Devon Energy Corporation · NYSE:DVN
Devon Energy — Merger or Acquisition (November 2001)
9 slides from Devon Energy's merger presentation, Nov 28, 2001
Slide 1: Corporate Overview
OCVOH Ewenay Corporate Overview Shares outstanding: Equity capitalization: Enterprise value: Senior credit rating: S&P Moody's Fitch (D & P) Pro forma data for the cambination of Devan, Mitchell and Anderson 155 MM ~$6.1B ~$14.1B BBB+ Baa2 BBB
Slide 2: Corporate Overview
OCVOH Ewenay Corporate Overview Proved Reserves: 2,044 MMBOE Production Profile: 95% North America 5% International Production Mix: 64% gas / 36% liquids R/P Ratio: 9.8 years Pro forma data for the cambination of Devan, Mitchell and Anderson
Slide 3: Acquisition Financing (Term Loan)
OCVOH Ewenay Acquisition Financing (Term Loan) ° 5 year term loan: $3 billion « Rate as of 10/26/01: 3.28% —After-tax rate: 2.00% ¢ Back-end weighted amortization Note: Assumes combined federal and state income tax rate af 39%.
Slide 4: Debt Reduction Plan
OCVOH Ewenay Debt Reduction Plan * Excess Cash Flow — Protected via hedging: + 30% of pro forma @2 ’01 total production hedged in ‘02 (prices: > $3.15/MCF and > $22.00/Bbl) ° 17% of pro forma Q2 ‘01 gas production hedged in ‘03 (price: > $3.20/MCF) + » $1 billion non-core property sales
Slide 5: Net Debt per BOE Proved Reserves
OCVOH ewenay Net Debt per BOE Proved Reserves (BOE @ 6:1) 3.94 0.74 0.78 068 083 0.85 0.19 BB199 199 8130101 Pro. 99! 00 "Bro Forma Forma ‘8 89 90 ‘91 92 ‘93 04 95 ‘96 ‘87 ‘98 Note: 8/81/99 pro forma represents the Devon/Pennzenergy merger. 6/30/01 pro forma represents Devon, ‘Anderson and Mitchell.
Slide 6: Peace River Arch
Ocvonl eneney Peace River Arch Large established land position Devon Northstar Bevan Anderson Q2 ‘01 pro forma production a Gas: 142 MMCFD aula Liquids: 6,460 BOD Moderate well depths Ownership in key infrastructure i Significant recent success
Slide 7: Deep Basin
Ocvonl eneney Deep Basin Strategic exploratory land Q2 ‘01 pro forma production Gas: 80 MMCFD Liquids: 4,200 BLD Mid-depth, liquid rich gas targets to deep lean gas Year-round access Ownership in key infrastructure 30 Miles sa ° Significant recent success
Slide 8: NW Alberta/NE B.C.
OcvoHl enerey NW Alberta/NE B.C. Significant operational synergy Q2 ‘01 pro forma production Gas: 150 MMCFD + Liquids: 6,600 BLD Strong growth potential + | : from multi-zone gas Gams amma = i 20Miles —
Slide 9: Northern Foothills
20 Miles British Columbia ‘Alberta Westcoast Sour |] Pipeline Ocvonl eneney Northern Foothills Multi-zone sour & sweet gas potential 2001 activity: yielded 4 sour & 6 sweet gas wells, > 90 MMCFD of shut-in gas production Narraway: 134 MMCFD (42% WI) Devon operated sweet gas plant est. on-stream earl