Our Approach to Managing the Business The fundamental changes PROGRESSIVE MODERATED OIL GROWTH targets: up to 5% annually GROWTH STRATEGY Expand margins through operational & corporate cost reductions that underpin our transition to a…
Q2 2020 Operating Highlights RESILIENT CAPITAL IMPROVED PRODUCTION EFFICIENCIES COSTS OIL PRODUCTION C A P I TA L I N V E S T M E N T G&A EXPENSES 153 MBOD 203 million 79 million 3 MBOD ABOVE GUIDANCE 10% BELOW GUIDANCE 31%…
Q2 2020 Asset-Level Highlights MULTI-BASIN PORTFOLIO DELIVERING STRONG RESULTS Q2 OUTPERFORMANCE DRIVES IMPROVED OUTLOOK (SEE PAGE 6 FOR DETAILS) Exited quarter with 9 rigs & 1 frac crew running DELAWARE Industry-leading Wolfcamp…
Strong Execution Driving Improved 2020 Outlook vs. Prior Updated Guidance Key Messages Guidance Driven by improvements in Delaware Basin COSTS & CYCLE TIMES Upstream capital 950 1,000 25 Million ( in millions) Improvement Expect…
Accelerating Barnett Shale Closing Date Barnett divestiture bolsters liquidity Generating excess cash flow in second half of 2020 ( in billions) 1.6 B 0.4 B DIVEST (1) BARNETT SHALE DIVESTITURE PROCEEDS (CLOSING DATE: OCT. 1,…
Significant Financial Strength & Liquidity Strong liquidity with no near-term debt maturities Balance sheet strength provides competitive advantage (1) Outstanding debt maturities (MM) Net debt to 2020e EBITDAX 4,700 6.0x…
Investment Concentrated in the Delaware Basin Efficiencies driving improved outlook Q2 RESULTS RATES RESTRICTED DUE TO MARKET CONDITIONS 2020e E&P capital (MM) THISTLE/GAUCHO 950 - 1,000 WOLFCAMP & BONE SPRING VALIDATES 3RD (25 MM…
Operational Efficiencies Continue to Accelerate Delivering best-in-class capital efficiency While achieving superior well results Drilled and completed feet per day (Wolfcamp formation) Average cumulative 6-month oil production per foot,…
Efficiencies Drive Maintenance Capital Improvements Wolfcamp success driving capital efficiency gains Preserving productive capacity into 2021 Maintenance capital ( millions) (1) Oil production (MBOD) THIRD FRAC CREW IN DELAWARE…
Sustainable Improvements to Cash Cost Structure Cash cost reductions by year-end 2020 Committed to driving corporate costs lower Cost savings by category vs. Q2 2020 annual run-rate (MM) Annual G&A & financing costs (MM) 1,000 932…
Operations Scaled to Generate Free Cash Flow Substantial improvements to breakeven funding Free cash flow yield at maintenance capital 2021e pro forma capital & cost efficiencies (per Boe) 2021e free cash flow yield sensitivities…
Free Cash Flow Priorities FUNDING ALL PRIORITIES WITH CASH ON-HAND Committed to low financial leverage 2 Billion (1) Resuming DEBT REDUCTION program (up to 1.5 billion) Targeting net debt-to-EBITDAX ratio: 0.5x 1.0x DIVIDENDS 0.2B…
Diversified Portfolio Provides Optionality NET FEDERAL 2020e FEDERAL Federal acreage limited to 20% of total leasehold ACREAGE LEASEHOLD % SPUDS PERMITS 50% of acreage in Delaware & Powder River (1) Delaware Basin 200,000 55% 120…
Highly-Regarded ESG Performance 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, impacting…
Why Own Devon KEY DEVON ATTRIBUTES OIL WEIGHTED: 78% of revenue (2020 YTD) Premier multi-basin portfolio STRONG LIQUIDITY: 4.7 billion (6/30/20) POWDER RIVER BASIN 24 MBOED (76% OIL) TOP-TIER ESG PERFORMANCE (pg. 16) Significant…
Appendix NYSE: DVN devonenergy.com
Q2 2020 Asset-Level Modeling Stats Q2 2020 - ASSET DETAIL DEVON DELAWARE POWDER RIVER EAGLE FORD ANADARKO OTHER PRODUCTION Oil (MBbl/d) 153 79 18 27 21 8 NGL (MBbl/d) 69 29 2 12 25 1 Gas (MMcf/d) 614 241 20 87 262 4 Total (MBoe/d) 325…
Delaware Development Projects Advancing on Plan DELAWARE BASIN UPCOMING ACTIVITY Diversified capital program across core development areas Upcoming developments in second-half of 2020 Eddy Lea Q2-2020a Q3-2020e Q4-2020e Q1-2021e…
Powder River Basin Advancing Niobrara Appraisal NIOBRARA TYPE LOG Q2 production averaged 24 MBOED NIOBRARA DELINEATION ACTIVITY Light-oil volumes 75% of production mix Upcoming Activity 3-WELL NIOBRARA Production expense improved…
Eagle Ford Expanding Resource Opportunity EAGLE FORD ACTIVITY Q2 production averaged 53 MBOED (51% oil) NET PRODUCTION 13 new lower Eagle Ford wells online in Q2 (see map) Net production increased 7% vs. prior quarter 53 MBOED Q2…
Anadarko Basin Optimizing Base Production Results Base production efforts improve decline profile ANADARKO BASIN RECENT ACTIVITY Q2 net production: 90 MBOED (52% liquids) DOW DRILLING JV INFILL DEVELOPMENT 100 (ACTIVITY NOT RELATED…
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