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2Q 2018 Investor Presentation – Devon Energy Corp

Devon Energy Corp · Jul 31, 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. 2Q 2018 Investor Presentation – Devon Energy Corp – slide 1
    Q2 2018 Operations Report NYSE: DVN devonenergy.com Contents Key Messages 2 STACK 17 Modeling Stats 3 Eagle Ford 21 Q2 Results 4 Rockies 22 Outlook 6 Barnett Shale 23 Delaware Basin 12 Heavy Oil 24
  2. 2Q 2018 Investor Presentation – Devon Energy Corp – slide 2
    Executing the 2020 Vision Q2 light-oil production exceeds high end of guidance Driven by strong well productivity in Delaware and STACK U.S. light-oil growth running ahead of original budget YTD DEVONS 2020 VISION No change to…
  3. 2Q 2018 Investor Presentation – Devon Energy Corp – slide 3
    Key Modeling Stats KEY METRICS Q2 ACTUALS(1) Q2 GUIDANCE Q2 2018 - ASSET DETAIL DELAWARE STACK ROCKIES EAGLE FORD BARNETT(1) HEAVY OIL U.S. oil (MBbls/d) 136 129 - 134 PRODUCTION Canada oil (MBbls/d) 109 110 - 115 Oil (MBbl/d) 46 35 16 28…
  4. 2Q 2018 Investor Presentation – Devon Energy Corp – slide 4
    Q2 2018 Results U.S. Oil Growth Accelerates U.S. oil production exceeds guidance High-returning U.S. oil production exceeds guidance MBOD 2,000 barrels per day above top end of range 12% increase in oil production vs. Q1 2018 136…
  5. 2Q 2018 Investor Presentation – Devon Energy Corp – slide 5
    Q2 2018 Results - Margins Continue to Expand Production shifting to higher-value product mix Field-level cash flow expands in U.S. resource plays Light-oil production is highest growth product 53% higher compared to Q2 2017 Liquids…
  6. 2Q 2018 Investor Presentation – Devon Energy Corp – slide 6
    2018 Outlook U.S. oil production growth exceeding budget YTD U.S. oil growth exceeding expectations YTD U.S. oil production growth rates (retained assets) On track to deliver 16% growth vs. 2017 +16% (vs. 2017) 200 basis points…
  7. 2Q 2018 Investor Presentation – Devon Energy Corp – slide 7
    Supply Chain Strategy Effectively Mitigating Inflation Devon expects low-to-mid single-digit inflation (vs. 2017) No change to 2018 capital spending outlook SERVICES& SERVICES &SUPPLIES SUPPLIESSECURED SECURED Minimal inflation…
  8. 2Q 2018 Investor Presentation – Devon Energy Corp – slide 8
    Protecting Price & Flow Assurance Majority of U.S. oil production has access to Gulf Coast Access to Premium Gulf Coast Markets markets (premium to WTI pricing) STACK Firm transport: 30 MBOD (Marketlink) Delaware Basin positioned for…
  9. 2Q 2018 Investor Presentation – Devon Energy Corp – slide 9
    EnLink Sale Drives 4 Billion Share-Buyback Program Devon exits EnLink position for 3.125 billion T R A N S A C T I O N D E TA I L S Accretive transaction at 12x cash flow ENLC 115 MM Units No tax leakage associated with sale ENLK 95…
  10. 2Q 2018 Investor Presentation – Devon Energy Corp – slide 10
    Asset Divestiture Update Resource quality & depth allows for high-grading SOUTHERN DELAWARE MI VIDA ASSET PACKAGE of portfolio Key Stats Reeves Production: 3 MBOED Announced 4.2 billion of divestitures to date Net acres: 9,000 Bids…
  11. 2Q 2018 Investor Presentation – Devon Energy Corp – slide 11
    2020 Vision: Next Steps NEXT STEPS TO FURTHER OPTIMIZE RETURNS & CAPITAL-EFFICIENCY FOR SHAREHOLDERS Execute on light-oil growth plans (mid-teens CAGR through 2020) Expand per-unit margins Maintain strong pricing through basis swaps…
  12. 2Q 2018 Investor Presentation – Devon Energy Corp – slide 12
    Delaware Basin Q2 2018 Results Production increased 42% year over year High-returning production growth MBOED Driven by focused activity in economic core of play 79 Oil volumes achieve highest growth (54% vs. Q2 17) 42% GROWTH YEAR…
  13. 2Q 2018 Investor Presentation – Devon Energy Corp – slide 13
    Delaware Infrastructure Supports Profitable Growth Positioned for flow assurance and premium pricing Positioned for flow assurance & premium pricing Q2 oil realizations: 97% of WTI(1) FLOW ASSURANCE PLAN PROTECTING PRICE Swaps & firm…
  14. 2Q 2018 Investor Presentation – Devon Energy Corp – slide 14
    Delaware Development Projects Advancing on Plan Q2-2018a Q3-2018e Q4-2018e Q1-2019e DELAWARE BASIN DEVELOPMENT ACTIVITY Completion Production Seawolf North Thistle 34 (12 well pattern across 4 Wolfcamp intervals) 2018 spud Medusa…
  15. 2Q 2018 Investor Presentation – Devon Energy Corp – slide 15
    Delaware Wolfcamp Program Building Momentum Seawolf project to deliver 1st production in Q3 Drilling operations completed at Fighting Okra Developing Wolfcamp sweet spot in Lea County Project developing 9 Wolfcamp wells 12 wells…
  16. 2Q 2018 Investor Presentation – Devon Energy Corp – slide 16
    Delaware Basin Outlook 2018 capital & production plan on track 2018 Capital Program Remains on Track Q3 volumes impacted by timing of completions Multi-zone projects to accelerate production growth in Q4 2018 Mitigating inflation: no…
  17. 2Q 2018 Investor Presentation – Devon Energy Corp – slide 17
    STACK Q2 2018 Results Production increases 26% year over year High-returning production growth (MBOED) Driven by oil volumes (up 41% vs. Q2 2017) 132 129 Showboat project a key contributor to growth Liquids volumes account for 80%…
  18. 2Q 2018 Investor Presentation – Devon Energy Corp – slide 18
    STACK Access to Premium Markets Expands Margins Oil production has access to premium gulf coast pricing Access to Premium Gulf Coast Markets Marketlink firm transport (30 MBOD): covers 75% of oil In-basin sales have cost-effective…
  19. 2Q 2018 Investor Presentation – Devon Energy Corp – slide 19
    STACK Infill Development Strategy Next 3 projects designed to inform future infill decisions Current Projects to Inform Future Infill Decisions Testing 8, 10 & 12 Meramec wells per drilling unit Showboat 12 wells per drilling unit…
  20. 2Q 2018 Investor Presentation – Devon Energy Corp – slide 20
    STACK Centralized Facilities to Drive Returns Higher Centralized facilities designed to support future regional development projects (see map) SHARED INFRASTRUCTURE PROVIDES STRATEGIC COST ADVANTAGE Central tank battery connected to…
  21. 2Q 2018 Investor Presentation – Devon Energy Corp – slide 21
    Eagle Ford Prolific well results drive strong Q2 oil growth EAGLE FORD OVERVIEW Net production 31% higher vs. Q1 2018 Premium 23 wells average IP30 of 3,200 BOED (60% oil) Oil Pricing (103% of WTI) High-rates driven by improved…
  22. 2Q 2018 Investor Presentation – Devon Energy Corp – slide 22
    Rockies Oil production increased 22% vs. Q2 2017 Q2 POWDER RIVER BASIN ACTIVITY Two Turner wells brought online in Q2 (8k laterals) Turner Niobrara Avg. IP30: 1,450 BOED (75% oil) Super Mario Area RU JFW Fed 13-24s Completing 2…
  23. 2Q 2018 Investor Presentation – Devon Energy Corp – slide 23
    Barnett Shale Johnson County sale completed in May BARNETT SHALE OVERVIEW Gross proceeds: 553 million 2018 ACTIVITY Q2 production: 21 MBOED (80% gas) New Drills Refracs Stable production outlook for remainder of year Driven by…
  24. 2Q 2018 Investor Presentation – Devon Energy Corp – slide 24
    Heavy Oil Q2 volumes impacted by turnaround and royalties Jackfish maintenance impact: 15 MBOD SAGD Sweet Spot Royalties 2 percentage points higher than Q1 18 Net production increases to 120 MBOED in Q3 Turnaround efforts at…

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