J.P.Morgan Energy Equity Conference June 26, 2017 NYSE: DVN devonenergy.com
Devon Energy A Leading North American E&P Premier Delivering asset portfolio top-tier execution Multi-decade Significant growth platform financial strength 3
Premier Asset Portfolio U.S. Rig Activity STACK & Delaware focused 10% OTHER ASSETS STACK Visible growth trajectory 625,000 net acres by formation 10,000 potential locations Organically funded growth Delaware Basin 1 MM net…
STACK And Delaware Basin Multi-Decade Growth Platform Massive Resource Opportunity Best emerging development plays in N.A. 30,000 DRILLING INVENTORY Industry-leading acreage positions Sustainable, long-term growth platform…
STACK Franchise Growth Asset Blaine Kingfisher Transitioning to full-field development Dewey Showboat Project 25-30 wells 2 drilling units Peak rates at Hobson Row in Q2 Hobson Row Jacobs Row Custer 39 wells (5-sections) Up…
STACK Multi-Decade Growth Platform 400 drilling units Blaine Showboat Project Kingfisher Majority operated 70% long laterals Up to 4 intervals per unit Jacobs Row Hobson Row Future Drilling Unit Caddo Canadian 7
Delaware Basin Franchise Growth Asset Acreage concentrated in core of play Potato Basin Todd Leonard Multi-Zone 10 wells (3 intervals) Eddy Transitioning to full-field development Lea Cotton Draw Thistle/Gaucho Wolfcamp…
Delaware Basin Multi-Decade Growth Platform Basin Slope 1 Section 1 Section DELAWARE Madera SANDS 5,800 Lower Brushy A LEONARD B RISKED LOCATIONS 4,000 C OF PAY 1st BONE SPRING 2nd 1 MM (Upper…
Accelerating Capital Investment Rig Activity U.S. Resource Plays Operated Rigs Capital allocation focused on returns 30 20RIGS 15 RIGS BY YEAR-END 2017 10 RIGS AT MARCH 31, 2017 Ramping to 20 operated rigs by year-end 20 AT…
Rapidly Expanding High-Margin Production Building operational momentum in 2017 U.S. Oil Production Growth MBOD +20% (vs. 2017) +13 - 17% Higher growth rates expected in 2018 (vs. Q4 2016) 105 Growth driven by STACK &…
Peer-Leading Cash Flow Expansion Shifting to higher-value production Delivering peer-leading cash flow expansion Liquids % of Total Product Mix Billions 65% 2.5(1) 61% 61% 52% 42% 2013 2014 2015 2016 Q4 2017e 175%…
Financial Capacity To Execute Investment-grade credit ratings PROTECTING OUR ABILITY TO EXECUTE Disciplined No significant debt maturities until 2021 Hedging Excellent Liquidity (Cash: 2.1 billon) Disciplined hedging program…
Active Portfolio Management 1.0 1 billion divestiture program Targeting select U.S. assets Timing: 12-18 months BILLION TARGETED DIVESTITURES Driven by depth of U.S. resource Potential for additional sales For…
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…
Best-In-Class Well Productivity Avg. 90-Day Wellhead IPs BOED, 20:1 DEVON WELL ACTIVITY 450% (Since 2012) 1,000 800 IMPROVEMEN T 600 400 200 Top 30 U.S. Producers Source: IHS/Devon. Top operators with more than 40…
Efficiencies Offsetting Industry Inflation Completely offset industry inflation YTD Significant efficiency gains in STACK & Delaware Innovative supply-chain initiatives Unbundling historical, high-margin services 10% SAVINGS AT…
Multi-Zone Manufacturing The Next Frontier Of Efficiency Gains Shifting to development in STACK & Delaware Multi-Zone Development Full Section Benefits of multi-zone manufacturing LOE and capital efficiencies Simultaneous…
Devons Technology Leadership Technology revolution provides massive upside Optimizing base production 2% uplift achieved = 100 million annually Enhancing drilling & completion operations Delivering best-in-class well…
Devon Energy A Leading North American E&P Premier asset portfolio Multi-decade growth platform Delivering top-tier execution Significant financial strength 20
Appendix NYSE: DVN devonenergy.com
Cash-Flow Generating Assets 2017e 2.0 Billion of Cash Flow HEAVY OIL Q1 production: 141 MBOED 3% 12% OTHER ENLINK BARNETT 35% HEAVY OIL Q1 production: 158 MBOED Net acres: 610,000 EAGLE FORD 30% Q1 production: 83 MBOED…
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 Q1 net production: 17 MBOED (79% oil) Teapot Avg. 30-Day IP: 1,800…
STACK Showboat Development Showboat Development (First multi-zone STACK development) 1 Unit / Section UPPER MERAMEC LOWER WDFD 26
Delaware Basin Multi-Zone Developments Leonard multi-zone development Wolfcamp multi-zone development Testing up to 19 wells per section Testing up to 18 wells per section Initial production: 2H 2017 Expected to spud in late…
Delaware Basin Resource Table Net Risked Unrisked Effective Gross Gross Formation Acres Locations Locations Delaware Sands 170,000 700 2,000 Leonard Shale 160,000 950 3,100 Bone Spring 565,000 3,500 5,700 Wolfcamp 475,000 500…
Barnett Shale Johnson County Divestiture Package Massive position in core of the Barnett Net acres: 610,000 Wise Denton Q1 net production: 158 MBOED (28% liquids) Denton Evaluating strategic options for Johnson Tarrant…
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