Q2 2019 Operations Report August 6, 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: 321 MBOED (Q2 2019) Multi-decade growth inventory Revenue: 72% oil Resource depth allows for portfolio…
Unleashing Potential of World-Class Oil Assets U.S. well productivity showcases asset quality Inventory provides multi-decade growth opportunity Source: IHS/Devon. All wells drilled from 2015 through 2019 YTD. Includes operators with…
Executing on Our Disciplined Strategy KEY STRATEGIC OBJECTIVES KEY ACCOMPLISHMENTS 1 Fund high-return projects Oil growth outlook RAISED for 2nd time in 2019 Delaware well productivity drives volumes +58% (pg. 14) 2 Generate free…
Devon Delivers Strong Q2 Outperformance Key Metrics Q2 2019 YoY Change U.S. oil production exceeds top-end of guidance New Devon (MBOD) U.S. oil volumes(1) (MBOD) 142 +13% 142 U.S. OIL PRODUCTION 5,000 (Q2 Guide: 134-141) Oil…
Improved 2019 Capital Spending Outlook Efficiencies driving improved capital outlook Capital efficiency showcased with Q2 results New Devon 2019e E&P capital New Devon upstream capital Q2 2019 CAPITAL SPENDING 9% DELAWARE POWDER…
Optimizing 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 as of 7/31/19…
Marketing Strategy to Maximize Margins Multi-basin portfolio provides market diversification Access to premium gulf coast markets Physical & financial hedges further mitigate risk STACK Q2 oil realizations: 97% of WTI(1) (72% of…
Committed to Return of Capital to Shareholders Dedicated to disciplined allocation of capital Repurchase program accelerates per-share growth Outstanding shares (MM) 10.3 Billion 527 521 70% 491 30% ALLOCATED TO SHARE COUNT…
Building a Fortress Balance Sheet Significant liquidity with no near-term debt maturities Aggressive debt reduction improves financial strength Debt maturities (MM) Net debt (B) (1) 5,300 10.8 SIGNIFICANT FINANCIAL FLEXIBILITY Cash…
Divestiture Program Accelerates Value Creation Resource depth allows for portfolio high-grading SALES PRICE: ACCRETIVE MULTIPLE: (1) CAD 3.8 BILLION 10x CASH FLOW CANADIAN Canada sale closed: CAD 3.8 billion (USD 2.8B) HEAVY OIL…
Strong Execution Driving Improved 2019 Outlook vs. Original Updated Guidance Key Messages Guidance RAISING OIL GROWTH outlook for 2nd time in 2019 U.S. oil growth 18% 20% 400 (1) Basis Point (vs. 2018) Improvement More growth…
Q2 2019 Key Asset Modeling Stats Q2 2019 - ASSET DETAIL NEW DEVON DELAWARE STACK POWDER RIVER EAGLE FORD(3) OTHER NEW DEVON PRODUCTION Oil (MBbl/d) 142 67 31 15 23 6 NGL (MBbl/d) 82 27 40 2 12 1 Gas (MMcf/d) 575 158 313 22 81 1…
Delaware Basin Capital-Efficient Growth Engine Activity diversified by formation across 5 core areas Generating high-return production growth 28 new wells: Avg. IP30 2,100 BOED (7,500 laterals) Production (MBOED) Gas 120…
Development Projects Advancing on Plan DELAWARE BASIN DEVELOPMENT ACTIVITY Q2-2019a Q3-2019e Q4-2019e Q1-2020e Completion Production Eddy Lea N Thistle 10 2019 YTD ACTIVITY 2,500 (6 Leonard wells) BOED/WELL Cat Scratch (Phase 2)…
Step-Change in Well Productivity and Efficiency Gains Development focus driving productivity gains Strong initial rates translating into improving recoveries Avg. 90-day IPs BOED results (20:1) Oil EUR improvement by Northern Delaware…
Delaware Acreage Located in the Best Part of the Play Top-tier well productivity Highest oil content Lower operating costs (less water disposal) IP BOE/Lateral foot Gas-oil ratio, SCF/BBL Water-oil ratio, BBL/BBL DVN Focus Area DVN…
Acreage Trades Optimizing Value of Our Resource Acreage trades enhancing the value of stacked-pay position Leading acreage position in SE New Mexico Graphic for illustrative purposes Net acreage: 250,000 surface acres Potato Cotton…
Powder River Basin Oil Growth Accelerating POWDER RIVER BASIN ACTIVITY Net production increased 29% year over year Super Mario Area Delivering highest margins in portfolio (+18% vs. Q1) RU DILTS 35-4XTLH (Turner) Avg. IP30: 1,900…
Eagle Ford Expanding Resource Opportunity Q2 production averaged 49 MBOED (50% oil) EAGLE FORD ACTIVITY 500 FREE CASH FLOW (MM) 9 new wells online (Avg. IP30: 2,500 BOED) Muir C 4H Eagle Ford Refrac Activity increased to 4…
STACK Optimizing Development Activity Lighter-spaced projects delivered strong results STACK DEVELOPMENT ACTIVITY 17 strong Meramec wells online in Q2 Blaine Kingfisher Top highlights: Everett & Baker projects (see map) Baker 2019…
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