Devon Energy Corporation · NYSE:DVN
Devon Energy — Investor Presentation (February 2025)
29 slides from Devon Energy's investor presentation, Feb 26, 2025
Slide 1: Investor Presentation
Investor Presentation February 2025 NYSE: DVN devonenergy.com
Slide 2: Devon Energy Overview
Devon Energy Overview FOUNDED IN 1971 HEADQUARTERED IN OKLAHOMA CITY 2,300 EMPLOYEES ONE OF THE LARGEST U.S. PRODUCERS TOTAL PRODUCTION: ~815,000 BOED PUBLICLY TRADED ON NYSE TICKER: DVN ENTERPRISE VALUE: ~$30 BILLION | Investor Presentation 2
Slide 3: Strategic Priorities
Strategic Priorities OPERATING Operating safely, reliably and in an environmentally responsible manner EXCELLENCE Embrace innovative thinking and technology to improve business performance ADVANTAGED Diversified multi-basin portfolio in top U.S. resource plays ASSET PORTFOLIO High-quality in
Slide 4: Devon Going Forward
Devon Going Forward Continuity Opportunity Devon’s Values – Integrity, Focus inward to improve VALUES & capital efficiency, lower costs, Relationships, Courage & STRATEGIC Results raise margins PRIORITIES Operating excellence and a Organically expand culture to succeed inventory & grow returns Commi
Slide 5: Portfolio Built to Deliver Sustainable Performance
Portfolio Built to Deliver Sustainable Performance PRODUCT MIX PREMIER MULTI-BASIN PORTFOLIO ROCKIES Acreage resides in top U.S. resource plays 27% Underpinned by world-class Delaware Basin position 47% GAS OIL 26% $ DIVERSIFIED COMMODITY MIX NGLs Balanced exposure to oil, NGLs & natural gas p
Slide 6: Advantaged Operating Scale
Advantaged Operating Scale TOP U.S. ONSHORE PURE-PLAY PRODUCERS TOTAL PRODUCTION (MBOED) 1,000 750 Total Production (MBOED) Oil Production (MBOD) 500 250 0 TOP ONSHORE PRODUCERS Note: Sourced from FactSet & Devon. Represents Q1 2025 production estimates for Devon and upstream peers with >10% oil mix
Slide 7: Asset Overviews
AssetAsset Overviews Overview NYSE: DVN devonenergy.com
Slide 8: Delaware Basin – Overview
Delaware Basin – Overview PBI POTATO BASIN World-class oil resource with stacked pay potential TODD THISTLE/GAUCHO Lea Multi-decade inventory underpins sustainability Eddy COTTON DRAW RATTLESNAKE Supported by innovative and driven team of experts STATELINE New Mexico Texas 56% OF DEVON PRODUCT
Slide 9: Delaware Basin – Key Statistics
Delaware Basin – Key Statistics CAPITAL PROGRAM TOTAL PRODUCTION VOLUMES (MBOED) 488 2024 2025 474 Activity Plan 461 Operated rigs (average) 15 14 432 437 Wells online (gross operated) 231 ~260 Upstream capital ($ in billions) $2.0 ~$2.0 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 UPSTREAM CAPITAL INVES
Slide 10: Rockies – Overview
Rockies – Overview Williston Basin Powder River Basin Williams Mountrail Campbell Johnson Weston FORT BERTHOLD RESERVATION McKenzie North Dakota Montana Natrona Converse 430,000 NET ACRES Dunn 300,000 NET ACRES | Investor Presentation 10
Slide 11: Rockies – Key Statistics
Rockies – Key Statistics CAPITAL PROGRAM TOTAL PRODUCTION VOLUMES (MBOED) 2024 2025 191 Activity Plan Operated rigs (average) 2 4 74 79 79 79 Wells online (gross operated) 52 ~85 Upstream capital ($ in billions) $0.4 ~$1.0 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 UPSTREAM CAPITAL INVESTMENT PRODUCTIO
Slide 12: Eagle Ford – Overview
Eagle Ford – Overview Repeatable resource play with 90,000 (1) Gonzales NET ACRES significant oil in place to recover Dissolved partnership in Blackhawk Field (close: 4/1/2025e) Wilson Material per well D&C savings expected in the Blackhawk Field 11% OF DEVON ACREAGE POST PRODUCTION Karnes PAR
Slide 13: Eagle Ford – Key Statistics
Eagle Ford – Key Statistics CAPITAL PROGRAM TOTAL PRODUCTION VOLUMES (MBOED) 2024 2025 92 Activity Plan 79 75 72 70 Operated rigs (average) 4 2 Wells online (gross operated) 103 ~80 Upstream capital ($ in billions) $0.6 $0.5 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 UPSTREAM CAPITAL INVESTMENT PRODUCT
Slide 14: Anadarko Basin – Overview
Anadarko Basin – Overview 300,000 NET Repeatable resource play with ACRES exposure to gas & NGL resource Capital efficiency enhanced by Kingfisher extension of drilling carry with Dow Activity focused on Meramec & Blaine Woodford formations 10% Custer Canadian OF DEVON PRODUCTION Washita Q4 20
Slide 15: Anadarko Basin – Key Statistics
Anadarko Basin – Key Statistics CAPITAL PROGRAM TOTAL PRODUCTION VOLUMES (MBOED) 2024 2025 84 87 Activity Plan 82 79 Operated rigs (average) 3 2 74 Wells online (gross operated) 66 ~30 Upstream capital ($ in billions) $0.2 $0.15 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 UPSTREAM CAPITAL INVESTMENT PRO
Slide 16: Gas Portfolio – Significant Upside
Gas Portfolio – Significant Upside DIVERSIFIED NATURAL GAS OUTLETS (2025e pricing exposure) Diversified gas outlets provide significant upside potential Majority of Delaware gas has access to gulf coast markets 2025e NATURAL GAS PRODUCTION Regional gas basis swaps further limit Waha exposure 1
Slide 17: Financial Overview & Shareholder Returns
AssetFinancial Overview& Shareholder Returns NYSE: DVN devonenergy.com
Slide 18: Q4 2024 – Earnings Summary
Q4 2024 – Earnings Summary Net core earnings change quarter over quarter $ in millions $483 ($65) ($118) ($177) ($50) $756 $683 Q3 2024 Production Realized Prices & Production DD&A G&A & Other Q4 2024 Volumes Hedge Settlements Expenses | Investor Presentation 18
Slide 19: Q4 2024 – Cash Flow Summary
Q4 2024 – Cash Flow Summary Exiting the quarter with strong liquidity $ in millions $1,866 ($202) Q4 2024 Benchmark Prices ($1,042) Oil ($/Bbl) – WTI : $70.32 Natural Gas ($/Mcf) – Henry Hub: $2.79 NGLs ($/Bbl) – Mont Belvieu: $27.80 ($444) ($8) $846 $676 Cash Flow Changes in Capital Dividends
Slide 20: Significant Financial Strength & Liquidity
Significant Financial Strength & Liquidity TOTAL LIQUIDITY CASH BALANCE LOW LEVERAGE $3.8 B $0.8 B 1.0x CASH & UNDRAWN CASH POSITION NET DEBT-TO-EBITDAX CREDIT FACILITY AS OF 12/31/2024 AS OF 12/31/2024 CREDIT RATINGS DEBT REDUCTION PLAN UPCOMING MATURITIES BBB/Baa2 $2.5 B ~70% (1) INVESTMENT-GRADE
Slide 21: Improved 2025 Outlook
Improved 2025 Outlook Financial & operating outlook for 2025 2025 outlook represents top-tier capital efficiency 2025e outlook 2025e capital spend per BOE (20:1 gas ratio & 3:1 NGL ratio) $35 PRODUCTION 805-825 VOLUMES (MBOED) 2% IMPROVEMENT FROM PRIOR GUIDE 15% MORE EFFICIENT VS. INDUSTRY PEERS PRO
Slide 22: Disciplined Return of Capital to Shareholders
Disciplined Return of Capital to Shareholders TARGET PAYOUT IN 2025 (% OF FREE CASH FLOW) Targeting up to 70% CASH-RETURN in 2025 RAISING fixed dividend by 9% to $0.24/share BALANCE SHEET 30% Prioritizing SHARE BUYBACK program up to 70% $200-$300 MM of quarterly share buybacks CASH RETURNS Balance s
Slide 23: Our Investment-Grade Financial Strength
Our Investment-Grade Financial Strength Outstanding debt maturities ($ in millions) ~$3,800 Cash ~$800 $2.5B Retired $472 million of notes at maturity in 2024 Targeting <1.0x debt-to-EBITDAX ratio (1.0x as of 12/31/2024) DEBT REDUCTION PROGRAM UNDERWAY ~70% of outstanding debt obligations matu
Slide 24: Devon’s Investment Proposition
Devon’s Investment Proposition DISCIPLINED STRATEGY Focused on growing per-share value Returns-driven strategy prioritizes free cash flow DISCIPLINED STRATEGY ADVANTAGED PORTFOLIO High-quality inventory depth underpins sustainability Underpinned by world-class Delaware Basin asset ADVANT
Slide 25: Appendix
AssetAppendix Overview NYSE: DVN devonenergy.com
Slide 26: 2025 Outlook – Key Asset Highlights
2025 Outlook – Key Asset Highlights DELAWARE INVESTMENT UNDERPINS OUTLOOK Development strategy balances IRR, NPV and inventory >50% Program to benefit from accelerating D&C efficiencies $3.65 (1) CAPITAL ALLOCATED TO BILLION DELAWARE BASIN ROCKIES ACTIVITY FOCUSED ON GRAYSON MILL Integrati
Slide 27: Inventory Depth Underpins Delaware Sustainability
Inventory Depth Underpins Delaware Sustainability DELAWARE BASIN INVENTORY BY KEY OPERATOR SOURCE: ENVERUS INTELLIGENCE 10,000 New 8,000 Mexico Multi-decade resource opportunity PV-10 breakeven: ~$40 WTI oil price (1) Gross Operated Locations Texas ~60% of total company risked resource 6,000 4
Slide 28: Focused on Environmental Excellence
Focused on Environmental Excellence 2024 SUSTAINABILITY REPORT HIGHLIGHTS ENVIRONMENTAL TARGETS GHG EMISSIONS SCOPE 1 & 2 Flared volume intensity was reduced by 82% (1) NET ZERO GHG EMISSIONS FOR SCOPE 1 & 2 BY 2050 Scope 1 & 2 GHG emissions intensity declined by 24% (1) GHG EMISSIONS INTENSITY SCOP
Slide 29: Investor Contacts & Notices
Investor Contacts & Notices parties who operate some of our oil and gas properties; midstream capacity constraints and potential interruptions in production, including Investor Relations Contacts from limits to the build out of midstream infrastructure; competition for assets, materials, people and