CALGARY – Encana Corp. (TSX:ECA) had US$226 million of operating earnings in the fourth quarter, down 23 per cent year-over-year but better than analyst estimates.

The operating earnings for the three months ended Dec. 31, reported in U.S. currency amounted to 31 cents per share.

That was 11 cents above the general analyst estimate.

However, lower natural gas prices drove down Encana’s operating earnings from $296 million or 40 cents per share a year earlier.

Encana got an average of US$4.34 per thousand cubic feet of gas, down 13 per cent from US$5.02 in the fourth quarter of 2012.

Its cash flow, another key measure for energy companies, was also down year-over-year, dropping to $677 million or 91 cents per share from $809 million or $1.10 per share.

Encana’s operating earnings exclude a number of items such as the impact of the Calgary-based company’s risk-management programs.

The quarter included $209 million of unrealized losses on its hedging program and a $124 million loss on foreign exchange, both up substantially from the fourth quarter of 2012.

With those items included, Encana had a net loss of $251 million in the fourth quarter, three-times the comparable loss of $80 million a year earlier.

Analysts wer looking for Encana to report 20 cents per share of adjusted earnings, according to Thomson Reuters data.