Investor Presentaiton
Free Cash Flow Priorities
#1
#2
FIXED + VARIABLE DIVIDEND
Fixed dividend is paid quarterly at $0.16 per share
Variable dividend is up to 50% of excess free cash flow
SHARE REPURCHASES
☐
$2.0 billion buyback authorization in place
Focused on opportunistically repurchasing shares
BALANCE SHEET IMPROVEMENT
➡Q1 VARIABLE DIVIDEND CALCULATION
$2,000 MM - Adjusted Cash Flow (Non-GAAP)
- $564 MM - Capital Expenditures (Accrued)
$1,436 MM - Adjusted Free Cash Flow (Non-GAAP)
$109 MM - Fixed Quarterly Dividend
$1,327 MM - Excess Free Cash Flow
X ~50% Payout (Board Discretion: Up to 50%)
$732 MM-Variable Dividend ($1.11/share)
(Includes $69 mm of proceeds related to divestiture contingency payments)
#3
Opportunities to retire ~ $1 billion of low-premium debt
Low leverage profile of 0.2x by year-end 2022
Q1 2022 TOTAL $1.27
PER SHARE
DIVIDEND PAYOUT
PAYABLE ON JUNE 30, 2022
Note: Adjusted cash flow represents operating cash flow ($1,837 mm) before balance sheet changes (+$143 mm) excluding Ukraine donation (+$20 mm). See Devon's first-quarter 2022 earnings materials for more details regarding the variable dividend calculation.
Q1 2022 Earnings Presentation
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