<PAGE> 1
Filer: Santa Fe Snyder Corporation
Pursuant to Rule 425 under the Securities Act of 1933
and deemed filed pursuant to Rule 14a-12 under the
Securities Exchange Act of 1934
Subject Company: Santa Fe Snyder Corporation
Commission File No. 1-7667
DEVON ENERGY & SANTA FE SNYDER
[Slide Presentation]
Pursuant to the May 26, 2000 announcement of the proposed merger of
Devon Energy Corporation and Santa Fe Snyder Corporation, the following is a
slide presentation that will be presented at investor conferences with regard to
the proposed merger.
SLIDE 1 - TITLE SLIDE "DEVON ENERGY & SANTA FE SNYDER"
SLIDE 2 - RISK FACTORS
"For representative risk factors that could cause Devon's actual
results to differ materially from the estimates contained herein, see
Form 8-K dated January 26, 2000 and form 10-K dated March 30, 2000. All
data presented assumes an effective merger date of December 31, 1999
adjusted for certain subsequent acquisitions, divestitures and
financial transactions."
SLIDE 3 - DEVON OVERVIEW
o Top 10 among U.S.-based independents
o Proved oil and gas reserves of 670 MMBOE (12/31/99)
o 81% North America / 19% International
o Production mix: 62% gas / 38% oil
o Enterprise value approximating $5 billion
o Investment grade credit
SLIDE 4 - TOTAL PROVED RESERVES
(Bar graph showing Devon's proved reserves from 1987 to 1999 in MMBoe at
year-end)
<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------------------
1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999
-------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
8 22 30 32 36 61 78 106 115 179 184 299 670
-------------------------------------------------------------------------------------------------------------
</TABLE>
Note: 1987-1997 represents historical Devon as reported prior to 1998 Northstar
merger.
SLIDE 5 -RESERVES PER COMMON SHARE
(Bar graph showing Devon's Reserves per common share from 1987 to 1999 in Boe)
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------------------------------------
1987 1988 1989 1990* 1991* 1992* 1993 1994 1995 1996* 1997* 1998* 1999
--------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1.31 2.56 2.61 2.82 3.13 2.96 3.76 4.79 5.18 4.84 4.94 5.61 7.78
--------------------------------------------------------------------------------------------------------------------------------
</TABLE>
Note: 1987-1997 represents historical Devon as reported prior to 1998 Northstar
merger.
*Fully Diluted
<PAGE> 2
SLIDE 6 - NET DEBT PER BOE
(Bar graph showing Devon's net debt per Boe from 1987 to 1999)
(Long term debt less working capital)
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------
1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999
-----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1.16 1.33 0.19 0.74 0.78 0.68 0.83 0.85 1.17 -0.07 -0.34 1.25 1.47
-----------------------------------------------------------------------------------------------------------------
</TABLE>
Note: 1987-1997 represents historical Devon as reported prior to 1998 Northstar
merger.
(1) Presented net of the book value of Devon's 7.1 million shares of Chevron
common stock.
SLIDE 7 - DEVON'S OPERATING RESULTS
Cash Margin Per Share* Earnings Per Share*
1987 1999 1987 1999
------------- -------------
1.15 6.03 -0.17 1.46
* Fully Diluted
SLIDE 8 - DRILLING ACTIVITY
o 1988 - 1999
> 2,400 wells drilled
o Historically high success rates
SLIDE 9 - MERGERS & ACQUISITIONS
PennzEnergy Company, 1999, $2.6Bn
Northstar Energy, 1998, $759MM
Kerr McGee Corp, North American Onshore Assets, 1996, $254MM
SLIDE 10 - FOR IMMEDIATE RELEASE
May 25, 2000 -- Devon Energy and Santa Fe Snyder to merge creating a
top 5 U.S. independent oil and gas company.
SLIDE 11 - TRANSACTION SUMMARY
o Structure: non-taxable merger
o Equity Ownership: 68% Devon
32% Santa Fe Snyder
o Exchange Ratio: approximately 40.3 MM
common shares, or .22 DVN per SFS share
o Board of Directors: proportional representation
SLIDE 12 - STRATEGIC RATIONALE
o Critical mass
o Per share accretion
o Core area overlap
o International growth platform
o $30 - $35 million annual cost savings
<PAGE> 3
SLIDE 13 - THE COMBINED COMPANY
Proved Reserves: 1,056 MMBoe
Reserve profile: 76% North America
24% International
Proved Developed: 72%
Production Mix: 57% gas/43% oil
R/P Ratio: 8.9 years
Credit Rating: Investment Grade
Undeveloped Acreage (net) 31.9 million
SLIDE 14 - PROVED RESERVES - YEAR-END 1999
(Bar Graph, reserves in MMBoe)
<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------------------
APC/UPR BR DVN KMG APA PXD EOG OEI MUR XTO
-------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1942 1709 1056 915 807 605 602 415 401 337
-------------------------------------------------------------------------------------------------------------
</TABLE>
Note: Reflects proved reserves at 12/31/99 adjusted for material acquisitions
and divestitures.
Represents Pro-forma Devon.
SLIDE 15 - RESERVES PER COMMON SHARE
(Bar graph showing Devon's Reserves per common share from 1987 to 1999 in Boe)
<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------------------
1999
1987 1988 1989 1990* 1991* 1992* 1993 1994 1995 1996* 1997* 1998* 1999 Pro
Forma
----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1.31 2.56 2.61 2.82 3.13 2.96 3.76 4.79 5.18 4.84 4.94 5.61 7.78 8.36
----------------------------------------------------------------------------------------------------------------------------
</TABLE>
Note: 1987-1997 represents historical Devon as reported prior to 1998 Northstar
merger.
*Fully Diluted
SLIDE 16 - OPERATING RESULTS
Quarter Ended March 31, 2000
Actual Pro Forma Cost Savings(1)
EBITDA ($MM) $255 $396 $404
Cash Margin to Common $200 $321 $327
Shares O/S (MM) 86.2 126.3 126.3
Cash Margin/Share $ 2.32 $ 2.54 $ 2.59
(1) Includes estimated annual G&A and LOE savings of $30 million taxed at
40%.
<PAGE> 4
SLIDE 17 - FINANCIAL STRENGTH
Quarter Ended March 31, 2000
Actual Pro Forma Cost Savings(1)
EBITDA ($MM) $255 $396 $404
Total Net Debt(2) $1,046 $2,149 $2,149
EBITDA/Interest 10.1x 10.2x 10.4x
Net Debt/Annualized EBITDA 1.0x 1.4x 1.3x
(1) Includes estimated annual G&A and LOE savings of $30 million taxed at 40%.
(2) Net of the market value of Devon's 7.1 million shares of Chevron common
stock.
SLIDE 18 - CORE AREA OVERLAP
<TABLE>
<CAPTION>
DVN SFS Pro Forma % Total
--- --- --------- -------
<S> <C> <C> <C> <C>
Rocky Mountains 113.8 105.3 219.1 20.7%
Permian Basin 120.3 95.0 215.3 20.4%
Gulf of Mexico/Gulf Coast 85.0 57.0 142.0 13.4%
Canada 120.5 - 120.5 11.4%
Mid-Continent 103.0 - 103.0 9.8%
International 127.2 129.0 256.2 24.3%
Totals 669.8 386.3 1056.1 100.0%
</TABLE>
SLIDE 19 - NORTH AMERICAN OPERATIONS
Bar charts and map showing Devon's reserves growth (year-end vs. pro
forma year-end) in the Rocky Mountains, Permian Basin and the Gulf of
Mexico/Gulf Coast.
SLIDE 20 - ROCKY MOUNTAINS
Map showing Devon and Santa Fe Snyder key properties in the Rocky
Mountains.
o 219 MMBoe Pro Forma
o Gas leveraged
o Improving differentials
o Shared coalbed methane technologies
SLIDE 21 - GULF OF MEXICO
Map showing Devon and Santa Fe Snyder offshore blocks in the Gulf of
Mexico.
SLIDE 22 - INTERNATIONAL OPERATIONS
International map showing the countries in which Devon and Santa Fe
Snyder have production and/or exploration.
<PAGE> 5
SLIDE 23 - INTERNATIONAL RESERVES POSITION
<TABLE>
<CAPTION>
Reserves at % Total
Company 12/31/99 Company
------- ----------- ---------
<S> <C> <C> <C>
Azerbaijan DVN 107.7 10.2%
Indonesia SFS 62.4 5.9%
Argentina SFS 33.2 3.1%
Brazil SFS 13.9 1.3%
Gabon SFS 10.4 1.0%
Other DVN/SFS 28.7 2.7%
Totals 256.3 24.2%
</TABLE>
SLIDE 24 - AZERBAIJAN
Middle East map showing Azerbaijan and pipelines in the area.
SLIDE 25 - SOUTHEAST ASIA
Southeast Asia map showing the general location of the following
areas: B7/38, PM308, Jabung, Jambi B, Tuban
SLIDE 26 - SOUTH AMERICA
South America map showing the general location of the following
basins: Cuyo Basin, Neuquen Basin, Potiguar Basin, Sergipe-Alagoas
Basin, Espirito Santo Basin, San Jorge Basin
SLIDE 27 - PEARL RIVER BASIN
South China/South China Sea map showing the general location of
the following offshore areas: Bootes Discovery, Ursa Discovery
SLIDE 28 - WEST AFRICA
West Africa map showing the general location of the following
offshore areas: CI-24/202, Keta, Agali, Kowe, Marine IX
SLIDE 29 - CAPITAL EXPENDITURES
(Bar graph showing Devon's proved reserves from 1987 to 1999 in
MMBoe at year-end)
1996 1997 1998 1999 2000E 2000E Pro Forma
-----------------------------------------------------------
77 115 275 217 500 850
Note: 1996-1997 represents historical Devon as reported prior to
1998 Northstar merger.
<PAGE> 6
SLIDE 30 - DECADE OF OPPORTUNITIES
o 2000 - 1st significant Powder River CBM production
o 2001 - Foothills development/tie-in
o 2002 - Initial South Sumatra gas production
o 2003 - Powder River CBM fully on stream
- Initial Pearl River Basin production
o 2004 - 2006 - Raton Basin CBM peak production
o 2005 - 2010 - Azerbaijan peak production (?)
SLIDE 31 - TIME LINE
o May 26: DVN and SFS announce merger
o Late June: File preliminary proxy materials
o Early Sept: File definitive proxy materials
o Early Oct: Shareholder meetings
o Early Oct: Close merger
SLIDE 32 - TITLE SLIDE "DEVON ENERGY & SANTA FE SNYDER"
********************
The following is preliminary pro forma information used by participants in the
solicitation on behalf of Santa Fe Snyder Corporation.
Devon Energy Corporation
Unaudited Pro Forma Capitalization
As of March 31, 2000
(In Thousands)
<TABLE>
<CAPTION>
------------------------------------------------------------------------
Devon Santa Fe Adjustments Pro Forma
------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Net working capital surplus (deficit) $ 68,422 $ (10,200) $ 58,222
Borrowings under credit facilities with banks 355,560 495,300 $ 57,000 907,860
Debentures exchangeable into Chevron common stock
4.90%, due 8/15/2008 443,807 443,807
4.95%, due 8/15/2008 316,506 316,506
Market value of Chevron common stock (2) (661,631)
Other debentures
10.25%, due 11/1/2005 250,000 250,000
10.125%, due 11/15/2009 200,000 200,000
Unamortized premium on debentures 36,444 36,444
Other unsecured notes
Senior notes, 8.05%, due 6/15/2004 125,000 125,000
Unaccreted discount on note (1,300)
Senior subordinated notes, 8.75%, due
6/15/2007 175,000 175,000
Other long-term obligations
Deferred revenue associated with forward
sale (3) 152,000 152,000
Other 173,680 89,900 263,580
------------------------------------------------------------------------
Total indebtedness net of working capital (Net Debt) 1,045,944 1,046,100 57,000 2,149,044
------------------------------------------------------------------------
Preferred stock (perpetual preferred, 6.5% coupon) 150,000 150,000
----------- ----------
Total Net Debt plus preferred $ 1,195,944 $ 1,046,100 $ 57,000 $2,299,044
========================================================================
</TABLE>
(1) This adjustment represents the total estimated transaction costs (e.g.,
severance, relocation, professional fees, etc.).
(2) Devon owns 7.1 million shares of Chevron common stock, which underlie the
exchangeable debentures. The market value is based on the share price of
Chevron common stock on May 25, 2000, of $93 3/16.
(3) Santa Fe entered into two crude oil forward sales contracts in August 1999
and January 2000. This amount of deferred revenue represents the remaining
obligation of Santa Fe to deliver a total of 9.0 million barrels of oil
during the period April 2000 through August 2002, deliverable straight-line
at 311,000 barrels per month.
<PAGE> 7
Devon Energy Corporation
Pro Forma Combined Reserve Data
<TABLE>
<CAPTION>
Estimated reserves as of 12/31/99 (1)
Devon Santa Fe Snyder Combined
Amount Portion Amount Portion Amount Portion
------ ------- ------ ------- ------ -------
<S> <C> <C> <C> <C> <C> <C>
Reserve Breakdown:
Oil (MMBo) 303.9 45.4% 192.8 49.9% 496.7 47.0%
NGLs (MMBo) 49.8 7.4% 18.0 4.7% 67.8 6.4%
Gas (Bcf) 1,896.5 47.2% 1,053.1 45.4% 2,949.6 46.5%
Total (MMBoe) 669.8 386.3 1,056.1
Contribution 63.4% 36.6% 100.0%
PD (MMBoe) 510.5 76.2% 259.4 67.2% 769.9 72.9%
PUD (MMBoe) 159.3 23.8% 126.9 32.8% 286.2 27.1%
Principal Areas (in MMBoes):
Permian Basin 120.3 18.0% 95.0 24.6% 215.3 20.4%
GOM/Gulf Coast and Other Offshore 85.0 12.7% 57.0 14.8% 142.0 13.4%
Rocky Mountain 113.8 17.0% 105.3 27.3% 219.1 20.7%
Mid-Continent & Other 103.0 15.4% 103.0 9.8%
Canada 120.5 18.0% 120.5 11.4%
Subtotal North America 542.6 81.0% 257.3 66.6% 799.9 75.7%
Azerbaijan 107.7 16.1% 107.7 10.2%
Argentina/Brazil 47.0 12.2% 47.0 4.5%
Southeast Asia 71.6 18.5% 71.6 6.8%
West Africa 10.4 2.7% 10.4 1.0%
Egypt 2.3 0.3% 2.3 0.2%
Venezuela 17.2 2.6% 17.2 1.6%
Subtotal International 127.2 19.0% 129.0 33.4% 256.2 24.3%
Grand Total 669.8 100.0% 386.3 100.0% 1,056.1 100.0%
Pre-tax SEC PV 10% (in millions) (1) $3,634 $2,178 $5,812
--------------------------------------
Contribution 62.5% 37.5% 100.0%
------------------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) Reserve data taken from the Annual Reports and Form 10-K filings of the
companies.
<PAGE> 8
INVESTOR NOTICES
The foregoing information includes "forward-looking statements" as defined by
the Securities and Exchange Commission. Such statements are those concerning the
companies' merger and strategic plans, expectations and objectives for future
operations. All statements, other than statements of historical facts, included
in this press release that address activities, events or developments that the
companies expect, believe or anticipate will or may occur in the future are
forward-looking statements. This includes completion of the proposed merger,
reserve estimates, future financial performance, future equity issuance and
other matters. These statements are based on certain assumptions made by the
companies based on their experience and perception of historical trends, current
conditions, expected future developments and other factors they believe are
appropriate in the circumstances. Such statements are subject to a number of
assumptions, risks and uncertainties, many of which are beyond the control of
the companies. Statements regarding future production are subject to all of the
risks and uncertainties normally incident to the exploration for and development
and production of oil and gas. These risks include, but are not limited to,
inflation or lack of availability of goods and services, environmental risks,
drilling risks and regulatory changes. Investors are cautioned that any such
statements are not guarantees of future performance and that actual results or
developments may differ materially from those projected in the forward-looking
statements.
Investors and security holders are advised to read the joint proxy
statement/prospectus that will be included in the Registration Statement on Form
S-4 to be filed with the SEC in connection with the proposed merger because it
will contain important information. The joint proxy statement/prospectus will be
filed with the SEC by Devon and Santa Fe Snyder. Investors and security holders
may obtain a free copy of the joint proxy statement/prospectus (when available)
and other documents filed by Devon and Santa Fe Snyder with the SEC at the SEC's
web site at www.sec.gov. The joint proxy statement/prospectus and such other
documents (relating to Devon) may also be obtained for free from Devon by
directing such request to: Devon Energy Corporation, 20 North Broadway, Suite
1500, Oklahoma City, Oklahoma 73102-8260, Attention: Investor Relations,
telephone: (405) 552-4505, e-mail: [email protected]. The joint proxy
statement/prospectus and such other documents (relating to Santa Fe Snyder) may
also be obtained for free from Santa Fe Snyder by directing such request to:
Santa Fe Snyder Corporation, 840 Gessner, Suite 1400, Houston, Texas 77024,
Attention: Investor Relations, telephone: (713) 507-5775, e-mail:
[email protected].
Devon, its directors, executive officers and certain members of management and
employees may be considered "participants in the solicitation" of proxies from
Devon's shareholders in connection with the merger. Information regarding such
persons and a description of their interests in the merger is contained in
Devon's filing with the SEC under Rule 425 on May 26, 2000.
Santa Fe Snyder, its directors, executive officers and certain members of
management and employees may be considered "participants in the solicitation" of
proxies from Santa Fe Snyder's shareholders in connection with the merger.
Information regarding such persons and a description of their interests in the
merger is contained in Santa Fe Snyder's filing with the SEC under Rule 14a-12
on May 26, 2000.
********************
