During the corresponding time, Encana Corp recorded a revenue increase by 48.26 % year on year, sequentially revenue fell by -8.95 %. While revenue at the Encana Corp's corporate clients
Encana's Comment on Sales, Marketing and Customers
Market Optimization activities are managed by Encana’s Midstream, Marketing
& Fundamentals team, which is responsible for the sale of the Company’s
proprietary production and enhancing the associated netback price. In marketing
production, Encana looks to minimize market related shut-ins, maximize realized
prices and manage concentration of credit-risk exposure. Market Optimization activities
include third party purchases and sales of product to provide operational flexibility
and cost mitigation for transportation commitments, product type, delivery points
and customer diversification. In conjunction with certain divestitures, Encana
has also agreed to market and transport certain portions of the acquirer’s
production with remaining terms of less than five years.
Encana’s produced natural gas, oil and NGLs are primarily marketed to
refiners, local distributing companies, energy marketing companies and electronic
exchanges. Prices received by Encana are based primarily upon prevailing market
index prices in the region in which it is sold. Prices are impacted by regional
and global supply and demand and by competing fuels in such markets.
The majority of Encana’s natural gas production is sold under short-term
delivery contracts less than 12 months in duration, at the relevant monthly
or daily market price at the time the product is sold. Encana has dedicated
natural gas produced from Deep Panuke under a long-term physical sales contract
at prevailing market prices in that region. Encana’s oil production is
sold under short term and long term contracts that range up to four years. Prices
received by Encana are based primarily upon the prevailing index prices in the
relevant region where the product is sold. Encana’s NGLs production is
sold under short term and long term contracts that range up to 12 years, or
under dedication arrangements at the relevant market price at the time the product
is sold.
In connection with the marketing and sale of Encana’s production and
purchased natural gas and liquids, the Company had two customers, Royal Dutch
Shell Group and Flint Hills Resources, which individually accounted for more
than 10 percent of Encana’s consolidated revenues (2015–two customers,
Royal Dutch Shell Group and Flint Hills Resources, 2014–one customer,
BP Energy Company). Encana does not believe that the loss of any single customer
would have a material adverse effect on the Company’s financial condition
or results of operations.