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July 2019 Investor Presentation – Devon Energy Corp

Devon Energy Corp · Jul 2, 2019 · 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. July 2019 Investor Presentation – Devon Energy Corp – slide 1
    Investor Presentation July 2019 NYSE: DVN devonenergy.com
  2. July 2019 Investor Presentation – Devon Energy Corp – slide 2
    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…
  3. July 2019 Investor Presentation – Devon Energy Corp – slide 3
    Unleashing Potential of World-Class Oil Assets U.S. well productivity showcases asset quality SUPERIOR 40% Source: IHS/Devon. All wells drilled from 2015 through April 2019. Includes operators with more than 150 wells. 900 WELL Avg.…
  4. July 2019 Investor Presentation – Devon Energy Corp – slide 4
    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…
  5. July 2019 Investor Presentation – 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. July 2019 Investor Presentation – Devon Energy Corp – slide 6
    Divestiture Program Accelerates Value Creation SALES PRICE: ACCRETIVE MULTIPLE: Resource depth allows for portfolio high-grading CAD 3.8 BILLION 10x CASH FLOW CANADA CLOSED: Exiting Canada for CAD 3.8 billion (USD 2.8B) HEAVY OIL Q2…
  7. July 2019 Investor Presentation – 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. July 2019 Investor Presentation – Devon Energy Corp – slide 8
    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 +200 BASIS…
  9. July 2019 Investor Presentation – Devon Energy Corp – slide 9
    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)…
  10. July 2019 Investor Presentation – Devon Energy Corp – slide 10
    New Devon: Free Cash Flow Yield to Investors 2.3B (1) 3-YEAR CAPITAL PLAN Cumulative Free 10% 2.4 Cash Flow OIL CAGR: 12%-17% 2.0 BREAKEVEN: 46 WTI 8% 1.6B (1) Cumulative Free Cash Flow (B) (BREAKEVEN CALC INCLUSIVE OF…
  11. July 2019 Investor Presentation – Devon Energy Corp – slide 11
    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…
  12. July 2019 Investor Presentation – Devon Energy Corp – slide 12
    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…
  13. July 2019 Investor Presentation – Devon Energy Corp – slide 13
    Delaware Basin Capital-Efficient Growth Engine POTATO BASIN Eddy Lea World-class oil opportunity TODD North Thistle 34 Cat Scratch Fever (8 wells) Top 5 wells IP24 hr: 10 MBOED/well Gaucho Unit (5 wells) Multi-decade growth…
  14. July 2019 Investor Presentation – Devon Energy Corp – slide 14
    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…
  15. July 2019 Investor Presentation – Devon Energy Corp – slide 15
    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…
  16. July 2019 Investor Presentation – Devon Energy Corp – slide 16
    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 &…
  17. July 2019 Investor Presentation – Devon Energy Corp – slide 17
    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…
  18. July 2019 Investor Presentation – Devon Energy Corp – slide 18
    Eagle Ford Expanding Resource Opportunity Significant free cash flow generating asset EAGLE FORD ACTIVITY 543 million over past 12 months 543 FREE CASH FLOW (MM) Delivering highest margin in portfolio LAST 12 MONTHS Initial Eagle…
  19. July 2019 Investor Presentation – Devon Energy Corp – slide 19
    Highly-Regarded ESG Performance OVERALL SCORE TOP-QUARTILE ENVIRONMENT SCORE ENVIRONMENT +43% VERSUS PEER AVG. DVNs SCORE: 2 PEER AVERAGE: 3.5 +38% PERFORMANCE 64 Peer Group Avg. 56 DVNs SCORE: 2 SOCIAL PEER AVERAGE: 3.2…
  20. July 2019 Investor Presentation – Devon Energy Corp – slide 20
    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…
  21. July 2019 Investor Presentation – Devon Energy Corp – slide 21
    Q1 2019 - Key Modeling Stats Q1 2019 - ASSET DETAIL NEW DEVON DELAWARE STACK POWDER RIVER EAGLE FORD(3) OTHER NEW DEVON PRODUCTION Oil (MBbl/d) 138 60 32 15 25 6 NGL (MBbl/d) 73 23 35 2 12 1 Gas (MMcf/d) 581 146 333 18 83 1 Total…

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