Investor Presentation June 2019 NYSE: DVN devonenergy.com
Defining the New Devon World-class U.S. oil portfolio Unrivaled acreage position in top basins New Devon Overview Production: 308 MBOED (Q1 2019) Multi-decade growth inventory Revenue: 84% oil & liquids Resource depth allows for…
Unleashing Potential of World-Class Oil Assets U.S. well productivity showcases asset quality 40% Source: IHS/Devon. All wells drilled from 2015 through April 2019. Includes operators with more than 150 wells. SUPERIOR 900 WELL Avg.…
Next Steps to Optimize New Devons Cost Structure Aggressively pursuing improved cost structure Cost savings initiatives trending ahead of plan New Devon expected cost savings by area vs. 2018 results (MM) Estimated cost savings by area…
Divestiture Program Accelerates Value Creation SALES PRICE: ACCRETIVE MULTIPLE: Resource depth allows for portfolio high-grading CAD 3.8 BILLION 10x CASH FLOW CANADA EXPECTED CLOSING: HEAVY OIL Exiting Canada for CAD 3.8 billion…
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…
Executing on Our 2019 Capital Objectives Focused on top-tier oil development opportunities Raising New Devon 2019 oil production outlook New Devon 2019e E&P capital New Devon U.S oil production (MBOD) 25% (2019 exit rate vs. FY 2018)…
New Devon: 3-Year Performance Targets RETURN ON CAPITAL TARGET: 15% (1) CUMULATIVE FREE CAPITAL PROGRAM CASH FLOW OIL GROWTH COST SAVINGS DEBT TARGET Funded 1.6 (2) 12% 17% 780 MM 1.0x to 1.5x AT 46 WTI BILLION CAGR (FY2018 2021)…
New Devon: Free Cash Flow Yield to Investors (1) 3-YEAR CAPITAL PLAN 2.3B 10% Cumulative Free 2.4 Cash Flow OIL CAGR: 12%-17% 2.0 BREAKEVEN: 46 WTI (1) 8% 1.6B Cumulative Free Cash Flow (B) (BREAKEVEN CALC INCLUSIVE OF ALL…
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 25% 0.36 (2) 491 SHARE COUNT…
Advantaged Financial Position Investment-grade financial position PROTECTING OUR ABILITY Substantial liquidity: 1.3 billion of cash TO EXECUTE Debt-to-EBITDA target: 1.0x to 1.5x Excellent Liquidity Disciplined hedging program…
Delaware Basin Step-Change in Well Productivity Well productivity reaching record highs Delivering high-return growth Average cumulative oil production per well (MBO) Production (MBOED) 107 Gas NGL 300 FOCUS IN 2019 Oil 2018 Boundary…
Delaware Basin A Multi-Decade Growth Platform High return inventory at 50 WTI Massive stacked-pay resource opportunity Gross operated inventory locations generating IRR 20%(1) Potential landing zones by core operating region Potato…
Powder River Basin Growth Set to Accelerate A top-tier emerging oil growth opportunity POWDER RIVER BASIN ACTIVITY Stacked pay position in oil fairway (300k net acres) Super Mario Area Converse Activity targeting Turner, Parkman &…
STACK Optimizing Infill-Development Results Strategic priorities for 2019 capital program STACK DEVELOPMENT ACTIVITY Prioritizing free cash flow over volume growth Kingfisher Upcoming Developments Retain operational flexibility to…
Eagle Ford Expanding Resource Opportunity Significant free cash flow generating asset EAGLE FORD ACTIVITY 543 million over past 12 months FREE CASH FLOW (MM) Delivering highest margin in portfolio 543 LAST 12 MONTHS Initial Eagle…
Highly-Regarded ESG Performance OVERALL SCORE TOP-QUARTILE ENVIRONMENT SCORE ENVIRONMENT +43% VERSUS PEER AVG. DVNs SCORE: 2 PEER AVERAGE: 3.5 PERFORMANCE 64 77 Peer Group Avg. 56 SOCIAL +38% VERSUS PEER AVG. DVNs SCORE:…
Why Own the New Devon World-class U.S. oil portfolio Unrivaled acreage position in top basins New Devon Overview Production: 308 MBOED (Q1 2019) Multi-decade growth inventory Revenue: 84% oil & liquids Resource depth allows for…
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