BAML 2014 GLOBAL ENERGY CONFERENCE David Hill, Executive Vice-President Exploration & Business Development Encana Corporation November 13, 2014
Business Strategy GETTING BACK TO WINNING VISION: LEADING NORTH AMERICAN RESOURCE PLAY COMPANY STRATEGY: DISCIPLINED FOCUS ON GENERATING PROFITABLE GROWTH GOAL: GROWING SHAREHOLDER VALUE Balanced liquids and natural gas 2017…
2013 2017 Strategy Scorecard Disciplined Focus on Generating Profitable Growth Portfolio Operational Balance Sheet Transition Excellence Strength Focused and disciplined Cost structure reset Business model not capital allocation to…
Year To Date Highlights Executing on Strategy Portfolio Operational Balance Sheet Transition Excellence Strength Allocated 84% of YTD capital to YTD costs savings of 145 million Debt reduced by 1B with no growth plays from…
2014 Portfolio Transition Plan Accelerated by A&D Activity 12,000 20/Boe 55/Boe netback margin netback margin 10,000 Cash* Permian** Focused on Value vs. 3x Volumes 8,000 Margin Jonah East Texas Proceeds from 2014 asset sales…
Athlon Energy The Best of the Permian Transformative Acquisition in World Class Basin 7.1B acquisition of Athlon Energy Inc. 5.93B cash plus assumption of 1.15B of long-term debt Midland Basin pure play, headquartered in Fort Worth, TX…
Enhancing and Accelerating Value Leveraging Our Strengths to Add Value in the Permian Athlon Well-Positioned Relative to Hitting the ground running in 2015: Producing Horizons At least 1B capital program Initiate pad drilling program…
Permian Assets - Five Year Outlook Delivering Significant High Margin Growth 4,000 Strong operating cash flow growth Permian Pre-Tax Operating Cash Flow Operating Cash Flow (MM) 3,500 50.00/boe netback at 90/bbl WTI, 4/Mcf NYMEX…
Leading North American Resource Play Company Robust Portfolio with Visible Long Term Growth Options Positions in the heart of the top 2 Canadian resource plays (Montney and Duvernay) and top 2 U.S. resource plays Montney (Eagle Ford…
Strong YTD Operational Performance Impressive results across the portfolio Type curve performance meeting or exceeding expectations YTD 2014 netbacks up 79% (excluding hedges) compared to 2013 (41% including hedges) Lower drilling…
Increasing Liquids Volumes from Growth Assets Steady Growth, Higher Margins Oil & NGLs Production 80,000 70,000 Liquids production from Original 5 Growth assets up 70% Q3 2014 vs. 60,000 Q3 2013 50,000 With the addition of the…
Focused on Growing Value Growth Assets Deliver Superior Margin GROWTH ASSET PRODUCTION PRODUCTION 40.00 /Boe 8.00/ Replacing lower margin production Boe with higher margin production from Encanas growth assets BASE…
Disciplined Focus on Profitable Growth VISION: Leading North American oil and gas resource play company High quality rocks Scale and running room Operational excellence Portfolio optionality STRATEGY: Disciplined focus on…
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