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Q3 2018 Operations Report – Devon Energy Corp

Devon Energy Corp · Nov 9, 2018 · 21 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. Q3 2018 Operations Report – Devon Energy Corp – slide 1
    Q3 2018 Operations Report NYSE: DVN devonenergy.com Contents Key Messages 2 STACK 15 Outlook 3 Rockies 18 Modeling Stats 7 Eagle Ford & Barnett Shale 19 Q3 Results 8 Heavy Oil 20 Delaware Basin 11
  2. Q3 2018 Operations Report – Devon Energy Corp – slide 2
    Disciplined Growth Strategy KEY STRATEGIC OBJECTIVES KEY ACCOMPLISHMENTS IN 2018 1 Fund high-return projects U.S. oil growth ahead of plan (+200 basis point vs. budget) 2 Generate free cash flow No change to capital spending…
  3. Q3 2018 Operations Report – Devon Energy Corp – slide 3
    2018 Outlook: U.S. Growth Initiatives Ahead of Plan U.S. growth exceeding expectations YTD KEY MESSAGES 2018e oil production growth rates (retained assets) +17% (vs. 2017) U.S. oil growth to accelerate into 2019 No change to…
  4. Q3 2018 Operations Report – Devon Energy Corp – slide 4
    2019 Preview: Keeping Our Discipline OPTIMIZED FOR RETURNS OIL GROWTH SHARE REDUCTION E & P C A P I TA L P R O G R A M U . S . R E TA I N E D A S S E T S O U T S TA N D I N G S H A R E S 2.4-2.7 Billion 15%-19% Growth 20%…
  5. Q3 2018 Operations Report – Devon Energy Corp – slide 5
    Executing the Multi-Year Business Plan 2018e Multi-Year Targets (2017-2020) U.S. oil production +15% 17% CAGR (retained assets) 17% YoY growth Total BOE production +5% 7% CAGR (retained assets) 9% YoY growth in U.S. Per-unit…
  6. Q3 2018 Operations Report – Devon Energy Corp – slide 6
    Strategic Deployment of Excess Cash Industry leading share-repurchase program 4 billion share-repurchase program underway Average outstanding shares (MM) Represents 20% of outstanding shares 527 2.7 billion repurchased to date…
  7. Q3 2018 Operations Report – Devon Energy Corp – slide 7
    Q3 2018 Key Modeling Stats & Outlook KEY METRICS Q3 ACTUALS Q3 2018 - ASSET DETAIL DELAWARE STACK ROCKIES EAGLE FORD BARNETT HEAVY OIL U.S. oil retained (MBbls/d) 125 RETAINED PRODUCTION Canada oil (MBbls/d) 102 Oil (MBbl/d) 44 29 15 31 -…
  8. Q3 2018 Operations Report – Devon Energy Corp – slide 8
    Q3 Results Headlined by Free Cash Flow Generation Total U.S. production exceeds guidance Corporate cost structure continues to improve Driven by Delaware Basin & Eagle Ford G&A declines 42% vs. peak rates Borrowing costs reduced 17%…
  9. Q3 2018 Operations Report – Devon Energy Corp – slide 9
    Capturing the Benefit of Higher NGLs Pricing Flow Assurance to Premium NGLs Markets One of the largest NGLs producers in the U.S. STACK Q3 retained NGLs production: 107 MBbls per day Represents 20% of production mix Delaware Basin…
  10. Q3 2018 Operations Report – Devon Energy Corp – slide 10
    Divestiture Program Accelerates Value Creation Resource quality & depth allows for high-grading T R A N S A C T I O N D E TA I L S of portfolio Announced 4.7 billion of divestitures to date Closed EnLink transaction in July (3.125…
  11. Q3 2018 Operations Report – Devon Energy Corp – slide 11
    Delaware Basin Q3 2018 Results Q3 Production Outperforms Guidance(1) Production increased 45% year over year(1) Retained production (MBOED) 79 (Q3 Guide: 70-75)(1) 4,000 BOE per day above top end of guidance 76 Oil and liquids…
  12. Q3 2018 Operations Report – Devon Energy Corp – slide 12
    Delaware Wolfcamp Program Delivers Prolific Results Well productivity at Seawolf trending above plan WOLFCAMP DEVELOPMENT PROGRAM BUILDING MOMENTUM Wolfcamp sweet spot in southern Lea County Current Projects Q3 WOLFCAMP WELLS(1)…
  13. Q3 2018 Operations Report – Devon Energy Corp – slide 13
    Delaware Infrastructure Supports Profitable Growth Premium oil pricing and flow assurance Positioned for flow assurance & premium pricing Q3 oil realizations: 97% of WTI(1) FLOW ASSURANCE PLAN STRONG PRICE REALIZATIONS Swaps & firm…
  14. Q3 2018 Operations Report – Devon Energy Corp – slide 14
    Delaware Basin Raising Growth Outlook High-return oil growth positioned to accelerate Raising 2018 production growth estimates Retained production (MBOED) 40% oil growth Increasing 2018 exit rate growth: 90 MBOED(1) RAISING GUIDANCE…
  15. Q3 2018 Operations Report – Devon Energy Corp – slide 15
    STACK Initial Infill Spacing Results Q3 net production up 16% year over year Initial Infill Spacing Results Dewey County assets sold in Q3 (7 MBOED) Current Projects Showboat Devon Acreage 12 wells/unit (avg. lateral: 7,000) NGLs…
  16. Q3 2018 Operations Report – Devon Energy Corp – slide 16
    STACK Next Steps to Optimize Development Returns Learnings from high-density infill tests UPCOMING STACK DEVELOPMENT ACTIVITY Initial results indicate spacing was too tight Kingfisher Developments Online Showboat Flowback approach…
  17. Q3 2018 Operations Report – Devon Energy Corp – slide 17
    STACK Outlook Upcoming activity highly accretive to corporate PRODUCTION GROWTH TO RESUME IN 2019 return targets Retained production (MBOED) Q4 activity: 20 to 25 new wells online KEY ITEMS IMPACTING Q4 Asset sales: 7 MBOED 135 -…
  18. Q3 2018 Operations Report – Devon Energy Corp – slide 18
    Rockies An Emerging Growth Opportunity Net production increased 17% vs. Q2 2018 RECENT POWDER RIVER BASIN ACTIVITY Oil production 75% of product mix Turner Niobrara RU JFW Fed 13 3X & 4X Powder River barrels receive WTI pricing…
  19. Q3 2018 Operations Report – Devon Energy Corp – slide 19
    Eagle Ford and Barnett Shale EAGLE FORD OVERVIEW BARNETT SHALE OVERVIEW 10% FREE CASH FLOW 500 2018 Dow JV Activity OIL GROWTH MILLION IN 2018e (VS Q2 2018) Dewitt Divest Details Sale price: 50 million Q3 Results Wise…
  20. Q3 2018 Operations Report – Devon Energy Corp – slide 20
    Heavy Oil Overview & Outlook Q3 net production: 104,000 Boe per day SAGD Sweet Spot Jackfish 1 maintenance impact: 15 MBOD Jackfish 2&3 produced at nameplate capacity LOE per Boe declined 16% vs. Q2 2018 Full-scale operations…
  21. Q3 2018 Operations Report – Devon Energy Corp – slide 21
    Heavy Oil Mitigating Pricing Pressures in 2019 Actively adding WCS financial swaps in 2019 Canadian Heavy Oil Marketing Opportunities (21 MBOD at 23 off WTI in 1H 2019) Jackfish Secured firm transport to Gulf Coast WCS Pricing…

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