Q1 2015 Management Commentary May 5, 2015 NYSE: DVN devonenergy.com - PowerPoint PPT Presentation

Q1 2015 Management Commentary May 5, 2015 NYSE: DVN devonenergy.com

Investor Notices Use of Slides The following slide presentation is intended to be viewed in conjunction with the oral management commentary for the quarter posted on Devon’s website on May 5, 2015. The commentary and other materials furnished in connection with the quarterly earnings release include certain information and details that are not included in these slides. Forward ‐ Looking Statements Some of the information provided in this presentation includes “forward ‐ looking statements” as defined by the United States Securities and Exchange Commission (SEC). Forward ‐ looking statements are often identified by use of the words “forecasts”, “projections”, “estimates”, “plans”, “expectations”, “targets”, “opportunities”, “potential”, “outlook” and other similar terminology. Such statements concerning future performance or events are subject to a variety of risks and uncertainties that could cause actual results to differ materially from the forward ‐ looking statements contained herein. Certain risks and uncertainties are described in more detail at the end of this presentation as well as in the “Risk Factors” section of our most recent Form 10 ‐ K and under the caption “Forward ‐ Looking Statements” in the related earnings release included as an exhibit to our Form 8 ‐ K furnished May 5, 2015. 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 and exploration target size. 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 from us at Devon Energy Corporation, Attn: Investor Relations, 333 West Sheridan, Oklahoma City, OK 73102 ‐ 5015. 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

First ‐ Quarter 2015 Highlights U.S. Oil Production Growth MBOD Record oil production exceeds guidance 168 98 72% Eagle Ford and Delaware Basin deliver Growth significant oil growth Q1 2014 Q1 2015 Total production increased 22% Accretive EnLink Transactions ≈ $870 Million of Value Cash operating costs decline $215 MM (1) VEX Dropdown Secondary $655 MM Offering EnLink transactions enhance financial strength (Including exercised underwriter option) Note: Data excludes non ‐ core divestiture assets. Value 3 (1) Includes assumed construction costs related to the VEX assets.

Revised 2015 Production Outlook Key Highlights 2015 Oil Production Guidance Raising oil production outlook Using Midpoint, MBOD 270 — Expected 2015 oil growth: 25% ‐ 35% — 7.5 percentage points higher than previous range — Driven by Eagle Ford & Delaware Basin 209 Higher top ‐ line production expected ≈ 30% — 2015 top ‐ line production growth: 5% ‐ 10% Growth — Driven by higher U.S. oil expectations 2014 2015e Note: Data excludes non ‐ core divestiture assets. 4

Revised 2015 Cost Outlook 2015 E&P Capital Budget Key Highlights $3.9 ‐ $4.1 Billion Land/Tech. Barnett E&P capital reduced by ≈ 6% Rockies — $250 million decline vs. previous budget Anadarko Permian — Acceleration of service cost savings and capital Basin Basin efficiencies achieved across portfolio Heavy Oil Eagle Improved LOE expectations Ford — Full ‐ year savings of ≈ $170 million 2015 LOE Guidance Using Midpoint, $/BOE — 7% decline vs. previous guidance $10.00 $9.30 Revised outlook improves cash flow $170 MM — Capital & LOE savings: ≈ $420 million — EnLink transactions: ≈ $870 million Cash Cost Savings — Production outlook provides additional cash flow Previous Revised Note: Data excludes non ‐ core divestiture assets. Guidance Guidance 5

Q1 Operating Highlights Superior Execution Drives Outstanding Results Heavy Oil Eagle Ford delivers significant growth Bone Spring type curve raised Rockies Oil Jackfish 3 drives growth in Canada Anadarko Basin Emerging Meramec potential expands Permian Basin Barnett Shale Eagle Ford Powder River Basin type curve raised Oil Assets Liquids ‐ Rich Gas Assets 6

Financial Overview Q1 cash flow exceeds Wall St. consensus Excellent financial strength & flexibility — Strong investment ‐ grade credit ratings — Cash and credit facility availability: ≈ $4 billion — Low leverage: $7.5 billion of net debt (1) Accretive EnLink transactions — ≈ $215 million from VEX dropdown (2) — ≈ $655 million from sale of ENLK units Remaining EnLink ownership valued ≈ $6.5 billion (1) Net debt is a Non ‐ GAAP measure defined as total debt less cash and cash equivalents and debt attributable to the consolidation of EnLink Midstream. A reconciliation to the nearest GAAP measure is provided in the earnings release related to this presentation and is included as an exhibit to our Form 8 ‐ K furnished May 5, 2015. 7 (2) Includes assumed construction costs related to the VEX assets.

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