Skip to main content August 2012 Investor Presentation – Devon Energy Corp | Shale Experts
Loading...
Pm

August 2012 Investor Presentation – Devon Energy Corp

Devon Energy Corp · Aug 10, 2012 · 49 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. August 2012 Investor Presentation – Devon Energy Corp – slide 1
    Investor Presentation August 2012
  2. August 2012 Investor Presentation – Devon Energy Corp – slide 2
    NYSE: DVN www.devonenergy.com Slide 3 Devon Today Proved reserves: ?3.0 billion BOE (42% liquids) Q2 2012 production: 679 MBOED Production mix: 22% oil 15% NGLs 63% natural gas Significant midstream business 2012e operating…
  3. August 2012 Investor Presentation – Devon Energy Corp – slide 3
    Progress Report 2nd Quarter 2012 Results Highlights ? Oil production increased 26% YOY (149 MBOD) ? Closed Sinopec joint venture ? Signed joint venture agreement with Sumitomo ? Increased Mississippian position to 545,000 net acres…
  4. August 2012 Investor Presentation – Devon Energy Corp – slide 4
    NYSE: DVN www.devonenergy.com Slide 5 Devon?s Strengths Disciplined focus on per share results Deep inventory of development opportunities Strong, highly-visible oil growth Significant positions in emerging oil plays Superior…
  5. August 2012 Investor Presentation – Devon Energy Corp – slide 5
    NYSE: DVN www.devonenergy.com Slide 6 Financial Strength & Flexibility Cash and short-term investments: $7.0 billion (As of 8/1/12) Net debt-to-cap ratio: 14% Strong investment grade ratings ? Fitch: BBB+ ? Moody?s: Baa1 ? S&P:…
  6. August 2012 Investor Presentation – Devon Energy Corp – slide 6
    NYSE: DVN www.devonenergy.com Slide 7 Capital Allocation Criteria E&P capital projects ? Balancing resource capture and development (Exploration & leasehold capital: ?20% of E&P capital since 2009) Debt reduction ? Reduced net debt…
  7. August 2012 Investor Presentation – Devon Energy Corp – slide 7
    NYSE: DVN www.devonenergy.com Slide 8 Track Record of Success North American Onshore Historical Performance 240 223 168 220 207 182 2006 2007 2008 2009 2010 2011 233% 198% 269% 223% 175% 160% 2006 2007 2008 2009 2010 2011…
  8. August 2012 Investor Presentation – Devon Energy Corp – slide 8
    NYSE: DVN www.devonenergy.com Slide 9 Devon?s Recycle Ratio North America Onshore $ Per BOE Revenue (excluding hedges) $ 36.90 Cash costs(1) (12.78) Midstream capital (1.39) Cash margin per BOE $ 22.73 3-yr drilling F&D (includes…
  9. August 2012 Investor Presentation – Devon Energy Corp – slide 9
    NYSE: DVN www.devonenergy.com Slide 10 129% 124% 151% 162% 180% 177% 176% 65% Peer 1 Peer 2 Peer 3 Peer 4 Peer 5 Peer 6 Peer 7 Recycle Ratio Excluding Hedges Note: Peer group includes APA, APC, CHK, ECA, EOG, NBL and NFX.…
  10. August 2012 Investor Presentation – Devon Energy Corp – slide 10
    NYSE: DVN www.devonenergy.com Slide 11 Devon?s Risked Resource Base High-Quality and Balanced Note: Includes 12/31/11 proved reserves of 3.0 BBOE. Risked Resource By Product (BBOE) Oil (29%) 4.7 NGLs (19%) 3.1 Gas (52%) 8.4 Total…
  11. August 2012 Investor Presentation – Devon Energy Corp – slide 11
    NYSE: DVN www.devonenergy.com Slide 12 Mississippian Tuscaloosa Shale Rockies Oil Utica Ohio Michigan Growing the Resource Base New Ventures Exploration Sinopec Joint Venture ? $2.5 billion transaction ($900 million cash and…
  12. August 2012 Investor Presentation – Devon Energy Corp – slide 12
    NYSE: DVN www.devonenergy.com Slide 13 Joint Venture Rationale Objective: Utilize partnerships in new ventures exploration ? Improves capital efficiency ? Accelerates de-risking and commercialization ? Mitigates exploration risk ?…
  13. August 2012 Investor Presentation – Devon Energy Corp – slide 13
    NYSE: DVN www.devonenergy.com Slide 14 2012 E&P Capital Allocation Jackfish Other Canada $6.1 ? $6.5 Billion 75% 17% 8% Development activity Leasehold capture ?100% of capital allocated towards oil and liquids-rich projects…
  14. August 2012 Investor Presentation – Devon Energy Corp – slide 14
    NYSE: DVN www.devonenergy.com Slide 15 148.6 122.5 105.9 100.9 89.7 74.9 65.7 2006 2007 2008 2009 2010 2011 Q2-2012 Significant Oil Production Growth North American Onshore Production Data in MBOPD
  15. August 2012 Investor Presentation – Devon Energy Corp – slide 15
    NYSE: DVN www.devonenergy.com Slide 16 2012 Capital Program Delivering Strong Oil & Liquids Growth Gas 59% NGLs 17% Oil 24% ?710 MBOED (40% Oil & Liquids) 2012e Exit Rate Oil production ? Annual growth rate: 22% - 24% ? Driven…
  16. August 2012 Investor Presentation – Devon Energy Corp – slide 16
    NYSE: DVN www.devonenergy.com Slide 17 Attractively Hedged Oil Hedges 2012: 128,000 BOPD with a protected price of $97 per barrel (?85% of forecasted oil production) 2013: 76,000 BOPD with a protected price of $97 per barrel Natural…
  17. August 2012 Investor Presentation – Devon Energy Corp – slide 17
    NYSE: DVN www.devonenergy.com Slide 18 Permian Basin Overview Oil Opportunities Net risked resource: 2.8 BBOE Risked locations: >8,000 Net acreage: 1.5 million basin-wide Q2 2012 net production: ? 59 MBOED (76% liquids) Activity…
  18. August 2012 Investor Presentation – Devon Energy Corp – slide 18
    Permian Basin Oil Development Projects Midland Wolfberry Conventional Ector Midland Andrews Gaines Dawson Martin Upton Crane Winkler Ward Loving Reeves Pecos Lea Eddy Bone Spring & Delaware New Mexico Texas Central…
  19. August 2012 Investor Presentation – Devon Energy Corp – slide 19
    Permian Basin Oil Exploration Projects Ozona Midland Wolfcamp Shale (Midland Basin) Ector Midland Andrews Gaines Dawson Martin Borden Howard Mitchell Nolan Scurry Fisher Glasscock Sterling Coke Tom Green Irion…
  20. August 2012 Investor Presentation – Devon Energy Corp – slide 20
    Mississippian Light-Oil Exploration Oklahoma Kansas Logan Lincoln Creek Garfield Osage Kay Grant Alfalfa Major Woods Sumner Harper Barber Kingman Play Trend Play Trend Devon Acreage Cowley Sedgwick Devon/Sinopec JV…
  21. August 2012 Investor Presentation – Devon Energy Corp – slide 21
    Field characteristics ? Low F&D ? Flat production profile ? Long reserve life >20 years Jackfish ? Top-tier operating performance ? Q2 2012 net production: 33 MBOPD Jackfish 2 ? Q2 2012 net production: 18 MBOPD ? Reach peak…
  22. August 2012 Investor Presentation – Devon Energy Corp – slide 22
    NYSE: DVN www.devonenergy.com Note: Industry average includes: Bolney-Celtic, Christina Lake, Firebag, Foster Creek, Great Divide, Hangingstone, Long Lake, MacKay River, MEG, Orion, Senlac, Surmont, Tangleflags, and Tucker. Source:…
  23. August 2012 Investor Presentation – Devon Energy Corp – slide 23
    NYSE: DVN www.devonenergy.com Slide 24 Long-Term Production Outlook Thermal Oil Net Barrels Per Day 51,100 Q2 2012 2020 150,000 175,000 15% CAGR 18% CAGR Net Risked Resource: ?1.4 BBO
  24. August 2012 Investor Presentation – Devon Energy Corp – slide 24
    Dewey Blaine Custer Washita Caddo Grady Canadian Play Fairway Play Fairway DRY GAS ?51,000 Net Acres OIL & LIQUIDS-RICH ?193,000 Net Acres Cana Plant NYSE: DVN www.devonenergy.com Slide 25 Cana Woodford Shale Liquids-Rich Gas…
  25. August 2012 Investor Presentation – Devon Energy Corp – slide 25
    Barnett Shale Liquids-Rich Gas Development Net acreage: 624,000 Low average royalty burden: 18% Q2 2012 net production: 1.32 BCFED 2012e program: >30% of production is liquids Significant free cash flow Liquids-rich drilling…
  26. August 2012 Investor Presentation – Devon Energy Corp – slide 26
    NYSE: DVN www.devonenergy.com Slide 27 Why Own Devon? Disciplined focus on per share results Deep inventory of development opportunities Strong, highly-visible oil growth Significant positions in emerging oil plays Superior…
  27. August 2012 Investor Presentation – Devon Energy Corp – slide 27
    NYSE: DVN www.devonenergy.com Slide 30 Resource By Asset Strong Foundation for Growth Unrisked Resource Proved Reserves Additional Risked Potential Total Risked Resources Permian Basin 7.6 0.2 2.6 2.8 Barnett Shale 4.3 1.2…
  28. August 2012 Investor Presentation – Devon Energy Corp – slide 28
    NYSE: DVN www.devonenergy.com Slide 31 5.1 11.7 2.3 4.5 3.4 N.A. On shore Growth: 117% Risked Resource Base History of Growth U.S. Onshore Canada Gulf & International (47%) (21%) (32%) 10.8 BBOE (72%) (28%) March 2008…
  29. August 2012 Investor Presentation – Devon Energy Corp – slide 29
    NYSE: DVN www.devonenergy.com Slide 32 1.8 2.3 0.4 0.7 0.2 N.A. Onshore Growth: 37% Proved Reserves History of Growth U.S. Onshore Canada Gulf & International (73%) (17%) (10%) 2.4 BBOE (76%) (24%) December 31, 2008…
  30. August 2012 Investor Presentation – Devon Energy Corp – slide 30
    NYSE: DVN www.devonenergy.com Slide 33 2012 F&D Target E&P capital $6.1 ? $6.5 billion Capitalized G&A and interest $0.4 billion Drill-bit capital $6.5 ? $6.9 billion Drill-bit reserve additions(1) 360 - 390 MMBOE F&D(1) ?$16 -…
  31. August 2012 Investor Presentation – Devon Energy Corp – slide 31
    NYSE: DVN www.devonenergy.com Slide 34 Oil Hedges Oil Hedges Q3-Q4 2012 74,000 BOD collared: $90 floor and $123 ceiling 54,000 BOD swapped at $106 19,500 BOD of call options sold at $95 2013 45,000 BOD collared: $91 floor and $116…
  32. August 2012 Investor Presentation – Devon Energy Corp – slide 32
    NYSE: DVN www.devonenergy.com Slide 35 Natural Gas Hedges Natural Gas Hedges Q3-Q4 2012 1.7 BCFD with an average protected price of $3.76 488 MMCFD of call options sold at $6.00 2013 150 MMCFD swapped at $4.50 2014 90 MMCFD…
  33. August 2012 Investor Presentation – Devon Energy Corp – slide 33
    NYSE: DVN www.devonenergy.com Slide 36 Repositioning Proceeds 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…
  34. August 2012 Investor Presentation – Devon Energy Corp – slide 34
    NYSE: DVN www.devonenergy.com Slide 37 Ft. McMurray Edmonton Calgary ALBERTA BRITISH COLUMBIA Jackfish & Pike Devon?s SAGD Today Devon?s SAGD characteristics ? Low F&D ? Low geologic risk ? High reservoir quality ? Flat…
  35. August 2012 Investor Presentation – Devon Energy Corp – slide 35
    NYSE: DVN www.devonenergy.com Slide 38 Sinopec Joint Venture Assets Five Oil and Liquids-Rich Plays Mississippian Rockies Oil Utica Ohio Tuscaloosa Michigan JV Acreage (Net to DVN) 230,000 (153,000 net) 320,000 (213,000 net)…
  36. August 2012 Investor Presentation – Devon Energy Corp – slide 36
    NYSE: DVN www.devonenergy.com Slide 39 Jackfish East Jackfish acreage (100% WI) >15m (?50ft) continuous bitumen pay 1 Mile Jackfish 3 Jackfish East 2015 2016 2017 2018 2019 Regulatory Application & Review Engineering Plant…
  37. August 2012 Investor Presentation – Devon Energy Corp – slide 37
    NYSE: DVN www.devonenergy.com Slide 40 Pike Project Overview Pike leasehold ? 50% operated working interest ? Similar reservoir characteristics to Jackfish ? Up to five 35 MBOPD SAGD development phases Potential Pike 1…
  38. August 2012 Investor Presentation – Devon Energy Corp – slide 38
    NYSE: DVN www.devonenergy.com Slide 41 Pike Stratigraphic Drilling Confirms High-Quality Reservoir Pike Jackfish Depth (Ft, TVD) 1,400 ? 1,560 1,320 ? 1,380 Pay Thickness (Ft) 49 - 144 49 ? 164 Porosity (%) 30 ? 35 30 - 33…
  39. August 2012 Investor Presentation – Devon Energy Corp – slide 39
    NYSE: DVN www.devonenergy.com Slide 42 SAGD Development Timeline Timing Range of Expected Plant Start-Up Jackfish 1 (35 MBOD) Jackfish 2 (35 MBOD) Jackfish 3 (35 MBOD) Jackfish East (20 MBOD) Pike 1A (35 MBOD) Pike 1B (35 MBOD)…
  40. August 2012 Investor Presentation – Devon Energy Corp – slide 40
    NYSE: DVN www.devonenergy.com Slide 43 Heavy Oil Midstream Infrastructure Access Pipeline EDMONTON HARDISTY Enbridge P/L To Midwest Express P/L To U.S. Rockies Terasen P/L To Pacific NW ACCESS PIPELINE Athabasca Enbridge…
  41. August 2012 Investor Presentation – Devon Energy Corp – slide 41
    NYSE: DVN www.devonenergy.com Slide 44 Iron River Manatokan End Lake Lloydminster Lloydminster Oil Development Low-risk development Strong operating margins Q2 2012 net production: 39 MBOED 2012 plans: ?150 wells Net risked…
  42. August 2012 Investor Presentation – Devon Energy Corp – slide 42
    NYSE: DVN www.devonenergy.com Slide 45 Granite Wash Oil & Liquids-Rich Development Net acreage: 63,600 Legacy land position held by production Low average royalty burden: 19% Q2 2012 net production: 19 MBOED Liquids drive superior…
  43. August 2012 Investor Presentation – Devon Energy Corp – slide 43
    NYSE: DVN www.devonenergy.com Slide 46 Performance Reserve Revisions Barnett Shale Year Performance Reserve Revisions (BCFE) 2004 +186 2005 +366 2006 +30 2007 +240 2008 +132 2009 +288 2010 +156 2011 +30
  44. August 2012 Investor Presentation – Devon Energy Corp – slide 44
    NYSE: DVN www.devonenergy.com Slide 47 East Texas Unconventional Haynesville / Bossier Shale Net prospective acres: 110,000 Significant portion of acreage held by production or fee Low average royalty burden: 14% Low cost of entry…
  45. August 2012 Investor Presentation – Devon Energy Corp – slide 45
    NYSE: DVN www.devonenergy.com Slide 48 Carthage Field Waskom Bethany Angelina San Augustine Sabine Shelby Rusk Panola Gregg Harrison Marion Upshur Camp Cass Texas Appleby Net acreage: 198,000 Working interest: 86% Q2…
  46. August 2012 Investor Presentation – Devon Energy Corp – slide 46
    NYSE: DVN www.devonenergy.com Slide 49 Groesbeck Net acreage: 135,000 Working interest: 72% Q2 2012 net production: 69 MMCFED Nan-Su-Gail Dew Bald Prairie Personville Oaks Limestone Freestone Leon Robertson Texas OK TX…
  47. August 2012 Investor Presentation – Devon Energy Corp – slide 47
    NYSE: DVN www.devonenergy.com Slide 50 Horn River Basin Net acreage: 175,000 Natural gas shale play Thickest section of the basin Minimal drilling required to hold acreage Net risked resource: ?7 TCFE Risked locations: >1,500…
  48. August 2012 Investor Presentation – Devon Energy Corp – slide 48
    NYSE: DVN www.devonenergy.com Slide 51 Arkoma Woodford Shale Net acreage: 39,000 Low cost of entry: ?$400/acre Low average royalty burden: 20% Acreage held by production Q2 2012 net production: 58 MMCFED Strategic midstream…
  49. August 2012 Investor Presentation – Devon Energy Corp – slide 49
    NYSE: DVN www.devonenergy.com Slide 52 Washakie Net acreage: 162,000 Working interest: 76% Q2 2012 net production: 127 MMCFED Low-risk, tight sand gas WY UT CO Washakie

From the store

Browse maps, data & reports in the Shale Experts store