1 Lehman Brothers CEO Energy Conference New York September 3, 2008 NYSE: DVN www.devonenergy.com page 2 Investor Notices Safe Harbor Information provided in this presentation includes “forward-looking statements” as defined by the Securities and Exchange Commission. Forward-looking statements are identified as “forecasts, projections, estimates, plans, expectations, targets, etc.” and are subject to a variety of risk factors. For representative risk factors that could cause Devon’s actual results to differ materially from the forward-looking statements contained herein, see Form 8-K filed August 6, 2008. Cautionary Note to U.S. Investors The United States Securities and Exchange Commission permits oil and gas companies, in their filings with the SEC, to disclose only proved reserves that a company has demonstrated by actual production or conclusive formation tests to be economically and legally producible under existing economic and operating conditions. In this presentation we may use certain terms, such as resource potential, reserve potential, probable resources, possible resources, contingent resources, prospective resources and exploration target size. The SEC guidelines strictly prohibit us from including these terms in filings with the SEC. U.S. Investors are urged to consider closely the disclosure in our Form 8-K, File No. 001-32318, available from us at Devon Energy Corporation, Attn. Investor Relations, 20 North Broadway, Oklahoma City, OK 73102. You can also obtain this form from the SEC by calling 1-800-SEC-0330.
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
1
Lehman Brothers CEO Energy Conference
New YorkSeptember 3, 2008
NYSE: DVN www.devonenergy.com page 2
Investor Notices
Safe HarborInformation provided in this presentation includes “forward-looking statements” as defined bythe Securities and Exchange Commission. Forward-looking statements are identified as“forecasts, projections, estimates, plans, expectations, targets, etc.” and are subject to avariety of risk factors. For representative risk factors that could cause Devon’s actual results todiffer materially from the forward-looking statements contained herein, see Form 8-K filedAugust 6, 2008.
Cautionary Note to U.S. InvestorsThe United States Securities and Exchange Commission permits oil and gas companies, in theirfilings with the SEC, to disclose only proved reserves that a company has demonstrated byactual production or conclusive formation tests to be economically and legally producible underexisting economic and operating conditions. In this presentation we may use certain terms,such as resource potential, reserve potential, probable resources, possible resources,contingent resources, prospective resources and exploration target size. The SEC guidelinesstrictly prohibit us from including these terms in filings with the SEC. U.S. Investors are urged toconsider closely the disclosure in our Form 8-K, File No. 001-32318, available from us at DevonEnergy Corporation, Attn. Investor Relations, 20 North Broadway, Oklahoma City, OK 73102. Youcan also obtain this form from the SEC by calling 1-800-SEC-0330.
2
NYSE: DVN www.devonenergy.com page 3
Devon Today
Proved reserves (12/31/07): ≈ 2.5 Billion BOE
Current production (Q2 2008): ≈ 643 MBOED
Oil & gas production (Q2 2008): 66% gas
34% oil & NGLs
Production profile (Q2 2008): 94% North America
Reserves / production ratio: ≈ 11 years
Enterprise value: ≈ $49 Billion
Largest U.S.-based independent oil and gas producer
NYSE: DVN www.devonenergy.com page 4Organizational focus on per share results
Capital Allocation Criteria
Optimize per share growth on a debt-adjusted basis through:
• E&P capital projects
• Share repurchases
• Debt reduction
• High-grading asset portfolio
3
NYSE: DVN www.devonenergy.com page 5
Property Divestitures2002-2007
$0.3Midstream
$3.9Total
$0.4 International
$1.4 Canada
$0.5 U.S. Offshore
$1.3 U.S. Onshore
Proceeds(In Billions)
Area
NYSE: DVN www.devonenergy.com page 6
African Divestitures
84$3,019Total
55$2,226ClosedEquatorial Guinea
8$375ClosedEgypt
2nd Half ‘08
2nd Half ‘08
Closed
Expected Closing
17
-
4
Reserves (MMBBL)
$205Cote d’Ivoire
$8 Angola & Ghana
$205Gabon
Proceeds(In Millions)
4
NYSE: DVN www.devonenergy.com page 7
10%
20%
30%
40%
50%
60%
70%
2002 2003 2004 2005 2006 2007 2008
Debt to Adjusted Capitalization
Notes: Excludes exchangeable debentures and 14.2 million shares of Chevron common stock owned by Devon. This is a non-GAAPmeasure, see appendix for required disclosures.
Through June 30, 2008
NYSE: DVN www.devonenergy.com page 8
Common Stock Repurchases
$102.561%6,4842008*
$55.4314%66,594Total
$79.801%4,0862007
$59.611%4,2412006
$48.2810%46,7832005
$37.781%5,0002004
Average Price Per
Share
Percent of Outstanding
Shares
Number of Shares
(In Thousands)
*Through August 2008.
5
NYSE: DVN www.devonenergy.com page 9
Potential Growth RatesProduction Per Debt-Adjusted Share
2007 2008 2009 2010 2011
Lower Case: 6% CAGR
Upper Case: 13% CAGR
Note: Production per debt-adjusted share converts annual average net debt into common shares outstanding based onannual average stock price.
• Mobilize Deepwater Discovery drill ship to Brazil late 2008 / early2009
BM-C-3450% WI
2008 Planned Exploration Activity
BM-C-3535% WI
B R A Z I L
BarreirinhasBasin
CamamuBasin
Campos Basin
Brazil Exploration
18
NYSE: DVN www.devonenergy.com page 35
Texas
Louisiana
Deepwater Gulf of Mexico Exploration Trends
Lower Tertiary Trend196 Blocks
Miocene Trend160 Blocks
Block Ownership:• 2nd largest in trend• 1st among independents
Block Ownership:• 9th largest in trend• 3rd among independents
Lower Tertiary trend data for Alaminos Canyon, Keathley Canyon and Walker RidgeMiocene trend data for East Breaks, Garden Banks, Green Canyon, Atwater Valley, Mississippi Canyon
NYSE: DVN www.devonenergy.com page 36
Estimated Discovered Resource Net to Devon: 300 – 900 MMBOE
2≈ 800’26.7%2006Kaskida
2> 350’25.0%2004Jack
3> 450’22.5%2003St. Malo
2> 450’50.0%2002Cascade
Wells Drilled
Net Feet of Hydrocarbon Sands
Working Interest
Year DiscoveredProject
Devon’s Lower Tertiary Summary of Discoveries
19
NYSE: DVN www.devonenergy.com page 37
TertiaryLower Trend
Trend
Devon’s Lower Tertiary Prospect Inventory
• 4 significant discoveries to date
• 25 additional prospects
Devon Discovery
Devon Prospect
Cascade
Jack
Kaskida
St. Malo
Merope
Cherry Bomb
Capella
Sardinia West
Propus
Bottle Rocket
Gorgona
Navi
Knik
M80
Jericho
Vinita
Cypress West
Bass
Azha
Dart
Latigo
TertiaryLower Trend Ponza Deep
FistKampilan
Bolt
FuryWombat
Damascus
Cordoba
NYSE: DVN www.devonenergy.com page 38
Texas
Louisiana
Devon’s Miocene Prospect Inventory
Devon Miocene Prospect
Devon Miocene Discovery
Mission Deep
Sturgis
Impala
Colorado
Erie
Tuscany W
Sabre
Winter Park
Arbalest
Shelby Petard
ChapsKoala West
Sturgis North
Portage
Koala East
Comet
20
NYSE: DVN www.devonenergy.com page 39
3 – 5
300 - 500+
50%
25
Lower Tertiary
1 – 2
100 - 250
55%
15
Miocene Total
40Undrilled prospects identified:
50%Average working interest:
4 - 7 Devon’s net unrisked potential (BBOE):
100 - 500+ Gross potential per prospect (MMBOE):
Gulf of Mexico Deepwater
NYSE: DVN www.devonenergy.com page 40
Texas
Louisiana
Upcoming Deepwater Gulf Exploration Activity
Jack No. 3 AppraisalQ3 2007 Spud
Currently Drilling
Sturgis NorthQ1 2008 Spud
Currently Drilling
Cascade No. 3 Q4 2008 Spud
Deepwater Miocene
Deepwater Lower Tertiary
St. Malo No. 4 AppraisalQ4 2007 Spud
Currently Drilling
Kaskida Appraisal2nd Half 2008 Spud
BassQ3 2008 Spud
Currently Drilling
Mission Deep AppraisalQ3 2008 Spud
Currently Drilling
DamascusQ3 2008 Spud
Koala WestQ4 2008 Spud
21
NYSE: DVN www.devonenergy.com page 41
Resource Potential InventoryStrong Foundation for Growth