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October 2018 Investor Presentation – Devon Energy Corp

Devon Energy Corp · Oct 5, 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. October 2018 Investor Presentation – Devon Energy Corp – slide 1
    Investor Presentation October 2018 NYSE: DVN devonenergy.com
  2. October 2018 Investor Presentation – Devon Energy Corp – slide 2
    Investment Thesis World-class N.A. onshore portfolio Accelerating free cash flow generation Multi-decade development inventory Returning significant cash to shareholders Disciplined, high-return growth strategy Investment-grade…
  3. October 2018 Investor Presentation – Devon Energy Corp – slide 3
    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…
  4. October 2018 Investor Presentation – Devon Energy Corp – slide 4
    2020 Vision: Driving Significant Cash Flow Growth Growing higher-value production Cost savings to expand margins U.S. Oil Production (MBOD) Per-Unit Cost (/BOE) 195 20% COST SAVINGS MID-TEENS CAGR 15 165 DRIVEN BY 25% CAGR IN…
  5. October 2018 Investor Presentation – Devon Energy Corp – slide 5
    Shareholder-Friendly Initiatives 4 billion share-repurchase program underway KEY INITIATIVES UNDERWAY Represents 20% of shares outstanding 50 million shares repurchased to date 4 Billion Repurchase program to be completed by early…
  6. October 2018 Investor Presentation – Devon Energy Corp – slide 6
    Divestiture Program: Next Steps Resource quality & depth allows for high-grading Marketing Non-Core Assets Across the U.S. of portfolio Announced 4.4 billion of divestitures to date Rockies CO2 Closed EnLink transaction in July…
  7. October 2018 Investor Presentation – Devon Energy Corp – slide 7
    Significant Financial Strength Investment-grade credit ratings PROTECTING OUR ABILITY TO EXECUTE Substantial liquidity: 1.5 billion of cash Excellent Liquidity Cash: 1.5B Low Net debt to EBITDA target: 1.0x to 1.5x Leverage Net…
  8. October 2018 Investor Presentation – Devon Energy Corp – slide 8
    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…
  9. October 2018 Investor Presentation – Devon Energy Corp – slide 9
    Updated 2018 Outlook U.S. oil production exceeding budget YTD Positioned for significant cash flow expansion On track to deliver 16% growth vs. 2017 Driven by high-margin U.S. oil growth 200 basis points above original budget G&A and…
  10. October 2018 Investor Presentation – Devon Energy Corp – slide 10
    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…
  11. October 2018 Investor Presentation – Devon Energy Corp – slide 11
    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…
  12. October 2018 Investor Presentation – Devon Energy Corp – slide 12
    Protecting Pricing & 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 Delaware Basin positioned for attractive oil pricing Firm…
  13. October 2018 Investor Presentation – Devon Energy Corp – slide 13
    Delaware Basin Franchise Asset POTATO BASIN North Thistle 34 2018 Spud World-class oil opportunity TODD Medusa Potato Basin Cobra Completing Tomb Raider Multi-decade growth platform Up to 15 target intervals COTTON DRAW…
  14. October 2018 Investor Presentation – Devon Energy Corp – slide 14
    Delaware Basin Advantaged State-Line Area Activity targeting the most prolific zones Delivering strong well productivity 2018 E&P ACTIVITY Leonard Bone Spring Wolfcamp AVERAGE 30-DAY IP: 2,000 2018 WELLS TIED-IN YTD…
  15. October 2018 Investor Presentation – Devon Energy Corp – slide 15
    Delaware Basin Significant Growth Opportunity Multi-decade oil growth opportunity Massive stacked-pay potential 300k net surface acres focused in state-line area 1.3 million net effective acres (up to 15 target intervals)…
  16. October 2018 Investor Presentation – Devon Energy Corp – slide 16
    STACK Franchise Asset Blaine Kingfisher Best-in-class acreage position Showboat(1) Avg. 30-Day IP 1,800 BOED Cascade 600k net acres by formation Scott Northwoods 2018 Spud 2018 Spud Safari Up to 4 target intervals per unit…
  17. October 2018 Investor Presentation – Devon Energy Corp – slide 17
    STACK Infill Development Strategy Initial Coyote project delivers strong rates (IP30 4,400 BOED) Current Projects to Inform Future Activity Showboat Next 3 projects designed to refine future infill spacing 12 wells per drilling…
  18. October 2018 Investor Presentation – Devon Energy Corp – slide 18
    Rockies An Emerging Oil Growth Asset RECENT POWDER RIVER BASIN ACTIVITY Emerging oil opportunity continues to deliver Converse strong results Turner Niobrara Super Mario Area Oil production up 22% year over year RU JFW Fed 13-24s…
  19. October 2018 Investor Presentation – Devon Energy Corp – slide 19
    Investment Thesis World-class N.A. onshore portfolio Accelerating free cash flow generation Multi-decade development inventory Returning significant cash to shareholders Disciplined, high-return growth strategy Investment-grade…
  20. October 2018 Investor Presentation – Devon Energy Corp – slide 20
    Thank you. For additional information see our Q2 Operations Report Thank you.
  21. October 2018 Investor Presentation – Devon Energy Corp – slide 21
    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…
  22. October 2018 Investor Presentation – Devon Energy Corp – slide 22
    Eagle Ford EAGLE FORD OVERVIEW Prolific well results drive strong Q2 oil growth Premium Net production 31% higher vs. Q1 2018 Oil Pricing (103% of WTI) Margins benefit from premium LLS oil pricing 25% Oil Q2 oil realizations 103%…
  23. October 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. October 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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