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3Q 2019 Operations Report – Devon Energy Corp

Devon Energy Corp · Nov 5, 2019 · 22 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. 3Q 2019 Operations Report – Devon Energy Corp – slide 1
    Q3 2019 Operations Report November 5, 2019 NYSE: DVN devonenergy.com
  2. 3Q 2019 Operations Report – Devon Energy Corp – slide 2
    Q3 Summary Efficiently Advancing the Business FINANCIAL RESULTS Operating cash flow INCREASED 22% to 597 million (vs. Q2 2019) Repurchased 550 million of shares in Q3 (4.8 billion since 2018) Outstanding share count to DECLINE 30% by…
  3. 3Q 2019 Operations Report – Devon Energy Corp – slide 3
    Q3 2019 Financial Performance Key Metrics (1) Q3 2019 Change (vs Q219) Profitability continues to expand Share count (MM) and EBITDAX (MM) GAAP earnings (per share) 0.35 -13% Share count DOWN 27% 550 700 Core earnings(2) (per…
  4. 3Q 2019 Operations Report – Devon Energy Corp – slide 4
    Q3 2019 Operating Performance Q3 2019 Change (vs. Q318) U.S. oil production exceeds guidance Key Metrics (Continuing Ops.) (Reported Results) (3) New Devon (MBOD) 148 U.S. OIL PRODUCTION 4,000 (Q3 Guide: 141-147) WTI price…
  5. 3Q 2019 Operations Report – Devon Energy Corp – slide 5
    Operational Success Driving Improved 2019 Outlook vs. Original Updated Guidance Key Messages Guidance RAISING OIL GROWTH outlook for 3rd time in 2019 U.S. oil growth 20% 21% 550 (1) Basis Point (vs. 2018) Improvement Delaware,…
  6. 3Q 2019 Operations Report – Devon Energy Corp – slide 6
    Strategic Framework for the 2020 Planning Cycle CAPITAL ALLOCATION PRIORITIES GREATER THAN Maintain capital DISCIPLINE 1 Maintain base production 50 Free cash flow accelerates Balance GROWTH & FREE CASH FLOW 2 Fund dividends 50…
  7. 3Q 2019 Operations Report – Devon Energy Corp – slide 7
    Preliminary 2020 Outlook OPTIMIZED FOR RETURNS OIL GROWTH SHARE REDUCTION E & P C A P I TA L P R O G R A M NEW DEVON ASSETS SHARE COUNT VS. 2019 1.7-1.9 Billion 7%-9% Growth 6%-8% Reduction D E S I G N E D F O R U LT R A - LO W D…
  8. 3Q 2019 Operations Report – Devon Energy Corp – slide 8
    2020 Plan Positioned for Attractive Free Cash Flow FY2020 OUTLOOK 750 OIL GROWTH: 7%-9% 675 MILLION 10% BREAKEVEN: 48 WTI (Assumes 2.50 Henry Hub) 8% 2020e Free Cash Flow (MM) 2020e Free Cash Flow Yield EXCLUDES BARNETT…
  9. 3Q 2019 Operations Report – Devon Energy Corp – slide 9
    2019 & 2020 Outlook = Improved Capital Efficiency Efficiencies driving lower capital requirements Oil production remains on track New Devon 2019-2020 cumulative upstream capital (B) New Devon 2019-2020 cumulative oil production…
  10. 3Q 2019 Operations Report – Devon Energy Corp – slide 10
    Committed to Return of Capital to Shareholders Dedicated to disciplined allocation of capital Repurchase program accelerates per-share growth Outstanding basic shares (MM) 11.0 Billion 527 521 70% 491 30% ALLOCATED TO SHARE…
  11. 3Q 2019 Operations Report – Devon Energy Corp – slide 11
    Building a Fortress Balance Sheet Significant liquidity with no near-term debt maturities Aggressive debt reduction improves financial strength Debt maturities (MM) Net debt(1) (B) 4,700 10.7 SIGNIFICANT FINANCIAL FLEXIBILITY Cash…
  12. 3Q 2019 Operations Report – Devon Energy Corp – slide 12
    Divestiture Program Accelerates Value Creation Resource depth allows for portfolio high-grading SALES PRICE: ACCRETIVE MULTIPLE: CAD 3.8 BILLION 10x CASH FLOW CANADIAN Cotton Draw midstream partnership formed HEAVY OIL CLOSED: Q2…
  13. 3Q 2019 Operations Report – Devon Energy Corp – slide 13
    Highly-Regarded ESG Performance For additional information see our 2019 Sustainability Report ENVIRONMENT +48% VERSUS PEER AVG. DVNs SCORE: 2 PEER AVERAGE: 3.8 SOCIAL +40% VERSUS PEER AVG. DVNs SCORE: 2 PEER AVERAGE:…
  14. 3Q 2019 Operations Report – Devon Energy Corp – slide 14
    Asset-Level Modeling Stats Q3 2019 - ASSET DETAIL NEW DEVON DELAWARE STACK POWDER RIVER EAGLE FORD(1) OTHER PRODUCTION Oil (MBbl/d) 148 70 32 18 22 6 NGL (MBbl/d) 79 28 37 2 11 1 Gas (MMcf/d) 588 167 317 28 75 1 Total (MBoe/d) 325…
  15. 3Q 2019 Operations Report – Devon Energy Corp – slide 15
    Delaware Basin Capital-Efficient Growth Engine Leonard Shale HEADLINES Q3 operating performance Generating high-return production growth Production (MBOED) Represents 50% of new wells online (15 wells in Q3) Gas 127 Leonard well…
  16. 3Q 2019 Operations Report – Devon Energy Corp – slide 16
    Delaware Basin Step-Change in Operating Results Development focus driving best-in-class wells Drilling and completion efficiencies accelerate 90-day oil IPs, BOD vs. improvement in performance (2019 vs. 2018) Drilled and completed feet…
  17. 3Q 2019 Operations Report – Devon Energy Corp – slide 17
    Delaware Development Projects Advancing on Plan DELAWARE BASIN DEVELOPMENT ACTIVITY High-confidence projects to drive strong Q4 growth Eddy Lea Upcoming developments Q3 2019 KEY WELLS Q3-2019a Q4-2019e Q1-2020e Q2-2020e 2,100 Belloq…
  18. 3Q 2019 Operations Report – Devon Energy Corp – slide 18
    Todd Area A Significant Long-Term Growth Platform Delivering highly-economic results across MULTIPLE formations TODD DEVELOPMENT AREA Charged reservoir with stacked-pay potential Tomb Raider (4,700 lateral) Tomb Raider Large,…
  19. 3Q 2019 Operations Report – Devon Energy Corp – slide 19
    Powder River Basin Delivering Robust Oil Growth High-margin oil volume growth accelerating Achieving operational EFFICIENCIES with Turner program Turner program driving volume growth Ranked 1 in industry for IP90 well performance…
  20. 3Q 2019 Operations Report – Devon Energy Corp – slide 20
    Niobrara An Emerging Oil Resource Play NIOBRARA POWDER RIVER BASIN NIOBRARA ACTIVITY Niobrara acreage resides in the core of oil fairway TYPE LOG Appraisal Wells Significant potential with 200,000 net acres Spacing Tests High…
  21. 3Q 2019 Operations Report – Devon Energy Corp – slide 21
    Eagle Ford Operational Momentum Established Strong production MOMENTUM heading into Q4 2019 EAGLE FORD ACTIVITY Peak capital spending occurred in Q3 (+70% vs. 1H19) PRODUCTION RATE Q4 2019e net production rate: 50-55 MBOED 50-55…
  22. 3Q 2019 Operations Report – Devon Energy Corp – slide 22
    STACK Tailoring Activity to Current Price Environment Infill program achieving strong operational results STACK DEVELOPMENT ACTIVITY FREE CASH FLOW Recent developments spaced at 4-6 wells per unit 370 2019 Meramec Focus Area…

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