Devon Energy (DVN) investor relations material

Executive summary

• Completed transformative all-stock merger with Coterra in May 2026, rapidly integrating operations and creating a premier large-cap operator with enhanced Permian Basin scale and inventory.

• Identified over 350 synergy initiatives, targeting $1.0 billion in annual pre-tax run-rate synergies by year-end 2027.

• Achieved strong Q2 operational execution, with oil production averaging 503,000 bpd at the top end of guidance and total production of 1.36 million BOE/d.

• Enhanced Permian inventory through a $2.6 billion acquisition of 16,300 net undeveloped acres, adding 400 premium locations.

• Technology and AI-driven advancements are central to operational improvements and cost reductions.

Financial highlights

• Q2 2026 net earnings were $1.9 billion ($2.03 per diluted share), with $3.7 billion in operating cash flow and $1.7 billion in adjusted free cash flow.

• Total Q2 revenues reached $7.4 billion, up from $4.3 billion in Q2 2025.

• Returned over $1.1 billion to shareholders in Q2 via dividends, buybacks, and debt reduction; quarterly dividend increased 33% to $0.32/share.

• Repurchased 4.3–4.4 million shares for $197–$202 million; $7.8 billion remains on buyback authorization.

• Capital expenditures for Q2 were $1.27 billion, 2% below midpoint guidance.

Outlook and guidance

• Full-year 2026 oil production guidance tightened to 495,000–505,000 bpd; total volumes expected at 1.36–1.4 million BOE/d.

• Q3 2026 oil volumes expected at 550,000–560,000 bpd, with total volumes of 1.66–1.69 million BOE/d and capital of $1.4–$1.5 billion.

• Capital spending to decrease in Q4 as activity slows in certain business units.

• Committed to capital discipline, maximizing free cash flow, and maintaining leverage below 1.0x net debt-to-EBITDAX.

• Confident in achieving $1 billion annual synergy target by year-end 2027.