Devon Energy Reports Fourth-Quarter and Full-Year 2018 Results

Devon Energy Corp. (NYSE: DVN) today reported operational and financial results for the fourth quarter and full-year 2018. Also provided is the company’s guidance for the first quarter and full-year 2019. Supplemental financial tables for the fourth quarter, full-year 2018 and 2019 outlook are available on the company’s website at www.devonenergy.com.

Fourth-Quarter and Full-Year 2018 Highlights

• Light-oil production advances 20 percent year over year in fourth quarter
• Prolific well productivity in Delaware Basin drives high-return U.S. oil growth
• U.S. oil reserves added at attractive finding cost
• Corporate cost structure improves 21 percent in fourth quarter
• Divestiture program approaches nearly $5 billion in proceeds
• Stock-repurchase program reaches $3.4 billion

“2018 was a pivotal year for Devon as we took several significant steps toward achieving our long-term strategic goals,” said Dave Hager, president and CEO. “Operationally, we successfully transitioned our franchise U.S. oil business into full-field development, which resulted in high-return, light-oil production advancing 20 percent in the fourth quarter. In addition to this strong operating performance, we made substantial progress high-grading our asset portfolio, building per-share value through our industry-leading share-repurchase program and reducing our outstanding debt by more than 40 percent.”

Completing Transformation to High-Return U.S. Oil Growth Company

Additionally, in a separate press release issued today, Devon announced that its board of directors has authorized the company to pursue the separation of its Canadian and Barnett Shale assets to complete the transformation to a high-return U.S. oil growth business. The company will evaluate multiple methods of separating the assets, including a potential sale or spin-off. The separation will allow Devon to focus on its top-tier, high-return U.S. oil assets and is aligned with the company’s previously announced long-term strategic plan.

“With our world-class U.S. oil resource plays rapidly building momentum and achieving operating scale, the final step in our multi-year transformation is an aggressive, transformational move that will accelerate value creation for our shareholders by further simplifying our resource-rich asset portfolio,” said Hager. “New Devon will emerge with a highly focused U.S. oil portfolio and has the ability to substantially increase returns and profitability as we aggressively align our cost structure to expand margins with this top-tier oil business. The New Devon will be able to grow oil volumes at a mid-teens rate while generating free cash flow at pricing above $46 per barrel.”