Investor Presentation August 2017 NYSE: DVN devonenergy.com
A Leading North American E&P STACK & Delaware focused Best-in-class well productivity Multi-decade growth platform Rapid cash flow expansion 30,000 STACK & DELAWARE POTENTIAL LOCATIONS Financial capacity to execute Investor…
Devons 2020 Vision Further high-grade asset portfolio Advance STACK & Delaware activity Monetize less competitive assets Multi-billion dollar divestiture potential Expand per-unit margins Shift production to higher value products…
2017 Capital Program U.S. Rig Activity Disciplined focus on value and returns 10% 90% OTHER ASSETS STACK & DELAWARE Ramping to 20 rigs by year-end Efficiencies YTD drive improved 2017 outlook 2017e E&P CAPITAL Visible…
Rapidly Expanding High-Margin Production Building operational momentum in 2017 U.S. Oil Production MBOD +18 - 23% 120 Positioned for higher growth in 2018 105 Strong growth driven by STACK & Delaware Q4 2016 1H 2017 2017e…
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% 55% PRODUCT SHIFT 2013 2014 2015 2016 Q4…
Financial Capacity To Execute Investment-grade credit ratings PROTECTING OUR ABILITY TO EXECUTE Disciplined hedging program Disciplined Hedging Excellent Significant investment in EnLink Midstream Liquidity (Cash: 2.4 billon)…
Operational Excellence Capture Improve FULL VALUE RETURNS Maximize base production Optimize capital program Minimize controllable downtime Disciplined project execution Enhance well productivity Perform premier technical work…
Best-In-Class Well Productivity Avg. 90-Day Wellhead IPs BOED, 20:1 DEVON WELL ACTIVITY 450% (Since 2012) 1,000 800 IMPROVEMENT 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 Significant efficiency gains in STACK & Delaware Innovative supply-chain initiatives Unbundling historical, high-margin services 15% SUPPLY CHAIN…
Devons Technology Leadership Culture of embracing technology Industry leader in deploying advanced analytics Contributing to best-in-class performance Targeting hundreds of millions Technology revolution still in early stages…
Devons Technology Leadership SUBSURFACE DRILLING & COMPLETIONS PRODUCTION OPERATIONS Improved 3D seismic Cyber-geosteering Predictive pump failures interpretation/integration 99% time in zone Field issue prioritization High-graded…
Multi-Zone Manufacturing Development concept in STACK & Delaware Multi-Zone Development Full Section The next frontier of efficiency gains Benefits of multi-zone manufacturing LOE and capital efficiencies Simultaneous operations…
STACK Franchise Growth Asset Blaine Showboat World-class resource opportunity Q3 2017 Spud (25 wells) Coyote Kingfisher 670K net acres by formation Q1 2018 Spud (10 wells) B-Hardt Mid-2018 Spud (10-15 wells) Up to 4 target…
STACK Multi-Decade Growth Platform Best-in-class well results Strong production growth STACK Avg. 90-Day Wellhead IPs Per 1,000 Lateral 2014 to 2017e Exit Rate Production BOED, 20:1 MBOED 120 143 50% VS. PEER AVG. 70% 70 GROWTH…
Delaware Basin Franchise Growth Asset Massive acreage position in core of play Medusa Potato Basin Expected spud: Q4 2017 20 Wells Todd Eddy Stacked pay: 15 prospective intervals Anaconda Completing Boomslang 10 Wells Lea…
Delaware Basin Multi-Decade Growth Platform Basin Slope 1 Section 1 Section 6,500 DELAWARE Madera SANDS Lower Brushy A RISKED LOCATIONS LEONARD B 4,000 C 1.3 MM OF PAY 1st BONE SPRING 2nd…
STACK & Delaware: A Prolific Growth Engine STACK & Delaware Basin Production MBOED 30% GROWTH 185 Year over year 161 149 142 Q4 2016 Q1 2017 Q2 2017 2017e Exit Rate Investor Presentation 19
A Leading North American E&P STACK & Delaware focused Best-in-class well productivity Multi-decade growth platform Rapid cash flow expansion 30,000 STACK & DELAWARE POTENTIAL LOCATIONS Financial capacity to execute Investor…
Thank you. For additional information see our Q2 Operations Report Thank you.
Appendix NYSE: DVN devonenergy.com
Cash-Flow Generating Assets HEAVY OIL 35% 15% ENLINK HEAVY OIL 2B (1) CASH FLOW 2017e 30% 20% BARNET T EAGLE FORD BARNETT (1) Represents field-level cash flow before G&A and taxes EAGLE FORD Investor Presentation…
Rockies An Emerging Oil Growth Asset Premier Powder River Basin position POWDER RIVER BASIN ACTIVITY Q2 net production: 18 MBOED (80% oil) 470,000 net surface acres Stacked pay: 10 prospective intervals Running 2 operated…
Delaware Basin Resource DELAWARE BASIN RESOURCE NET EFFECTIVE GROSS RISKED GROSS UNRISKED FORMATION ACRES LOCATIONS LOCATIONS Delaware Sands 160,000 600 1,500 Leonard Shale 160,000 1,000 3,500 Bone Spring 530,000 3,200 6,000…
Hedge Position As of 7/27/17 OIL DERIVATIVES SWAPS COLLARS COMBINED VOLUME WEIGHTED VOLUME WEIGHTED AVG. WEIGHTED AVG. PERIOD VOLUME PROTECTED PERIOD (MBPD) AVG. PRICE (MBPD) FLOOR PRICE CEILING PRICE (MBPD) PRICE (/BBL) (/BBL)…
Significant Financial Strength 5.4 billion of liquidity (credit facility matures in 2019) No significant near-term debt maturities Liquidity Debt Maturities Next 5 Years Millions 6/30/17, Millions 1,000 5,400 800 Credit 600…
Johnson County Divestiture Package Massive position in core of the Barnett Net acres: 610,000 Wise Denton Q2 net production: 155 MBOED (27% liquids) Denton Pursuing divestiture for Johnson County area Tarrant Parker 20% of…
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