Encana has delivered the ‘back to winning’ strategy that was outlined in November 2013, repositioning a once extensive and multi-resource portfolio to drive growth. M&A activity has featured heavily in the turnaround story, resulting in a tighter, more focused portfolio of four key plays that will drive production and cash flow growth. The transition has not been a smooth one. Despite a multitude of moves to generate cash flow, gearing remains high at 34% as at the end of December 2016, albeit US$7.9 billion of (pre-tax) impairments since Q1 2014 played a significant role. We expect this to fall if Encana can once again deliver ambitious targets and divest the remaining non-core assets in the portfolio.