Slide 1: Q3 2024 Earnings Presentation
Q3 2024 Earnings Presentation November 5, 2024 NYSE: DVN devonenergy.com
Slide 2: Q3 2024 – Key Highlights
Q3 2024 – Key Highlights DELIVERED STRONG FINANCIAL AND OPERATING RESULTS OIL PRODUCTION REACHED 335,000 BARRELS PER DAY GENERATED $786 MILLION OF FREE CASH FLOW RETURNED $431 MILLION OF FREE CASH FLOW TO SHAREHOLDERS CLOSED STRATEGIC ACQUISITION IN THE WILLISTON BASIN | Q3 2024 Earnings P
Slide 3: 2025 Focus
2025 Focus OPERATING EXCELLENCE LEADING THE INDUSTRY WITH DISCIPLINE & SUSTAINING A SUPERIOR PORTFOLIO CASH RETURNS MAINTAINING FINANCIAL STRENGTH & FLEXIBILITY DELIVERING VALUE TO SHAREHOLDERS | Q3 2024 Earnings Presentation 3
Slide 4: Q3 2024 – Executing on Our Operating Plan
Q3 2024 – Executing on Our Operating Plan Capital efficient Q3 2024 program High-margin production growth Effectively controlling cost Q3 2024 activity Oil production (MBOD) LOE & GP&T ($/BOE) AVERAGE 20 335 +4% $9.27 9% DRILLING RIGS OPERATED RIGS GROWTH $9.02 REDUCTION 300 (VS. Q3 2023) (VS. Q1 20
Slide 5: Delaware Basin – Our Franchise Asset
Delaware Basin – Our Franchise Asset Q3 2024 Projects CAPITAL-EFFICIENT PRODUCTION GROWTH (55 Wells Online) TOTAL DELAWARE PRODUCTION (MBOED) 488 +6% New Mexico VS. Q2 2024 461 VOLUMES Texas 437 427 414 Eddy Lea New Mexico 2022 2023 Q1 2024 Q2 2024 Q3 2024 Texas CBR 12-1 DEVELOPMENT 21-well projec
Slide 6: Delaware Basin – Operating Efficiencies Advance
Delaware Basin – Operating Efficiencies Advance IMPROVING WELL PERFORMANCE IN 2024 COMPLETION EFFICIENCIES CUMULATIVE OIL VOLUMES, MBO (NORMALIZED FOR 10,000’ LATERALS) COMPLETED FEET PER DAY (ALL FORMATIONS) 2,402 ~20% 2,152 12% 225 IMPROVEMENT 1,911 1,955 (vs. 2023 PROGRAM) 1,713 IMPROVEMENT (2024
Slide 7: Acquisition Transforms Williston Basin Business
Acquisition Transforms Williston Basin Business Creates a leading 430,000 net acre position in the Williston Basin Williams Adds oil-weighted production with extensive midstream infrastructure Mountrail Secures 500 undrilled gross locations and 300 high-quality refrac candidates McKenzie North
Slide 8: Q3 2024 – Another Impressive Financial Performance
Q3 2024 – Another Impressive Financial Performance RETURNING VALUE TO SHAREHOLDERS Key financial metrics Q3 2024 ($ IN MILLIONS) Realized price ($/BOE) $40.71 (1) Share Buybacks Core earnings (per share) $1.10 $295 MM $431 MM EBITDAX ($MM) $1,853 Q3 2024 CASH RETURNS Operating cash flow ($MM) $1,663
Slide 9: Significant Financial Strength & Liquidity
Significant Financial Strength & Liquidity TOTAL LIQUIDITY CASH BALANCE LOW LEVERAGE $3.7 B $0.7 B 1.1x CASH & UNDRAWN CASH POSITION NET DEBT-TO-EBITDAX CREDIT FACILITY AS OF 9/30/2024 AS OF 9/30/2024 CREDIT RATINGS DEBT REDUCTION PLAN RETIRED DEBT BBB/Baa2 $2.5 B $0.5 B (1) INVESTMENT-GRADE AT ABSO
Slide 10: Preliminary 2025 Outlook
Preliminary 2025 Outlook Financial & operating outlook for 2025 Positioned for an attractive free cash flow yield in 2025 2025e outlook Free cash flow sensitivities based on preliminary 2025 outlook 14% PRODUCTION ~800 FREE CASH FLOW YIELD VOLUMES MBOED (Oil: ~380 MBOD) 9% 12% $3.0 TOTAL $4.0-$4.2 F
Slide 11: For more information. Thank you.
For more Q3 Supplemental Tables Q4 Guidance Tables + information Thank you. visit our website
Slide 12: Asset Appendix
AssetAppendix Overview NYSE: DVN devonenergy.com
Slide 13: Q3 2024 – Earnings Summary
Q3 2024 – Earnings Summary Net core earnings change quarter over quarter $ in millions $51 ($175) $885 $25 ($26) ($59) ($18) $683 Q2 2024 Production Realized Prices & Production DD&A G&A & Other Income Taxes Q3 2024 Volumes Hedge Settlements Expenses | Q3 2024 Earnings Presentation 13
Slide 14: Q3 2024 – Cash Flow Summary
Q3 2024 – Cash Flow Summary Exiting the quarter with strong liquidity $ in millions Q3 2024 Benchmark Prices $1,647 $16 ($877) Oil ($/Bbl) – WTI: $75.20 Natural Gas ($/Mcf) – Henry Hub: $2.15 NGLs ($/Bbl) – Mont Belvieu: $25.20 (1) ($199) ($567) $1,169 ($472) ($41) $676 Cash Flow Changes in Ca
Slide 15: Our Investment-Grade Financial Strength
Our Investment-Grade Financial Strength Substantial debt reduction completed year to date Outstanding debt maturities ($MM) $3,700 Cash $700 $2.5B Retired $472 million of notes at maturity in Q3 2024 Targeting <1.0x debt-to-EBITDAX ratio (1.1x as of 9/30/2024) DEBT REDUCTION PROGRAM UNDERWAY ~
Slide 16: Investor Contacts & Notices
Investor Contacts & Notices risks related to our hedging activities; our limited control over third parties who operate some of our oil and gas properties; midstream capacity Investor Relations Contacts constraints and potential interruptions in production, including from limits to the build out of