Skip to main content Devon Energy Acquires WPX Energy – Devon Energy Corp Investor Presentation | Shale Experts
Loading...
Pm

Devon Energy Acquires WPX Energy – Devon Energy Corp

Devon Energy Corp · Sep 28, 2020 · 20 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. Devon Energy Acquires WPX Energy – Devon Energy Corp – slide 1
    + Devon and WPX Strategic Merger of Equals September 28, 2020 NYSE: DVN devonenergy.com NYSE: WPX wpxenergy.com
  2. Devon Energy Acquires WPX Energy – Devon Energy Corp – slide 2
    A Leading Multi-Basin Energy Company + ACCRETIVE ON ALL RELEVANT FINANCIAL METRICS (Combines the best capabilities of both organizations) ACCELERATES CASH-RETURN BUSINESS MODEL POWDER RIVER BASIN WILLISTON BASIN 63 MBOED (Merger…
  3. Devon Energy Acquires WPX Energy – Devon Energy Corp – slide 3
    Transaction is Accretive in Year-One + ACCRETION TO SHAREHOLDERS PRO FORMA FOR YEAR-ONE SYNERGIES SIGNIFICANT FINANCIAL 5%-10% BENEFITS FOR SHAREHOLDERS OPERATING CASH FLOW IMPROVEMENT FREE CASH FLOW 2X GENERATION…
  4. Devon Energy Acquires WPX Energy – Devon Energy Corp – slide 4
    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: 57%…
  5. Devon Energy Acquires WPX Energy – Devon Energy Corp – slide 5
    Accelerates Cash-Return Business Model + With this strategic combination we are PROGRESSIVE DISCIPLINED OIL GROWTH targets: up to 5% annually accelerating our transition to a CASH-RETURN GROWTH STRATEGY Growing margins through…
  6. Devon Energy Acquires WPX Energy – Devon Energy Corp – slide 6
    Maintains Strong Financial Position + Strong liquidity with minimal near-term maturities Balance sheet strength provides competitive advantage (1) Pro forma outstanding debt maturities over the next five years (MM) Net debt to 2020e…
  7. Devon Energy Acquires WPX Energy – Devon Energy Corp – slide 7
    Combination Enhances Operating Scale + Creating one of the largest unconventional oil producers in the U.S. 2021e oil production estimates (MBOD) KEY METRICS PRO FORMA 400 600 Enterprise Value (B) 6.4 5.7 12.1 350 450 Q2 2020…
  8. Devon Energy Acquires WPX Energy – Devon Energy Corp – slide 8
    Our Capital-Efficient Growth Engine + COMBINED DELAWARE BASIN ACREAGE POSITION World-class oil resource opportunity DELAWARE PRODUCTION Stacked-pay position across 400,000 net acres PROFILE Acreage in economic core of the play 60%…
  9. Devon Energy Acquires WPX Energy – Devon Energy Corp – slide 9
    Acreage Located in the Best Part of the Play + Top-tier well productivity Highest oil content Lower operating costs (less water disposal) IP BOE/Lateral foot Gas-oil ratio, SCF/BBL Water-oil ratio, BBL/BBL DVN & WPX Focus Area DVN…
  10. Devon Energy Acquires WPX Energy – Devon Energy Corp – slide 10
    Track Record of Operational Excellence + Well productivity showcases asset quality SUPERIOR 40% All wells drilled since 2018. Includes operators with more than 100 wells (source IHS/Devon) WELL Avg. 90-Day IPs BOED, 20:1…
  11. Devon Energy Acquires WPX Energy – Devon Energy Corp – slide 11
    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 PV-10 Costs (1) 100 OF COST 125 SAVINGS OVER THE NEXT 5…
  12. Devon Energy Acquires WPX Energy – Devon Energy Corp – slide 12
    Framework for 2021 Capital Allocation + 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…
  13. Devon Energy Acquires WPX Energy – Devon Energy Corp – slide 13
    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…
  14. Devon Energy Acquires WPX Energy – Devon Energy Corp – slide 14
    Free Cash Flow Priorities + VARIABLE DIVIDEND STRATEGY FIXED QUARTERLY DIVIDEND EFFECTIVE UPON CLOSE OF TRANSACTION Maintained at 0.11 per share Target payout: up to 10% of cash flow STEP 1: VARIABLE DIVIDEND CALCULATION Operating…
  15. Devon Energy Acquires WPX Energy – Devon Energy Corp – slide 15
    Attractive Valuation for Delaware-Driven Entity + Potential for significant multiple expansion 2021e EV/EBITDAX(1) HIGHLY COMPETITIVE METRICS WITH TOP PEERS 20% Pro Forma Peer SIGNIFICANT Key Metrics Devon Average (2) 6.0x…
  16. Devon Energy Acquires WPX Energy – Devon Energy Corp – slide 16
    Committed to Top-Tier ESG Performance + ENVIRONMENT SOCIAL & SAFETY GOVERNANCE Water recycling has increased 500% Permian Strategic Partnership provided ESG incorporated in COMPENSATION since 2017 in the Delaware Basin(1) 30…
  17. Devon Energy Acquires WPX Energy – Devon Energy Corp – slide 17
    Why Own the Go-Forward Devon + Premier multi-basin portfolio POWDER RIVER BASIN WILLISTON BASIN 63 MBOED Disciplined returns-driven strategy 24 MBOED Delivering top-tier operating results ANADARKO BASIN DELAWARE BASIN 90…
  18. Devon Energy Acquires WPX Energy – Devon Energy Corp – slide 18
    Investor Contacts & Notices + INVESTORS AND SECURITY HOLDERS OF DEVON AND WPX ARE ADVISED TO READ THE REGISTRATION STATEMENT, THE JOINT PROXY Investor Relations Contacts STATEMENT/PROSPECTUS, INCLUDING ANY AMENDMENTS OR SUPPLEMENTS TO…
  19. Devon Energy Acquires WPX Energy – Devon Energy Corp – slide 19
    Appendix
  20. Devon Energy Acquires WPX Energy – Devon Energy Corp – slide 20
    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…

From the store

Browse maps, data & reports in the Shale Experts store