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February 2012 Investor Presentation – Encana Corp

Encana Corp · Feb 17, 2012 · 83 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. February 2012 Investor Presentation – Encana Corp – slide 1
    Encana Corporation Corporate Presentation February | 2012
  2. February 2012 Investor Presentation – Encana Corp – slide 2
    2 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 ?…
  3. February 2012 Investor Presentation – Encana Corp – slide 3
    3 Our Strategy ? Invest in highest return projects ? Establish increased liquids weighting and diversify revenue sources ? Maintain industry leading cost structures Maximize Recognition of the Tremendous Value Inherent Within Our…
  4. February 2012 Investor Presentation – Encana Corp – slide 4
    4 Encana Corporation: Key Long-term Drivers ? Objectives: ? Invest in highest return projects ? Achieve greater market recognition for the value within our large asset base ? Leverage technology and expertise to lower cost…
  5. February 2012 Investor Presentation – Encana Corp – slide 5
    5 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…
  6. February 2012 Investor Presentation – Encana Corp – slide 6
    6 Encana Corporation High-grading & Focusing of Portfolio Dividends* Horn River Share purchases* East Texas Haynesville Integrated oilsands business (Cenovus) Natural gas storage Chad Offshore Brazil 2006 - 2010 2006…
  7. February 2012 Investor Presentation – Encana Corp – slide 7
    7 Encana Today Rebalancing of Portfolio & Continued High-grading Dividends** Kitimat LNG export Increasing liquids extraction capacity: total liquids forecast > 80,000 bbl/d* Large-scale joint ventures Duvernay, Tuscaloosa &…
  8. February 2012 Investor Presentation – Encana Corp – slide 8
    8 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…
  9. February 2012 Investor Presentation – Encana Corp – slide 9
    9 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…
  10. February 2012 Investor Presentation – Encana Corp – slide 10
    10 0 20 40 60 80 100 Peak Rate (%) New Plays Commercial Assets Harvest Assets Cutbank Ridge - Montney Cutbank Ridge - Montney Horseshoe Canyon CBM Horseshoe Canyon CBM Bighorn Bighorn Horn River ? Two Island Lake Horn River ?…
  11. February 2012 Investor Presentation – Encana Corp – slide 11
    11 Focused On What We Do Best Developing ?Key Resource Plays? ? Key resource play characteristics: ? Natural gas: ? Potential to reach or exceed 200 MMcf/d production ? Total recoverable reserves > 1Tcf ? Oil and liquids: ?…
  12. February 2012 Investor Presentation – Encana Corp – slide 12
    Meeting the Challenge Adapting to a Prolonged Low Natural Gas Price Environment ? Oil & liquids plays ? Balancing commodity mix ? 55% capital directed to liquids plays ? Advancing potential liquids plays; developing new Key Resource…
  13. February 2012 Investor Presentation – Encana Corp – slide 13
    13 ? Low cost focus - Advance resource play hub design and development ? Returns - Increase exposure to oil and natural gas liquids ? Leverage - Attract third party investments in undeveloped reserves and resources ? Value ?…
  14. February 2012 Investor Presentation – Encana Corp – slide 14
    14 ? Preserve natural gas resource potential ? Advance potential liquids plays ? Leverage technology and innovation to lower cost structures ? De-risk capital exposure and advance development through joint ventures ? Meet…
  15. February 2012 Investor Presentation – Encana Corp – slide 15
    15 USA Division Potential Liquids Portfolio 2011 Highlights ? Develop a low cost portfolio of high impact liquids plays ? Continue appraisal drilling program to assess prospectivity within captured plays ? Capture additional…
  16. February 2012 Investor Presentation – Encana Corp – slide 16
    16 Tuscaloosa Marine Shale Potential Light Oil Play ? 290,000 net acres ? 80% NRI ? 2-7 year lease term ? Vertical depth: ? 11,000 feet ? 2011 program: ? Completed existing horizontal well ? 2 new horizontal wells ? 5,000 &…
  17. February 2012 Investor Presentation – Encana Corp – slide 17
    17 ? 48,000 net acres ? Vertical depth: ? 7,000 to 8,000 feet ? 2011 program: ? Drilled and completed 5 horizontal wells ? Oil IPs ranged between 260 and 540 bbls/d ? NGL production 100 ? 200 bbls/d DJ Basin Niobrara/Mancos…
  18. February 2012 Investor Presentation – Encana Corp – slide 18
    18 Michigan Basin Collingwood/Utica Shale Early Entry ? First Mover Advantage ? 430,000 net acres ? Acquired at ~$200/acre ? Single well can hold 7,500 acres ? Vertical depth: ? 4,000 to 9,500 feet ? 2011 program ? Drilled 2…
  19. February 2012 Investor Presentation – Encana Corp – slide 19
    19 Encana USA Division Additional Potential Oil & Liquids Plays San Juan Basin ? New Mexico light oil play ? ~130,000 net acres ? Vertical depth ~6,000 ft ? Five well exploration program in first half of 2012 Eaglebine…
  20. February 2012 Investor Presentation – Encana Corp – slide 20
    20 Haynesville Shale A Top-tier Asset in a Dynamic Market Region ? Haynesville industry-wide production has grown to approximately 6.5 to 7.0 Bcf/d in the past 5 years ? The asset: ? Is highly competitive on a cost basis ? Is one…
  21. February 2012 Investor Presentation – Encana Corp – slide 21
    Haynesville ? Encana Leading the Way Resource Play Hub Program ? Superior safety performance ? Reduced environmental impact ? Repeatable execution efficiency ? Long lateral development ? Regulatory changes ? Deep well development…
  22. February 2012 Investor Presentation – Encana Corp – slide 22
    22 Haynesville Supply Cost Evolution 6 5 4 3 2 1 0 2008 LR 2009 LR 2010 RPH 2011F RPH 2012F ? Continuous completion design evolution ? Optimum well density ? Slowback ? Deeper longer wells ? Ultra long laterals ? Cross…
  23. February 2012 Investor Presentation – Encana Corp – slide 23
    23 Haynesville Resource Play Hub Long Lateral Current Pattern 640 acre, 4,600 ft lateral Previously undeveloped setback area Planned RPH Well Lease Retention Well New Planned Pattern 1,920 acre, 7,500 ft lateral Encana Leading…
  24. February 2012 Investor Presentation – Encana Corp – slide 24
    24 2012 Strategic Focus ? Implement Mitsubishi partnership ? Evaluate Duvernay and other potential liquids-rich assets ? Advance liquids extraction through deep-cut midstream arrangements ? Preserve natural gas resource…
  25. February 2012 Investor Presentation – Encana Corp – slide 25
    25 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…
  26. February 2012 Investor Presentation – Encana Corp – slide 26
    26 Exploration on Liquids-rich Lands Duvernay ? Exciting Potential Liquids Opportunity ? Started building land position in 2009 ? 375,000 net acres ? Simonette ? Kaybob ? Willesden Green ? 2011 Program ? Drilled 2 horizontal…
  27. February 2012 Investor Presentation – Encana Corp – slide 27
    27 Duvernay ? 2012 Parallel Track Strategy Accelerating Development & Leveraging Expertise Rapid Appraisal HZ Pilots RPH Dev Infrastructure solutions in Early Hub Dev place Steer Royalty & Regulatory Process Validate…
  28. February 2012 Investor Presentation – Encana Corp – slide 28
    Montney Resource Play Hub ? Wells per hub: 8 ? 12 ? Completions per hub: 100 ? 200 ? up to 17 stages/well ? ~11 acres/stage average ? Laterals ~650 ? 1000 feet apart ? Horizontal lateral length: ~6,500 ? 10,000 feet ? Completions…
  29. February 2012 Investor Presentation – Encana Corp – slide 29
    29 Montney Supply Cost Evolution Advancing Resource Play Hub Design and Development *DCT ? includes lease boundary drill, complete and tie-in costs. **Supply Cost is defined as the flat NYMEX price that yields a risked IRR of 9% and…
  30. February 2012 Investor Presentation – Encana Corp – slide 30
    30 Pipestone Montney Overview ? Approximately 190,000 net acres in Pipestone area ? 2011 production: ? 19.7 MMcfe/d ? 1,010 bbls/d of liquids ? Liquids potential yield of 40-90 bbls/MMcf ? 2012 program: ? 7 wells planned (4…
  31. February 2012 Investor Presentation – Encana Corp – slide 31
    31 Bighorn 2012 Program Over 700 Net Drilling Locations 2012 Program ? ~60-65 wells planned ? 35-40 horizontal; 20-25 deviated vertical ? Targeting Dunvegan, Falher, Wilrich and Cardium ENCANA LAND LEGEND ECA 2012 DUNVEGAN HZ…
  32. February 2012 Investor Presentation – Encana Corp – slide 32
    32 Increasing Liquids Extraction with Deep Cut 80,000 bbls/d by 2015F ? Includes current liquids production of ~25,000bbls/d plus deep cut facility expansions in Western Canada ? Does not include organic liquids growth! ? 55,000…
  33. February 2012 Investor Presentation – Encana Corp – slide 33
    33 Attracting Third Party Investments ? Immediate recognition of hidden value ? Achieves targeted reduction in resource inventory ? Enhances financial flexibility ? Creates strategic partnerships ? Aligns with goal to expand…
  34. February 2012 Investor Presentation – Encana Corp – slide 34
    34 ($6.7) $2.0 $2.0 ($1.7) JV funded (25% carry) ECA funded NPV per well comparison* Supply cost: $3.15/MMbtu $1.90/MMbtu PIR @ 9 %: 0.35 1.30 Technical F&D: $1.40/mcf $0.70/mcf Accelerating Value Leveraging Third Party (JV)…
  35. February 2012 Investor Presentation – Encana Corp – slide 35
    35 Increasing Exposure to Oil & NGLs ? Pursuing a full cycle, organic approach to shifting portfolio weighting ? Leveraging our core competency of horizontal drilling and completions ? Hold over 2.5 million net acres of land with…
  36. February 2012 Investor Presentation – Encana Corp – slide 36
    Evaluating New Potential Oil & Liquids Plays 2012F - $400 MM Capital Spend to Mid Year Potential New Play Wells Duvernay 5 - 10 Tuscaloosa 5+ DJ Basin Niobrara 10+ Eaglebine 5+ Piceance Niobrara/Mancos 5+ San Juan 5+ Other 2 - 5…
  37. February 2012 Investor Presentation – Encana Corp – slide 37
    37 70% 80% 90% 100% 110% 120% 130% 2005 2006 2007 2008 2009 2010 2011 2012F *2012F based on February 17, 2012 guidance. Balancing Capital Investment with Cash Flow Capital as a Percentage of Cash Flow Less Dividends Historical…
  38. February 2012 Investor Presentation – Encana Corp – slide 38
    38 $0 $1 $2 $3 $4 $5 $6 $7 $8 2008 2009 2010 2011 2012F 3-5 yr target Encana Historical Supply Cost Proven Track Record of Lowering Cost Structures $/MMBtu Including $0.30 G&A. 2012F represent initial projections Upper…
  39. February 2012 Investor Presentation – Encana Corp – slide 39
    39 ? Renewed bank credit facilities ? ~$5 billion committed until October 2015 ? Advanced disposition & joint ventures processes to enhance financial flexibility ? 2011 announced divestitures total $3.5 billion ? 2012 announcements…
  40. February 2012 Investor Presentation – Encana Corp – slide 40
    40 0% 1% 2% 3% 4% ECA TLM CHK DVN APA EOG APC 0% 1% 2% 3% 4% 5% ECA S&P/TSX Utilities S&P/TSX Comp S&P/TSX 60 S&P/TSX Energy CAD 5-yr bond CAD 1- mth T-Bill Attractive Dividend, Strong Yield Q4 2011 Quarterly…
  41. February 2012 Investor Presentation – Encana Corp – slide 41
    North American Natural Gas Fundamentals ? Market prices may remain challenging for producers through end of 2012 ? The lack of winter demand has caused record storage inventories and increased the risk of shut-in pricing ? A…
  42. February 2012 Investor Presentation – Encana Corp – slide 42
    42 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…
  43. February 2012 Investor Presentation – Encana Corp – slide 43
    43 $0 $5 $10 $15 $20 $25 Dec- 01 Dec- 02 Dec- 03 Dec- 04 Dec- 05 Dec- 06 Dec- 07 Dec- 08 Dec- 09 Dec- 10 Dec- 11 Dec- 12 Dec- 13 Dec- 14 Dec- 15 Gas Price per MMBtu Oil Source: NYMEX oil, coal, and…
  44. February 2012 Investor Presentation – Encana Corp – slide 44
    44 9 8 7 6 5 4 3 2 1 0 Jan-09 Mar-09 May-09 Jul-09 Sep-09 Nov-09 Jan-10 Mar-10 May-10 Jul-10 Sep-10 Nov-10 Jan-11 Mar-11 May-11 Jul-11 Sep-11 Nov-11 Jan-12 Mar-12 May-12 Jul-12 Sep-12 Nov-12 7 6 5 4 3 2 1 0…
  45. February 2012 Investor Presentation – Encana Corp – slide 45
    45 Kitimat LNG Project ? Encana 30% Interest Diversifying Markets ? Building Demand ? Co-owners ? Apache (40%, operator) ? Encana (30%) ? EOG (30%) ? 1,400 MMcf/d (10 MMT*) export capacity ? Pending final investment decision ?…
  46. February 2012 Investor Presentation – Encana Corp – slide 46
    46 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
  47. February 2012 Investor Presentation – Encana Corp – slide 47
    47 Natural Gas Fueling Projects Through 2011 Paving Way for Transportation and Operations ? Infrastructure investment ? 5 CNG stations ? 1 mini liquefaction plant ? 6 mobile LNG stations ? 1 fixed LNG station ? Vehicle…
  48. February 2012 Investor Presentation – Encana Corp – slide 48
    48 Impact of Natural Gas Initiatives Price Uplift and Operational Savings Through Internal Use Power Generation Drilling Light Duty Fleets On-Road Supply Chain ? $11 million saved ? $6.00/Mcf uplift ? 0.6 Bcf consumed ? $2.0…
  49. February 2012 Investor Presentation – Encana Corp – slide 49
    49 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…
  50. February 2012 Investor Presentation – Encana Corp – slide 50
    25 51 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 APA RDS CVX US Production Cdn Production Source: Company data, Energy eTrack estimates MMcf/d Leading North American Natural Gas…
  51. February 2012 Investor Presentation – Encana Corp – slide 51
    Continuous Portfolio Highgrading ? 2010 ? ~70 deals for total value of ~$1.6 billion ? ~15 active joint ventures ? Divestitures of ~$883 million ? Acquisitions of ~$733 million 2010 ? 2011 ? Divestitures of ~$2.1 billion ?…
  52. February 2012 Investor Presentation – Encana Corp – slide 52
    53 Disciplined Risk Management Natural Gas Price Hedging* - Increased Cash Flow Certainty 0.5 2.0 $5.80 $5.24 0.0 0.5 1.0 1.5 2.0 2.5 2012 2013 $0.00 $1.00 $2.00 $3.00 $4.00 $5.00 $6.00 $7.00 Volume Fixed Price Swap…
  53. February 2012 Investor Presentation – Encana Corp – slide 53
    54 *Supply Cost is defined as the flat NYMEX natural gas price that yields a risked IRR of 9% after tax and does not include land costs. Excludes emerging oil programs. Operating Efficiency Development Program ? Forecast Metrics…
  54. February 2012 Investor Presentation – Encana Corp – slide 54
    55 0 10 20 30 40 50 60 70 Annualized 2010 Production 2011 Reserves Res & ECR P1 ? 14.2 P2 ? 8.1 P3 ? 4.4 C1 ? 25.0 C2 ? 15.9 C3 ? 21.3 Comprehensive Disclosure Reserves and Resources (Tcfe) ? Best in class reserves and…
  55. February 2012 Investor Presentation – Encana Corp – slide 55
    56 High Quality Asset Base Reserves and Economic Contingent Resources (ECR) (Tcfe) Reserves: P1 is proved, P2 is probable, P3 is possible Economic contingent resources: C1 is low estimate, C1+C2 is best estimate, C1+C2+C3 is high…
  56. February 2012 Investor Presentation – Encana Corp – slide 56
    57 0 2 4 6 8 Other Greater Sierra** Jonah Bighorn CBM Texas Horn River Piceance Cutbank Ridge** Haynesville 1P (Proved) Reserves Evaluated by Independent Qualified Reserves Evaluators as of December 31, 2011. *Increase…
  57. February 2012 Investor Presentation – Encana Corp – slide 57
    58 Comprehensive Disclosure of Reserves & Resources Largest Reserves and Resource Life in Encana?s History Encana Reserves and Resources (Tcfe) 1 Estimated reserves Estimated economic contingent resources KRP P1 Proved P2…
  58. February 2012 Investor Presentation – Encana Corp – slide 58
    Reserves and Contingent Resources Definitions Characterization of Petroleum Initially in Place (PIIP) Reserve ? Resource Description Petroleum Resource Management System SPE ? PRMS Deve lopme nt not viable On produc tion P lay…
  59. February 2012 Investor Presentation – Encana Corp – slide 59
    60 Advancing Resource Play Hub Concentrated resource + Pad drilling + Manufacturing process = Resource play hub Represents 4-6 square miles of reservoir accessed from a single surface location.
  60. February 2012 Investor Presentation – Encana Corp – slide 60
    61 Haynesville Development Strategy * As at December 31, 2010; 3P is proved + probable + possible reserves; 3C is high estimate (C1 + C2 + C3); P1=2.4, P2=2.6, P3=0.8, C1=4.2, C2=4.1, C3=3.6 ** Supply cost is defined as the flat NYMEX…
  61. February 2012 Investor Presentation – Encana Corp – slide 61
    62 Haynesville Resource Play Hub Drilling Spud to Rig Release Improvement (Days) 0 25 50 75 100 2008 LR 2009 LR 2010 RPH 2011 RPH Drilling Cost per Well Improvement ($MM) $0 $2 $4 $6 $8 $10 $12 2008 LR 2009 LR 2010 RPH…
  62. February 2012 Investor Presentation – Encana Corp – slide 62
    63 ? Highest achieved flow rates and flowing pressure during clean up ? Restricted rate maintains fracture conductivity, currently 16MMcf/d at 10,100psi ? Type curve assumes 1.4 Bcf/1,000 feet, indications of 1.9 Bcf/1,000 feet ?…
  63. February 2012 Investor Presentation – Encana Corp – slide 63
    64 Haynesville Mid-Bossier Update ? Well performance competitive with Haynesville ECA MB Select Wells 2010 Avg. Haynesville *NGIP = Natural Gas Initially in Place; evaluated by Independent Qualified Reserves Evaluators - December…
  64. February 2012 Investor Presentation – Encana Corp – slide 64
    65 Jonah Highlights 30 Day IP - MMcfe/d 4 3 2 1 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 ? Step change in completions results ? Joint venture activity ? Northwest Natural Gas Utility to fund one rig for five years ? Pursing additional joint…
  65. February 2012 Investor Presentation – Encana Corp – slide 65
    66 ? Covers ~150km x 600km ? Montney fairway contains over 1,800 Tcf of NGIP ? ECA Montney acreage well positioned in the highest NGIP/section area. Montney Fairway High Montney Tight Gas Play GR_1 0 200 GAPI 2500 2550 2600…
  66. February 2012 Investor Presentation – Encana Corp – slide 66
    $2.95 $3.20 $1.98 $1.80 $0.09 $0.97 $0.05 $0.04 $0.16 $0.09 2010 Efficiencies New Frac Technology Increased Fracs 2011 Target Enhanced Liquids Recovery Increased Fracs Resource Play Hub Efficiencies Long-Term Target ?…
  67. February 2012 Investor Presentation – Encana Corp – slide 67
    68 Resource Play Hub ? Horn River Style 14-Well Pad Site With Concurrent Operations 63-K Pad
  68. February 2012 Investor Presentation – Encana Corp – slide 68
    69 The Evolution of the Horn River Advancing Resource Play Hub Design and Development ? One pad accesses 4 sections ? 8 acres/interval 2010 2011 Future Spacing ? One pad accesses 6 sections ? 14 acres/interval ? One pad…
  69. February 2012 Investor Presentation – Encana Corp – slide 69
    70 2009: Commerciality ? 41 wells drilled ? 13 wells online (cum) ? 4 wells completed ? 14 stage (downspacing pilot) 2012F: Remaining Flexible ? First Kiwigana production ? Retaining land 2008: Evaluate Potential ? 11 wells…
  70. February 2012 Investor Presentation – Encana Corp – slide 70
    71 CBM Development Strategy Pad Drilling ? 2012F multi-well pad development vs. 2011 single well: ? Shifted strategy to PAD style drilling with expected per well savings of 15% resulting in a supply cost of $3.30/MMBtu ?…
  71. February 2012 Investor Presentation – Encana Corp – slide 71
    72 Deep Panuke Project First Natural Gas Production Forecast: Mid-year 2012
  72. February 2012 Investor Presentation – Encana Corp – slide 72
    73 $2.95 $2.89 $2.21 $0.97 $1.34 $2.31 $0.00 $0.50 $1.00 $1.50 $2.00 $2.50 $3.00 $3.50 $4.00 $4.50 $5.00 Dewpoint Shallow Cut Deep Cut Natural Gas NGLs Increasing Exposure to Oil and NGLs Liquids Value Uplift C$/Mcfe*…
  73. February 2012 Investor Presentation – Encana Corp – slide 73
    74 APA EOG DVN ECA TLM NXY APC SWN CHK - Indicates ratings below investment grade S&P Moody?s 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 Source:…
  74. February 2012 Investor Presentation – Encana Corp – slide 74
    75 Encana Corporation Debt Maturity Schedule ? December 31, 2011 ($US MM) FX rate as of December 30, 2011 - 1.0170 $0 $100 $200 $300 $400 $500 $600 $700 $800 $900 $1,000 2012 2013 2014 2015 2016 2017 2018 2019…
  75. February 2012 Investor Presentation – Encana Corp – slide 75
    76 .0x 1.0x 2.0x 3.0x 4.0x 5.0x 6.0x APA SWN TLM EOG NXY DVN ECA CHK APC 0% 10% 20% 30% 40% 50% 60% APA SWN TLM EOG DVN ECA NXY APC CHK Total Debt to Adjusted EBITDA Capital Discipline ? Q3, 2011 Total Debt to…
  76. February 2012 Investor Presentation – Encana Corp – slide 76
    77 Encana DD&A & ROCE Canadian and U.S. GAAP Reconciliation* Net Earnings ($ millions) 2008 2009 2010 2011 U.S. GAAP 4,810 (5,552) 2,343 5 Canadian GAAP/IFRS 5,944 1,862 1,170 128 Difference (1,134) (7,414) 1,173 (123) Differences…
  77. February 2012 Investor Presentation – Encana Corp – slide 77
    78 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…
  78. February 2012 Investor Presentation – Encana Corp – slide 78
    79 0 50 100 150 200 250 300 350 Current Energy Use Current Natural Gas Consumption 2020F Consumption 2030F Consumption Residential Commercial Industrial Electric Power Transportation *U.S. data is as of 2010; Canadian data is…
  79. February 2012 Investor Presentation – Encana Corp – slide 79
    80 Natural Gas Opportunity Abundant, Affordable & Beneficial Attributes ? North American natural gas supply (& demand) could increase by approximately 25 Bcf/d 64 70 62 57 2 0 20 40 60 80 100 120 Coal Natural Gas Oil LNG…
  80. February 2012 Investor Presentation – Encana Corp – slide 80
    81 Fuel Consumption by Market Segment 5 0 10 15 20 25 30 35 40 45 50 Light Duty Heavy Duty Medium Duty Domestic Marine Rail O&G Supply Chain Source: Data and forecast from EIA, Encana Displaceable Market Volume: 73…
  81. February 2012 Investor Presentation – Encana Corp – slide 81
    82 What Makes LNG for Transportation Viable? Illustrative Full Cycle Cost Components ? LNG vs. Diesel 12% 13% 7% 23% 21% 24% Sales and Excise Tax Retailing Distribution ? LNG offers 20% to 40% savings depending on region* ?…
  82. February 2012 Investor Presentation – Encana Corp – slide 82
    83 Driving the Transformation Natural Gas on Drilling Sites Economic Energy Security Environmental LNG Storage and Regas System CAT 3516 LNG Fuel Transport NatGas-Elect Gen Sets Fuel Cost Savings for 4-Well Pad Using LNG: $830,000
  83. February 2012 Investor Presentation – Encana Corp – slide 83
    Upstream 2.7 - per common share, diluted ($/share) 4.75 2012F $0.05 decrease in the U.S./Canadian dollar exchange rate 0 130 $10/bbl increase in the WTI oil price 65 50 $0.50/Mcf increase in the NYMEX natural gas price 150 115 2012…

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