PERMIAN BASIN Premier North American Basin Developing the cube Critical to creating value at industrial scale Reservoir & above-ground benefits Natural extension of our experience & capabilities Premium inventory increased by 700…
ENCANAS PERMIAN ACREAGE Core Position in Midland Basin In the Permian, execution efficiency at massive industrial scale is going to be critical North American unconventionals is all we do Martin Howard 100% short cycle capital…
BEST ROCKS APPROACH Deliberate and Disciplined Evaluation Geoscience, Engineering & Data Driven Approach Basin Focus Resource potential Geologic setting Market access Play Focus Resource in place Geology Petrophysics Hydrocarbon…
RESERVOIR CHARACTERIZATION TOOLBOX Structured Approach to Maximizing Value 6
INNOVATION & DISCIPLINE DRIVE EFFICIENCY Leveraging Technology To Create Value Structured innovation across the portfolio with real-time knowledge transfer Multi-discipline chief organization engaged through planning and execution…
BOOSTING PRODUCTIVITY Leading Acreage & Completion Design Midland Basin Well Productivity* vs Peers Rocks matter 120 Our well performance is improving rapidly Deep understanding of the physics of the reservoir 100 40% ECA 2017…
DEVELOPING THE CUBE Parent-Child Productivity Case Study Differentiated Execution 15 Reservoir benefits Cumulative Oil Production (Mbbls/1000') Cube development eliminates Average Optimizes resource recovery 12 parent-child…
CUBE DEVELOPMENT RESULTS Boosting Permian Productivity Large Scale Development Performance Comparison 100 Development approach at premium returns ECA leading performance in 90 large scale development Average Cumulative…
BOOSTING PREMIUM RETURNS Outperformance Driving Type Curve Update All Encana Midland/Upton Wells On-stream since July 2016 Wells in all counties consistently outperforming 200 type curves 45 wells in data set Normalized…
CORING UP ACREAGE Drilling Longer Laterals Martin Howard By coring up our acreage, we can drill longer laterals 14 transactions since entering the basin 40% of premium locations expected to be drilled with 10,000 ft laterals…
PERMIAN RESERVOIR Massive Potential with Stacked Benches Midland/ Zone Martin Glasscock Howard Upton Clear Fork M. SPBY Jo Mill L. SPBY L. SPBY- 2nd WCMP A WCMP A- 2nd WCMP B WCMP C WCMP D / Cline Deep Targets…
PREMIUM INCREASE OUTPACING DRILLING Gross Premium Return Inventory Midland/ 3,450 premium return inventory County Martin Howard Glasscock Upton locations IP30 (BOE/d) 985 950 825 800 Increase of 700 locations IP180 (BOE/d) 700 650…
FINDING FUTURE OPPORTUNITIES Upside in the Permian Conceptual Advanced Completion Design Rapid knowledge transfer across our assets Advanced completions creating stronger wells in Montney & Eagle Ford Thin fluid, tight cluster…
Multi-Spread Completions Plan vs Actual INNOVATION BEYOND TECHNOLOGY Highly Sophisticated Planning & Logistics Seasoned operator with 4,500 horizontals drilled Leading EHS performance across industry Top D&C performance across…
DEVELOPING THE CUBE Differentiated Execution 1.2 MM Savings/Well vs Single Well Development RAB Davidson Phase 1 Cube Development Multi- rig/spread 25% Multi-well pad efficiencies efficiencies 75% Multi-well pads…
CONTINUED EFFICIENCY GAINS Maintaining Well Costs Flat in 2017 Drilling Days vs Depth in the Permian Expected 2017 average D&C cost of 5 MM Days Flat versus 2016 average 0 5 10 15 20 25 0 RAB Davidson Phase 2 highlights continued…
WATER INFRASTRUCTURE SOLUTION Improving Efficiency & De-risking Supply Integrated water infrastructure improves capital intensity and de-risks supply Abbie Laine Water Resource Hub Capacity to support 3 frac crews per county in…
PRODUCTION OPERATION HIGHLIGHTS Competitive LOE Performance D&C Sim-Ops on RAB Davidson 27 Pad Operating expense below 7/BOE Efficiency gains through multi-well pad development Reduced workover costs Remote monitoring and control…
MANAGING INFLATION Maintaining Well Costs Flat in 2017 ECA D&C Cost Breakdown Holding the line on inflation and working on greater 40% of well cost is drilling intensity at similar total well costs 60% of well cost is completions RAB…
MIDSTREAM AND MARKETING OVERVIEW Permian Basin Permian Basin Colorado City Oil Production 2.3 MMbbls/d Gas Production 7.5 BCF/d Medallion pipeline Oil Export Capacity/Demand 2.5 MMbbls/d Midland provides midstream 2017/18 New Oil…
PERMIAN BASIN FUNDAMENTALS Past & Future Pipeline Capacity Expansions Align with Growth 5,000 Crude Oil Production / Takeaway Capacity (Mbbls/d) 4,500 4,000 3,500 Over 700 Mbbls/day of pipelines 3,000 are under construction…
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…
PERMIAN 5 Year Growth Profile Five Year Production Profile 180 50% of Encanas capital directed to the Permian 160 Permian production expected to grow 3-4x 5 year CAGR* 30% 140 Quality inventory with scale 120 No…
DELIVERING QUALITY CORPORATE RETURNS Growing Value & Adding Resiliency Our goal is to generate quality corporate returns while Abbie Laine 3-Rig Drill-out managing risk Strategy, organization, process, & culture must be aligned…
PERMIAN BOOSTING PRODUCTIVITY Leading Acreage & Completion Design Midland Basin Well Productivity* vs Peers Best Rocks Matter Defined break between results from the 120 core versus non-core Exclusive focus on premium return 100…
INDUSTRY LEADING CAPITAL EFFICIENCY Impact of Operational Excellence Midland D&C Costs by Operator* Best Rocks Matter Defined break between results from the 8 core versus non-core 7 Exclusive focus on premium return 4 operators…
INDUSTRY LEADING VALUE CREATOR Delivering Quality Well Returns 2016 Midland Breakeven Cost by Operator* Best Rocks Matter 80 Defined break between results from the core versus non-core 70 Exclusive focus on premium return…
PERMIAN INCOME MARGIN Premium Returns at the Corporate level Converting Well Returns to Corporate Returns** ATAX well returns of 35% deliver corporate return 35% of 15% Permian delivers 30/BOE operating margin* 15-20% NRI F&D…
5 YEAR CAPITAL, PRODUCTION & CASH FLOW OUTLOOK Self-Funding Capital Program Post 2017 MM Cash Flow Projected 300% cash flow* growth 4,000 Focus on high margin production amplifies cash flow growth 3,000 Self funding post 2017…
SUPPLEMENTAL
ENCANAS POTENTIAL PREMIUM RETURN INVENTORY Only Premium Inventory Consumed in Growth Plan Permian Basin Montney Premium Inventory 12,000 well inventory 9,300 well inventory 3,450 premium locations 5,900 premium locations 1,000…
PERMIAN 2017 Program 2017 Program Maximize value through optimized completion design 50% production growth Q4 2016 to Q4 2017 FY 2017 Plan Program on schedule Acreage (net acres) 124,000 As of May 2017, 40% of 2017 wells drilled…
RESOURCE IN CONTEXT Encana Holds Core Positions in Premier Basins Horizontal Rig Activity* by Play 180 ECA Core Asset 150 Active Basin Oil Rig Active Basin Gas Rig 120 90 60 30 0 ECA portfolio focused entirely on…
Highest Quality Reservoir CORE POSITIONS IN THE BEST ROCKS Non-Reservoir ECA Position Building of a Premium Return Inventory Howard Glasscock Montney Permian 10 - 45 MMBOE/sec 200 MMBOE/sec Up to 6 stacked laterals Up to 8…
FULLY INTEGRATED ANALYTICAL PLATFORM Utilized Through All Phases of Development Studio Data Centralized, Dynamic Database for all Clients Automated Geotechnical Workflows Real Time Data LSBY Dean Customized Environment A…
GEOCELLULAR RESERVOIR MODEL Defines the Resource Martin Co. CF C Dean USBY MSBY Jo Mill LSBY Dean Low High A B/C Wolfcamp A Canyon Cline Strawn CF C DFK H060 USBY MSBY Jo Mill 605C Physics based geologic model…
Loading...
