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OCTOBER 2013 CORPORATE PRESENTATION – Encana Corp

Encana Corp · Oct 10, 2013 · 85 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. OCTOBER 2013 CORPORATE PRESENTATION – Encana Corp – slide 1
    Corporate Presentation October 2013
  2. OCTOBER 2013 CORPORATE PRESENTATION – Encana Corp – slide 2
    2013 Focus Top Priorities for Second Half of 2013 1. New strategy in place by year-end expected implementation in 2014 2. Focus on cost reductions and capital efficiency expect to see impact on financial performance in second half of…
  3. OCTOBER 2013 CORPORATE PRESENTATION – Encana Corp – slide 3
    Tremendous Asset Base Leading North American Portfolio of Resource Plays Land (MM net acres) Total land position: 10.9 Horn River Fee land (advantaged royalty structure): 3.6 Reserves & Resources (Tcfe; 100% externally evaluated)…
  4. OCTOBER 2013 CORPORATE PRESENTATION – Encana Corp – slide 4
    Exercising Capital Discipline 2013 Capital Program Overview 2012 2013F Capital Investment (B) 3.5 3.0 3.2 Measured pace of Net Divestitures (B) 3.7 0.5 1.0 capital Net Capital Investment (B) (0.2) 2.0 2.7 investment Natural Gas…
  5. OCTOBER 2013 CORPORATE PRESENTATION – Encana Corp – slide 5
    Why Third Party Capital Works For Us Track Record of Surfacing Asset Value Achieve immediate recognition of value Cutbank Ridge Partnership with a Mitsubishi subsidiary Duvernay joint venture with a PetroChina subsidiary Maintain…
  6. OCTOBER 2013 CORPORATE PRESENTATION – Encana Corp – slide 6
    How Third Party Capital Benefits Encana Illustrative JV vs. Retained Development Plan* Encana capital constant in either case Partner capital spent towards Encanas working interest increases net production Capital, production Year…
  7. OCTOBER 2013 CORPORATE PRESENTATION – Encana Corp – slide 7
    Leveraging Third Party Capital Completed Joint Ventures, Partnerships & Farm-outs Millions Third Party Capital Projections* Carry capital projected to grow from 750 million to over 1 billion 5,000 Partners agreed to invest over 3.8…
  8. OCTOBER 2013 CORPORATE PRESENTATION – Encana Corp – slide 8
    Accelerating Value Cutbank Ridge Partnership (CRP) Capital & NPV Comparison Much Less Capital for Similar Value ECA MM CRP Retain 250 ECA Capital 100% 30% 200 ECA Revenue 100% 60% A-Tax PIR 0.9 2.6 150 A-Tax IRR 32% 90% 100 A-Tax…
  9. OCTOBER 2013 CORPORATE PRESENTATION – Encana Corp – slide 9
    Sources of Liquids Growth in 2013 Conservative Approach Allows Time to Evaluate Profitability Currently commercial liquids plays Driving growth in 2013: DJ Basin - oil Piceance liquids rich gas Cutbank Ridge liquids rich gas Peace…
  10. OCTOBER 2013 CORPORATE PRESENTATION – Encana Corp – slide 10
    Oil & NGL Production Growth Significant Liquids Growth Since 2011 Mbbls/d 80 Sources of significant liquids production in 2013: Range: 70-75 70 Bighorn Mbbls/d Peace River Arch 60 DJ Basin Clearwater 50 2013F estimated liquids exit…
  11. OCTOBER 2013 CORPORATE PRESENTATION – Encana Corp – slide 11
    NGL Barrel Composition and Prices 28 32 Mbbls/d in 2013F Encana 2013 Price Product Assumptions (% WTI) % of 2013F Volumes Ethane 10 - 15 30 Propane 30 - 35 25 Butane 70 - 75 15 Condensate 100 - 105 30 Canadian ethane volumes…
  12. OCTOBER 2013 CORPORATE PRESENTATION – Encana Corp – slide 12
    Strategy Development Process Focused Action Plan Rigorous process Deep Objective Thorough Fast paced Get back to winning Set strategy prior to year-end Develop a fact-based, balanced Full scale assessment asset review Core…
  13. OCTOBER 2013 CORPORATE PRESENTATION – Encana Corp – slide 13
    Commodity Outlook Natural Gas Due to abundant, low cost supply, natural gas prices are expected to remain range bound around current levels Henry Hub (/MMBtu) 12 10 8 6 4 2 0 2003 2004 2005 2006 2007 2008 2009 2010…
  14. OCTOBER 2013 CORPORATE PRESENTATION – Encana Corp – slide 14
    Commodity Outlook North American Oil Oil prices are expected to be highly volatile due to geopolitical events, global economic uncertainty and future oil supply growth from emerging plays; further uncertainty exists for regional…
  15. OCTOBER 2013 CORPORATE PRESENTATION – Encana Corp – slide 15
    The A&D Market Remains Robust Additional Buyers Emerging North American private equity oil & gas fund inflows B Estimated 60B-90B in uninvested funds targeting oil & gas Run-rate 60 Closed funds 50 40 30 20 10 0 2007 08 09 10 11 12…
  16. OCTOBER 2013 CORPORATE PRESENTATION – Encana Corp – slide 16
    Focus, Profitability and the Highest Quality Rocks Industry has moved from resource accumulation to profitable conversion and full scale exploitation Resource Value High value supply Highest Low supply cost Quality Rocks High ROR…
  17. OCTOBER 2013 CORPORATE PRESENTATION – Encana Corp – slide 17
    Initial Insights from Strategy Process Resource rich More portfolio positions portfolio than we need Operational and Capital allocation execution excellence process Respected market Organizational fundamentals alignment
  18. OCTOBER 2013 CORPORATE PRESENTATION – Encana Corp – slide 18
    Encana is Resource Rich Approximately 80 Tcf of Natural Gas Resource Potential 75+ years producing life at Encanas current rate of production Encana 2013F total gas production: 1.06 Tcf ECA Natural Gas Potential Natural gas…
  19. OCTOBER 2013 CORPORATE PRESENTATION – Encana Corp – slide 19
    Unconventional Reservoir Comparison Duvernay World Class Reservoir Encana controls one third of the top tier land in the condensate window* Reservoir Attribute Duvernay Marcellus Eagle Ford TVD Depth (ft) 8,200 13,100 400 8,400…
  20. OCTOBER 2013 CORPORATE PRESENTATION – Encana Corp – slide 20
    Tuscaloosa Marine Shale Situated in the Sweet Spot 300,000 net acres containing approximately 8 billion BOE of PIIP; over 60% is top tier land in the core of the play; need to determine appropriate pace of development PIIP Cutoff J…
  21. OCTOBER 2013 CORPORATE PRESENTATION – Encana Corp – slide 21
    Detailed Market Fundamentals Work Key Strength - Supports Risk Management Since 2003, weve realized approximately 9 billion in hedging gains* Bcf/d /Mcf 50% of AECO basis exposure hedged in 2013-2015 3.0 5.00 4.37 4.37 2.5 4.19…
  22. OCTOBER 2013 CORPORATE PRESENTATION – Encana Corp – slide 22
    Operational Excellence Matters Cutbank Ridge Peer Comparison Encanas supply cost 20% better than peers; 40% lower with joint venture leverage included D&C Costs (/500ft) Supply Cost* Joint Venture Leveraged Supply Cost K /MMBtu…
  23. OCTOBER 2013 CORPORATE PRESENTATION – Encana Corp – slide 23
    Portfolio Positions and Capital Allocation Need For Focus Key Producing Assets 2013E Capital Allocation Peer Peer of Producing of Plays Being 1 3 3 2 4 6 7 17+ 1 2 4 3 3 4 7 17+ Areas Allocated Capital of Areas of Plays with 1…
  24. OCTOBER 2013 CORPORATE PRESENTATION – Encana Corp – slide 24
    Dry Gas Weighting Peer Group Production 2Q13 (6:1) Greater portfolio and commodity diversity will create flexibility for capital allocation to the highest return projects Net MMcfe/d 5,000 4,500 4,000 3,500 3,000 2,500 2,000…
  25. OCTOBER 2013 CORPORATE PRESENTATION – Encana Corp – slide 25
    Organization Structure Must Support the Strategy Existing structure built around higher cash flow and capital investment model need to reset and focus on current reality Structure must be dynamic responsive efficient Establish…
  26. OCTOBER 2013 CORPORATE PRESENTATION – Encana Corp – slide 26
    Strategy Implications What It Takes to Win Core Competencies Highest quality rocks Understand the trade winds Scale TOP TIER MARKET Strong linkage to capital Running room RESOURCE FUNDAMENTALS allocation Thriving with volatility…
  27. OCTOBER 2013 CORPORATE PRESENTATION – Encana Corp – slide 27
    Future Organizational Structure President & CEO Doug Suttles EVP EVP EVP EVP VP EVP EVP Exploration & Midstream, & Chief & Chief Investor Corporate & General Business Marketing & Operating Financial Relations & Services…
  28. OCTOBER 2013 CORPORATE PRESENTATION – Encana Corp – slide 28
    Maintaining Financial Strength & Flexibility Liquidity Supports Execution of Strategy Planning to pay 2013 debt maturity (500 million) with cash 2.9 billion of cash and short term investments as at June 30, 2013 4.3 billion of…
  29. OCTOBER 2013 CORPORATE PRESENTATION – Encana Corp – slide 29
    Strategy is the Keystone Alignment of Business Elements to Fit Strategy Strategy
  30. OCTOBER 2013 CORPORATE PRESENTATION – Encana Corp – slide 30
    Key Messages New Strategy Coming Into Focus Process has been fast paced deep, rigorous, thorough, objective Core building blocks beginning to emerge leverage existing strengths focus on profitability and core assets Focus on the…
  31. OCTOBER 2013 CORPORATE PRESENTATION – Encana Corp – slide 31
    Supplemental
  32. OCTOBER 2013 CORPORATE PRESENTATION – Encana Corp – slide 32
    Comprehensive Disclosure of Reserves & Resources Largest Reserves and Resource Life in Encanas History Encana Reserves and Resources (Tcfe) 1 Estimated reserves Estimated economic contingent resources P1 P2 P3 Resource Play C1 C2…
  33. OCTOBER 2013 CORPORATE PRESENTATION – Encana Corp – slide 33
    Operating Cost Comparison 2012 - Excluding Transportation & Processing Striving to be the most efficient operator US/Mcfe 4.00 3.50 3.00 2.50 2.00 1.50 1.00 0.50 0.00 ECA Peer 1 Peer 2 Peer 3 Peer 4 Peer 5 Peer 6 Peer 7 Peers…
  34. OCTOBER 2013 CORPORATE PRESENTATION – Encana Corp – slide 34
    Advancing Resource Play Hub Development Track Record of Continuous Supply Cost Reductions Substantial cost reductions through resource play hub Formation core model Multi-well pad using fit- for-purpose rig Hydraulic pressure…
  35. OCTOBER 2013 CORPORATE PRESENTATION – Encana Corp – slide 35
    Canadian Division 2013 Strategic Focus Manage KOGAS, Mitsubishi, Toyota and PetroChina joint ventures Evaluate Duvernay and other potential liquids-rich assets Advance liquids extraction through deep cut midstream arrangements…
  36. OCTOBER 2013 CORPORATE PRESENTATION – Encana Corp – slide 36
    Canadian Division 2013 Budget Overview 2012 Actual 2013F % Change Natural Gas Production (MMcf/d) 1,359 1,500 1,600 10 18 Liquids Production (Mbbls/d) 19.4 30 35 55 80 Core Capital* (MM) 1,567 1,500 1,600 (4) 2 * Does not include…
  37. OCTOBER 2013 CORPORATE PRESENTATION – Encana Corp – slide 37
    Canadian Division 2013 Liquids Strategy Liquids production (Mbbls/d) Execute joint venture programs 25 Range Mitsubishi, PetroChina 20 Maximize value via liquids production 15 advancing development of liquids- rich plays 10…
  38. OCTOBER 2013 CORPORATE PRESENTATION – Encana Corp – slide 38
    Peace River Arch Asset Overview Resource 602,000 net acres Estimated PIIP: 36 Tcf, 1 3 billion bbls Well cost: 7 12 million EUR per well: 4 16 Bcfe Oil gravity: 47 63 API Strategy Accelerate liquids production Advance multi-well…
  39. OCTOBER 2013 CORPORATE PRESENTATION – Encana Corp – slide 39
    Peace River Arch Historical Production - Improving Liquids Yields Gas production (MMcf/d, NBR) Liquids production (bbls/d, NBR*) 200 12,000 150 9,000 100 6,000 50 3,000 0 0 2008 2009 2010 2011 2012 2013F Liquids…
  40. OCTOBER 2013 CORPORATE PRESENTATION – Encana Corp – slide 40
    Peace River Arch Multiple Potential New Plays Under Evaluation Montney Oil Granite Wash Liquids Rich Montney
  41. OCTOBER 2013 CORPORATE PRESENTATION – Encana Corp – slide 41
    Peace River Arch History of Gordondale Development Gamma Ray Density Resistivity 2005: Deviated vertical multi-well pads 2007: Horizontal wells infill drilling between vertical wells 2011: Development plan overhauled longer wells,…
  42. OCTOBER 2013 CORPORATE PRESENTATION – Encana Corp – slide 42
    Cutbank Ridge Asset Overview Resource 982,000 gross acres Estimated PIIP: 130 Tcf, 1 2 Bbbls Well cost: 5 10 million EUR per well: 4 16 Bcfe Oil gravity: 45 65 API Strategy Increase value through accelerated development and…
  43. OCTOBER 2013 CORPORATE PRESENTATION – Encana Corp – slide 43
    Montney Supply Cost Evolution Advancing Resource Play Hub Design and Development Montney Performance History Cost/Interval Supply Cost* Joint Venture Leveraged Supply Cost MM /MMBtu 3.5 6.45 7 3.0 6 4.55 2.5 5 DCT costs /…
  44. OCTOBER 2013 CORPORATE PRESENTATION – Encana Corp – slide 44
    Improved Completions Results Cutbank Ridge Slickwater/Cluster Perforation Application 5 well pilot: Improved initial rates compared to offsetting wells Gas Rate/100m (Mcf/d) Pilot Wells 60% Increase Offsets…
  45. OCTOBER 2013 CORPORATE PRESENTATION – Encana Corp – slide 45
    Cutbank Ridge Liquids Rich Well Flow Test Results 250 400 bbls/d over 10 day test next step is an for extended production period Tie-in planning has been kicked off R18 R17 R16 R15 R14 7,000 7.0 700 T81 6,000 6.0 600 20-200…
  46. OCTOBER 2013 CORPORATE PRESENTATION – Encana Corp – slide 46
    Cutbank Ridge Partnership (CRP) Partnership with Mitsubishi: Encana 60% interest Mitsubishi, 40% interest 5 development areas: Montney: Saturn, Swan and Tumbler Ridge Cadomin: Tumbler Ridge Doig: Tumbler Ridge Investment…
  47. OCTOBER 2013 CORPORATE PRESENTATION – Encana Corp – slide 47
    Bighorn Asset Overview Resource 414,000 net acres Estimated PIIP: 32 Tcf, 1 2 Bbbls Well cost: 5 10 million EUR per well: 2 12 Bcfe Oil gravity: 55 60 API Strategy Focus on liquids-rich opportunities Continue stacked Cretaceous…
  48. OCTOBER 2013 CORPORATE PRESENTATION – Encana Corp – slide 48
    Bighorn Horizontal Inventory Approximate Liquids Yield (bbls/MMcf) Condensate (1) 100 Butane (1) Propane (1) 80 Ethane (2) 60 Hz 40 Hz 20 Hz 0 CARD. DUNV. CDTT FLHR / WLRCH Estimated Drilled of Wells Inventory…
  49. OCTOBER 2013 CORPORATE PRESENTATION – Encana Corp – slide 49
    Bighorn Cost Reductions Cost Reduction Example Falher Horizontal Wells Average number Cost per interval (MM) of intervals 2.5 20 2.0 16 1.5 12 1.0 8 0.5 4 0.0 0 2008 2009 2010 2011 2012 Drilling Completions Equip…
  50. OCTOBER 2013 CORPORATE PRESENTATION – Encana Corp – slide 50
    Bighorn - Kakwa 13-24-61-6W6 Falher C 30 day IP: 12.5 MMcf/d gas 220bbls/d C5+ (17 bbls/MMcf) 1,037 bbls/d liquids C2+ (83 bbls/MMcf) EUR 6.8 Bcf, 644 Mstb 82% above gas type curve per stimulation 275% above type curve for C5+…
  51. OCTOBER 2013 CORPORATE PRESENTATION – Encana Corp – slide 51
    Bighorn Completion Successes 2,000 20 700 1,800 Lateral Length 18 600 Average Lateral Length (m) 1,600 Frac Stages 16 Average Completion Cost Per Frac Stage (x 1000) Average Frac Stages 1,400 14 500 - 57% 1,200 12 400…
  52. OCTOBER 2013 CORPORATE PRESENTATION – Encana Corp – slide 52
    Duvernay Eagle Ford Analog Grand Prairie High quality, core position 460,000 gross acres 1,000 - 1,600 gross well locations Kaybob current focus area moving to RPH development mode Significant liquids growth potential…
  53. OCTOBER 2013 CORPORATE PRESENTATION – Encana Corp – slide 53
    Duvernay The Encana Advantage Encana has captured over half of the high-graded liquids rich gas condensate fairway Encana free condensate yield results are top quartile Estimate 30 Tcf and 4 billion bbls PIIP on Encana lands…
  54. OCTOBER 2013 CORPORATE PRESENTATION – Encana Corp – slide 54
    260 miles Clearwater Asset Overview Resource 4.6 million net acres Encana owns mineral rights on 78% of lands Average royalty rate of 7% Estimated PIIP: 12 Tcf (CBM), 600 MMbbls Strategy 420 miles Advance conventional oil…
  55. OCTOBER 2013 CORPORATE PRESENTATION – Encana Corp – slide 55
    Clearwater Glauconitic Oil Play Well Parameters Inventory: 100 locations Well cost: Redland vertical well: 1.3 2.0MM horizontal well : 2.2 3.0MM EUR per well: 60 120 Mbbls 28 - 32 API oil Strathmore North Current Activity/Results…
  56. OCTOBER 2013 CORPORATE PRESENTATION – Encana Corp – slide 56
    Clearwater Royalty Interest Wells 2012 summary Production Gas: 35 MMcf/d NGL: 1.7 Mbbls/d Oil: 4.5 Mbbls/d Royalty interest revenue 160MM
  57. OCTOBER 2013 CORPORATE PRESENTATION – Encana Corp – slide 57
    Toyota Tsusho Upfront cash of C100 million Agreed to provide capital funding of C502 million over 7 years: 1,488 drilling locations 1,606 recompletion Wheatland locations Acquired uniform 32.5% GORR on PDP and Future…
  58. OCTOBER 2013 CORPORATE PRESENTATION – Encana Corp – slide 58
    Deep Panuke Project First Natural Gas Production Forecast: Q3 2013 Operating cost (/Mcfe) 0.95-0.65 at 200 300 MMcf/d Transportation cost (/Mcfe) 1.68 Royalties 3% Delivery point Premium price to NYMEX
  59. OCTOBER 2013 CORPORATE PRESENTATION – Encana Corp – slide 59
    USA Division 2013 Key Strategies Complete evaluation of Collingwood/Utica emerging plays Jonah position for success through milestone approach DJ Niobrara Niobrara/ Execute existing joint Mancos Piceance venture programs Jonah…
  60. OCTOBER 2013 CORPORATE PRESENTATION – Encana Corp – slide 60
    USA Division 2013 Budget Overview 2012 Actual 2013F % Change Gas Production (MMcf/d) 1,622 1,300 1,400 (20) (14) Liquids Production (Mbbls/d) 11.6 20 25 72 116 Core Capital* (MM) 1,727 1,400 1,500 (19) (13) * Does not include third…
  61. OCTOBER 2013 CORPORATE PRESENTATION – Encana Corp – slide 61
    USA Division Liquids Production Profile 2013 Liquids Growth Strategy Liquids Production (Mbbls/d) Complete evaluation of emerging 20 plays milestone approach testing Range larger completions with defined type curve and cost 15…
  62. OCTOBER 2013 CORPORATE PRESENTATION – Encana Corp – slide 62
    Piceance Basin Asset Overview Williams Fork Resource 801,000 net acres EUR: 1 4 Bcf /well 8,000 gross well locations Strategy Continue to execute on existing joint ventures Optimize spacing and frac volume Reduce drilling and…
  63. OCTOBER 2013 CORPORATE PRESENTATION – Encana Corp – slide 63
    DJ Basin Asset Overview Resource 49,000 net acres Denver Estimated PIIP: 700 million BOE Primarily light oil with associated gas/NGLs 80% NRI 500 gross well locations Strategy Accelerate commercial development Optimize well…
  64. OCTOBER 2013 CORPORATE PRESENTATION – Encana Corp – slide 64
    Haynesville Asset Overview Resource 184,000 net acres NGIP: 80 Tcfe 500 gross producing wells 2,200 wells in inventory (1P + 1C) Strategy Top value/low risk wells cross unit laterals 7,500 RPH development continue completion…
  65. OCTOBER 2013 CORPORATE PRESENTATION – Encana Corp – slide 65
    Haynesville Resource Play Hub Long Lateral Encana Leading the Way Cross unit well permitting rules amended by Louisiana in Q4 2012 14 cross unit wells on production Early time data meeting type curve expectations Enhancement to RPH…
  66. OCTOBER 2013 CORPORATE PRESENTATION – Encana Corp – slide 66
    Haynesville Supply Cost Evolution Supply cost (/mcfe) 4.5 Long laterals and RPH development efficiencies 4.0 expected to deliver 2.50 to 3.5 0.55 3.00 supply cost in 2013 0.57 3.0 Cross unit drilling rules 0.38 amended by…
  67. OCTOBER 2013 CORPORATE PRESENTATION – Encana Corp – slide 67
    Utica/Collingwood Shale Asset Overview Lake Resource Huron 429,000 net acres Estimated PIIP: 24 Tcfe Lake Kendall & Koehler 1-33 85 bbls/MMcf of NGLs Michigan 83% RI Wilmot 1-21 500 net well locations Strategy Retain Acreage in…
  68. OCTOBER 2013 CORPORATE PRESENTATION – Encana Corp – slide 68
    Utica/Collingwood Shale Well Performance Mcf/d 10,000 Subsurface Learnings Reservoir responds well to soak time before production start up RPH Target Well Parameters 1,000 DCT Well cost: 8.6 million EUR per well: 8.7 Bcfe Lateral…
  69. OCTOBER 2013 CORPORATE PRESENTATION – Encana Corp – slide 69
    Eaglebine Well Posting IP(30) IP(30) Asset Overview Horizontal wells EGBN Wells ECA Hz Wells GT - 220 JG1 - 142 JG2 - 234 2013 Dev. Wells Resource L. McMurrey 1H & 2H IP(30) 483 & 387 124,000 net acres Estimated PIIP: 8.6…
  70. OCTOBER 2013 CORPORATE PRESENTATION – Encana Corp – slide 70
    San Juan Basin Asset Overview Resource 168,000 net acres captured in oil window Primarily light oil with associated NGLs 80% NRI 900 potential net locations Strategy Appraise oil window of the Gallup/Mancos formation Ramp-up to…
  71. OCTOBER 2013 CORPORATE PRESENTATION – Encana Corp – slide 71
    TMS 7.5 MMBO/Section OOIP Defines Play Core Asset Overview Ash 31H-2 Resource J Jackson 4H-2 GDP-Crosby 12H-1 302,000 net acres Estimated PIIP*: 8.0 billion BOE Horseshoe Hill 10H-1 Anderson 17H-1, 18H-1 Primarily light oil; sold…
  72. OCTOBER 2013 CORPORATE PRESENTATION – Encana Corp – slide 72
    Tuscaloosa Marine Shale Well Performance & Key Learnings Subsurface Learnings Longer laterals & enhanced TMS Well Performance completions delivering improved performance Anderson wells establishing type curve Ave LL= 8000…
  73. OCTOBER 2013 CORPORATE PRESENTATION – Encana Corp – slide 73
    Credit Rating Comparison As of June 30, 2013 S&P Moodys AAA Aaa AA+ Aa1 AA Aa2 AA- Aa3 A+ A1 A A2 A- A3 BBB+ Baa1 BBB Baa2 BBB- Baa3 BB+ Ba1 BB Ba2 BB- Ba3 B+ B1 B B2 APA EOG DVN ECA TLM APC SWN CHK - Indicates ratings below…
  74. OCTOBER 2013 CORPORATE PRESENTATION – Encana Corp – slide 74
    Encana Debt Maturity As of June 30, 2013 1,000 CAD Denominated USD Denominated 900 800 700 600 500 400 300 200 100 0 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028…
  75. OCTOBER 2013 CORPORATE PRESENTATION – Encana Corp – slide 75
    North American Natural Gas Dry Gas, Wet Gas and Associated Gas from Oil Wells Wet gas and associated gas productions share of total production is increasing over time Bcf/d 110 98.6 100 Forecast 90 18% 79.0 79.1 80.618% 80 12% 15%…
  76. OCTOBER 2013 CORPORATE PRESENTATION – Encana Corp – slide 76
    North American Natural Gas December 2012 vs. December 2011 Production Total North American production decreased by 1 Bcf/d December-over-December Haynesville (1.24) Other (0.75) Gulf of Mexico (0.70) SW Basin (0.46) Barnett (0.37)…
  77. OCTOBER 2013 CORPORATE PRESENTATION – Encana Corp – slide 77
    North American Natural Gas Demand Ranges by Selected Sector Significant demand growth is possible in the LNG, transportation/HHP and power sectors through 2020 Power 2.5 4.5 10.0+ LNG Export 2.4 6.0 10.0+ Transport/HHP 0.5 2.5…
  78. OCTOBER 2013 CORPORATE PRESENTATION – Encana Corp – slide 78
    Projected New Natural Gas Demand Creation Excellent Opportunities Diversified Across Many Sectors Shorter Term Longer Term Bcf/d…
  79. OCTOBER 2013 CORPORATE PRESENTATION – Encana Corp – slide 79
    Coal-to-Gas Displacement Historical and Implied by Natural Gas Prices The forward curve implies a loss in coal-to-gas displacement of 2.7 Bcf/d Bcf/d from 2012-2013. 12 Year-Over-Year Displacement Year Bcf/d 10 2011 1.3 2012 4.6 8…
  80. OCTOBER 2013 CORPORATE PRESENTATION – Encana Corp – slide 80
    North American Natural Gas U.S. Prior Announced and Forecast Coal Retirements Approximately 56 GW of coal retires in North America by 2025*, with the majority retiring mid- decade in accordance with environmental compliance deadlines GW…
  81. OCTOBER 2013 CORPORATE PRESENTATION – Encana Corp – slide 81
    Long-term: Coal Unit Retirements Coal Retirements are a 3.7 Bcf/d Demand Opportunity In 2012, 10 GW of coal-fired capacity retired. An additional 41 GW has announced retirement from 2013-2025. Source: Encana Fundamentals, company…
  82. OCTOBER 2013 CORPORATE PRESENTATION – Encana Corp – slide 82
    North American Natural Gas Announced Industrial Expansion Expansions, new builds, restarts and relocations from 2013 to 2025 Forecast Demand Growth (3.4 Bcf/d) Propylene Potential Demand 3% (MMcf/d) Methanol 23% Ammonia…
  83. OCTOBER 2013 CORPORATE PRESENTATION – Encana Corp – slide 83
    What Makes LNG for Transportation Viable Illustrative Full Cycle Cost Components LNG vs. Diesel Sales and Refining / Excise Tax Liquefaction Retailing Feedstock Distribution Profit Margin* LNG Diesel 2.50 to 2.90/DGE 3.70…
  84. OCTOBER 2013 CORPORATE PRESENTATION – Encana Corp – slide 84
    Advisory Regarding Reserves Data & Other Oil & Gas Information Disclosure Protocols National Instrument (NI) 51-101 of the Canadian Securities Administrators imposes oil and gas disclosure standards for Canadian public companies such as…
  85. OCTOBER 2013 CORPORATE PRESENTATION – Encana Corp – slide 85
    Investor Relations Contacts Ryder McRitchie VicePresident, Investor Relations & Communications 403.645.2007 ryder.mcritchieencana.com Lorna Klose Manager, Investor Relations 403.645.6977 lorna.kloseencana.com Patti Posadowski…

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