The acquisition of the Williston Basin business of Grayson Mill for $5.0 billion is expected to efficiently expand oil production and operating scale, creating immediate and long-term value to shareholders.

Approximately 55% of the 2025 capital program is expected to be focused on the Delaware Basin, indicating a strategic focus on this high-return oil play.

The 2025 capital expenditure budget is expected to be approximately 7% higher than 2024, primarily due to increased activity in the Williston Basin, suggesting increased investment in growth projects.

Through 2024, approximately 67% of the authorized $5.0 billion share repurchase program has been completed, with approximately 69 million of common shares repurchased for approximately $3.3 billion, or $48.46 per share, since inception of the plan.

The fixed dividend was raised by 9%, to $0.24 per share, beginning in the first quarter of 2025. This demonstrates a commitment to shareholder returns.

The company retired $472 million of senior notes during the year, indicating a focus on strengthening the balance sheet.

The company's financial condition and results of operations are highly dependent on the general supply and demand for oil, gas and NGLs, which impact the prices realized on sales of these commodities.

The process of estimating oil, gas and NGL reserves is complex and requires significant judgment, and reserve estimates may change substantially over time.

Increasing political and social attention to climate change has resulted in legislative, regulatory and other initiatives to reduce GHG emissions, which could negatively impact the company's business.

Strong competition exists in all sectors of the oil and gas industry, including for the acquisition of oil and gas leases and properties, as well as for equipment, materials, services and personnel.

The company believes U.S. crude oil and natural gas will continue to be advantaged in the global energy markets, with a portfolio of assets located in the Delaware Basin, Rockies, Eagle Ford and Anadarko Basin.

Gas prices were impacted by expanded regional gas price differentials in the Delaware Basin driven by infrastructure constraints.

LOE and gathering, processing and transportation and production taxes increased primarily due to increased activity and the Grayson Mill acquisition in the Rockies.

DD&A increased in 2024 primarily due to higher volumes as well as an increase in the oil and gas DD&A rate. The primary contributor to the higher DD&A rate was our 2023 drilling and development activity.

Operating our business in a safe, reliable and environmentally responsible manner is fundamental to who we are. We embrace innovative thinking and believe technology will be instrumental in the longevity of our industry.

We embrace innovative thinking and believe technology will be instrumental in the longevity of our industry.

G&A increased in 2024 primarily due to higher employee compensation, driven in part by inflationary adjustments and the Grayson Mill acquisition. We also had an increase in non-labor costs which were primarily related to technology system upgrade projects.

In the process, Devon incorporates technology, tools and processes that enable us to minimize or avoid effects on air, water, land and wildlife.

The majority of the 2025 capital, or approximately 55%, is expected to be focused on our highest returning oil play, the Delaware Basin.

Our 2025 capital is expected to be approximately 7% higher than 2024 primarily due to increased activity in the Williston Basin.

We remain committed to continuing our track record of industry leading return of capital to our shareholders, underpinned by low capital reinvestment rates and a disciplined, returns-driven strategy.

We are also evaluating and selectively investing in low-carbon opportunities that are complementary to our core business and commitment to deliver long-term shareholder value.

Our organizational efforts assure that our environmental objectives and targets are considered in capital allocation decisions, corporate and business unit planning and team strategies to integrate sustainability into our business activities.

We have set a target to advance our recycled water rate by using 90% or more non-freshwater for completions activities in our most active operating areas within the Delaware Basin.

Oil is expected to remain volatile in 2025 due to geopolitical risks to supply, forecasted stronger non-OPEC supply, and improving global demand growth expectations.

Our 2025 cash flow is partly protected from commodity price volatility due to our current hedge position that covers approximately 30% of our anticipated oil and gas volumes.

Our operations are subject to extensive federal, state, tribal and local laws and regulations, including with respect to environmental matters, worker health and safety, land and wildlife conservation.