Peters & Co 2013 Energy Conference Kevin Smith Vice President, Northwest Business Unit September 10, 2013 Toronto
Tremendous Asset Base Leading North American Portfolio of Resource Plays Land (MM net acres) Total land position: 10.9 Horn River Fee land (advantaged royalty structure): 3.6 Reserves & Resources (Tcfe; 100% externally evaluated)…
2013 Focus Top Priorities for Second Half of 2013 1. New strategy in place by year-end expected implementation in 2014 2. Focus on cost reductions and capital efficiency expect to see impact on financial performance in second half…
Oil & NGL Production Growth Significant Liquids Growth Since 2011 Mbbls/d Sources of significant liquids 80 production in 2013: Range: 70-75 70 Bighorn Mbbls/d Peace River Arch 60 DJ Basin Clearwater 50 2013F estimated liquids…
Peace River Arch Asset Overview Resource 602,000 net acres Estimated PIIP: 36 Tcf, 1 3 billion bbls Gordondale Well cost: 7 12 million EUR per well: 4 16 Bcfe Oil gravity: 47 63 API Strategy Accelerate liquids production Advance…
Duvernay Eagle Ford Analog Grand Prairie High quality, core position 460,000 gross acres 1,000 - 1,600 gross well locations Kaybob current focus area moving to RPH development mode Significant liquids growth potential…
How Third Party Capital Benefits Encana Illustrative JV vs. Retained Development Plan* Encana capital constant in either case Partner capital spent towards Encanas working interest increases net production Capital, production Year…
Unconventional Reservoir Comparison Duvernay World Class Reservoir Total organic content, liquids potential and permeability are key differentiating parameters Reservoir Attribute Duvernay Marcellus Eagle Ford TVD Depth (ft) 8,200…
Duvernay Royalties and Taxes Impact of Royalty and Tax Structures Single Well IRR% 200 180 Before Royalties 160 Before Tax 140 After Tax 120 IRR (%) 100 80 60 40 20 0 Eagle Ford Duvernay
Key Messages Converting assets into cash flow Striving to be North Americas most efficient and profitable developer of energy Tremendous asset base Growing exposure to oil and natural gas liquids 70,000 75,000 bbls/d 2013F…