Devon Energy Corporation · NYSE:DVN
Devon Energy — 2001 Fall Energy Symposium (Deutsche Banc Alex. Brown)
25 slides from Devon Energy's conference presentation, Nov 28, 2001
Slide 1: 2001 Fall Energy Symposium
Oevo ENERGY 2001 Fall Energy Symposium Deutsche Banc Alex, Brown October 5, 2001
Slide 2: Risk Factors
OCVOH Ewenay Risk Factors Information provided in this presentation includes “forward- looking statements” as defined by the SEC. Forward-looking statements are identified as “forecasts, projections, estimates, plans, expectations, etc.” and are subject to a variety of risk factors. For representati
Slide 3: Mitchell Acquisition
Ocvonenenay AX Mitchell Energy Mitchell Acquisition ¢ Announced 8/14/01 * Consideration: $31.00 and .585 Devon share per Mitchell share ($60.40 per Mitchell share) * Board approved/Mitchell commitment
Slide 4: Anderson Acquisition
Acton enenay GD Ayoeysoy Anderson Acquisition + Announced 9/04/01 * Terms: All cash tender of C$40 per Anderson share US$ 3.4 billion cash tender US$ 1.2 billion net debt and other obligations US$ 4.6 billion total transaction
Slide 5: Path to Completion
OCVOH Ewenay Path to Completion September 14: Filed amended Mitchell proxy October 12: Anderson tender offer expires Week of October 15: Complete Anderson acquisition November/December: Complete Mitchell acquisition
Slide 6: Term Loan
Ocvonl enenay Term Loan ¢ 5 year term loan: $6 billion ¢ Rate as of 10/02/01: 3.34% —After-tax rate: 2.17% ¢ Back-end weighted amortization
Slide 7: Recent Bond Offerings
OCVOH Ewenay Recent Bond Offerings After-tax Amount Maturity Rate Rate $1.75 B 2011 6.875% 1.53% $1.25 B 2031 7.875% 1.73% $3.00 B Note: After-tax rates assume marginal statutory tax rates as follows: Canada = 44% and U.S. = 35%.
Slide 8: Debt Amortization Schedule
OCVOH Ewenay Debt Amortization Schedule Year $ Billions Year $ Billions 2002 0.06 2009 0.21 2003 - 2010 - 2004 (0) 7/4 2011 DANG! 2005 1.47 2012-2019 - 2006 1.54 2020 0.37 2007 Onn 2021-2030 2008 0.64 2031 1.25
Slide 9: Debt Reduction Plan
OCVOH Ewenay Debt Reduction Plan ¢ Cash flow from operations * = $1 billion non-core property sales
Slide 10: Reserves Per Common Share
OCVOH Ewenay Reserves Per Common Share 12.75 Proved Reserves (BOE @ 6:1) * diluted +55% 561 479 5418 4g4 494 3.76 se 261 282 219 296 87 "88 ‘89 90 ‘91 "92 93 ‘94 95 ‘96 ‘97 ‘96 99 ‘00 ‘OT Pro Forma imi Pro forma reserves combine Devon, as of 12/00, Mitchell as of 6/01 and Anderson as of 08/01. Profo
Slide 11: Production Per Share
OCVOH Ewenay Production Per Share (BOE Per Share @ 6:1) +41% 2 0.23 0.24 0.18 02 ‘87 ‘88 ‘89 90 91 92 ‘93 ‘94 95 ‘96 ‘97 ‘98 ‘99 ‘00 ‘01 Pro Forma IM Represents annualized production for the quarter ended 6/30/01 combined Devan, Mitchell and Anderson. Pro forma basic shares include 29.2 MM for Mitch
Slide 12: North American Core Areas
OCVOH Ewenay North American Core Areas Percent of Total Production ‘Western Canadian Sedimentary Basin Pro Forma Permian/Mid-Continent 31% Rocky Mount: 11% Gulf of Mexico/Gulf Coast _17% Canada 36% Total North America 95% Note: Pro forma production combining Devon, Mitchell ‘and Anderson for the qua
Slide 13: Barnett Shale
OevoHl enenay Barnett Shale + Strategic market access Posie, + 230,000 net acres + WI >90% ° 2.1 TCFE proved reserves (8% of gas in place) * Multi-TCF potential * 2000 wells drilled: 142 @ Bamett Tests ¢ 2001 wells planned: 276 _Infill Pilots
Slide 14: Mitchell Production Growth
OCVOH Ewenay (MMCFE/D) Mitchell Production Growth 437 ) | 313 7 1200 2Q'00 3Q'00 4Q'00 1001 2Q'01
Slide 15: 250,000 net acres
250,000 net acres > 1,300 gross wells drilled to date 400 wells awaiting tie-in Net current production= 90 MMCF/D Big George | Exploration <©
Slide 16: Vermejo Park Ranch
OCVOH Ewenay Vermejo Park Ranch Raton Basin 280,000 gross acres (minerals) WI=25%, NRIF42% 190 wells drilled to date 0.5-1.0 TCF net target Coal seam thickness: > 80 FEET > 60 FEET > 40 FEET > 20FEET
Slide 17: Cherokee Basin CBM
OcVoH enenay Cherokee Basin CBM Kansas Oklahoma. 374,000 net acres * Geology: = Depths 800 - 3,000' — Pennsylvanian coals ' Current Status: — 3 rigs drilling; acquiring fourth — Drilling 2001: 100 wells - 2002: 400 - 500 wells
Slide 18: Coalbed Methane Target Rates
OCVOH Ewenay Coalbed Methane Target Rates RATE, MMCFE/D. 80 480 2 3 3 60 40 RATE, MBOE/D. 20 0 ” 0 2000 2001 2002 2003 2004 2005 2006 San Juan ~ PRB = Raton © Arkoma/Cherokee
Slide 19: Ladyfern Area
evo ewency Ladyfern Area Current production: > 8 MBOE/D 300,000 net undeveloped acres 6 recent 3D seismic programs Multiple target zones: 5-30 BCF 2001 YTD: 3 discoveries
Slide 20: Foothills
OCVOH Ewenay Foothills High impact targets: — Narraway — Cabin Creek — Bighorn — Weejay — West Ojay > 450,000 net undeveloped acres Prospect size: > 50 BCF Pipeline completion =mid-2002
Slide 21: Mackenzie Delta
OCVOH Ewenay Mackenzie Delta High potential area | Large, high-impact targets —Est. 65 TCFE in area Largest land holder Interest in 48% of Mackenzie Delta - 2 MM net acres north of 60° 4 well per year program.
Slide 22: West Africa
[AFRICA | of OCVOH Ewenay West Africa Devon Blocks Marine IX Block 150 MMBOE gross target 37.5% working interest -Expected spud: Q1 2002 Agali Block On trend w/Triton’s La Ceiba 150 MMBOE gross target 50% working interest Expected spud: mid-2002
Slide 23: Summary
Ocvon enenay Summary Focused, North American assets Low-risk, near-term growth High-potential exploration upside Track record of per share growth
Slide 24: Investors and security holders are advised to read the definitive joint proxy statement
Investors and security holders are advised to read the definitive joint proxy statement/ prospectus that will be included in the Registration Statement on Form S-4 filed with the Securities and Exchange Commission in connection with the proposed transaction because it will contain important informat
Slide 25: 2001 Fall Energy Symposium
Oevo ENERGY 2001 Fall Energy Symposium Deutsche Banc Alex, Brown October 5, 2001
Devon Energy — 2001 Fall Energy Symposium (Deutsche Banc Alex. Brown) on 6ix