Canadian oil and natural gas producer Encana Corp. (NYSE: ECA) said on Jan. 4 it expects its margins in 2017 to exceed its previous target on lower costs and an expected rise in output in the second half of this year.

The company also said it expects production from its core assets to be in the upper range, or exceed its previous forecast of 15% to 20% growth, between the fourth quarter of this year and the corresponding period in 2016.

Encana has downsized operations to focus on four core North American shale plays--the Montney and Duvernay in western Canada, and the Eagle Ford and Permian in the U.S.

The company said it expects its corporate margin to be above $10 per barrel of oil equivalent (boe) in 2017, higher than the $8/boe it had forecast at its investor day in October.

Encana is scheduled to report its fourth-quarter results and 2017 budget on Feb 16.