Encana Corp. (NYSE: ECA) reported first-quarter 2015 results before markets opened Tuesday. The Calgary, Alberta-based oil and gas producer reported adjusted diluted earnings per share (EPS) of $0.01 and $1.25 billion in revenues. In the same period a year ago, Encana reported EPS of $0.70 on revenue of $1.89 billion. First-quarter results also compare to the Thomson Reuters consensus estimates for a net loss of $0.09 and $1.21 billion in revenue.

On an as-reported basis, Encana posted a net loss of $1.7 billion, of which $1.2 billion was attributed to impairment charges related to a non-cash, after-tax ceiling test impairment and a non-operating foreign exchange loss of approximately $508 million. The per-share loss totaled $2.25.

Liquids production rose 78% year-over-year and 13% sequentially to more than 120,000 barrels a day. The increase follows the completion of the company’s $7.1 billion acquisition of Athlon Energy, which was completed in November of last year. Athlon’s primary asset consisted of 140,000 net acres in the Permian Basin of Texas. Encana’s Permian basin production rose 22% sequentially to 37,900 oil-equivalent barrels a day, on track for the company’s target product of around 45,000 barrels a day.

The company’s CEO said:

Through the continued advancement of our strategy, our first quarter results demonstrate the impact of our high quality portfolio, focused capital investment and prudent balance sheet management. Through innovation, execution improvements and teamwork, we continue to drive greater performance and efficiency throughout the company.

Total production reached 430,100 barrels of oil equivalent in the first quarter, down from 536,100 oil-equivalent barrels a year ago. Encana attributed the decline to its sale of lower margin assets and the shift to higher margin liquids and away from natural gas.

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The company has already said that it expects to fund its 2015 capital program and dividend (currently $0.07 quarterly) from anticipated cash flow along with proceeds from previously announced divestitures of certain assets. Two transactions closed during the first quarter generated net proceeds of about $827 million after closing adjustments.

Shares traded down about 0.4% in Tuesday’s premarket, at $13.82 in a 52-week range of $10.53 to $24.83. The consensus price target on the stock is $15.00, and the high price target is $23.00.

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