ENCANA CORPORATION Q2 Results Conference Call August 1, 2018
STRONG EXECUTION DRIVES CASH FLOW GROWTH Expect to generate free cash flow in 2018 2018F cash flow margin now expected to be 16/BOE, up from 14/BOE Q2 cash flow up 47% from Q1 On track to deliver 30% annual production growth* Core…
STRATEGY IS DELIVERING RESULTS A Winning Value Proposition TOP TIER MARKET RESOURCE FUNDAMENTALS Operational excellence Cube development maximizes NPV of acreage, becoming industry standard Culture of innovation and execution Top…
STRONG FINANCIAL PERFORMANCE Q2 Highlights Q2 Q1 2018 2018 Expect to generate free cash flow in 2018 Net Earnings (MM) (151) 151 Full year cash flow margin increases to 16/BOE Operating Earnings (MM) 198 156 Margin expansion drives…
FOCUSED ON QUALITY LIQUIDS GROWTH 1 Year of Liquids Growth Captures Value Liquids Production Growth Focused liquids growth drives cash flow 200 Liquids production up 32 Mbbls/d vs 175 H1 2017 Liquids Production Mbbls/d 150…
CONVERTING PRICE TO MARGIN Growing Liquids, Holding Costs to Expand Operating Margin Converting Price Increase to Operating Margin Increased liquids mix 35.00 Oil and condensate growth driving margin expansion 30.00 Cost…
EXPANDING MARGINS & DE-RISKING GROWTH Midstream & Marketing Contributes 100 MM YTD Ensuring market access Market Diversification adds 100 MM YTD Manage flow assurance through flexible and reliable 600 + 13% to Cash Flow midstream…
MARKET DIVERSIFICATION PAYS Q2 Permian Price Uplift Delivers Value Q2 Permian Realized Oil Price (incl. Basis Hedge) Ensuring market access Firm transport to Houston Maximizing price realizations Portion of Permian volumes linked to…
OPERATIONAL EXCELLENCE Execution Firmly On Track Cube Drilling in the Montney Continued strong well results from new Permian cubes Early on-stream of Tower liquids hub de-risks Q4 Montney liquids growth Supply chain management…
PERMIAN CUBE DEVELOPMENT Driving Efficient Execution Continued Strong Performance in Martin Permian currently at record production of 90 MBOE/d 175 Cumulative Production 150 Strong production performance from new cube 125…
MONTNEY LIQUIDS GROWTH ON TRACK Liquids Production to Double Q417 to Q418 Montney liquids production up 18% in Q2 vs Q1 Montney Liquids Set to Double Strong liquids growth continuing in Q3 70 60 Liquids Mbbls/d Currently…
MONTNEY OPTIONALITY Activity Focused on Richest Reservoir Encanas Montney acreage spans the Drilling Program Focused on Liquids Rich Areas maturity window from dry gas to volatile oil 1 Tower 3 Pipestone British Columbia Initial…
EAGLE FORD & DUVERNAY Generating Significant Free Operating Cash Flow Eagle Ford returned to growth Strong 2018 Austin Chalk Results Brought on 11 wells in Eagle Ford in Q2 200 2018 production results de-risking potential future…
DEMONSTRATING EFFICIENT EXECUTION AT SCALE Business expected to generate free cash flow in 2018 On track to deliver 30% annual production growth* Strong operations performance across the portfolio First mover approach to market…
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