Q4 2016 OPERATIONS REPORT February 14, 2017 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 CORPORATE HIGHLIGHTS Heavy Oil Exceeded fourthquarter production expectations Achieved recordsetting well productivity in 2016 Reduced operating expenses in U.S. by 42 percent from peak rates Attained 1.3 billion in…
RESULTS OVERVIEW & OUTLOOK Production Exceeds Midpoint Guidance in Q4 RETAINED ASSETS Q4 STATS Q4 2016 Q4 2015 Oil production from Devons retained assets totaled 244,000 barrels per day in the fourth quarter. This highmargin product…
RESULTS OVERVIEW & OUTLOOK Lease Operating Costs Improve 42% in U.S. Resource Plays Operating Costs and G&A ( Billions) Devon continued to make progress lowering operating costs in Q4. LOE costs 4.1 totaled 367 million for the quarter…
RESULTS OVERVIEW & OUTLOOK Advantaged Capital Structure (continued) 2017 CAPITAL & RIG ACTIVITY In aggregate, Devons ownership in EnLink is valued at 4 billion (table below) and will generate cash distributions of around 270 million…
RESULTS OVERVIEW & OUTLOOK Shift to HigherMargin Production Rapidly Expands Cash Flow (continued) STACK and Delaware: Sustainable Growth Platform with 30,000 Locations Looking ahead to 2018, the operational momentum created by…
STACK Net production averaged 88,000 Boe per day in the fourth quarter. To enhance STACK Q4 STATS profitability, the company rejected 6,000 barrels per day of ethane during Q4. Q4 2016 Q4 2015 Production: For the full year,…
STACK Meramec Drilling Program Accelerates in Q4 With the initial Showboat development, the company is evaluating 15 wells in a single drilling unit, codeveloping up to 3 different Meramec The company added 2 operated rigs in Q4,…
STACK Meramec Inventory Increases 40%; Significant Upside Remaining (continued) Across the Meramec oil window, Devon has identified 4,300 unrisked locations or 7,000 locations normalized to 5,000 laterals. This assigns no locations…
STACK Accelerating Capital Investment in the STACK (continued) Net Gross Risked Window Acres Locations In 2017, Devon expects to invest around 750 million of capital in the STACK, of which 35% is attributable to nonoperated activity…
DELAWARE BASIN Net production averaged 54,000 Boe per day in the fourth quarter (72% liquids). DELAWARE BASIN Q4 STATS To enhance cash margin, Devon rejected 2,000 barrels per day of ethane in Q4. Q4 2016 Q4 2015 Production: The…
DELAWARE BASIN RecordLow LOE Rates Achieved (continued) Leonard Shale Risked Inventory LEONARD UNRISKED (Locations) Due to the improved infrastructure, Devon was able to reduce operating costs 950 POTENTIAL in the Delaware Basin by…
DELAWARE BASIN Drilling Efficiencies Continue in Q4 2017 Delaware Basin Activity Devon resumed drilling operations in the Delaware Basin during the second half Capital Drilling (700 Million) (100 Operated Wells) of 2016, and rig…
DELAWARE BASIN Production Growth to Exceed 20% by YearEnd 2017 A WorldClass Growth Platform with Massive Resource Upside The Delaware Basin capital plan is projected to stabilize production by the end Adding up leasehold by formation,…
EAGLE FORD Net production in the Eagle Ford averaged 60,000 Boe per day in the fourth EAGLE FORD Q4 STATS quarter. To maximize margins, the company rejected 4,000 barrels per day of Q4 2016 Q4 2015 ethane during Q4. Production: Oil…
EAGLE FORD Staggered Lower Eagle Ford Spacing Test Successful (continued) Due to these efficiencies and completion cost reductions, Devon is reducing its Eagle Ford D&C costs to 5.5 million per well, an Early flowback results from…
HEAVY OIL Net oil production in Canada averaged a record 139,000 barrels per day in the HEAVY OIL Q4 STATS fourth quarter. Q4 2016 Q4 2015 Production: This strong result was driven by the Jackfish complex, where gross production…
HEAVY OIL IndustryLeading Operating Performance Jackfish 2 Production Advances 51% The companys excellent operating performance at Jackfish in 2016 was driven by Gross production at Jackfish 2 averaged 41,300 barrels per day (net…
BARNETT SHALE Net production averaged 163,000 Boe per day in Q4. With improving prices, BARNETT SHALE Q4 STATS cash flow generation in the Barnett increased to 107 million in the quarter. Q4 2016 Q4 2015 Production: Base Production…
BARNETT SHALE Future Development Activity to Unlock Massive Upside Potential Cash flow in the Barnett can approach 600 million annually at a realized price of 3 per Mcfe (chart below). Devon has tremendous upside beyond proved reserves…
ROCKIES OIL Net production was 15,000 Boe per day in the fourth quarter. Lightoil ROCKIES OIL Q4 STATS production accounted for 74% of the product mix and roughly 90% of revenue Q4 2016 Q4 2015 in the Rockies. Production: Oil…
ROCKIES OIL Drilling Activity Resumes in the Powder River Basin (continued) Development Inventory Increases 20% Initial drilling activity was focused primarily on the Parkman formation, and 30 The Powder River oil fairway is an emerging…
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