ENCANA CORPORATION Q3 Results Conference Call November 12, 2015
FOCUSED GROWTH Lowering Costs and Growing High Margin Production Execution in the core four assets on track Permian: top tier operator Eagle Ford: great asset continues to outperform Duvernay: delivering compelling returns Montney:…
QUALITY GROWTH FROM HIGH MARGIN ASSETS Liquids Production Doubled Since Q1 2014 (Mbbls/d) 160 140 Total liquids up 10% from Q2 and up 35% Y-O-Y 120 YTD liquids 78% oil and condensate* 100 80 Core four assets driving liquids growth 60…
INNOVATION AT WORK Encanas R&D Lab Is In The Field Finding the right solutions to enhance returns today Well spacing in three dimensions in complex reservoirs Targeting the best pay with advanced reservoir characterization & geo-…
PERMIAN Peer D&C Cost Performance Top Tier Operator MM 10 Top tier cost performance 9.5 9 D&C costs down 2MM/well since acquisition 8.5 8 D&C costs of 6.4MM/well in Q3, down 9% from Q2 7.5 7 Top tier production performance…
EAGLE FORD Aggressive reductions in D&C Costs A Great Asset Continues to Outperform MM 10 MM/1000 5 Average Q3 D&C cost of 5.4MM/well 7.8 8 4 6.8 5.8 5.4 Beating the 5.6MM well cost target* 6 3 Completion days dropped 42% to…
DUVERNAY Duvernay and Eagle Ford well comparison Delivering Compelling Returns MM (Gross) 12 Q3 production of 9.3 MBOE/d 10 Up 59% since Q2 8 New cost benchmark realized on 15-22 pad 6 4 Completion cost of 6.4 MM/well 2 Water…
MONTNEY 2016 2018 Production Efficiency Capital Efficiency & Liquids Growth Total Capital MM /BOE/d Four new Mid-Montney condensate wells completed in Tower 1,000 1,500 9,500 10,500 All wells flowing 500 bbls/d within first 30 days…
BUILDING MOMENTUM IN 2H 2015 Q3 2015 Q2 2015 YTD 2015 Q3 Highlights Upstream Operating Cash Flow* 314 315 1,083 35% y-o-y increase in total liquids volumes Excluding Hedging (MM) Upstream Operating Cash Flow* 10% sequential…
DRIVING CASH FLOW WITH STRATEGIC INVESTMENT Higher Margin Production Offsetting Lower Q3 Oil Price Q2 vs. Q3 Upstream Operating Cash Flow MM Excluding Hedging Upstream operating cash flow excluding hedging 350 unchanged in Q3 vs. Q2…
DISCIPLINED FOCUS ON REDUCING COST STRUCTURE Enhancing Total Corporate Returns MM Quarterly G&A and interest expense down 85 million 250 since prior to launch of strategy in 2013 200 Q3 G&A expense down 50% vs. 2012 average Q3…
THE STRATEGY IS WORKING Execution in the core four assets on track Innovation and focus driving both efficiency and margins Reducing corporate costs Proactively managing the balance sheet One. Agile. Driven. A culture of…