Encana’s Q2 operating earnings beat estimates, O’Brien steps aside as chairman

CALGARY – Encana Corp. (TSX:ECA) had $730 million or 99 cents per share of net earnings and $247 million in operating earnings or 34 cents per share in the second quarter.

The operating earnings were up from $198 million or 27 cents per share a year earlier, and better than expected.

Analysts polled by Thomson-Reuters were on average expecting Encana (TSX:ECA) to earn 19 cents per share in operating earnings.

The net earnings compared with a year-earlier loss of $1.48 billion.

The Calgary-based natural gas producer also announced that David P. O’Brien — one of the company’s founders — has stepped down as chairman of the board.

His replacement is Clayton Woitas.

In June, Encana appointed Doug Suttles as its new CEO following Randy Eresman’s abrupt departure earlier in the year.

Investors are likely eager to hear from Suttles on what changes he plans to make at the company, which has long been challenged by low natural gas prices. But Suttles has said he will need some time to learn the ropes before he can articulate a clear vision for Encana.

Encana’s board looked at more than 100 candidates, from both inside and outside the company, before picking the former BP executive for the top job.

At BP, Suttles led the cleanup of the massive oil spill in the Gulf of Mexico, triggered by the blowout of the Macondo well in April 2010. Some 757 million litres of oil spewed into the deep waters off the Louisiana coast