Investor Presentation August 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% (vs. Q2 2018) 2 Generate…
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 (Q2 Guide: 134-141) U.S. OIL PRODUCTION 5,000 Oil…
Improved 2019 Capital Spending Outlook Efficiencies driving improved capital outlook Capital efficiency showcased with 1H 2019 results New Devon 2019e E&P capital New Devon upstream capital 1H 2019 CAPITAL SPENDING 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 (1) RAISING OIL GROWTH outlook for 2nd time in 2019 U.S. oil growth 18% 20% 400 Basis Point (vs. 2018) Improvement More growth…
Delaware Basin Capital-Efficient Growth Engine A world-class oil resource opportunity DELAWARE BASIN DEVELOPMENT ACTIVITY Stacked pay position across 250,000 net acres 2019 YTD ACTIVITY Key 2019 Projects Concentrated in economic…
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 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) Graphic for illustrative purposes 17-YEAR INVENTORY Potato…
Powder River Basin Oil Growth Accelerating A top-tier emerging oil growth opportunity POWDER RIVER BASIN ACTIVITY Stacked pay position in oil fairway (300k net acres) RU DILTS 35-4XTLH (Turner) Super Mario Area Avg. IP30: 1,900 BOED…
Eagle Ford Expanding Resource Opportunity Significant free cash flow generation EAGLE FORD ACTIVITY FREE CASH FLOW (MM) 487 million over last 12 months Margins benefit from premium Gulf Coast pricing 487 Initial Eagle Ford Refracs…
STACK Optimizing Development Activity Strategic priorities for 2019 capital program STACK DEVELOPMENT ACTIVITY Prioritizing free cash flow over volume growth Blaine Kingfisher Expect to bring online 75 new wells in 2019 2019 Meramec…
Highly-Regarded ESG Performance OVERALL PERCENTILE TOP-QUARTILE ENVIRONMENT SCORE ENVIRONMENT +47% VERSUS PEER AVG. DVNs SCORE: 2 PEER AVERAGE: 3.8 PERFORMANCE 64 85 Peer Group Avg. 56 SOCIAL +38% VERSUS PEER AVG. DVNs…
Why Own 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…
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…
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