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Devon Energy Overview – Devon Energy Corp

Devon Energy Corp · Oct 8, 2012 · 56 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. Devon Energy Overview – Devon Energy Corp – slide 1
    Devon Energy Overview: The Company, Exploration, and Technology Herb Martin, Vice President Strategic Geoscience Tulsa Geological Society September 4, 2012
  2. Devon Energy Overview – Devon Energy Corp – slide 2
    Devon History Founded as a private company in 1971 Became a public company in 1988 Currently listed on the New York Stock Exchange under the ticker symbol DVN Has grown from 185 employees in 1981 to more than 5,000 employees…
  3. Devon Energy Overview – Devon Energy Corp – slide 3
    Top Oklahoma companies Enterprise value US, Billions Note: Enterprise value August 2012. NYSE: DVN www.devonenergy.com
  4. Devon Energy Overview – Devon Energy Corp – slide 4
    Devon today Horn River Existing Proved reserves: 3.0 billion BOE operations (42% liquids) Jackfish New areas covered Deep Basin Pike by Sinopec JV Q2 2012 production: 679 MBOED Canadian Oil Potential (37% liquids) Sales…
  5. Devon Energy Overview – Devon Energy Corp – slide 5
    Employment centers Oklahoma City: Corporate Headquarters CALGARY 1,648 employees Calgary, Alberta: 1,004 employees Houston: 495 employees Field Offices: OKLAHOMA CITY 2,222 employees Total: 5400 employees HOUSTON…
  6. Devon Energy Overview – Devon Energy Corp – slide 6
    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…
  7. Devon Energy Overview – Devon Energy Corp – slide 7
    Track Record of Success North American Onshore Historical Performance Production Growth LOE per BOE (MMBOE) 240 (/BOE) 220 223 207 8.06 7.71 7.32 6.87 7.32 6.54 182 168 2006 2007 2008 2009 2010 2011 2006 2007 2008 2009…
  8. Devon Energy Overview – Devon Energy Corp – slide 8
    Significant Oil Production Growth North American Onshore Production Data in MBOPD 148.6 122.5 105.9 100.9 89.7 74.9 65.7 2006 2007 2008 2009 2010 2011 Q2-2012 NYSE: DVN www.devonenergy.com
  9. Devon Energy Overview – Devon Energy Corp – slide 9
    Devons Risked Resource Base High-Quality and Balanced 16.2 BBOE Risked Resource (31.8 BBOE Unrisked) Risked Resource By Product (BBOE) 19% Oil (29%) 4.7 NGLs (19%) 3.1 Gas (52%) 8.4 81% Total 16.2 Proved Reserves…
  10. Devon Energy Overview – Devon Energy Corp – slide 10
    Resource By Asset Strong Foundation for Growth Data in BBOE Additional Unrisked Proved Total Risked Resource Reserves + Risked = Resources Potential Permian Basin 7.6 0.2 2.6 2.8 Barnett Shale 4.3 1.2 1.3 2.5 Cana Woodford…
  11. Devon Energy Overview – Devon Energy Corp – slide 11
    Portfolio Management Goal: Optimize depth, diversity, and quality of drilling inventory Harvesting mature and lower return assets (Since 2002 divested 17 billion of assets) New leasehold capture (Since 2009 invested 4 billion…
  12. Devon Energy Overview – Devon Energy Corp – slide 12
    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…
  13. Devon Energy Overview – Devon Energy Corp – slide 13
    Exploration & Exploitation Sept 4, 2012 v.03 14jun2011
  14. Devon Energy Overview – Devon Energy Corp – slide 14
    Devon Today 2012 Exploration Horn River Existing operations Jackfish New areas covered Deep Basin Pike by Sinopec JV Projected 2012 exploration spending Canadian Oil Potential Land, G & G, Testing 1,600 Breakdown Powder…
  15. Devon Energy Overview – Devon Energy Corp – slide 15
    Permian Basin Overview Net acres: 1.5 million New Mexico NEW MEXICO OKLAHOMA Texas Net unrisked resource: 7.6 BBOE Eastern Net risked resource: 2.8 BBOE Northwestern TEXAS Midland Shelf Shelf Basin Risked locations:…
  16. Devon Energy Overview – Devon Energy Corp – slide 16
    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 Lea 16 operated rigs Eddy Bone Spring/Delaware…
  17. Devon Energy Overview – Devon Energy Corp – slide 17
    Cana Woodford Shale Overview Estimated play resource in-place: 50- 220 BCFE per square mile Oil and liquids-rich gas play Low above ground risk (markets, topography, regulatory environment) Industry rigs running: 46…
  18. Devon Energy Overview – Devon Energy Corp – slide 18
    Cana Woodford Shale Liquids-Rich Gas Development Net risked resource: 11.4 TCFE OKLAHOMA Dewey Blaine Risked locations: 5,400 TEXAS Net acreage: 244,000 Low average royalty burden: 21% Custer Q2 2012 net production: 280…
  19. Devon Energy Overview – Devon Energy Corp – slide 19
    Granite Wash Oil & Liquids-Rich Development Net risked resource: 200 MMBOE Risked locations: 350 net wells Net acreage: 63,600 Legacy land position held by production Hemphill Low average royalty burden: 19% Q2 2012 net…
  20. Devon Energy Overview – Devon Energy Corp – slide 20
    Barnett Shale Liquids-Rich Gas Development Net risked resource: 14.8 TCFE Jack Wise Denton Risked locations: 5,000 Denton Bridgeport Plant Net acreage: 624,000 Low average royalty burden: 18% Palo Pinto Parker DRY GAS Q2 2012…
  21. Devon Energy Overview – Devon Energy Corp – slide 21
    Devons Thermal Oil Position SAGD Development Jackfish Field characteristics Jackfish 2 Low F&D Flat production profile Jackfish 3 Long reserve life 20 years Jackfish Top-tier operating performance Q2 2012 net production: 33…
  22. Devon Energy Overview – Devon Energy Corp – slide 22
    New Ventures/Exploration Process Unlocking Significant Potential Methodical exploration Unrisked Resource (BBOE) Initial assessment New ventures 8.4 Oil in-place (Sinopec JV & Cline Shale) Permeability Other U.S. exploration…
  23. Devon Energy Overview – Devon Energy Corp – slide 23
    Permian Basin Oil Exploration Projects Exploration Overview Potential, high-impact resource plays (Unrisked resource: 3 BBOE net to Devon) Gaines Dawson Borden Scurry Fisher 2012 plans: Drill 40 wells 4 operated rigs Howard…
  24. Devon Energy Overview – Devon Energy Corp – slide 24
    Cline Shale Stratigraphic Section Organic-rich shale Mixed silt and sand interbeds Gross thickness: 200 - 550 Total organic content: 1 - 8% Cisco Canyon Cline Pennsylvanian Frac barriers above and below NYSE: DVN…
  25. Devon Energy Overview – Devon Energy Corp – slide 25
    Wolfcamp Shale Emerging Opportunity Net acres: 92,000 (Midland) NEW MEXICO OKLAHOMA 240,000 (Delaware) Unrisked resource: 1.3 BBOE Eastern TEXAS Northwestern Shelf 2012 capital: 225 million Shelf 2012 plans: Drill 35 wells…
  26. Devon Energy Overview – Devon Energy Corp – slide 26
    Mississippian Light-Oil Exploration Sedgwick Kingman Net acreage: 545,000 (400,000 net acres outside of Sinopec JV) Barber Sumner Cowley Harper Kansas High-margin, exploration play Oklahoma Kay Alfalfa Grant Early…
  27. Devon Energy Overview – Devon Energy Corp – slide 27
    Mississippian Stratigraphic Section Permian Multiple prolific lithologies Virgilian High porosity chert Missourian Pennsylvanian Desmoinesian Siliceous limestone with medium porosity Atokan Morrowan Chesterian Fractured…
  28. Devon Energy Overview – Devon Energy Corp – slide 28
    Ohio Utica Overview DVN (net) JV (gross) Devon Acreage Net acres: 157,000 235,000 NY MI Portage Unrisked res. 640 950 Medina MMBOE MMBOE Summit PA IN Mahoning OHIO 2012 capital: 26 MM 100 MM WV Ashland Richland Wayne…
  29. Devon Energy Overview – Devon Energy Corp – slide 29
    Ohio Utica Stratigraphic Section Queenston Hybrid unconventional resource Lithology consists of laminated limestone- Utica mudstone In-situ fractures Ordovician Point Pleasant Trenton Frac barriers above and below (no wet…
  30. Devon Energy Overview – Devon Energy Corp – slide 30
    Ohio Utica Permeability Analysis Fixed Ion Beam Scanned Electron Microscope FIBSEM analysis enables imaging of (FIBSEM Analysis) connected pores Significant size pores present Indicates potential to move liquids Top-tier…
  31. Devon Energy Overview – Devon Energy Corp – slide 31
    Rockies Oil Overview DVN (net) JV (gross) Sheridan Campbell Crook Net acres: 213,000 320,000 PR Basin Net Acreage: WYOMING Gillette DVN: 146,000 Unrisked res. 890 1,330 JV: 220,000 MMBOE MMBOE Johnson Weston South Dakota UTAH…
  32. Devon Energy Overview – Devon Energy Corp – slide 32
    Rockies Oil Stratigraphic Section Powder River Basin Pierre Shale Primary targets: Niobrara and Mowry High total organic content in Mowry and Niobrara Sharon Sprgs Mbr Niobrara A Secondary targets: Turner, Muddy, Dakota and…
  33. Devon Energy Overview – Devon Energy Corp – slide 33
    Tuscaloosa Overview DVN (net) JV (gross) Net acres: 190,000 285,000 ARKANSAS MISSISSIPPI Unrisked res. 1,150 1,730 ALABAMA MMBOE MMBOE 2012 capital: 44 MM 167 MM LOUISIANA 2011/12 plans: Drill 10 wells Wilkinson Amite Pike…
  34. Devon Energy Overview – Devon Energy Corp – slide 34
    Tuscaloosa Stratigraphic Section Navarro Highly laminated lithology Taylor Austin Brittle intervals of sand, siltstone and limestone Eagle Ford Eagle Tuscaloosa Ford Group Significant fracture system Cretaceous…
  35. Devon Energy Overview – Devon Energy Corp – slide 35
    Canada Exploration Oil & Liquids Opportunities Net prospective acres: 4 million Net unrisked resource: 2.2 BBOE 2012 plans: Drill 90 wells Normandville Montney (light oil) Testing 10 new play types including: Deep Basin…
  36. Devon Energy Overview – Devon Energy Corp – slide 36
    Other U.S. Exploration Oil & Liquids Opportunities Net prospective acres: 1.3 million Net unrisked resource: 5.8 BBOE Focus on oil opportunities Targeting tight carbonates/clastics and shale Currently evaluating 16…
  37. Devon Energy Overview – Devon Energy Corp – slide 37
    E&P Strategic Services at Devon Strategic Geosciences Group Sept 4, 2012 NYSE: DVN www.devonenergy.com v.03 14jun2011
  38. Devon Energy Overview – Devon Energy Corp – slide 38
    E&P Strategic Services 2012 E&P Technology (May 2012) NYSE: DVN www.devonenergy.com
  39. Devon Energy Overview – Devon Energy Corp – slide 39
    Competencies and Roles Exploration Strategy & Evaluation (ESE) Geophysical Services (GS) Technical/Peer review Acquisition Play Evaluation & Ranking Processing Development/Support for Evaluation Microseismic process/tool Data…
  40. Devon Energy Overview – Devon Energy Corp – slide 40
    Exploration Strategy and Evaluation
  41. Devon Energy Overview – Devon Energy Corp – slide 41
    Exploration Strategy Evaluation Team (ESE): Roles and Responsibilities ESE Team is responsible for unconventional play characterization and comparative play analysis across the company. Analysis is used for play ranking and as an…
  42. Devon Energy Overview – Devon Energy Corp – slide 42
    Integrated Geoscience June 2012 NYSE: DVN www.devonenergy.com
  43. Devon Energy Overview – Devon Energy Corp – slide 43
    Integrated Workflow and Knowledge Experts Technology Experts Core Description Stratigraphy /Sedimentology Structure and Fractures Seismic Reservoir Characterization Reservoir / Basin Modeling Petrography Geochemistry…
  44. Devon Energy Overview – Devon Energy Corp – slide 44
    Cana Woodford Example Facies Control on Production 0.001000 EURs drop significantly (10%) if 0.000900 lateral lands as low as 5 feet into thinly interlayered beds that 0.000800 contain bioturbated intervals Non-bioturbated…
  45. Devon Energy Overview – Devon Energy Corp – slide 45
    Cana Woodford Example Natural Fracture Production Conduits Bed-confined natural fractures likely conduits for liquids production Increase oil storage Large enough to move oil through Vertical paths of weakness for fracing Pores…
  46. Devon Energy Overview – Devon Energy Corp – slide 46
    Permian Basin Wolfcamp Example Type Well Stratigraphic Flow Profile Most wells landed in zone 8-9 Additional potential identified in zone 11 Main Horiz. Target Potential Target 3. Stratigraphic Flow Profile NYSE: DVN…
  47. Devon Energy Overview – Devon Energy Corp – slide 47
    Geophysical Services NYSE: DVN www.devonenergy.com
  48. Devon Energy Overview – Devon Energy Corp – slide 48
    Geophysical Services (GS) What We Do Acquisition Processing Microseismic Data management Contracts and Permitting Geodetics NYSE: DVN www.devonenergy.com
  49. Devon Energy Overview – Devon Energy Corp – slide 49
    Seismic Acquisition Highlights 2012 Seismic Acquisition Projects 3D Summary 4 Completed 366 mi2 4 Active 790 mi2 5 Planning 941 mi2 4 Hold 275 mi2 Total 17 2,371 mi2 New Seismic Methods / Evaluations Regional Seismicity…
  50. Devon Energy Overview – Devon Energy Corp – slide 50
    Knowledge and Technology NYSE: DVN www.devonenergy.com
  51. Devon Energy Overview – Devon Energy Corp – slide 51
    Geoscience Knowledge & Technology Collaborate w/ Engineering Technology Knowledge management (Communities of Practice) Consortia management Data Management Training In-house Nautilus Industry Petrophysics NYSE: DVN…
  52. Devon Energy Overview – Devon Energy Corp – slide 52
    Knowledge & Technology Petrophysics Example Core to Log integration Productivity Pay zones and cutoffs Permeability Volumetrics Thickness, Net to Gross Effective porosity and fluid saturations Reserves in-Place Reservoir…
  53. Devon Energy Overview – Devon Energy Corp – slide 53
    Strategic Geoscience Putting It All Together Why Strategic Integration Essential Across Geoscience Disciplines Across E & P Answer Important Questions Early Data Gathering Which data to gather Technology Experience (what do…
  54. Devon Energy Overview – Devon Energy Corp – slide 54
    The Devon Energy Nano Imaging Center
  55. Devon Energy Overview – Devon Energy Corp – slide 55
    Devon E&P in Unconventionals Focused Strategy Leverages Experience and Expertise Takes Advantage of Unique Time in our Industry Questions NYSE: DVN www.devonenergy.com
  56. Devon Energy Overview – Devon Energy Corp – slide 56
    Thank you.

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