ENCANA CORPORATION Q4 and Year End 2016 Results Conference Call February 16, 2017
POSITIONED FOR GROWTH IN 2017 Strong finish to 2016 Efficient growth in 2017 Core asset Q4 production 237 MBOE/d Oil & condensate grow 35% through 2017 Reduced costs 600 MM versus 2015 Corporate margin expands to 10/BOE Q4 cash flow…
AHEAD OF SCHEDULE Momentum into 2017 Used innovation & technology to drive efficiency Rapidly transferred technology across portfolio Delivered strong well results Dramatically reduced costs Expanded premium return inventory…
PERMIAN The Multi-Basin Advantage 2016 Fourth Quarter Highlights 4 Drilling Rigs Reoccupying the Davidson Pad 2016 production grew by 20% from 2015 Latest completion designs delivering better value 2 new Midland County wells…
EAGLE FORD The Multi-Basin Advantage Austin Chalk Results Span Acreage 2016 Fourth Quarter Highlights Encana 7H IP30: 2,000 BOE/d Latest Eagle Ford completion designs driving increased value New Austin Chalk well 3 wells with…
MONTNEY The Multi-Basin Advantage Side-By-Side Well Pair Comparison 2016 Fourth Quarter Highlights Rapid knowledge transfer adding value 70 Cumulative Production (MBOE) 60 Application of thin fluid, tight cluster design in…
DUVERNAY The Multi-Basin Advantage Volatile Oil Duvernay Wells 2016 Fourth Quarter Highlights 120 New completions in Volatile Oil window adding value Cumulative Production (MBOE) 100 IP60 of 1,500 BOE/d with 1,000 bbls/d…
DIFFERENTIATED EXECUTION EFFICIENCY Maintaining Well Costs Flat ECA D&C Cost Breakdown 60 - 70% of 2017 program locked in at contracted rates or self- 40% of well cost is drilling sourced 60% of well cost is completions Ramped up to…
MET OR EXCEEDED TARGETS 2016 Highlights Q4 2016 FY 2016 Upstream Operating Cash Flow* Strong cash flow driven by production shift, higher realized Excluding Hedging (MM) 368 994 prices and lower costs Upstream Operating Cash Flow*…
2017 GUIDANCE Focus on High Margin Growth 2017F Guidance Margin expansion driven by focus on production Capital Investment (MM) 1,600 1,800 from oil & condensate rich assets Natural Gas (MMcf/d) 1,150 1,200 2017 capital program…
2017 PRODUCTION PROFILES Transitioning to Growth 35% oil & condensate growth 4Q16 to 4Q17 140 Oil & Condensate 120 20% core asset production growth 4Q16 to 4Q17 100 Total production growth begins in Q3 80 Mbbls/d 60 Total…
DOUBLING THE CORPORATE MARGIN BY 2018 Expanding the Margin Through Core Liquids Growth Core vs Non-Core Total Production Corporate Margin Growth at Flat Prices* 2016 2017F 2018F /BOE 15.0 12.5 72% 78% 82% 10.0 Core Non-Core…
RISK MANAGEMENT PROGRAM Adds Greater Certainty to Cash Flow and De-Risks Capital Program 70-75% of oil, condensate and gas protected in 2017 Oil and Condensate Positions Natural Gas Positions 100 1.50 1.25 Volume (Mbbls/d)…
REGIONAL PRICE RISK MANAGEMENT & MARKET ACCESS Sufficient Takeaway to Support Growth Plans in Montney & Permian Montney Permian Western Canadian Sedimentary Basin Permian Basin Natural Gas Production 15 BCF/d Oil Production 2.1…
POSITIONED FOR GROWTH 2021+ Strong finish, strong start Margin expansion & top line growth in 2017 Q4 2016 activity ramp Margin growth of 55% Premium return inventory expansion Core assets 20% Q4 to Q4 growth Relentless focus on…
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