ENCANA CORPORATION Barclays CEO Energy-Power Conference Doug Suttles, President & CEO New York, NY September 9, 2015
2015 FOCUS Navigating Market Volatility From a Position of Strength Executing a disciplined Four strategic assets expected to deliver rates of return 30% capital program 80% of capital to Permian, Eagle Ford, Duvernay &…
HIGH QUALITY ASSET BASE Montney Liquids rich Focused on Four Strategic Assets Duvernay High value condensate Permian, Eagle Ford, Duvernay & Montney Strong operating margins* 2015F: Permian, Eagle Ford & Duvernay - 26/BOE 2015F:…
POSITIONED FOR GROWTH BEYOND 2015 Permian + Eagle Ford + Duvernay + Montney On track to achieve 270,000 BOE/d in Q4 300 from four strategic assets 270 257 250 223 224 Production MBOE/d 200 183 150 100 50 - 4Q14 1Q15…
PERMIAN High Quality Resource and Long Term Growth Engine 10+ Years of Drilling Inventory ECA Acreage Concentrated in Most Active Areas* Stacked resource potential 10+ rigs Low risk, high margin inventory 6 9 rigs 2015 HZ program…
PERMIAN Strong Well Performance and Cost Reductions ECA Midland County Performance (Wolfcamp B) August production at 45 MBOE/d 26% production growth since 2Q15 31 HZ wells expected to come on stream in 2H15 2,000 21 HZ wells came on…
EAGLE FORD Significant Value Additions Since Acquisition Acquisition Current May 2014 August 2015 Base Decline 40% 34% 15% reduction in base decline Production 43 MBOE/d 57 MBOE/d 33% increase in production D&C Cost* 8.0MM…
EAGLE FORD Better Wells, Lower Costs and Increasing Inventory Drilling and Completions Costs* Average August production at 57 MBOE/d 10 3.0 8.0 25% production growth since 2Q15 8 7.4 6.7 2.5 MM/1,000 17 new Patton Trust South…
DUVERNAY Driving Down Costs Reducing drilling days Repeated Cost Improvement Since 2013, wells are drilled 41% faster 3MM/well savings MM/1,000 MM Primary drivers include casing design, bottom-hole 40 7 assembly, bit selection, and…
DUVERNAY Impressive Well Performance 14-20 & 12-06 Pad Performance Updates Average August production at 9.4 MBOE/d 62% production growth since 2Q15 15-31 Phase 2 started up in July (18 MBOE/d gross) Strong well performance limited…
MONTNEY Premier play in North America ECA Montney well results competitive to Marcellus Montney Play* Marcellus Play Avg. Production Basin Extent 58,000 mi2 47,000 mi2 Rate MMcfe/d 14 980 thick 20 250 thick Multi Layer Development…
MONTNEY Condensate rich well performance (8 wells) Inventory and Well Performance 6 1000 Condensate Rate (bbls/d) 5 800 Gas Rate (MMcf/d) Average August production at 145 MBOE/d 4 600 7% production growth since 2Q15 3 400…
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…
STRONG OPERATING MARGINS AT TODAYS PRICES Investing In Profitable Growth Oil-Weighted 26/BOE operating margin from oil-weighted assets Gas-Weighted Asset Operating Asset Operating Margin (/BOE) 1.15/Mcfe operating margin from Montney…
FINANCIAL POSITIONING Expect To Reduce Net Debt by 2 Billion in 2015 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 until…
BETTER WELLS, LOWER COSTS, INCREASING INVENTORY Foundation for future success World class assets Significant and sustainable cost savings Strengthening the balance sheet One. Agile. Driven. A culture of success
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