Devon Energy Corporation · NYSE:DVN
Devon Energy — JP Morgan Energy Conference 2020
12 slides from Devon Energy's conference presentation, Jun 16, 2020
Slide 1: JP Morgan Energy Conference
JP Morgan Energy Conference June 16, 2020 NYSE: DVN devonenergy.com
Slide 2: Investor Contacts & Notices
Investor Contacts & Notices differ materially from the forward-looking statements in this presentation due to the COVID-19 pandemic and related impacts, including, by, among other Investor Relations Contacts things: contributing to a sustained or further deterioration in commodity prices; causing ta
Slide 3: Defining Devon
Defining Devon KEY DEVON ATTRIBUTES OIL WEIGHTED: 82% of revenue (Q1 2020) Premier multi-basin portfolio LOW LEVERAGE: 1.1x net debt-to-EBITDAX POWDER RIVER TOP-TIER ESG PERFORMANCE Significant financial strength & liquidity BASIN Disciplined returns-driven strategy ANADARKO BASIN DELAWARE F
Slide 4: Significant Financial Strength & Liquidity
Significant Financial Strength & Liquidity Significant liquidity with no near-term debt maturities Balance sheet strength provides competitive advantage Outstanding debt maturities ($MM) Cumulative % of debt maturing as a % of total debt (2020-2023) $4,700 70% SIGNIFICANT ADVANTAGED FINANCIAL NO DEB
Slide 5: Our Approach to the Current Environment
Our Approach to the Current Environment Protect financial strength DYNAMICALLY ADAPTING TO MARKET CONDITIONS Reduce capital & operating costs Drive efficiencies across the portfolio Preserve operational continuity Position for the recovery Investor Presentation 5
Slide 6: Investment Concentrated in the Delaware Basin
Investment Concentrated in the Delaware Basin WOLFCAMP PROGRAM HEADLINES RECENT DELAWARE RESULTS $1.0 Billion THISTLE/GAUCHO SUCCESSFUL INFILL WOLFCAMP DEVELOPMENT ~75% CONFIRMS WOLFCAMP Tomb Raider 2.0 (9,400’ laterals) COMMERCIALITY 5 Wolfcamp wells Avg. IP30: 4,900 BOED/well Thistle Cobra (10,900
Slide 7: Delaware Delivering Best-In-Class Operating Results
Delaware Delivering Best-In-Class Operating Results Wolfcamp driving industry-leading well productivity Delaware Basin capital efficiencies accelerate Average cumulative 6-month oil production per foot, MBO (2019) Drilled and completed feet per day (Wolfcamp formation) >50% 42% 20 SUPERIOR D&C 1,500
Slide 8: Efficiencies Drive Maintenance Capital Improvements
Efficiencies Drive Maintenance Capital Improvements POSITIONED FOR RESILIENT PRODUCTION PROFILE IN 2021 Reducing maintenance capital requirements Maintaining strong oil production outlook Maintenance capital ($ billions) Oil production (MBOD) DECLINE DRIVEN ASSUMES 10 MBOD BY EFFICIENCIES ~100 DUCs
Slide 9: Cost Structure Continues to Improve
Cost Structure Continues to Improve Track record of driving cost structure lower Reducing 2020 cash cost expectations Cash cost reductions (2020e vs. 2018) Cash costs ($ in billions) $1.90 2020 SAVINGS $250 PRODUCTION 18% TARGET MILLION EXPENSES (2020e vs 2018) $1.65 GENERAL & 45% ADMINSTRATIVE
Slide 10: Positioned for Excess Cash Flow in 2020
Positioned for Excess Cash Flow in 2020 2020 operating plan generating excess cash flow at ultra-low pricing ($ in billions) $3.2 B $1.0 B ULTRA-LOW Cash flow enhanced by Barnett divestiture DIVEST (2) PROCEEDS BREAKEVEN Efficiencies driving breakeven funding levels lower PRICING Plan to achie
Slide 11: ESG Performance Remains a Top Priority
ESG Performance Remains a Top Priority ENVIRONMENT SOCIAL & SAFETY GOVERNANCE On track to meet our methane intensity Provided STEM resources across our ESG metrics incorporated in target of 0.28% or lower by 2025 communities, impacting 17,000 students COMPENSATION STRUCTURE U.S. recycled wat
Slide 12: Our Framework for Long-Term Success
Our Framework for Long-Term Success KEY DEVON ATTRIBUTES OIL WEIGHTED: 82% of revenue (Q1 2020) Premier multi-basin portfolio LOW LEVERAGE: 1.1x net debt-to-EBITDAX POWDER RIVER TOP-TIER ESG PERFORMANCE Significant financial strength & liquidity BASIN Disciplined returns-driven strategy ANADAR