Investor Presentation March 2021 NYSE: DVN devonenergy.com
A Leading U.S. Energy Company PREMIER MULTI-BASIN PORTFOLIO WILLISTON BASIN + 87 MBOED TRANSACTION CLOSED DISCIPLINED RETURNS-DRIVEN STRATEGY JANUARY 7, 2021 POWDER RIVER BASIN 22 MBOED SIGNIFICANT FINANCIAL STRENGTH &…
Our Disciplined Cash-Return Business Model Our CASH-RETURN business model is PROGRESSIVE DISCIPLINED OIL GROWTH targets: up to 5% annually designed to moderate growth, emphasize GROWTH STRATEGY Growing margins through operational &…
Committed to Maintenance Capital in 2021 Operations scaled to lower breakeven funding Free cash flow provides attractive investment opportunity 2021e outlook 2021e free cash flow sensitivities OIL PRODUCTION 280-300 16% 32 WTI…
Free Cash Flow Priorities VARIABLE DIVIDEND STRATEGY FIXED DIVIDEND CALCULATED ON A QUARTERLY BASIS Paid quarterly at 0.11 per share Target payout: up to 10% of cash flow STEP 1: VARIABLE DIVIDEND CALCULATION Adjusted Cash Flow…
Prioritizing Cash Returns to Shareholders 28 consecutive years of returning cash to shareholders ( per share) Variable Dividend INDUSTRY-FIRST VARIABLE DIVIDEND (BASED ON PRO FORMA Q4 FINANCIAL RESULTS) Special Dividend 0.68…
Improving Investment-Grade Financial Strength OUTSTANDING DEBT REDUCTION COMMITTED TO LIQUIDITY POSITION EFFORTS PROGRESSING LOWERING LEVERAGE 5.6B INCLUDES CASH & CREDIT FACILITY 1.5B AUTHORIZED PROGRAM 1.0x NET DEBT TO EBITDAX…
Capturing 575 Million in Annual Cost Savings On track to achieve cost synergies by year-end 2021 Targeted annual cost savings by area (MM) OPERATING MARGIN IMPROVEMENTS (1) 70% 200 MILLION GENERAL & ADMINISTRATIVE (1) 70% 200…
Committed to Top-Tier ESG Performance ENVIRONMENT SOCIAL & SAFETY GOVERNANCE Achieved methane intensity reduction Fostering inclusion & diversity with our ESG incorporated in compensation target of 0.28% ahead of plan employees and…
Delaware Basin Our Capital-Efficient Growth Engine DELAWARE PRODUCTION PROFILE WORLD-CLASS OIL OPPORTUNITY Stacked pay position across 400,000 net acres 350 Q4 2020 MBOED Multi-decade inventory opportunity Q4 ACTIVITY Eddy…
Delaware Basin Legacy Devon Results Outstanding Q4 execution Achieving record well productivity Best-in-class capital efficiencies Key operating results Average cumulative 12-month oil production per foot, MBO Drilling and completion…
Delaware Basin Legacy WPX Results STATELINE AREA DRIVES Drilled & completed cost per foot (excludes allocation of facility costs) Q4 PERFROMANCE 44% REDUCTION STATELINE 983 26 Wells Online SINCE 2018 Bone Spring & Wolfcamp focus…
2021 Operating Outlook Capital efficient 2021 program Delaware focused capital program Driving per-unit costs lower 2021e capital activity Upstream capital (in billions) LOE PER BOE GP&T PER BOE 8% 1.6-1.8 B 8.22 80% UPSTREAM…
AssetAppendix Overview NYSE: DVN devonenergy.com
Q4 2020 Variable Dividend Calculation VARIABLE DIVIDEND CALCULATION INDUSTRY-FIRST VARIABLE 795 MM Adjusted Cash Flow (Non-GAAP) DISTRIBUTION DECLARED 486 MM Capital Expenditures (Accrued) 309 MM Adjusted Free Cash Flow…
Q4 2020 Pro Forma Operational & Financial Results Key Metrics ( IN MILLIONS) Legacy Devon Legacy WPX Pro Forma Oil Production (MBOD) 156 149 305 Total Production (MBOED) 333 251 584 LOE & GP&T (PER BOE) 7.21 8.05 7.57 General &…
Pro Forma Outstanding Debt Maturities Strong liquidity with minimal near-term debt maturities Pro forma outstanding debt maturities as 12/31/20 (MM) 5,600 Cash 2,600 50% OF OUTSTANDING DEBT MATURES AFTER 2030 POTENTIALTO…
Diversified Across Top Resource Plays WILLISTON BASIN 406 Million (TTM) ANADARKO Liquids-rich play focused on maximizing free cash flow BASIN Commencing Dow JV drilling program in 2021 (25-30 spuds) POWDER RIVER BASIN (400,000 NET…
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