ENCANA CORPORATION. Subsurface Innovation. David Hill Executive Vice President Exploration & Business Development

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1 ENCANA CORPORATION Subsurface Innovation David Hill Executive Vice President Exploration & Business Development

2 ENCANA Delivering Quality Corporate Returns North American leader in: Generating free cash flow Ŧ ~$1.5 billion cumulative over plan Cash flow Ŧ growth ~ 25% CAGR Corporate returns ROCE Ŧ climbs to 10-15% Execution efficiency ~$9,000 per flowing BOE Disciplined capital allocation 99% of capital to core assets Multi-basin advantage World class premium inventory in Texas oil and Canadian condensate Strong balance sheet Innovation company Focus on environmental, health, and safety performance TOP TIER RESOURCE OPERATIONAL EXCELLENCE BALANCE SHEET STRENGTH MARKET FUNDAMENTALS CAPITAL ALLOCATION Ŧ Non-GAAP measures defined in advisories. For additional information regarding non-gaap measures see the Company s website. 2

3 WORLD CLASS PORTFOLIO Encana's Resource In Context Core positions in four of North America s premier basins >23,000 total inventory locations YTD premium inventory increased by ~6x 2017 drilling activity ~11,000 premium return locations >35% ATROR Ŧ returns Oil or condensate rich wells only Primary zones only* Industry typical well spacing** Montney 6,900 premium locations Duvernay 500 premium locations Permian 3,450 premium locations Eagle Ford 220 premium locations *Includes only Wolfcamp, Spraberry, Jo Mill, Lower Eagle Ford,Duvernay, Upper & Lower Montney; ** in Permian, 330 in Eagle Ford, 1000 in Duvernay, in Montney; Ŧ Non-GAAP measures defined in advisories. For additional information regarding non-gaap measures, including reconciliations, see the Company s website. 3

4 Sep-15 Nov-15 Jan-16 Mar-16 May-16 Jul-16 Sep-16 Nov-16 Jan-17 Mar-17 May-17 Oil Production Per Rig (bbls/d) SEPARATING FROM THE PACK Continued Gains from Top Tier Acreage Innovation at work at Encana ECA Permian rig productivity is significantly higher than average Continuing to increase productivity while the wider industry has begun to decline Trend across entire multi-basin portfolio Permian Rig Productivity ECA vs. Peers ECA 2016 type curve ECA 2017 updated type curve EIA Industry Estimate 4

5 INNOVATION LEADERSHIP AT ENCANA A Competitive Advantage Subsurface Drilling & Completions Production Operations Commercial Arrangements geo-cellular reservoir modeling to identify the best rocks leveraging massive proprietary analytics dataset (core, logs, seismic, micro-seismic, fracture diagnostics, production) proprietary in-house well design integrated team with on-the-fly modeling capabilities advanced completions fibre-optic real-time pressure/completions design analytics real-time production data capture & analysis automation enables highly efficient growth remote surveillance and control boosts well and facility up-time creating optionality and managing risk disrupting the commercial status quo Culture of Innovation Structured and driven to business outcomes Real time knowledge sharing across portfolio Analytics linked with deep understanding of first principles 5

6 FULLY INTEGRATED ANALYTICAL PLATFORM Thinking in 3 Dimensions Data Centralized, dynamic database Automated geotechnical work-flows Real time data *Licensed seismic data, with permission from Geophysical Pursuit, Inc Customized Environment 3D pad planning and evaluation Volumetric integration Physics-based resource delineation Co-Visualization & Integration Integrated environment Advanced and automated work-flows Analytical scalability 6

7 PREDICTING & IMPROVING WELL PERFORMANCE Advanced Data Analytics Tied to First Principles First Principles Empirical Results 7

8 EVOLUTION TO INDUSTRIAL SCALE DEVELOPMENT Increasing Density, Recovery & Value Through Time Sparse Staggered & Sparse Staggered & Tight Stacked & Tight wells/section wells/section wells/section 2017 Midland Basin RAB Davidson 60 wells/section 8

9 CUBE DEVELOPMENT Differentiated Execution Reservoir benefits Optimizes resource recovery Minimizes inter-wellbore communication Less downtime on existing wells Eliminates parent-child in-fill drilling No poor performing child wells in depleted reservoir Maximizes corporate returns Maximizing value from multi-zone stacked development 9

10 TECHNOLOGY ADAVANCEMENT WHAT S NEXT? Significant Upside Remains Integration of real-time data streams Migration from traditional SCADA platform to broadly accessible visualization and analytical tools Machine learning/predictive analytics Real time drilling and completion parameters Predictive maintenance in operations Nanotechnology in drilling and completions fluids Potential to further improve drill times and completion effectiveness Linking the right people, processes and technology to drive returns 10