ENCANA Delivering Quality Corporate Returns MARKET North American leader in: ACCESS Generating free cash flow TOP TIER 1.5 billion cumulative over plan RESOURCE Cash flow growth 25% CAGR 2017-2022 Corporate returns ROCE climbs to…
EXPANDING MARGINS & INCREASING RESILIENCE Commercial Innovation Tightly connected with Adding confidence to 5-year plan Integrated operations Significantly reduced exposure to AECO approach Execution tied directly to strategy price…
EXPANDING MARGINS & INCREASING RESILIENCE Addressing Key Market Risks WCSB and Permian Encanas Montney is a condensate play Canadian condensate demand over 1.5x higher than domestic production Canadian condensate price set by cost of…
WESTERN CANADIAN MARKET FUNDAMENTALS Premium Condensate Market & Natural Gas Export Basin 97% YTD WTI Price Realization Condensate is a premium product in Western Canada 4% 2018F total revenue exposed to AECO Combination of…
AGREEMENT WITH VERESEN MIDSTREAM Fee-for-Service Structure Tower & Sunrise Plants On-Stream Tower and Sunrise plants on-stream Facilities came on ahead of schedule and under budget Encana designed, built and operates the facilities…
REVIEW: MAY 2016 MESSAGING VS TODAY Montney Cost Advantage to Northeast Markets 2016: Existing capacity will out- compete new-build economics to Eastern Canadian markets by 0.15-0.30/MMBtu 2016: Montney continues to Dawn LTFP:…
WESTERN CANADIAN CONDENSATE FUNDAMENTALS Premium Condensate Market Condensate demand in western Canada is expected to outstrip domestic supply with imports bridging the gap Source: RBC Capital Markets and Government Data 8
WCSB RISK MANAGEMENT PROGRAM Market Access & Price Risk Management* 2018F 2019F - 2020F 20% < 33% 475 MMcf/d 500 MMcf/d Less than (0.87)/Mcf (0.88)/Mcf 1/2 316 MMcf/d to Dawn 316 MMcf/d to Dawn 114 MMcf/d to Malin 46…
Permian Basin Market Fundamentals Infrastructure Development Continues to Pace Production Growth Strong oil production growth & proactive infrastructure development Market access has kept pace with volume growth Proximity to market…
PERMIAN BASIN FUNDAMENTALS Past & Future Pipeline Capacity Expansions Align with Growth 5,000 Potential Current oil export infrastructure 2.7 MMbbls/d Crude Oil Production / Takeaway Capacity (Mbbls/d) price risk 4,500…