ENCANA CORPORATION. Eagle Ford. Eric T. Greager Vice-President & General Manager, Western Operating Area

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1 ENCANA CORPORATION Eagle Ford Eric T. Greager Vice-President & General Manager, Western Operating Area

2 EAGLE FORD Core Position in the Oil Window Largely contiguous position in the Karnes Trough Most active and profitable trend in the Eagle Ford Completion innovations leading to better wells 217 well inventory improvement Stacked pay, infill spacing, Austin Chalk offer premium inventory upside High value, high rate wells >8% of production is high value liquids Top quartile performance within industry 2

3 Gross Operated Oil Production (Mbbls/d) LEADING OPERATOR Top Karnes County Producers Gross Encana Production vs Peers* Eagle Ford MRO EOG ECA COP PXD MUR DVN *Data sourced from Drilling Info, Inc. Gross operated production in April, 217, for Karnes County, TX. 3

4 Oil Production IP18/1,ft (bbls/d) WELL PRODUCTIVITY Top Performance vs Peers Encana Peer 1 Peer 2 Peer 3 Peer 4 Peer 5 Peer 6 Peer 7 Peer 8 Peer 9 Peer 1 Peer 11 Peer 12 Peer 13 Leading well performance in the play since moving to advanced completions Driving best in class production efficiency in the Eagle Ford Data sourced from IHS, Inc. Includes all data from August 216 onward. Peers include DVN, COP, EOG, MRO, MUR, COG, CRZO, NBL, EPE, CHK, STO, SN and SM 4

5 Measured Depth (ft) EAGLE FORD CAPITAL EFFICIENCY Significant Productivity Improvements Return-focused enhanced completions 45% performance improvement from 15% D&C cost increase Improvement in production efficiency Current D&C cost* of $4.6MM with advanced completions Reduction in drill days Drilled pacesetting 8 day well Real time geo-steering 5, 1, 15, Drilling Days vs Depth Days Average 215 Average 216 Average 217 YTD Pacesetter 2, *Normalized to 5,. 5

6 Cumulative Production (MBOE) MARGINS & RETURNS Karnes County 3 25 Karnes Eagle Ford Type Curve IP3 = 1,2 BOE/d IP18 Oil = 72 bbls/d EUR = 65 MBOE D&C = $4.6 MM (incl. advanced completions scope) Lateral Length = 5, Days on Production Eagle Ford Type Well Metrics Net ECA Atax IRR (%) 68% Operating Margin ($/BOE) $3 All metrics based on $5/bbl WTI, $3./MMBtu NYMEX 6

7 Cumulative Production (MBOE) INNOVATION SUCCESS - FRAC COMPLEXITY Thinner Fluids & Tighter Clusters Fracture Complexity Leads to Improved Performance 4 P A S T P R E S E N T Producing Days Early completions Bypassed pay Parameters >6 Clusters High Viscosity Fluid Tight spacing Stress shadowing Overwhelmed interior clusters Parameters 25 Clusters High Viscosity Fluid Complex system Many thin propped fractures Parameters <2 Clusters Low Viscosity Fluid Completions Parameter Past Historical Standard Present ECA Design Complex Fracture Cluster Spacing (ft) >6 <2 Proppant (lbs/ft) <1, >2, Fluid System Viscosity High Low 7

8 Cumulative Production MBOE / 1' EAGLE FORD STACKED AND STAGGERED Triple Stacking with Complex Fractures Optimizing spacing both vertically and horizontally Greater overall resource recovery Premium inventory expansion potential 1H 2H 4H 6H Eagle Ford 33 x 8 Stacked & Staggered Pattern Days on Production 8

9 Cumulative Production (MBOE) EAGLE FORD SIGNIFICANT VALUE CREATION Austin Chalk Development Austin Chalk Type Curve IP3 = 1,4 BOE/d IP18 Oil = 83 bbls/d EUR = 77 MBOE D&C = $4.6 MM (incl. advanced completions scope) Lateral Length = 5, Producing Austin Chalk Wells as of 3Q Days on Production Type Well Metrics ECA Net Atax IRR (%) 92% All metrics based on $5/bbl WTI, $3./MMBtu NYMEX Operating Margin ($/BOE) $3 9

10 EXPANDING MARGINS Reducing Operating Costs Leveraging company-wide effort Optimized repairs, maintenance, and workovers Shifting work in-house Supply management gains Lower costs on chemicals, water hauling Improved artificial lift performance $/BOE $1 $9 $8 $7 Eagle Ford Direct Operating Cost Reductions ~2% Improvement in operating costs $6 $5 $ F 1

11 MIDSTREAM AND MARKETING OVERVIEW Eagle Ford Close proximity to market and well-developed infrastructure Eagle Ford Three Rivers Corpus Christi Houston Firm gas gathering and NGL processing aligned with asset development program Infield gathering and extensive market assets in place to ensure flow and downstream connectivity Diverse physical marketing portfolio with access to Gulf Coast refining markets Proximity to market minimizes transportation cost and related commitments while maximizing margins 11

12 ENCANA EAGLE FORD Massive Value Creation ~5, BOE/d expected through the 5-year plan Free cash flow generator Focus on continuing to increase returns by driving capital productivity and margins 12

13 SAN JUAN BASIN Evaluating Liquids Growth Potential 217 operation highlights 6 well program 6,1 average completed lateral length Evaluation Program Target best rock Advanced completion design Well spacing trial Stacked pay potential 217 program 13