Devon Energy Corporation · NYSE:DVN
Devon Energy — Q3 2026 Earnings Presentation
28 slides from Devon Energy's earnings presentation, Nov 6, 2026
Slide 1: Q3 2026 Update
Q3 2026 UPDATE November 2026
Slide 2: Key Highlights Q3
KEY HIGHLIGHTS Q3 1. Delivered on Q3, first full quarter as a combined company ▪ Oil of 553,000 barrels per day and total production of 1,668,000 Boe per day, within guidance ▪ $2.0 billion of adjusted free cash flow at a 43% reinvestment rate; cash costs ~2% below guidance ▪ Returned 76% of adjuste
Slide 3: Devon Strategic Update
DEVON STRATEGIC UPDATE DEFINING PORTFOLIO REVIEW DISCIPLINED GROWTH, DEVON OUTCOME ACCELERATED RETURNS A premier unconventional energy Completed a rigorous post-merger More oil for less capital; buybacks to company review of all assets in our portfolio accelerate An efficient multi-basin, large-cap
Slide 4: Three Strategic Pillars Fuel Our Future
THREE STRATEGIC PILLARS FUEL OUR FUTURE 1 MAKE DEVON A 2 ORGANIC GROWTH 3 ACTIVE PORTFOLIO BETTER DEVON OPPORTUNITIES MANAGEMENT Improve the core business every Identify and advance organic Continuously high-grade our day through innovation and growth investments that create portfolio mix to improve
Slide 5: Post-Merger Execution: Creating Shareholder Value
POST-MERGER EXECUTION: CREATING SHAREHOLDER VALUE Post-Merger Portfolio Review One Team, One Devon Share Repurchases Solitude Gas Agreement ▪ Every asset reviewed through three lenses: value to ▪ Combined organization – designed and ▪ $617MM repurchased since close ▪ Permian gas from Waha to LNG- De
Slide 6: Portfolio Review
PORTFOLIO REVIEW Strategic Update 1 PORTFOLIO REVIEW 2 2027 & MULTI-YEAR OUTLOOK 3 OPERATIONAL EXCELLENCE 4 2026 UPDATE
Slide 7: Portfolio Review Summary
PORTFOLIO REVIEW SUMMARY Each asset reviewed through three lenses: 1) value to Devon, 2) strategic upside, and 3) the value to the market STRATEGIC ATTRIBUTES A OPERATING SCALE CORNERSTONE Permian ▪ Our foundation and growth engine B INVENTORY DEPTH AND UPSIDE ▪ Unmatched inventory depth and durabil
Slide 8: Permian Basin – Our Cornerstone
PERMIAN BASIN – OUR CORNERSTONE The most prolific basin in North America, where we doubled our footprint in 2026 WHY IT IS THE CORNERSTONE #1 gross operated producer in the Delaware. Doubled our SCALE footprint in 2026: Coterra, the federal lease sale and a focused ground game on a contiguous 750,00
Slide 9: Complementary Assets – Free Cash Flow and Optionality
COMPLEMENTARY ASSETS – FREE CASH FLOW AND OPTIONALITY Three regions that complement the Permian: strong returns at low reinvestment, durable free cash flow and the organic growth optionality ANADARKO ROCKIES MARCELLUS SCALE AND UPSIDE FREE CASH FLOW FREE CASH FLOW ROLE Scale, growth and upside value
Slide 10: Inventory Depth Supports More Than a Decade of Development
INVENTORY DEPTH SUPPORTS MORE THAN A DECADE OF DEVELOPMENT Deep, High-Quality Inventory Well returns ranked by PVI, colored by breakeven; >$60 billion of net capital (pro forma for the Eagle Ford divestiture) Cumulative breakeven (WTI) <$50 65% $50-$60 20% >$60 15% Durable Returns on Capital >85% >
Slide 11: Investing in Our Future – Actions Taken
Complete Underway INVESTING IN OUR FUTURE – ACTIONS TAKEN DELAWARE EXPANSION PORTFOLIO IMPROVEMENTS Top U.S. independent producer of oil and gas; ~345,000 Above our hold case; closing in early 2027; Coterra combination All stock Eagle Ford sale $4.2B Permian net acres added; $1.0B of annual synergie
Slide 12: 2027, Multi-Year Outlook
2027, MULTI-YEAR OUTLOOK Charting the Course 1 PORTFOLIO REVIEW 2 2027 & MULTI-YEAR OUTLOOK 3 OPERATIONAL EXCELLENCE 4 2026 UPDATE
Slide 13: 2027 Outlook – Conservative Reinvestment, Disciplined Growth
2027 OUTLOOK – CONSERVATIVE REINVESTMENT, DISCIPLINED GROWTH, SIGNIFICANT FREE CASH FLOW GROWTH 2027e 1-3% growth, increasing capital efficiency 1 OIL VOLUMES 2 TOTAL PRODUCTION 3 MULTI-YEAR OUTLOOK +1 to 3% GROWTH Y/Y +2 to 4% GROWTH Y/Y ILLUSTRATIVE AT $60–80 WTI ~525 MBOD ~1,600 MBOED 1 – 3% ANNU
Slide 14: Accelerating Capital Efficiency: 2027 Capital Walk
2027 CAPITAL WALK – FROM $5.9 BILLION TO ~$5.3 BILLION 2027e Capital Walk Permian Share of Capital $ billions Allocating more to the Permian $5.9 ($0.4) 63% ~75% ($0.3) 2026E 2027E +$0.1 ~$5.3 Permian Rest of portfolio What Moves the Mix ACCELERATING ▪ Permian takes the balance: more activity on the
Slide 15: 2027 Cash Flow Sources and Uses
2027 CASH FLOW SOURCES AND USES 2027e CASH FLOW SOURCES AND USES, $ BILLION Pro forma for the Eagle Ford sale. Internal forecast at 11/5 strip (~$80 WTI / ~$3.00 Henry Hub) ~$15.5B ~$15.5B Sources Eagle Ford net proceeds Operating cash flow $3.5B $6.3B Uses Excess free cash flow Solitude Pipeline an
Slide 16: Synergy Update – 2026 Exit Run-Rate Raised to ~$350 Million
SYNERGY UPDATE – 2026 ESTIMATED EXIT RUN-RATE RAISED TO ~$350 MILLION Timing to Deliver Run-Rate Pre-Tax Synergies Scorecard: $ millions ~$350 MM BY YE 2026 – 1.75X THE Q2 PLAN $1,000 Capital $150 Optimization 43% $350 million $750 MILLION UPLIFT Operating Margin 37% $350 million To YE 2026 exit $50
Slide 17: Operational Excellence
OPERATIONAL EXCELLENCE Creating Value Across the Portfolio 1 PORTFOLIO REVIEW 2 2027 & MULTI-YEAR OUTLOOK 3 OPERATIONAL EXCELLENCE 4 2026 UPDATE
Slide 18: Technology Driving Real-Time Performance Improvements
TECHNOLOGY DRIVING REAL-TIME PERFORMANCE IMPROVEMENTS AI IMPROVING DRILLING WELL GEOMETRY AI SUBSURFACE MODEL SURFACTANTS LIFTING SMART GAS LIFT AND COMPLETIONS ADDING VALUE MAXIMIZING VALUE RECOVERIES OPTIMIZING PRODUCTION ▪ Live D&C data optimized in ▪ Combined acreage enables ▪ Proprietary AI Sub
Slide 19: Creating Value With Longer Laterals
CREATING VALUE WITH LONGER LATERALS LOWERING COSTS: ALL-IN D&C COST PER LATERAL FOOT BY DESIGN PUSHING THE BOUNDARIES: WHAT WE ARE DRILLING NOW Permian 2027 program, gross $/ft Four-mile straight laterals $1,090 First wells online in the Williston and the Delaware; ~$3.3MM less per well than two-mil
Slide 20: Sustained Improvement in Fully Burdened Well Costs
SUSTAINED IMPROVEMENT IN FULLY BURDENED WELL COSTS Longer laterals and operational excellence drive down well costs; fully-burdened well costs include: drilling, completion, facilities and flowback DEVON DELAWARE ANADARKO WILLISTON MARCELLUS POWDER RIVER –29% $/FT 2023–2027e –28% $/FT 2023–2027e –19
Slide 21: AI Subsurface Model: Better Well Insights
AI SUBSURFACE MODEL: BETTER WELL INSIGHTS, OPTIMIZING INVESTMENT DECISIONS Our proprietary AI subsurface model shows what drives well results, so we can optimize our returns 1 UNDERSTAND 2 EVALUATE 3 DECIDE KNOW WHAT DRIVES RESULTS TEST THOUSANDS OF OPTIONS INVEST AT THE HIGHEST RETURN What explains
Slide 22: Surfactants – A Low-Cost Productivity Uplift
SURFACTANTS – A LOW-COST PRODUCTIVITY UPLIFT MOVING TO FULL-FIELD SCALE Scaling activity after successful early tests Engineered chemistry, applied at the frac 180-Day Cumulative Oil Per Foot, Bbl/Ft Phase 1 test wells vs. paired controls, Delaware Basin (1) ▪ Formulated to each reservoir's rock and
Slide 23: 2026 Update
2026 UPDATE 3Q Results, 4Q Guidance, FY Update 1 PORTFOLIO REVIEW 2 2027 & MULTI-YEAR OUTLOOK 3 OPERATIONAL EXCELLENCE 4 2026 UPDATE
Slide 24: Q3 2026 – Hitting Our Plan, Growing Free Cash Flow
Q3 2026 – HITTING OUR PLAN, GROWING FREE CASH FLOW Oil Volumes Controlling Costs Q3 vs. Q2 oil volumes by basin (MBOD) Q3 cash costs per BOE vs. guidance DELIVERING ON +60 –4 +5 –11 ~2% BELOW GUIDANCE $13.19 $12.89 OUR 2026 553 COMMITMENTS 503 Q2 2026 Permian Rockies Anadarko Eagle Q3 2026 Guidance
Slide 25: Q4 and Full-Year 2026 Outlook
Q4 AND FULL-YEAR 2026 OUTLOOK Full Year Full Year PRODUCTION2 Q4 2026 PRICE REALIZATIONS Q4 2026 2026 2026 Oil (MBbls/d) 550–560 495–505 Oil – % of WTI 97%–100% 98%–100% Natural gas liquids (MBbls/d) 377–387 319–326 NGL – % of WTI 23%–26% 24%–26% Gas (MMcf/d) 4,400–4,500 3,300–3,400 Natural gas – %
Slide 26: Fortress Balance Sheet – Strength Through the Cycle
FORTRESS BALANCE SHEET – STRENGTH THROUGH THE CYCLE Leverage Below 1.0x Through the Cycle CREDIT RATINGS LOW LEVERAGE ▪ Net debt-to-EBITDAX of ~0.6x at year-end 2026e on combined pro BBB+/Baa2 ~0.6X forma EBITDAX (1) ▪ Investment-grade ratings at S&P and Moody's are a strategic priority Gross Debt T
Slide 27: Estimated Sales Markets – 2027E
ESTIMATED SALES MARKETS – 2027E Share of 2027e net oil, natural gas and NGL sales by pricing point, pro forma for the Eagle Ford sale OIL NATURAL GAS NGLs 7% Cushing – WTI 6% Power sales – Permian and Marcellus 5% LPG export – FOB Gulf Coast 4% Southeast – Midship, Gulf South 7% Conway 15% Rockies a
Slide 28: Investor Contacts & Notices
INVESTOR CONTACTS & NOTICES the extent to which we are successful in acquiring and discovering additional reserves; the uncertainties, costs and risks involved in our operations; risks related to our hedging activities; our limited control over third parties who operate some of our oil and gas prope