FORM 6-K

SECURITIES AND EXCHANGE COMMISSION

Report of Foreign Private Issuer

Pursuant to Rule 13a-16 or 15d-16
of the Securities Exchange Act of 1934

ENCANA CORPORATION
(Translation of registrant’s name into English)

1800, 855 - 2^nd Street SW
Calgary, Alberta, Canada T2P 2S5
(Address of principal executive office)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):                     

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):                     

Indicate by check mark whether by furnishing the information contained in this Form, the registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934:

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82-                    

Table of Contents

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Date: April 27, 2005

Form 6-K Exhibit Index

EnCana’s first quarter cash flow reaches US$1.41 billion,
 
or $3.11 per share – up 46 percent per share

Total natural gas, oil and NGLs sales per share up 8 percent
 
Quarterly dividend increased 50 percent to 15 cents per share

Calgary, Alberta, (April 27, 2005) – EnCana Corporation’s (TSX & NYSE: ECA) first quarter 2005 total cash flow per share increased 46 percent to US$3.11 per share diluted, or $1.41 billion, compared to the first quarter of 2004. Cash flow and operating earnings rose due to increased sales, higher natural gas and liquids prices and strong operating performance during the first quarter. Total operating earnings increased 34 percent per share to $1.34 per share diluted, or $611 million, compared to the first quarter of 2004. First quarter sales of natural gas, oil and natural gas liquids (NGLs) from total operations increased 8 percent per share from the first quarter of 2004. Sales were 4.52 billion cubic feet of gas equivalent (Bcfe) per day. EnCana’s first quarter net earnings were impacted by an unrealized after-tax loss due to mark-to-market accounting of all hedges, which run primarily through 2006. This resulted in a first quarter net loss from total operations of 10 cents per share diluted, or $45 million.

EnCana increases quarterly dividend 50 percent to 15 cents per share
Given EnCana’s strong financial and operating performance, the board of directors has increased the quarterly dividend 50 percent from 10 to 15 cents per share, on a pre-split basis, which is payable on June 30, 2005 to common shareholders of record as of June 15, 2005.

“In the past several months, the market has recognized the merits of our sharpened focus on profitable, long life North American resource plays. Our unconventional strategy is delivering strong shareholder value. Along with disciplined capital investment in our large portfolio of resource plays, we are returning capital to shareholders through share buybacks and today’s 50 percent dividend increase as we work to build the net asset value of every EnCana share,” said Gwyn Morgan, EnCana’s President & Chief Executive Officer.

IMPORTANT NOTE: EnCana reports in U.S. dollars and follows U.S. protocols, which report sales and reserves on an after-royalties basis. All dollar figures are U.S. dollars unless otherwise noted. EnCana is treating the U.K. and Ecuador operations as discontinued because the U.K. operations were sold in December 2004 and EnCana plans to sell its Ecuador assets. Total results, which include results from Ecuador in 2005 and from the U.K. in prior periods, are reported in the company’s financial statements included in this news release and in supplementary documents posted on its Web site – www.encana.com.

Q1 2005 Financial and Operating Highlights

All references in the remaining text of this news release are on a continuing operations basis.

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Continuing operations: Cash flow up 50 percent per share; Operating earnings up 15 percent per share
EnCana’s first quarter 2005 cash flow per share from continuing operations increased 50 percent to $2.88 per share diluted, or $1.31 billion, compared to the same period in 2004. First quarter cash flow from continuing operations includes a cash tax provision of $225 million, which is consistent with the company’s 2005 guidance. Operating earnings from continuing operations per share increased 15 percent to $1.14 per share diluted, or $518 million, compared to the first quarter of 2004. EnCana’s first quarter net earnings from continuing operations were reduced by $628 million, after-tax, as a result of the unrealized mark-to-market accounting standard governing price risk management activity. About one-third of the mark-to-market loss is attributed to price hedges put in place in the spring of 2004, relating to the acquisition of Tom Brown, Inc. The Tom Brown volumes were hedged through 2006 as a prudent financial measure to help lock in strong returns on the 2004 acquisition. The balance primarily applies to other oil and gas hedges running through 2006. First quarter net earnings also include an after-tax unrealized loss of $15 million due to translation of U.S. dollar denominated debt issued in Canada. These unrealized hedging and currency losses resulted in a net loss from continuing operations of 28 cents per share diluted, or $125 million, compared to net earnings of $326 million in the same 2004 period.

Sales from continuing operations up 14 percent per share
First quarter sales of natural gas, oil and NGLs from continuing operations increased 14 percent per share from the first quarter of 2004. First quarter sales were 4.09 Bcfe per day.

“A successful winter of drilling across our Canadian resource plays, the continued development of our expanded assets in the U.S. and increasing demand and prices for natural gas and oil have combined to generate strong first quarter cash flow and operating earnings for EnCana. Despite a number of weather related setbacks in the quarter, we are on track in 2005 to meet our sales guidance. Natural gas production from EnCana’s North American resource plays is expected to drive a steady climb during the next three quarters towards achieving 2005 sales of between 3.35 billion and 3.50 billion cubic feet of natural gas per day,” Morgan said.

“We continue to focus on efficient execution in the development of our key long-life North American resource plays, where daily production has increased 23 percent in the past year. By applying rigorous capital discipline and adding new efficiencies each year, we are achieving strong returns from these plays,” Morgan said.

Natural gas sales from continuing operations up 20 percent per share in past year
EnCana’s first quarter natural gas sales from continuing operations increased 20 percent per share to 3.15 billion cubic feet per day compared with the first quarter of 2004. Oil and NGLs sales from continuing operations of 157,000 barrels per day decreased 3 percent per share, due to the sale of conventional oil properties during 2004. Operating costs from continuing operations were 64 cents per thousand cubic feet of gas equivalent (Mcfe), which is slightly higher than the company’s full year forecast range due mainly to the impact of an appreciating Canadian dollar. EnCana expects full year operating costs to be within guidance of 55 to 60 cents per Mcfe. First quarter capital investment was $1.5 billion. EnCana drilled 1,352 net wells during the first quarter, about one-quarter of its 2005 forecast of between 5,000 and 5,500 net wells. At the end of March 2005, the company had about 1,500 gas wells awaiting tie-in.

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EnCana updates Unbooked Resource Potential: 19 trillion cubic feet of gas, 900 million barrels of oil & NGLs
Resource plays typically have huge long term potential beyond currently producing wells. EnCana’s Total Resource Portfolio consists of its proved reserves and its Unbooked Resource Potential. Proved reserves are estimated by independent evaluators in accordance with regulatory standards and industry best practices. EnCana engineers have recently updated the company’s Unbooked Resource Potential effective December 31, 2004. In 2004, EnCana’s proved reserves from continuing operations grew by 19 percent, before bitumen revision, to 14.8 trillion cubic feet equivalent. Beyond proved reserves, the company has estimated its Unbooked Resource Potential to be the quantities of hydrocarbons that may be added to proved reserves through the low-risk development of known resources within existing landholdings, that exceed the company’s targeted economic thresholds. EnCana estimates that this Unbooked Resource Potential could be converted to proved reserves over the next five years should the company choose to exploit its drilling inventory at a rate which results in compounded annual production growth exceeding 10 percent. Should EnCana proceed with a lower growth rate strategy, it is expected that the Unbooked Resource Potential would be converted to proved reserves over a longer time frame. As of December 31, 2004, EnCana estimates its Unbooked Resource Potential is 19 trillion cubic feet of natural gas and 900 million barrels of oil and NGLs. The estimate of Unbooked Resource Potential is based on information currently available to EnCana; actual results may differ materially from these estimates.

EnCana’s resource life exceeds a quarter century
EnCana’s Total Resource Portfolio is key to EnCana’s predictable long-term development plans. Based on EnCana’s 2004 production, the company’s estimated total natural gas resource life is about 27 years. For oil and NGLs, the company’s total oil and NGLs resource life estimate is about 26 years. EnCana’s total resource drilling inventory consists of about 36,000 gas wells and about 1,000 oil wells at year end 2004.

“EnCana is extremely well positioned to continue to create shareholder value over the long run as it executes on its huge drilling inventory within our low-risk manufacturing style development program. Largely contained in approximately 18 million net undeveloped acres of onshore North American lands, this total resource life extends for more than a quarter century, based on 2004 production rates, and we believe has the ability to fuel sustainable, profitable growth for many years,” said Randy Eresman, EnCana’s Chief Operating Officer.

EnCana’s Total Resource Portfolio

2005 sales on track
EnCana is on track to meet its 2005 full year sales guidance, from continuing operations, of between 4.25 billion and 4.50 billion cubic feet of gas equivalent per day, comprised of between 3.35 billion and 3.50 billion cubic feet of natural gas per day and between 150,000 and 170,000 barrels of oil and NGLs per day. The company’s sales guidance assumes the divestiture of approximately 22,000 BOE per day of conventional Canadian production later this year. The liquids guidance does not include production of between 75,000 and 85,000 barrels of oil per day from Ecuador, which has been treated as discontinued due to the planned divestiture.

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North American natural gas prices rise in the first quarter of 2005
EnCana’s North American realized field prices, excluding financial hedging, averaged $5.81 per thousand cubic feet, up 10 percent in the first quarter of 2005 from an average of $5.26 per thousand cubic feet in the same 2004 period. Including hedging, EnCana’s average first quarter realized gas price was $5.99 per thousand cubic feet. Natural gas prices are expected to stay strong due to the tight North American supply and demand balance driven by continued demand growth primarily from the electricity generation industry while overall supply has struggled to keep pace. The average first quarter benchmark NYMEX index gas price was $6.27 per thousand cubic feet, up 10 percent from $5.69 per thousand cubic feet in the first quarter of 2004.

First quarter world oil prices remain strong; Canadian heavy oil price differentials widen
World oil prices continued to be strong through the first quarter of 2005 due to increasing global demand, primarily in Asia and North America. During the first quarter of 2005, the average benchmark West Texas Intermediate (WTI) crude oil price was $50.03 per barrel, up 42 percent from the first quarter 2004 average of $35.25 per barrel. The substantially higher level of WTI, combined with limited worldwide upgrading capacity for heavy crude oils, resulted in a significant widening of light/heavy crude oil price differentials. In the first quarter, the WTI/Bow River differential increased 105 percent to $18.51 per barrel compared to the same 2004 period. In the first quarter, EnCana’s average realized oil and NGLs price, excluding hedging, was $29.77 per barrel, up 17 percent; including hedging it was $24.59 per barrel, up 19 percent compared to the same period in 2004.

Risk management strategy
EnCana’s market risk mitigation strategy is intended to help deliver greater predictability of cash flow and returns on investment. Detailed risk management positions at March 31, 2005 are presented in Note 12 to the unaudited first quarter consolidated financial statements. In the first quarter of 2005, EnCana’s financial commodity risk management measures resulted in after-tax cash flow from continuing operations being lower by approximately $10 million, comprised of a $49 million loss on oil hedges, offset by a $35 million gain on gas hedges and a $4 million gain on other hedges.

Hedging aimed at providing downside price protection
A review of the company’s hedging strategy in 2004 resulted in a preference towards the use of hedging instruments which provide downside protection, but do not limit upside in a rising price environment. Currently, about 79 percent of 2005 forecast gas sales is exposed to price upside, while about 53 percent has downside price protection. For oil, about 81 percent of 2005 forecast oil sales is exposed to price upside, while about 34 percent has downside protection. Overall, on a Mcfe basis, about 80 percent of EnCana’s forecast 2005 sales are exposed to market price upside. Beyond 2005, fixed price hedges are in place for approximately 810 million cubic feet per day of 2006 gas production and 31 million cubic feet per day of 2007 gas production.

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EnCana Continuing Operations Highlights
US$ and U.S. protocols

EnCana financial results in U.S. dollars and operating results according to U.S. protocols
EnCana reports in U.S. dollars and according to U.S. protocols in order to facilitate a more direct comparison to other North American upstream oil and natural gas exploration and development companies. Reserves and production are reported on an after-royalty basis.

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Key resource play growth up 23 percent across EnCana’s portfolio
In North America, development capital continues to be focused on turning EnCana’s Unbooked Resource Potential into production and reserves. First quarter oil and gas production from key North American resource plays has increased more than 23 percent since the first quarter of 2004. This is driven mainly by increases in gas production in the Piceance basin in Colorado, shallow gas and coalbed methane (CBM) on the company’s legacy Suffield and Palliser Blocks, Cutbank Ridge in northeast British Columbia, the acquisition of East Texas lands and growth from the Fort Worth resource play, plus increases in oil production at Pelican Lake in northeast Alberta.

Growth from key North American resource plays

Drilling activity in key North American resource plays

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Corporate developments

Shareholders to vote today on two-for-one share split
At the Annual and Special meeting of EnCana’s shareholders later today, EnCana’s shareholders are being asked to approve the split of EnCana’s outstanding common shares on a two-for-one basis. In addition to shareholder approval, the stock split is subject to the receipt of all required regulatory approvals.

If approved by shareholders, and subject to regulatory approvals, each shareholder will receive one additional common share for each common share held on the record date for the stock split of May 12, 2005. Pursuant to the rules of the Toronto Stock Exchange, EnCana’s common shares will commence trading on a subdivided basis at the opening of business on May 10, 2005, which is the second trading day preceding the record date. Also on May 10, 2005, EnCana’s common shares listed on the New York Stock Exchange (NYSE) will commence trading with rights entitling holders to an additional common share for each common share held upon the commencement of trading of the common shares on a subdivided basis on the NYSE. The trading of the common shares on a subdivided basis on the NYSE will occur one day after the delivery of share certificates to registered holders of EnCana’s common shares. It is anticipated that share certificates representing the additional common shares resulting from the stock split will be mailed to registered common shareholders on or about May 20, 2005.

Quarterly dividend increased 50 percent to 15 cents per share
EnCana’s board of directors has increased the company’s quarterly dividend 50 percent to 15 cents per share, on a pre-split basis, which is payable on June 30, 2005 to common shareholders of record as of June 15, 2005.

Normal Course Issuer Bid purchases
To date in 2005, EnCana has purchased for cancellation approximately 11 million of its shares at an average price of $61.65 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 original bid – October, 2004. The company had 440.8 million shares outstanding at March 31, 2005. EnCana’s 2005 capital program is expected to be funded by cash flow, while the company’s planned divestitures of conventional assets in 2005 are expected to bring in substantial funds which EnCana believes will provide the opportunity to increase net asset value per share through share purchases and debt repayment.

Financial strength

EnCana maintains a strong balance sheet. At March 31, 2005 the company’s net debt-to-capitalization ratio was 39:61. EnCana’s net debt-to-EBITDA multiple, on a trailing 12-month basis, was 1.8 times. These ratios are expected to decrease through the year due to cash inflows from operations and asset sales.

In the first quarter of 2005, EnCana invested $1,519 million of capital in continuing operations. Net divestitures were $53 million, resulting in net capital investment in continuing operations of $1,466 million.

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EnCana Corporation
With an enterprise value of approximately US$38 billion, EnCana is one of North America’s leading natural gas producers, is among the largest holders 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 low geological and commercial development risk, low average decline rates and very long producing lives. The application of technology to unlock the huge resource potential of these plays typically results in continuous increases in production and reserves and decreases in costs over multiple decades of resource play life. 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, pre-tax cash flow, cash flow from continuing operations, operating earnings from continuing operations 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 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.

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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 within the meaning of the “safe harbour” provisions of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements in this news release include, but are not limited to: future economic and operating performance (including per share growth and increase in net asset value); anticipated life of proved reserves; anticipated Unbooked Resource Potential; anticipated conversion of Unbooked Resource Potential to proved reserves; estimates of the company’s Total Resource Portfolio; anticipated growth and success of resource plays and the expected characteristics of resource plays; anticipated total resource life, including total natural gas resource life and total oil and NGLs resource life; planned divestitures of conventional Canadian properties, the potential structure of such transactions and the potential monetization of such assets; planned sale of interests in the Gulf of Mexico and Ecuador and the timing of such potential transactions; 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 EnCana’s ability to participate in commodity price upside; the anticipated steps to implement the proposed two-for-one share split and the impact of such a split; anticipated purchases pursuant to the Normal Course Issuer Bid; estimated reserve life indices; potential demand for gas; anticipated production in 2005 and beyond; anticipated drilling; potential capital expenditures and investment; potential oil, natural gas and NGLs sales in 2005 and beyond; anticipated ability to meet production, operating cost and sales guidance targets; anticipated costs; anticipated prices for natural gas; potential sale of the company’s NGLs 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 oil and gas prices; 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, including Ecuador; 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 EnCana does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise. The forward-looking statements contained in this news release are expressly qualified by this cautionary statement.

Further information on EnCana Corporation is available on the company’s Web site, www.encana.com, or by contacting:

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10

Interim Consolidated Financial Statements
(unaudited)
For the period ended March 31, 2005

EnCana Corporation

U.S. DOLLARS

Interim Report
For the period ended March 31, 2005
 
EnCana Corporation
 
CONSOLIDATED STATEMENT OF EARNINGS (unaudited)
 

CONSOLIDATED STATEMENT OF RETAINED EARNINGS (unaudited)

See accompanying Notes to Consolidated Financial Statements.

12

Interim Report
For the period ended March 31, 2005
 
EnCana Corporation
 
CONSOLIDATED BALANCE SHEET (unaudited)
 

See accompanying Notes to Consolidated Financial Statements.

13

Interim Report
For the period ended March 31, 2005
 
EnCana Corporation
 
CONSOLIDATED STATEMENT OF CASH FLOWS (unaudited)
 

See accompanying Notes to Consolidated Financial Statements.

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Interim Report
For the period ended March 31, 2005
 
EnCana Corporation
 
Notes to Consolidated Financial Statements (unaudited)
(All amounts in $ millions unless otherwise specified)
 

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, 2004. 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, 2004.

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

Midstream & Market Optimization purchases substantially all of the Company’s North American Upstream production. 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 3.

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Interim Report
For the period ended March 31, 2005
 
EnCana Corporation
 
Notes to Consolidated Financial Statements (unaudited)
(All amounts in $ millions unless otherwise specified)
 

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

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Interim Report
For the period ended March 31, 2005
 
EnCana Corporation
 
Notes to Consolidated Financial Statements (unaudited)
(All amounts in $ millions unless otherwise specified)
 

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

17

Interim Report
For the period ended March 31, 2005
 
EnCana Corporation
 
Notes to Consolidated Financial Statements (unaudited)
(All amounts in $ millions unless otherwise specified)
 

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

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Interim Report
For the period ended March 31, 2005
 
EnCana Corporation
 
Notes to Consolidated Financial Statements (unaudited)
(All amounts in $ millions unless otherwise specified)
 

Capital Expenditures (Continuing Operations)

In addition to the capital expenditures, during 2005, EnCana divested of mature conventional oil and natural gas assets and other property, plant and equipment for proceeds of $53 million (2004 - $25 million).

Property, Plant and Equipment and Total Assets

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Interim Report
For the period ended March 31, 2005
 
EnCana Corporation
 
Notes to Consolidated Financial Statements (unaudited)
(All amounts in $ millions unless otherwise specified)
 

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 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.

On December 1, 2004, the Company completed the sale of its 100 percent interest in EnCana (U.K.) Limited for net cash consideration of approximately $2.1 billion. EnCana’s U.K. operations included crude oil and natural gas interests in the U.K. central North Sea including the Buzzard, Scott and Telford oil fields, as well as other satellite discoveries and exploration licenses. A gain on sale of approximately $1.4 billion was recorded. Accordingly, these operations have been accounted for as discontinued operations.

Consolidated Statement of Earnings

The following table presents the effect of the discontinued operations in the Consolidated Statement of Earnings:

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Interim Report
For the period ended March 31, 2005
 
EnCana Corporation
 
Notes to Consolidated Financial Statements (unaudited)
(All amounts in $ millions unless otherwise specified)
 

Consolidated Balance Sheet

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