Barclays CEO Energy-Power Conference September 7, 2017 NYSE: DVN - PowerPoint PPT Presentation

Barclays CEO Energy-Power Conference September 7, 2017 NYSE: DVN devonenergy.com

Investor Contacts & Notices Investor Relations Contacts Scott Coody, Vice President, Investor Relations (405) 552-4735 / scott.coody@dvn.com Chris Carr, Supervisor, Investor Relations (405) 228-2496 / chris.carr@dvn.com Forward-Looking Statements This presentation includes "forward- looking statements" as defined by the Securities and Exchange Commission (the “SEC”). Such statements are subject to a variety of risks and uncertainties that could cause actual results or developments to differ materially from those projected in the forward-looking statements. Please refer to the slide entitled “Forward - Looking Statements” included in this presentation for other important information regarding such stateme nts. Use of Non-GAAP Information This presentation may include non-GAAP financial measures. Such non-GAAP measures are not alternatives to GAAP measures, and you should not consider these non- GAAP measures in isolation or as a substitute for analysis of our results as reported under GAAP. For additional disclosure regarding such non-GAAP measures, including reconciliations to their most directly comparable GAAP measure, please refer to Devon’s most recent earnings release at www.devonenergy.com. Cautionary Note to Investors The SEC permits oil and gas companies, in their filings with the SEC, to disclose only proved, probable and possible reserves that meet the SEC's definitions for such terms, and price and cost sensitivities for such reserves, and prohibits disclosure of resources that do not constitute such reserves. This presentation may contain certain terms, such as resource potential, risked or unrisked resource, potential locations, risked or unrisked locations, exploration target size and other similar terms. These estimates are by their nature more speculative than estimates of proved, probable and possible reserves and accordingly are subject to substantially greater risk of being actually realized. The SEC guidelines strictly prohibit us from including these estimates in filings with the SEC. Investors are urged to consider closely the disclosure in our Form 10-K, available at www.devonenergy.com. You can also obtain this form from the SEC by calling 1-800-SEC- 0330 or from the SEC’s website at www.sec.gov. 2 | Investor Presentation

A Leading North American E&P STACK & Delaware focused Best-in-class well productivity Multi-decade growth platform >30,000 Rapid cash flow expansion STACK & DELAWARE POTENTIAL LOCATIONS Financial capacity to execute 3 | Investor Presentation

Devon’s 2020 Vision Further high-grade asset portfolio  Advance STACK & Delaware activity  Monetize less competitive assets  Multi-billion dollar divestiture potential Expand per-unit margins  Shift production to higher value products  Maximize margins by lowering cost structure Improve balance sheet strength  Divestiture proceeds to reduce debt  Net debt to EBITDA target: 1.0x – 1.5x Focus on financial returns  Deliver top-tier returns on invested capital  Return cash to shareholders 4 | Investor Presentation

2017 Capital Program U.S. Rig Activity 10%  Disciplined focus on value and returns 90% OTHER ASSETS STACK & DELAWARE  Ramping to ~20 rigs by year-end  Efficiencies YTD drive improved 2017 outlook 2017e E&P CAPITAL $1.9 - 2.2 Billion  Visible funding for multi-year capital plan $100 MILLION FROM PREVIOUS GUIDANCE For additional information see our Q2 operations report . 5 | Investor Presentation

Rapidly Expanding High-Margin Production  Building operational momentum in 2017 U.S. Oil Production MBOD +18 - 23% 120  Positioned for higher growth in 2018 105  Strong growth driven by STACK & Delaware Q4 2016 1H 2017 2017e Exit Rate For additional information see our Q2 operations report . 6 | Investor Presentation

Peer-Leading Cash Flow Expansion Shifting to higher-value production Delivering peer-leading cash flow expansion $ Billions Liquids % of Total Product Mix >$2.5 (1) ~65% 61% 61% 52% ~55% PRODUCT SHIFT 42% 2013 2014 2015 2016 Q4 2017e >175% $0.9 (2) Cost savings boost margins INCREASE Operating Costs and G&A ($ Billions) $4.1 $3.7 2016 2017e >30% $2.8 ~$2.7 Upstream Cash Flow EnLink Distributions IMPROVEMENT (1) Assumes $50 WTI and $3 Henry Hub in 2017; excludes EnLink operating cash flow. (2) 2016 excludes $150 million of cash flow associated with divestiture assets and 2014 2015 2016 2017e includes $265 million of cash associated with debt repayments. 7 | Investor Presentation

Financial Capacity T o Execute PROTECTING OUR ABILITY  Investment-grade credit ratings TO EXECUTE  Disciplined hedging program Disciplined Hedging Excellent  Significant investment in EnLink Midstream Liquidity (Cash: $2.4 billon) INVESTMENT-  $1 billion divestiture program underway GRADE credit ratings  Additional multi-billion dollar divestiture potential EnLink Investment (Market value: ~$3.5 billion) 8 | Investor Presentation

Operational Excellence Capture Improve FULL VALUE RETURNS Maximize base production Optimize capital program  Minimize controllable downtime  Disciplined project execution  Enhance well productivity  Perform premier technical work  Leverage midstream operations  Focus on development drilling  Control operating costs  Increase capital efficiency 9 | Investor Presentation

Best-In-Class Well Productivity Avg. 90-Day Wellhead IPs BOED, 20:1 DEVON WELL ACTIVITY >450% (Since 2012) 1,000 800 I M P R O V E M E N T 600 400 200 Top 30 U.S. Producers Source: IHS/Devon. Top operators with more than 40 wells over the trailing 12-months. 10 | Investor Presentation

Efficiencies Offsetting Industry Inflation  Completely offset industry inflation 15 %  Significant efficiency gains in STACK & Delaware  Innovative supply-chain initiatives SUPPLY CHAIN SAVINGS ACHIEVED YTD — Unbundling historical, high-margin services — Utilizing diversified vendor universe  Supply chain savings reach 15% YTD For additional information see our Q2 operations report . 11 | Investor Presentation

Devon’s T echnology Leadership  Culture of embracing technology  Industry leader in deploying advanced analytics  Contributing to best-in-class performance Targeting hundreds of millions Billion dollar-plus annual prize in value creation annually  Technology revolution still in early stages 12 | Investor Presentation

Devon’s T echnology Leadership SUBSURFACE DRILLING & COMPLETIONS PRODUCTION OPERATIONS  Predictive pump failures  Cyber-geosteering  Improved 3D seismic  Field issue prioritization interpretation/integration  ~99% time in zone  Faster response times  High-graded location selection  Fiber-optic sensing  Optimized compressors  Optimized landing zones  Screen-out prediction  2% annual production uplift  Well productivity predictions  Prolonged drill-bit life  Depletion analysis  Coiled-tubing drill-outs  Geospatial optimization  Efficient flowbacks  Cutting-edge frac modeling BOTTOM LINE IMPACT FROM OPERATIONAL EXCELLENCE INITIATIVES >40% >450% IMPROVEMENT INCREASE 2% UPLIFT In D&C costs across In 90-day well productivity To annual base production key plays since 2014 since 2012 (peer leading) ($100 million benefit annually) 13 | Investor Presentation

Multi-Zone Manufacturing  Development concept in STACK & Delaware Multi-Zone Development – Full Section  The next frontier of efficiency gains  Benefits of multi-zone manufacturing — LOE and capital efficiencies — Simultaneous operations — Increase recoveries MULTI-ZONE — Optimize surface facilities MANUFACTURING >40% — Short cycle times NPV UPLIFT For additional information see our Q2 operations report . 14 | Investor Presentation

STACK – Franchise Growth Asset Blaine Showboat World-class resour ource ce oppo portun tunity ity  Q3 2017 Spud (~25 wells) Kingfisher Coyote 670K net acres es by format rmation ion  Q1 2018 Spud (~10 wells) B-Hardt Mid-2018 Spud (10-15 wells) Up to 4 targe get t intervals vals per unit  Horsefly Q1 2018 Spud (10-15 wells) Accelerating multi-zone zone acti tivit vity  Jacobs Q4 2017 Spud (40-50 wells) Upcoming Development Caddo Canadian Drilling Unit 15 | Investor Presentation

STACK – Multi-Decade Growth Platform Best-in-class well results Strong production growth STACK Avg. 90- Day Wellhead IPs Per 1,000’ Lateral 2014 to 2017e Exit Rate Production BOED, 20:1 MBOED >120 >50% VS. PEER AVG. 143 >70% 70 GROWTH Peers 2014 2015 2016 2017e Exit Rate Note: 2016 to current state data. Peers include XEC, MRO, CLR and NFX. Advantaged cost structure Tremendous resource potential 2015 to 2017e LOE Decline 5 , 700 STACK RISKED LOCATIONS $/BOE 25% IMPROVEMENT $5.30 $4.30 ~$4.00 >11,000 POTENTIAL LOCATIONS 2015 2016 2017e Exit Rate 16 | Investor Presentation