Good day, ladies and gentlemen, and thank you for standing by. Welcome to Encana Corporation's Fourth Quarter 2015 Year-End Results 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. 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 Brendan McCracken, Vice President of Investor Relations. Please go ahead, Mr. McCracken.

Thank you, operator. Welcome, everyone, to our fourth quarter and year-end 2015 results conference call. This call is being webcast and slides are available on our website at encanca.com. Before we get started, please take note of the advisory regarding forward-looking statements in the news release and at the end of our webcast slides. Further advisory information is contained in our most recent Annual Information Form and other disclosure documents filed on SEDAR and EDGAR. I also wish to highlight that Encana prepares its financial statements in accordance with U.S. GAAP and reports its financial results in U.S. dollars. So references to dollars means U.S. dollars and the reserves, resources and production information are after royalties, unless otherwise noted. This morning, Doug Suttles, Encana's President and CEO; Sherri Brillon, our CFO; and Mike McAllister, our COO, will provide the highlights of our fourth quarter results and revised 2016 guidance before we open the call up for Q&As. I will now turn the call over to Doug Suttles. Douglas James Suttles - President, Chief Executive Officer & Director: Thanks, Brendan, and good morning, everyone. Encana finished 2015 strong both operationally and financially. As Sherri will discuss shortly, we have substantial liquidity and financial flexibility. Last year, we reduced debt by about $2 billion during what was a very challenging year for our industry. We have worked hard to have a strong balance sheet and we intend to keep it strong. We also beat our production milestone in our core four assets – the Permian, Eagle Ford, Duvernay and Montney – which in combination produced more than 274,000 barrels oil equivalent per day in the fourth quarter. The higher margin production from these four assets made up almost 70% of our total production in the fourth quarter. This was up from less…

We will now begin the question-and-answer session and go to the first caller. The first question is from Benny Wong. Please go ahead. Benny Wong - Morgan Stanley & Co. LLC: Yeah. Good morning. Just wondering if you can maybe talk a little bit about the expected 2016 exit rate or if not maybe give us a sense of trajectory into next year and maybe the profile of production over the course of this year. Douglas James Suttles - President, Chief Executive Officer & Director: Yeah, Benny. Thanks. Thanks for the question. I think probably as you can imagine what is at February 24 that we're already talking about 2017. We got a few months to go through the year. But our best estimate at the moment is, across our core four which is, as you know, what we focus on here, is from the fourth quarter of last year to the fourth quarter of this year, we'll probably see an approximate 10% decline. Our operating teams are doing an incredible job, as Mike talked about, about continuing to drive capital efficiency and lower the cost. And I think as you've seen, we've had a substantial reduction in capital, but we've held on to the majority of our production to driving those efficiencies. Benny Wong - Morgan Stanley & Co. LLC: Great. And any chance of maybe a per-play level sense of guidance production level in your – across your portfolio? Douglas James Suttles - President, Chief Executive Officer & Director: We don't have that for today, Benny. I'll have Brendan and the team follow up with you later. Benny Wong - Morgan Stanley & Co. LLC: Great. Thank you. Douglas James Suttles - President, Chief Executive Officer & Director: You bet.

Thank you. The following question is from Greg Pardy. Please go ahead.

Yeah. Thanks. Good morning. Maybe this is a follow-up to that last question, Doug, the 10% decline on production. So, is that pretty much evenly split between oil and liquids versus nat gas; like, i.e., is it 10% for both or would you expect a little more installation on the oil and liquids side? Douglas James Suttles - President, Chief Executive Officer & Director: Yeah, Greg. It's kind of back to Benny's question on across the assets. We haven't sort of yet given detail on each of the four. If you look across the year, what we're able to do, we obviously ended the year strong in all of those. Just as with our original guidance, the majority of the capital is focused in the Permian and the Eagle Ford in the year. Because of the shifting environment, we do have more capital in the first half than in the second half of the year, which also gives us flexibility if the environment improves. We can always hope.

Okay. Okay. No problem. You mentioned just the alteration in terms of the vertical drilling program in the Permian. But you also mentioned that you're working with the land owners. So, what does this mean in terms of land retention? I.e., how much acreage would you actually lose as a consequence of this? Douglas James Suttles - President, Chief Executive Officer & Director: Yeah, Greg. We're not losing any acreage here. What our land team has been able to do with the mineral owners out there is work with them to modify the lease requirements and terms. In some cases, we've substituted horizontal wells for vertical wells. In other cases, they just adjusted the time requirement and allowed us to push that back. So, what we've been able to do is take, what, just a couple of months ago we thought was going to be $150 million program to retain our land and convert it into a $50 million program. That's a part of how we've improved our capital efficiency in 2016, but we're not losing acreage with this plan.

Okay. Perfect. And maybe just to dig in a little bit on the capital side, how much carried capital then is embedded in the revised budget for the Montney and the Duvernay? Can you just remind me what the carried capital would have been at year end? And if you don't have it at your fingertips, I can follow up. Douglas James Suttles - President, Chief Executive Officer & Director: Yeah, we'll follow up on that. I'm kind of doing it by memory. I think we had at year end somewhere around $600 million in the Montney and about $150 million in the Duvernay. The programs in both the Duvernay and the Montney are relatively limited. A lot of the Montney capital in 2016 is actually in Alberta, which is not in the Mitsubishi JV, but those programs have been reduced.

Okay. And then last question for me then is, if you were to sell assets, further assets over the course of the year, does that extra dollar go into the bit? Does it go into essentially cash on the balance sheet, or is it a little bit of both? Douglas James Suttles - President, Chief Executive Officer & Director: Well, you know, Greg, other than the previously announced DJ sale, the plan really and the budget we've just talked about doesn't include asset divestitures. So, if you think – and clearly, we still have non-core assets. We would – as I think forward, I'd be really disappointed and surprised if for the second year in a row, even in a very tough market, our net does not go down – our net debt does not go down. It's almost certainly going to go down this year.

Okay. Perfect. Thanks very much.

Thank you. The following question is from Harry Majir (30:30). Please go ahead.

Hi. Good morning. Just my first question, so you have some borrowings on your credit line, but the credit facility doesn't come due for a few years. And as you noted, you don't have another bond matured until 2019. So, as you get the next round of asset sale proceeds in, are you considering using those to buy back some of your bonds in the market that are trading at a big discount to par, on the 41s (30:59) as low as $0.50 on the dollar, or are you still focused on paying down shorter-dated maturities? Douglas James Suttles - President, Chief Executive Officer & Director: Yeah, Harry (31:08). I mean, if I just took a moment and kind of walk through the balance sheet here to address your question, I think Sherri tried to outline this and I think did a nice job. Our credit facility of $4.5 billion was renewed last year through July of 2020, so a long time from now. We don't have any debt due to 2019, and most of our debt is due after 2030. In addition, I should just maybe reconfirm that we have no work underway and no plans to issue equity. I know that some people have been speculating on this. I would probably stress that, that seems to be raw speculation, but there are no plans underway at Encana to issue equity. And clearly, as we bring in proceeds from divestments, whether that's the DJ or others, we have a lot of flexibility. We haven't made any announcements around how we would use that in regards to our debt structure, but we obviously have a lot of options there.

Okay. So it sounds like that's – looking at some of that longer dated discount debt is certainly on the table. Is that fair to say? Douglas James Suttles - President, Chief Executive Officer & Director: Yeah. It's clearly an option on us. We're all aware of how that's trading, and we – obviously, how that traded shifted off the Moody's announcement and (32:24) reminded everyone. S&P reconfirmed us at BBB as did DBRS; that's out there, but we're clearly watching how that debt is trading.

Okay. Great. And I guess on that last point, there's one other rating agency out there, at least one that counts your bond indices where you guys don't currently have a rating; that's Fitch. Can you just give us at sense, are you in discussions with them to potentially get a rating there to keep yourselves in the investment grade indices? Is that something that's being talked about? Douglas James Suttles - President, Chief Executive Officer & Director: I don't think it's probably appropriate to comment on that, but we're very aware that Fitch is one of the other rating agencies which plays an important role in rating on bonds.

Okay. Fair enough. Thanks.

Thank you. The following question is from Jeffrey Campbell. Please go ahead.

Good morning. On slide 9, you described that Duvernay is increasingly material to production and cash flow. Could you add some color on this comment and maybe how you see the Duvernay in relative terms in comparison to the rest of the portfolio going forward? Douglas James Suttles - President, Chief Executive Officer & Director: Yeah, Jeff. I mean, I got to say Mike is a pretty modest guy because he blew right pass a pretty important number. If you saw, he said D&C cost of $7.9 million. If we just back this tape up just a while, just a couple of years ago that number was $25 million. Not too long ago we said we were aiming at $15 million, on our way to $12 million, and now we're sub-$8 million. When you look at that combined with 1.5 million barrel-ish type curves, condensate pricing that recedes in – if you actually look at our pricing, our realized price on crude in Canada is actually higher than in the United States, which is to show the value of condensate here. You combine that with the benefits of the carry too, this is very attractive. And clearly, we've been watching and working with the Alberta government on the royalty structure because that's an important part of the returns. We're encouraged by their recent announcement. There's still more detail to come. And us and others in the industry are actively working with the government on that detail. But this is a competitive play. As we mentioned late last fall, we had taken the decision to defer the next gas plant, which really controls the pace of growth. That decision in end of 2017, as we needed to see the results of the royalty review including the current environment where you're having to manage capital very closely. But this is a competitive asset. Its returns compete with the other three assets in our portfolio.

Okay. Thank you. Next thing I wanted to ask was just, in the Permian Basin, can you identify which zones are the major focus in 2016? Douglas James Suttles - President, Chief Executive Officer & Director: Yeah. For the most of our work, we're focusing on the Lower Spraberry and Martin County, and we're focused on the Wolfcamp B in Midland County. Mike mentioned we have – we pride ourselves on innovation and whether we invent it ourselves or copy it from others. And if you were in the Midland Basin today, south of Midland Texas, you would see an incredible sight, which is a drilling pad operated by Encana with four rigs drilling simultaneously as we speak, a 14-well pad, which we'll bring on in the second quarter of this year, which is focused in the Wolfcamp.

Okay. If I could ask one last one, this is a little bit of a higher-level question. Doug, you mentioned that there's another 20% staffing reduction upcoming, and it looks like – you mentioned the average production is going to be down about 10%. I just wondered, do you feel that you have Encana rightsized going forward, or is there still another possible downsizing of the company to come? Douglas James Suttles - President, Chief Executive Officer & Director: Jeff, first of all, I ought to say, and I know you guys know this, it's a tough time to be someone who works in the oil and gas industry. The job reduction is not only in Encana but across the industry have been as severe as I've ever seen in 33 years. And this – I hope people have empathy. These are real people with lives and families. Here at Encana, this will bring us to about 55% reduction from just over two years ago, and in my experience that's incredible. We actually not only look at how we can run our business as efficiently as possible, we benchmark ourselves. We now believe our corporate G&A with this new budget, we'll probably be at least 10% better on a per BOE basis in our closest competitor of companies of similar size and scale. And in many cases, half the cost of our competitors. This is something we focused in on. This reduction is part driven by driving more efficiencies and part driven by a significant reduction in capital. We've cut our capital by more than 50% from last year and a lot of our people are actually tied to the deployment of capital program which is met, we've had to reduce it. I would say, we have done some what I think are creative things. We're going to be deploying some of our staff in the field operations. We're going to be deploying some in the contractor roles and even service provider roles to maintain some of that talent because we do believe that we'll be spending more capital in the future than we are this year. In addition, we're doing things like offering employee sabbaticals where we hope to be able to bring these people back once prices begin to recover at some point in the future.

Thanks. That's a very detailed color. I appreciate it. Douglas James Suttles - President, Chief Executive Officer & Director: Thanks.

Thank you. The following question is from Jeoffrey Lambujon. Please go ahead. Jeoffrey Restituto Lambujon - Tudor, Pickering, Holt & Co. Securities, Inc.: Thanks. Good morning. On the budget, can you talk more specifically about the moving pieces in terms of what criteria was used in setting it? Is there a targeted level of cash flow or spend at a certain commodity deck? I know you've got the DJ Basin proceeds coming and you highlighted multiple times retaining balance sheet strength in the prepared remarks. So, is it more of a leveraged metric beyond the covenant you highlighted that we should think about? Douglas James Suttles - President, Chief Executive Officer & Director: Yeah, Jeoff. I think we kind of indicated this, I think, even back in December. So, first of all, I think Sherri stressed it pretty firmly that we've been paying attention to our balance sheet ever since the launch of our strategy. If you go back to these launch documents, it was one of the five core things we talked about back then. And if you look at what we've done since the fall of 2013, we've continued to improve that. Obviously, price environment has deteriorated, and we intend to make sure we maintain the balance sheet and maintain that liquidity that we've strongly referred to on this call. So that had a driving influence in here. Secondly, we're very, very focused on capital efficiency, production efficiency. I think we've mentioned to a number of you that one of the changes in our comp structure issue this year is that is a target measure. It's got real visibility in the organization, and Mike and his team focused very strongly on this as we adjusted capital. A good example of that is the Permian vertical program, which is…

Thank you. The following question is from Mike Dunn. Please go ahead.

Thanks. Good morning, everyone. A couple of questions from me. The transportation and processing expense guidance has been reduced. I don't believe you've talked about the specifics of why that's down versus your December guidance. I was wondering if that was maybe some new deals you've done in the Permian or if you could provide some specifics there? Douglas James Suttles - President, Chief Executive Officer & Director: Yeah, Mike. Yeah, great work by Rene and her team on this. A couple of things, one is we kind of highlighted in the comments earlier about the Haynesville and the flowthrough to that. The second thing just to mention here is our growth is in lower T&P areas, transportation and processing cost areas, so this is showing up. The third thing to note is, we do have a considerable amount of transportation and processing cost in Canada and those are in Canadian dollars. So, they're benefiting from lower foreign exchange rate right now. And then lastly, we're continuing to work aggressively to reduce our T&P cost. And you're just seeing the results of that flowthrough. I mean, I think as a number of you have noted, our T&P costs are higher than our lifting costs and our operating costs. We're very much aware of that and we've been working very, very hard to bring those down and we'll continue to do so.

Thanks, Doug. And second question, your four core plays exceeded that 270,000 BOE a day bogey. The Montney was, I guess, well ahead of your guidance. The Permian was a bit behind. Just wondering if you can talk to – it was a tower that was driving the Montney performance and maybe in the Permian whether that was weather or if you – what set you back there? Thanks. Douglas James Suttles - President, Chief Executive Officer & Director: Yean, Mike, I'll make a couple of comments and ask Mike McAllister to jump in. I mean, part of what helped us in the Montney was the – I think Mike mentioned, is the TCPL restrictions, one being well managed by – between our operating and our marketing team doing a great job working together to minimize the impact of that. And then secondly, those restrictions coming off late in the year. We have tremendous well performance out there, so being able to fully utilize that in our processing and compression capacity. In the Permian, a couple of things just to note, we did have kind of all – every month of the three months of the fourth quarter had significant weather events in the Permian. In addition, you may have heard us and a number of operators seemed to have ended up with some bad casing, and we ended up with some casing problems on some new wells which delayed bringing those well on. And then, lastly, we've talked about this a couple of times, these bigger completions we've been doing have actually slower ramp ups. They get to peak rate. And Mike, what did I miss there? Michael G. McAllister - Chief Operating Officer & Executive Vice President: I think you got it all there, Doug. Yeah. The casing issue accounted for about a third of the shortfall in the Permian, That's something not just affected Encana. I think it affected a number of companies in the industry who ended – during cracking operations, we ended up with some stress cracking in up-hole. That cause of that incident has been – that (45:13) failures, I should say, has been identified, and we put mitigating measures in place in terms of different steel, as well as changing our procedures. So we've got that fixed. And the other two components, as Doug mentioned, in the Permian one was weather, and then the other was type curves basically taking longer to clean up than we had planned.

Thanks, Mike. Thanks, Doug. That's all for me. Douglas James Suttles - President, Chief Executive Officer & Director: You bet.

Thank you. The following question is from Brian Singer. Please go ahead. Brian Singer - Goldman Sachs & Co.: Thank you. Good morning. With regards to the minimal impact the reduced CapEx guidance is having on production, can you just talk to whether your well count is changing at all in your core areas and by area what you're seeing on the well productivity side? In another words, is this – well count is going down, the well productivity is offsetting that number, is it just a pure service cost deflation-type move in your CapEx guidance? Douglas James Suttles - President, Chief Executive Officer & Director: Yeah. Hi, Brian. Yeah. No. Thanks for the question. A couple of thoughts and then hand over to Mike here to kind of fill in. The first thing to note is our previous guidance didn't have any DJ in it, so what we got is approximately 20,000 BOEs a day for the first six months of the year. So that's offsetting some of the decline from the additional capital. Then improvements in capital efficiency are actually driving – helping us recover from the rest of it, with a bit of improvement in our base operating performance. But the number of wells we're going to drill in all four plays is going down obviously with this amount of capital reduction as we go through the year versus our original plan Michael G. McAllister - Chief Operating Officer & Executive Vice President: Yeah. That's right, Doug. The well count is coming down. As we approach the way we looked at the budget and how we seriatim our decisions on a pad-by-pad basis, we really let basically the cash flow in first year, cash flow in the first two years really start driving our decisions which is…

Thank you. The following question is from Mike Rimell. Please go ahead.

Hi. Good morning. I'm just wondering if you can give me some color on the capital budget beyond 2016 that you think sort of would adequately support the four core plays? Like, I know 12 months ago, you talked about sort of a base level of capital spend – or sorry, six months ago, you talked about a base level of capital spending at $1.5 billion. Obviously, that's come down a bit. How should we think about that going forward? Douglas James Suttles - President, Chief Executive Officer & Director: Yeah, Mike. You know, it's – we're doing lots of work around this topic as everyone is and considering lots of options and alternatives. But when you look out in time, if you think this year at $1 billion 4Q to 4Q, we're going to see about a 10% decline in our core four. That sort of gives you some indication that to maintain or grow, that's going to take a bit more capital than that. But as Mike indicated, the cost per well continues to go down and our well performance continues to improve. So, it's a little hard to predict. I think it's more than $1 billion. I mean, when we look out in time, it's hard for – it kind of goes back to the organization question. It's difficult for me to believe if you think out – if you look out two to five years, that we're not spending more than this. And we're back to growing what is, in my view, one of the best portfolios in North America, but putting a precise number is a bit early. But it would be bigger than the number we're talking about for 2016.

Great. Thanks. And then, sorry, just one follow-up. In the Montney, as we look at your growth lines there, I mean, how much flexibility is in there, like how much are you tied to spend there? Douglas James Suttles - President, Chief Executive Officer & Director: We have two pieces at Montney, as you're aware. In British Columbia, we have our partnership with Mitsubishi and Cutbank Ridge, and we have a rolling five- year play in process with them which we work on and agree every year. We're largely on the plan we've agreed with them for quite some time. This year was basically a drill-to-fill program because our next expansion of compression capacity in Cutbank Ridge doesn't come on until 2017, the back end of next year. And in Alberta, which we've had – I think as we've talked about before, we've had some really exciting results in the Montney, but we are capacity-constrained there. We've been assessing that and monitoring the royalty review to decide what we do with that going forward. But in the short term, in 2016, relatively limited additional – potentially some, but not a lot, largely because of processing and compression constraints and some of that coming off next year.

Great. Thanks very much.

Thank you. The following question is from Jon Wolff. Please go ahead.

Hello. Douglas James Suttles - President, Chief Executive Officer & Director: Hi, Jon.

Good morning. How are you? Douglas James Suttles - President, Chief Executive Officer & Director: Good.

Thanks for the thorough update. A few follow-ons; one on the amount of sand proppant you're using. There was a – you talked about how gradual it was and maybe here in Canada in the past in terms of figuring out plays and you've gone from sort of, I don't know, 1,000 pounds per foot of stimulation, horizontal stimulation, to as much as 4,000 pounds and back off to 2,000 pounds and then you – wondering if you have any more information in terms of what the right number is and if that – if it makes a difference to what price environment we're in to calculate that? Douglas James Suttles - President, Chief Executive Officer & Director: You know, Jon, I'm going to let Mike handle most of the question because the CEO response is were using a lot, but a little less than we used to.

Okay. Douglas James Suttles - President, Chief Executive Officer & Director: I know that is – but let me let Mike help you out here. Michael G. McAllister - Chief Operating Officer & Executive Vice President: Hi there, Jon.

Hi. Michael G. McAllister - Chief Operating Officer & Executive Vice President: Yeah, I mean, obviously our sand trials and our optimal sand concentrations is varying play by play as well as zone by zone. So we're still a work in progress to a certain extent. If I kind of talk to, talk to the Montney, we've been tested from 1,000 to up to 2,000. That's still under evaluation. What I'm thinking in the Permian, again, I think we tested up to 4,000, but I sort of think about this year we're probably going to be anywhere between 1,000 to 2,500 pounds per foot. Again, that's going to vary county by county and also zone by zone as we learn more here. So still, still work underway. In the Eagle Ford, we're in that somewhere anywhere between 1,500 to 2,000 pounds per foot. Again, it's still worth, we're looking at optimizing in. As you move to the maturity window, sort of from the condensate to the oil window, that's going to vary as well. So, I mean, there's a lot of science still going on, a lot of learning still going on, but we kind of gave you sort of the range of what we're thinking about right now in the different play areas.

Okay. And in terms of... Douglas James Suttles - President, Chief Executive Officer & Director: The other thing – the only thing I'd add to Mike's comment, there is a – because you kind of point it at the right thing. There is a relationship between the commodity price and how big the completion should be. And we actually did a great deal with testing last year, understanding – and trying to understand the linkage between not only rate, but ultimate recovery from the wells and completion size. But clearly in lower prices, that tradeoff backs down some. And on average, we're probably going to be slightly smaller jobs this year than we did last year because of that.

That's helpful. You don't talk that much about Howard County, some others have. You obviously have a big position up there. Is there still active leasing going on? You want to tell us a little more about Howard? Douglas James Suttles - President, Chief Executive Officer & Director: Well, I think what I'd say is, first of all, I would probably never comment on what we're doing on acreage because it's an incredible and competitive place. We have had some – like others, some really good results in Howard County, and particularly more recently in the Wolfcamp A. We are focusing – I think that we have previous question on this. This year, it's more in Midland and Martin. But there's nothing wrong with Howard. I can tell you that. We've had some of our best well results in the Wolfcamp A and Howard County.

Got it. Very helpful. Thanks.

Thank you. At this time, we have completed the question-and-answer session, and we'll turn the call back to Mr. McCracken.

Thank you, ladies and gentlemen. This now concludes our call.