Slide 1: Q4 2024 Earnings Presentation
Q4 2024 Earnings Presentation February 18, 2025 NYSE: DVN devonenergy.com
Slide 2: 2024 – A Year of Outstanding Achievement
2024 – A Year of Outstanding Achievement CONSISTENT PRODUCTION GROWTH TOTAL PRODUCTION BY PRODUCT (MBOED) Produced RECORD OIL & TOTAL VOLUMES 800 737 658 Generated $3.0 BILLION OF free cash flow 600 572 610 Completed strategic WILLISTON BASIN acquisition 400 Returned $2.0 BILLION OF CASH to sharehol
Slide 3: Q4 2024 – Executing on Our Operating Plan
Q4 2024 – Executing on Our Operating Plan Expanding oil production Efficient capital spending Oil production (MBOD) Upstream capital ($ in millions) Delivered excellent operating performance in Q4 3% 3% VOLUME BEAT 398 CAPITAL BEAT $895 Oil production reached record 398,000 barrels per day 385 $872
Slide 4: Eagle Ford – Blackhawk Field Partnership Update
Eagle Ford – Blackhawk Field Partnership Update Texas Devon and BPX agreed to dissolve partnership (1) DeWitt Gonzales Devon will have ~46K net acres with a >95% WI Karnes (2) Operatorship provides development flexibility Karnes Expect material D&C savings on a per well basis ACREAGE DIVIDE
Slide 5: 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 6: 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 7: 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 8: 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 9: 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-$300 MM of quarterly share buybacks CASH RETURNS Balance s
Slide 10: Asset Appendix
AssetAppendix Overview NYSE: DVN devonenergy.com
Slide 11: Strategic Priorities
Strategic Priorities OPERATING Operating safely, reliably and in an environmentally responsible manner EXCELLENCE Embrace innovative thinking and technology to improve business performance ADVANTAGED Diversified multi-basin portfolio in top U.S. resource plays ASSET PORTFOLIO High-quality in
Slide 12: Q4 2024 – Impressive Financial Performance
Q4 2024 – Impressive Financial Performance RETURNING VALUE TO SHAREHOLDERS Key financial metrics Q4 2024 ($ IN MILLIONS) Realized price, with hedges ($/BOE) $40.32 Share Buybacks Core earnings (per share) $1.16 $301 MM $444 MM EBITDAX ($MM) $2,131 Q4 2024 CASH RETURNS Operating cash flow ($MM) $1,66
Slide 13: 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 14: 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 | Q4 2024 Earnings Presentation 14
Slide 15: 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 $676 Cash Flow Changes in Capital Dividends
Slide 16: Our Investment-Grade Financial Strength
Our Investment-Grade Financial Strength Outstanding debt maturities ($ in millions) ~$3,800 Cash ~$800 $2.5B Retired $472 million of notes at maturity in 2024 Targeting <1.0x debt-to-EBITDAX ratio (1.0x as of 12/31/2024) DEBT REDUCTION PROGRAM UNDERWAY ~70% of outstanding debt obligations matu
Slide 17: Efficiently Adding Proved Reserves
Efficiently Adding Proved Reserves Strong proved reserve performance in 2024 Proved reserves (MMBOE) 247 (270) 75 (54) 340 2,155 1,817 2024 RESERVE HIGHLIGHTS (1) Reserve additions replace >150% of production in 2024 Total proved reserves expanded nearly 20% in 2024 (2) Proved reserves added a
Slide 18: 2025 – Detailed Activity by Asset
2025 – Detailed Activity by Asset Capital Investment Operated Rigs Wells Online ($ in Billions) (Average) (Gross Operated) DELAWARE BASIN $2.0 14 250-270 ROCKIES $1.0 4 80-90 EAGLE $0.5 75-85 (1) FORD 2 ANADARKO BASIN $0.15 2 25-35 (1) Includes Q1 wells prior to the Devon and BPX acreage split. | Q4
Slide 19: 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