Q4 2021 Earnings Presentation February 15, 2022 NYSE: DVN devonenergy.com
Key Takeaways From Our Presentation FIXED + VARIABLE DIVIDEND INCREASES 1 Total dividend of 1.00 per share announced with Q4 results RAISING FIXED DIVIDEND BY 45% IN 2022 2 Board approved a 0.05 per share increase effective in…
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 scale & cost…
Q4 2021 Executing on Our Disciplined Plan Outstanding Q4 execution Expanding free cash flow Increasing dividend payout Key quarterly highlights Free cash flow ( in millions) Fixed-plus-variable payout (/share) 1,104 1.00 PRODUCTION 3%…
2021 A Year of Outstanding Achievement DELIVERING ON OUR COMMITMENT Completed TRANSFORMATIONAL merger TO SHAREHOLDERS Generated RECORD-SETTING free cash flow 1.3B Dividend Payments 589MM (Payout +190% YoY) Share Buyback…
Strong Cash Flow Growth Continues in 2022 Prioritizing free cash flow over volume growth Positioned for an attractive free cash flow yield in 2022 2022e outlook 2022e free cash flow sensitivities 17% 570-600 18% TOTAL FREE CASH…
Accelerating Cash Returns to Shareholders A history of returning cash to shareholders (Dividends per share) 2x CASH-RETURN STRATEGY (1) VS. 2021 29 Raising fixed quarterly dividend by 45% CONSECUTIVE to 0.16 per share in…
Delivering a Market-Leading Dividend Yield 10% 8% (1) OUR MARKET-LEADING YIELD 6 TIMES HIGHER than the S&P 500 yield 8% 2022e Annualized Dividend Yield SHARE BUYBACK enhances cash returns (pg. 10) ORGANICALLY FUNDED within…
Compelling Alternative for Yield-Seeking Investors Historically low interest-rate environment has compressed yields across most asset classes 14% 10-YEAR U.S. TREASURY YIELD 12% S&P 500 DIVIDEND YIELD ADVANTAGED YIELD DEVONS 2022E…
Increasing Share-Repurchase Program to 1.6 Billion EXPANDING AUTHORIZATION TO 1.6 BILLION LEADING THE INDUSTRY WITH DISCIPLINE & CASH RETURNS Repurchased 589 million of shares in Q4 Retired at average price of 42 per share Board…
Improving Our Financial Strength Achieved balance sheet leverage target INVESTMENT-GRADE FINANCIAL POSITION Net debt-to-EBITDAX Strong liquidity: 2.3 billion of cash (as of 12/31/21) 1.4x Improved net debt by 20% since merger…
Devons Unique Investment Proposition HIGH-QUALITY PORTFOLIO Underpinned by world-class Delaware Basin asset Margins & free cash flow to expand in 2022 MARKET-LEADING DIVIDEND MARKET-LEADING DIVIDEND Providing 2022e annualized…
2022 Operating Outlook Capital efficient 2022 program Delaware focused capital program Balanced commodity exposure 2022e capital activity Upstream capital (in billions) 2022e total production by product 1.9-2.2 B GAS 75% OIL…
Delaware Basin Our Franchise Growth Asset HIGH-MARGIN GROWTH +34% 416 LEADING DELAWARE VS. Q1 2021 ACREAGE POSITION 400K 409 TOP-FUNDED AREA: MBOED NET SOUTHEAST NEW MEXICO ACRES 358 2022 Program Overview Running 9 operated…
Efficiencies Mitigating Inflationary Pressures Drilled & completed feet per day Drilled & completed cost per foot (1) Delaware Basin development activity Delaware Basin development activity 2,200 940 Completions 168% 846 41%…
Anadarko Basin Dow Partnership Builds Momentum Improved capital efficiency with up-spaced developments FREE CASH FLOW 550 MILLION IN 2021 MERAMEC DEVELOPMENTS FLOWING BACK 9.0 25% 250 Initial Results (4-well avg.) Type Curve…
Free Cash Flow Generating Assets High-margin oil resource opportunity in economic core of the play WILLISTON Our free cash flow generating assets Generated 700 million of free cash flow in 2021 BASIN are critical to the continued…
Strengthening Our Environmental Performance Committed to aggressive emissions targets Reducing Scope 1 & 2 GHG emissions Targeting net zero GHG emissions by 2050 (Scope 1&2) (Million tonnes CO2e) Plan to reduce methane emissions by 65%…
AssetAppendix Overview NYSE: DVN devonenergy.com
Free Cash Flow Priorities Q4 VARIABLE DIVIDEND CALCULATION FIXED + VARIABLE DIVIDEND 1 Fixed dividend is paid quarterly at 0.16 per share 1,718 MM Adjusted Cash Flow (Non-GAAP) Variable dividend is up to 50% of excess free cash…
Expanding Full Cycle Corporate Returns Disciplined plan is delivering excellent returns Return on capital employed (ROCE) (1) 2021 ROCE CALCULATION (Non-GAAP) (1) 30% SUPERIOR RETURNS VS. BROADER MARKET 2,374 MM Core Earnings 282…
Innovation & Technology Contributing to Performance OUR COMMITTED DELIVERING SCALING RESULTING TECHNOLOGY TO TECHNOLOGY TIMELY & TECHNOLOGY IN ENHANCED STRATEGY INVESTMENT QUALITY DATA WITH PARTNERS PERFORMANCE OUR TECHNOLOGY…
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