EnCana's first quarter cash flow nearly US$1.7 billion, or $1.96 per share - up 26 percent per share

Total natural gas, oil and NGLs sales per share up 7 percent Quarterly dividend increased 33 percent to 10 cents per share

CALGARY, April 26 /CNW/ - EnCana Corporation's (TSX & NYSE: ECA) first
quarter 2006 cash flow per share diluted increased 26 percent to US$1.96, or
about $1.7 billion, compared to the first quarter of 2005. Cash flow and
operating earnings rose due to increased sales and higher natural gas and
liquids prices. Total operating earnings per share increased 19 percent to
80 cents, or $694 million, compared to the first quarter of 2005. First
quarter sales of natural gas, oil and natural gas liquids (NGLs) from total
operations were 4.62 billion cubic feet of gas equivalent (Bcfe) per day,
which is an increase of 7 percent per share compared to the first quarter of
2005. EnCana's first quarter net earnings of $1.70 per share, or
$1.47 billion, were positively impacted by an unrealized $830 million
after-tax gain due to mark-to-market accounting of commodity price hedges.

EnCana reports in U.S. dollars and all financial references in this news
release are in U.S. dollars unless otherwise noted.

Steady first quarter growth, sales on track for 2006, asset sales
proceeds go to buying back shares
"EnCana's North American natural gas and oil sales continue to grow at a
steady pace, increasing 6 percent in the past year. We are on track to achieve
2006 guidance, growing North American sales by about 7 percent from 2005.
Despite record industry field activity in the first quarter, we successfully
completed our winter program drilling 1,282 wells - about 30 percent of our
plan for the year," said Randy Eresman, EnCana's President & Chief Executive
Officer. "With about $3.5 billion of sales proceeds from completed and pending
midstream and international asset sales in 2006, EnCana continues to focus on
North American unconventional resource plays. In the first quarter, EnCana
purchased about 21.3 million shares for cancellation, resulting in a net
reduction of outstanding shares of 2.2 percent."

EnCana increases quarterly dividend 33 percent to 10 cents per share
Given EnCana's strong financial and operating performance, the company's
board of directors has increased the quarterly dividend 33 percent from 7.5 to
10 cents per share, which is payable on June 30, 2006 to common shareholders
of record as of June 15, 2006.

Two new key resource plays added to unconventional portfolio
"EnCana's productive capacity continues to grow with the addition of two
new key resource plays - a natural gas play at Bighorn in west central Alberta
and the Christina Lake oilsands development in northeast Alberta, which has
the potential to be our largest in-situ project. We have been assembling the
land and evaluating the potential of Bighorn and Christina Lake for the past
number of years, and we believe that each play now holds sufficient identified
resources to be a significant contributor to long-term value creation,"
Eresman said.

IMPORTANT NOTE: EnCana reports in U.S. dollars unless otherwise noted and
follows U.S. protocols, which report sales and reserves on an after- royalties
basis. EnCana's Ecuador assets and its natural gas liquids business were sold
and are discontinued. The company is reporting its natural gas storage
business as discontinued because EnCana is in the process of selling it. Total
results, which include results from natural gas liquids business, 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 - www.encana.com. The company's financial statements are prepared in
accordance with Canadian generally accepted accounting principles (GAAP).

First Quarter 2006 Highlights
-----------------------------

Financial
- Cash flow per share diluted increased 26 percent to $1.96
- Net earnings per share diluted were $1.70, compared to a 5 cent loss
one year earlier
- Operating earnings per share diluted up 19 percent to 80 cents
- Return on capital employed of 23 percent
- Purchased 21.3 million EnCana shares at an average share price of
US$46.03 under the Normal Course Issuer Bid
- Reduced shares outstanding by 2.2 percent since December 31, 2005

Operating
- Natural gas sales of 3.34 billion cubic feet per day (Bcf/d), up
6 percent
- Oil and NGLs sales from continuing operations up 4 percent to 162,791
barrels per day (bbls/d)
- Total gas and liquids sales from continuing operations increased
6 percent to 4.32 billion cubic feet equivalent per day (Bcfe/d)
- Total gas and liquids sales of 4.62 Bcfe/d, up 2 percent. This
includes sales from Ecuador, which was sold February 28, 2006
- Key resource play production up 17 percent
- Operating costs of 80 cents per thousand cubic feet equivalent (Mcfe)
- Upstream capital investment in continuing operations of $1.9 billion

Strategic events
- Added two new key resource plays, natural gas at Bighorn and in-situ
oilsands at Christina Lake
- Completed sale of Ecuador interests for $1.4 billion
- Completed sale of Entrega Pipeline for $244 million
- Reached agreement to sell natural gas storage business for
approximately $1.5 billion
- Jonah natural gas resource play set to grow following receipt of
Record of Decision by U.S. Bureau of Land Management

Unbooked Resource Potential estimate updated to year-end 2005
- Estimated unbooked resource potential for natural gas was about
19 trillion cubic feet, essentially unchanged from the year-end 2004
estimate
- Estimated unbooked resource potential for oil up more than 250 percent
to 3.3 billion barrels
- Estimated total unbooked resource potential up 60 percent to about
39 trillion cubic feet of gas equivalent
- Estimated drilling inventory up 16 percent to about 43,000 well
locations

<<
-------------------------------------------------------------------------
Financial Summary - Total Consolidated
-------------------------------------------------------------------------
(for the three months ended March 31) Q1 Q1 %
($ millions, except per share amounts) 2006 2005 Change
-------------------------------------------------------------------------
Cash flow 1,691 1,413 + 20
Per share diluted 1.96 1.55 + 26
-------------------------------------------------------------------------
Net earnings 1,474 (45) n/a
Per share diluted 1.70 (0.05) n/a
-------------------------------------------------------------------------
Operating earnings 694 611 + 14
Per share diluted 0.80 0.67 + 19
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Earnings Reconciliation Summary - Total Consolidated
-------------------------------------------------------------------------
Net earnings (loss) from continuing
operations 1,472 (162) n/a
Net earnings from discontinued operations 2 117 n/a
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Net earnings (loss) 1,474 (45)
(Add back losses & deduct gains)
Unrealized mark-to-market hedging gain
(loss), after-tax 830 (641)

Unrealized foreign exchange gain (loss) on
translation of U.S. dollar debt issued in
Canada, after-tax (3) (15)

Gain (loss) on sale of discontinued operations (47) -
-------------------------------------------------------------------------
Operating earnings 694 611 + 14
Per share diluted 0.80 0.67 + 19
-------------------------------------------------------------------------
-------------------------------------------------------------------------


-------------------------------------------------------------------------
Sales & Drilling Summary
-------------------------------------------------------------------------
Total Consolidated
-------------------------------------------------------------------------
(for the three months ended March 31) Q1 Q1 %
(After royalties) 2006 2005 Change
-------------------------------------------------------------------------
Natural Gas sales (MMcf/d) 3,343 3,146 + 6
-------------------------------------------------------------------------
Natural gas sales per 1,000 shares (Mcf) 355 318 + 12
-------------------------------------------------------------------------
Oil and NGLs sales (bbls/d) 212,941 229,671 - 7
-------------------------------------------------------------------------
Oil and NGLs sales per 1,000 shares (Mcfe) 136 139 - 2
-------------------------------------------------------------------------
Total sales (MMcfe/d) 4,621 4,524 + 2
-------------------------------------------------------------------------
Total sales per 1,000 shares (Mcfe) 491 457 + 7
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Net wells drilled 1,289 1,358 - 5
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Continuing Operations
-------------------------------------------------------------------------
North America Natural Gas sales (MMcf/d) 3,343 3,146 + 6
-------------------------------------------------------------------------
North America Oil and NGLs (bbls/d) 162,791 157,184 + 4
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Total sales (MMcfe/d) 4,320 4,089 + 6
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Net wells drilled 1,282 1,352 - 5
-------------------------------------------------------------------------
-------------------------------------------------------------------------

EnCana's estimated unbooked resource potential up 60 percent, driven by
oilsands assets
EnCana's inventory of natural gas and oil resources is estimated in two
categories, proved reserves and unbooked resource potential. In 2005, EnCana's
proved reserves from continuing operations, which are evaluated by independent
qualified reserve evaluators, grew by 20 percent to 17.7 trillion cubic feet
equivalent. Beyond proved reserves, the company holds unbooked resource
potential, which is an inventory of resources that the company believes may
become proved reserves and be produced in the future. EnCana recently
completed its annual internal assessment of its unbooked resource potential.
As of December 31, 2005, EnCana estimates its unbooked resource potential has
increased by 60 percent to about 39 trillion cubic feet of gas equivalent,
comprised of 19 trillion cubic feet of gas and 3.3 billion barrels of oil.
This year-over-year gain was primarily due to additions at Christina Lake and
Foster Creek, reflecting the attractiveness of the company's oilsands
opportunities. The company's estimate of unbooked resource potential is based
on internal estimates of recoverable resources, prices and costs.
"Our confidence in our long term growth potential continues to be
underpinned by the size and quality of our undeveloped reserves and our
unbooked resource potential. Associated with this potential, EnCana's
estimated drilling inventory has increased by 16 percent to about 43,000 well
locations. We expect to develop our unbooked resource potential at a cost of
less than $2 per thousand cubic feet for natural gas and less than $5 per
barrel for oilsands," Eresman said.

EnCana adds two new key resource plays, gas at Bighorn and oil at
Christina Lake
Two of EnCana's newest resource play developments have grown large enough
to be added to the company's key resource play list. EnCana's threshold for
key resource play status is a property containing estimated recoverable
resources in excess of approximately 1 trillion cubic feet of gas equivalent
and an expected capability of reaching daily production of more than
200 million cubic feet of gas equivalent.

Bighorn
In west central Alberta, EnCana's Bighorn resource play covers about
448,000 net acres of land. First quarter production from this deep basin play
was 72 million cubic feet of gas per day, up from an average of 55 million
cubic feet per day in 2005. For 2006, the company expects Bighorn to produce
between 80 million and 90 million cubic feet per day. With about eight rigs
working year round, Bighorn produces from Cretaceous-aged reservoirs within
Western Canada's deep basin. EnCana estimates original gas in place of between
15 billion and 35 billion cubic feet per square mile, with expected drilling
density of one well per 160 or 320 acres. The average well is expected to
recover between 2 billion and 5 billion cubic feet of gas, with initial
production rates averaging 2 million to 5 million cubic feet of gas per day.
The company estimates that the Bighorn resource play has an unbooked resource
potential of about 2 trillion cubic feet of gas.

Christina Lake
Located in northeast Alberta about 120 kilometers south of Fort McMurray,
Christina Lake has the potential to be EnCana's largest oilsands project.
Pilot project work over the past five years has taken steam-assisted gravity
drainage production, from six well pairs drilled into the McMurray formation,
to a level that is expected to average 6,000 barrels of bitumen per day in
2006. A current expansion is expected to take production to about 18,000
barrels per day in 2008 and the project is targeted to grow to more than
250,000 barrels per day over the next decade. With a reservoir thickness of up
to 150 feet of oil-bearing sands, Christina Lake is estimated by EnCana to
have an unbooked resource potential of about 1.8 billion barrels of oil.

Key resource play growth in first quarter up 17 percent in past year
First quarter 2006 oil and gas production from key North American
resource plays increased 17 percent compared to the first quarter of 2005.
This was driven mainly by increases in gas production on coalbed methane
projects in central and southern Alberta, Cutbank Ridge in northeast British
Columbia and the Barnett Shale play in the Fort Worth basin. EnCana's newest
gas resource play, Bighorn, has grown by close to 30 percent in the past year.


Growth from key North American resource plays
-------------------------------------------------------------------------
Daily Production
-------------------------------------------------
Resource Play 2006 2005 2004
-------------------------------------------------
(After royalties) Full Full
Q1 Year Q4 Q3 Q2 Q1 Year
-------------------------------------------------------------------------
Natural Gas (MMcf/d)
Jonah 461 435 454 440 416 431 389
Piceance 316 307 326 302 302 300 261
East Texas 99 90 98 94 85 82 50
Fort Worth 93 70 88 66 63 61 27
Greater Sierra 208 219 226 225 228 195 230
Cutbank Ridge 140 92 125 105 80 56 40
Bighorn 72 55 56 57 53 56 42
CBM 104 57 77 62 51 38 17
Shallow Gas 615 625 625 616 633 625 592
-------------------------------------------------------------------------
Oil (Mbbls/d)
Foster Creek 36 29 35 27 24 30 29
Christina Lake 6 5 5 6 7 4 4
Pelican Lake 29 26 28 27 27 21 19
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Total (MMcfe/d) 2,536 2,311 2,479 2,326 2,259 2,176 1,960
-------------------------------------------------------------------------
% change from Q1 2005 16.5
-------------------------------------------------------------------------
% change from prior
period 2.3 17.9 6.6 3.0 3.8 7.0
-------------------------------------------------------------------------
-------------------------------------------------------------------------


Drilling activity in key North American resource plays
-------------------------------------------------------------------------
Net Wells Drilled
-------------------------------------------------
Resource Play 2006 2005 2004
-------------------------------------------------
Full Full
Q1 Year Q4 Q3 Q2 Q1 Year
-------------------------------------------------------------------------
Natural Gas
Jonah 26 104 21 25 30 28 70
Piceance 63 266 55 69 65 77 250
East Texas 19 84 20 21 22 21 50
Fort Worth 29 59 20 18 12 9 36
Greater Sierra 60 164 25 33 47 59 187
Cutbank Ridge 26 135 34 40 38 23 50
Bighorn 20 51 20 10 10 11 20
CBM 333 1,084 327 216 219 322 760
Shallow Gas 197 1,267 288 341 365 273 1,552
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Oil
Foster Creek 10 39 13 14 2 10 11
Christina Lake 2 - - - - - 2
Pelican Lake - 52 - 3 33 16 92
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Total 785 3,305 823 790 843 849 3,080
-------------------------------------------------------------------------
-------------------------------------------------------------------------

First quarter North American natural gas prices up 32 percent from one
year earlier
EnCana's North American realized natural gas prices, excluding financial
hedging, averaged $7.68 per thousand cubic feet, up 32 percent in the first
quarter of 2006 from an average of $5.81 per thousand cubic feet in the same
2005 period. Including hedging, EnCana's average first quarter realized gas
price was $7.15 per thousand cubic feet. Natural gas prices have retreated
from record levels last winter which followed devastating hurricanes that
caused extensive damage in the Gulf of Mexico in late summer of 2005.
Following a warmer than normal North American winter, gas storage levels are
above long-term averages for this time of year, a market condition that is
expected to put downward pressure on short-term gas prices. The average first
quarter benchmark NYMEX index gas price was $8.98 per thousand cubic feet, up
43 percent from $6.27 per thousand cubic feet in the first quarter of 2005.

About 95 percent of 2006 gas sales has floor price protection
To help provide downside price protection, EnCana has entered into
financial contracts, primarily put options, on about 95 percent of 2006
forecast natural gas sales, which helps assure cash flow for the company's
capital programs. At this time, EnCana has not entered into any significant
hedging arrangements for 2007.

First quarter world oil prices remain strong; EnCana's realized liquids
price up 25 percent
World oil prices continued to be strong through the first quarter of 2006
due to heightened geopolitical concerns impacting world oil supplies and
continued increases in world oil demand despite high prices. During the first
quarter of 2006, the average benchmark West Texas Intermediate (WTI) crude oil
price was $63.48 per barrel, up 27 percent from the first quarter 2005 average
of $50.03 per barrel. During the first quarter of 2006, the substantially
higher level of WTI prices combined with refinery maintenance shut downs and
transportation constraints on Canadian crude resulted in a significant
widening of light/heavy crude oil price differentials. In the first quarter,
the WTI/Western Canada Select differential averaged $28.76 per barrel, up
53 percent from $18.81 per barrel in the same 2005 period. However, with the
advent of the summer paving season and the recent expansion of pipelines to
deliver Canadian heavy oil to some new southern U.S. markets, differentials
have narrowed. In the first quarter, EnCana's average realized oil and NGLs
price, excluding hedging, was $33.87 per barrel, up 14 percent; including
hedging it was $30.75 per barrel, up 25 percent compared to the same period in
2005.

Risk management strategy
Detailed risk management positions at March 31, 2006 are presented in
Note 14 to the unaudited first quarter consolidated financial statements. In
the first quarter of 2006, EnCana's financial price risk management measures
resulted in realized losses of approximately $136 million, comprised of a
$105 million loss on gas hedges and a $31 million loss on oil hedges. The
company's hedging strategy currently employs primarily put options to help
protect against downside risk without limiting upside in a rising price
environment.

Corporate developments
----------------------

Quarterly dividend increased 33 percent to 10 cents per share
EnCana's board of directors has increased the company's quarterly
dividend 33 percent to 10 cents per share, which is payable on June 30, 2006
to common shareholders of record as of June 15, 2006.

Normal Course Issuer Bid purchases
To April 26, 2006, EnCana has purchased for cancellation approximately
23.3 million of its shares at an average price of US$46.21 per share under its
current Normal Course Issuer Bid, which allows the company to purchase up to
10 percent of the company's public float at the time of the approval of the
bid - October, 2005. The company had 836 million shares outstanding at
March 31, 2006. EnCana's 2006 capital program is expected to be funded by cash
flow. An estimated $3.3 billion of after-tax proceeds from the company's asset
divestitures in 2006 are expected to be directed to share purchases and debt
repayment.

Financial strength
------------------

EnCana maintains a strong balance sheet. At March 31, 2006 the company's
net debt-to-capitalization ratio was 26:74. EnCana's net debt-to-EBITDA
multiple, on a trailing 12-month basis, was 0.6 times. These ratios are below
the company's targeted range for net debt-to-capitalization of between 30 and
40 percent and 1.0 to 2.0 times for net debt-to-EBITDA. The company expects
these ratios to remain at the lower end of their ranges for the rest of 2006.
In the first quarter of 2006, EnCana invested $1,946 million of capital
in continuing operations. Net divestitures were $240 million, resulting in net
capital investment in continuing operations of $1,706 million.

-------------------------------------------------------------------------
CONFERENCE CALL TODAY
8 a.m. Mountain Time (10 a.m. Eastern Time)

EnCana Corporation will host a conference call today, Wednesday,
April 26, 2006 starting at 8 a.m., Mountain Time (10 a.m. Eastern Time),
to discuss EnCana's first quarter 2006 financial and operating results.

To participate, please dial (800) 819-9193 (toll-free in North America)
or (913) 981-4911 approximately 10 minutes prior to the conference call.
An archived recording of the call will be available from approximately
3 p.m. MT on April 26 until midnight May 3, 2006 by dialling
(888) 203-1112 or (719) 457-0820 and entering access code 1759478.

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.
-------------------------------------------------------------------------

EnCana Corporation
With an enterprise value of approximately US$50 billion, EnCana is one of
North America's leading natural gas producers, the largest holder of gas and
oil resource lands onshore North America and is a technical and cost leader in
the in-situ recovery of oilsands bitumen. EnCana delivers predictable,
reliable, profitable growth from its portfolio of long-life resource plays
situated in Canada and the United States. Contained in unconventional
reservoirs, resource plays are large contiguous accumulations of hydrocarbons,
located in thick or areally extensive deposits, that typically have lower
geological and commercial development risk, lower average decline rates and
longer producing lives than conventional plays. EnCana common shares trade on
the Toronto and New York stock exchanges under the symbol ECA.

NOTE 1: Non-GAAP measures
This news release contains references to cash flow and total operating
earnings.
- 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
or loss 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 these 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. 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.

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 necessarily 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 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
anticipated success of and production from the Jonah, Christina Lake and
Bighorn resource plays in 2006 and beyond; the expected proceeds from planned
divestitures; expected proportion of total production and cash flows
contributed by natural gas; anticipated success of EnCana's market risk
mitigation strategy and its impact on cash flow, upside potential and downside
protection; anticipated purchases pursuant to the Normal Course Issuer Bid;
potential demand for gas; anticipated production in 2006 and beyond;
anticipated drilling; potential capital expenditures and investment; potential
oil, natural gas and NGLs sales in 2006 and beyond; anticipated ability to
meet production, operating cost and sales guidance targets; anticipated costs,
including costs associated with developing unbooked resource potential and
expected costs to develop the company's drilling inventory; anticipated prices
for natural gas; anticipated sale of the company's natural gas storage
business and the timing of such a transaction; 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 on 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 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 March 31, 2006

EnCana Corporation

U.S. DOLLARS

Notice to Reader

The draft financial statements are provided for your information; the
reader should be aware the financial statements are still under review and
changes may be made. The financial statements are confidential and are not to
be distributed.


CONSOLIDATED STATEMENT OF EARNINGS (unaudited)

Three Months Ended
March 31,
-----------------------
($ millions, except per share amounts) 2006 2005
-------------------------------------------------------------------------

REVENUES, NET OF ROYALTIES (Note 3)
Upstream $ 2,691 $ 2,106
Market Optimization 716 894
Corporate - Unrealized gain (loss) on
risk management 1,263 (962)
-------------------------------------------------------------------------
4,670 2,038

EXPENSES (Note 3)
Production and mineral taxes 139 87
Transportation and selling 152 133
Operating 412 300
Purchased product 689 879
Depreciation, depletion and amortization 765 679
Administrative 58 61
Interest, net (Note 6) 88 100
Accretion of asset retirement
obligation (Note 10) 12 9
Foreign exchange (gain) loss, net (Note 7) 44 32
Stock-based compensation - options - 4
(Gain) on dispositions (9) -
-------------------------------------------------------------------------
2,350 2,284
-------------------------------------------------------------------------
NET EARNINGS (LOSS) BEFORE INCOME TAX 2,320 (246)
Income tax expense (recovery) (Note 8) 848 (84)
-------------------------------------------------------------------------
NET EARNINGS (LOSS) FROM CONTINUING
OPERATIONS 1,472 (162)
NET EARNINGS FROM DISCONTINUED
OPERATIONS (Note 4) 2 117
-------------------------------------------------------------------------
NET EARNINGS (LOSS) $ 1,474 $ (45)
-------------------------------------------------------------------------
-------------------------------------------------------------------------

NET EARNINGS (LOSS) FROM CONTINUING
OPERATIONS PER COMMON SHARE (Note 13)
Basic $ 1.74 $ (0.18)
Diluted $ 1.70 $ (0.18)
-------------------------------------------------------------------------
-------------------------------------------------------------------------

NET EARNINGS (LOSS) PER COMMON SHARE (Note 13)
Basic $ 1.74 $ (0.05)
Diluted $ 1.70 $ (0.05)
-------------------------------------------------------------------------
-------------------------------------------------------------------------



CONSOLIDATED STATEMENT OF RETAINED EARNINGS
(unaudited)

Three Months Ended
March 31,
-----------------------
($ millions) 2006 2005
-------------------------------------------------------------------------

RETAINED EARNINGS, BEGINNING OF YEAR $ 9,481 $ 7,935
Net Earnings (Loss) 1,474 (45)
Dividends on Common Shares (64) (44)
Charges for Normal Course Issuer Bid (Note 11) (801) (490)
Charges for Shares Repurchased and Held - (70)
-------------------------------------------------------------------------
RETAINED EARNINGS, END OF PERIOD $ 10,090 $ 7,286
-------------------------------------------------------------------------
-------------------------------------------------------------------------
See accompanying Notes to Consolidated Financial Statements.



CONSOLIDATED BALANCE SHEET (unaudited)

As at As at
March 31, December
($ millions) 2006 31, 2005
-------------------------------------------------------------------------

ASSETS
Current Assets
Cash and cash equivalents $ 324 $ 105
Accounts receivable and accrued revenues 1,567 1,851
Risk management (Note 14) 811 495
Inventories 90 103
Assets of discontinued operations (Note 4) 785 1,050
-------------------------------------------------------------------------
3,577 3,604
Property, Plant and Equipment, net (Note 3) 25,858 24,881
Investments and Other Assets 421 496
Risk Management (Note 14) 419 530
Assets of Discontinued Operations (Note 4) - 2,113
Goodwill 2,522 2,524
-------------------------------------------------------------------------
(Note 3) $ 32,797 $ 34,148
-------------------------------------------------------------------------
-------------------------------------------------------------------------


LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
Accounts payable and accrued liabilities $ 2,519 $ 2,741
Income tax payable 602 392
Risk management (Note 14) 254 1,227
Liabilities of discontinued
operations (Note 4) 193 438
Current portion of long-term debt (Note 9) 73 73
-------------------------------------------------------------------------
3,641 4,871
Long-Term Debt (Note 9) 5,819 6,703
Other Liabilities 87 93
Risk Management (Note 14) 27 102
Asset Retirement Obligation (Note 10) 849 816
Liabilities of Discontinued
Operations (Note 4) - 267
Future Income Taxes 5,790 5,289
-------------------------------------------------------------------------
16,213 18,141
-------------------------------------------------------------------------
Shareholders' Equity
Share capital (Note 11) 5,006 5,131
Paid in surplus 132 133
Retained earnings 10,090 9,481
Foreign currency translation adjustment 1,356 1,262
-------------------------------------------------------------------------
16,584 16,007
-------------------------------------------------------------------------
$ 32,797 $ 34,148
-------------------------------------------------------------------------
-------------------------------------------------------------------------
See accompanying Notes to Consolidated Financial Statements.



CONSOLIDATED STATEMENT OF CASH FLOWS (unaudited)

Three Months Ended
March 31,
-----------------------
($ millions) 2006 2005
-------------------------------------------------------------------------

OPERATING ACTIVITIES
Net earnings (loss) from continuing
operations $ 1,472 $ (162)
Depreciation, depletion and amortization 765 679
Future income taxes (Note 8) 517 (295)
Unrealized (gain) loss on risk
management (Note 14) (1,261) 959
Unrealized foreign exchange (gain) loss 60 18
Accretion of asset retirement
obligation (Note 10) 12 9
(Gain) on dispositions (9) -
Other 23 39
-------------------------------------------------------------------------
Cash flow from continuing operations 1,579 1,247
Cash flow from discontinued operations 112 166
-------------------------------------------------------------------------
Cash flow 1,691 1,413
Net change in other assets and liabilities (11) 2
Net change in non-cash working capital
from continuing operations 2,044 614
Net change in non-cash working capital
from discontinued operations (1,427) (111)
-------------------------------------------------------------------------
2,297 1,918
-------------------------------------------------------------------------

INVESTING ACTIVITIES
Capital expenditures (Note 3) (1,961) (1,509)
Proceeds on disposal of assets (Note 5) 255 53
Net change in investments and other 77 19
Net change in non-cash working capital
from continuing operations 119 161
Discontinued operations 1,313 (73)
-------------------------------------------------------------------------
(197) (1,349)
-------------------------------------------------------------------------

FINANCING ACTIVITIES
Net (repayment) issuance of revolving
long-term debt (881) (33)
Repayment of long-term debt - (1)
Issuance of common shares (Note 11) 52 101
Purchase of common shares (Note 11) (978) (760)
Dividends on common shares (64) (44)
Other (10) (2)
-------------------------------------------------------------------------
(1,881) (739)
-------------------------------------------------------------------------

DEDUCT: FOREIGN EXCHANGE (GAIN) LOSS ON
CASH AND CASH EQUIVALENTS HELD IN FOREIGN
CURRENCY - (1)
-------------------------------------------------------------------------

INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 219 (169)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 105 593
-------------------------------------------------------------------------
CASH AND CASH EQUIVALENTS, END OF PERIOD $ 324 $ 424
-------------------------------------------------------------------------
-------------------------------------------------------------------------
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. The Company is in the business of exploration for, and
production and marketing of, natural gas, crude oil and natural gas
liquids, as well as natural gas storage, natural gas liquids processing
and power generation operations.

The interim Consolidated Financial Statements have been prepared
following the same accounting policies and methods of computation as the
annual audited Consolidated Financial Statements for the year ended
December 31, 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. As of January 1, 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.

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 venture exploration is mainly focused on
opportunities in Chad, 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 March 31)

Upstream Market Optimization
---------------------------------------
2006 2005 2006 2005
-------------------------------------------------------------------------

Revenues, Net of Royalties $ 2,691 $ 2,106 $ 716 $ 894
Expenses
Production and mineral taxes 139 87 - -
Transportation and selling 149 131 3 2
Operating 393 292 18 11
Purchased product - - 689 879
Depreciation, depletion and
amortization 744 660 3 2
-------------------------------------------------------------------------
Segment Income $ 1,266 $ 936 $ 3 $ -
-------------------------------------------------------------------------
-------------------------------------------------------------------------

Corporate(*) Consolidated
---------------------------------------
2006 2005 2006 2005
-------------------------------------------------------------------------

Revenues, Net of Royalties $ 1,263 $ (962) $ 4,670 $ 2,038
Expenses
Production and mineral taxes - - 139 87
Transportation and selling - - 152 133
Operating 1 (3) 412 300
Purchased product - - 689 879
Depreciation, depletion and
amortization 18 17 765 679
-------------------------------------------------------------------------
Segment Income (Loss) $ 1,244 $ (976) 2,513 (40)
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Administrative 58 61
Interest, net 88 100
Accretion of asset retirement
obligation 12 9
Foreign exchange (gain) loss, net 44 32
Stock-based compensation - options - 4
(Gain) on dispositions (9) -
-------------------------------------------------------------------------
193 206
-------------------------------------------------------------------------
Net Earnings (Loss) Before Income Tax 2,320 (246)
Income tax expense (recovery) 848 (84)
-------------------------------------------------------------------------
Net Earnings (Loss) From
Continuing Operations $ 1,472 $ (162)
-------------------------------------------------------------------------
-------------------------------------------------------------------------

(*) For the three months ended March 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 $ 1,263 $ (962)
Operating Expenses and Other - Corporate 2 (3)
-------------------------------------------------------------------------
Total Unrealized Gain (Loss) on Risk Management
before-tax - Continuing Operations $ 1,261 $ (959)
-------------------------------------------------------------------------
-------------------------------------------------------------------------

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

Upstream Canada United States
---------------------------------------
2006 2005 2006 2005
-------------------------------------------------------------------------

Revenues, Net of Royalties $ 1,830 $ 1,426 $ 779 $ 619
Expenses
Production and mineral taxes 45 22 94 65
Transportation and selling 83 87 66 44
Operating 242 192 68 44
Depreciation, depletion and
amortization 526 462 210 188
-------------------------------------------------------------------------
Segment Income $ 934 $ 663 $ 341 $ 278
-------------------------------------------------------------------------
-------------------------------------------------------------------------

Transportation and selling for the United States for 2006 includes a one
time payment of $14 million to terminate a long-term physical delivery
contract.

Other Total Upstream
---------------------------------------
2006 2005 2006 2005
-------------------------------------------------------------------------

Revenues, Net of Royalties $ 82 $ 61 $ 2,691 $ 2,106
Expenses
Production and mineral taxes - - 139 87
Transportation and selling - - 149 131
Operating 83 56 393 292
Depreciation, depletion and
amortization 8 10 744 660
-------------------------------------------------------------------------
Segment Income (Loss) $ (9) $ (5) $ 1,266 $ 936
-------------------------------------------------------------------------
-------------------------------------------------------------------------

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

Produced Gas
-----------------------------------------------------
Canada United States Total
-----------------------------------------------------
2006 2005 2006 2005 2006 2005
-------------------------------------------------------------------------

Revenues, Net of
Royalties $ 1,441 $ 1,133 $ 718 $ 564 $ 2,159 $ 1,697
Expenses
Production and
mineral taxes 36 16 89 59 125 75
Transportation
and selling 67 70 66 44 133 114
Operating 153 121 68 44 221 165
-------------------------------------------------------------------------
Operating Cash
Flow $ 1,185 $ 926 $ 495 $ 417 $ 1,680 $ 1,343
-------------------------------------------------------------------------
-------------------------------------------------------------------------

Transportation and selling for the United States for 2006 includes a
one time payment 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 $ 389 $ 293 $ 61 $ 55 $ 450 $ 348
Expenses
Production and
mineral taxes 9 6 5 6 14 12
Transportation
and selling 16 17 - - 16 17
Operating 89 71 - - 89 71
-------------------------------------------------------------------------
Operating Cash
Flow $ 275 $ 199 $ 56 $ 49 $ 331 $ 248
-------------------------------------------------------------------------
-------------------------------------------------------------------------


Other Total Upstream
---------------------------------------
2006 2005 2006 2005
-------------------------------------------------------------------------
Revenues, Net of Royalties $ 82 $ 61 $ 2,691 $ 2,106
Expenses
Production and mineral taxes - - 139 87
Transportation and selling - - 149 131
Operating 83 56 393 292
-------------------------------------------------------------------------
Operating Cash Flow $ (1) $ 5 $ 2,010 $ 1,596
-------------------------------------------------------------------------
-------------------------------------------------------------------------


Capital Expenditures (Continuing Operations)
Three Months Ended
March 31,
-------------------
2006 2005
-------------------------------------------------------------------------

Upstream Core Capital
Canada $ 1,349 $ 1,041
United States 537 403
Other Countries 18 13
-------------------------------------------------------------------------
1,904 1,457
-------------------------------------------------------------------------

Upstream Acquisition Capital
Canada 8 3
United States 7 9
-------------------------------------------------------------------------
15 12
-------------------------------------------------------------------------

Market Optimization 29 34
Corporate 13 6
-------------------------------------------------------------------------
Total $ 1,961 $ 1,509
-------------------------------------------------------------------------
-------------------------------------------------------------------------


Property, Plant and Equipment and
Total Assets

Property,
Plant and Equipment Total Assets
---------------------------------------
As at As at
---------------------------------------
March December March December
31, 2006 31, 2005 31, 2006 31, 2005
-------------------------------------------------------------------------

Upstream $ 25,423 $ 24,247 $ 29,744 $ 28,858
Market Optimization 173 371 330 597
Corporate 262 263 1,938 1,530
Assets of Discontinued
Operations (Note 4) 785 3,163
-------------------------------------------------------------------------
Total $ 25,858 $ 24,881 $ 32,797 $ 34,148
-------------------------------------------------------------------------
-------------------------------------------------------------------------

4. DISCONTINUED OPERATIONS

Midstream
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. A gain on sale of approximately $370 million,
after-tax, was recorded.

During the fourth quarter of 2005, EnCana decided to divest of its
natural gas storage operations. EnCana's natural gas storage operations
include 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 is subject to closing
conditions and applicable regulatory approvals and is expected to close
in two stages. The first stage of the sale is expected to close in the
second quarter of 2006 for proceeds of $1.3 billion. The second stage
will close following receipt of regulatory approvals.

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 include 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 is a shipper on the OCP Pipeline and
pays commercial rates for tariffs. The majority of the Company's crude
oil produced in Ecuador is sold to a single marketing company. Payments
are secured by letters of credit from a major financial institution which
has a high quality investment grade credit rating.

In accordance with Canadian generally accepted accounting principles,
depletion, depreciation and amortization expense has not been recorded in
the Consolidated Statement of Earnings for discontinued operations.

On February 28, 2006, EnCana completed the sale of its interest in its
Ecuador operations for $1.4 billion which is subject to a final statement
of adjustment to be received in the second quarter. A loss on sale of
approximately $47 million, after-tax, was recorded.

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 March 31,
---------------------------------------
Ecuador United Kingdom
---------------------------------------
2006 2005 2006 2005
-------------------------------------------------------------------------

Revenues, Net of Royalties(*) $ 200 $ 191 $ - $ -
-------------------------------------------------------------------------

Expenses
Production and mineral taxes 23 22 - -
Transportation and selling 10 15 - -
Operating 25 28 - -
Purchased product - - - -
Depreciation, depletion and
amortization 84 - - -
Administrative - - - -
Interest, net (2) - - -
Foreign exchange (gain) loss, net 1 - 1 -
(Gain) loss on discontinuance 47 - - -
-------------------------------------------------------------------------
188 65 1 -
-------------------------------------------------------------------------
Net Earnings (Loss) Before Income
Tax 12 126 (1) -
Income tax expense 59 46 - -
-------------------------------------------------------------------------
Net Earnings (Loss) From
Discontinued Operations $ (47) $ 80 $ (1) $ -
-------------------------------------------------------------------------
-------------------------------------------------------------------------


For the three months ended March 31,
---------------------------------------
Midstream Total
---------------------------------------
2006 2005 2006 2005
-------------------------------------------------------------------------

Revenues, Net of Royalties $ 435 $ 623 $ 635 $ 814
-------------------------------------------------------------------------

Expenses
Production and mineral taxes - - 23 22
Transportation and selling - 3 10 18
Operating 19 72 44 100
Purchased product 354 484 354 484
Depreciation, depletion and
amortization - 7 84 7
Administrative - - - -
Interest, net - - (2) -
Foreign exchange (gain) loss, net - (1) 2 (1)
(Gain) loss on discontinuance - - 47 -
-------------------------------------------------------------------------
373 565 562 630
-------------------------------------------------------------------------
Net Earnings (Loss) Before Income
Tax 62 58 73 184
Income tax expense 12 21 71 67
-------------------------------------------------------------------------
Net Earnings (Loss) From
Discontinued Operations $ 50 $ 37 $ 2 $ 117
-------------------------------------------------------------------------
-------------------------------------------------------------------------

(*) 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 $23 million and
unrealized mark-to-market losses of $20 million.


Consolidated Balance Sheet

The impact of the discontinued operations in the Consolidated Balance
Sheet is as follows:

As at
---------------------------------------
March 31, 2006
---------------------------------------
United
Ecuador Kingdom Midstream Total
-------------------------------------------------------------------------
Assets
Cash and cash equivalents $ - $ 8 $ (30) $ (22)
Accounts receivable and accrued
revenues - - 125 125
Risk management - - 3 3
Inventories - - 88 88
-------------------------------------------------------------------------
- 8 186 194
Property, plant and equipment,
net 1 - 523 524
Investments and other assets - - - -
Goodwill - - 67 67
-------------------------------------------------------------------------
$ 1 $ 8 $ 776 $ 785
-------------------------------------------------------------------------
Liabilities
Accounts payable and accrued
liabilities $ - $ 27 $ 66 $ 93
Income tax payable - 6 19 25
Risk management - - - -
-------------------------------------------------------------------------
- 33 85 118
Asset retirement obligation - - - -
Future income taxes - - 75 75
-------------------------------------------------------------------------
- 33 160 193
-------------------------------------------------------------------------
Net Assets of Discontinued
Operations $ 1 $ (25) $ 616 $ 592
-------------------------------------------------------------------------
-------------------------------------------------------------------------


As at
---------------------------------------
December 31, 2005
---------------------------------------
United
Ecuador Kingdom Midstream 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 162 (2) 86 246
-------------------------------------------------------------------------
458 31 216 705
-------------------------------------------------------------------------
Net Assets of Discontinued
Operations $ 1,435 $ (23) $ 1,046 $ 2,458
-------------------------------------------------------------------------
-------------------------------------------------------------------------

Contingencies
EnCana has 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. At this point it is not possible to predict whether any
indemnification payments will be required to be made to the purchaser.

5. DIVESTITURES

Total proceeds received on sale of assets and investments was
$255 million (2005 - $53 million) as described below:

Upstream
In 2006, the Company has completed the disposition of mature conventional
oil and natural gas assets for proceeds of $11 million
(2005 - $53 million).

Market Optimization
In February 2006, the Company sold its investment in Entrega Gas Pipeline
LLC for approximately $244 million.

6. INTEREST, NET
Three Months Ended
March 31,
-----------------------
2006 2005
-------------------------------------------------------------------------

Interest Expense - Long-Term Debt $ 94 $ 101
Interest Expense - Other 5 4
Interest Income (11) (5)
-------------------------------------------------------------------------
$ 88 $ 100
-------------------------------------------------------------------------
-------------------------------------------------------------------------

7. FOREIGN EXCHANGE (GAIN) LOSS, NET
Three Months Ended
March 31,
-----------------------
2006 2005
-------------------------------------------------------------------------

Unrealized Foreign Exchange (Gain) Loss on
Translation of U.S. Dollar Debt Issued in Canada $ 4 $ 18
Other Foreign Exchange (Gain) Loss 40 14
-------------------------------------------------------------------------
$ 44 $ 32
-------------------------------------------------------------------------
-------------------------------------------------------------------------

8. INCOME TAXES

The provision for income taxes is as follows:

Three Months Ended
March 31,
-----------------------
2006 2005
-------------------------------------------------------------------------

Current
Canada $ 308 $ 172
United States 23 32
Other - 7
-------------------------------------------------------------------------
Total Current Tax 331 211
-------------------------------------------------------------------------

Future 517 (295)
-------------------------------------------------------------------------
$ 848 $ (84)
-------------------------------------------------------------------------
-------------------------------------------------------------------------

The following table reconciles income taxes calculated at the Canadian
statutory rate with the actual income taxes:

Three Months Ended
March 31,
-----------------------
2006 2005
-------------------------------------------------------------------------

Net Earnings (Loss) Before Income Tax $ 2,320 $ (246)
Canadian Statutory Rate 35.9% 37.9%
-------------------------------------------------------------------------
Expected Income Tax 833 (93)

Effect on Taxes Resulting from:
Non-deductible Canadian crown payments 31 42
Canadian resource allowance (20) (48)
Canadian resource allowance on unrealized risk
management losses - 18
Statutory and other rate differences (16) (13)
Non-taxable capital (gains) losses (1) 5
Large corporations tax 1 4
Other 20 1
-------------------------------------------------------------------------
$ 848 $ (84)
-------------------------------------------------------------------------
Effective Tax Rate 36.6% 34.1%
-------------------------------------------------------------------------
-------------------------------------------------------------------------

9. LONG-TERM DEBT
As at As at
March December
31, 2006 31, 2005
-------------------------------------------------------------------------

Canadian Dollar Denominated Debt
Revolving credit and term loan borrowings $ 542 $ 1,425
Unsecured notes 793 793
-------------------------------------------------------------------------
1,335 2,218
-------------------------------------------------------------------------

U.S. Dollar Denominated Debt
Revolving credit and term loan borrowings - -
Unsecured notes 4,494 4,494
-------------------------------------------------------------------------
4,494 4,494
-------------------------------------------------------------------------

Increase in Value of Debt Acquired (*) 63 64
Current Portion of Long-Term Debt (73) (73)
-------------------------------------------------------------------------
$ 5,819 $ 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
March December
31, 2006 31, 2005
-------------------------------------------------------------------------

Asset Retirement Obligation, Beginning of Year $ 816 $ 611
Liabilities Incurred 22 77
Liabilities Settled (13) (42)
Liabilities Disposed - (23)
Change in Estimated Future Cash Flows 13 135
Accretion Expense 12 37
Other (1) 21
-------------------------------------------------------------------------
Asset Retirement Obligation, End of Period $ 849 $ 816
-------------------------------------------------------------------------
-------------------------------------------------------------------------

11. SHARE CAPITAL

March 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 2.6 52 15.0 294
Common Shares Repurchased (21.3) (177) (60.7) (462)
-------------------------------------------------------------------------
Common Shares Outstanding, End of
Period 836.2 $ 5,006 854.9 $ 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
To March 31, 2006, the Company purchased 21.3 million Common Shares for
total consideration of approximately $978 million. Of the amount paid,
$177 million was charged to Share capital and $801 million was charged to
Retained earnings.

EnCana has obtained regulatory approval each year under Canadian
securities laws to purchase Common Shares under four consecutive Normal
Course Issuer Bids ("Bids") which commenced in October 2002 and may
continue until October 30, 2006. EnCana is entitled to purchase, for
cancellation, up to approximately 85.6 million Common Shares under the
renewed Bid which commenced on October 31, 2005 and will terminate no
later than October 30, 2006.

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 grant date.
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 March 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 (2.6) 23.55
Forfeited (0.2) 23.93
-------------------------------------------------------------------------
Outstanding, End of Period 17.9 23.33
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Exercisable, End of Period 14.4 23.16
-------------------------------------------------------------------------
-------------------------------------------------------------------------


Outstanding Options Exercisable Options
-----------------------------------------------------
Weighted
Average Weighted
Number Remaining Weighted Number Average
of Options Contractual Average of Options Exercise
Range of Exercise Outstanding Life Exercise Outstanding Price
Price (C$) (millions) (years) Price (C$) (millions) (C$)
-------------------------------------------------------------------------

10.50 to 22.99 1.6 2.2 15.41 1.5 15.25
23.00 to 23.49 0.3 1.8 23.23 0.2 23.25
23.50 to 23.99 6.5 2.1 23.89 3.4 23.89
24.00 to 24.49 9.0 1.0 24.18 9.0 24.18
24.50 to 25.99 0.5 2.4 25.24 0.3 25.19
-------------------------------------------------------------------------
17.9 1.6 23.33 14.4 23.16
-------------------------------------------------------------------------
-------------------------------------------------------------------------

At March 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 March 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
March 31,
-----------------------
2006 2005
-------------------------------------------------------------------------

Current Service Cost $ 3 $ 2
Interest Cost 4 3
Expected Return on Plan Assets (4) (3)
Expected Actuarial Loss on Accrued Benefit
Obligation 1 1
Expected Amortization of Past Service Costs 1 1
Amortization of Transitional Obligation - (1)
Expense for Defined Contribution Plan 5 5
-------------------------------------------------------------------------
Net Benefit Plan Expense $ 10 $ 8
-------------------------------------------------------------------------
-------------------------------------------------------------------------

For the period ended March 31, 2006, there were no contributions to the
defined benefit pension plans.

B) Share Appreciation Rights ("SAR's")

The following table summarizes the information about SAR's at
March 31, 2006:
Weighted
Average
Outstanding Exercise
SAR's Price
-------------------------------------------------------------------------

Canadian Dollar Denominated (C$)
Outstanding, Beginning of Year 246,739 23.13
Exercised (239,115) 23.15
Forfeited - -
-------------------------------------------------------------------------
Outstanding, End of Period 7,624 22.53
-------------------------------------------------------------------------
Exercisable, End of Period 7,624 22.53
-------------------------------------------------------------------------
-------------------------------------------------------------------------

U.S. Dollar Denominated (US$)
Outstanding, Beginning of Year 319,511 14.33
Exercised (228,359) 15.14
-------------------------------------------------------------------------
Outstanding, End of Period 91,152 12.49
-------------------------------------------------------------------------
Exercisable, End of Period 91,152 12.49
-------------------------------------------------------------------------
-------------------------------------------------------------------------

For the period ended March 31, 2006, EnCana recorded compensation costs
of $4 million related to the outstanding SAR's (2005 - $9 million).

C) Tandem Share Appreciation Rights ("TSAR's")

The following table summarizes the information about Tandem SAR's at
March 31, 2006:

Weighted
Average
Outstanding Exercise
TSAR's Price
-------------------------------------------------------------------------

Canadian Dollar Denominated (C$)
Outstanding, Beginning of Year 8,403,967 38.41
Granted 10,220,600 48.34
Exercised - SAR's (142,171) 35.59
Exercised - Options (2,560) 34.44
Forfeited (174,456) 39.17
-------------------------------------------------------------------------
Outstanding, End of Period 18,305,380 43.97
-------------------------------------------------------------------------
Exercisable, End of Period 1,977,078 36.70
-------------------------------------------------------------------------
-------------------------------------------------------------------------

For the period ended March 31, 2006, EnCana recorded compensation costs
of $28 million related to the outstanding TSAR's (2005 - $5 million).

D) Deferred Share Units ("DSU's")

The following table summarizes the information about DSU's at
March 31, 2006:

Weighted
Average
Outstanding Exercise
DSU's Price
-------------------------------------------------------------------------

Canadian Dollar Denominated (C$)
Outstanding, Beginning of Year 836,561 26.81
Granted, Directors 71,304 56.71
Exercised (28,750) 54.50
Units, in Lieu of Dividends 1,292 54.50
-------------------------------------------------------------------------
Outstanding, End of Period 880,407 28.37
-------------------------------------------------------------------------
Exercisable, End of Period 880,407 28.37
-------------------------------------------------------------------------
-------------------------------------------------------------------------

For the period ended March 31, 2006, EnCana recorded compensation costs
of $6 million related to the outstanding DSU's (2005 - $5 million).

E) Performance Share Units ("PSU's")

The following table summarizes the information about PSU's at
March 31, 2006:

Weighted
Average
Outstanding Grant
PSU's Price
-------------------------------------------------------------------------

Canadian Dollar Denominated (C$)
Outstanding, Beginning of Year 4,704,348 30.65
Granted 10,409 28.56
Exercised (239,794) 23.26
Forfeited (31,756) 32.93
-------------------------------------------------------------------------
Outstanding, End of Period 4,443,207 31.04
-------------------------------------------------------------------------
-------------------------------------------------------------------------

U.S. Dollar Denominated (US$)
Outstanding, Beginning of Year 739,649 25.22
Granted 1,113 25.49
Forfeited (52,426) 21.58
-------------------------------------------------------------------------
Outstanding, End of Period 688,336 25.50
-------------------------------------------------------------------------
-------------------------------------------------------------------------

For the period ended March 31, 2006, EnCana recorded a reduction to
compensation costs of $16 million related to the outstanding PSU's
(2005 - $14 million compensation cost).

At March 31, 2006, EnCana has approximately 5.5 million Common Shares
held in trust for issuance upon vesting of the PSU's.

13. PER SHARE AMOUNTS

The following table summarizes the Common Shares used in calculating Net
Earnings per Common Share:

Three Months Ended
March 31,
-----------------------
(millions) 2006 2005
-------------------------------------------------------------------------

Weighted Average Common Shares Outstanding - Basic 847.9 891.8
Effect of Dilutive Securities 16.9 17.2
-------------------------------------------------------------------------
Weighted Average Common Shares Outstanding - Diluted 864.8 909.0
-------------------------------------------------------------------------
-------------------------------------------------------------------------

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 (Loss) Gain on Risk Management Activities

The following tables summarize the gains and losses on risk management
activities:

Realized Gain (Loss)
-----------------------
Three Months Ended
-----------------------
March 31,
-----------------------
2006 2005
-------------------------------------------------------------------------

Revenues, Net of Royalties $ (206) $ (19)
Operating Expenses and Other 1 5
-------------------------------------------------------------------------
Loss on Risk Management - Continuing Operations (205) (14)
Gain (Loss) on Risk Management - Discontinued
Operations 1 (24)
-------------------------------------------------------------------------
$ (204) $ (38)
-------------------------------------------------------------------------
-------------------------------------------------------------------------


Unrealized Gain (Loss)
-----------------------
Three Months Ended
-----------------------
March 31,
-----------------------
2006 2005
-------------------------------------------------------------------------

Revenues, Net of Royalties $ 1,263 $ (962)
Operating Expenses and Other (2) 3
-------------------------------------------------------------------------
Gain (Loss) on Risk Management - Continuing
Operations 1,261 (959)
Gain (Loss) on Risk Management - Discontinued
Operations 23 (30)
-------------------------------------------------------------------------
$ 1,284 $ (989)
-------------------------------------------------------------------------
-------------------------------------------------------------------------

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 March 31, 2006, a net unrealized gain remains to be recognized over
the next three years as follows:

Unrealized
Gain
-------------------------------------------------------------------------
2006
Three months ended June 30, 2006 $ 7
Three months ended September 30, 2006 7
Three months ended December 31, 2006 6
-------------------------------------------------------------------------
Total remaining to be recognized in 2006 $ 20
-------------------------------------------------------------------------
-------------------------------------------------------------------------

2007 $ 15
2008 1
-------------------------------------------------------------------------
Total to be recognized $ 36
-------------------------------------------------------------------------
-------------------------------------------------------------------------

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 March 31, 2006:

Total
Transition Fair Market Unrealized
Amount Value Gain (Loss)
-------------------------------------------------------------------------

Fair Value of Contracts,
Beginning of Year $ (40) $ (640) $ -
Change in Fair Value of
Contracts in Place at
Beginning of Year and
Contracts Entered into
During 2006 - 1,076 1,076
Fair Value of Contracts in
Place at Transition Expired
During 2006 4 - 4
Fair Value of Contracts
Realized During 2006 - 204 204
-------------------------------------------------------------------------
Fair Value of Contracts
Outstanding $ (36) $ 640 $ 1,284
Unamortized Premiums Paid on
Options 312
-------------------------------------------------------------------------
Fair Value of Contracts and
Premiums Paid, End of Period $ 952
-------------------------------------------------------------------------

Amounts Allocated to
Continuing Operations $ (36) $ 949 $ 1,261
Amounts Allocated to
Discontinued Operations - 3 23
-------------------------------------------------------------------------
$ (36) $ 952 $ 1,284
-------------------------------------------------------------------------
-------------------------------------------------------------------------

At March 31, 2006, the remaining net deferred amounts recognized on
transition and the risk management amounts are recorded in the
Consolidated Balance Sheet as follows:

As at
March 31,
2006
-------------------------------------------------------------------------

Remaining Deferred Amounts Recognized on Transition
Accounts receivable and accrued revenues $ 1

Accounts payable and accrued liabilities 24
Other liabilities 13
-------------------------------------------------------------------------
Net Deferred Gain - Continuing Operations $ 36
-------------------------------------------------------------------------
-------------------------------------------------------------------------

Risk Management
Current asset $ 811
Long-term asset 419

Current liability 254
Long-term liability 27
-------------------------------------------------------------------------
Net Risk Management Asset - Continuing Operations 949
Net Risk Management Asset - Discontinued Operations 3
-------------------------------------------------------------------------
$ 952
-------------------------------------------------------------------------
-------------------------------------------------------------------------

A summary of all unrealized estimated fair value financial positions is
as follows:

As at
March 31,
2006
-------------------------------------------------------------------------

Commodity Price Risk
Natural gas $ 1,033
Crude oil (90)
Credit Derivatives (2)
Interest Rate Risk 8
-------------------------------------------------------------------------
Total Fair Value Positions - Continuing Operations 949
Total Fair Value Positions - Discontinued Operations 3
-------------------------------------------------------------------------
$ 952
-------------------------------------------------------------------------
-------------------------------------------------------------------------

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. No
significant new contracts have been entered into as at March 31, 2006.

Natural Gas
At March 31, 2006, the Company's gas risk management activities from
financial contracts had an unrealized gain of $797 million and a fair
market value position of $1,036 million. The contracts were as follows:

Notional
Volumes Average Fair Market
(MMcf/d) Term Price Value
-------------------------------------------------------------------------

Sales Contracts
Fixed Price
Contracts

NYMEX Fixed
Price 522 2006 5.65 US$/Mcf $ (330)
Colorado
Interstate
Gas (CIG) 100 2006 4.44 US$/Mcf (50)
Houston Ship
Channel (HSC) 90 2006 5.08 US$/Mcf (57)
Other 81 2006 4.58 US$/Mcf (42)

NYMEX Fixed
Price 240 2007 7.76 US$/Mcf (151)

Options
Purchased NYMEX
Put Options 2,659 2006 7.77 US$/Mcf 359

Purchased NYMEX
Put Options 240 2007 6.00 US$/Mcf (2)

Basis Contracts
Fixed NYMEX to
AECO Basis 796 2006 (0.69) US$/Mcf 169
Fixed NYMEX to
Rockies Basis 345 2006 (0.60) US$/Mcf 100
Fixed NYMEX to
CIG Basis 309 2006 (0.83) US$/Mcf 74
Other 178 2006 (0.35) US$/Mcf 27

Fixed NYMEX to
AECO Basis 747 2007 (0.72) US$/Mcf 175
Fixed NYMEX to
Rockies Basis 538 2007 (0.65) US$/Mcf 241
Fixed NYMEX to
CIG Basis 390 2007 (0.76) US$/Mcf 167
Fixed Rockies to
CIG Basis 12 2007 (0.10) US$/Mcf -

Fixed NYMEX to
AECO Basis 191 2008 (0.78) US$/Mcf 20
Fixed NYMEX to
Rockies Basis 162 2008 (0.59) US$/Mcf 60
Fixed NYMEX to
CIG Basis 40 2008-2009 (0.68) US$/Mcf 26

Purchase Contracts
Fixed Price
Contracts
Waha Purchase 23 2006 5.32 US$/Mcf 9
-------------------------------------------------------------------------
795
Other Financial
Positions(*) 2
-------------------------------------------------------------------------
Total Unrealized
Gain on Financial
Contracts 797
Unamortized Premiums
Paid on Options 239
-------------------------------------------------------------------------
Total Fair Value
Positions $ 1,036
-------------------------------------------------------------------------
-------------------------------------------------------------------------

Total Fair Value
Positions
- Continuing
Operations $ 1,033
Total Fair Value
Positions
- Discontinued
Operations 3
-------------------------------------------------------------------------
Total Fair Value
Positions $ 1,036
-------------------------------------------------------------------------
-------------------------------------------------------------------------
(*) Other financial positions are part of the ongoing operations of the
Company's proprietary production management and gas storage
optimization activities.

Crude Oil
At March 31, 2006, the Company's oil risk management activities from
financial contracts had an unrealized loss of $(163) million and a fair
market value position of $(90) million. The contracts were as follows:

Notional
Volumes Average Fair Market
(bbls/d) Term Price Value
-------------------------------------------------------------------------

Fixed WTI NYMEX
Price 15,000 2006 34.56 US$/bbl $ (139)
Unwind WTI NYMEX
Fixed Price (1,300) 2006 52.75 US$/bbl 5
Purchased WTI
NYMEX Put
Options 59,000 2006 50.44 US$/bbl (21)
Purchased WTI
NYMEX Call
Options (13,700) 2006 61.24 US$/bbl 21

Purchased WTI
NYMEX Put
Options 43,000 2007 44.44 US$/bbl (25)
-------------------------------------------------------------------------
(159)
Other Financial
Positions(*) (4)
-------------------------------------------------------------------------
Total Unrealized
Loss on Financial
Contracts (163)
Unamortized
Premiums Paid on
Options 73
-------------------------------------------------------------------------
Total Fair Value
Positions $ (90)
-------------------------------------------------------------------------
-------------------------------------------------------------------------

Total Fair Value
Positions
- Continuing
Operations $ (90)
-------------------------------------------------------------------------
-------------------------------------------------------------------------
(*) Other financial positions are part of the ongoing operations of the
Company's proprietary production management.


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

California
As disclosed previously, in July 2003, the Company's indirect wholly
owned U.S. marketing subsidiary, WD Energy Services Inc. ("WD"),
concluded a settlement with the U.S. Commodity Futures Trading Commission
("CFTC") of a previously disclosed CFTC investigation whereby WD agreed
to pay a civil monetary penalty in the amount of $20 million without
admitting or denying the findings in the CFTC's order.

EnCana Corporation and WD are defendants in a lawsuit filed by E. & J.
Gallo Winery in the United States District Court in California, further
described below. The Gallo lawsuit claims damages in excess of
$30 million. California law allows for the possibility that the amount of
damages assessed could be tripled.

Along with other energy companies, EnCana Corporation and WD are
defendants in several other lawsuits relating to sales of natural gas in
California from 1999 to 2002 (some of which are class actions and some of
which are brought by individual parties on their own behalf). As is
customary, these lawsuits do not specify the precise amount of damages
claimed. The Gallo and other California lawsuits contain allegations that
the defendants engaged in a conspiracy with unnamed competitors in the
natural gas and derivatives market in California in violation of U.S. and
California anti-trust and unfair competition laws.

In all but one of the class actions in the United States District Court
and in the Gallo action, decisions dealing with the issue of whether the
scope of the Federal Energy Regulatory Commission's exclusive
jurisdiction over natural gas prices precludes the plaintiffs from
maintaining their claims are on appeal to the United States Court of
Appeals for the Ninth Circuit.

Without admitting any liability in the lawsuits, in November 2005, WD has
agreed to pay $20.5 million to settle the class action lawsuits that were
consolidated in San Diego Superior Court, subject to final documentation
and approval by the San Diego Superior Court. The individual parties who
had brought their own actions are not parties to this settlement.

New York
WD is also a defendant in a consolidated class action lawsuit filed in
the United States District Court in New York. The consolidated New York
lawsuit claims that the defendants' alleged manipulation of natural gas
price indices affected natural gas futures and option contracts traded on
the NYMEX from 2000 to 2002. EnCana Corporation was dismissed from the
New York lawsuit, leaving WD and several other companies unrelated to
EnCana Corporation as the remaining defendants. Without admitting any
liability in the lawsuit, WD has agreed to pay $8.2 million to settle the
New York class action lawsuit, subject to final documentation and
approval by the New York District Court.

Based on the aforementioned settlements, a total of $30 million has been
accrued. EnCana Corporation and WD intend to vigorously defend against
the remaining 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.

Investor contact:
EnCana Corporate Development
Sheila McIntosh
Vice-President, Investor Relations
403-645-2194

Ryder McRitchie
Manager, Investor Relations
403-645-2007

Paul Gagne
Manager, Investor Relations
403-645-4737

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

investor.relations@encana.com

ECA stock price

TSX $14.27 Can 0

NYSE $11.11 USD 0

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