EnCana generates 2006 cash flow of US$7.2 billion, or $8.56 per share

CALGARY, February 15, 2007 - EnCana Corporation (TSX & NYSE: ECA) today
reports a 3 percent increase in 2006 cash flow per share diluted to US$8.56,
or $7.2 billion. Total operating earnings per share diluted in 2006 increased
7 percent to $3.91, or $3.27 billion. Net earnings per share diluted were
$6.76, or $5.65 billion, which includes after-tax gains of $2.38 billion due
to unrealized mark-to-market accounting for commodity price hedges, gains on
sales of discontinued operations and tax rate changes.
    Natural gas and oil reserves added through drilling replaced 197 percent
of EnCana's 2006 production in continuing operations and increased North
American proved reserves by 9 percent to 19.2 trillion cubic feet of gas
equivalent (Tcfe). Finding and development costs in total operations were
$1.99 per thousand cubic feet equivalent (Mcfe).

    Strong financials, resource play production grows 12 percent
    "EnCana achieved strong financial results and solid operating performance
in 2006. We continued to fortify our future by adding close to double the
proved reserves that we produced in 2006, at a competitive cost of about $2
per thousand cubic feet equivalent. Our natural gas production was up
4 percent, while our key resource play production grew 12 percent year- over-
year. We achieved all this in a tough operating environment for the industry
marked by record breaking activity levels," said Randy Eresman, EnCana's
President & Chief Executive Officer.
    Transformation to unconventional gas and oil complete
    "The year also marked the completion of EnCana's transformation into
essentially a pure North American producer focused on unconventional natural
gas and integrated oilsands - a strategic position that we believe will create
sustainable profitable growth for our company. All of EnCana's production and
reserves are now onshore North America," Eresman said.
    Dividend doubled
    "As a reflection of our increased confidence in the sustainable nature of
our North American unconventional business model, the board of directors has
doubled our quarterly dividend to 20 cents per share," Eresman said.
    IMPORTANT NOTE: 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 is reporting its Ecuador operations and its
natural gas storage business as discontinued because EnCana sold them. Total
results, which include results from Ecuador and natural gas storage, are
reported in the company's financial statements included in this news release
and in supplementary documents posted on its website - http://www.encana.com. The
company's financial statements are prepared in accordance with Canadian
generally accepted accounting principles (GAAP).
    <<
    2006 Highlights
    ---------------
    Financial
      -   Cash flow per share diluted increased 3 percent to $8.56
      -   Operating earnings per share diluted up 7 percent to $3.91
      -   Net earnings per share diluted up 76 percent to $6.76
      -   Generated $892 million in free cash flow (as defined in Note 1 on
          page 8)
      -   Net divestitures of $3.0 billion, resulting in net capital
          investment of $3.3 billion
      -   Purchased 85.6 million EnCana shares at an average share price of
          $49.26 under the Normal Course Issuer Bid for a total cost of
          $4.2 billion
      -   Reduced shares outstanding at year end by 9 percent, net of share
          option exercises
      -   At year end, net debt-to-adjusted-EBITDA was 0.6 times and net
          debt-to-capitalization was 27 percent
    Operating
      -   Key resource play production up 12 percent
      -   Natural gas production of 3.37 billion cubic feet per day (Bcf/d),
          up 4 percent
      -   Oil and natural gas liquids (NGLs) production of about
          167,100 barrels per day (bbls/d), down 26 percent, primarily due to
          the sale of Ecuador oil assets, which produced an average of
          12,366 bbls/d in 2006
      -   Operating costs of 86 cents per thousand cubic feet equivalent
          (Mcfe) for continuing operations, up 21 percent due to inflation, a
          stronger Canadian dollar and higher electricity costs
      -   Upstream capital investment in continuing operations of
          $6.2 billion
    Reserves
      -   Added 3.1 Tcfe of proved reserves with drill bit additions and
          revisions in continuing operations
      -   Added 2.3 Tcfe of proved reserves in total operations, taking into
          account the sale of about 822 billion cubic feet equivalent (Bcfe)
          of proved reserves largely as a result of the Ecuador divestiture
      -   Proved reserves additions included 160 million bbls (960 Bcfe) at
          the Foster Creek and Christina Lake oilsands key resource plays
      -   Proved reserves increased 9 percent in continuing operations and
          4 percent in total operations to 19.2 Tcfe
      -   Finding and development (F&D) costs averaged $1.99 per Mcfe for
          total operations
      -   Production replacement of 197 percent for continuing operations;
          144 percent for total operations, which includes the sale of
          Ecuador reserves
      -   Average three-year reserve replacement cost of $1.56 per Mcfe for
          continuing operations; $1.34 per Mcfe for total operations
    2006 strategic results
      -   Created an integrated heavy oil business with ConocoPhillips
          composed of two 50/50 entities - one upstream and one downstream -
          which became effective January 2, 2007. The integrated business
          intends to produce 400,000 barrels of Canadian bitumen and refine
          275,000 barrels of bitumen at two U.S. refineries by 2015.
      -   Completed sale of Ecuador assets for $1.1 billion and sale of
          interest in Brazil oil discovery for proceeds of $367 million
      -   Sold natural gas storage business for $1.5 billion
      -   Received environmental impact statement approval for Jonah gas
          field, which enables advancing toward full development of this key
          resource play

    -------------------------------------------------------------------------
                   Financial Summary - Total Consolidated
    -------------------------------------------------------------------------
     (for the period
      ended December 31)
     ($ millions, except    Q4       Q4      %                          %
      per share amounts)   2006     2005   change     2006     2005   change
    -------------------------------------------------------------------------
    Cash flow             1,761    2,510     - 30    7,161    7,426      - 4
      Per share diluted    2.18     2.88     - 24     8.56     8.35      + 3
    -------------------------------------------------------------------------
    Net earnings            663    2,366     - 72    5,652    3,426     + 65
      Per share diluted    0.82     2.71     - 70     6.76     3.85     + 76
    -------------------------------------------------------------------------
    Operating earnings(1)   675    1,271     - 47    3,271    3,241      + 1
      Per share diluted    0.84     1.46     - 42     3.91     3.64      + 7
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
            Earnings Reconciliation Summary - Total Consolidated
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Net earnings from
     continuing
     operations             643    1,869     - 66    5,051    2,829     + 79
    Net earnings from
     discontinued
     operations              20      497     - 96      601      597      + 1
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Net Earnings            663    2,366     - 72    5,652    3,426     + 65
    (Add back losses &
     deduct gains)
    Unrealized mark-to-
     market hedging gain
     (loss), after-tax       95      746             1,370     (277)
    Unrealized foreign
     exchange gain (loss)
     on translation of
     U.S. dollar debt
     issued in Canada,
     after-tax             (128)     (21)                -       92
    Future tax recovery
     due to Canada and
     Alberta tax rate
     reductions               -        -               457        -
    Gain on sale of
     discontinued
     operations,
     after-tax(2)            21      370               554      370
    -------------------------------------------------------------------------
    Operating earnings      675    1,271     - 47    3,271    3,241      + 1
      Per share diluted    0.84     1.46     - 42     3.91     3.64      + 7
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (1) Operating earnings is a non-GAAP measure that shows net earnings
        excluding non-operating items such as the after-tax impacts of the
        gain on the sale of discontinued operations, the after-tax gain/loss
        on unrealized mark-to-market accounting for derivative instruments,
        the after-tax gain/loss on translation of U.S. dollar denominated
        debt issued in Canada and the effect of the reduction in income tax
        rates.
    (2) In 2006, gain on sale of natural gas storage business and loss on
        sale of Ecuador assets

    -------------------------------------------------------------------------
    Cash flow information 2006
    (for the period ended December 31, $ millions)               Q4     2006
    -------------------------------------------------------------------------
    Cash from Operating Activities                            1,697    7,973
    Deduct (Add back):
      Net change in other assets and liabilities                 90      138
      Net change in non-cash working capital from
       continuing operations                                     39    3,343
      Net change in non-cash working capital from
       discontinued operations                                 (193)  (2,669)
    -------------------------------------------------------------------------
    Cash Flow(3)                                              1,761    7,161
    Cash flow from Discontinued Operations                       19      118
    -------------------------------------------------------------------------
    Cash flow from Continuing Operations                      1,742    7,043
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (3) 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, all
        of which are defined in the Consolidated Statement of Cash Flows.

    -------------------------------------------------------------------------
                          Sales & Drilling Summary
    -------------------------------------------------------------------------
                             Total Consolidated
    -------------------------------------------------------------------------
    (for the period
     ended December 31)     Q4       Q4      %                          %
    (After royalties)      2006     2005   change     2006     2005   change
    -------------------------------------------------------------------------
    Natural Gas sales
     (MMcf/d)             3,406    3,326      + 2    3,367    3,227      + 4
    -------------------------------------------------------------------------
      Natural gas sales
       per 1,000 shares
       (Mcf)                395      358     + 10    1,499    1,357     + 10
    -------------------------------------------------------------------------
    Oil and NGLs sales
     (bbls/d)           152,154  229,232     - 34  167,070  227,065     - 26
    -------------------------------------------------------------------------
      Oil and NGLs sales
       per 1,000 shares
       (Mcfe)               106      148     - 28      446      573     - 22
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Total sales
     (MMcfe/d)            4,319    4,701      - 8    4,369    4,589      - 5
    -------------------------------------------------------------------------
      Total sales per
       1,000 shares (Mcfe)  501      506      - 1    1,945    1,929      + 1
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Net wells drilled       809    1,146     - 29    3,657    4,676     - 22
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
                            Continuing Operations
    -------------------------------------------------------------------------
    North America Natural
     Gas sales (MMcf/d)   3,406    3,326      + 2    3,367    3,227      + 4
    -------------------------------------------------------------------------
    North America Oil
     and NGLs (bbls/d)  152,154  159,289      - 4  154,704  156,000      - 1
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Total sales
     (MMcfe/d)            4,319    4,282      + 1    4,295    4,163      + 3
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Net wells drilled       809    1,138     - 29    3,650    4,658     - 22
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Resource play growth
    --------------------
    Key resource play production grows 12 percent in 2006
    EnCana's production growth continues to be led by its 12 key resource
plays, which grew by about 12 percent in 2006 and comprise about 62 percent of
total production. The strongest growth came from the company's coalbed methane
(CBM) production in central and southern Alberta, Bighorn in west central
Alberta, Cutbank Ridge in northeast British Columbia and Fort Worth in Texas.
In-situ oilsands production from EnCana's Foster Creek steam- assisted gravity
drainage project grew about 27 percent in 2006.

                Growth from key North American resource plays
    -------------------------------------------------------------------------
                                                   Daily Production
                                      ---------------------------------------
    Resource Play                                        2006
                                      ---------------------------------------
                                        Full
                                        Year      Q4      Q3      Q2      Q1
    -------------------------------------------------------------------------
    Natural Gas            (MMcf/d)
    Jonah                                464     487     455     450     461
    Piceance                             326     335     331     324     316
    East Texas                            99      95     106      93      99
    Fort Worth                           101      99     104     108      93
    Greater Sierra                       213     212     209     224     208
    Cutbank Ridge                        170     199     167     173     140
    Bighorn                               91      99      97      95      72
    CBM(1)                               194     211     209     179     177
    Shallow Gas                          600     601     593     590     615
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Oil                    (Mbbls/d)
    Foster Creek                          37      41      37      33      36
    Christina Lake                         6       6       6       6       6
    Pelican Lake                          24      20      23      22      29
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Total                  (MMcfe/d)   2,656   2,740   2,668   2,601   2,609
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    % change from prior
     year's period                      12.3     6.7    12.1    12.5    18.8
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
                                                   Daily Production
                                      ---------------------------------------
    Resource Play                                       2005
                                      ---------------------------------------
                                        Full
                                        Year      Q4      Q3      Q2      Q1
    -------------------------------------------------------------------------
    Natural Gas            (MMcf/d)
    Jonah                                435     454     440     416     431
    Piceance                             307     326     302     302     300
    East Texas                            90      98      94      85      82
    Fort Worth                            70      88      66      63      61
    Greater Sierra                       219     226     225     228     195
    Cutbank Ridge                         92     125     105      80      56
    Bighorn                               55      56      57      53      56
    CBM(1)                               112     165     117     104      59
    Shallow Gas                          625     625     616     633     625
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Oil                    (Mbbls/d)
    Foster Creek                          29      35      27      24      30
    Christina Lake                         5       5       6       7       4
    Pelican Lake                          26      28      27      27      21
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Total                  (MMcfe/d)   2,366   2,567   2,381   2,312   2,197
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    % change from prior
     year's period                      20.0
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (1) CBM 2005 volumes restated to report commingled gas volumes from the
        coal and sand intervals based on regulatory approval.

               Drilling activity in key North American resource plays
    -------------------------------------------------------------------------
                                                  Net Wells Drilled
                                      ---------------------------------------
    Resource Play                                        2006
                                      ---------------------------------------
                                        Full
                                        Year      Q4      Q3      Q2      Q1
    -------------------------------------------------------------------------
    Natural Gas
    Jonah                                163      41      48      48      26
    Piceance                             220      50      48      59      63
    East Texas                            59      11      12      17      19
    Fort Worth                            97      19      22      27      29
    Greater Sierra                       115       5      16      34      60
    Cutbank Ridge                        116      19      35      36      26
    Bighorn                               52       7       7      18      20
    CBM(1)                               729     157     156      35     381
    Shallow Gas                        1,164     326     442     199     197
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Oil
    Foster Creek                           6       -       -       -       6
    Christina Lake                         2       -       -       -       2
    Pelican Lake                           -       -       -       -       -
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Total net wells                    2,723     635     786     473     829
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
                                                  Net Wells Drilled
                                      ---------------------------------------
    Resource Play                                       2005
                                      ---------------------------------------
                                        Full
                                        Year      Q4      Q3      Q2      Q1
    -------------------------------------------------------------------------
    Natural Gas
    Jonah                                104      21      25      30      28
    Piceance                             266      55      69      65      77
    East Texas                            84      20      21      22      21
    Fort Worth                            59      20      18      12       9
    Greater Sierra                       164      25      33      47      59
    Cutbank Ridge                        135      34      40      38      23
    Bighorn                               51      20      10      10      11
    CBM(1)                             1,245     344     314     242     345
    Shallow Gas                        1,267     288     341     365     273
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Oil
    Foster Creek                          39      13      14       2      10
    Christina Lake                         -       -       -       -       -
    Pelican Lake                          52       -       3      33      16
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Total net wells                    3,466     840     888     866     872
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (1) CBM 2005 wells restated to report commingled gas drilling from the
        coal and sand intervals based on regulatory approval.

    Year-end 2006 proved reserves
    -----------------------------
    EnCana achieved 9 percent growth in proved reserves from continuing
operations at a competitive finding and development cost of less than $2.00
per Mcfe
    Total natural gas and liquids proved reserves
      -   Proved reserves increased 4 percent to 19.2 Tcfe
      -   Proved reserves in North America (continuing operations) increased
          9 percent
      -   Proved reserves additions were 3.1 Tcfe in continuing operations,
          compared to production of 1.6 Tcfe
    Natural gas reserves
      -   Proved gas reserves increased 5 percent to 12.4 Tcf
      -   Proved gas additions were 1.9 Tcf, compared to production of
          1.2 Tcf
      -   Gas production replacement of 152 percent
    Oil and NGLs reserves
      -   Proved oil and NGLs reserves in continuing operations increased
          15 percent to 1.1 billion bbls
      -   Proved oil and NGLs additions in continuing operations were
          205 million bbls, compared to production of 57 million bbls
      -   Oil and NGLs production replacement of 357 percent in continuing
          operations
    Bitumen reserves (included in oil and NGLs)
      -   Bitumen reserves up 22 percent to 800 million bbls
      -   Proved bitumen additions were 160 million bbls compared to
          production of 17 million bbls
    Reserves additions costs
      -   Total three-year reserves replacement cost averaged $1.34 per Mcfe
      -   Total 2006 finding and development cost of $1.99 per Mcfe
    All of EnCana's proved reserves are evaluated by independent qualified
reserves evaluators.
    -------------------------------------------------------------------------
                     2006 Proved Reserves Reconciliation
    -------------------------------------------------------------------------
                                                        Crude oil and
                               Natural gas           Natural Gas Liquids
                                  (Bcf)                   (MMbbls)
    -------------------------------------------------------------------------
                        Canada     USA     Total  Canada   Canada    Canada
                                                   Conv.   Bitumen    Total
    -------------------------------------------------------------------------
    Start of 2006        6,517    5,267   11,784    275.1    657.4    932.5
    Revisions &
     improved recovery     301      (88)     213     27.5    (66.5)   (39.0)
    Extensions &
     discoveries         1,014      606    1,620     12.6    226.1    238.7
    Acquisitions             -       68       68        -        -        -
    Divestitures            (6)     (32)     (38)    (0.1)       -     (0.1)
    Production            (798)    (431)  (1,229)   (35.3)   (17.4)   (52.7)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    End of 2006          7,028    5,390   12,418    279.8    799.6  1,079.4
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Developed            4,718    2,964    7,682    215.3    101.6    316.9
    -------------------------------------------------------------------------
    Undeveloped          2,310    2,426    4,736     64.5    698.0    762.5
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Total
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    % Change(2)            + 8      + 2      + 5      + 2     + 22     + 16
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Partnership
     contribution(3)         -        -        -        -   (398.0)  (398.0)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Effective
     Jan. 2, 2007        7,028    5,390   12,418    279.8    401.6    681.4
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    -----------------------------------------------------------------
                   2006 Proved Reserves Reconciliation
    -----------------------------------------------------------------
                              Crude oil and
                           Natural Gas Liquids     Gas Equivalent(1)
                                 (MMbbls)                (Bcfe)
    -----------------------------------------------------------------
                         USA    Ecuador   Total    Total   Continuing
                                                             Ops.(4)
    -----------------------------------------------------------------
    Start of 2006         53.1    135.0  1,120.6   18,507   17,697
    Revisions &
     improved recovery    (1.1)       -    (40.1)     (27)     (27)
    Extensions &
     discoveries           6.4        -    245.1    3,091    3,091
    Acquisitions           0.3        -      0.3       69       69
    Divestitures             -   (130.6)  (130.7)    (822)     (38)
    Production            (4.7)    (4.4)   (61.8)  (1,600)  (1,574)
    -----------------------------------------------------------------
    -----------------------------------------------------------------
    End of 2006           54.0        -  1,133.4   19,218   19,218
    -----------------------------------------------------------------
    -----------------------------------------------------------------
    Developed             33.5        -    350.4    9,784    9,784
    -----------------------------------------------------------------
    Undeveloped           20.5        -    783.0    9,434    9,434
    -----------------------------------------------------------------
    -----------------------------------------------------------------
    Total                                          19,218   19,218
    -----------------------------------------------------------------
    -----------------------------------------------------------------
    % Change(2)            + 2               + 1      + 4      + 9
    -----------------------------------------------------------------
    -----------------------------------------------------------------
    Partnership
     contribution(3)         -        -   (398.0)  (2,388)  (2,388)
    -----------------------------------------------------------------
    -----------------------------------------------------------------
    Effective
     Jan. 2, 2007         54.0        -    735.4   16,830   16,830
    -----------------------------------------------------------------
    -----------------------------------------------------------------
    (1) Gas equivalency has been calculated by EnCana. See the Advisory
        Regarding Reserves Data and Other Oil and Gas Information
        accompanying this release.
    (2) EnCana's growth in proved reserves in 2006 is expressed as the
        percentage change from the start to the end of the year.
    (3) Effective January 2, 2007, EnCana established a heavy oil integration
        arrangement with ConocoPhillips, resulting in ConocoPhillips
        acquiring a 50 percent interest in EnCana's Foster Creek and
        Christina Lake oilsands projects and EnCana acquiring a 50 percent
        interest in ConocoPhillips' Wood River and Borger refineries.
    (4) Continuing operations are composed of North American operations, and
        exclude the Ecuador assets, which were sold in 2006.

    -------------------------------------------------------------------------
                            Proved Reserves Costs
    -------------------------------------------------------------------------
                                                                   Cumulative
    Capital investment ($ millions)   2006       2005       2004     2004-06
    -------------------------------------------------------------------------
      Finding and development         6,107      6,231      4,792     17,130
      Acquisitions                      368        472      3,469      4,309
      Divestitures                   (1,639)    (2,552)    (3,827)    (8,018)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Net capital investment            4,836      4,151      4,434     13,421
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Total reserve additions   (Bcfe)  2,311      4,542      3,163     10,016
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
                                                                      3-year
                            ($/Mcfe)                                 average
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Reserve replacement cost           2.09       0.91       1.40       1.34
    -------------------------------------------------------------------------
    Finding, development and
     acquisition cost                  2.07       1.36       1.70       1.66
    -------------------------------------------------------------------------
    Finding and development cost       1.99       1.29       1.44       1.52
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    NOTE: This table excludes the impact of the bitumen reserves revisions of
          2004 and bitumen reserves reinstatement in 2005.

    2006 natural gas and oil prices
    -------------------------------
    -------------------------------------------------------------------------
                       2006 Natural Gas and Oil Prices
                        (excludes financial hedging)
    -------------------------------------------------------------------------
                            Q4       Q4      %                          %
    Natural gas ($/Mcf)    2006     2005   change     2006     2005   change
    -------------------------------------------------------------------------
    NYMEX Price            6.55    12.96     - 49     7.22     8.62     - 16
    EnCana Realized
     Gas Price             5.79    10.29     - 44     6.25     7.46     - 16
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Oil and NGLs ($/bbl)
    -------------------------------------------------------------------------
    WTI Price             60.17    60.05      + 1    66.25    56.70     + 17
    Western Canada
     Select (WCS)         39.08    36.40      + 7    44.69    36.39     + 23
    Differential WTI/WCS  21.09    23.65     - 11    21.56    20.31      + 6
    EnCana Realized
     Liquids Price        38.69    37.16      + 4    43.71    36.17     + 21
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Price risk management
    Detailed risk management positions at December 31, 2006 are presented in
Note 14 to the 2006 unaudited interim consolidated financial statements. In
2006, EnCana's financial price risk management measures resulted in realized
gains of approximately $270 million after-tax, composed of a $386 million gain
on gas hedges, a $126 million loss on oil hedges and a $10 million gain on
other hedges.
    More than 50 percent of expected 2007 natural gas and liquids production
    has downside price protection
    In 2007 EnCana has about 1.76 Bcf/d of expected gas production with
downside price protection, composed of 1.52 Bcf/d under fixed price contracts
at an average NYMEX equivalent price of $8.49 per Mcf and 240 million cubic
feet per day with put options at a NYMEX equivalent strike price of $6.00 per
Mcf. In oil, EnCana has about 126,000 bbls/d of expected 2007 oil production
with downside price protection, composed of 34,500 bbls/d under fixed price
contracts at an average West Texas Intermediate (WTI) price of $64.40 per bbl,
plus put options on 91,500 bbls/d at an average strike price of WTI $55.34 per
bbl. This price hedging strategy helps reduce uncertainty in cash flow during
periods of commodity price volatility.
    2007 gas production forecast to increase 9 percent per share
    In 2007, natural gas production, which represents more than 80 percent of
EnCana's production, is expected to increase about 3 percent, or 9 percent per
share based on expected share purchases, to about 3.46 Bcf/d. Oil production
is expected to average about 138,000 bbls/d. Total production in 2007, prior
to the allocation of oilsands volumes to ConocoPhillips as part of the heavy
oil integration, was expected to be up 4 percent. With the creation of the
integrated oilsands business, EnCana expects 2007 total production to be about
4.28 Bcfe/d, about the same as in 2006, or an increase of about 4 percent per
share.
    Corporate developments
    ----------------------
    Quarterly dividend increased 100 percent to 20 cents per share
    EnCana's board of directors declared a quarterly dividend of 20 cents per
share, which is payable on March 30, 2007 to common shareholders of record as
of March 15, 2007. This is double the amount of the previous quarterly
dividend.
    EnCana Normal Course Issuer Bid purchases
    In 2006, EnCana purchased about 85.6 million common shares, representing
approximately 10 percent of the company's outstanding shares on December 31,
2005, at an average price of approximately $49.26 per common share. As at
December 31, 2006 there were approximately 778 million common shares issued
and outstanding in total. EnCana plans to fund its continuing Normal Course
Issuer Bid purchases with cash flow and proceeds from potential divestitures.
To date in 2007, EnCana has purchased about 10.8 million shares at an average
cost of $45.64 per share.
    Financial strength
    ------------------
    EnCana targets a net debt-to-capitalization ratio between 30 and 40
percent. EnCana's balance sheet strengthened during 2006. At December 31,
2006, the company's net debt-to-capitalization ratio was 27:73, down from
33:67 at the end of 2005. EnCana's net debt-to-adjusted-EBITDA multiple, on a
trailing 12-month basis, was 0.6 times at the end of 2006, down from 1.1 times
at the end of 2005.
    -------------------------------------------------------------------------
                            CONFERENCE CALL TODAY
    EnCana Corporation will host a conference call and webcast today to
    discuss fourth quarter and year-end 2006 financial and operating results
    at 11:00 a.m. MT (1:00 p.m. ET). To participate, please dial
    (877) 704-5384 (toll-free in North America) or (913) 312-1297
    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 February 15 until midnight February 19, 2007 by dialling
    (888) 203-1112 or (719) 457-0820 and entering access code 4419778.
    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, total operating
    earnings and free cash flow.
      -   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, all of which are defined on the Consolidated Statement
          of Cash Flows.
      -   Total operating earnings is a non-GAAP measure that shows net
          earnings excluding non-operating items such as the after-tax
          impacts of a gain on the sale of discontinued operations, 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 in Canada and the effect of the
          reduction in income tax rates.
          Management believes that these excluded items reduce the
          comparability of the company's underlying financial performance
          between periods. The majority of the unrealized gains/losses that
          relate to U.S. dollar debt issued in Canada are for debt with
          maturity dates in excess of five years.
      -   Free cash flow is a non-GAAP measure that EnCana defines as cash
          flow in excess of core capital investment.
    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 US$45 billion, EnCana is a
leading North American unconventional natural gas and integrated oilsands
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.
    RESERVES COST DEFINITIONS - Production replacement is calculated by
dividing reserves additions by production in the same period. Reserves
additions over a given period, in this case 2006, are calculated by summing
one or more of revisions and improved recovery, extensions and discoveries,
acquisitions and divestitures. Reserve replacement cost is calculated by
dividing total capital invested in finding, development and acquisitions net
of divestitures by reserve additions in the same period. Finding and
development cost is calculated by dividing total capital invested in finding
and development activities by additions to proved reserves, before
acquisitions and divestitures, which is the sum of revisions, extensions and
discoveries. Finding, development and acquisition cost is calculated by
dividing total capital invested in finding, development and acquisition
activities by additions to proved reserves, before divestitures, which is the
sum of revisions, extensions, discoveries and acquisitions. Proved reserves
added in 2006 included both developed and undeveloped quantities. Additions to
EnCana's proved undeveloped reserves were consistent with EnCana's resource
play focus. The company estimates that approximately two-thirds of its proved
undeveloped reserves will be developed within the next three to four years.
2006 finding, development and acquisition capital includes investment in long
lead time projects. EnCana uses the aforementioned metrics as indicators of
relative performance, along with a number of other measures. Many performance
measures exist, all measures have limitations and historical measures are not
necessarily indicative of future performance.
    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.
    Unbooked resource potential
    EnCana defines unbooked resource potential as quantities of oil and
natural gas on existing landholdings that are not yet classified as proved
reserves, but which EnCana believes may be moved into the proved reserves
category and produced in the future. EnCana employs a probability-weighted
approach in the calculation of these quantities, including statistical
distributions of resource play performance and areal extent. Consequently,
EnCana's unbooked resource potential necessarily includes quantities of
probable and possible reserves and contingent resources, as these terms are
defined in the Canadian Oil and Gas Evaluation Handbook.
    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, cash flow and increase in net asset
value); anticipated life of proved reserves; anticipated unbooked resource
potential; anticipated conversion of unbooked resource potential to proved
reserves; anticipated growth and success of resource plays and the expected
characteristics of resource plays; the expected proceeds from planned
divestitures; planned expansion of in-situ oilsands production; anticipated
crude oil and natural gas prices; anticipated expansion and production at
Foster Creek and Christina Lake; anticipated increased capacity for the two
U.S. refineries (including by 2015); anticipated drilling inventory; expected
proportion of total production and cash flows contributed by natural gas;
anticipated success of EnCana's market risk mitigation strategy and EnCana's
ability to participate in commodity price upside and to provide downside price
protection; anticipated purchases pursuant to the Normal Course Issuer Bid;
estimated recycle ratios; potential demand for natural gas; anticipated
production in 2007 and beyond; anticipated drilling; potential capital
expenditures and investment; potential oil, natural gas and NGLs sales in 2007
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 heavy 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 environmental and other
regulations or the interpretations of such 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 December 31, 2006

    EnCana Corporation

    U.S. DOLLARS

    CONSOLIDATED STATEMENT OF EARNINGS (unaudited)
                                     Three Months Ended  Twelve Months Ended
                                         December 31,        December 31,
    ($ millions, except           -------------------------------------------
     per share amounts)                2006       2005       2006       2005
    -------------------------------------------------------------------------
    REVENUES,
     NET OF ROYALTIES    (Note 3)
      Upstream                    $   2,812  $   3,525  $  11,342  $  10,772
      Market Optimization               735      1,417      3,007      4,267
      Corporate
       - Unrealized gain
         (loss) on risk
         management                     129        991      2,050       (466)
    -------------------------------------------------------------------------
                                      3,676      5,933     16,399     14,573
    EXPENSES             (Note 3)
      Production and
       mineral taxes                     80        162        349        453
      Transportation
       and selling                      275        211      1,070        845
      Operating                         428        452      1,655      1,438
      Purchased product                 702      1,376      2,862      4,159
      Depreciation,
       depletion and
       amortization                     766        751      3,112      2,769
      Administrative                     84         63        271        268
      Interest, net      (Note 6)       142        104        396        524
      Accretion of asset
       retirement
       obligation       (Note 10)        13         10         50         37
      Foreign exchange
       (gain) loss, net  (Note 7)       172         37         14        (24)
      Stock-based
       compensation -
       options                            -          3          -         15
      (Gain) on
       divestitures      (Note 5)        (2)         -       (323)         -
    -------------------------------------------------------------------------
                                      2,660      3,169      9,456     10,484
    -------------------------------------------------------------------------
    NET EARNINGS BEFORE
     INCOME TAX                       1,016      2,764      6,943      4,089
      Income tax
       expense           (Note 8)       373        895      1,892      1,260
    -------------------------------------------------------------------------
    NET EARNINGS FROM
     CONTINUING
     OPERATIONS                         643      1,869      5,051      2,829
    NET EARNINGS FROM
     DISCONTINUED
     OPERATIONS          (Note 4)        20        497        601        597
    -------------------------------------------------------------------------
    NET EARNINGS                  $     663  $   2,366  $   5,652  $   3,426
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    NET EARNINGS FROM
     CONTINUING
     OPERATIONS PER
     COMMON SHARE       (Note 13)
      Basic                       $    0.81  $    2.19  $    6.16  $    3.26
      Diluted                     $    0.80  $    2.14  $    6.04  $    3.18
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    NET EARNINGS PER
     COMMON SHARE       (Note 13)
      Basic                       $    0.84  $    2.77  $    6.89  $    3.95
      Diluted                     $    0.82  $    2.71  $    6.76  $    3.85
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    CONSOLIDATED STATEMENT OF RETAINED EARNINGS (unaudited)
                                                         Twelve Months Ended
                                                              December 31,
                                                        ---------------------
    ($ millions)                                             2006       2005
    -------------------------------------------------------------------------
    RETAINED EARNINGS, BEGINNING OF YEAR                $   9,481  $   7,935
    Net Earnings                                            5,652      3,426
    Dividends on Common Shares                               (304)      (238)
    Charges for Normal Course Issuer Bid     (Note 11)     (3,485)    (1,642)
    -------------------------------------------------------------------------
    RETAINED EARNINGS, END OF YEAR                      $  11,344  $   9,481
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    See accompanying Notes to Consolidated Financial Statements.

    CONSOLIDATED BALANCE SHEET  (unaudited)
                                                          As at        As at
                                                    December 31, December 31,
    ($ millions)                                           2006         2005
    -------------------------------------------------------------------------
    ASSETS
      Current Assets
        Cash and cash equivalents                     $     402    $     105
        Accounts receivable and accrued
         revenues                                         1,721        1,851
        Risk management                     (Note 14)     1,403          495
        Inventories                                         176          103
        Assets of discontinued operations    (Note 4)         -        1,050
    -------------------------------------------------------------------------
                                                          3,702        3,604
      Property, Plant and Equipment, net     (Note 3)    28,213       24,881
      Investments and Other Assets                          533          496
      Risk Management                       (Note 14)       133          530
      Assets of Discontinued Operations      (Note 4)         -        2,113
      Goodwill                                            2,525        2,524
    -------------------------------------------------------------------------
                                             (Note 3) $  35,106    $  34,148
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    LIABILITIES AND SHAREHOLDERS' EQUITY
      Current Liabilities
        Accounts payable and accrued
         liabilities                                  $   2,494    $   2,741
        Income tax payable                                  926          392
        Risk management                     (Note 14)        14        1,227
        Liabilities of discontinued
         operations                          (Note 4)         -          438
        Current portion of long-term debt    (Note 9)       257           73
    -------------------------------------------------------------------------
                                                          3,691        4,871
      Long-Term Debt                         (Note 9)     6,577        6,703
      Other Liabilities                                      79           93
      Risk Management                       (Note 14)         2          102
      Asset Retirement Obligation           (Note 10)     1,051          816
      Liabilities of Discontinued
       Operations                            (Note 4)         -          267
      Future Income Taxes                                 6,240        5,289
    -------------------------------------------------------------------------
                                                         17,640       18,141
    -------------------------------------------------------------------------
      Shareholders' Equity
        Share capital                       (Note 11)     4,587        5,131
        Paid in surplus                                     160          133
        Retained earnings                                11,344        9,481
        Foreign currency translation
         adjustment                                       1,375        1,262
    -------------------------------------------------------------------------
                                                         17,466       16,007
    -------------------------------------------------------------------------
                                                      $  35,106    $  34,148
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    See accompanying Notes to Consolidated Financial Statements.

    CONSOLIDATED STATEMENT OF CASH FLOWS (unaudited)
                                     Three Months Ended   Twelve Months Ended
                                         December 31,          December 31,
                                  -------------------------------------------
    ($ millions)                       2006       2005       2006       2005
    -------------------------------------------------------------------------
    OPERATING ACTIVITIES
      Net earnings from
       continuing
       operations                 $     643  $   1,869  $   5,051  $   2,829
      Depreciation,
       depletion and
       amortization                     766        751      3,112      2,769
      Future income
       taxes             (Note 8)       260        717        950         56
      Cash tax on sale
       of assets         (Note 5)         -        (13)        49        578
      Unrealized (gain)
       loss on risk
       management       (Note 14)      (141)      (985)    (2,060)       469
      Unrealized
       foreign exchange
       (gain) loss                      155         28         76        (50)
      Accretion of
       asset retirement
       obligation       (Note 10)        13         10         50         37
      (Gain) on
       divestitures      (Note 5)        (2)         -       (323)         -
      Other                              48         13        138        274
      Cash flow from
       discontinued
       operations                        19        120        118        464
      Net change in
       other assets
       and liabilities                   90       (108)       138       (281)
      Net change in
       non-cash working
       capital from
       continuing
       operations                        39      1,165      3,343        497
      Net change in
       non-cash working
       capital from
       discontinued
       operations                      (193)      (140)    (2,669)      (212)
    -------------------------------------------------------------------------
      Cash From
       Operating
       Activities                     1,697      3,427      7,973      7,430
    -------------------------------------------------------------------------
    INVESTING ACTIVITIES
      Capital
       expenditures      (Note 3)    (1,250)    (2,362)    (6,600)    (6,925)
      Proceeds on
       disposal of
       assets            (Note 5)        55         30        689      2,523
      Cash tax on sale
       of assets         (Note 5)         -         13        (49)      (578)
      Net change in
       investments and
       other                             40       (161)         2       (109)
      Net change in
       non-cash working
       capital from
       continuing
       operations                       188        165         19        330
      Discontinued
       operations                       180        572      2,557        239
    -------------------------------------------------------------------------
      Cash (Used in)
       Investing
       Activities                      (787)    (1,743)    (3,382)    (4,520)
    -------------------------------------------------------------------------
    FINANCING ACTIVITIES
      Net issuance
       (repayment) of
       revolving
       long-term debt                   646     (1,513)       134       (538)
      Repayment of
       long-term debt                     -       (145)       (73)    (1,104)
      Issuance of
       long-term debt                     -          -          -        429
      Issuance of
       common shares    (Note 11)        39         24        179        294
      Purchase of
       common shares    (Note 11)    (1,246)         -     (4,219)    (2,114)
      Dividends on
       common shares                    (78)       (64)      (304)      (238)
      Other                              (3)       (17)       (11)      (125)
    -------------------------------------------------------------------------
      Cash (Used in)
       Financing
       Activities                      (642)    (1,715)    (4,294)    (3,396)
    -------------------------------------------------------------------------
    DEDUCT: FOREIGN
     EXCHANGE LOSS ON
     CASH AND CASH
     EQUIVALENTS HELD
     IN FOREIGN CURRENCY                  -          1          -          2
    -------------------------------------------------------------------------
    INCREASE (DECREASE)
     IN CASH AND CASH
     EQUIVALENTS                        268        (32)       297       (488)
    CASH AND CASH
     EQUIVALENTS,
     BEGINNING OF PERIOD                134        137        105        593
    -------------------------------------------------------------------------
    CASH AND CASH
     EQUIVALENTS,
     END OF YEAR                  $     402  $     105  $     402  $     105
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    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 continuing operations are in the business of
    exploration for, and production and marketing of, natural gas, crude oil
    and natural gas liquids 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, 2005, 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, 2005.
    2.  CHANGE IN ACCOUNTING POLICIES AND PRACTICES
    On January 1, 2006, the Company adopted Emerging Issues Task Force
    ("EITF") Abstract No. 04-13 - Accounting for Purchases and Sales of
    Inventory with the Same Counterparty. In 2006, purchases and sales of
    inventory with the same counterparty that are entered into in
    contemplation of each other are recorded on a net basis in the
    Consolidated Statement of Earnings. This change has been adopted
    prospectively and has no effect on the net earnings of the reported
    periods. As a result of the adoption of this policy, reported Market
    Optimization revenues and purchased product costs for the three months
    and twelve months ended December 31, 2006 included offsets of
    $899 million and $3,238 million, respectively.
    3.  SEGMENTED INFORMATION
    The Company has defined its continuing operations into the following
    segments:
    -   Upstream includes the Company's exploration for, and development and
        production of, natural gas, crude oil and natural gas liquids and
        other related activities. The majority of the Company's Upstream
        operations are located in Canada and the United States. Frontier and
        international new ventures exploration is mainly focused on
        opportunities in Brazil, the Middle East, Greenland and France.
    -   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
        Upstream segment. 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
        instruments. Once amounts are settled, the realized gains and losses
        are recorded in the operating segment to which the derivative
        instrument relates.
    Market Optimization purchases substantially all of the Company's North
    American Upstream production for sale 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.
    Operations that have been discontinued are disclosed in Note 4.
    Results of Continuing Operations (For the three months ended December 31)
                                                                 Market
                                             Upstream         Optimization
                                     ----------------------------------------
                                          2006      2005      2006      2005
    -------------------------------------------------------------------------
    Revenues, Net of Royalties        $  2,812  $  3,525  $    735  $  1,417
    Expenses
      Production and mineral taxes          80       162         -         -
      Transportation and selling           276       208        (1)        3
      Operating                            428       415        13        32
      Purchased product                      -         -       702     1,376
      Depreciation, depletion
       and amortization                    743       731         4         1
    -------------------------------------------------------------------------
    Segment Income                    $  1,285  $  2,009  $     17  $      5
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

                                           Corporate(*)        Consolidated
                                     ----------------------------------------
                                          2006      2005      2006      2005
    -------------------------------------------------------------------------
    Revenues, Net of Royalties        $    129  $    991  $  3,676  $  5,933
    Expenses
      Production and mineral taxes           -         -        80       162
      Transportation and selling             -         -       275       211
      Operating                            (13)        5       428       452
      Purchased product                      -         -       702     1,376
      Depreciation, depletion
       and amortization                     19        19       766       751
    -------------------------------------------------------------------------
    Segment Income                    $    123  $    967  $  1,425  $  2,981
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
      Administrative                                            84        63
      Interest, net                                            142       104
      Accretion of asset
       retirement obligation                                    13        10
      Foreign exchange (gain)
       loss, net                                               172        37
      Stock-based compensation
       - options                                                 -         3
      (Gain) on divestitures (Note 5)                           (2)        -
    -------------------------------------------------------------------------
                                                               409       217
    -------------------------------------------------------------------------
    Net Earnings Before
     Income Tax                                              1,016     2,764
      Income tax expense                                       373       895
    -------------------------------------------------------------------------
    Net Earnings From
     Continuing Operations                                $    643  $  1,869
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (*) For the three months ended December 31, the pre-tax unrealized gain
        (loss) on risk management is recorded in the Consolidated Statement
        of Earnings as follows (see Note 14):
                                                              2006      2005
    -------------------------------------------------------------------------
    Revenues, Net of Royalties - Corporate                $    129  $    991
    Operating Expenses and Other - Corporate                    12        (6)
    -------------------------------------------------------------------------
    Total Unrealized Gain on Risk Management
     before-tax - Continuing Operations                   $    141  $    985
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Results of Continuing Operations (For the three months ended December 31)
    Upstream                                    Canada         United States
                                         ------------------------------------
                                             2006     2005     2006     2005
    -------------------------------------------------------------------------
    Revenues, Net of Royalties            $ 1,966  $ 2,331  $   765  $ 1,106
    Expenses
      Production and mineral taxes             20       29       60      133
      Transportation and selling              210      160       66       48
      Operating                               276      227       76       64
      Depreciation, depletion and
       amortization                           536      511      200      166
    -------------------------------------------------------------------------
    Segment Income                        $   924  $ 1,404  $   363  $   695
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
                                                 Other        Total Upstream
                                         ------------------------------------
                                             2006     2005     2006     2005
    -------------------------------------------------------------------------
    Revenues, Net of Royalties            $    81  $    88  $ 2,812  $ 3,525
    Expenses
      Production and mineral taxes              -        -       80      162
      Transportation and selling                -        -      276      208
      Operating                                76      124      428      415
      Depreciation, depletion and
       amortization                             7       54      743      731
    -------------------------------------------------------------------------
    Segment Income (Loss)                 $    (2) $   (90) $ 1,285  $ 2,009
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Upstream Geographic and Product Information (Continuing Operations)
    (For the three months ended December 31)
                                              Produced Gas
                       ------------------------------------------------------
                              Canada         United States         Total
                       ------------------------------------------------------
                           2006     2005     2006     2005     2006     2005
    -------------------------------------------------------------------------
    Revenues,
     Net of Royalties   $ 1,401  $ 1,852  $   706  $ 1,041  $ 2,107  $ 2,893
    Expenses
      Production and
       mineral taxes         11       20       54      127       65      147
      Transportation
       and selling           66       72       66       48      132      120
      Operating             166      144       76       64      242      208
    -------------------------------------------------------------------------
    Operating Cash Flow $ 1,158  $ 1,616  $   510  $   802  $ 1,668  $ 2,418
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

                                              Oil & NGLs
                       ------------------------------------------------------
                              Canada         United States         Total
                       ------------------------------------------------------
                           2006     2005     2006     2005     2006     2005
    -------------------------------------------------------------------------
    Revenues,
     Net of Royalties   $   565  $   479  $    59  $    65  $   624  $   544
    Expenses
      Production and
       mineral taxes          9        9        6        6       15       15
      Transportation
       and selling          144       88        -        -      144       88
      Operating             110       83        -        -      110       83
    -------------------------------------------------------------------------
    Operating Cash Flow $   302  $   299  $    53  $    59  $   355  $   358
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

                                                 Other        Total Upstream
                                         ------------------------------------
                                             2006     2005     2006     2005
    -------------------------------------------------------------------------
    Revenues, Net of Royalties            $    81  $    88  $ 2,812  $ 3,525
    Expenses
      Production and mineral taxes              -        -       80      162
      Transportation and selling                -        -      276      208
      Operating                                76      124      428      415
    -------------------------------------------------------------------------
    Operating Cash Flow                   $     5  $   (36) $ 2,028  $ 2,740
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Results of Continuing Operations
    (For the twelve months ended December 31)
                                                                  Market
                                               Upstream        Optimization
                                         ------------------------------------
                                             2006     2005     2006     2005
    -------------------------------------------------------------------------
    Revenues, Net of Royalties            $11,342  $10,772  $ 3,007  $ 4,267
    Expenses
      Production and mineral taxes            349      453        -        -
      Transportation and selling            1,054      832       16       13
      Operating                             1,605    1,351       62       85
      Purchased product                         -        -    2,862    4,159
      Depreciation, depletion
       and amortization                     3,025    2,688       12        8
    -------------------------------------------------------------------------
    Segment Income                        $ 5,309  $ 5,448  $    55  $     2
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

                                             Corporate(*)      Consolidated
                                         ------------------------------------
                                             2006     2005     2006     2005
    -------------------------------------------------------------------------
    Revenues, Net of Royalties            $ 2,050  $  (466) $16,399  $14,573
    Expenses
      Production and mineral taxes              -        -      349      453
      Transportation and selling                -        -    1,070      845
      Operating                               (12)       2    1,655    1,438
      Purchased product                         -        -    2,862    4,159
      Depreciation, depletion
       and amortization                        75       73    3,112    2,769
    -------------------------------------------------------------------------
    Segment Income (Loss)                 $ 1,987  $  (541) $ 7,351  $ 4,909
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
      Administrative                                            271      268
      Interest, net                                             396      524
      Accretion of asset
       retirement obligation                                     50       37
      Foreign exchange (gain)
       loss, net                                                 14      (24)
      Stock-based compensation
       - options                                                  -       15
      (Gain) on divestitures (Note 5)                          (323)       -
    -------------------------------------------------------------------------
                                                                408      820
    -------------------------------------------------------------------------
    Net Earnings Before Income Tax                            6,943    4,089
      Income tax expense                                      1,892    1,260
    -------------------------------------------------------------------------
    Net Earnings From Continuing Operations                 $ 5,051  $ 2,829
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (*) For the twelve months ended December 31, the pre-tax unrealized gain
        (loss) on risk management is recorded in the Consolidated Statement
        of Earnings as follows (see Note 14):
                                                               2006     2005
    -------------------------------------------------------------------------
    Revenues, Net of Royalties - Corporate                  $ 2,050  $  (466)
    Operating Expenses and Other - Corporate                     10       (3)
    -------------------------------------------------------------------------
    Total Unrealized Gain (Loss) on Risk Management
     before-tax - Continuing Operations                     $ 2,060  $  (469)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Results of Continuing Operations
    (For the twelve months ended December 31)
    Upstream                                    Canada         United States
                                         ------------------------------------
                                             2006     2005     2006     2005
    -------------------------------------------------------------------------
    Revenues, Net of Royalties            $ 7,911  $ 7,312  $ 3,121  $ 3,177
    Expenses
      Production and mineral taxes            116      104      233      349
      Transportation and selling              806      650      248      182
      Operating                             1,029      826      283      212
      Depreciation, depletion
       and amortization                     2,142    1,927      848      682
    -------------------------------------------------------------------------
    Segment Income                        $ 3,818  $ 3,805  $ 1,509  $ 1,752
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Transportation and selling for the United States includes a one time
    payment in the first quarter of 2006 of $14 million to terminate a long-
    term physical delivery contract.
                                                 Other        Total Upstream
                                         ------------------------------------
                                             2006     2005     2006     2005
    -------------------------------------------------------------------------
    Revenues, Net of Royalties            $   310  $   283  $11,342  $10,772
    Expenses
      Production and mineral taxes              -        -      349      453
      Transportation and selling                -        -    1,054      832
      Operating                               293      313    1,605    1,351
      Depreciation, depletion
       and amortization                        35       79    3,025    2,688
    -------------------------------------------------------------------------
    Segment Income (Loss)                 $   (18) $  (109) $ 5,309  $ 5,448
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Upstream Geographic and Product Information (Continuing Operations)
    (For the twelve months ended December 31)
                                              Produced Gas
                       ------------------------------------------------------
                              Canada         United States         Total
                       ------------------------------------------------------
                           2006     2005     2006     2005     2006     2005
    -------------------------------------------------------------------------
    Revenues,
     Net of Royalties   $ 5,440  $ 5,486  $ 2,854  $ 2,932  $ 8,294  $ 8,418
    Expenses
      Production and
       mineral taxes         80       76      213      325      293      401
      Transportation
       and selling          278      283      248      182      526      465
      Operating             629      521      283      212      912      733
    -------------------------------------------------------------------------
    Operating Cash Flow $ 4,453  $ 4,606  $ 2,110  $ 2,213  $ 6,563  $ 6,819
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Transportation and selling for the United States includes a one time
    payment in the first quarter of 2006 of $14 million to terminate a long-
    term physical delivery contract.
                                              Oil & NGLs
                       ------------------------------------------------------
                              Canada         United States         Total
                       ------------------------------------------------------
                           2006     2005     2006     2005     2006     2005
    -------------------------------------------------------------------------
    Revenues,
     Net of Royalties   $ 2,471  $ 1,826  $   267  $   245  $ 2,738  $ 2,071
    Expenses
      Production and
       mineral taxes         36       28       20       24       56       52
      Transportation
       and selling          528      367        -        -      528      367
      Operating             400      305        -        -      400      305
    -------------------------------------------------------------------------
    Operating Cash Flow $ 1,507  $ 1,126  $   247  $   221  $ 1,754  $ 1,347
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

                                                 Other        Total Upstream
                                         ------------------------------------
                                             2006     2005     2006     2005
    -------------------------------------------------------------------------
    Revenues, Net of Royalties            $   310  $   283  $11,342  $10,772
    Expenses
      Production and mineral taxes              -        -      349      453
      Transportation and selling                -        -    1,054      832
      Operating                               293      313    1,605    1,351
    -------------------------------------------------------------------------
    Operating Cash Flow                   $    17  $   (30) $ 8,334  $ 8,136
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Capital Expenditures (Continuing Operations)
                                     Three Months Ended   Twelve Months Ended
                                         December 31,          December 31,
                                 --------------------------------------------
                                       2006       2005       2006       2005
    -------------------------------------------------------------------------
    Upstream Core Capital
      Canada                      $     849  $   1,370  $   4,015  $   4,150
      United States                     315        633      2,061      1,982
      Other Countries                    24         31         75         70
    -------------------------------------------------------------------------
                                      1,188      2,034      6,151      6,202
    -------------------------------------------------------------------------
    Upstream Acquisition Capital
      Canada                             17          4         47         30
      United States                      16        227        284        418
    -------------------------------------------------------------------------
                                         33        231        331        448
    -------------------------------------------------------------------------
    Market Optimization                   4         68         44        197
    Corporate                            25         29         74         78
    -------------------------------------------------------------------------
    Total                         $   1,250  $   2,362  $   6,600  $   6,925
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Property, Plant and Equipment and Total Assets
                                      Property, Plant
                                       and Equipment          Total Assets
     -------------------------------------------- -
                                     As at December 31,    As at December 31,
                                       2006       2005       2006       2005
    -------------------------------------------------------------------------
    Upstream                      $  27,781  $  24,247  $  32,299  $  28,858
    Market Optimization                 154        371        469        597
    Corporate                           278        263      2,338      1,530
    Assets of Discontinued
     Operations           (Note 4)                              -      3,163
    -------------------------------------------------------------------------
    Total                         $  28,213  $  24,881  $  35,106  $  34,148
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    4.  DISCONTINUED OPERATIONS
    Midstream
    During the fourth quarter of 2005, EnCana decided to divest of its
    natural gas storage operations. EnCana's natural gas storage operations
    included the 100 percent interest in the AECO storage facility as well as
    facilities in the United States. On March 6, 2006, EnCana announced that
    it had reached an agreement to sell the gas storage operations for
    $1.5 billion. The sale, to a single purchaser, which was subject to
    closing conditions and applicable regulatory approvals closed in two
    stages. On May 12, 2006, the first stage of the sale was closed for
    proceeds of $1.3 billion. The second stage closed on November 17, 2006
    following receipt of regulatory approvals. A total after-tax gain of
    $829 million was recorded.
    On December 13, 2005, EnCana completed the sale of its Midstream natural
    gas liquids processing operations for total proceeds of $625 million
    (C$720 million). The natural gas liquids processing operations included
    various interests in a number of processing and related facilities as
    well as a marketing entity. An after-tax gain on sale of approximately
    $370 million was recorded.
    Ecuador
    At December 31, 2004, EnCana decided to divest of its Ecuador operations
    and such operations have been accounted for as discontinued operations.
    EnCana's Ecuador operations included the 100 percent working interest in
    the Tarapoa Block, majority operating interest in Blocks 14, 17 and
    Shiripuno, the non-operated economic interest in relation to Block 15 and
    the 36.3 percent indirect equity investment in Oleoducto de Crudos
    Pesados (OCP) Ltd. ("OCP"), which is the owner of a crude oil pipeline in
    Ecuador that ships crude oil from the producing areas of Ecuador to an
    export marine terminal. The Company was a shipper on the OCP Pipeline and
    paid commercial rates for tariffs. The majority of the Company's crude
    oil produced in Ecuador was sold to a single marketing company. Payments
    were secured by letters of credit from a major financial institution
    which has a high quality investment grade credit rating.
    On February 28, 2006, EnCana completed the sale of its interest in its
    Ecuador operations for $1.4 billion before indemnifications which are
    discussed further in this note.
    In accordance with Canadian generally accepted accounting principles,
    depreciation, depletion and amortization expense has not been recorded in
    the Consolidated Statement of Earnings for discontinued operations.

    Consolidated Statement of Earnings
    The following table presents the effect of the discontinued operations in
    the Consolidated Statement of Earnings:
                           For the three months ended December 31,
                   ----------------------------------------------------------
                                     United
                       Ecuador       Kingdom      Midstream        Total
                   ----------------------------------------------------------
                     2006   2005   2006   2005   2006    2005   2006    2005
    -------------------------------------------------------------------------
    Revenues, Net
     of Royalties   $   -  $ 242  $   -  $   -  $   5  $  645  $   5  $  887
    Expenses
      Production and
       mineral taxes    -     30      -      -      -       -      -      30
      Transportation
       and selling      -     12      -      -      -       3      -      15
      Operating         -     38      -      -      8     110      8     148
      Purchased
       product          -      -      -      -      2     343      2     343
      Depreciation,
       depletion and
       amortization     -    111      -      -      -       8      -     119
      Administration    -      -      -      -      -      30      -      30
      Interest, net     -     (2)     -      -      -      (1)     -      (3)
      Foreign
       exchange
       (gain) loss,
       net              -     (4)    (1)   (37)    (1)      -     (2)    (41)
      (Gain) loss on
       discontinuance   -      -      -      -    (41)   (364)   (41)   (364)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
                        -    185     (1)   (37)   (32)    129    (33)    277
    -------------------------------------------------------------------------
    Net Earnings Before
     Income Tax         -     57      1     37     37     516     38     610
      Income tax
       expense          -     57      1      4     17      52     18     113
    -------------------------------------------------------------------------
    Net Earnings From
     Discontinued
     Operations     $   -  $   -  $   -  $  33  $  20  $  464  $  20  $  497
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

                            For the twelve months ended December 31,
                   ----------------------------------------------------------
                                     United
                       Ecuador       Kingdom      Midstream        Total
                   ----------------------------------------------------------
                     2006   2005   2006   2005   2006    2005   2006    2005
    -------------------------------------------------------------------------
    Revenues, Net of
     Royalties(*)   $ 200  $ 965  $   -  $   -  $ 482  $1,570  $ 682  $2,535
    Expenses
      Production and
       mineral taxes   23    131      -      -      -       -     23     131
      Transportation
       and selling     10     58      -      -      -       9     10      67
      Operating        25    138      -      -     37     301     62     439
      Purchased
       product          -      -      -      -    356   1,100    356   1,100
      Depreciation,
       depletion and
       amortization    84    234      -      -      -      28     84     262
      Administration    -      -      -      -      -      30      -      30
      Interest, net    (2)    (2)     -      -      -      (2)    (2)     (4)
      Accretion of
       asset
       retirement
       obligation       -      1      -      -      -       -      -       1
      Foreign
       exchange
       (gain) loss,
       net              1     (4)    (1)   (40)     4      (2)     4     (46)
      (Gain) loss on
       discontinuance 279      -      -      -   (807)   (364)  (528)   (364)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
                      420    556     (1)   (40)  (410)  1,100      9   1,616
    -------------------------------------------------------------------------
    Net Earnings
     (Loss) Before
     Income Tax      (220)   409      1     40    892     470    673     919
      Income tax
       expense
       (recovery)      59    278     (4)     5     17      39     72     322
    -------------------------------------------------------------------------
    Net Earnings
     (Loss) From
     Discontinued
     Operations     $(279) $ 131  $   5  $  35  $ 875  $  431  $ 601  $  597
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (*) Revenues, net of royalties in Ecuador include realized losses of
        $1 million related to derivative financial instruments. In 2005,
        revenues, net of royalties included realized losses of $128 million.

    Consolidated Balance Sheet
    The impact of the discontinued operations in the Consolidated Balance
    Sheet is as follows:
                                            As at
                 ------------------------------------------------------------
                        December 31, 2006             December 31, 2005
                 ------------------------------------------------------------
                           United   Mid-               United    Mid-
                  Ecuador Kingdom stream Total Ecuador Kingdom stream   Total
    -------------------------------------------------------------------------
    Assets
      Cash and cash
       equivalents  $   -  $   -  $   -  $   -  $  207  $   8  $   (7) $  208
      Accounts
       receivable
       and accrued
       revenues         -      -      -      -     137      -     271     408
      Risk management   -      -      -      -       -      -      21      21
      Inventories       -      -      -      -      23      -     390     413
    -------------------------------------------------------------------------
                        -      -      -      -     367      8     675   1,050
      Property,
       plant and
       equipment,
       net              -      -      -      -   1,166      -     520   1,686
      Investments
       and other
       assets           -      -      -      -     360      -       -     360
      Goodwill          -      -      -      -       -      -      67      67
    -------------------------------------------------------------------------
                    $   -  $   -  $   -  $   -  $1,893  $   8  $1,262  $3,163
    -------------------------------------------------------------------------
    Liabilities
      Accounts
       payable and
       accrued
       liabilities  $   -  $   -  $   -  $   -  $   91  $  27  $   49  $  167
      Income tax
       payable          -      -      -      -     184      6      40     230
      Risk management   -      -      -      -       -      -      41      41
    -------------------------------------------------------------------------
                        -      -      -      -     275     33     130     438
      Asset retirement
       obligation       -      -      -      -      21      -       -      21
      Future income
       taxes
       (recovery)       -      -      -      -     162     (2)     86     246
    -------------------------------------------------------------------------
                        -      -      -      -     458     31     216     705
    -------------------------------------------------------------------------
    Net Assets of
     Discontinued
     Operations     $   -  $   -  $   -  $   -  $1,435  $ (23) $1,046  $2,458
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Contingencies
    EnCana agreed to indemnify the purchaser of its Ecuador interests against
    losses that may arise in certain circumstances which are defined in the
    share sale agreements. The obligation to indemnify will arise should
    losses exceed amounts specified in the sale agreements and is limited to
    maximum amounts which are set forth in the share sale agreements.
    During the second quarter of 2006, the Government of Ecuador seized the
    Block 15 assets, in relation to which EnCana previously held a 40 percent
    economic interest, from the operator which is an event requiring
    indemnification under the terms of EnCana's sale agreement with the
    purchaser. The purchaser requested payment and EnCana paid the maximum
    amount in the third quarter, calculated in accordance with the terms of
    the agreements, of approximately $265 million. EnCana does not expect
    that any further significant indemnification payments relating to any
    other business matters addressed in the share sale agreements will be
    required to be made to the purchaser.
    5.  DIVESTITURES
    Total proceeds received on sale of assets and investments was
    $689 million (2005 - $2,523 million) as described below:
    Upstream
    In 2006, the Company has completed the divestiture of mature conventional
    oil and natural gas assets for proceeds of $78 million (2005 -
    $471 million).
    In August 2006, the Company completed the sale of its 50 percent interest
    in the Chinook heavy oil discovery offshore Brazil for approximately
    $367 million which resulted in a gain on sale of $304 million. After
    recording income tax of $49 million, EnCana recorded an after-tax gain of
    $255 million.
    In May 2005, the Company completed the sale of its Gulf of Mexico assets
    for approximately $2.1 billion resulting in net proceeds of approximately
    $1.5 billion after deducting $578 million in tax plus other adjustments.
    In accordance with full cost accounting for oil and gas activities,
    proceeds were credited to property, plant and equipment.
    Market Optimization
    In February 2006, the Company sold its investment in Entrega Gas Pipeline
    LLC for approximately $244 million which resulted in a gain on sale of
    $17 million.

    Notes to Consolidated Financial Statements  (unaudited)
    (All amounts in $ millions unless otherwise specified)
    6.  INTEREST, NET
                                     Three Months Ended   Twelve Months Ended
                                         December 31,          December 31,
                                  -------------------------------------------
                                       2006       2005       2006       2005
    -------------------------------------------------------------------------
    Interest Expense -
     Long-Term Debt               $      97  $     107  $     366  $     417
    Early Retirement of
     Long-Term Debt                       -          -          -        121
    Interest Expense - Other             57          6         76         18
    Interest Income                     (12)        (9)       (46)       (32)
    -------------------------------------------------------------------------
                                  $     142  $     104  $     396  $     524
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    7.  FOREIGN EXCHANGE (GAIN) LOSS, NET
                                     Three Months Ended   Twelve Months Ended
                                         December 31,          December 31,
                                  -------------------------------------------
                                       2006       2005       2006       2005
    -------------------------------------------------------------------------
    Unrealized Foreign Exchange
     (Gain) Loss on Translation
     of U.S. Dollar Debt Issued
     from Canada                  $     155  $      27  $       -  $    (113)
    Other Foreign Exchange
     (Gain) Loss                         17         10         14         89
    -------------------------------------------------------------------------
                                  $     172  $      37  $      14  $     (24)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    8.  INCOME TAXES
    The provision for income taxes is as follows:
                                     Three Months Ended   Twelve Months Ended
                                         December 31,          December 31,
                                  -------------------------------------------
                                       2006       2005       2006       2005
    -------------------------------------------------------------------------
    Current
      Canada                      $      70  $     205  $     764  $     493
      United States                      41        (25)       128        719
      Other                               2         (2)        50         (8)
    -------------------------------------------------------------------------
    Total Current Tax                   113        178        942      1,204
    -------------------------------------------------------------------------
    Future                              260        717      1,407         56
    Future Tax Rate Reductions            -          -       (457)         -
    -------------------------------------------------------------------------
                                  $     373  $     895  $   1,892  $   1,260
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Included in current tax for 2006 is $49 million related to the sale of
    assets in Brazil (2005 - $578 million related to the sale of the Gulf of
    Mexico assets).
    The following table reconciles income taxes calculated at the Canadian
    statutory rate with the actual income taxes:
                                     Three Months Ended   Twelve Months Ended
                                         December 31,          December 31,
                                  -------------------------------------------
                                       2006       2005       2006       2005
    -------------------------------------------------------------------------
    Net Earnings Before
     Income Tax                   $   1,016  $   2,764  $   6,943  $   4,089
    Canadian Statutory Rate            34.7%      37.9%      34.7%      37.9%
    -------------------------------------------------------------------------
    Expected Income Tax                 352      1,048      2,407      1,550
    Effect on Taxes Resulting from:
      Non-deductible Canadian
       Crown payments                    22         68         97        207
      Canadian resource allowance         2        (87)       (16)      (202)
      Statutory and other
       rate differences                 (18)      (124)       (98)      (235)
      Effect of tax rate
       changes(*)                         -          -       (457)         -
      Non-taxable capital
       (gains) losses                    29          3         (1)       (24)
      Tax basis retained on
       divestitures                       -          -          -        (68)
      Large corporations tax              -          1          -         25
      Other                             (14)       (14)       (40)         7
    -------------------------------------------------------------------------
                                  $     373  $     895  $   1,892  $   1,260
    -------------------------------------------------------------------------
    Effective Tax Rate                 36.7%      32.4%      27.3%      30.8%
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (*) During the second quarter of 2006, the Canadian federal and Alberta
        governments substantively enacted income tax rate reductions.

    9.  LONG-TERM DEBT
                                                            As at      As at
                                                         December   December
                                                         31, 2006   31, 2005
    -------------------------------------------------------------------------
    Canadian Dollar Denominated Debt
      Revolving credit and term loan borrowings         $   1,456  $   1,425
      Unsecured notes                                         793        793
    -------------------------------------------------------------------------
                                                            2,249      2,218
    -------------------------------------------------------------------------
    U.S. Dollar Denominated Debt
      Revolving credit and term loan borrowings               104          -
      Unsecured notes                                       4,421      4,494
    -------------------------------------------------------------------------
                                                            4,525      4,494
    -------------------------------------------------------------------------
    Increase in Value of Debt Acquired(*)                      60         64
    Current Portion of Long-Term Debt                        (257)       (73)
    -------------------------------------------------------------------------
                                                        $   6,577  $   6,703
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (*) 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.

    10. 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 properties:
                                                            As at      As at
                                                         December   December
                                                         31, 2006   31, 2005
    -------------------------------------------------------------------------
    Asset Retirement Obligation, Beginning of Year      $     816  $     611
    Liabilities Incurred                                       68         77
    Liabilities Settled                                       (51)       (42)
    Liabilities Divested                                        -        (23)
    Change in Estimated Future Cash Flows                     172        135
    Accretion Expense                                          50         37
    Other                                                      (4)        21
    -------------------------------------------------------------------------
    Asset Retirement Obligation, End of Year            $   1,051  $     816
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    11. SHARE CAPITAL
                                     December 31, 2006     December 31, 2005
                                  -------------------------------------------
    (millions)                       Number     Amount     Number     Amount
    -------------------------------------------------------------------------
    Common Shares Outstanding,
     Beginning of Year                854.9  $   5,131      900.6  $   5,299
    Common Shares Issued under
     Option Plans                       8.6        179       15.0        283
    Stock-based Compensation              -         11          -         11
    Common Shares Purchased           (85.6)      (734)     (60.7)      (462)
    -------------------------------------------------------------------------
    Common Shares Outstanding,
     End of Year                      777.9  $   4,587      854.9  $   5,131
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Information related to common shares and stock options has been restated
    to reflect the effect of the common share split approved in April 2005.
    Normal Course Issuer Bid
    In 2006, the Company purchased 85.6 million Common Shares for total
    consideration of approximately $4,219 million. Of the amount paid,
    $734 million was charged to Share capital and $3,485 million was charged
    to Retained earnings.
    EnCana has received regulatory approval each year under Canadian
    securities laws to purchase Common Shares under five consecutive Normal
    Course Issuer Bids ("Bids"). EnCana is entitled to purchase, for
    cancellation, up to approximately 80.2 million Common Shares under the
    renewed Bid which commenced on November 6, 2006 and terminates on
    November 5, 2007.
    Stock Options
    The Company has stock-based compensation plans that allow employees and
    directors to purchase Common Shares of the Company. Option exercise
    prices approximate the market price for the Common Shares on the date the
    options were issued. Options granted under the plans are generally fully
    exercisable after three years and expire five years after the date
    granted. Options granted under predecessor and/or related company
    replacement plans expire up to ten years from the date the options were
    granted.
    The following tables summarize the information about options to purchase
    Common Shares that do not have Tandem Share Appreciation Rights
    ("TSAR's") attached to them at December 31, 2006. Information related to
    TSAR's is included in Note 12.
                                                                    Weighted
                                                            Stock    Average
                                                          Options   Exercise
                                                        (millions) Price (C$)
    -------------------------------------------------------------------------
    Outstanding, Beginning of Year                           20.7      23.36
    Exercised                                                (8.6)     23.60
    Forfeited                                                (0.3)     23.80
    -------------------------------------------------------------------------
    Outstanding, End of Year                                 11.8      23.17
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Exercisable, End of Year                                 11.8      23.17
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

                             Outstanding Options         Exercisable Options
                  -----------------------------------------------------------
                                  Weighted
                   Number of       Average    Weighted  Number of   Weighted
    Range of         Options     Remaining     Average    Options    Average
     Exercise    Outstanding   Contractual    Exercise Outstanding  Exercise
     Price (C$)    (millions)  Life (years)  Price (C$) (millions) Price (C$)
    -------------------------------------------------------------------------
    11.00 to 16.99       0.8           2.3       11.89        0.8      11.89
    17.00 to 22.99       0.2           1.0       22.32        0.2      22.32
    23.00 to 23.99       5.4           1.3       23.87        5.4      23.87
    24.00 to 24.99       5.2           0.4       24.19        5.2      24.19
    25.00 to 25.99       0.2           1.7       25.58        0.2      25.58
    -------------------------------------------------------------------------
                        11.8           1.0       23.17       11.8      23.17
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    At December 31, 2006, the balance in Paid in surplus relates to stock-
    based compensation programs.

    12. COMPENSATION PLANS
    The tables below outline certain information related to EnCana's
    compensation plans at December 31, 2006. Additional information is
    contained in Note 15 of the Company's annual audited Consolidated
    Financial Statements for the year ended December 31, 2005.
    A)  Pensions
    The following table summarizes the net benefit plan expense:
                                     Three Months Ended   Twelve Months Ended
                                         December 31,          December 31,
                                  -------------------------------------------
                                       2006       2005       2006       2005
    -------------------------------------------------------------------------
    Current Service Cost          $       6  $       6  $      16  $      11
    Interest Cost                         4          6         17         16
    Expected Return on
     Plan Assets                         (4)        (5)       (16)       (14)
    Expected Actuarial Loss on
     Accrued Benefit Obligation           2          3          6          5
    Expected Amortization of
     Past Service Costs                   1          1          2          2
    Amortization of Transitional
     Obligation                           -         (1)        (1)        (2)
    Expense for Defined
     Contribution Plan                    8          6         28         22
    -------------------------------------------------------------------------
    Net Benefit Plan Expense      $      17  $      16  $      52  $      40
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    For the year ended December 31, 2006, contributions of $9 million were
    made to the defined benefit pension plans.
    B) Share Appreciation Rights ("SAR's")
    The following table summarizes the information about SAR's at
    December 31, 2006:
                                                                    Weighted
                                                                     Average
                                                      Outstanding   Exercise
                                                            SAR's      Price
    -------------------------------------------------------------------------
    Canadian Dollar Denominated (C$)
    Outstanding, Beginning of Year                        246,739      23.13
    Exercised                                            (246,739)     23.13
    -------------------------------------------------------------------------
    Outstanding, End of Year                                    -          -
    -------------------------------------------------------------------------
    Exercisable, End of Year                                    -          -
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    U.S. Dollar Denominated (US$)
    Outstanding, Beginning of Year                        319,511      14.33
    Exercised                                            (317,423)     14.33
    -------------------------------------------------------------------------
    Outstanding, End of Year                                2,088      14.21
    -------------------------------------------------------------------------
    Exercisable, End of Year                                2,088      14.21
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    For the year ended December 31, 2006, EnCana has recorded a reduction in
    compensation costs of $1 million related to the outstanding SAR's
    (2005 - costs of $17 million).

    C) Tandem Share Appreciation Rights ("TSAR's")
    The following table summarizes the information about stock options with
    Tandem SAR's attached at December 31, 2006:
                                                                    Weighted
                                                                     Average
                                                      Outstanding   Exercise
                                                           TSAR's      Price
    -------------------------------------------------------------------------
    Canadian Dollar Denominated (C$)
    Outstanding, Beginning of Year                      8,403,967      38.41
    Granted                                            11,180,800      49.01
    Exercised - SAR's                                    (700,418)     34.54
    Exercised - Options                                   (32,948)     34.46
    Forfeited                                          (1,575,210)     43.21
    -------------------------------------------------------------------------
    Outstanding, End of Year                           17,276,191      44.99
    -------------------------------------------------------------------------
    Exercisable, End of Year                            1,971,467      38.31
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    For the year ended December 31, 2006, EnCana recorded compensation costs
    of $52 million related to the outstanding TSAR's (2005 - $60 million).
    D) Deferred Share Units ("DSU's")
    The following table summarizes the information about DSU's at
    December 31, 2006:
                                                                     Average
                                                      Outstanding      Share
                                                            DSU's      Price
    -------------------------------------------------------------------------
    Canadian Dollar Denominated (C$)
    Outstanding, Beginning of Year                        836,561      26.81
    Granted, Directors                                     70,000      56.71
    Exercised                                             (52,562)     27.92
    Units, in Lieu of Dividends                            12,578      54.69
    -------------------------------------------------------------------------
    Outstanding, End of Year                              866,577      29.56
    -------------------------------------------------------------------------
    Exercisable, End of Year                              866,577      29.56
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    For the year ended December 31, 2006, EnCana recorded compensation costs
    of $5 million related to the outstanding DSU's (2005 - $16 million).
    E) Performance Share Units ("PSU's")
    The following table summarizes the information about PSU's at
    December 31, 2006:
                                                                     Average
                                                      Outstanding      Share
                                                            PSU's      Price
    -------------------------------------------------------------------------
    Canadian Dollar Denominated (C$)
    Outstanding, Beginning of Year                      4,704,348      30.65
    Granted                                                36,599      54.82
    Paid out                                             (239,794)     23.26
    Forfeited                                            (309,313)     31.35
    -------------------------------------------------------------------------
    Outstanding, End of Year                            4,191,840      31.24
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    U.S. Dollar Denominated (US$)
    Outstanding, Beginning of Year                        739,649      25.22
    Granted                                                 4,860      48.07
    Forfeited                                            (170,020)     24.13
    -------------------------------------------------------------------------
    Outstanding, End of Year                              574,489      25.74
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    For the year ended December 31, 2006, EnCana recorded compensation costs
    of $27 million related to the outstanding PSU's (2005 - $91 million).
    At December 31, 2006, EnCana has approximately 5.5 million Common Shares
    held in trust for issuance upon vesting of the PSU's (2005 -
    5.5 million).

    13. PER SHARE AMOUNTS
    The following table summarizes the Common Shares used in calculating Net
    Earnings per Common Share:
                                                               Twelve Months
                                 Three Months Ended                Ended
                       ------------------------------------------------------
                       March    June  September
                          31,     30,     30,    December 31,    December 31,
                       ------------------------------------------------------
    (millions)          2006    2006    2006    2006    2005    2006    2005
    -------------------------------------------------------------------------
    Weighted Average
     Common Shares
     Outstanding -
     Basic             847.9   829.6   809.7   792.5   854.4   819.9   868.3
    Effect of
     Dilutive
     Securities         16.9    15.5    14.6    13.9    18.1    16.6    20.9
    -------------------------------------------------------------------------
    Weighted Average
     Common Shares
     Outstanding -
     Diluted           864.8   845.1   824.3   806.4   872.5   836.5   889.2
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    14. FINANCIAL INSTRUMENTS AND RISK MANAGEMENT
    As a means of managing commodity price volatility, EnCana entered into
    various financial instrument agreements and physical contracts. The
    following information presents all positions for financial instruments.
    Realized and Unrealized Gain (Loss) on Risk Management Activities
    The following tables summarize the gains and losses on risk management
    activities:
                                               Realized Gain (Loss)
                                  -------------------------------------------
                                      Three Months Ended  Twelve Months Ended
                                  -------------------------------------------
                                         December 31,          December 31,
                                  -------------------------------------------
                                       2006       2005       2006       2005
    -------------------------------------------------------------------------
    Revenues, Net of Royalties    $     240  $    (355) $     393  $    (684)
    Operating Expenses and Other          1         14          5         31
    -------------------------------------------------------------------------
    Gain (Loss) on Risk Management
     - Continuing Operations            241       (341)       398       (653)
    Gain (Loss) on Risk Management
     - Discontinued Operations            8        (44)        12       (155)
    -------------------------------------------------------------------------
                                  $     249  $    (385) $     410  $    (808)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
                                              Unrealized Gain (Loss)
                                  -------------------------------------------
                                      Three Months Ended  Twelve Months Ended
                                  -------------------------------------------
                                         December 31,          December 31,
                                  -------------------------------------------
                                       2006       2005       2006       2005
    -------------------------------------------------------------------------
    Revenues, Net of Royalties    $     129  $     991  $   2,050  $    (466)
    Operating Expenses and Other         12         (6)        10         (3)
    -------------------------------------------------------------------------
    Gain (Loss) on Risk Management
     - Continuing Operations            141        985      2,060       (469)
    Gain (Loss) on Risk Management
     - Discontinued Operations           (7)       139         20         50
    -------------------------------------------------------------------------
                                  $     134  $   1,124  $   2,080  $    (419)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Amounts Recognized on Transition
    Upon initial adoption of the current accounting policy for risk
    management instruments on January 1, 2004, the fair value of all
    outstanding financial instruments that were not considered accounting
    hedges was recorded in the Consolidated Balance Sheet with an offsetting
    net deferred loss amount (the "transition amount"). The transition amount
    is recognized into net earnings over the life of the related contracts.
    Changes in fair value after that time are recorded in the Consolidated
    Balance Sheet with an associated unrealized gain or loss recorded in net
    earnings.
    At December 31, 2006, a net unrealized gain of approximately $16 million
    remains to be recognized over the next two years.
    Fair Value of Outstanding Risk Management Positions
    The following table presents a reconciliation of the change in the
    unrealized amounts from January 1, 2006 to December 31, 2006:
                                                                       Total
                                                                  Unrealized
                                                      Fair Market       Gain
                                                            Value      (Loss)
    -------------------------------------------------------------------------
    Fair Value of Contracts, Beginning of Year          $    (640) $       -
    Change in Fair Value of Contracts in Place at
     Beginning of Year and Contracts Entered into
     During 2006                                            2,466      2,466
    Fair Value of Contracts in Place at Transition
     that Expired During 2006                                   -         24
    Fair Value of Contracts Realized During 2006             (410)      (410)
    -------------------------------------------------------------------------
    Fair Value of Contracts Outstanding                 $   1,416  $   2,080
    Unamortized Premiums Paid on Options                      104
    -------------------------------------------------------------------------
    Fair Value of Contracts and Premiums Paid,
     End of Year                                        $   1,520
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Amounts Allocated to Continuing Operations          $   1,520  $   2,060
    Amounts Allocated to Discontinued Operations                -         20
    -------------------------------------------------------------------------
                                                        $   1,520  $   2,080
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    At December 31, 2006, the risk management amounts are recorded in the
    Consolidated Balance Sheet as follows:
                                                                       As at
                                                           December 31, 2006
    -------------------------------------------------------------------------
    Risk Management
      Current asset                                                $   1,403
      Long-term asset                                                    133
      Current liability                                                   14
      Long-term liability                                                  2
    -------------------------------------------------------------------------
    Net Risk Management Asset - Continuing Operations              $   1,520
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    A summary of all unrealized estimated fair value financial positions is
    as follows:
                                                                       As at
                                                           December 31, 2006
    -------------------------------------------------------------------------
    Commodity Price Risk
      Natural gas                                                  $   1,431
      Crude oil                                                           74
      Power                                                               13
    Interest Rate Risk                                                     4
    Credit Derivatives                                                    (2)
    -------------------------------------------------------------------------
    Total Fair Value Positions                                     $   1,520
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Information with respect to credit derivatives and interest rate risk
    contracts in place at December 31, 2005 is disclosed in Note 16 to the
    Company's annual audited Consolidated Financial Statements. New power
    contracts have been entered into at December 31, 2006, which are
    described further in this note.
    Natural Gas
    At December 31, 2006, the Company's gas risk management activities from
    financial contracts had an unrealized gain of $1,410 million and a fair
    market value position of $1,431 million. The contracts were as follows:
                           Notional                                     Fair
                            Volumes                                   Market
                            (MMcf/d)  Term          Average Price      Value
    -------------------------------------------------------------------------
    Sales Contracts
    Fixed Price Contracts
      NYMEX Fixed Price       1,487   2007           8.56 US$/Mcf  $     861
      Other                       8   2007           8.97 US$/Mcf          7
      NYMEX Fixed Price         222   2008           8.45 US$/Mcf         34
    Options
      Purchased NYMEX
       Put Options              240   2007           6.00 US$/Mcf         15
    Basis Contracts
      Fixed NYMEX to
       AECO Basis               747   2007         (0.72) US$/Mcf         39
      Fixed NYMEX to
       Rockies Basis            538   2007         (0.65) US$/Mcf        223
      Fixed NYMEX to
       CIG Basis                390   2007         (0.76) US$/Mcf        144
      Fixed Rockies to
       CIG Basis                 12   2007         (0.10) US$/Mcf         (1)
      Fixed NYMEX to
       AECO Basis               191   2008         (0.78) US$/Mcf         10
      Fixed NYMEX to
       Rockies Basis            162   2008         (0.59) US$/Mcf         46
      Fixed NYMEX to
       CIG Basis                 60   2008         (0.67) US$/Mcf         15
      Fixed NYMEX to Rockies
       Basis (NYMEX Adjusted)   329   2008   17% of NYMEX US$/Mcf         14
      Fixed NYMEX to Mid-
       Continent Basis
       (NYMEX Adjusted)         120   2008   12% of NYMEX US$/Mcf          4
      Fixed NYMEX to
       CIG Basis                 20   2009         (0.71) US$/Mcf          1
      Fixed NYMEX to
       AECO Basis                12   2010         (0.40) US$/Mcf          -
    Purchase Contracts
    Fixed Price Contracts
      Other                       8   2007           7.84 US$/Mcf         (4)
    -------------------------------------------------------------------------
                                                                       1,408
    Other Financial Positions(*)                                           2
    -------------------------------------------------------------------------
    Total Unrealized Gain on Financial Contracts                       1,410
    Unamortized Premiums Paid on Options                                  21
    -------------------------------------------------------------------------
    Total Fair Value Positions                                     $   1,431
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (*)Other financial positions are part of the ongoing operations of the
       Company's proprietary production management.

    Crude Oil
    At December 31, 2006, the Company's oil risk management activities from
    financial contracts had an unrealized loss of $9 million and a fair
    market value position of $74 million. The contracts were as follows:
                           Notional                                     Fair
                            Volumes                                   Market
                            (bbls/d)  Term          Average Price      Value
    -------------------------------------------------------------------------
    Fixed WTI NYMEX Price    34,500   2007          64.40 US$/bbl  $      (8)
    Purchased WTI NYMEX
     Put Options             91,500   2007          55.34 US$/bbl         (1)
    -------------------------------------------------------------------------
                                                                          (9)
    Other Financial
     Positions(*)                                                          -
    -------------------------------------------------------------------------
    Total Unrealized Loss on
     Financial Contracts                                                  (9)
    Unamortized Premiums Paid on Options                                  83
    -------------------------------------------------------------------------
    Total Fair Value Positions                                     $      74
    -------------------------------------------------------------------------
    (*) Other financial positions are part of the ongoing operations of the
        Company's proprietary production management.
    Power
    In November 2006, the Company entered into two derivative contracts,
    commencing January 1, 2007 for a period of eleven years, to manage its
    electricity consumption costs. At December 31, 2006, these contracts had
    an unrealized gain of $13 million.

    15. 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. Court approval
    of the federal court class action settlement of $2.4 million is pending,
    court approval having been granted in the state court action. Also, as
    previously disclosed, without admitting any liability whatsoever, WD
    concluded settlements with the U.S. Commodity Futures Trading Commission
    ("CFTC") and of a previously disclosed consolidated class action lawsuit
    in the United Stated 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.
    16. SUBSEQUENT EVENTS
    Integrated Oilsands Business
    On January 2, 2007, EnCana became a 50 percent partner in an integrated,
    North American heavy oil business with ConocoPhillips which consists of
    an upstream and a downstream entity. In creating the integrated venture,
    EnCana contributed 50 percent of its Foster Creek and Christina Lake
    oilsands properties while ConocoPhillips contributed 50 percent of its
    Wood River and Borger refineries, located in Illinois and Texas
    respectively. On a go forward basis, EnCana will show a separate business
    segment for the Integrated Oilsands business. In accordance with the
    Canadian generally accepted accounting principles, these entities will be
    accounted for using the proportionate consolidation method.
    Sale of Chad Operations
    On January 12, 2007, EnCana announced that it had completed the sale of
    its interests in Chad, properties that are considered to be in the
    pre-production stage, for proceeds of $203 million which will result in a
    gain on sale.
    The Bow
    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 is entering into a 25 year lease agreement with a
    third party developer. EnCana expects to account for the agreement as a
    capital lease.

ECA stock price

TSX $14.27 Can -0.540

NYSE $11.11 USD -0.510

As of 2017-12-15 16:03. Minimum 15 minute delay