Return of Capital Strategy
Q: Why shift from variable dividends to share buybacks?
A: Management believes that the best use of free cash flow is to lean into share buybacks due to the undervaluation of their shares. They plan to continue repurchasing shares at a pace of $200 million to $275 million per quarter and may even increase this amount as capital spending moderates.

Production Outlook and Guidance
Q: Will better results lead to higher future production?
A: While it's early to discuss 2025, internal expectations are rising due to efficiency gains and outperformance. However, management doesn't foresee significant changes to overall production expectations and considers current guidance as baseline.

LNG Strategy and Gas Marketing
Q: Any updates on LNG strategy and Delfin project?
A: Devon is actively pursuing exposure to the LNG market and is in discussions with several parties, including Delfin. They feel well-positioned to capitalize on incremental LNG demand, with significant gas volumes reaching the Gulf Coast and capacity to access LNG hubs in Louisiana.

Cash Use and Balance Sheet Strength
Q: Does it make sense to pay down debt or use cash differently?
A: Management remains committed to handling upcoming debt maturities to maintain balance sheet strength amid commodity price volatility. This approach provides optionality for additional share repurchases or acquisitions if opportunities arise.

Delaware Basin Outperformance Drivers
Q: What contributed to the Delaware Basin's outperformance?
A: Approximately 60% of the outperformance was due to improved well productivity, 20% from bringing projects online efficiently, and 20% from base operations outperforming expectations, including better midstream performance and weather conditions.

Williston Basin Strategy and Outlook
Q: What's the plan for the Bakken given recent performance?
A: Devon has slowed activity in the Williston Basin to improve capital efficiency. They plan to drill core wells when conditions are optimal rather than maintaining continuous drilling, resulting in production peaks and valleys but keeping year-on-year production relatively flat.

Midstream Investments Monetization Plans
Q: Any plans to monetize midstream assets like Matterhorn?
A: Management will consider monetizing midstream investments when market conditions are favorable and when it aligns with their strategic needs. As assets mature and their need for control decreases, they may look at market dynamics to decide on exits.

Anadarko Basin Activity and Gas Prices
Q: Will you accelerate Anadarko activity if gas prices improve?
A: While current gas prices are challenging, Devon continues to run two rigs in the Anadarko Basin with partner Dow. They may consider accelerating activity if the right opportunities arise and believe both parties would be aligned in that decision.

Operational Efficiencies vs. Cost Reduction
Q: What's more impactful: efficiency gains or lower costs?
A: Devon is making significant progress on operational efficiencies, such as increased footage per day and reduced drilling times. While they seek the best service costs, efficiency gains are creating more value for their bottom line.

M&A Strategy and Portfolio
Q: Are you comfortable with your portfolio or seeking M&A?
A: Management is very comfortable with their high-quality, multi-basin portfolio. They have a high bar for acquisitions but remain open to opportunities that could strengthen the company.

D&C Cost Deflation and Efficiencies
Q: Are you seeing deflation in drilling and completion costs?
A: Devon baked in about 5% deflation from 2023 to 2024, which is materializing. There's potential for more deflation, but efficiency gains may offset capital cost reductions.

Production Profile Stability
Q: Will production be more stable in the second half?
A: Production may dip slightly in the second half due to front-loaded capital spending and lower completion activity. Devon expects to build drilled but uncompleted wells (DUCs) and potentially ramp up activity later.

Anadarko and Eagle Ford Outlook
Q: Will Anadarko and Eagle Ford production remain flat?
A: Production is expected to remain roughly flat. Devon continues to explore new opportunities not reflected in current models, maintaining optimism about future prospects in all basins.

Wolfcamp B Potential in Permian
Q: How extensive is the Wolfcamp B upside beyond 50 locations?
A: The Wolfcamp B extends across the Delaware Basin, with recent wells significantly outperforming expectations in the Thistle area. Beyond the initial 50 wells, Devon is exploring additional opportunities in other areas.

Well Performance and Infrastructure Constraints
Q: Did easing constraints boost well performance?
A: Easing infrastructure constraints contributed 20% to outperformance. While constraints persist, improved well productivity and efficient operations were the main drivers.