Devon Energy Corp Q3 2025 Earnings Call Summary

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

Question: Neil Mehta - Goldman Sachs Group Inc - Analyst : Yes. Thanks so much for the visibility as we look into 2026. And I think the capital efficiency and the cost savings is really starting to materialize, including in the guidance. So maybe that's where we start off, which is where we are in the business optimization program and the $1 billion. You gave us a little bit of color on slide 8, but kind of unpack what's left to do in the journey. And if you end up surprising to the upside relative to the initial guide, where could that be?

Question: Neil Mehta - Goldman Sachs Group Inc - Analyst : Appreciate the color, guys. And then as you think about setting that CapEx budget for '26, you probably took a view on different product lines on the services side. And just talk about -- we're trying to isolate the structural cost improvements, which you talked about in the answer to the first question versus more of the cyclical stuff. So can you talk about the service environment right now and which product lines you're seeing deflation and which ones -- which of the cost items you're seeing flat to inflation? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 06, 2025 / 4:00PM, DVN.N - Q3 2025 Devon Energy Corp Earnings Call

Question: Arun Jayaram - JPMorgan Chase & Co - Analyst : I was wondering if you could maybe elaborate on what you're doing to kind of manage your base production. You highlighted in the release that it's leading to maybe 20 MBOE per day of production uplift and a pretty meaningful improvement in cash flow from those efforts. And maybe talk about your views on the sustainability as we think about go forward 2026 beyond.

Question: Arun Jayaram - JPMorgan Chase & Co - Analyst : Maybe just a follow-up. Your Rockies production has been trending maybe a little bit better than we had been modeling. In fact, if you look -- you grew your oil 7,000 barrels a day sequentially and you're relatively flat versus the 4Q 2024 number. So maybe talk to us a little bit about what's been driving that and maybe how the overall integration with Grayson Mill assets has been going?

Question: Scott Gruber - Citi Infrastructure Investments LLC - Analyst : I want to come back to the production optimization bucket. Great gains there. I think the bulk of that effort hits production and therefore, a reduction in your maintenance CapEx needs. I think there's also an LOE benefit as well. How does that split? And we see your LOE rolling lower. How should we think about the LOE cost in '26? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 06, 2025 / 4:00PM, DVN.N - Q3 2025 Devon Energy Corp Earnings Call

Question: Scott Gruber - Citi Infrastructure Investments LLC - Analyst : I appreciate that color. And with the efforts reducing your well count needs? How do we think about the TIL count that's embedded in your '26 preliminary guide here?

Question: Scott Gruber - Citi Infrastructure Investments LLC - Analyst : But should we think about the '25 TIL count kind of less 20 as a starting point for '26? Is that fair?

Question: Kevin MacCurdy - Pickering Energy Partners Insights - Analyst : Kind of going back to M&A. There's been a lot of industry interest in the Anadarko and specifically M&A in the Anadarko. And maybe a two-part question there. I mean, being located there in Oklahoma, what do you make of the interest in that basin? And what do you think is driving kind of the renewed interest? And does the level of interest kind of make you reconsider your -- the Anadarko's place in your portfolio?

Question: Kevin MacCurdy - Pickering Energy Partners Insights - Analyst : Got you. And then as a follow-up. I really like the details on slide 9. I think that highlights the value creation that you've had that doesn't always kind of show up in the production numbers. I guess a question on WaterBridge. Is there any operational reasons that you would keep that equity interest?

Question: Kaleinoheaokealaula Akamine - BofA Securities - Analyst : I want to start with the Wolfcamp B drilling program for this year, and maybe this one is for John. So production in the Delaware has been holding up quite well this year. Can you kind of compare how the Wolfcamp B results are comparing to your expectations? And then for 2026, do you anticipate this zone comprising a similar proportion of the program?

Question: Kaleinoheaokealaula Akamine - BofA Securities - Analyst : That's awesome. I appreciate that detailed answer. My follow-up is on the lease sales. So yesterday, that sale was a state sale, but this presidential administration has put federal lease sales back on the table, and they should occur with a pretty steady cadence. How are you guys thinking about those? And do you anticipate that being a part of your cash allocation priorities for '26?