Slide 1: Q4 2014 Management Commentary
Q4 2014 Management Commentary February 17, 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 February 17, 2015. The commentary and other materials furnished in connection with the quarterly earnings release i
Slide 3: Fourth-Quarter & 2014 Highlights
Fourth‐Quarter & 2014 Highlights U.S. Oil Production Growth(1) Q4 oil production exceeds guidance MBOD 146 80 Q4 total production increased 20% 82% Growth Q4 2013 Q4 2014 Record midstream operating profit Market Value of EnLink Ownership $ Billions $7.6 Cash costs decline in Q4 $4.8 Proved oil reser
Slide 4: Strategy For Long-Term Success
Strategy For Long‐Term Success Premier and sustainable asset portfolio Heavy Oil — High‐returning projects — Significant inventory in core areas — Balanced between oil and gas — Continually high‐grade Rockies Oil Superior execution — Technical and operational excellence Mississippian‐ — Optimize bas
Slide 5: 2015 Capital Allocation
2015 Capital Allocation E&P Capital Reduced 20% Key Highlights 2015 E&P Capital Budget $4.1 ‐ $4.4 Billion Balances capital with cash inflows Miss‐ Woodford Land/ Tech. Barnett Reduced 20% from 2014 1% Rockies 5% 3% 8% 30% Focused on best development Anadarko Permian Basin 10% Basin opportunities Mi
Slide 6: 2015 Production Outlook
2015 Production Outlook Production Guidance Unchanged Key Highlights Total Oil Production(1) MBOD 2015 oil production growth: ≈20% ‐ 25%(1) 250 ‐ 260 — Driven by Eagle Ford, Permian & Jackfish 3 209 Top‐line BOE growth: ≈5%(1) ≈20‐25% Capital efficient growth achievable with Growth 20% less spend th
Slide 7: Q4 Operating Highlights
Q4 Operating Highlights Superior Execution Drives Value Growth Heavy Oil Prolific Eagle Ford development wells Raising Eagle Ford type curve Rockies Oil New completion design in Delaware Basin Mississippian‐ Woodford Anadarko Basin Jackfish 3 ramp‐up exceeds expectations Permian Basin Barnett Shale
Slide 8: Financial Strength & Flexibility
Financial Strength & Flexibility Strong investment‐grade ratings — Cash balances: $1.5 billion — Net debt(1): $7.8 billion (excluding EnLink) Cash flow protected by hedges — >50% of 2015 oil protected at $91 per barrel — ≈40% of 2015 gas protected at $4.17 per Mcf — Fair market value of hedges: ≈$2
Slide 9: Thank You
Thank You NYSE: DVN devonenergy.com
Slide 10: Discussion of Risk Factors
Discussion of Risk Factors Forward‐Looking Statements: Information provided in this report 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”, “plans”