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March 2018 Investor Presentation – Devon Energy Corp

Devon Energy Corp · Mar 16, 2018 · 24 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. March 2018 Investor Presentation – Devon Energy Corp – slide 1
    Investor Presentation March 2018 NYSE: DVN devonenergy.com
  2. March 2018 Investor Presentation – Devon Energy Corp – slide 2
    Devons Investment Thesis Delaware & STACK focused Expanding high-margin production Multi-decade growth platform Disciplined capital allocation 30,000 DELAWARE & STACK POTENTIAL LOCATIONS Significant financial strength Investor…
  3. March 2018 Investor Presentation – Devon Energy Corp – slide 3
    Devons 2020 Vision TOP OBJECTIVE: OPTIMIZE RETURNS & DELIVER CAPITAL-EFFIECENT, CASH-FLOW GROWTH Reduce per-unit cash costs by 15% Focus on capital efficiency Deliver 25% oil production CAGR in Delaware & STACK Management incentives…
  4. March 2018 Investor Presentation – Devon Energy Corp – slide 4
    2020 Vision To Drive Significant Cash Flow Growth Growing higher-value production Cost savings to expand margins U.S. Oil Production (MBOD) Upstream Per-Unit Cash Cost (/BOE) 200 18 15% COST SAVINGS 175 12 Interest 150 MID-TEENS…
  5. March 2018 Investor Presentation – Devon Energy Corp – slide 5
    2018 Capital & Production Outlook FOCUSED DEVELOPMENT OPTIMIZED FOR RETURNS OIL GROWTH PROGRAM S E L F F U N D E D AT 2 0 1 8 e E & P C A P I TA L D E L AWA R E & S TAC K 50 WTI 2.2-2.4 Billion 35% Increase N O P L A N S TO I N C…
  6. March 2018 Investor Presentation – Devon Energy Corp – slide 6
    Shareholder-Friendly Initiatives Return cash to shareholders 1 billion share 33% increase in 1 billion debt repurchase program quarterly cash reduction plan initiated in Q1 2018 dividend underway Investor Presentation 7
  7. March 2018 Investor Presentation – Devon Energy Corp – slide 7
    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…
  8. March 2018 Investor Presentation – Devon Energy Corp – slide 8
    Operational Excellence: Multi-Zone Strategy Multi-zone development strategy underway 10 multi-zone projects scheduled in 2018 Initial results encouraging 1 million savings per well at Anaconda project 30% drilling efficiencies…
  9. March 2018 Investor Presentation – Devon Energy Corp – slide 9
    Innovation Momentum - Technology Projects In Flight DRILLING & PRODUCTION WAT E R SUBSURFACE COMPLETIONS O P E R AT I O N S MANAGEMENT C O R P O R AT E Improved 3D seismic Cyber-geosteering Predictive pump failures Water-treatment…
  10. March 2018 Investor Presentation – Devon Energy Corp – slide 10
    Delaware Basin Franchise Asset POTATO BASIN World-class oil opportunity TODD Medusa Drilling Cobra Tomb Raider Multi-decade growth platform Spud Muffin Anaconda 10 Wells Online Boomslang Up to 15 target intervals Flowing Back…
  11. March 2018 Investor Presentation – Devon Energy Corp – slide 11
    Delaware Basin Multi-Zone Projects Ramping Up Anaconda project online THISTLE/GAUCHO Initial multi-zone project Anaconda 10 Wells Online Achieved savings of 1 MM per well Lea Boomslang 30-day rates: 1,600 BOED per well Eddy…
  12. March 2018 Investor Presentation – Devon Energy Corp – slide 12
    Delaware Basin Most Active Asset In 2018 Significant increase in activity Driving high-return growth 2018 E&P Capital Production (MBOED) 85 50% INCREASE VS. 2017 725 MM 40% 60 Leonard Bone Spring GROWTH Wolfcamp Q4…
  13. March 2018 Investor Presentation – Devon Energy Corp – slide 13
    Delaware Basin Significant Resource Opportunity 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…
  14. March 2018 Investor Presentation – Devon Energy Corp – slide 14
    STACK Franchise Asset Kingfisher Blaine Best-in-class acreage position Showboat Completing (24 wells) Minnie Haha 600k net acres by formation Coyote Cascade Completing (7 wells) 2018 Spud (7 wells) Kraken Up to 4 target…
  15. March 2018 Investor Presentation – Devon Energy Corp – slide 15
    STACK Multi-Zone Results Encouraging Showboat drilling concluded Blaine Kingfisher 30% drilling efficiencies reached Coyote Showboat (2 drilling units) Average cost savings: 500k per well Completing (7 wells) Completing (24…
  16. March 2018 Investor Presentation – Devon Energy Corp – slide 16
    STACK Multi-Decade Growth Platform Activity shifting to economic core High-returning production growth Production (MBOED) 140 (40% oil growth) WOODFORD MERAMEC ACTIVIT Y 95% 117 111 105 E&P CAPITAL 95 2018e Q1 2017 Q2 2017…
  17. March 2018 Investor Presentation – Devon Energy Corp – slide 17
    Significant Financial Strength PROTECTING OUR ABILITY Investment-grade credit ratings TO EXECUTE Excellent Disciplined hedging program Liquidity Cash: 2.7B 50% of 2018 oil & gas volumes protected EnLink Investment Market Value:…
  18. March 2018 Investor Presentation – Devon Energy Corp – slide 18
    Devons Investment Thesis Delaware & STACK focused Expanding high-margin production Multi-decade growth platform Disciplined capital allocation 30,000 DELAWARE & STACK POTENTIAL LOCATIONS Significant financial strength Investor…
  19. March 2018 Investor Presentation – Devon Energy Corp – slide 19
    Thank you. For additional information see our Q4 Operations Report Thank you.
  20. March 2018 Investor Presentation – Devon Energy Corp – slide 20
    Appendix NYSE: DVN devonenergy.com
  21. March 2018 Investor Presentation – Devon Energy Corp – slide 21
    Cash-Flow Generating Assets HEAVY OIL 35% 15% ENLINK HEAVY OIL 2.3B (1) CASH FLOW 2017 30% 20% BARNET T EAGLE FORD BARNETT (1) Represents field-level cash flow before G&A and taxes. EAGLE FORD Investor…
  22. March 2018 Investor Presentation – Devon Energy Corp – slide 22
    Rockies An Emerging Oil Growth Asset POWDER RIVER BASIN ACTIVITY Premier Powder River Basin position Q4 net production: 19 MBOED 400,000 net surface acres Stacked pay: 10 prospective intervals Super Mario Turner activity…
  23. March 2018 Investor Presentation – Devon Energy Corp – slide 23
    2020 Vision: Management Compensation RETURN MEASURE 1 CASH RETURN ON CAPITAL EMPLOYED Cash Flow from Operations + After-tax Interest Expense + EnLink Distributions TA R G E T = Average Book Equity + Average Net Debt 20% RETURN…
  24. March 2018 Investor Presentation – Devon Energy Corp – slide 24
    Hedge Position As of 12/31/17 OIL DERIVATIVES SWAPS COLLARS VOLUME WEIGHTED VOLUME WEIGHTED AVG. WEIGHTED AVG. PERIOD (MBPD) AVG. PRICE (MBPD) FLOOR PRICE CEILING PRICE (/BBL) (/BBL) (/BBL) FY 2018 49.6 52 51.8 46 56 FY 2019 7.3 52…

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