Devon Energy : Q4 Earnings Presentation

Q4 2021 Earnings Presentation

February 15, 2022

NYSE: DVN

devonenergy.com

Key Takeaways From Our Presentation

#1	FIXED + VARIABLE DIVIDEND INCREASES
Total dividend of $1.00 per share announced with Q4 results
#2	RAISING FIXED DIVIDEND BY 45% IN 2022
Board approved a $0.05 per share increase effective in March
#3	BUYBACK PROGRAM EXPANDED TO $1.6 BILLION
$589 million of shares repurchased in the fourth quarter
#4	FREE CASH FLOW CONTINUES TO ACCELERATE
>4x increase in free cash flow since merger closed in Q1 2021
#5	DELAWARE BASIN DRIVES Q4 OPERATING PERFORMANCE
High-margin production growth increased 34% since beginning of year

| Q4 2021 Earnings Presentation

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Our Cash-Return Business Model

"Our CASH-RETURNbusiness model is designed to moderate growth, emphasize capital efficiencies, maximize returns and prioritize the return of increasing amounts of cash to shareholders. These principles have positioned Devon to be a PROMINENT and CONSISTENT builder of economic value through the cycle."

• Rick Muncrief, President & CEO

COMMITMENT

RUNS DEEP

DISCIPLINED	 MODERATING OIL GROWTH targets: up to 5% annually
GROWTH STRATEGY	 Growing margins through operational scale & cost efficiencies
REDUCED	 Returns-driven strategy prioritizes FREE CASH FLOW generation
REINVESTMENT RATES	 Pursuing a maintenance capital program in 2022
MAINTAIN	 Targeted net debt-to-EBITDAX ratio: <0.5x by year-end 2022
LOW LEVERAGE	 Strong liquidity & low breakeven levels enhance FINANCIAL STRENGTH
FREE CASH FLOW	 FIXED-PLUS-VARIABLE dividend is top funding priority
PRIORITIES	 Excess funds deployed to SHARE REPURCHASES & DEBT REDUCTION
PURSUE	 ESG initiatives incorporated into COMPENSATION structure
ESG EXCELLENCE	 Committed to aggressive emissions reduction

| Q4 2021 Earnings Presentation

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Q4 2021 - Executing on Our Disciplined Plan

Outstanding Q4 execution	Expanding free cash flow
Key quarterly highlights	Free cash flow ($ in millions)

Increasing dividend payout

Fixed-plus-variable payout ($/share)

PRODUCTION	3%
VOLUMES (MBOED)	ABOVE GUIDANCE
REINVESTMENT	32%
PERCENTAGE	% OF CASH FLOW
FIELD-LEVEL	14%
MARGINS ($/BOE)	VERSUS Q3 2021

>4x	$1,104
IMPROVEMENT
$260
Q1 2021	Q4 2021
MERGER CLOSE (1)

$1.00 $0.84

			$0.49		2.5x
$0.34					>
				IMPROVEMENT
						VS. Q1 2021
Q1 2021	Q2 2021	Q3 2021	Q4 2021

Note: Free cash flow is defined as operating cash flow less cash capital expenditures. Q1 2021 free cash flow excludes transaction and restructuring costs. See related non-GAAP disclosures.

(1) Merger closed January 7, 2021.

FOR Q4 DIVIDEND

CALCULATION DETAILS

(SEE PAGE 21)

| Q4 2021 Earnings Presentation

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2021 - A Year of Outstanding Achievement

Completed TRANSFORMATIONAL merger	DELIVERING ON OUR COMMITMENT
TO SHAREHOLDERS
Generated RECORD-SETTING free cash flow	$1.3B Dividend		$589MM
	Payments
	(Payout +190% YoY)	$2.9	Share Buyback
Delivered MARKET-LEADING cash returns		(~2% of shares)
		BILLION

	FREE CASH FLOW
Strengthened INVESTMENT-GRADE balance sheet	IN 2021

RESULTED IN #1 PERFORMING EQUITY IN S&P 500	Improvement
					Balance Sheet
					Net debt-to-EBITDAX: 0.8x
					(as of 12/31/21)
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