ENCANA CORPORATION Barclays CEO Energy-Power Conference Doug Suttles, President & CEO New York, NY September 7, 2016
LEADING CASH FLOW GROWTH POTENTIAL Encana 2016-2021 Strong core four returns over 35% ATROR Expect commodity mix to continue to balance Expect corporate margin to almost double even at flat prices Potential for up to 60% production…
PREMIUM RETURN INVENTORY Montney Robust Foundation for Growth 9,300 well locations Duvernay 1,000 well locations Over 20,000 total inventory locations across core four assets An increase of almost 100% in the last year Driven by…
ENCANA Transformation Complete Core of the core positions TOP TIER MARKET RESOURCE FUNDAMENTALS Returns and margins focused Strong core four over 35% ATROR Over 90% of capital directed to core four 100% premium return horizontals…
YTD OPERATIONAL UPDATE Lower Costs, High Returns, Margin Expansion 2016 Driving down operating and D&C costs Revised 2016 Guidance Guidance Expect to capture an additional 100 million in operating cost savings (Feb 24, 2016) D&C…
PACESETTING WELLS Relentless focus on capital efficiency Permian Quarterly D&C Performance Pacesetters are a leading indicator of future costs MM Driven by innovation 10 Structured approach to testing new ideas/technologies 8…
PERMIAN Aggressive reductions in D&C Costs* Basin Leading Operator MM 8 New pacesetting D&C cost of 4.3 MM 7.1 Average D&C cost of 4.9 MM/well in Q2, down 31% from 2015 6 5.4 4.9 4.3 Davidson 14-well pad producing 10,000 BOE/d…
EAGLE FORD Eagle Ford D&C Costs* Continued Cost Improvements MM 8 New pacesetting D&C cost of 3.0 MM 6.3 Pacesetting drill in 8.5 days 6 Average D&C cost of 3.9 MM/well in Q2, down 38% from 2015 4 3.5 3.9 3.0 Increasing…
DUVERNAY Duvernay D&C Costs* Leading Productivity and Costs MM New pacesetting D&C cost of 6.8 MM 14 12.3 12 Average D&C cost of 7.5 MM/well in Q2, down 40% from 2015 10 8.0 7.5 50% of production is condensate 8 6.8 6 Volumes…
MONTNEY Cutbank D&C Cost Reductions* Focusing on the Condensate MM 8 New pacesetting D&C cost of 4.2 MM 6.4 Average D&C cost of 4.3 MM/well in Q2, down 33% from 2015 6 5.0 4.3 4.2 Growing Montney liquids 4 2016 program…
TRANSITION COMPLETE ENCANA POSITIONED FOR GROWTH Encana 2016-2021 Strong core four returns over 35% ATROR Expect corporate margin to almost double even at flat prices Potential for up to 60% production growth Potential for up to…
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