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Johnson Rice Energy Conference 2016 – Devon Energy Corp

Devon Energy Corp · Sep 21, 2016 · 27 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. Johnson Rice Energy Conference 2016 – Devon Energy Corp – slide 1
    Johnson Rice & Company Energy Conference September 21, 2016 NYSE: DVN devonenergy.com
  2. Johnson Rice Energy Conference 2016 – Devon Energy Corp – slide 2
    Devon Today A Leading North American E&P Heavy Oil Retained Asset Production Key Messages Forecasted 2016: 558 - 578 MBOED Premier asset portfolio Top-tier N.A. resource plays Gas Deep inventory of opportunities 37% Oil Rockies…
  3. Johnson Rice Energy Conference 2016 – Devon Energy Corp – slide 3
    Approach To The Current Environment Achieve additional operating cost savings Further increase capital productivity Focused on value and returns Accelerate activity in STACK and Delaware Basin Preserve continuity in other U.S.…
  4. Johnson Rice Energy Conference 2016 – Devon Energy Corp – slide 4
    Successful Asset Divestiture Program Enhancing Financial Strength Divestiture program complete Access Pipeline 1.1 Billion Total proceeds: 3.2 billion Expected close: Q3 2016 E&P asset sales: 2.1 billion Access pipeline sale: 1.1…
  5. Johnson Rice Energy Conference 2016 – Devon Energy Corp – slide 5
    Significant Financial Strength Investment-grade balance sheet Adjusted cash balance: 4.6 billion(1) Undrawn 3 billion credit facility BILLION PRO-FORMA LIQUIDITY Net debt(2) reduced 45% from early 2016 Debt reduction program…
  6. Johnson Rice Energy Conference 2016 – Devon Energy Corp – slide 6
    Advantaged Midstream Business EnLink Overview Devons equity ownership interest 24% of MLP (ENLK: 95 million units) 64% of GP (ENLC: 115 million units) BILLION Eliminates midstream capital requirements DVNS ENLINK OWNERSHIP MARKET…
  7. Johnson Rice Energy Conference 2016 – Devon Energy Corp – slide 7
    Operating Strategy For Success Maximize base production Optimize capital program Minimize controllable downtime Disciplined project execution Enhance well productivity Perform premier technical work Leverage midstream operations…
  8. Johnson Rice Energy Conference 2016 – Devon Energy Corp – slide 8
    Delivering Best-In-Class Well Results Devons Avg. 90-Day Wellhead IPs 2015 Avg. 90-Day Wellhead IPs BOED, 20:1 BOED, 20:1 600 600 450 450 300 300 150 250% 150 INCREASE 0 0 2012 2013 2014 2015 Top U.S. Producers Source:…
  9. Johnson Rice Energy Conference 2016 – Devon Energy Corp – slide 9
    Achieving Significant Cost Savings Declining D&C costs across portfolio D&C Well Cost Declines Peak cost to Q2 2016 Up to 40% lower than peak rates UP TO Driven by efficiencies and supply chain costs More than offsetting larger…
  10. Johnson Rice Energy Conference 2016 – Devon Energy Corp – slide 10
    Disciplined Capital Allocation Yielding Strong Results Capital program focused on top U.S. resource plays 2016 E&P Capital Budget 1.1 Billion - 1.3 Billion Accelerating activity in STACK and Delaware Basin Other Adding up to 7…
  11. Johnson Rice Energy Conference 2016 – Devon Energy Corp – slide 11
    Strong Returns At Lower Prices Incremental Well Economics Assets in best U.S. resource plays At 50 Oil & 2.50 Gas Delaware Basin Inventory attractively positioned on cost curve STACK Meramec 30%+ Eagle Ford 20%+ Rockies IRR…
  12. Johnson Rice Energy Conference 2016 – Devon Energy Corp – slide 12
    STACK Best-In-Class Position World-class development opportunity Atoka Penn. Morrow Meramec Best Results - Strong flow rates 430,000 net surface acres Springer - Oil-weighted production - Low well costs Kingfisher Top…
  13. Johnson Rice Energy Conference 2016 – Devon Energy Corp – slide 13
    STACK A Multi-Decade Growth Opportunity Largest leasehold position of any operator Strong production growth STACK Acreage STACK Production Net Acres MBOED 91 430,000 265,000 203,000 171,000 130,000 83,000 59 54% INCREASE Peers…
  14. Johnson Rice Energy Conference 2016 – Devon Energy Corp – slide 14
    STACK Meramec Results Validate Core Position Kingfisher Favorable characteristics of Scheffler 1H-9X 30-Day IP: 2,000 BOED Pony Express 27-1H 30-Day IP: 2,100 BOED Born Free Staggered Pilot core oil window: Dewey Blurton 1-7-6XH…
  15. Johnson Rice Energy Conference 2016 – Devon Energy Corp – slide 15
    Meramec Resource Best Emerging Development Play in North America Meramec inventory conservatively risked (4 wells per surface section) 10 spacing tests underway to drive risked location count higher First three Devon operated spacing…
  16. Johnson Rice Energy Conference 2016 – Devon Energy Corp – slide 16
    Woodford Shale A Top-Tier Liquids-Rich Development Well productivity improved by 100% Blaine Dewey Kingfisher Recent wells averaging up to 1,900 BOED Gordon Row Avg. 30-Day IP: 1,600 BOED Results driven by enhanced completion…
  17. Johnson Rice Energy Conference 2016 – Devon Energy Corp – slide 17
    Delaware Basin A World-Class Oil Play Industry leader in basin Net risked acres by formation: 585,000 SLOPE Lea Eddy Q2 net production: 65 MBOED Delivering top-tier well results BASIN Deep inventory of low-risk oil projects…
  18. Johnson Rice Energy Conference 2016 – Devon Energy Corp – slide 18
    Delaware Basin Industry Leading Well Productivity Acreage position concentrated in basin of southeast New Mexico Delivering the most productive wells in world-class field 90-day IP rates 20% higher than industry average Top 200…
  19. Johnson Rice Energy Conference 2016 – Devon Energy Corp – slide 19
    Delaware Basin Achieving Significant Cost Savings Delaware Basin Unit LOE Record-low LOE costs reduced by 50% /BOE 16.87 14.80 Majority of cost savings are sustainable 12.62 12.00 Improved electrical infrastructure 50% 10.76…
  20. Johnson Rice Energy Conference 2016 – Devon Energy Corp – slide 20
    Delaware Basin Significant Resource Opportunity Basin Slope 1 Section 1 Section DELAWARE Identified 5,200 risked locations (16,000 unrisked) Madera SANDS Lower Bone Spring 65% of risked inventory Brushy A LEONARD…
  21. Johnson Rice Energy Conference 2016 – Devon Energy Corp – slide 21
    Delaware Basin Master Development Plan Total Reservoir Access Concept (TRAC) A disciplined development approach Develop up to 9 intervals of stacked-pay Utilizes integrated surface facilities Leverages simultaneous operations…
  22. Johnson Rice Energy Conference 2016 – Devon Energy Corp – slide 22
    Premier Asset Portfolio Platform For Value Creation Asset Risked Opportunity Upside Potential Heavy Oil STACK 5,300 undrilled 10 spacing tests locations underway Delaware 5,000 undrilled Spacing tests and Basin locations appraisal…
  23. Johnson Rice Energy Conference 2016 – Devon Energy Corp – slide 23
    Devon Energy A Leading North American E&P 24
  24. Johnson Rice Energy Conference 2016 – Devon Energy Corp – slide 24
    Canadian Heavy Oil Top-tier thermal oil position High reservoir…
  25. Johnson Rice Energy Conference 2016 – Devon Energy Corp – slide 25
    Eagle Ford Top-tier acreage position 66,000 net acres focused in DeWitt Co. Q2 net production: 75 MBOED (77% liquids) MILLION Expect 300 million of free cash flow in 2016 2016e FREE CASH FLOW Best-in-class well productivity…
  26. Johnson Rice Energy Conference 2016 – Devon Energy Corp – slide 26
    Rockies Premier Powder River position 470,000 net surface acres Q2 net production: 21 MBOED (70% oil) Johnson Weston Campbell Development programs delivering strong results Targeting Parkman, Teapot and Turner formations…
  27. Johnson Rice Energy Conference 2016 – Devon Energy Corp – slide 27
    Barnett Shale Significant gas optionality 2015/2016 Refrac Denton Wise Net acres: 610,000 Future Focus Area Denton Q2 net production: 167 MBOED (26% liquids) Focused on optimizing base production Tarrant Parker Concluded refrac…

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