Investor Presentation January 2020 NYSE: DVN devonenergy.com
Devons Competitive Advantage World-class U.S. oil portfolio Unrivaled acreage position in top basins New Devon Overview Multi-decade growth INVENTORY Production: 325 MBOED (Q3 2019) Top-tier well productivity across all assets…
Unleashing Potential of World-Class Oil Assets U.S. well productivity showcases asset quality High-return inventory diversified across top U.S. basins Source: IHS/Devon. All wells drilled from 2015 through 2019 YTD. Includes operators…
Executing on Our Strategic Objectives Efficiencies delivering improved capital outlook Generating high-return production growth New Devon 2019e E&P capital New Devon (MBOD) 19% 148 142 DEL AWARE POWDER 138 RIVER INCREASE 50% E&P…
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,…
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 Fund…
Preliminary 2020 Outlook OPTIMIZED FOR RETURNS OIL GROWTH SHARE REPURCHASES UPSTREAM CAPITAL PROGRAM NEW DEVON ASSETS NEW BOARD AUTHORIZTION 1.7-1.9 Billion 7%-9% Growth 1 Billion Increase D E S I G N E D F O R U LT R A - LO W D…
Positioned for Attractive Free Cash Flow in 2020 FY2020 OUTLOOK 750 OIL GROWTH: 7%-9% 675 MILLION 8% BREAKEVEN: 48 WTI (Assumes 2.50 Henry Hub) 6% 2020e Free Cash Flow (MM) 2020e Free Cash Flow Yield EXCLUDES BARNETT…
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…
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 70% 521 ALLOCATED TO 491 28%…
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…
Divestiture Program Accelerates Value Creation CANADIAN HEAVY OIL Resource depth allows for portfolio high-grading Proceeds: USD 2.8 billion Closed: Q2 2019 Barnett Shale assets sold for 770 million ROCKIES CO2 Q4 Production: 3…
Delaware Basin Capital-Efficient Growth Engine DELAWARE BASIN DEVELOPMENT ACTIVITY World-class oil resource opportunity Key 2019 Projects Eddy Lea STACKED PAY position across 250,000 net acres Upcoming Projects THISTLE/GAUCHO Core…
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…
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,…
Powder River Basin Niobrara Success Continues NIOBRARA POWDER RIVER BASIN NIOBRARA ACTIVITY TYPE LOG Top-tier emerging oil resource play Niobrara Appraisal Wells Stacked pay position in oil fairway (300k acres) Niobrara Spacing…
Eagle Ford Operational Momentum Established EAGLE FORD ACTIVITY Strong production MOMENTUM heading into 2020 FREE CASH FLOW (MM) Peak capital spending occurred in Q3 (+70% vs. 1H19) Growth driven by 25 Eagle Ford wells online in Q4…
STACK Dow JV Driving Improved Capital Efficiency Infill program achieving strong operational results STACK DEVELOPMENT ACTIVITY Recent developments spaced at 4-6 wells per unit Key Q3 2019 Projects Kingfisher 2020 Devon Activity…
Highly-Regarded ESG Performance For additional information see our 2019 Sustainability Report Devon is rated in the TOP-QUARTILE Devon is rated in the TOP-HALF vs. peers vs. peers Note: Peer group comprised of 20 E&P companies.…
Why Own Devon World-class U.S. oil portfolio Unrivaled acreage position in top basins New Devon Overview Multi-decade growth inventory Production: 325 MBOED (Q3 2019) Top-tier well productivity across all assets Revenue: 74% oil Oil…
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…
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