ENCANA CORPORATION Q2 2017 Results Conference Call July 21, 2017
FOCUS ON QUALITY CORPORATE RETURNS Business we have been building has arrived Delivering quality returns through the cycle Margins expansion happening earlier than original guidance Expect to be 2X net debt / adjusted EBITDA by…
STRONGLY AHEAD IN YEAR 1 OF 5 YEAR PLAN Core Assets Growth Ahead of Target Q2 2017 Q1 2017 Robust corporate margin expansion through higher value product mix and lower costs Cash Flow (MM) 351 278 Operating Margin, Excl. Hedge…
UPDATED 2017 GUIDANCE Performance Exceeding Expectations Improving guidance 2017 Original Disposition Improvements 2017 July Production guidance raised (ex. Guidance Impact** (Midpoint) Guidance dispositions) Capital Investment (MM)…
DISCIPLINED FINANCIAL MANAGEMENT Balance Sheet Continues to Strengthen for Third Consecutive Year Well positioned for price volatility Leverage Rapidly Dropping 3.5 75% hedged through second half 2017 on both gas oil/C5+ 3.2x…
EXPANDING MARGINS Liquids Growth Driving Margin Expansion Product Mix & Efficiency Driving Corporate Margin Higher Improving core asset production volumes In Q2, liquids up to 40% of total production Core assets growing 25-30% Q4/16…
SUSTAINED MONTNEY LIQUIDS GROWTH Montney Liquids Growing Every Quarter New Production Boosting Liquids Mix 40,000 20% Liquids Production (bbls/d) 30,000 15% 2017 Montney program averages 35% liquids % Liquids Base Montney…
BOOSTING PREMIUM TYPE CURVES Permian Well Productivity Increased by 20%* Completions Driving Productivity 200 Normalized Cumulative Q4 2016 & Production* (MBOE) 2017 wells Wells consistently outperforming type curves 150…
PREMIUM RETURN INVENTORY GROWING Deepest High Quality Inventory in Industry Premium Inventory Change Since October 2016 Now 11,000 total premium return locations 12,000 2,020 11,070 Includes replacement of 230 gross wells drilled…
DEVELOPING THE CUBE Permian Cube Large Scale Development Performance Comparison Operators must be able to efficiently execute at 100 scale to create value and returns from the play ECA sustained leading Average Cumulative…
DEVELOPING THE CUBE Montney Cube 28 Well Tower Cube Development Multiple proven Montney benches on ECA lands New Dawson South 4-well pad confirming expectations Averaged 525 bbls/d liquids and 2,600 BOE/d IP30 Expect additional…
Conceptual Advanced Completions Design USING INNOVATION TO ADD VALUE Differentiated Pace of Improvement Rapid knowledge transfer across our assets Successfully implemented Advanced Completions across the core assets Advanced…
INCREASING BUSINESS RESILIENCY Managing Risk and Preserving Flexibility Maintaining agility in a short-cycle capital business: Sophisticated planning & supply chain management Just-in-time infrastructure avoids non-productive capital…
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