2011. In this annual information form - Encana

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Table of Contents Table of Contents ................................................................................................................................................................. 1 Introduction .......................................................................................................................................................................... 2 Corporate Structure .............................................................................................................................................................. 3 General Development of the Business................................................................................................................................... 4 Narrative Description of the Business .................................................................................................................................... 7 Canadian Division................................................................................................................................................... 8 USA Division......................................................................................................................................................... 12 Market Optimization .............................................................................................................................................. 16 Former Operations................................................................................................................................................ 17 Reserves and Other Oil and Gas Information......................................................................................................... 18 Acquisitions, Divestitures and Capital Expenditures................................................................................................ 19 Competitive Conditions ......................................................................................................................................... 20 Environmental Protection ...................................................................................................................................... 20 Social and Environmental Policies ......................................................................................................................... 21 Employees............................................................................................................................................................ 22 Foreign Operations ............................................................................................................................................... 22 Directors and Officers ......................................................................................................................................................... 23 Audit Committee Information............................................................................................................................................... 26 Description of Share Capital................................................................................................................................................ 28 Credit Ratings .................................................................................................................................................................... 30 Market for Securities........................................................................................................................................................... 31 Dividends ........................................................................................................................................................................... 31 Legal Proceedings.............................................................................................................................................................. 32 Risk Factors ....................................................................................................................................................................... 32 Transfer Agents and Registrars........................................................................................................................................... 38 Interest of Experts .............................................................................................................................................................. 38 Additional Information ......................................................................................................................................................... 38 Note Regarding Forward-Looking Statements...................................................................................................................... 39 Note Regarding Reserves Data and Other Oil and Gas Information...................................................................................... 40 Appendix A - Canadian Protocol Disclosure of Reserves Data and Other Oil and Gas Information ..................................... A-1 Appendix B - Report on Reserves Data by Independent Qualified Reserves Evaluators (Canadian Protocol)...................... B-1 Appendix C - Report of Management and Directors on Reserves Data and Other Information (Canadian Protocol)............. C-1 Appendix D - U.S. Protocol Disclosure of Reserves Data and Other Oil and Gas Information ............................................. D-1 Appendix E - Audit Committee Mandate ........................................................................................................................... E-1 Encana Corporation 1 Annual Information Form (prepared in US$)
Introduction This is the annual information form of Encana Corporation (“Encana” or the “Company”) for the year ended December 31, 2011. In this annual information form, unless otherwise specified or the context otherwise requires, reference to “Encana” or to the “Company” includes reference to subsidiaries of and partnership interests held by Encana Corporation and its subsidiaries. In this annual information form, daily natural gas volumes are referenced in either thousands of cubic feet (“Mcf”) per day (“Mcf/d”), millions of cubic feet (“MMcf”) per day (“MMcf/d”), or billions of cubic feet (“Bcf”) per day (“Bcf/d”). The term “liquids” is used to represent oil, natural gas liquids (“NGLs”) and condensate. Daily liquids volumes are referenced in either barrels (“bbls”) per day (“bbls/d”), thousands of barrels (“Mbbls”) per day (“Mbbls/d”) or millions of barrels (“MMbbls”) per day (“MMbbls/d”). Certain liquids volumes have been converted to thousands of cubic feet equivalent (“Mcfe”), millions of cubic feet equivalent (“MMcfe”) or billions of cubic feet equivalent (“Bcfe”) on the basis of one barrel (“bbl”) to six Mcf. Also, certain natural gas volumes have been converted to barrels of oil equivalent (“BOE”) on the same basis. Mcfe, MMcfe, Bcfe and BOE may be misleading, particularly if used in isolation. An Mcfe, MMcfe or Bcfe 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 wellhead. 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. On January 1, 2011, Encana adopted International Financial Reporting Standards (“IFRS”) for financial reporting purposes, using a transition date of January 1, 2010. The Company’s annual audited Consolidated Financial Statements for the year ended December 31, 2011, including 2010 required comparative information, have been prepared in accordance with IFRS, as issued by the International Accounting Standards Board ("IASB"). Prior to 2011, the Company prepared its consolidated financial statements in accordance with Canadian generally accepted accounting principles (“previous GAAP”). Unless otherwise indicated, all financial information included in this annual information form is determined using IFRS, which differ from U.S. generally accepted accounting principles (“U.S. GAAP”). Note 27 to Encana’s annual audited Consolidated Financial Statements for the year ended December 31, 2011 contains a discussion of the principal differences between Encana’s financial results calculated under IFRS and U.S. GAAP. Readers are directed to the sections titled “Note Regarding Forward-Looking Statements” and “Note Regarding Reserves Data and Other Oil and Gas Information”. Unless otherwise specified, all dollar amounts are expressed in United States (“U.S.”) dollars, all references to “dollars”, “$” or to “US$” are to U.S. dollars and all references to “C$” are to Canadian dollars. All proceeds from divestitures are provided on a before-tax basis. Encana Corporation 2 Annual Information Form (prepared in US$)
Page 1: Encana Corporation Annual Informati
Page 5 and 6: General Development of the Business
Page 7 and 8: Completed the divestiture of non-co
Page 9 and 10: Encana’s operations are focused o
Page 11 and 12: Production (After Royalties) Natura
Page 13 and 14: In 2010, Encana signed a deep cut p
Page 15 and 16: Production (After Royalties) Natura
Page 17 and 18: Market Optimization Market Optimiza
Page 19 and 20: Reserves and Other Oil and Gas Info
Page 21 and 22: Competitive Conditions All aspects
Page 23 and 24: A comprehensive community investmen
Page 25 and 26: (9) Mr. Harrison was a director of
Page 27 and 28: Audit Committee Information The ful
Page 29 and 30: External Auditor Service Fees The f
Page 31 and 32: Credit Ratings The following inform
Page 33 and 34: Legal Proceedings The Company is in
Page 35 and 36: Additionally, the U.S. and Canadian
Page 37 and 38: Encana does not operate all of its
Page 39 and 40: Transfer Agents and Registrars The
Page 41 and 42: Assumptions with respect to forward
Page 43 and 44: Reserves Data (Canadian Protocol) S
Page 45 and 46: Summary of Net Present Value of Fut
Page 47 and 48: Pricing Assumptions (Forecast Price
Page 49 and 50: Probable Reserves (Forecast Prices
Page 51 and 52: Undeveloped Reserves, Significant F
Page 53 and 54:
Abandonment, Tax and Costs Incurred
Page 55 and 56:
Landholdings with No Attributed Res
Page 57 and 58:
Production Volumes (Before Royaltie
Page 59 and 60:
Per-Unit Results (Before Royalties)
Page 61 and 62:
Netbacks by Country (Before Royalti
Page 63 and 64:
Executed as to our report referred
Page 65 and 66:
Appendix D - U.S. Protocol Disclosu
Page 67 and 68:
Notes: (1) Definitions: a. “Net
Page 69 and 70:
Standardized Measure of Discounted
Page 71 and 72:
Changes in Standardized Measure of
Page 73 and 74:
Capitalized Costs and Costs Incurre
Page 75 and 76:
Notes: (1) Fee lands are those land
Page 77 and 78:
Production Volumes (After Royalties
Page 79 and 80:
Netbacks by Country (After Royaltie
Page 81 and 82:
Appendix E - Audit Committee Mandat
Page 83 and 84:
Meetings Committee meetings may, by
Page 85 and 86:
Quarterly Financial Statements 3. R
Page 87 and 88:
22. Obtain and review a report from
Page 89:
Other Matters 38. Review and concur
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2011. In this annual information form - Encana

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