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Devon Energy Corp | Q2 2015 Operations Report | Dave Hager | Page 3 of 11 | November 23, 2024

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SULTS OVERVIEW & OUTLOOK Q2 2015 OPERATIONS PORT 3 TOTAL COMPANY Q2 STATS Q2 2015 Q2 2014 * Production: Oil (MBOD) 270 205 NGL (MBLD) 134 130 Gas (MMCFD) 1,627 1,712 MBOED 674 620 E&P Capital (in millions): $882 Operated Rigs (at 6/30/15):2 3 *Excludesnon-core divested assets. Oil Production Exceeds Expectations for 4th Consecutive Quarter Oil production averaged 270,000 barrels per day in the second quarter of 2015. This represents a 32% increase compared to the second quarter of 2014 (chart below), surpassing the midpoint of guidance by 5,000 barrels per day. The company has now exceeded expectations for 4 consecutive quarters. The most significant growth came from the company’s U.S. operations, where oil production averaged a record high 172,000 barrels per day. This result was 35% higher than the year-ago quarter and exceeded the top end of guidance by 2,000 barrels per day. Devon also achieved strong growth from its heavy oil operations in Canada. Driven by the ramp-up of its Jackfish 3 facility, Canadian net oil production increased 27% compared to the year-ago quarter, to 98,000 barrels per day. Overall, net production averaged 674,000 Boe per day, 9% higher than the second quarter of 2014. With strong growth in oil production, more than 70% of upstream revenue is derived from oil, which is the company’s highest margin product. Notably, ethane and propane (C2 & C3) account for only 3% of revenue (chart above). Q2 2014 Q2 2015 Q2 Oil Production (1) (MBOD) 205 270 32% Growth U.S. Canada 75% 3% 3% 19% Q2 Upstream Revenue (2) Oil C2 & C3 Gas (1) Excludes non-core divested assets. C4 & C5 Cost Reduction Initiatives Drive Strong Q2 Results Devon has several cost reduction initiatives underway that positively impacted Q2 results. Field-level operating costs, which include LOE and production taxes, declined 8% to $11.05 per Boe compared to Q2 2014. Devon also reduced G&A costs during the quarter. G&A totaled $3.45 per Boe, a 16% decline quarter over quarter. This strong cost result was 15 cents below the low end of company guidance. Based on year-to-date cost savings, Devon now expects field-level operating costs and G&A to decline to around $14.50 per Boe for the full-year 2015. Compared to the company’s original mid-point guidance in February, this implies a full-year cost savings of around $400 million(chart below). Original Guidance Revised Guidance 2015e Field-Level Operating Costs and G&A (Using Midpoints, $/BOE) ˜$400MM Cost Savings $16.10 ˜$14.50 G&A Prod. Taxes LOE (2) Includes hedging cash settlements.