Investor Presentation May 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 Significant financial strength 36% Oil Rockies Oil 46% Delivering top-tier execution NGL 18%…
Strategic Approach To 2017 Drive Further increase capital productivity efficiencies across the portfolio Maintain improved cost structure Focused on value and returns Accelerate Concentrate activity within STACK and Delaware…
Significant Financial Strength Investment-grade financial position Strong liquidity: 2.1 billion of cash (3/31/17) Undrawn 3 billion credit facility No significant debt maturities until 2021 Announced 1 billion divestiture program…
Operating Strategy For Success Capture Improve FULL VALUE RETURNS Maximize base production Optimize capital program Minimize controllable downtime Disciplined project execution Enhance well productivity Perform premier technical…
Delivering Record Well Productivity Best drilling results in Devons history Development drilling focused in top resource plays Enhanced completion designs and improved well placement 1,000 Avg. 90-Day Wellhead IPs BOED, 20:1…
Efficiency Gains Create Tremendous Value Expect 1.4 billion of annual cost savings Operating Costs and G&A Billions LOE and G&A reduced 35% from peak rates 4.1 Base production initiatives yielding excellent results Efforts…
Efficiency Gains To Continue In 2017 Drilling activity to shift to longer laterals Improves capital efficiency & well productivity Control supply chain to reduce costs Targeting Unbundling historical, high-margin services HUNDREDS…
Accelerating Capital Investment 2017 Capital Outlook Rig Activity U.S. Resource Plays Disciplined capital allocation focused on returns Operated Rigs UP TO 2017 E&P capital: 2.0 to 2.3 billion 30 20 RIGS 15 RIGS BY YEAR END…
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) +20% (vs. 2017) +13 - 17% Higher growth…
STACK Best-In-Class Position World-class development opportunity Blaine Meramec Core Area Dewey Q1 net production: 95 MBOED Production increased 8% from Q4 2016 Kingfisher Largest leasehold position of any operator Custer…
STACK Meramec Moving To Full-Field Development Initial Meramec spacing pilots successful STACK PILOTS OPERATED & NON-OPERATED Tested multi-zone, staggered laterals Blaine Born Free Staggered Pilot Showboat Development Spacing up…
STACK Woodford Shale Building Momentum Peak rates at Hobson Row expected in Q2 Woodford Eastern Core Activity Kingfisher Gross peak production: 40 MBOED Blaine Hobson Row Working interest: 55% 40 wells (5-sections) Peak rates:…
STACK Positioned For Strong Production Growth Production expected to increase 35% during 2017 Shifting to higher-margin production 120 STACK Production Growth MBOED 35% 88 GROWTH Q4 2016 Q1 2017 Q2 2017e Q3 2017e…
STACK Massive Resource To Drive Long-Term Growth MULTI-ZONE DEVELOPMENT UNITS Blaine Dewey Showboat Development 400 drilling units Kingfisher Majority operated 70% long laterals Jacobs Row Up to 4 intervals per unit…
Delaware Basin A World-Class Oil Play Industry leader in basin SLOPE 1 million net effective acres Lea Acreage concentrated in core of the play Eddy Q1 net production: 54 MBOED BASIN Low cost structure enhancing margins 2017…
Delaware Basin Shifting To Multi-Zone Development A disciplined development approach to drive Multi-Zone Development Full Section returns higher More efficient permitting process Minimizes surface disturbance Utilizes integrated…
Delaware Basin Acceleration Drives Production Growth Delivering high-margin production growth Volumes expected to increase 20% over next 3 quarters Delaware Basin Production MBOED 65 54 20% GROWTH Q1 2017 Q2 2017e Q3…
Delaware Basin Growing Resource Opportunity Basin Slope 1 Section 1 Section DELAWARE 5,800 risked locations Madera SANDS Lower Brushy Massive upside: 20,000 potential locations A LEONARD B C Catalyst-rich…
Advantaged Midstream Business EnLink Overview 3.6 Devons equity ownership interest 24% of MLP (ENLK: 95 million units) 64% of GP (ENLC: 115 million units) BILLION Reduces midstream capital requirements DVNS ENLINK OWNERSHIP…
Canadian Heavy Oil Thermal Heavy Oil Projects Top-tier thermal oil position Operational Projects High reservoir…
Eagle Ford Top-tier acreage position Q1 HIGHLIGHTS First quarter wells averaged 2,100 BOED CASH FLOW 65,000 net acres focused in DeWitt Co. Q1 net production: 83 MBOED (76% liquids) 226 MILLION 77% YEAR-OVER-YEAR Lavaca…
Rockies Oil Premier Powder River Basin position Powder River Focus Areas 470,000 net surface acres Parkman Campbell Q1 Parkman Results Turner 4 Extended-Reach Wells Avg. 30-Day IP: 1,800 BOED Q1 net production: 17 MBOED (79% oil)…
Barnett Shale Significant gas optionality Net acres: 610,000 Wise Denton Q1 net production: 158 MBOED (28% liquids) Denton Pilot programs underway to prove upside Tarrant Identified 1,000 horizontal refrac locations Parker…
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