739 | ) | 23.13 | ||||||
Outstanding, End of Year |
| | |||||||
Exercisable, End of Year |
| | |||||||
U.S. Dollar Denominated (US$) |
|||||||||
Outstanding, Beginning of Year |
319,511 | 14.33 | |||||||
Exercised |
(317,423 | ) | 14.33 | ||||||
Outstanding, End of Year |
2,088 | 14.21 | |||||||
Exercisable, End of Year |
2,088 | 14.21 | |||||||
EnCana Corporation | Consolidated Financial Statements (prepared in US$) |
25
Weighted | |||||||||
Average | |||||||||
Outstanding | Exercise | ||||||||
TSAR's | Price | ||||||||
Canadian Dollar Denominated (C$) |
|||||||||
Outstanding, Beginning of Year |
8,403,967 | 38.41 | |||||||
Granted |
11,180,800 | 49.01 | |||||||
Exercised SARs |
(700,418 | ) | 34.54 | ||||||
Exercised Options |
(32,948 | ) | 34.46 | ||||||
Forfeited |
(1,575,210 | ) | 43.21 | ||||||
Outstanding, End of Year |
17,276,191 | 44.99 | |||||||
Exercisable, End of Year |
1,971,467 | 38.31 | |||||||
Average | |||||||||
Outstanding | Share | ||||||||
DSU's | Price | ||||||||
Canadian Dollar Denominated (C$) |
|||||||||
Outstanding, Beginning of Year |
836,561 | 26.81 | |||||||
Granted, Directors |
70,000 | 56.71 | |||||||
Exercised |
(52,562 | ) | 27.92 | ||||||
Units, in Lieu of Dividends |
12,578 | 54.69 | |||||||
Outstanding, End of Year |
866,577 | 29.56 | |||||||
Exercisable, End of Year |
866,577 | 29.56 | |||||||
Average | |||||||||
Outstanding | Share | ||||||||
PSU's | Price | ||||||||
Canadian Dollar Denominated (C$) |
|||||||||
Outstanding, Beginning of Year |
4,704,348 | 30.65 | |||||||
Granted |
36,599 | 54.82 | |||||||
Paid out |
(239,794 | ) | 23.26 | ||||||
Forfeited |
(309,313 | ) | 31.35 | ||||||
Outstanding, End of Year |
4,191,840 | 31.24 | |||||||
U.S. Dollar Denominated (US$) |
|||||||||
Outstanding, Beginning of Year |
739,649 | 25.22 | |||||||
Granted |
4,860 | 48.07 | |||||||
Forfeited |
(170,020 | ) | 24.13 | ||||||
Outstanding, End of Year |
574,489 | 25.74 | |||||||
EnCana Corporation | Consolidated Financial Statements (prepared in US$) |
26
Three Months Ended | Twelve Months Ended | |||||||||||||||||||||||||||||||
March 31, | June 30, | September 30, | December 31, | December 31, | ||||||||||||||||||||||||||||
(millions) | 2006 | 2006 | 2006 | 2006 | 2005 | 2006 | 2005 | |||||||||||||||||||||||||
Weighted Average Common
Shares Outstanding Basic |
847.9 | 829.6 | 809.7 | 792.5 | 854.4 | 819.9 | 868.3 | |||||||||||||||||||||||||
Effect of Dilutive Securities |
16.9 | 15.5 | 14.6 | 13.9 | 18.1 | 16.6 | 20.9 | |||||||||||||||||||||||||
Weighted Average Common Shares Outstanding Diluted |
864.8 | 845.1 | 824.3 | 806.4 | 872.5 | 836.5 | 889.2 | |||||||||||||||||||||||||
Realized Gain (Loss) | |||||||||||||||||
Three Months Ended | Twelve Months Ended | ||||||||||||||||
December 31, | December 31, | ||||||||||||||||
2006 | 2005 | 2006 | 2005 | ||||||||||||||
Revenues, Net of Royalties |
$ | 240 | $ | (355 | ) | $ | 393 | $ | (684 | ) | |||||||
Operating Expenses and Other |
1 | 14 | 5 | 31 | |||||||||||||
Gain (Loss) on Risk Management Continuing Operations |
241 | (341 | ) | 398 | (653 | ) | |||||||||||
Gain (Loss) on Risk Management Discontinued Operations |
8 | (44 | ) | 12 | (155 | ) | |||||||||||
$ | 249 | $ | (385 | ) | $ | 410 | $ | (808 | ) | ||||||||
Unrealized Gain (Loss) | |||||||||||||||||
Three Months Ended | Twelve Months Ended | ||||||||||||||||
December 31, | December 31, | ||||||||||||||||
2006 | 2005 | 2006 | 2005 | ||||||||||||||
Revenues, Net of Royalties |
$ | 129 | $ | 991 | $ | 2,050 | $ | (466 | ) | ||||||||
Operating Expenses and Other |
12 | (6 | ) | 10 | (3 | ) | |||||||||||
Gain (Loss) on Risk Management Continuing Operations |
141 | 985 | 2,060 | (469 | ) | ||||||||||||
Gain (Loss) on Risk Management Discontinued Operations |
(7 | ) | 139 | 20 | 50 | ||||||||||||
$ | 134 | $ | 1,124 | $ | 2,080 | $ | (419 | ) | |||||||||
EnCana Corporation | Consolidated Financial Statements(prepared in US$) |
27
Total | ||||||||
Fair Market | Unrealized | |||||||
Value | Gain (Loss) | |||||||
Fair Value of Contracts, Beginning of Year |
$ | (640 | ) | $ | | |||
Change in Fair Value of Contracts in Place at Beginning of Year
and Contracts Entered into During 2006 |
2,466 | 2,466 | ||||||
Fair Value of Contracts in Place at Transition that Expired During 2006 |
| 24 | ||||||
Fair Value of Contracts Realized During 2006 |
(410 | ) | (410 | ) | ||||
Fair Value of Contracts Outstanding |
$ | 1,416 | $ | 2,080 | ||||
Unamortized Premiums Paid on Options |
104 | |||||||
Fair Value of Contracts and Premiums Paid, End of Year |
$ | 1,520 | ||||||
Amounts Allocated to Continuing Operations |
$ | 1,520 | $ | 2,060 | ||||
Amounts Allocated to Discontinued Operations |
| 20 | ||||||
$ | 1,520 | $ | 2,080 | |||||
As at | ||||
December 31, 2006 | ||||
Risk Management |
||||
Current asset |
$ | 1,403 | ||
Long-term asset |
133 | |||
Current liability |
14 | |||
Long-term liability |
2 | |||
Net Risk Management Asset Continuing Operations |
$ | 1,520 | ||
As at | ||||
December 31, 2006 | ||||
Commodity Price Risk |
||||
Natural gas |
$ | 1,431 | ||
Crude oil |
74 | |||
Power |
13 | |||
Interest Rate Risk |
4 | |||
Credit Derivatives |
(2 | ) | ||
Total Fair Value Positions |
$ | 1,520 | ||
EnCana Corporation | Consolidated Financial Statements (Prepared in US$) |
Notional | ||||||||||||||||||||
Volumes | Fair Market | |||||||||||||||||||
(MMcf/d) | Term | Average Price | Value | |||||||||||||||||
Sales Contracts |
||||||||||||||||||||
Fixed Price Contracts |
||||||||||||||||||||
NYMEX Fixed Price |
1,487 | 2007 | 8.56 | US$/Mcf | $ | 861 | ||||||||||||||
Other |
8 | 2007 | 8.97 | US$/Mcf | 7 | |||||||||||||||
NYMEX Fixed Price |
222 | 2008 | 8.45 | US$/Mcf | 34 | |||||||||||||||
Options |
||||||||||||||||||||
Purchased NYMEX Put Options |
240 | 2007 | 6.00 | US$/Mcf | 15 | |||||||||||||||
Basis Contracts |
||||||||||||||||||||
Fixed NYMEX to AECO Basis |
747 | 2007 | (0.72 | ) | US$/Mcf | 39 | ||||||||||||||
Fixed NYMEX to Rockies Basis |
538 | 2007 | (0.65 | ) | US$/Mcf | 223 | ||||||||||||||
Fixed NYMEX to CIG Basis |
390 | 2007 | (0.76 | ) | US$/Mcf | 144 | ||||||||||||||
Fixed Rockies to CIG Basis |
12 | 2007 | (0.10 | ) | US$/Mcf | (1 | ) | |||||||||||||
Fixed NYMEX to AECO Basis |
191 | 2008 | (0.78 | ) | US$/Mcf | 10 | ||||||||||||||
Fixed NYMEX to Rockies Basis |
162 | 2008 | (0.59 | ) | US$/Mcf | 46 | ||||||||||||||
Fixed NYMEX to CIG Basis |
60 | 2008 | (0.67 | ) | US$/Mcf | 15 | ||||||||||||||
Fixed NYMEX to Rockies Basis (NYMEX Adjusted) |
329 | 2008 | 17% of NYMEX | US$/Mcf | 14 | |||||||||||||||
Fixed NYMEX to Mid-Continent Basis (NYMEX
Adjusted) |
120 | 2008 | 12% of NYMEX | US$/Mcf | 4 | |||||||||||||||
Fixed NYMEX to CIG Basis |
20 | 2009 | (0.71 | ) | US$/Mcf | 1 | ||||||||||||||
Fixed NYMEX to AECO Basis |
12 | 2010 | (0.40 | ) | US$/Mcf | | ||||||||||||||
Purchase Contracts |
||||||||||||||||||||
Fixed Price Contracts |
||||||||||||||||||||
Other |
8 | 2007 | 7.84 | US$/Mcf | (4 | ) | ||||||||||||||
1,408 | ||||||||||||||||||||
Other Financial Positions * |
2 | |||||||||||||||||||
Total Unrealized Gain on Financial
Contracts |
1,410 | |||||||||||||||||||
Unamortized Premiums Paid on Options |
21 | |||||||||||||||||||
Total Fair Value Positions |
$ | 1,431 | ||||||||||||||||||
* | Other financial positions are part of the ongoing operations of the Companys proprietary production management. |
Notional | ||||||||||||||||||||
Volumes | Fair Market | |||||||||||||||||||
(bbls/d) | Term | Average Price | Value | |||||||||||||||||
Fixed WTI NYMEX Price |
34,500 | 2007 | 64.40 | US$/bbl | $ | (8 | ) | |||||||||||||
Purchased WTI NYMEX Put Options |
91,500 | 2007 | 55.34 | US$/bbl | (1 | ) | ||||||||||||||
(9 | ) | |||||||||||||||||||
Other Financial Positions * |
| |||||||||||||||||||
Total Unrealized Loss on Financial Contracts |
(9 | ) | ||||||||||||||||||
Unamortized Premiums Paid on Options |
83 | |||||||||||||||||||
Total Fair Value Positions |
$ | 74 | ||||||||||||||||||
* | Other financial positions are part of the ongoing operations of the Companys proprietary production management. |
EnCana Corporation | Consolidated Financial Statements (prepared in US$) |
29
EnCana Corporation | Consolidated Financial Statements (prepared in US$) |
30