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Goldman Sachs Global Energy and Clean Technology Conference – Devon Energy Corp

Devon Energy Corp · Jan 5, 2022 · 21 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. Goldman Sachs Global Energy and Clean Technology Conference – Devon Energy Corp – slide 1
    Investor Presentation January 2022 NYSE: DVN devonenergy.com
  2. Goldman Sachs Global Energy and Clean Technology Conference – Devon Energy Corp – slide 2
    A Leading U.S. Energy Company LEADING THE INDUSTRY WITH PREMIER MULTI-BASIN PORTFOLIO DISCIPLINE & CASH RETURNS DISCIPLINED RETURNS-DRIVEN STRATEGY SIGNIFICANT FINANCIAL STRENGTH & LIQUIDITY PRIORITIZING CASH RETURNS TO…
  3. Goldman Sachs Global Energy and Clean Technology Conference – Devon Energy Corp – slide 3
    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…
  4. Goldman Sachs Global Energy and Clean Technology Conference – Devon Energy Corp – slide 4
    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…
  5. Goldman Sachs Global Energy and Clean Technology Conference – Devon Energy Corp – slide 5
    Executing on Our Disciplined Plan Outstanding Q3 execution Expanding free cash flow Increasing dividend payout Key quarterly highlights Free cash flow ( in millions) Fixed-plus-variable payout (/share) 0.84 8X 71% 1,124 PRODUCTION…
  6. Goldman Sachs Global Energy and Clean Technology Conference – Devon Energy Corp – slide 6
    Delaware Basin Drives Our Q3 Performance 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 acreage:…
  7. Goldman Sachs Global Energy and Clean Technology Conference – Devon Energy Corp – slide 7
    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…
  8. Goldman Sachs Global Energy and Clean Technology Conference – Devon Energy Corp – slide 8
    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 17% TOTAL PRODUCTION…
  9. Goldman Sachs Global Energy and Clean Technology Conference – Devon Energy Corp – slide 9
    Accelerating Cash Returns to Shareholders A history of returning cash to shareholders 80% (1) (Dividends per share) GROWTH vs. 2021 EXPANDING DIVIDEND PAYOUT 29 CONSECUTIVE YEARS OF DIVIDEND PAYMENTS Q3 2021 dividend payout…
  10. Goldman Sachs Global Energy and Clean Technology Conference – Devon Energy Corp – slide 10
    A Market Leading Dividend Yield (1) 8% 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…
  11. Goldman Sachs Global Energy and Clean Technology Conference – Devon Energy Corp – slide 11
    Authorized 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 3% of current market capitalization…
  12. Goldman Sachs Global Energy and Clean Technology Conference – Devon Energy Corp – slide 12
    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…
  13. Goldman Sachs Global Energy and Clean Technology Conference – Devon Energy Corp – slide 13
    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…
  14. Goldman Sachs Global Energy and Clean Technology Conference – Devon Energy Corp – slide 14
    Why Own the Go-Forward Devon PREMIER MULTI-BASIN PORTFOLIO A TRUSTED NAME IN THE ENERGY INDUSTRY DISCIPLINED RETURNS-DRIVEN STRATEGY SIGNIFICANT FINANCIAL STRENGTH & LIQUIDITY PRIORITIZING CASH RETURNS TO SHAREHOLDERS…
  15. Goldman Sachs Global Energy and Clean Technology Conference – Devon Energy Corp – slide 15
    AssetAppendix Overview NYSE: DVN devonenergy.com
  16. Goldman Sachs Global Energy and Clean Technology Conference – Devon Energy Corp – slide 16
    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…
  17. Goldman Sachs Global Energy and Clean Technology Conference – Devon Energy Corp – slide 17
    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…
  18. Goldman Sachs Global Energy and Clean Technology Conference – Devon Energy Corp – slide 18
    Committed to Aggressive Emissions Reductions ENVIRONMENTAL PERFORMANCE TARGETS 0.5 GHG EMISSIONS GHG EMISSIONS INTENSITY METHANE EMISSIONS FLARING INTENSITY ROUTINE FLARING 50 65 % ENTIRELY SCOPE 1 & 2 SCOPE 1 & 2 INTENSITY…
  19. Goldman Sachs Global Energy and Clean Technology Conference – Devon Energy Corp – slide 19
    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…
  20. Goldman Sachs Global Energy and Clean Technology Conference – Devon Energy Corp – slide 20
    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…
  21. Goldman Sachs Global Energy and Clean Technology Conference – Devon Energy Corp – slide 21
    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…

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