Q3 Earnings Presentation

Q3 2021 Earnings Presentation

November 2, 2021

NYSE: DVN

devonenergy.com

Key Takeaways From Our Presentation

#1	FIXED + VARIABLE DIVIDEND INCREASES 71%	LEADING THE INDUSTRY WITH
Total dividend of $0.84 per share announced with Q3 results
	DISCIPLINE & CASH RETURNS
#2	FREE CASH FLOW GENERATION ACCELERATES
~8x improvement in free cash flow to $1.1 billion (vs. Q4 2020)
#3	$1 BILLION SHARE BUYBACK PROGRAM INITIATED
Authorization represents ~4% of current market capitalization
#4	DELAWARE BASIN DRIVES Q3 OUTPERFORMANCE
Operating results favorable to guidance on production & costs
#5	2022 OUTLOOK CONTINUES TO STRENGTHEN
Positioned for cash flow growth of >40% year over year

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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 & corporate cost reductions
REDUCED	 Returns-driven strategy prioritizes FREE CASH FLOW generation
REINVESTMENT RATES	 Pursuing a maintenance capital program in 2021 & 2022
MAINTAIN	 Target net debt-to-EBITDAX ratio: 1.0x or less
LOW LEVERAGE	 Strong liquidity & disciplined hedging enhance FINANCIAL STRENGTH
FREE CASH FLOW	 FIXED-PLUS-VARIABLE dividend is top funding priority (pg. 19)
PRIORITIES	 Excess funds deployed to SHARE REPURCHASES & DEBT REDUCTION
PURSUE	 Established new environmental performance targets (pg. 21)
ESG EXCELLENCE	 ESG initiatives incorporated into COMPENSATION structure

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Strategy Underpinned by High-Quality Portfolio

Portfolio provides diversified commodity exposure

Production by product in Q3 2021

GAS	OIL
VOLUMES	VOLUMES
26%	50%

	COMMODITY
	EXPOSURE
	% OF TOTAL
NGL	PRODUCTION
VOLUMES
24%

POWDER RIVER BASIN

20 MBOED

OUR SUSTAINABLE PLATFORM

MULTI-DECADE RESOURCE OPPORTUNITY

(SEE PAGE 17 FOR DETAILS)

DELAWARE BASIN

409 MBOED

WILLISTON BASIN

58 MBOED

ANADARKO BASIN

75 MBOED

• BALANCED exposure to oil and liquids-rich production
• Delaware Basin represents ~70% of total volumes
• Inventory depth ensures SUSTAINABLE PERFORMANCE

EAGLE FORD

42 MBOED

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Q3 2021 - Executing on Our Disciplined Plan

Outstanding Q3 execution

Key quarterly highlights

PRODUCTION	5%
VOLUMES (MBOED)	ABOVE GUIDANCE
REINVESTMENT	30%
PERCENTAGE	% OF CASH FLOW
FIELD-LEVEL	5%
COSTS ($/BOE)	BELOW GUIDANCE

Expanding free cash flow		Increasing dividend payout
Free cash flow ($ in millions)			Fixed-plus-variable payout ($/share)
~8X			$1,124	71%	$0.84
IMPROVEMENT			IMPROVEMENT
VS. Q4 2020	$589
				$0.49
$141	$260
Q4 2020	Q1 2021	Q2 2021	Q3 2021	Q2 2021	Q3 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 non-GAAP reconciliation table.

FOR Q3 DIVIDEND

CALCULATION DETAILS

(SEE PAGE 19)

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