Slide 1: First-Quarter 2014 Earnings Conference Call
First-Quarter 2014 Earnings Conference Call May 7, 2014
Slide 2: Investor Notices
Investor Notices Safe Harbor Some of the information provided in this presentation includes “forward-looking statements” as defined by the Securities and Exchange Commission. Words such as “forecasts," "projections," "estimates," "plans," "expectations," "targets," and other comparable terminology o
Slide 3: First-Quarter 2014 Highlights
First-Quarter 2014 Highlights • Delivered U.S. oil production growth of 56% year over year(1) — Achieved excellent well results in the Delaware Basin — Eagle Ford contributed 1 month of production to Q1 • Expanded operating margins by 54% year over year • Closed Eagle Ford acquisition and EnLink Mid
Slide 4: Delivering Strong Oil Growth
Delivering Strong Oil Growth U.S. Oil Production (1) Total Oil Production (1) Q4 2014e Product Mix (1) (MBOD) (MBOD) 176 146 37% 98 43% 63 20% Q1 2013 Q1 2014 Q1 2013 Q1 2014 U.S. Canada Oil NGLs Natural Gas (1) Excludes assets identified for monetization. NYSE: DVN www.devonenergy.com Slide 4
Slide 5: Higher Revenues & Expanding Margins
Higher Revenues & Expanding Margins Oil-Weighted Upstream Revenue Unhedged Operating Margin per BOE (1) Increased 42% Year over Year Q1 2014 Revenue Mix $32.23 15% $20.87 52% 33% Q1 2013 Q1 2014 Oil NGLs Natural Gas (1) Unhedged operating margin is a non-GAAP measure. Represented above is unhedged u
Slide 6: 2014 Production Growth Targets
2014 Production Growth Targets U.S. Oil Production (1) Total Oil Production (1) BOE Production (1) (MBOD) (MBOD) (MBOED) 198 - 216 579 - 622 539 152 124 - 136 73 2013 2014e 2013 2014e 2013 2014e U.S. Canada 6:1 20:1 (1) Estimates exclude assets identified for monetization. NYSE: DVN www.devonenergy.
Slide 7: Preliminary 2015 Outlook
Preliminary 2015 Outlook Total Oil Production (1) Key Highlights (MBOD) • On track to deliver 2015e oil production growth >20% (1) — Driven by Eagle Ford, Permian and Jackfish 3 Oil 198 - 216 • High margin production growth expected to expand operating Natural margins Gas NGLs 2014e 2015e (1) Estima
Slide 8: Jackfish SAGD Developments
Jackfish SAGD Developments Significant Free Cash Flow Generation Free Cash Flow Outlook 1,200 1,000 800 $ in millions 600 400 200 0 2014e 2015e 2016e 2017e 2018e 2019e 2020e 2021e 2022e 2023e 2024e 2025e Assumptions: 1) $90 WTI oil and $4.50 Henry Hub natural gas 2) Bitumen realizations at 65% of WT
Slide 9: Devon Oil Production
Devon Oil Production Significant Oil Producer in North America Q4 2013 Oil Production Pro Forma New Devon(1) vs. N.A. Onshore Pure-Play Peers 250 200 150 MBOD 100 50 0 EOG CHK CLR WLL PXD CXO NFX OAS XEC SD MEG ECA LPI RRC FANG U.S. Canada (1) Pro Forma for Eagle Ford assets and excluding assets ide
Slide 10: Delaware Basin
Delaware Basin Significant Resource Opportunity Delaware Sands 80,000 net acres Leonard Shale Central Eddy 60,000 net acres Bone Spring 285,000 net acres Lea Wolfcamp New Mexico Texas >100,000 net acres Loving Total Leasehold By Formation: >500,000 Net Acres OKLAHOMA Winkler NEW MEXICO Reeves Ward T
Slide 11: Delaware Basin
Delaware Basin Significant Resource Opportunity 2014e Risked Producing Activity Undrilled Formation Net Acres Wells (Wells Drilled) Locations Delaware Sands 80,000 78 20 700 Leonard Shale 60,000 40 1 700 Bone Spring 285,000 233 ≈120 3,500 Wolfcamp Under >100,000 12 3 Evaluation Other (Yeso & Strawn)
Slide 12: Eagle Ford Production Outlook
Eagle Ford Production Outlook 2014e Production Outlook Multi-Year Production Outlook (MBOED) (MBOED) >100 80 – 85 70 – 80 (1) 65 – 70 64 49 March 2014 Current Q2 2014e 2H 2014e 2014e 2015e (1) Represents Devon’s estimated net production from March through December. Slide 12
Slide 13: Eagle Ford – Lavaca County
Eagle Ford – Lavaca County Recent Industry Success Sustr #1H Devon’s Lavaca County 24-Hr IP: 1,054 BOED Pavlicek Un 2H • Net acres: 32,000 24-Hr IP: 1,319 BOED Targac #1H • <10% of acquisition value 24-Hr IP: 1,398 BOED Zebra Hunter 2H assigned 24-Hr IP: 1,511 BOED Fojtik #1H 24-Hr IP: 1,209 BOED •
Slide 14: Other Core & Emerging Assets
Other Core & Emerging Assets First Quarter Highlights Thermal Heavy Oil Thermal Heavy Oil Q1 Gross Production: 62,000 BOD • Jackfish 1 & 2 excellent performance Q1 Net Production: 52,000 BOD • Jackfish 3 plant commissioning underway • Pike approval process remains on track ALBERTA Rockies Oil Cana-W
Slide 15: Q&A
Q&A