Devons 2020 Vision TOP OBJECTIVE: OPTIMIZE RETURNS & DELIVER CAPITAL-EFFICIENT, CASH-FLOW GROWTH Leverage technology to optimize base production Maximize cash flow Improve margins by aggressively lowering cost structure Enhance…
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…
Portfolio Simplification Strategy Resource quality & depth allows for high- grading of portfolio Heavy Oil Announced 4 billion of divestitures to date Monetized entire EnLink ownership (3.125 billion) Upstream asset sales: 1.1…
Shareholder-Friendly Initiatives 4 billion share-repurchase program underway KEY INITIATIVES UNDERWAY Represents 20% of shares outstanding Authorization in place through 2019 4 Billion Expect to utilize accelerated share-repurchase…
Significant Financial Strength Investment-grade credit ratings PROTECTING OUR ABILITY TO EXECUTE Substantial liquidity: 1.4 billion of cash Excellent Liquidity Cash: 1.4B Low Net debt to EBITDA target: 1.0x to 1.5x Leverage Net…
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…
Updated 2018 Outlook Raised 2018 U.S. oil production guidance Positioned for significant cash flow expansion 16% growth vs. 2017 (30% exit-rate growth) Driven by high-margin U.S. oil growth Guidance increased by 200 basis points…
The Next Frontier Of Efficiency Gains Multi-zone projects to drive returns higher Increase rig & frac crew efficiencies Centralized facilities improve cost structure Higher recoveries from stacked pay Focused activity maintains…
Securing The Supply Chain Services and supplies secured through 2019 SERVICES& &SUPPLIES SUPPLIESSECURED SECURED SERVICES Dedicated frac crews in Delaware & STACK Development efficiencies driving rig reductions Self-sourcing…
Protecting Price & Flow Assurance Premium Pricing in the Delaware Basin Majority of U.S. oil production has access to gulf coast markets (significant premium to WTI pricing) Delaware Basin positioned for attractive oil pricing…
STACK Franchise Asset Blaine Kingfisher Best-in-class acreage position Showboat Flowing back Minnie Haha 600k net acres by formation Coyote Avg. 30-Day IP 4,400 BOED Cascade 2018 Spud Kraken Up to 4 target intervals per unit 2018…
Thank you. For additional information see our Q1 Operations Report Thank you.
Delaware Basin Advantaged State-Line Area Activity targeting the most prolific zones Delivered the top wells in Delaware Basin history Boundary Raider IP24: 12,868 BOED (82% oil) 2018 Leonard 6-7 Com 212H E&P Bone Spring ACTIVITY…
Delaware Basin Significant Growth Opportunity Massive stacked-pay potential Multi-decade oil growth opportunity 300k net surface acres focused in state-line area 1.3 million net effective acres (up to 15 target intervals) Significant…
Rockies An Emerging Oil Growth Asset KEY POWDER RIVER BASIN ACTIVITY Premier Powder River Basin position T Cosner Fed 29-1XPH Q1 2018 Activity Q1 net production: 23 MBOED Key Wells to Date Parkman 30-Day IP: 1,850 BOED Upcoming…
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%…
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% faster drill times vs. prior activity Average IP30:…
STACK Meramec Drives Strong Oil Growth Activity concentrated in over-pressured oil window Activity shifting to economic core (best returns in play) WOODFORD MERAMEC ACTIVIT Y Multi-zone projects to accelerate production growth…
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…
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…
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…
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