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1Q 2018 Operations Report – Devon Energy Corp

Devon Energy Corp · May 1, 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. 1Q 2018 Operations Report – Devon Energy Corp – slide 1
    Q1 2018 Operations Report NYSE: DVN devonenergy.com Contents Key Messages 2 STACK 15 Modeling Stats 3 Rockies 21 Q1 Results 4 Heavy Oil 22 Outlook 5 Eagle Ford 23 Delaware Basin 9 Barnett Shale 24
  2. 1Q 2018 Operations Report – Devon Energy Corp – slide 2
    Executing the 2020 Vision Raising U.S. oil production guidance for 2018 Q1 production at high end of guide Record-setting well productivity driving strong returns Devons 2020 Vision Executing multi-zone projects ahead of plan Maximize…
  3. 1Q 2018 Operations Report – Devon Energy Corp – slide 3
    Key Modeling Stats KEY METRICS Q1 ACTUALS(1) Q1 GUIDANCE Q1 2018 - ASSET DETAIL DELAWARE STACK ROCKIES EAGLE FORD BARNETT(1) HEAVY OIL U.S. oil (MBbls/d) 122 117 - 122 PRODUCTION Canada oil (MBbls/d) 129 125 - 130 Oil (MBbl/d) 36 35 18 23…
  4. 1Q 2018 Operations Report – Devon Energy Corp – slide 4
    Q1 2018 Results U.S. oil production at top end of guidance Delaware oil growth STACK oil growth MBOD MBOD Delaware & STACK deliver strong growth 41 35 Delaware March oil production 30% higher vs. Q4 2017 32 30 STACK oil…
  5. 1Q 2018 Operations Report – Devon Energy Corp – slide 5
    2018 Outlook Raising 2018 U.S. oil production guidance Improving 2018 oil production outlook U.S. oil production (retained assets) (MBOD) Expect 16% growth vs. 2017 (30% exit-rate growth) 145 - 150 Guidance increased by 200 basis…
  6. 1Q 2018 Operations Report – Devon Energy Corp – slide 6
    2020 Vision: Driving 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…
  7. 1Q 2018 Operations Report – Devon Energy Corp – slide 7
    Shareholder-Friendly Initiatives 1 billion share-repurchase program underway KEY INITIATIVES UNDERWAY 204 million repurchased to date (6.2 million shares) Average price: 33 per share Expect to be completed by year end 1 Billion…
  8. 1Q 2018 Operations Report – Devon Energy Corp – slide 8
    Portfolio Simplification Strategy Resource quality & depth allows for high- grading of portfolio Heavy Oil Potential for 5 billion of asset disposals Divest proceeds to date: 1.1 billion Committed to bringing forward appropriate…
  9. 1Q 2018 Operations Report – Devon Energy Corp – slide 9
    Delaware Basin Q1 2018 Results March production averages 73 MBOED High-returning production growth 73 Oil volumes 30% higher vs. Q4 2017 (MBOED) Driven by focused development program 64 Generating best returns in portfolio 60…
  10. 1Q 2018 Operations Report – Devon Energy Corp – slide 10
    Initial Multi-Zone Projects Delivering Strong Results Frac efficiencies reaching up to 15 stages/day ANACONDA: 1 MM SAVINGS PER WELL THISTLE/GAUCHO Anaconda project savings: 1 MM per well Drilling 25% Anaconda 10 wells online…
  11. 1Q 2018 Operations Report – Devon Energy Corp – slide 11
    World-Class Rattlesnake Developments Advancing Completion work underway at Seawolf project PROLIFIC WOLFCAMP RESULTS ACROSS RATTLESNAKE AREA 12 wells targeting multiple Wolfcamp intervals Lomas Rojas 8 wells Drilling efficiency…
  12. 1Q 2018 Operations Report – Devon Energy Corp – slide 12
    Delaware Development Projects Advancing on Plan Q1-2018a Q2-2018e Q3-2018e Q4-2018e DELAWARE BASIN DEVELOPMENT ACTIVITY Completion Production Boomslang (11 well pattern across 3 intervals in the Leonard and Bone Spring) North…
  13. 1Q 2018 Operations Report – Devon Energy Corp – slide 13
    Delaware Basin Certainty of Execution Firm transport and basis swaps protect price realizations Protecting Price & Flow Assurance Midland basis swaps protect 50% of oil production 40% of oil delivered on firm transport to Gulf Coast…
  14. 1Q 2018 Operations Report – Devon Energy Corp – slide 14
    Delaware Basin Outlook Significant resource opportunity 15% sequential quarter production growth expected in Q2 (300,000 net surface acres with 15 development targets) Capital spending on track with 2018 budget (725 million)…
  15. 1Q 2018 Operations Report – Devon Energy Corp – slide 15
    STACK Q1 2018 Results Oil production increases 68% from Q1 17 RECORD-SETTING STACK WELL PRODUCTIVITY 6 Coyote development delivering record flow rates 7 5 Top wells average IP30 of 3,500 BOED 1 2 3 4 Field-level cash flow…
  16. 1Q 2018 Operations Report – Devon Energy Corp – slide 16
    STACK Infill Development Strategy Next 3 projects designed to inform future infill decisions Current Projects to Inform Future Infill Decisions Testing 9, 10 & 12 Meramec wells per drilling unit Showboat 12 wells per drilling unit…
  17. 1Q 2018 Operations Report – Devon Energy Corp – slide 17
    STACK Development Activity Progressing STACK DEVELOPMENT ACTIVITY Q1-2018a Q2-2018e Q3-2018e Q4-2018e Completion Production Showboat Coyote Flowing back (7 well development in the Meramec) Coyote 12 wells per unit 4 of 7 wells…
  18. 1Q 2018 Operations Report – Devon Energy Corp – slide 18
    STACK Infill Projects Delivering Efficiencies Record flow rates achieved at Coyote project Showboat cost savings: 1.5 million per well Project developing Lower Meramec sweet spot 30% drilling efficiencies (500k savings per well)…
  19. 1Q 2018 Operations Report – Devon Energy Corp – slide 19
    STACK Certainty of Execution Improved oil takeaway infrastructure boosts pricing (1/Bbl uplift) Protecting Price and Flow Assurance Majority of oil planned to be connected to gathering systems (Black Coyote online in April)…
  20. 1Q 2018 Operations Report – Devon Energy Corp – slide 20
    STACK Outlook Activity shifting to economic core High-returning production growth Production (MBOED) 140 (40% oil growth) WOODFORD MERAMEC ACTIVIT Y 2018 E&P 95% 117 129 ACTIVITY Q4 2017 Q1 2018 Q2 2018e 2H 2018e 2018e…
  21. 1Q 2018 Operations Report – Devon Energy Corp – slide 21
    Rockies Oil production increased 17% vs. Q4 2017 KEY POWDER RIVER BASIN ACTIVITY Parkman/Teapot activity drives growth Q1 2018 Activity T Cosner Fed 29-1XPH Parkman Key Wells to Date Low costs drive strong returns (5 MM per well)…
  22. 1Q 2018 Operations Report – Devon Energy Corp – slide 22
    Heavy Oil Oil production at high end of guidance in Q1 SAGD Sweet Spot Q2 volumes impacted by turnaround and royalties Jackfish turnaround impact: 15 MBOD Higher royalties: 3 MBOD WCS hedges protecting cash flow in 2018 50%…
  23. 1Q 2018 Operations Report – Devon Energy Corp – slide 23
    Eagle Ford Strong production growth in Q2 (chart below) EAGLE FORD HIGHLIGHTS Two frac crews currently on site Two Completion Crews 25 wells to be tied-in 25 Wells Expected Online in Q2 Plan in place to stabilize production 15…
  24. 1Q 2018 Operations Report – Devon Energy Corp – slide 24
    Barnett Shale Johnson County divestiture announced 2018 BARNETT SHALE ACTIVITY OUTLOOK Proceeds: 553 million (closing late May) Q1 production: 33 MBOED (18% liquids) Dow JV Acreage 2018e activity: 20 wells drilled Partnership…

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