UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 or 15(d)
of The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): February 16, 2021

Devon Energy Corporation
(Exact name of registrant as specified in its charter)

 
					
DELAWARE	 	001-32318	 	73-1567067	
(State or other jurisdiction
of incorporation)	 	(Commission
File Number)	 	(IRS Employer
Identification No.)	

333 W. SHERIDAN AVE.,
OKLAHOMA CITY, OKLAHOMA	 	 	 	73102-5015	
(Address of principal executive offices)	 		 	(Zip Code)	
Registrant’s telephone number, including area code: (405) 235-3611
Not Applicable
(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
 
☐	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)	
 
☐	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)	
 
☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))	
 
☐	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))	
Securities registered pursuant to Section 12(b) of the Act:

Title of each class	 	Trading
Symbol(s)	 	Name of each exchange
on which registered	
Common Stock, par value $0.10 per share	 	DVN	 	The New York Stock Exchange	
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).
Emerging growth company  ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐

 

Item 2.02	Results of Operations and Financial Condition.	
On February 16, 2021, Devon Energy Corporation (the “Company”) announced its financial and operational results for the quarter and year ended December 31, 2020. In connection with this announcement, the Company provided an earnings release, its earnings presentation for the fourth quarter of 2020 and certain supplemental financial information (including guidance and hedging information). Copies of these documents are furnished as Exhibits 99.1, 99.2 and 99.3, respectively, to this report and will be available on the Company’s website at www.devonenergy.com.
The information contained in this report and the exhibits hereto shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and shall not be incorporated by reference into any filings made by the Company under the Securities Act of 1933, as amended, or the Exchange Act, except as may be expressly set forth by specific reference in such filing.
 
Item 9.01	Financial Statements and Exhibits.	
(d)    Exhibits

Exhibit
No.	  		Description of Exhibits	
			
  99.1	  	Earnings release, dated February 16, 2021.		
			
  99.2	  	Fourth quarter 2020 earnings presentation.		
			
  99.3	  	Supplemental financial information (including guidance and hedging information).		
			
  104	  	Cover Page Interactive Data File (embedded within the Inline XBRL document).		

SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

DEVON ENERGY CORPORATION	
		
By:	 	/s/ Jeffrey L. Ritenour	
	 	Jeffrey L. Ritenour	
	 	Executive Vice President and Chief Financial Officer	
Date: February 16, 2021

Exhibit 99.1

	 		  	Devon Energy Corporation	
	 		  	333 West Sheridan Avenue	
	 		  	Oklahoma City, OK 73102-5015	
Devon Energy Reports Fourth-Quarter and Full-Year 2020 Financial and Operational Results
OKLAHOMA CITY – Feb. 16, 2021 – Devon Energy Corp. (NYSE: DVN) today reported financial and operational results for the fourth quarter and full year 2020. On Jan. 7, 2021, Devon closed its merger with WPX Energy. Results discussed within this release represent legacy Devon operations and do not include amounts related to WPX unless specified. Supplemental financial tables, pro forma information combining certain Devon and WPX results, and forward-looking guidance are available on the company’s website at www.devonenergy.com.
KEY FINANCIAL AND OPERATIONAL HIGHLIGHTS
 
 	•	 	Board declares industry-first variable dividend of $0.19 per share based on fourth-quarter results	
 
 	•	 	Variable dividend is in addition to previously declared fixed quarterly dividend of $0.11 per share	
 
 	•	 	Pro forma oil production exceeded guidance by 5 percent in the fourth quarter	
 
 	•	 	Well productivity and capital efficiency gains in the Delaware Basin headlined operating results	
 
 	•	 	Production expense improved 14 percent year over year in the fourth quarter	
 
 	•	 	Operating cash flow reached $773 million for the pro forma company in the quarter	
 
 	•	 	Free cash flow generation accelerated to $263 million in the quarter for the pro forma company	
 
 	•	 	Raising full-year 2021 operating and financial outlook	
CEO PERSPECTIVE
“The power of Devon’s portfolio and strategy was clearly evidenced by our strong financial and operating performance in the quarter,” said Rick Muncrief, president and CEO. “The team’s outstanding execution allowed us to capitalize on our enhanced operating scale and improved cost structure to expand margins and accelerate free cash flow generation.”
“With the free cash flow generated in the quarter, I am proud to deliver on our commitment to reward shareholders with increased cash returns by declaring an industry-first variable dividend of $0.19 per share.
“Further adding to the value proposition of Devon is our improved financial and operating outlook for 2021 that lowers breakeven funding levels and positions the company for higher amounts of free cash flow.
“And while the recent uptick in commodity prices is certainly a welcomed change, Devon will remain extremely disciplined,” Muncrief added. “With our capital program, we have no intention of adding growth projects until demand fundamentals recover and worldwide inventory overhangs clear up.”
OPERATING RESULTS
Production from legacy Devon operations averaged 333,000 oil-equivalent barrels (Boe) per day during the fourth quarter. Oil production averaged 156,000 barrels per day, increasing 7 percent compared to the previous quarter. Oil production in the quarter benefited from strong well productivity in the Delaware Basin and better-than-expected base production performance across the portfolio.
Including results from WPX on a pro forma basis, fourth-quarter production averaged 584,000 Boe per day, including oil production of 305,000 barrels per day. This result for the combined company exceeded guidance by approximately 5 percent.
Devon’s upstream capital spending in the fourth quarter was $183 million. This result was in line with guidance and represents a 25 percent decline from the average quarterly spend in 2020. The decrease in capital was attributable to efficiency gains attained in the Delaware Basin, improvements in service-cost pricing and reduced levels of activity required to sustain production. WPX upstream capital was also in line with expectations totaling $283 million in the fourth quarter.
 
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Production expense for Devon totaled $8.86 per unit, a 14 percent improvement year over year. The improved cost structure was driven by lower lease operating expenses resulting from more efficient field-level operations and a decrease in production tax due to lower commodity prices. WPX production expense improved 21 percent on a per-unit basis compared to the year-ago period.
ASSET-LEVEL HIGHLIGHTS
Delaware Basin: Pro forma production averaged 350,000 Boe per day, with oil accounting for 52 percent of the total. This result represents a 38 percent increase in production compared to the fourth quarter of 2019. The combined company averaged running 15 operated drilling rigs in the quarter across its 400,000 net acre position (65 percent non-federal land).
Devon’s development program across its legacy acreage position in Southeast New Mexico brought 23 wells online in the quarter. Initial 30-day production rates from these wells averaged 3,200 Boe per day (70 percent oil). In addition to strong well productivity, completed well costs continued to improve with year-end exit rates averaging around $560 per lateral foot, a 40 percent reduction versus 2018.
In New Mexico, Devon has secured more than 500 federal drilling permits across its acreage position, covering activity for multiple years. This proactive planning has prepared the company for the recent directive from the Department of Interior that suspended leasing, permitting, and right of way approvals for 60 days on federal lands. Devon is engaging and collaborating with policymakers and does not expect any material changes to its activity on federal acreage during this 60-day period or in 2021.
WPX’s fourth quarter activity in the Delaware Basin was focused in its Stateline area. This co-development program targeting the Upper Wolfcamp and Bone Spring benches resulted in 26 new wells online in the quarter. Initial 30-day production rates from this activity outperformed pre-drill expectations, averaging 2,300 Boe per day (61 percent oil). Completed well costs continued to improve, with the average cost for a 2-mile lateral declining to $553 per foot, a 44 percent reduction versus 2018.
Appraisal work on WPX’s Monument Draw acreage also progressed in the quarter with a more aggressive flowback technique applied to four Upper Wolfcamp wells. Early results from this pilot program are encouraging with 30-day production rates for these wells averaging 2,300 Boe per day (76 percent oil).
Williston Basin: Production from this legacy WPX asset averaged 87,000 Boe per day, a 9 percent increase compared the year-ago period. This production growth was driven by 20 completed wells during the quarter, including five wells that were three-mile laterals. The Omaha Woman 24-13-12 HC, a three-mile lateral, achieved the highest 24-hour rate in the quarter exceeding 10,000 Boe per day (80 percent oil).
Powder River Basin: Production averaged 22,000 Boe per day. Capital activity in the fourth quarter continued to progress appraisal and leasehold retention objectives with two new wells in the emerging Niobrara oil play. These appraisal wells averaged 30-day rates of 1,300 Boe per day per well, with oil representing nearly 90 percent of the product mix. The company has more than 300,000 net acres in the oil fairway of the basin prospective for multiple benches.
Eagle Ford: Fourth-quarter production averaged 37,000 Boe per day. Devon and its partner did not pursue any drilling and completion activity during the fourth quarter. The partnership plans to run a two-rig drilling program in 2021 and bring online 22 high-impact wells from its uncompleted inventory during the first half of the year.
Anadarko Basin: Net production averaged 81,000 Boe per day. The company’s operational focus during the quarter was concentrated on optimizing base production and reducing controllable downtime across the field. In 2021, Devon expects to drill up to 30 wells through its $100 million joint venture drilling carry with Dow.
 
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PROVED RESERVES
Devon’s legacy estimated proved reserves were 752 million Boe at year-end 2020, with proved undeveloped reserves accounting for 24 percent of the total. The company’s drilling programs successfully added 135 million Boe of reserves through extensions and discoveries in 2020. The capital costs incurred to deliver these extensions and discoveries totaled $1.0 billion, resulting in an attractive finding and development cost of $7.31 per Boe.
Pro forma proved reserves totaled 1,434 million Boe at year-end 2020, with oil reserves reaching 676 million barrels, or nearly 50 percent of the total.
FINANCIAL SUMMARY
Devon reported a net loss of $102 million, or $0.27 per diluted share, in the fourth quarter of 2020. Adjusting for items analysts typically exclude from estimates, Devon’s core earnings were $0.00 per diluted share.
The company’s operating cash flow, pro forma for the two entities, totaled $773 million in the fourth quarter. This level of cash flow funded all capital requirements and generated $263 million of free cash flow for the combined company.
On Oct. 1, Devon completed the sale of its Barnett Shale assets. The company received a cash payment of $320 million at closing. Devon has the opportunity for contingent cash payments of up to $260 million based upon future commodity prices, with upside participation beginning at either a $2.75 Henry Hub natural gas price or a $50 West Texas Intermediate oil price.
In conjunction with the Barnett closing, Devon paid a $100 million special dividend to shareholders. The special dividend was paid on Oct. 1 in the amount of $0.26 per share.
On a pro forma basis, the company exited the fourth quarter with $2.6 billion of cash and a debt balance of $7.9 billion. Subsequent to year-end, Devon has elected to redeem $43 million of senior notes that were due in 2022, positioning the company with no debt maturities until the second half of 2023.
INDUSTRY-FIRST VARIABLE DIVIDEND DECLARED
In a separate press release issued today, Devon announced its board of directors has declared an industry-first variable cash dividend of $128 million, or $0.19 per share. The variable dividend is in addition to Devon’s previously declared fixed quarterly dividend of $0.11 per share. Both the fixed and variable dividends are payable on Mar. 31, 2021 to shareholders of record at the close of business on Mar. 15, 2021.
UPDATED 2021 OUTLOOK
Due to strong operating results in the Delaware Basin, Devon is raising its full-year 2021 oil production forecast to a range of 280,000 to 300,000 barrels per day. This compares to the company’s preliminary outlook issued last year of greater than 280,000 barrels per day.
Devon expects to deliver this improved 2021 oil production outlook with an upstream capital budget of $1.6 billion to $1.8 billion. The capital program is designed to have the highest capital spend occurring in the first quarter (approximately 30 percent of the total budget) due to the timing of drilling and completion activity across the company’s asset portfolio. After heightened activity in the first-quarter, capital is expected to normalize to lower investment levels throughout the remainder of 2021.
Devon intends to provide detailed first-quarter 2021 guidance once the company can properly access the impact of the extreme winter weather on its field operations. Devon has incorporated weather-related downtime in its 2021 outlook and does not expect the severe winter weather to materially impact its full-year guidance ranges. Due to the timing of the merger closing, reported results will begin to include WPX on Jan. 7, 2021.
Additional details of Devon’s forward-looking guidance are available on the company’s website at www.devonenergy.com.
ENVIRONMENTAL, SOCIAL AND GOVERNANCE
Devon strives to deliver results that balance economic growth, environmental stewardship, strong governance and social responsibility. For access to Devon’s sustainability report, please visit www.devonenergy.com/sustainability. This report highlights the company’s commitment to operating a responsible, safe and ethical business while providing transparent reporting to all stakeholders.
 
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CONFERENCE CALL WEBCAST AND SUPPLEMENTAL EARNINGS MATERIALS
Also provided with today’s release is the company’s detailed earnings presentation that is available on the company’s website at www.devonenergy.com. The company’s fourth-quarter conference call will be held at 9:00 a.m. Central (10:00 a.m. Eastern) on Wednesday, Feb. 17, 2021, and will serve primarily as a forum for analyst and investor questions and answers.
ABOUT DEVON ENERGY
Devon Energy is a leading oil and gas producer in the U.S. with a premier multi-basin portfolio headlined by a world-class acreage position in the Delaware Basin. Devon’s disciplined cash-return business model is designed to achieve strong returns, generate free cash flow and return capital to shareholders, while focusing on safe and sustainable operations. For more information, please visit www.devonenergy.com.

Investor Contacts	  	Media Contact	
Scott Coody, 405-552-4735	  	Lisa Adams, 405-228-1732	
Chris Carr, 405-228-2496	  		
NON-GAAP DISCLOSURES
This press release includes non-GAAP (generally accepted accounting principles) financial measures. Such non-GAAP measures are not alternatives to GAAP measures, and you should not consider these non-GAAP measures in isolation or as a substitute for analysis of results as reported under GAAP. Reconciliations of these non-GAAP measures and other disclosures are provided within the supplemental financial tables that are available on the company’s website and in the related Form 10-K filed with the SEC.
FORWARD LOOKING STATEMENTS
This communication includes “forward-looking statements” within the meaning of the federal securities laws. Such statements include those concerning strategic plans, our expectations and objectives for future operations, as well as other future events or conditions, and are often identified by use of the words and phrases “expects,” “believes,” “will,” “would,” “could,” “continue,” “may,” “aims,” “likely to be,” “intends,” “forecasts,” “projections,” “estimates,” “plans,” “expectations,” “targets,” “opportunities,” “potential,” “anticipates,” “outlook” and other similar terminology. All statements, other than statements of historical facts, included in this communication that address activities, events or developments that Devon expects, believes or anticipates will or may occur in the future are forward-looking statements. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond our control. Consequently, actual future results could differ materially and adversely from our expectations due to a number of factors, including, but not limited to: the volatility of oil, gas and NGL prices; risks relating to the COVID-19 pandemic or other future pandemics; uncertainties inherent in estimating oil, gas and NGL reserves; the extent to which we are successful in acquiring and discovering additional reserves; the uncertainties, costs and risks involved in our operations, including as a result of employee misconduct; regulatory restrictions, compliance costs and other risks relating to governmental regulation, including with respect to environmental matters; risks related to regulatory, social and market efforts to address climate change; risks related to our hedging activities; counterparty credit risks; risks relating to our indebtedness; cyberattack risks; our limited control over third parties who operate some of our oil and gas properties; midstream capacity constraints and potential interruptions in production; the extent to which insurance covers any losses we may experience; competition for assets, materials, people and capital; risks related to investors attempting to effect change; our ability to successfully complete mergers, acquisitions and divestitures; risks related to the recent merger with WPX, including the risk that we may not realize the anticipated benefits of the merger or successfully integrate the two legacy businesses; and any of the other risks and uncertainties discussed in Devon’s 2020 Annual Report on Form 10-K (the “2020 Form 10-K”) or other SEC filings.
The forward-looking statements included in this communication speak only as of the date of this communication, represent current reasonable management’s expectations as of the date of this communication and are subject to the risks and uncertainties identified above as well as those described in the 2020 Form 10-K and in other documents we file from time to time with the SEC. We cannot guarantee the accuracy of our forward-looking statements, and readers are urged to carefully review and consider the various disclosures made in the 2020 Form 10-K and in other documents we file from time to time with the SEC. All subsequent written and oral forward-looking statements attributable to Devon, or persons acting on its behalf, are expressly qualified in their entirety by the cautionary statements above. We do not undertake, and expressly disclaim, any duty to update or revise our forward-looking statements based on new information, future events or otherwise.
 
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February 16, 2021 Q4 2020 Earnings Presentation Exhibit 99.2

Key Takeaways From Our Presentation DELAWARE BASIN DRIVES Q4 OPERATING PERFORMANCE Favorable to guidance on all production & operating costs FREE CASH FLOW GENERATION ACCELERATES Cost discipline & efficiency gains drive margin expansion BALANCE SHEET CONTINUES TO STRENGTHEN Cash balance increases by ~$500 million in fourth quarter IMPROVED OPERATIONAL & FINANCIAL OUTLOOK FOR 2021 Efficiencies drive lower breakeven funding & higher free cash flow INDUSTRY-FIRST VARIABLE DIVIDEND DECLARED $0.19 per share variable dividend declared with Q4 results #1 #2 #3 #4 #5 Note: All amounts are pro forma and represent the combined results for Devon and WPX. See pg. 20 for additional details.

Creates A Leading U.S. Energy Company pro forma attributes POWDER RIVER BASIN ANADARKO BASIN EAGLE FORD 81 MBOED 37 MBOED 22 MBOED WILLISTON BASIN 87 MBOED BUILDS DOMINANT DELAWARE BASIN POSITION 400,000 net acres in economic core of the play Stacked-pay provides multi-decade inventory opportunity ACCELERATES CASH-RETURN BUSINESS MODEL Prioritizes free cash flow generation over production growth Implements “fixed plus variable” dividend strategy MAINTAINS INVESTMENT-GRADE FINANCIAL STRENGTH Excellent liquidity position: $5.6 billion (at 12/31/2020) Minimal near-term debt maturities $ DELAWARE BASIN 350 MBOED CREATES VALUE THROUGH COST SYNERGIES Combines the best capabilities of both organizations $575 million in annual savings by year-end 2021 + TRANSACTION CLOSED JANUARY 7, 2021 Note: All amounts are pro forma and represent the combined results for Devon and WPX. See pgs. 7 & 20 for additional details.

Our Disciplined Cash-Return Business Model PROGRESSIVE GROWTH STRATEGY disciplined oil growth targets: up to 5% annually Growing margins through operational & corporate cost reductions REDUCED REINVESTMENT RATES Targeting reinvestment rates of 70%-80% of operating cash flow Disciplined returns-driven strategy to generate higher free cash flow MAINTAIN LOW LEVERAGE Targeted net debt-to-EBITDAX ratio: ~1.0x Strong liquidity & disciplined hedging enhance financial strength PRIORITIZE CASH RETURNS Deploying free cash flow to dividends and debt reduction Innovative “fixed plus variable” dividend strategy (pg. 12) PURSUE ESG EXCELLENCE Performance critical to long-term success of the company ESG initiatives incorporated into compensation structure “Our cash-return business model is designed to moderate growth, emphasize capital efficiencies, maximize returns and prioritize the return of increasing amounts of cash to shareholders. These principles will position Devon to be a prominent and consistent builder of economic value through the cycle.” − Rick Muncrief, President & CEO COMMITMENT RUNS DEEP

Q4 2020 – Executing on Our Disciplined Strategy Field-level costs significantly decline Pro forma LOE & GP&T per BOE $8.43 $7.57 Oil production exceeds guidance Pro forma oil production (MBOD) ~290 Capital discipline drives free cash flow Pro forma free cash flow ($ in millions) 10% SINCE Q1 2020 IMPROVEMENT $263 MILLION DELIVERING ON DISCIPLINED STRATEGY FREE CASH FLOW ACCELERATES 305 +5% ABOVE MIDPOINT Note: All amounts are pro forma and represent the combined results for Devon and WPX. See pg. 20 for additional details. board declares industry-first variable dividend (SEE PAGE 6 FOR DETAILS) DECLARED DIVIDEND VARIABLE (1) Free cash flow is defined as operating cash flow ($773 million) less cash capital expenditures ($510 million). (1)

Accelerating Cash Returns to Shareholders 28 consecutive years of returning cash to shareholders ($ per share) $0.24 $128 MILLION ($0.19 PER SHARE) 48% OF Q4 EXCESS FREE CASH FLOW PAID WITH FIXED QUARTERLY DIVIDEND PAYABLE ON MARCH 31, 2021 INDUSTRY-FIRST VARIABLE DIVIDEND SPECIAL DIVIDEND PAID ON OCT. 1, 2020 WITH BARNETT CLOSING DECLARED DIVIDEND VARIABLE Note: All amounts are pro forma and represent the combined results for Devon and WPX. See pg. 20 for additional details. $0.30 $0.35 $0.68 FOR VARIABLE DIVIDEND CALCULATION (SEE PG. 21 FOR DETAILS) Special Dividend Fixed Quarterly Dividend Variable Dividend (BASED ON PRO FORMA Q4 FINANCIAL RESULTS)

Improving Investment-Grade Financial Strength $5,600 Cash Credit Facility $2,600 $3,000 MINIMAL NEAR-TERM DEBT MATURITIES SIGNIFICANT FINANCIAL FLEXIBILITY ~$500 MM Q4 CASH BUILD OUTSTANDING LIQUIDITY POSITION $5.6B INCLUDES CASH & CREDIT FACILITY COMMITTED TO LOWERING LEVERAGE 1.0x NET DEBT TO EBITDAX TARGET DEBT REDUCTION EFFORTS PROGRESSING $1.5B AUTHORIZED PROGRAM REDEEMED IN Q1 2021 POTENTIAL TO CALL IN Q2 2021 Note: All amounts are pro forma and represent the combined results for Devon and WPX. Notes due in 2027 and 2028 are callable in Q3 2022 and Q2 2023, respectively, ~ (1) Notes were redeemed in February 2021 with cash on hand. (2) Devon has the potential to fully redeem the 2026 notes once bonds become callable in Q2 2021. (1) (2) PRO FORMA OUTSTANDING DEBT MATURITIES THROUGH 2030

$200 MILLION Capturing $575 Million in Annual Cost Savings GENERAL & ADMINISTRATIVE $100 MILLION D&C EFFICIENCIES $75 MILLION OPERATING MARGIN IMPROVEMENTS SAVINGS CAPTURED SAVINGS IDENTIFIED $200 MILLION FINANCING COSTS 70% ANNUAL COST SAVINGS $575 COST SAVINGS BY YE 2021 MILLION SAVINGS CAPTURED SAVINGS IDENTIFIED 60% 40% 50% On track to achieve cost synergies by year-end 2021 Targeted annual cost savings by area ($MM) (1) Includes benefits of cost savings captured in the second half of 2020 from legacy Devon operations. (2) Represents annualized interest savings from the $43 mm of debt redeemed in Q1 2021 and $500 mm of notes callable in Q2 2021. (2) (1) (1) 40% 70%

Committed to Top-Tier ESG Performance HIGHLY-REGARDED ESG RATINGS & RECOGNITION ENVIRONMENT SOCIAL & SAFETY GOVERNANCE Achieved methane intensity reduction target of 0.28% ahead of plan Lowered GHG emissions intensity rate 19% year over year Water recycling has increased nearly 300% since 2017 Fostering inclusion & diversity with our employees and community partners Permian Strategic Partnership provided $30 million to communities last year Safety & incident rate performance consistently above industry average ESG incorporated in compensation structure (including safety & emissions metrics) Board-level oversight of ESG goal-setting, performance & outreach Committed to diverse, independent, experienced and highly-skilled board Note: Amounts represent legacy Devon results. For additional information please refer to Devon’s Sustainability Report & Climate Change Assessment Report

Asset Overview 2021 Outlook

Committed to Maintenance Capital in 2021 OIL PRODUCTION (MBOD) BREAKEVEN FUNDING LEVEL 280-300 $32 OPERATING CASH FLOW ~$3.0B WTI PRICE UPSTREAM CAPITAL INVESTMENT $ $1.6-1.8 B Operations scaled to lower breakeven funding 2021e outlook Note: Free cash flow represents operating cash flow less total capital requirements. Assumes a constant service & material cost environment. $40 WTI $50 WTI Free cash flow provides attractive investment opportunity 2021e free cash flow sensitivities $60 WTI 4% FREE CASH FLOW YIELD 8% FREE CASH FLOW YIELD 13% FREE CASH FLOW YIELD Free Cash Flow Free Cash Flow Yield Free Cash Flow Yield Free Cash Flow ($B) BREAKEVEN PRICING SCENARIO $32 WTI Operating cash flow is based on 2021 guidance. Assumes $2.75 Henry Hub & NGL realizations at ~30% of WTI. @ $50 WTI PREVIOUSLY: >280 MBOD PREVIOUSLY: $33 ~80% ALLOCATED TO DELAWARE BASIN (1)

Free Cash Flow Priorities STEP 1: VARIABLE DIVIDEND CALCULATION Adjusted Cash Flow (Non-GAAP) − Capital Expenditures (Accrued) Adjusted Free Cash Flow − Fixed Quarterly Dividend Excess Free Cash Flow × Up to 50% Payout (Board Discretion) Variable Dividend STEP 2: PAID QUARTERLY IF BELOW CRITERIA MET Cash Balance: >$500 million Strong Balance Sheet & Leverage Ratios Constructive Commodity Price Outlook FIXED DIVIDEND Paid quarterly at $0.11 per share Target payout: up to 10% of cash flow VARIABLE DIVIDEND Calculated on a quarterly basis Up to 50% of excess free cash flow DEBT REDUCTION PROGRAM Net debt-to-EBITDAX target : ~1.0x $1.5 billion reduction program underway SHARE REPURCHASES Potential for opportunistic share repurchases VARIABLE DIVIDEND STRATEGY CALCULATED ON A QUARTERLY BASIS Note: Adjusted cash flow represents operating cash flow before balance sheet changes.

Asset Overview Operations Update

Delaware Basin – Our Capital-Efficient Growth Engine New Mexico Texas Loving Ward Reeves Winkler Eddy Note: All amounts are pro forma and represent the combined results for Devon and WPX. See pg. 20 for additional details. Lea Q4 ACTIVITY DELIVERING TOP-TIER RESULTS Operating efficiencies accelerating (pgs. 15-16) Midstream infrastructure drives sustainable savings DIVERSIFIED ACREAGE POSITION 65% of leasehold resides on non-federal land 4-year federal permit inventory (~500 permits) Minimal impact from 60-day Dept. of Interior order WORLD-CLASS OIL OPPORTUNITY Stacked pay position across 400,000 net acres Multi-decade inventory opportunity DELAWARE PRODUCTION PROFILE 350 MBOED Q4 2020

Delaware Basin – Legacy Devon Results LEGACY DVN DELAWARE ACREAGE POSITION Best-in-class capital efficiencies Drilling and completion costs per foot (excludes facilities) $940 $846 $664 $564 40% SINCE 2018 IMPROVEMENT Outstanding Q4 execution Key operating results HIGH-MARGIN OIL GROWTH +41% OPERATED WELLS BROUGHT ONLINE 23 WELLS VS. 2019 AVG. IP30 WELL PERFORMANCE 3,200 BOED/WELL OIL MIX: 70% Achieving record well productivity Average cumulative 12-month oil production per foot, MBO 2017 2018 2019 2020 Source: BMO Capital Markets, Enverus

Delaware Basin – Legacy WPX Results $983 $774 $685 $553 Drilled & completed cost per foot (excludes allocation of facility costs) Cathedral & Bridal Veil Flowback pilot on 4 wells Avg. IP30: 2,300 BOED/well testing MORE AGGRESSIVE flowback methodology 26 Wells Online Bone Spring & Wolfcamp focus Avg. IP30: 2,300 BOED/well STATELINE AREA DRIVES Q4 PERFROMANCE STATELINE MONUMENT DRAW LEGACY WPX DELAWARE ACREAGE POSITION Executing on Stateline development program Q4 activity outperforms type curve expectations Development focus driving improved capital efficiency (see chart) Monument Draw development activity progressing Testing spacing & more aggressive flowback to optimize IRR Initial results indicate economics competitive with Stateline area 44% SINCE 2018 REDUCTION

Great Positions in Top-Tier U.S. Basins WILLISTON BASIN POWDER RIVER BASIN DIVERSIFIED ACROSS TOP RESOURCE PLAYS ANADARKO BASIN High-margin oil resource in economic core of the play Diversified takeaway optionality to optimize pricing Expect to commence 1st production on 15-20 wells in 2021 Expect to bring online 22 high-impact DUCs in 1H 2021 Partnership expects to average 2 rig lines during the year Redevelopment activity extends inventory runway Liquids-rich play focused on maximizing free cash flow Commencing Dow JV drilling program in 2021 (25-30 spuds) 2021 operating costs to benefit from expiration of MVCs EAGLE FORD (400,000 NET ACRES) (85,000 NET ACRES) (40,000 NET ACRES) (>300,000 NET ACRES) Emerging oil opportunity with stacked-pay potential Niobrara appraisal de-risking scalable resource upside Expect to bring online 15-20 operated wells in 2021 POWDER RIVER BASIN ANADARKO BASIN EAGLE FORD $204 Million (TTM) $229 Million (TTM) $159 Million (TTM) WILLISTON BASIN $406 Million (TTM) CASH FLOW GENERATION $1.0 Billion (TRAILING 12-MONTHS AS OF Q4 2020) (1) Represents field-level cash flow before G&A and taxes. Note: All amounts are pro forma and represent the combined results for Devon and WPX. See pg. 20 for additional details.

2021 Operating Outlook Driving per-unit costs lower Capital efficient 2021 program 2021e capital activity UPSTREAM CAPITAL BUDGET $1.6-$1.8 AVERAGE DRILLING RIGS BILLION EXPECTED WELLS ONLINE 18 13 IN DELAWARE Delaware focused capital program Upstream capital (in billions) 340-360 OPERATED WELLS ALLOCATED TO DELAWARE BASIN 80% DELAWARE BASIN OTHER KEY ASSETS ~ $1.6-$1.8 B 2021e Capital Budget advantaged multi-basin asset portfolio $8.22 8% vs. 2019 IMPROVEMENT $7.94 LOE PER BOE GP&T PER BOE $7.60

Asset Overview Appendix

Q4 2020 – Pro Forma Operational & Financial Results Key Metrics ($ IN MILLIONS) Legacy Devon Legacy WPX Pro Forma Oil Production (MBOD) 156 149 305 Total Production (MBOED) 333 251 584 LOE & GP&T (PER BOE) $7.21 $8.05 $7.57 General & Administrative $82 $62 $144 Net Financing Costs $71 $48 $119 Operating Cash Flow (GAAP) $358 $415 $773 Total Cash Capital $217 $293 $510 Free Cash Flow (NON-GAAP) $141 $122 $263 Cash, Cash Equivalents & Restricted Cash $2,237 $356 $2,593 Total Debt $4,298 $3,564 $7,862 Proved Reserves (MMBOE) 752 682 1,434

Q4 2020 – Variable Dividend Calculation VARIABLE DIVIDEND CALCULATION $795 MM – Adjusted Cash Flow (Non-GAAP) − $486 MM – Capital Expenditures (Accrued) $309 MM – Adjusted Free Cash Flow (Non-GAAP) − $42 MM – Fixed Quarterly Dividend ($0.11/share) $267 MM – Excess Free Cash Flow × 48% Payout (Board Discretion: Up to 50%) $128 MM – Variable Dividend ($0.19/share) VARIABLE DIVIDEND DISTRIBUTION DETAILS PAYABLE on March 31, 2021 SHAREHOLDERS of record on March 15, 2021 industry-first variable distribution declared Note: Adjusted cash flow represents pro forma operating cash flow ($773 million) before pro forma balance sheet changes (-$22 million). See Devon’s fourth-quarter 2020 earnings materials for more details regarding the variable dividend calculation.

Pro Forma Outstanding Debt Maturities $5,600 Cash Credit Facility $2,600 Strong liquidity with minimal near-term debt maturities Pro forma outstanding debt maturities as 12/31/20 ($MM) $3,000 REDEEMED IN Q1 2021 (1) POTENTIALTO CALL IN Q2 2021 (2) Note: All amounts are pro forma and represent the combined results for Devon and WPX. Notes due in 2027 and 2028 are callable in Q3 2022 and Q2 2023, respectively, (1) Notes were redeemed in February 2021 with cash on hand. (2) Devon has the potential to fully redeem the 2026 notes once bonds become callable in Q2 2021. >50% OF OUTSTANDING DEBT MATURES AFTER 2030

Investor Contacts & Notices Forward-Looking Statements This communication includes “forward-looking statements” within the meaning of the federal securities laws. Such statements include those concerning strategic plans, our expectations and objectives for future operations, as well as other future events or conditions, and are often identified by use of the words and phrases “expects,” “believes,” “will,” “would,” “could,” “continue,” “may,” “aims,” “likely to be,” “intends,” “forecasts,” “projections,” “estimates,” “plans,” “expectations,” “targets,” “opportunities,” “potential,” “anticipates,” “outlook” and other similar terminology. All statements, other than statements of historical facts, included in this communication that address activities, events or developments that Devon expects, believes or anticipates will or may occur in the future are forward-looking statements. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond our control. Consequently, actual future results could differ materially and adversely from our expectations due to a number of factors, including, but not limited to: the volatility of oil, gas and NGL prices; risks relating to the COVID-19 pandemic or other future pandemics; uncertainties inherent in estimating oil, gas and NGL reserves; the extent to which we are successful in acquiring and discovering additional reserves; the uncertainties, costs and risks involved in our operations, including as a result of employee misconduct; regulatory Investor Notices restrictions, compliance costs and other risks relating to governmental regulation, including with respect to environmental matters; risks related to regulatory, social and market efforts to address climate change; risks related to our hedging activities; counterparty credit risks; risks relating to our indebtedness; cyberattack risks; our limited control over third parties who operate some of our oil and gas properties; midstream capacity constraints and potential interruptions in production; the extent to which insurance covers any losses we may experience; competition for assets, materials, people and capital; risks related to investors attempting to effect change; our ability to successfully complete mergers, acquisitions and divestitures; risks related to the recent merger with WPX, including the risk that we may not realize the anticipated benefits of the merger or successfully integrate the two legacy businesses; and any of the other risks and uncertainties discussed in Devon’s 2020 Annual Report on Form 10-K (the “2020 Form 10-K”) or other SEC filings. The forward-looking statements included in this communication speak only as of the date of this communication, represent current reasonable management’s expectations as of the date of this communication and are subject to the risks and uncertainties identified above as well as those described in the 2020 Form 10-K and in other documents we file from time to time with the SEC. We cannot guarantee the accuracy of our forward-looking statements, and readers are urged to carefully review and consider the various disclosures made in the 2020 Form 10-K and in other documents we file from time to time with the SEC. All subsequent written and oral forward-looking statements attributable to Devon, or persons acting on its behalf, are expressly qualified in their entirety by the cautionary statements above. We do not undertake, and expressly disclaim, any duty to update or revise our forward-looking statements based on new information, future events or otherwise. Use of Non-GAAP Information This presentation may include non-GAAP (generally accepted accounting principles) financial measures. Such non-GAAP measures are not alternatives to GAAP measures, and you should not consider these non-GAAP measures in isolation or as a substitute for analysis of our results as reported under GAAP. For additional disclosure regarding such non-GAAP measures, including reconciliations to their most directly comparable GAAP measure, please refer to Devon’s fourth-quarter 2020 earnings materials and related Form 10-K filed with the SEC. Investor Relations Contacts Scott CoodyChris Carr VP, Investor RelationsManager, Investor Relations 405-552-4735405-228-2496 Email: investor.relations@dvn.com

Exhibit 99.3

Devon Energy Fourth-Quarter 2020
Supplemental Tables

TABLE OF CONTENTS:	  	PAGE:	 	
		
Devon Energy	  				
Income Statement	  	 	2	 	
Cash Flow Statement	  	 	3	 	
Balance Sheet	  	 	4	 	
Production by Asset	  	 	5	 	
Capital, Costs Incurred and Reserves Reconciliation	  	 	6	 	
Well Activity by Asset	  	 	7	 	
Realized Price by Asset	  	 	8	 	
Per-Unit Cash Margin by Asset	  	 	9	 	
Non-GAAP Core Earnings (Loss)	  	 	10	 	
Non-GAAP Measures	  	 	11-12	 	
WPX	  				
Production by Asset and Capital	  	 	13	 	
Pro Forma Key Metrics	  				
Q4 2020 Pro Forma Financials	  	 	14	 	

DEVON ENERGY FINANCIAL INFORMATION

CONSOLIDATED STATEMENTS OF EARNINGS (LEGACY DEVON)	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
(in millions, except per share amounts)	  	2020	 	 	2019	 	
 	  	Quarter 4	 	 	Quarter 3	 	 	Quarter 2	 	 	Quarter 1	 	 	Quarter 4	 	
Oil, gas and NGL sales	  	$	786	 	 	$	678	 	 	$	424	 	 	$	807	 	 	$	1,035	 	
Oil, gas and NGL derivatives (1)	  	 	(117	) 	 	 	(87	) 	 	 	(361	) 	 	 	720	 	 	 	(116	) 	
Marketing and midstream revenues	  	 	611	 	 	 	476	 	 	 	331	 	 	 	560	 	 	 	670	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total revenues	  	 	1,280	 	 	 	1,067	 	 	 	394	 	 	 	2,087	 	 	 	1,589	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Production expenses (2)	  	 	271	 	 	 	271	 	 	 	263	 	 	 	318	 	 	 	324	 	
Exploration expenses	  	 	4	 	 	 	39	 	 	 	12	 	 	 	112	 	 	 	29	 	
Marketing and midstream expenses	  	 	618	 	 	 	478	 	 	 	339	 	 	 	578	 	 	 	665	 	
Depreciation, depletion and amortization	  	 	301	 	 	 	299	 	 	 	299	 	 	 	401	 	 	 	382	 	
Asset impairments	  	 	27	 	 	 	—  	 	 	 	—  	 	 	 	2,666	 	 	 	—  	 	
Asset dispositions	  	 	(1	) 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	
General and administrative expenses	  	 	82	 	 	 	75	 	 	 	79	 	 	 	102	 	 	 	119	 	
Financing costs, net	  	 	70	 	 	 	66	 	 	 	69	 	 	 	65	 	 	 	64	 	
Restructuring and transaction costs	  	 	17	 	 	 	32	 	 	 	—  	 	 	 	—  	 	 	 	11	 	
Other, net	  	 	1	 	 	 	—  	 	 	 	13	 	 	 	(48	) 	 	 	16	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total expenses	  	 	1,390	 	 	 	1,260	 	 	 	1,074	 	 	 	4,194	 	 	 	1,610	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Loss from continuing operations before income taxes	  	 	(110	) 	 	 	(193	) 	 	 	(680	) 	 	 	(2,107	) 	 	 	(21	) 	
Income tax benefit	  	 	(37	) 	 	 	(90	) 	 	 	(3	) 	 	 	(417	) 	 	 	(33	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net earnings (loss) from continuing operations	  	 	(73	) 	 	 	(103	) 	 	 	(677	) 	 	 	(1,690	) 	 	 	12	 	
Net earnings (loss) from discontinued operations, net of taxes	  	 	(25	) 	 	 	13	 	 	 	9	 	 	 	(125	) 	 	 	(652	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net loss	  	 	(98	) 	 	 	(90	) 	 	 	(668	) 	 	 	(1,815	) 	 	 	(640	) 	
Net earnings attributable to noncontrolling interests	  	 	4	 	 	 	2	 	 	 	2	 	 	 	1	 	 	 	2	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net loss attributable to Devon	  	$	(102	) 	 	$	(92	) 	 	$	(670	) 	 	$	(1,816	) 	 	$	(642	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Basic and Diluted earnings (loss) per share:	  				 				 				 				 				
Continuing operations	  	$	(0.20	) 	 	$	(0.29	) 	 	$	(1.80	) 	 	$	(4.48	) 	 	$	0.03	 	
Discontinued operations	  	 	(0.07	) 	 	 	0.04	 	 	 	0.02	 	 	 	(0.34	) 	 	 	(1.73	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Basic net loss per share	  	$	(0.27	) 	 	$	(0.25	) 	 	$	(1.78	) 	 	$	(4.82	) 	 	$	(1.70	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Weighted average common shares outstanding:	  				 				 				 				 				
Basic	  	 	383	 	 	 	383	 	 	 	383	 	 	 	383	 	 	 	383	 	
Diluted	  	 	383	 	 	 	383	 	 	 	383	 	 	 	383	 	 	 	385	 	

(1) OIL, GAS AND NGL DERIVATIVES	  	 	 	 	 	 	 	 	 	 	 	 	  	 	 	
 (in millions)	  	2020	 	  	2019	 	
 	  	Quarter 4	 	 	Quarter 3	 	 	Quarter 2	 	 	Quarter 1	 	  	Quarter 4	 	
Derivative cash settlements	  	$	(27	) 	 	$	10	 	 	$	232	 	 	$	101	 	  	$	42	 	
Derivative valuation changes	  	 	(90	) 	 	 	(97	) 	 	 	(593	) 	 	 	619	 	  	 	(158	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	  	 	 	 	
Oil, gas and NGL derivatives	  	$	(117	) 	 	$	(87	) 	 	$	(361	) 	 	$	720	 	  	$	(116	) 	

																					
(2) PRODUCTION EXPENSES	  	 	 	  	 	 	  	 	 	  	 	 	  	 	 	
 (in millions)	  	2020	 	  	2019	 	
 	  	Quarter 4	 	  	Quarter 3	 	  	Quarter 2	 	  	Quarter 1	 	  	Quarter 4	 	
Lease operating expense	  	$	91	 	  	$	100	 	  	$	108	 	  	$	126	 	  	$	120	 	
Gathering, processing & transportation	  	 	130	 	  	 	125	 	  	 	123	 	  	 	130	 	  	 	131	 	
Production taxes	  	 	47	 	  	 	42	 	  	 	25	 	  	 	56	 	  	 	69	 	
Property taxes	  	 	3	 	  	 	4	 	  	 	7	 	  	 	6	 	  	 	4	 	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Production expenses	  	$	271	 	  	$	271	 	  	$	263	 	  	$	318	 	  	$	324	 	

2

CONSOLIDATED STATEMENTS OF CASH FLOWS (LEGACY DEVON)
																					
(in millions)	  	2020	 	 	2019	 	
 	  	Quarter 4	 	 	Quarter 3	 	 	Quarter 2	 	 	Quarter 1	 	 	Quarter 4	 	
Cash flows from operating activities:	  				 				 				 				 				
Net loss	  	$	(98	) 	 	$	(90	) 	 	$	(668	) 	 	$	(1,815	) 	 	$	(640	) 	
Adjustments to reconcile net loss to net cash from operating activities:	  				 				 				 				 				
Net (earnings) loss from discontinued operations, net of income taxes	  	 	25	 	 	 	(13	) 	 	 	(9	) 	 	 	125	 	 	 	652	 	
Depreciation, depletion and amortization	  	 	301	 	 	 	299	 	 	 	299	 	 	 	401	 	 	 	382	 	
Asset impairments	  	 	27	 	 	 	—  	 	 	 	—  	 	 	 	2,666	 	 	 	—  	 	
Leasehold impairments	  	 	3	 	 	 	36	 	 	 	3	 	 	 	110	 	 	 	3	 	
Accretion on discounted liabilities	  	 	8	 	 	 	8	 	 	 	8	 	 	 	8	 	 	 	8	 	
Total (gains) losses on commodity derivatives	  	 	117	 	 	 	87	 	 	 	361	 	 	 	(720	) 	 	 	116	 	
Cash settlements on commodity derivatives	  	 	(27	) 	 	 	10	 	 	 	232	 	 	 	101	 	 	 	41	 	
Gains on asset dispositions	  	 	(1	) 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	
Deferred income tax benefit	  	 	(17	) 	 	 	—  	 	 	 	—  	 	 	 	(311	) 	 	 	(27	) 	
Share-based compensation	  	 	18	 	 	 	31	 	 	 	19	 	 	 	20	 	 	 	23	 	
Other	  	 	—  	 	 	 	1	 	 	 	4	 	 	 	—  	 	 	 	2	 	
Changes in assets and liabilities, net	  	 	2	 	 	 	58	 	 	 	(99	) 	 	 	(56	) 	 	 	18	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net cash from operating activities - continuing operations	  	 	358	 	 	 	427	 	 	 	150	 	 	 	529	 	 	 	578	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Cash flows from investing activities:	  				 				 				 				 				
Capital expenditures	  	 	(217	) 	 	 	(204	) 	 	 	(307	) 	 	 	(425	) 	 	 	(408	) 	
Acquisitions of property and equipment	  	 	(3	) 	 	 	—  	 	 	 	(1	) 	 	 	(4	) 	 	 	(3	) 	
Divestitures of property and equipment	  	 	5	 	 	 	1	 	 	 	3	 	 	 	25	 	 	 	43	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net cash from investing activities - continuing operations	  	 	(215	) 	 	 	(203	) 	 	 	(305	) 	 	 	(404	) 	 	 	(368	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Cash flows from financing activities:	  				 				 				 				 				
Repurchases of common stock	  	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	(38	) 	 	 	(103	) 	
Dividends paid on common stock	  	 	(138	) 	 	 	(43	) 	 	 	(42	) 	 	 	(34	) 	 	 	(34	) 	
Contributions from noncontrolling interests	  	 	9	 	 	 	1	 	 	 	6	 	 	 	5	 	 	 	116	 	
Distributions to noncontrolling interest	  	 	(4	) 	 	 	(4	) 	 	 	(3	) 	 	 	(3	) 	 	 	—  	 	
Shares exchanged for tax withholdings and other	  	 	(1	) 	 	 	—  	 	 	 	—  	 	 	 	(17	) 	 	 	(2	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net cash from financing activities - continuing operations	  	 	(134	) 	 	 	(46	) 	 	 	(39	) 	 	 	(87	) 	 	 	(23	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net change in cash, cash equivalents and restricted cash of continuing operations	  	 	9	 	 	 	178	 	 	 	(194	) 	 	 	38	 	 	 	187	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Cash flows from discontinued operations:	  				 				 				 				 				
Operating activities	  	 	19	 	 	 	45	 	 	 	(43	) 	 	 	(131	) 	 	 	(9	) 	
Investing activities	  	 	310	 	 	 	1	 	 	 	171	 	 	 	(1	) 	 	 	—  	 	
Financing activities	  	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	
Effect of exchange rate changes on cash	  	 	2	 	 	 	4	 	 	 	8	 	 	 	(23	) 	 	 	10	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net change in cash, cash equivalents and restricted cash of discontinued operations	  	 	331	 	 	 	50	 	 	 	136	 	 	 	(155	) 	 	 	1	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net change in cash, cash equivalents and restricted cash	  	 	340	 	 	 	228	 	 	 	(58	) 	 	 	(117	) 	 	 	188	 	
Cash, cash equivalents and restricted cash at beginning of period	  	 	1,897	 	 	 	1,669	 	 	 	1,727	 	 	 	1,844	 	 	 	1,656	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Cash, cash equivalents and restricted cash at end of period	  	$	2,237	 	 	$	1,897	 	 	$	1,669	 	 	$	1,727	 	 	$	1,844	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Reconciliation of cash, cash equivalents and restricted cash:	  				 				 				 				 				
Cash, cash equivalents and restricted cash	  	$	2,047	 	 	$	1,707	 	 	$	1,474	 	 	$	1,527	 	 	$	1,464	 	
Restricted cash	  	 	190	 	 	 	190	 	 	 	195	 	 	 	200	 	 	 	380	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total cash, cash equivalents and restricted cash	  	$	2,237	 	 	$	1,897	 	 	$	1,669	 	 	$	1,727	 	 	$	1,844	 	

3

CONSOLIDATED BALANCE SHEETS (LEGACY DEVON)
									
(in millions)	  	December 31,
2020	 	 	December 31,
2019	 	
Current assets:	  				 				
Cash, cash equivalents and restricted cash	  	$	2,237	 	 	$	1,844	 	
Accounts receivable	  	 	601	 	 	 	832	 	
Current assets associated with discontinued operations	  	 	—  	 	 	 	896	 	
Income tax receivable	  	 	174	 	 	 	47	 	
Other current assets	  	 	248	 	 	 	232	 	
	  	 	 	 	 	 	 	 	
Total current assets	  	 	3,260	 	 	 	3,851	 	
Oil and gas property and equipment, based on successful efforts accounting, net	  	 	4,436	 	 	 	7,558	 	
Other property and equipment, net	  	 	957	 	 	 	1,035	 	
	  	 	 	 	 	 	 	 	
Total property and equipment, net	  	 	5,393	 	 	 	8,593	 	
Goodwill	  	 	753	 	 	 	753	 	
Right-of-use assets	  	 	223	 	 	 	243	 	
Other long-term assets	  	 	283	 	 	 	196	 	
Long-term assets associated with discontinued operations	  	 	—  	 	 	 	81	 	
	  	 	 	 	 	 	 	 	
Total assets	  	$	9,912	 	 	$	13,717	 	
	  	 	 	 	 	 	 	 	
Current liabilities:	  				 				
Accounts payable	  	$	242	 	 	$	428	 	
Revenues and royalties payable	  	 	662	 	 	 	730	 	
Current liabilities associated with discontinued operations	  	 	—  	 	 	 	459	 	
Other current liabilities	  	 	536	 	 	 	310	 	
	  	 	 	 	 	 	 	 	
Total current liabilities	  	 	1,440	 	 	 	1,927	 	
	  	 	 	 	 	 	 	 	
Long-term debt	  	 	4,298	 	 	 	4,294	 	
Lease liabilities	  	 	246	 	 	 	244	 	
Asset retirement obligations	  	 	358	 	 	 	380	 	
Other long-term liabilities	  	 	551	 	 	 	426	 	
Long-term liabilities associated with discontinued operations	  	 	—  	 	 	 	185	 	
Deferred income taxes	  	 	—  	 	 	 	341	 	
Stockholders’ equity:	  				 				
Common stock	  	 	38	 	 	 	38	 	
Additional paid-in capital	  	 	2,766	 	 	 	2,735	 	
Retained earnings	  	 	208	 	 	 	3,148	 	
Accumulated other comprehensive loss	  	 	(127	) 	 	 	(119	) 	
	  	 	 	 	 	 	 	 	
Total stockholders’ equity attributable to Devon	  	 	2,885	 	 	 	5,802	 	
Noncontrolling interests	  	 	134	 	 	 	118	 	
	  	 	 	 	 	 	 	 	
Total equity	  	 	3,019	 	 	 	5,920	 	
	  	 	 	 	 	 	 	 	
Total liabilities and equity	  	$	9,912	 	 	$	13,717	 	
	  	 	 	 	 	 	 	 	
Common shares outstanding	  	 	382	 	 	 	382	 	
 
4

PRODUCTION TREND (LEGACY DEVON)

 	  	2020	 	  	2019	 	
 	  	Quarter 4	 	  	Quarter 3	 	  	Quarter 2	 	  	Quarter 1	 	  	Quarter 4	 	
Oil (MBbls/d)	  				  				  				  				  				
Delaware Basin	  	 	99	 	  	 	77	 	  	 	79	 	  	 	84	 	  	 	84	 	
Powder River Basin	  	 	16	 	  	 	21	 	  	 	18	 	  	 	21	 	  	 	20	 	
Eagle Ford	  	 	18	 	  	 	22	 	  	 	27	 	  	 	26	 	  	 	23	 	
Anadarko Basin	  	 	16	 	  	 	19	 	  	 	21	 	  	 	24	 	  	 	27	 	
Other	  	 	7	 	  	 	7	 	  	 	8	 	  	 	8	 	  	 	9	 	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total	  	 	156	 	  	 	146	 	  	 	153	 	  	 	163	 	  	 	163	 	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Natural gas liquids (MBbls/d)	  				  				  				  				  				
Delaware Basin	  	 	43	 	  	 	38	 	  	 	29	 	  	 	37	 	  	 	32	 	
Powder River Basin	  	 	3	 	  	 	3	 	  	 	2	 	  	 	3	 	  	 	2	 	
Eagle Ford	  	 	9	 	  	 	11	 	  	 	12	 	  	 	9	 	  	 	9	 	
Anadarko Basin	  	 	25	 	  	 	30	 	  	 	25	 	  	 	30	 	  	 	30	 	
Other	  	 	—  	 	  	 	1	 	  	 	1	 	  	 	1	 	  	 	1	 	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total	  	 	80	 	  	 	83	 	  	 	69	 	  	 	80	 	  	 	74	 	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Gas (MMcf/d)	  				  				  				  				  				
Delaware Basin	  	 	267	 	  	 	239	 	  	 	241	 	  	 	244	 	  	 	234	 	
Powder River Basin	  	 	22	 	  	 	23	 	  	 	20	 	  	 	29	 	  	 	28	 	
Eagle Ford	  	 	60	 	  	 	73	 	  	 	87	 	  	 	86	 	  	 	76	 	
Anadarko Basin	  	 	233	 	  	 	242	 	  	 	262	 	  	 	272	 	  	 	295	 	
Other	  	 	2	 	  	 	3	 	  	 	4	 	  	 	3	 	  	 	4	 	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total	  	 	584	 	  	 	580	 	  	 	614	 	  	 	634	 	  	 	637	 	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total oil equivalent (MBoe/d)	  				  				  				  				  				
Delaware Basin	  	 	186	 	  	 	155	 	  	 	149	 	  	 	162	 	  	 	154	 	
Powder River Basin	  	 	22	 	  	 	28	 	  	 	24	 	  	 	29	 	  	 	27	 	
Eagle Ford	  	 	37	 	  	 	46	 	  	 	53	 	  	 	50	 	  	 	45	 	
Anadarko Basin	  	 	81	 	  	 	89	 	  	 	90	 	  	 	98	 	  	 	107	 	
Other	  	 	7	 	  	 	8	 	  	 	9	 	  	 	9	 	  	 	10	 	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total	  	 	333	 	  	 	326	 	  	 	325	 	  	 	348	 	  	 	343	 	

5

UPSTREAM CAPITAL EXPENDITURES (LEGACY DEVON)
																					
(in millions)	  	2020	 	  	2019	 	
 	  	Quarter 4	 	  	Quarter 3	 	  	Quarter 2	 	  	Quarter 1	 	  	Quarter 4	 	
Delaware Basin	  	$	153	 	  	$	179	 	  	$	148	 	  	$	220	 	  	$	170	 	
Powder River Basin	  	 	22	 	  	 	11	 	  	 	39	 	  	 	90	 	  	 	89	 	
Eagle Ford	  	 	2	 	  	 	1	 	  	 	10	 	  	 	70	 	  	 	65	 	
Anadarko Basin	  	 	3	 	  	 	1	 	  	 	3	 	  	 	4	 	  	 	38	 	
Other	  	 	3	 	  	 	3	 	  	 	3	 	  	 	7	 	  	 	12	 	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total upstream capital	  	$	183	 	  	$	195	 	  	$	203	 	  	$	391	 	  	$	374	 	

									
COSTS INCURRED (LEGACY DEVON)	  	Year Ended December 31,	 	
(in millions)	  	2020	 	  	2019	 	
Property acquisition costs:	  				  				
Unproved properties	  	$	8	 	  	$	35	 	
Exploration costs	  	 	159	 	  	 	312	 	
Development costs	  	 	820	 	  	 	1,499	 	
	  	 	 	 	  	 	 	 	
Costs incurred	  	$	987	 	  	$	1,846	 	
	  	 	 	 	  	 	 	 	
RESERVES RECONCILIATION (LEGACY DEVON)

 	  	Oil
(MMBbls)	 	  	Gas
(Bcf)	 	  	NGL
(MMBbls)	 	  	Total
(MMBoe)	 	
As of December 31, 2019:	  				  				  				  				
Proved developed	  	 	198	 	  	 	1,344	 	  	 	167	 	  	 	589	 	
Proved undeveloped	  	 	78	 	  	 	277	 	  	 	44	 	  	 	168	 	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total Proved	  	 	276	 	  	 	1,621	 	  	 	211	 	  	 	757	 	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Revisions due to prices	  	 	(26	) 	  	 	(209	) 	  	 	(17	) 	  	 	(78	) 	
Revisions other than price	  	 	18	 	  	 	119	 	  	 	17	 	  	 	55	 	
Extensions and discoveries	  	 	71	 	  	 	188	 	  	 	33	 	  	 	135	 	
Purchase of reserves	  	 	1	 	  	 	19	 	  	 	3	 	  	 	7	 	
Production	  	 	(57	) 	  	 	(221	) 	  	 	(28	) 	  	 	(122	) 	
Sale of reserves	  	 	(1	) 	  	 	(5	) 	  	 	(1	) 	  	 	(2	) 	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
As of December 31, 2020:	  				  				  				  				
Proved developed	  	 	194	 	  	 	1,244	 	  	 	173	 	  	 	574	 	
Proved undeveloped	  	 	88	 	  	 	268	 	  	 	45	 	  	 	178	 	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total Proved	  	 	282	 	  	 	1,512	 	  	 	218	 	  	 	752	 	

6

																					
GROSS OPERATED SPUDS (LEGACY DEVON)	  				  				  				  				  				
 	  	2020	 	  	2019	 	
 	  	Quarter 4	 	  	Quarter 3	 	  	Quarter 2	 	  	Quarter 1	 	  	Quarter 4	 	
Delaware Basin	  	 	21	 	  	 	35	 	  	 	27	 	  	 	38	 	  	 	24	 	
Powder River Basin	  	 	2	 	  	 	—  	 	  	 	—  	 	  	 	12	 	  	 	19	 	
Eagle Ford	  	 	—  	 	  	 	—  	 	  	 	—  	 	  	 	10	 	  	 	25	 	
Anadarko Basin	  	 	—  	 	  	 	—  	 	  	 	—  	 	  	 	—  	 	  	 	—  	 	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total	  	 	23	 	  	 	35	 	  	 	27	 	  	 	60	 	  	 	68	 	

																					
GROSS OPERATED WELLS TIED-IN (LEGACY DEVON)

 	  	2020	 	  	2019	 	
 	  	Quarter 4	 	  	Quarter 3	 	  	Quarter 2	 	  	Quarter 1	 	  	Quarter 4	 	
Delaware Basin	  	 	23	 	  	 	32	 	  	 	22	 	  	 	32	 	  	 	36	 	
Powder River Basin	  	 	2	 	  	 	9	 	  	 	4	 	  	 	14	 	  	 	19	 	
Eagle Ford	  	 	—  	 	  	 	—  	 	  	 	13	 	  	 	30	 	  	 	21	 	
Anadarko Basin	  	 	—  	 	  	 	—  	 	  	 	—  	 	  	 	4	 	  	 	9	 	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total	  	 	25	 	  	 	41	 	  	 	39	 	  	 	80	 	  	 	85	 	

																					
NET OPERATED WELLS TIED-IN (LEGACY DEVON)
 	  				  				  				  				  				
 	  	2020	 	  	2019	 	
 	  	Quarter 4	 	  	Quarter 3	 	  	Quarter 2	 	  	Quarter 1	 	  	Quarter 4	 	
Delaware Basin	  	 	21	 	  	 	23	 	  	 	18	 	  	 	25	 	  	 	25	 	
Powder River Basin	  	 	1	 	  	 	7	 	  	 	4	 	  	 	10	 	  	 	15	 	
Eagle Ford	  	 	—  	 	  	 	—  	 	  	 	7	 	  	 	14	 	  	 	11	 	
Anadarko Basin	  	 	—  	 	  	 	—  	 	  	 	—  	 	  	 	3	 	  	 	7	 	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total	  	 	22	 	  	 	30	 	  	 	29	 	  	 	52	 	  	 	58	 	

																					
AVERAGE LATERAL LENGTH (LEGACY DEVON)	  				  				  				  				  				
(based on wells tied-in)	  	2020	 	  	2019	 	
 	  	Quarter 4	 	  	Quarter 3	 	  	Quarter 2	 	  	Quarter 1	 	  	Quarter 4	 	
Delaware Basin	  	 	9,800’	 	  	 	9,900’	 	  	 	9,100’	 	  	 	8,000’	 	  	 	8,000’	 	
Powder River Basin	  	 	13,600’	 	  	 	9,800’	 	  	 	8,100’	 	  	 	9,100’	 	  	 	9,700’	 	
Eagle Ford	  	 	—  	 	  	 	—  	 	  	 	5,900’	 	  	 	5,400’	 	  	 	6,600’	 	
Anadarko Basin	  	 	—  	 	  	 	—  	 	  	 	—  	 	  	 	9,800’	 	  	 	11,200’	 	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total	  	 	10,100’	 	  	 	9,900’	 	  	 	7,900’	 	  	 	7,300’	 	  	 	8,400’	 	

7

																					
BENCHMARK PRICES	  				 				 				  				  				
(average prices)	  	2020	 	  	2019	 	
 	  	Quarter 4	 	 	Quarter 3	 	 	Quarter 2	 	  	Quarter 1	 	  	Quarter 4	 	
Oil ($/Bbl)—West Texas Intermediate (Cushing)	  	$	42.65	 	 	$	40.86	 	 	$	28.42	 	  	$	46.44	 	  	$	57.02	 	
Natural Gas ($/Mcf)—Henry Hub	  	$	2.67	 	 	$	1.98	 	 	$	1.71	 	  	$	1.95	 	  	$	2.50	 	
NGL ($/Bbl)—Mont Belvieu Blended	  	$	20.01	 	 	$	16.69	 	 	$	12.57	 	  	$	14.39	 	  	$	18.69	 	
 
REALIZED PRICES (LEGACY DEVON)
 	  				 				 				  				  				
 	  	2020	 	  	2019	 	
 	  	Quarter 4	 	 	Quarter 3	 	 	Quarter 2	 	  	Quarter 1	 	  	Quarter 4	 	
Oil (Per Bbl)	  				 				 				  				  				
Delaware Basin	  	$	40.67	 	 	$	39.19	 	 	$	22.70	 	  	$	45.18	 	  	$	56.23	 	
Powder River Basin	  	 	36.42	 	 	 	35.39	 	 	 	24.03	 	  	 	41.14	 	  	 	52.02	 	
Eagle Ford	  	 	37.83	 	 	 	33.68	 	 	 	15.30	 	  	 	44.90	 	  	 	55.11	 	
Anadarko Basin	  	 	40.34	 	 	 	37.88	 	 	 	19.52	 	  	 	45.32	 	  	 	55.71	 	
Other	  	 	39.93	 	 	 	37.33	 	 	 	25.45	 	  	 	44.53	 	  	 	55.14	 	
	  	 	 	 	 	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	
Realized price without hedges	  	 	39.84	 	 	 	37.56	 	 	 	21.25	 	  	 	44.59	 	  	 	55.41	 	
Cash settlements	  	 	(1.83	) 	 	 	0.65	 	 	 	15.25	 	  	 	5.14	 	  	 	1.48	 	
	  	 	 	 	 	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	
Realized price, including cash settlements	  	$	38.01	 	 	$	38.21	 	 	$	36.50	 	  	$	49.73	 	  	$	56.89	 	
	  	 	 	 	 	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	
Natural gas liquids (Per Bbl)	  				 				 				  				  				
Delaware Basin	  	$	13.67	 	 	$	11.49	 	 	$	7.94	 	  	$	8.36	 	  	$	13.30	 	
Powder River Basin	  	 	19.39	 	 	 	13.10	 	 	 	10.07	 	  	 	15.86	 	  	 	17.36	 	
Eagle Ford	  	 	15.66	 	 	 	13.74	 	 	 	10.02	 	  	 	14.77	 	  	 	18.84	 	
Anadarko Basin	  	 	15.65	 	 	 	12.68	 	 	 	9.31	 	  	 	10.90	 	  	 	17.47	 	
Other	  	 	24.24	 	 	 	21.74	 	 	 	10.19	 	  	 	15.82	 	  	 	13.62	 	
	  	 	 	 	 	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	
Realized price without hedges	  	 	14.77	 	 	 	12.36	 	 	 	8.89	 	  	 	10.40	 	  	 	15.79	 	
Cash settlements	  	 	(0.01	) 	 	 	(0.30	) 	 	 	0.51	 	  	 	0.61	 	  	 	1.75	 	
	  	 	 	 	 	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	
Realized price, including cash settlements	  	$	14.76	 	 	$	12.06	 	 	$	9.40	 	  	$	11.01	 	  	$	17.54	 	
	  	 	 	 	 	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	
Gas (Per Mcf)	  				 				 				  				  				
Delaware Basin	  	$	1.51	 	 	$	1.11	 	 	$	1.05	 	  	$	0.58	 	  	$	1.22	 	
Powder River Basin	  	 	2.70	 	 	 	1.94	 	 	 	1.80	 	  	 	1.71	 	  	 	2.51	 	
Eagle Ford	  	 	2.38	 	 	 	1.95	 	 	 	1.79	 	  	 	2.05	 	  	 	2.52	 	
Anadarko Basin	  	 	2.29	 	 	 	1.66	 	 	 	1.31	 	  	 	1.45	 	  	 	1.81	 	
Other	  	 	2.87	 	 	 	1.52	 	 	 	1.32	 	  	 	1.69	 	  	 	0.43	 	
	  	 	 	 	 	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	
Realized price without hedges	  	 	1.96	 	 	 	1.48	 	 	 	1.29	 	  	 	1.21	 	  	 	1.70	 	
Cash settlements	  	 	0.00	 	 	 	0.06	 	 	 	0.28	 	  	 	0.36	 	  	 	0.13	 	
	  	 	 	 	 	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	
Realized price, including cash settlements	  	$	1.96	 	 	$	1.54	 	 	$	1.57	 	  	$	1.57	 	  	$	1.83	 	
	  	 	 	 	 	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	
Total oil equivalent (Per Boe)	  				 				 				  				  				
Delaware Basin	  	$	26.94	 	 	$	24.00	 	 	$	15.39	 	  	$	26.19	 	  	$	35.05	 	
Powder River Basin	  	 	31.08	 	 	 	29.83	 	 	 	20.80	 	  	 	33.65	 	  	 	42.45	 	
Eagle Ford	  	 	25.97	 	 	 	22.78	 	 	 	12.90	 	  	 	29.94	 	  	 	36.51	 	
Anadarko Basin	  	 	19.79	 	 	 	16.81	 	 	 	10.98	 	  	 	18.14	 	  	 	24.28	 	
Other	  	 	37.67	 	 	 	34.15	 	 	 	22.95	 	  	 	39.15	 	  	 	46.49	 	
	  	 	 	 	 	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	
Realized price without hedges	  	 	25.63	 	 	 	22.60	 	 	 	14.37	 	  	 	25.43	 	  	 	32.82	 	
Cash settlements	  	 	(0.86	) 	 	 	0.33	 	 	 	7.83	 	  	 	3.20	 	  	 	1.32	 	
	  	 	 	 	 	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	
Realized price, including cash settlements	  	$	24.77	 	 	$	22.93	 	 	$	22.20	 	  	$	28.63	 	  	$	34.14	 	

8

																					
BENCHMARK PRICES	  				 				 				 				 				
(average prices)	  	2020	 	 	2019	 	
 	  	Quarter 4	 	 	Quarter 3	 	 	Quarter 2	 	 	Quarter 1	 	 	Quarter 4	 	
Oil ($/Bbl)—West Texas Intermediate (Cushing)	  	$	42.65	 	 	$	40.86	 	 	$	28.42	 	 	$	46.44	 	 	$	57.02	 	
Natural Gas ($/Mcf)—Henry Hub	  	$	2.67	 	 	$	1.98	 	 	$	1.71	 	 	$	1.95	 	 	$	2.50	 	
NGL ($/Bbl)—Mont Belvieu Blended	  	$	20.01	 	 	$	16.69	 	 	$	12.57	 	 	$	14.39	 	 	$	18.69	 	
 
PER-UNIT CASH MARGIN BY ASSET (per Boe) (LEGACY DEVON)

	 				 				 				 				
 	  	2020	 	 	2019	 	
 	  	Quarter 4	 	 	Quarter 3	 	 	Quarter 2	 	 	Quarter 1	 	 	Quarter 4	 	
Delaware Basin	  				 				 				 				 				
Realized price	  	$	26.94	 	 	$	24.00	 	 	$	15.39	 	 	$	26.19	 	 	$	35.05	 	
Lease operating expenses	  	 	(2.38	) 	 	 	(3.00	) 	 	 	(3.56	) 	 	 	(3.61	) 	 	 	(3.36	) 	
Gathering, processing & transportation	  	 	(2.40	) 	 	 	(2.68	) 	 	 	(2.88	) 	 	 	(2.71	) 	 	 	(2.59	) 	
Production & property taxes	  	 	(2.08	) 	 	 	(1.80	) 	 	 	(1.14	) 	 	 	(2.15	) 	 	 	(2.80	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Field-level cash margin	  	$	20.08	 	 	$	16.52	 	 	$	7.81	 	 	$	17.72	 	 	$	26.30	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Powder River Basin	  				 				 				 				 				
Realized price	  	$	31.08	 	 	$	29.83	 	 	$	20.80	 	 	$	33.65	 	 	$	42.45	 	
Lease operating expenses	  	 	(5.47	) 	 	 	(5.41	) 	 	 	(6.60	) 	 	 	(6.65	) 	 	 	(5.00	) 	
Gathering, processing & transportation	  	 	(3.01	) 	 	 	(2.30	) 	 	 	(2.71	) 	 	 	(2.32	) 	 	 	(3.40	) 	
Production & property taxes	  	 	(3.91	) 	 	 	(3.49	) 	 	 	(2.40	) 	 	 	(4.20	) 	 	 	(5.19	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Field-level cash margin	  	$	18.69	 	 	$	18.63	 	 	$	9.09	 	 	$	20.48	 	 	$	28.86	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Eagle Ford	  				 				 				 				 				
Realized price	  	$	25.97	 	 	$	22.78	 	 	$	12.90	 	 	$	29.94	 	 	$	36.51	 	
Lease operating expenses	  	 	(2.79	) 	 	 	(2.47	) 	 	 	(2.59	) 	 	 	(2.93	) 	 	 	(4.52	) 	
Gathering, processing & transportation	  	 	(5.89	) 	 	 	(4.73	) 	 	 	(4.96	) 	 	 	(5.96	) 	 	 	(6.52	) 	
Production & property taxes	  	 	(0.16	) 	 	 	(0.92	) 	 	 	(0.85	) 	 	 	(1.85	) 	 	 	(1.75	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Field-level cash margin	  	$	17.13	 	 	$	14.66	 	 	$	4.50	 	 	$	19.20	 	 	$	23.72	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Anadarko Basin	  				 				 				 				 				
Realized price	  	$	19.79	 	 	$	16.81	 	 	$	10.98	 	 	$	18.14	 	 	$	24.28	 	
Lease operating expenses	  	 	(2.57	) 	 	 	(2.16	) 	 	 	(2.42	) 	 	 	(2.79	) 	 	 	(2.24	) 	
Gathering, processing & transportation	  	 	(8.39	) 	 	 	(7.39	) 	 	 	(6.57	) 	 	 	(6.36	) 	 	 	(5.98	) 	
Production & property taxes	  	 	(0.55	) 	 	 	(0.54	) 	 	 	(0.32	) 	 	 	(0.77	) 	 	 	(1.00	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Field-level cash margin	  	$	8.28	 	 	$	6.72	 	 	$	1.67	 	 	$	8.22	 	 	$	15.06	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Other	  				 				 				 				 				
Realized price	  	$	37.67	 	 	$	34.15	 	 	$	22.95	 	 	$	39.15	 	 	$	46.49	 	
Lease operating expenses	  	 	(15.35	) 	 	 	(19.92	) 	 	 	(17.40	) 	 	 	(18.95	) 	 	 	(20.04	) 	
Gathering, processing & transportation	  	 	(0.59	) 	 	 	(0.51	) 	 	 	(0.34	) 	 	 	(0.31	) 	 	 	(0.34	) 	
Production & property taxes	  	 	(3.38	) 	 	 	(3.62	) 	 	 	(5.11	) 	 	 	(4.34	) 	 	 	(3.78	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Field-level cash margin	  	$	18.35	 	 	$	10.10	 	 	$	0.10	 	 	$	15.55	 	 	$	22.33	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Devon—Total	  				 				 				 				 				
Realized price	  	$	25.63	 	 	$	22.60	 	 	$	14.37	 	 	$	25.43	 	 	$	32.82	 	
Lease operating expenses	  	 	(2.97	) 	 	 	(3.32	) 	 	 	(3.69	) 	 	 	(3.96	) 	 	 	(3.79	) 	
Gathering, processing & transportation	  	 	(4.23	) 	 	 	(4.17	) 	 	 	(4.16	) 	 	 	(4.11	) 	 	 	(4.16	) 	
Production & property taxes	  	 	(1.66	) 	 	 	(1.52	) 	 	 	(1.07	) 	 	 	(1.95	) 	 	 	(2.32	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Field-level cash margin	  	$	16.77	 	 	$	13.59	 	 	$	5.45	 	 	$	15.41	 	 	$	22.55	 	

9

NON-GAAP FINANCIAL MEASURES
(all monetary values in millions, except per share amounts)
The earnings materials include non-GAAP financial measures. These non-GAAP measures are not alternatives to GAAP measures, and you should not consider these non-GAAP measures in isolation or as a substitute for analysis of our results as reported under GAAP. Below is additional disclosure regarding each of the non-GAAP measures used in this press release, including reconciliations to their most directly comparable GAAP measure.
CORE EARNINGS (LOSS) (LEGACY DEVON)
Devon’s reported net earnings (loss) include items of income and expense that are typically excluded by securities analysts in their published estimates of the company’s financial results. Accordingly, the company also uses the measures of core earnings (loss) and core earnings (loss) per share attributable to Devon. Devon believes these non-GAAP measures facilitate comparisons of its performance to earnings estimates published by securities analysts. Devon also believes these non-GAAP measures can facilitate comparisons of its performance between periods and to the performance of its peers. The following table summarizes the effects of these items on fourth-quarter 2020 earnings.

 	  	Quarter Ended December 31, 2020	 	
 	  	Before-tax	 	 	After-tax	 	 	After
Noncontrolling
Interests	 	 	Per Diluted
Share	 	
Continuing Operations	  				 				 				 				
Loss (GAAP)	  	$	(110	) 	 	$	(73	) 	 	$	(77	) 	 	$	(0.20	) 	
Adjustments:	  				 				 				 				
Asset dispositions	  	 	(1	) 	 	 	—  	 	 	 	—  	 	 	 	(0.00	) 	
Asset and exploration impairments	  	 	31	 	 	 	29	 	 	 	29	 	 	 	0.07	 	
Deferred tax asset valuation allowance	  	 	—  	 	 	 	(22	) 	 	 	(22	) 	 	 	(0.06	) 	
Fair value changes in financial instruments	  	 	90	 	 	 	70	 	 	 	70	 	 	 	0.18	 	
Change in tax legislation	  	 	—  	 	 	 	(8	) 	 	 	(8	) 	 	 	(0.02	) 	
Restructuring and transaction costs	  	 	17	 	 	 	13	 	 	 	13	 	 	 	0.04	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Core earnings (Non-GAAP)	  	$	27	 	 	$	9	 	 	$	5	 	 	$	0.01	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Discontinued Operations	  				 				 				 				
Loss (GAAP)	  	$	(2	) 	 	$	(25	) 	 	$	(25	) 	 	$	(0.07	) 	
Adjustments:	  				 				 				 				
Asset dispositions	  	 	3	 	 	 	20	 	 	 	20	 	 	 	0.05	 	
Deferred tax asset valuation allowance	  	 	—  	 	 	 	2	 	 	 	2	 	 	 	0.01	 	
Fair value changes in foreign currency and other	  	 	(12	) 	 	 	(9	) 	 	 	(9	) 	 	 	(0.02	) 	
Restructuring and transaction costs	  	 	9	 	 	 	6	 	 	 	6	 	 	 	0.02	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Core loss (Non-GAAP)	  	$	(2	) 	 	$	(6	) 	 	$	(6	) 	 	$	(0.01	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total	  				 				 				 				
Loss (GAAP)	  	$	(112	) 	 	$	(98	) 	 	$	(102	) 	 	$	(0.27	) 	
Adjustments:	  				 				 				 				
Continuing Operations	  	 	137	 	 	 	82	 	 	 	82	 	 	 	0.21	 	
Discontinued Operations	  	 	—  	 	 	 	19	 	 	 	19	 	 	 	0.06	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Core earnings (loss) (Non-GAAP)	  	$	25	 	 	$	3	 	 	$	(1	) 	 	$	—  	 	

10

EBITDAX (LEGACY DEVON)
Devon believes EBITDAX provides information useful in assessing operating and financial performance across periods. Devon computes EBITDAX as net earnings from continuing operations before income tax expense; financing costs, net; exploration expenses; depreciation, depletion and amortization; asset impairments; asset disposition gains and losses; non-cash share-based compensation; non-cash valuation changes for derivatives and financial instruments; restructuring and transaction costs; accretion on discounted liabilities; and other items not related to normal operations. EBITDAX as defined by Devon may not be comparable to similarly titled measures used by other companies and should be considered in conjunction with net earnings from continuing operations.

 	  	Q4 ‘20	 	 	Q3 ‘20	 	 	Q2 ‘20	 	 	Q1 ‘20	 	 	TTM	 	 	Q4’19	 	
Net loss (GAAP)	  	$	(98	) 	 	$	(90	) 	 	$	(668	) 	 	$	(1,815	) 	 	$	(2,671	) 	 	$	(640	) 	
Net earnings (loss) from discontinued operations, net of tax	  	 	25	 	 	 	(13	) 	 	 	(9	) 	 	 	125	 	 	 	128	 	 	 	652	 	
Financing costs, net	  	 	70	 	 	 	66	 	 	 	69	 	 	 	65	 	 	 	270	 	 	 	64	 	
Income tax benefit	  	 	(37	) 	 	 	(90	) 	 	 	(3	) 	 	 	(417	) 	 	 	(547	) 	 	 	(33	) 	
Exploration expenses	  	 	4	 	 	 	39	 	 	 	12	 	 	 	112	 	 	 	167	 	 	 	29	 	
Depreciation, depletion and amortization	  	 	301	 	 	 	299	 	 	 	299	 	 	 	401	 	 	 	1,300	 	 	 	382	 	
Asset impairments	  	 	27	 	 	 	—  	 	 	 	—  	 	 	 	2,666	 	 	 	2,693	 	 	 	—  	 	
Asset dispositions	  	 	(1	) 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	(1	) 	 	 	—  	 	
Share-based compensation	  	 	18	 	 	 	19	 	 	 	19	 	 	 	20	 	 	 	76	 	 	 	19	 	
Derivative and financial instrument non-cash valuation changes	  	 	90	 	 	 	97	 	 	 	593	 	 	 	(619	) 	 	 	161	 	 	 	159	 	
Restructuring and transaction costs	  	 	17	 	 	 	32	 	 	 	—  	 	 	 	—  	 	 	 	49	 	 	 	11	 	
Accretion on discounted liabilities and other	  	 	1	 	 	 	—  	 	 	 	13	 	 	 	(48	) 	 	 	(34	) 	 	 	14	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
EBITDAX (Non-GAAP)	  	$	417	 	 	$	359	 	 	$	325	 	 	$	490	 	 	$	1,591	 	 	$	657	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
NET DEBT (LEGACY DEVON)
Devon defines net debt as debt less cash, cash equivalents and cash restricted. Devon believes that netting these sources of cash against debt provides a clearer picture of the future demands on cash from Devon to repay debt.

 	  	December 31,
2020	 	
Total debt (GAAP)	  	$	4,298	 	
Less:	  				
Cash, cash equivalents and restricted cash	  	 	(2,237	) 	
	  	 	 	 	
Net debt (Non-GAAP)	  	$	2,061	 	
	  	 	 	 	
NET DEBT-TO-EBITDAX (LEGACY DEVON)
Devon defines net debt-to-EBITDAX as net debt divided by trailing twelve months EBITDAX.

 	  	December 31,
2020	 	
Net debt (Non-GAAP)	  	$	2,061	 	
EBITDAX (trailing 12 months) (Non-GAAP)	  	$	1,591	 	
	  	 	 	 	
Net debt-to-EBITDAX (Non-GAAP)	  	 	1.3	 	
	  	 	 	 	
FREE CASH FLOW (LEGACY DEVON)
Devon defines free cash flow as total operating cash flow less capital expenditures. Devon believes that free cash flow provides a useful measure of available cash generated by operating activities for other investing and financing activities.

 	  	Quarter Ended
December, 2020	 	
Total operating cash flow (GAAP)	  	$	358	 	
Less capital expenditures:	  				
Capital expenditures	  	 	(217	) 	
	  	 	 	 	
Free cash flow (Non-GAAP)	  	$	141	 	

11

The pro forma metrics have been prepared to reflect Devon and WPX for the completion of the merger. The numbers have been developed from Devon’s Annual Report on Form 10-K for the year ended December 31, 2020 and from WPX’s audited consolidated financial statements for the year ended December 31, 2020 as filed within Devon’s Current Report on Form 8-KA, both expected to be filed on February 17, 2021.
PRO FORMA NET DEBT

 	  	Q4 2020	 	
(in millions)	  	Pro Forma	 	  	Devon	 	  	WPX	 	
Total debt	  	$	7,862	 	  	$	4,298	 	  	$	3,564	 	
Cash, cash equivalents & restricted cash	  	 	(2,593	) 	  	 	(2,237	) 	  	 	(356	) 	
	  	 	 	 	  	 	 	 	  	 	 	 	
Net debt	  	$	5,269	 	  	$	2,061	 	  	$	3,208	 	
	  	 	 	 	  	 	 	 	  	 	 	 	
PRO FORMA FREE CASH FLOW

 	  	Q4 2020	 	
(in millions)	  	Pro Forma	 	  	Devon	 	  	WPX	 	
Operating cash flow	  	$	773	 	  	$	358	 	  	$	415	 	
Cash capital expenditures	  	 	(510	) 	  	 	(217	) 	  	 	(293	) 	
	  	 	 	 	  	 	 	 	  	 	 	 	
Free cash flow	  	$	263	 	  	$	141	 	  	$	122	 	
	  	 	 	 	  	 	 	 	  	 	 	 	
VARIABLE DIVIDEND CALCULATION
Devon may pay a variable dividend up to 50 percent of its excess cash flow. Each quarter’s excess cash flow is computed as operating cash flow less capital expenditures and the fixed dividend.

 	  	Q4 2020	 	
(in millions)	  	Pro Forma	 	
Operating cash flow (GAAP)	  	$	773	 	
Changes in assets and liabilities, net	  	 	22	 	
	  	 	 	 	
Cash from operations before balance sheet changes (Non-GAAP)	  	$	795	 	
Capital expenditures (Accrued)	  	 	(486	) 	
	  	 	 	 	
Adjusted free cash flow (Non-GAAP)	  	 	309	 	
Fixed quarterly dividend ($0.11/share)	  	 	(42	) 	
	  	 	 	 	
Excess free cash flow	  	 	267	 	
48% pay out (Board Discretion: Up to 50%)	  	 	48	% 	
	  	 	 	 	
Total variable dividend	  	$	128	 	

12

LEGACY WPX PRODUCTION AND CAPITAL
PRODUCTION TREND (LEGACY WPX)

 	  	2020	 	  	2019	 	
 	  	Quarter 4	 	  	Quarter 3	 	  	Quarter 2	 	  	Quarter 1	 	  	Quarter 4	 	
Oil (MBbls/d)	  				  				  				  				  				
Delaware Basin	  	 	84	 	  	 	71	 	  	 	77	 	  	 	60	 	  	 	48	 	
Williston Basin	  	 	65	 	  	 	51	 	  	 	47	 	  	 	62	 	  	 	64	 	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total	  	 	149	 	  	 	122	 	  	 	124	 	  	 	122	 	  	 	112	 	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Natural gas liquids (MBbls/d)	  				  				  				  				  				
Delaware Basin	  	 	35	 	  	 	32	 	  	 	27	 	  	 	25	 	  	 	22	 	
Williston Basin	  	 	11	 	  	 	9	 	  	 	8	 	  	 	9	 	  	 	8	 	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total	  	 	46	 	  	 	40	 	  	 	35	 	  	 	34	 	  	 	30	 	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Gas (MMcf/d)	  				  				  				  				  				
Delaware Basin	  	 	271	 	  	 	219	 	  	 	239	 	  	 	195	 	  	 	174	 	
Williston Basin	  	 	66	 	  	 	51	 	  	 	48	 	  	 	49	 	  	 	50	 	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total	  	 	337	 	  	 	270	 	  	 	287	 	  	 	244	 	  	 	223	 	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total oil equivalent (MBoe/d)	  				  				  				  				  				
Delaware Basin	  	 	164	 	  	 	139	 	  	 	144	 	  	 	117	 	  	 	99	 	
Williston Basin	  	 	87	 	  	 	69	 	  	 	63	 	  	 	79	 	  	 	80	 	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total	  	 	251	 	  	 	208	 	  	 	207	 	  	 	197	 	  	 	179	 	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
UPSTREAM CAPITAL EXPENDITURES (LEGACY WPX)

 	  	2020	 	  	2019	 	
(in millions)	  	Quarter 4	 	  	Quarter 3	 	  	Quarter 2	 	  	Quarter 1	 	  	Quarter 4	 	
Delaware Basin	  	$	247	 	  	$	186	 	  	$	143	 	  	$	191	 	  	$	157	 	
Williston Basin	  	 	36	 	  	 	60	 	  	 	34	 	  	 	115	 	  	 	110	 	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total Upstream Capital	  	$	283	 	  	$	246	 	  	$	177	 	  	$	305	 	  	$	267	 	

13

PRO FORMA KEY METRICS—Q4 2020
PRODUCTION

 	  	Q4 2020	 	
 	  	Pro Forma	 	  	Devon	 	  	WPX	 	
Oil (MBbls/d)	  	 	305	 	  	 	156	 	  	 	149	 	
Natural gas liquids (MBbls/d)	  	 	126	 	  	 	80	 	  	 	46	 	
Gas (MMcf/d)	  	 	921	 	  	 	584	 	  	 	337	 	
	  	 	 	 	  	 	 	 	  	 	 	 	
Total oil equivalent (Mboe/d)	  	 	584	 	  	 	333	 	  	 	251	 	
	  	 	 	 	  	 	 	 	  	 	 	 	
OTHER KEY METRICS

 	  	Q4 2020	 	
($ millions, except Boe)	  	Pro Forma	 	  	Devon	 	  	WPX	 	
Oil, gas and NGL sales	  	$	1,421	 	  	$	786	 	  	$	635	 	
LOE & GP&T per BOE	  	$	7.57	 	  	$	7.21	 	  	$	8.05	 	
General & administrative expenses	  	$	144	 	  	$	82	 	  	$	62	 	
Net financing costs	  	$	119	 	  	$	71	 	  	$	48	 	
	  	 	 	 	  	 	 	 	  	 	 	 	
Operating cash flow	  	$	773	 	  	$	358	 	  	$	415	 	
Total cash capital	  	$	510	 	  	$	217	 	  	$	293	 	
Free cash flow	  	$	263	 	  	$	141	 	  	$	122	 	
	  	 	 	 	  	 	 	 	  	 	 	 	
Cash, cash equivalents & restricted cash	  	$	2,593	 	  	$	2,237	 	  	$	356	 	
Total debt	  	$	7,862	 	  	$	4,298	 	  	$	3,564	 	
Proved reserves (MMBoe)	  	 	1,434	 	  	 	752	 	  	 	682	 	
 
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GUIDANCE
2021 OUTLOOK
 
Note: Devon intends to provide detailed first-quarter 2021 guidance once the company can properly access the impact of the extreme winter weather on its field operations. Devon has incorporated weather-related downtime in its 2021 outlook and does not expect the severe winter weather to materially impact its full-year guidance ranges.
PRODUCTION GUIDANCE(1)

 	  	Full Year(1)	 	
 	  	Low	 	  	High	 	
Oil (MBbls/d)	  	 	280	 	  	 	300	 	
Natural gas liquids (MBbls/d)	  	 	120	 	  	 	130	 	
Gas (MMcf/d)	  	 	860	 	  	 	900	 	
	  	 	 	 	  	 	 	 	
Total oil equivalent (MBoe/d)	  	 	543	 	  	 	580	 	

 	(1)	Due to the timing of the WPX merger closing, all reported 2021 amounts will not include legacy WPX until January 7, 2021.	
CAPITAL EXPENDITURES GUIDANCE

 	  	Full Year	 	
(in millions)	  	Low	 	  	High	 	
Upstream capital	  	$	1,600	 	  	$	1,800	 	
Midstream capital	  	 	80	 	  	 	100	 	
Other capital	  	 	40	 	  	 	80	 	
	  	 	 	 	  	 	 	 	
Total capital	  	$	1,720	 	  	$	1,980	 	

Note: The company’s capital program is designed to have the highest capital spend occurring in the first quarter due to the timing of drilling and completion activity across the company’s asset portfolio (~30% of full-year budget). After heightened activity in the first-quarter, capital is expected to normalize to lower investment levels throughout the remainder of 2021.
PRICE REALIZATIONS GUIDANCE

 	  	Full Year	 	
 	  	Low	 	 	High	 	
Oil - % of WTI	  	 	90	% 	 	 	100	% 	
NGL - % of WTI	  	 	25	% 	 	 	35	% 	
Natural gas - % of Henry Hub	  	 	70	% 	 	 	80	% 	
 
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OTHER GUIDANCE ITEMS
									
 	  	Full Year	 	
($ millions, except Boe and %)	  	Low	 	 	High	 	
Marketing & midstream operating profit	  	$	(50	) 	 	$	(40	) 	
LOE & GP&T per BOE	  	$	7.50	 	 	$	7.70	 	
Production & property taxes as % of upstream sales	  	 	7.0	% 	 	 	8.0	% 	
Exploration expenses	  	$	10	 	 	$	20	 	
Depreciation, depletion and amortization	  	$	1,900	 	 	$	2,000	 	
General & administrative expenses(2)	  	$	400	 	 	$	420	 	
Restructuring & transaction expenses(3)	  	$	160	 	 	$	200	 	
Cash financing costs, net	  	$	420	 	 	$	440	 	
Other expenses	  	$	20	 	 	$	30	 	
Current income tax rate from continuing operations	  	 	0	% 	 	 	0	% 	
Deferred income tax rate from continuing operations	  	 	20	% 	 	 	30	% 	
	  	 	 	 	 	 	 	 	
Total income tax rate from continuing operations	  	 	20	% 	 	 	30	% 	

 	(2)	Devon anticipates approximately $110 million to $120 million of the G&A expenses to be incurred in the first quarter of 2021.	
 	(3)	Devon anticipates approximately $125 million to $145 million of the restructuring expenses to be incurred in the first quarter of 2021 (~80% is cash). One-time cash restructuring charges will be added back to cash flow from operations in the calculation of the variable dividend payout.	
CONTINGENT PAYMENTS FOR BARNETT SHALE DIVERSITURE (4-year period beginning in 2021)

                    WTI Threshold                     	 	  	    WTI Annual Earnout Amount    	 	  	            Henry Hub Threshold             	 	  	        Henry Hub Annual Earnout        
Amount	 	
$	50.00	 	  	$	10,000,000	 	  	$	2.75	 	  	$	20,000,000	 	
$	55.00	 	  	$	12,500,000	 	  	$	3.00	 	  	$	25,000,000	 	
$	60.00	 	  	$	15,000,000	 	  	$	3.25	 	  	$	35,000,000	 	
$	65.00	 	  	$	20,000,000	 	  	$	3.50	 	  	$	45,000,000	 	
2021 HEDGING POSITIONS
Oil Commodity Hedges

 	  	Price Swaps	 	  	Price Collars	 		
	Period	  	Volume (Bbls/d)	 	  	Weighted
Average Price
($/Bbl)	 	  	Volume
(Bbls/d)	 	  	Weighted
Average Floor
Price ($/Bbl)	 	  	Weighted
Average Ceiling
Price ($/Bbl)	 	
Q1 2021	  	 	127,500	 	  	$	39.52	 	  	 	20,000	 	  	$	49.20	 	  	$	59.20	 		
Q2 2021	  	 	131,500	 	  	$	39.71	 	  	 	21,000	 	  	$	42.46	 	  	$	52.46	 		
Q3 2021	  	 	57,500	 	  	$	41.68	 	  	 	52,250	 	  	$	39.56	 	  	$	49.56	 		
Q4 2021	  	 	56,500	 	  	$	41.44	 	  	 	47,250	 	  	$	38.60	 	  	$	48.60	 		

 	  	Price Swaptions	 	  	Price Call Options	 		
	Period	  	Volume (Bbls/d)	 	  	Weighted
Average
Price ($/Bbl)	 	  	Volume (Bbls/d)	 	  	Weighted
Average Price
($/Bbl)	 	
Q1 2021	  				  	$	 	 	  	 	5,000	 	  	$	39.50	 		
Q2 2021	  				  	$	 	 	  	 	5,000	 	  	$	39.50	 		
Q3 2021	  	 	10,000	 	  	$	40.12	 	  	 	5,000	 	  	$	39.50	 		
Q4 2021	  	 	10,000	 	  	$	40.12	 	  	 	5,000	 	  	$	39.50	 		
 
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Oil Basis Swaps

	Period	  	Index	  	Volume (Bbls/d)	 	  	Weighted Average
Differential to WTI
($/Bbl)	 	
Q1-Q4 2021	  	Midland Sweet	  	 	22,000	 	  	$	0.84	 		
Q1-Q4 2021	  	BRENT/WTI Spread	  	 	1,000	 	  	$	(8.00	) 		
Natural Gas Commodity Hedges - Henry Hub

 	  	Price Swaps	 	  	Price Collars	 		
	Period	  	Volume (MMBtu/d)	 	  	Weighted
Average Price
($/MMBtu)	 	  	Volume
(MMBtu/d)	 	  	Weighted
Average Floor
Price ($/MMBtu)	 	  	Weighted
Average Ceiling
Price
($/MMBtu)	 	
Q1 2021	  	 	279,000	 	  	$	2.64	 	  	 	203,000	 	  	$	2.43	 	  	$	2.93	 		
Q2 2021	  	 	279,000	 	  	$	2.64	 	  	 	228,000	 	  	$	2.43	 	  	$	2.93	 		
Q3 2021	  	 	279,000	 	  	$	2.64	 	  	 	228,000	 	  	$	2.43	 	  	$	2.93	 		
Q4 2021	  	 	254,000	 	  	$	2.63	 	  	 	133,000	 	  	$	2.55	 	  	$	3.05	 		

 	  	Price Call Options	
	Period	  	Volume (Bbls/d)	 	  	Weighted
Average Price
($/Bbl)	
Q1 2021	  	 	50,000	 	  	$2.68	
Q2 2021	  	 	50,000	 	  	$2.68	
Q3 2021	  	 	50,000	 	  	$2.68	
Q4 2021	  	 	50,000	 	  	$2.68	
Natural Gas Basis Swaps

	Period	  	Index	  	Volume (MMBtu/d)	 	  	Weighted Average
Differential to Henry
Hub ($/MMBtu)	 	
Q1-Q4 2021	  	El Paso Natural Gas	  	 	35,000	 	  	$	(0.92	) 		
Q1-Q4 2021	  	WAHA	  	 	80,000	 	  	$	(0.65	) 		
NGL Commodity Hedges

 	  	 	  	Price Swaps	 		
	Period	  	Product	  	Volume (Bbls/d)	 	  	Weighted Average
Price ($/Bbl)	 	
Q1-Q4 2021	  	Natural Gasoline	  	 	915	 	  	$	47.57	 		
Q1-Q4 2021	  	Natural Butane	  	 	915	 	  	$	31.40	 		
Q1-Q4 2021	  	Propane	  	 	915	 	  	$	27.88	 		
Devon’s oil derivatives settle against the average of the prompt month NYMEX West Texas Intermediate futures price. Devon’s natural gas derivatives settle against the Inside FERC first of the month Henry Hub index. Devon’s NGL derivatives settle against the average of the prompt month OPIS Mont Belvieu, Texas index. Commodity hedge positions are shown as of February 12, 2021.
 
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