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4Q 2019 Earnings Presentation – Devon Energy Corp

Devon Energy Corp · Mar 12, 2020 · 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. 4Q 2019 Earnings Presentation – Devon Energy Corp – slide 1
    Q4 2019 Operations Report February 18, 2020 NYSE: DVN devonenergy.com
  2. 4Q 2019 Earnings Presentation – Devon Energy Corp – slide 2
    Defining Devon World-class U.S. oil portfolio Premier acreage position in top basins Devon Energy Overview Achieving BEST-IN-CLASS operating results Production: 340 MBOED (Q4 2019) Multi-decade growth inventory Revenue: 80% oil (Q4…
  3. 4Q 2019 Earnings Presentation – Devon Energy Corp – slide 3
    Focused on Top-Tier ESG Performance Key Messages OVERALL SCORE +61% VERSUS PEER AVG. DVNs SCORE: 1.6 PEER AVERAGE: 4.1 ESG metrics incorporated in COMPENSATION STRUCTURE Note: ISS scoring scale ranges from 1 to 10, with 1 being…
  4. 4Q 2019 Earnings Presentation – Devon Energy Corp – slide 4
    Q4 2019 Efficiently Advancing the Business OIL VOLUMES EXCEED GUIDANCE (Q4 2019 +3 MBOD vs. midpoint guidance) CAPITAL SPENDING 6% BELOW MIDPOINT (Driven by efficiency gains achieved across asset portfolio) FREE CASH FLOW…
  5. 4Q 2019 Earnings Presentation – Devon Energy Corp – slide 5
    2019 A Year of Outstanding Execution 2019 OPERATIONAL AND FINANCIAL HIGHLIGHTS 5.5 Billion 0.2B Completed TRANSFORMATION to U.S. oil business (pg. 7) 65% 1.7B ALLOCATED TO Oil volumes increased 21% vs. 2018 (+600 bps vs. budget)…
  6. 4Q 2019 Earnings Presentation – Devon Energy Corp – slide 6
    2019 Operational & Financial Performance FY 2019 Change (vs.2018) Higher oil growth for less capital investment Key Metrics (Continuing Ops.) (Reported Results) (2) New Devon oil growth vs. 2018 New Devon capital (B) 21% 2.1 U.S.…
  7. 4Q 2019 Earnings Presentation – Devon Energy Corp – slide 7
    Portfolio Transformation Accelerates Value Creation Completed transformation to U.S. oil business CANADIAN HEAVY OIL Barnett Shale assets sold for 770 million Proceeds: CAD 3.8 billion ACCRETIVE MULTIPLE at 10x cash flow (at…
  8. 4Q 2019 Earnings Presentation – Devon Energy Corp – slide 8
    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) 4,800 10.7 SIGNIFICANT FINANCIAL FLEXIBILITY Cash NO…
  9. 4Q 2019 Earnings Presentation – Devon Energy Corp – slide 9
    Disciplined Return of Capital to Shareholders Delivering sustainable dividend growth Repurchase program accelerates per-share growth Annualized dividend per share Average outstanding shares (MM) 35% DIVIDEND 0.44 527 INCREASE…
  10. 4Q 2019 Earnings Presentation – Devon Energy Corp – slide 10
    Strategic Framework for Our 2020 Capital Allocation CAPITAL ALLOCATION PRIORITIES GREATER Maintain capital DISCIPLINE Maintain base production THAN 1 50 Free cash flow accelerates 2 Fund dividends Balance GROWTH & FREE CASH FLOW…
  11. 4Q 2019 Earnings Presentation – Devon Energy Corp – slide 11
    2020 Outlook Lowering Capital Spending Guidance Improved outlook underpinned by Delaware efficiencies 2020 CAPITAL ACTIVITY New Devon 2020e E&P capital E&P CAPITAL NEW WELLS ONLINE (MM) (Operated) Delaware Basin 1,050 (+15% YoY)…
  12. 4Q 2019 Earnings Presentation – Devon Energy Corp – slide 12
    2020 Outlook Raising Per-Share Growth Targets Improved (1) 2020 Guidance vs. 2019 Key Messages Outlook RAISING 2020 GROWTH outlook due to Delaware well performance 161 163 Oil production (MBOD) 7.5% - 9.0% Growth Delaware, Powder…
  13. 4Q 2019 Earnings Presentation – Devon Energy Corp – slide 13
    Built to Deliver Sustainable Long-Term Growth Capital allocation process BALANCES high-return projects with free cash flow growth KEY INVENTORY DEPTH provides Devon with visible growth trajectory TAKEAWAYS Targeting SUSTAINABLE…
  14. 4Q 2019 Earnings Presentation – Devon Energy Corp – slide 14
    Improved Outlook Lowers Breakeven Funding 2020 & 2021 OUTLOOK 2-YEAR 46.50 WTI 1.6B 1.6 BREAKEVEN 2.00 HENRY HUB Cumulative Free Cash Flow 12% PRICING (PREVIOUSLY 48 WTI & 2.50 HH) Free Cash Flow Yield (Annual Avg.)(1) 10%…
  15. 4Q 2019 Earnings Presentation – Devon Energy Corp – slide 15
    Asset-Level Modeling Stats Q4 2019 - ASSET DETAIL NEW DEVON DELAWARE STACK POWDER RIVER EAGLE FORD OTHER PRODUCTION Oil (MBbl/d) 160 84 27 20 23 6 NGL (MBbl/d) 74 32 30 2 9 1 Gas (MMcf/d) 634 234 295 28 76 1 Total (MBoe/d) 340 154 107 27…
  16. 4Q 2019 Earnings Presentation – Devon Energy Corp – slide 16
    Delaware Basin Our Capital-Efficient Growth Engine WOLFCAMP & CAT SCRATCH PROJECTS HEADLINE Q4 PERFORMANCE HIGH-MARGIN 154 GROW TH 2ND BONE SPRING THISTLE/GAUCHO 82% SWEET SPOT IN TODD Cat Scratch Fever 2.0 (7,500 laterals)…
  17. 4Q 2019 Earnings Presentation – Devon Energy Corp – slide 17
    Delaware Basin Delivering Best-In-Class Well Results Acreage quality & strong execution driving superior well productivity Average cumulative 6-month oil production per foot, MBO (2019) 20 PROLIFIC High-graded drilling activity in core…
  18. 4Q 2019 Earnings Presentation – Devon Energy Corp – slide 18
    Delaware Basin Step-Change in Operating Efficiencies Drilling and completion efficiencies accelerate Operating scale driving per-unit costs lower Drilled and completed feet per day (Wolfcamp formation) Delaware Basin LOE & GP&T expense…
  19. 4Q 2019 Earnings Presentation – Devon Energy Corp – slide 19
    Delaware Diversified Program to Drive 2020 Results Diversified program across core development areas Substantial stacked-pay resource opportunity 2020e Delaware Basin drilling activity Graphic for illustrative purposes Potato Cotton…
  20. 4Q 2019 Earnings Presentation – Devon Energy Corp – slide 20
    Powder River Basin Accelerating Niobrara Activity Emerging oil growth opportunity with HIGH MARGINS INCREASING NIOBRARA DRILLING ACTIVITY IN 2020 Strong production growth in Q4 (+54% vs. Q4 2018) NIOBRARA PROGRAM Light-oil volumes…
  21. 4Q 2019 Earnings Presentation – Devon Energy Corp – slide 21
    Eagle Ford Operational Momentum Established Strong production MOMENTUM heading into 2020 EAGLE FORD ACTIVITY December 2019 exit rate: 53 MBOED PRODUCTION EXIT RATE 53 Muir Development MBOED 21 new wells online in quarter (Avg.…
  22. 4Q 2019 Earnings Presentation – Devon Energy Corp – slide 22
    STACK Dow JV Driving Improved Capital Efficiency Infill program achieving strong operational results STACK DEVELOPMENT ACTIVITY 2019 developments optimized at 4-6 wells per unit DOW DRILLING JV Kingfisher Well cost SAVINGS reach 30%…

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