DEVON ENERGY CORPORATION Q2 2023 Earnings Presentation
August 1, 2023
NYSE: DVN
devonenergy.com
Key Takeaways From Our Presentation
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OIL PRODUCTION SETS NEW ALL-TIME HIGH
Q2 volumes exceeded guidance reaching 323,000 barrels per day
WOLFCAMP B SUCCESS IN DELAWARE BASIN
Appraisal success derisks ~100 locations in Cotton Draw area
CASH RETURNS REACHED $690 MILLION IN Q2
Balanced between dividends & stock repurchases
BUILDING MOMENTUM INTO THIRD QUARTER
Delaware completion activity to drive oil volume growth in Q3
DEBT REDUCTION STRENGTHENS BALANCE SHEET
Retired $242 million of debt in August ($1.5 billion retired since 2021)
LEADING THE INDUSTRY WITH
DISCIPLINE & CASH RETURNS
| Q2 2023 Earnings Presentation | 2 |
Our Disciplined Business Model
STRATEGY ANCHORED BY
HIGH-QUALITY
ASSET PORTFOLIO (PG. 5)
DISCIPLINED | MODERATED OIL GROWTH targets: up to 5% annually |
GROWTH STRATEGY | Focused on delivering per-share financial growth |
CONSISTENT | Returns-driven strategy prioritizes FREE CASH FLOW generation |
REINVESTMENT RATES | Optimizing results with steady activity levels through the cycle |
PRIORITIZE | FIXED-PLUS-VARIABLE dividend is top funding priority |
FREE CASH FLOW | Excess funds deployed to SHARE REPURCHASES & DEBT REDUCTION |
MAINTAIN | Net debt-to-EBITDAX: 0.7x (as of 6/30/2023) |
LOW LEVERAGE | Strong liquidity & low breakeven levels enhance FINANCIAL STRENGTH |
PURSUE | ESG initiatives incorporated into COMPENSATION structure |
ESG EXCELLENCE | Committed to aggressive emissions reduction targets |
| Q2 2023 Earnings Presentation | 3 |
Strategy Creating Significant Value for Shareholders
Delivering on our promise to shareholders | |||||||
Cumulative uses of cash since WPX merger ($ in billions) | |||||||
~$12BILLION | |||||||
SINCE LATE 2020 | |||||||
Industry-first cash-return framework unveiled in 2020 | (2-TIMES MERGER VALUATION) | ||||||
Provides the flexibility to create value through the cycle | $9.8 | ||||||
Top-ranked performance in S&P 500 index since merger | |||||||
$5.2 | Acquisitions | ||||
Debt Reduction | |||||
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Share Repurchases | |||||
$5.9 BILLION VALUATION(1) | $3.1 | ||||
Dividends | |||||
$1.2
2020 | 1H 2021 | 2H 2021 | 1H 2022 | 2H 2022 | 2023 YTD |
(1) Combined market capitalization for Devon and WPX on 9/28/2020.
| Q2 2023 Earnings Presentation | 4 |
Portfolio Built to Deliver Sustainable Performance
PREMIER MULTI-BASIN PORTFOLIO | |
Acreage resides in top U.S. resource plays | |
Underpinned by world-class Delaware Basin position | |
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DIVERSIFIED COMMODITY MIX | |
Balanced exposure to oil & natural gas production | |
Access to premium markets improves realized pricing |
OPERATING SCALE ENHANCES PROFITABILITY
Low-cost structure drives differentiated margins
- Track record of improving efficiencies & lowering cost of supply
DEEP INVENTORY OF REPEATABLE OPPORTUNITIES
- Possess ~12 years of low-risk development inventory
- Upside from ongoing appraisal (>1.2 million acres in U.S. resource plays)
WILLISTON BASIN
56 MBOED
POWDER RIVER BASIN
19 MBOED
OUR SUSTAINABLE PLATFORM
MULTI-DECADE | ||
RESOURCE OPPORTUNITY | ||
(SEE PAGE 17 FOR DETAILS) | ANADARKO BASIN | |
89 MBOED | ||
DELAWARE BASIN | ||
420 MBOED | ||
EAGLE FORD | ||
74 MBOED |
| Q2 2023 Earnings Presentation | 5 |
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Disclaimer
Devon Energy Corporation published this content on 01 August 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 01 August 2023 20:17:13 UTC.
