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Strategic Combination of Encana Corporation & Newfield Exploration Co – Newfield Exploration Co.

Newfield Exploration Co. · Nov 12, 2018 · 14 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. Strategic Combination of Encana Corporation & Newfield Exploration Co – Newfield Exploration Co. – slide 1
    Strategic Combination of Encana Corporation & Newfield Exploration Co. Creating the Premier North American Resource Company Supplemental Information November 2018
  2. Strategic Combination of Encana Corporation & Newfield Exploration Co – Newfield Exploration Co. – slide 2
    CREATING THE PREMIER NORTH AMERICAN RESOURCE COMPANY 1 Advanced multi-basin onshore model creates scale and sustainability 2 Allows for accelerated return of cash to owners 3 Encanas expertise in Cube Development is a game…
  3. Strategic Combination of Encana Corporation & Newfield Exploration Co – Newfield Exploration Co. – slide 3
    SCALE & SUSTAINABILITY THRU LIQUIDS-FOCUSED, MULTI-BASIN PORTFOLIO Three Core Growth Assets* Permian 118,000 acres 99 MBOE/D (85% liquids) Montney STACK/SCOOP 360,000 acres 144 MBOE/D (60% liquids) Duvernay Montney 379,000 acres…
  4. Strategic Combination of Encana Corporation & Newfield Exploration Co – Newfield Exploration Co. – slide 4
    COMBINED ENTITY OCCUPIES ELITE E&P NEIGHBORHOOD Net North American Onshore Acres 6 3Q 18 Production Mboepd 5 4.8 4 3.4 Millions of acres 3 2.8 2.62 2 1.6 1.0 1 0.6 749 401 575 3962 419 321 287 0 EOG APA PF ECA /…
  5. Strategic Combination of Encana Corporation & Newfield Exploration Co – Newfield Exploration Co. – slide 5
    DIFFERENTIATED ESTIMATE FOR FREE CASH FLOW YIELD1 14% 12% PEER5 10% PEER4 PF ECA/NFX PEER1 w/synergies 8% PEER2 PF ECA/NFX PEER6 2019E FCF Yield 6% w/o synergies PEER3 PEER8 4% PEER7 2% PEER11 PEER12 (0%) PEER9…
  6. Strategic Combination of Encana Corporation & Newfield Exploration Co – Newfield Exploration Co. – slide 6
    STRONG INVESTMENT GRADE RATING Consistent with mid-cycle leverage targets Expect 2019 net debt to Adjusted EBITDA of 1.5x Combination of two strong balance sheets Encana Newfield Pro Forma enhances credit profile Debt Outstanding…
  7. Strategic Combination of Encana Corporation & Newfield Exploration Co – Newfield Exploration Co. – slide 7
    TRANSACTION OVERVIEW Purchase Price 7.7 B transaction value (includes 2.2 B of NFX net debt) All stock2.6719 shares of ECA for each NFX share Consideration Subject to regulatory and shareholder approvals (ECA & NFX) Estimated 1 MM…
  8. Strategic Combination of Encana Corporation & Newfield Exploration Co – Newfield Exploration Co. – slide 8
    TWO COMPANIES MORE ALIKE THAN DIFFERENT A Compelling Strategic Fit Todays Encana Tomorrows Encana Innovation culture Strategic multi-basin company Leading-edge Cube Development Best technologies applied Efficient value chain…
  9. Strategic Combination of Encana Corporation & Newfield Exploration Co – Newfield Exploration Co. – slide 9
    INDUSTRY LEADING CUBE DEVELOPMENT Cube Development Maximizes Shareholder Value Effective cube development is critical Maximum Creates value at an industrial scale shareholder value Maximizes asset NPV and provides resource longevity…
  10. Strategic Combination of Encana Corporation & Newfield Exploration Co – Newfield Exploration Co. – slide 10
    STACK PRIMED FOR CUBE DEVELOPMENT Existing Permanent Water Pipelines Contiguous acreage conducive to cube development Key Infill DSUs HBP wells placed along lease line boundaries 95% of STACK is undeveloped Access to premium…
  11. Strategic Combination of Encana Corporation & Newfield Exploration Co – Newfield Exploration Co. – slide 11
    STACK PRIMED FOR CUBE DEVELOPMENT 1.3 MMboe TC 6 MRMC wells / DSU1 8 MRMC wells / DSU 69 wells across 10 DSUs 350 25 350 25 Avg. Cumulative Production (Mboe) Avg. Cumulative Production (Mboe)2 demonstrate repeatability of…
  12. Strategic Combination of Encana Corporation & Newfield Exploration Co – Newfield Exploration Co. – slide 12
    INDUSTRY LEADING G&AESTIMATED 1.3 BN PV-10 G&A SYNERGIES 7.00 6.73 6.00 5.00 / Boe 3.95 4.00 50% reduction 3.25 + 3.06 3.19 2.90 3.00 2.63 10% reduction 2.26 2.00 1.62 1.62 1.64* 1.37 1.49 1.00 0.00 Peer 1 PF…
  13. Strategic Combination of Encana Corporation & Newfield Exploration Co – Newfield Exploration Co. – slide 13
    VALUE CREATION INITIATIVES Value driver Details G&A synergies 125 MM / yr Expected 1 MM / Anadarko well D&C cost reduction (125 MM / yr) Synergies PF company size and scale provides Cost of capital reduction increased…
  14. Strategic Combination of Encana Corporation & Newfield Exploration Co – Newfield Exploration Co. – slide 14
    NEWFIELD AT A GLANCE YE17 Proved Reserves by area 3Q18a Production by area Founded Employees 9% 1% 7% 2% 1988 1000 10% 10% 10% 185-190 11% mboepd Largest oil producer in Oklahoma 69% 71% Founded STACK in 2011 11 operated…

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