Slide 1: Q1 2015 Management Commentary
Q1 2015 Management Commentary May 5, 2015 NYSE: DVN devonenergy.com
Slide 2: Investor Notices
Investor Notices Use of Slides The following slide presentation is intended to be viewed in conjunction with the oral management commentary for the quarter posted on Devon’s website on May 5, 2015. The commentary and other materials furnished in connection with the quarterly earnings release include
Slide 3: First-Quarter 2015 Highlights
First‐Quarter 2015 Highlights U.S. Oil Production Growth Record oil production exceeds guidance MBOD 168 98 Eagle Ford and Delaware Basin deliver 72% significant oil growth Growth Q1 2014 Q1 2015 Total production increased 22% Accretive EnLink Transactions ≈$870 Million of Value Cash operating costs
Slide 4: Revised 2015 Production Outlook
Revised 2015 Production Outlook Key Highlights 2015 Oil Production Guidance Raising oil production outlook Using Midpoint, MBOD 270 — Expected 2015 oil growth: 25% ‐ 35% — 7.5 percentage points higher than previous range — Driven by Eagle Ford & Delaware Basin 209 Higher top‐line production expected
Slide 5: Revised 2015 Cost Outlook
Revised 2015 Cost Outlook Key Highlights 2015 E&P Capital Budget $3.9 ‐ $4.1 Billion Land/Tech. Barnett E&P capital reduced by ≈6% Rockies — $250 million decline vs. previous budget Anadarko Permian — Acceleration of service cost savings and capital Basin Basin efficiencies achieved across portfolio
Slide 6: Q1 Operating Highlights
Q1 Operating Highlights Superior Execution Drives Outstanding Results Heavy Oil Eagle Ford delivers significant growth Bone Spring type curve raised Rockies Oil Jackfish 3 drives growth in Canada Anadarko Basin Emerging Meramec potential expands Permian Basin Barnett Shale Eagle Ford Powder River Ba
Slide 7: Financial Overview
Financial Overview Q1 cash flow exceeds Wall St. consensus Excellent financial strength & flexibility — Strong investment‐grade credit ratings — Cash and credit facility availability: ≈$4 billion — Low leverage: $7.5 billion of net debt(1) Accretive EnLink transactions — ≈$215 million from VEX dropd
Slide 8: Thank You
Thank You NYSE: DVN devonenergy.com
Slide 9: Discussion of Risk Factors
Discussion of Risk Factors Forward‐Looking Statements: Information provided in this presentation includes “forward‐looking statements” as defined by the Securities and Exchange Commission. Forward‐looking statements are often identified by use of the words “forecasts”, “projections”, “estimates”, “p