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2Q22 Earnings Presentation – Devon Energy Corp

Devon Energy Corp · Aug 1, 2022 · 25 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. 2Q22 Earnings Presentation – Devon Energy Corp – slide 1
    Q2 2022 Earnings Presentation August 1, 2022 NYSE: DVN devonenergy.com
  2. 2Q22 Earnings Presentation – Devon Energy Corp – slide 2
    Key Takeaways From Our Presentation 1 FIXED + VARIABLE DIVIDEND INCREASES 22% Total dividend of 1.55 per share announced with Q2 results 2 BUYBACK PROGRAM CONTINUES TO PROGRESS Repurchased 4% of outstanding shares since program…
  3. 2Q22 Earnings Presentation – Devon Energy Corp – slide 3
    Our Disciplined Business Model DISCIPLINED MODERATING OIL GROWTH targets: up to 5% annually GROWTH STRATEGY Focused on delivering per-share financial growth STRATEGY ANCHORED BY REDUCED Returns-driven strategy prioritizes FREE CASH…
  4. 2Q22 Earnings Presentation – Devon Energy Corp – slide 4
    Portfolio Built to Deliver Sustainable Performance PREMIER MULTI-BASIN PORTFOLIO WILLISTON BASIN 45 MBOED Acreage resides in top U.S. resource plays Underpinned by world-class Delaware Basin position POWDER RIVER BASIN 19 MBOED…
  5. 2Q22 Earnings Presentation – Devon Energy Corp – slide 5
    Creating Significant Value for Shareholders Delivering on our promise to return value to shareholders Cumulative value returned ( in billions) 100% OF MERGER VALUATION (1) RETURNED TO SHAREHOLDERS 6.2 Cash-return framework…
  6. 2Q22 Earnings Presentation – Devon Energy Corp – slide 6
    Q2 2022 Another Impressive Financial Performance Key financial metrics Q2 2022 Change (vs. Q122) Fixed-plus-variable dividend payout 200% 1.55 Core earnings (per share) 2.59 38% 1.27 EBITDAX (MM) 2,833 33% DIVIDEND GROWTH VS. Q2…
  7. 2Q22 Earnings Presentation – Devon Energy Corp – slide 7
    Updated Outlook Free Cash Flow Profile Improves Raising financial & operating outlook for 2022 Free cash flow generation outlook strengthens 2022e outlook 2022e free cash flow ( in billions) 600-610 1.75 (0.15) PRODUCTION (0.10)…
  8. 2Q22 Earnings Presentation – Devon Energy Corp – slide 8
    Compelling Free Cash Flow Yield Devons attractive free cash flow yield Providing an opportunity vs. broader market 2022e free cash flow yield sensitives 2022e free cash flow yield vs. broader market 17% 16% 18% 16% FREE CASH FLOW…
  9. 2Q22 Earnings Presentation – Devon Energy Corp – slide 9
    Free Cash Flow Priorities SHAREHOLDER-FRIENDLY STRATEGY FIXED + VARIABLE DIVIDEND 1 Fixed dividend is paid quarterly at 0.18 per share 16% FCF Yield 75% Variable dividend is up to 50% of excess free cash flow ALLOCATED TO…
  10. 2Q22 Earnings Presentation – Devon Energy Corp – slide 10
    A History of Returning Cash to Shareholders Delivering dividend growth through the cycle Dividends per share (1) OUR CASH-RETURN STRATEGY 5.00 30 Raised fixed quarterly dividend by 13% CONSECUTIVE to 0.18 per share for Q2 2022…
  11. 2Q22 Earnings Presentation – Devon Energy Corp – slide 11
    Delivering a Market-Leading Dividend Yield 10% OUR MARKET-LEADING YIELD (1) 8% 6 TIMES HIGHER than the S&P 500 yield 8% 2022e Annualized Dividend Yield SHARE BUYBACK enhances cash returns (pg. 12) ORGANICALLY FUNDED within…
  12. 2Q22 Earnings Presentation – Devon Energy Corp – slide 12
    Opportunistically Repurchasing Our Shares 2.0 BILLION BUYBACK PROGRAM UNDERWAY LEADING THE INDUSTRY WITH DISCIPLINE & CASH RETURNS Repurchased 1.2 billion of shares to date Retired at average price of 50 per share Program…
  13. 2Q22 Earnings Presentation – Devon Energy Corp – slide 13
    Improving Our Financial Strength Achieved balance sheet leverage target INVESTMENT-GRADE FINANCIAL POSITION Net debt to EBITDAX (Trailing 12-months) Strong liquidity: 3.5 billion of cash (as of 6/30/22) 1.4x Reduced net debt by…
  14. 2Q22 Earnings Presentation – Devon Energy Corp – slide 14
    Preliminary Thoughts on 2023 Outlook NO CHANGE TO OUR STRATEGIC PLAN Focused on PER-SHARE financial growth Planning for STEADY & CONSISTENT activity PRIORITIZING free cash flow generation Committed to MARKET-LEADING cash…
  15. 2Q22 Earnings Presentation – Devon Energy Corp – slide 15
    AssetOperations Overview Update NYSE: DVN devonenergy.com
  16. 2Q22 Earnings Presentation – Devon Energy Corp – slide 16
    Executing on Our Disciplined Plan Outstanding Q2 execution Controlling capital costs Delivering margin expansion Key quarterly highlights Upstream capital ( in millions) Field-level operating margin (/BOE) 5% 62% 540 60.12…
  17. 2Q22 Earnings Presentation – Devon Energy Corp – slide 17
    Delaware Basin Our Franchise Growth Asset HIGH-MARGIN GROWTH WOLFCAMP & BONE SPRING +22% CO-DEVELOPMENT VS. Q2 2021 436 Mr. Potato Head (9,800 laterals) MBOED 9 Wolfcamp & Bone Spring wells SUCCESSFUL Avg. IP30: 3,100 BOED/well…
  18. 2Q22 Earnings Presentation – Devon Energy Corp – slide 18
    Acreage Trades Optimizing Value of Our Resource TRADES UNLOCK CORE INVENTORY ADDING ACREAGE IN CORE OF PLAY 200 DRILLING TOP HIGHLIGHT STATELINE AREA TRADE Traded 7,000 net acres year to date LOCATIONS 3,000 ACRES (7,000 NET…
  19. 2Q22 Earnings Presentation – Devon Energy Corp – slide 19
    Bolt-On Acquisition Enhances Williston Position PURCHASE DETAILS OVERLAPS EXISTING POSITION IN CORE OF THE PLAY Contiguous operated position of 38,000 net acres Mountrail Price: 865 million (100% cash) Effective Date: 4/1/2022…
  20. 2Q22 Earnings Presentation – Devon Energy Corp – slide 20
    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 Expect to bring online 40…
  21. 2Q22 Earnings Presentation – Devon Energy Corp – slide 21
    AssetAppendix Overview NYSE: DVN devonenergy.com
  22. 2Q22 Earnings Presentation – Devon Energy Corp – slide 22
    Free Cash Flow Priorities FIXED + VARIABLE DIVIDEND Q2 VARIABLE DIVIDEND CALCULATION 1 Fixed dividend is paid quarterly at 0.18 per share Variable dividend is up to 50% of excess free cash flow 2,480 MM Adjusted Cash Flow…
  23. 2Q22 Earnings Presentation – Devon Energy Corp – slide 23
    Our Investment-Grade Financial Strength Strong liquidity with minimal near-term debt maturities Outstanding debt maturities through 2030 (MM) 6,500 Reduced outstanding debt by 1.2 billion since merger close EXECUTING ON OUR Net…
  24. 2Q22 Earnings Presentation – Devon Energy Corp – slide 24
    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…
  25. 2Q22 Earnings Presentation – Devon Energy Corp – slide 25
    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…

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