Skip to main content IPAA OGIS – Devon Energy Corp Investor Presentation | Shale Experts
Loading...
Pm

IPAA OGIS – Devon Energy Corp

Devon Energy Corp · Apr 16, 2013 · 47 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. IPAA OGIS – Devon Energy Corp – slide 1
    IPAA Oil & Gas Investment Symposium April 16, 2013
  2. IPAA OGIS – Devon Energy Corp – slide 2
    Devon Today Horn River Oil Proved reserves: 3.0 billion BOE Liquids-Rich (47% liquids) Jackfish Dry Gas Deep Basin Pike Q4 2012 production: 679 MBOED Ferrier Corridor Production mix: 23% oil 16% NGLs Powder River 61% natural…
  3. IPAA OGIS – Devon Energy Corp – slide 3
    Progress Report 2012 Highlights Oil production increased 20% Jackfish oil production up 37% Permian Basin oil production up 31% Closed 4 billion of joint ventures (Cash payments of 1.3 billion and drilling carries of 2.6…
  4. IPAA OGIS – Devon Energy Corp – slide 4
    Devons Strengths Disciplined focus on per share results Deep inventory of development opportunities Strong, highly-visible oil growth Significant positions in emerging oil plays Superior financial strength and…
  5. IPAA OGIS – Devon Energy Corp – slide 5
    Financial Strength & Flexibility Cash and short-term investments: 7.0 billion (As of 2/20/13) Net debt-to-cap ratio: 18% Strong investment grade ratings Fitch: BBB+ Moodys: Baa1 S&P: BBB+ Provides flexibility to invest in…
  6. IPAA OGIS – Devon Energy Corp – slide 6
    Attractively Hedged Oil Hedges Q1 2013: 76 MBOPD with a protected price of 97 per barrel (50% of forecasted oil production) FY2013: 115 MBOPD with a protected price of 96 per barrel (70% of forecasted oil production) Natural Gas…
  7. IPAA OGIS – Devon Energy Corp – slide 7
    Capital Allocation Criteria E&P capital projects Balancing resource capture and development Debt reduction Reduced net debt by 34% since 2003 (Represents 2.4 billion reduction in net debt) Share repurchases Reduced net share…
  8. IPAA OGIS – Devon Energy Corp – slide 8
    E&P Capital Allocation 2012 Capital Expenditures 2013 Capital Budget 17% 3% Development 7% activity 8% Exploration activity Leasehold capture 90% 75% 7.2 Billion 4.9 - 5.3 Billion 100% of capital allocated towards…
  9. IPAA OGIS – Devon Energy Corp – slide 9
    2013 Capital Program Delivering Strong Oil Growth Total oil production growth rate: mid-teens U.S. growth rate: 40% Concentrate capital in oil-driven development projects Accelerate drilling in Permian Basin Reduce activity in…
  10. IPAA OGIS – Devon Energy Corp – slide 10
    Significant Oil Production Growth North American Onshore Production Data in MBOPD 169 146 123 106 101 90 75 66 2006 2007 2008 2009 2010 2011 2012 2013e NYSE: DVN www.devonenergy.com Slide 11
  11. IPAA OGIS – Devon Energy Corp – slide 11
    Permian Basin Overview Oil Opportunities NEW MEXICO OKLAHOMA Net risked resource: 2.8 BBOE Risked locations: 8,000 New Mexico Texas TEXAS Eastern Northwestern Net acreage: 1.3 million basin-wide Midland Shelf Shelf…
  12. IPAA OGIS – Devon Energy Corp – slide 12
    Permian Basin Oil Development Projects Development Overview NW Shelf Low-risk, high-margin oil plays New Mexico Texas Gaines Dawson Multi-year drilling inventory Wolfberry 20 operated rigs Lea Eddy Bone Spring/Delaware…
  13. IPAA OGIS – Devon Energy Corp – slide 13
    Devons Thermal Oil Position SAGD Development Field characteristics Jackfish Low F&D Jackfish 2 Flat production profile Long reserve life 20 years Jackfish 3 Jackfish 1 Top-tier operating performance Scheduled plant maintenance…
  14. IPAA OGIS – Devon Energy Corp – slide 14
    Jackfish Performance 1 Performance Comparison to Industry SAGD Projects 63 Months After Project Startup Cumulative Steam Oil Ratio (SOR) Production Per Well (BOPD) 3.56 890 2.70 370 Industry Industry Average…
  15. IPAA OGIS – Devon Energy Corp – slide 15
    Long-Term Production Outlook Thermal Oil Net Barrels Per Day 175,000 Net Risked Resource: 1.4 BBO 150,000 48,900 Q4 2012 2020 NYSE: DVN www.devonenergy.com Slide 16
  16. IPAA OGIS – Devon Energy Corp – slide 16
    Canadian Oil Differential Outlook Increased refinery capacity for heavier crudes 340 MBOPD of incremental demand by 2H 2013 (Detroit & Whiting) Significant pipeline expansions Seaway: Currently at 400 MBOPD (850 MBOPD by Q1…
  17. IPAA OGIS – Devon Energy Corp – slide 17
    Cana Woodford Shale Liquids-Rich Gas Development Net risked resource: 11.4 TCFE OKLAHOMA Dewey Blaine Risked locations: 5,400 TEXAS Net acreage: 260,000 Low average royalty burden: 21% Custer Q4 2012 net production: 326…
  18. IPAA OGIS – Devon Energy Corp – slide 18
    Barnett Shale Liquids-Rich Gas Development Net risked resource: 14 TCFE Jack Wise Denton Risked locations: 5,000 Denton Bridgeport Plant Net acreage: 620,000 Low average royalty burden: 18% Palo Pinto Parker DRY GAS Q4 2012 net…
  19. IPAA OGIS – Devon Energy Corp – slide 19
    Enhanced By Midstream Operations Key Midstream Assets Ownership in 16,000 miles of pipeline United States: 6,500 miles Access Pipeline (Thermal Oil) Jackfish 50% WI Canada: 9,500 miles Edmonton Capacity net to Devon: Blended…
  20. IPAA OGIS – Devon Energy Corp – slide 20
    Mississippian Light-Oil Exploration Net risked resource: 800 MMBOE Kingman Sedgwick Risked locations: 3,000 Barber Sumner Cowley Net acreage: 600,000 Harper (450,000 net acres outside of Sinopec JV) Kansas Oklahoma…
  21. IPAA OGIS – Devon Energy Corp – slide 21
    Eastern Permian Basin Oil Exploration Projects Exploration Overview Potential, high-impact resource plays (Unrisked resource: 3 BBOE net to Devon) Gaines Dawson Borden Scurry Fisher 2013 plans: Drill 140 wells Joint venture…
  22. IPAA OGIS – Devon Energy Corp – slide 22
    Joint Venture Rationale Objective: Utilize partners in new ventures exploration Improves capital efficiency Accelerates de-risking and commercialization Mitigates exploration risk Flexibility to generate new prospects…
  23. IPAA OGIS – Devon Energy Corp – slide 23
    Devons Valuation Enterprise Value to 2013e EBITDA Multiple 8.3 6.6 North American Pure Play Average: 6.7 6.1 6.1 5.8 5.7 Total Peer Group Average: 5.1 4.8 4.6 4.6 4.3 4.2 4.0 3.9 3.4 3.0 A B C D E F G DVN H I J K L M…
  24. IPAA OGIS – Devon Energy Corp – slide 24
    Potential To Unlock Value Considering several options including: Midstream MLP Joint ventures Asset sales NYSE: DVN www.devonenergy.com Slide 25
  25. IPAA OGIS – Devon Energy Corp – slide 25
    Why Own Devon Disciplined focus on per share results Deep inventory of development opportunities World-class SAGD position Strong Permian Basin position Dominant positions in Barnett & Cana Shale plays Strong, highly-visible…
  26. IPAA OGIS – Devon Energy Corp – slide 26
    Thank You.
  27. IPAA OGIS – Devon Energy Corp – slide 27
    Appendix
  28. IPAA OGIS – Devon Energy Corp – slide 28
    Oil Hedges Oil Hedges Q1 2013 45 MBOPD collared: 91 floor and 116 ceiling 31 MBOPD swapped at 104 10 MBOPD of call options sold at 120 FY 2013 60 MBOPD collared: 90 floor and 113 ceiling 55 MBOPD swapped at 101 10 MBOPD of…
  29. IPAA OGIS – Devon Energy Corp – slide 29
    Natural Gas Hedges Natural Gas Hedges Q1 2013 667 MMCFD collared: 3.48 floor and 4.21 ceiling 560 MMCFD swapped at 4.18 FY 2013 577 MMCFD collared: 3.52 floor and 4.22 ceiling 764 MMCFD swapped at 4.14 FY 2014 506 MMCFD…
  30. IPAA OGIS – Devon Energy Corp – slide 30
    Growing the Resource Base New Ventures Exploration Sinopec Joint Venture 2.5 billion transaction (900 million cash and 1.6 billion drilling carry) Sinopec receives 33% of Devons interest Net acreage in joint venture: 1.5…
  31. IPAA OGIS – Devon Energy Corp – slide 31
    Sinopec Joint Venture Assets Five Oil and Liquids-Rich Plays Mississippian Rockies Oil Utica Ohio Tuscaloosa Michigan JV Acreage 230,000 323,000 235,000 298,000 400,000 (Net to DVN) (153,000 net) (215,000 net) (157,000 net) (199,000…
  32. IPAA OGIS – Devon Energy Corp – slide 32
    Canadian Oil Sands Industry Overview Fort Hills Kearl Horizon Lake Northern Lights Project Type Joslyn Creek Muskeg River In-Situ Projects Albian Syncrude Firebag Mining Projects Dover Jackpine Peace River MacKay River…
  33. IPAA OGIS – Devon Energy Corp – slide 33
    Pike Project Overview Pike leasehold Jackfish Pike 1A, 1B & 1C 50% operated working interest Focus Area Similar reservoir characteristics to Jackfish Up to five 35 MBOPD SAGD development phases Pike Project Area Potential…
  34. IPAA OGIS – Devon Energy Corp – slide 34
    Pike Stratigraphic Drilling Confirms High-Quality Reservoir Pike Type Log Pike Jackfish Depth (Ft, TVD) 1,400 1,560 1,320 1,380 Wabiskaw Pay Thickness 49 - 144 49 164 (Ft) McMurray Porosity (%) 30 35 30 - 33 Sand McMurray B…
  35. IPAA OGIS – Devon Energy Corp – slide 35
    Solvents Potential Benefits Increases production rates per well and plant production capacity Lower steam-oil ratios (15% - 50% decrease) Reduces plant emissions Risks Access to solvent Solvent recovery Status Update 1st…
  36. IPAA OGIS – Devon Energy Corp – slide 36
    Small-Scale SAGD Reusable SAGD facilities designed to exploit smaller accumulations of bitumen (4 prospects identified) Targeted resource: 35-70 MMBO per project Peak production rates up to 10 MBOPD per project Less upfront…
  37. IPAA OGIS – Devon Energy Corp – slide 37
    Heavy Oil Midstream Infrastructure Access Pipeline JACKFISH & PIKE 200 mile dual pipeline from Edmonton to Devons thermal acreage Devon ownership: 50% Capacity net to Devon Blended bitumen: 105 MBOPD (170 MBOPD after expansion…
  38. IPAA OGIS – Devon Energy Corp – slide 38
    Lloydminster Oil Development Iron River Net risked resource: 60 MMBOE Risked locations: 1,000 Manatokan Net acreage: 700,000 Low-risk development End Lake Strong operating margins Lloydminster Q4 2012 net production: 34…
  39. IPAA OGIS – Devon Energy Corp – slide 39
    Ferrier Oil & Liquids Opportunities Net acreage: 240,000 Multiple target formations: Cardium oil Viking Glauconite Other lower cretaceous zones Constructing gas processing facility Inlet capacity: 100 MMcfd Liquids: 13,000…
  40. IPAA OGIS – Devon Energy Corp – slide 40
    Granite Wash Oil & Liquids-Rich Development Net risked resource: 200 MMBOE Risked locations: 350 net wells Net acreage: 63,000 Legacy land position held by production Hemphill Low average royalty burden: 19% Q4 2012 net…
  41. IPAA OGIS – Devon Energy Corp – slide 41
    East Texas Unconventional Haynesville / Bossier Shale Marion Net prospective acres: 110,000 Louisiana Texas Greater Carthage Harrison Bossier Significant portion of acreage held by Caddo production or fee Rusk Low…
  42. IPAA OGIS – Devon Energy Corp – slide 42
    Carthage Texas Camp Cass Net acreage: 194,000 Marion Upshur Waskom Gregg Harrison Working interest: 86% Bethany Carthage Field Panola Low average royalty burden: 9% Rusk Stockman Shelby Q4 2012 net production: 177…
  43. IPAA OGIS – Devon Energy Corp – slide 43
    Groesbeck Nan-Su-Gail Texas Net acreage: 170,000 Freestone Personville Working interest: 72% Limestone Low average royalty burden: 14% Dew Oaks Leon Q4 2012 net production: 63 MMCFED Bald Prairie Robertson OK TX…
  44. IPAA OGIS – Devon Energy Corp – slide 44
    Horn River Basin EOG Net risked resource: 7 TCFE 94-O-15 94-O-16 Risked locations: 1,500 Quicksilver Stone Mtn. Net acreage: 178,000 94-O-10 94-O-9 Natural gas shale play EnCana/Apache Thickest section of the basin 94-O-7…
  45. IPAA OGIS – Devon Energy Corp – slide 45
    Arkoma Woodford Shale Net risked resource: 2.4 TCFE Risked locations: 2,000 Hughes Pittsburg Net acreage: 39,000 Low cost of entry: 400/acre Low average royalty burden: 20% Acreage held by production OK Oklahoma City…
  46. IPAA OGIS – Devon Energy Corp – slide 46
    Washakie Net acreage: 162,000 Working interest: 76% Q4 2012 net production: 114 MMCFED Low-risk, tight sand gas WY Washakie UT CO NYSE: DVN www.devonenergy.com Slide 47
  47. IPAA OGIS – Devon Energy Corp – slide 47
    Repositioning Proceeds Billions Pre-Tax Proceeds Closing Maersk - Deepwater GOM 1.3 Q1 2010 BP Deepwater GOM 1.8 Q2 2010 Apache GOM Shelf 1.1 Q2 2010 CNOOC, CVX, BP China 0.6 Q2 & Q3 2010 BP - Azerbaijan 2.0 Q3 2010 BP -…

From the store

Browse maps, data & reports in the Shale Experts store