Good day, ladies and gentlemen, and thank you for standing by. Welcome to Encana Corporation's Third Quarter 2016 Results Conference Call. As a reminder, today's conference call is being recorded. At this time, all participants are in a listen-only mode. Following the presentation, we'll conduct a question-and-answer session. For members of the media attending in 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 this conference call may not be recorded or rebroadcast without the express consent of Encana Corporation. I would 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 third quarter 2016 results conference call. This call is being webcast and the slides are available on our website at encana.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, will provide the highlights of our third quarter results. Mike McAllister, our COO, will then provide some operational highlights; and Sherri Brillon, our CFO, will provide an overview of Encana's financial position before we open up the call for Q&As. I will now turn the call over to Doug Suttles.

Thanks, Brendan, and good morning, everyone. Thank you for joining us. We delivered very strong financial results during the quarter, which were driven by exceptional operational performance and continued capital and operating efficiencies. We are off to a great start on the plan we laid out just last month. Productivity and cost are already running ahead of the benchmarks we used in our plan. Our results this quarter demonstrate our ability to deliver quality returns and leading cash flow growth. Our cash flow in the quarter was 26% above the consensus expectation. We continued our track record of operational excellence, efficiency and active balance sheet management, and we expect to meet or exceed our 2016 guidance. Before we get into the details of our quarterly results, I'd like to take a minute to recap the key elements of our five-year plan. Encana's growth potential is second to none amongst our competitors. We expect to grow cash flow by more than 300% over the next five years by both increasing production and, more importantly, increasing our margins at a flat price stack. We expect that by the end of 2021, we will grow total company production by over 60%. This growth consumes a fraction of our 2,000 premium return inventory locations. These are wells that deliver at least a 35% after-tax rate of return at a flat $50 WTI oil price and a flat $3 NYMEX gas price, which translates to a corporate return in the mid to high-teens. We also expect our corporate margin to double at the same time. This is the total company margin. We focus on this because our investors can't buy a half-cycle well return or our asset level operating margins. These are important indicators, but our investors can only buy our all-in corporate returns and…

Thanks, Doug. Earlier this month, we gave a comprehensive update on our four core assets. Today, I'd like to give an update on our progress this quarter on maximizing capital and operating efficiency. We've been consistent for some time, pointing to the importance of efficiency as a key driver of value and returns. This means getting the best wells for the lowest costs. I'm pleased to say that in our first quarter since we laid out our growth plan, we are already running ahead of the efficiency we built into that plan. We believe there are four critical elements to the process of increasing productivity and lowering costs. It starts with levering our portfolio advantage. Our acreage is in the core of the best plays. Being in the best rocks is crucial to efficiency. We also use our multi-basin position to be on the cutting edge of our industry. We can rapidly deploy successful ideas and practices across our four assets. The second step is our innovation process. We believe strongly in learning while doing. Our teams are constantly looking for new ways of executing our work. The third step is continuous improvement. As we showed at our Investor Day, we are among the very select group of operators that have both the highest-performing wells combined with the lowest costs. We reached this leading position in all four assets by making better wells for lower cost quarter after quarter. Our experience tells us we'll continue to become more efficient. The final step is competitor benchmarking. Our acreage position in the core of the best plays means that we're levering the learnings from our competitors. We're very deliberate and intentional about this process. We tell our teams all the time: it doesn't have to be our idea to be a good…

Good morning and thanks, Mike. We are pleased with our financial performance this quarter. As Doug mentioned, our cash flow in the quarter was $252 million, which is a 38% increase from Q2. We continue to make tremendous progress reducing cash costs across the entire business. At our Investor Day, we lowered our 2016 guidance for operating transportation and processing expenses, and as Mike mentioned, we are now further lowering guidance for operating expense. Our operating teams continue to execute on the initiatives identified by our operating expense task force. In the last quarter we renegotiated our REX transportation contract. We are seeing the direct impact of this with our T&P cost down in Q3. This relentless focus on bringing costs down contributed to higher cash flow in Q3 versus Q2. Our administrative expense this quarter includes some one-time items and non-cash LTIs. We expect to maintain our G&A rate of $40 million to $45 million per quarter. During the quarter, we used proceeds from the sale of our DJ Basin and Gordondale assets, as well as our public offerings to repay our credit facilities in full. As a result, our interest expense on debt in the quarter was $72 million, which is $4 million lower than Q2. With respect to capital, we continue to be committed to a focused and efficient program. Each dollar spent is being allocated to generate quality returns. 98% of our capital this quarter was directed to our core four assets. As Mike demonstrated, we are seeing strong production performance. We now expect that our core four Q4 2015 to Q4 2016 decline rate will be 4%. This is less than half of our original expectation. Our hedging program provides increased confidence in our cash flow. The details are in our corporate presentation on our…

Thanks, Sherri. Our third quarter results reinforce Encana as a leading North American resource play company. We have tremendous depth in our premium return inventory with a portfolio of assets in the right places. Our approach to innovation is significantly increasing our well performance. We've had some pretty incredible results this quarter. At the same time, we continue to meaningfully reduce our D&C cost. We've also reached some impressive cash cost milestones. All told, our cash cost savings are over $600 million compared with just one year ago. These results demonstrate we are one of, if not the highest performing and lowest cost operators in each of our core four assets. Our multi-basin portfolio and market fundamentals work enables us to continue to manage market and portfolio risk. We are positioned to deliver sector-leading growth in returns. We have worked hard to build a business that is not dependent on price recovery to succeed. We are expanding margins as we continue to shift our portfolio commodity mix to a greater balance between oil and condensate and natural gas. We are set to double our corporate margin over the next five years at flat prices. And we have the financial capacity to exploit the inventory and capitalize on our operational excellence. Thanks for listening in on the call, and now we'd be happy to take your questions.

Thank you. We'll now begin the question-and-answer session and go to the first caller. The first question is from Jeoffrey Lambujon from Tudor, Pickering, Holt. Please go ahead. Jeoffrey Restituto Lambujon - Tudor, Pickering, Holt & Co. Securities, Inc.: Good morning. Thanks for taking my questions. In the Permian, definitely encouraging commentary on the brown sand showing no performance degradation versus the white sand. Just wondering if that's uniform across all zones or if you expect some variability as you test different zones across your acreage?

Yeah. Thanks for the question. Mike'll probably have a few comments, but we've actually tested brown or domestic sand in a number of plays now and the early well performance hasn't shown any difference in any of our wells or zones. But, Mike, anything to add there?

No, that's right, Doug. We've tested across all our plays and we're not seeing really any degradation at all with respect to well performance as a result of sand. And the real upside is the cost savings. As an example, in the Duvernay on a per-well basis we're saving over $130,000 per well as a result of using that sand. So really, really encouraged by the results. Jeoffrey Restituto Lambujon - Tudor, Pickering, Holt & Co. Securities, Inc.: Great. That's helpful. And then one follow-up separately on the Montney. Just looking at the mix shift pro forma for the Gordondale sale, just looking at that shift quarter-over-quarter, can you give us some context around that? Just trying to get a sense for if that's more one-off in nature for Q3 or something we should watch for going forward.

Yeah. And maybe what I'd do is get Brendan and his team to follow up with you on the details on that. But what we really did was, with the Gordondale sale, we actually sold an asset that produced a lot of NGLs and, of course, what we've been growing is in the Pipestone area which is predominantly condensate. And what we should see is that trend continue because our liquids growth in the Montney is just dominated by these higher condensate-gas ratio wells. I think Mike mentioned the 85 barrels a million, which is what we're drilling today. Jeoffrey Restituto Lambujon - Tudor, Pickering, Holt & Co. Securities, Inc.: Great. Thanks for the detail.

Thank you. We do have a question from Mike Dunn from GMP FirstEnergy. Please go ahead.

Thanks. Good morning, everyone. My question is on your lateral lengths, whether or not you've been pushing them higher in the Permian and Eagle Ford? And if so, just give us a sense of what range of lateral lengths you're drilling lately? Thanks.

Yeah, Mike, it varies. We're always trying to push out towards longer lengths but probably staying within 10,000 feet. Beyond there, we're not convinced that you can get the right kind of well performance and completion performance. So it's a mix, but just to give you maybe some sense, I think one of the wells we drilled in the Eagle Ford this quarter was over 9,000-foot lateral, but they tend to be shorter because of the nature of our land position. We've drilled a couple of 10,000s in the Permian as well, but – and our average well length in the Permian is a little higher than our type curve today. Probably one other thing to mention; for instance in the Permian, we are expecting, as we go to 2017, to be doing larger pads as a general rule. You may have caught that Mike talked about the Davidson pad. That's our 14-well pad. But next year we're going to have a number of pads in that similar scale as we drive efficiencies.

Great. That's all for me, Doug. Thanks.

Thanks, Mike.

Thank you. The next question is from Josh Silverstein from Deutsche Bank. Please go ahead.

Hey. Thanks. Good morning, guys. I know there were a couple moving parts this quarter as far as some of the Gordondale volumes coming off and then the Davidson pad having some downtime. Just trying to get a better understanding as to where the fourth quarter core four volumes are trending towards. I think as you mentioned, the increasing CapEx should help the Permian volumes, but I wasn't sure if there were any declines. Just trying to get a better sense as to the base expectations for 4Q, just to set up the kind of 15% to 20% growth numbers you guys talked about as far as an exit rate next year.

Yes, Josh. I mean, a couple things to think about actually. The capital spending in the third quarter was the lowest quarter of the year. As I mentioned, we've ramped up; we're almost at the 2017 activity levels now. By the end of this month, I think we'll be just one rig short of where we expect to be. And most of that incremental ramp is going to come in to the Montney next year as we ramp to fill the two new gas plants coming on at the end of the year. I think the best way to think about the fourth quarter is just use the guidance we've given on the core four for a 4% decline from the fourth quarter of last year. And I think the liquids mix should be on trend with what we've been seeing.

That's helpful. And then I know there's been a lot of activity recently over in Howard County and the Montney. Obviously, you guys have a big position there. Will you guys start to put some rigs over there? Any thoughts about activity for 2017?

Yes, we're going to have activity across the land base in the Permian next year. And really, this is all about efficient development of our inventory. We also will actually test a few new zones next year. We, at this point, expect to actually do some drilling in both the Clearfork and the Jo Mill in 2017. This is a minor amount as we continue to prove it up. But really, what we're trying to do is optimize capital efficiency, get the most production for the least cost, which is driving us towards bigger pads. But it does have activity across basically what we consider the four or five. We roll Upton into Midland. We consider that core as well but we tend to refer to it and talk to it as Midland.

Great. Thank you.

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

Thank you, operator. This now ends our call. Thank you for joining us today.

Thank you. The conference has now ended. Please disconnect your line at this time, and thank you for your participation.