Largely from U.S. shale basins, Canadian energy company Encana Corp. said Tuesday its production improved, though profits took a major hit.

Encana joined its peers in the industry by reporting a major drop off in operating profit while boasting that improved efficiency helped boost output. Driven largely by the Montney, Duvernay, Eagle Ford and Permian shale basins in the United States, one of Canada's largest energy companies said production should increase significantly during the second half of the year.

"We've made good progress repositioning our portfolio which now includes core positions in some of the highest netback basins in North America," Doug Suttles, the company's top executive said in a statement. "Our four most strategic assets are the growth engine of the company, currently generating better margins than the entire portfolio did in 2013 when both oil and natural gas prices were substantially higher."

The company, which has headquarters in Calgary, reported operating profits for the period ending March 31 at $9 million, down from the $515 million reported during the same time last year.

The company in February said it was reducing its capital investment plans for the year by $700 million to about $2.1 billion. About 80 percent of new spending would target the four key U.S. shale basins.

The company based its February spending plan on oil priced at around $50 per barrel, about 15 percent less than current prices. Suttles said that, coupled with improved drilling efficiency, would translate to cost savings moving forward.