Devon Energy Corporation

is being recorded. I'd now like to turn the call over to Mrs. Rosie Zuclick, Vice President of Investor Relations.

You may begin. Good morning, and thank you for joining us on the call today. Last night, we issued Devin's second quarter earnings release and presentation materials. Throughout the call today, we will make references to these materials to support prepared remarks. The release and slides can be found in the investor section of the Devin website. Joining me on the call today are Clay Gaspar, President and Chief Executive Officer, Jeff Rittenhour, Chief Financial Officer, John Raines, SVP Asset Management, Tom Hellman, SVP E&P Operations, and Trey Lowe, SVP Technology and Chief Technology Officer. As a reminder, this conference call will include forward-looking statements as defined under U.S. Securities Law. These statements involve risks and uncertainties that may cause actual results to differ materially from our forecast. Please refer to the cautionary language and risk factors provided in our SEC filings and earnings materials. With that, I'll turn the call over to Clay.

Thank you, Rosie. Good morning, everyone. Thank you for joining us today. Devon delivered another quarter of production outperformance, capital reduction, and improved 2025 outlook, driven by our unwavering commitment to operational excellence and financial discipline. Our strategic priorities on slide three remain steadfast. operational excellence, advantaged asset portfolio, maintaining financial strength, delivering value to shareholders, and cultivating a culture to succeed. Amid market volatility, our veteran leadership team is not distracted by the headline or tweet du jour. We keep our eyes focused on the larger macro signals, and we've guided our team's energy towards controlling the controllables. As you will hear, During the quarter, we avoided the distractions and have made significant progress towards our business optimization goals of making Devon a more efficient value creation machine. Our optimization plan will create an incremental billion dollars of annual free cash flow by the end of next year. While cost cutting is part of the strategy, our focus is on driving value to the bottom line. Many of the wins are tied to production enhancements, inciting a culture of continuous improvement and a heavy dose of technology. Only four months into this initiative, our team has already captured 40% of our target. As I sit here today, I'm highly confident in our ability to achieve our $1 billion target on time, and as a result, create significant and sustainable value for our shareholders. Consistent with our strategy to enhance our asset portfolio, We completed the sale of the Matterhorn pipeline in Q2. Then on August 1st, we acquired the remaining non-controlling interest in Cotton Draw Midstream. These transactions are value enhancing and strengthen our financial position to support future growth. By optimizing our midstream holding, these deals bolster our E&P operations and give us long-term value creation for our shareholders. Let's turn to slide four and discuss our quarterly highlights. The second quarter demonstrated the strength of our capital program and diversified portfolio. As I mentioned, our second quarter production exceeded the top end of our guidance. These results were driven by our franchise asset, the Delaware Basin, and strong performance across our other assets. Continued efficiency gains and effective supply chain management allowed us to outperform expectations with capital spending coming in 7% below guidance. The impressive performance on both capital and production generated significant Q2 free cash flow of $589 million and further strengthened our financial foundation. Approximately 70% of the free cash flow was returned to shareholders via dividends and share repurchases, underscoring our reinvestment strategy and commitment to delivering meaningful long-term shareholder returns. Let's take a closer look at some of our operational metrics. Slide five showcases the significant operational efficiencies we are achieving across our portfolio. In the Delaware, our teams have continued to push the envelope in both drilling and completions. By leveraging our existing, or excuse me, our extensive data streams and our proprietary NFRAC and InDrill AI agents, we're able to capture operational enhancements in real time and drive efficiency in our critical operations. And parallel to this real-time operational assistance, We're also leveraging design improvements, simul-frac implementation, and relentless focus on safety and execution. These enhancements have resulted in another 12% year-over-year improvement in drilling costs and a 15% improvement in completion costs. These are not just one-time gains. They reflect the ongoing commitment of our teams to drive meaningful, long-term improvements in how we operate. We're seeing similar momentum in the Willison, where our innovative approach has delivered a million dollars in savings per well since the Grayson Mill acquisition last year. We've reduced total well costs through design enhancements, improved drilling and completion practices, and by leveraging technology. Finally, in the Eagleford, I'm pleased to report that we've fully captured the $2.7 million in savings per well that we set out to achieve as part of the dissolution of the JV in April. Overall, the operational highlights demonstrate how our teams are continuously seeking new ways to drive efficiency and deliver value. Let's turn to slide six. You can see how these operational improvements are driving real capital efficiency gains. Since November, we've reduced our 2025 capital guidance by 10% or $400 million. We've achieved these capital reductions while regularly increasing our next quarter production guide and maintaining a strong 2026 production outlook. This outcome is a direct result of disciplined capital allocation, ongoing operational improvements, and importantly, our commitment to leveraging technology across the business. Our proprietary AI tools, agents, and models are embedded throughout our operations, from drilling and completions to real-time production optimization. These technologies enable us to quickly source and analyze vast amounts of data, make informed decisions faster, and continuously refine our workflows. As I mentioned before, we're not just cutting costs. We're optimizing well performance, reducing cycle times, and streamlining field operations all while delivering production performance and strengthening our financial position. These are sustainable structural gains that will translate into more efficient capital deployment, stronger free cash flow, and long-term value. With that, I'll hand the call over to Jeff.