Slide 1: Investor Presentation
Investor Presentation November 2024 NYSE: DVN devonenergy.com
Slide 2: Devon Energy Overview
Devon Energy Overview FOUNDED IN 1971 HEADQUARTERED IN OKLAHOMA CITY 2,000 EMPLOYEES ONE OF THE LARGEST U.S. PRODUCERS TOTAL PRODUCTION: ~820,000 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 SUSTAINING Multi-basin strategy, in top U.S. resource plays A SUPERIOR PORTFOLIO >10 years of low-risk
Slide 4: Portfolio Built to Deliver Sustainable Performance
Portfolio Built to Deliver Sustainable Performance PRODUCT MIX PREMIER MULTI-BASIN PORTFOLIO WILLISTON BASIN Acreage resides in top U.S. resource plays POWDER RIVER BASIN 27% Underpinned by world-class Delaware Basin position 46% GAS OIL 27% $ DIVERSIFIED COMMODITY MIX NGLs Balanced exposure t
Slide 5: 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 Q4 2024 production estimates for Devon and upstream peers with >10% oil mix
Slide 6: Asset Overviews
AssetAsset Overviews Overview NYSE: DVN devonenergy.com
Slide 7: Delaware Basin – Overview
Delaware Basin – Overview PARKWAY 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 67% OF DEVON PRO
Slide 8: Delaware Basin – Key Statistics
Delaware Basin – Key Statistics CAPITAL PROGRAM TOTAL PRODUCTION VOLUMES (MBOED) 2023 2024 488 Activity Plan 460 440 Operated rigs (average) 16 15.5 432 437 Wells online (gross operated) 240 ~230 Upstream capital ($ in billions) $2.2 ~$2.0 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 UPSTREAM CAPITAL INV
Slide 9: 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: ~$40 WTI oil price (1) Gross Operated Locations Texas ~60% of total company risked resource 6,000 4
Slide 10: Williston Basin – Overview
Williston Basin – Overview Over 10 years of sustainable inventory Williams Integration of Grayson Mill Mountrail progressing well Dedicated employees willing to FORT BERTHOLD RESERVATION learn, challenge and improve McKenzie existing processes 8% North Dakota Montana OF DEVON PRODUCTION Q3 202
Slide 11: Williston Basin – Key Statistics
Williston Basin – Key Statistics CAPITAL PROGRAM TOTAL PRODUCTION VOLUMES (MBOED) 2023 2024 61 61 60 Activity Plan(1) 54 55 Operated rigs (average) 1 1.25 Wells online (gross operated) 37 ~40 Upstream capital ($ in billions) $0.3 $0.3 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 UPSTREAM CAPITAL INVESTME
Slide 12: Eagle Ford – Overview
Eagle Ford – Overview Repeatable resource play with 82,000 Gonzales NET ACRES significant oil in place to recover Program focused on optimizing tighter infill spacing Wilson Refracs provide significant resource upside 10% DeWitt OF DEVON PRODUCTION Q3 2024 PRODUCTION EAGLE FORD Karnes OTHER AS
Slide 13: Eagle Ford – Key Statistics
Eagle Ford – Key Statistics CAPITAL PROGRAM TOTAL PRODUCTION VOLUMES (MBOED) 2023 2024 79 Activity Plan 75 72 70 Operated rigs (average) 3 4 (1) 68 Wells online (gross operated) 92 ~100 Upstream capital ($ in billions) $0.8 $0.6 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 UPSTREAM CAPITAL INVESTMENT PRO
Slide 14: Powder River Basin – Overview
Powder River Basin – Overview 300,000 NET ATLAS NORTH Scalable oil resource with significant ACRES position in core of oil fairway HELIOS Weston Established commercial results across Converse County acreage Johnson Campbell Organization focused on cost and capital efficiencies 3% ATLAS WEST AT
Slide 15: Powder River Basin – Key Statistics
Powder River Basin – Key Statistics CAPITAL PROGRAM TOTAL PRODUCTION VOLUMES (MBOED) 2023 2024 19 19 19 Activity Plan 18 18 Operated rigs (average) 1 1 Wells online (gross operated) 14 12 Upstream capital ($ in billions) $0.2 $0.2 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 UPSTREAM CAPITAL INVESTMENT P
Slide 16: Anadarko Basin – Overview
Anadarko Basin – Overview 300,000 NET Repeatable resource play with ACRES exposure to gas & NGL resource DOW DRILLING JV FOCUS AREA Capital efficiency enhanced by Kingfisher drilling carry with Dow Activity focused on Meramec & Blaine Woodford formations 11% Custer Canadian OF DEVON PRODUCTION
Slide 17: Anadarko Basin – Key Statistics
Anadarko Basin – Key Statistics CAPITAL PROGRAM TOTAL PRODUCTION VOLUMES (MBOED) 2023 2024 84 82 Activity Plan 80 79 74 Operated rigs (average) 4 3 Wells online (gross operated) 27 ~65 Upstream capital ($ in billions) $0.2 $0.2 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 UPSTREAM CAPITAL INVESTMENT PROD
Slide 18: Financial Overview & Shareholder Returns
AssetFinancial Overview& Shareholder Returns NYSE: DVN devonenergy.com
Slide 19: 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 $0.5 B (1) INVESTMENT-GRADE AT ABSO
Slide 20: Our Investment-Grade Financial Strength
Our Investment-Grade Financial Strength Substantial debt reduction completed year to date Outstanding debt maturities ($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 21: 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 | Investor Presentation 21
Slide 22: 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) $676 Cash Flow Changes in Ca
Slide 23: Disciplined Return of Capital to Shareholders
Disciplined Return of Capital to Shareholders Cumulative payout since cash-return framework unveiled ($ in billions) $10.8 OUR CASH-RETURN STRATEGY Share Repurchases Variable Dividend $9.1 Targeting up to 70% cash-return payout to shareholders Fixed Quarterly Dividend Fixed dividend is top-prior
Slide 24: 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 25: Devon’s Unique Investment Proposition
Devon’s Unique Investment Proposition DISCIPLINED STRATEGY Focused on growing per-share value Returns-driven strategy prioritizes free cash flow DISCIPLINED STRATEGY HIGH-QUALITY PORTFOLIO Acreage high-graded to the top U.S. resource plays Underpinned by world-class Delaware Basin asset
Slide 26: Appendix
AssetAppendix Overview NYSE: DVN devonenergy.com
Slide 27: 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 28: 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