Q3 2021 Earnings Presentation November 2, 2021 NYSE: DVN devonenergy.com
Key Takeaways From Our Presentation FIXED + VARIABLE DIVIDEND INCREASES 71% 1 LEADING THE INDUSTRY WITH Total dividend of 0.84 per share announced with Q3 results DISCIPLINE & CASH RETURNS FREE CASH FLOW GENERATION ACCELERATES 2 8x…
Our Cash-Return Business Model Our CASH-RETURN business model is DISCIPLINED MODERATING OIL GROWTH targets: up to 5% annually designed to moderate growth, emphasize GROWTH STRATEGY Growing margins through operational & corporate cost…
Strategy Underpinned by High-Quality Portfolio Portfolio provides diversified commodity exposure Production by product in Q3 2021 WILLISTON BASIN 58 MBOED POWDER RIVER BASIN GAS OIL 20 MBOED VOLUMES VOLUMES 26% 50% COMMODITY OUR…
Outlook Continues to Strengthen in 2022 Prioritizing free cash flow over volume growth Positioned for an attractive free cash flow yield in 2022 Preliminary 2022e guidance 2022e free cash flow sensitivities TOTAL 570-600 21%…
Accelerating Cash Returns to Shareholders A history of returning cash to shareholders 90% (1) (Dividends per share) GROWTH vs. 2021 EXPANDING DIVIDEND PAYOUT 29 CONSECUTIVE YEARS OF DIVIDEND PAYMENTS Q3 2021 dividend payout…
A Market Leading Dividend Yield (1) 9% 10% OUR MARKET-LEADING YIELD 7 TIMES HIGHER than the S&P 500 yield 8% 2022e Annualized Dividend Yield ADVANTAGED YIELD vs. other market sectors COMFORTABLY FUNDED within free cash flow…
Announcing 1 Billion Share-Repurchase Program NEXT STEP IN OUR CASH-RETURN STRATEGY LEADING THE INDUSTRY WITH DISCIPLINE & CASH RETURNS Board authorized 1 billion repurchase program Represents 4% of current market capitalization…
Our Fortress Balance Sheet INVESTMENT-GRADE FINANCIAL STRENGTH PROTECTING OUR ABILITY Strong liquidity: 2.3 billion of cash (as of 9/30/21) TO EXECUTE Improved net debt by 16% in third quarter Excellent Minimal near-term debt…
Devons Unique Investment Proposition Robust operating cash flow growth Returning cash to shareholders And trading at an attractive valuation Operating cash flow ( in billions) 2022e free cash flow yield Enterprise value / 2022e…
Prolific Well Results Drive Q3 Outperformance WORLD-CLASS OIL OPPORTUNITY Eddy Lea BOUNDARY RAIDER Stacked pay position across 400,000 net acres ANOTHER HIGH-IMPACT RESULT THISTLE COBRA A PROLIFIC 3-MILE SUCCESS Diversified…
Delaware Basin High-Margin Growth & Efficiency Gains Outstanding well productivity drives volumes higher Capital efficiencies continue to capture cost savings Total production (MBOED) Development D&C costs per foot (excludes…
Anadarko Basin Dow Partnership Builds Momentum Blaine Cash flow benefiting from liquids-rich production mix Kingfisher Anadarko production mix & field-level operating margin (/BOE) 200% DOW DRILLING JV MILLER-MILLER 25.20 FOCUS…
Free Cash Flow Generating Assets High-margin oil resource opportunity in economic core of the play WILLISTON Our free cash flow generating assets Projected to generate 700 million of free cash flow in 2021 BASIN are critical to the…
Inventory Underpins Sustainability of Business Model 2,500 10 YEARS OF INVENTORY incremental (AT CURRENT ACTIVITY PACE) operated locations Identified 10 years of LOW-RISK & HIGH-RETURN Includes only operated activity development…
AssetAppendix Overview NYSE: DVN devonenergy.com
Free Cash Flow Priorities Q3 VARIABLE DIVIDEND CALCULATION FIXED + VARAIABLE DIVIDEND 1 Fixed dividend is paid quarterly at 0.11 per share 1,544 MM Adjusted Cash Flow (Non-GAAP) Variable dividend is up to 50% of excess free cash…
Our Investment-Grade Financial Strength Substantial debt reduction completed year to date Outstanding debt maturities through 2030 (MM) 5,300 Reduced outstanding debt by 1.2 billion year to date EXECUTING ON OUR Net…
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