EnCana earns $1.2 billion in first quarter of 2003, $790 million excluding gains, cash flow approaches $1.9 billion

Performance right on track as gas sales exceed 3 billion cubic feet per day

CALGARY, May 8 /CNW/ - EnCana Corporation (TSX & NYSE: ECA) earned
$1.246 billion, or $2.57 per common share diluted, in the first quarter of
2003 and generated $1.852 billion of cash flow, or $3.80 per common share
diluted. On a pro forma basis in the first quarter of 2002, EnCana earned
$163 million, or 34 cents per common share diluted, and generated
$779 million, or $1.61 per common share diluted, of cash flow.
First quarter earnings included a one-time, after-tax gain of
approximately $263 million, or 54 cents per common share diluted, on the sale
of EnCana's interests in two oil pipelines, plus an unrealized after-tax gain
of approximately $193 million, or 40 cents per common share diluted, related
to foreign exchange gains on the translation of EnCana's U.S. dollar debt.
These gains, which had no impact on cash flow, totalled $456 million, or 94
cents per common share diluted. Excluding these two items, EnCana earned
$790 million, or $1.63 per common share diluted, from continuing operations.
Revenues, net of royalties and production taxes, in the first quarter were
$4.158 billion, while core capital investment was $1.587 billion.

All references to 2002 production, sales and financial information in
this news release text and tables for EnCana are presented on a pro forma
basis as if the merger of PanCanadian Energy Corporation ("PanCanadian" or
"PCE") and Alberta Energy Company Ltd. ("AEC") had occurred at the beginning
of 2002. All dollar figures are Canadian unless otherwise stated.


Natural gas and oil sales 10 percent higher in past year
First quarter daily conventional oil and gas sales increased 10 percent
averaging 735,836 barrels of oil equivalent (BOE) compared to the pro forma
conventional sales of 669,298 barrels of oil equivalent during the first
quarter of 2002. Daily natural gas sales increased 11 percent to average
3,016 million cubic feet, which included an average of 141 million cubic feet
per day of sales from EnCana's gas storage. First quarter natural gas
production increased 12 percent over the same period in 2002. Conventional oil
and natural gas liquids sales increased 8 percent to average 233,169 barrels
per day, compared to pro forma sales of 215,298 barrels per day in the first
quarter of 2002. EnCana drilled 1,329 net wells in the first quarter.
"EnCana is right on track, achieving record financial and operating
performance as it embarks on its second year of operations. Strong growth in
sales of conventional oil and natural gas combined with robust commodity
prices produced exceptionally strong financial results," said Gwyn Morgan,
EnCana's President & Chief Executive Officer. "With the outlook for a
continuation of very strong gas pricing fundamentals, EnCana is extremely well
positioned to capitalize on a production mix that is leveraged two-thirds to
North American natural gas. The company's current gas field productive
capacity is already in the range of its 2003 sales target of 3.0 billion to
3.1 billion cubic feet per day.
"The success we achieved in our first year is continuing in 2003. As part
of the company's strategic realignment, we completed the sale of our interests
in the Express and Cold Lake pipeline systems and sold a 10 percent interest
in Syncrude. The $2.7 billion of gross proceeds generated by these sales have
fortified an already strong balance sheet. EnCana has the financial strength
to fund industry-leading internal growth while maintaining flexibility to act
opportunistically on value creating, tuck-in acquisitions in our core
operating areas. We will also continue to compare these uses of capital with
the value-creation potential of share buybacks under our Normal Course Issuer
Bid," Morgan said.

Strong winter demand and tight North America supply drive first quarter
gas prices higher

In the first three months of 2003, a combination of cold weather across
North America's large consuming regions and weakening North American natural
gas production levels drove prices to two-year highs. In the first quarter,
the average AECO index price was $7.92 per thousand cubic feet, up 137 percent
from the first quarter of 2002. U.S. gas storage volumes are at record lows,
while Canadian gas storage volumes are well below the five-year average. In
2002, U.S. supply fell about 4.7 percent from 2001, while Canadian supply was
down approximately 3.5 percent in the same time period. Demands to refill
storage, combined with normal summer weather, are expected to keep prices
strong throughout 2003.

World oil prices exceptionally strong due to supply uncertainty in
Middle East and Venezuela

During the first quarter, the average benchmark West Texas Intermediate
crude oil price was US$33.80, up 56 percent over the same period last year.
Although oil prices have retreated from these high levels, volatility is
expected to continue due to the challenges of reintegrating Iraq production,
political issues in Venezuela and Nigeria, OPEC compliance with production
quotas and world economic uncertainty.

Risk management programs mitigate volatility
EnCana's risk management program is designed to partially mitigate the
volatility associated with commodity prices, exchange rates and interest
rates. As a means of managing the impact of commodity price volatility in its
producing areas and to help provide greater certainty in cash flow generation
for its high-return capital investment program, EnCana has entered into
various fixed-price contracts for a portion of its forecast 2003 sales. With
the high oil and gas prices experienced in the first quarter, EnCana's
commodity price risk management measures, including financial and physical
transactions, resulted in pre-tax revenue being lower by approximately
$100 million, comprised of $122 million lower revenues on oil sales and
$22 million of higher revenues from gas sales. The $22 million of higher gas
revenues is comprised of $111 million of higher revenues from physical
transactions and $89 million of lower revenues from commodity financial
transactions. The $122 million of lower revenues from oil sales was associated
with commodity financial transactions only.
<<
Consolidated EnCana Highlights

-------------------------------------------------------------------------
Financial Highlights EnCana EnCana
(as at and for the three months ended March 31) Q1 2003 Q1 2002
($ millions, except per share amounts) Actuals Pro Forma2
-------------------------------------------------------------------------
Revenues, net of royalties and production taxes 4,158 2,263
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Cash Flow 1,852 779
Per common share - diluted 3.80 1.61
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Net earnings
From Continuing Operations excluding F/X
gain (loss) on translation of
US$ debt (after-tax) 790 156
Per common share - basic 1.66 0.33
Per common share - diluted 1.63 0.32

From foreign exchange gain (loss) on
translation of US$ debt (after-tax) 193 (1)
Per common share - basic 0.40 -
Per common share - diluted 0.40 -

From Continuing Operations 983 155
Per common share - basic 2.06 0.33
Per common share - diluted 2.03 0.32

From Discontinued Operations 263 8
Per common share - basic 0.55 0.02
Per common share - diluted 0.54 0.02

Net earnings 1,246 163
Per common share - basic1 2.61 0.34
Per common share - diluted 2.57 0.34
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Core capital investment 1,587 1,296

Total assets 29,410 29,570
Long-term debt 5,867 6,938
Preferred securities 567 584
Shareholders' equity 14,994 13,101

Debt-to-capitalization ratio 29% 39%
(adjusted for working capital & including
preferred securities as debt)
-------------------------------------------------------------------------
Common shares
Outstanding at March 31 (millions) 480.6 474.1
Weighted average diluted (millions) 486.9 483.6
-------------------------------------------------------------------------
-------------------------------------------------------------------------

(1) Impact of including share options in earnings calculations
If EnCana were to record compensation expense for outstanding stock
options, earnings per common share - basic would have been $2.58 per
common share, $0.03 per common share less, during the first quarter
of 2003.
(2) Important Notice: Readers are cautioned that comparisons to prior
years' results are based on pro forma calculations and these pro
forma results may not reflect all adjustments and reconciliations
that may be required under Canadian generally accepted accounting
principles. These pro forma results may not be indicative of the
results that actually would have occurred or of the results that may
be obtained in the future. Also, certain information provided for
prior years has been reclassified to conform to the presentation
adopted in 2002.



Operating Highlights Q1 2003 Q1 2002 %
(for the period ended March 31) Actuals Pro forma Change
-------------------------------------------------------------------------
Sales
Natural gas (MMcf/d)
North America 3,003 2,713 + 11
U.K. 13 11 + 18
Total natural gas 3,016 2,724 + 11

Conventional oil and NGLs (bbls/d)
North America 179,795 163,635 + 10
Ecuador 42,764 38,774 + 10
U.K. 10,610 12,889 - 18
Total oil and NGLs (bbls/d)(*) 233,169 215,298 + 8

Total conventional sales (BOE/d)(*) 735,836 669,298 + 10
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Prices, including hedging
North American gas price ($/Mcf) 7.45 3.43 +117
-------------------------------------------------------------------------
North American conventional oil
price ($/bbl)
Light/medium 32.53 26.11 + 25
Heavy 22.97 21.56 + 7
Syncrude ($/bbl) 48.97 34.86 + 40
International crude oil ($/bbl)
Ecuador 43.90 22.07 + 99
U.K. 42.53 30.85 + 38
Natural gas liquids ($/bbl) 43.73 22.72 + 92

-------------------------------------------------------------------------
Total liquids ($/bbl) 34.04 25.24 + 35
-------------------------------------------------------------------------
-------------------------------------------------------------------------
(*) Excludes Syncrude which averaged 20,272 barrels per day in the first
quarter of 2003, compared to 31,548 barrels per day in the first
quarter of 2002.

EnCana targeting 10 percent per share internal sales growth in 2003
EnCana's 2003 total daily conventional oil and gas sales volumes are
forecast to grow by an average of 10 percent per share from 2002 pro forma
rates to between 740,000 and 797,000 barrels of oil equivalent, excluding
Syncrude. That sales forecast is comprised of between 3 billion and 3.1
billion cubic feet of gas per day and 240,000 and 280,000 barrels of
conventional oil and natural gas liquids per day.

EnCana corporate developments

EnCana completes sale of interests in two major oil pipelines and
10 percent share of Syncrude

During the first quarter of 2003, EnCana closed the sales of its indirect
100 percent ownership of the Express Pipeline System and its indirect
70 percent interest in the Cold Lake Pipeline System for a total consideration
of approximately $1.6 billion, which included assumed debt of approximately
$599 million. EnCana also sold a 10 percent share of the Syncrude project to
Canadian Oil Sands Limited for approximately $1.07 billion. EnCana's remaining
3.75 percent share of Syncrude is considered a non-core asset.

Normal Course Issuer Bid purchases
To date, EnCana has purchased for cancellation 676,900 of its common
shares at an average price of $45.89 per common share under the company's
Normal Course Issuer Bid. Under the bid, EnCana may purchase for cancellation
up to 23,843,565 of its common shares, representing 5 percent of the
476,871,300 common shares outstanding as at October 4, 2002.

Dividend
The board of directors of EnCana declared a quarterly dividend of 10
cents per share payable on June 30, 2003 to common shareholders of record as
of June 13, 2003.

Financial strength

EnCana possesses one of the strongest financial positions among its
upstream independent peer group. At March 31, 2003, the company's debt-to-
capitalization ratio was 29:71 (preferred securities included as debt).
EnCana's debt-to-EBIDTA multiple, on a trailing 12-month basis, was 0.9 times.
First quarter core capital investment was $1,587 million. Corporate
acquisitions were $179 million and net proceeds from asset and corporate
dispositions were $2,034 million, resulting in negative net capital investment
of $268 million. EnCana's operating costs on conventional oil and gas
production averaged $4.20 per barrel of oil equivalent for the quarter.
EnCana maintains strong investment grade ratings from the major bond
rating services: Dominion Bond Rating Service Limited, A(low), Moody's
Investors Service, Baa1, and Standard and Poor's Ratings Services, A-. The
company also has a $4 billion credit facility with a syndicate of major banks
and lending institutions, of which more than $3 billion remains unutilized.

EnCana operational highlights

North America

First quarter gas and conventional liquids sales up 10 percent year over
year

EnCana's North American gas and conventional oil and natural gas liquids
sales continued to grow at double-digit rates in the first quarter, averaging
680,295 barrels of oil equivalent per day - a 10 percent increase over the pro
forma average of 615,802 barrels of oil equivalent per day in the first
quarter of 2002. Gas production increased 12 percent in the past year,
averaging approximately 2.9 billion cubic feet per day. Conventional liquids
production was up about 10 percent year over year, averaging approximately
180,000 barrels per day. The company also sold an average of 141 million cubic
feet per day of gas from storage in the quarter. Gas production growth was led
by increased production from the U.S. Rockies, Ferrier, Suffield and the
Palliser block in Alberta and Greater Sierra in northeast British Columbia.
Rising output from the company's two steam-assisted gravity drainage (SAGD)
projects in northeast Alberta, combined with production increases at Suffield,
raised the company's conventional oil production in the first quarter. In
North America, EnCana drilled 1,317 net wells during the first quarter.

U.S. Rockies delivers tremendous growth in year-over-year gas sales
U.S. Rockies first quarter gas sales rose more than 80 percent to average
672 million cubic feet per day, compared to an average of 365 million cubic
feet per day on a pro forma basis from the first quarter of 2002. Production
growth in the U.S Rockies is primarily from the Jonah field in Wyoming and the
Mamm Creek field in Colorado. EnCana has fixed the NYMEX price differential on
566 million cubic feet per day of forecast 2003 gas sales at an average basis
of US$0.50 per thousand cubic feet, and an additional 392 million cubic feet
per day of forecast gas sales for 2004 through 2007 at an average basis of
US$0.45 per thousand cubic feet.
"This high growth region continues to deliver tremendous performance.
With more than 1.6 million net undeveloped acres and the recent addition of
gas transmission capacity out of the region on the Kern River pipeline
expansion, we plan to continue to set the pace for gas growth in the U.S.
Rockies," said Randy Eresman, EnCana's Chief Operating Officer.

Winter drilling builds production volumes in northeast British Columbia
EnCana drilled 91 net wells in the Greater Sierra area of northeast
British Columbia, where production in the first quarter averaged 158 million
cubic feet per day, up 12 percent from pro forma production one year earlier.
With the recent gathering system expansion, production is currently at about
210 million cubic feet per day in Greater Sierra.
"Our assembly line drilling methods enabled us to keep more than 30 rigs
running through to spring break up, while reducing costs for each well
drilled. This successful drilling season has resulted in continued strong
production growth in our fastest growing Canadian region," Eresman said.

Canada's leading SAGD project delivering steady volumes
EnCana's largest SAGD thermal oilsands project at Foster Creek in
northeast Alberta is currently producing at its design rate of approximately
20,000 barrels of oil per day. EnCana has started its 80-megawatt
co-generation plant at Foster Creek, which is expected to lower the SAGD
project's operating costs by an estimated $2 per barrel. The company continues
to target operating costs in the range of $6 to $7 per barrel, assuming an
AECO gas price of $5 per thousand cubic feet, when all facilities are fully
operational. The power plant is generating about 45 megawatts of electricity
for sale to the Alberta power grid.

Gulf of Mexico - successful appraisal drilling at Tahiti
Exploration success continues at the Tahiti prospect in the deep water
Gulf of Mexico, where two successful appraisal wells have increased confidence
that the field contains between 400 million and 500 million barrels of
estimated recoverable oil. The appraisal program confirmed that the Tahiti
reservoirs are well developed and correlate over a five-kilometer distance.
One of the appraisal wells encountered more than 1,000 feet of net pay in
high-quality sandstones, making it one of the thickest net pay accumulations
in the history of the deep water Gulf of Mexico. EnCana holds a 25 percent
interest in this ChevronTexaco-operated discovery.

East Coast of Canada - Deep Panuke
EnCana is conducting a thorough review of its Deep Panuke natural gas
development project, examining ways to enhance project economics. Following a
request by EnCana for an adjournment, the Canada-Nova Scotia Offshore
Petroleum Board and the National Energy Board have agreed to suspend the
development's regulatory review. EnCana plans to update the regulatory
agencies by the end of 2003. To better evaluate the ultimate natural gas
potential in the Deep Panuke area, EnCana has additional exploration planned
for 2003.

EnCana closes sale of 10 percent interest in Syncrude
EnCana's share of Syncrude production during the first quarter of 2003
averaged 20,272 barrels per day. This lower quarterly volume reflects the
completion of the sale, on February 28, 2003, of a 10 percent interest in
Syncrude to Canadian Oil Sands Limited.

International

EnCana's first quarter international oil and natural gas liquids
production averaged 63,680 barrels per day, but sales were reduced to 53,374
barrels per day primarily as a result of directing oil for line fill into
Ecuador's OCP Pipeline, marking the beginning of a major new oil growth
opportunity for EnCana and the South American nation. In the U.K., EnCana and
its partners are finalizing work on the design and environmental statement for
development of the Buzzard discovery, which is scheduled to start production
in 2006.

Ecuador - first barrels flowing into OCP Pipeline tanks
First quarter production in Ecuador averaged 54,726 barrels of oil per
day, up 9 percent from an average of 50,351 barrels per day on a pro forma
basis one year earlier. While daily production has increased year over year,
2003 reported sales volumes exclude an average of 8,191 barrels per day during
the first quarter which was delivered to line fill for the new OCP Pipeline.

Midstream & Marketing

EnCana's Midstream & Marketing division achieved first quarter operating
cash flow from continuing operations of about $55 million.

Gas storage expands with first phase of Countess facility
EnCana plans to open the first 10 billion cubic feet of storage capacity
this summer at its new Countess facility, located about 85 kilometres east of
Calgary. Injections are planned during the summer, in preparation for winter
withdrawals. The first phase of the Countess facility, which is intended to
become a significant new component of EnCana's AECO Hub, is on time and on
budget. Completion of the project, designed to take total Countess capacity to
about 40 billion cubic feet, is expected by April 2005. In northern
California, EnCana continues construction work on increasing the Wild Goose
gas storage facility to 23 billion cubic feet of capacity by spring 2004, with
further expansions to 29 billion cubic feet expected by spring 2005.

OCP Pipeline nears completion
Ecuador's OCP Pipeline is more than 95 percent complete, with producers
having delivered more than 1 million barrels of oil into OCP's Amazonas Oil
Terminal for use in commissioning the pipeline system. Commissioning of the
system's pumping stations and receiving and shipping terminals is underway.
First oil is expected to be shipped from the OCP marine terminal on the
Pacific coast this summer.
"Ecuador is on the verge of achieving a major milestone in its journey
towards economic stability with the pending completion of the OCP Pipeline.
EnCana is proud to partner with the people of Ecuador in this milestone," said
Bill Oliver, EnCana's President of Midstream & Marketing.
-------------------------------------------------------------------------
GUIDANCE UPDATED
EnCana has posted an updated Guidance Document on its Web site:
www.encana.com.
-------------------------------------------------------------------------

-------------------------------------------------------------------------
FINANCIAL INFORMATION
NOTE: This press release includes EnCana's financial statements as well
as a summary of pro forma financial results which better reflect the way
EnCana views its business. EnCana's actual and pro forma information
reflects results as illustrated in the table below.

----------------------------------------
EnCana actual financial statements
----------------------------------------
Q1 2003 Q1 2002
EnCana PCE alone
----------------------------------------
----------------------------------------
EnCana pro forma financial information
----------------------------------------
Q1 2003 Q1 2002
EnCana PCE & AEC
----------------------------------------
This press release and EnCana's supplemental information are posted on
the company Web site www.encana.com.
-------------------------------------------------------------------------

-------------------------------------------------------------------------
CONFERENCE CALL TODAY
EnCana Corporation will host a conference call today, Thursday, May 8,
2003 starting at 11 a.m., Mountain Time (1 p.m. Eastern Time) to discuss
EnCana's first quarter 2003 financial and operating results.
To participate, please dial (719) 457-2731 approximately 10 minutes prior
to the conference call. An archived recording of the call will be available
from approximately 5 p.m. on May 8 until midnight May 16, 2003 by dialing
(888) 203-1112 or (719) 457-0820 and entering pass code 145028.
A live audio Web cast of the conference call will also be available via
EnCana's Web site, www.encana.com, under Investor Relations. The Web cast will
be archived for approximately 90 days.
-------------------------------------------------------------------------

EnCana Corporation
EnCana is one of the world's leading independent oil and gas companies
with an enterprise value of approximately C$30 billion. EnCana is North
America's largest independent natural gas producer and gas storage operator.
Ninety percent of the company's assets are in four key North American growth
platforms. EnCana is the largest producer and landholder in Western Canada and
is a key player in Canada's emerging offshore East Coast basins. In the U.S.,
EnCana is one of the largest gas explorers and producers in the Rocky Mountain
states and has a strong position in the deepwater Gulf of Mexico. The company
has two key high potential international growth platforms: EnCana is the
largest private sector oil producer in Ecuador and is the operator of a large
oil discovery in the U.K. central North Sea. The company also conducts high
upside potential New Ventures exploration in other parts of the world. EnCana
is driven to be the industry's best-in-class benchmark in production cost, per-
share growth and value creation for shareholders. EnCana common shares trade
on the Toronto and New York stock exchanges under the symbol ECA.
ADVISORY - In the interests of providing EnCana shareholders and
potential investors with information regarding EnCana, including management's
assessment of EnCana's future plans and operations, certain statements
contained in this news release are forward-looking statements within the
meaning of the "safe harbour" provisions of the United States Private
Securities Litigation Reform Act of 1995. Forward-looking statements in this
news release include, but are not limited to, EnCana's internal projections,
expectations or beliefs concerning future operating results, and various
components thereof; EnCana's ability to invest selectively and returns on such
investments; drilling activity in North America in 2003; future economic
performance; the production and growth potential of EnCana's various assets,
including assets in the U.S. Rockies, Greater Sierra, offshore Canada's East
Coast, the U.K. central North Sea, the Gulf of Mexico and Ecuador; the
anticipated oil and natural gas prices for the remainder of 2003; the ability
to achieve production and sales growth targets for 2003 and beyond (including
per share sales growth); the sources and deployment of expected capital in
2003; the projected annual post-merger synergies in 2003; the anticipated
completion of the different phases of the Countess gas storage project and the
Wild Goose gas storage project in 2003 and beyond; EnCana's plans for its gas
storage facilities; the timing of updates to regulators regarding progress on
enhancements to the Deep Panuke project; projected gas storage capacity in
2004 and 2005; the success of future drilling prospects; potential
exploration; the potential success of certain projects such as SAGD, Buzzard
(including in 2006), coalbed methane, the OCP Pipeline, the Kern River
pipeline, the Foster Creek co-generation plant and Syncrude and the expected
rates of returns from such projects; the potential reduction of operating
costs for SAGD; the potential capacity of the OCP Pipeline; the ability and
timing of meeting EnCana's targeted transportation commitments on the OCP
Pipeline; the proposed dates of drilling and production in the U.K. central
North Sea; and the potential success of other exploratory wells in the Gulf of
Mexico, offshore Canada's East Coast and the U.K. central North Sea.
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 oil and gas prices; fluctuations in currency
and interest rates; product supply and demand; market competition; risks
inherent in the company's marketing operations; imprecision of reserve
estimates; 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 environmental and other regulations; political and economic
conditions in the countries in which the company operates, including Ecuador;
the risk of international war, hostilities, civil insurrection and instability
affecting countries in which the company operates and international terrorist
threats; the risk that the anticipated synergies to be realized by the merger
of AEC and PanCanadian will not be realized; costs relating to the merger of
AEC and PanCanadian being higher than anticipated 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 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.
Further information on EnCana Corporation is available on the company's
Web site, www.encana.com, or by contacting:


Consolidated Financial Statements

For the three months ended March 31, 2003

EnCana Corporation



Interim Report
For the three months ended March 31, 2003

EnCana Corporation

CONSOLIDATED STATEMENT OF EARNINGS

Three Months Ended
March 31
-------------------
(unaudited) ($ millions, except
per share amounts) 2003 2002
-----------------------------------------------------------------------

REVENUES, NET OF ROYALTIES AND
PRODUCTION TAXES (Note 3) $ 4,158 $ 1,061
-----------------------------------------------------------------------

EXPENSES (Note 3)
Transportation and selling 190 49
Operating 516 171
Purchased product 1,427 380
Administrative 56 17
Interest, net 86 27
Foreign exchange (gain) (Note 5) (294) (10)
Depreciation, depletion and amortization 745 214
-----------------------------------------------------------------------
2,726 848
-----------------------------------------------------------------------
NET EARNINGS BEFORE THE UNDERNOTED 1,432 213
Income tax expense (Note 6) 449 82
-----------------------------------------------------------------------
NET EARNINGS FROM CONTINUING OPERATIONS 983 131
NET EARNINGS FROM
DISCONTINUED OPERATIONS (Note 4) 263 2
-----------------------------------------------------------------------
NET EARNINGS $ 1,246 $ 133
DISTRIBUTIONS ON PREFERRED
SECURITIES, NET OF TAX (6) -
-----------------------------------------------------------------------
NET EARNINGS ATTRIBUTABLE TO COMMON
-----------------------------------------------------------------------
-----------------------------------------------------------------------
SHAREHOLDERS $ 1,252 $ 133

NET EARNINGS FROM CONTINUING OPERATIONS
PER COMMON SHARE (Note 9)
Basic $ 2.06 $ 0.51
Diluted $ 2.03 $ 0.51
-----------------------------------------------------------------------
-----------------------------------------------------------------------

NET EARNINGS PER COMMON
SHARE (Note 9)
Basic $ 2.61 $ 0.52
Diluted $ 2.57 $ 0.51
-----------------------------------------------------------------------
-----------------------------------------------------------------------



CONSOLIDATED STATEMENT OF RETAINED EARNINGS
Three Months Ended
March 31
-------------------
(unaudited) ($ millions) 2003 2002
-----------------------------------------------------------------------
RETAINED EARNINGS, BEGINNING OF
YEAR $ 4,684 $ 3,630
Net Earnings 1,246 133
Dividends on Common Shares and
Other Distributions, net of tax (42) (25)
-----------------------------------------------------------------------
RETAINED EARNINGS, END OF PERIOD $ 5,888 $ 3,738
-----------------------------------------------------------------------
-----------------------------------------------------------------------
See accompanying Notes to Consolidated Financial Statements.



Interim Report
For the three months ended March 31, 2003

EnCana Corporation

CONSOLIDATED BALANCE SHEET

As at As at
March 31, December 31,
(unaudited) ($ millions) 2003 2002
------------------------------------------------------------------------

ASSETS
Current Assets
Cash and cash equivalents $ 273 $ 212
Accounts receivable and accrued
revenue 2,303 2,052
Income tax receivable 48 -
Inventories 467 543
Assets of discontinued operations - 1,482
------------------------------------------------------------------------
3,091 4,289
Capital Assets, net (Note 3) 23,271 23,770
Investments and Other Assets 460 377
Goodwill 2,588 2,886
------------------------------------------------------------------------
(Note 3) $ 29,410 $ 31,322
------------------------------------------------------------------------
------------------------------------------------------------------------

LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
Accounts payable and accrued
liabilities $ 2,443 $ 2,390
Income tax payable - 14
Liabilities of discontinued operations - 825
Short-term debt - 438
Current portion of long-term
debt (Note 7) 100 212
------------------------------------------------------------------------
2,543 3,879
Long-Term Debt (Note 7) 5,867 7,395
Deferred Credits and Other Liabilities 583 585
Future Income Taxes 5,423 5,212
Preferred Securities of Subsidiary - 457
------------------------------------------------------------------------
14,416 17,528
------------------------------------------------------------------------
Shareholders' Equity
Preferred securities 567 126
Share capital (Note 8) 8,776 8,732
Share options, net 119 133
Paid in surplus 75 61
Retained earnings 5,888 4,684
Foreign currency translation adjustment (431) 58
------------------------------------------------------------------------
14,994 13,794
------------------------------------------------------------------------
$ 29,410 $ 31,322
------------------------------------------------------------------------
------------------------------------------------------------------------
See accompanying Notes to Consolidated Financial Statements.


Interim Report
For the three months ended March 31, 2003

EnCana Corporation

CONSOLIDATED STATEMENT OF CASH FLOWS

Three Months Ended
March 31
-------------------
(unaudited) ($ millions) 2003 2002
------------------------------------------------------------------------

OPERATING ACTIVITIES
Net earnings from continuing operations $ 983 $ 131
Depreciation, depletion and amortization 745 214
Future income taxes (Note 6) 414 42
Other (290) -
------------------------------------------------------------------------
Cash flow from continuing operations 1,852 387
Cash flow from discontinued operations - 2
------------------------------------------------------------------------
Cash flow 1,852 389
Net change in other assets and liabilities (6) (26)
Net change in non-cash working
capital from continuing operations 54 (242)
Net change in non-cash working
capital from discontinued operations - 53
------------------------------------------------------------------------
1,900 174
------------------------------------------------------------------------

INVESTING ACTIVITIES
Capital expenditures (Note 3) (1,587) (481)
Proceeds on disposal of capital assets 10 3
Corporate (acquisitions) and
dispositions (Note 2) 847 -
Equity investments (66) -
Net change in investments and other (34) (17)
Net change in non-cash working
capital from continuing operations (203) (31)
Discontinued operations 998 -
------------------------------------------------------------------------
(35) (526)
------------------------------------------------------------------------

FINANCING ACTIVITIES
Repayment of short-term debt (438) -
Repayment of long-term debt (1,345) (80)
Issuance of common shares (Note 8) 44 18
Dividends on common shares (48) (25)
Payments to preferred securities
holders (8) -
Net change in non-cash working
capital from continuing operations (5) (3)
Other (1) -
------------------------------------------------------------------------
(1,801) (90)
------------------------------------------------------------------------

DEDUCT: FOREIGN EXCHANGE LOSS ON CASH AND
CASH EQUIVALENTS HELD IN FOREIGN
CURRENCY 3 2
------------------------------------------------------------------------

INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS 61 (444)
CASH AND CASH EQUIVALENTS,
BEGINNING OF YEAR 212 963
------------------------------------------------------------------------
CASH AND CASH EQUIVALENTS, END
OF PERIOD $ 273 $ 519
------------------------------------------------------------------------
------------------------------------------------------------------------
See accompanying Notes to Consolidated Financial Statements.


Interim Report
For the three months ended March 31, 2003

EnCana Corporation

Notes to Consolidated Financial Statements (unaudited)

1. BASIS OF PRESENTATION

The interim Consolidated Financial Statements include the accounts of
EnCana Corporation and its subsidiaries (the "Company"), and are presented in
accordance with Canadian generally accepted accounting principles. The Company
is in the business of exploration, production and marketing of natural gas,
natural gas liquids and crude oil, as well as natural gas storage operations,
natural gas liquids processing 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, 2002. 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, 2002.

2. CORPORATE (ACQUISITIONS) and DISPOSITIONS

March 31
--------------------------
($ millions) 2003 2002
---------------------------------------------------------------------
Acquisitions $ (179) $ -
Dispositions 1,026 -
---------------------------------------------------------------------
$ 847 $ -
---------------------------------------------------------------------
---------------------------------------------------------------------

On January 31, 2003, the Company acquired the Ecuadorian interests of
Vintage Petroleum Inc. for net cash consideration of $179 million (US$116
million). The purchase was accounted for using the purchase method with the
results reflected in the consolidated results of EnCana from the date of
acquisition. The acquisition was accounted for as follows:

($ millions)
---------------------------------------------------------------------
Working Capital $ 2
Capital Assets 194
Future Income Taxes (17)
---------------------------------------------------------------------
$ 179
---------------------------------------------------------------------
---------------------------------------------------------------------

On February 28, 2003, the Company completed the sale of its 10 percent
interest in the Syncrude Joint Venture to Canadian Oil Sands Limited for net
cash consideration of $1,026 million. There was no gain or loss on this sale.
The Company has also granted Canadian Oil Sands Limited an option to purchase
its remaining 3.75 percent working interest in the Syncrude Joint Venture and
a gross-overriding royalty interest for cash proceeds of $417 million.

3. SEGMENTED INFORMATION

The Company has defined its continuing operations into the following
segments:

- Upstream includes the Company's exploration for and production of
natural gas, natural gas liquids and crude oil. The Company's Upstream
operations are located in Canada, the United States, the U.K. central
North Sea, Ecuador and International New Ventures exploration activity
in the Gulf of Mexico, the U.K. central North Sea, the Middle East,
Africa, Australia, Latin America, as well as, the Canadian East Coast
and the North American northern frontier.

- Midstream & Marketing includes gas storage operations, natural gas
liquids processing and power generation operations, as well as,
marketing activity under which the Company purchases and takes delivery
of product from others and delivers product to customers under
transportation arrangements not utilized for the Company's own
production.

The Company reports its segmented financial results showing revenue prior
to all royalty payments, both cash and in- kind, consistent with Canadian
disclosure practices for the oil and gas industry.
Operations that have been discontinued are disclosed in Note 4.

Interim Report
For the three months ended March 31, 2003

EnCana Corporation
Notes to Consolidated Financial Statements (unaudited)

Results of Operations (For the three months ended March 31)

Upstream Midstream & Marketing
----------------------------------------------
($ millions) 2003 2002 2003 2002
------------------------------------------------------------------------
Revenues
Gross revenue $ 3,007 $ 654 $ 1,651 $ 479
Royalties and
production taxes 500 68 - -
------------------------------------------------------------------------
Revenues, net of royalties
and production taxes 2,507 586 1,651 479

Expenses
Transportation and
selling 163 44 27 5
Operating 374 110 142 61
Purchased product - - 1,427 380
Depreciation, depletion
and amortization 727 203 8 5
------------------------------------------------------------------------
Segment Income $ 1,243 $ 229 $ 47 $ 28
------------------------------------------------------------------------
------------------------------------------------------------------------


Corporate Consolidated
----------------------------------------------
2003 2002 2003 2002
----------------------------------------------
Revenues
Gross revenue $ - $ (4) $ 4,658 $ 1,129
Royalties and production
taxes - - 500 68
------------------------------------------------------------------------
Revenues, net of royalties
and production taxes - (4) 4,158 1,061

Expenses
Transportation and selling - - 190 49
Operating - - 516 171
Purchased product - - 1,427 380
Depreciation, depletion
and amortization 10 6 745 214
------------------------------------------------------------------------
Segment Income (10) (10) 1,280 247
------------------------------------------------------------------------
Administrative 56 17 56 17
Interest, net 86 27 86 27
Foreign exchange (gain) (294) (10) (294) (10)
------------------------------------------------------------------------
(152) 34 (152) 34
------------------------------------------------------------------------
Net Earnings Before Income
Tax 142 (44) 1,432 213
Income tax expense 449 82 449 82
------------------------------------------------------------------------
Net Earnings from Continuing
Operations $ (307) $ (126) $ 983 $ 131
------------------------------------------------------------------------
------------------------------------------------------------------------


Interim Report
For the three months ended March 31, 2003

EnCana Corporation
Notes to Consolidated Financial Statements (unaudited)

Geographic and Product Information
(For the three months ended March 31)

Upstream Produced Gas and NGLs
Canada U.S. Rockies Conventional
Crude Oil
-------------------------------------------------------------------------
($ millions) 2003 2002 2003 2002 2003 2002
-------------------------------------------------------------------------
Revenues
Gross revenue $1,677 $ 358 $ 571 $ 32 $ 395 $ 204
Royalties and production
taxes 224 28 144 7 65 33
-------------------------------------------------------------------------
Revenues, net of royalties
and production taxes 1,453 330 427 25 330 171
Expenses
Transportation and selling 92 31 23 - 31 8
Operating 135 44 15 5 102 52
Depreciation, depletion
and amortization 402 117 100 17 147 56
-------------------------------------------------------------------------
Segment Income $ 824 $ 138 $ 289 $ 3 $ 50 $ 55
-------------------------------------------------------------------------

Syncrude Ecuador U.K. North Sea
-------------------------------------------------------------------------
2003 2002 2003 2002 2003 2002
-------------------------------------------------------------------------
Revenues
Gross revenue $ 91 $ - $ 179 $ - $ 49 $ 44
Royalties and production
taxes 1 - 66 - - -
-------------------------------------------------------------------------
Revenues, net of royalties
and production taxes 90 - 113 - 49 44
Expenses
Transportation and selling 1 - 10 - 6 5
Operating 43 - 22 - 4 3
Depreciation, depletion
and amortization 7 - 35 - 34 10
-------------------------------------------------------------------------
Segment Income $ 39 $ - $ 46 $ - $ 5 $ 26
-------------------------------------------------------------------------

Non-Producing Total Upstream
-----------------------------------------------------------
2003 2002 2003 2002
-----------------------------------------------------------
Revenues
Gross revenue $ 45 $ 16 $3,007 $ 654
Royalties and
production taxes - - 500 68
-----------------------------------------------------------
Revenues, net of
royalties and
production taxes 45 16 2,507 586
Expenses
Transportation and
selling - - 163 44
Operating 53 6 374 110
Depreciation,
depletion and
amortization 2 3 727 203
-----------------------------------------------------------
Segment Income $ (10) $ 7 $1,243 $ 229
-----------------------------------------------------------


Midstream & Marketing Total Midstream
Midstream Marketing & Marketing
-------------------------------------------------------------------------
($ millions) 2003 2002 2003 2002 2003 2002
-------------------------------------------------------------------------
Revenues
Gross revenue $ 481 $ 73 $1,170 $ 406 $1,651 $ 479
Expenses
Transportation and selling - - 27 5 27 5
Operating 120 55 22 6 142 61
Purchased product 308 - 1,119 380 1,427 380
Depreciation, depletion
and amortization 7 4 1 1 8 5
-------------------------------------------------------------------------
Segment Income $ 46 $ 14 $ 1 $ 14 $ 47 $ 28
-------------------------------------------------------------------------


Interim Report
For the three months ended March 31, 2003

EnCana Corporation
Notes to Consolidated Financial Statements (unaudited)

Capital Expenditures

March 31
------------------------
($ millions) 2003 2002
-------------------------------------------------------------------
Upstream
Canada $ 1,129 $ 348
United States 227 87
Ecuador 110 -
United Kingdom 24 39
Other Countries 25 3
Midstream & Marketing 54 1
Corporate 18 3
-------------------------------------------------------------------
Total $ 1,587 $ 481
-------------------------------------------------------------------

Capital and Total Assets
Capital Assets Total Assets
--------------------------------------------------
As at As at
--------------------------------------------------
March 31, December 31, March 31, December 31,
($ millions) 2003 2002 2003 2002
-------------------------------------------------------------------------
Upstream $ 22,292 $ 22,836 $ 26,681 $ 27,132
Midstream & Marketing 774 742 2,314 2,216
Corporate 205 192 415 492
Assets of Discontinued
Operations - - - 1,482
-------------------------------------------------------------------------
Total $ 23,271 $ 23,770 $ 29,410 $ 31,322
-------------------------------------------------------------------------
-------------------------------------------------------------------------


Interim Report
For the three months ended March 31, 2003

EnCana Corporation
Notes to Consolidated Financial Statements (unaudited)


4. DISCONTINUED OPERATIONS

On April 24, 2002, the Company adopted formal plans to exit from the
Houston-based merchant energy operation, which was included in the Midstream &
Marketing segment. Accordingly, these operations have been accounted for as
discontinued operations. The wind-down of these operations was substantially
completed at December 31, 2002.
On July 9, 2002, the Company announced that it planned to sell its 70
percent equity investment in the Cold Lake Pipeline System and its 100 percent
interest in the Express Pipeline System. Both crude oil pipeline systems were
acquired in the business combination with Alberta Energy Company Ltd. on April
5, 2002. Accordingly, these operations have been accounted for as discontinued
operations. On January 2, 2003 and January 9, 2003, the Company completed the
sale of its interest in the Cold Lake Pipeline System and Express Pipeline
System for total consideration of approximately $1.6 billion, including
assumption of related long-term debt, and recorded an after-tax gain on sale
of $263 million.
The following table presents the effect of the discontinued operations on
the Consolidated Financial Statements:

Consolidated Statement of Earnings For the three months ended
---------------------------
March 31
---------------------------
($ millions) 2003 2002 (*)
-----------------------------------------------------------------------

Revenues $ - $ 746
-----------------------------------------------------------------------
Expenses
Operating - -
Purchased product - 733
Administrative - 10
(Gain) on discontinuance (343) -
-----------------------------------------------------------------------
(343) 743
-----------------------------------------------------------------------
Net Earnings Before Income Tax 343 3
Income tax expense 80 1
-----------------------------------------------------------------------
Net Earnings from Discontinued
Operations $ 263 $ 2
-----------------------------------------------------------------------
-----------------------------------------------------------------------
(*) The above table does not include any financial information for the
three months ended March 31, 2002 related to Midstream-Pipelines as
EnCana did not, at that time, own the pipelines which have been
discontinued.


5. FOREIGN EXCHANGE (GAIN)

March 31
---------------------------
($ millions) 2003 2002
-----------------------------------------------------------------------
Unrealized foreign exchange
(gain) on translation of U.S.
dollar debt $ (245) $ (2)
Other foreign exchange (gains) (49) (8)
-----------------------------------------------------------------------
$ (294) $ (10)
-----------------------------------------------------------------------



Interim Report
For the three months ended March 31, 2003

EnCana Corporation
Notes to Consolidated Financial Statements (unaudited)

6. INCOME TAXES

March 31
---------------------------
($ millions) 2003 2002
----------------------------------------------------------------------
Provision for Income Taxes
Current
Canada $ 23 $ 37
United States - -
Ecuador 12 -
United Kingdom - 3
----------------------------------------------------------------------
35 40
Future 414 42
----------------------------------------------------------------------
$ 449 $ 82
----------------------------------------------------------------------

7. LONG-TERM DEBT
As at As at
March 31, December 31,
($ millions) 2003 2002
----------------------------------------------------------------------
Canadian Dollar Denominated Debt
Revolving credit and term loan
borrowings $ 333 $ 1,388
Unsecured notes and debentures 1,825 1,825
----------------------------------------------------------------------
2,158 3,213
----------------------------------------------------------------------

U.S. Dollar Denominated Debt
U.S. revolving credit and term loan
borrowings 469 696
U.S. unsecured notes and debentures 3,251 3,608
----------------------------------------------------------------------
3,720 4,304
----------------------------------------------------------------------

Increase in Value of Debt Acquired (Note A) 89 90
Current Portion of Long-term Debt (100) (212)
----------------------------------------------------------------------
$ 5,867 $ 7,395
----------------------------------------------------------------------
----------------------------------------------------------------------
(A) Increase in Value of Debt Acquired
Certain of the notes and debentures of the Company were acquired in
the business combination with Alberta Energy Company Ltd. on April 5,
2002 and were accounted for at their fair value at the date 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 24 years.


Interim Report
For the three months ended March 31, 2003

EnCana Corporation
Notes to Consolidated Financial Statements (unaudited)


8. SHARE CAPITAL

March 31, 2003 December 31, 2002
(millions) Number Amount Number Amount
-----------------------------------------------------------------------
Common Shares Outstanding,
Beginning of Year 478.9 $8,732 254.9 $ 196
Shares Issued to AEC Shareholders - - 218.5 8,397
Shares Issued under Option Plans 1.7 44 5.5 139
-----------------------------------------------------------------------
Common Shares Outstanding,
End of Period 480.6 $8,776 478.9 $8,732
-----------------------------------------------------------------------

The Company has a stock-based compensation plan ("EnCana plan") that
allows 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 plan are generally fully
exercisable after three years and expire five years after the grant date.
Options granted under previous EnCana and Canadian Pacific Limited replacement
plans expire 10 years from the date the options were granted.

The following tables summarize the information about options to purchase
common shares at March 31, 2003:

Weighted
Stock Options Average Exercise
(millions) Price ($)
-----------------------------------------------------------------------
Outstanding, Beginning of Year 29.6 39.74
Granted under EnCana Plan 0.3 48.00
Exercised (1.7) 25.80
Forfeited (0.5) 46.46
-----------------------------------------------------------------------
Outstanding, End of Period 27.7 40.57
-----------------------------------------------------------------------
Exercisable, End of Period 15.9 35.00
-----------------------------------------------------------------------


Outstanding Options Exercisable Options
-------------------------------------------------------
Weighted
Number of Average Weighted Number of Weighted
Options Remaining Average Options Average
Range of Exercise Outstanding Contractual Exercise Outstanding Exercise
Price ($) (millions) Life (years)Price ($) (millions) Price ($)
------------------------------------------------------------------------
13.50 to 19.99 2.7 1.2 18.88 2.7 18.88
20.00 to 24.99 1.8 2.1 22.24 1.8 22.24
25.00 to 29.99 2.9 2.1 26.57 2.9 26.57
30.00 to 43.99 1.7 2.9 38.76 1.5 38.25
44.00 to 53.00 18.6 3.9 47.91 7.0 47.43
------------------------------------------------------------------------
27.7 3.0 40.57 15.9 35.00
------------------------------------------------------------------------

Interim Report
For the three months ended March 31, 2003

EnCana Corporation
Notes to Consolidated Financial Statements (unaudited)

The Company does not record compensation expense in the Consolidated
Financial Statements for share options granted to employees and directors. If
the fair-value method had been used, the Company's Net Earnings and Net
Earnings per Common Share would approximate the following pro forma amounts:

March 31
--------------------
($ millions, except per share amounts) 2003 2002
------------------------------------------------------------------------
Compensation Costs 13 5

Net Earnings
As reported 1,246 133
Pro forma 1,233 128

Net Earnings per Common Share
Basic
As reported 2.61 0.52
Pro forma 2.58 0.50
Diluted
As reported 2.57 0.51
Pro forma 2.55 0.49
------------------------------------------------------------------------

The fair value of each option granted is estimated on the date of grant
using the Black-Scholes option-pricing model with weighted average assumptions
for grants as follows:

March 31
2003 2002
------------------------------------------------------------------------
Weighted Average Fair Value of Options Granted $13.05 $11.94
Risk Free Interest Rate 4.19% 4.46%
Expected Lives (years) 3.00 3.00
Expected Volatility 0.33 0.35
Annual Dividend per Share $ 0.40 $ 0.40
------------------------------------------------------------------------
------------------------------------------------------------------------

9. PER SHARE AMOUNTS

The following table summarizes the common shares used in calculating net
earnings per common share.

March 31
--------------------
(millions) 2003 2002
------------------------------------------------------------------------
Weighted Average Common Shares
Outstanding - Basic 479.9 255.3
Effect of Dilutive Securities 7.0 5.7
Weighted Average Common Shares
Outstanding - Diluted 486.9 261.0


Interim Report
For the three months ended March 31, 2003

EnCana Corporation
Notes to Consolidated Financial Statements (unaudited)


10. FINANCIAL INSTRUMENTS AND RISK MANAGEMENT

Unrecognized gains (losses) on risk management activities are as follows:
As at
($ millions) March 31,
2003
---------------------------------------------
Commodity Price Risk (Note A)
Natural gas $ 98
Crude oil (181)
Gas storage optimization 7
Power (3)
Foreign Currency Risk (15)
Interest Rate Risk 58
---------------------------------------------
$(36)
---------------------------------------------

Information with respect to foreign currency risk and interest rate risk
contracts in place at December 31, 2002, is disclosed in Note 19 to the
Company's annual audited Consolidated Financial Statements. No significant new
contracts have been entered into as at March 31, 2003.

A) Commodity Price Risk

Natural Gas
At March 31, 2003, the fair value of financial instruments that related
to the corporate gas risk management activities was $63 million. The contracts
were as follows:

Notional
Volumes Financial/
(MMcf/d) Physical Term
-------------------------------------------------------------------
Sales Contracts
Fixed AECO price 352 Financial 2003-2004
Fixed AECO price 6 Physical 2003
Fixed AECO price 74 Financial 2003-2004
Fixed AECO price 10 Physical 2003
AECO Collars 71 Financial 2004
Nymex Fixed Price 110 Financial 2003-2004
Alliance Pipeline Mitigation 32 Financial 2003
Fixed Nymex to AECO basis 243 Financial 2003-2007
Fixed Nymex to Rockies basis 158 Financial 2003-2007
Fixed Nymex to Rockies basis 214 Physical 2003-2007
Nymex Collars 47 Physical 2003-2007
Purchase Contracts
Alliance Pipeline Mitigation 35 Physical 2003
Fuel 10 Physical 2003
-------------------------------------------------------------------
Gas Marketing Financial Activities
Gas Marketing Physical Activities
-------------------------------------------------------------------


Unrecognized
Gain/(Loss)
Price (Cdn$ millions)
------------------------------------------------------------------------
Sales Contracts
Fixed AECO price 6.26 Cdn$/mcf $ (55)
Fixed AECO price 5.88 Cdn$/mcf (1)
Fixed AECO price 2.96 US$/mmbtu (110)
Fixed AECO price 3.34 US$/mmbtu (5)
AECO Collars 5.34-7.52 Cdn$/mcf 3
Nymex Fixed Price 3.97 US$/mmbtu (106)
Alliance Pipeline Mitigation 3.92 US$/mmbtu (16)
Fixed Nymex to AECO basis (0.51) US$/mmbtu 62
Fixed Nymex to Rockies basis (0.45) US$/mmbtu 117
Fixed Nymex to Rockies basis (0.48) US$/mmbtu 148
Nymex Collars 2.08-4.52 US$/mmbtu (11)
Purchase Contracts
Alliance Pipeline Mitigation 3.24 Cdn$/mcf 33
Fuel 5.15 Cdn$/mcf 4
------------------------------------------------------------------------
63
Gas Marketing Financial Activities 12
Gas Marketing Physical Activities 23
------------------------------------------------------------------------
$ 98
------------------------------------------------------------------------

The fair value of the financial instruments that related to the gas
marketing activities was an unrecognized gain of $12 million. These activities
are part of the ongoing operations of the Company's proprietary production
management and the financial transactions are directly related to physical
sales. The corresponding physical transactions have an unrecognized gain of
$23 million.


Interim Report
For the three months ended March 31, 2003

EnCana Corporation
Notes to Consolidated Financial Statements (unaudited)

Crude Oil
As at March 31, 2003, the Company's corporate oil risk management
activities had an unrecognized loss of $181 million. The contracts were as
follows:

Notional Average Unrecognized
Volumes Price Gain/(Loss)
(bbl/d) Term (US$/bbl) (Cdn$ millions)
-------------------------------------------------------------------------
Fixed WTI NYMEX Price 85,000 2003 25.28 $ (77)
Fixed WTI NYMEX Price 62,500 2004 23.13 (53)
Collars on WTI NYMEX 40,000 2003 21.95-29.00 (16)
Collars on WTI NYMEX 62,500 2004 20.00-25.69 (35)
-------------------------------------------------------------------------
$ (181)
-------------------------------------------------------------------------

Gas Storage Optimization
As part of the Company's gas storage optimization program, the Company
has entered into financial instruments at various locations and terms over the
next 12 months to manage the price volatility of the corresponding physical
transactions and inventory.

As at March 31, 2003, the unrecognized gain on financial instruments was
$10 million, which was as follows:


Unrecognized
Notional Price Gain/(Loss)
Volumes (bcf) (US$/mcf) (Cdn$ millions)
-------------------------------------------------------------------------
Purchases 153.5 5.27 $ (15)
Sales 165.4 5.38 25
-------------------------------------------------------------------------
10
Physical Contracts (3)
-------------------------------------------------------------------------
$ 7
-------------------------------------------------------------------------
>>
The net unrecognized gain of $7 million does not reflect unrealized gains
on physical inventory in storage.

Natural Gas Liquids
As at December 31, 2002, Kinetic Resources USA Inc, a partnership in
which the Company holds a 75 percent interest, had sold call options and held
various fixed price purchase and sale contracts which had since expired.

Power
As part of the business combination with AEC, the Company acquired two
electricity contracts. These contracts were originally entered into as part of
an electricity cost management strategy. At March 31, 2003, the unrecognized
loss on these contracts was $3 million.


11. RECLASSIFICATION

Certain information provided for prior periods has been reclassified to
conform to the presentation adopted in 2003.

For further information: Investor contact: EnCana Corporate Development: Sheila McIntosh, Senior Vice-President, Investor Relations, (403) 645-2194; Greg Kist, Manager, Investor Relations, (403) 645-4737; Media contact: Alan Boras, Manager, Media Relations, (403) 645-4747

ECA stock price

TSX $15.12 Can 0.200

NYSE $11.85 USD 0.160

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