Good day, ladies and gentlemen, and thank you for standing by. Welcome to Encana Corporation's First Quarter 2015 Conference Call. As a reminder, today's call is being recorded. At this time, all participants are in a listen-only mode. Following the presentation, we will conduct a question-and-answer session. For members of the media attending in a listen-only mode today, you may quote statements made by any of the Encana representatives. However, members of the media who wish to quote others who are speaking on this call today, we advise you to contact those individuals directly to obtain their consent. Please be advised that this conference call may not be recorded or rebroadcast without the expressed consent of Encana Corporation. I would now like to turn the conference call over to Brian Dutton, Director of Investor Relations. Please go ahead, Mr. Dutton.

Thank you, operator, and welcome, everyone, to our First Quarter 2015 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 41 of Encana's AIF dated March 3, 2015, the latter of which is available on SEDAR. In particular, I'd 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 the call will be in U.S. dollars and after royalties, unless otherwise noted. This morning, Doug Suttles, Encana's President and CEO, will provide the highlights of our first quarter results. Sherri Brillon, our CFO, will then discuss Encana's financial results and Mike McAllister, our COO, will provide an update on our recent operating activities before we open up the call for Q&A. I'll now turn the call over to Doug Suttles. Douglas James Suttles - President, Chief Executive Officer & Director: Thank you, Brian, and thanks, everyone, for joining us this morning. Encana delivered strong results during the first quarter of 2015, our first full quarter with our foremost strategic assets. We're very pleased with our current portfolio, and we believe that our positions in the Permian, the Eagle Ford, Montney and Duvernay represent the best parts of the best plays in North America. We have a high degree of confidence in our ability to execute on the asset base and, as Mike McAllister will tell you in a few minutes, we are…

Your first question comes from the line of Sameer Uplenchwar of GMP Securities. Your line is open.

Good morning, guys, congrats on a good quarter. I have two quick questions. First is on the sustainability of the cost reductions on your operations, costs are coming down 25% or more, I'm just wondering if oil prices do move higher, gas prices do move higher, like how much of these savings are going to be there longer term? And I have a follow-up after that. Douglas James Suttles - President, Chief Executive Officer & Director: Yeah, thanks Sameer; this is Doug. It's a good question and why we are emphasizing that, our savings are a result of a couple of different factors. Clearly, part of it is service cost reductions. We've pursued those aggressively. We started that at the end of last year. And actually, it's something we started as we were changing our portfolio. But the other two elements that are critical here is execution performance, so this is focused on every single activity and doing it as good as you possibly can. And then actually, I think the biggest single driver is innovation, doing things smarter and better. So some of these savings could try to leak out if you had a substantial, but I think it has to be a substantial increase in commodity price and activity increase. But largely, much of the savings I expect to stick.

Got it. And then, like I'm just – the four assets you have discussed in detail in the presentation and in the release, I'm wondering about the other three: DJ Basin, San Juan, TMS. Any update on those? Or they are non-core right now? Or how do we think about those three? Douglas James Suttles - President, Chief Executive Officer & Director: Sameer, with the big change, particularly in oil price that happened at the back end of last year, us and others all had to make some very clear capital choices. And we did that. As you noticed from December to February, we reduced our capital guidance by about 25%. As we studied how best to do that, we came to the conclusion that in this part of the commodity cycle we needed to focus our capital in our four most strategic assets, and that's exactly what we did. If we go back to November, we had about 44 rigs running across the company. As we sit here today, we have about 20, and only one of those is working outside the four. We still have one rig running in the DJ. I should say places like the DJ and the San Juan have very good margins. They are very profitable plays, but we had to make tough choices on our spend. And we decided we'd get the greatest efficiency and the greatest value creation by focusing on the four. So that's the reason we made the choices we did.

So are these core assets or non-core assets? I'm just trying to understand like on a long-term basis. Douglas James Suttles - President, Chief Executive Officer & Director: Well, as we've talked about in the past, we really said we have in many ways seven core growth assets. We have the four: the Montney, the Duvernay, the Permian and the Eagle Ford, which are the most strategic. And the reason for that is, is not only the quality of their margins, but their scale. The next two are the San Juan and the DJ. The challenge we have there is slightly different, but can we achieve the necessary scale or not, it's not an issue of margins or returns, it's a scale issue. And then of course we hold this interesting option in the TMS.

Got it. Thank you.

Your next question comes from the line of Benny Wong. Your line is open. Benny C. K . Wong - Morgan Stanley & Co. LLC: Yeah. Thanks. In regards to Eagle Ford recompletions, can you give us a sense of how many you guys recomplete in the first quarter? And remind us or even update us on how many candidates you have left? And if you could provide any update on the strategy and pace you're thinking about them going forward would be great? Douglas James Suttles - President, Chief Executive Officer & Director: Yeah. I'll flip this over to Mike, but I think by recompletes you're probably referring to refracs? Benny C. K . Wong - Morgan Stanley & Co. LLC: Yes. Michael G. McAllister - Chief Operating Officer & Executive Vice President: Hi, Benny. Yeah, we just completed the two refracs here previously and both are performing very well. We're monitoring them in terms of looking at their decline rates, making sure they match type curve, and they're looking pretty good right now. We have one planned here for the next quarter, another refrac, and we have multiple, somewhere in the 100 range, of potential refrac candidates as we look forward. But it's all to be evaluated as we better understand the performance. Douglas James Suttles - President, Chief Executive Officer & Director: If I add one thing to that, Benny, I think we've seen good early results. But I think our technical work suggests that we're only refracking a relatively small portion of the wellbore. And we actually think the technology needs to advance before we push this scale. So we're going to go slow until the technology gets to where it needs to be. Benny C. K . Wong - Morgan Stanley & Co. LLC: Great.…

Your next question comes from the line of Greg Pardy. Your line is open.

Thanks. Good morning. Maybe couple of questions for Mike maybe to start out with, so the Duvernay I think you mentioned last year you'd achieved a drilling and completion cost at $12.4 million per well when you went to the pad drilling. I'm just wondering is there a target for 2015? How much lower do you think cost could go there? Michael G. McAllister - Chief Operating Officer & Executive Vice President: Yeah. That's right. We actually in our latest pad, later in the year, I should say, we got to $12.4 million. We're targeting together under $11 million right now. We actually have pacesetter pad is about $11 million well, per well cost is $11.2 million, but continued to drive the technology as well as our operating procedures, and we're continuing to push the cost down.

Okay... Douglas James Suttles - President, Chief Executive Officer & Director: I mean, yeah, Greg. Just add some color to that. Mike and I were out in the Duvernay week-and-a-half ago, I think it was and met with the teams out there. And what's interesting is we've actually said they've done a great job, but we don't think they're anywhere close to finished. We don't quite know exactly where that is, but I don't expect our momentum to stop. The pace will obviously mitigate some because we've gone to RPH. But the thing Mike mentioned on the Montney, one of the newest things we may be do something slightly different than other companies in that we have drilling bit experts that work for the company. And we're now working on custom bit designs, which is actually significantly increasing our drilling performance, in particular meaning, we're getting whole sections drilled with single bit runs, which actually reduces time and cost. So we're not yet ready to set the new target, but our old target was $12 million and we've already beaten that target, so now we got to figure how much lower we can go.

Okay. Great. No, thanks for that. And I know in the release you mentioned the exit rate of the Permian, how of much of that would have been oil and liquids? Just curious. Douglas James Suttles - President, Chief Executive Officer & Director: Mike, do you have that? Michael G. McAllister - Chief Operating Officer & Executive Vice President: Yep.

I can get back with you on that... Douglas James Suttles - President, Chief Executive Officer & Director: The total liquids in the Permian is about 80%. It's gone down just slightly because in a lot of areas given the current ethane prices our midstreamers are rejecting ethane right now.

Okay. Great. Michael G. McAllister - Chief Operating Officer & Executive Vice President: Yeah, that's about 50,000 BOE per day, but 4,000 BOE would be liquids.

Okay. So that's the annual average? Michael G. McAllister - Chief Operating Officer & Executive Vice President: Yeah.

Okay, okay. Great. And then last question from me is really the balance sheet. I mean, where do you want to see your balance sheet leverage in 2016? And I know you're not going to comment specifically about M&A, but obviously non-core asset sales and some of the other questions that have come up already would conceivably lead you to believe that, hey, if you can get a good bid on some of these other assets, the DJ or the San Juan, those could be good fodder I think to improve the balance sheet, is that fair? Douglas James Suttles - President, Chief Executive Officer & Director: You know, Greg, when we rolled the strategy out, we tried to say a few things at the time and one of which was the importance on the balance sheet in maintaining investment grade rating. And I think – and that was in a very different price environment. As you saw us move into 2015, what we tried to reflect was between already announced and now closed divestments and cash flow, we'd fully fund our dividend and our capital this year. We actually do believe that if we can maintain a minimum of around $2 billion of capital, even in the bottom of the cycle, we actually drive good growth in our full core assets. And we see the ability to do that. So I think what you'll see is us continue to manage the balance sheet very prudently. We intend to maintain our investment grade rating and what you've seen is we've actually been retiring debt now two years in a row. It's a bit too early to say exactly where we'd position that for 2016, but I can tell you that it'll be prudently managed like we're doing right now.

Okay. Thanks very much.

Your next question comes from the line of Brian Singer of Goldman Sachs. Your line is open. Brian A. Singer - Goldman Sachs & Co.: You talked to a number of resource improvement opportunities in the Eagle Ford, the frac design, the cluster spacing, better decline rate management. Can you add some more color on what these all mean to EURs in the Eagle Ford? And also what the impact would be on your recovery rate assumptions? Douglas James Suttles - President, Chief Executive Officer & Director: Yeah, Brian, just a couple early thoughts and then Mike can share it in. When we bought that position, we saw well inventory of about 400 locations, but we also saw some upside from downspacing. There's an area we refer to as the Graben, which had been drilled early on in the life of the Eagle Ford with not particularly good results. We studied that pretty hard, believed there was some upside there. We've now put I think six wells into it and four of which are performing considerably better than the type curve. We think that's not only a function of our new completion designs, we could see some things which maybe could be better done this time around. So between the Graben and downspacing, there is upside potential on the well count. We're trying to quantify that. And then also like other operators in the area, we're now looking at the Upper Eagle Ford and some potential that exists there. We're just starting to do the work around that, but that's an additional upside. Michael G. McAllister - Chief Operating Officer & Executive Vice President: Hi, Brian; it's Mike McAllister here. Yeah, as I said on the call, we've been consistently increasing our sand concentrations and our inter-well spacing and our…

Your next question comes from the line of Jeffrey Campbell of Tuohy Brothers. Your line is open.

Good morning. My first question was I noticed that you mentioned stacked pay potential in the Permian. I was just wondering have you started any kind of stacked pilots yet? Or are you concentrating primarily on a zone or two at this time? And if not, when do you think you might start to undertake some sort of stacked experiments in the Permian? Douglas James Suttles - President, Chief Executive Officer & Director: Jeff, Mike will fill you in on the details, but the Permian we're trying to do three things simultaneously, and I'm encouraged by the early results. One is we've already gone to our Resource Play Hub multi-well development model, which is driving lot of efficiency in upfront. I mean, you guys may appreciate it, but doing simultaneous drilling and completion operations is not common. We've done it elsewhere successfully. It reduces cycle time, it cuts cost. I mean, Mike also mentioned, in the Duvernay two frac spreads on one pad. We're told by the service company that pumped it, that's the first time it's ever been done in the world. And it generates substantial cost savings and cycle time benefits as well. But the three things we're trying to do in the Permian is move forward on some of the zones with RPH development. The second thing we're trying is actually aggressively pursuing what do we think optimum development model is, and that's both inter-well spacing and completion intensity because as Mike mentioned we're looking at 3,000 pounds per foot and 4,000 pounds per foot on our frac designs. And the third thing is we continue to appraise other horizons. We already are looking at chevroning, which is in my thinking it's vertical downspacing. But we've got all three these going on simultaneously right now. Michael G. McAllister - Chief Operating Officer & Executive Vice President: Hi, Jeff; it's Mike here. Yeah, we've been testing greater inter-cluster spacing or, should I say, reduced inter-cluster spacing and increased sand concentrations and seeing very encouraging results with respect to that in the Permian. We've been testing the Wolfcamp A, Wolfcamp B and now are drilling the well into the Wolfcamp C, so basically looking at testing all of the zones as well as the Spraberry here. But as Doug mentioned within the zone, say, the Wolfcamp B, we're looking at not only just staying on the horizontal, but also moving, stacking vertically up basically 330-foot well spacing, but going from 200 foot to 300 foot vertically within the zones to test that production performance. So moving along, we expect to be doing those tests this year, basically speeding up our learning curve, if you will, for optimal development.

Okay, great. Thank you. And, Doug, I wanted to sort of ask a question that may seem a little odd, but I'm wondering what you think about optionality with regard to natural gas. There's been some discussion recently that the Haynesville might be for sale; I don't expect you to comment on that. But there's also been some recent peer well results in the play that have been very strong. And I've covered in Canada for a long time, and I know that the Haynesville is a play, where you guys create a lot of innovation. It's actually being moved to a number of other plays as we speak. So I'm just wondering are all natural gas assets created equal at this point, as liquids production is increasing? Or are some more advantaged than others towards retaining? Douglas James Suttles - President, Chief Executive Officer & Director: Yeah, Jeff, I think it's interesting to think back. In the fall of 2013, we rolled our strategy out, one of the things we talked about is we thought that gas would likely trade and we predicated the strategy in a 3.50 to $4.50 world for a good part of the remainder of the decade. We still believe that even though prices right now are not even at $3, as the market tries to balance a bit of oversupply. And I think when we look at the last wells we drilled in the Haynesville – we stopped drilling the Haynesville at the end of 2013, I think are if not the very best wells yet drilled in the Haynesville, amongst the very best. We actually did 4,000 pounds per foot in the Haynesville in 2013 and delivered some incredibly strong wells. For us right now, clearly, what we're trying to do is get better balance of liquids at the moment. And so that's where we're focusing our capital. But I will say that, I've been asked before do I think that what others are saying about the quality of the Haynesville is true? I think I absolutely agree. I think that the well costs are coming down. The well performance, particularly with these new high-intensity completions, are very strong, particularly if you're in the core of the play.

Okay. Great. Thank you. Appreciate it.

Your next question comes from the line of David Meats of Morningstar. Your line is open.

Hey. Good morning, guys. My question is again digging into the Permian a little bit. You've got quite a lot of inventory, 5,000 locations. And I'm just wondering as you work through that, do you think supply costs or EURs will change in the more peripheral parts of that acreage? Douglas James Suttles - President, Chief Executive Officer & Director: Yeah, David, it's interesting because, as you guys know, the Permian, of course, you got the Permian's a number of things, it's the Midland Basin, it's Delaware Basin, it's a central platform, and it's all sorts of different zones, and they all vary. And what we're trying to do is simultaneously develop and assess this. So we're over in Howard County drilling Wolfcamp A wells drilling very good wells. We're in Midland and in Martin County doing things in the Wolfcamp B, the Lower Spraberry. We're also testing the Wolfcamp C. I think if you look at the history of all the plays, as you get better completion designs and you drive your efficiency up, the economics of the more peripheral areas start to look better. They're never as good as the core though. They are never as good as the core, but clearly, us and others are both making better wells and taking cost out of the system. And my sense is – I mean, we bought the position we bought because we believe it's in the core of the play, or the majority of position is in the core of the play.

Fair enough. And with oil prices where they are right now and then with the volatility that you were just talking about, are you still actively adding hedge protection going forward at this point? Or kind of waiting for prices to stabilize and then see what happens? Douglas James Suttles - President, Chief Executive Officer & Director: Yeah, you know what we do at the end of every quarter, and we just did it again today, is disclose our quarter-end hedge position. And we'll update that again at the end of 2Q. We normally don't update that during the quarter.

Okay. All right. Well, that's all I've got. Congrats on the quarter. Thanks a lot, guys. Douglas James Suttles - President, Chief Executive Officer & Director: Thank you.

Your next question comes from the line of Jeoffrey Lambujon of Tudor Pickering Holt & Co. Your line is open. Jeoffrey Restituto Lambujon - Tudor, Pickering, Holt & Co. Securities, Inc.: Good morning. Thanks for taking my questions. Just a follow-up on one of the previous ones on impacts to Eagle Ford EURs from the opportunities you all are now testing. Should we still view the older 250 to 700 range for EURs is valid? Or has that moved higher maybe timed in your view? Douglas James Suttles - President, Chief Executive Officer & Director: Well, Jeff, good insight there. I think what we've been doing is some of the areas we thought were at 250 range, we think are now getting higher. We're not yet ready to update the type curve yet because we've got a limited number of wells, but basically those wells we saw as maybe the 250, which to be honest in today's price environment wouldn't be attractive. The question is can they be better than that and that's what we're testing, and the early results are pretty encouraging. Jeoffrey Restituto Lambujon - Tudor, Pickering, Holt & Co. Securities, Inc.: Okay. And then jumping over to the Permian and just looking at the Q1 liquids production there, up slightly versus the Q4 exit. Obviously the Q1 exit is noticeably higher. How can we think about the quarterly ramp throughout the year there going forward? Douglas James Suttles - President, Chief Executive Officer & Director: Yeah, I think Sherri covered this earlier, but basically because we're ramping up and because we use multi-well pads, what it tends to mean is that it takes a little while to build the production because the cycle time on a multi-well pad is longer than a single-well pad. So the shape of our curve has considerable growth, particularly in the second half of the year. The other impact here is as you pump these larger completions, these more high-intensity frac jobs, you hit peak production a bit later. Now the peak production is higher – quite a bit higher, but it does take a little longer to get there. So the net result of that is, is fairly modest growth in the first half of the year and pretty strong growth in the second half. Jeoffrey Restituto Lambujon - Tudor, Pickering, Holt & Co. Securities, Inc.: Thank you.

Your next question comes from the line of Mike Remo (54:53). Your line is open.

Hi. My question has been answered. Thanks very much. Douglas James Suttles - President, Chief Executive Officer & Director: Thanks, Mike.

Next question comes from the line of Mike Dunn. Your line is open.

Hi, everyone. Just wanted to clarify, Doug, I think I heard you folks say that Q4 average production from the four core plays would be 270,000 BOEs a day, did I hear that correctly? Douglas James Suttles - President, Chief Executive Officer & Director: Yes. That's correct.

Okay. Thank you. That's all from me.

Your next question comes from the line of Menno Hulshof of TD Securities. Your line is open.

Thanks and good morning. I'll start with a question on the cost structure. Looking to Canada, I noticed your gas costs were down quite a bit in Q1 relative to Q4 and even on a trailing fourth-quarter basis. So what drove that decrease? And how much of that improvement would you consider to be repeatable? Douglas James Suttles - President, Chief Executive Officer & Director: Yeah. Some of this was actually – as you guys know, we had a lot of portfolio change last year. So there are a number of factors which make kind of quarter-over-quarter a bit complicated. Some is what we bought and sold and some is the impact of even taking PrairieSky, which had royalty production in it and coming out. But basically, I think the sort of numbers we're seeing here in the first quarter we believe are indicative of where we now expect costs to trend. Hopefully, they'll continue to go down, but I think as the portfolio is stabilizing, you should see less noise quarter-to-quarter.

Okay. Perfect. And then I might have missed this on this call earlier, but which plays drove the impairment charge in the U.S.? Douglas James Suttles - President, Chief Executive Officer & Director: Sherri, why don't you pick that up? Sherri A. Brillon - Chief Financial Officer & Executive Vice President: Hi. It's Sherri Brillon. We don't really identify it on a play-by-play basis. We do our ceiling test according to U.S. GAAP, which is done on a country-by-country basis.

Okay. And then maybe I'll just wrap it up with Deep Panuke, is there any sort of an operational update that you can provide there? Douglas James Suttles - President, Chief Executive Officer & Director: Well, I think what's interesting is with the onset of early water, which we talked about in 4Q of last year and in our February call, what we did is went to a seasonal operating strategy which actually optimizes the value of the assets, so we had a very good first quarter. I think for anyone who lives in the northeast of the U.S. or the southeast of Canada felt the brunt of that, which created a good opportunity. We had strong operating performance off the facility. I think our new seasonal strategy is maximizing the value. As we sit here today, we're shut in. We expect to have Panuke shut in probably through the summertime and we'll resume production as we approach the winter. So far, we're pleased with the new strategy; it seems to be optimizing the value of the asset.

Okay. Thanks, Doug. That's it from me.

Your last question comes from the line of Barbara Betanski of Addenda. Your line is open.

Hi. Thanks very much. It's a Montney question and, in particular, egress capacity of the Montney. So I wanted to know what sort of a strategy you used in terms of balancing firm versus interruptible service? And whether you were affected in any way by the TPL maintenance? And really as you look at the area longer-term in terms of growth out of the area, how are you strategizing for egress out of the area? Are there any issues there? Douglas James Suttles - President, Chief Executive Officer & Director: Yeah. Thanks Barb. Let me, Renee Zemljak runs our Midstream Marketing and Fundamental team is here. Let me have her pick that up for you.

Thanks. Renee E. Zemljak - Executive VP-Midstream, Marketing & Fundamentals: Hi, Barbara. Yes, we have had some minimal impacts as a result of the TCPL pressure issues for our Montney production. That being said, some of our Montney is connected to both Alliance and TransCanada, so we've been able to divert some of that production. On a long-term basis, we have supported expansions from the region and we have secured firm access into the (59:03) market as well as we've secured firm access into the Pembina NGL transportation as well.

So would it be fair to say that you're looking at your growth plans and you're matching your egress from capacity to your expected growth? Renee E. Zemljak - Executive VP-Midstream, Marketing & Fundamentals: That's absolutely correct. Yes.

Thank you very much. Douglas James Suttles - President, Chief Executive Officer & Director: All right...

At this time, we – sorry, go ahead. Douglas James Suttles - President, Chief Executive Officer & Director: Go ahead, operator.

Okay. At this time, we've completed the question-and-answer session. I'll turn the call back over to Mr. Dutton. Douglas James Suttles - President, Chief Executive Officer & Director: Very good. Before I hand it back to Brian, I just want to say a couple of quick things. First of all, we do have our Annual Meeting of Shareholders this morning at 10 AM. And for those in the Calgary area, it was snowing yesterday morning, it's not snowing this morning, so I'm very pleased to say that. So hopefully some of you will join us at the BMO Center. We have a live audio webcast of the meeting as well as the slides will be available on our website. And just to close, when we set out our new strategy in November, it was all focused on value over volumes. We believe that's still the right strategy. In fact, it may be even more important at the bottom of the cycle. I think part of the reason for our strong quarter in the first quarter is we have actually lots of access to create value by expanding margins, which is what we're very, very focused on, as well as growing our most critical high margin assets. It was we believe a strong quarter and builds momentum as we head to the end of the year.

Thank you, Doug. Operator, our call is now complete.

This concludes today's conference call. You may now disconnect.