ENCANA CORPORATION EnerComs The Oil & Gas Conference David Hill, Executive Vice President, Exploration & Business Development Denver, CO August 18, 2015
2015 FOCUS Navigating Market Volatility From a Position of Strength Executing a disciplined 80% of capital to Permian, Eagle Ford, Duvernay & Montney capital program Four strategic assets expected to deliver rates of return 30%…
HIGH QUALITY ASSET BASE 3 Focused on Four Strategic Assets Permian, Eagle Ford, Duvernay & Montney Strong operating margins* 2015F: Permian, Eagle Ford & Duvernay - 26/BOE 2015F: Montney - 1.15/Mcfe Robust supply costs** (35 -…
POSITIONED FOR GROWTH BEYOND 2015 Permian + Eagle Ford + Duvernay + Montney Liquids Production from four strategic assets expected Gas Production to reach 270,000 BOE/d in Q4 Production (Mbbls/d) (MMcf/d) 120 1,200 100 1,000 80…
COMPETITIVE OPERATING MARGINS AT TODAYS PRICES Investing In Profitable Growth Oil-Weighted Returns at current prices 30% Gas-Weighted Asset Operating Asset Operating Margin (/BOE) across all four strategic assets Margin (/Mcfe) 40…
PERMIAN Simultaneous Operations (SimOps) Building a Long-Term Growth Engine TXL H2101 on production at 1,100 bbls/d and 1.1 MMcf/d 2,000 lbs/ft frac design; 4,574 lateral length Davidson 24-8H on production at 900 bbls/d and 1.3…
EAGLE FORD Growing Inventory After a Successful 1st Year Continuous Improvement in Drilling Cycle Time Recent Graben well on production at 1,300 bbls/d and 0 675 Mcf/d Current target D&C 5.6MM* 5,000 Pacesetter of 9.8 days…
DUVERNAY Improving Well Performance, Driving Down Costs Continued Drilling Improvements 16-11 well on production at 2,000 bbls/d condensate 0 and 11.5 MMcf/d 5,000 Move to RPH in 2014 made for major step change in execution 14-20 &…
MONTNEY Unlocking Significant Condensate Potential Inventory Becoming More Liquids Rich C9-35 well on production at 400 bbls/d condensate and CUTBANK PEACE 10 MMcf/d RIVER ARCH Tower D12-05 well on production at 375 bbls/d…
ON TRACK TO MEET 2015 GUIDANCE Disciplined & Results-Focused Approach To Capital Spending 2015F Total Cash Flow (B) 1.4 1.6 Capital, cash flow, production guidance unchanged - per common share, diluted (/sh) 1.70 1.95 Weighted Average…
CAPTURING EFFICIENCIES ACROSS THE BUSINESS Durable Cost Reductions, Focused Capital, Leaner Workforce 2/3 of 375MM Organizational 2015F efficiencies 2015F capital realignment Improved capital to be sustainable in focused on…
FINANCIAL POSITIONING Ample Liquidity To Support Execution of Strategy Committed to maintaining investment grade credit rating Mid-BBB ratings from Moodys, S&P and DBRS 1.3 billion Q2 debt repayment No long-term debt maturities…