CIBC Oil & Gas Weekly

Transcription

1 I N S T I T U T I O N A L E Q U I T Y R E S E A R C H Jon Morrison 1 (403) Jon.Morrison@cibc.com John Gibson 1 (403) John.Gibson@cibc.com Scott Reid, CFA 1 (403) Scott.Reid@cibc.com Arthur Grayfer, CFA 1 (403) Arthur.Grayfer@cibc.com Shahzaib Merwat 1 (403) Shahzaib.Merwat@cibc.com Mark Zalucky 1 (403) Mark.Zalucky@cibc.com Adam Gill, CFA 1 (403) Adam.Gill@cibc.com Serhiy Petrenko 1 (403) Serhiy.Petrenko@cibc.com Dave Popowich 1 (403) Dave.Popowich@cibc.com Dan Forget 1 (403) Dan.Forget@cibc.com Energy CIBC Oil & Gas Weekly Q2/16 Earnings Season Continues This Week I N D U S T R Y U P D A T E July 25, 2016 What's Changed This should be another busy week for Canadian energy news flow with Q2/16 earnings season continuing with PSK on Monday; BNP and WRG on Tuesday; SU and SES on Wednesday; BTE, CFW, MEG, ARX and CVE on Thursday; and IMO on Friday. In addition, look for the Brent monthly oil contract to expire and roll on Friday. Equity performance for Canadian energy stocks was relatively flat this past week while the U.S. energy ETF market realized an inflow of ~$240 million. Overall, the Integrated names were the strongest relative performer with stocks up an average of ~150 bps W/W, followed by Large Cap E&Ps which held flat W/W, while Junior/Intermediate names declined ~40 bps W/W, the Oilfield Services subsector declined by ~160 bps W/W, and International E&Ps declined by ~240 bps W/W. All figures in Canadian dollars, unless otherwise stated CIBC World Markets Corp., the U.S. broker-dealer, and CIBC World Markets Inc., the Canadian broker-dealer (collectively, CIBC World Markets Corp./Inc.) do and seek to do business with companies covered in its research reports. As a result, investors should be aware that CIBC World Markets Corp./Inc. may have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as only a single factor in making their investment decision. For required regulatory disclosures please refer to "Important Disclosures" beginning on page 27. Find CIBC research on Bloomberg, Reuters, firstcall.com CIBC World Markets Inc., P.O. Box 500, 161 Bay Street, Brookfield Place, Toronto, Canada M5J 2S8 (416) and ResearchCentral.cibcwm.com CIBC World Markets Corp., 425 Lexington Avenue, New York, NY (212)

2 Jan-13 Mar-13 May-13 Jul-13 Sep-13 Nov-13 Jan-14 Mar-14 May-14 Jul-14 Sep-14 Nov-14 Jan-15 Mar-15 May-15 Jul-15 Sep-15 Nov-15 Jan-16 Mar-16 May-16 Jul-16 Jan-13 Mar-13 May-13 Jul-13 Sep-13 Nov-13 Jan-14 Mar-14 May-14 Jul-14 Sep-14 Nov-14 Jan-15 Mar-15 May-15 Jul-15 Sep-15 Nov-15 Jan-16 Mar-16 May-16 Jul-16 Jan-13 Apr-13 Jul-13 Oct-13 Jan-14 Apr-14 Jul-14 Oct-14 Jan-15 Apr-15 Jul-15 Oct-15 Jan-16 Apr-16 Jul-16 Jan-13 Apr-13 Jul-13 Oct-13 Jan-14 Apr-14 Jul-14 Oct-14 Jan-15 Apr-15 Jul-15 Oct-15 Jan-16 Apr-16 Jul-16 Jan-13 Apr-13 Jul-13 Oct-13 Jan-14 Apr-14 Jul-14 Oct-14 Jan-15 Apr-15 Jul-15 Oct-15 Jan-16 Apr-16 Jul-16 2 Exhibit 1. North American Energy Equity Indices TSX vs. S&P 500 TSX vs. TSX Capped Energy S&P 500 vs. S&P 500 Energy TSX Composite S&P TSX Composite TSX Capped Energy S&P 500 S&P 500 Energy Energy Indices - Canada TSX E&P TR TSX Integrated TR TSX Oilfield Services & Equipment TR TSX Drillers TR Energy Indices - U.S S&P 500 E&P S&P 500 Integrated S&P 500 Equipment & Services S&P 500 Drillers Source: Bloomberg and CIBC World Markets Inc.

3 Jan-13 Mar-13 May-13 Jul-13 Sep-13 Nov-13 Jan-14 Mar-14 May-14 Jul-14 Sep-14 Nov-14 Jan-15 Mar-15 May-15 Jul-15 Sep-15 Nov-15 Jan-16 Mar-16 May-16 Jul-16 US$/Bbl Jan-13 Mar-13 May-13 Jul-13 Sep-13 Nov-13 Jan-14 Mar-14 May-14 Jul-14 Sep-14 Nov-14 Jan-15 Mar-15 May-15 Jul-15 Sep-15 Nov-15 Jan-16 Mar-16 May-16 Jul-16 Jan-13 Mar-13 May-13 Jul-13 Sep-13 Nov-13 Jan-14 Mar-14 May-14 Jul-14 Sep-14 Nov-14 Jan-15 Mar-15 May-15 Jul-15 Sep-15 Nov-15 Jan-16 Mar-16 May-16 Jul-16 US$/Bbl US$/MMBtu Exhibit 2. Commodities and ETF's Funds Flow WTI vs Brent $130 $120 WTI Brent $110 $100 $90 $80 $70 $60 $50 $40 $30 $20 Henry Hub vs AECO $6.50 Henry Hub AECO $15+ $5.50 $4.50 $3.50 $2.50 $1.50 $0.50 Natural Gas Liquids Funds Flow by Sector for US Equity ETFs for the Week Ending July 22, 2016 $140 Alberta Condensate Texas Condensate Fin ancial -$337 $120 Alberta Propane Texas Propane Ene rgy $238 $100 $80 Ma teria ls Techno log y Them atic $47 $30 $211 $60 Communications Sector -$54 $40 Real Estate Consumer Discretionary -$182 $20 Consumer Staples $99 $0 Utilities Ind ustrials -$248 $112 -$20 Health Care $392 3 Source: Bloomberg and CIBC World Markets Inc US$ (Millions)

4 Jan-13 Mar-13 May-13 Jul-13 Sep-13 Nov-13 Jan-14 Mar-14 May-14 Jul-14 Sep-14 Nov-14 Jan-15 Mar-15 May-15 Jul-15 Sep-15 Nov-15 Jan-16 Mar-16 May-16 Jul-16 Jan-13 Mar-13 May-13 Jul-13 Sep-13 Nov-13 Jan-14 Mar-14 May-14 Jul-14 Sep-14 Nov-14 Jan-15 Mar-15 May-15 Jul-15 Sep-15 Nov-15 Jan-16 Mar-16 May-16 Jul-16 Jan-13 Mar-13 May-13 Jul-13 Sep-13 Nov-13 Jan-14 Mar-14 May-14 Jul-14 Sep-14 Nov-14 Jan-15 Mar-15 May-15 Jul-15 Sep-15 Nov-15 Jan-16 Mar-16 May-16 Jul-16 Jan-13 Mar-13 May-13 Jul-13 Sep-13 Nov-13 Jan-14 Mar-14 May-14 Jul-14 Sep-14 Nov-14 Jan-15 Mar-15 May-15 Jul-15 Sep-15 Nov-15 Jan-16 Mar-16 May-16 Jul-16 4 Exhibit 3. CIBC Energy Indices TSX E&P vs. Non-Dividend Junior E&Ps TR Index TSX E&P TR Non-Dividend Junior E&Ps TR Index TSX E&P vs. Dividend-Paying E&Ps TR Index 1.90 TSX E&P TR Dividend-Paying E&Ps TR Index TSX E&P vs. CIBC Large Cap. E&Ps TSX E&P vs. CIBC Integrated E&Ps TSX E&P TR CIBC Large Cap. E&Ps TR Index TSX E&P TR CIBC Integrated E&Ps TR Index Source: Bloomberg Source: Bloomberg and CIBC World Markets Inc.

5 Jan-13 Mar-13 May-13 Jul-13 Sep-13 Nov-13 Jan-14 Mar-14 May-14 Jul-14 Sep-14 Nov-14 Jan-15 Mar-15 May-15 Jul-15 Sep-15 Nov-15 Jan-16 Mar-16 May-16 Jul-16 Jan-13 Mar-13 May-13 Jul-13 Sep-13 Nov-13 Jan-14 Mar-14 May-14 Jul-14 Sep-14 Nov-14 Jan-15 Mar-15 May-15 Jul-15 Sep-15 Nov-15 Jan-16 Mar-16 May-16 Jul-16 Jan-13 Mar-13 May-13 Jul-13 Sep-13 Nov-13 Jan-14 Mar-14 May-14 Jul-14 Sep-14 Nov-14 Jan-15 Mar-15 May-15 Jul-15 Sep-15 Nov-15 Jan-16 Mar-16 May-16 Jul-16 Jan-13 Mar-13 May-13 Jul-13 Sep-13 Nov-13 Jan-14 Mar-14 May-14 Jul-14 Sep-14 Nov-14 Jan-15 Mar-15 May-15 Jul-15 Sep-15 Nov-15 Jan-16 Mar-16 May-16 Jul-16 Exhibit 4. CIBC Energy Indices TSX E&P vs. CIBC Royalty Corps TSX E&P TR CIBC Royalty Corps TR Index TSX E&P vs. International E&Ps TSX E&P TR CIBC International E&Ps TR Index TSX O&G-Equipment & Services, -Drillers vs. CIBC Oilfield Services STENRE Index vs. OSX Index vs. Oilfield Services Cos TSX Oilfield Services & Equipment TR TSX Drillers TR CIBC Oilfield Services Coverage STENRE Index OSX Index CIBC Oilfield Services Coverage Source: Bloomberg and CIBC World Markets Inc. 5

6 6 Exhibit 5. Calendar North American Oil & Gas Economic Calendar July 2016 Sunday Monday Tuesday Wednesday Thursday Friday Saturday Legend CO Canada Day Ticker Ticker Ticker Earnings Release Before Market Open After Market Close TBD Futures Contract Expiries Land Sale: Independence Day AB CIBC 7th Annual "Unlock The Rock" Stampede Energy Conference CIBC 7th Annual "Unlock The Rock" Stampede Energy Conference Land Sale: BC Q2 Earnings: M TL Q2 Earnings: ECA PD Q2 Earnings: HSE Land Sale: WCS CL AB Q2 Earnings: Q2 Earnings: PSK IM O Q2 Earnings: BNP WRG Q2 Earnings: SU SES Q2 Earnings: BTE CFW M EG ARX CVE NG CO CL CO NG WCS WTI 1-Month Brent 1-Month HH 1-Month WCS 1-Month Canadian Crown Land Sales AB, BC, MB, SK Holiday/Market Closed Canadian Holiday US Holiday August Su M Tu W Th F Sa September Su M Tu W Th F Sa Civic Holiday Note: All times in Mountain Time (MT). Excludes equities not under CIBC s Oil & Gas coverage universe. Source: Bloomberg and CIBC World Markets Inc.

7 Rating Exhibit 6. Target Prices and Investment Recommendations Integrated, Large Cap, Dividend-Paying and Junior E&P s Company Ticker Price Analyst Price Target 1 Target/ Price Returns % 52-Week Short Short Div. Yield Total D/D W/W M/M 3-Mo YTD 1-Year 1-Year Chart High Low Mkt. Cap. ($MM) Net Debt ($MM) EV ($MM) Interest (MM) Interest Ratio % of Float M/M Y/Y Integrated Cenovus Energy CVE $18.62 Grayfer $23.00 SP 23.5% 1.1% 24.6% 0.6% 1.6% 4.0% -3.0% 7.0% 8.0% $22.35 $12.74 $15,516 $2,285 $17, % -7.3% 7.3% Husky Energy HSE $15.89 Grayfer $19.00 SP 19.6% % 3.0% 4.1% 5.4% -12.0% 11.0% -27.1% $24.41 $11.34 $15,977 $4,524 $20, % -7.1% -61.5% Imperial Oil IMO $41.82 Grayfer $52.00 SO 24.3% 1.4% 25.8% 0.7% 0.7% 5.8% 3.4% -6.6% -7.9% $49.40 $37.25 $35,447 $8,871 $44, % -15.5% -20.1% Suncor Energy SU $36.00 Grayfer $45.00 SO 25.0% 3.2% 28.2% 0.1% -0.2% 3.3% 0.0% 2.5% 10.6% $40.35 $27.32 $59,912 $15,045 $74, % -27.7% 13.4% Average 23.1% 1.9% 24.5% 1.1% 1.5% 4.6% -2.9% 3.5% -4.1% % -14.4% -15.2% Large Cap Canadian Natural Resources CNQ $41.57 Grayfer $47.00 SO 13.1% 2.2% 15.3% 0.9% 0.5% 7.0% 9.6% 41.1% 40.7% $41.85 $21.27 $45,547 $17,447 $62, % 5.2% 38.1% Crescent Point Energy CPG $20.19 Grayfer $26.00 SP 28.8% 1.8% 30.6% 0.6% 0.7% 1.8% -7.0% 27.7% 5.0% $24.01 $11.31 $10,212 $3,970 $14, % 20.5% -16.4% Encana ECA (US) $8.24 Grayfer $8.00 SU -2.9% 0.7% -2.2% -0.6% 3.0% 5.5% 10.5% 62.6% -1.3% $9.23 $3.00 $7,003 $4,290 $11, % -21.2% 42.6% MEG Energy MEG $6.27 Grayfer $9.50 SP 51.5% % -4.0% -4.4% -4.9% -14.2% -21.8% -57.9% $15.34 $3.46 $2,635 $4,896 $7, % 3.1% 52.3% Tourmaline Oil TOU $34.14 Grayfer $40.00 SO 17.2% % 0.8% 0.3% 6.5% 15.5% 52.8% 2.6% $35.73 $20.83 $7,561 $1,802 $9, % -19.2% -18.0% Average 21.5% 1.6% 22.5% -0.4% 0.0% 3.2% 2.9% 32.5% -2.2% % -2.3% 19.7% Junior/Intermediate Arc Resources ARX $23.47 Gill $24.50 SO 4% 2.6% 7% 2.0% 2.9% 13.8% 12.7% 43.2% 25.5% $23.48 $14.43 $8,291 $841 $9, % 26% 20.0% Advantage Oil & Gas AAV $8.63 Popowich $9.50 SO 10% -- 10% 2.5% 5.9% 24.0% 23.5% 22.8% 19.2% $8.66 $5.85 $1,592 $191 $1, % 55% 16.7% Bonavista BNP $3.90 Gill $4.00 SP 3% 1.0% 4% 4.8% 6.8% 20.7% 31.3% 118.4% -20.6% $5.65 $0.94 $969 $1,103 $2, % -70% -47.7% Baytex Energy BTE $6.87 Popowich $9.50 SP 38% -- 38% -2.4% -4.1% -2.6% 4.1% 53.3% -49.9% $14.17 $1.57 $1,447 $1,902 $3, % -35% -23.7% Bellatrix Exploration BXE $1.20 Gill R R R -- R 0.0% -13.0% -13.7% -18.9% -27.7% -55.2% $2.99 $1.11 R R R % -41% -88.1% Birchcliff Energy BIR $8.64 Gill $10.00 SO 16% -- 16% -1.4% -3.6% 37.8% 79.3% 113.9% 39.4% $9.28 $2.85 $2,271 $609 $2, % 260% nm Bonterra Energy BNE $25.03 Popowich $25.00 SU 0% 4.8% 5% -0.6% -3.2% -1.3% -4.8% 50.6% 8.0% $29.63 $11.71 $830 $358 $1, % 1% 15.6% Cardinal Energy CJ $9.45 Gill $12.00 SO 27% 4.4% 31% 0.5% -0.2% -3.8% -0.4% 10.6% -17.0% $12.67 $5.59 $696 $81 $ % -12% 120.4% Crew Energy CR $5.90 Popowich $6.00 SO 2% -- 2% 3.1% -1.7% 4.6% 21.4% 45.7% 12.0% $6.37 $2.65 $832 $248 $1, % 2% -10.3% Enerplus Corp. ERF $8.39 Gill $10.50 SO 25% 1.4% 27% -0.6% 0.5% 6.1% 21.8% 80.4% -2.2% $9.48 $2.68 $1,981 $785 $2, % 0% 38.0% Freehold Royalties FRU $11.71 Grayfer $13.50 SP 15.3% 4.1% 19.4% -0.1% -1.1% 1.7% -5.9% 10.8% -7.1% $13.99 $8.29 $1,163 $149 $1, % -4% nm Granite Oil GXO $7.84 Gill $8.50 SO 8% 5.4% 14% 2.9% 4.0% 4.7% 18.5% -0.1% 65.9% $9.39 $4.06 $256 $26 $ % -67% -95.1% Northern Blizzard Resources NBZ $4.58 Gill $5.26 SP 15% 10.5% 25% -2.8% -3.4% -1.5% 9.5% 22.6% -17.9% $6.42 $2.76 $561 $347 $ % -3% 161.8% Journey Energy JOY $1.73 Gill $2.00 SP 16% -- 16% -3.4% -8.9% 1.8% -13.9% 24.5% -40.9% $3.08 $0.91 $75 $104 $180 na na na na na Kelt Exploration KEL $4.71 Popowich $5.50 SP 17% -- 17% 2.6% -2.9% 4.0% 4.9% 11.1% -37.7% $7.78 $2.51 $820 $197 $1, % 1% nm NuVista Energy NVA $6.58 Gill $7.00 SO 6% -- 6% -0.3% -4.4% 9.7% 16.0% 61.7% 16.0% $7.18 $2.72 $1,030 $187 $1, % -3% -41.3% Painted Pony Petroleum PPY $8.84 Popowich $8.00 SP -10% % -1.1% 11.5% 19.1% 75.7% 154.0% 25.9% $9.11 $2.72 $884 $165 $1, % 3% 48.9% Paramount Resources POU $12.17 Gill $13.00 SP 7% -- 7% 0.1% -2.6% 22.2% 38.3% 98.9% -43.6% $22.50 $2.86 $1,293 $1,351 $2, % 4% -11.0% Pengrowth Energy PGF $2.01 Gill $1.85 SU -8% -- -8% -1.0% -10.3% -13.4% 6.9% 97.1% -10.3% $2.70 $0.66 $1,100 $1,700 $2, % 2% 184.2% Peyto Exploration PEY $38.11 Popowich $37.50 SP -2% 3.5% 2% 1.5% 4.4% 14.1% 17.8% 56.6% 36.8% $38.18 $21.55 $6,274 $1,188 $7, % -4% 245.1% Pine Cliff Energy PNE $0.92 Popowich $1.00 SP 9% -- 9% -2.1% 4.5% 17.9% 26.0% -1.1% -18.6% $1.36 $0.61 $281 $124 $ % nm -15.6% PrairieSky Royalty PSK $25.76 Grayfer $30.00 SO 16.5% 2.8% 19.3% 1.1% 3.2% 8.0% 2.1% 20.0% -3.4% $29.66 $17.15 $5,878 -$201 $5, % 7.2% nm Raging River Exploration RRX $10.64 Gill $12.00 SO 13% -- 13% 0.8% -0.1% 5.3% 3.5% 27.1% 44.6% $11.66 $6.50 $2,446 $35 $2, % 3% 226.8% RMP Energy RMP $1.16 Gill $1.65 SP 42% -- 42% 1.8% 1.8% -5.7% -37.3% -24.2% -34.1% $2.14 $0.99 $175 $98 $ % -23% 29.7% Seven Generations Energy VII $27.62 Gill R R R -- R 0.1% 1.4% 12.3% 22.2% 104.9% 88.3% $27.80 $11.25 R R R % 0% 226.8% Spartan Energy SPE $3.44 Popowich $4.00 SO 16% -- 16% -1.4% 0.0% 11.3% 6.5% 45.8% 33.3% $3.56 $1.80 $1,096 $107 $1, % 4% 0.9% Storm Resources SRX $4.15 Popowich $4.00 SP -4% -- -4% -1.2% 1.2% 6.4% -0.5% 15.6% -3.5% $4.66 $2.86 $497 $75 $ % -10% -29.0% Surge Energy SGY $2.42 Popowich $2.50 SU 3% 3.1% 6% 2.5% 0.0% 1.9% 3.3% 17.7% 2.2% $3.72 $1.40 $535 $138 $ % -20% -62.0% Tamarack Valley TVE $3.61 Popowich $4.50 SO 25% -- 25% -1.9% 1.7% 0.6% -9.5% 20.7% 29.4% $4.28 $1.83 $485 $60 $ % 33% 0.5% TORC Oil & Gas TOG $7.79 Gill $8.50 SO 9% 3.1% 12% 0.6% -3.3% -2.0% -11.3% 54.6% 13.7% $9.23 $3.71 $1,282 $292 $1, % -13% 56.9% Trilogy Energy TET $6.04 Gill $5.25 SP -13% % -0.2% -1.3% 10.6% 23.3% 65.0% 40.1% $7.26 $1.99 $761 $566 $1, % -7% -69.9% Vermilion Energy VET $43.12 Popowich $50.00 SO 16% 6.0% 22% 1.3% 2.4% 6.6% 5.8% 19.2% 2.7% $49.94 $29.71 $5,020 $1,402 $6, % -6% 152.6% Whitecap WCP $9.81 Popowich $13.00 SO 33% 2.9% 35% -0.5% -1.4% 0.7% -2.1% 10.8% -4.4% $13.83 $5.60 $3,585 $896 $4, % -73% 47.7% Average 11% 4.0% 13% 0.2% -0.4% 6.7% 11.2% 43.2% 4.1% % 0% 39% Royalty Group Average 4 16% 3.4% 19% 0.5% 1.1% 4.9% -1.9% 15.4% -5.2% % 1.5% nm Notes: 1) Price targets are 12 to 18 months; 2) All Encana figures are in $USD unless stated otherwise; 3) nm = not meaningful, na = not available, R = restricted; 4) Only includes Freehold Royalties and PrairieSky Royalty. 7 Source: Company reports and CIBC World Markets Inc.

8 Rating 8 Exhibit 7. Target Prices and Investment Recommendations International E&P s and Oilfield Services Co s Company Ticker Price Analyst Price Target 1 Target/ Price Returns % 52-Week 52-Week Short Short Div. Yield Total D/D W/W M/M 3-Mo YTD 1-Year 1-Year Chart High Low Mkt. Cap. ($MM) Net Debt ($MM) EV ($MM) Interest (MM) Interest Ratio % of Float M/M Y/Y International Canacol Energy CNE $4.18 Popowich $5.00 SO 20% -- 20% -0.5% -2.8% -3.0% 10.0% 50.9% 52.6% $4.64 $1.96 $666 $219 $ % -1% -37.7% Gran Tierra Energy GTE $3.71 Popowich $4.75 SP 28% -- 28% -2.1% -4.4% -11.7% -1.6% 23.3% 30.6% $4.44 $2.48 $1,099 -$81 $1, % 10% 217.5% Parex Resources PXT $12.97 Popowich $15.00 SO 16% -- 16% -1.5% 0.0% 2.5% 7.0% 27.7% 44.0% $14.52 $7.16 $1,965 -$80 $1, % 1% nm Average 21% -- 21% -1.4% -2.4% -4.1% 5.1% 33.9% 42.4% % 3% 90% Oilfield Services Black Diamond Group BDI $4.84 Morrison $6.00 SP 24% 6.2% 30% -0.2% -4.3% -8.7% 14.0% -30.4% -65.4% $15.50 $3.74 $221 $119 $ % 120% 167.7% Calfrac Well Services CFW $3.22 Morrison $4.50 SP 40% -- 40% -0.9% -13.4% -4.5% 70.4% 40.6% -50.2% $6.93 $1.06 $372 $817 $1, % 29% 11.0% Canyon Services Group FRC $5.16 Morrison $7.50 SO 45% -- 45% 2.0% -3.6% -5.1% 5.5% 27.9% -1.3% $5.98 $2.85 $438 $43 $ % -3% -12.5% Enerflex EFX $11.05 Morrison $15.00 SO 36% 3.1% 39% -1.3% 3.7% 5.7% -8.9% -15.5% -6.7% $14.62 $8.59 $875 $305 $1, % -1% 55.0% Ensign Energy Services ESI $7.49 Morrison $8.75 SP 17% 6.4% 23% 1.8% 1.8% 6.1% 4.3% 5.2% -21.8% $10.90 $4.72 $1,141 $572 $1, % -3% -75.0% Mullen Group MTL $15.84 Morrison $18.50 SP 17% 2.3% 19% 0.3% 9.8% 12.3% 13.0% 16.1% -12.9% $19.65 $13.02 $1,642 $399 $2, % -11% -44.2% Pason Systems PSI $17.82 Morrison $15.00 SU -16% 3.8% -12% 0.4% 1.8% 2.0% 0.0% -6.3% -3.6% $21.41 $14.46 $1,499 -$140 $1, % 3% 272.2% Precision Drilling PD $5.95 Morrison $9.00 SO 51% -- 51% 1.4% -6.7% -10.1% -0.8% 8.8% -8.6% $7.71 $3.42 $1,742 $1,653 $3, % -9% 144.9% Savanna Energy Services SVY $1.48 Morrison $2.25 SO 52% -- 52% 2.1% 0.0% -8.6% -10.3% 20.3% 24.4% $1.98 $0.97 $134 $272 $ % -23% -74.8% Secure Energy Services SES $8.78 Morrison $11.00 SO 25% 2.7% 28% -0.3% -1.2% 1.2% -6.7% 6.6% -18.6% $11.49 $5.33 $1,393 $176 $1, % 1% 153.9% Total Energy Services TOT $12.95 Morrison $16.00 SP 24% 1.9% 25% 0.0% -1.5% -5.8% 4.6% -3.6% -4.6% $17.46 $11.07 $401 $18 $ % 3% -11.4% Trican Well Service TCW $2.15 Morrison $2.75 SP 28% -- 28% -2.7% -4.9% -3.6% 25.7% 235.9% -27.6% $3.14 $0.34 $413 $165 $ % -74% -72.0% Trinidad Drilling TDG $2.56 Morrison $3.50 SO 37% -- 37% 0.0% -1.2% -0.8% 13.3% 20.8% -23.4% $3.53 $1.41 $569 $568 $1, % -1% -65.5% Western Energy Services WRG $3.31 Morrison $5.50 SO 66% -- 66% 4.7% -2.1% 0.6% 17.8% -14.7% -40.1% $5.95 $2.05 $244 $228 $ % 2% 179.3% Average 32% 3.8% 34% 0.5% -1.6% -1.4% 10.1% 22.3% -18.6% % 2% 45% Notes: 1) Price targets are 12 to 18 months. 2) nm = not meaningful, na = not available, R = restricted. Commodity Price Assumptions (Strip Pricing) 2014A 2015A 2016E 2017E 2018E BRENT (US$/bbl) $98.84 $52.33 $43.03 $49.65 $53.35 WTI (US$/bbl) $93.03 $48.71 $42.06 $48.82 $51.88 Ed. Par (C$/bbl) $94.62 $57.29 $50.52 $59.47 $60.02 WCS Heavy (C$/bbl) $82.32 $45.21 $37.18 $44.45 $49.04 NYMEX (US$/mcf) $4.35 $2.61 $2.46 $3.12 $3.00 Natural Gas (C$/mcf) $4.47 $2.70 $2.12 $2.98 $2.95 F/X (US$/C$) $0.91 $0.78 $0.76 $0.76 $0.76 Source: Company reports and CIBC World Markets Inc.

9 Exhibit 8. Comparables (Strip Pricing) Integrated, Large Cap, Dividend-Paying and Junior E&P s P/CF P/E D/CF EV/DACF EV/Boe/d EV/P+P NAV % Company Ticker Price E 2017E E 2017E E 2017E E 2017E E 2017E Reserves P/Core P/Risked P/Unrisked Integrated Cenovus Energy CVE $ x 14.1x 10.6x nm nm nm 1.4x 2.2x 2.0x 9.6x 14.4x 10.7x $62,962 $66,062 $61,482 $ % 139% 90% Husky Energy HSE $ x 7.5x 5.0x nm nm nm 2.0x 2.2x 1.5x 6.2x 8.5x 6.1x $64,492 $64,146 $62,601 $ % 135% 98% Imperial Oil IMO $ x 18.1x 12.2x nm nm nm 2.9x 3.0x 2.0x 15.3x 20.5x 13.9x $119,457 $107,902 $95,666 $ % 142% 109% Suncor Energy SU $ x 12.6x 8.3x nm nm nm 1.7x 3.2x 2.1x 7.3x 17.0x 9.8x $109,568 $119,737 $100,338 $ % 141% 103% Average 8.5x 13.1x 9.0x nm nm nm 2.0x 2.7x 1.9x 9.6x 15.1x 10.1x $89,120 $89,462 $80,022 $ % 139% 100% Large Cap Canadian Natural Resources CNQ $ x 11.5x 7.7x nm nm nm 3.0x 4.7x 3.0x 9.1x 13.8x 10.0x $73,044 $75,864 $73,606 $ % 220% 143% Crescent Point Energy CPG $ x 6.9x 6.9x nm nm nm 2.2x 2.7x 2.4x 7.8x 8.5x 8.4x $85,211 $85,051 $83,546 $9.67 na 129% 97% Encana ECA (US) $ x 10.4x 5.0x nm nm 21.1x 3.6x 6.7x 3.4x 5.9x 11.6x 6.6x $29,236 $32,517 $33,712 $15.43 na 94% 34% MEG Energy MEG $ x nm 5.3x 28.3x nm 21.1x nm nm 19.6x 21.7x 25.7x 12.5x $76,497 $77,149 $80,260 $2.52 nm 73% 27% Tourmaline Oil TOU $ x 10.5x 7.5x nm nm nm 1.8x 1.8x 1.3x 10.2x 12.0x 8.6x $57,319 $47,661 $44,940 $ % 94% 62% Average 11.0x 9.8x 6.5x 28.3x nm 21.1x 2.7x 4.0x 5.9x 10.9x 14.3x 9.2x $64,261 $63,649 $63,212 $ % 122% 73% Junior/Intermediate Arc Resources ARX $ x 12.3x 11.3x x 1.2x 1.0x 11.1x 12.7x 11.6x $83,116 $79,720 $78,267 $ % 159% 81% Advantage Oil & Gas AAV $ x 9.6x 7.5x x 0.9x 0.7x 13.4x 10.2x 8.0x $81,642 $56,934 $48,686 $ % 137% 80% Bonavista BNP $ x 3.7x 3.6x x 4.2x 3.7x 4.9x 6.8x 6.3x $27,351 $30,515 $29,720 $ % 174% 125% Baytex Energy BTE $ x 5.7x 5.3x x 7.5x 7.4x 5.4x 9.3x 9.1x $46,280 $55,720 $59,295 $9.65 nm 230% 83% Bellatrix Exploration BXE $1.20 R R R R R R R R R R R R R R R R Birchcliff Energy BIR $ x 9.7x 5.7x x 3.2x 1.3x 10.7x 13.8x 6.8x $55,628 $64,085 $41,144 $ % 95% 0% Bonterra Energy BNE $ x 10.3x 7.9x x 4.5x 3.4x 9.2x 12.3x 9.9x $94,737 $93,196 $92,315 $ % 192% 74% Cardinal Energy CJ $ x 11.2x 10.0x x 1.2x 1.5x 7.8x 11.8x 10.7x $78,367 $65,532 $68,722 $ % 117% 97% Crew Energy CR $ x 12.1x 8.8x x 3.6x 2.7x 10.9x 12.6x 9.7x $58,685 $45,800 $42,646 $ % 144% 79% Enerplus Corp. ERF $ x 7.2x 5.1x x 2.8x 1.7x 5.7x 8.8x 6.2x $33,904 $35,042 $34,492 $ % 337% 162% Freehold Royalties FRU $ x 14.5x 12.6x x 0.8x 0.2x 14.6x 15.1x 12.6x $110,279 $116,177 $127,527 na nm nm nm Granite Oil GXO $ x 9.0x 8.1x x 0.9x 0.8x 3.6x 9.7x 8.7x $45,438 $100,394 $91,551 $ % 124% 59% Northern Blizzard Resources NBZ $ x 4.4x 5.8x x 2.7x 3.5x 4.6x 5.8x 7.5x $47,302 $52,249 $50,946 $ % 208% 130% Journey Energy JOY $ x 4.2x 2.5x x 5.4x 2.9x 3.4x 7.9x 4.8x $18,795 $20,788 $20,586 $ % 152% 130% Kelt Exploration KEL $ x 16.8x 9.1x x 4.1x 2.8x 16.0x 17.8x 10.8x $61,355 $54,854 $56,017 $ % 121% 44% NuVista Energy NVA $ x 9.5x 9.3x x 2.1x 3.3x 9.3x 10.7x 11.3x $57,733 $54,961 $52,478 $ % 143% 94% Painted Pony Petroleum PPY $ x 15.9x 7.2x x 3.6x 3.1x 28.4x 17.8x 9.4x $56,212 $43,932 $26,509 $ % 215% 118% Paramount Resources POU $ x 22.2x 70.3x x 5.2x 18.8x 15.9x 12.4x 48.0x $75,512 $50,941 $149,465 $ % 51% 38% Pengrowth Energy PGF $ x 3.1x 8.1x x 4.4x 10.7x 5.4x 5.9x 11.4x $41,215 $45,476 $48,319 $ % 148% 59% Peyto Exploration PEY $ x 12.1x 9.2x x 2.6x 2.2x 11.9x 13.7x 10.7x $82,514 $78,049 $66,138 $ % 323% 206% Pine Cliff Energy PNE $ x 16.3x 5.4x x 6.4x 1.5x 15.2x 17.3x 6.4x $34,770 $18,331 $16,617 $ % 247% 194% PrairieSky Royalty PSK $ x 31.3x 27.3x nm nm nm 31.2x 30.5x 26.4x $220,640 $253,162 $253,317 na nm nm nm Raging River Exploration RRX $ x 14.0x 9.9x x 0.6x 0.5x 14.1x 14.8x 10.3x $197,847 $160,838 $136,560 $ % 163% 104% RMP Energy RMP $ x 3.7x 2.7x x 2.1x 1.4x 2.8x 5.5x 3.8x $27,341 $37,979 $36,486 $ % 50% 34% Seven Generations Energy VII $27.62 R R R R R R R R R R R R R R R R Spartan Energy SPE $ x 17.0x 10.1x x 1.7x 1.2x 14.4x 16.9x 9.9x $129,344 $124,109 $97,039 $ % 221% 162% Storm Resources SRX $ x 15.8x 7.4x x 2.3x 1.9x 13.5x 16.5x 8.7x $54,198 $41,818 $35,044 $ % 254% 193% Surge Energy SGY $ x 11.2x 8.8x x 3.1x 2.8x 5.8x 12.7x 10.5x $43,416 $53,840 $55,118 $ % 135% 47% Tamarack Valley TVE $ x 8.4x 7.1x x 1.4x 1.2x 7.0x 10.0x 7.8x $64,846 $66,984 $58,191 $ % 140% 88% TORC Oil & Gas TOG $ x 12.7x 8.4x x 3.0x 1.8x 11.4x 14.2x 9.3x $106,979 $94,025 $91,599 $ % 162% 93% Trilogy Energy TET $ x 11.7x 8.7x x 8.5x 6.0x 9.2x 13.5x 10.7x $44,034 $57,299 $56,525 $ % 113% 61% Vermilion Energy VET $ x 10.7x 9.5x x 3.0x 2.3x 10.7x 12.3x 10.9x $126,201 $112,846 $109,572 $ % 377% 288% Whitecap WCP $ x 10.6x 9.0x x 2.8x 2.1x 7.4x 12.5x 10.0x $118,373 $125,107 $104,234 $ % 132% 92% Average 8.7x 11.5x 10.4x 3.1x 3.2x 3.1x 10.8x 12.6x 10.9x $74,969 $73,894 $72,101 $ % 175% 108% Royalty Group Average x 22.9x 20.0x 1.4x 0.8x 0.2x 22.9x 22.8x 19.5x $165,460 $184,669 $190,422 nm nm nm nm 9 Notes: 1) Price targets are 12 to 18 months; 2) All Encana figures are in $USD unless stated otherwise; 3) nm = not meaningful, na = not available, R = restricted; 4) Only includes Freehold Royalties and PrairieSky Royalty Source: Company reports and CIBC World Markets Inc.

10 10 Exhibit 9. Comparables (Strip Pricing) International E&P s and Oilfield Services Co s P/CF P/E D/CF EV/DACF EV/Boe/d EV/P+P NAV % Company Ticker Price E 2017E E 2017E E 2017E E 2017E E 2017E Reserves P/Core P/Risked P/Unrisked International Canacol Energy CNE $ x 9.2x 5.4x x 4.8x 1.6x 7.1x 10.5x 4.5x $68,633 $76,795 $49,704 $ % 107% -- Gran Tierra Energy GTE $ x 10.2x 5.8x nm 2.6x 1.5x 6.5x 11.0x 5.5x $35,945 $61,920 $46,055 $ % 122% -- Parex Resources PXT $ x 17.6x 13.4x nm nm nm 10.5x 12.0x 9.7x $68,046 $65,999 $64,030 $ % 138% -- Average 10.9x 12.3x 8.2x 3.4x 3.7x 1.5x 8.0x 11.2x 6.6x $57,541 $68,238 $53,263 $ % 122% Oilfield Services EV/EBITDA P/TBook Black Diamond Group BDI $ x 4.5x 4.1x 15.1x nm nm 1.7x 2.4x 2.0x 4.0x 6.8x 4.8x x Calfrac Well Services CFW $3.22 nm nm nm nm nm nm nm nm nm 27.0x nm 26.3x x Canyon Services Group FRC $ x nm 13.0x nm nm nm 2.5x nm 2.3x 13.3x nm 14.9x x Enerflex EFX $ x 8.0x 6.3x 10.5x nm 14.7x 2.7x 2.8x 2.1x 5.5x 7.3x 6.8x x Ensign Energy Services ESI $ x 6.1x 5.2x nm nm nm 2.6x 3.1x 2.5x 5.7x 10.0x 7.3x x Mullen Group MTL $ x 12.6x 11.0x 38.6x 30.4x 22.9x 3.2x 3.1x 2.2x 9.6x 11.0x 9.2x x Pason Systems PSI $ x nm 22.8x nm nm nm nm nm nm 13.0x 42.6x 21.0x x Precision Drilling PD $ x 15.3x 8.8x nm nm nm 4.9x 14.5x 7.9x 6.8x 15.2x 10.6x x Savanna Energy Services SVY $ x 3.9x 4.1x nm nm nm 3.3x 8.0x 9.4x 3.7x 6.9x 6.6x x Secure Energy Services SES $ x 15.1x 10.7x nm nm nm 1.9x 1.9x 1.1x 11.7x 17.0x 11.1x x Total Energy Services TOT $ x 22.6x 13.1x 39.0x nm 32.8x 2.7x 1.0x 1.3x 9.2x 29.4x 11.2x x Trican Well Service TCW $2.15 nm nm 13.6x nm nm nm nm nm 9.1x nm nm 22.9x x Trinidad Drilling TDG $ x 14.2x 11.1x nm nm nm 4.5x 14.2x 11.5x 6.6x 7.6x 8.9x x Western Energy Services WRG $ x nm nm nm nm nm 4.0x nm nm 7.3x 48.3x 21.6x x Average 8.8x 11.4x 10.3x 25.8x nm 23.4x 3.1x 5.7x 4.7x 9.5x 18.4x 13.1x 1.4x Notes: 1) Price targets are 12 to 18 months. 2) nm = not meaningful, na = not available, R = restricted. 3) Oilfield Services, Junior E&Ps, Large Caps and Integrated E&Ps D/CF calculated using Net Debt; Dividend-Paying, and International's D/CF calculated using Current Assets minus Current Liabilities Source: Company reports and CIBC World Markets Inc.

11 Exhibit 10. CIBC vs Consensus Integrated, Large Cap, Dividend-Paying and Junior E&P s 2016E CFPS 2016E Production 2017E CFPS 2017E Production Company Ticker CIBC Base Consensus Difference CIBC Strip CIBC Base Consensus Difference CIBC Base Consensus Difference CIBC Strip CIBC Base Consensus Difference Integrated Cenovus Energy CVE $1.58 $ % $ , ,190 0% $2.31 $ % $ , ,681 5% Husky Energy HSE $2.71 $ % $ , ,647 7% $4.06 $ % $ , ,193 6% Imperial Oil IMO $2.44 $2.52-3% $ , ,685-5% $4.21 $4.35-3% $ , ,580 0% Suncor Energy SU $3.45 $ % $ , ,784-1% $5.79 $ % $ , ,435 6% Average 20% 0% 14% 4% Large Cap Canadian Natural Resources CNQ $3.91 $3.61 8% $ , ,853 0% $6.65 $ % $ , ,268-1% Crescent Point Energy CPG $3.13 $3.01 4% $ , ,219 0% $3.69 $ % $ , ,830-1% Encana ECA (US) $0.79 $ % $ , ,311 3% $1.64 $1.69-3% $ , ,262 10% MEG Energy MEG $0.25 na -$ ,150 na $2.62 na $ ,650 na Tourmaline Oil TOU $3.28 $ % $ , ,595-1% $4.80 $4.70 2% $ , ,283-1% Average 0% 0% 6% 2% Junior/Intermediate Arc Resources ARX $2.00 $1.84 9% $ , ,459 0% $2.35 $2.22 6% $ , ,305 0% Advantage Oil & Gas AAV $0.89 $0.84 6% $ ,496 33,114 1% $1.18 $1.12 6% $ ,169 38,868 1% Bonavista BNP $3.42 $ % $ ,500 67,686 0% $3.14 $ % $ ,000 67,419-1% Baytex Energy BTE $1.36 $1.29 6% $ ,448 71,045-1% $1.88 $1.75 7% $ ,817 68,234-1% Bellatrix Exploration BXE R R R R R R R R R R R R R R Birchcliff Energy BIR $0.94 $ % $ ,000 42,635 17% $1.69 $ % $ ,000 49,395 42% Bonterra Energy BNE $2.71 $2.65 2% $ ,769 12,606 1% $3.87 $3.78 2% $ ,862 12,899 0% Cardinal Energy CJ $0.91 $0.84 8% $ ,600 14,608 0% $1.23 $1.23 0% $ ,600 14,949-2% Crew Energy CR $0.52 $ % $ ,920 23,980 0% $0.79 $0.80 0% $ ,805 25,838 0% Enerplus Corp. ERF $1.31 $ % $ ,200 92,190 0% $2.06 $ % $ ,770 88,285 4% Freehold Royalties FRU $0.88 $0.80 9% $ ,759 11,621 1% $1.10 $1.04 6% $ ,096 10,941 1% Granite Oil GXO $0.90 $0.86 5% $0.88 3,030 3,046-1% $1.15 $1.07 8% $0.97 3,325 3,353-1% Northern Blizzard Resources NBZ $1.11 $1.10 2% $ ,000 19,127-1% $1.01 $ % $ ,875 19,130 9% Journey Energy JOY $0.48 $ % $0.41 8,900 8,781 1% $0.80 $ % $0.68 8,500 7,924 7% Kelt Exploration KEL $0.31 $0.29 7% $ ,094 21,498-2% $0.62 $0.60 3% $ ,600 21,783-1% NuVista Energy NVA $0.71 $0.73-2% $ ,000 24,151-1% $0.83 $0.86-3% $ ,860 27,064 3% Painted Pony Petroleum PPY $0.58 $ % $ ,785 22,905-1% $1.35 $1.45-7% $ ,285 46,533-5% Paramount Resources POU $0.51 $ % $ ,065 45,721-28% $0.24 $ % $ ,550 47,973-76% Pengrowth Energy PGF $0.66 $0.62 6% $ ,000 57,878-2% $0.36 $0.35 1% $ ,000 54,183-4% Peyto Exploration PEY $3.18 $3.27-3% $ , ,032-5% $4.27 $4.32-1% $ , ,925-1% Pine Cliff Energy PNE $0.06 $ % $ ,723 22,332 2% $0.19 $ % $ ,981 20,675 11% PrairieSky Royalty PSK $0.85 $0.82 4% $ ,446 21,878 3% $1.04 $1.00 4% $ ,531 21,391 5% Raging River Exploration RRX $0.83 $0.78 7% $ ,825 17,807 0% $1.29 $1.19 9% $ ,070 21,378-1% RMP Energy RMP $0.33 $0.31 9% $0.31 9,100 9,161-1% $0.51 $ % $0.44 9,380 8,950 5% Seven Generations Energy VII R R R R R R R R R R R R R R Spartan Energy SPE $0.24 $0.22 9% $ ,180 10,736 4% $0.44 $ % $ ,602 13,252 10% Storm Resources SRX $0.29 $0.30-5% $ ,186 13,054 1% $0.63 $ % $ ,263 15,946 8% Surge Energy SGY $0.27 $ % $ ,024 13,022 0% $0.42 $ % $ ,131 13,010 1% Tamarack Valley TVE $0.47 $0.43 8% $ ,090 9,713 4% $0.63 $ % $ ,760 10,742 9% TORC Oil & Gas TOG $0.70 $0.66 7% $ ,175 18,181 0% $1.17 $ % $ ,650 18,508 1% Trilogy Energy TET $0.56 $ % $ ,195 22,234-5% $0.84 $0.78 7% $ ,000 21,521-2% Vermilion Energy VET $4.29 $3.93 9% $ ,018 64,037 0% $5.49 $5.05 9% $ ,076 65,816 2% Whitecap WCP $1.04 $1.04-1% $ ,127 45,381-1% $1.36 $1.31 4% $ ,500 53,811-1% Average 15% 0% 11% 1% Royalty Group Average 7% 2% 5% 3% Notes: 1) All Encana figures are in $USD unless stated otherwise. Consensus numbers converted from $CAD to $USD using currency strip pricing; 0.70 USD/CAD for 2015 and 0.70 USD/CAD for ) nm = not meaningful, na = not available, R = restricted. Source: Company reports, Bloomberg and CIBC World Markets Inc.

12 12 Exhibit 11. CIBC vs Consensus International E&P s and Oilfield Services Co s 2016E CFPS 2016E Production 2017E CFPS 2017E Production Company Ticker CIBC Base Consensus Difference CIBC Strip CIBC Base Consensus Difference CIBC Base Consensus Difference CIBC Strip CIBC Base Consensus Difference International Canacol Energy CNE $0.45 $ % $ ,703 16, % $0.80 $ % $ ,735 20, % Gran Tierra Energy GTE $0.37 $ % $ ,294 26, % $0.98 $ % $ ,591 30,880 41% Parex Resources PXT $0.74 $ % $ ,957 29, % $1.41 $ % $ ,052 33,514 82% Average -38% 215% -22% 89% Oilfield Services 2016E Revenue 2016E EBITDA 2017E Revenue 2017E EBITDA Company Ticker CIBC Base Difference CIBC Base Difference CIBC Base Difference CIBC Base Difference Black Diamond Group BDI $184 $184 0% $50 $54-8% $202 $205-2% $68 $65 4% Calfrac Well Services CFW $748 $790-5% -$13 -$13-3% $1,017 $1,113-9% $51 $75-32% Canyon Services Group FRC $224 $246-9% -$8 -$7 10% $358 $396-10% $34 $39-13% Enerflex EFX $1,123 $1,047 7% $164 $159 3% $1,310 $1,213 8% $172 $198-13% Ensign Energy Services ESI $827 $880-6% $170 $179-5% $1,079 $1,046 3% $227 $215 6% Mullen Group MTL $1,020 $1,056-3% $185 $182 1% $1,137 $1,214-6% $214 $226-5% Pason Systems PSI $161 $158 2% $32 $29 10% $232 $231 1% $66 $76-13% Precision Drilling PD $885 $923-4% $221 $239-7% $1,164 $1,199-3% $311 $312 0% Savanna Energy Services SVY $298 $304-2% $58 $55 5% $389 $373 4% $66 $64 3% Secure Energy Services SES $1,072 $923 16% $92 $92 1% $1,348 $1,263 7% $139 $150-7% Total Energy Services TOT $159 $190-16% $14 $18-21% $306 $269 14% $39 $46-14% Trican Well Service TCW $391 $409-4% -$40 -$30 34% $597 $601-1% $31 $45-32% Trinidad Drilling TDG $280 $364-23% $149 $140 6% $365 $449-19% $131 $132-1% Western Energy Services WRG $113 $122-7% $10 $12-23% $197 $202-2% $23 $37-39% Average -4% 0% -1% -11% Notes: 1) nm = not meaningful, na = not available, R = restricted. Source: Company reports, Bloomberg and CIBC World Markets Inc.

13 Exhibit 12. Senior Oil & Gas Producers Operating Metrics CIBC Base Price Case Production Per Share Growth CFPS Growth EPS Growth E 2016E 2017E 2018E E 2017E 2018E E 2017E 2018E Cenovus Energy CVE 6% -2% -4% 11% 3% -4% -55% -24% 46% 39% -46% -159% 43% -89% -1041% Husky Energy HSE 9% 2% -1% 2% 5% 6% -40% -20% 50% 26% -35% -88% -408% -224% 108% Imperial Oil IMO 5% 18% 5% 12% 2% 24% -47% -26% 72% 21% 9% -159% 43% 233% 37% Suncor Energy SU -5% 8% 5% 22% 3% -1% -24% -27% 67% 14% 1% -68% -87% 1249% 31% Integrated Average 4% 7% 1% 12% 3% 6% -41% -24% 59% 25% -18% -119% -102% 292% -216% Canadian Natural Resources CNQ 18% 8% -3% 2% 11% 27% -39% -26% 70% 37% 55% -93% -536% -246% 108% Crescent Point Energy CPG 8% 2% -4% -1% 0% 8% -29% -23% 18% 21% 96% -45% -122% -233% 264% Encana ECA (US) -8% -24% -15% -2% 14% 13% -56% -54% 106% 78% 25% -105% 1218% -140% 256% MEG Energy MEG 99% 20% 1% 1% 2% 215% -94% 15% 939% 52% nm -251% 0% -85% -412% Tourmaline Oil TOU 40% 29% 17% 6% 5% 64% -14% -17% 46% 16% 178% -84% -75% 1000% 44% Large Cap Average 31% 7% -1% 1% 6% 66% -46% -21% 236% 41% 88% -116% 97% 59% 52% Total Average 19% 7% 0% 6% 5% 39% -44% -22% 157% 34% 35% -117% 8% 163% -67% Production (Boe/d) Total Cash Flow/Boe FCF Yield E 2017E 2018E E 2017E 2018E E 2017E 2018E Cenovus Energy CVE 284, , , , ,116 $33.47 $16.52 $13.30 $17.57 $ % 17% 0% 3% 3% Husky Energy HSE 340, , , , ,781 $44.46 $26.35 $21.42 $31.32 $ % 3% 3% 7% 8% Imperial Oil IMO 309, , , , ,564 $46.99 $21.70 $14.85 $22.49 $ % -2% 9% 4% 5% Suncor Energy SU 534, , , , ,028 $46.42 $32.28 $25.06 $35.31 $ % 0% -2% 7% 12% Integrated Average $42.83 $24.21 $18.66 $26.67 $ % 5% 2% 5% 7% Canadian Natural Resources CNQ 790, , , , ,664 $33.24 $18.60 $14.15 $23.76 $ % 3% 1% 7% 12% Crescent Point Energy CPG 140, , , , ,071 $46.86 $32.45 $26.18 $31.11 $ % 1% 5% 9% 10% Encana ECA (US) 478, , , , ,308 $15.53 $9.65 $5.20 $10.96 $ % 15% 9% 0% 14% MEG Energy MEG 67,265 80,964 82,150 82,650 84,500 $31.49 $1.16 $1.84 $19.52 $ % -12% -7% 15% 19% Tourmaline Oil TOU 112, , , , ,800 $22.54 $15.09 $10.70 $14.75 $ % -12% -1% 0% -3% Large Cap Average $29.93 $15.39 $11.61 $20.02 $ % -1% 1% 6% 10% Total Average $35.67 $19.31 $14.74 $22.98 $ % 2% 2% 6% 9% Notes: Source: Company reports and CIBC World Markets Inc. 13

14 14 Exhibit 13. Senior Oil & Gas Producers Operating Metrics 3) nm = not meaningful, na = not available, R = restricted. Copy Area Forward Strip Case Production Per Share Growth CFPS Growth EPS Growth E 2017E 2018E E 2017E 2018E E 2017E 2018E Cenovus Energy CVE 6% -2% -4% 11% 3% -4% -55% -36% 33% 26% -46% -159% 91% -42% -70% Husky Energy HSE 9% 2% -8% 4% 4% 6% -40% -38% 49% 10% -35% -88% -643% -116% 109% Imperial Oil IMO 5% 18% 5% 12% 2% 24% -47% -31% 48% 13% 9% -67% -62% 160% 26% Suncor Energy SU -5% 8% 5% 22% 3% -1% -24% -39% 51% 5% 1% -68% -163% -181% 22% Integrated Average 4% 7% -1% 13% 3% 6% -41% -36% 46% 14% -18% -95% -194% -45% 22% Canadian Natural Resources CNQ 18% 8% -3% 2% 10% 27% -39% -32% 48% 26% 55% -93% -665% -130% 205% Crescent Point Energy CPG 8% 2% -4% -1% 0% 8% -29% -27% -1% 8% 96% -45% -141% 19% -47% Encana ECA (US) -8% -24% -15% -2% 14% 13% -56% -54% 106% 78% 25% -105% 1218% -140% 256% MEG Energy MEG 99% 20% 1% 1% 2% 215% -94% -224% -535% 82% nm -251% 21% -50% -70% Tourmaline Oil TOU 40% 29% 17% 6% 5% 64% -14% -18% 40% 4% 178% -84% -83% 1199% 1% Large Cap Average 31% 7% -1% 1% 6% 66% -46% -71% -68% 39% 88% -116% 70% 180% 69% Total Average 19% 7% -1% 6% 5% 39% -44% -55% -18% 28% 35% -107% -47% 80% 48% Production (Boe/d) Total Cash Flow/Boe FCF Yield E 2017E 2018E E 2017E 2018E E 2017E 2018E Cenovus Energy CVE 284, , , , ,116 $33.47 $16.52 $11.15 $13.43 $ % 17% -1% 0% -2% Husky Energy HSE 340, , , , ,109 $44.46 $26.35 $17.98 $25.71 $ % 3% 18% 1% 1% Imperial Oil IMO 309, , , , ,564 $46.99 $21.70 $14.01 $18.22 $ % -2% 9% 2% 2% Suncor Energy SU 534, , , , ,028 $46.42 $32.28 $20.70 $26.34 $ % 0% -4% 3% 6% Integrated Average $42.83 $24.21 $15.96 $20.93 $ % 5% 5% 2% 2% Canadian Natural Resources CNQ 790, , , , ,664 $33.24 $18.60 $13.11 $19.10 $ % 3% 0% 4% 6% Crescent Point Energy CPG 140, , , , ,071 $46.86 $32.45 $24.68 $24.70 $ % 1% 4% 5% 4% Encana ECA (US) 478, , , , ,308 $15.53 $9.65 $5.20 $10.96 $ % 15% 9% 0% 14% MEG Energy MEG 67,265 80,964 82,150 82,650 84,500 $31.49 $1.16 -$2.09 $8.78 $ % -12% -15% -8% -11% Tourmaline Oil TOU 112, , , , ,800 $22.54 $15.09 $10.57 $13.94 $ % -12% -2% -1% -5% Source: Company reports and CIBC World Markets Inc.

15 15

16 16 Exhibit 14. Senior Oil & Gas Producers Valuation CIBC Base Price Case Net Debt/Capitalization Net Debt/Cash Flow Total Payout Ratio E 2017E 2018E E 2017E 2018E E 2017E 2018E Cenov us Energy CVE 31% 16% 15% 17% 15% 1.3x 1.4x 1.9x 1.3x 0.9x 103% -38% 127% 88% 93% Husky Energy HSE 16% 29% 28% 23% 16% 0.7x 2.0x 2.4x 1.3x 0.7x 111% 122% 86% 72% 75% Imperial Oil IMO 23% 26% 19% 16% 12% 1.3x 2.9x 2.6x 1.2x 0.8x 97% 132% -29% 76% 77% Suncor Energy SU 16% 22% 28% 23% 16% 0.9x 1.7x 3.0x 1.4x 0.8x 93% 122% 139% 77% 71% Integrated Average 22% 23% 23% 20% 15% 1.0x 2.0x 2.5x 1.3x 0.8x 101% 84% 81% 79% 79% Canadian Natural Resources CNQ 33% 38% 39% 32% 17% 1.5x 3.0x 4.1x 1.6x 0.6x 136% 97% 114% 48% 37% Crescent Point Energy CPG 24% 30% 29% 24% 17% 1.3x 2.2x 2.6x 1.6x 0.9x 160% 123% 78% 58% 52% Encana ECA (US) 42% 45% 41% 38% 31% 2.4x 3.6x 6.6x 2.9x 1.6x 175% 38% 14% 74% 60% MEG Energy MEG 44% 57% 58% 55% 48% 4.7x 96.7x nm 7.1x 4.4x 166% 412% -643% 55% 70% Tourmaline Oil TOU 21% 23% 19% 18% 20% 1.2x 1.8x 1.6x 1.1x 1.3x 168% 181% 101% 97% 126% Large Cap Average 33% 38% 37% 33% 27% 2.2x 21.5x 3.7x 2.9x 1.8x 161% 170% -67% 66% 69% Total Average 28% 32% 31% 27% 21% 1.7x 12.8x 3.1x 2.2x 1.3x 135% 132% -2% 72% 73% EV/DACF P/EPS P/RNAV E 2017E 2018E E 2017E 2018E CIBC Base US$40/Bbl, US$2.50/M US$50/Bbl, US$60/Bbl, US$70/Bbl, US$3.00/Mcf US$3.50/Mcf US$4.00/Mcf Cenov us Energy CVE 7.1x 9.6x 13.6x 8.7x 6.6x 23.7x na na na 25.6x 89% nm 184% 107% 76% Husky Energy HSE R R R R R R R R R R R R R R R Imperial Oil IMO 7.9x 14.8x 17.9x 10.1x 8.0x 11.4x na na 17.7x 13.2x 102% 133% 85% 101% 85% Suncor Energy SU 6.7x 7.3x 10.1x 6.6x 5.3x 11.3x na na 19.7x 14.0x 102% nm 158% 109% 85% Integrated Average 7.2x 10.6x 13.9x 8.4x 6.6x 15.5x na na 18.7x 17.6x 98% 133% 142% 106% 82% Canadian Natural Resources CNQ 6.0x 9.1x 13.7x 6.6x 4.8x 11.0x na na 20.6x 11.4x 129% nmf 103% 75% 106% Crescent Point Energy CPG 8.4x 7.7x 9.3x 6.6x 5.3x 11.0x na na 20.6x 11.4x 94% 231% 117% 82% 47% Encana ECA (US) 3.7x 5.3x 9.1x 6.1x 4.1x 6.0x na na na 11.0x 47% 158% 105% 81% 20% MEG Energy MEG 6.5x 22.3x 17.8x 6.8x 4.9x 10.6x 29.7x na 24.9x 17.0x 30% 200% 110% 78% 69% Tourmaline Oil TOU 11.7x 8.3x 12.1x 7.4x 7.3x 14.1x na na 29.2x 26.5x 79% 266% 141% 97% 0% Large Cap Average 7.3x 10.5x 12.4x 6.7x 5.3x 10.5x 29.7x na 23.8x 15.5x 76% 214% 115% 83% 48% Total Average 7.3x 10.5x 13.0x 7.4x 5.8x 12.4x 29.7x na 22.1x 16.3x 84% 198% 126% 91% 61% Notes: 1) Price targets are 12 to 18 months. 2) All Encana figures are in $USD unless stated otherw ise. 3) nm = not meaningful, na = not av ailable, R = restricted. Source: Company reports and CIBC World Markets Inc.

17 Exhibit 15. Senior Oil & Gas Producers Valuation Forward Strip Case Net Debt/Capitalization Net Debt/Cash Flow Total Payout Ratio E 2017E 2018E E 2017E 2018E E 2017E 2018E Cenov us Energy CVE 31% 16% 16% 20% 24% 1.3x 1.4x 2.2x 2.0x 1.9x 103% nm 136% 110% 126% Husky Energy HSE 16% 29% 20% 20% 19% 0.7x 2.0x 2.2x 1.5x 1.3x 111% 122% -29% 94% 95% Imperial Oil IMO 23% 26% 21% 20% 19% 1.3x 2.9x 3.0x 2.0x 1.7x 97% 132% -29% 95% 96% Suncor Energy SU 16% 22% 25% 26% 24% 0.9x 1.7x 3.2x 2.1x 1.8x 93% 122% 172% 103% 79% Integrated Average 22% 23% 21% 22% 22% 1.0x 2.0x 2.7x 1.9x 1.7x 101% 125% 63% 101% 99% Canadian Natural Resources CNQ 33% 38% 41% 41% 38% 1.5x 3.0x 4.7x 3.0x 2.1x 136% 97% 129% 89% 79% Crescent Point Energy CPG 24% 30% 29% 28% 27% 1.3x 2.2x 2.7x 2.4x 2.1x 160% 123% 81% 76% 86% Encana ECA (US) 42% 45% 44% 46% 40% 2.4x 3.6x 6.7x 3.4x 1.6x 175% 38% 16% 104% 63% MEG Energy MEG 44% 57% 59% 62% 63% 4.7x nm nm 19.6x 11.1x 166% 412% -253% 143% 132% Tourmaline Oil TOU 21% 23% 19% 19% 23% 1.2x 1.8x 1.8x 1.3x 1.6x 168% 181% 106% 105% 138% Large Cap Average 33% 38% 38% 39% 38% 2.2x 2.7x 4.0x 5.9x 3.7x 161% 170% 16% 103% 100% Total Average 28% 32% 30% 31% 31% 1.7x 2.3x 3.3x 4.1x 2.8x 135% 153% 37% 102% 99% EV/DACF P/EPS P/RNAV E 2017E 2018E E 2017E 2018E Forw ard US$40/Bbl, Strip US$2.50/M US$50/Bbl, US$60/Bbl, US$70/Bbl, US$3.00/Mcf US$3.50/Mcf US$4.00/Mcf Cenov us Energy CVE 7.1x 9.6x 14.4x 10.7x 9.0x 22.3x nm nm nm nm 82% 139% nm nm 187% Husky Energy HSE 6.3x 6.2x 8.5x 6.1x 5.5x 11.4x nm nm nm nm 96% 128% nm nm 152% Imperial Oil IMO 7.9x 15.3x 20.5x 13.9x 12.3x 11.5x nm nm nm 28.0x 99% 142% nm nm 234% Suncor Energy SU 6.7x 7.3x 17.0x 9.8x 9.1x 11.4x nm nm nm nm 104% 141% nm nm 158% Integrated Average 7.0x 9.6x 15.1x 10.1x 9.0x 14.1x na na na 28.0x 96% nm nm nm nm Canadian Natural Resources CNQ 6.0x 9.1x 13.8x 10.0x 7.9x 12.0x na na na na 220% nmf 187% 108% 77% Crescent Point Energy CPG 8.4x 7.8x 8.5x 8.4x 7.7x 12.0x na na na na 129% nm 152% 97% 72% Encana ECA (US) 3.9x 5.9x 11.6x 6.6x 3.8x 6.1x na na 21.1x 5.9x 94% nm 234% 121% 85% MEG Energy MEG 6.6x 21.7x 25.7x 12.5x 9.4x 10.8x 28.3x na 21.1x 5.9x 73% nm 158% 109% 85% Tourmaline Oil TOU 11.7x 10.2x 12.0x 8.6x 8.6x 14.9x na na na na 94% nm 183% 109% 80% Large Cap Average 7.3x 10.9x 14.3x 9.2x 7.5x 11.2x 28.3x na 21.1x 591% 122% nm 183% 109% 80% Total Average 7.2x 10.3x 14.7x 9.6x 8.1x 12.5x 2832% na 21.1x 13.3x 110% nm nm nm nm Notes: 1) Price targets are 12 to 18 months. 2) All Encana figures are in $USD unless stated otherw ise. 3) nm = not meaningful, na = not av ailable, R = restricted. Source: Company reports and CIBC World Markets Inc. 17

18 18 Exhibit 16. Senior Oil & Gas Producers Per Share Metrics CIBC Base Price Case Forward Strip Case Cash Flow Per Share ($) Earnings Per Share ($) Cash Flow Per Share ($) Earnings Per Share ($) E 2016E 2017E 2018E E 2016E 2017E 2018E E 2016E 2017E 2018E E 2016E 2017E 2018E Cenovus Energy CVE $4.59 $2.07 $1.43 $2.20 $3.01 $0.84 -$0.49 -$0.74 $0.02 $0.73 $4.59 $2.07 $2.07 $2.48 $2.75 $0.84 -$0.49 -$0.10 $0.07 $0.28 CAGR (%) -4% -34% -33% -18% -9% -46% na -178% -68% -14% -4% -34% -24% -15% -10% -5% na -181% -19% -11% Husky Energy HSE $5.62 $3.38 $2.71 $4.06 $5.13 $1.40 $0.16 -$0.50 $0.62 $1.30 $5.62 $3.38 $3.55 $4.21 $4.85 $1.40 $0.16 $0.29 $0.87 $1.18 CAGR (%) 6% -20% -20% -7% -1% -35% -72% -162% -27% -10% 6% -20% -13% -6% -2% -4% -19% -14% -6% -4% Imperial Oil IMO $6.25 $3.32 $2.56 $4.51 $5.53 $3.63 $1.21 $0.58 $2.25 $3.03 $6.25 $3.32 $4.02 $4.71 $4.88 $3.63 $1.21 $2.04 $2.45 $2.46 CAGR (%) 24% -19% -20% -3% 2% 9% -40% -44% -9% -2% 24% -19% -7% -2% -1% 1% -8% -4% -2% -2% Suncor Energy SU $6.18 $4.71 $3.57 $6.28 $7.41 $3.15 na $0.09 $1.75 $2.45 $6.18 $4.71 $4.03 $5.19 $5.39 $3.15 $1.01 $0.55 $0.94 $0.92 CAGR (%) -1% -13% -17% 0% 3% 1% na -83% -18% -6% -1% -13% -14% -5% -3% 0% -10% -13% -9% -8% Integrated Average $5.66 $3.37 $2.57 $4.26 $5.27 $2.25 $0.29 -$0.14 $1.16 $1.88 $5.66 $3.37 $3.42 $4.15 $4.47 $2.25 $0.47 $0.70 $1.08 $1.21 CAGR (%) Average 6% -21% -22% -6% 0% -11% -66% -138% -18% -6% 6% -21% -14% -6% -4% -8% -56% -34% -18% -13% Canadian Natural Resources CNQ $8.74 $5.29 $3.71 $6.98 $8.69 $3.47 $0.24 -$1.29 $1.78 $3.21 $8.74 $5.29 $3.84 $5.78 $6.41 $3.47 $0.24 -$1.15 $0.74 $1.30 CAGR (%) 27% -12% -18% 0% 5% 55% -67% -183% -6% 8% 27% -12% -18% -4% -1% 4% -16% na -7% -3% Encana ECA $3.96 $1.74 $0.78 $1.67 $2.47 $1.35 -$0.07 -$0.60 $0.16 $0.73 $3.96 $1.74 $0.77 $1.26 $1.45 $1.35 -$0.07 -$0.61 -$0.17 -$0.08 CAGR (%) 13% -29% -39% -17% -7% 25% na -182% -38% -8% 13% -29% -40% -23% -16% 2% -181% na -188% na MEG Energy MEG $3.52 $0.22 -$0.11 $2.79 $3.98 $1.10 -$1.67 -$1.86 -$0.10 $0.76 $3.52 $0.22 -$0.11 $2.79 $3.98 $1.10 -$1.67 -$1.77 -$0.92 -$0.43 CAGR (%) 215% -56% -146% 26% 29% % 1593% 583% 105% -365% 215% -56% -146% 26% 29% na 55% 50% 40% 31% Tourmaline Oil TOU $4.58 $3.96 $3.42 $4.87 $5.12 $2.29 $0.37 $0.14 $1.08 $1.19 $4.58 $3.96 $3.20 $4.36 $4.47 $2.29 $0.37 -$0.03 $0.71 $0.73 CAGR (%) 64% 19% 7% 15% 13% 178% -33% -45% 7% 8% 64% 19% 5% 12% 10% 9% -6% na -1% -1% Large Cap Average $5.20 $2.80 $1.95 $4.08 $5.06 $2.05 -$0.28 -$0.90 $0.73 $1.47 $5.20 $2.80 $1.93 $3.55 $4.08 $2.05 -$0.28 -$0.89 $0.09 $0.38 CAGR (%) Average 46% -11% -18% 3% 7% 99% na -196% -8% 7% 46% -11% -19% 0% 3% 99% na -195% -45% -18% Total Average $5.43 $3.09 $2.26 $4.17 $5.17 $2.15 -$0.04 -$0.52 $0.94 $1.68 $5.43 $3.09 $2.67 $3.85 $4.27 $2.15 $0.09 -$0.10 $0.59 $0.80 Notes: CAGR (%) Average 22% -17% -20% -2% 3% 21% na -166% -15% -1% 22% -17% -16% -4% -1% 44% -75% -140% -21% -12% 1) Price targets are 12 to 18 months. 2) All Encana figures are in $USD unless stated otherw ise. 3) nm = not meaningful, na = not av ailable, R = restricted. Source: Company reports and CIBC World Markets Inc.

19 Exhibit 17. Senior Oil & Gas Producers Capital Expenditures, Cash Flow and Free Cash Flow CIBC Base Price Case Net Capital Expenditures ($ millions) Cash Flow ($ millions) Free Cash Flow ($ million) - net of A&D E 2017E 2018E E 2017E 2018E E 2017E 2018E Cenov us Energy CVE $2,791 -$1,172 $1,333 $1,446 $2,165 $3,479 $1,691 $1,181 $1,828 $2,502 $687 -$71 -$152 $382 $336 Husky Energy HSE $4,961 $2,883 $2,281 $2,892 $3,788 $5,526 $3,329 $2,667 $3,996 $5,050 $431 $324 $386 $1,103 $1,262 Imperial Oil IMO $4,736 $3,380 -$1,121 $2,420 $3,104 $5,315 $2,901 $2,176 $3,833 $4,704 -$272 -$621 $464 $1,413 $1,601 Suncor Energy SU $6,858 $6,750 $6,619 $5,770 $6,436 $9,058 $6,806 $5,586 $9,827 $11,606 $2,097 $139 -$365 $4,058 $5,170 Integrated Average $4,837 $2,960 $2,278 $3,132 $3,873 $5,845 $3,682 $2,902 $4,871 $5,965 $736 -$57 $83 $1,739 $2,092 Canadian Natural Resources CNQ $11,581 $4,309 $3,810 $2,627 $2,470 $9,202 $5,495 $4,014 $7,643 $9,523 $521 $2,012 $303 $5,016 $7,053 Crescent Point Energy CPG $3,014 $1,628 $959 $950 $1,000 $2,408 $1,938 $1,555 $1,937 $2,259 -$1,452 $287 $588 $987 $1,259 Encana ECA $4,987 $394 $44 $999 $1,199 $2,966 $1,438 $660 $1,416 $2,095 $440 -$794 -$289 $417 $896 MEG Energy MEG $1,315 $204 $153 $347 $627 $791 $49 -$24 $629 $896 -$523 -$264 -$177 $282 $268 Tourmaline Oil TOU $1,564 $1,536 $790 $1,100 $1,500 $929 $850 $784 $1,129 $1,187 -$167 -$771 -$170 $29 -$313 Large Cap Average $4,492 $1,614 $1,151 $1,204 $1,359 $3,259 $1,954 $1,398 $2,551 $3,192 -$236 $94 $51 $1,346 $1,833 Total Average $4,645 $2,212 $1,652 $2,061 $2,477 $4,408 $2,722 $2,067 $3,582 $4,425 $196 $27 $65 $1,521 $1,948 Forward Strip Case Net Capital Expenditures ($ millions) Cash Flow ($ millions) Free Cash Flow ($ million) - net of A&D E 2017E 2018E E 2017E 2018E E 2017E 2018E Cenov us Energy CVE $2,791 -$1,172 $1,333 $1,446 $2,165 $3,479 $1,691 $1,712 $2,064 $2,289 $687 -$71 $379 $618 $124 Husky Energy HSE $4,961 $2,883 $2,281 $2,892 $3,788 $5,526 $3,329 $3,494 $4,147 $4,775 $431 $324 $1,213 $1,255 $987 Imperial Oil IMO $4,736 $3,380 -$1,121 $2,420 $3,104 $5,315 $2,901 $3,417 $4,002 $4,151 -$272 -$621 $1,706 $1,582 $1,048 Suncor Energy SU $6,858 $6,750 $6,619 $5,770 $6,436 $9,058 $6,806 $6,315 $8,133 $8,441 $2,097 $139 $365 $2,363 $2,005 Integrated Average $4,837 $2,960 $2,278 $3,132 $3,873 $5,845 $3,682 $3,734 $4,587 $4,914 $736 -$57 $915 $1,455 $1,041 Canadian Natural Resources CNQ $11,581 $4,309 $3,810 $2,627 $2,470 $9,202 $5,495 $4,153 $6,327 $7,027 $521 $2,012 $442 $3,701 $4,557 Crescent Point Energy CPG $3,014 $1,628 $959 $950 $1,000 $2,408 $1,938 $1,605 $1,619 $1,610 -$1,452 $287 $638 $669 $610 Encana ECA $4,987 $394 $44 $999 $1,199 $2,966 $1,438 $654 $1,069 $1,233 $440 -$794 -$295 $70 $34 MEG Energy MEG $1,315 $204 $153 $347 $632 $791 $49 $28 $309 $430 -$523 -$264 -$126 -$38 -$202 Tourmaline Oil TOU $1,564 $1,536 $790 $1,100 $1,500 $929 $850 $733 $1,010 $1,037 -$167 -$771 -$222 -$90 -$463 Large Cap Average $4,492 $1,614 $1,151 $1,205 $1,360 $3,259 $1,954 $1,435 $2,067 $2,268 -$236 $94 $88 $862 $907 Total Average $4,645 $2,212 $1,652 $2,061 $2,477 $4,408 $2,722 $2,457 $3,187 $3,444 $196 $27 $456 $1,126 $967 Notes: 1) Price targets are 12 to 18 months. 2) All Encana figures are in $USD unless stated otherw ise. 3) nm = not meaningful, na = not av ailable, R = restricted. 19 Source: Company reports and CIBC World Markets Inc.