Devon Energy : Business Optimization Plan

Published: 2025-04-22 07:30:53 ET DVN

DEVON ENERGY BUSINESS OPTIMIZATION

April 22, 2025

NYSE: DVN DEVONENERGY.COM

BUSINESS OPTIMIZATION PLAN

TARGETING OPPORTUNITIES TO IMPROVE MARGINS AND CAPITAL EFFICIENCY

CAPITAL

EFFICIENCY

PRODUCTION OPTIMIZATION

COMMERCIAL OPPORTUNITIES

CORPORATE COST REDUCTIONS

Capture efficiencies through design optimization, cycle time reductions, facility standardization & vendor management

Use advanced analytics to minimize maintenance events, reduce downtime, flatten production declines & optimize operating cost structure

Leverage scale to enhance commercial contracts to increase realizations, improve recoveries and lower GP&T cost structure

Reduce interest expense and streamline corporate cost structure

BUSINESS OPTIMIZATION • 2

PATHWAY AND TIMING TO DELIVER

IMPROVEMENTS BY CATEGORY

($MM)

Production Optimization

$250 MM

$150 MM

BILLION

Corporate Cost

$1.0

Reductions

ANNUAL PRE-TAX

FREE CASH FLOW

IMPROVEMENTS

Commercial

Opportunities

$300 MM

Note: Assumes $65 WTI and $4 Henry Hub.

TIMING TO DELIVER RUN-RATE IMPROVEMENTS

($MM)

$1,000

Capital Efficiency

$750

$300 MM

$500

$250

$-

YE 2025

2026 Avg.

YE 2026

BUSINESS OPTIMIZATION • 3

INVESTOR CONTACTS & NOTICES

INVESTOR RELATIONS CONTACTS

Rosy Zuklic

Chris Carr

VP, Investor Relations

Sr. Manager, Investor Relations

405-552-7802

405-228-2496

Email: [email protected]

plan could differ materially from actual results; market and geopolitical uncertainty as a result of changes in trade relations and policies, such as the imposition of tariffs by the U.S., China or other countries; and any of the other risks and uncertainties discussed in Devon's 2024 Annual Report on Form 10-K (the "2024 Form 10-K") or other filings with the Securities and Exchange Commission (the "SEC").

The forward-looking statements included in this communication speak only as of the date of this communication, represent management's current reasonable expectations as of the date of this communication and are subject to the risks and uncertainties identified above as well as those described elsewhere in the 2024 Form 10-K and in other documents we file from time to time with the SEC. We cannot guarantee the accuracy of our forward-looking statements, and readers are urged to carefully review and consider the various disclosures made in the 2024 Form 10-K and in other documents we file from time to time with the SEC. All subsequent written and oral forward-looking statements attributable to Devon, or persons acting on its behalf, are expressly qualified in their entirety by the cautionary statements above. We do not undertake, and expressly disclaim, any duty to update or revise our forward-looking statements based on new information, future events or otherwise.

Investor Notices

Forward-Looking Statements

This communication includes "forward-looking statements" within the meaning of the federal securities laws. Such statements include those concerning strategic plans, our expectations and objectives for future operations, as well as other future events or conditions, and are often identified by use of the words and phrases "expects," "believes," "will,"

"would," "could," "continue," "may," "aims," "likely to be," "intends," "forecasts," "projections," "estimates," "plans," "expectations," "targets," "opportunities," "potential," "anticipates," "outlook" and other similar terminology. All statements, other than statements of historical facts, included in this communication that address activities, events or developments that Devon expects, believes or anticipates will or may occur in the future are forward-looking statements. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond our control. Consequently, actual future results could differ materially and adversely from our expectations due to a number of factors, including, but not limited to: the risk that we are unable to successfully implement the improvements discussed in this presentation on the anticipated timeline or at all, which could delay or prevent us from realizing any benefits from the business optimization plan; commodity prices, cost structures and the other assumptions underlying our forecasted value uplift from the business optimization

BUSINESS OPTIMIZATION • 4

Disclaimer

Devon Energy Corporation published this content on April 22, 2025, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on April 22, 2025 at 11:29 UTC.