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Capital One Securities Energy Conference – Devon Energy Corp

Devon Energy Corp · Dec 10, 2015 · 35 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. Capital One Securities Energy Conference – Devon Energy Corp – slide 1
    Capital One Securities Energy Conference December 10, 2015 NYSE: DVN devonenergy.com
  2. Capital One Securities Energy Conference – Devon Energy Corp – slide 2
    Devon A Leading North American E&P Sharpening the Focus Premier asset portfolio Delivering superior execution Advantaged capital structure 3
  3. Capital One Securities Energy Conference – Devon Energy Corp – slide 3
    Sharpening The Focus 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: 1.9 billion (1.05…
  4. Capital One Securities Energy Conference – 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. Capital One Securities Energy Conference – Devon Energy Corp – slide 5
    Asset Divestiture Program Access Pipeline sale/dropdown expected early 2016 Noncore E&P assets Potential candidates include: Carthage, MissLime, Granite Wash, and select Midland Basin assets Divestiture production: 50 80 MBOED…
  6. Capital One Securities Energy Conference – Devon Energy Corp – slide 6
    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…
  7. Capital One Securities Energy Conference – Devon Energy Corp – slide 7
    Premier Asset Portfolio Heavy Oil Positioned in toptier basins Bestinclass STACK position Premier Rockies position Prolific Eagle Ford assets Leading Delaware Basin operator Rockies Oil Worldclass heavy oil projects Shift to…
  8. Capital One Securities Energy Conference – Devon Energy Corp – slide 8
    BestInClass STACK Position Overview Combined Position Atoka Penn. Morrow Worldclass development play Springer Blaine Kingfisher Largest and best position Chester Dewey Mississippian 430,000 net surface acres Upper…
  9. Capital One Securities Energy Conference – Devon Energy Corp – slide 9
    STACK Results Validate Core Position CanaWoodford is leading ESTEP 11H liquidsrich play Scheffler 1H9X Woodford Gill 1H4X Lower Meramec 30Day IP: 2,100 BOED Lower Meramec 30Day IP: 2,040 BOED 30Day IP: 1,570 BOED Kingfisher…
  10. Capital One Securities Energy Conference – Devon Energy Corp – slide 10
    Powder River Basin Overview Combined Position Teckla Campbell Acquisition creates largest and Teapot 6,500 TVD Weston highest quality Powder River position Upper Cretaceous Parkman 470,000 net surface acres 8,000 TVD…
  11. Capital One Securities Energy Conference – Devon Energy Corp – slide 11
    Powder River Basin 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…
  12. Capital One Securities Energy Conference – Devon Energy Corp – slide 12
    Eagle Ford Overview Toptier acreage position Q3 PRODUCTION 72,000 net acres focused in DeWitt Co. 43% Q3 net production: 113 MBOED (80% liquids) YOY Increase Q3 LOE / BOE Highest returning asset in portfolio 29% Lavaca YOY…
  13. Capital One Securities Energy Conference – Devon Energy Corp – slide 13
    Eagle Ford BestInClass Results Acreage located in best part of Eagle Ford 90Day IP rates 130% higher than industry average Consistently delivering worldclass development results Eagle Ford 90Day Wellhead IPs 1,050 BOED, 20:1…
  14. Capital One Securities Energy Conference – Devon Energy Corp – slide 14
    Delaware Basin Overview Industry leader in basin Net risked acres: 585,000 Lea Q3 net production: 61 MBOED (67% oil) Eddy Delivering toptier well results Deep inventory of lowrisk projects 5,100 risked locations (16,000…
  15. Capital One Securities Energy Conference – Devon Energy Corp – slide 15
    Delaware Basin Track Record of Growth Perwell productivity continues to increase 2015 oil production on pace to grow 50% YoY 40 Bone Spring driving prolific growth Delaware Basin Oil Production Growth MBOD 700% 5 Growth…
  16. Capital One Securities Energy Conference – Devon Energy Corp – slide 16
    Delaware Basin Bone Spring Results Continue to Improve Bone Spring Cumulative Production Completion design enhances results 60Day Avg. Per Well, MBOE Per well productivity up 40% YTD 2015 Avg. Well 2014 Avg. Well 40 3x more…
  17. Capital One Securities Energy Conference – Devon Energy Corp – slide 17
    Delaware Basin Significant & Growing Resource Opportunity Identified 5,100 risked, undrilled locations Downspacing pilots expected to grow inventory Testing 8 wells per section in lower 2nd Bone Spring interval (traditional landing…
  18. Capital One Securities Energy Conference – Devon Energy Corp – slide 18
    Premier Asset Portfolio Platform For Value Creation 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 and…
  19. Capital One Securities Energy Conference – Devon Energy Corp – slide 19
    Delivering Superior Execution Operating Strategy For LongTerm Success Maximize base production Minimize controllable downtime Enhance well productivity Capture Full Leverage midstream operations Value Reduce operating…
  20. Capital One Securities Energy Conference – Devon Energy Corp – slide 20
    Advantaged Capital Structure Goforward financial position remains strong Investmentgrade credit ratings Significant liquidity: 4 billion(1) Expected asset sales proceeds in 2016 The EnLink advantage Expected annual…
  21. Capital One Securities Energy Conference – Devon Energy Corp – slide 21
    Disciplined Capital Allocation Approach To Current Environment Protect the balance sheet Balance capital investment with cash inflows Sources of cash inflow Operating cash flow EnLink distributions Dropdown proceeds Prepared…
  22. Capital One Securities Energy Conference – Devon Energy Corp – slide 22
    Devon A Leading North American E&P Sharpening the Focus Premier asset portfolio Delivering superior execution Advantaged capital structure 23
  23. Capital One Securities Energy Conference – Devon Energy Corp – slide 23
    Thank you.
  24. Capital One Securities Energy Conference – Devon Energy Corp – slide 24
    Appendix
  25. Capital One Securities Energy Conference – Devon Energy Corp – slide 25
    Heavy Oil Overview Located in best part of oil sands Low geologic risk Thick and continuous reservoir Industryleading operating results Massive risked resource: 1.4 BBO Features of each Jackfish project: 300 MMBO gross EUR…
  26. Capital One Securities Energy Conference – Devon Energy Corp – slide 26
    Heavy Oil Delivering Visible Oil Growth Heavy Oil Production Oil production up 52% over past year MBOD 121 80 Jackfish 3 Driven by worldclass Jackfish complex Jackfish 2 Q3 gross production: 94 MBOD 52% Jackfish 1 Growth…
  27. Capital One Securities Energy Conference – Devon Energy Corp – slide 27
    Barnett Shale LiquidsRich Gas Development Significant gas optionality Net acres: 615,000 Wise Denton Best position in play Q3 net production: 176 MBOED Liquids 26% of production mix Barnett Wells Focused on optimizing base…
  28. Capital One Securities Energy Conference – Devon Energy Corp – slide 28
    Access Pipeline Sale/Dropdown Expected Early 2016 Three 180 mile pipelines from JACKFISH & PIKE Sturgeon Terminal to Devons thermal acreage 16 Diluent Line (Edmonton to Jackfish) 24 Diluent Line 30 miles of dual pipeline from…
  29. Capital One Securities Energy Conference – Devon Energy Corp – slide 29
    NGPL Potential Dropdown Asset 92mile gas pipeline from North Texas to Central Oklahoma STACK NGPL Proposed CANA Cana Plant WOODFORD EnLink Processing Facility Acquisition of NGPL nearing completion Regulatory approval…
  30. Capital One Securities Energy Conference – Devon Energy Corp – slide 30
    Delaware Basin Bone Spring Spacing Pilots Pilot 1 Pilot 2 Pilot 3 Pilot 4 Pilot 5 660 660 280 Upper 2nd BONE SPRING 660 880 SPRING Lower BONE 1,320 3rd Planned Pilot Well Existing Producer Results will help…
  31. Capital One Securities Energy Conference – Devon Energy Corp – slide 31
    Anadarko Basin Meramec Spacing Pilots Spacing Pilot Staggered Lateral Pilot 1,150 660 Upper Planned MISSISSIPPIAN Pilot MERAMEC (5 wells/section) Well Lower Results will help determine the optimal future…
  32. Capital One Securities Energy Conference – Devon Energy Corp – slide 32
    Key Modeling Statistics 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…
  33. Capital One Securities Energy Conference – Devon Energy Corp – slide 33
    Key Modeling Statistics Woodford Liquids Rich Gas Eagle Ford (DeWitt County) (5,000 Lateral) Working interest(1) / royalty: 65% / 21% Working interest / royalty: 54% / 22% Drill & complete costs: 7 MM 30day IP rate: 1,650 BOED…
  34. Capital One Securities Energy Conference – Devon Energy Corp – slide 34
    Key Modeling Statistics Bone Spring Basin (Delaware Basin) Bone Spring Slope (Delaware Basin) Working interest / royalty: 71% / 21% Working interest / royalty: 71% / 21% 30day IP rate: 1,000 BOED 30day IP rate: 500 BOED EUR: 600…
  35. Capital One Securities Energy Conference – Devon Energy Corp – slide 35
    Key Modeling Statistics 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…

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