Devons 2020 Vision TOP OBJECTIVE: OPTIMIZE RETURNS & DELIVER CAPITAL-EFFICIENT, CASH-FLOW GROWTH Reduce per-unit cash costs by 15% Focus on capital efficiency Deliver 25% oil production CAGR in Delaware & STACK Management incentives…
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…
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…
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
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…
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…
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…
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…
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…
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…
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…
STACK Multi-Zone Activity Underway 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 wells)…
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…
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:…
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…
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…
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…
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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