Devon Energy Corp at Barclays CEO Energy & Power Conference Summary

The following is excerpted from the question-and-answer section of the transcript.

Question: Betty Jiang - Barclays Services Corp - Analyst : <_ALACRA_META_ABSTRACT>Yes. No, the -- so digging a bit deeper on the $1 billion cost optimization. When you guys first came out with a target, it was -- it was surprising.

Question: Betty Jiang - Barclays Services Corp - Analyst : It's a big number on a maturing portfolio that -- how did you guys evaluate that opportunity? How are you able to execute it so fast? Like was there something changed organizationally and execution-wise that enable you to deliver that?

Question: Betty Jiang - Barclays Services Corp - Analyst : Well, I think we're just less than a year into this. So is the team going like, okay, everything we thought we saw before, now we're adding there's more and --

Question: Betty Jiang - Barclays Services Corp - Analyst : Great. I was going to ask this later, but since you brought up technology and AI integration is all the rage this year, how much of what you see -- like the leading -- the things are moving so fast and improving so quickly that are you -- how much of that are you getting -- are you implementing internally? And how transformative of doing the leading edge integrating into the organization?

Question: Betty Jiang - Barclays Services Corp - Analyst : Okay. So what I heard so far is a lot more room for efficiency gains, lower cost, better productivity and all that. But the one area of AI application that they were wondering about is the whole resource recovery. Whether that -- because that's a big question mark on the industry is the resource duration and inventory depth. Do you find using AI, looking at the data that you have in-house is able to unlock new resources that's now economical with the lower cost that you're able to develop that asset?

Question: Betty Jiang - Barclays Services Corp - Analyst : Got it. And that's what's driving the production -- REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 03, 2025 / 1:45PM, DVN.N - Devon Energy Corp at Barclays CEO Energy & Power Conference

Question: Betty Jiang - Barclays Services Corp - Analyst : Great. And now what you were saying about the production optimism -- that ties back to the cost optimization program, production optimization is a piece of it. I forgot whether that's a $300 million or $400 million number. That's the -- but that's -- everything that you were saying about optimizing the decline and then the cycle time is what speed -- or optimizing the lift using AI, and that's what's enabling the production optimization. Is that --

Question: Betty Jiang - Barclays Services Corp - Analyst : Absolutely. It's a virtuous cycle. All right. I can dig out on this a lot more, but back to the free cash flow trajectory. So the maintenance CapEx actually feeds into this question. Like how to think about the business free cash flow generative ability beyond this year? Because you have the cost tailwind, you got the tax tailwind, you've got the --

Question: Betty Jiang - Barclays Services Corp - Analyst : Yes. maturing of the portfolio where it gets less capital intensive. So how do you see that free cash flow wedge expanding?

Question: Betty Jiang - Barclays Services Corp - Analyst : That makes sense. And then look, that's because the business looks really good in --

Question: Betty Jiang - Barclays Services Corp - Analyst : So double-click on that last comment about use of that free cash flow. So you're halfway through the $2.5 billion debt reduction target, but that reduction is a big focus now. But by the time you get there, how do you think about cash return? And you mentioned just now stockpiling cash on the balance sheet, which also naturally leads to the question of why [stockpiling] cash. So what's the use of that cash? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 03, 2025 / 1:45PM, DVN.N - Devon Energy Corp at Barclays CEO Energy & Power Conference

Question: Betty Jiang - Barclays Services Corp - Analyst : Great. That makes sense. Along the line with the -- talked a lot about upstream. Just how do you think about the value creation enabled by midstream and then the investment in the midstream business? Because you guys have been pretty early in doing the partnership with WaterBridge. Just what's your philosophy around that?

Question: Betty Jiang - Barclays Services Corp - Analyst : Yes. No, that makes sense. And if we just click back on the water side of things, it's -- you recently signed an agreement to buy pore space. I guess, where do you see other opportunity when it comes to the midstream infrastructure? Do you see that as an area of investment for Devon or see that as an area of monetization down the road around the partnership?

Question: Betty Jiang - Barclays Services Corp - Analyst : That's great. Well, as a wrap-up, I was going to ask you what makes -- what parts of Devon are you most excited about? Everything we talked about, you're really excited about. So is the takeaway -- the free cash flow, the North Star, when you think about how you -- the one thing that you look at to look at the progression of the company, is this the free cash flow expansion?

Question: Betty Jiang - Barclays Services Corp - Analyst : Well, it's been a fun conversation, Clay. Thank you so much. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 03, 2025 / 1:45PM, DVN.N - Devon Energy Corp at Barclays CEO Energy & Power Conference