A PREMIER E&P 2 Continued Execution YTD Accomplishments Upcoming Milestones Rapid integration of Newfield Exploration Continued reductions in Anadarko well costs Reduced well costs by 1 MM in Anadarko Further demonstrate repeatable…
STRENGTH OF OPERATIONS 3 Interim Update Core Asset Liquids Growth 350 Repurchased 10% of outstanding shares YTD 300 On track to meet 2019 capital investment 250 Production Mbbls/d guidance of 2.7 2.9 billion Q219F…
GROWTH FROM REPEATABLE WELL PERFORMANCE 4 Anadarko Oil and Condensate Growth 70 Q219 production to date: 160 MBOE/d o Oil and condensate up to 60 Mbbls/d, up 20% vs Q1 proforma 60 o STACK oil and condensate up to 48 Mbbls/d, up 30%…
CAPITAL DISCIPLINE 5 Disciplined Approach Priority 1 - Financial Strength Manage leverage at mid-cycle prices to 1.5x net debt to adjusted EBITDA Maintain strong liquidity Investment grade credit ratings Priority 2 Dividends*…
PRODUCTION EFFICIENCY 6 Track Record of Efficient Liquids Growth Continued improvements in the Permian and Permian and Montney liquids have grown Montney, early wins in Anadarko 2.5x since 2016 Q4 Liquids Production Efficiency…
THE ENCANA ADVANTAGE 7 Execution Rapidly Improving Anadarko Returns Self-sourced sand and chemicals Increased pad dimension Performance-driven improve reliability accommodates drive- project management at and lower costs through…
T O D AY S E N C A N A C O R P O R AT I O N 8 A Premier E&P A Premier E&P Financial Strength Investment grade profile Return of Capital 1.25 billion share buyback and 25% increase in annual dividend* Sustainable Free Cash Flow…
APPENDIX
MULTI-BASIN PORTFOLIO WITH SCALE 10 Liquids-Focused, Multi-Basin Portfolio Strength Core positions in three of the top plays in North America 2.0 BBOE of proforma high quality proved reserves* o 2018 YE Reserve Life Index (RLI) of…
HIGH RETURNS 11 Deep Inventory of High Return Growth Assets Continued Liquids Growth* 2019F** Capital 2.7-2.9B 300 Montney Liquids Production (Mbbls/d) Anadarko 200 Permian Other 100 75% of 2019F** capital directed…
MULTI-BASIN PORTFOLIO WITH SCALE 12 Creating Value Through Scale & Innovation Proven expertise in cube development o Concurrent, multi-stack development maximizes resource value and lowers well costs 25% Average D&C cost* reduction…
FINANCIAL STRENGTH 13 Financial Flexibility Long-Term Debt (B) Commitment to maintaining a strong balance sheet 7.1 o Reduced long-term debt by nearly 3 billion from 2013 to 2018 o Reduced long-term commitments by 4.3 billion from…
RETURN OF CAPITAL 14 Returning Capital to Shareholders 2018 2019F Planned Returns* Sold 13 billion of assets since 2013 2.0 o 80% of production and proved reserves sold were natural gas Distributions to Shareholders (B) o…
CUBE DEVELOPMENT 15 Optimized Development Maximizing Value Spacing & stacking across multiple zones Cube Development Maximizes NPV Vertical and horizontal optimizations System based approach considers how wells interact in the…
PERMIAN 16 2019 Program FY 2019 PLAN ACREAGE (net acres) / AVERAGE WORKING INTEREST % 115,000 / 92% 2019 AVERAGE WORKING INTEREST (%) 96% AVERAGE ROYALTY RATE (%) 25% CAPITAL (net) (MM) 925 975 NET WELLS DRILLED 105 120 NET…
PERMIAN 17 Core Growth Asset Cube development yields free cash flow and growth o Tripled liquids production since acquisition (Q4 2014) o 500 net wells drilled Basin innovator with peer leading performance ** o 20% reduction in…
LEADING INDUSTRY 18 Permian Industry Leading Cycle Time* Days (Spud First Production) 33 net wells on-stream in Q1 o Consistent well performance across all counties Q1 production of 91 MBOE/d o 3.2 MBOE/d shut-in due to third…
PERMIAN 19 Midstream And Marketing Overview Colorado City Majority of oil production gathered via pipeline with access to multiple physical markets Firm gas gathering and NGL processing with Pipelines Midland connect to access to…
ANADARKO 20 2019 Program FY 2019 PLAN** ACREAGE (net acres) / AVERAGE WORKING INTEREST % 361,000 / 57% 2019 AVERAGE WORKING INTEREST (%) 70% AVERAGE ROYALTY RATE (%) 17 20% CAPITAL (net) (MM) 800 - 850 NET WELLS DRILLED 65…
ANADARKO 21 Core Growth Asset Growing Production** Liquids growth and free cash flow generator o 134,800 BOE/d, 60% liquids in 2018 o 100% of core lands held by production Achieved targeted 1 MM well cost reduction o Cube…
REPEATABLE WELL PERFORMANCE 22 Anadarko Recent STACK Pad Completion 31 net STACK wells on-stream in Q1(1) o Wells continue to meet or exceed 1.3 MMBOE type curve o Includes 49 gross operated STACK wells at 63% liquids Q1…
ANADARKO 23 Midstream And Marketing Overview Majority of oil production gathered via pipeline Cushing with direct access to Cushing markets Segregated WTI oil stream provides premium pricing at Cushing Firm NGL processing with…
MONTNEY 24 2019 Program FY 2019 PLAN ACREAGE (net acres) / AVERAGE WORKING INTEREST % 793,000 / 64% - PIPESTONE ACREAGE / WI % 89,000 / 100% 2019 AVERAGE WORKING INTEREST (%) 72% AVERAGE ROYALTY RATE (%) 5 10% CAPITAL (net)…
MONTNEY 25 Core Growth Asset 60 Growing Liquids** 50 Liquids (Mbbls/d) 40 30 Self-funded multi-year liquids growth 20 o More than tripled liquids production since 2015 o 275 net wells drilled since 2015 10 -…
COMPETITIVE RETURNS 26 Montney 180 Continued Cycle Time Improvement Days (Spud First Production) 150 15 net wells on-stream in Q1 120 o On track for 70 80 net wells in 2019 90 Q1 production of 207 MBOE/d 60 o 4.3 MBOE/d…
MONTNEY 27 Midstream And Marketing Overview Combination of firm export capacity and basis hedges to manage AECO gas price* risk o Realized price including hedge expected to be 0.50 below NYMEX in 2019 100% firm capacity on o AECO…
CORE GROWTH ASSETS 29 Type Curves Play IP30 (BOE/d) IP180 (BOE/d) EUR/Well (Mbbls) EUR/Well (MBOE) GOR (scf/bbl) Permian Basin1 Midland/Upton 985 700 610 1,020 2,800 Martin 950 650 675 1,000 2,000 Howard 825 600 550 875 2,450…
LEVERAGING SCALE 30 Cost Effective Water Management Permian Martin County Water Hub Area specific solutions o Permian Combination Encana-owned low-cost water hubs and third party providers Recycled 50% of produced water in 2018…
2019 GUIDANCE 31 Reconciliation of Full Year Guidance to Reportable 14.00 2019 Guidance: Reportable Versus Full Year 12.00 G&A Excl. LTI 2019 Reportable Impact of Newfield Full Year 10.00 and Restr. Costs Guidance Jan 1 - Feb 13,…
C O S T C O N T R O L O F C O R P O R AT E I T E M S E N H A N C E S P E R U N I T M A R G I N 32 Maximizing Margin Lower Total G&A2 600 2.50 G&A 30% lower on a per BOE1 basis o On track for 150 million in annualized G&A savings,…
P R O J E C T E D C O M P O S I T I O N O F T OTA L P R O D U C T I O N 33 Product Value Chain Excluding Hedge Canada US 2019F (1) 2019F Pricing 2019F(1) 2019F Pricing (Mbbls/d) (% WTI) (Mbbls/d) (% WTI) Oil (2) 01 70% 175 180 98%…
MIDSTREAM AND MARKETING 34 Hedging Summary BENCHMARK HEDGES 2019(2) Oil and Condensate WTI Oil WTI FIXED PRICE SWAP 35 Mbbls/d o 250 MM per 5.00/bbl increase in NYMEX WTI to 2019 SWAP PRICE (US/bbl) 60.31/bbl Q2-Q4 cash flow after…
D E B T P O R T F O L I O A S AT M A R C H 3 1 , 2 0 1 9 35 Disciplined Financial Management Committed to maintaining a strong balance sheet Significant financial flexibility Well-dispersed maturity profile Multi-basin model favored…
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