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Encana CEO Doug Suttles (Image courtesy of the Calgary Herald via YouTube)

Alberta-based Encana confirmed Friday that it laid off 200 employees in July after reporting a $1.61 billion loss in the second quarter.

According to Reuters, the company laid off 200 employees this month and had about 3,129 employees as of the end of December 2014.

“Our costs will continue to come down, and they need to, because the price of our product has dropped,” Encana CEO Doug Suttles told Reuters.

Encana cut 1,200 jobs in 2013 as part of its plan to move away from low-value natural gas production, Reuters added.

The company booked a $1.61 billion net loss for the second quarter, or a $1.91 loss per share, compared to $281 million in earnings during the same period last year.

Encana reported $830 million in revenues net of royalties for the quarter, down from $1.58 billion in revenues during the second quarter of 2014.

The company recorded a $1.33 billion impairment charge in the second quarter, up from a $1.22 billion impairment charge recorded in the first quarter.

Encana said it remains on track to deliver its 2015 cash flow guidance of between $1.4 billion and $1.6 billion.
The company generated second quarter cash flow of $181 million or $0.22 per share and an operating loss of $167 million, or $0.20 per share.
Encana’s liquid production hit about 127,300 barrels per day, an 87 percent year-over-year jump.
“Following our successful portfolio transformation in 2014, we continue to lower costs, improve well performance and increase well inventory in our four most strategic assets. We exited the second quarter with significant operational momentum and we expect to accelerate liquids growth through the second half of the year,” Suttles added.