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  • 8/22/2019 DVN June Pres

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    Investor Meeting

    June 2013

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    NYSE: DVN www.devonenergy.com Slide 2

    Investor Notices

    Safe HarborSome of the information provided in this presentation includes forward-looking statements asdefined by the Securities and Exchange Commission. Words such as forecasts," "projections,""estimates," "plans," "expectations," "targets," and other comparable terminology often identifyforward-looking statements. Such statements concerning future performance are subject to avariety of risks and uncertainties that could cause Devons actual results to differ materiallyfrom the forward-looking statements contained herein, including as a result of the itemsdescribed under "Risk Factors" in our most recent Form 10-K and the items described under

    "Information Regarding Forward-Looking Estimates" in our Form 8-K filed February 20, 2013.

    Cautionary Note to Investors

    The United States Securities and Exchange Commission permits oil and gas companies, in theirfilings with the SEC, to disclose only proved, probable and possible reserves that meet the SEC'sdefinitions for such terms, and price and cost sensitivities for such reserves, and prohibitsdisclosure of resources that do not constitute such reserves. This presentation may contain

    certain terms, such as resource potential and exploration target size. These estimates are bytheir nature more speculative than estimates of proved, probable and possible reserves andaccordingly are subject to substantially greater risk of being actually realized. The SECguidelines strictly prohibit us from including these estimates in filings with the SEC. Investorsare urged to consider closely the disclosure in our Form 10-K, available from us at Devon EnergyCorporation, Attn. Investor Relations, 333 West Sheridan, Oklahoma City, OK 73102-5015. Youcan also obtain this form from the SEC by calling 1-800-SEC-0330 or from the SECs website atwww.sec.gov.

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    NYSE: DVN www.devonenergy.com Slide 3

    Devon Today

    Proved reserves: 3.0 billion BOE

    (47% liquids)

    Q1 2013 production: 687 MBOED

    Production mix: 24% oil

    17% NGLs

    59% natural gas

    Significant midstream business

    2013e operating profit: $450 million

    Enterprise value: $30 billion

    JackfishPike

    Granite WashBarnett Shale

    Permian Basin

    Ferrier Corridor

    Cana WoodfordMississippian

    RockiesOil

    Horn River

    Deep Basin

    Powder River

    Washakie

    Haynesville/Bossier

    CarthageGroesbeck

    Oil

    Liquids-Rich

    Dry Gas

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    Progress Report

    First-Quarter Highlights

    Total oil production increased 14%

    Permian Basin oil production up 24%

    Jackfish oil production up 18%

    Positive results in emerging oil plays

    Recent wells in Mississippian play >1,000 BOPD

    Promising high rate wells in the Rockies

    Added attractive oil and gas hedges for 2013 and 2014

    Announced $2 billion repatriation of foreign cash to U.S.

    Challenges

    Transition to a higher oil-weighted production profile

    Near-term price realizations in North AmericaSlide 4

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    NYSE: DVN www.devonenergy.com Slide 5

    Devons Strengths

    Disciplined focus on per share results

    Deep inventory of development opportunities

    Strong, highly-visible oil growth

    Significant positions in emerging oil plays

    Strong balance sheet

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    NYSE: DVN www.devonenergy.com Slide 6

    Financial Strength & Flexibility

    Cash and short-term investments: $6.5 billion(As of 3/31/13)

    Net debt-to-cap ratio: 22%

    Strong investment grade ratings

    Fitch: BBB+

    Moodys: Baa1

    S&P: BBB+

    Provides flexibility to invest in high-return

    projects in all market cycles

    Note: Includes a non-GAAP measure, see appendix for required disclosures.

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    Attractively Hedged

    Oil Hedges

    Q2-Q4 2013: 135 MBOPD at a protected price of $95 per BBL(80% of forecasted oil production)

    2014: 31 MBOPD at a protected price of $92 per BBL

    WCS Regional Oil Basis Swaps

    Q2-Q4 2013: 35 MBOPD at a differential to WTI of $22 per BBL

    Natural Gas Hedges

    Q2-Q4 2013: 1.0 BCFD swapped at $4.18 per MCF

    Q2-Q4 2013: 0.7 BCFD collared at $4.19 ceiling and $3.55 floor

    (2013 swaps and collars cover 75% of forecasted gas production)

    2014: 0.9 BCFD at a protected price of $4.34 per MCF

    Note: The pricing points referenced above are weighted average prices.

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    Capital Allocation Criteria

    E&P capital projects

    Balancing resource capture and development

    Debt reduction

    Reduced net debt by 20% since 2003

    Share repurchases

    Reduced net share count by 20% since 2004

    Dividends Average annual increase of 24% since 2004

    Note: Includes a non-GAAP measure, see appendix for required disclosures.

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    Developing the Resource BaseE&P Game Plan

    Goal: Maximize return on investment

    Balance resource capture and resource development

    Current focus on high-margin oil opportunities

    Utilize joint ventures to recover exploration costs

    Maintain gas optionality

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    NYSE: DVN www.devonenergy.com Slide 10

    E&P Capital Allocation

    Explorationactivity

    Developmentactivity

    Leasehold

    capture

    2013 Capital Budget

    $4.9 - $5.3 Billion

    100% of capital allocated towards oil and liquids-rich projects

    90%

    3%7%

    Note: Capital figures exclude capitalized G&A and interest, midstream and other corporate capital. For 2013, thisrepresents approximately $1.5 billion.

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    NYSE: DVN www.devonenergy.com Slide 11

    2013 Capital ProgramDelivering Strong Oil Growth

    Total oil production growth rate: mid-teens

    U.S. growth rate: 40%

    Concentrate capital in oil-driven development projects

    Accelerate drilling in Permian Basin

    Reduce activity in liquids-rich gas regions

    No dry gas drilling

    Utilize joint venture carries to minimize exploration costs Accelerates de-risking of Mississippian trend acreage

    Continue appraisal drilling in Rockies

    Increase Permian exploration activity

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    NYSE: DVN www.devonenergy.com Slide 12

    146

    123

    106101

    90

    75

    66

    164-174

    2006 2007 2008 2009 2010 2011 2012 2013e

    Significant Oil Production GrowthNorth American Onshore

    Production Data in MBOPD

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    NYSE: DVN www.devonenergy.com Slide 13

    Permian Basin OverviewOil Opportunities

    Net risked resource: 2.8 BBOE

    Risked locations: >8,000

    Net acreage: 1.3 million basin-wide

    Q1 2013 net production: 68 MBOED(60% oil)

    Activity targeting several play types

    Expect 40% oil growth in 2013

    29 operated rigs

    2013 capital: $1.5 billion

    2013 plans: Drill >300 wells

    TEXAS

    NEW MEXICO OKLAHOMA

    NYSE: DVN

    MidlandBasin

    Northwestern

    Shelf

    CentralBasinPlatform

    Ozona ArchDiabloPlatform

    New

    Mexico

    Texas

    Midland

    WolfberryBone Spring& Delaware

    Conventional WolfcampShale

    Eastern

    Shelf

    Cline Shale

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    Permian BasinBone Spring & Delaware

    Overview

    Net acreage: 210,000

    Q1 2013 net production: 21 MBOED (65% oil)

    Low-risk, high-margin oil plays

    12 operated rigs

    Doubled inventory over past year (1,300 locations)

    Bone Spring

    High impact wells (Best wells: IPs >1,000 BOED)

    Drilling depth: 8,000 10,500

    Multi-year drilling inventory (700 locations)

    2013 plans: Drill 100 wells

    Delaware

    Revitalized by horizontal drilling

    Repeatable results (600 undrilled locations)

    Drilling depth: 7,000 8,000

    2013 plans: Drill 20 wells

    www.devonenergy.com Slide 14

    Midland

    MidlandEctor

    Andrews

    Gaines Dawson

    Martin

    UptonCrane

    Winkler

    Ward

    Loving

    Reeves

    Pecos

    Lea

    Eddy

    Bone Spring

    & Delaware

    NewM

    exico

    Texas

    NW Shelf

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    Permian BasinCentral and Midland Basin Oil Opportunities

    Midland-Wolfcamp Shale

    Net acreage: 67,000

    Delivering consistent economic results

    Multi-year drilling inventory (800 locations)

    2013 plans: Drill >100 wells (7 operated rigs)

    Wolfberry Net acreage: 160,000 (2013 plans: Drill 80 wells)

    Predominantly vertical development program

    Upside: Downspacing and Wolfcamp exploitation

    Other Conventional Activity

    Legacy position enhances full-cycle returns

    Exploiting Central Basin Platform oil targets(Tubb, Wichita-Albany, Strawn, Clear Fork & others)

    Cline Shale

    Net acreage: 389,000 (2013 plans: Drill 30 wells)

    High-impact exploration opportunity

    Joint venture minimizes capital commitment

    MidlandBasin

    Northwestern

    Shelf

    CentralBasinPlatform

    Ozona Arch

    New

    Mexico

    Texas

    Midland

    Wolfberry

    Conventional WolfcampShale

    Eastern

    Shelf

    Cline Shale

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    page 16

    Mississippian TrendEmerging Oil Opportunity

    Grant

    Kay

    Osage

    Pawnee

    Payne

    Logan

    Garfield

    Noble

    Oklahoma

    Kansas Net risked resource: >800 MMBOE

    Risked locations: >5,000

    Devon/Sinopec JV Acreage

    Net acreage: 600,000(450,000 net acres outside of Sinopec JV)

    Operated rig count: 15(Potential to operate >20 rigs by year-end)

    3D seismic enhancing results

    Recent wells >1,000 BOPD(Not including high BTU gas)

    Results constrained by infrastructure

    70 wells awaiting completion

    2013 plans: Drill 400 wells

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    Field characteristics Low F&D

    Flat production profile

    Long reserve life >20 years

    Jackfish 1

    Top-tier operating performance Q1 2013 net production: 33 MBOPD

    Initiated solvent and gas co-injection pilots

    Jackfish 2

    Q1 2013 net production: 21 MBOPD

    Installing facilities for additional pad

    Jackfish 3

    Construction 60% complete

    Pike

    Up to five SAGD development phases

    Regulatory approval expected by year-end

    Devons Thermal Oil PositionSAGD Development

    Jackfish (100% WI)

    Pike (50% WI)

    Access Pipeline

    Jackfish 2

    Jackfish 3

    Jackfish

    NYSE: DVN www.devonenergy.com Slide 17

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    NYSE: DVN www.devonenergy.com

    Note: Industry average includes: Bolney-Celtic, Christina Lake, Firebag, Foster Creek, Great Divide, Hangingstone, Kerrobert, Leismer, LongLake, MacKay River, MEG, Orion, Senlac, Surmont, Tangleflags, Tucker, and Wolf Lake.

    Source: FirstEnergy Capital and company disclosures

    Jackfish PerformanceJackfish 1 PerformanceComparison to Industry SAGD Projects

    3.56

    2.70

    IndustryAverage

    Cumulative Steam Oil Ratio (SOR)

    63 Months After Project Startup

    890

    370

    IndustryAverage

    Production Per Well (BOPD)

    Slide 18

    P d i O l k

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    NYSE: DVN www.devonenergy.com Slide 19

    Long-Term Production OutlookThermal OilNet Barrels Per Day

    54,000

    Q1 2013 2020

    150,000

    175,000

    Net Risked Resource: 1.4 BBO

    C di Oil Diff i l O l k

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    NYSE: DVN www.devonenergy.com Slide 20

    Canadian Oil Differential Outlook

    Increased refinery capacity for heavier crudes

    260 MBOPD of incremental demand by 2H 2013 (Whiting)

    Significant pipeline expansions

    Flanagan South & Seaway: 585 MBOPD by mid-2014

    Keystone XL : 830 MBOPD by 2015

    Energy East: Up to 850 MBOPD by 2017

    Trans Mountain & Northern Gateway: 1.1 MMBOPD by 2018

    Increasing rail utilization in North America (>200 MBOPD by end of 2013)

    Conclusion: Incremental demand and infrastructure additions support

    improved oil differentials

    C W df d Sh l

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    Dewey Blaine

    Custer

    Washita

    Caddo Grady

    Canadian

    Cana Plant

    NYSE: DVN www.devonenergy.com Slide 21

    Cana Woodford ShaleLiquids-Rich Gas Development

    Net risked resource: 11.4 TCFE

    Risked locations: 5,400

    Net acreage: 250,000

    Low average royalty burden: 21%

    Q1 2013 net production: 340 MMCFED

    26% growth year over year

    Oil & NGLs production: 23,000 BOED(41% of total production)

    Expanding gas processing facility:

    30 MBPD of NGL capacity

    Significant undrilled liquids-rich inventory 3,000 locations

    2013 plans: Drill 150 wells

    TEXAS

    OKLAHOMA

    B tt Sh l

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    Barnett ShaleLiquids-Rich Gas Development

    Net acreage: 615,000

    Low average royalty burden: 18%

    Q1 2013 net production: 1.4 BCFED

    Liquids production: 55,000 BOED(24% of total production)

    Significant free cash flow ($600 million in 2013)

    Liquids-rich drilling inventory: 2,500 locations

    Operated rig count: reduced to 5 in Q2 2013

    2013 plans: Drill 150 wells

    Net risked resource: 14 TCFE

    Risked locations: 5,000

    ParkerPalo Pinto

    Hood

    Tarrant

    JohnsonErath

    Hill

    Jack

    Denton

    Wise Denton

    Ft. Worth

    DRY GAS175,000 net acres

    Bridgeport Plant

    LIQUIDS-RICH440,000 net acres

    TEXAS

    OKLAHOMA

    www.devonenergy.com Slide 22

    E h d B Mid t O ti

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    NYSE: DVN www.devonenergy.com Slide 23

    Enhanced By Midstream Operations

    Profitable midstream enhances operational effectiveness

    Gulf Coast Fractionators

    38.75% WI

    Inlet: 145 MBPD

    Access Pipeline (Thermal Oil)

    50% WI

    Capacity net to Devon:

    Blended bitumen: 170 MBOPD*

    Condensate: 95 MBOPD*

    *Capacity after 2014 expansion

    Edmonton

    Jackfish

    Key Midstream Assets

    Cana Plant

    Inlet: 350 MMCFD*

    Liquids: 30 MBPD**Capacity after 2Q13 expansion

    Northridge Plant

    Inlet: 200 MMCFD

    Liquids: 17 MBPD

    Barnett Plant

    Inlet: 790 MMCFD*

    Liquids: 63 MBPD*

    *Capacity after 2Q13 expansion

    Ownership in 16,000 miles of pipeline

    United States: 6,500 miles

    Canada: 9,500 miles

    Ownership in 62 plants

    United States: 6 plants

    Canada: 56 plants

    Enhances margins by $2 per BOE

    2013e operating profit: $450 million

    2013e capital: $1 billion

    Ferrier Plant

    Inlet: 100 MMCFD*

    Liquids: 13 MBPD*

    *Capacity after 2014 completion

    P t ti l T U l k V l

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    NYSE: DVN www.devonenergy.com Slide 24

    Potential To Unlock Value

    Considering several options including:

    Joint Ventures

    Asset sales

    Midstream MLP

    C ti f Mid t MLP

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    Creation of Midstream MLP

    Announced June 6, 2013

    MLP will initially own a minority interest in

    Devons U.S. midstream business

    Devon will own the general partner

    Devon will initially own a majority of the

    partnership units following the IPO

    Allows the market to establish an independent

    value for midstream business

    Wh O D ?

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    NYSE: DVN www.devonenergy.com Slide 26

    Why Own Devon?

    Disciplined focus on per share results

    Deep inventory of development opportunities

    World-class SAGD position

    Strong Permian Basin position

    Premier positions in Barnett & Cana Shale plays

    Strong, highly-visible oil growth

    Significant positions in emerging oil plays

    Strong balance sheet

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    Thank You.

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    Appendix A

    Strategy & Operations

    Strategic Objective

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    Strategic Objective

    Devon strives to maximize long-term

    value for our shareholders by growing

    cash flow per share, adjusted for debt.

    We Pursue Our Strategic

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    We Pursue Our StrategicObjective By:

    Exercising capital discipline

    Maintaining a low-cost structure to maximize operating margins

    Focusing on high-return projects

    Improving performance through our midstream

    operations

    Preserving financial strength and flexibility

    Advantaged Resource Base

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    NYSE: DVN www.devonenergy.com Slide 31

    Advantaged Resource Base

    Low entry costs (acreage and royalties)

    Large, concentrated positions

    High-graded portfolio (capturing and divesting)

    Strategic midstream presence in key plays

    Portfolio Management

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    Portfolio Management

    Goal: Optimize depth, diversity, and quality of drilling inventory

    Harvesting mature and lower return assets

    (Since 2002 divested $18 billion of assets)

    New leasehold capture

    (Since 2009 invested >$4 billion into leasehold capture and exploration)

    Joint ventures / farm-ins(Closed $4.0 billion of joint ventures in 2012)

    Joint Venture Rationale

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    NYSE: DVN www.devonenergy.com Slide 33

    Joint Venture Rationale

    Objective: Utilize partnerships in exploration

    Improves capital efficiency

    Accelerates de-risking and commercialization

    Mitigates exploration risk

    Flexibility to generate new prospects

    Preserves cash flow for development projects

    Other Natural Gas Optionality

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    Other Natural Gas Optionality

    Groesbeck

    Washakie

    East TexasUnconventional

    Conventional Plays

    Powder River

    Horn River

    Arkoma Woodford

    Natural GasPlay

    Net AcreagePosition

    CanadaConventional

    >4 million acres

    Carthage 209,000 acres

    Horn River 178,000 acres

    Groesbeck 170,000 acres

    Washakie 162,000 acres

    Powder River 109,000 acres

    ArkomaWoodford

    40,000 acres

    East TexasUnconventional

    37,000 acres

    Carthage

    Other Natural Gas Optionality

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    Other Natural Gas Optionality

    Natural Gas PlayNet Acreage

    PositionNet Production

    Q1 2013Proved Reserves

    12/31/12

    Canada Conventional >4 million acres 448 MMCFED 684 BCFE

    Powder River 109,000 acres 47 MMCFED 19 BCFE

    Carthage 209,000 acres 178 MMCFED 818 BCFE

    Horn River 178,000 acres 7 MMCFED n/m

    Groesbeck 170,000 acres 61 MMCFED 218 BCFE

    Washakie 162,000 acres 112 MMCFED 446 BCFE

    Arkoma Woodford 40,000 acres 55 MMCFED 210 BCFE

    East Texas Unconventional 37,000 acres 16 MMCFED 54 BCFE

    Canadian Oil Sands

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    NYSE: DVN www.devonenergy.com Slide 36

    Canadian Oil SandsIndustry Overview

    In-Situ Projects

    Mining Projects

    Project Type

    Peace River

    Athabasca

    Cold Lake

    Oil Sands Region

    Fort HillsHorizon

    Joslyn Creek

    Syncrude

    Suncor

    Muskeg RiverAlbian

    Dover

    MacKay River

    Firebag

    Hangingstone

    Long LakeSurmont

    Christina Lake

    FosterCreek

    Wolf Lake/Primrose

    Hilda Lake

    Cold Lake

    Tucker Lake

    Jackfish

    KearlLake

    Jackpine

    NorthernLights

    White SandsPike

    Kirby

    Peace River

    Seal

    MEG

    Pike Project Overview

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    Pike Project Overview

    Pike leasehold

    50% operated working interest

    Similar reservoir characteristics

    to Jackfish

    Up to five 35 MBOPD SAGDdevelopment phases

    Potential Pike 1 development

    Single plant pad

    Up to three 35 MBOPD projects

    Developed concurrently

    Regulatory approval expected by

    year-end

    Jackfish

    Pike acreage (50% WI) >15m (50ft) continuous bitumen pay

    Pike Project Area

    Seismic shoot

    Pike 1A, 1B & 1CFocus Area

    Access Pipeline (50% Ownership)

    SAGD Upside

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    SAGD UpsideSolvents

    Potential Benefits

    Increases production rates per well and

    plant production capacity

    Lower steam-oil ratios (15% - 50% decrease)

    Reduces plant emissions

    Risks

    Access to solvent

    Solvent recovery

    Status Update

    1st pilot program: Initiated in Q1 2013

    Small-Scale SAGD

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    NYSE: DVN www.devonenergy.com Slide 39

    Small-Scale SAGD

    Reusable SAGD facilities designed to exploit smaller accumulations

    of bitumen (4 prospects identified)

    Targeted resource: 35-70 MMBO per project

    Peak production rates up to 10 MBOPD per project

    Less upfront capital commitments

    (30% of the capital required for traditional SAGD projects)

    Earlier return on capital(1stoil sale 25 months after sanctioning)

    Heavy Oil Midstream Infrastructure

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    NYSE: DVN www.devonenergy.com Slide 40

    Heavy Oil Midstream InfrastructureAccess Pipeline

    EDMONTON

    HARDISTY

    Express P/LTo U.S. Rockies

    Access BitumenBlend Pipeline

    Access DiluentPipeline

    Oil Pipelines

    200 mile dual pipeline from Edmonton to

    Devons thermal acreage

    Devon ownership: 50%

    Capacity net to Devon

    Blended bitumen: 105 MBOPD(170 MBOPD after expansion in 2014)

    Condensate: 45 MBPD(95 MBPD after expansion in 2014)

    Access to Edmonton condensate, synthetic

    crude and light oil markets

    Flexibility enhances economics

    JACKFISH & PIKE

    Sturgeon Terminal

    Lloydminster

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    NYSE: DVN www.devonenergy.com Slide 41

    Iron River

    Manatokan

    End Lake

    Lloydminster

    LloydminsterOil Development

    Net acreage: 700,000

    Low-risk development

    Strong operating margins

    Q1 2013 net production: 30 MBOED

    2013 plans: 150 wells

    Net risked resource: 60 MMBOE

    Risked locations: >1,000

    B. C.

    Alberta

    Sask.

    Lloydminster

    Ferrier

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    FerrierEmerging Liquids Opportunity

    Net acreage: 240,000

    Multiple target formations:

    (Cardium oil, Viking, Glauconite, & Lower Cretaceous)

    Phase 1 development:

    >200 drilling locations

    >1 MMBOE risked resource

    Liquids 50% of expected production

    Constructing gas processing facility

    Inlet capacity: 100 MMcfd Liquids: 13,000 Bbl/d

    Expected completion: Mid-2014

    2013 plans: Drill 15 wells

    B. C. Alberta

    Sask.Ferrier Corridor

    Ferrier Plant

    Phase 1 development area

    Granite Wash

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    NYSE: DVN www.devonenergy.com Slide 43

    Granite WashOil & Liquids-Rich Development

    Net acreage: 66,000

    Legacy land position held by production

    Low average royalty burden: 19%

    Q1 2013 net production: 16 MBOED

    Liquids drive superior economics

    4 operated rigs

    2013 plans: Drill 50 wells

    OKLAHOMA

    Oklahoma City

    TEXAS

    Granite Wash

    Hemphill

    Wheeler

    Net risked resource: 200 MMBOE

    Risked locations: 350 net wells

    Joint Venture Transactions

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    Mississippian

    Tuscaloosa Shale

    Rockies OilUtica Ohio

    Michigan

    Joint Venture TransactionsOil & Liquids Exploration

    Sinopec Joint Venture

    $2.5 billion transaction($900 million cash and $1.6 billion drilling carry)

    Sinopec receives 33% of Devons interest

    Net acreage in joint venture: 1.5 million Devon serves as operator

    Sumitomo Joint Venture

    $1.4 billion transaction($400 million cash and $1.0 billion drilling carry)

    Sumitomo receives 30% of Devons interest

    Net acreage in joint venture: 650,000

    Devon serves as operatorSinopec joint venture assets

    Cline Shale &Wolfcamp Shale

    Sumitomo joint venture assets

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    Appendix B

    Financial

    Debt Maturity Schedule

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    NYSE: DVN www.devonenergy.com Slide 46

    Debt Maturity ScheduleAs of March 31, 2013

    Due Date Interest Rate $ In Millions

    Commercial Paper 0.4% $3,697

    January 2014 5.6% $500

    July 2016 2.4% $500

    May 2017 1.9% $750

    July 2018 8.3% $125

    January 2019 6.3% $700

    July 2021 4.0% $500

    May 2022 3.3% $1,000

    2023+ 4.8% - 8.0% $4,380

    Total Debt $12,152

    Cash and Short-TermInvestments

    $6,501

    Net Debt $5,651

    Natural Gas Hedges

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    Natural Gas Hedges

    Q2-Q4 2013

    750 MMCFD collared: $3.55 floor and $4.19 ceiling

    988 MMCFD swapped at $4.09

    FY 2014

    140 MMCFD collared: $4.00 floor and $4.62 ceiling

    763 MMCFD swapped at $4.40

    500 MMCFD of call options sold at $5.00

    Note: The pricing points referenced above are weighted average prices.

    Oil Hedges

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    Oil Hedges

    Q2-Q4 2013

    65 MBOPD collared: $90 floor and $112 ceiling

    70 MBOPD swapped at $100

    35 MBOPD swapped at a differential to WTI of $22 (WCS regional basis swaps)

    10 MBOPD of call options sold at $120

    FY 2014

    10 MBOPD collared: $87 floor and $103 ceiling

    21 MBOPD swapped at $95

    41 MBOPD of call options sold at $116.30

    Note: The pricing points referenced above are weighted average prices.

    2013 Operating Cash Flow Estimates

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    2013 Operating Cash Flow Estimates$ In Billions

    WTI-Cushing Price

    Henry Hub Price $80.00 $90.00 $100.00

    $3.25 $5.0 $5.0 $5.3

    $3.75 $5.0 $5.1 $5.4

    $4.25 $5.1 $5.2 $5.5

    Note: Operating cash flow assumes the mid-point of Devons full-year guidance for production, pricedifferentials, and costs. For more details on Devons guidance see the form 8-K filed on February20, 2013.

    Sources and Uses of Cash

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    Sources and Uses of CashBefore Share Buybacks and Dividends

    $ In Billions

    2009 2010 2011 20122009-2012

    Total

    Operating Cash Flow 4.8 5.5 6.2 5.0 21.5

    Asset Sales / JV Proceeds 0.0 7.0 3.4 1.5 11.9

    Capital Expenditures (5.4) (7.0) (7.6) (8.2) (28.2)

    Net Cash Effect (0.6) 5.5 2.0 (1.7) 5.2

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    Appendix C

    Supply & Demand

    Canadian Crude Oil

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    Canadian Crude OilSupply and System Capacity

    Source: Canadian Association of Petroleum Producers

    0.0

    1.0

    2.0

    3.0

    4.0

    5.0

    6.0

    7.0

    8.0

    2011 2012 2013e 2014e 2015e 2016e 2017e 2018e

    MMBOD

    Oil Supply Current Export & Local Demand Capacity

    Rail Flanagan South

    Keystone XL Trans Mountain Expansion

    Energy East Northern Gateway

    Canadian Oil

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    Vancouver

    NYSE: DVN www.devonenergy.com Slide 53

    U.S. Gulf Coast(USGC)

    Cushing

    Hardisty

    Edmonton

    Chicago

    Canadian OilPipeline Capacity Additions

    Flanagan South: Chicago to USGC Capacity: 0.6 MMBOPD

    Estimated in service by mid-2014

    Keystone XL: Hardisty to USGC

    Capacity: 0.8 MMBOPD

    Estimated in service by 2015

    Trans Mountain: Edmonton to Vancouver

    Incremental capacity: 0.6 MMBOPD

    Estimated in service by 2017

    Energy East: Hardisty to Canaport

    Capacity: Up to 0.9 MMBOPD

    Estimated in service by mid-2017

    Northern Gateway: Edmonton to Kitimat

    Capacity: 0.5 MMBOPD

    Estimated in service by 2018

    Kitimat

    Canaport

    Heavy Oil Blend

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    Heavy Oil BlendRail Transport Fees

    Potential Rail Costs $ Per Bbl

    Trucking & Loading $7.00

    Rail Car Rental $5.00

    Transport FeeVariable

    (Mileage Based)

    Offloading Fee $3.00

    Oil Sands

    West CoastRefining

    Gulf CoastRefining

    East CoastRefining

    Heavy Oil

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    Heavy OilRefinery Expansions

    Operator LocationIn Service

    DateCapacity

    Increase (BOPD)

    BP Whiting, Indiana 2H 2013 260,000

    NorthwestUpgrading

    Edmonton, Alberta 2016 80,000

    Total Capacity Increase from 2013 to 2016 340,000

    NYSE: DVN

    North America Natural Gas

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    Demand Growth By Sector 2013-2017

    Source: Wood Mackenzie, EIA, Bentek, and company data

    70

    2.00.8

    3.0

    1.7

    78

    65

    70

    75

    80

    2013Baseline

    Industrial Res/Com Power LNG Exports 2017e

    BCFD

    North America Natural Gas

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    Cumulative Coal Retirement Demand Forecast

    0.5 0.71.0

    2.63.00.8

    2.9

    3.2

    0

    2

    4

    6

    8

    2013e 2014e 2015e 2016e 2017e

    Forecasted Retirement Demand Potential Demand

    Source: Wood Mackenzie, CRA, NYMEX, Platts, and company data

    BCFD

    North America Natural Gas

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    Annual Industrial Demand

    15

    16

    17

    18

    19

    20

    21

    22

    2008 2009 2010 2011 2012 2013e 2014e 2015e 2016e 2017e

    BCFD

    Source: Wood Mackenzie, EIA, and company data

    North America Natural Gas

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    U.S. LNG Projects

    Facility Developer(s) Location Capacity(BCFD)

    Start-Up Date

    ApprovalDOE Exports

    ApprovalFERC

    Final

    InvestmentDecision

    (FID)

    Sabine Pass Cheniere Cameron, LA 2.3 4Q 2015 Approved Approved July 2012

    Freeport LNG Freeport LNG Freeport, TX 1.4 2016 Approved Filed --

    Cameron Sempra Energy Hackberry, LA 1.7 2017 Pending Filed --

    Cove Point Dominion Lusby, MD 1.0 2017 Pending -- --

    Jordan Cove Fort Chicago Coos Bay, OR 1.2 2017 Pending -- --

    Oregon LNG LNG Development Co Astoria, OR 1.3 2017 Pending -- --

    Lavaca Bay LNG Excelerate Floating LNG,Corpus Christi,TX

    0.5 2017 Pending -- --

    Lake Charles Energy Transfer / BG Lake Charles, LA 2.0 2018 Pending -- --

    Corpus Christi Cheniere Corpus Christi,TX

    1.2 2018 Not Filed Filed --

    Gulf Coast LNG Freeport LNG Brownsville, TX 1.4 2018 Pending -- --

    Golden Pass ExxonMobil, QatarPet

    Port Arthur, TX 2.0 N/A Pending -- --

    Others 4.0 to 5.5 N/A -- -- --

    U.S. TOTAL 20 to 21.5

    North America Natural Gas

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    Canada LNG Projects

    Facility Developer(s) LocationCapacity(BCFD)

    Start-Up DateNEB

    ExportLicense

    Douglas ChannelEnergy

    LNG Partners, HaislaNation

    Floating LNG,Kitimat, B.C.

    0.1 2015 Approved

    Kitimat LNG Apache, Chevron Kitimat, B.C. 0.7 2018 Approved

    Goldboro LNG Pieridae Energy Nova Scotia 1.3 2018 --

    LNG Canada Shell, Mitsubishi,KOGAS, PetroChina

    Kitimat, B.C. 1.6 2019 Approved

    Pacific Northwest LNG Petronas, Japex Prince Rupert, B.C. 1.6 2019 FiledBG Group LNG BG Group Prince Rupert, B.C. 3.9* 2020 --

    CANADA TOTAL 9.2

    * Announced pipeline capacity of 4.2 Bcf/d. Liquefaction estimated based on pipe capacity.