Encana Corporation (Encana) announced today that its wholly-owned subsidiary, Encana Oil & Gas (USA) Inc., has completed the previously announced sale of its San Juan asset in New Mexico to Denver-based DJR Energy.

This transaction continues our track record of unlocking value from non-core assets, said Doug Suttles, Encana President & CEO. The proceeds from this sale add to our financial strength and strongly support our commitment to our $1.25 billion share buyback and 25 percent increase to the dividend in 2019.

Following the expected close of its announced strategic combination with Newfield Exploration Company (Newfield), Encana is committed to completing a $1.25 billion share buyback in 2019. Encanas planned share buyback and previously announced 25 percent increase to its dividend following closing of the transaction with Newfield, highlight the quality of its business and commitment to return capital to shareholders.

The sale of Encanas non-core San Juan asset includes approximately 182,000 net acres and represents the companys total land position in the play. In 2017, the asset delivered average production of approximately 5,400 barrels of oil equivalent per day including 3,900 barrels per day of liquids. The transaction has an effective date of April 1, 2018.

Encanas planned share buyback is subject to receipt of regulatory approvals, stock exchange rules and securities laws and may be made through purchases in the open market or other permitted means.

About Encana Corporation

Encana is a leading North American energy producer that is focused on developing its strong portfolio of resource plays, held directly and indirectly through its subsidiaries, producing oil, natural gas liquids (NGLs) and natural gas. 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.

About DJR Energy

DJR Energy is a private upstream oil and gas company using technical expertise and strong financial partnerships to build a premier operated position in the San Juan Basin, New Mexico.