Devon Energy Corporation · NYSE:DVN

Devon Energy — UBS Global Oil and Gas Conference 2015

31 slides from Devon Energy's conference presentation, May 19, 2015

  1. Slide 1: UBS Global Oil and Gas Conference

    UBS Global Oil and Gas Conference May 19, 2015 NYSE: DVN devonenergy.com

  2. Slide 2: Investor Contacts & Notices

    Investor Contacts & Notices Investor Relations Contacts Howard J. Thill, Senior Vice President, Communications & Investor Relations (405) 552‐3693 / howard.thill@dvn.com Scott Coody, Director, Investor Relations (405) 552‐4735 / scott.coody@dvn.com Shea Snyder, Director, Investor Communications (405

  3. Slide 3: Devon Today

    Devon Today Superior Execution Delivering Shareholder Value  A leading North American E&P  Building operational momentum  Oil driving production growth  Disciplined capital allocation  Financial strength and flexibility  Advantaged midstream business 3

  4. Slide 4: A Leading North American E&P

    A Leading North American E&P Heavy Oil  Focused and balanced asset portfolio — Proved reserves: 2.8 billion BOE — Net production: 685 MBOED — Upstream revenue: 64% oil  Deep inventory of opportunities Rockies Oil — High‐quality Permian Basin position — Prolific Eagle Ford assets — World‐class heav

  5. Slide 5: Strategy For Long-Term Success

    A Leading North American E&P Strategy For Long‐Term Success  Premier and sustainable asset portfolio — High‐returning projects — Positioned in top‐tier basins — Balanced between oil and gas — Deep inventory of opportunities  Focused on superior execution — Technical and operational excellence — Pr

  6. Slide 6: Oil Driving Production Growth

    Oil Driving Production Growth Revised 2015 Oil Production Guidance  Q1 production exceeded guidance (3rd qtr in a row) U.S. Oil Production Growth MBOD 168  Delivered Q1 U.S. oil production growth of 72% 98 — Prolific Eagle Ford development results ― Excellent results in Delaware Basin 72% Growth 

  7. Slide 7: Disciplined Capital Allocation

    Disciplined Capital Allocation Revised 2015 Capital & Operating Cost Outlook 2015 E&P Capital Guidance  E&P capital reduced by ≈6% $3.9 ‐ $4.1 Billion Land/Tech. Barnett — $250 million decline vs. previous guidance Rockies — Acceleration of service cost savings and capital efficiencies achieved acr

  8. Slide 8: Financial Strength & Flexibility

    Financial Strength & Flexibility  Strong investment‐grade ratings Accretive EnLink Transactions ≈$870 Million of Value — Cash balances: $1.9 billion $215 $215MM MM (1) VEX Dropdown Oil — Net debt(1): $7.5 billion (excluding EnLink) Gas Secondary $655 $57 MM MM Offering  Production protected by hed

  9. Slide 9: Advantaged Midstream Business

    Advantaged Midstream Business EnLink Overview  Devon’s equity ownership interest Market Value of EnLink Ownership — 32% of MLP (ENLK: 95 MM units) May 2015 — 70% of GP (ENLC: 115 MM units)  Distributions to reach ≈$270 MM in 2015  Improves capital efficiency and growth trajectory of midstream bus

  10. Slide 10: Asset Overview

    HEAVY OIL ROCKIES OIL Oil Assets Liquids‐Rich Gas Assets ANADARKO BASIN Asset Overview PERMIAN BASIN BARNETT SHALE Premier North American Portfolio EAGLE FORD 10

  11. Slide 11: E&P Operations

    E&P Operations Delivering Superior Execution  Maximize base production — Minimize controllable downtime — Enhance well productivity Capture Full — Leverage midstream operations Value — Reduce operating costs  Optimize capital program — Disciplined project execution — Perform premier technical work

  12. Slide 12: Permian Basin

    Permian Basin Overview  Industry leader in basin Permian Oil Production Growth 5‐Year CAGR (As of Q1 2015) — 1.2 million net surface acres with stacked pay — Q1 net production: 102 MBOED — Liquids 78% of production mix  Deep inventory of low‐risk projects — >5,000 locations in Delaware Basin — Sig

  13. Slide 13: Delaware Basin

    Delaware Basin Driving Results in Permian Basin  Delaware Basin delivering prolific growth — Q1 net production: 53 MBOED — ≈250% growth since 2010 BONE SPRING SLOPE  Activity focused on Bone Spring play Lea Eddy — Basin: high‐pressured reservoir with contiguous sands BONE SPRING — Slope: shallower

  14. Slide 14: Delaware Basin

    Delaware Basin Bone Spring Results Continue to Improve Cumulative Production – Bone Spring Basin  New completion design enhances results MBOE 160 New Designs — Tested on >60 wells since mid‐2014 Old Design 120 60% — Activity focused in basin of SE NM Increase 80 — Per well productivity enhanced 60%

  15. Slide 15: Delaware Basin

    Delaware Basin Significant & Growing Resource Opportunity  Net risked acres: >500,000  Identified >5,000 risked locations Eddy Lea — Assumes 4 ‐ 5 wells per risked section — Bone Spring ≈70% of inventory  Significant upside potential in Bone Spring — Downspacing pilots underway Formation Net Risk

  16. Slide 16: Eagle Ford

    Eagle Ford Overview  Top‐tier acreage position — 78,000 net acres focused in DeWitt Co. — Q1 net production: 122 MBOED — Oil 62% of production mix Gonzales Lavaca  Highest returning asset in portfolio — Delivering industry‐leading well results Karnes — Low cost asset: LOE <$5 per BOE Dewitt — ≈1,0

  17. Slide 17: Eagle Ford

    Eagle Ford World‐Class Development Results in DeWitt County  Production up 140% over past year Eagle Ford Production Growth MBOED 122  Driven by world‐class results in DeWitt Co. 51 — Q1 wells: 30‐day IP avg. ≈2,100 BOED (79 wells) ≈140% Growth — IP’s for top 5 wells exceeded 3,200 BOED March Q2 Q

  18. Slide 18: Heavy Oil

    Heavy Oil Overview  Located in best part of oil sands 6 Miles — Low geologic risk Jackfish 1 T76 Jackfish 2 — Thick and continuous reservoir — Industry leading operating results Jackfish 3 T75 — Massive risked resource: 1.4 BBO Pike Project Area T74  Features of each Jackfish project: Access Pipel

  19. Slide 19: Heavy Oil Developments

    Heavy Oil Developments Delivering Visible Oil Growth Heavy Oil Production  Jackfish 1 delivering top‐tier results MBOD 104 — Q1 gross production: 35.2 MBOD 78 Jackfish 3 — Capacity utilization >100% for 5th Jackfish 2 straight quarter 33% Jackfish 1 Growth Lloydminster  Jackfish 2 production incre

  20. Slide 20: Anadarko Basin

    Anadarko Basin Stacked Pay Potential – Woodford & Meramec  Best position in Cana‐Woodford play — 280,000 net risked acres Meramec Oil & Liquids Window — Q1 net production: 66 MBOED 60,000 Net Risked Acres — 2015 plans: 75 development wells — Completion activity to begin mid‐year  Emerging Meramec

  21. Slide 21: Rockies Oil

    Rockies Oil Powder River Basin Devon Acreage  Strong Q1 development results Recently Acquired 42,000 net acres — 11 wells: 30‐day IP ≈1,400 BOED — Driven by 9,600’ extended reach laterals Campbell — 2x length of previous design  Opportunistic acreage capture Parkman — Added 42,000 acres in oil fai

  22. Slide 22: Why Own Devon?

    Why Own Devon?  A leading North American E&P  Building operational momentum  Oil driving production growth  Disciplined capital allocation  Financial strength and flexibility  Advantaged midstream business 22

  23. Slide 23: Thank you.

    Thank you.

  24. Slide 24: Appendix

    Appendix

  25. Slide 25: Permian Basin

    Permian Basin Overview  Industry leader in basin Bone Spring, Delaware, Leonard & Wolfcamp — 1.2 million net surface acres with stacked pay Gaines Dawson Borden Wolfcamp — Q1 net production: 102 MBOED Eddy Lea Andrews Martin Howard Mitchell — Light oil nearly 60% of production mix Midland Glasscock

  26. Slide 26: Barnett Shale

    Barnett Shale Liquids‐Rich Gas Development  Significant gas optionality — Net acres: 620,000 Wise Denton — Best position in play — Q1 net production: 191 MBOED — Liquids 28% of production mix Dry Gas Liquids‐Rich  Capital efficient vertical refrac program Parker Tarrant underway Ft. Worth  2015 O

  27. Slide 27: Potential Drop Down Asset

    Potential Drop Down Asset Access Pipeline  Three ≈180 mile pipelines from JACKFISH & PIKE Sturgeon Terminal to Devon’s thermal acreage 16” Diluent Line (Edmonton to Jackfish) 24” Diluent Line  ≈30 miles of dual pipeline from (Sturgeon to Jackfish) 42” Blend Line Sturgeon Terminal to Edmonton Sturg

  28. Slide 28: Key Modeling Statistics

    Key Modeling Statistics Bone Spring Basin (Delaware Basin) Bone Spring Slope (Delaware Basin) Working interest / royalty: 71% / 21% Working interest / royalty: 71% / 21% 30‐day IP rate: 900 BOED 30‐day IP rate: 500 BOED EUR: 600 MBOE EUR: 450 MBOE Oil / NGLs as % of production: 65% / 20% Oil / NGLs

  29. Slide 29: Key Modeling Statistics

    Key Modeling Statistics Eagle Ford (DeWitt County) Rockies: Powder River Basin (Parkman) Working interest / royalty: 48% / 22% Working interest / royalty: 58% / 18% 30‐day IP rate: 1,650 BOED 30‐day IP rate: 1,300 BOED EUR: 900 MBOE EUR: 425 MBOE Oil / NGLs as % of production: 60% / 20% Oil / Gas as

  30. Slide 30: Key Modeling Statistics

    Key Modeling Statistics Cana‐Woodford Shale Meramec Working interest / royalty: 51% / 21% Working interest / royalty: 34% / 18% 30‐day IP rate: 1,200 BOED 30‐day IP rate: 1,500 BOED EUR: 1.7 MMBOE EUR: 1.4 MMBOE Oil / NGLs as % of production: 5% / 40% Oil / NGLs as % of production: 9% / 42% Decline

  31. Slide 31: Discussion of Risk Factors

    Discussion of Risk Factors Forward‐Looking Statements: Information provided in this presentation 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”, “p

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