Fourth Quarter and Year-end 2014 Conference Call Notes As at February 25, Brian Dutton Director, Investor Relations

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1 Fourth Quarter and Year-end 2014 Conference Call Notes As at February 25, 2015 Brian Dutton Director, Investor Relations Thank you operator and welcome everyone to our fourth quarter and year-end 2014 results conference call. This call is being webcast and the slides are available on our website at encana.com. Before we get started, I must refer you to the advisory regarding forward looking statements contained in the news release and at the end of our webcast slides, as well as the advisory on page 40 of Encana s AIF dated February 20, 2014, the latter of which is available on SEDAR. In particular, I would like to draw your attention to the material factors and assumptions in those advisories. Encana prepares its financial statements in accordance with U.S. GAAP and reports its financial results in U.S. dollars and protocol. Accordingly, any reference to dollars, reserves, resources or production information in this call will be in U.S. dollars and after-royalties, unless otherwise noted. This morning, Doug Suttles, Encana s President & CEO, will provide the highlights of our fourth quarter and fullyear 2014 results, as well as our revised spending plans for Sherri Brillon, our CFO, will then discuss Encana s financial results and revised 2015 guidance in greater detail. Lastly, Mike McAllister, our COO, will provide an update on our current and recent operating activities before we open the call up for Q&As. I will now turn the call over to Doug Suttles. Doug Suttles President & CEO Thanks Brian, and thanks, everyone, for joining us today. I d like to take a few minutes to summarize a year in which we met or exceeded all of the strategic goals we set for 2014 and we positioned the company favorably going into Today, we are clearly better positioned than a year ago to weather the current weak oil & gas price environment. The cornerstone of our strategy is to sustainably grow cash flow per share and maintain a strong balance sheet. As we entered 2014, with our new strategy in place, we quickly resized the organization, reducing our work force by about 25% and captured approximately $150 million of enduring operating, administrative and capital cost savings. February 25, 2015 Page 1

2 Consistent with our focus on higher margin production, we invested approximately 86% of our 2014 capital in seven growth assets, down from around 28 assets in This focus helped generate approximately $400 million of free cash flow in We will intensify this focus in 2015 and direct around 95% of our capital on our growth assets. One of our most important strengths is our focus on operational excellence. In 2014, we delivered a 50% reduction in year-over-year drilling and completion costs in the Duvernay, a 100% improvement in IP30s in the Montney, and since acquiring the Eagle Ford assets in June of 2014, we achieved a 25% improvement in IP30 rates. Mike McAllister will cover this in more detail later. In addition to our ground up focus on operational excellence, we transformed our portfolio, replacing low margin dry gas with higher margin liquids. You can see evidence of this in our 2014 cash flow which is up 14% year over year even with a 7% reduction in total production and substantially similar oil and gas prices compared to Today, with our acreage in the Permian, Eagle Ford, Montney and Duvernay, we believe that we are positioned in the best parts of the best plays in North America. Equally important, our accomplishments in 2014 reflect a cultural transformation and a mindset that will intensify making Encana a more focused, competitive and resilient company. We are particularly proud of our safety record last year delivered our best safety performance ever, which is even more impressive when you consider the amount of change that was happening across the company. Consistent with our strategy, we expect to invest about 80% of our 2015 capital in our most strategic assets; the Permian, Eagle Ford, Montney and Duvernay. These four assets offer high quality resources, with good margins at $50 WTI oil price and $3 NYMEX gas price. They offer robust supply costs, significant running room, with scale to further accelerate operational efficiencies through Encana s resource play hub development model, and good market access When we announced our guidance in December, we based our programs on a $70 WTI oil price and a $4 NYMEX gas price. However, we said if market conditions changed we would make appropriate adjustments. In recognition of current prices, we are acting decisively and prudently by reducing our 2015 capital budget by about $700 million to $2 to $2.2 billion. This is based on our revised planning assumption of $50 WTI oil price and $3 NYMEX natural gas price for full-year Our 2015 spending plans plus anticipated dividends are expected to be fully funded by forecasted cash flow and proceeds from previously announced asset sales, both of which are supported by increased oil hedges. Maintaining an investment grade credit rating is central to our strategy. February 25, 2015 Page 2

3 Before turning the call over to Sherri and Mike, I thought that I would touch upon some of the highlights of our 2015 program. As we continue to focus on growing value over volumes, we expect that company-wide production volumes will decline in 2015 compared to However, given our focused capital allocation on our most strategic assets, we anticipate that total production from our lands in the Permian, Eagle Ford, Montney and Duvernay assets will increase from an average of 183,000 BOE/d in the fourth quarter of 2014, to at least 240,000 BOE/d in the fourth quarter of Even if current low oil & gas prices persist through until the end of the decade, these four assets are still capable of profitably growing production. We expect to see strong company-wide liquids growth in 2015, up approximately 60% year-over-year, with an annual average of between 130,000 and 150,000 barrels per day. About 65% of our 2015 liquids production is expected to be high value oil and field condensate. One of the key drivers of this growth will be production from our newly acquired Permian assets, which we expect to produce at least 45,000 BOE/d on an annualized basis. The drive to continuously improve efficiencies is embedded in our business model and our culture. Given the current environment, we believe that there are new opportunities to capture even more efficiency improvements. With this in mind, we are budgeting a further 15% improvement in capital cost efficiencies in Our focus on base optimization should also generate approximately $75 million of direct operating cost savings. We also see an opportunity to make further improvements in our corporate cost structure. I ll now turn the call over to Sherri Brillon. Sherri Brillon Executive Vice President & Chief Financial Officer Thanks Doug and Good morning everyone. As Doug mentioned, Encana delivered tremendous performance in 2014 while undertaking major portfolio and organizational changes. In the fourth quarter, we achieved oil and NGLs production growth of approximately 60 percent year-over-year and generated roughly two thirds of upstream operating cash flow including hedging from liquids. Our base assets outperformed expectations as our teams focused on minimizing natural declines through various optimization projects. When adjusted for acquisition and divestiture activities, we reduced our base decline rate from 34% to 29%. We achieved total operating, administrative and capital cost savings of approximately $150 million, attributable to workforce reductions and operating efficiencies. These cost savings more than offset the transition and reorganization costs incurred in 2013 and 2014, positioning the company well in the challenging commodity price environment. We generated about $400 million of free cash flow in 2014 and maintained a solid balance sheet by funding about $9 billion in acquisitions, largely with proceeds from divestitures as well as cash on hand. February 25, 2015 Page 3

4 Full-year cash flow of $2.9 billion, or $3.96 per share, was up 14 percent year-over-year. This was a direct result of our strategic initiative to focus capital on our highest margin assets. Although our 2014 cash flow came in below our guidance, this was not due to operational issues or cost performance. In fact, liquids production in the fourth quarter averaged 106,000 bbls/d, at the upper end of our guidance range of 102,000 to 107,000 bbls/d. Instead, it was largely due to one-time items related to the Athlon transaction and early repayment of Athlon senior notes - as noted in our December Guidance conference call - as well as wider than expected pricing differentials, including weaker than expected Deep Panuke pricing, and the settlement of a prior period tax amount in the fourth quarter. While the one-time charge related to the Athlon debt redemption had a negative impact on our fourth quarter cash flow, we expect to save approximately $515 million of future interest expenses associated with these notes. Otherwise our 2014 guidance targets were largely met or exceeded with strong operational results in a transformational year. With our results this morning, we also announced our reserves and resources as of December 31st, Our reserve base continues to align with our strategy. Consistent with our focus on value versus volumes, we grew higher margin oil reserves, while lower margin natural gas reserves were sold or declined. Proved oil reserves were up about 150% year-over-year and proved plus probable oil reserves were up about 360%. Our reserves evaluation also reflects the disciplined allocation of capital to our growth plays. Thus, the majority of the 2014 reserves revisions relate to a reduction in our previously planned capex on the PUDs outside of our growth plays. Although total reserves volumes are down 23% year over year on a proved basis, they are down only 4% on a Proved + Probable basis. The new volumes are more valuable because they are more heavily weighted to higher margin oil. Additionally, the vast majority of the reserves and resources associated with our Permian oil acquisition have been booked in our P2 and 2C numbers, while very little was booked under proved reserves. Reflecting the transition of our asset base to higher margin liquids production, at the end of 2014, crude oil and NGLs increased from 15% to 38% of 2P reserves year-over-year. Similarly, on a 2C basis, our oil and NGLs resources increased from 10% to 21% of our total economic resources. For oil alone, our 2C volumes group grew 143% year-over-year. The only significant negative performance revision from our 2014 reserves evaluation was associated with the earlier than expected water production rates that we experienced at Deep Panuke. Year end proved reserves for the project were about 80 Bcf. For the first six weeks of 2015, Deep Panuke has been producing at a rate of about 180 to 200 MMcf per day, consistent with the seasonal production cycle that we intend to implement on the platform to maximize the cash flow from that asset. February 25, 2015 Page 4

5 Maintaining our balance sheet and an investment grade credit rating are important aspects of our strategy. We are prudently managing our debt levels, as our 2015 capital spending plans and our anticipated dividend payments are to be fully funded by our expected 2015 cash flow and the proceeds we receive from previously announced divestitures. We recently implemented a $2 billion U.S. commercial paper program and have drawn approximately $1.1 billion which we used to fully repay the outstanding balance on our revolving credit facility. We have revolving bank credit facilities of $3.5 billion in Canada and $1 billion in the U.S. committed until 2018, which provide us with significant liquidity. Our hedging program is designed to protect our capital programs from downward commodity price moves and to mitigate the risk of inefficiencies developing during times of high price volatility and uncertainty. As at February 24th, we had about 1 billion cubic feet per day of our expected 2015 natural gas production hedged at an average price of $4.29 per Mcf and about 55 thousand barrels per day of expected oil volumes hedged at $62.18 per barrel. We are actively managing our balance sheet, exercising capital discipline and taking the necessary steps to ensure that we have ample liquidity and financial flexibility to see us through a lower commodity price environment. To prudently respond to the current low commodity price, we have reduced our previously announced 2015 capital program by about $700 million to about $2.1 billion at the midpoint of our guidance range. The midpoint of our revised cash flow guidance range at about $1.5 billion, combined with divestiture proceeds of about $800 million from transactions we have already announced, is expected to fully fund our capital program plus anticipated dividend payments of about $200 million. As you can see in the chart, the vast majority of the change in our 2015 projected cash flow is due to the drop in commodity prices. Our guidance assumes $50/bbl WTI oil prices and NYMEX natural gas prices of $3 per MMBtu. There is also a less significant impact from volumes reductions and lower expected pricing at Deep Panuke. Somewhat offsetting these factors are positive impacts from the change in the assumed exchange rate and expected cost reductions. The decreased capital program has a relatively minor impact on production volumes as gas volumes remain unchanged from our previous guidance and liquids volumes are about 7% lower, based on the midpoint of guidance. Compared to 2014, we are projecting oil and NGL growth of about 60% year-over-year based on the mid-point of our guidance. Although total production is expected to decline by about 14%, our margin is improving. In fact, even if $50 WTI and $3 NYMEX persists into 2016, we expect to see our cash flow grow as the percentage of higher margin production from our four most strategic assets becomes even greater in our portfolio. I ll now turn the call over to Mike McAllister. February 25, 2015 Page 5

6 Mike McAllister Executive Vice-President & COO Thanks Sherri. There s no better indicator of the quality of our operational teams than the fact that they delivered impressive operational performance in 2014 while spending less than They also delivered our safest year in the company s history while our portfolio was undergoing major change. Before I talk about our four most strategic assets, I want to explain what operational excellence means to me and why it s fundamental to Encana s competitiveness. Operational excellence means safely delivering the best wells and the best base performance for the best value. Consistent with our achievements, we aim to be the most efficient and competitive operator in our plays. This means driving maximum value from every dollar invested, identifying and sharing innovative optimization strategies across the company and ensuring that we get the best value from our service providers. Over the last several months, we have been actively and methodically working with our suppliers to reduce costs across the portfolio and in some areas, we are realizing cost reductions of greater than 50%. This operational focus supports one of our strategic goals of building a high performing and cost efficient company that is resilient through the price cycle. We saw the impact of this relentless focus in 2014 through strong liquids growth, reduction in base decline rates and significant cost efficiencies. We achieved this while oil traded at around $100 per barrel. Our achievements in 2014 reflect the cultural transformation of Encana our employees drove these achievements from the ground up it s what they do and how they think. As we enter 2015, we will build off of our momentum, seizing the opportunity offered by a lower commodity price environment to deliver further efficiencies and enhance operational performance. This is what operational excellence means to Encana. The Permian is the perfect example of how we are trying to take advantage of the challenging market conditions which our industry is facing. When we first announced the Athlon acquisition, the market expressed concern on whether or not we would be able to retain staff and get the services required to grow this high quality asset. Clearly, current market conditions are helping us here. We successfully retained the majority of Athlon staff and we ve been able to attract a number of new, highly talented technical professionals to our Permian team. In 2015, the main focus of the Permian team will be improving well performance, reducing costs, consolidating the supply chain and developing midstream and marketing solutions. February 25, 2015 Page 6

7 Consistent with our achievements in the Eagle Ford last year, in 2015 we expect to deliver significant cost reductions in the Permian through the implementation of Encana s best practices in developing resource plays. Specifically, we expect to be delivering increased operational efficiencies, optimized well designs and realizing better value from our suppliers. Total capital for the Permian in 2015 is expected to be about $700 million. We are currently running six horizontal rigs and we expect to average four to six horizontal rigs throughout the year. We expect to drill about 55 net horizontal wells in the Wolfcamp and Spraberry. In addition, we anticipate running 4 to 6 vertical rigs, consistent with our lease obligations production is expected to average at least 45,000 BOE/d. In the Eagle Ford, we have achieved significant operational improvements since we acquired the assets in the second quarter of Our IP30 rates have improved by an average of 25%, largely due to enhanced completion design as we piloted tighter cluster spacing and increased the volumes of sand per stage. We continue to improve drilling cycle times and spud-to-rig release. When we acquired the assets in June of 2014, the average cycle time was about 15 days. By the fourth quarter, we were about 25% faster, at an average pace of 11 days spud to rig release. In addition, as a result of well design optimization, reduced cycle times and lower service costs, we reduced drilling costs by about 10% over the same time frame. We are particularly pleased with the results we saw from our base production optimization efforts during the fourth quarter. In addition to optimization activities such as gas lift, plunger lift and field compression, we successfully executed two well re-fracs in the play, and realized an oil production increase on a per well basis of about 450 bbls/d on IP30. The team is currently assessing the re-frac potential in over 100 existing wells in our Eagle Ford asset. Through 2015, we will continue to focus on improving well performance, reducing well costs and optimizing base production. We are planning to drill about 60 net wells in the Eagle Ford, mainly in the Kenedy area. Production from the Eagle Ford is expected to average over 50,000 BOE/d and total capital is expected to be about $550 million. We plan to be running two to three rigs in the play this year. The Montney delivered impressive annual liquids growth of 87% year-over-year to about 19,000 bbls/d in We continue to successfully implement high intensity completions in the Cutbank Ridge and Peace River Arch parts of the play. In Dawson, the high intensity completions wells produced at an average of 100% above our prior type curve expectations. Our teams are now looking to advance the completions design even further by testing larger fracs. In Gordondale, we tested reduced inter-frac spacing which resulted in initial production being about 73% higher than expected for the first 60 days of production. February 25, 2015 Page 7

8 In Pipestone, we completed eight high-intensity completions in the second half of the year and we expect to bring these wells on production in first quarter of The performance from the base and higher intensity completions exceeded our expectations and coupled with the deferral of major facility construction, we delivered ~$150 million in reduced capital spending in In December of 2014, we signed a unique deal to divest the majority of our infrastructure in Cutbank Ridge. This transaction unlocks value from our existing midstream infrastructure while allowing us to continue operatorship of future facility construction. This transaction enables us to redirect about $500 million of future capital towards higher rate of return drilling projects. We expect to invest about $245 million on a net basis and to run three rigs in the Montney in We expect to drill about 25 net wells and produce an average of about 124,000 BOE/d net to Encana. Our operational performance in the Duvernay through 2014 was impressive. In 2014, we targeted significant well cost reductions in the Duvernay. Our goal was to achieve average well costs of $15 million on a multi-well pad. Our results were impressive. We drilled four multi-well pads and achieved average well costs of less than $13 million. In fact, our best wells came in at $12.4 million, exceeding our target by about 17%. We successfully reduced drilling costs by 38% year-over year through a combination of wellbore design optimization, the application of fit-for-purpose equipment and the implementation of Encana s resource play hub development model. We delivered a pacesetter well on the pad where we drilled an 18,500 foot measured depth well in 24.5 days for a cost of $3.7 million. That s 16.5 days faster and about $4 million cheaper than our 2013 average. We expect to reduce drilling costs in the Duvernay by a further 13% in With respect to completions, a number of factors contributed to the 42% year-over year reduction in costs, such as completions design optimization, lower service costs and lower water costs. Our 2015 development program will continue to focus on the Kaybob/Simonette area, where we expect to average 2-3 rigs through the year and drill about 15 net wells. The Duvernay team is going to execute on about a $230 million net capital program, with most of the capital focused on drilling and completion activity. There is one additional plant phase scheduled to come online in Q and another one in Q1 2016, increasing processing capacity by another 100 MMcf/d. I will now turn the call back to Doug Suttles. Doug Suttles President & CEO Thanks, Mike. Our strategic and operational accomplishments in 2014 were tremendous. We established a track record of delivery and a strong bias to action. Encana is now stronger in every point in the price cycle. February 25, 2015 Page 8

9 That said, I believe we re just getting started. We have the necessary ingredients to deliver sustainable shareholder value and we ll build on our momentum through We will seize the opportunity presented by current market conditions to further evaluate our portfolio ensuring that we are focused on high margin production and our most profitable businesses. Equally, we see opportunity to deliver efficiencies through our supply chain and our administrative costs, as well as all aspects of our operations. We will intensify our capital discipline, investing about 80% of our expected 2015 capital into our four most strategic assets. These assets deliver strong margins in the current price environment, and while we don t feel it s likely, should current low prices continue for some time, these assets can continue to deliver sustainable cash flow growth. We will continue to drive operational excellence and have embedded capital and operating efficiency improvements in our 2015 budget. We do this with the knowledge that based on a $50 WTI oil price and a $3 NYMEX gas price, our 2015 capital program and anticipated dividends are fully funded. In closing, we will continue to proactively and prudently manage the company in In parallel, we will be ready to seize opportunities if they serve the best long term interests of our company. The diligent/rigorous preparation and evaluation that served us well through enabling us to be agile and capture several value enhancing opportunities, - will also serve us well through the current volatile commodity price environment. We have a highly driven culture, and a proven ability to act decisively. Consequently, if anyone can prosper through this part of the commodity cycle, I m convinced it will be Encana. Thank you and myself and my entire team are here and prepared to take your questions. POST Q&A SESSION Brian Dutton Director, Investor Relations Thank you everyone for joining us this morning. Our conference call is now complete. Important Information Encana reports in U.S. dollars unless otherwise noted. Production, sales and reserves estimates are reported on an after-royalties basis, unless otherwise noted. Per share amounts for cash flow and earnings are on a diluted basis. The term liquids is used to represent oil, NGLs and condensate. The term liquids-rich is used to represent natural gas streams with associated liquids volumes. Unless otherwise specified or the context otherwise requires, reference to Encana or to the company includes reference to subsidiaries of and partnership interests held by Encana Corporation and its subsidiaries. February 25, 2015 Page 9

10 NOTE 1: Non-GAAP and other measures This document contains references to non-gaap measures as follows: Cash flow is a non-gaap measure defined as cash from operating activities excluding net change in other assets and liabilities, net change in non-cash working capital and cash tax on sale of assets. Upstream operating cash flow is defined as revenues, net of royalties, including realized hedging gains/losses less production and mineral taxes, transportation and processing and operating expenses for each of the respective Canadian and USA operations. Operating cash flow for a specific asset is defined as revenues, net of royalties, less production and mineral taxes, transportation and processing and operating expenses. Operating earnings is a non-gaap measure defined as net earnings attributable to common shareholders excluding non-recurring or non-cash items that management believes reduces the comparability of the company's financial performance between periods. These after-tax items may include, but are not limited to, unrealized hedging gains/losses, impairments, restructuring charges, non-operating foreign exchange gains/losses, gains/losses on divestitures, income taxes related to divestitures and adjustments to normalize the effect of income taxes calculated using the estimated annual effective income tax rate. These measures have been described and presented in this document in order to provide shareholders and potential investors with additional information regarding Encana s liquidity and its ability to generate funds to finance its operations. NOTE 2: Reserves reporting information Encana's disclosure of reserves data is in accordance with Canadian securities regulatory requirements. Encana's 2014 disclosure includes proved and probable reserves quantities before and after royalties employing forecast prices and costs in accordance with Canadian protocols. Reserves disclosure employing U.S. protocols uses SEC constant prices and costs on proved reserves on an after-royalties basis. Reserves disclosure under both Canadian and U.S. protocols will be available in the Annual Information Form, which the company anticipates filing in March. For all Canadian protocol reserves and economic contingent resources estimates highlighted in this news release, Encana has used Henry Hub forecast prices of $3.31 per MMBtu for 2015, $3.75 per MMBtu for 2016, $4.00 per MMBtu for 2017, $4.25 per MMBtu for 2018, $4.50 per MMBtu for 2019, then increasing to $5.68 per MMBtu by 2024 and escalating 2 percent per year thereafter. Encana has used WTI forecast prices of $62.50 per bbl for 2015, $75.00 per bbl for 2016, $80.00 per bbl for 2017, $85.00 per bbl for 2018, $90.00 per bbl for 2019, then increasing to $ per bbl by 2024 and escalating 2 percent per year thereafter. RESERVES METRICS DEFINITIONS Proved reserves added in 2014 included both developed and undeveloped quantities. Additions to and removals from Encana's PUD bookings were consistent with Encana's revised strategy. The company estimates that 100 percent of its PUDs will be developed within the next five years. Many performance measures exist; all measures have limitations and historical measures are not necessarily indicative of future performance. February 25, 2015 Page 10

11 ADVISORY REGARDING FORWARD-LOOKING STATEMENTS - In the interests of providing Encana Corporation ( Encana or the Company ) shareholders and potential investors with information regarding Encana, including management s assessment of Encana s and its subsidiaries future plans and operations, certain statements contained in this presentation are forward-looking statements or information within the meaning of applicable securities legislation, collectively referred to herein as forward-looking statements. Forward-looking statements in this presentation include, but are not limited to: achieving the Company s capital plans and expectations in 2015 and beyond the Company s expectation to sustainably grow cash flow per share and maintain a strong balance sheet the anticipated 2015 capital budget and the allocation thereof to the Company s four strategic growth assets (Montney, Duvernay, Eagle Ford and Permian) the anticipated success of the Company s strategy, including becoming an increasingly focused, competitive and resilient company the Company s expectation to accelerate operational efficiencies through its Resource Play Hub model and the expected cost reductions the Company s expectation to fully fund its 2015 spending plans and expected dividends from anticipated cash flow and proceeds from third parties anticipated prices for oil, natural gas and natural gas liquids in 2015 and beyond anticipated cash flow in 2015 anticipated capital, drilling, number of rigs, wells (including well cost reductions) and production from the Montney, Duvernay, Eagle Ford and Permian expected production (and the composition thereof) in 2015 the company s commitment to growing long term shareholder value through a disciplined focus on generating profitable growth expected improvements in General & Administrative efficiencies the company s focus on operational excellence and its continued focus on base optimization the expected success of the Veresen transaction and the anticipated benefits therefrom anticipated drilling rigs anticipated reserves and resources the company s plan of becoming the leading north American resource play company the Company s plan to evaluate new PUD bookings in 2015 anticipated production of oil, natural gas and natural gas liquids in 2015 and the allocation thereof the company s expectation to manage existing debt expected cost reductions the company s focus on value versus volumes the accelerated transition of the company s portfolio to ensure capital is allocated to its highest margin and scalable assets and to grow high margin production from its four most strategic assets maintaining financial strength, flexibility and capital discipline anticipated positioning to seize value accretive opportunities anticipated joint venture funding and resulting benefits anticipated hedging of our production to protect our capital program anticipated drilling and number of rigs and the success thereof and anticipated production from wells anticipated well costs anticipated cash and proceeds from third parties (including proceeds from divestitures) the company s plans to reduce costs, improve efficiencies, strengthen cash flow and maximize margins anticipated cycle times anticipated supply costs anticipated dividends maintaining an investment grade credit rating and the expectation of meeting the targets in the company's 2015 corporate guidance. February 25, 2015 Page 11

12 Readers are cautioned not to place undue reliance on forward-looking statements, as there can be no assurance that the plans, intentions or expectations upon which they are based will occur. By their nature, forward-looking statements involve numerous assumptions, known and unknown risks and uncertainties, both general and specific, that contribute to the possibility that the predictions, forecasts, projections and other forward-looking statements will not occur, which may cause the company s actual performance and financial results in future periods to differ materially from any estimates or projections of future performance or results expressed or implied by such forward-looking statements. These assumptions, risks and uncertainties include, among other things: volatility of, and assumptions regarding natural gas and liquids prices, including substantial or extended decline of the same and their adverse effect on the company s operations and financial condition and the value and amount of its reserves risks and uncertainties associated with announced but not completed transactions including the risk that the transactions may not be completed on a timely basis or at all assumptions based upon the company s current guidance fluctuations in currency and interest rates risk that the company may not conclude divestitures of certain assets or other transactions or receive amounts contemplated under the transaction agreements (such transactions may include third-party capital investments, farm-outs or partnerships, which Encana may refer to from time to time as partnerships or joint ventures and the funds received in respect thereof which Encana may refer to from time to time as proceeds, deferred purchase price and/or carry capital, regardless of the legal form) as a result of various conditions not being met product supply and demand market competition risks inherent in the company s and its subsidiaries marketing operations, including credit risks imprecision of reserves estimates and estimates of recoverable quantities of natural gas and liquids from resource plays and other sources not currently classified as proved, probable or possible reserves or economic contingent resources, including future net revenue estimates marketing margins potential disruption or unexpected technical difficulties in developing new facilities unexpected cost increases or technical difficulties in constructing or modifying processing facilities risks associated with technology the company s ability to acquire or find additional reserves hedging activities resulting in realized and unrealized losses business interruption and casualty losses risk of the company not operating all of its properties and assets counterparty risk risk of downgrade in credit rating and its adverse effects liability for indemnification obligations to third parties variability of dividends to be paid its ability to generate sufficient cash flow from operations to meet its current and future obligations its ability to access external sources of debt and equity capital the timing and the costs of well and pipeline construction the company s ability to secure adequate product transportation changes in royalty, tax, environmental, greenhouse gas, carbon, accounting and other laws or regulations or the interpretations of such laws or regulations political and economic conditions in the countries in which the company operates terrorist threats risks associated with existing and potential future lawsuits and regulatory actions made against the company risk arising from price basis differential February 25, 2015 Page 12

13 risk arising from inability to enter into attractive hedges to protect the company s capital program and other risks and uncertainties described from time to time in the reports and filings made with securities regulatory authorities by Encana Although Encana believes that the expectations represented by such forward-looking statements are reasonable, there can be no assurance that such expectations will prove to be correct. Readers are cautioned that the foregoing list of important factors is not exhaustive. In addition, assumptions relating to such forward-looking statements generally include Encana s current expectations and projections made in light of, and generally consistent with, its historical experience and its perception of historical trends, including the conversion of resources into reserves and production as well as expectations regarding rates of advancement and innovation, generally consistent with and informed by its past experience, all of which are subject to the risk factors identified elsewhere in this presentation. Assumptions with respect to forward-looking information regarding expanding Encana's oil and NGLs production and extraction volumes are based on existing expansion of natural gas processing facilities in areas where Encana operates and the continued expansion and development of oil and NGL production from existing properties within its asset portfolio. Forward-looking information respecting anticipated 2015 cash flow for Encana is based upon, among other things, achieving average production for 2015 of between 1.60 Bcf/d and 1.70 Bcf/d of natural gas and 130,000 bbls/d to 150,000 bbls/d of liquids, commodity prices for natural gas and liquids based on NYMEX $3.00 per MMBtu, AECO C$2.62 per GJ and WTI of $50 per bbl, an estimated U.S./Canadian dollar exchange rate of $0.80 and a weighted average number of outstanding shares for Encana of approximately 741 million. Furthermore, the forward looking statements contained in this presentation are made as of the date hereof and, except as required by law, Encana undertakes no obligation to update publicly or revise any forward looking statements, whether as a result of new information, future events or otherwise. The forward looking statements contained in this presentation are expressly qualified by this cautionary statement. Further information on Encana Corporation is available on the company s website, or by contacting: Investor contacts: Media contact: Brian Dutton Jay Averill Director, Investor Relations Director, Media Relations (403) (403) Patti Posadowski Senior Advisor, Investor Relations (403) Doug McIntyre Advisor, Media Relations (403) February 25, 2015 Page 13