Slide 1: Devon Energy to Acquire Grayson Mill
+ Devon Energy to Acquire Grayson Mill July 8, 2024 NYSE: DVN devonenergy.com
Slide 2: Transaction Advances Our Strategic Plan
Transaction Advances Our Strategic Plan IMMEDIATELY ACCRETIVE TO KEY FINANCIAL METRICS Drives improvement to key measures: EPS, CFPS, FCF per share & NAV WILLISTON BASIN ENHANCES SCALE & SCOPE OF OPERATIONS POWDER RIVER Positioned as a leading U.S. oil producer with ~375,000 barrels per day (1) WILL
Slide 3: Enhances Scale & Scope of Operations
Enhances Scale & Scope of Operations TOP U.S. ONSHORE PURE-PLAY PRODUCERS PRO FORMA TOTAL PRODUCTION (MBOED) (1) 1,000 Oil NGL 55% 25% 750 ~100 MBOED Gas 20% 500 Total Production (MBOED) Oil Production (MBOD) 250 0 TOP ONSHORE PRODUCERS (1) Sourced from FactSet & Devon. Pro forma production is a com
Slide 4: History of Growing Oil Production
History of Growing Oil Production TOTAL OIL PRODUCTION (MBOD) ~375 Legacy Devon Grayson Mill 155 ~ 2.5x OIL GROWTH SINCE 2020 ACCRETIVE ACQUISITION IN WILLISTON BASIN (1) 2020 2021 2022 2023 2024e Pro Forma (1) Pro forma production is a combination of Devon’s 2024 guidance and Grayson Mill’s 2025e v
Slide 5: Transforms Williston Basin Business
Transforms Williston Basin Business Devon Creates a leading 430,000 net acre position Williams in the Williston Basin Grayson Mill Triples Devon’s in-basin production to ~150,000 BOED Mountrail Project returns immediately compete for capital within Devon’s diversified portfolio McKenzie KEY AS
Slide 6: Expands Williston Basin Inventory Depth
Expands Williston Basin Inventory Depth COMBINED WILLISTON BASIN INVENTORY (ASSUMES $80 WTI) 125% 10 YEARS (1) UP NORTH TO 100% DAKOTA OF INVENTORY 75% IRR (%) Devon (2) 50% Grayson Mill 25% 0% 0 100 200 300 400 500 600 700 800 900 1,000 GROSS OPERATED LOCATIONS Note: Wells projected to exceed 125%
Slide 7: Best-In-Class Well Performance in Williston
Best-In-Class Well Performance in Williston TOP-TIER HISTORICAL WELL PERFORMANCE EXCELLENT RESULTS IN 2024 12-MONTH CUME. OIL PRODUCTIVITY (MBO PER 1,000’) % OF TOP 50 WILLISTON WELLS YTD (MBO PER 1,000’) 25 35% MORE PRODUCTIVE 4-YEAR PEER AVERAGE 20 28% 14 WELLS 15 PEER AVERAGE 20% 10 WELLS 10 5 De
Slide 8: Midstream Ownership Delivers Peer-Leading Margins
Midstream Ownership Delivers Peer-Leading Margins MIDSTREAM CREATES MARGIN UPLIFT North Dakota Montana 2023 WILLISTON PER UNIT FIELD-LEVEL MARGINS VS. BASIN PEERS Grayson Mill $40 Williams $35 Mountrail $30 $25 McKenzie Dunn $20 GME GME Total Upstream NORTH MARKETING OPTIONALITY DAKOTA ACCESS TO DAP
Slide 9: Immediately Accretive to Key Financial Metrics
Immediately Accretive to Key Financial Metrics Immediately accretive to our shareholders Transaction bolsters free cash flow capabilities Pro forma year-one benefits (Assumes $80 WTI) Pro forma free cash flow yield sensitivities $ ATTRACTIVE < 4.0X 14% Legacy Devon Grayson Accretion PURCHASE PRICE E
Slide 10: Transaction Increases Cash Returns to Shareholders
Transaction Increases Cash Returns to Shareholders DISCIPLINED SHARE REPURCHASES TARGET PAYOUT Increasing buyback authorization by 67% to $5 billion (% OF FREE CASH FLOW) Repurchased $2.5 billion of shares to date (as of 3/31/24) BALANCE ATTRACTIVE DIVIDEND YIELD SHEET Dividend designed to del
Slide 11: Why Own the Go-Forward Devon?
Why Own the Go-Forward Devon? 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 Possess an oil-weighted resource & production mix HIGH-Q
Slide 12: Investor Contacts & Notices
Investor Contacts & Notices Non-GAAP Information Investor Relations Contacts This presentation includes non-GAAP (generally accepted accounting principles) financial measures, including projections of the non-GAAP financial measures of EBITDAX and free cash flow on an as-combined basis. Due to the h