Slide 1: Q1 2025 Earnings Presentation
Q1 2025 EARNINGS PRESENTATION NYSE: DVN May 6, 2025 DEVONENERGY.COM
Slide 2: Q1 2025 – Key Highlights
Q1 2025 – KEY HIGHLIGHTS Delivered strong operating performance Oil production averaged 388,000 barrels/day, exceeding guidance and supported by outstanding well performance across all basins Disciplined capital spending below plan Invested $964 million, coming in 5% under midpoint guidance, with re
Slide 3: Our Strategic Priorities
OUR STRATEGIC PRIORITIES STRATEGIC OPERATING EXCELLENCE ▪ Operating safely, reliably, and in an environmentally responsible manner ▪ Embrace innovative thinking and technology to improve business performance PRIORITIES ADVANTAGED ASSET PORTFOLIO ▪ Diversified multi-basin portfolio in top U.S. resour
Slide 4: Q1 2025 – Continuing to Deliver Value
Q1 2025 – CONTINUING TO DELIVER VALUE OIL VOLUMES EXCEED GUIDANCE EFFICIENT CAPITAL SPENDING (MBOD) ($MM) + 5 MBOD ~ 5% $1.0 388 $1,013 400 PRODUCTION BEAT (VS. Q1 MIDPOINT GUIDE) UNDER GUIDANCE 300 ANADARKO $964 200 EAGLE FORD ROCKIES 100 DELAWARE BILLION OF FREE CASH 0 Q1 2025 Oil Production Q1 20
Slide 5: Delaware Basin: Operating Efficiencies Continue Momentum
DELAWARE BASIN: OPERATING EFFICIENCIES CONTINUE MOMENTUM COMPLETION EFFICIENCIES DELIVERING FULL PRODUCTIVE CAPACITY WITH LESS 2,753 2,466 2,152 1,713 1,911 1,955 12% 16 5 RIGS While Maintaining IMPROVEMENT FROM 1H 2024 Productive Capacity (2025 YTD vs. 2024) 15 2020 2021 2022 2023 2024 2025 YTD 14
Slide 6: Eagle Ford: Driving Cost Reductions
EAGLE FORD: DRIVING COST REDUCTIONS BLACKHAWK WELL COST SUPERIOR DRILLING EFFICIENCY DRILLING & COMPLETION COST ($ IN MILLIONS) 500 $8.8 ($2.0) +46% COST IMPROVEMENT (vs. Legacy Drilling Performance) 400 ($0.7) (1) 300 $6.1 LEGACY AVG.: $247/FT 200 ▪ Design Enhancements $2.7 MM PER-WELL SAVINGS ▪ D&
Slide 7: Returning Value to Shareholders
IMPRESSIVE FINANCIAL PERFORMANCE Q1 2025 KEY FINANCIAL METRICS RETURNING VALUE TO SHAREHOLDERS + $1.21 (per share) Core Earnings $ IN MILLIONS DIVIDENDS PAID $163 + $2,086 ($MM) EBITDAX MILLION Q1 2025 + $1,942 ($MM) Operating Cash Flow CASH RETURNS + $1,008 ($MM) Free Cash Flow SHARE BUYBACKS $301
Slide 8: 2025 Outlook: Increasing Oil Production with Lower Capital
2025 OUTLOOK: INCREASING OIL PRODUCTION WITH LOWER CAPITAL UPDATED 2025e OUTLOOK ATTRACTIVE FREE CASH FLOW $4.0 OIL – 388 382MBOD $3.3 FREE CASH FLOW VOLUMES 1% IMPROVEMENT $3.0 $2.6 2025e Free Cash Flow ($B) FREE CASH FLOW $ TOTAL CAPITAL $3.7 – $3.9 BILLION $100 MM DECLINE $2.0 $1.9 FREE CASH FLOW
Slide 9: Significant Financial Strength and Liquidity
SIGNIFICANT FINANCIAL STRENGTH AND LIQUIDITY TOTAL LIQUIDITY CASH BALANCE LOW LEVERAGE $4.2 B $1.2 B 1.0x CASH & UNDRAWN CASH POSITION NET DEBT-TO-EBITDAX CREDIT FACILITY AS OF 3/31/2025 AS OF 3/31/2025 CREDIT RATINGS DEBT REDUCTION PLAN ATTRACTIVE HEDGE POSTION BBB/Baa2 $2.5 B > 25% (1) INVESTMENT-
Slide 10: Targeting Opportunities to Improve
BUSINESS OPTIMIZATION PLAN Capture efficiencies through design CAPITAL optimization, cycle time reductions, TARGETING EFFICIENCY facility standardization, and vendor management OPPORTUNITIES TO IMPROVE Use advanced analytics to minimize PRODUCTION maintenance events, reduce OPTIMIZATION downtime, fl
Slide 11: Pathway and Timing to Deliver
PATHWAY AND TIMING TO DELIVER IMPROVEMENTS BY CATEGORY TIMING TO DELIVER RUN-RATE IMPROVEMENTS ($MM) ($MM) Capital Efficiency $300 MM $1,000 $1.0 $750 BILLION Corporate Cost Reductions Production $500 $150 MM Optimization ANNUAL PRE-TAX $250 MM FREE CASH FLOW IMPROVEMENTS $250 Commercial Opportuniti
Slide 12: Business Optimization Initiatives Underway
BUSINESS OPTIMIZATION INITIATIVES UNDERWAY ▪ Dynamic capital planning ▪ Improved contracts driving greater CAPITAL PRODUCTION COMMERCIAL realizations CORPORATE COST EFFICIENCY ▪ Standardization of wellsite facilities OPTIMIZATION OPPORTUNITIES REDUCTIONS ▪ Augment key infrastructure ▪ Drilling and c
Slide 13: Appendix
APPENDIX NYSE: DVN DEVONENERGY.COM
Slide 14: Our Investment-Grade Financial Strength
OUR INVESTMENT-GRADE FINANCIAL STRENGTH Outstanding debt maturities ($ in millions) ~$4,200 ✓ Retired $472 million of notes at maturity in 2024 Cash ~$1,200 $2.5B ✓ Targeting <1.0x debt-to-EBITDAX ratio (1.0x as of 3/31/2025) DEBT REDUCTION PROGRAM UNDERWAY ✓ ~70% of outstanding debt obligations mat
Slide 15: Q1 2025 – Earnings Summary
Q1 2025 – EARNINGS SUMMARY Net core earnings change quarter over quarter $ in millions $23 $779 $756 ($165) $59 $137 ($31) Q4 2024 Production Realized Prices & Production DD&A G&A & Other Q1 2025 Volumes Hedge Settlements Expenses Q1 2025 EARNINGS PRESENTATION • 15
Slide 16: Q1 2025 – Cash Flow Summary
Q1 2025 – CASH FLOW SUMMARY Exiting the quarter with strong liquidity $ in millions Q1 2025 Benchmark Prices $117 ($942) ▪ Oil ($/Bbl) – WTI : $71.50 $1,825 ▪ Natural Gas ($/Mcf) – Henry Hub: $3.65 ▪ NGLs ($/Bbl) – Mont Belvieu: $29.65 ($464) ($148) $1,234 $846 Changes in Capital Dividends & Beginni
Slide 17: Investor Contacts & Notices
INVESTOR CONTACTS & NOTICES over third parties who operate some of our oil and gas properties; midstream capacity constraints and potential interruptions in production, including from limits to the build out of midstream infrastructure; competition for assets, materials, people and capital, which ca