ENCANA CORPORATION Peters & Co. Limited 2015 Energy Conference Sherri Brillon, Executive Vice-President & CFO September 15, 2015 Toronto, ON
2015 FOCUS Navigating Market Volatility From a Position of Strength On track to meet 2015 capital guidance of 2.0 - 2.2 billion Executing a disciplined 80% of capital to Permian, Eagle Ford, Duvernay & Montney capital program 4…
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…
ENCANAS APPROACH TO RESOURCE PLAY DEVELOPMENT Better Wells, Lower Costs, Increasing Inventory Core Principles Delivering Value Be in the best rocks Optimizing well performance Be among the best operators in our plays Driving capital…
RESOURCE PLAY HUB DEVELOPMENT MODEL Continuous Pursuit of Innovation & Efficiencies SIMULTANEOUS OPERATION DUAL FRAC SPREAD OPERATION Reduced spud to IP by 30 days Reduced spud to IP by 26 days 700K savings per well Permian…
RESOURCE PLAY HUB DEVELOPMENT MODEL Continuous Pursuit of Innovation & Efficiencies COMPLETION INITIATIVES WATER RESOURCE HUB 60% improvement in production rates Reduced use of surface water Improves EUR* 2X 300K savings per well…
PERMIAN Strong Well Performance & Continued 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…
EAGLE FORD Significant Efficiencies & Inventory Upside 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 wells on…
DUVERNAY Leading Well Performance & Driving Down Costs Repeated Cost Improvement Average August production at 9.4 MBOE/d 62% production growth since 2Q15 40 7 15-31 Phase 2 started up in July (18 MBOE/d gross) 30.5 6 30…
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…
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…
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