Encana Announces Vision and Strategy, Bold Action Underway

Encana Announces Vision and Strategy, Bold Action Underway 
CALGARY, ALBERTA -- (Marketwired) -- 11/05/13 -- Encana Corporation
(TSX:ECA)(NYSE:ECA) announced its clear vision and strategy today,
earlier than initially expected, and has already started making the
significant and bold changes needed to put Encana on track to be a
leading North American resource play company. 
"We are doing what it takes to get Encana back to winning and we have
already begun executing on our strategy with some of that impact
being seen in our strong third quarter results," says Doug Suttles,
Encana President & CEO. "We have a focused long term plan in place,
the resource base to support that plan and a talented team of people
with the energy and drive to succeed." 
The key points of Encana's strategy are: 

--  Focus its capital investment on five oil and liquids-rich resource plays
    in North America. 
--  Continue to lower cost structures by leveraging its proven operational
    expertise and focusing operations to improve efficiency. 
--  Grow liquids production to build greater commodity diversity in its
    portfolio while retaining significant high quality natural gas resource
--  Align the organizational structure with its strategy. 
--  Reset the Company's dividend to align this return of cash to
    shareholders with current cash flow generation, while maintaining
    financial discipline and a strong balance sheet. 
--  Unlock additional value from the portfolio through asset divestitures
    and an initial public offering (IPO) of its Clearwater mineral fee title
    lands and associated royalty interests. 

"Encana is focused on developing high quality resource plays in North
America and continuously striving to operate in those plays more
efficiently than our competitors," says Suttles. "Our tremendous
asset base offers us the opportunity to build a focused portfolio
with exposure to different geographic regions and product diversity,
providing quality investment options and the ability to prosper
through variable commodity price cycles." 
Through its disciplined and focused growth strategy the Company
believes it can average a more than 10 percent compound annual growth
rate in cash flow per share through 2017. 
"The Board is confident in this strategy because of the deep level of
research and intense analysis undertaken by Doug and his team," says
Clayton Woitas, Encana's Board Chairman. "We believe this is the
right path forward for Encana." 
Unlocking value from its portfolio 
The Company will invest approximately 75 percent of its 2014 capital
into five high return oil and liquids-rich plays: the Montney,
Duvernay, DJ Basin, San Juan Basin and Tuscaloosa Marine Shale. 
"One of Encana's competitive advantages is our team's ability to
develop large, complex resource plays where we can implement our full
resource play hub process that is proven to drive down costs and
create higher returns," says Suttles. "The five high quality
liquids-rich plays we've chosen to focus on offer the scale and
running room we need to realize that advantage." 
Encana also plans to transfer its significant mineral fee title land
position and associated royalty interests across southern Alberta -
approximately five million net acres where the Company holds the oil
and gas rights and can collect royalties on production - into a
separate company through an IPO by mid-2014. Encana intends to retain
a significant stake in the new company which will manage leasing
activities in the area currently known as Encana's Clearwater play.
This gives the Company the opportunity to unlock value from what it
believes is an undervalued royalty business in its portfolio while
offering the potential for longer term cash flow generation to
In addition to its investment in its top five plays and the
Clearwater royalty business IPO, Encana will continue to seek
opportunities to improve its portfolio and realize the full value of
its massive asset base. The Company identified a number of assets
that have considerable upside potential through a divestiture process
scheduled to begin immediately. 
Taking action for 2014 
The Company is in the process of aligning the organization with its
focused strategy and the new structure is expected to result in an
approximate 20 percent workforce reduction. Encana will consolidate
its office locations to Calgary, Alberta and Denver, Colorado
resulting in the closing of its Plano, Texas office. 
"In order to align our organization with our strategy, we have had to
make a number of exceptionally difficult decisions," adds Suttles.
"The restructuring that is underway reflects our shift from funding
about 30 different plays to focusing our resources on five key areas.
We will work as hard as we can to make these staffing decisions
quickly and thoughtfully and we will treat everyone affected with
respect as we work through this very difficult part of our
The Company expects its capital program to be approximately $2.5
billion for 2014 and intends to issue more detailed guidance for that
program in mid-December 2013. 
"I'm excited about Encana's future and encouraged by how our people
have rallied as one team to get Encana back to winning," says
Suttles. "While we have a lot of challenging work ahead of us, I am
more confident than ever that we will be successful." 
Dividend Declared 
On November 4, 2013, the Board declared a dividend of $0.07 per share
payable on December 31, 2013, to common shareholders of record as of
December 13, 2013. 
"The dividend is an important component of total shareholder return.
The current level is consistent with maintaining a strong balance
sheet in a volatile commodity price environment and recognizes the
attractive investment options within our portfolio," adds Suttles.  
Conference Call for Investors 
Encana will host a webcast conference call with a slide presentation
for investors today, Tuesday, November 5, 2013 starting at 6:00 a.m.
MT (8:00 a.m. ET). To participate, please dial (888) 231-8191
(toll-free in North America) or (778) 371-9827 approximately 10
minutes prior to the conference call. An archived recording of the
call will be available from approximately 11:00 a.m. ET on November 5
until midnight December 11 by dialing (855) 859-2056 or (416)
849-0833 and entering passcode 97022130. A live audio webcast of the
conference call will also be available at www.encana.com, in the
Invest in Us section under Presentations & Events. The webcast will
be archived for approximately 90 days. 
Media are invited to attend the call in a listen-only mode. 
Follow Encana on Twitter @encana for updates during the conference
Conference Call for Media 
A Conference Call for media will be held today, Tuesday, November 5,
2013 starting at 9:00 a.m. MT (11:00 a.m. ET). To participate, please
dial (888) 231-8191 (toll-free in North America) or (403) 451-9838
approximately 10 minutes prior to the conference call and provide the
Conference ID number 97041655. 
Updated Presentation at www.encana.com 
A presentation offering more information on Encana's strategy is
available for download on the Company's website in the Invest in Us
section under Presentations & Events. 
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. 
Initial production and short-term rates are not necessarily
indicative of long-term performance or of ultimate recovery. 
In this news release, certain oil and NGLs volumes have been
converted to cubic feet equivalent (cfe) on the basis of one barrel
(bbl) to six thousand cubic feet (Mcf). Cfe may be misleading,
particularly if used in isolation. A conversion ratio of one bbl to
six Mcf is based on an energy equivalency conversion method primarily
applicable at the burner tip and does not represent value equivalency
at the well head. Given that the value ratio based on the current
price of oil as compared to natural gas is significantly different
from the energy equivalency of 6:1, utilizing a conversion on a 6:1
basis may be misleading as an indication of value. 
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: the Company's expectations through 2017
including being a leading North American resource play company,
having a disciplined focus on generating profitable growth and
creating sustainable shareholder value, which results in balanced
oil, liquids and natural gas production, operations focused on a
limited number of assets and being among the most efficient
operators; Encana's assessment and ability to leverage its core
competencies to be successful; the Company's plans to focus capital
investment in certain assets, drive cost structures lower, reduce its
workforce and close certain offices, including the expected timing,
maintain portfolio flexibility, including geography and commodity
mix, retaining gas optionality and a sustainable capital program, and
maintaining a strong investment grade balance sheet, including plans
to pay or change the Company's dividend; expected changes to the
Company's operating cash flow by product by 2017; expected growth
rate and cash flow per share growth through 2017,
including growth as compared to production; expected production from
the Company's core properties, including their identification,
expected returns, commodity mix, production capability, timing of
such production, running room and scalability, years of drilling
inventory, the position of Encana's acreage within each play, market
access and number of rigs; the success of certain divestitures and
upside potential of such assets; the plan to conduct a public
offering of certain royalty interests, including the expected future
activities of the new company following the transaction, the
anticipated benefits of the transaction to Encana and its
shareholders, Encana's expected ownership level in the new company,
that applicable regulatory approvals will be obtained and the timing
and success of such offering; expected capital allocation and carry
cost by play in 2014; estimated third-party capital investments and
the estimated benefits of such capital; estimated commodity pricing,
including assumptions used in modeling and projected success; success
of implementing the resource play hub process across certain plays;
estimated well drilling inventory, PIIP, EUR, well and supply costs
and initial production rates for various plays; the Company's focus
and vision from 2014 to 2017; estimated returns associated with best
in class operational performance; drilling commitments of third
parties; implementing the Company's new strategy, including the
success of such strategy; projections contained in the Company's
Corporate Guidance (including but not limited to estimates of cash
flow, including per share amounts, natural gas, oil and natural gas
liquids ("NGLs") production, capital investment and its allocation,
net capital investment, net divestitures, operating costs and
estimated sensitivities of cash flow and operating earnings) and the
timing of future updates; assumed hedging position; projected
development activities and number of wells to be drilled, including
their timing and locations; 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.
Without limiting the generality of the foregoing, there can be no
assurance that Encana will ultimately conduct a public offering of
certain royalty interests or, if a new company is created, the final
particulars thereof, including without limitation, the number, value
or location of the mineral fee title lands and associated royalty
interests that would be proposed to be transferred to a new company,
the size of the retained interest that Encana would hold initially or
in the future in the new company, and other arrangements that would
be proposed or exist as between Encana and the new company. Encana's
determination to create a new company is subject to a number of risks
and uncertainties, including without limitation, those relating to
due diligence, favourable market conditions, stock exchange,
regulatory and third party approvals and approval by Encana's Board
of Directors. 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 2.7 Bcf/d and 2.8 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
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. 
Further information on Encana Corporation is available on the
company's website, www.encana.com.  
SOURCE: Encana Corporation 
Encana Corporation - Investor contact
Lorna Klose
Manager, Investor Relations
(403) 645-6977 
Encana Corporation - Investor contact
Patti Posadowski
Advisor, Investor Relations
(403) 645-2252 
Encana Corporation - Media contact
Jay Averill
Manager, Media Relations
(403) 645-4747
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