take a closer look March 29, 2012 Encana Corporation Global LNG Summit Randy Eresman | President & CEO
Encana Corporation Focused On What We Do Best North America?s Resource Play Specialist ? Huge portfolio of resource plays ? Recognized leader in innovation and cost reduction Disciplined capital investment and project execution ?…
Leading N.A. Resource Play Company Encana Resource Play Execution Methodology Resource Play Methodology Work With Governments ? Engage Stakeholders Address Infrastructure Exploration Assemble Land Base Pilot Understand…
Encana Corporation North America?s Resource Play Specialist Established history of developing resource plays from the ground up: ? From early stage identification ? Supported by dedicated new venture teams ? To large scale…
0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 XOM ECA CHK DVN COP APC BP RDS APA SWN US Production Cdn Production Source: Company data, Energy eTrack estimates MMcf/d Leading North American Natural Gas Company Q4…
Greater Sierra (inc. Horn River) Duvernay Cutbank Ridge (inc. Montney) Bighorn Coalbed Methane Jonah Niobrara/Mancos DJ Niobrara Piceance Texas Haynesville Tuscaloosa Land as at December 31, 2011 *Excludes potential impact…
Cutbank Ridge Partnership Overview Encana & Mitsubishi Corporation ? Mitsubishi to invest C$2.9 billion for 40% interest in Cutbank Ridge Partnership ? C$1.45 billion up front ? C$1.45 billion as 50% of Encana?s share of capital…
Marcellus SW PA (wet gas) Wattenberg - APC Granite Wash - horizontal Marcellus NE PA Marcellus Central PA Wattenberg - others Pinedale Anticline Natural Buttes Barnett Appalachia tight gas Fayetteville Eagle Ford Powder River…
North American Gas Supply Shale Gas Leading the Way 0 10 20 30 40 50 60 70 80 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Conventional Tight Gas Coalbed Methane Shale Source: IHS, Encana; note: excludes…
Key Growth Plays Shale Gas Leading the Way 5 0 10 15 20 25 Jan 2005 Jan 2006 Jan 2007 Jan 2008 Jan 2009 Jan 2010 Jan 2011 Barnett Fayetteville Woodford Haynesville Marcellus Eagle Ford Montney Horn River Source: IHS, Encana…
LNG Export Projects New Markets for North American Natural Gas Source: Encana, CIBC, FERC, Ventyx Energy Velocity Gulf Coast LNG 2.8 21.3 Oregon LNG 1.3 9.9 Progress/Petronas 2.0 7.6 Shell Kitimat 2.0 15.2 Sabine Pass 2.4 18.3 Lake…
Canadian LNG Exports Connected to Western Canada Pipeline Infrastructure ? Canadian LNG will have access to all of the western Canadian supply basin through an extensive pipeline network
Canadian Support for LNG ? National Energy Board (NEB): Kitimat Reason for Decision states - ?The exported LNG will not only open new markets for Canadian gas production, but the Board believes that ongoing development of shale gas…
Kitimat LNG Design Features ? 5.0 MMt/a on a compact plot size ? Sales quality gas ? Electric motor driven refrigerant compressors with power supplied from the grid (reduces gas shrinkage) ? Environmental Impact Certificate in…
Pacific Trail Pipelines Overview ? All major environmental permits received ? Presently in Front End Engineering Design (FEED) ? Capacity: 1.4 billion cubic feet per day of natural gas* ? 2015F in service to tie-in with LNG plant…
Kitimat LNG Market Diversifying Markets ? Building Demand Canadian West Coast LNG exports have transportation advantage relative to U.S. Gulf Coast Kitimat Japan South Korea China U.S. Gulf Coast Route
Marketing Status ? Negotiations underway with potentially up to 6 buyers ? Deals expected to be completed in 2012 in conjunction with FEED completion ? Volumes being negotiated are expected to support 2 train facility ? Desire to…
Kitimat LNG Projected Next Steps ? 2012 ? FEED study complete ? Commercial contracts in place ? Final Investment Decision expected ? 2012 - Pipeline route clearing, facility construction ramps up ? Construction throughout 2013,…
Abundance of natural gas enables an energy plan that will include? ? Natural gas as a preferred fuel for power generation ? Expanded natural gas use in industrial applications ? Accessing new markets ? LNG export ? Natural gas as a…
Electric Power 41% Industrial 20% Residential 7% Transportation 28% Commercial 4% 80 Bcfe/d 117 Bcfe/d Electric Power 31% Industrial 31% Residential 22% Transportation 1% Commercial 15% *U.S. data is as of 2010;…
Take a Closer Look Strategically Positioned to Excel We are ? The leading North American resource play company ? Pursuing the greatest long-term value creation for shareholders ? Committed to responsible financial stewardship We…