NYSE: DVNdevonenergy.com

Investor Presentation

February 2017

Investor Contacts & Notices

2

Investor Relations Contacts

Scott Coody, Vice President, Investor Relations(405) 552-4735 / scott.coody@dvn.com

Chris Carr, Supervisor, Investor Relations(405) 228-2496 / chris.carr@dvn.com

Forward-Looking StatementsThis presentation includes "forward-looking statements" as defined by the Securities and Exchange Commission (the “SEC”). Such statements are subject to a variety of risks and uncertainties that could cause actual results or developments to differ materially from those projected in the forward-looking statements. Please refer to the slide entitled “Forward-Looking Statements” included in this presentation for other important information regarding such statements.

Use of Non-GAAP InformationThis presentation may include non-GAAP financial measures. Such non-GAAP measures are not alternatives to GAAP measures, and you should not consider these non-GAAP measures in isolation or as a substitute for analysis of our results as reported under GAAP. For additional disclosure regarding such non-GAAP measures, including reconciliations to their most directly comparable GAAP measure, please refer to Devon’s most recent earnings release at www.devonenergy.com.

Cautionary Note to Investors The SEC 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, risked or unrisked resource, potential locations, risked or unrisked locations, exploration target size and other similar terms. 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, available at www.devonenergy.com. 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.

Devon TodayA Leading North American E&P

3

Key Messages

Premier asset portfolio

Multi-decade growth platform

Focused in STACK and Delaware Basin

Delivering top-tier execution

Significant financial strength

Heavy Oil

Rockies Oil

Barnett Shale

STACK

Oil46%

NGL18%

Gas36%

Production 2017e: 539 - 561 MBOED

Delaware Basin

Eagle Ford

Strategic Approach To 2017

4

Further increase capital productivity

Maintain improved cost structure

Focused on value and returns

Concentrate activity within STACK and Delaware

Harvest cash flow from other assets

Invest directionally within cash flow

Disciplined hedging program

Operating Strategy For Success

5

Maximize base production

— Minimize controllable downtime

— Enhance well productivity

— Leverage midstream operations

— Control operating costs

Optimize capital program

— Disciplined project execution

— Perform premier technical work

— Focus on development drilling

— Increase capital efficiency

Delivering Record-Setting Well Productivity

6

Best drilling results in Devon’s 45-year history

— Development drilling focused in top resource plays

— Enhanced completion designs and improved well placement

0

150

300

450

600

750

2012 2013 2014 2015 2016

Avg. 90-Day Wellhead IPsBOED, 20:1

IMPROVEMENT

Efficiency Gains Create Tremendous Value

7

Achieved $1.3 billion of annual cost savings

― LOE and G&A reduced ≈30% from peak rates

Base production initiatives yielding excellent results

― Efforts achieving 2% production uplift

― Creating ≈$100 million of value annually

D&C costs reduced by up to 45%(1)

― Driven by efficiencies and supply chain costs

― More than offsetting larger completions

Operating Costs and G&A$ Billions

2014 2015 2016

$2.8

$4.1

LOE Prod. Taxes G&A

BCOST SAVINGS

(1) From peak levels in 2014.

Performance Transformation Continues In 2017

8

Drilling activity to shift to longer laterals

— Improves capital efficiency & well productivity

Control supply chain to reduce costs

— Unbundling historical, high-margin services

— Utilizing more diversified vendor universe

— Adding longer-term contracts to capture lower costs

“Big data” innovations to create substantial value

— Leveraging advanced analytics to improve operations

— Efficient data systems optimize overhead structure

Accelerating Capital Investment

9

Disciplined capital allocation focused on returns

2017 E&P capital: $2.0 to $2.3 billion

— 90% devoted to U.S. resource plays

— Concentrated in STACK & Delaware Basin

— Invest directionally within cash flow

Ramping up to 20 operated rigs by year end

— Steady rig additions throughout the year

— Generates momentum into 2018

0

10

20

30

40

2015 2016 20172015 2016 2017e

AT YEAR END 2016RIGS

BY YEAR END 2017RIGS

Rig Activity – U.S. Resource PlaysOperated Rigs

E & P C A P I T A L

2017e

UP TO

Billion

2017 Capital Outlook

Rapid Expansion Of High-Margin Production

10

Accelerated investment drives strong oil growth

— U.S. oil growth: 13% - 17% (2017 vs. Q4 16)

— Production growth resumes in Q1 2017

Higher growth rates expected in 2018

— U.S. oil production to advance by ≈20%

— Driven by >30% growth in STACK & Delaware

Positioned to deliver peer-leading cash flow expansion

2017 & 2018 Outlook

U.S. Oil Production GrowthMBOD

Q4 2016 2017e 2018e

105

(vs. Q4 2016)

(vs. 2017)

≈

Expanding The Resource Base

1111

Initial multi-zone Meramec development program

Ongoing Meramec infill tests to define future developments

Substantial productivity gains with Woodford row developments

Significant Leonard Shale and Wolfcamp drilling programs Infill spacing tests to

define upside

Advances in horizontal refrac design

Barnett Shale

Eagle Ford

Drilling Schedule Catalyst Rich In 2017

High-Growth Assets

STACK

Delaware Basin

Other Key Assets

Impactful appraisal work underway in STACK and Delaware

— >1 million surface acres

— 30,000 potential locations (1/3 derisked)

— Appraisal work to expand inventory

Efforts to define upside in other cash-flow generating assets

Initiatives refining view of total resource potential

World-class development opportunity

— >600,000 net acres by formation(1)

— Top targets: Meramec & Woodford

— Q4 net production: 88 MBOED

Largest leasehold position of any operator

— Deep inventory of low-risk projects

Most active asset in portfolio

— 2017 capital: $750 million

— Up to 10 operated rigs by year-end

STACKBest-In-Class Position

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STACK RESOURCE OVERVIEW

NET ACRES(1)

kRISKED LOCATIONS

Woodford – Core Area

Meramec – Core Area

Canadian

Kingfisher

Blaine

Custer

Dewey

(1) Represents Meramec and Woodford net acreage by formation.

STACK

1313

88

Q4 2016 Q1 2017e Q2 2017e Q3 2017e Q4 2017e

STACK Production GrowthMBOED

>120

GROWTH

Production expected to increase >35% during 2017

Product mix shifting to higher-margin oil and liquids production

Positioned For Strong Production Growth

Initial Meramec spacing pilots successful

— Tested multi-zone, staggered laterals

— Spacing up to 7 wells in a single interval

First multi-zone development in 2H 2017

— Up to 15 wells in a single drilling unit

— Across 3 different Meramec intervals

Significant upside with future projects

— Potential for 20 to 30 wells per drilling unit

— Evaluating co-development with Woodford

STACKMeramec Moving To Full-Field Development

14

STACK PILOTS – OPERATED & NON-OPERATED

Canadian

Kingfisher

Blaine

Non-Operated

Operated

Born Free Staggered Pilot30-Day IP: 2,200 BOED

Pump House 7-Well Pattern30-Day IP: 2,100 BOED

Alma 5-Well Pilot30-Day IP: 1,400 BOED

Showboat Development ≈15 wells (2H 2017) Parent well:

30-Day IP: 1,750 BOEDYr. 1 cum: 550 MBOE

STACK

15

Appraisal & infill success increases inventory

— Raised inventory 40% above previous estimates

— Meramec inventory: 1,700 risked locations

Future development to leverage long laterals

— Further enhances capital and well productivity

— Represents 60% of planned activity in 2017

Meramec Resource Continues To Expand

1,700 RISKED LOCATIONS

MERAMEC INVENTORY

Meramec Over-Pressured Oil - 10,000’ LateralType Well

IP

EUR

D&C

1,600 - 2,000MBOE (40% - 50% Oil)

1,900 - 2,30030-Day, BOED

$7.5 - 9.0$MM

STACKWoodford Shale: A Top-Tier Liquids-Rich Development

16

Hobson Row completion activity underway

— 5-section development with ≈40 wells

— Testing larger completions, tighter spacing and increased lateral length

— Peak rates expected during Q2 2017

Jacobs Row to utilize long laterals

— 13-section development with ≈70 wells

— Initial activity to commence in 2H 2017

Deep inventory of low-risk Woodford projects

— 3,700 risked, undrilled locations

Woodford Eastern Core Activity

Woodford Core

Jacobs Row≈70 Wells (10K laterals)Activity begins 2H 2017

Hobson Row≈40 Wells drilled (5-sections)Completions underway

Canadian

KingfisherBlaine

IP EUR D&C1,600MBOE

1,50030-Day, BOED(>25% Oil)

$6.0 - 6.5$MM

Woodford - 5,000’ LateralEastern Core Type Well

Delaware BasinA World-Class Oil Play

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Industry leader in basin

— 670,000 net acres by formation

— Acreage concentrated in core of the play

— Q4 net production: 54 MBOED

Deep inventory of low-risk oil projects

— >5,800 risked locations

— Massive upside with >20,000 potential locations

Accelerating activity in 2017

— 2017 capital: $700 million

— Drilling concentrated in basin of SE New Mexico

EddyLea

S L O P E

B A S I N

Reeves

Loving Winkler

Ward

Bone Spring285,000 net acres

Wolfcamp225,000 net acres

Leonard Shale60,000 net acres

Delaware Sands80,000 net acres

Delaware BasinMaximizing The Value Of Every Barrel

18

$16.87

$14.80

$12.62$12.00

$10.76

$8.82$7.72 $7.42

Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016

Delaware Basin Unit LOE$/BOE

Delaware Basin Unit LOEPeak cost to Q4 2016

I M P R O V E M E N T

Majority of cost savings are sustainable

— Improved electrical infrastructure

— Enhanced water-handling infrastructure

Delaware Basin

19

Ramping up to 10 rigs by year-end 2017

— Development activity targeting Bone Spring & Leonard

— Significant appraisal work in Wolfcamp play

Production growth >20% by year end

— Driven by light-oil production

— Growth resumes by end of Q1 2017

Shift to longer laterals improves capital efficiency

— Lateral length 40% higher in 2017

Accelerating Drilling Activity

19

54

Q4 2016 Q1 2017e Q2 2017e Q3 2017e Q4 2017e

>65

Delaware Basin 2017 Drilling Plans≈100 Operated Wells

Delaware Basin Production GrowthMBOED

GROWTH

36%

36%

23%

5%

BoneSpring

Wolfcamp

DelawareSands

LeonardShale

Delaware BasinTotal Reservoir Access Concept (TRAC)

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A disciplined development approach to drive returns higher

— More efficient permitting process

— Minimizes surface disturbance

— Utilizes integrated surface facilities

— Flexibility to add/defer development zones

— Allows for simultaneous operations

Initial TRAC project underway

— Drilling multi-zone Leonard Shale project

— Large pad developments to accelerate in 2H 2017 & 2018

Delaware BasinGrowing Resource Opportunity

21

Identified >5,800 risked locations

Massive upside with >20,000 potential locations

Catalyst-rich drilling activity in 2017

— ≈60% of drilling in Wolfcamp & Leonard

Results to optimize future TRAC developments

Note: Graphic for illustrative purposes only and not necessarily representative across Devon’s entire acreage position.

Basin Slope

DEL

AW

AR

E SA

ND

S Madera

Lower Brushy

LEO

NA

RD A

B

C

BO

NE

SPR

ING

1st

2nd

(Upper &Lower)

3rd

WO

LFC

AM

P

X/Y

A, B, C & D

Risked Location Unrisked Location

1 Section 1 Section

Advantaged Capital Structure

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Investment-grade credit ratings

― Strong liquidity: $2 billion of cash (12/31/16)

― No significant debt maturities until 2021

Disciplined risk management protects cash flow

― ≈50% of production hedged in 2017

― Program consists of systematic & discretionary hedges

Significant investment in EnLink Midstream

― Distributions received: ≈$270 million annually

― Ownership interest valued at ≈$4 billion

Devon EnergyA Leading North American E&P

23

Thank you.

24

Forward-Looking Statements

25

This presentation includes "forward-looking statements" as defined by the SEC. Such statements include those concerning strategic plans, expectations and objectives for future operations, and are often identified by use of the words “expects,” “believes,” “will,” “would,” “could,” “forecasts,” “projections,” “estimates,” “plans,” “expectations,” “targets,” “opportunities,” “potential,” “anticipates,” “outlook” and other similar terminology. All statements, other than statements of historical facts, included in this presentation that address activities, events or developments that the Company expects, believes or anticipates will or may occur in the future are forward-looking statements. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the Company. Statements regarding our business and operations are subject to all of the risks and uncertainties normally incident to the exploration for and development and production of oil and gas. These risks include, but are not limited to: the volatility of oil, gas and NGL prices, including the currently depressed commodity price environment; uncertainties inherent in estimating oil, gas and NGL reserves; the extent to which we are successful in acquiring and discovering additional reserves; the uncertainties, costs and risks involved in exploration and development activities; risks related to our hedging activities; counterparty credit risks; regulatory restrictions, compliance costs and other risks relating to governmental regulation, including with respect to environmental matters; risks relating to our indebtedness; our ability to successfully complete mergers, acquisitions and divestitures; the extent to which insurance covers any losses we may experience; our limited control over third parties who operate our oil and gas properties; midstream capacity constraints and potential interruptions in production; competition for leases, materials, people and capital; cyberattacks targeting our systems and infrastructure; and any of the other risks and uncertainties identified in our Form 10-K and our other filings with the SEC. Investors are cautioned that any such statements are not guarantees of future performance and that actual results or developments may differ materially from those projected in the forward-looking statements. The forward-looking statements in this presentation are made as of the date of this presentation, even if subsequently made available by Devon on its website or otherwise. Devon does not undertake any obligation to update the forward-looking statements as a result of new information, future events or otherwise.

NYSE: DVNdevonenergy.com

Appendix

Canadian Heavy Oil

27

Top-tier thermal oil position

— High reservoir quality: <2.5 SOR(1)

— Massive risked resource: 1.4 BBO

Jackfish complex oil production up 26% YoY

— Q4 production: 121 MBOD

— 15% above nameplate capacity

Significant cash flow generation

— Potential to approach $800 million in 2017(2)

— >$3.5 billion since first production

(1) Current steam-to-oil ratio for Jackfish complex.(2) Assumes $55 WTI.

Thermal Heavy Oil ProjectsOperational Projects

Eagle Ford

28

2 0 1 6 F R E E C A S H F L O W

MILLION

CR

ETA

CEO

US

AUSTIN CHALK

UPPER EAGLEFORD SHALE

LOWER EAGLEFORD SHALE

BUDA

DEL RIO

Multi-Zone “Diamond” Pilot(9-well pattern testing up to 18 wells per section)

880’440’

Top-tier acreage position

— 65,000 net acres focused in DeWitt Co.

— Best-in-class productivity

— Q4 net production: 60 MBOED (75% liquids)

Completion activity underway

— Reduce DUCs to 30 to 40 by year-end 2017

— Multi-zone “diamond” pilot flowing back

Significant free cash flow generating asset

— >$350 million of free cash flow in 2016

Rockies Oil

29

Johnson

Campbell

Converse

Weston

Niobrara

Natrona

Premier Powder River Basin position

— 470,000 net surface acres

— Q4 net production: 15 MBOED (74% oil)

>50% improvement in LOE from early 2016

Drilling activity resumed in the Power River

— Targeting Parkman, Teapot and Turner formations

— Initial results expected in Q1 2017

Parkman

Turner

Teapot

Initial Powder River Focus Areas

Barnett Shale

30

Wise

ParkerTarrantFT. WORTH

Denton

DENTON

Significant gas optionality

— Net acres: 610,000

— Q4 net production: 163 MBOED (27% liquids)

Future development activity to unlock significant value

— Identified 1,000 horizontal refrac locations

— Improved rig economics for 1,500 undrilled locations Horizontal Refrac

Undrilled Location

Future Development