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GeoSouthern Energy Corporation Manda Presentation – Devon Energy Corp

Devon Energy Corp · Nov 20, 2013 · 22 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. GeoSouthern Energy Corporation Manda Presentation – Devon Energy Corp – slide 1
    The New Devon November 20, 2013
  2. GeoSouthern Energy Corporation Manda Presentation – Devon Energy Corp – slide 2
    I. Todays Transaction John Richels, President & Chief Executive Officer II. Asset Overview Dave Hager, Chief Operating Officer III. The New Devon John Richels, President & Chief Executive Officer
  3. GeoSouthern Energy Corporation Manda Presentation – Devon Energy Corp – slide 3
    Devon Enters Eagle Ford Play Transaction Overview Devon acquires GeoSoutherns assets in the Eagle Ford Low-risk development acreage Significant current production (53 MBOED) Risked resource: 400 MMBOE Purchase price: 6 billion…
  4. GeoSouthern Energy Corporation Manda Presentation – Devon Energy Corp – slide 4
    Favorable Transaction Compared to Eagle Ford Players EV / EBITDA EV / EBITDA 2014e 2015e 5.8x 4.7x 5.6x 4.4x 4.1x 4.1x 4.6x 4.3x 4.4x 4.0x 3.4x 2.5x Peer Peer Peer Peer Peer Peer Peer Peer Peer Peer Acquisition…
  5. GeoSouthern Energy Corporation Manda Presentation – Devon Energy Corp – slide 5
    Strategic Rationale Entry into another world-class, light oil play Best part of best play in North America Derisked and ready for full development Visible oil growth in low-risk, repeatable play Significantly increases…
  6. GeoSouthern Energy Corporation Manda Presentation – Devon Energy Corp – slide 6
    Immediately Accretive Transaction Expected accretion in 2014: Debt-adjusted cash flow per share: 5% (Double-digit growth thereafter) Pre-tax cash margin per BOE: 10% - 15% Earnings per share: 20% Note: See appendix for…
  7. GeoSouthern Energy Corporation Manda Presentation – Devon Energy Corp – slide 7
    Defining the Eagle Ford Industry Well Results (6:1) 30-Day IP at 6:1 OKLAHOMA (BOED) Fayette TEXAS Gonzales Lavaca Wilson BOED DeWitt Frio Karnes Zavala Atascosa Oil McMullen LaSalle Live Oak Dimmitt…
  8. GeoSouthern Energy Corporation Manda Presentation – Devon Energy Corp – slide 8
    Defining the Eagle Ford Industry Well Results (20:1) 30-Day IP OKLAHOMA at 20:1 Fayette (BOED) TEXAS Gonzales Lavaca Wilson BOED DeWitt Frio Karnes Zavala Atascosa Oil McMullen LaSalle Live Oak Dimmitt…
  9. GeoSouthern Energy Corporation Manda Presentation – Devon Energy Corp – slide 9
    Devons Eagle Ford Position World-Class Oil Asset Located in best part of Eagle Ford OKLAHOMA Net acreage: 82,000 TEXAS Working interest: 50% Net revenue interest: 38% Gonzales Current net production: 53 MBOED Lavaca…
  10. GeoSouthern Energy Corporation Manda Presentation – Devon Energy Corp – slide 10
    Best IP Rates in Play Eagle Ford Wells Drilled Since 2011 Normalized 30Day IP Average at 6:1 1,055 1,200 947 943 885 865 863 860 1,000 832 787 747 800 638 620 588 566 553 551 532 BOED…
  11. GeoSouthern Energy Corporation Manda Presentation – Devon Energy Corp – slide 11
    Consistently Strong Results Eagle Ford Wells Drilled Since 2011 30-Day IP Distribution Devon Wells % of Devons Wells (Covers 6,700+ wells since 2011) Top Quartile (830 BOED) 154 75% Second Quartile (560 830 BOED) 34 17% Third…
  12. GeoSouthern Energy Corporation Manda Presentation – Devon Energy Corp – slide 12
    Devons Low-Risk Inventory OKLAHOMA TEXAS Devon Existing Undrilled Acreage Producer Infill Derisked and ready for development Risked resource: 400 MMBOE DeWitt 80% resides in DeWitt County Risked undrilled…
  13. GeoSouthern Energy Corporation Manda Presentation – Devon Energy Corp – slide 13
    2014 Development Plan Eagle Ford Capital Program 2014 Eagle Ford development 2014 Program Type Curves Self-funding program DeWitt Lavaca Capital: 1.3 billion Working interest / NRI: 50% / 38% 50% / 38% Activity: 230 wells Drill…
  14. GeoSouthern Energy Corporation Manda Presentation – Devon Energy Corp – slide 14
    Eagle Ford Production Growth 2014 and Beyond 2014e Production Outlook Multi-Year Production Outlook (MBOED) (MBOED) 135 - 145 70 - 75 53 53 Q4 2013e 2014e Q4 2013e 2017e Immediately self-funding in 2014 Production CAGR…
  15. GeoSouthern Energy Corporation Manda Presentation – Devon Energy Corp – slide 15
    Eagle Ford Upside Unvalued Potential Improved flow rates and recovery factors Refined completion techniques (Stimulation design) Production optimization Lavaca County Enhanced recovery technologies Well cost reductions…
  16. GeoSouthern Energy Corporation Manda Presentation – Devon Energy Corp – slide 16
    Why This Fits Accretive to debt-adjusted metrics and EPS New world-class core oil asset Low-risk, high-growth opportunity Increases high-margin oil weighting Upside from continuous operational improvement NYSE: DVN…
  17. GeoSouthern Energy Corporation Manda Presentation – Devon Energy Corp – slide 17
    The New Devon Increased Focus on Core Assets Devons Core & Emerging Assets Human and financial capital focused on core assets Harvest non-core assets including Heavy Oil Core Emerging Canadian conventional Non-core U.S.…
  18. GeoSouthern Energy Corporation Manda Presentation – Devon Energy Corp – slide 18
    The New Devon A Foundation for Growth Net Production Q4 2013e Oil Gas NGLs BOE (MBOD) (MMCFD) (MBLD) (MBOED) Devon Today 172 2,345 127 690 Eagle Ford 30 72 11 53 Less: Assets to be Monetized (16) (700) (17) (150) The New…
  19. GeoSouthern Energy Corporation Manda Presentation – Devon Energy Corp – slide 19
    The New Devon Outlook Focused capital program: Eagle Ford, Permian, and Heavy Oil Living within cash flow Remaining drilling carries: 1.5 billion Midstream capital relief Deliver significant multi-year same-store-sales…
  20. GeoSouthern Energy Corporation Manda Presentation – Devon Energy Corp – slide 20
    The New Devon Significant Oil Weighting Q3 2013 Oil Production (MBOD) Pro Forma New Devon(1) vs. N.A. Onshore Peers 250 200 150 100 50 0 EOG CHK CLR PXD WLL CXO SD NFX XEC MEG OAS ECA LPI RRC FANG Devon U.S. Devon…
  21. GeoSouthern Energy Corporation Manda Presentation – Devon Energy Corp – slide 21
    The Transformation Begins Key Takeaways New world-class, light oil core asset Immediately accretive Derisked and ready for full development Self-funding development, generating significant free cash flow Focus human and…
  22. GeoSouthern Energy Corporation Manda Presentation – Devon Energy Corp – slide 22
    Long-Term Outlook Economic Assumptions Devons Eagle Ford forecast through 2017 assumes: WTI price of 90 per barrel (LLS 4 premium) Average Henry Hub price of 4 per MCF NGL benchmark price: 30% of WTI Current cost environment…

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