Q3 2016 OPERATIONS REPORT November 1, 2016 NYSE: DVN devonenergy.com IR Contacts Table of Contents Email: Key Takeaways ................ 2 investor.relationsdvn.com Results Overview & Outlook .............. 3 Scott Coody Operating…
KEY TAKEAWAYS HIGHLIGHTS Achieved record-setting well results in U.S. resource plays Heavy Oil Increased STACK production 38% year over year Improved lease operating expenses by 37% from peak rates Completed 3.2 billion asset…
RESULTS OVERVIEW & OUTLOOK Record-Setting Well Results in U.S. Resource Plays RETAINED ASSETS Q3 STATS Q3 2016 Q3 2015 Production from retained assets averaged 550,000 Boe per day during the third quarter. With the shift to…
RESULTS OVERVIEW & OUTLOOK G&A Costs Continue to Decline Devon has a 64% ownership in EnLinks general partner (ENLC) and a 24% interest in the limited partner (ENLK) (table below). In aggregate, the The company also realized significant…
RESULTS OVERVIEW & OUTLOOK Investment-Grade Position Strengthens (continued) Devon will continue to add to its hedging position and is targeting to have approximately 50% of its expected revenues protected in 2017. In August, the…
RESULTS OVERVIEW & OUTLOOK 2017 & 2018 Preview: Accelerating Investment in U.S. Resource Plays In 2018, at 60 WTI and 3.25 Henry Hub, cash flow has the potential to reach 3.5 billion, 200% increase from todays levels (chart below). With…
STACK Net production averaged 92,000 Boe per day in Q3, a 38% growth rate year over STACK Q3 STATS year (chart below). This growth was driven by higher-margin oil production, Q3 2016 Q3 2015 which increased 184% compared to the year…
STACK Record-Setting Meramec Wells Results Oil Productivity Recent 5,000 Laterals The company operated or participated in 18 new Meramec wells in the over- 200 Recent Devon Wells Cumulative Production (MBO) pressured oil window…
STACK 10,000 Laterals to Further Boost Meramec Economics Since 2015, Devons well productivity in Blaine, Kingfisher and Canadian counties has been 50% higher than the industry average (chart below). With the recent success of…
STACK Third Successful STACK Spacing Test (continued) WOODFORD ACTIVITY Devon is participating in several additional spacing pilots that will help shape its initial development scheme in the core of the play by mid-2017 (map below).…
STACK Woodford Oil Appraisal Work Identifies 500 Locations Prospective Surface Gross Risked Window Acres(1) Locations Devon recently brought online a noteworthy Woodford appraisal well in the STACK oil window. The Old Rickys Ridge…
DELAWARE BASIN Net production averaged 59,000 Boe per day in the third quarter. Oil and liquids DELAWARE BASIN Q3 STATS production accounted for 74% of total production in the Delaware Basin. Q3 2016 Q3 2015 Production: Activity in…
DELAWARE BASIN Record-Low LOE Costs Achieved (continued) Leonard Spacing Tests to Drive Inventory Upside The majority of these LOE savings are sustainable due to investment in A key objective of the increased drilling activity in the…
DELAWARE BASIN Wolfcamp Drilling to Ramp Up in 2017 (continued) TRAC offers distinct advantages over the traditional pad drilling such as: Initial Wolfcamp activity will be focused on Devons Rattlesnake and Mi Vida 1. More efficient…
DELAWARE BASIN Delaware Basin A Multi-Decade Growth Platform (continued) Adding up leasehold by formation, the company has exposure to 670,000 risked net acres, with 5,700 risked undrilled locations in this world-class basin (table…
EAGLE FORD Net production averaged 61,000 Boe per day in the third quarter, with liquids EAGLE FORD Q3 STATS accounting for 77% of Eagle Ford volumes. Q3 2016 Q3 2015 Production: As previously disclosed, production in Q3 was…
EAGLE FORD Significant Free Cash Flow Generation Eagle Ford Outlook Benefits from Accelerated Completion Activity The improved costs and higher prices helped Eagle Ford margins expand to The companys inventory of Eagle Ford wells waiting…
HEAVY OIL Net oil production averaged 137,000 barrels per day in the third quarter, a 13% HEAVY OIL Q3 STATS increase year over year. Q3 2016 Q3 2015 Production: Production at Jackfish Complex Exceeds Nameplate Capacity Oil &…
HEAVY OIL Heavy Oil Business Generating Significant Free Cash Flow Jackfish 2 Accelerates to 43,000 Barrels Per Day Devons heavy oil business is also generating cash flow. In Q3, these assets Production at Jackfish 2 reached a new…
BARNETT SHALE Net production averaged 166,000 Boe per day or 1.0 Bcfe per day in the third BARNETT SHALE Q3 STATS quarter. Liquids accounted for 27% of the production mix. Q3 2016 Q3 2015 Production: The strong base production…
BARNETT SHALE Future Development Activity to Unlock Significant Value (continued) Significant Leverage to Higher Commodity Prices Through successful appraisal work over the past few years, Devon has identified In addition to the…
ROCKIES OIL Net production averaged 16,000 Boe per day in the third quarter. High-quality, ROCKIES OIL Q3 STATS light oil accounts for 73% of Rockies production or roughly 90% of revenue. Q3 2016 Q3 2015 Production: LOE Declines 50%…
ROCKIES OIL Drilling Activity to Resume in the Powder River Basin (continued) While appraisal activity is required to delineate the full extent of the oil fairway, Devon has identified 200 development locations that are capable This…
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