ENCANA CORPORATION Q1 2017 Results Conference Call May 2, 2017
FOCUS ON QUALITY CORPORATE RETURNS Growth on Track for 2017 & five-year-plan Sequential quarterly oil and condensate production growth fueled by Permian & Montney Over 20% Q4 2016 to Q4 2017 core asset production growth Montney…
FIRMLY ON TRACK 2017 Q1 Highlights Robust corporate margin expansion: 2017 Guidance on Track: Lowered cost structures Q1 production ahead, positioned to grow in second half 2017 Improved asset mix Core asset production held flat from…
Q1 PRODUCTION AHEAD OF PLAN Executing On Growth Over 35% oil & condensate growth 4Q16 to 4Q17 140 Oil & Condensate Over 20% core asset production growth 4Q16 to 4Q17 120 100 Actual Total production growth begins in Q3 80…
INDUSTRY LEADING VALUE CREATOR Delivering Quality Corporate Returns 2016 Midland Breakevens by Operator* Best Rocks 80 2016 Breakeven 20:1 70 Exclusive focus on premium return 60 locations (/bbl WTI) 50 Multi-basin…
DEVELOPING THE CUBE Differentiated Execution Above-ground execution benefits Developing the full stacked resource at once Increased D&C efficiencies maximizes corporate returns Multi-well pads Faster drill times Multi-rig spreads…
2 Frac Spread Layout Plan in the Permian DEVELOPING THE CUBE Differentiated Execution Above-ground execution benefits Increased D&C efficiencies Multi-well pads Faster drill times Multi-rig spreads Increased pumping horsepower…
4 Frac Spreads on RAB Davidson Pad LEADER IN STACKED ROCKS Boosting Permian Productivity Premium returns at development scale Emphasis on well performance 12-well Midland Abbie Laine pad on-stream during the quarter Full scale…
INNOVATION & EFFICIENCY Technology & Planning Structured innovation across the portfolio and real-time knowledge transfer Montney Initial advanced completion designs Real-time fibre optic installed downhole to determine cluster…
Advanced Completion Design Boosting Returns THE MULTI-BASIN ADVANTAGE Advanced Completions Outperforming Tight cluster, thin fluid, fine proppant first piloted in the Tightening clusters Eagle Ford maximizes fracture Created new…
THE MULTI-BASIN ADVANTAGE Advanced Completions Outperforming Real-time knowledge transfer across our portfolio 50-60% improvement in productivity Eagle Ford Pipestone Montney Tower Montney 250 120 60 Cumulative Production…
MANAGING INFLATION Maintaining Well Costs Flat in 2017 ECA D&C Cost Breakdown Fully offset inflation with efficiency improvements in Q1 40% of well cost is drilling On track to deliver flat well costs versus 2016 60% of well cost is…
RISK MANAGEMENT PROGRAM Managing Cash Flow & Balance Sheet Risk 70-75% of oil, condensate and gas protected for remainder of 2017 Oil and Condensate Positions Natural Gas Positions 100 1.50 1.25 Volume (Mbbls/d) 75 Volume…
MONTNEY RISK MANAGEMENT PROGRAM Market Access & Price Risk Management* 2017F 2018F - 2020F 278 MMcf/d Less than (0.97)/Mcf 33% 475 MMcf/d Less than Less than 50% (0.87)/Mcf 1/2 87 MMcf/d to 316 MMcf/d Sumas/Malin to Dawn…
PERMIAN RISK MANAGEMENT PROGRAM Market Access & Price Risk Management 2017F 2018F - 2020F 15% 20% 17 Mbbls/d (0.83)/bbl 35 Mbbls/d 25 Mbbls/d to (0.61)/bbl Option for up Houston to 25 Mbbls/d to Houston Midland…
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