Q3 2023 Earnings Presentation November 7, 2023 NYSE: DVN devonenergy.com
Key Takeaways From Our Presentation 1 FIXED + VARIABLE DIVIDEND INCREASED 57% Total dividend of 0.77 per share announced with Q3 results 2 PRODUCTION PER SHARE EXPANDS 10% IN Q3 Delaware Basin results headline Q3 operating…
Our Disciplined Business Model DISCIPLINED MODERATED OIL GROWTH targets: up to 5% annually GROWTH STRATEGY Focused on growing per-share value CONSISTENT Returns-driven strategy prioritizes FREE CASH FLOW generation REINVESTMENT RATES…
Strategy Creating Significant Value for Shareholders Delivering on our promise to shareholders 12 BILLION Cumulative uses of cash since WPX merger ( in billions) SINCE LATE 2020 (2-TIMES MERGER VALUATION) Strategy designed for…
Portfolio Built to Deliver Sustainable Performance PREMIER MULTI-BASIN PORTFOLIO WILLISTON BASIN 54 MBOED Acreage resides in top U.S. resource plays Underpinned by world-class Delaware Basin position POWDER RIVER BASIN…
Advantaged Operating Scale & Diversification Top U.S. onshore pure-play producers Q3 2023 total production (MBOED) (1) Oil Gas 1,000 Volumes Volumes 48% 27% BALANCED 750 COMMODITY EXPOSURE NGL 500 Volumes 25% Total Production…
Q3 Results & Updated 2023 Outlook Q3 RESULTS Q4 OUTLOOK KEY MESSAGES TOTAL 665 650 Production per share increased 10% year over year in Q3 PRODUCTION (MBOED) (MBOED) Q4 outlook impacted by Williston declines & Delaware activity…
Improved Capital Efficiency in 2024 2024 OUTLOOK HIGH-GRADING CAPITAL FREE CASH FLOW GROWTH TOTAL CAPITAL ( IN BILLIONS) ( IN BILLIONS) 10% 20% TOTAL 3.3-3.6 3.80 3.2 CAPITAL BILLION REDUCTION IMPROVEMENT BREAKEVEN…
Catalysts Driving Improved Outlook CONCENTRATING INVESTMENT IN THE DELAWARE Activity to focus on multizone Wolfcamp projects in core of play Infrastructure buildout progressing to ease constraints in 2024 DELAWARE-FOCUSED…
Upcoming Quarterly Production Cadence Dropped to 3 Frac Crews Adding in Delaware 4thFrac Crew Temporary 4th frac crew in in Delaware the Delaware was dropped 321 315 315 300 mid-year to replenish DUC inventory OIL PRODUCTION…
Free Cash Flow Priorities in 2024 TARGET PAYOUT IN 2024 CASH-RETURN OBJECTIVES (% OF FREE CASH FLOW) Targeting 70% cash-return payout to shareholders BALANCE SHEET 30% Expect GROWTH in fixed dividend payout Optimize…
Committed to Improving Financial Strength TOTAL LIQUIDITY CASH BALANCE LOW LEVERAGE 3.8B 0.8B 0.7x CASH & UNDRAWN CASH POSITION NET DEBT-TO-EBITDAX CREDIT FACILITY AS OF 9/30/2023 AS OF 9/30/2023 CREDIT RATINGS DEBT REDUCTION…
Delaware Basin High-Impact Results in Q3 HIGH-IMPACT WOLFCAMP A PROJECT ADDING VALUE WITH ACREAGE TRADES CO-DEVELOPING WOLFCAMP A & B 4,600 BOED 4,100 BOED 3,200 BOED AVG. IP30 RATES/WELL AVG. IP30 RATES/WELL AVG. IP30 RATES/WELL…
Delaware Capital Efficiency Improvements IMPROVING WELL PRODUCTIVITY COMPLETION EFFICIENCIES AVG. 30-DAY INITIAL PRODUCTION RESULTS COMPLETED FEET PER DAY (ALL FORMATIONS) 2,856 20% 3,010 23% 2,101 1,955 IMPROVEMENT 1,713…
Delaware Capital Efficiency to Improve in 2024 IMPROVING DELAWARE WELL PRODUCTIVITY KEY DRIVERS OF IMPROVEMENT 225 Higher allocation towards core of the 10% 12-MONTH CUMULATIVE OIL VOLUMES (MBO) UP play in New Mexico TO…
Inventory Depth Underpins Delaware Sustainability DELAWARE BASIN INVENTORY BY KEY OPERATOR SOURCE: ENVERUS INTELLIGENCE 10,000 Multi-decade resource opportunity across 400,000 net acres 8,000 PV-10 breakeven: 40 WTI per…
Diversified Across Top U.S. Resource Plays 2.5 Validus acquisition drives year-over-year production growth in Q3 EAGLE Asset is projected to generate 1 billion of cash flow in 2023 FORD 2024 capital efficiency enhanced by…
Committed to Environmental Excellence 2023 SUSTAINABILITY REPORT HIGHLIGHTS ENVIRONMENTAL TARGETS Flared volume intensity was reduced by 77% (1) GHG EMISSIONS SCOPE 1 & 2 Scope 1 & 2 GHG emissions intensity declined by 19% (1) NET…
AssetAppendix Overview NYSE: DVN devonenergy.com
Attractive Dividend Payouts Through the Cycle Dividend framework provides torque to higher oil prices Dividend yield sensitivities based on Q3 2023 results (annualized Q3 dividend declared) OUR CASH-RETURN STRATEGY Raised fixed…
Repurchasing Shares Through the Cycle Repurchase program accelerates per-share growth Outstanding shares (MM) 677 (1) 3.0 BILLION BUYBACK PROGRAM Repurchased 2.1 billion of shares to date Upsized authorization 3-times since…
Our Investment-Grade Financial Position Strong liquidity with minimal near-term debt maturities Outstanding debt maturities through 2030 (MM) 3,761 Reduced outstanding debt by 1.5 billion since merger close EXECUTING ON OUR Net…
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