DEMONSTRATING THE POWER OF A LEADING SHALE PORTFOLIO 2 A Premium E&P Company Premium positions in 3 top shale plays supports a sustainable business across price environments o Focused on generating free cash flow o Maintaining…
VALUE PROPOSITION 3 Disciplined, Focused and Profitable Growth financial strength + return capital to shareholders + quality growth potential Leading North American unconventional producer with: Resilient, multi-basin…
CAPITAL ALLOCATION PRINCIPLES 4 Return of Capital Model Priority 1 - Financial Strength Lower Prices Investment grade credit ratings Manage leverage at mid-cycle prices to 1.5x net debt to adjusted EBITDA Strong liquidity…
ENCANA: A PREMIER NORTH AMERICAN RESOURCE COMPANY 5 Newfield Acquisition Aligned With Strategy Top tier resource, multi-basin optionality TOP TIER MARKET o Core-of-the-core positions in 3 of North Americas top basins RESOURCE…
ASSET OVERVIEW 6 Multi-Basin Advantage Core positions in 3 top North American basins: Permian, Anadarko & Montney Montney High quality growth opportunities Duvernay Other assets support scale, generate free operating cash…
KEY MESSAGES 7 2019 Priorities Rapid and successful integration of Newfield o Achieve run rate synergies in H2 2019 o Immediately deploy cube development model to Anadarko 1.25 BILLION SHARE REPURCHASE PROGRAM IN 2019 Generate…
DISCIPLINED CAPITAL ALLOCATION & FREE CASH FLOW GENERATION 8 2019 Overview 2019 Initial Capital Allocation Expect to generate free cash flow at current commodity prices Expect 2019 capital spend to be lower than combined 2018…
ASSET OVERVIEWS 9 Capital Investment Focused on Returns Permian Anadarko Delivered highly efficient 2018 Newfield achieving oil type curve on 2018 program with 4 rigs infills* Achieved 100 MBOE/d in Q4 2018 HBP drilling sets up for…
EXECUTION AT SCALE 10 Anadarko Poised for Cube Development Held by production wells completed primarily with low frac intensity o Reduces future parent-child interactions Lease Line Pairs maximizes potential un-drained…
SYNERGY SUMMARY 11 High Confidence Synergies Annualized G&A Costs (MM/yr) Cube Development Synergies in Anadarko 1 MM/well savings x 125 net wells = 125 MM/year Current Well Cycle Time Pad Supply Completions Well Cost Cost…
2018 HIGHLIGHTS 12 Encana Free Cash Flow Positive in 2018 Met or exceeded all guidance measures Delivered free cash flow in 2018 250 million share buyback executed in 2018 High-value liquids growth from Permian and Montney Strong…
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