Strategic Repositioning

Update
March 11, 2010

Investor Notices

Safe Harbor
Information provided in this presentation includes “forward-looking statements” as defined by
the Securities and Exchange Commission. Forward-looking statements are identified as
“forecasts, projections, estimates, plans, expectations, targets, etc.” and are subject to a
variety of risk factors. For representative risk factors that could cause Devon’s actual results to
differ materially from the forward-looking statements contained herein, see Form 8-K filed
November 16, 2009.

Cautionary Note to Investors

The United States Securities and Exchange Commission permits oil and gas companies, in their
filings with the SEC, to disclose only proved, probable and possible reserves that meet the SEC's
definitions for such terms, and price and cost sensitivities for such reserves, and prohibits
disclosure of resources that do not constitute such reserves. This presentation may contain
certain terms, such as resource potential and exploration target size. These estimates are by
their nature more speculative than estimates of proved, probable and possible reserves and
accordingly are subject to substantially greater risk of being actually realized. The SEC
guidelines strictly prohibit us from including these estimates in filings with the SEC. Investors
are urged to consider closely the disclosure in our Form 10-K for the fiscal year ended December
31, 2009, available from us at Devon Energy Corporation, Attn. Investor Relations, 20 North
Broadway, Oklahoma City, OK 73102. You can also obtain this form from the SEC by calling 1-
800-SEC-0330 or from the SEC’s website at www.sec.gov.

NYSE: DVN www.devonenergy.com Slide 2

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 Outline

I. The Repositioning of Devon

John Richels, President

II. Progress Report

John Richels, President

III. Kirby Joint Venture

Dave Hager, Executive Vice President, Exploration & Production

IV. Devon Repositioned

John Richels, President

NYSE: DVN www.devonenergy.com Slide 3

Repositioning Announcement

November 16, 2009

Devon announces plan to strategically reposition

company as high-growth, onshore North American
exploration and production company.

NYSE: DVN www.devonenergy.com Slide 4

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 Repositioning Summary

Sale of all Gulf and International assets

Accelerate development of top-tier onshore assets

Deliver organic growth throughout commodity price cycles

Strengthen balance sheet further

Maintain top quartile cost structure

NYSE: DVN www.devonenergy.com Slide 5

Strategic Rationale

Extensive resource capture since 2000

Accelerate value realization through monetization

and redeployment

Compete where we are most competitive

Focus on areas with highest returns and lowest risk

Highly accretive in 2011 and beyond

NYSE: DVN www.devonenergy.com Slide 6

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 Reserves & Production Impact

Devon Today Devon Repositioned

Liquids Liquids
41%
Reserves 43%
Gas Gas
57% 59%

Liquids
Liquids
32%
37%
Production
Gas
Gas
63%
68%

Based on 12/31/09 proved reserves and Q4 2009 production

NYSE: DVN www.devonenergy.com Slide 7

Outline

I. The Repositioning of Devon

John Richels, President

II. Progress Report

John Richels, President

III. Kirby Joint Venture

Dave Hager, Executive Vice President, Exploration & Production

IV. Devon Repositioned

John Richels, President

NYSE: DVN www.devonenergy.com Slide 8

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 Maersk Transaction
Announced: 12/22/09

Agreed to sell three Lower Tertiary discoveries

– Cascade, Jack and St. Malo

– $1.3 billion before-tax; $1.1 billion after-tax

– Reduces 2010 capital requirements by $400 million

Transactions now closed

Note: Preferential rights were exercised by partners on Cascade and St. Malo.

NYSE: DVN www.devonenergy.com Slide 9

BP Agreement
Announced: 3/11/10

BP agrees to purchase:
– All deepwater Gulf of Mexico assets
– Entire Brazilian business
– Devon’s interest in ACG field in Azerbaijan

Purchase price: $7.0 billion

BP assumes drilling rig contracts

Devon purchases 50% of BP’s interest in Kirby oil

sands acreage
– Purchase price: $500 million
– Devon pays $150 million carry
NYSE: DVN www.devonenergy.com Slide 10

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 Deepwater Rig Specifications

West Sirius (Gulf of Mexico)

New-build 5th generation semi-submersible owned by Seadrill
Contracted through July 2014; $500,000 per day
Rated to 37,500’ drilling depth; 10,000’ water depth

Deepwater Discovery (Brazil)

5th generation drillship owned by Transocean
Contracted through July 2013; $470,000 per day
Rated to 30,000’ drilling depth; 10,000’ water depth

NYSE: DVN www.devonenergy.com Slide 11

Remaining Divestiture Assets

Proved 2009 Production

Reserves
12/31/09 Liquids Gas
MBOED
(MMBOE) (MBOD) (MMCFD)

Gulf Shelf 39 9 62 20
China(1) 16 12 - 12
Other International(1) 22 4 4 5
Total 77 25 66 37

(1) Production excluded from 2009 results from continuing operations and reserves excluded from year-end 2009 reserve disclosures.

NYSE: DVN www.devonenergy.com Slide 12

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 Expected Proceeds
$ Billions

Pre-Tax Proceeds After-Tax Proceeds

Announcements to date $8.3 $6.5 - $6.9

Remaining assets $1.3 - $2.0 $1.0 - $1.4

Total Estimated Proceeds $9.6 - $10.3 $7.5 - $8.3

Plus transfer of deepwater drilling rig obligations

NYSE: DVN www.devonenergy.com Slide 13

Allocation of Proceeds

Optimize per share returns on a debt-adjusted

basis through:

― E&P capital projects

― Debt reduction

― Share repurchases

NYSE: DVN www.devonenergy.com Slide 14

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 Accretion

Highly accretive in 2011 and beyond to:

– Earnings

– Cash flow

– Production

– Reserves

NYSE: DVN www.devonenergy.com Slide 15

Outline

I. The Repositioning of Devon

John Richels, President

II. Progress Report

John Richels, President

III. Kirby Joint Venture

Dave Hager, Executive Vice President, Exploration & Production

IV. Devon Repositioned

John Richels, President

NYSE: DVN www.devonenergy.com Slide 16

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 Kirby Joint Venture

Devon purchases 50% of BP’s interest in Kirby oil

sands leases

Devon to serve as operator

Multi-stage SAGD development opportunity

Gross risked resource potential: 1.0 - 1.5 billion barrels

NYSE: DVN www.devonenergy.com Slide 17

Kirby Acreage Overview

BRITISH ALBERTA
COLUMBIA
T76
Jackfish Ft. McMurray
Jackfish 2
Jackfish & Kirby

Edmonton

T75
Jackfish 3 Calgary

T74

Jackfish Acreage
Access Pipeline
Kirby Acreage
T73

Access Pipeline

R8 R7 R6 R5 R4

NYSE: DVN www.devonenergy.com Slide 18

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 Jackfish SAGD Projects

Field characteristics:
Net risked resource: 800 MMBO • Low F&D
Risked locations: 420 • Flat production profile
• Long reserve life > 20 years
• Working interest: 100%
Jackfish 2 Jackfish Each project:
• 300 MMBO EUR (≈260 MMBO net)
• 35 MBOD of production (≈30 MBOD net)
Jackfish:
Jackfish 3 • Maintain at full capacity in 2010
Ft. McMurray Jackfish 2:
Jackfish
B.C. ALBERTA
• Continue facilities construction
SASK.
• Operational by late 2011
Jackfish 3:
• File regulatory application in 2010

NYSE: DVN www.devonenergy.com Slide 19

Jackfish Performance
SAGD Production Per Well
90 Day Moving Average

2,200
Foster Creek MacKay River Firebag Christina Lake
2,000
Jackfish Long Lake Hangingstone Great Divide
1,800 Surmont Tucker Lake Hilda Lake Tangleflags
Jackfish
1,600
Bpd Per Well

1,400

1,200

1,000

800

600

400

200

0
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36
Months After Well Start Up
Source: FirstEnergy Capital Corp.

NYSE: DVN www.devonenergy.com Slide 20

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 Jackfish Performance
Steam Oil Ratio (SOR)

SAGD Project
SAGD Comparison
Project (Cumulative
Comparison SOR)
(Cumulative SOR)
10
10

Jackfish
Jackfish
9
9
Long Lake
Long Lake
MacKay River
8
8 MacKay River
Firebag
Foster Creek
Firebag
Christina Lake
7
7 Foster Creek
Christina Lake
SOR
Cumulative SOR

6
6
Cumulative

5
5 Jackfish
4
4 P90

3
3

2
2 P10

1
1

0
0
1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 43 45 47 49 51 53 55 57 59 61 63 65 67 69 71 73 75 77
11
13
15
17
19
21
23
25
27
29
31
33
35
37
39
41
43
45
47
49
51
53
55
57
59
61
63
65
67
69
71
73
75
77
1
3
5
7
9

Time
Time Since
since Startup
Startup (Months)
(months)
Source: IHS database

NYSE: DVN www.devonenergy.com Slide 21

Kirby Similarities to Jackfish

Existing well control data and seismic

Thick and continuous reservoir

Good oil saturation and porosity levels

Minimal depositional shale

Good cap rock

Minimal water issues

Similar reservoir characteristics to Jackfish

NYSE: DVN www.devonenergy.com Slide 22

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 Kirby Summary

Top-tier resource

Comparable to industry-leading Jackfish project

Opportunity to leverage SAGD expertise

Natural hedge to North American gas

NYSE: DVN www.devonenergy.com Slide 23

Outline

I. The Repositioning of Devon

John Richels, President

II. Progress Report

John Richels, President

III. Kirby Joint Venture

Dave Hager, Executive Vice President, Exploration & Production

IV. Devon Repositioned

John Richels, President

NYSE: DVN www.devonenergy.com Slide 24

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 Product Mix & Capital Outlook
North American Onshore

12/31/09 Proved Reserves 2010e E&P Capital

Other
Canada
13%

Liquids Shale
Natural Other
41% Gas U.S. Plays
59% 25% 40%

Oil Sands
22%

$4.4 – 4.8 Billion(1)

(1) 2010 capital forecast increased by $500 million to reflect Kirby oil sands purchase.

NYSE: DVN www.devonenergy.com Slide 25

Hedging Philosophy

Protect prices on approximately 50 percent of forecasted oil and gas

production for all periods

― 55% of estimated 2010 gas production hedged

• 1.4 Bcf/d with an average floor of $6.12
• 220 MMcf/d of regional basis hedges in Rockies and Canada

― 71% of estimated 2010 oil production hedged

• 79,000 Bbl/d collared with an average floor of $67.47 and an
average ceiling of $96.48

Note: The pricing points referenced above are weighted average prices. Percentages of production are based on production
from retained assets only.

NYSE: DVN www.devonenergy.com Slide 26

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 Potential Growth Rates
Total Production
North American Onshore

R
CAG
2%
:1
C a se
e
ric
hP
Hig C AG R
s e : 6%
rice Ca
Strip P

2010e 2011e 2012e 2013e 2014e

Benchmark Prices (WTI and Henry Hub)

High Case: $85; $6.50 $90; $7.00 $90; $7.50 $90; $7.50 $90; $7.50
Strip Case: $83; $5.00 $86; $5.50 $87; $6.00 $88; $6.25 $89; $6.50

Note: Assumes current industry cost environment, reinvestment of all cash flow from operations and redeployment of $0.8 billion of sales
proceeds in the high price case and $1.5 billion in the strip case. Strip case represents forward strip prices as of 3/8/10.

NYSE: DVN www.devonenergy.com Slide 27

Historical Performance
North American Onshore

Production Growth
(MMBOE) LOE per BOE
220 ($/BOE)
207
$8.78
$7.28 $8.01
183 $6.87
R
CAG
168 9%

2006 2007 2008 2009 2006 2007 2008 2009

Drill-bit Reserve Replacement(1)

(% of Production Replaced) Drill-Bit F&D(1)
($/BOE)
269%
233% 223% $13.57 $13.30 $13.05
198%

$6.59

2006 2007 2008 2009 2006 2007 2008 2009

(1) Excludes price revisions

NYSE: DVN www.devonenergy.com Slide 28

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 2010 F&D Targets
North American Onshore
$ Billions

2010e 2010e
Without Kirby With Kirby
E&P capital budget: $3.9 - $4.3 $4.4 - $4.8(1)

Capitalized G&A and interest: $0.3 $0.3

Drill-bit capital: $4.2 - $4.6 $4.7 - $5.1

Drill-bit reserve additions: 320 – 340 MMBOE 320 – 340 MMBOE

Drill-bit F&D: ≈ $12 – $14/BOE ≈ $14 – $16/BOE

Note: Includes non-GAAP measures, see appendix for required disclosures.

(1) 2010 capital forecast increased by $500 million to reflect Kirby oil sands purchase.

NYSE: DVN www.devonenergy.com Slide 29

Resource Potential
North America Onshore

Total Unrisked Total Risked Total Risked

Resources Resources Undrilled
(MMBOE) (MMBOE) Locations

Barnett Shale 6,170 3,000 7,500

Haynesville Shale 4,570 1,230 1,600
Cana Woodford Shale 2,000 1,170 3,500
Arkoma Woodford Shale 430 270 2,150
Horn River 2,420 1,630 1,600
Jackfish 990 800 420
Kirby 800 550 580
Other U.S. Onshore 4,730 2,890 7,140
Other Canada 3,090 2,020 8,130
Total 25,200 13,560(1) 32,620

(1) Includes 12/31/09 proved reserves of 2.6 BBOE.

NYSE: DVN www.devonenergy.com Slide 30

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 Summary

Repositioning approaching completion

Increased presence in prime SAGD area

Superior balance sheet strength

Deep North American onshore resource inventory

Self-funded organic growth

Highly accretive to debt-adjusted metrics

NYSE: DVN www.devonenergy.com Slide 31

Thank You.

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