Skip to main content Acquisition of Felix Energy – Devon Energy Corp Investor Presentation | Shale Experts
Loading...
Pm

Acquisition of Felix Energy – Devon Energy Corp

Devon Energy Corp · Dec 7, 2015 · 34 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. Acquisition of Felix Energy – Devon Energy Corp – slide 1
    Devon Sharpens Focus December 7, 2015 NYSE: DVN devonenergy.com
  2. Acquisition of Felix Energy – Devon Energy Corp – slide 2
    Transactions Summary Dave Hager, President & CEO
  3. Acquisition of Felix Energy – Devon Energy Corp – slide 3
    Sharpening The Focus Transactions Summary Acquiring premier STACK development position 80,000 net surface acres in overpressured oil window (10 prospective zones) Risked resource: 400 million BOE (1 BBOE unrisked) Purchase price:…
  4. Acquisition of Felix Energy – Devon Energy Corp – slide 4
    Strategic Rationale Sharpens focus on toptier resource plays Expands industryleading positions in best emerging development plays Highquality resource capture enhances growth outlook Bolsters deep inventory of worldclass drilling…
  5. Acquisition of Felix Energy – Devon Energy Corp – slide 5
    The EnLink Midstream Advantage EnLink infrastructure enhances value of E&P production A competitive advantage in high activity basins Ownership interest ensures midstream support of E&P activity Improves capital efficiency EnLink…
  6. Acquisition of Felix Energy – Devon Energy Corp – slide 6
    Asset Detail Tony Vaughn, Executive Vice President, E&P
  7. Acquisition of Felix Energy – Devon Energy Corp – slide 7
    STACK Acquisition Overview Acreage in economic core with Atoka Penn. highest returns in STACK Morrow Blaine Kingfisher Risked resource: 400 MMBOE Springer (30% oil, 40% NGLs & 30% gas) Chester Dewey Mississippian Upper…
  8. Acquisition of Felix Energy – Devon Energy Corp – slide 8
    BestInClass STACK Position Combined Position Atoka Penn. Morrow Worldclass development play Springer Blaine Kingfisher Largest and best position Chester Dewey Mississippian 430,000 net surface acres Upper Meramec 10…
  9. Acquisition of Felix Energy – Devon Energy Corp – slide 9
    STACK Geologic Overview Cleveland Worldclass oil accumulation in the Anadarko Basin Pennsylvanian Granite Wash Skinner Prospective pay zones cover 750 square miles Red Fork Atoka Concentrated resource with 1,000 of stacked pay…
  10. Acquisition of Felix Energy – Devon Energy Corp – slide 10
    Results Validate Core Position Solid Woodford Foundation Woodford Attributes Discovered Cana field in 2007 Blaine Kingfisher ESTEP 11H Best position in play Akin 12722XH Woodford 30Day IP: 2,100 BOED Woodford Laura 1H 30Day…
  11. Acquisition of Felix Energy – Devon Energy Corp – slide 11
    Results Validate Core Position Upper Meramec Well Results Upper Meramec Attributes Blaine Kingfisher Tremendous reservoir qualities Showboat 10031AH Upper Meramec 30Day IP: 1,750 BOED Up to 500 of pay Maybel 1H13X Morning…
  12. Acquisition of Felix Energy – Devon Energy Corp – slide 12
    Results Validate Core Position Lower Meramec Well Results Lower Meramec Attributes Blaine John 1H5X Gore 1H1X Lower Meramec Kingfisher Formation thickens to northwest Lower Meramec 30Day IP: 1,400 BOED 30Day IP: 1,250 BOED…
  13. Acquisition of Felix Energy – Devon Energy Corp – slide 13
    STACK Productivity Improving 1,200 1,000 Initial 90day rates from industry wells up 40% since 2013 800 Rate (BOED) 600 2015 (56 wells) 2014 (20 wells) 400 2013 (3 wells) 200 0 0 100 200 300 400 500 600 Days…
  14. Acquisition of Felix Energy – Devon Energy Corp – slide 14
    STACK Continuous Improvement Achieving Significant Efficiency Gains StandardLength Laterals 5,000 ExtendedReach Laterals 10,000 12,000 15,000 Drilling Time: 35 Days Proppant: 1200 lb/ft 1800 lb/ft 14,000 Proppant: 1400 lb/ft 2000…
  15. Acquisition of Felix Energy – Devon Energy Corp – slide 15
    Combined STACK Inventory Significant Resource Potential Gross Risked Gross Unrisked Formation / Window Locations (1) Locations Meramec Oil 700 2,000 Meramec Volatile Oil 900 1,800 Woodford Oil 150 450 Woodford LiquidsRich…
  16. Acquisition of Felix Energy – Devon Energy Corp – slide 16
    STACK Upside Potential Inventory conservatively risked 5 risked wells per section in Upper Meramec Downspacing to drive risked location count higher Numerous spacing pilots and staggered lateral tests underway Testing up to 8…
  17. Acquisition of Felix Energy – Devon Energy Corp – slide 17
    STACK Upside Potential Exploration Activity Cleveland Exploration drilling to generate additional inventory Pennsylvanian Granite Wash Skinner Red Fork Atoka Springer, Chester and Osage formations have Morrow significant…
  18. Acquisition of Felix Energy – Devon Energy Corp – slide 18
    STACK Development Plan STACK opportunity wins significant capital allocation Delivering toptier returns in North America Competitive with Eagle Ford, Delaware Basin and Rockies Activity focused primarily on Upper Meramec play…
  19. Acquisition of Felix Energy – Devon Energy Corp – slide 19
    STACK Ability To Execute Track Record Of Execution Best and largest position in Anadarko Basin contiguous leasehold Leverages Devon core technical competencies Strong relationships with service providers Attractive…
  20. Acquisition of Felix Energy – Devon Energy Corp – slide 20
    The EnLink Midstream Advantage ProForma EnLink Anadarko Basin Assets Leveraging EnLinks strategic midstream Noble presence Major Garfield Payne Three plants with 500 MMCFD capacity 200 MMCFD plant expansion underway Blaine…
  21. Acquisition of Felix Energy – Devon Energy Corp – slide 21
    Powder River Basin Acquisition Resource Capture In The Rockies Acreage in core of oil fairway Teckla Campbell 253,000 net acres Teapot Largely undeveloped 6,500 TVD Weston Upper Cretaceous Parkman Attractively priced at…
  22. Acquisition of Felix Energy – Devon Energy Corp – slide 22
    Premier Powder River Asset Combined Position Acquisition creates largest and highest quality Powder River position Achieves scale in stackedpay oil fairway More than doubles position to 470,000 net acres Promotes PRB to core asset…
  23. Acquisition of Felix Energy – Devon Energy Corp – slide 23
    PRB Results Continue To Improve Rockies delivering prolific results Campbell Oil production up 90% (vs. Q4 2014) DVN Focus Area Weston Parkman & Turner 23 Wells Avg. 30Day IP: 1,300 BOED PRCC Fed 2TH Parkman type curve…
  24. Acquisition of Felix Energy – Devon Energy Corp – slide 24
    Financing The Transactions 2.5 billion in acquisitions Equity: 1.35 billion Debt: 1.15 billion Commencing asset divestiture program Expected midstream and E&P proceeds: 2 3 billion 26
  25. Acquisition of Felix Energy – Devon Energy Corp – slide 25
    Sharpening The Focus Assets To Be Monetized Access Pipeline sale/dropdown expected early 2016 Monetizing noncore E&P assets Potential candidates include: Carthage, MissLime, Granite Wash, and select Midland Basin assets…
  26. Acquisition of Felix Energy – Devon Energy Corp – slide 26
    Use Of Proceeds Access Pipeline proceeds to help fund 2016 capital program 2016 E&P capital: 2.5 billion Upstream asset sales to reduce debt Flexibility with deleveraging plan Preserving maximum liquidity Nearterm debt and…
  27. Acquisition of Felix Energy – Devon Energy Corp – slide 27
    Advantaged Capital Structure Goforward financial position remains strong Market Value of EnLink Ownership December 2015 Investmentgrade credit ratings Significant liquidity: 4 billion(1) Expected asset sales proceeds in 2016 The…
  28. Acquisition of Felix Energy – Devon Energy Corp – slide 28
    The GoForward Devon Premier Asset Portfolio Heavy Oil Positioned in toptier basins Leading Delaware Basin operator Bestinclass STACK position Prolific Eagle Ford assets Premier Rockies position Rockies Oil Worldclass heavy oil…
  29. Acquisition of Felix Energy – Devon Energy Corp – slide 29
    Platform For Value Creation Sustainable LongTerm Growth Asset Risked Opportunity Upside Potential Heavy Oil Delaware 5,000 undrilled Spacing tests Basin locations underway Eagle Ford 1,400 potential Upper EF delineation locations…
  30. Acquisition of Felix Energy – Devon Energy Corp – slide 30
    Preliminary 2016 Outlook Focused capital program 2016 E&P capital: 2.5 billion Concentrating activity in Delaware, STACK, Eagle Ford and Rockies Significantly reduced capital requirements in Canada Living within total cash…
  31. Acquisition of Felix Energy – Devon Energy Corp – slide 31
    The GoForward Devon Summary Threepronged strategy: Best assets in North America Leading operator in each basin Maintain investmentgrade ratings 34
  32. Acquisition of Felix Energy – Devon Energy Corp – slide 32
    Type Curves Meramec Oil Window Meramec Volatile Oil Window (10,000 Lateral) (5,000 Lateral) Working interest(1) / royalty: 65% / 20% Working interest(1) / royalty: 65% / 20% Drill & complete costs: 8 MM Drill & complete costs: 6.5…
  33. Acquisition of Felix Energy – Devon Energy Corp – slide 33
    Type Curves Woodford Liquids Rich Gas (5,000 Lateral) Working interest(1) / royalty: 65% / 21% Drill & complete costs: 7 MM 30day IP rate: 1,200 BOED EUR: 1,700 MBOE Oil / NGLs as % of production: 5% / 40% Decline Rates 75%…
  34. Acquisition of Felix Energy – Devon Energy Corp – slide 34
    Type Curves Rockies: Powder River Basin (Parkman) Rockies: Powder River Basin (Teapot) Working interest / royalty: 60% / 20% Working interest / royalty: 60% / 20% Drill & complete costs: 7 MM Drill & complete costs: 7 MM 30day IP…

From the store

Browse maps, data & reports in the Shale Experts store