Q3 2020 Earnings Presentation October 29, 2020 NYSE: DVN devonenergy.com
Key Takeaways From Our Presentation TRANSFORMATIONAL MERGER OF EQUALS WITH WPX 1 Creates a leading U.S. producer & builds a dominant Delaware position 2 Q3 RESULTS DRIVE IMPROVED 2020 OUTLOOK Favorable to guidance on all…
Devon & WPX Strategic Merger of Equals ACCRETIVE ON ALL RELEVANT FINANCIAL METRICS + EXPECTED CLOSING Q1 2021 (Combines the best capabilities of both organizations) ACCELERATES CASH-RETURN BUSINESS MODEL WILLISTON (Merger…
Our Disciplined Cash-Return Business Model PROGRESSIVE DISCIPLINED OIL GROWTH targets: up to 5% annually Devons CASH-RETURN business GROWTH STRATEGY Growing margins through operational & corporate cost reductions model is designed to…
Committed to Top-Tier ESG Performance ENVIRONMENT SOCIAL & SAFETY GOVERNANCE ACHIEVED methane intensity target of Provided STEM resources across our ESG incorporated into COMPENSATION 0.28% in 2019 communities, impacting 17,000…
Approach to the Current Environment TOP PRIORITIES IN CURRENT MARKET 1 1 Protect financial strength GREATER THAN Evaluate select growth projects 45 Limit reinvestment: up to 5% growth 2 Fund fixed quarterly dividend Prioritize…
Q3 2020 Executing on Our Disciplined Strategy RESILIENT OPERATIONAL IMPROVING PRODUCTION IMPROVEMENTS COST STRUCTURE OIL PRODUCTION LO E & G P & T E X P E N S E S G&A EXPENSES 146 MBOD 7.49 per BOE 75 million 6 MBOD ABOVE GUIDANCE…
Delaware Basin Our Capital-Efficient Growth Engine HIGH-MARGIN 155 WOLFCAMP PROGRAM HEADLINES Q3 RESULTS GROW TH 22% POTATO BASIN PROLIFIC Q3 WELL RESULTS 3,900 SUCCESSFUL 3-MILE YEAR OVER YEAR BOED/WELL WOLFCAMP…
Delaware Basin Operating Efficiencies Accelerate Drilling and completion efficiencies accelerate Operating scale driving per-unit costs lower (1) Drilling and completion costs per lateral foot (all formations) LOE & GP&T expense…
Delaware Development Projects Advancing on Plan DELAWARE BASIN UPCOMING ACTIVITY High-confidence projects to drive strong Q4 production Upcoming developments Eddy Lea Purrito Q3-2020a Q4-2020e Q1-2021e Q2-2021e Al-Mal 6 Bone…
Strong Execution Driving Improved 2020 Outlook Updated 2020 Improved vs. Revised Key Messages Guidance Outlook Budget (1) Raising 2020 OIL OUTLOOK for 2nd consecutive quarter Oil production 152 154 5,500 BOD (MBOD) Improvement…
Strategic Asset Sales Accelerate Value Creation CANADIAN HEAVY OIL Strategic transactions ENHANCE competitive position (COMPLETED EXIT FROM CANADA) Proceeds: CAD 3.8 billion Closed: Q2 2019 Barnett Shale divestiture closed on Oct.…
Operations Scaled to Generate Free Cash Flow Successfully navigating challenging market conditions ( in billions) REWARDING SHAREHOLDERS WITH CASH RETURNS 3.5 B 1.0 B DIVEST RAISED fixed quarterly dividend 22% to 0.11/share in 2020…
Free Cash Flow Priorities VARIABLE DIVIDEND STRATEGY FIXED DIVIDEND EFFECTIVE UPON CLOSE OF WPX TRANSACTION IN 2021 Paid quarterly at 0.11 per share Target payout: up to 10% of cash flow STEP 1: VARIABLE DIVIDEND CALCULATION…
Our Advantaged Capital Structure Strong liquidity with no near-term debt maturities Balance sheet strength provides competitive advantage (1) Outstanding debt maturities (MM) Net debt to 2020e EBITDAX 4,900 6.0x SIGNIFICANT…
Why Own the Go-Forward Devon PREMIER MULTI-BASIN PORTFOLIO DISCIPLINED RETURNS-DRIVEN STRATEGY DELIVERING TOP-TIER OPERATING RESULTS SIGNIFICANT FINANCIAL STRENGTH & LIQUIDITY COMMITTED TO RETURNING CASH TO…
Devon & WPX Transaction Overview Transaction value: 12 billion (enterprise value) TRANSACTION All-stock, merger of equals transaction STRUCTURE Exchange ratio: 0.5165 shares of Devon for each share of WPX Pro forma equity ownership:…
Transaction is Accretive in Year-One ACCRETION TO SHAREHOLDERS PRO FORMA FOR YEAR-ONE SYNERGIES SIGNIFICANT FINANCIAL OPERATING CASH FLOW 5%-10% BENEFITS FOR SHAREHOLDERS IMPROVEMENT FREE CASH FLOW GENERATION 2X…
Builds a Dominant Delaware Basin Position COMBINED DELAWARE BASIN ACREAGE POSITION World-class oil resource opportunity DELAWARE PRODUCTION PROFILE Stacked-pay position across 400,000 net acres Acreage in economic core of the play…
Capturing 575 Million in Annual Cost Savings Combination to drive cost synergies by year-end 2021 Annual cost savings expected by year-end 2021 (MM) 2BILLION All-In Expected To Be PV-10 Costs (1) 100 Completed By OF COST 125 YE…
Positioned for Attractive Free Cash Flow Yields Operations scaled to lower breakeven funding Free cash flow at maintenance capital 2021e pro forma maintenance capital assumptions (1) 2021e pro forma free cash flow sensitivities 30%…
A Proven Team Committed to Value Creation Dave Hager Rick Muncrief Jeff Ritenour Clay Gaspar Executive Chairman President & CEO EVP & Chief Financial Officer EVP & Chief Operating Officer David Harris Dennis Cameron Tana…
Q3 2020 Asset-Level Modeling Stats Q3 2020 - ASSET DETAIL DEVON DELAWARE POWDER RIVER EAGLE FORD ANADARKO OTHER PRODUCTION Oil (MBbl/d) 146 77 21 22 19 7 NGL (MBbl/d) 83 38 3 11 30 1 Gas (MMcf/d) 580 239 23 73 242 3 Total (MBoe/d) 326…
Q3 2020 Key Asset Highlights MULTI-BASIN PORTFOLIO DELIVERING STRONG RESULTS SEE KEY MODELING DETAILS FOR ADDITIONAL INFORMATION (PAGE 25) Production increased 9% year-over-year to 28 MBOED POWDER Per-unit operating costs IMPROVED…
Investor Contacts & Notices Investors and security holders will be able to obtain copies of the registration statement and the joint proxy statement/prospectus and other Investor Relations Contacts documents containing important…
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