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1Q 2020 Earnings Results – Devon Energy Corp

Devon Energy Corp · May 7, 2020 · 21 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. 1Q 2020 Earnings Results – Devon Energy Corp – slide 1
    Q1 2020 Earnings Presentation May 5, 2020 NYSE: DVN devonenergy.com
  2. 1Q 2020 Earnings Results – Devon Energy Corp – slide 2
    Defining Devon Premier multi-basin oil portfolio Delivering INDUSTRY-LEADING well productivity KEY DEVON ATTRIBUTES Achieving capital efficiencies across portfolio (pg. 8) OIL WEIGHTED: 82% of revenue (Q1 2020) Deep inventory of…
  3. 1Q 2020 Earnings Results – Devon Energy Corp – slide 3
    Significant Financial Strength & Liquidity Significant liquidity with no near-term debt maturities Balance sheet strength provides competitive advantage Outstanding debt maturities (MM) Cumulative % of debt maturing as a % of total…
  4. 1Q 2020 Earnings Results – Devon Energy Corp – slide 4
    Hedging Program Protects Cash Flow ATTRACTIVE HEDGE POSITION PROTECTS CASH FLOW Disciplined hedging strategy protects cash flow Combination of swaps & costless collars Q2-Q4 2020 1H 2021 (% of oil volumes hedged) (% of oil volumes…
  5. 1Q 2020 Earnings Results – Devon Energy Corp – slide 5
    Strategic Asset Sales Enhance Financial Strength CANADIAN HEAVY OIL Strategic transactions ENHANCE competitive position (COMPLETED EXIT FROM CANADA) Proceeds: CAD 3.8 billion Closed: Q2 2019 Barnett Shale sold for up to 830 million…
  6. 1Q 2020 Earnings Results – Devon Energy Corp – slide 6
    Our Approach to the Current Environment TOP PRIORITIES IN CURRENT MARKET Preserve liquidity and financial flexibility Revenue PROTECTED by hedging program (pg. 4) 1 Protect financial strength Positioned to generate net cash inflows…
  7. 1Q 2020 Earnings Results – Devon Energy Corp – slide 7
    Tailoring Capital Activity to Current Environment Recalibrating capital activity to protect liquidity REVISED 2020 CAPITAL PLAN 2020e E&P capital (B) E&P CAPITAL NEW WELLS ONLINE ESTIMATED DUCs 45% 1.8 Billion (MM) (Operated) (At YE…
  8. 1Q 2020 Earnings Results – Devon Energy Corp – slide 8
    Efficiencies Drive Maintenance Capital Improvements Targeting a 20% IMPROVEMENT in maintenance capital requirements by 2021 KEY Maintenance capital target driven by Delaware Basin efficiencies & supply chain pricing TAKEAWAYS Year-end…
  9. 1Q 2020 Earnings Results – Devon Energy Corp – slide 9
    Managing Production to Market Conditions Adjusting activity in Q2 due to market conditions Reducing to 8 operated rigs by mid-year D Y N A M I C A LLY Plan to exit Q2 with 65% less frac crews (vs. Q1 avg.) M AN AGI N G RESTRICTING…
  10. 1Q 2020 Earnings Results – Devon Energy Corp – slide 10
    Marketing Agreements Provide Flow Assurance Plan to flow barrels if pricing is above VARIABLE COSTS KEY Arrangements providestrong flow assurance KEY MARKETING TERMS & AGREEMENTS MESSAGES Majorityof oil sold backstopped by firm…
  11. 1Q 2020 Earnings Results – Devon Energy Corp – slide 11
    Cost Structure Continues to Improve KEY METRICS Q1 2020 RESULTS Reducing 2020 cash cost expectations Cash costs ( in billions) LEASE OPERATING & GP&T EXPENSES 8.07 -9% VS Q1 19 1.90 2020 SAVINGS 250 TARGET MILLIO N…
  12. 1Q 2020 Earnings Results – Devon Energy Corp – slide 12
    Positioned to Generate Net Cash Inflows in 2020 2020 operating plan positioned to generate net cash inflows at ultra-low pricing ( in billions) 3.2 B 1.0 B GENERATING Cash flow enhanced by Barnett divestiture (pg. 5) DIVEST (2)…
  13. 1Q 2020 Earnings Results – Devon Energy Corp – slide 13
    ESG Performance Remains a Top Priority ENVIRONMENT SOCIAL & SAFETY GOVERNANCE On track to meet our methane intensity Provided STEM resources across our ESG metrics incorporated in target of 0.28% or lower by 2025 communities,…
  14. 1Q 2020 Earnings Results – Devon Energy Corp – slide 14
    Q1 2020 Operating Highlights OIL VOLUMES EXCEED GUIDANCE (Q1 2020 +3 MBOD vs. midpoint guidance) CAPITAL SPENDING BELOW EXPECTATIONS (12% below midpoint guidance) WOLFCAMP DRIVES DELAWARE RESULTS (Q1 activity highlighted by…
  15. 1Q 2020 Earnings Results – Devon Energy Corp – slide 15
    Q1 2020 Asset-Level Modeling Stats Q1 2020 - ASSET DETAIL DEVON DELAWARE POWDER RIVER EAGLE FORD ANADARKO OTHER PRODUCTION Oil (MBbl/d) 163 84 21 26 24 8 NGL (MBbl/d) 80 37 3 9 30 1 Gas (MMcf/d) 634 244 29 86 272 3 Total (MBoe/d) 348 162…
  16. 1Q 2020 Earnings Results – Devon Energy Corp – slide 16
    Delaware Basin Q1 2020 Operating Results Q1 production averaged 162 MBOED WOLFCAMP PROGRAM HEADLINES Q1 RESULTS THISTLE/GAUCHO 32 new wells brought online 2ND BONE SPRING SUCCESSFUL INFILL Average IP30: 2,500 BOED SWEET SPOT IN…
  17. 1Q 2020 Earnings Results – Devon Energy Corp – slide 17
    Delaware Basin Efficiencies Continue to Accelerate Delaware Basin capital efficiencies accelerate Wolfcamp on track to achieve significant cost savings Drilled and completed feet per day (Wolfcampformation) Drilling and completion costs…
  18. 1Q 2020 Earnings Results – Devon Energy Corp – slide 18
    Delaware Basin Revised 2020 Outlook Diversified capital program across five core areas Revised 2020 capital spending outlook 2020e Delaware Basin revised capital activity Program designed to maintain OPERATIONAL CONTINUITY Activity…
  19. 1Q 2020 Earnings Results – Devon Energy Corp – slide 19
    Powder River Basin Advancing Niobrara Appraisal Q1 production averaged 29 MBOED (74% oil) POWDER RIVER BASIN ACTIVITY Delivered HIGHEST MARGINS in portfolio (+30% vs. DVN avg.) REVISED CAPITAL 14 new wells online in quarter (Avg.…
  20. 1Q 2020 Earnings Results – Devon Energy Corp – slide 20
    Eagle Ford Expanding Resource Opportunity Q1 production averaged 50 MBOED (53% oil) EAGLE FORD ACTIVITY Net production increased 11% vs. prior quarter SUCCESSFUL EAGLE FORD Capital investment: 70 million (as of 3/31/20) DEVELOPMENT…
  21. 1Q 2020 Earnings Results – Devon Energy Corp – slide 21
    Anadarko Basin Optimizing Base Production Results Base production efforts improve decline profile ANADARKO BASIN ACTIVITY Q1 net production: 98 MBOED (54% liquids) REDUCING CAPITAL INFILL DEVELOPMENT 95% (ACTIVITY NOT RELATED TO…

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