CEO Letter

CONTINUOUSLY IMPROVING

Devon is committed to delivering results to our stakeholders in the right way. As a leading independent oil and natural gas company, that means producing energy to help meet global demand, while generating strong financial returns and long-term value for our shareholders. For Devon, it also means operating a safe, environmentally responsible and ethical business in the field and in the office.

As we’re transforming Devon into a U.S. oil growth company, we’re doing so with the interests of our stakeholders and our environmental, social and governance (ESG) progress in mind. We have a great business model, and strong ESG performance enhances our ability to manage risks and operate responsibly.

It shows our stakeholders that we’re focused on all aspects of our business and will stay true to our values, doing business with integrity and discipline, and earning our social license to operate.

Continuously improving our business and ESG performance

In all aspects of our business, Devon aims for continuous improvement. We have significantly increased operational efficiency, led our industry in transitioning to cloud computing and strategically amassed a multi-decade drilling inventory. To accelerate our progress, our subject-matter experts in technology and in environment, health and safety (EHS) are working closely with our operations staff to incorporate innovations and best practices into our day-to-day business activities.

We’re also taking a continuous improvement approach to our ESG performance, and this report is an example of our efforts to increase transparency on ESG-related issues.

Transparency and targets for better environmental performance

On the environmental front, Devon published our first Climate Change Assessment Report in 2018, providing transparency into the sustainability of our portfolio in a number of carbon-constrained demand scenarios. We cut our methane emissions by nearly 20% in the last three years, and we recently set a methane-intensity target that holds us accountable for continuing to reduce emissions.

We believe we can achieve a methane-intensity rate of 0.28% or lower by 2025.

By operating responsibly and increasing our focus on leak detection and repair, we’re confident we can meet the target. The actions we’re taking reaffirm our commitment to responsible production operations, going beyond what is required by law in pursuit of continuous improvement in environmental performance.

By shifting our focus from inspections to conversations about our personal reasons for working safely, we improved our safety performance among employees and contractors in 2018.

Social investments, improving governance

In 2018, Devon made major social investments to ensure Permian Basin communities can thrive and to spearhead a unique wraparound STEM education program in Oklahoma City. We’re involved with a wide variety of stakeholders to make these programs successful.

To strengthen corporate governance, two new directors are bringing fresh perspectives to our board. In addition, in response to ongoing shareholder engagements, we increased disclosures in our 2018 Political Activity and Lobbying Report.

At Devon, we’re measuring the performance that matters to our stakeholders. For example, in this report we’re sharing our calculations for key environmental metrics that we updated recently to make sure they reflect the true nature of our operations and our progress. We benchmark our results against our peers, and we’re focused on measuring what can improve our results as well as our ESG performance.

Momentum for the future

Our climate-change assessment found that oil and natural gas remain crucial to meeting global energy demand, even in carbon-constrained future scenarios, and that Devon’s current asset portfolio is likely to prove resilient. Devon has a proud history of finding and producing energy, and our U.S. oil-focused business has the momentum and scale to drive sustainable growth for the foreseeable future. We’ll grow and deliver results in keeping with our core values, stakeholder interests and our commitment to ESG leadership.

Thank you for your interest in Devon and the actions we’re taking to make our company an operational, environmental, social and governance leader in our industry. We continue to seek improvement in our ESG performance and welcome your feedback and questions.

Sincerely,

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Dave Hager
President & CEO

Core Values:

The Devon Way

Trust is a key ingredient in Devon’s success. It is vital that our stakeholders trust us to deliver results the right way.

Core Values: The Devon Way

Our Results

Performance Highlights



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