Q1 Q1 2 2019 Con Conference Cal Call April 30, 2019 S U S T A - PowerPoint PPT Presentation

Q1 Q1 2 2019 Con Conference Cal Call April 30, 2019

S U S T A I N A B L E B U S I N E S S M O D E L 2 Fo Focus cused Ex Execu cution n on n 2019 Objectives • Deli Deliver t the sy e synergies es id iden entified in in our N Newfiel eld a acquisition o Target: $125 million in annualized G&A savings – Annualized G&A reductions now estimated at $150 million o Target: reduce STACK well cost by $1 million – Achieved $1 million/well reduction; driving strong returns – Significant reduction in D&C cycle times – Additional cost reductions identified ow Ŧ and r • Gener erate e free c cash sh flow return urn c capital t to s shareho holders rs o 2019 capital guidance unchanged; higher oil prices YTD increase estimates for free cash flow Ŧ o $1.25B share buyback program underway – YTD purchases; ~91 million shares* at an average price of $7.19 per share o 25% increase to dividend in Q1 2019 • 15% Y YOY p prof ofor orma liqui uids gr growth f h from om the he Permian, n, A Ana nadarko a and nd Mont ontne ney o On track to meet full year guidance th consec • Deli Deliver E Encana’s 6 6 th secutive “ e “safest st y year e ever” *Total repurchased as of April 29, 2019 Ŧ Non -GAAP measures defined in advisories. For additional information regarding non-GAAP measures see the Company’s website.

S I G N I F I C A N T M O M E N T U M 3 Strong ong F Financ ncial a and O Operationa onal Perfor formanc nce Results lts a and Guida dance Q1 201 1 2019 Q1 201 1 2019 Expec ected ed Q2 – Q4 Q4 Full Year Full Year Reporta table Proforma a (1) Ru Run Ra Rate Reportable Proforma 1) CAPITAL INVESTMENT 736 736 913 913 500 500 – 800 800 2,500 – 2,700 2,700 – 2,900 ($ MILLION) TOTAL LIQUIDS 231 231 293 293 300 300 - 320 320 290 – 310 300 – 320 (MBBLS/d) NATURAL GAS 1, 1,42 421 1, 1,64 644 1,600 – 1, 1,70 700 1,500 – 1,600 1,550 – 1,650 (MMCF/d) TOTAL PRODUCTION 468 468 567 567 585 – 600 585 600 540 – 580 560 – 600 (MBOE/d) TOTAL COSTS PER BOE (2) 13. 13.44 n/ n/a <13.00 12.75 – 13.25 12.75 – 13.25 UPSTREAM OPERATING AND T&P, PRODUCTION AND MINERAL TAXES PLUS ADMINISTRATIVE • Capi pital in investm tment a t and pr d produ ducti tion o on tr track • Improved G G&A out outlook ook o Front-half weighted capital program o Quarterly run rate of ~$75 MM • Q1 non non-GAAP cas cash flow ow Ŧ , exclu ludin ing a acquis isit itio ion & & • Market d t diversif ific icatio tion s strate tegy a added ~ d ~$1.60/BOE t to restructu turing c costs ts, to tota taled $ $566 MM MM ($0.46/sh sh) non non-GAAP AP c cash f flo low marg rgin Ŧ o Permian oil realized price 3 ~98% of WTI o Acquisition and restructuring costs of $144 MM reduce quarterly non-GAAP cash flow Ŧ to $422 MM ($0.35/sh) o Canadian gas realized price 3 ~90% of NYMEX (1) Q1 2019 proforma includes Encana and Newfield upstream capital and operations prior to the acquisition close February 13, 2019. (2) Excludes the impact of long-term incentive costs and restructuring costs. BOW office lease costs are included in Administrative. (3) Includes financial basis hedges. Ŧ Non -GAAP measures defined in advisories. For additional information regarding non-GAAP measures see the Company’s website.

T H E E N C A N A A D V A N T A G E 4 Execution R on Rapidly I y Improving ng A Anadarko R o Retur urns ns Self-sourced sand and chemicals Increased pad dimension improve reliability Performance-driven accommodates drive- and lower costs project management at through access to reduce the wellsite wait times and improve safety PropX sand system reduces costs, ensures supply Multiple records set during completions Single day record of 115,000 bbls • pumped by one frac crew Exceeded 18 hours a day pump time, • consistent with Encana Permian Utilizing dual-lay flat Significant efficiency to increase fluid to improvements and from location Nearly doubled stages pumped per day • 41% decrease in non-productive time •

S E T T I N G N E W M I L E S T O N E S 5 Anad nadarko D&C Cost* Reductions YTD 2019 ($MM/well) $8.5 • Achieve ved target eted ed $1 MM/ M/wel ell cos ost reduction ion $7.90 in Q Q1 $8.0 $0.40 $0.25 D&C Cost (MM$) $7.5 o Achieved primarily from completions $0.20 $0.15 – Improved cycle time through higher pump rates $7.0 $6.90 o Supply chain management $6.5 – Self-sourcing sand and chemicals $6.0 – Unbundled services $5.5 – Levered multi-basin exposure to renegotiate contracts $5.0 2018 Reduced Improved Renegotiated Unbundled Realized Future Well • First c cube be developm opment s spud i d in A Apr pril Sand Cost Completion Contracts Services Well Cost Costs Efficiencies o Multiple cube results expected in 2H 2019 Cycle Time Improvements by Pad Size • Further c r cost st redu ductions i s ide dentified Frac ac time e Frac t ac time % % o Additional drilling and completion efficiencies Pa Pad Si Size Q4 201 4 2018 Q1 201 1 2019 Improvem ement ent o Executing cube development at scale 3-Well Pad 32 days 18 days 44% 2-Well Pad 25 days 13 days 48% *Normalized to 10,000’ lateral length

R E P E A T A B L E W E L L P E R F O R M A N C E 6 Anad nadarko Recent STACK Pad Completion • 31 net net S STACK w wel ells o on-str stream am i in Q Q1 (1 (1) o Wells continue to meet or exceed 1.3 MMBOE type curve o Includes 49 gross operated STACK wells at 63% liquids • Q1 p prof ofor orma p produ oduction o of 145 MBOE/d Q1 2019 STACK Operated Well Performance* • Consi sist stent w well r results a ts and l lowe wer c cost sts s driving g 200 str strong r retu turns Cumulative Production 150 o Anadarko returns competitive with Permian and Montney (MBOE) 1.3 MMBOE 100 type curve 50 0 0 30 60 90 120 150 Days Type Curve Q1 Average * Normalized to 10,000’ lateral length, includes 49 gross wells (1) On stream wells are proforma

L E A D I N G I N D U S T R Y 7 Permi mian Industry Leading Cycle Time* Days (Spud – First Production) • 33 n net w wells lls o on-str stream am i in Q Q1 o Consistent well performance across all counties • Q1 p production of of 91 M MBO BOE/d o 3.2 MBOE/d shut-in due to third party midstream outages – 1.9 Mbbls/d of NGLs and 8 MMcf/d of natural gas • ~98 M MBOE/d i d in Apr pril o On track to meet full year 2019 expectations Q1 2019 Well Performance** 200 Cumulative Production • Leading Permian an B Basi sin o operato tor 150 o Best in class cycle time performance (MBOE) o Growing production above ~100 MBOE/d with just 4 rigs 100 50 0 0 30 60 90 120 150 Days Type Curve Q1 Average * Source: Drilling Info, Inc. Includes all Midland Basin wells on-stream January 1, 2018 to March 2019. Peers include CPE, CVX, CXO, Endeavor, FANG, LPI, OXY, PE, PXD, QEP, SM, and XOM ** Normalized to 8,500’ lateral length, includes 33 gross wells

C O M P E T I T I V E R E T U R N S 8 Mo Mont ntney Continued Cycle Time Improvement 180 Days (Spud – First Production) 150 • 15 n net w wells lls o on-str stream am i in Q Q1 120 o On track for 70 – 80 net wells in 2019 90 • Q1 p production of of 207 MBO BOE/d 60 o 4.3 MBOE/d shut-in due to midstream curtailments 30 – 1.1 Mbbls/d of liquids and 19 MMcf/d of gas 0 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 • Q1 p progr gram am e exceeding t g type c curve e expecta tati tions Q1 2019 Well Performance* o Tighter clusters 80 o Optimized well spacing Cumulative Condensate o Increased frac intensity Production (MBbls) 60 • Cont ntinu nued c cycle t e time i improvement nt 40 o Average well on-stream in under 80 days o Scheduling optimization and concurrent operations 20 • Low w w well c cost sts o of ~$4.3 M MM and a attr tracti tive r royal alty ty 0 regime drive c competitive r retur urns ns 0 30 60 90 120 150 Days Type Curve Q1 Average * Normalized to 7,900’ lateral length, includes 22 gross wells

A P R E M I E R E & P 9 Our ur 2 2019 Fo Focus cus YTD A Accom ccomplis ishmen ents Upcom coming M Miles ileston ones es • Rapi pid i d integration on o of Newfield E d Expl ploration on • Furthe her r reduc uctions ns i in A Ana nadarko w well c costs • Achie ieve ved t targeted w well c l cost r reductio ion o of $1MM • Demons nstrate r repeatable cube d development ent in An Anadarko results i ts in A Anad adarko • Inc ncrea eased p projected G G&A s saving ngs t to >$150 M MM • Co Complete s share bu buyback pr k program • Retur urni ning ng c capital to s shareho holders • Maintain in capit ital d l discip iplin line o Executed buyback of ~91 million shares* at an average o Deliver on production and capital outlooks price of $7.19 per share o Combined 15% annualized liquids production growth in o Increased dividend by 25%** Permian, Anadarko, and Montney ow Ŧ (2nd year i • Spud ud f first c cube development nt i in A Ana nadarko • Gener enerate f free ee cash flow in a a row) w) o As cash flow Ŧ grows, build cash on balance sheet Ŧ Non -GAAP measures defined in advisories. For additional information regarding non-GAAP measures see the Company’s website. * Total repurchased as of April 29, 2019. ** Declaration and payment of future dividends is subject to Board approval.