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1. NYSE: DVN devonenergy.com Investor Presentation May 2019 2. 2Investor Presentation Defining the “New Devon”  World-class U.S. oil portfolio — Unrivaled…
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  • 1. NYSE: DVN devonenergy.com Investor Presentation May 2019
  • 2. 2Investor Presentation Defining the “New Devon”  World-class U.S. oil portfolio — Unrivaled acreage position in top basins — Multi-decade growth inventory — Resource depth allows for portfolio high-grading  Disciplined returns-driven strategy — Aggressively improving cost structure — Growing higher-margin oil production — Generating free cash flow above $46 WTI  Delivering value to shareholders — Committed to return of capital — Capital-efficient per-share growth 21 MBOED (76% OIL) STACK 123 MBOED (55% LIQUIDS) POWDER RIVER EAGLE FORD 50 MBOED (50% OIL) 107 MBOED (56% OIL) DELAWARE Production: 308 MBOED (Q1 2019) Revenue: 84% oil & liquids Oil growth rate: 17% in 2019 Multi-decade growth inventory New Devon Overview
  • 3. 3Investor Presentation Reported New Devon Unleashing Potential of World-Class Oil Assets Q1 2019 Oil Growth Oil Realizations 150 300 450 600 750 900 U.S. well productivity showcases asset quality Source: IHS/Devon. All wells drilled from 2015 through April 2019. Includes operators with more than 150 wells. Superior oil growth and pricing +24% (vs. Q1 2018) +1% (vs. Q1 2018) Reported New Devon DECLINE 20% Improved per-unit costs LOE ($/BOE) (Trailing 12-month average) Higher field-level margins ($/BOE) (Trailing 12-month average) $18.31 $25.71 INCREASE 40% $9.50 Avg.90-DayIPsBOED,20:1 PEER AVG. 95% (of WTI) 47% (of WTI) Reported New Devon Top 40 U.S. Producers $7.62 SUPERIOR WELL RESULTS >40%VS. PEER AVG. (Trailing 12-month avg.)
  • 4. 4Investor Presentation $- $50 $100 $150 $200 $250 $300 $350 G&A Drilling & Completions Interest LOE 70% BY YEAR-END 2019 100% BY YEAR-END 2019 Cost savings initiatives trending ahead of plan Estimated cost savings by area as of 4/30/19 ($MM) Next Steps to Optimize New Devon’s Cost Structure Aggressively pursuing improved cost structure New Devon expected cost savings by area vs. 2018 results ($MM) $780 ANNUAL COST SAVINGS BY 2021 MILLION G&A $300 MM Interest $130 MM Per-Unit Recurring LOE $50 MM D&C Efficiencies $300 MM (2)(1) 65% BY YEAR-END 2019 50% BY YEAR-END 2019 (1) ~$100 MM associated with the exit of Canada and Barnett. (2) Assumes $3 billion of debt repayments with the exit of Canada and Barnett. (3) Run-rate saving achieved as of 4/30/19 (Run-rateasof4/30/19) CURRENTLY ACHIEVED (Basedondecisionsmade) UPCOMING 2019 SAVINGS (Expectedduring2020&2021) FUTURE COST INITIATIVES  Cost savings designed to be front-end weighted — >70% of savings achieved by year-end 2019 — G&A run-rate savings YTD: ~$110 million(3) — D&C efficiencies reflected in 2019 outlook (1) (2)
  • 5. 5Investor Presentation 0 2,000 4,000 6,000 2019 Program High-Return Inventory Risked Inventory (@ $50 WTI) (@ $60 WTI) (2) Inventory Supports Sustainable Long-Term Growth STACK Delaware Basin Eagle Ford PRB 4,200 operated locations (Avg. lateral length: ~7,500’) ~280 operated wells online (Avg. lateral length: ~8,000’) 15 YEAR INVENTORY (AT CURRENT ACTIVITY PACE) WTD AVG. IRR: >50% 6,500 operated locations (Avg. lateral length: <7,500’) (1) High-return inventory potential(1) Gross operated inventory locations (1) High-return inventory represents locations generating >20% IRR. Returns based on all-in E&P capital investment, which includes drilling, completion and well-site facilities and flow back. (2) Requires additional appraisal work, cost efficiencies, spacing optimization and operating cost improvements to compete for capital allocation with current high-return inventory opportunity set. >20 YEAR INVENTORY (AT CURRENT ACTIVITY PACE)
  • 6. 6Investor Presentation Divestiture Program Accelerates Value Creation  Resource quality & depth allows for high-grading of portfolio  Pursuing strategic alternatives for Barnett Shale and Canadian assets — Outright sale or spin-off — Data rooms: open Q2 2019 — Expect to complete by year end  Proceeds will be utilized for debt repayment — Targeted debt-to-EBITDA ratio: 1.0x-1.5x — Expect up to $3 billion of debt repayments  Rockies CO2 asset sale expected in 2019 NEW DEVON ASSETS DIVESTITURE ASSETS POWDER RIVER STACK DELAWARE BASIN EAGLE FORD CANADA Q1 Production: 113 MBOED Data room: Open in Q2 ROCKIES CO2 BARNETT SHALE Q1 Production: 103 MBOED Data room: Open in Q2 Q1 Production: 3 MBOED Sales process: Ongoing
  • 7. 7Investor Presentation Q1 2018 Q2 2018 Q3 2018 Q4 2018 3/31/19 YE 2019e Committed to Return of Capital to Shareholders Repurchase program accelerates per-share growth Outstanding shares (MM) 25% SHARE COUNT REDUCTION 527 ~390(1) 521 491 459 417 Delivering sustainable dividend growth Annual divided per share 2017 2018 Current $0.36 $0.24 > (2) 50% INCREASE (OVER PAST 2 YEARS) RETURNED >$4 BILLION OF CAPITAL TO SHAREHOLDERS OVER LAST 12 MONTHS (1) Assumes an incremental $1 billion of shares are repurchased at current share price. (2) Annualized run-rate based on dividend increase effective in Q2 2019. .
  • 8. 8Investor Presentation Disciplined Returns-Driven Strategy KEY STRATEGIC OBJECTIVES Fund high-return projects Maintain financial strength Return cash to shareholders Generate free cash flow 1 2 3 4 (1) Price sensitivity also assumes $3 Henry Hub and current hedge position. $40 Free cash flow accelerates (no change to activity levels over 3-year plan) Key strategic objectives achieved (3-year plan delivers mid-teens oil growth within cash flow) Maintain financial strength and operational continuity (New Devon FCF breakeven below $40 in 2019 with hedging gains) WTI PRICE(1) $46 $46 GREATER THAN APPROACH TO THE CURRENT ENVIRONMENT
  • 9. 9Investor Presentation Executing on Our 2019 Capital Objectives Focused on top-tier oil development opportunities New Devon 2019e E&P capital $1.8-$2.0 E&P CAPITAL 50% DELAWARE 20% STACK 15% POWDER RIVER 15% EAGLE FORD BILLION 15% MORE WELLS FOR ~10% LESS CAPITAL (VS. 2018)  Structural improvements driving capital efficiency: — Wolfcamp cycle times and costs improving — STACK infill spacing design optimized — Dedicated frac crew to lower Power River Basin costs  First-quarter capital spending: 9% below guidance — Represents 24% of 2019 capital budget 121 FY 2018 Q1 2019 Q2 2019e 2H 2019e 2019e Exit Rate ~17% OIL GROWTH >25% (2019 exit rate vs. FY 2018) 2018 vs 2019 Raising “New Devon” 2019 oil production outlook New Devon U.S oil production (MBOD) +200BASIS POINTS (VS ORIGINALGUIDANCE)
  • 10. 10Investor Presentation New Devon: 3-Year Performance Targets CUMULATIVE FREE CASH FLOW OIL GROWTH COST SAVINGS DEBT TARGETCAPITAL PROGRAM RETURN ON CAPITAL TARGET: >15%(1) $2.3 AT $60 WTI 12% – 17% CAGR (FY2018 – 2021) LIGHT-OIL PRODUCTION $780 MM BY 2021 1.0x to 1.5x DEBT TO EBITDA RATIO Funded AT $46 WTI  Opportunistically repurchase shares  Sustainably pay and grow dividend  Improve financial strength and flexibility Free Cash Flow Priorities (1) Internal rate of return on capital investment after burdening for G&A and corporate costs. Metric further detailed in proxy and driver of management compensation. (2) Assumes cost savings are fully realized at the beginning of 2019. BILLION (2)
  • 11. 11Investor Presentation 0% 2% 4% 6% 8% 10% 2019 - 2021 2019 - 2021 2019 - 2021 $- $0.5 $1.0 $1.5 $2.0 $2.5 $3.0 ($65 WTI) New Devon: Free Cash Flow Yield to Investors ($55 WTI) ($60 WTI) Cumulative Free Cash Flow $3.0B CumulativeFreeCashFlow($B) Cumulative Free Cash Flow $2.3B FreeCashYield(AnnualAvg.) Cumulative Free Cash Flow $1.6B Note: Free cash flow yield assumes market capitalization based on current share price multiplied by expected shares outstanding at year-end 2019 (~390 mm shares). Cumulative free cash flow represents the aggregate operating cash flow less total capital requirements before dividend. Assumes $3 HH price. Cumulative Free Cash Flow Free Cash Flow Yield (Annual Avg.) (1) Assumes cost savings are fully realized at the beginning of 2019. OIL CAGR: 12%-17% BREAKEVEN: $46 WTI (BREAKEVEN CALC INCLUSIVE OF ALL CAPEX) 3-YEAR CAPITAL PLAN (1) (1) (1)
  • 12. 12Investor Presentation Advantaged Financial Strength PROTECTING OUR ABILITY TO EXECUTE INVESTMENT- GRADE CREDIT RATINGS Low Leverage Debt-to-EBITDA target: 1.0.-1.5x Excellent Liquidity Cash: $1.3B Disciplined Hedging Targeting ~50% of total volumes  Investment-grade financial position — Substantial liquidity: $1.3 billion of cash — Debt-to-EBITDA target: 1.0x to 1.5x  Disciplined hedging program protects cash flow — Targeting ~50% of oil & gas volumes — Utilizing basis swaps to protect regional pricing  Targeting up to $3 billion of debt repayment — Repayments to be funded by asset sale proceeds — Lowers interest expense by up to $130 million  Prioritizing free cash flow for shareholder returns — Share repurchases to reach $5 billion by year end
  • 13. 13Investor Presentation Focused on Top-Tier ESG Performance Devon is rated in the top half of its peers under MSCI’s rating methodology. 56 64 Peer Group Avg. 69 72 Peer Group Avg. 63 74 Peer Group Avg. ENVIRONMENT SCORE SOCIAL SCORE GOVERNANCE SCORE OVERALL SCORE DEVON’S RANKINGS: Overall 77th percentile Environment 92nd percentile Social 54th percentile Governance 92nd percentile 77 0 25 50 75 100 For additional information see our 2018 Sustainability Report. Percentile0 100 TOP-QUARTILE PERFORMANCE ENVIRONMENT SOCIAL GOVERNANCE Note: ISS scoring scale ranges from 1 to 10. The best score possible is 1. DVN’s SCORE: 2 PEER AVERAGE: 3.5+43%VERSUS PEER AVG. DVN’s SCORE: 2 PEER AVERAGE: 3.2+38%VERSUS PEER AVG. DVN’s SCORE: 3 PEER AVERAGE: 5.5+45%VERSUS PEER AVG.
  • 14. 14Investor Presentation Delaware Basin – Capital-Efficient Growth Engine World-class oil opportunity Multi-decade growth platform Accelerating development activity Record-setting well productivity POTATO BASIN TODD THISTLE/GAUCHOCOTTON DRAW RATTLESNAKE Eddy Loving Lea Fighting Okra (6 wells) Avg. IP30: ~3,200 BOED/well Cat Scratch Fever (8 wells) Top 5 wells IP24 hr: 10 MBOED/well For additional information see our Q1 operations report Cotton Draw Unit (4 wells) Avg. IP30: ~2,200 BOED/well Gaucho Unit (5 wells) Avg. IP30: ~2,100 BOED/well Tomb Raider 528H Avg. IP30: 2,500 BOED North Thistle 34 Flagler Upcoming Projects Core Development Area Key Q1 2019 Wells Snapping VanDoo Dah
  • 15. 15Investor Presentation Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 0 50 100 150 200 250 300 1 2 3 4 5 6 7 8 9 2018 Wolfcamp program Delaware Basin – Step-Change in Well Productivity Well productivity reaching record highs Average cumulative oil production per well (MBO) Months Online 2018 average 2015-2017 average BONE SPRING & WOLFCAMP FOCUS IN 2019 2018 Boundary Raider wells (>90% improvement vs. 3-year avg.) (targeting Bone Spring) YEAR OVER YEAR GROWTH Gas NGL Oil 107 76% 61 Note: 2015-2017 costs are pro forma for revenue recognition accounting rules recently implemented. $17.20 $9.54 $9.03 $7.64 $6.81 2015 Peak 2016 2017 2018 Q1 2019 Operating scale drives per-unit costs lower Delaware Basin LOE & GP&T expense ($/BOE) 60% IMPROVEMENT Delivering high-return growth Production (MBOED)
  • 16. 16Investor Presentation Focusing on Bone Spring & Wolfcamp Projects in 2019 Todd Area Eddy Boundary Raider (2 wells) Avg. IP24 hr: 12 MBOED/well RATTLESNAKE DEVELOPMENT AREA Rattlesnake Area Lea ACCELERATING TODD DEVELOPMENT PROGRAM Flagler (Phase 1) Completing Peak rates: 2H 2019 Lea Ko Lanta (2 Leonard wells) Avg. IP30: 2,600 BOED/well Tomb Raider (3 Wolfcamp wells) Avg. IP30: 3,500 BOED/well Other Key Activity Bone Spring Wells Fighting Okra 9 Wolfcamp wells Avg. IP30: ~3,200 BOED/well Arena Roja 2H 2019 Spud Mean Green 2H 2019 Spud Jayhawk Drilling Seawolf 12 Wolfcamp wells Avg. IP30: 3,300 BOED/well Developments Online Upcoming DevelopmentsCat Scratch Fever (Phase 1) 10 wells online IP24 hr: 10 MBOED/well(1) (Top 5 wells) (1) Peak 24-hour production rates achieved to understand well deliverability.  Wolfcamp program ramping up (~40% of 2019 activity)  Six key projects underway in Rattlesnake area — Fighting Okra wells online (IP30: ~3,200 BOED/well) — NEXT CATALYST: Flagler project (Phase one: 7 wells) — New facility design to lower costs (up to $250k/well)  Developing 2nd Bone Spring sweet spot at Todd  Cat Scratch Fever wells delivering prolific results — Phase one consists of 10 wells (flowing back) — Top 5 wells avg. IP24 hr: 10 MBOED(1) (facility constrained) — NEXT CATALYST: Phase two online by year-end (10 wells) Cat Scratch Fever (Phase 2) 10 wells (online by YE 2019)
  • 17. 17Investor Presentation Delaware Basin – A Multi-Decade Growth Platform 2019 Program High Return Inventory Bone Spring Wolfcamp Leonard High return inventory at $50 WTI Gross operated inventory locations generating IRR >20%(1) 2,000 locations (Avg. lateral length: 7,500’) 16 YEAR INVENTORY (AT CURRENT ACTIVITY PACE) Weighted Avg. IRR: >50% (1) IRR on E&P capital investment (includes drilling, completion and well-site facilities and flow back). Delaware Leonard Bone Spring Wolfcamp Thistle Cotton Draw Todd Potato Basin Rattlesnake ~5,000 feetofpay Massive stacked-pay resource opportunity Potential landing zones by core operating region 125 wells drilled (Avg. lateral length: 8,000’)
  • 18. 18Investor Presentation Powder River Basin – Growth Set to Accelerate  A top-tier emerging oil growth opportunity — Stacked pay position in oil fairway (>300k net acres) — Activity targeting Turner, Parkman & Niobrara intervals  Activity increasing: 4 rigs & dedicated frac crew — Q1 2019 net production increased 15% vs. Q4 2018 — Expect >50% oil exit rate growth (Q4’ 19 vs. Q4’ 18) — Oil volume growth to accelerate in 2H 2019  Structural improvements to drive capital efficiency — 2019 program focused on Turner development drilling — Expect savings of >$1 million per well (see chart)  Niobrara possesses scalable growth potential — 200,000 net acres of stacked pay in oil fairway — Initial 3 operated wells successful (avg. IP30 >1,000 BOD) — NEXT CATALYST: Initial spacing test spud in Q1 Operating scale driving D&C costs lower Turner formation drilling and completion costs ($MM) 2018 Unbundling Supply Chain Drilling Completions 2019 Target $6.5 $8.0 >$1 MILLION EXPECTED SAVINGS Super Mario Area SDU Tillard 1XPH (Parkman) Avg. 30-Day IP: 1,800 BOED (~95% oil) (12,500’ lateral) Madsen FED 36-1 (Turner) Avg. 30-Day IP: 1,300 BOED (~80% oil) (9,600’ lateral) Initial Niobrara spacing test Q1 2019 Spud POWDER RIVER BASIN ACTIVITY Upcoming Activity Converse (Turner focused)
  • 19. 19Investor Presentation 0 50 100 150 0 30 days 60 days 90 days 120 days Northwoods STACK – Optimizing Infill-Development Results Lighter-spaced projects delivering optimized results Average cumulative production per well (MBOE) Type Curve (10K LATERAL) 30-DAY IP (BOED) 1,300 – 1,600 EUR (MBOE) 1,200 – 1,400 D&C COST ~$7.5 MM Type Well Pony Express(1) Scott(1)  Strategic priorities for 2019 capital program — Prioritizing free cash flow over volume growth — Retain operational flexibility to increase investment  Lighter-spaced projects enhancing rates of return — Well productivity tracking at or above type curve — Expect 15% lower D&C costs per well vs. 2018  NEXT STEPS: Transition all activity to 4-6 wells per unit — Drilling focused in best part of play (volatile oil window) — Activity primarily targeting Upper Meramec interval  Expect stable production in 2019 (Q1: 123 MBOED) — On track to generate >$300 million of free cash flow — Significant inventory remaining (850 high-return locations) Kingfisher CanadianBlaine Key Q1 2019 Results STACK DEVELOPMENT ACTIVITY Upcoming Developments (1) Normalized for 10,000’ laterals Scott (5 wells/DSU) Avg. IP30: 2,500 BOED(1) Northwoods (5 wells/DSU) Avg. IP30: 1,500 BOED Pony Express (4 wells/DSU) Avg. IP30: 1,600 BOED(1) 2019 Focus Area 4-6 wells TARGETED SPACING PER DSU Kraken (7 wells/DSU) Currently flowing back
  • 20. 20Investor Presentation  Significant free cash flow generating asset — $543 million over past 12 months — Delivering highest margin in portfolio  Activity increased to 3 drilling rigs — 70 spuds planned in 2019 (~50 new wells online) — Program supported by dedicated frac crew — Production to average ~50 MBOED in 2019  10-year drilling inventory at 2019 activity levels — 700 “high-return” undrilled locations identified(1) — NEXT CATALYST: Appraisal activity underway (see map)  Horizontal oil refrac program creating value — Initial results achieve 12x increase in well productivity — Current-year program to appraise 20 locations — 200 refrac candidates identified (>700 potential) Eagle Ford – Expanding Resource Opportunity (in $MM) Last 12 months Revenue $930 Production Expenses $215 Cash Margin $715 Capital Expenditures $172 Free Cash Flow $543 Substantial free cash flow 700 Eagle Ford locations 10-year drilling inventory ~ Upside potential Austin Chalk locations Q1 2019 Results 9 Lower Eagle Ford Wells Avg. 30-Day IP: 3,100 BOED/Well EAGLE FORD ACTIVITY Eagle Ford Redevelopment Well Flowing Back Initial Austin Chalk Well Flowing Back 2019 Refrac Activity FREE CASH FLOW ($MM) 543$ LAST 12 MONTHS Initial Eagle Ford Refracs Avg. 30-Day Uplift: 1,300 BOED/Well (1) High-return inventory represents locations generating >20% IRR. Returns based on all-in E&P capital investment, which includes drilling, completion and well-site facilities and flow back. High-Return Locations (With Upside)
  • 21. 21Investor Presentation Why Own the New Devon?  World-class U.S. oil portfolio — Unrivaled acreage position in top basins — Multi-decade growth inventory — Resource depth allows for portfolio high-grading  Disciplined returns-driven strategy — Aggressively improving cost structure — Growing higher-margin oil production — Generating free cash flow above $46 WTI  Delivering value to shareholders — Committed to return of capital — Capital-efficient per-share growth 21 MBOED (76% OIL) STACK 123 MBOED (55% LIQUIDS) POWDER RIVER EAGLE FORD 50 MBOED (50% OIL) 107 MBOED (56% OIL) DELAWARE Production: 308 MBOED (Q1 2019) Revenue: 84% oil & liquids Oil growth rate: 17% in 2019 Multi-decade growth inventory New Devon Overview
  • 22. 22Investor Presentation Investor Contacts & Notices Investor Relations Contacts Scott Coody Chris Carr VP, Investor Relations Manager, Investor Relations 405-552-4735 405-228-2496 Email: investor.relations@dvn.com Forward-Looking Statements This presentation includes “forward-looking statements” as defined by the Securities and Exchange Commission (the “SEC”). Such statements include those concerning strategic plans, our expectations and objectives for future operations, as well as other future events or conditions, and are often identified by use of the words and phrases “expects,” “believes,” “will,” “would,” “could,” “continue,” “may,” “aims,” “likely to be,” “intends,” “forecasts,” “projections,” “estimates,” “plans,” “expectations,” “targets,” “opportunities,” “potential,” “anticipates,” “outlook” and other similar terminology. All statements, other than statements of historical facts, included in this presentation that address activities, events or developments that Devon expects, believes or anticipates will or may occur in the future are forward-looking statements. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond our control. Consequently, actual future results could differ materially from our expectations due to a number of factors, including, but not limited to: the volatility of oil, gas and NGL prices; uncertainties inherent in estimating oil, gas and NGL Investor Notices reserves; the extent to which we are successful in acquiring and discovering additional reserves; the uncertainties, c
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