Q1 2022 Earnings Presentation May 2, 2022 NYSE: DVN devonenergy.com
Key Takeaways From Our Presentation 1 FIXED + VARIABLE DIVIDEND INCREASES 27% Total dividend of 1.27 per share announced with Q1 results 2 BUYBACK PROGRAM EXPANDED TO 2.0 BILLION Repurchased 3% of outstanding shares since program…
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…
Diversified Portfolio Built to Deliver Sustainable Results WILLISTON BASIN 48 MBOED GAS OIL VOLUMES VOLUMES POWDER RIVER BASIN 26% 50% 18 MBOED DIVERSIFIED COMMODITY EXPOSURE OUR SUSTAINABLE PLATFORM % OF TOTAL PRODUCTION…
2022 Outlook No Change to Our Disciplined Plan Prioritizing free cash flow over volume growth Positioned for an attractive free cash flow yield in 2022 2022e outlook 2022e free cash flow sensitivities 18% TOTAL PRODUCTION 570-600…
A History of Returning Cash to Shareholders Delivering dividend growth through the cycle (Dividends per share) (1) OUR DIVIDEND FRAMEWORK 4.75 29 Raised fixed quarterly dividend by 45% CONSECUTIVE to 0.16 per share in 2022…
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. 9) ORGANICALLY FUNDED within…
Opportunistically Repurchasing Our Shares EXPANDING AUTHORIZATION TO 2.0 BILLION LEADING THE INDUSTRY WITH DISCIPLINE & CASH RETURNS Repurchased 891 million of shares to date Retired at average price of 47 per share Board…
Improving Our Financial Strength Achieved balance sheet leverage target INVESTMENT-GRADE FINANCIAL POSITION Net debt to EBITDAX (Trailing 12-months) Strong liquidity: 2.6 billion of cash (as of 3/31/22) 1.4x Reduced net debt by…
Its Still Early Devons Unique Value Proposition Energy sector weighting as % of the S&P 500 index vs. (1) Iran Oil Embargo 29% S&P 500 30% VALUATIONS REMAIN AT 4x EV/EBITDA 13x HISTORICALLY LOW LEVELS 25% 16% FCF Yield 5%…
Devon-Owned Sand Mine to Improve Capital Efficiency Initial sand mine integrated into operations in Q2 DEVON-OWNED SURFACE ACREAGE IN TEXAS Provides up to 25% of Delaware sand requirements Estimated savings: 200,000 per well…
Diversified Across Top U.S. Resource Plays 3.0 Repeatable resource play with exposure to rising gas & NGL prices ANADARKO Capital efficiency enhanced by 100 million drilling carry with Dow BASIN Columbine 3-mile development…
AssetAppendix Overview NYSE: DVN devonenergy.com
Free Cash Flow Priorities Q1 VARIABLE DIVIDEND CALCULATION FIXED + VARIABLE DIVIDEND 1 Fixed dividend is paid quarterly at 0.16 per share 2,000 MM Adjusted Cash Flow (Non-GAAP) Variable dividend is up to 50% of excess free cash…
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…
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…
Our Investment-Grade Financial Strength Strong liquidity with minimal near-term debt maturities Outstanding debt maturities through 2030 (MM) 5,625 Reduced outstanding debt by 1.2 billion since merger close EXECUTING ON OUR Net…
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…
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