Encana Provides Update on Strategy Development Process

Encana Provides Update on Strategy Development Process 
CALGARY, ALBERTA -- (Marketwired) -- 09/12/13 -- Encana
(TSX:ECA)(NYSE:ECA) President & CEO Doug Suttles will provide an
update on the company's strategy development process today at the
Barclays CEO Energy-Power Conference in New York City. 
Encana engaged internal and external advisory teams to conduct a
rigorous assessment of the company's assets and identify the
company's strengths and challenges to inform the strategy development
process. 
"Initial insights from the independent research combined with our
internal analysis showed that Encana's strengths include our vast
amount of resources, our robust knowledge of market fundamentals and
a proven ability to develop and operate plays very cost-effectively
relative to our industry peers," says Suttles. 
In particular, the assessments found that Encana is excellent in the
development of very large scale and complex resource reservoirs. 
The assessments also identified several areas where significant
changes are required to be successful. Encana has more inventory in
its portfolio of plays, particularly dry natural gas, than can be
optimally developed. The company must focus its portfolio and
concentrate capital in the assets that leverage its strengths and
generate the strongest returns. Further, the organizational structure
must be fully aligned with the strategy going forward. 
"The resounding message I have received from our shareholders and
staff through surveys, focus groups, meetings and interviews across
the organization is that they are ready for change and maintaining
the status quo is not an option," says Suttles. "I have every
intention of making significant change in the areas where improvement
is required." 
The company's strategy, supported by a strong balance sheet, will be
built on four core competencies: 


 
1.  Resource Identification - It is critical to have world class skills in
    this area and focus efforts on the highest quality plays and leverage
    Encana's operating skills. 
    
2.  Market Fundamentals - Encana expects that future oil and natural gas
    prices will remain volatile. Understanding hydrocarbon type
    differentiation and regional factors will become increasingly important.
    This knowledge must be strongly linked to portfolio decisions and
    capital allocation. 
    
3.  Capital Allocation - Capital decision making must be centralized,
    focused, completely aligned with strategy and driven by returns. 
    
4.  Operational Excellence - The company's internal and external assessments
    demonstrated that the difference in capital and operating efficiency
    between the top performers and the industry average in core plays with
    scale can be twenty percent or greater and that Encana has consistently
    perfomed amongst the best competitors in these areas. Leveraging the
    company's development expertise will be crucial to achieving higher
    returns. 

 
In addition, maintaining a strong balance sheet will be critical to
consistent delivery of strong financial performance and to support
the company's ability to capture new opportunities. 
"Over the coming weeks, we will be finalizing our strategy and
building our implementation plans. Many of the building blocks for
success are in place, but in several areas significant change is
required," says Suttles. "I am confident that the organization is
ready for what lies ahead and I'm fully committed to driving the
necessary change that will get Encana back to winning." 
Doug Suttles' presentation to the Barclays conference will be webcast
live today (Thursday, September 12) at 10:25 A.M. Mountain Time
(12:25 P.M. Eastern Time). The live presentation and presentation
materials will be available on Encana's website at
http://www.encana.com/investors/presentations-events/. 
Encana Corporation  
Encana is a leading North American energy producer that is focused on
growing its strong portfolio of diverse resource plays producing
natural gas, oil and natural gas liquids. By partnering with
employees, community organizations and other businesses, Encana
contributes to the strength and sustainability of the communities
where it operates. Encana common shares trade on the Toronto and New
York stock exchanges under the symbol ECA. 
ADVISORY REGARDING OIL AND GAS INFORMATION - Encana uses the term
resource play. Resource play is a term used by Encana to describe an
accumulation of hydrocarbons known to exist over a large areal
expanse and/or thick vertical section, which when compared to a
conventional play, typically has a lower geological and/or commercial
development risk and lower average decline rate. 
ADVISORY REGARDING FORWARD-LOOKING STATEMENTS - In the interests of
providing Encana 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 news release 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 news release include,
but are not limited to: achieving the company's objectives and focus,
including developing and implementing a new strategy for 2014 and its
projected success, focusing on certain assets to generate the
strongest returns, achieving cost reductions and capital efficiency
and their expected impact, growing its portfolio of diverse resource
plays, and achieving financial strength and flexibility; timing of
and steps for strategy development process; assessment of the
company's strengths and implementing certain changes required to be
successful over the long term; estimates of potential resource
portfolio, including expected inventory that can be optimally
developed; expected changes to Encana's portfolio mix and capital
allocation and the success thereof; evaluating and ranking of assets
within Encana's portfolio and the basis of such evaluation, including
determining areas that provide adequate scale to leverage capital
investment and operating expertise; projected changes to the
company's organizational structure to align with its new strategy;
projected market fundamentals, including forecasted supply, demand
and prices of natural gas, oil and NGLs, and the timeframe of and
factors affecting such projections; projected impact of capital and
operating efficiency, including the company's ability to achieve
similar results; planned sale of certain assets and future
investments, including their success; estimated capital allocation by
product and by play; estimates of reserves and economic contingent
resources, including implied reserve life index; and Encana's
expected resource play life cycle. 
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; 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; 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 news release. 
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 2013 cash flow for
Encana is based upon, among other things, achieving average
production for 2013 of between 2.8 Bcf/d and 3.0 Bcf/d of natural gas
and 50,000 bbls/d to 60,000 bbls/d of liquids, commodity prices for
natural gas and liquids based on NYMEX $3.75 per Mcf and WTI of $95
per bbl, an estimated U.S./Canadian dollar foreign exchange rate of
$1.00 and a weighted average number of outstanding shares for Encana
of approximately 736 million. 
Furthermore, the forward-looking statements contained in this news
release 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 news release are expressly qualified by this cautionary
statement. 
SOURCE: Encana Corporation
Contacts:
Investor contact:
Encana Corporation
Lorna Klose
Manager, Investor Relations
(403) 645-6977 
Encana Corporation
Patti Posadowski
Advisor, Investor Relations
(403) 645-2252 
Media contact:
Encana Corporation
Jay Averill
Media Relations
(403) 645-4747
www.encana.com
 
 
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