Investor Presentation March 2017 NYSE: DVN devonenergy.com
Devon Today A Leading North American E&P Heavy Oil Production Key Messages 2017e: 539 - 561 MBOED Premier asset portfolio Gas Multi-decade growth platform 36% Oil Rockies Oil 46% Focused in STACK and Delaware Basin NGL 18%…
Strategic Approach To 2017 Further increase capital productivity Maintain improved cost structure Focused on value and returns Concentrate activity within STACK and Delaware Harvest cash flow from other assets Invest…
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…
Delivering Record-Setting Well Productivity Best drilling results in Devons 45-year history Development drilling focused in top resource plays Enhanced completion designs and improved well placement 750 Avg. 90-Day Wellhead IPs…
Efficiency Gains Create Tremendous Value Achieved 1.3 billion of annual cost savings Operating Costs and G&A Billions LOE and G&A reduced 30% from peak rates 4.1 Base production initiatives yielding excellent results Efforts…
Performance Transformation Continues In 2017 Drilling activity to shift to longer laterals Improves capital efficiency & well productivity Control supply chain to reduce costs Unbundling historical, high-margin services Utilizing…
Accelerating Capital Investment 2017 Capital Outlook Rig Activity U.S. Resource Plays Disciplined capital allocation focused on returns Operated Rigs 40 UP TO 2017 E&P capital: 2.0 to 2.3 billion RIGS BY YEAR END 2017 30 90%…
Rapid Expansion Of High-Margin Production 2017 & 2018 Outlook Accelerated investment drives strong oil growth U.S. Oil Production Growth MBOD U.S. oil growth: 13% - 17% (2017 vs. Q4 16) (vs. 2017) Production growth resumes in Q1…
Expanding The Resource Base Drilling Schedule Catalyst Rich In 2017 Impactful appraisal work underway in STACK and Delaware STACK Initial multi-zone Meramec 1 million surface acres development program 30,000 potential locations…
STACK Best-In-Class Position World-class development opportunity Blaine Meramec Core Area Dewey 600,000 net acres by formation(1) Kingfisher Top targets: Meramec & Woodford Q4 net production: 88 MBOED Custer Largest…
STACK Positioned For Strong Production Growth Production expected to increase 35% during 2017 Product mix shifting to higher-margin oil and liquids production 120 STACK Production Growth MBOED 88 GROWTH Q4 2016 Q1…
STACK Meramec Moving To Full-Field Development Initial Meramec spacing pilots successful STACK PILOTS OPERATED & NON-OPERATED Tested multi-zone, staggered laterals Blaine Showboat Development 15 wells (2H 2017) Born Free Staggered…
STACK Woodford Shale: A Top-Tier Liquids-Rich Development Hobson Row completion activity underway Woodford Eastern Core Activity Kingfisher 5-section development with 40 wells Blaine Hobson Row Testing larger completions, tighter…
Delaware Basin A World-Class Oil Play Industry leader in basin Bone Spring 670,000 net acres by formation SLOPE 285,000 net acres Lea Eddy Wolfcamp Acreage concentrated in core of the play 225,000 net acres Leonard Shale Q4 net…
Delaware Basin Maximizing The Value Of Every Barrel Majority of cost savings are sustainable Delaware Basin Unit LOE Peak cost to Q4 2016 Improved electrical infrastructure Enhanced water-handling infrastructure IMPROVEMENT…
Delaware Basin Accelerating Drilling Activity Delaware Basin 2017 Drilling Plans Ramping up to 10 rigs by year-end 2017 100 Operated Wells Delaware Development activity targeting Bone Spring & Leonard Sands 5% Significant appraisal…
Delaware Basin Total Reservoir Access Concept (TRAC) A disciplined development approach to drive returns higher More efficient permitting process Minimizes surface disturbance Utilizes integrated surface facilities Flexibility to…
Delaware Basin Growing Resource Opportunity Basin Slope 1 Section 1 Section DELAWARE Identified 5,800 risked locations Madera SANDS Lower Brushy Massive upside with 20,000 potential locations A LEONARD B C…
Advantaged Capital Structure Investment-grade credit ratings Strong liquidity: 2 billion of cash (12/31/16) No significant debt maturities until 2021 Disciplined risk management protects cash flow 50% of production hedged in 2017…
Devon Energy A Leading North American E&P 23
Thank you. 24
Appendix NYSE: DVN devonenergy.com
Canadian Heavy Oil Thermal Heavy Oil Projects Top-tier thermal oil position Operational Projects High reservoir…
Eagle Ford Top-tier acreage position 65,000 net acres focused in DeWitt Co. Best-in-class productivity MILLION Q4 net production: 60 MBOED (75% liquids) 2016 FREE CASH FLOW Completion activity underway AUSTIN CHALK Multi-Zone…
Rockies Oil Premier Powder River Basin position Initial Powder River Focus Areas 470,000 net surface acres Parkman Campbell Turner Q4 net production: 15 MBOED (74% oil) Teapot Weston Johnson 50% improvement in LOE from early…
Barnett Shale Significant gas optionality Future Development Net acres: 610,000 DENTON Q4 net production: 163 MBOED (27% liquids) Wise Denton Future development activity to unlock significant value Identified 1,000 horizontal…
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