QGEP Seeks Stronger Brazil Presence, Guardado Says

Global oil majors from Exxon Mobil Corp. to Chevron Corp. are about to get the clearest indication yet of how far Mexican lawmakers will go to lure them into the largest unexplored crude area after the Arctic Circle.

Encana Corp. may sell more of natural gas assets as it attempts to further transition its portfolio into oil and liquids plays. Following recent deals to dispose of its natural gas assets in Wyoming’s Jonah field for $1.8-billion and some in Texas gas for $530-million, the company unveiled a $3.1-billion acquisition of Freeport-McMoran’s Eagle Ford properties. Not only does this provide Encana with a cash flow margin boost, it also serves as a bridge to the company’s longer cycle assets, according to Greg Pardy, an analyst at RBC Capital Markets.

Encana Corp , Canada’s largest natural-gas producer, said its first-quarter operating profit more than doubled, helped by higher gas prices and liquids production. The company, which is restructuring its operations to end its reliance on low-value natural gas, said its output of oil and natural gas liquids averaged 67,900 barrels per day in the quarter ended March 31, up 56% from a year earlier. While natural gas production fell 2% to 2.81 billion cubic feet per day, the company’s realized price for a thousand cubic feet of gas rose to $5.82 from $3.86.