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Scotia Howard Weil Annual Energy Conference – Devon Energy Corp

Devon Energy Corp · Mar 25, 2019 · 16 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. Scotia Howard Weil Annual Energy Conference – Devon Energy Corp – slide 1
    Scotia Howard Weil Energy Conference March 25, 2019 NYSE: DVN devonenergy.com
  2. Scotia Howard Weil Annual Energy Conference – Devon Energy Corp – slide 2
    Devons Competitive Advantage World-class U.S. oil portfolio Disciplined returns-driven strategy Generating free cash flow Investment-grade financial position Investor Presentation 3
  3. Scotia Howard Weil Annual Energy Conference – Devon Energy Corp – slide 3
    Completing Transformation to a U.S. Oil Growth Company New Devon Overview Sharpens focus on world-class U.S. oil assets Production: 296 MBOED (Q4 2018) U.S. oil business has achieved operating scale Revenue: 84% oil & liquids Oil…
  4. Scotia Howard Weil Annual Energy Conference – Devon Energy Corp – slide 4
    Unleashing Potential of World-Class Oil Assets U.S. well productivity showcases asset quality +40% Source: IHS/Devon. All wells drilled since 2015 and includes operators with more than 100 wells. SUPERIOR 900 WELL Avg. 90-Day IPs…
  5. Scotia Howard Weil Annual Energy Conference – Devon Energy Corp – slide 5
    Inventory Supports Sustainable Long-Term Growth High-return inventory potential(1) Gross operated inventory locations 6,500 operated 20 YEAR INVENTORY (AT CURRENT ACTIVITY PACE) locations (Avg. lateral…
  6. Scotia Howard Weil Annual Energy Conference – Devon Energy Corp – slide 6
    Next Steps to Optimize New Devon Cost Structure Aggressively pursuing improved cost structure Timing of annual cost savings New Devon expected cost savings by area vs. 2018 results (MM) Cumulative estimated annual cost savings (MM) 800…
  7. Scotia Howard Weil Annual Energy Conference – Devon Energy Corp – slide 7
    Disciplined Returns-Driven Strategy KEY STRATEGIC OBJECTIVES APPROACH TO THE CURRENT ENVIRONMENT WTI PRICE(1) 1 Fund high-return projects Maintain financial strength and 40 operational continuity (New Devon FCF breakeven below 40 in…
  8. Scotia Howard Weil Annual Energy Conference – Devon Energy Corp – slide 8
    Committed to Return of Capital to Shareholders Repurchase program accelerates per-share growth Delivering sustainable dividend growth Outstanding shares (MM) Annual divided per share 527 521 30% 0.36 (1) 491 SHARE COUNT…
  9. Scotia Howard Weil Annual Energy Conference – Devon Energy Corp – slide 9
    2019 Capital Objectives Focused on top-tier oil development opportunities Positioned for high-return growth in 2019 20% 2019e New Devon E&P capital New Devon U.S oil production (MBOD) (2019 exit rate vs. FY 2018) DELAWARE STACK 47%…
  10. Scotia Howard Weil Annual Energy Conference – Devon Energy Corp – slide 10
    Delaware Basin Capital-Efficient Growth Engine POTATO BASIN THISTLE/GAUCHO Eddy Lea World-class oil opportunity TODD Boundary Raider (2 Bone Spring wells) Tomb Raider (3 Wolfcamp wells) Avg. IP24 hr: 12 MBOED/well Avg. IP30: 3,500…
  11. Scotia Howard Weil Annual Energy Conference – Devon Energy Corp – slide 11
    Step-Change in Delaware Basin Well Productivity Well productivity reaching record highs Significant growth platform at 50 WTI Average cumulative oil production per well (MBO) Gross operated inventory locations generating IRR 20%(1) 300…
  12. Scotia Howard Weil Annual Energy Conference – Devon Energy Corp – slide 12
    Focusing on Wolfcamp & Bone Spring Projects in 2019 Wolfcamp program: 45% of 2019 drilling activity Development of Bone Spring in Todd area underway Six key projects underway in Rattlesnake area Cats activity offsetting prolific…
  13. Scotia Howard Weil Annual Energy Conference – Devon Energy Corp – slide 13
    New Devon: 3-Year Performance Targets RETURN ON CAPITAL TARGET: 15% (1) (At 50 WTI & 3 HH) CUMULATIVE FREE CAPITAL PROGRAM CASH FLOW OIL GROWTH COST SAVINGS DEBT TARGET Funded 1.6 12% 17% 780 MM 1.0x to 1.5x At 46 WTI BILLION CAGR…
  14. Scotia Howard Weil Annual Energy Conference – Devon Energy Corp – slide 14
    New Devon: Free Cash Flow Yield to Investors (1) 2.3B 10% 2.4 3-YEAR CAPITAL PLAN Cumulative Free Cash Flow 2.0 OIL CAGR: 12%-17% 8% (1) BREAKEVEN: 46 WTI 1.6B Cumulative Free Cash Flow (B) Free Cash Yield (Annual Avg.)…
  15. Scotia Howard Weil Annual Energy Conference – Devon Energy Corp – slide 15
    Attractive Entry Point for World-Class Oil Business Peer trading multiples New Devon: trading at significant discount 2019e EV/EBITDAX(1) in Billions 9.0x 24 Peer Multiple * New DVN EBITDAX Valuation (7.0x * 2.5B) Gap 8.0x Peer…
  16. Scotia Howard Weil Annual Energy Conference – Devon Energy Corp – slide 16
    Why Own New Devon New Devon Overview World-class U.S. oil portfolio Production: 296 MBOED (Q4 2018) Unrivaled acreage position in top basins Revenue: 84% oil & liquids Multi-decade inventory to drive sustainable growth Oil growth…

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