ENCANA CORPORATION Q3 2016 Results Conference Call November 3, 2016
ENCANA Quality Returns & Leading Growth Potential (2016 2021) Delivering quality World class asset Resilient business returns portfolio model 300% cash flow* growth 5 year plan consumes Competitive cost small fraction of premium…
ENCANA Beating 2016 Targets and Positioned for Growth Very strong Q3 cash flow driven by operational efficiency Well productivity increases driven by completion design Matched or beat pacesetter well costs in core four assets Core…
OPERATIONAL EXCELLENCE Maximizing Capital & Operating Efficiency PORTFOLIO ADVANTAGE INNOVATION Multi-basin company creates enormous R&D lab is the field flexibility and value CONTINUOUS IMPROVEMENT COMPETITOR BENCHMARKING…
PORTFOLIO ADVANTAGE Core Positions Within the Best Basins Montney Permian Eagle Ford Duvernay Alberta Alberta B.C. Tower Simonette Dawson North South Karnes Simonette South Pipestone 20 miles 15 miles 6 miles 12…
PERMIAN COMPETITOR BENCHMARKING Leading Acreage & Completion Design Permian Production* vs Peers Encana wells among the top performers in 120 Midland Basin 100 Encana average IP180 of 500 BOE/d Cumulative Production (MBOE)…
PERMIAN CONTINUOUS IMPROVEMENT Well Performance Increasing New Glasscock County Wells Outperforming Optimal completion design matters 100 IP180F/1000' (BOE/d) 80 Precision targeting 60 Frac geometry 40 30% increase Fluid…
EAGLE FORD CONTINUOUS IMPROVEMENT Well Performance Increasing Optimizing completion design Improved Fracture Complexity Latest design utilizes a thin fluid…
MONTNEY CONTINUOUS IMPROVEMENT Well Performance and Margins Increasing Well Productivity Increase* IP180 Optimizing completion design 250 IP180/1000' (BOE/d) 200 Up to 55% increase in IP180 since 2014 150 < 65 foot cluster…
INNOVATION Permian D&C Costs* Well Costs Still Dropping MM 8 7.1 New pacesetters achieved in Permian & Duvernay 6 4.9 4.7 Repeated pacesetters in Montney & Eagle Ford 4 4.2 Pipestone average D&C costs down to 4.4MM/well 2…
CONTINUOUS IMPROVEMENT Met Operating Cost Reduction Target One Year Early Driving Down Operating Costs* Beat 20% per unit operating cost target One year ahead of target /BOE 5.50 Permian horizontal opex under 4/BOE 5.16 5.00…
BEATING 2016 TARGETS AND POSITIONED FOR GROWTH Very strong Q3 cash flow driven by operational efficiency Well productivity increases driven by completion design Matched or beat pacesetter well costs in core four assets Core four…