EnCana generates first quarter cash flow of US$2.4 billion, or $3.17 per share - up 41 percent

Key resource play production up 17 percent

CALGARY, April 22 /CNW/ - EnCana Corporation (TSX - NYSE: ECA) continued
its strong performance in the first quarter with increases in cash flow and
operating earnings driven by increased natural gas and liquids production and
higher commodity prices.
"EnCana achieved outstanding operational and financial results during the
first quarter putting the company well on track to achieve its 2008 forecast.
These results continue to reinforce the strong value-generating capability of
our sustainable, low-risk resource play strategy. EnCana has assembled an
extensive portfolio of unconventional assets and our teams have a demonstrated
track record of disciplined execution excellence while maintaining a focus on
cost management," said Randy Eresman, EnCana's President - Chief Executive
Officer.
"Our resource plays continue to deliver excellent performance, driven by
our industry-leading positions in plays such as the Deep Bossier formation of
East Texas, the emerging Montney formation of Cutbank Ridge in northeast
British Columbia and Jonah in Wyoming. In addition, EnCana teams have recently
achieved some promising exploration results in a number of North American
shale plays, such as the Horn River in northeast B.C. We have built sizeable
land positions in various emerging shale plays and believe that over time they
have the potential to add significant depth to our very strong portfolio of
natural gas assets across the North American unconventional fairway. We are
clearly well positioned for the future."
     <<
First Quarter 2008 Highlights
-----------------------------
(all year-over-year comparisons are to the first quarter of 2007)
     Financial
     -   Cash flow increased 41 percent to $3.17 per share, or $2.4 billion
- Operating earnings were up 28 percent to $1.39 per share, or
$1.0 billion
- Net earnings of 12 cents per share were down 81 percent to
$93 million, primarily due to an unrealized mark-to-market loss on
risk management activities of $737 million after-tax
- Operating cash flow generated from the integrated oil business
totalled $170 million, comprised of $77 million from the upstream
operations, a 64 percent increase due to strong field prices, and
$93 million from the downstream business, a decrease of 15 percent,
due to weaker refining margins
- Capital investment was in line with guidance. It was up 25 percent to
$1.85 billion, primarily due to drilling a higher percentage of deep
and longer reach wells
- Free cash flow increased $271 million to $540 million (free cash flow
is defined in Note 1 on page 8)
- Realized natural gas prices were up 11 percent to $8.02 per thousand
cubic feet (Mcf) and realized liquids prices increased 63 percent to
$69.59 per barrel (bbl). These prices include financial hedges
- EnCana purchased 4.6 million shares at an average share price of
$66.80 under the Normal Course Issuer Bid, for a total cost of
$311 million
- Capital investment, operating expenses, administrative expenses and
depreciation, depletion and amortization (DD-A) expense increased as
a result of a 17 percent increase in the average value of the
Canadian dollar versus the U.S. dollar
- Quarterly dividend doubled to 40 cents per share
     Operating - Upstream
     -   Key resource play production was up 17 percent, with an 18 percent
increase in natural gas production and oil production up 10 percent
- Total natural gas production increased 10 percent to 3.7 billion
cubic feet per day (Bcf/d), up 14 percent per share
- Oil and natural gas liquids (NGLs) production increased 5 percent to
137,000 barrels per day (bbls/d), up 9 percent per share
- Integrated oil production grew 26 percent to 29,400 bbls/d at Foster
Creek and Christina Lake
- Operating and administrative costs of $1.53 per thousand cubic feet
equivalent (Mcfe), up 28 percent primarily due to higher long-term
incentive costs as a result of a higher share price, as well as an
appreciation of the value of the Canadian dollar compared to the U.S.
dollar
     Operating - Downstream
     -   Refined products averaged 435,000 bbls/d (217,500 bbls/d net to
EnCana), down 5 percent due to a scheduled turnaround at the Wood
River refinery in March, 2008
- Refinery crude utilization of 90 percent or 408,000 bbls/d crude
throughput (204,000 bbls/d net to EnCana), down 6 percent primarily
due to the Wood River turnaround
>>
     Natural gas production on track with 2008 forecast
     Natural gas production increased 10 percent in the first quarter to
3.7 Bcf/d, strongly positioning EnCana to achieve full-year guidance of
3.8 Bcf/d. Gas production in the U.S. increased 27 percent, benefiting from
incremental volumes from the Deep Bossier acquisition - which doubled EnCana's
interest to 100 percent - and drilling programs in the East Texas, Jonah and
Piceance resource plays. Production volumes in Canada remained relatively
unchanged with increases in coalbed methane (CBM), Cutbank Ridge, Bighorn and
Greater Sierra, offset by natural declines from Shallow Gas and conventional
properties.


     Integrated oil benefits from production increases and higher oil prices
     The integrated oil business generated $170 million in operating cash
flow, up from $161 million from the same quarter in 2007. The upstream
business benefited from an average realized heavy oil price of $59.67 per bbl,
up 79 percent from $33.28 per bbl. Operating cash flow from the downstream
business was impacted by weaker refining margins. The Chicago 3-2-1 crack
spread of $7.69 per bbl was down 40 percent from $12.90 per bbl. First quarter
oil production at Foster Creek and Christina Lake was up 26 percent to
29,400 bbls/d (net to EnCana) from the same period last year. The weaker
refining margins were offset by the higher upstream realized pricing, which
highlights the benefit of the company's integration strategy.


     Weyburn oil field becomes key resource play
     EnCana has designated the Weyburn oil field in Saskatchewan, one of the
largest oil fields in Canada, a key resource play. In addition to being a
prolific oil field that has been producing for more than 50 years, Weyburn's
enhanced oil recovery project is playing an important role in helping research
underground storage of carbon dioxide (CO2).
"This Weyburn oil field has caught the attention of the world as the
largest operating CO2 sequestration project. It is one of the most visited and
most studied reservoirs anywhere, so much so that it was recently visited by
Canadian Prime Minister Stephen Harper. It is a great example of a business
and a technologically-driven solution that improves oil recovery while
permanently storing CO2, a greenhouse gas," Eresman said.

IMPORTANT NOTE: Effective January 2, 2007, EnCana established an
integrated oil business with ConocoPhillips, which resulted in EnCana
contributing its interests in Foster Creek and Christina Lake into an
upstream partnership owned 50-50 by the two companies. Production and
wells drilled from 2006 have been adjusted on a pro forma basis to
reflect the integrated oil transaction. Per share amounts for cash flow
and earnings are on a diluted basis. EnCana reports in U.S. dollars
unless otherwise noted and follows U.S. protocols, which report
production, sales and reserves on an after-royalties basis. The company's
financial statements are prepared in accordance with Canadian generally
accepted accounting principles (GAAP).
     <<
-------------------------------------------------------------------------
Financial Summary - Total Consolidated
-------------------------------------------------------------------------
(for the three months ended March 31) Q1 Q1 %
($ millions, except per share amounts) 2008 2007 Change
-------------------------------------------------------------------------
Cash flow(1) 2,389 1,752 +36
Per share diluted 3.17 2.25 +41
-------------------------------------------------------------------------
Net earnings 93 497 -81
Per share diluted 0.12 0.64 -81
-------------------------------------------------------------------------
Operating earnings(1) 1,045 850 +23
Per share diluted 1.39 1.09 +28
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Earnings Reconciliation Summary - Total Consolidated
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Net earnings 93 497
(Add back losses - deduct gains)
Unrealized mark-to-market hedging gain
(loss), after-tax (737) (423)
Non-operating foreign exchange gain
(loss) after-tax (215) 11
Gain (loss) on discontinuance, after-tax - 59
-------------------------------------------------------------------------
Operating earnings(1) 1,045 850 +23
Per share diluted 1.39 1.09 +28
-------------------------------------------------------------------------
-------------------------------------------------------------------------
     (1) Cash flow and operating earnings are non-GAAP measures as defined in
Note 1 on Page 8.

-------------------------------------------------------------------------
Production - Drilling Summary
-------------------------------------------------------------------------
Total Consolidated
-------------------------------------------------------------------------
(for the three months ended March 31) Q1 Q1 %
(After royalties) 2008 2007 Change
-------------------------------------------------------------------------
Natural gas (MMcf/d) 3,733 3,400 +10
-------------------------------------------------------------------------
Natural gas production per 1,000
shares (Mcf) 453 398 +14
-------------------------------------------------------------------------
Oil and NGLs (Mbbls/d) 137 131 +5
-------------------------------------------------------------------------
Oil and NGLs production per 1,000
shares (Mcfe) 100 92 +9
-------------------------------------------------------------------------
Total production (MMcfe/d) 4,557 4,184 +9
-------------------------------------------------------------------------
Total per 1,000 shares (Mcfe) 553 490 +13
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Net wells drilled 1,143 1,264 -10
-------------------------------------------------------------------------
-------------------------------------------------------------------------

Key resource play natural gas production up 18 percent in first quarter
     First quarter natural gas production from key North American resource
plays increased 18 percent to 3.0 Bcf/d up from 2.6 Bcf/d in the same period
in 2007. East Texas experienced the largest growth at 165 percent as a result
of continued drilling success and incremental volumes from the Deep Bossier
acquisition. It was joined by strong performances at Bighorn in west central
Alberta, Fort Worth and CBM in central Alberta.

Growth from key North American resource plays
     -------------------------------------------------------------------------
Daily Production
------------------------------------------------------
2008 2007 2006
------------------------------------------------------
Resource Play Full Full
(After royalties) Q1 Year Q4 Q3 Q2 Q1 Year
-------------------------------------------------------------------------
Natural gas
(MMcf/d)
Jonah 595 557 612 588 523 504 464
Piceance 372 348 351 354 349 334 326
East Texas 273 143 187 144 139 103 99
Fort Worth 140 124 138 128 124 106 101
Greater Sierra 205 211 221 220 219 186 213
Cutbank Ridge(1) 271 258 283 269 248 232 189
Bighorn(1) 146 126 136 136 122 109 97
CBM 298 259 283 256 245 251 194
Shallow Gas 715 726 727 713 729 735 739
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Total natural
gas(1) (MMcf/d) 3,015 2,752 2,938 2,808 2,698 2,560 2,422
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Oil (Mbbls/d)
Foster Creek 27 24 25 26 25 20 18
Christina Lake 2 3 2 3 3 3 3
Pelican Lake 24 23 24 24 23 23 24
Weyburn(2) 14 15 14 15 14 15 15
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Total oil
(Mbbls/d)(2) 67 65 65 68 65 61 60
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Total
(MMcfe/d)(1,2) 3,417 3,142 3,328 3,210 3,088 2,926 2,782
-------------------------------------------------------------------------
% change from
prior period +2.7 +12.9 +3.7 +4.0 +5.5 +9.2
-------------------------------------------------------------------------
-------------------------------------------------------------------------
     (1) Key resource play production volumes in 2007 and 2006 for Cutbank
Ridge and Bighorn have been restated to include the addition of new
areas and zones that now qualify for key resource play inclusion.
(2) Total key resource play production volumes in 2007 and 2006 have been
restated to include the designation of Weyburn as an oil key resource
play.

Drilling activity in key North American resource plays
     -------------------------------------------------------------------------
Net Wells Drilled
------------------------------------------------------
2008 2007 2006
------------------------------------------------------
Resource Play Full Full
Q1 Year Q4 Q3 Q2 Q1 Year
-------------------------------------------------------------------------
Natural gas
Jonah 43 135 23 31 42 39 163
Piceance 83 286 77 72 72 65 220
East Texas 11 35 8 9 11 7 59
Fort Worth 21 75 15 17 29 14 97
Greater Sierra 36 109 27 27 32 23 115
Cutbank Ridge(1) 24 93 11 23 26 33 134
Bighorn(1) 30 62 6 18 10 28 58
CBM 251 1,079 330 323 18 408 729
Shallow Gas 496 1,914 649 608 241 416 1,310
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Total gas wells(1) 995 3,788 1,146 1,128 481 1,033 2,885
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Oil
Foster Creek 12 23 6 8 1 8 3
Christina Lake - 3 - 1 2 - 1
Pelican Lake - - - - - - -
Weyburn(2) 9 37 10 9 9 9 35
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Total oil
wells(1,2) 21 63 16 18 12 17 39
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Total(2) 1,016 3,851 1,162 1,146 493 1,050 2,924
-------------------------------------------------------------------------
-------------------------------------------------------------------------
     (1) Key resource play net wells drilled for Cutbank Ridge and Bighorn in
2007 and 2006 have been restated to include the addition of new areas
and zones that now qualify for key resource play inclusion.
(2) Total key resource play net wells drilled in 2007 and 2006 have been
restated to include the designation of Weyburn as an oil key resource
play.
>>



Emerging resource plays update
     Montney
     EnCana holds 548,000 acres covering the unconventional deep basin Montney
formation, with 240,000 net acres located within EnCana's core development
area near Dawson Creek, B.C. Current daily gas production from the deep basin
Montney is more than 120 million cubic feet per day (MMcf/d). EnCana has
tested the deep basin Montney play extensively over the last several years and
by incrementally applying advanced technology has reduced overall development
costs by 70 percent. To date, EnCana has developed just over 6,400 acres of
core land. EnCana drilled 13 horizontal wells in the first quarter and expects
to drill more than 50 horizontal wells targeting this formation in 2008.
EnCana has plans, pending future allocation of capital spending, to produce
between 500 MMcf/d and 1 Bcf/d from the area over the next five to 10 years.
     Horn River Basin
     EnCana holds more than 216,000 net acres in the Horn River Basin, a shale
gas play, located in northeastern B.C. In 2007 EnCana formed a venture with
Apache Corporation that resulted in Apache owning a 50 percent interest in the
majority of EnCana's lands. EnCana discovered the shale basin in 2003. EnCana
and Apache have been the most active drillers in the basin with six gross
wells drilled to the end of 2007. In the first quarter of 2008, Apache drilled
three earning wells with encouraging initial test results. EnCana is currently
drilling and completing four additional wells and results are expected later
in the year. Through B.C.'s infrastructure programs, an all-weather road was
built into the area, which will allow year-round access. EnCana is encouraged
by the Horn River results to date and expects to be able to provide additional
information about the play's commercial potential in the upcoming months.
     East Texas
     At East Texas, production grew as a result of an increase in the Deep
Bossier assets, which doubled EnCana's ownership to 100 percent, and from
strong performance from its wells. Five Deep Bossier wells brought on
production in the first quarter averaged initial flow rates of more than
25 MMcf/d, with one of the wells exceeding 60 MMcf/d. Two wells drilled in the
area successfully proved up the northern end of the Amoruso field. EnCana's
Amoruso plant was commissioned in February, increasing processing capacity to
450 MMcf/d.
     <<
-------------------------------------------------------------------------
First quarter 2008 natural gas and oil prices
-------------------------------------------------------------------------
Q1 Q1 %
Natural gas ($/Mcf) 2008 2007 Change
-------------------------------------------------------------------------
NYMEX 8.03 6.77 + 19
EnCana realized gas price(1) 8.02 7.24 + 11
-------------------------------------------------------------------------
     Oil and NGLs ($/bbl)
-------------------------------------------------------------------------
WTI 97.82 58.23 + 68
Western Canadian Select (WCS) 76.37 41.77 + 83
Differential WTI/WCS 21.45 16.46 + 30
EnCana realized liquids price(1) 69.59 42.59 + 63
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Chicago 3-2-1 crack spread ($bbl) 7.69 12.90 - 40
-------------------------------------------------------------------------
-------------------------------------------------------------------------
     (1) Realized prices include the impact of financial hedging
>>
     Price risk management
     Risk management positions at March 31, 2008 are presented in Note 16 to
the unaudited Interim Consolidated Financial Statements. In the first quarter
of 2008, EnCana's commodity price risk management measures resulted in
realized gains of approximately $13 million after-tax, composed of a
$62 million after-tax gain on gas and basis hedges, and a $49 million
after-tax loss on oil and other hedges.
     About 40 percent of remaining 2008 expected gas production hedged
     EnCana has hedged about 1.6 Bcf/d of expected gas production for the
remainder of the year at an average NYMEX equivalent price of $8.04 per Mcf.
EnCana also has about 23,000 bbls/d of expected 2008 oil production hedged
under fixed price contracts at an average West Texas Intermediate (WTI) of
$70.13 per bbl. This represents less than 20 percent of expected 2008 oil
production. This price hedging strategy helps reduce uncertainty in cash flow
during periods of commodity price volatility.
     U.S. Rockies and Canadian basis differential hedges

     North American natural gas prices are impacted by volatile pricing
disconnects caused primarily by transportation constraints between producing
regions and consuming regions. These price discounts are called basis
differentials. For 2008, EnCana has hedged 100 percent of its expected U.S.
Rockies basis exposure using a combination of downstream transportation and
basis hedges, including some hedges that are based on a percentage of NYMEX
prices. At March 31, 2008, U.S. basis hedges, a combination of Rockies,
Mid-Continent and San Juan instruments, had an effective average differential
of NYMEX less $1.31 per Mcf for the rest of 2008. EnCana has also hedged about
9 percent of its expected 2008 Canadian gas production at an average AECO
basis differential of 77 cents per Mcf.
     Corporate developments
----------------------
     Quarterly dividend of 40 cents per share declared
     EnCana's Board of Directors has declared a quarterly dividend of 40 cents
per share payable on June 30, 2008 to common shareholders of record as of
June 13, 2008. Based on the April 21, 2008 closing share price on the New York
Stock Exchange of $86.23, this represents an annualized yield of about
1.8 percent.
     Dividend Reinvestment Plan


     EnCana has established a dividend reinvestment plan (DRIP) for its common
shares. Information on registering for the DRIP is available on the company's
website at www.encana.com under Investor Relations - Shareholder Information -
Dividend Reinvestment Plan. Shareholders that register for the DRIP by June 6,
2008 (4 p.m. ET) will be entitled to have eligible second quarter dividends,
payable June 30, 2008, reinvested pursuant to the DRIP.
     Normal Course Issuer Bid
     In the first quarter of 2008, EnCana purchased for cancellation
4.6 million common shares at an average share price of $66.80 under the
company's Normal Course Issuer Bid for a total cost of $311 million.
     Foreign Exchange
     The average U.S./Canadian dollar exchange rate increased 17 percent to
$0.996 in the first quarter of this year compared to $0.854 in the first
quarter of 2007, increasing total capital investment by $163 million,
operating expenses by $48 million ($0.13 per Mcfe), administrative expenses by
$14 million ($0.04 per Mcfe), and DD-A expense by $90 million.
     EnCana invests in environmental innovation and numerous energy efficiency
initiatives
     EnCana is undertaking a number of environmental initiatives in 2008.
Through EnCana's Energy Efficiency Initiative, which is in its second year,
the company has budgeted to provide up to $50 million for projects that have
the potential to reduce emissions. In addition, in the first quarter the
company announced a $3 million investment in the Nova Scotia Tidal Power Test
Facility; a $3 million investment to support the testing of a diesel emission
reduction system; and a $7.5 million donation to the University of Alberta to
support environmental research through the creation of two chairs - one in
environmental engineering and a second in water resource sciences - plus
student scholarships. And, at a major environmental conference in March,
EnCana was recognized for its commitment to fiscal, social and environmental
responsibility with the GLOBE Foundation's award for corporate environmental
excellence.


     Financial strength
------------------
EnCana maintains a strong balance sheet, targeting a net
debt-to-capitalization ratio between 30 and 40 percent and a net
debt-to-adjusted-EBITDA multiple, on a trailing 12-month basis, of 1 to 2
times. At March 31, 2008, the company's net debt-to-capitalization ratio was
38 percent. This ratio was negatively impacted by unrealized mark-to-market
losses on risk management instruments. EnCana's net debt-to-adjusted-EBITDA
multiple, on a trailing 12-month basis, was 1.3 times at the end of the first
quarter. Based on current strip prices the company expects to be at the bottom
of its managed ranges by year-end.
In the quarter, EnCana invested $1.8 billion in capital on continued
development of the company's North American key resource plays and expansion
of downstream heavy oil processing capacity through its joint venture with
ConocoPhillips.
On January 18, 2008, EnCana completed a public offering in Canada of
senior unsecured medium term notes in the amount of C$750 million. The notes
have an interest rate of 5.80 percent and mature on January 18, 2018. The net
proceeds of the offering were used to repay a portion of EnCana's existing
bank and commercial paper indebtedness.
On March 11, 2008, EnCana filed a shelf prospectus whereby it may issue
up to $4 billion, or the equivalent in other currencies, of debt securities in
the U.S. The shelf prospectus replaces EnCana's $2 billion shelf prospectus,
which was fully utilized.
     <<
-------------------------------------------------------------------------
CONFERENCE CALL TODAY
8 a.m. Mountain Time (10 a.m. Eastern Time)
     EnCana Corporation will host a conference call today, Tuesday April 22,
2008, starting at 8 a.m. MT (10 a.m. ET). To participate, please dial
(866) 321-6651 (toll-free in North America) or (416) 642-5212
approximately 10 minutes prior to the conference call. An archived
recording of the call will be available from approximately 3:00 p.m. MT
on April 22 until midnight April 29, 2008 by dialling (888) 203-1112 or
(647) 436-0148 and entering access code 1634938.
     A live audio webcast of the conference call will also be available via
EnCana's website, www.encana.com, under Investor Relations. The webcast
will be archived for approximately 90 days.
-------------------------------------------------------------------------
     NOTE 1: Non-GAAP measures


     This news release contains references to cash flow, operating earnings,
free cash flow, net debt, capitalization and adjusted earnings before
interest, tax, depreciation and amortization (EBITDA).
- Cash flow is a non-GAAP measure defined as cash from operating
activities excluding net change in other assets and liabilities, net
change in non-cash working capital from continuing operations and net
change in non-cash working capital from discontinued operations.
- Operating earnings is a non-GAAP measure that shows net earnings
excluding non-operating items such as the after-tax impacts of a
gain/loss on discontinuance, the after-tax gain/loss of unrealized
mark-to-market accounting for derivative instruments, the after-tax
gain/loss on translation of U.S. dollar denominated debt issued from
Canada and the partnership contribution receivable, the after-tax
foreign exchange gain/loss on settlement of intercompany
transactions, future income tax on foreign exchange related to U.S.
dollar intercompany debt recognized for tax purposes only, and the
effect of changes in statutory income tax rates. Management believes
that these excluded items reduce the comparability of the company's
underlying financial performance between periods. The majority of
U.S. dollar debt issued from Canada has maturity dates in excess of
five years.
- Free cash flow is a non-GAAP measure that EnCana defines as cash flow
in excess of capital investment, excluding net acquisitions and
divestitures, and is used to determine the funds available for other
investing and/or financing activities.
- Net debt is a non-GAAP measure defined as long-term debt plus current
liabilities less current assets. Capitalization is a non-GAAP measure
defined as net debt plus shareholders' equity. Net debt to
capitalization and net debt to adjusted EBITDA are two ratios
management uses to steward the company's overall debt position as
measures of the company's overall financial strength.
- Adjusted EBITDA is a non-GAAP measure defined as net earnings from
continuing operations before gain on divestitures, income taxes,
foreign exchange gains or losses, interest net, accretion of asset
retirement obligation, and depreciation, depletion and amortization.
>>
     These measures have been described and presented in this news release in
order to provide shareholders and potential investors with additional
information regarding EnCana's liquidity and its ability to generate funds to
finance its operations.
     EnCana Corporation
     With an enterprise value of approximately $70 billion, EnCana is a
leading North American unconventional natural gas and integrated oil company.
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.
     ADVISORY REGARDING RESERVES DATA AND OTHER OIL AND GAS INFORMATION -
EnCana's disclosure of reserves data and other oil and gas information is made
in reliance on an exemption granted to EnCana by Canadian securities
regulatory authorities which permits it to provide such disclosure in
accordance with U.S. disclosure requirements. The information provided by
EnCana may differ from the corresponding information prepared in accordance
with Canadian disclosure standards under National Instrument 51-101 (NI
51-101). EnCana's reserves quantities represent net proved reserves calculated
using the standards contained in Regulation S-X of the U.S. Securities and
Exchange Commission. Further information about the differences between the
U.S. requirements and the NI 51-101 requirements is set forth under the
heading "Note Regarding Reserves Data and Other Oil and Gas Information" in
EnCana's Annual Information Form.
In this news release, certain crude 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). Also, certain natural gas volumes have been
converted to barrels of oil equivalent (BOE) on the same basis. BOE and 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.
     ADVISORY REGARDING FORWARD-LOOKING STATEMENTS - In the interests of
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: future economic and operating
performance (including per share growth, net debt-to-capitalization and net
debt-to-adjusted-EBITDA ratios, sustainable growth and returns, cash flow,
free cash flow, cash flow per share and increases in net asset value);
anticipated ability to meet the company's guidance forecasts; anticipated life
of proved reserves; anticipated growth and success of resource plays and the
expected characteristics of resource plays; anticipated reduction in
greenhouse gas emissions; anticipated oil recovery from Weyburn; anticipated
production for the Cutbank Ridge resource play; anticipated drilling and
production in the Horn River Basin; anticipated impact of climate change
legislation; anticipated production in East Texas; anticipated crude oil and
natural gas prices, including basis differentials for various regions;
anticipated expansion and production at Foster Creek and Christina Lake;
anticipated increased capacity for the Borger and Wood River refineries;
anticipated integrated oil cash flow; projections for future crack spreads and
anticipated refining profits; anticipated drilling inventory; expected
proportion of total production and cash flows contributed by natural gas;
anticipated success of EnCana's market risk mitigation strategy; anticipated
purchases pursuant to the Normal Course Issuer Bid and the source of funding
therefore; potential demand for natural gas; anticipated bitumen production in
2008 and beyond; anticipated drilling; potential capital expenditures and
investment; potential oil, natural gas and NGLs production in 2008 and beyond;
anticipated costs and inflationary pressures; potential risks associated with
drilling and references to potential exploration. 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
risks and uncertainties include, among other things: volatility of and
assumptions regarding oil and gas prices; assumptions based upon the company's
current guidance; fluctuations in currency and interest rates; product supply
and demand; market competition; risks inherent in the company's marketing
operations, including credit risks; imprecision of reserves estimates and
estimates of recoverable quantities of oil, natural gas and liquids from
resource plays and other sources not currently classified as proved reserves;
the ability of the company and ConocoPhillips to successfully manage and
operate the integrated North American oil business and the ability of the
parties to obtain necessary regulatory approvals; refining and marketing
margins; potential disruption or unexpected technical difficulties in
developing new products and manufacturing processes; potential failure of new
products to achieve acceptance in the market; unexpected cost increases or
technical difficulties in constructing or modifying manufacturing or refining
facilities; unexpected difficulties in manufacturing, transporting or refining
synthetic crude oil; risks associated with technology; the company's ability
to replace and expand oil and gas reserves; 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 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; the risk of war, hostilities, civil insurrection and instability
affecting countries in which the company operates and terrorist threats; risks
associated with existing and potential future lawsuits and regulatory actions
made against the company; and other risks and uncertainties described from
time to time in the reports and filings made with securities regulatory
authorities by EnCana. 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.
Furthermore, the forward-looking statements contained in this news
release are made as of the date of this news release, and, except as required
by law, EnCana does not undertake any obligation to update publicly or to
revise any of the included 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
statement.

<<
Interim Consolidated Financial Statements
(unaudited)
For the period ended March 31, 2008
     EnCana Corporation
     U.S. DOLLARS


First quarter report
for the period ended March 31, 2008
     CONSOLIDATED STATEMENT OF EARNINGS (unaudited)
                                                        Three Months Ended
March 31,
---------------------------
($ millions, except per share amounts) 2008 2007
-------------------------------------------------------------------------
     REVENUES, NET OF ROYALTIES           (Note 4)
Upstream $ 3,560 $ 2,739
Integrated Oil 2,253 1,556
Market Optimization 625 756
Corporate - Unrealized gain (loss)
on risk management (Note 16) (1,096) (615)
-------------------------------------------------------------------------
5,342 4,436
     EXPENSES                             (Note 4)
Production and mineral taxes 114 92
Transportation and selling 320 278
Operating 696 551
Purchased product 2,393 1,851
Depreciation, depletion and
amortization 1,035 843
Administrative 156 95
Interest, net (Note 6) 134 101
Accretion of asset retirement
obligation (Note 11) 21 14
Foreign exchange (gain) loss, net (Note 7) 95 (12)
(Gain) loss on divestitures (Note 5) - (59)
-------------------------------------------------------------------------
4,964 3,754
-------------------------------------------------------------------------
NET EARNINGS BEFORE INCOME TAX 378 682
Income tax expense (Note 8) 285 185
-------------------------------------------------------------------------
NET EARNINGS $ 93 $ 497
-------------------------------------------------------------------------
-------------------------------------------------------------------------
     NET EARNINGS PER COMMON SHARE       (Note 15)
Basic $ 0.12 $ 0.65
Diluted $ 0.12 $ 0.64
-------------------------------------------------------------------------
-------------------------------------------------------------------------
     See accompanying Notes to Consolidated Financial Statements.


     CONSOLIDATED STATEMENT OF RETAINED EARNINGS (unaudited)
                                                        Three Months Ended
March 31,
---------------------------
($ millions) 2008 2007
-------------------------------------------------------------------------
     RETAINED EARNINGS, BEGINNING OF YEAR          $     13,082  $     11,344
Net Earnings 93 497
Dividends on Common Shares (300) (153)
Charges for Normal Course
Issuer Bid (Note 12) (229) (816)
-------------------------------------------------------------------------
RETAINED EARNINGS, END OF PERIOD $ 12,646 $ 10,872
-------------------------------------------------------------------------
-------------------------------------------------------------------------
     CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (unaudited)
                                                        Three Months Ended
March 31,
---------------------------
($ millions) 2008 2007
-------------------------------------------------------------------------


     NET EARNINGS                                  $         93  $        497
OTHER COMPREHENSIVE INCOME, NET OF TAX
Foreign Currency Translation Adjustment (400) 111
-------------------------------------------------------------------------
COMPREHENSIVE INCOME $ (307) $ 608
-------------------------------------------------------------------------
-------------------------------------------------------------------------
     CONSOLIDATED STATEMENT OF ACCUMULATED OTHER COMPREHENSIVE INCOME
(unaudited)
                                                        Three Months Ended
March 31,
---------------------------
($ millions) 2008 2007
-------------------------------------------------------------------------
     ACCUMULATED OTHER COMPREHENSIVE INCOME,
BEGINNING OF YEAR $ 3,063 $ 1,375
Foreign Currency Translation Adjustment (400) 111
-------------------------------------------------------------------------
ACCUMULATED OTHER COMPREHENSIVE INCOME,
END OF PERIOD $ 2,663 $ 1,486
-------------------------------------------------------------------------
-------------------------------------------------------------------------
     See accompanying Notes to Consolidated Financial Statements.

CONSOLIDATED BALANCE SHEET (unaudited)
                                                          As at         As at
March 31, December 31,
($ millions) 2008 2007
-------------------------------------------------------------------------
     ASSETS
Current Assets
Cash and cash equivalents $ 889 $ 553
Accounts receivable and
accrued revenues 2,611 2,381
Current portion of partnership
contribution receivable 301 297
Risk management (Note 16) 113 385
Inventories (Note 9) 1,009 828
-------------------------------------------------------------------------
4,923 4,444
Property, Plant and
Equipment, net (Note 4) 35,963 35,865
Investments and Other Assets 583 607
Partnership Contribution Receivable 3,070 3,147
Risk Management (Note 16) 179 18
Goodwill 2,800 2,893
-------------------------------------------------------------------------
(Note 4) $ 47,518 $ 46,974
-------------------------------------------------------------------------
-------------------------------------------------------------------------
     LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
Accounts payable and accrued
liabilities $ 4,330 $ 3,982
Income tax payable 960 1,150
Current portion of partnership
contribution payable 293 288
Risk management (Note 16) 1,163 207
Current portion of
long-term debt (Note 10) 679 703
-------------------------------------------------------------------------
7,425 6,330
Long-Term Debt (Note 10) 9,428 8,840
Other Liabilities 340 242
Partnership Contribution Payable 3,088 3,163
Risk Management (Note 16) 11 29
Asset Retirement Obligation (Note 11) 1,404 1,458
Future Income Taxes 5,972 6,208
-------------------------------------------------------------------------
27,668 26,270
-------------------------------------------------------------------------
Shareholders' Equity
Share capital (Note 12) 4,539 4,479
Paid in surplus 2 80
Retained earnings 12,646 13,082
Accumulated other comprehensive income 2,663 3,063
-------------------------------------------------------------------------
Total Shareholders' Equity 19,850 20,704
-------------------------------------------------------------------------
$ 47,518 $ 46,974
-------------------------------------------------------------------------
-------------------------------------------------------------------------
     See accompanying Notes to Consolidated Financial Statements.
     CONSOLIDATED STATEMENT OF CASH FLOWS (unaudited)
                                                        Three Months Ended
March 31,
---------------------------
($ millions) 2008 2007
-------------------------------------------------------------------------
     OPERATING ACTIVITIES
Net earnings $ 93 $ 497
Depreciation, depletion and
amortization 1,035 843
Future income taxes (Note 8) (79) (190)
Unrealized (gain) loss on
risk management (Note 16) 1,093 614
Unrealized foreign exchange
(gain) loss 76 (3)
Accretion of asset retirement
obligation (Note 11) 21 14
(Gain) loss on divestitures (Note 5) - (59)
Other 150 36
Net change in other assets and
liabilities (93) 20
Net change in non-cash working
capital (538) 136
-------------------------------------------------------------------------
Cash From Operating Activities 1,758 1,908
-------------------------------------------------------------------------
     INVESTING ACTIVITIES
Capital expenditures (Note 4) (1,907) (1,490)
Proceeds from divestitures (Note 5) 72 281
Net change in investments and other 9 19
Net change in non-cash working capital 292 (58)
-------------------------------------------------------------------------
Cash (Used in) Investing Activities (1,534) (1,248)
-------------------------------------------------------------------------
     FINANCING ACTIVITIES
Net issuance (repayment) of
revolving long-term debt (59) -
Issuance of long-term debt (Note 10) 723 434
Issuance of common shares (Note 12) 63 76
Purchase of common shares (Note 12) (311) (1,094)
Dividends on common shares (300) (153)
Other - 11
-------------------------------------------------------------------------
Cash From (Used in) Financing
Activities 116 (726)
-------------------------------------------------------------------------
     FOREIGN EXCHANGE GAIN (LOSS)
ON CASH AND CASH EQUIVALENTS HELD
IN FOREIGN CURRENCY (4) 1
-------------------------------------------------------------------------
     INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS 336 (65)
CASH AND CASH EQUIVALENTS,
BEGINNING OF YEAR 553 402
-------------------------------------------------------------------------
CASH AND CASH EQUIVALENTS, END OF PERIOD $ 889 $ 337
-------------------------------------------------------------------------
-------------------------------------------------------------------------
     See accompanying Notes to Consolidated Financial Statements.

Notes to Consolidated Financial Statements (unaudited)
(All amounts in $ millions unless otherwise specified)
     1.  BASIS OF PRESENTATION
     The interim Consolidated Financial Statements include the accounts of
EnCana Corporation and its subsidiaries ("EnCana" or the "Company"), and
are presented in accordance with Canadian generally accepted accounting
principles. EnCana's operations are in the business of exploration for,
and development, production and marketing of natural gas, crude oil and
natural gas liquids ("NGLs"), refining operations and power generation
operations.
     The interim Consolidated Financial Statements have been prepared
following the same accounting policies and methods of computation as the
annual audited Consolidated Financial Statements for the year ended
December 31, 2007, except as noted below. The disclosures provided below
are incremental to those included with the annual audited Consolidated
Financial Statements. The interim Consolidated Financial Statements
should be read in conjunction with the annual audited Consolidated
Financial Statements and the notes thereto for the year ended
December 31, 2007.
     2. CHANGES IN ACCOUNTING POLICIES AND PRACTICES
     As disclosed in the December 31, 2007 annual audited Consolidated
Financial Statements, on January 1, 2008, the Company adopted the
following Canadian Institute of Chartered Accountants ("CICA") Handbook
Sections:
     -   "Inventories", Section 3031. The new standard replaces the previous
inventories standard and requires inventory to be valued on a first-
in, first-out or weighted average basis, which is consistent with
EnCana's former accounting policy. The new standard allows the
reversal of previous write-downs to net realizable value when there
is a subsequent increase in the value of inventories. The adoption of
this standard has had no material impact on EnCana's Consolidated
Financial Statements.
     -   "Financial Instruments - Presentation", Section 3863 and "Financial
Instruments - Disclosures", Section 3862. The new disclosure standard
increases EnCana's disclosure regarding the nature and extent of the
risks associated with financial instruments and how those risks are
managed (See Note 16). The new presentation standard carries forward
the former presentation requirements.
     -   "Capital Disclosures", Section 1535. The new standard requires EnCana
to disclose its objectives, policies and processes for managing its
capital structure (See Note 13).
     3.  RECENT ACCOUNTING PRONOUNCEMENTS
     As of January 1, 2009, EnCana will be required to adopt the CICA Handbook
Section 3064, "Goodwill and Intangible Assets", which will replace the
existing Goodwill and Intangible Assets standard. The new standard
revises the requirement for recognition, measurement, presentation and
disclosure of intangible assets. The adoption of this standard should not
have a material impact on EnCana's Consolidated Financial Statements.
     In January 2006, the CICA Accounting Standards Board ("AcSB") adopted a
strategic plan for the direction of accounting standards in Canada. As
part of that plan, the AcSB confirmed in February 2008 that International
Financial Reporting Standards ("IFRS") will replace Canadian GAAP in 2011
for profit-oriented Canadian publicly accountable enterprises. As EnCana
will be required to report its results in accordance with IFRS starting
in 2011, the Company is assessing the potential impacts of this
changeover and developing its plan accordingly.
     4.  SEGMENTED INFORMATION
     The Company has defined its continuing operations into the following
segments:
     -   Canada, United States and Other includes the Company's upstream
exploration for, and development and production of natural gas, crude
oil and NGLs and other related activities. The majority of the
Company's upstream operations are located in Canada and the United
States. Offshore and international exploration is mainly focused on
opportunities in Atlantic Canada, the Middle East and Europe.
     -   Integrated Oil is focused on two lines of business: the exploration
for, and development and production of bitumen in Canada using in-
situ recovery methods; and the refining of crude oil into petroleum
and chemical products located in the United States. This segment
represents EnCana's 50 percent interest in the joint venture with
ConocoPhillips.
     -   Market Optimization is conducted by the Midstream - Marketing
division. The Marketing groups' primary responsibility is the sale of
the Company's proprietary production. The results are included in the
Canada, United States and Integrated Oil segments. Correspondingly,
the Marketing groups also undertake market optimization activities
which comprise third-party purchases and sales of product that
provide operational flexibility for transportation commitments,
product type, delivery points and customer diversification. These
activities are reflected in the Market Optimization segment.
     -   Corporate includes unrealized gains or losses recorded on derivative
financial instruments. Once amounts are settled, the realized gains
and losses are recorded in the operating segment to which the
derivative instrument relates.
     Market Optimization markets substantially all of the Company's upstream
production to third-party customers. Transactions between business
segments are based on market values and eliminated on consolidation. The
tables in this note present financial information on an after
eliminations basis.

Results of Operations (For the three months ended March 31)
                                                 Upstream
--------------------------------------------------
Canada United States Other
-------------------------------------------------------------------------
2008 2007 2008 2007 2008 2007
-------------------------------------------------------------------------
     Revenues,
Net of Royalties $ 2,184 $ 1,763 $ 1,282 $ 885 $ 94 $ 91
Expenses
Production and
mineral taxes 18 28 96 64 - -
Transportation
and selling 85 80 115 66 - -
Operating 332 237 101 75 77 81
Purchased product - - - - - -
Depreciation,
depletion and
amortization 541 490 391 260 6 6
-------------------------------------------------------------------------
Segment Income
(Loss) $ 1,208 $ 928 $ 579 $ 420 $ 11 $ 4
-------------------------------------------------------------------------
-------------------------------------------------------------------------

Market
Total Upstream Integrated Oil Optimization
-------------------------------------------------------------------------
2008 2007 2008 2007 2008 2007
-------------------------------------------------------------------------
Revenues,
Net of Royalties $ 3,560 $ 2,739 $ 2,253 $ 1,556 $ 625 $ 756
Expenses
Production and
mineral taxes 114 92 - - - -
Transportation
and selling 200 146 120 124 - 8
Operating 510 393 177 152 11 7
Purchased product - - 1,786 1,119 607 732
Depreciation,
depletion and
amortization 938 756 72 66 4 3
-------------------------------------------------------------------------
Segment Income
(Loss) $ 1,798 $ 1,352 $ 98 $ 95 $ 3 $ 6
-------------------------------------------------------------------------
-------------------------------------------------------------------------

Corporate Consolidated
-------------------------------------------------------------------------
2008 2007 2008 2007
-------------------------------------------------------------------------
     Revenues, Net of Royalties            $(1,096) $  (615) $ 5,342  $ 4,436
Expenses
Production and mineral taxes - - 114 92
Transportation and selling - - 320 278
Operating (2) (1) 696 551
Purchased product - - 2,393 1,851
Depreciation, depletion and
amortization 21 18 1,035 843
-------------------------------------------------------------------------
Segment Income (Loss) $(1,115) $ (632) 784 821
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Administrative 156 95
Interest, net 134 101
Accretion of asset retirement
obligation 21 14
Foreign exchange (gain) loss, net 95 (12)
(Gain) loss on divestitures - (59)
-------------------------------------------------------------------------
406 139
-------------------------------------------------------------------------
Net Earnings Before Income Tax 378 682
Income tax expense 285 185
-------------------------------------------------------------------------
Net Earnings $ 93 $ 497
-------------------------------------------------------------------------
-------------------------------------------------------------------------

Results of Operations (For the three months ended March 31)
     Geographic and Product Information
                                              Produced Gas
-------------------------------------------------------------------------
Canada United States Total
-------------------------------------------------------------------------
2008 2007 2008 2007 2008 2007
-------------------------------------------------------------------------
     Revenues,
Net of Royalties $ 1,549 $ 1,388 $ 1,183 $ 831 $ 2,732 $ 2,219
Expenses
Production and
mineral taxes 8 20 87 58 95 78
Transportation
and selling 75 70 115 66 190 136
Operating 247 177 101 75 348 252
-------------------------------------------------------------------------
Operating Cash Flow $ 1,219 $ 1,121 $ 880 $ 632 $ 2,099 $ 1,753
-------------------------------------------------------------------------
-------------------------------------------------------------------------

Oil - NGLs
-------------------------------------------------------------------------
Canada United States Total
-------------------------------------------------------------------------
2008 2007 2008 2007 2008 2007
-------------------------------------------------------------------------
     Revenues,
Net of Royalties $ 635 $ 375 $ 99 $ 54 $ 734 $ 429
Expenses
Production and
mineral taxes 10 8 9 6 19 14
Transportation
and selling 10 10 - - 10 10
Operating 85 60 - - 85 60
-------------------------------------------------------------------------
Operating Cash Flow $ 530 $ 297 $ 90 $ 48 $ 620 $ 345
-------------------------------------------------------------------------
-------------------------------------------------------------------------

Integrated Oil
-------------------------------------------------------------------------
Downstream
Oil Refining Other
-------------------------------------------------------------------------
2008 2007 2008 2007 2008 2007
-------------------------------------------------------------------------


     Revenues,
Net of Royalties $ 238 $ 220 $ 2,046 $ 1,343 $ (31) $ (7)
Expenses
Transportation
and selling 120 124 - - - -
Operating 41 49 132 100 4 3
Purchased product - - 1,821 1,134 (35) (15)
-------------------------------------------------------------------------
Operating Cash Flow $ 77 $ 47 $ 93 $ 109 $ - $ 5
-------------------------------------------------------------------------
-------------------------------------------------------------------------

Integrated Oil
-------------------------------------------------------------------------
Total
-------------------------------------------------------------------------
2008 2007
-------------------------------------------------------------------------
     Revenues, Net of Royalties                              $ 2,253  $ 1,556
Expenses
Transportation and selling 120 124
Operating 177 152
Purchased product 1,786 1,119
-------------------------------------------------------------------------
Operating Cash Flow $ 170 $ 161
-------------------------------------------------------------------------
-------------------------------------------------------------------------

Capital Expenditures
                                                        Three Months Ended
March 31,
---------------------------
2008 2007
-------------------------------------------------------------------------


     Capital
Canada $ 1,069 $ 861
United States 519 439
Other 25 18
Integrated Oil 223 115
Market Optimization 2 1
Corporate 11 49
-------------------------------------------------------------------------
1,849 1,483
-------------------------------------------------------------------------
     Acquisition Capital
Canada 72 7
United States(x) (14) -
-------------------------------------------------------------------------
58 7
-------------------------------------------------------------------------
Total $ 1,907 $ 1,490
-------------------------------------------------------------------------
-------------------------------------------------------------------------
(x) Includes purchase price adjustments for the November 2007 Leor
acquisition in East Texas.

On November 20, 2007, EnCana acquired certain natural gas and land
interests in Texas for approximately $2.55 billion before closing
adjustments. The purchase was facilitated by an unrelated party, Brown
Kilgore Properties LLC ("Brown Kilgore"), which holds the majority of the
assets in trust for the Company in anticipation of a qualifying like kind
exchange for U.S. tax purposes. Pursuant to the agreement with Brown
Kilgore, EnCana operates the properties, receives all the revenue and
pays all of the expenses associated with the properties. The arrangement
with Brown Kilgore will be complete on May 18, 2008 and the assets will
be transferred to EnCana at that time. EnCana has determined that the
relationship with Brown Kilgore represents an interest in a Variable
Interest Entity ("VIE") and that EnCana is the primary beneficiary of the
VIE. EnCana has consolidated Brown Kilgore from the date of acquisition.
     Property, Plant and Equipment and Total Assets by Segment
                              Property, Plant
and Equipment Total Assets
-------------------------------------------------------
As at As at
-------------------------------------------------------
March 31, December 31, March 31, December 31,
2008 2007 2008 2007
-------------------------------------------------------------------------
Canada $ 17,365 $ 17,537 $ 21,087 $ 21,335
United States 11,979 11,879 13,203 12,948
Other 1,141 1,104 1,186 1,135
Integrated Oil 4,835 4,721 9,720 9,597
Market Optimization 163 171 569 478
Corporate 480 453 1,753 1,481
-------------------------------------------------------------------------
Total $ 35,963 $ 35,865 $ 47,518 $ 46,974
-------------------------------------------------------------------------
-------------------------------------------------------------------------

On February 9, 2007, EnCana announced that it had completed the next
phase in the development of The Bow office project with the sale of
project assets and has entered into a 25 year lease agreement with a
third party developer. As at March 31, 2008, Corporate Property, Plant
and Equipment and Total Assets includes EnCana's accrual to date of
$185 million ($147 million at December 31, 2007) related to this office
project as an asset under construction.


     On January 4, 2008, EnCana signed the contract for the production field
centre ("PFC") for the Deep Panuke project. As at March 31, 2008, Other
Property, Plant, and Equipment and Total Assets includes EnCana's accrual
to date of $34 million related to this offshore facility as an asset
under construction.
     Corresponding liabilities for these projects are included in Other
Liabilities in the Consolidated Balance Sheet. There is no effect on the
Company's net earnings or cash flows related to the capitalization of The
Bow office project or the Deep Panuke PFC.
     5.  DIVESTITURES
     Total year-to-date proceeds received on sale of assets and investments
were $72 million (2007 - $281 million) as described below:
     Canada and United States
     In 2008, the Company completed the divestiture of mature conventional oil
and natural gas assets for proceeds of $72 million (2007 - $17 million).
     Other
     In January 2007, the Company completed the sale of its interests in Chad,
properties that were in the pre-production stage, for proceeds of
$207 million which resulted in a gain on sale of $59 million.
     Corporate


     In February 2007, the Company sold The Bow office project assets for
proceeds of approximately $57 million, representing its investment at the
date of sale. Refer to Note 4 for further discussion of The Bow office
project assets.
     6.  INTEREST, NET
                                                        Three Months Ended
March 31,
---------------------------
2008 2007
-------------------------------------------------------------------------
     Interest Expense - Long-Term Debt             $        140  $        100
Interest Expense - Other (x) 54 63
Interest Income(x) (60) (62)
-------------------------------------------------------------------------
$ 134 $ 101
-------------------------------------------------------------------------
-------------------------------------------------------------------------
(x) Interest Expense - Other and Interest Income are primarily due to the
Partnership Contribution Payable and Receivable, respectively.

7. FOREIGN EXCHANGE (GAIN) LOSS, NET
                                                        Three Months Ended
March 31,
---------------------------
2008 2007
-------------------------------------------------------------------------


     Unrealized Foreign Exchange (Gain) Loss on:
Translation of U.S. dollar debt
issued from Canada $ 217 $ (41)
Translation of U.S. dollar partnership
contribution receivable issued from Canada (143) 38
Other Foreign Exchange (Gain) Loss 21 (9)
-------------------------------------------------------------------------
$ 95 $ (12)
-------------------------------------------------------------------------
-------------------------------------------------------------------------

8. INCOME TAXES
     The provision for income taxes is as follows:
                                                        Three Months Ended
March 31,
---------------------------
2008 2007
-------------------------------------------------------------------------
     Current
Canada $ 234 $ 282
United States 129 92
Other Countries 1 1
-------------------------------------------------------------------------
Total Current Tax 364 375
-------------------------------------------------------------------------


     Future                                                 (79)         (190)
-------------------------------------------------------------------------
$ 285 $ 185
-------------------------------------------------------------------------
-------------------------------------------------------------------------
     The following table reconciles income taxes calculated at the Canadian
statutory rate with the actual income taxes:
                                                        Three Months Ended
March 31,
---------------------------
2008 2007
-------------------------------------------------------------------------
     Net Earnings Before Income Tax                $        378  $        682
Canadian Statutory Rate 29.7% 32.3%
-------------------------------------------------------------------------
Expected Income Tax 112 220
     Effect on Taxes Resulting from:
Statutory and other rate differences 3 5
Non-taxable downstream partnership income 1 (6)
International financing (80) (15)
Foreign exchange gains not included in
net earnings 156 -
Non-taxable capital (gains) losses 15 (20)
Other 78 1
-------------------------------------------------------------------------
$ 285 $ 185
-------------------------------------------------------------------------
Effective Tax Rate 75.4% 27.1%
-------------------------------------------------------------------------
-------------------------------------------------------------------------

9. INVENTORIES
As at As at
March 31, December 31,
2008 2007
-------------------------------------------------------------------------
     Product
United States $ - $ 2
Integrated Oil 794 646
Market Optimization 214 180
Parts and Supplies 1 -
-------------------------------------------------------------------------
$ 1,009 $ 828
-------------------------------------------------------------------------
-------------------------------------------------------------------------

10. LONG-TERM DEBT
As at As at
March 31, December 31,
2008 2007
-------------------------------------------------------------------------
     Canadian Dollar Denominated Debt
Revolving credit and term loan borrowings $ 1,621 $ 1,506
Unsecured notes 1,824 1,138
-------------------------------------------------------------------------
3,445 2,644
-------------------------------------------------------------------------
     U.S. Dollar Denominated Debt
Revolving credit and term loan borrowings 263 495
Unsecured notes 6,421 6,421
-------------------------------------------------------------------------
6,684 6,916
-------------------------------------------------------------------------
     Increase in Value of Debt Acquired(x)                   62            66
Debt Discounts and Financing Costs (84) (83)
Current Portion of Long-Term Debt (679) (703)
-------------------------------------------------------------------------
$ 9,428 $ 8,840
-------------------------------------------------------------------------
-------------------------------------------------------------------------
(x) Certain of the notes and debentures of EnCana were acquired in
business combinations and were accounted for at their fair value at
the dates of acquisition. The difference between the fair value and
the principal amount of the debt is being amortized over the
remaining life of the outstanding debt acquired, approximately
21 years.
     On January 18, 2008, EnCana completed a public offering in Canada of
senior unsecured medium term notes in the aggregate principal amount of
C$750 million. The notes have a coupon rate of 5.80 percent and mature on
January 18, 2018.
     11. ASSET RETIREMENT OBLIGATION
     The following table presents the reconciliation of the beginning and
ending aggregate carrying amount of the obligation associated with the
retirement of oil and gas assets and refining facilities:
                                                          As at         As at
March 31, December 31,
2008 2007
-------------------------------------------------------------------------
     Asset Retirement Obligation,
Beginning of Year $ 1,458 $ 1,051
Liabilities Incurred 19 89
Liabilities Settled (41) (100)
Liabilities Divested (2) -
Change in Estimated Future Cash Flows (5) 184
Accretion Expense 21 64
Other (46) 170
-------------------------------------------------------------------------
Asset Retirement Obligation, End of Period $ 1,404 $ 1,458
-------------------------------------------------------------------------
-------------------------------------------------------------------------

12. SHARE CAPITAL
                                        March 31, 2008      December 31, 2007
-------------------------------------------
(millions) Number Amount Number Amount
-------------------------------------------------------------------------
     Common Shares Outstanding,
Beginning of Year 750.2 $ 4,479 777.9 $ 4,587
Common Shares Issued under
Option Plans 2.4 63 8.3 176
Stock-Based Compensation - 9 - 17
Common Shares Purchased (2.6) (12) (36.0) (301)
-------------------------------------------------------------------------
Common Shares Outstanding,
End of Period 750.0 $ 4,539 750.2 $ 4,479
-------------------------------------------------------------------------
-------------------------------------------------------------------------
     Normal Course Issuer Bid
     To March 31, 2008, the Company purchased 4.6 million Common Shares for
total consideration of approximately $311 million. Of the amount paid,
$28 million was charged to Share capital and $283 million was charged to
Retained earnings. Included in the Common Shares Purchased in 2008 are
2.0 million Common Shares distributed (2007 - 2.9 million), valued at
$16 million (2007 - $24 million), from the EnCana Employee Benefit Plan
Trust that vested under EnCana's Performance Share Unit Plan (See Note
14). For these Common Shares distributed, there was a $54 million
adjustment to Retained earnings (2007 - $82 million) with a reduction to
Paid in surplus of $70 million (2007 - $106 million).
     EnCana has received regulatory approval each year under Canadian
securities laws to purchase Common Shares under six consecutive Normal
Course Issuer Bids ("Bids"). EnCana is entitled to purchase, for
cancellation, up to approximately 75.1 million Common Shares under the
renewed Bid which commenced on November 13, 2007 and terminates on
November 12, 2008.
     Stock Options

     EnCana has stock-based compensation plans that allow employees to
purchase Common Shares of the Company. Option exercise prices approximate
the market price for the Common Shares on the date the options were
issued. Options granted under the plans are generally fully exercisable
after three years and expire five years after the date granted. Options
granted under predecessor and/or related company replacement plans expire
up to 10 years from the date the options were granted.


     The following tables summarize the information about options to purchase
Common Shares that do not have Tandem Share Appreciation Rights ("TSARs")
attached to them at March 31, 2008. Information related to TSARs is
included in Note 14.
                                                                     Weighted
Stock Average
Options Exercise
(millions) Price (C$)
-------------------------------------------------------------------------
     Outstanding, Beginning of Year                         3.4         21.82
Exercised (2.4) 23.84
Outstanding, End of Period 1.0 17.33
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Exercisable, End of Period 1.0 17.33
-------------------------------------------------------------------------
-------------------------------------------------------------------------

Outstanding Options Exercisable Options
-------------------------------------------------------
Weighted Weighted
Number of Average Average Number of Weighted
Options Remaining Exercise Options Out- Average
Range of Outstanding Contractual Price standing Exercise
Exercise Price(C$) (millions) Life (years) (C$) (millions) Price(C$)
-------------------------------------------------------------------------
     11.00 to 21.99            0.5          1.6   11.58         0.5     11.58
22.00 to 23.99 0.4 0.1 23.78 0.4 23.78
24.00 to 25.99 0.1 0.5 25.20 0.1 25.20
-------------------------------------------------------------------------
1.0 0.9 17.33 1.0 17.33
-------------------------------------------------------------------------
-------------------------------------------------------------------------


     At March 31, 2008, the balance in Paid in surplus relates to stock-based
compensation programs.
     13. CAPITAL STRUCTURE
     The Company's capital structure is comprised of Shareholders' Equity plus
Long-Term Debt. The Company's objectives when managing its capital
structure are to:
     i)  maintain financial flexibility so as to preserve EnCana's access to
capital markets and its ability to meet its financial obligations;
and
     ii) finance internally generated growth as well as potential
acquisitions.
     The Company monitors its capital structure and short-term financing
requirements using non-GAAP financial metrics consisting of Net Debt to
Capitalization and Net Debt to Adjusted Earnings Before Interest, Taxes,
Depreciation and Amortization ("EBITDA"). The metrics are used to steward
the Company's overall debt position as measures of the Company's overall
financial strength.
     EnCana targets a Net Debt to Capitalization ratio of between 30 and
40 percent that is calculated as follows:
                                                   ---------------------------
As at
---------------------------
March 31, December 31,
2008 2007
-------------------------------------------------------------------------
     Long-Term Debt, excluding current portion     $      9,428  $      8,840
Less: Working capital (2,502) (1,886)
-------------------------------------------------------------------------
Net Debt 11,930 10,726
Total Shareholders' Equity 19,850 20,704
-------------------------------------------------------------------------
Total Capitalization $ 31,780 $ 31,430
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Net Debt to Capitalization ratio 38% 34%
-------------------------------------------------------------------------
-------------------------------------------------------------------------
     EnCana's Net Debt to Capitalization ratio increased to 38 percent from
34 percent at December 31, 2007 primarily due to unrealized mark-to-
market losses on risk management instruments which increased Net Debt.
Excluding this impact, the Net Debt to Capitalization ratio would have
been 35 percent at March 31, 2008 and would have remained unchanged at
34 percent as at December 31, 2007.
     EnCana targets a Net Debt to Adjusted EBITDA of 1.0 to 2.0 times. At
March 31, 2008, the Net Debt to Adjusted EBITDA was 1.3x (December 31,
2007 - 1.2x) calculated on a trailing twelve-month basis as follows:
                                                   ---------------------------
As at
---------------------------
March 31, December 31,
2008 2007
-------------------------------------------------------------------------
     Net Debt                                      $     11,930  $     10,726
-------------------------------------------------------------------------
     Net Earnings from Continuing Operations       $      3,480  $      3,884
Add (deduct):
Interest, net 461 428
Income tax expense 1,037 937
Depreciation, depletion and amortization 4,008 3,816
Accretion of asset retirement obligation 71 64
Foreign exchange (gain) loss, net (57) (164)
(Gain) loss on divestitures (6) (65)
-------------------------------------------------------------------------
Adjusted EBITDA $ 8,994 $ 8,900
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Net Debt to Adjusted EBITDA 1.3x 1.2x
-------------------------------------------------------------------------
-------------------------------------------------------------------------
     EnCana manages its capital structure and makes adjustments according to
market conditions to maintain flexibility while achieving the objectives
stated above. To manage the capital structure, the Company may adjust
capital spending, adjust dividends paid to shareholders, purchase shares
for cancellation pursuant to normal course issuer bids, issue new shares,
issue new debt or repay existing debt.
     The Company's capital management objectives, evaluation measures,
definitions and targets have remained unchanged over the periods
presented. EnCana is subject to certain financial covenants in its
credit facility agreements and is in compliance with all financial
covenants.
     14. COMPENSATION PLANS
     The tables below outline certain information related to EnCana's
compensation plans at March 31, 2008. Additional information is contained
in Note 17 of the Company's annual audited Consolidated Financial
Statements for the year ended December 31, 2007.
     A)  Pensions

     The following table summarizes the net benefit plan expense:
                                                        Three Months Ended
March 31,
---------------------------
2008 2007
-------------------------------------------------------------------------


     Current Service Cost                          $          4  $          4
Interest Cost 5 4
Expected Return on Plan Assets (5) (4)
Expected Actuarial Loss on Accrued
Benefit Obligation 1 1
Expected Amortization of Past Service Costs 1 -
Amortization of Transitional Obligation (1) -
Expense for Defined Contribution Plan 10 7
-------------------------------------------------------------------------
Net Benefit Plan Expense $ 15 $ 12
-------------------------------------------------------------------------
-------------------------------------------------------------------------
     For the period ended March 31, 2008, no contributions have been made to
the defined benefit pension plans (2007 - nil).
     B) Tandem Share Appreciation Rights ("TSARs")
     The following table summarizes the information about TSARs at March 31,
2008:


                                                                     Weighted
Average
Outstanding Exercise
TSARs Price
-------------------------------------------------------------------------
     Canadian Dollar Denominated (C$)
Outstanding, Beginning of Year 18,854,141 50.49
Granted 3,794,570 69.40
Exercised - SARs (1,841,136) 43.43
Exercised - Options (21,285) 41.22
Forfeited (86,111) 54.31
-------------------------------------------------------------------------
Outstanding, End of Period 20,700,179 54.01
-------------------------------------------------------------------------
Exercisable, End of Period 9,037,534 45.06
-------------------------------------------------------------------------
-------------------------------------------------------------------------
     For the period ended March 31, 2008, EnCana recorded compensation costs
of $169 million related to the outstanding TSARs (2007 - $58 million).
     C) Performance Tandem Share Appreciation Rights ("Performance TSARs")
     The following table summarizes the information about Performance TSARs at
March 31, 2008:


                                                                     Weighted
Average
Outstanding Exercise
TSARs Price
-------------------------------------------------------------------------
     Canadian Dollar Denominated (C$)
Outstanding, Beginning of Year 6,930,925 56.09
Granted 7,058,540 69.40
Exercised - SARs (163,471) 56.09
Forfeited (360,713) 57.57
-------------------------------------------------------------------------
Outstanding, End of Period 13,465,281 63.03
-------------------------------------------------------------------------
Exercisable, End of Period 1,597,657 56.09
-------------------------------------------------------------------------
-------------------------------------------------------------------------
     For the period ended March 31, 2008, EnCana recorded compensation costs
of $46 million related to the outstanding Performance TSARs (2007 -
$2 million).
     D) Share Appreciation Rights ("SARs")
     In 2008, EnCana granted SARs to certain employees which entitles the
employee to receive a cash payment equal to the excess of the market
price of EnCana's Common Shares at the time of exercise over the grant
price. SARs are exercisable at 30 percent of the number granted after one
year, an additional 30 percent of the number granted after two years and
are fully exercisable after three years and expire five years after the
grant date.
     The following table summarizes the information about SARs at March 31,
2008:
                                                                     Weighted
Average
Outstanding Exercise
SARs Price
-------------------------------------------------------------------------
     Canadian Dollar Denominated (C$)
Outstanding, Beginning of Year - -
Granted 846,015 69.46
Forfeited (15,200) 69.40
-------------------------------------------------------------------------
Outstanding, End of Period 830,815 69.46
-------------------------------------------------------------------------
Exercisable, End of Period - -
-------------------------------------------------------------------------
-------------------------------------------------------------------------
     For the period ended March 31, 2008, EnCana recorded compensation costs
of $1 million related to the outstanding SARs (2007 - nil).
     E) Performance Share Appreciation Rights ("Performance SARs")
     In 2008, EnCana granted Performance SARs to certain employees which
entitles the employee to receive a cash payment equal to the excess of
the market price of EnCana's Common Shares at the time of exercise over
the grant price. Performance SARs vest and expire under the same terms
and service conditions as SARs and are also subject to EnCana attaining
prescribed performance relative to pre-determined key measures.
Performance SARs that do not vest when eligible are forfeited.
     The following table summarizes the information about Performance SARs at
March 31, 2008:
                                                                     Weighted
Average
Outstanding Exercise
SARs Price
-------------------------------------------------------------------------
     Canadian Dollar Denominated (C$)
Outstanding, Beginning of Year - -
Granted 1,677,030 69.40
Forfeited (30,400) 69.40
-------------------------------------------------------------------------
Outstanding, End of Period 1,646,630 69.40
-------------------------------------------------------------------------
Exercisable, End of Period - -
-------------------------------------------------------------------------
-------------------------------------------------------------------------
     For the period ended March 31, 2008, EnCana recorded compensation costs
of $1 million related to the outstanding Performance SARs (2007 - nil).
     F) Deferred Share Units ("DSUs")
     The following table summarizes the information about DSUs at March 31,
2008:


                                                    Outstanding       Average
DSUs Share Price
-------------------------------------------------------------------------
     Canadian Dollar Denominated (C$)
Outstanding, Beginning of Year 589,174 33.78
Granted, Directors 76,165 66.19
Units, in Lieu of Dividends 3,353 78.20
-------------------------------------------------------------------------
Outstanding, End of Period 668,692 37.71
-------------------------------------------------------------------------
Exercisable, End of Period 668,692 37.71
-------------------------------------------------------------------------
-------------------------------------------------------------------------
     For the period ended March 31, 2008, EnCana recorded compensation costs
of $12 million related to the outstanding DSUs (2007 - $8 million).
     G) Performance Share Units ("PSUs")
     The following table summarizes the information about PSUs at March 31,
2008:


                                                    Outstanding       Average
PSUs Share Price
-------------------------------------------------------------------------
     Canadian Dollar Denominated (C$)
Outstanding, Beginning of Year 1,685,036 38.79
Granted 408,686 70.77
Distributed (2,042,541) 45.34
Forfeited (51,181) 38.32
-------------------------------------------------------------------------
Outstanding, End of Period - -
-------------------------------------------------------------------------
-------------------------------------------------------------------------
     For the period ended March 31, 2008, EnCana recorded compensation costs
of $1 million related to the outstanding PSUs (2007 - $10 million).
     15. PER SHARE AMOUNTS
     The following table summarizes the Common Shares used in calculating Net
Earnings per Common Share:


                                                        Three Months Ended
March 31,
---------------------------
(millions) 2008 2007
-------------------------------------------------------------------------
     Weighted Average Common Shares Outstanding
- Basic 749.5 768.4
Effect of Dilutive Securities 3.5 11.2
-------------------------------------------------------------------------
Weighted Average Common Shares Outstanding
- Diluted 753.0 779.6
-------------------------------------------------------------------------
-------------------------------------------------------------------------
     16. FINANCIAL INSTRUMENTS AND RISK MANAGEMENT
     EnCana's financial assets and liabilities are comprised of cash and cash
equivalents, accounts receivable and accrued revenues, accounts payable
and accrued liabilities, the partnership contribution receivable and
payable, risk management assets and liabilities, and long-term debt. Risk
management assets and liabilities arise from the use of derivative
financial instruments. Fair values of financial assets and liabilities,
summarized information related to risk management positions, and
discussion of risks associated with financial assets and liabilities are
presented as follows.
     A) Fair Value of Financial Assets and Liabilities
     The fair values of cash and cash equivalents, accounts receivable and
accrued revenues, and accounts payable and accrued liabilities
approximate their carrying amount due to the short-term maturity of those
instruments.
     Risk management assets and liabilities are recorded at their estimated
fair value based on the mark-to-market method of accounting, using quoted
market prices or, in their absence, third-party market indications and
forecasts. Long-term debt is carried at amortized cost using the
effective interest method of amortization. The estimated fair values of
long-term borrowings have been determined based on market information
where available, or by discounting future payments of interest and
principal at estimated interest rates expected to be available to the
Company at period end.
     The fair values of the partnership contribution receivable and
partnership contribution payable approximate their carrying amount due to
the specific nature of these instruments in relation to the creation of
the integrated oil joint venture. Further information about these notes
is disclosed in Note 10 to the Company's annual audited Consolidated
Financial Statements.
     The fair value of financial assets and liabilities were as follows:

                                            As at                 As at
March 31, 2008 December 31, 2007
-------------------------------------------
Carrying Fair Carrying Fair
Amount Value Amount Value
-------------------------------------------------------------------------
Financial Assets
Held-for-Trading:
Cash and cash
equivalents $ 889 $ 889 $ 553 $ 553
Risk management assets(x) 292 292 403 403
Loans and Receivables:
Accounts receivable and
accrued revenues 2,611 2,611 2,381 2,381
Partnership contribution
receivable(x) 3,371 3,371 3,444 3,444
Financial Liabilities
Held-for-Trading:
Risk management
liabilities(x) $ 1,174 $ 1,174 $ 236 $ 236
Other Financial Liabilities:
Accounts payable and
accrued liabilities 4,330 4,330 3,982 3,982
Long-term debt(x) 10,107 10,275 9,543 9,763
Partnership contribution
payable(x) 3,381 3,381 3,451 3,451
-------------------------------------------------------------------------
-------------------------------------------------------------------------
(x) Including current portion.

B) Risk Management Assets and Liabilities
     Net Risk Management Position                         As at         As at
March 31, December 31,
2008 2007
-------------------------------------------------------------------------
     Risk Management
Current asset $ 113 $ 385
Long-term asset 179 18
-------------------------------------------------------------------------
292 403
-------------------------------------------------------------------------
     Risk Management
Current liability 1,163 207
Long-term liability 11 29
-------------------------------------------------------------------------
1,174 236
-------------------------------------------------------------------------
Net Risk Management Asset (Liability) $ (882) $ 167
-------------------------------------------------------------------------
-------------------------------------------------------------------------

Summary of Unrealized Risk Management Positions
                        As at March 31, 2008         As at December 31, 2007
-----------------------------------------------------------
Risk Management Risk Management
-----------------------------------------------------------
Asset Liability Net Asset Liability Net
-------------------------------------------------------------------------
     Commodity
Prices
Natural gas $ 265 $ 988 $ (723) $ 375 $ 29 $ 346
Crude oil - 186 (186) 6 205 (199)
Power 25 - 25 19 - 19
Interest Rates 2 - 2 2 - 2
Credit - - - 1 2 (1)
-------------------------------------------------------------------------
Total Fair
Value $ 292 $ 1,174 $ (882) $ 403 $ 236 $ 167
-------------------------------------------------------------------------
-------------------------------------------------------------------------
     Net Fair Value Methodologies Used to Calculate Unrealized Risk Management
Positions
                                                          As at         As at
March 31, December 31,
2008 2007
-------------------------------------------------------------------------


     Prices actively quoted                        $       (802) $        148
Prices sourced from observable data
or market corroboration (80) 19
-------------------------------------------------------------------------
Total Fair Value $ (882) $ 167
-------------------------------------------------------------------------
-------------------------------------------------------------------------
     Prices actively quoted refers to the fair value of contracts valued using
quoted prices in an active market. Prices sourced from observable data or
market corroboration refers to the fair value of contracts valued in part
using active quotes and in part using observable, market-corroborated
data.
     Net Fair Value of Commodity Price Positions at March 31, 2008
                                                                         Fair
Notional Market
Volumes Term Average Price Value
-------------------------------------------------------------------------
     Natural Gas Sales
Contracts
Fixed Price Contracts
NYMEX Fixed Price 1,614 MMcf/d 2008 8.04 US$/Mcf $(938)
NYMEX Fixed Price 208 MMcf/d 2009 8.85 US$/Mcf (66)
     Options
Purchased NYMEX
Call Options (309) MMcf/d 2008 10.51 US$/Mcf 11
     Basis Contracts
Canada 188 MMcf/d 2008 (0.77) US$/Mcf 16
United States 1,061 MMcf/d 2008 (1.29) US$/Mcf 55
Canada and
United States(x) 2009-2011 163
-------------------------------------------------------------------------
(759)
Other Financial
Positions(xx) (8)
-------------------------------------------------------------------------
Total Unrealized Loss
on Financial Contracts (767)
Paid Premiums on
Unexpired Options 44
-------------------------------------------------------------------------
Natural Gas Fair
Value Position $(723)
-------------------------------------------------------------------------
-------------------------------------------------------------------------
     Crude Oil Sales
Contracts
Fixed Price Contracts
WTI NYMEX Fixed Price 23,000 bbls/d 2008 70.13 US$/bbl $(183)
Other Financial
Positions(xx) (3)
-------------------------------------------------------------------------
Crude Oil Fair
Value Position $(186)
-------------------------------------------------------------------------
-------------------------------------------------------------------------
     Power Sales Contracts
Power Fair Value Position $ 25
-------------------------------------------------------------------------
-------------------------------------------------------------------------
(x) EnCana has entered into swaps to protect against widening natural gas
price differentials between production areas, including Canada, the U.S.
Rockies and Texas, and various sales points. These basis swaps are priced
using both fixed prices and basis prices determined as a percentage of
NYMEX.
     (xx) Other financial positions are part of the ongoing operations of the
Company's proprietary production management.

Net Earnings Impact of Realized and Unrealized Gains (Losses) on Risk
Management Positions
                                                       Realized Gain (Loss)
---------------------------
Three Months Ended
March 31,
---------------------------
2008 2007
-------------------------------------------------------------------------
     Revenues, Net of Royalties                    $         20  $        315
Operating Expenses and Other 2 1
-------------------------------------------------------------------------
Gain (Loss) on Risk Management $ 22 $ 316
-------------------------------------------------------------------------
-------------------------------------------------------------------------

Unrealized Gain (Loss)
---------------------------
Three Months Ended
March 31,
---------------------------
2008 2007
-------------------------------------------------------------------------
     Revenues, Net of Royalties                    $     (1,096) $       (615)
Operating Expenses and Other 3 1
-------------------------------------------------------------------------
Gain (Loss) on Risk Management $ (1,093) $ (614)
-------------------------------------------------------------------------
-------------------------------------------------------------------------
     Reconciliation of Unrealized Risk Management Positions from January 1 to
March 31, 2008
                                                    2008                 2007
--------------------------------------
Total Total
Fair Market Unrealized Unrealized
Value Gain (Loss) Gain (Loss)
-------------------------------------------------------------------------
     Fair Value of Contracts,
Beginning of Year $ 167
Change in Fair Value of Contracts
in Place at Beginning of Year
and Contracts Entered into
During the Period (1,071) $ (1,071) $ (301)
Fair Value of Contracts in Place
at Transition that Expired
During the Period - - 3
Fair Value of Contracts Realized
During the Period (22) (22) (316)
-------------------------------------------------------------------------
Fair Value of Contracts
Outstanding $ (926) $ (1,093) $ (614)
Paid Premiums on Unexpired Options 44
-------------------------------------------------------------------------
Fair Value of Contracts and
Premiums Paid, End of Period $ (882)
-------------------------------------------------------------------------
-------------------------------------------------------------------------
     Commodity Price Sensitivities
     The following table summarizes the sensitivity of the fair value of the
Company's risk management positions to fluctuations in commodity prices,
with all other variables held constant. When assessing the potential
impact of these commodity price changes, the Company believes 10%
volatility is a reasonable measure. Fluctuations in commodity prices
could have resulted in unrealized gains (losses) impacting net earnings
as follows:
                                                          Net Earnings
---------------------------
Three Months Ended
March 31, 2008
---------------------------
Favorable Unfavorable
10% Change 10% Change
-------------------------------------------------------------------------
     Natural gas price                             $        488  $       (436)
Crude oil price 63 (63)
Power price 4 (4)
-------------------------------------------------------------------------
-------------------------------------------------------------------------
     C) Risks Associated with Financial Assets and Liabilities


     The Company is exposed to financial risks arising from its financial
assets and liabilities. The financial risks include market risk relating
to commodity prices, interest rates and foreign exchange rates, credit
risk and liquidity risk.
     Market Risk
     Market risk, the risk that the fair value or future cash flows of
financial assets or liabilities will fluctuate due to movements in market
prices, is comprised of the following:
     -   Commodity Price Risk
         As a means of mitigating exposure to commodity price risk volatility,
the Company has entered into various derivative agreements. The use
of derivative instruments is governed under formal policies and is
subject to limits established by the Board of Directors. The
Company's policy is to not use derivative financial instruments for
speculative purposes.
         Natural Gas - To partially mitigate the natural gas commodity price
risk, the Company enters into option contracts and swaps, which fix
the NYMEX prices. To help protect against widening natural gas price
differentials in various production areas, EnCana has entered into
swaps to manage the price differentials between these production
areas and various sales points.
         Crude Oil - The Company has partially mitigated its exposure to the
WTI NYMEX price with fixed price swaps.
         Power - The Company has in place two Canadian dollar denominated
derivative contracts, which commenced January 1, 2007 for a period of
11 years, to manage its electricity consumption costs.
     -   Interest Rate Risk
         The Company partially mitigates its exposure to interest rate changes
by maintaining a mix of both fixed and floating rate debt. EnCana has
entered into interest rate swap transactions from time to time as an
additional means of managing the fixed/floating rate debt portfolio
mix.
         At March 31, 2008, the increase or decrease in net earnings for each
one percent change in interest rates on floating rate debt amounts to
$14 million. At March 31, 2008, the Company's outstanding derivative
instrument utilized for interest rate risk management activities had
an unrealized gain of $2 million related to the 5.80% medium term
note due June 2, 2008.
     -   Foreign Exchange Risk

         As EnCana operates primarily in North America, fluctuations in the
exchange rate between the U.S./Canadian dollar can have a significant
effect on the Company's reported results. EnCana's functional
currency is Canadian dollars, however, the Company reports its
results in U.S. dollars as most of its revenue is closely tied to the
U.S. dollar and to facilitate a more direct comparison to other North
American oil and gas companies. As the effects of foreign exchange
fluctuations are embedded in the Company's results, the total effect
of foreign exchange fluctuations are not separately identifiable.
         To mitigate the exposure to the fluctuating U.S./Canadian exchange
rate, EnCana maintains a mix of both U.S. dollar and Canadian dollar
debt. In addition to issuing U.S. dollar denominated debt, the
Company has entered into a cross currency swap on a portion of its
debt as a means of managing the U.S./Canadian dollar debt mix.
         As disclosed in Note 7, EnCana's foreign exchange (gain) loss is
primarily comprised of unrealized foreign exchange gains and losses
on the translation of U.S. dollar debt issued from Canada and the
translation of U.S. dollar partnership contribution receivable issued
from Canada. At March 31, 2008, EnCana had $5,421 million in U.S.
dollar debt issued from Canada ($5,421 million at December 31, 2007)
and $3,371 million related to the U.S. dollar partnership
contribution receivable ($3,444 million at December 31, 2007). A
$0.01 change in the U.S. to Canadian dollar exchange rate would have
resulted in a $20 million change in foreign exchange (gain) loss at
March 31, 2008.
     Credit Risk
     Credit risk is the risk that the counterparty to a financial asset will
default resulting in the Company incurring a financial loss. This credit
exposure is mitigated through the use of Board-approved credit policies
governing the Company's credit portfolio and with credit practices that
limit transactions according to counterparties' credit quality. All
foreign currency agreements are with major financial institutions in
Canada and the United States or with counterparties having investment
grade credit ratings. A substantial portion of the Company's accounts
receivable are with customers in the oil and gas industry and are subject
to normal industry credit risks.
     At March 31, 2008, EnCana had two counterparties whose net settlement
position individually account for more than 10 percent of the fair value
of the outstanding in-the-money net financial instrument contracts by
counterparty. The maximum credit risk exposure associated with accounts
receivable and accrued revenues, risk management assets and the
partnership contribution receivable is the total carrying value.
     Liquidity Risk

     Liquidity risk is the risk the Company will encounter difficulties in
meeting its financial liability obligations. The Company manages its
liquidity risk through cash and debt management. As disclosed in Note 13,
EnCana targets a Net Debt to Capitalization ratio between 30 and
40 percent and a Net Debt to Adjusted EBITDA of 1.0 to 2.0 times to
steward the Company's overall debt position.
     In managing liquidity risk, the Company has access to a wide range of
funding at competitive rates through commercial paper, capital markets
and banks. As at March 31, 2008, EnCana had available unused committed
bank credit facilities in the amount of $3.1 billion and unused capacity
under shelf prospectuses, the availability of which is dependent on
market conditions, for up to $7.2 billion. The Company believes it has
sufficient funding through the use of these facilities to meet
foreseeable borrowing requirements.
     EnCana maintains investment grade credit ratings on its senior unsecured
debt. Standard - Poor's Ratings Service has assigned a rating of A- with
a "Stable" outlook, DBRS Limited has assigned a rating of A(low) with a
"Stable" trend and Moody's Investors Service has assigned a rating of
Baa2 with a "Positive" outlook.
     The timing of cash outflows relating to financial liabilities are
outlined in the table below:
                                            2 -       4 -    beyond
1 year 3 years 5 years 5 years Total
-------------------------------------------------------------------------
     Accounts payable and
accrued liabilities $ 4,330 $ - $ - $ - $ 4,330
Risk management
liabilities 1,163 12 (1) - 1,174
Long-term debt(x) 679 450 2,870 6,130 10,129
Partnership contribution
payable(x) 293 640 721 1,727 3,381
-------------------------------------------------------------------------
-------------------------------------------------------------------------
(x) Principal, including current portion.

Included in EnCana's total long-term debt obligations of $10,129 million
at March 31, 2008 are $1,884 million in obligations related to Bankers'
Acceptances and Commercial Paper. These amounts are fully supported and
Management expects that they will continue to be supported by revolving
credit and term loan facilities that have no repayment requirements
within the next year.
     17. CONTINGENCIES

     Legal Proceedings
     The Company is involved in various legal claims associated with the
normal course of operations. The Company believes it has made adequate
provision for such legal claims.
     Discontinued Merchant Energy Operations


     During the period between 2003 and 2005, EnCana and its indirect wholly
owned U.S. marketing subsidiary, WD Energy Services Inc. ("WD"), along
with other energy companies, were named as defendants in several
lawsuits, some of which were class action lawsuits, relating to sales of
natural gas from 1999 to 2002. The lawsuits allege that the defendants
engaged in a conspiracy with unnamed competitors in the natural gas
markets in California in violation of U.S. and California anti-trust and
unfair competition laws.
     Without admitting any liability in the lawsuits, WD agreed to settle all
of the class action lawsuits in both state and federal court for payment
of $20.5 million and $2.4 million, respectively. Also, as previously
disclosed, without admitting any liability whatsoever, WD concluded
settlements with the U.S. Commodity Futures Trading Commission ("CFTC")
for $20 million and of a previously disclosed consolidated class action
lawsuit in the United States District Court in New York for $8.2 million.


     The remaining lawsuits were commenced by individual plaintiffs, one of
which is E. - J. Gallo Winery ("Gallo"). The Gallo lawsuit claims damages
in excess of $30 million. The other remaining lawsuits do not specify the
precise amount of damages claimed. California law allows for the
possibility that the amount of damages assessed could be tripled.
     The Company and WD intend to vigorously defend against the outstanding
claims; however, the Company cannot predict the outcome of these
proceedings or any future proceedings against the Company, whether these
proceedings would lead to monetary damages which could have a material
adverse effect on the Company's financial position, or whether there will
be other proceedings arising out of these allegations.
     18. RECLASSIFICATION
     Certain information provided for prior periods has been reclassified to
conform to the presentation adopted in 2008.
>>

For further information:
EnCana Corporate Communications
Investor contact:
Paul Gagne
Vice-President, Investor Relations
(403) 645-4737

Ryder McRitchie
Manager, Investor Relations
(403) 645-2007

Susan Grey
Manager, Investor Relations
(403) 645-4751

Media contact:
Alan Boras
Manager, Media Relations
(403) 645-4747



ECA stock price

TSX $15.12 Can 0

NYSE $11.85 USD 0.160

As of 2017-11-17 16:02. Minimum 15 minute delay