DEVON ENERGY CORP/DE, 10-Q filed on 8/7/2019
Quarterly Report
v3.19.2
Document And Entity Information - shares
shares in Millions
6 Months Ended
Jun. 30, 2019
Jul. 24, 2019
Document And Entity Information [Abstract]    
Document Type 10-Q  
Document Period End Date Jun. 30, 2019  
Amendment Flag false  
Trading Symbol DVN  
Entity Registrant Name DEVON ENERGY CORP/DE  
Entity Central Index Key 0001090012  
Current Fiscal Year End Date --12-31  
Document Fiscal Year Focus 2019  
Entity Filer Category Large Accelerated Filer  
Entity Small Business false  
Entity Emerging Growth Company false  
Document Fiscal Period Focus Q2  
Entity Common Stock, Shares Outstanding   404.2
Entity Current Reporting Status Yes  
Entity Shell Company false  
Entity File Number 001-32318  
Entity Tax Identification Number 731567067  
Entity Address, Address Line One 333 West Sheridan Avenue  
Entity Address, City or Town Oklahoma City  
Entity Address, State or Province Oklahoma  
Entity Address, Postal Zip Code 73102-5015  
City Area Code 405  
Local Phone Number 235-3611  
v3.19.2
Consolidated Comprehensive Statements Of Earnings - USD ($)
$ in Millions
3 Months Ended 6 Months Ended
Jun. 30, 2019
Jun. 30, 2018
Jun. 30, 2019
Jun. 30, 2018
Income Statement [Abstract]        
Upstream revenues $ 1,191 $ 766 $ 1,654 $ 1,783
Revenues $ 730 $ 1,156 $ 1,495 $ 2,018
Type of Revenue [Extensible List] us-gaap:NaturalGasGatheringTransportationMarketingAndProcessingMember us-gaap:NaturalGasGatheringTransportationMarketingAndProcessingMember us-gaap:NaturalGasGatheringTransportationMarketingAndProcessingMember us-gaap:NaturalGasGatheringTransportationMarketingAndProcessingMember
Total revenues $ 1,921 $ 1,922 $ 3,149 $ 3,801
Production expenses 371 406 736 801
Exploration expenses 7 62 11 83
Expenses $ 713 $ 1,149 $ 1,463 $ 2,015
Type of Cost, Good or Service [Extensible List] us-gaap:NaturalGasGatheringTransportationMarketingAndProcessingMember us-gaap:NaturalGasGatheringTransportationMarketingAndProcessingMember us-gaap:NaturalGasGatheringTransportationMarketingAndProcessingMember us-gaap:NaturalGasGatheringTransportationMarketingAndProcessingMember
Depreciation, depletion and amortization $ 394 $ 342 $ 774 $ 647
Asset impairments   154   154
Asset dispositions (1) 23 (45) 11
General and administrative expenses 114 135 249 310
Financing costs, net 66 64 126 453
Restructuring and transaction costs 12 85 63 85
Other expenses 8 (15) (9) (64)
Total expenses 1,684 2,405 3,368 4,495
Earnings (loss) from continuing operations before income taxes 237 (483) (219) (694)
Income tax expense (benefit) 71 13 (39) 10
Net earnings (loss) from continuing operations 166 (496) (180) (704)
Net earnings from discontinued operations, net of income tax expense 329 161 358 216
Net earnings (loss) 495 (335) 178 (488)
Net earnings attributable to noncontrolling interests   90   134
Net earnings (loss) attributable to Devon $ 495 $ (425) $ 178 $ (622)
Basic net earnings (loss) per share:        
Basic earnings (loss) from continuing operations per share $ 0.40 $ (0.97) $ (0.43) $ (1.36)
Basic earnings from discontinued operations per share 0.80 0.14 0.85 0.16
Basic net earnings (loss) per share 1.20 (0.83) 0.42 (1.20)
Diluted net earnings (loss) per share:        
Diluted earnings (loss) from continuing operations per share 0.40 (0.97) (0.43) (1.36)
Diluted earnings from discontinued operations per share 0.79 0.14 0.85 0.16
Diluted net earnings (loss) per share $ 1.19 $ (0.83) $ 0.42 $ (1.20)
Comprehensive loss:        
Net earnings (loss) $ 495 $ (335) $ 178 $ (488)
Other comprehensive earnings (loss), net of tax:        
Foreign currency translation, discontinued operations 43 (34) 78 (82)
Release of Canadian cumulative translation adjustment, discontinued operations [1] (1,237)   (1,237)  
Pension and postretirement plans 13 3 15 7
Other comprehensive loss, net of tax (1,181) (31) (1,144) (75)
Comprehensive loss (686) (366) (966) (563)
Comprehensive earnings attributable to noncontrolling interests   90   134
Comprehensive loss attributable to Devon $ (686) $ (456) $ (966) $ (697)
[1] In conjunction with the sale of all of its Canadian operating assets, Devon released the cumulative translation adjustment as part of its gain on the disposition of its Canadian business. See Note 18 for additional details.
v3.19.2
Consolidated Statements Of Cash Flows - USD ($)
$ in Millions
3 Months Ended 6 Months Ended
Jun. 30, 2019
Jun. 30, 2018
Jun. 30, 2019
Jun. 30, 2018
Cash flows from operating activities:        
Net earnings (loss) $ 495 $ (335) $ 178 $ (488)
Adjustments to reconcile net earnings (loss) to net cash from operating activities:        
Net earnings from discontinued operations, net of income tax expense (329) (161) (358) (216)
Depreciation, depletion and amortization 394 342 774 647
Asset impairments   154   154
Leasehold impairments 1 53 2 61
Accretion on discounted liabilities 10 9 20 18
Total (gains) losses on commodity derivatives (140) 487 465 600
Cash settlements on commodity derivatives 23 (144) 54 (229)
(Gains) losses on asset dispositions (1) 23 (45) 11
Deferred income tax expense (benefit) 69   (38) (4)
Share-based compensation 23 53 69 87
Early retirement of debt       312
Other 2 (20) (12) (65)
Changes in assets and liabilities, net (59) 65 (143) 71
Net cash from operating activities - continuing operations 488 526 966 959
Cash flows from investing activities:        
Capital expenditures (494) (543) (996) (1,105)
Acquisitions of property and equipment (13) (10) (23) (16)
Divestitures of property and equipment 28 560 339 607
Net cash from investing activities - continuing operations (479) 7 (680) (514)
Cash flows from financing activities:        
Repayments of long-term debt principal     (162) (807)
Early retirement of debt       (304)
Repurchases of common stock (187) (428) (1,185) (499)
Dividends paid on common stock (37) (42) (71) (74)
Shares exchanged for tax withholdings (3) (6) (22) (35)
Net cash from financing activities - continuing operations (227) (476) (1,440) (1,719)
Net change in cash, cash equivalents and restricted cash of continuing operations (218) 57 (1,154) (1,274)
Cash flows from discontinued operations:        
Operating activities 135 (21) 33 350
Investing activities 2,544 (281) 2,497 (550)
Financing activities 0 73 (8) 103
Effect of exchange rate changes on cash 37 227 39 212
Net change in cash, cash equivalents and restricted cash of discontinued operations 2,716 (2) 2,561 115
Net change in cash, cash equivalents and restricted cash 2,498 55 1,407 (1,159)
Cash, cash equivalents and restricted cash at beginning of period 1,355 1,470 2,446 2,684
Cash, cash equivalents and restricted cash at end of period 3,853 1,525 3,853 1,525
Reconciliation of cash, cash equivalents and restricted cash:        
Cash and cash equivalents 3,470 1,460 3,470 1,460
Cash restricted for discontinued operations 370   370  
Restricted cash included in other current assets 13 28 13 28
Cash and cash equivalents included in current assets associated with discontinued operations   37   37
Cash, cash equivalents and restricted cash at end of period $ 3,853 $ 1,525 $ 3,853 $ 1,525
v3.19.2
Consolidated Balance Sheets - USD ($)
$ in Millions
Jun. 30, 2019
Dec. 31, 2018
ASSETS    
Cash and cash equivalents $ 3,470 $ 2,414
Cash restricted for discontinued operations 370  
Accounts receivable 842 855
Current assets associated with discontinued operations 131 283
Other current assets 354 885
Total current assets 5,167 4,437
Oil and gas property and equipment, based on successful efforts accounting, net 8,987 8,982
Other property and equipment, net 1,050 1,044
Total property and equipment, net 10,037 10,026
Goodwill 841 841
Right-of-use assets 273  
Other long-term assets 232 276
Long-term assets associated with discontinued operations 99 3,986
Total assets 16,649 19,566
LIABILITIES AND STOCKHOLDERS' EQUITY    
Accounts payable 522 563
Revenues and royalties payable 772 832
Short-term debt   162
Current liabilities associated with discontinued operations 1,894 338
Other current liabilities 279 331
Total current liabilities 3,467 2,226
Long-term debt 4,294 4,292
Lease liabilities 263  
Asset retirement obligations 528 606
Other long-term liabilities 431 442
Long-term liabilities associated with discontinued operations 189 2,285
Deferred income taxes 483 529
Stockholders' equity:    
Common stock, $0.10 par value. Authorized 1.0 billion shares; issued 410 million and 450 million shares in 2019 and 2018, respectively 41 45
Additional paid-in capital 3,352 4,486
Retained earnings 3,738 3,650
Accumulated other comprehensive earnings (loss) (117) 1,027
Treasury stock, at cost, 0.7 million and 1.0 million shares in 2019 and 2018, respectively (20) (22)
Total stockholders’ equity 6,994 9,186
Total liabilities and stockholders' equity $ 16,649 $ 19,566
v3.19.2
Consolidated Balance Sheets (Parenthetical) - $ / shares
Jun. 30, 2019
Dec. 31, 2018
Statement Of Financial Position [Abstract]    
Common stock, par value (in dollars per share) $ 0.10 $ 0.10
Common stock, shares authorized (in shares) 1,000,000,000.0 1,000,000,000.0
Common stock, shares issued (in shares) 410,000,000 450,000,000
Treasury stock, shares 700,000 1,000,000.0
v3.19.2
Consolidated Statements Of Equity - USD ($)
shares in Millions, $ in Millions
Total
Common Stock [Member]
Additional Paid-In Capital [Member]
Retained Earnings [Member]
Accumulated Other Comprehensive Earnings (Loss) [Member]
Treasury Stock [Member]
Noncontrolling Interests [Member]
Balance at Dec. 31, 2017 $ 14,104 $ 53 $ 7,333 $ 702 $ 1,166   $ 4,850
Balance, shares at Dec. 31, 2017   525          
Net earnings (loss) (488)     (622)     134
Other comprehensive loss, net of tax (75)       (75)    
Restricted stock grants, net of cancellations, shares   3          
Common stock repurchased (556) $ (1)       $ (555)  
Common stock retired   $ (1) (532)     533  
Common stock retired, shares   (14)          
Common stock dividends (74)     (74)      
Share-based compensation 89   89        
Share-based compensation, shares   1          
Subsidiary equity transactions 67   (2)       69
Distributions to noncontrolling interests (219)           (219)
Balance at Jun. 30, 2018 12,848 $ 51 6,888 6 1,091 (22) 4,834
Balance, shares at Jun. 30, 2018   515          
Balance at Mar. 31, 2018 13,725 $ 53 7,269 473 1,122 (12) 4,820
Balance, shares at Mar. 31, 2018   526          
Net earnings (loss) (335)     (425)     90
Other comprehensive loss, net of tax (31)       (31)    
Common stock repurchased (445) $ (1)       (444)  
Common stock retired   $ (1) (433)     434  
Common stock retired, shares   (11)          
Common stock dividends (42)     (42)      
Share-based compensation 53   53        
Subsidiary equity transactions 40   (1)       41
Distributions to noncontrolling interests (117)           (117)
Balance at Jun. 30, 2018 12,848 $ 51 6,888 6 1,091 (22) $ 4,834
Balance, shares at Jun. 30, 2018   515          
Effect of adoption of lease accounting (19)     (19)      
Balance at Dec. 31, 2018 9,186 $ 45 4,486 3,650 1,027 (22)  
Balance, shares at Dec. 31, 2018   450          
Net earnings (loss) 178     178      
Other comprehensive loss, net of tax (1,144)       (1,144)    
Restricted stock grants, net of cancellations, shares   3          
Common stock repurchased (1,206)         (1,206)  
Common stock retired   $ (4) (1,204)     1,208  
Common stock retired, shares   (43)          
Common stock dividends (71)     (71)      
Share-based compensation 70   70        
Balance at Jun. 30, 2019 6,994 $ 41 3,352 3,738 (117) (20)  
Balance, shares at Jun. 30, 2019   410          
Balance at Mar. 31, 2019 7,857 $ 42 3,518 3,280 1,064 (47)  
Balance, shares at Mar. 31, 2019   417          
Net earnings (loss) 495     495      
Other comprehensive loss, net of tax (1,181)       (1,181)    
Common stock repurchased (164)         (164)  
Common stock retired   $ (1) (190)     191  
Common stock retired, shares   (7)          
Common stock dividends (37)     (37)      
Share-based compensation 24   24        
Balance at Jun. 30, 2019 $ 6,994 $ 41 $ 3,352 $ 3,738 $ (117) $ (20)  
Balance, shares at Jun. 30, 2019   410          
v3.19.2
Summary Of Significant Accounting Policies
6 Months Ended
Jun. 30, 2019
Accounting Policies [Abstract]  
Summary Of Significant Accounting Policies

DEVON ENERGY CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

 

1.

Summary of Significant Accounting Policies

The accompanying unaudited interim financial statements and notes of Devon have been prepared pursuant to the rules and regulations of the SEC. Pursuant to such rules and regulations, certain disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been omitted. The accompanying unaudited interim financial statements and notes should be read in conjunction with the financial statements and notes included in Devon’s 2018 Annual Report on Form 10-K.

The accompanying unaudited interim financial statements in this report reflect all adjustments that are, in the opinion of management, necessary for a fair statement of Devon’s results of operations and cash flows for the three-month and six-month periods ended June 30, 2019 and 2018 and Devon’s financial position as of June 30, 2019. As further discussed in Note 18, Devon sold its Canadian operations on June 27, 2019 and its ownership interests in EnLink and the General Partner on July 18, 2018. Activity relating to Devon’s Canadian operations and EnLink and the General Partner are classified as discontinued operations within Devon’s consolidated comprehensive statements of earnings and consolidated statements of cash flows. The associated assets and liabilities of Devon’s Canadian operations are presented as assets and liabilities associated with discontinued operations on the consolidated balance sheets.

 

Segment Information

 

Subsequent to the sale of Devon’s Canadian business in 2019 discussed in Note 18, Devon’s oil and gas exploration and production activities are solely focused in the U.S. For financial reporting purposes, Devon aggregates its U.S. operating segments into one reporting segment due to the similar nature of its business. With the reclassification of Devon’s Canadian operations to discontinued operations and assets and liabilities associated with discontinued operations, Devon now has one reporting segment, which is reflected in the consolidated financial statements.

 

The following table presents revenue from contracts with customers that are disaggregated based on the type of good.

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

Oil

 

$

753

 

 

$

808

 

 

$

1,414

 

 

$

1,485

 

Gas

 

 

147

 

 

 

207

 

 

 

380

 

 

 

462

 

NGL

 

 

151

 

 

 

238

 

 

 

325

 

 

 

436

 

Oil, gas and NGL revenues from

   contracts with customers

 

 

1,051

 

 

 

1,253

 

 

 

2,119

 

 

 

2,383

 

Oil, gas and NGL derivatives

 

 

140

 

 

 

(487

)

 

 

(465

)

 

 

(600

)

Upstream revenues

 

 

1,191

 

 

 

766

 

 

 

1,654

 

 

 

1,783

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Oil

 

 

394

 

 

 

766

 

 

 

750

 

 

 

1,297

 

Gas

 

 

172

 

 

 

160

 

 

 

390

 

 

 

315

 

NGL

 

 

164

 

 

 

230

 

 

 

355

 

 

 

406

 

Total marketing revenues from

   contracts with customers

 

 

730

 

 

 

1,156

 

 

 

1,495

 

 

 

2,018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total revenues

 

$

1,921

 

 

$

1,922

 

 

$

3,149

 

 

$

3,801

 

 

Recently Adopted Accounting Standards

 

In January 2019, Devon adopted ASU 2016-02, Leases (Topic 842), using the modified retrospective method. See Note 14 for further discussion regarding Devon’s adoption of the leases standard.

The SEC released Final Rule No. 33 -10532, Disclosure Update and Simplification, which amends various SEC disclosure requirements determined to be redundant, duplicative, overlapping, outdated or superseded as part of the SEC’s ongoing disclosure effectiveness initiative. The rule was effective November 5, 2018. The rule amended numerous SEC rules, items and forms covering a diverse group of topics. Devon has implemented these required changes which generally reduced or eliminated disclosures. Devon adopted the requirement of presenting current and comparative quarterly stockholders’ equity roll forwards in the first quarter of 2019.

The SEC released Final Rule Release No. 33-10618, FAST Act Modernization and Simplification of Regulation S-K, which amends Regulation S-K to modernize and simplify certain disclosure requirements in a manner that reduces costs and burdens on registrants while continuing to provide all material information to investors. The rule became effective May 2, 2019. The rule amended numerous SEC rules, items and forms covering a diverse group of topics, primarily focusing on reducing or eliminating disclosures. Other than presentation, this adoption did not have a material impact on Devon’s consolidated financial statements.

Issued Accounting Standards Not Yet Adopted

The FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Changes to the Disclosure Requirements for Fair Value Measurement. This ASU will eliminate, add and modify certain disclosure requirements for fair value measurement. The ASU is effective for annual and interim periods beginning January 1, 2020, with early adoption permitted for either the entire standard or only the provisions that eliminate or modify requirements. The ASU requires the additional disclosure requirements to be adopted using a retrospective approach. Devon is currently evaluating the provisions of this ASU and assessing the impact it may have on its disclosures in the notes to the consolidated financial statements.

 

The FASB issued ASU 2018-15, Intangibles, Goodwill and Other Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract. This ASU will require a customer in a cloud computing arrangement (i.e., hosting arrangement) that is a service contract to follow the internal-use software guidance in ASC 350-40 to determine which implementation costs to capitalize as assets or expense as incurred. Capitalized implementation costs related to a hosting arrangement that is a service contract will be amortized over the term of the hosting arrangement, beginning when the module or component of the hosting arrangement is ready for its intended use. This ASU is effective for annual and interim periods beginning January 1, 2020, with early adoption permitted. Entities have the option to adopt the ASU using either a retrospective approach or a prospective approach applied to all implementation costs incurred after the date of the adoption. Devon is currently evaluating the provisions of this ASU and assessing the impact it may have on its consolidated financial statements.

 

v3.19.2
Divestitures
6 Months Ended
Jun. 30, 2019
Business Combinations [Abstract]  
Divestitures

2.Divestitures

 

In February 2019, Devon announced its intent to separate its Canadian business and Barnett Shale assets from the Company, based on authorizations provided by its Board of Directors. On June 27, 2019, Devon completed the sale of all of its operating assets and operations in Canada to Canadian Natural Resources Limited for proceeds, net of purchase price adjustments, of $2.6 billion ($3.4 billion Canadian dollars), and recognized a pre-tax gain of $189 million ($460 million, net of tax). As a part of the transaction, $436 million of asset retirement obligations were assumed by Canadian Natural Resources Limited. In aggregate, the total estimated proved reserves associated with these assets were approximately 400 MMBoe, or 21% of total proved reserves. In conjunction with the Canadian divestiture, Devon recognized $273 million of restructuring and asset impairment related charges. These costs relate to personnel, office lease abandonment and a firm transportation agreement abandonment. Additional information on these discontinued operations can be found in Note 18.

Devon is evaluating multiple methods of separation for the Barnett Shale assets, including a potential sale, potential mergers or spin-off. As of June 30, 2019, Devon does not currently have any indications that it would recognize an impairment upon separating its Barnett Shale assets as they are long-lived assets that are held for use. This conclusion is based on probability-weighted computations applied to the separation methods currently under evaluation. As of June 30, 2019, Devon’s carrying value of its Barnett Shale net assets (property and equipment, asset retirement obligations and estimated allocated goodwill) was approximately $1.4 billion. Should Devon enter into a transaction that causes Devon to cease having control, such as a cash sale or exchange for a noncontrolling interest in another entity or combination thereof, Devon would recognize a gain or loss based on the value of the proceeds and/or equity interests as compared to the carrying value. Devon anticipates reporting all information for its Barnett Shale assets as discontinued operations in 2019 when all the requisite criteria are met for such financial statement presentation.

In the first quarter of 2019, Devon received proceeds of approximately $300 million and recognized a $44 million net gain on asset dispositions, primarily from sales of non-core assets in the Permian Basin. In aggregate, the total estimated proved reserves associated with these divested assets were approximately 25 MMBoe, or less than 2% of total U.S. proved reserves. As of December

31, 2018, assets and liabilities associated with these divested assets were classified as held for sale in the accompanying consolidated balance sheet.

During the second quarter of 2018, Devon sold a portion of its Barnett Shale assets, primarily located in Johnson County for $553 million. Estimated proved reserves associated with these assets were approximately 10% of total proved reserves. The transaction resulted in an adjustment to Devon’s capitalized costs with no gain recognized in the consolidated statement of earnings. In conjunction with the divestiture, Devon settled certain gas processing contracts and recognized an approximately $40 million settlement expense, which is included in asset dispositions within the consolidated statement of earnings.

v3.19.2
Derivative Financial Instruments
6 Months Ended
Jun. 30, 2019
Derivative Instruments And Hedging Activities Disclosure [Abstract]  
Derivative Financial Instruments

 

3.Derivative Financial Instruments

Objectives and Strategies

Devon enters into derivative financial instruments with respect to a portion of its oil, gas and NGL production to hedge future prices received. Additionally, Devon periodically enters into derivative financial instruments with respect to a portion of its oil, gas and NGL marketing activities. These commodity derivative financial instruments include financial price swaps, basis swaps and costless price collars. Devon periodically enters into interest rate swaps to manage its exposure to interest rate volatility. As of June 30, 2019, Devon did not have any open interest rate swap contracts.

Devon does not intend to hold or issue derivative financial instruments for speculative trading purposes and has elected not to designate any of its derivative instruments for hedge accounting treatment.

Counterparty Credit Risk

By using derivative financial instruments, Devon is exposed to credit risk. Credit risk is the failure of the counterparty to perform under the terms of the derivative contract. To mitigate this risk, the hedging instruments are placed with a number of counterparties whom Devon believes are acceptable credit risks. It is Devon’s policy to enter into derivative contracts only with investment-grade rated counterparties deemed by management to be competent and competitive market makers. Additionally, Devon’s derivative contracts generally contain provisions that provide for collateral payments if Devon’s or its counterparty’s credit rating falls below certain credit rating levels.

Commodity Derivatives

As of June 30, 2019, Devon had the following open oil derivative positions. The first two tables present Devon’s oil derivatives that settle against the average of the prompt month NYMEX WTI futures price. The third table presents Devon’s oil derivatives that settle against the respective indices noted within the table.

 

 

 

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)

 

Q3-Q4 2019

 

 

41,100

 

 

$

60.76

 

 

 

79,750

 

 

$

54.89

 

 

$

64.92

 

Q1-Q4 2020

 

 

3,238

 

 

$

60.13

 

 

 

22,432

 

 

$

52.92

 

 

$

63.03

 

 

 

 

Three-Way Price Collars

 

Period

 

Volume

(Bbls/d)

 

 

Weighted

Average Floor Sold

Price ($/Bbl)

 

 

Weighted

Average Floor Purchased

Price ($/Bbl)

 

 

Weighted

Average

Ceiling Price

($/Bbl)

 

Q3-Q4 2019

 

 

5,000

 

 

$

50.00

 

 

$

63.00

 

 

$

74.80

 

 

 

 

Oil Basis Swaps

 

Period

 

Index

 

Volume

(Bbls/d)

 

 

Weighted Average

Differential to WTI

($/Bbl)

 

Q3-Q4 2019

 

Midland Sweet

 

 

28,000

 

 

$

(0.46

)

Q3-Q4 2019

 

Argus LLS

 

 

7,500

 

 

$

5.18

 

Q3-Q4 2019

 

Argus MEH

 

 

26,000

 

 

$

3.33

 

Q3-Q4 2019

 

NYMEX Roll

 

 

38,000

 

 

$

0.45

 

Q1-Q4 2020

 

Argus MEH

 

 

9,000

 

 

$

3.44

 

Q1-Q4 2020

 

NYMEX Roll

 

 

42,000

 

 

$

0.32

 

 

As of June 30, 2019, Devon had the following open natural gas derivative positions. The first table presents Devon’s natural gas derivatives that settle against the Inside FERC first of the month Henry Hub index. The second table presents Devon’s natural gas derivatives that settle against the respective indices noted within the table.

 

 

 

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)

 

Q3-Q4 2019

 

 

257,800

 

 

$

2.80

 

 

 

200,500

 

 

$

2.63

 

 

$

3.02

 

Q1-Q4 2020

 

 

81,409

 

 

$

2.77

 

 

 

42,557

 

 

$

2.73

 

 

$

3.03

 

 

 

 

Natural Gas Basis Swaps

 

Period

 

Index

 

Volume

(MMBtu/d)

 

 

Weighted Average

Differential to

Henry Hub

($/MMBtu)

 

Q3-Q4 2019

 

Panhandle Eastern Pipe Line

 

 

20,000

 

 

$

(0.56

)

Q3-Q4 2019

 

El Paso Natural Gas

 

 

130,000

 

 

$

(1.46

)

Q3-Q4 2019

 

Houston Ship Channel

 

 

162,500

 

 

$

0.01

 

Q1-Q4 2020

 

Panhandle Eastern Pipe Line

 

 

30,000

 

 

$

(0.47

)

Q1-Q4 2020

 

El Paso Natural Gas

 

 

40,000

 

 

$

(0.67

)

Q1-Q4 2020

 

Houston Ship Channel

 

 

10,000

 

 

$

0.02

 

 

 

As of June 30, 2019, Devon had the following open NGL derivative positions. Devon’s NGL positions settle against the average of the prompt month OPIS Mont Belvieu, Texas index.

 

 

 

 

 

Price Swaps

 

Period

 

Product

 

Volume (Bbls/d)

 

 

Weighted Average Price ($/Bbl)

 

Q3-Q4 2019

 

Ethane

 

 

1,000

 

 

$

11.55

 

Q3-Q4 2019

 

Natural Gasoline

 

 

4,500

 

 

$

55.93

 

Q3-Q4 2019

 

Normal Butane

 

 

4,000

 

 

$

33.69

 

Q3-Q4 2019

 

Propane

 

 

8,500

 

 

$

30.01

 

Q1-Q4 2020

 

Propane

 

 

2,500

 

 

$

27.29

 

 

Financial Statement Presentation

The following table presents the net gains and losses by derivative financial instrument type followed by the corresponding individual consolidated comprehensive statements of earnings caption.

 

 

Three Months

Ended June 30,

 

 

Six Months

Ended June 30,

 

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

Commodity derivatives:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Upstream revenues

 

$

140

 

 

$

(487

)

 

$

(465

)

 

$

(600

)

Marketing revenues

 

 

 

 

 

(1

)

 

 

1

 

 

 

(1

)

Interest rate derivatives:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other expenses

 

 

 

 

 

19

 

 

 

 

 

 

65

 

Net gains (losses) recognized

 

$

140

 

 

$

(469

)

 

$

(464

)

 

$

(536

)

 

The following table presents the derivative fair values by derivative financial instrument type followed by the corresponding individual consolidated balance sheet caption.

 

 

June 30, 2019

 

 

December 31, 2018

 

Commodity derivative assets:

 

 

 

 

 

 

 

 

Other current assets

 

$

117

 

 

$

634

 

Other long-term assets

 

 

10

 

 

 

40

 

Total derivative assets

 

$

127

 

 

$

674

 

Commodity derivative liabilities:

 

 

 

 

 

 

 

 

Other current liabilities

 

$

7

 

 

$

32

 

Other long-term liabilities

 

 

 

 

 

1

 

Total derivative liabilities

 

$

7

 

 

$

33

 

 

v3.19.2
Share-Based Compensation
6 Months Ended
Jun. 30, 2019
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]  
Share-Based Compensation

4.Share-Based Compensation

 

The table below presents the share-based compensation expense included in Devon’s accompanying consolidated comprehensive statements of earnings. The vesting for certain share-based awards was accelerated in conjunction with the reduction of workforce described in Note 6 and is included in restructuring and transaction costs in the accompanying consolidated comprehensive statements of earnings.

 

 

 

Six Months Ended June 30,

 

 

 

2019

 

 

2018

 

G&A

 

$

44

 

 

$

59

 

Exploration expenses

 

 

1

 

 

 

2

 

Restructuring and transaction costs

 

 

24

 

 

 

26

 

Total

 

$

69

 

 

$

87

 

Related income tax benefit

 

$

10

 

 

$

 

 

Under its approved long-term incentive plan, Devon granted share-based awards to certain employees in the first six months of 2019. The following table presents a summary of Devon’s unvested restricted stock awards and units, performance-based restricted stock awards and performance share units granted under the plan.

 

 

 

Restricted Stock

 

 

Performance-Based

 

 

Performance

 

 

 

Awards and Units

 

 

Restricted Stock Awards

 

 

Share Units

 

 

 

Awards and

Units

 

 

Weighted

Average

Grant-Date

Fair Value

 

 

Awards

 

 

Weighted

Average

Grant-Date

Fair Value

 

 

Units

 

 

 

 

 

Weighted

Average

Grant-Date

Fair Value

 

 

 

(Thousands, except fair value data)

 

Unvested at 12/31/18

 

 

5,963

 

 

$

35.47

 

 

 

302

 

 

$

35.93

 

 

 

2,868

 

 

 

 

 

$

30.14

 

Granted

 

 

4,383

 

 

$

25.49

 

 

 

 

 

$

 

 

 

741

 

 

 

 

 

$

28.97

 

Vested

 

 

(4,295

)

 

$

33.60

 

 

 

(141

)

 

$

37.48

 

 

 

(145

)

 

 

 

 

$

37.23

 

Forfeited

 

 

(557

)

 

$

27.16

 

 

 

 

 

$

 

 

 

(1,276

)

 

 

 

 

$

11.34

 

Unvested at 6/30/19

 

 

5,494

 

 

$

29.80

 

 

 

161

 

 

$

34.56

 

 

 

2,188

 

 

(1

)

 

$

40.25

 

 

(1)

A maximum of 4.4 million common shares could be awarded based upon Devon’s final TSR ranking.

The following table presents the assumptions related to the performance share units granted in 2019, as indicated in the previous summary table.

 

 

 

2019

 

Grant-date fair value

 

$

28.43

 

 

 

$

29.53

 

Risk-free interest rate

 

2.48%

 

Volatility factor

 

39.1%

 

Contractual term (years)

 

2.89

 

 

The following table presents a summary of the unrecognized compensation cost and the related weighted average recognition period associated with unvested awards and units as of June 30, 2019.

 

 

 

 

 

 

 

Performance-Based

 

 

 

 

 

 

 

Restricted Stock

 

 

Restricted Stock

 

 

Performance

 

 

 

Awards and Units

 

 

Awards

 

 

Share Units

 

Unrecognized compensation cost

 

$

116

 

 

$

 

 

$

25

 

Weighted average period for recognition (years)

 

 

2.8

 

 

 

1.9

 

 

 

1.7

 

 

v3.19.2
Asset Impairments
6 Months Ended
Jun. 30, 2019
Asset Impairment Charges [Abstract]  
Asset Impairments

5.Asset Impairments

Unproved Impairments

During the first six months of 2018, Devon impaired certain non-core acreage in the U.S. that it no longer intends to pursue for exploration opportunities, resulting in unproved impairments of $61 million. Unproved impairments are included in exploration expenses in the consolidated comprehensive statements of earnings.

Asset Impairments

During the second quarter of 2018, Devon recognized $109 million of proved asset impairments relating to U.S. non-core assets no longer in its development plans and approximately $45 million of non-oil and gas asset impairments.

v3.19.2
Restructuring and Transaction Costs
6 Months Ended
Jun. 30, 2019
Restructuring And Related Activities [Abstract]  
Restructuring and Transaction Costs

6.Restructuring and Transaction Costs

During the first quarter of 2019, Devon announced workforce reductions and other initiatives designed to enhance its operational focus and cost structure in conjunction with the portfolio transformation announcement further discussed in Note 2. As a result, Devon recognized $63 million of restructuring expenses during the first six months of 2019. Of these expenses, $24 million resulted from

accelerated vesting of share-based grants, which are noncash charges. Additionally, $5 million resulted from settlements of defined retirement benefits.

During the second quarter of 2018, Devon recognized $85 million in personnel related restructuring expenses related to workforce reductions. Of these expenses, $26 million resulted from accelerated vesting of share-based grants, which are noncash charges. Additionally, $15 million resulted from estimated settlements of defined retirement benefits.

Devon anticipates recognizing additional restructuring charges in 2019 primarily when the separation of its Barnett Shale assets is completed.

The following table summarizes Devon’s restructuring liabilities.

 

 

Other

 

 

Other

 

 

 

 

 

 

 

Current

 

 

Long-term

 

 

 

 

 

 

 

Liabilities

 

 

Liabilities

 

 

Total

 

Balance as of December 31, 2018

 

$

39

 

 

$

3

 

 

$

42

 

Changes related to 2019 workforce reductions

 

 

23

 

 

 

 

 

 

23

 

Changes related to prior years' restructurings

 

 

(23

)

 

 

(2

)

 

 

(25

)

Balance as of June 30, 2019

 

$

39

 

 

$

1

 

 

$

40

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance as of December 31, 2017

 

$

17

 

 

$

17

 

 

$

34

 

Changes related to prior years' restructurings

 

 

42

 

 

 

(7

)

 

 

35

 

Balance as of June 30, 2018

 

$

59

 

 

$

10

 

 

$

69

 

 

v3.19.2
Income Taxes
6 Months Ended
Jun. 30, 2019
Income Tax Disclosure [Abstract]  
Income Taxes

7.Income Taxes

The following table presents Devon’s total income tax expense (benefit) and a reconciliation of its effective income tax rate to the U.S. statutory income tax rate.

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

Current income tax expense (benefit)

 

$

2

 

 

$

13

 

 

$

(1

)

 

$

14

 

Deferred income tax expense (benefit)

 

 

69

 

 

 

 

 

 

(38

)

 

 

(4

)

Total income tax expense (benefit)

 

$

71

 

 

$

13

 

 

$

(39

)

 

$

10

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. statutory income tax rate

 

 

21

%

 

 

21

%

 

 

21

%

 

 

21

%

State income taxes

 

 

8

%

 

 

(1

%)

 

 

4

%

 

 

(1

%)

Other

 

 

1

%

 

 

3

%

 

 

(7

%)

 

 

(2

%)

Deferred tax asset valuation allowance

 

 

%

 

 

(26

%)

 

 

%

 

 

(19

%)

Effective income tax rate

 

 

30

%

 

 

(3

%)

 

 

18

%

 

 

(1

%)

 

Devon estimates its annual effective income tax rate to record its quarterly provision for income taxes in the various jurisdictions in which it operates. Statutory tax rate changes and other significant or unusual items are recognized as discrete items in the quarter in which they occur.

In the second quarter of 2019, the deferred tax asset representing Devon’s U.S. state net operating loss that is subject to a valuation allowance increased by $11 million from the first quarter of 2019. The corresponding increase in the valuation allowance against the state net operating loss resulted in a deferred tax expense, which is included within state income taxes in the table above.

In the table above, the “other” effect is primarily composed of permanent differences for which dollar amounts do not increase or decrease in relation to the change in pre-tax earnings. Generally, such items have an insignificant impact on Devon’s effective income tax rate. However, these items had a more noticeable impact to the rate in the first six months of 2019 due to the low relative net loss during the period.

Through the first six months of 2018, Devon maintained a 100% valuation allowance against its U.S. deferred tax assets resulting from prior year cumulative financial losses, oil and gas impairments, and significant net operating losses for U.S. federal and state income tax. However, upon closing the EnLink divestiture in the third quarter of 2018, Devon reassessed its position and determined that a full valuation allowance against its U.S. deferred tax assets was no longer necessary, maintaining only valuation allowances against certain deferred tax assets, including certain tax credits and state net operating losses.

On June 27, 2019, Devon completed the sale of all of its Canadian operating assets. Devon’s foreign earnings have not been considered indefinitely reinvested since the announcement of the plan to separate the assets in the first quarter of 2019. As the separation took the form of an asset sale and Devon has retained certain non-operating obligations to be settled over time, Devon has not recorded a deferred tax asset or corresponding valuation allowance related to its Canadian investment.

As the sale of all of its Canadian operating assets closed during the second quarter of 2019, Devon has recorded materially all tax impacts related to the Canadian business in discontinued operations. Additional information on these discontinued operations can be found in Note 18.

v3.19.2
Net Earnings (Loss) Per Share from Continuing Operations
6 Months Ended
Jun. 30, 2019
Earnings Per Share [Abstract]  
Net Earnings (Loss) Per Share from Continuing Operations

8.

Net Earnings (Loss) Per Share from Continuing Operations

The following table reconciles net earnings (loss) from continuing operations and weighted-average common shares outstanding used in the calculations of basic and diluted net earnings (loss) per share from continuing operations.

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

Net earnings (loss) from continuing operations:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net earnings (loss) from continuing operations

 

$

166

 

 

$

(496

)

 

$

(180

)

 

$

(704

)

Attributable to participating securities

 

 

(2

)

 

 

(1

)

 

 

(1

)

 

 

(1

)

Basic and diluted earnings (loss) from continuing operations

 

$

164

 

 

$

(497

)

 

$

(181

)

 

$

(705

)

Common shares:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common shares outstanding - total

 

 

415

 

 

 

521

 

 

 

425

 

 

 

524

 

Attributable to participating securities

 

 

(6

)

 

 

(6

)

 

 

(6

)

 

 

(6

)

Common shares outstanding - basic

 

 

409

 

 

 

515

 

 

 

419

 

 

 

518

 

Dilutive effect of potential common shares issuable

 

 

2

 

 

 

 

 

 

 

 

 

 

Common shares outstanding - diluted

 

 

411

 

 

 

515

 

 

 

419

 

 

 

518

 

Net earnings (loss) per share from continuing operations:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.40

 

 

$

(0.97

)

 

$

(0.43

)

 

$

(1.36

)

Diluted

 

$

0.40

 

 

$

(0.97

)

 

$

(0.43

)

 

$

(1.36

)

Antidilutive options (1)

 

 

1

 

 

 

2

 

 

 

1

 

 

 

2

 

 

(1)

Amounts represent options to purchase shares of Devon’s common stock that are excluded from the diluted net earnings per share calculations because the options are antidilutive.

v3.19.2
Other Comprehensive Earnings (Loss)
6 Months Ended
Jun. 30, 2019
Other Comprehensive Income Loss Net Of Tax Period Increase Decrease [Abstract]  
Other Comprehensive Earnings (Loss)

 

9.

Other Comprehensive Earnings (Loss)

Components of other comprehensive earnings consist of the following:

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

Foreign currency translation:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning accumulated foreign currency translation and other

 

$

1,194

 

 

$

1,261

 

 

$

1,159

 

 

$

1,309

 

Change in cumulative translation adjustment

 

 

43

 

 

 

(36

)

 

 

78

 

 

 

(96

)

Release of Canadian cumulative translation adjustment (1)

 

 

(1,237

)

 

 

 

 

 

(1,237

)

 

 

 

Income tax benefit

 

 

 

 

 

2

 

 

 

 

 

 

14

 

Ending accumulated foreign currency translation

 

 

 

 

 

1,227

 

 

 

 

 

 

1,227

 

Pension and postretirement benefit plans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning accumulated pension and postretirement benefits

 

 

(130

)

 

 

(139

)

 

 

(132

)

 

 

(143

)

Recognition of net actuarial loss and prior service cost in earnings (2)

 

 

17

 

 

 

3

 

 

 

20

 

 

 

7

 

Income tax expense

 

 

(4

)

 

 

 

 

 

(5

)

 

 

 

Ending accumulated pension and postretirement benefits

 

 

(117

)

 

 

(136

)

 

 

(117

)

 

 

(136

)

Accumulated other comprehensive earnings (loss), net of tax

 

$

(117

)

 

$

1,091

 

 

$

(117

)

 

$

1,091

 

 

(1)

In conjunction with the sale of all of its Canadian operating assets, Devon released the cumulative translation adjustment as part of its gain on the disposition of its Canadian business. See Note 18 for additional details.

(2)

These accumulated other comprehensive earnings components are included in the computation of net periodic benefit cost, which is a component of other expenses in the accompanying consolidated comprehensive statements of earnings. See Note 16 for additional details.

 

v3.19.2
Supplemental Information To Statements Of Cash Flows
6 Months Ended
Jun. 30, 2019
Supplemental Cash Flow Elements [Abstract]  
Supplemental Information To Statements Of Cash Flows

10.

Supplemental Information to Statements of Cash Flows

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

Changes in assets and liabilities, net:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accounts receivable

 

$

60

 

 

$

(131

)

 

$

31

 

 

$

(162

)

Other current assets

 

 

(5

)

 

 

6

 

 

 

7

 

 

 

(95

)

Other long-term assets

 

 

(6

)

 

 

(25

)

 

 

(15

)

 

 

(66

)

Accounts payable

 

 

15

 

 

 

73

 

 

 

(21

)

 

 

93

 

Revenues and royalties payable

 

 

(68

)

 

 

139

 

 

 

(60

)

 

 

210

 

Other current liabilities

 

 

(67

)

 

 

4

 

 

 

(90

)

 

 

95

 

Other long-term liabilities

 

 

12

 

 

 

(1

)

 

 

5

 

 

 

(4

)

Total

 

$

(59

)

 

$

65

 

 

$

(143

)

 

$

71

 

Supplementary cash flow data - total operations:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest paid (net of capitalized interest)

 

$

108

 

 

$

138

 

 

$

161

 

 

$

214

 

Income taxes paid (refunded)

 

$

10

 

 

$

(7

)

 

$

16

 

 

$

(6

)

 

v3.19.2
Accounts Receivable
6 Months Ended
Jun. 30, 2019
Accounts Receivable Net [Abstract]  
Accounts Receivable

11.

Accounts Receivable

Components of accounts receivable include the following:

 

 

 

June 30, 2019

 

 

December 31, 2018

 

Oil, gas and NGL sales

 

$

368

 

 

$

413

 

Joint interest billings

 

 

198

 

 

 

150

 

Marketing revenues

 

 

255

 

 

 

284

 

Other

 

 

27

 

 

 

15

 

Gross accounts receivable

 

 

848

 

 

 

862

 

Allowance for doubtful accounts

 

 

(6

)

 

 

(7

)

Net accounts receivable

 

$

842

 

 

$

855

 

v3.19.2
Property, Plant and Equipment
6 Months Ended
Jun. 30, 2019
Extractive Industries [Abstract]  
Property, Plant and Equipment

12.Property, Plant and Equipment

 

The following table presents the aggregate capitalized costs related to Devon’s oil and gas and non-oil and gas activities.

 

 

 

June 30, 2019

 

 

December 31, 2018

 

Property and equipment:

 

 

 

 

 

 

 

 

Proved

 

$

41,155

 

 

$

40,378

 

Unproved and properties under development

 

 

770

 

 

 

833

 

Total oil and gas

 

 

41,925

 

 

 

41,211

 

Less accumulated DD&A

 

 

(32,938

)

 

 

(32,229

)

Oil and gas property and equipment, net

 

 

8,987

 

 

 

8,982

 

Other property and equipment

 

 

1,735

 

 

 

1,707

 

Less accumulated DD&A

 

 

(685

)

 

 

(663

)

Other property and equipment, net

 

 

1,050

 

 

 

1,044

 

Property and equipment, net

 

$

10,037

 

 

$

10,026

 

 

v3.19.2
Debt And Related Expenses
6 Months Ended
Jun. 30, 2019
Debt Disclosure [Abstract]  
Debt and Related Expenses

13.

A summary of debt is as follows:

 

 

June 30, 2019

 

 

December 31, 2018

 

 

 

 

 

 

 

 

 

 

6.30% due January 15, 2019

 

$

 

 

$

162

 

5.85% due December 15, 2025

 

 

485

 

 

 

485

 

7.50% due September 15, 2027

 

 

73

 

 

 

73

 

7.875% due September 30, 2031 (1)

 

 

675

 

 

 

675

 

7.95% due April 15, 2032 (1)

 

 

366

 

 

 

366

 

5.60% due July 15, 2041

 

 

1,250

 

 

 

1,250

 

4.75% due May 15, 2042

 

 

750

 

 

 

750

 

5.00% due June 15, 2045

 

 

750

 

 

 

750

 

Net discount on debentures and notes

 

 

(20

)

 

 

(21

)

Debt issuance costs

 

 

(35

)

 

 

(36

)

Total debt

 

 

4,294

 

 

 

4,454

 

Less amount classified as short-term debt

 

 

 

 

 

162

 

Total long-term debt

 

$

4,294

 

 

$

4,292

 

 

 

(1)

These senior notes were included in the 2018 tender offer repurchases discussed below.


Credit Lines

Devon has a $3.0 billion Senior Credit Facility. As of June 30, 2019, Devon had no outstanding borrowings under the Senior Credit Facility and had issued $3 million in outstanding letters of credit under this facility. The Senior Credit Facility contains only one material financial covenant. This covenant requires Devon’s ratio of total funded debt to total capitalization, as defined in the credit agreement, to be no greater than 65%. Under the terms of the credit agreement, total capitalization is adjusted to add back noncash financial write-downs such as impairments. As of June 30, 2019, Devon was in compliance with this covenant with a debt-to-capitalization ratio of 23.4%.

 

In connection with the closing of the sale of its Canadian business, Devon reallocated and terminated all Canadian commitments under the Senior Credit Facility in accordance with the terms of the credit agreement governing the Senior Credit Facility. The termination of the Canadian subfacility was effective as of June 27, 2019, and such termination did not decrease the $3.0 billion in total revolving commitments under, or otherwise modify the terms of, the Senior Credit Facility.

Retirement of Senior Notes

In January 2019, Devon repaid the $162 million of 6.30% senior notes at maturity.

In the first quarter of 2018, Devon completed tender offers to repurchase $807 million in aggregate principal amount of debt securities, using cash on hand. This included $384 million of the 7.875% senior notes due September 30, 2031 and $423 million of the 7.95% senior notes due April 15, 2032. Devon recognized a $312 million loss on early retirement of debt, consisting of $304 million in cash retirement costs and $8 million of noncash charges. These costs, along with other charges associated with retiring the debt, are included in net financing costs in the consolidated comprehensive statements of earnings.

Net Financing Costs

The following schedule includes the components of net financing costs.

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

Interest based on debt outstanding

 

$

65

 

 

$

68

 

 

$

130

 

 

$

151

 

Early retirement of debt

 

 

 

 

 

 

 

 

 

 

 

312

 

Other

 

 

1

 

 

 

(4

)

 

 

(4

)

 

 

(10

)

Total net financing costs

 

$

66

 

 

$

64

 

 

$

126

 

 

$

453

 

 

v3.19.2
Leases
6 Months Ended
Jun. 30, 2019
Leases [Abstract]  
Leases

14.Leases

 

Devon adopted ASU No. 2016-02, Leases (Topic 842), as of January 1, 2019, using the modified retrospective transition approach. ASC 842 supersedes the previous lease accounting requirements in ASC 840 and requires lessees to recognize leases on-balance sheet and disclose key information about leasing arrangements. ASC 842 establishes a right-of-use model that requires a lessee to recognize a right-of-use asset and lease liability on the balance sheet for all leases with a term longer than 12 months. At adoption, using the modified retrospective transition approach, Devon recorded right-of-use lease assets of $394 million and lease liabilities of $380 million. Additionally, Devon recorded a $24 million before tax, $19 million net of tax, cumulative-effect adjustment to reduce retained earnings. Comparative periods have been presented in accordance with ASC Topic 840 and do not include any retrospective adjustments to reflect the adoption of Topic 842. Excluding land easements and rights-of-way, all leases that existed at January 1, 2019 or were entered into or modified thereafter, are accounted for under Topic 842. Devon elected the practical expedient provided in the standard that allows the new guidance to be applied prospectively to all new or modified land easements and rights-of-way. Devon also elected a policy not to recognize right-of-use assets and lease liabilities related to short-term leases with terms of 12 months or less. Additionally, Devon elected to account for lease components separately from the nonlease components.

 

Devon made certain significant assumptions and judgments in determining its right-of-use asset and lease liability balances. First is the determination of whether a contract contains a lease. Devon considered the presence of an identified asset that is physically distinct, and for which the supplier does not have substantive substitution rights and whether Devon has the right to control the underlying asset. Second, Devon assessed lease terms and considered whether Devon is reasonably certain to extend leases or exercise purchase options. Certain of Devon’s leases include one or more options to renew, with renewal terms that can extend the lease term for additional years. Certain leases also include options to purchase the leased property. For options to renew or purchase that Devon

is reasonably certain to exercise, these costs are recognized as part of the right-of-use assets and lease liabilities. Third, significant judgments have been made in determining discount rates. Devon estimates discount rates using market rates that approximate collateralized borrowings over the remaining term of Devon’s lease payments.

 

Devon’s right-of-use operating lease assets are for certain leases related to real estate, drilling rigs and other equipment related to the exploration, development and production of oil and gas. Devon’s right-of-use financing lease assets are related to real estate. Certain of Devon’s lease agreements include variable payments based on usage or rental payments adjusted periodically for inflation. Devon’s lease agreements do not contain any material residual value guarantees or restrictive covenants.  

 

The following table presents Devon’s right-of-use assets and lease liabilities as of June 30, 2019.

 

 

 

Finance

 

 

Operating

 

 

Total

 

Right-of-use assets

 

$

209

 

 

$

64

 

 

$

273

 

Lease liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

Current lease liabilities (1)

 

$

7

 

 

$

39

 

 

$

46

 

Long-term lease liabilities

 

 

239

 

 

 

24

 

 

 

263

 

Total lease liabilities

 

$

246

 

 

$

63

 

 

$

309

 

 

(1)

Current lease liabilities are included in other current liabilities on the consolidated balance sheets.

 

The following table presents Devon’s total lease cost.

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

 

June 30, 2019

 

Operating lease cost

Property, plant and equipment; G&A

 

$

12

 

 

$

25

 

Short-term lease cost (1)

Property, plant and equipment; G&A

 

 

21

 

 

 

45

 

Financing lease cost:

 

 

 

 

 

 

 

 

 

Amortization of right-of-use assets

DD&A

 

 

6

 

 

 

12

 

Interest on lease liabilities

Net financing costs

 

 

2

 

 

 

5

 

Variable lease cost

G&A

 

 

 

 

 

1

 

Lease income

G&A

 

 

(1

)

 

 

(2

)

Net lease cost

 

 

$

40

 

 

$

86

 

 

(1)

Short-term lease cost excludes leases with terms of one month or less.

 

The following table presents Devon’s additional lease information for the three and six months ended June 30, 2019.

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

June 30, 2019

 

 

June 30, 2019

 

 

 

Finance

 

 

Operating

 

 

Finance

 

 

Operating

 

Cash outflows for lease liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating cash flows

 

$

1

 

 

$

 

 

$

3

 

 

$

1

 

Investing cash flows

 

$

 

 

$

12

 

 

$

 

 

$

27

 

Right-of-use assets obtained in exchange for new

   lease liabilities

 

$

 

 

$

1

 

 

$

 

 

$

1

 

Weighted average remaining lease term (years)

 

 

8.5

 

 

 

1.9

 

 

 

8.5

 

 

 

1.9

 

Weighted average discount rate

 

 

4.2

%

 

 

3.2

%

 

 

4.2

%

 

 

3.2

%

 

The following table presents Devon’s maturity analysis as of June 30, 2019 for leases expiring in each of the next 5 years and thereafter.

 

 

Finance

 

 

Operating

 

 

Total (1)

 

2019

 

$

3

 

 

$

22

 

 

$

25

 

2020

 

 

7

 

 

 

32

 

 

 

39

 

2021

 

 

7

 

 

 

8

 

 

 

15

 

2022

 

 

8

 

 

 

1

 

 

 

9

 

2023

 

 

8

 

 

 

1

 

 

 

9

 

Thereafter

 

 

306

 

 

 

1

 

 

 

307

 

Total lease payments

 

 

339

 

 

 

65

 

 

 

404

 

Less: interest

 

 

(93

)

 

 

(2

)

 

 

(95

)

Present value of lease liabilities

 

$

246

 

 

$

63

 

 

$

309

 

 

(1)

Under previous lease accounting standard, ASC 840, Devon’s lease obligations as of December 31, 2018 expiring in each of the next 5 years and thereafter were $61 million for 2019, $48 million for 2020, $18 million for 2021, $9 million for 2022, $8 million for 2023 and $33 million thereafter.

 

Devon rents or subleases certain real estate to third parties. The following table presents Devon’s expected lease income as of June 30, 2019 for each of the next 5 years and thereafter.

 

 

 

 

Operating

 

 

 

Lease Income (1)

 

2019

 

$

3

 

2020

 

 

6

 

2021

 

 

7

 

2022

 

 

7

 

2023

 

 

7

 

Thereafter

 

 

53

 

Total

 

$

83

 

 

(1)

Included in operating lease income is approximately $30 million related to leases which have been executed but not yet commenced.

 

v3.19.2
Asset Retirement Obligations
6 Months Ended
Jun. 30, 2019
Asset Retirement Obligation Disclosure [Abstract]  
Asset Retirement Obligations

15.

Asset Retirement Obligations

 

The following table presents the changes in Devon’s asset retirement obligations.

 

 

Six Months Ended June 30,

 

 

 

2019

 

 

2018

 

Asset retirement obligations as of beginning of period

 

$

623

 

 

$

704

 

Liabilities incurred

 

 

8

 

 

 

17

 

Liabilities settled and divested

 

 

(40

)

 

 

(58

)

Revision of estimated obligation

 

 

(63

)

 

 

 

Accretion expense on discounted obligation

 

 

15

 

 

 

18

 

Asset retirement obligations as of end of period

 

 

543

 

 

 

681

 

Less current portion

 

 

15

 

 

 

18

 

Asset retirement obligations, long-term

 

$

528

 

 

$

663

 

 

During the first six months of 2019, Devon reduced its asset retirement obligations by $63 million, primarily due to changes in the future cost estimates and retirement dates for its oil and gas assets.

 

During the second quarter of 2018, Devon reduced its asset retirement obligations by $34 million for those obligations that were assumed by purchasers of certain Barnett Shale assets. For additional information, see Note 2.

v3.19.2
Retirement Plans
6 Months Ended
Jun. 30, 2019
Compensation And Retirement Disclosure [Abstract]  
Retirement Plans

16.

Retirement Plans

 

The following table presents the components of net periodic benefit cost for Devon’s pension benefits plan. There was $1 million of net periodic benefit credit for postretirement benefit plans for all periods presented below.

 

 

 

Pension Benefits

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

Service cost

 

$

2

 

 

$

3

 

 

$

3

 

 

$

5

 

Interest cost

 

 

8

 

 

 

10

 

 

 

17

 

 

 

20

 

Expected return on plan assets

 

 

(9

)

 

 

(14

)

 

 

(19

)

 

 

(27

)

Amortization of prior service cost (1)

 

 

 

 

 

1

 

 

 

1

 

 

 

1

 

Net actuarial loss (1)

 

 

3

 

 

 

3

 

 

 

6

 

 

 

7

 

Net periodic benefit cost (2)

 

$

4

 

 

$

3

 

 

$

8

 

 

$

6

 

 

(1)

These net periodic benefit costs were reclassified out of other comprehensive earnings.

(2)

The service cost component of net periodic benefit cost is included in G&A expense and the remaining components of net periodic benefit costs are included in other expenses in the accompanying consolidated comprehensive statements of earnings.

 

v3.19.2
Stockholders' Equity
6 Months Ended
Jun. 30, 2019
Stockholders Equity Note [Abstract]  
Stockholders' Equity

17.

Stockholders’ Equity

Share Repurchase Program

In March 2018, Devon announced a share repurchase program to buy up to $1.0 billion of its common stock. In June 2018, in conjunction with the announced divestiture of its investment in EnLink and the General Partner, Devon increased its program by an additional $3.0 billion. In February 2019, Devon’s Board of Directors authorized an expansion of the share repurchase program by an additional $1.0 billion, bringing the total to $5.0 billion. The share repurchase program expires December 31, 2019.

The table below provides information regarding purchases of Devon’s common stock that were made during 2018 and the first six months of 2019 (shares in thousands).  

 

 

Total Number of

Shares Purchased

 

 

Dollar Value of

Shares Purchased

 

 

Average Price Paid

per Share

 

First quarter 2018:

 

 

 

 

 

 

 

 

 

 

 

 

Open-Market

 

 

2,561

 

 

$

82

 

 

$

32.19

 

Second quarter 2018:

 

 

 

 

 

 

 

 

 

 

 

 

Open-Market

 

 

11,154

 

 

 

439

 

 

 

39.35

 

Third quarter 2018:

 

 

 

 

 

 

 

 

 

 

 

 

Open-Market

 

 

16,492

 

 

 

712

 

 

 

43.13

 

ASR

 

 

24,330

 

 

 

1,000

 

 

 

41.10

 

Total

 

 

40,822

 

 

 

1,712

 

 

 

41.92

 

Fourth quarter 2018:

 

 

 

 

 

 

 

 

 

 

 

 

Open-Market

 

 

23,612

 

 

 

745

 

 

 

31.57

 

First quarter 2019:

 

 

 

 

 

 

 

 

 

 

 

 

Open-Market

 

 

36,141

 

 

 

1,024

 

 

 

28.33

 

Second quarter 2019:

 

 

 

 

 

 

 

 

 

 

 

 

Open-Market

 

 

5,911

 

 

 

159

 

 

 

27.01

 

Total inception-to-date

 

 

120,201

 

 

$

4,161

 

 

$

34.62

 

 

Dividends

 

The table below summarizes the dividends Devon paid on its common stock.

 

 

Amounts

 

 

Rate Per Share

 

Quarter Ended 2019:

 

 

 

 

 

 

 

First quarter

$

34

 

 

$

0.08

 

Second quarter

 

37

 

 

$

0.09

 

Total year-to-date

$

71

 

 

 

 

 

Quarter Ended 2018:

 

 

 

 

 

 

 

First quarter

$

32

 

 

$

0.06

 

Second quarter

 

42

 

 

$

0.08

 

Total year-to-date

$

74

 

 

 

 

 

Devon raised its quarterly dividend by 12.5%, to $0.09 per share, beginning in the second quarter of 2019. In the second quarter of 2018, Devon increased the quarterly dividend rate from $0.06 to $0.08 per share.

v3.19.2
Discontinued Operations and Assets Held for Sale
6 Months Ended
Jun. 30, 2019
Discontinued Operations And Disposal Groups [Abstract]  
Discontinued Operations and Assets Held for Sale

 

18.

Discontinued Operations and Assets Held For Sale

 

 

Canada

 

On May 29, 2019, Devon announced it had entered into an agreement to sell all of its operating assets and operations in Canada to Canadian Natural Resources Limited. Devon concluded that the transaction was a strategic shift and met the requirements of assets held for sale and discontinued operations upon the authorization to enter the agreement by Devon’s Board of Directors. As part of its assessment, Devon considered the following: 1) Devon is exiting its entire heavy oil and Canadian operations; 2) Devon’s Canadian operations is a separate reportable segment and is a component of Devon’s business; and 3) the transaction resulted in a material reduction in total assets, revenues, net earnings and total proved reserves. As a result, Devon has classified the results of operations and cash flows related to its Canadian operations as discontinued operations on its consolidated financial statements. Additionally, Devon ceased depreciation and amortization for all plant, property and equipment and intangible assets classified as assets held for sale on the date the sales agreement was approved by the Board of Directors.

 

On June 27, 2019, Devon completed the sale of its Canadian business for $2.6 billion ($3.4 billion Canadian dollars), net of purchase price adjustments, and recognized a pre-tax gain of $189 million ($460 million net of tax, primarily due to a significant deferred tax benefit). Current (cash) income tax associated with the sale was approximately $110 million. The disposition of all of Devon’s Canadian operating assets resulted in Devon releasing its historical cumulative foreign currency translation adjustment of $1.2 billion from accumulated other comprehensive earnings to be included within the gain computation. The historical cumulative foreign currency translation portion of the gain is not taxable. Additionally, $370 million of the Canadian cash balance is restricted for funding certain tax and other obligations related to the Canadian business and is classified as cash restricted for discontinued operations on the consolidated balance sheets.

 

In conjunction with the sale of Devon’s Canadian business, Devon recognized $273 million of restructuring and asset impairment related charges. Canadian Natural Resources Limited has reimbursed Devon for approximately $50 million of these restructuring costs, under the terms of the disposition agreement. Along with certain tax obligations, these costs will be funded with the restricted cash described above. These charges consist of $154 million related to a firm transportation agreement abandonment and $55 million related to office lease abandonment and related asset impairment charges. Cash payments for the abandonment charges total approximately $6 million per quarter. Additionally, there are $64 million of employee related costs, including approximately $40 million of noncash accelerated vesting of employee stock awards. As mentioned above, Canadian Natural Resources Limited reimbursed the Company for approximately $50 million of these costs pursuant to the disposition agreement and Devon expects to fund the remaining costs in the second half of 2019.

 

Prior to the second quarter of 2019, Devon’s Canadian business maintained a valuation allowance against certain capital loss carryforwards and net operating losses. As a result of the sale of all of Devon’s Canadian operating assets and the lack of future forecasted income, all but approximately $34 million of the Canadian deferred tax assets have been offset with a valuation allowance.

 

As announced on June 27, 2019, Devon utilized a portion of the sales proceeds to early retire its $500 million of the 4.00% senior notes due July 15, 2021 and $1.0 billion of the 3.25% senior notes due May 15, 2022. Devon expects to recognize a loss on the early retirement of these notes in the third quarter of 2019 consisting of $52 million in cash retirement costs and $6 million of noncash charges.

 

EnLink

 

On June 6, 2018, Devon announced that it had entered into an agreement to sell its aggregate ownership interests in EnLink and the General Partner for $3.125 billion. Upon entering into the agreement to sell its ownership interest in June 2018, Devon concluded that the transaction was a strategic shift and met the requirements of assets held for sale and discontinued operations. As a result, Devon classified the results of operations and cash flows related to EnLink and the General Partner as discontinued operations on its consolidated financial statements.

 

On July 18, 2018, Devon completed the sale of its aggregate ownership interests in EnLink and the General Partner for $3.125 billion and recognized a gain of approximately $2.6 billion ($2.2 billion after-tax). Current (cash) income tax associated with the transaction was approximately $12 million. The vast majority of the tax effect relates to deferred tax expense offset by the valuation allowance adjustment.

 

As part of the sale agreement, Devon extended its fixed-fee gathering and processing contracts with respect to the Bridgeport and Cana plants with EnLink through 2029. Although the agreements were extended to 2029, the minimum volume commitments for the Bridgeport and Cana plants expired at the end of 2018. Devon has minimum volume commitments for gathering and processing of 77-128 MMcf/d with EnLink at the Chisholm plant through early 2021.

 

Prior to the divestment of Devon’s aggregate ownership of EnLink and the General Partner, certain activity between Devon and EnLink were eliminated in consolidation. Subsequent to the divestment, all activity related to EnLink represent third-party transactions and are no longer eliminated in consolidation.

 

During the first six months of 2019, Devon had net outflows of approximately $280 million with EnLink, which primarily related to gathering and processing expenses. These net outflows represent gross cash amounts and not net working interest amounts.

 

 


The following table presents the amounts reported in the consolidated comprehensive statements of earnings as discontinued operations.

 

 

Three months ended June 30,

 

 

Six months ended June 30,

 

 

 

Canada

 

 

EnLink

 

 

Total

 

 

Canada

 

 

EnLink

 

 

Total

 

2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Upstream revenues

 

$

388

 

 

$

 

 

$

388

 

 

$

635

 

 

$

 

 

$

635

 

Marketing and midstream revenues

 

 

12

 

 

 

 

 

 

12

 

 

 

38

 

 

 

 

 

 

38

 

Total revenues

 

 

400

 

 

 

 

 

 

400

 

 

 

673

 

 

 

 

 

 

673

 

Production expenses

 

 

153

 

 

 

 

 

 

153

 

 

 

294

 

 

 

 

 

 

294

 

Exploration expenses

 

 

4

 

 

 

 

 

 

4

 

 

 

13

 

 

 

 

 

 

13

 

Marketing and midstream expenses

 

 

9

 

 

 

 

 

 

9

 

 

 

18

 

 

 

 

 

 

18

 

Depreciation, depletion and amortization

 

 

49

 

 

 

 

 

 

49

 

 

 

128

 

 

 

 

 

 

128

 

Asset impairments

 

 

37

 

 

 

 

 

 

37

 

 

 

37

 

 

 

 

 

 

37

 

Asset dispositions

 

 

(189

)

 

 

 

 

 

(189

)

 

 

(189

)

 

 

 

 

 

(189

)

General and administrative expenses

 

 

13

 

 

 

 

 

 

13

 

 

 

31

 

 

 

 

 

 

31

 

Financing costs, net

 

 

13

 

 

 

 

 

 

13

 

 

 

26

 

 

 

 

 

 

26

 

Restructuring and transaction costs

 

 

236

 

 

 

 

 

 

236

 

 

 

239

 

 

 

 

 

 

239

 

Other expenses

 

 

31

 

 

 

 

 

 

31

 

 

 

3

 

 

 

 

 

 

3

 

Total expenses

 

 

356

 

 

 

 

 

 

356

 

 

 

600

 

 

 

 

 

 

600

 

Earnings from discontinued operations before income taxes

 

 

44

 

 

 

 

 

 

44

 

 

 

73

 

 

 

 

 

 

73

 

Income tax benefit

 

 

(285

)

 

 

 

 

 

(285

)

 

 

(285

)

 

 

 

 

 

(285

)

Net earnings from discontinued operations, net of tax

 

$

329

 

 

$

 

 

$

329

 

 

$

358

 

 

$

 

 

$

358

 

2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Upstream revenues

 

$

303

 

 

$

 

 

$

303

 

 

$

605

 

 

$

 

 

$

605

 

Marketing and midstream revenues

 

 

24

 

 

 

1,595

 

 

 

1,619

 

 

 

41

 

 

 

3,207

 

 

 

3,248

 

Total revenues

 

 

327

 

 

 

1,595

 

 

 

1,922

 

 

 

646

 

 

 

3,207

 

 

 

3,853

 

Production expenses

 

 

166

 

 

 

 

 

 

166

 

 

 

314

 

 

 

 

 

 

314

 

Exploration expenses

 

 

6

 

 

 

 

 

 

6

 

 

 

18

 

 

 

 

 

 

18

 

Marketing and midstream expenses

 

 

11

 

 

 

1,269

 

 

 

1,280

 

 

 

18

 

 

 

2,610

 

 

 

2,628

 

Depreciation, depletion and amortization

 

 

78

 

 

 

106

 

 

 

184

 

 

 

172

 

 

 

244

 

 

 

416

 

General and administrative expenses

 

 

18

 

 

 

31

 

 

 

49

 

 

 

42

 

 

 

58

 

 

 

100

 

Financing costs, net

 

 

(2

)

 

 

45

 

 

 

43

 

 

 

(4

)

 

 

89

 

 

 

85

 

Restructuring and transaction costs

 

 

9

 

 

 

 

 

 

9

 

 

 

9

 

 

 

 

 

 

9

 

Other expenses

 

 

39

 

 

 

(5

)

 

 

34

 

 

 

109

 

 

 

(7

)

 

 

102

 

Total expenses

 

 

325

 

 

 

1,446

 

 

 

1,771

 

 

 

678

 

 

 

2,994

 

 

 

3,672

 

Earnings (loss) from discontinued operations before income taxes

 

 

2

 

 

 

149

 

 

 

151

 

 

 

(32

)

 

 

213

 

 

 

181

 

Income tax expense (benefit)

 

 

(20

)

 

 

10

 

 

 

(10

)

 

 

(51

)

 

 

16

 

 

 

(35

)

Net earnings from discontinued operations, net of tax

 

 

22

 

 

 

139

 

 

 

161

 

 

 

19

 

 

 

197

 

 

 

216

 

Net earnings attributable to noncontrolling interests

 

 

 

 

 

90

 

 

 

90

 

 

 

 

 

 

134

 

 

 

134

 

Net earnings from discontinued operations, attributable to Devon

 

$

22

 

 

$

49

 

 

$

71

 

 

$

19

 

 

$

63

 

 

$

82

 

 

The following table presents the carrying amounts of the assets and liabilities associated with discontinued operations on the consolidated balance sheets. The assets and liabilities associated with discontinued operations at June 30, 2019 and December 31, 2018 are primarily related to the divestiture of Devon’s Canadian business. Included within assets and liabilities associated with discontinued operations at December 31, 2018 are $197 million of assets and $69 million of liabilities related to the divestiture of non-core upstream Permian Basin assets which closed in January 2019 as further discussed in Note 2.

 

 

 

June 30, 2019

 

 

December 31, 2018

 

Accounts receivable

 

$

111

 

 

$

37

 

Other current assets

 

 

20

 

 

 

246

 

Current assets associated with discontinued operations

 

 

131

 

 

 

283

 

Oil and gas property and equipment, based on

   successful efforts accounting, net

 

 

 

 

 

3,829

 

Other property and equipment, net

 

 

 

 

 

78

 

Other long-term assets

 

 

99

 

 

 

79

 

Long-term assets associated with discontinued operations

 

 

99

 

 

 

3,986

 

Total assets associated with discontinued operations

 

$

230

 

 

$

4,269

 

 

 

 

 

 

 

 

 

 

Accounts payable

 

$

97

 

 

$

101

 

Revenues and royalties payable

 

 

16

 

 

 

67

 

Short-term debt (1)

 

 

1,494

 

 

 

 

Other current liabilities

 

 

287

 

 

 

170

 

Current liabilities associated with discontinued operations

 

 

1,894

 

 

 

338

 

Long-term debt (1)

 

 

 

 

 

1,493

 

Asset retirement obligations

 

 

 

 

 

424

 

Other long-term liabilities

 

 

189

 

 

 

20

 

Deferred income taxes

 

 

 

 

 

348

 

Long-term liabilities associated with discontinued operations

 

 

189

 

 

 

2,285

 

Total liabilities associated with discontinued operations

 

$

2,083

 

 

$

2,623

 

 

 

(1)

Includes the $500 million 4.00% Senior Notes due July 15, 2021 and $1.0 billion 3.25% Senior Notes due May 15, 2022 that were retired early in July 2019 utilizing a portion of the proceeds from the sale of Devon’s Canadian business.

 

v3.19.2
Commitments And Contingencies
6 Months Ended
Jun. 30, 2019
Commitments And Contingencies Disclosure [Abstract]  
Commitments And Contingencies

19.

Commitments and Contingencies

Devon is party to various legal actions arising in the normal course of business. Matters that are probable of unfavorable outcome to Devon and which can be reasonably estimated are accrued. Such accruals are based on information known about the matters, Devon’s estimates of the outcomes of such matters and its experience in contesting, litigating and settling similar matters. None of the actions are believed by management to likely involve future amounts that would be material to Devon’s financial position or results of operations after consideration of recorded accruals. Actual amounts could differ materially from management’s estimates.

Royalty Matters

Numerous oil and natural gas producers and related parties, including Devon, have been named in various lawsuits alleging royalty underpayments. Devon is currently named as a defendant in a number of such lawsuits, including some lawsuits in which the plaintiffs seek to certify classes of similarly situated plaintiffs. Among the allegations typically asserted in these suits are claims that Devon used below-market prices, made improper deductions, used improper measurement techniques and entered into gas purchase and processing arrangements with affiliates that resulted in underpayment of royalties in connection with oil, natural gas and NGLs produced and sold. Devon is also involved in governmental agency proceedings and royalty audits and is subject to related contracts and regulatory controls in the ordinary course of business, some that may lead to additional royalty claims. Devon does not currently believe that it is subject to material exposure with respect to such royalty matters.

Environmental Matters

Devon is subject to certain laws and regulations relating to environmental remediation activities associated with past operations, such as the Comprehensive Environmental Response, Compensation, and Liability Act and similar state statutes. In response to liabilities associated with these activities, loss accruals primarily consist of estimated uninsured remediation costs. Devon’s monetary exposure for environmental matters is not expected to be material.

Beginning in 2013, various parishes in Louisiana filed suit against more than 100 oil and gas companies, including Devon, alleging that the companies’ operations and activities in certain fields violated the State and Local Coastal Resource Management Act of 1978, as amended, and caused substantial environmental contamination, subsidence and other environmental damages to land and

water bodies located in the coastal zone of Louisiana. The plaintiffs seek, among other things, the payment of the costs necessary to clear, re-vegetate and otherwise restore the allegedly impacted areas. Although Devon cannot predict the ultimate outcome of these matters, Devon is vigorously defending against these claims.

Other Matters

Devon is involved in other various legal proceedings incidental to its business. However, to Devon’s knowledge, there were no material pending legal proceedings to which Devon is a party or to which any of its property is subject.

v3.19.2
Fair Value Measurements
6 Months Ended
Jun. 30, 2019
Fair Value Disclosures [Abstract]  
Fair Value Measurements

 

20.

Fair Value Measurements

The following table provides carrying value and fair value measurement information for certain of Devon’s financial assets and liabilities. The carrying values of cash, cash restricted for discontinued operations, accounts receivable, other current receivables, accounts payable, other current payables, accrued expenses and lease liabilities included in the accompanying consolidated balance sheets approximated fair value at June 30, 2019 and December 31, 2018, as applicable. Therefore, such financial assets and liabilities are not presented in the following table.

 

 

 

 

 

 

 

 

 

 

 

Fair Value Measurements Using:

 

 

 

Carrying

 

 

Total Fair

 

 

Level 1

 

 

Level 2

 

 

 

Amount

 

 

Value

 

 

Inputs

 

 

Inputs

 

June 30, 2019 assets (liabilities):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash equivalents

 

$

2,784

 

 

$

2,784

 

 

$

2,784

 

 

$

 

Commodity derivatives

 

$

127

 

 

$

127

 

 

$

 

 

$

127

 

Commodity derivatives

 

$

(7

)

 

$

(7

)

 

$

 

 

$

(7

)

Debt

 

$

(4,294

)

 

$

(5,311

)

 

$

 

 

$

(5,311

)

December 31, 2018 assets (liabilities):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash equivalents

 

$

1,505

 

 

$

1,505

 

 

$

1,405

 

 

$

100

 

Commodity derivatives

 

$

674

 

 

$

674

 

 

$

 

 

$

674

 

Commodity derivatives

 

$

(33

)

 

$

(33

)

 

$

 

 

$

(33

)

Debt

 

$

(4,454

)

 

$

(4,494

)

 

$

 

 

$

(4,494

)

 

The following methods and assumptions were used to estimate the fair values in the table above.

Level 1 Fair Value Measurements

Cash equivalents – Amounts consist primarily of money market investments and the fair value approximates the carrying value.

Level 2 Fair Value Measurements

 

Cash equivalents – Amounts primarily consist of Canadian agency and provincial securities investments. The fair value approximates the carrying value.

 

Commodity derivatives – The fair value of commodity derivatives is estimated using internal discounted cash flow calculations based upon forward curves and data obtained from independent third parties for contracts with similar terms or data obtained from counterparties to the agreements.

 

Debt – Devon’s debt instruments do not actively trade in an established market. The fair values of its debt are estimated based on rates available for debt with similar terms and maturity.

 

v3.19.2
Summary Of Significant Accounting Policies (Policies)
6 Months Ended
Jun. 30, 2019
Accounting Policies [Abstract]  
Segment Information

Segment Information

 

Subsequent to the sale of Devon’s Canadian business in 2019 discussed in Note 18, Devon’s oil and gas exploration and production activities are solely focused in the U.S. For financial reporting purposes, Devon aggregates its U.S. operating segments into one reporting segment due to the similar nature of its business. With the reclassification of Devon’s Canadian operations to discontinued operations and assets and liabilities associated with discontinued operations, Devon now has one reporting segment, which is reflected in the consolidated financial statements.

 

Recent Accounting Standards

Recently Adopted Accounting Standards

 

In January 2019, Devon adopted ASU 2016-02, Leases (Topic 842), using the modified retrospective method. See Note 14 for further discussion regarding Devon’s adoption of the leases standard.

The SEC released Final Rule No. 33 -10532, Disclosure Update and Simplification, which amends various SEC disclosure requirements determined to be redundant, duplicative, overlapping, outdated or superseded as part of the SEC’s ongoing disclosure effectiveness initiative. The rule was effective November 5, 2018. The rule amended numerous SEC rules, items and forms covering a diverse group of topics. Devon has implemented these required changes which generally reduced or eliminated disclosures. Devon adopted the requirement of presenting current and comparative quarterly stockholders’ equity roll forwards in the first quarter of 2019.

The SEC released Final Rule Release No. 33-10618, FAST Act Modernization and Simplification of Regulation S-K, which amends Regulation S-K to modernize and simplify certain disclosure requirements in a manner that reduces costs and burdens on registrants while continuing to provide all material information to investors. The rule became effective May 2, 2019. The rule amended numerous SEC rules, items and forms covering a diverse group of topics, primarily focusing on reducing or eliminating disclosures. Other than presentation, this adoption did not have a material impact on Devon’s consolidated financial statements.

Issued Accounting Standards Not Yet Adopted

The FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Changes to the Disclosure Requirements for Fair Value Measurement. This ASU will eliminate, add and modify certain disclosure requirements for fair value measurement. The ASU is effective for annual and interim periods beginning January 1, 2020, with early adoption permitted for either the entire standard or only the provisions that eliminate or modify requirements. The ASU requires the additional disclosure requirements to be adopted using a retrospective approach. Devon is currently evaluating the provisions of this ASU and assessing the impact it may have on its disclosures in the notes to the consolidated financial statements.

 

The FASB issued ASU 2018-15, Intangibles, Goodwill and Other Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract. This ASU will require a customer in a cloud computing arrangement (i.e., hosting arrangement) that is a service contract to follow the internal-use software guidance in ASC 350-40 to determine which implementation costs to capitalize as assets or expense as incurred. Capitalized implementation costs related to a hosting arrangement that is a service contract will be amortized over the term of the hosting arrangement, beginning when the module or component of the hosting arrangement is ready for its intended use. This ASU is effective for annual and interim periods beginning January 1, 2020, with early adoption permitted. Entities have the option to adopt the ASU using either a retrospective approach or a prospective approach applied to all implementation costs incurred after the date of the adoption. Devon is currently evaluating the provisions of this ASU and assessing the impact it may have on its consolidated financial statements.

Commitments And Contingencies

Devon is party to various legal actions arising in the normal course of business. Matters that are probable of unfavorable outcome to Devon and which can be reasonably estimated are accrued. Such accruals are based on information known about the matters, Devon’s estimates of the outcomes of such matters and its experience in contesting, litigating and settling similar matters. None of the actions are believed by management to likely involve future amounts that would be material to Devon’s financial position or results of operations after consideration of recorded accruals. Actual amounts could differ materially from management’s estimates.

v3.19.2
Summary Of Significant Accounting Policies (Tables)
6 Months Ended
Jun. 30, 2019
Accounting Policies [Abstract]  
Schedule of Revenue from Contracts with Customers Disaggregated Based on Type of Good

The following table presents revenue from contracts with customers that are disaggregated based on the type of good.

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

Oil

 

$

753

 

 

$

808

 

 

$

1,414

 

 

$

1,485

 

Gas

 

 

147

 

 

 

207

 

 

 

380

 

 

 

462

 

NGL

 

 

151

 

 

 

238

 

 

 

325

 

 

 

436

 

Oil, gas and NGL revenues from

   contracts with customers

 

 

1,051

 

 

 

1,253

 

 

 

2,119

 

 

 

2,383

 

Oil, gas and NGL derivatives

 

 

140

 

 

 

(487

)

 

 

(465

)

 

 

(600

)

Upstream revenues

 

 

1,191

 

 

 

766

 

 

 

1,654

 

 

 

1,783

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Oil

 

 

394

 

 

 

766

 

 

 

750

 

 

 

1,297

 

Gas

 

 

172

 

 

 

160

 

 

 

390

 

 

 

315

 

NGL

 

 

164

 

 

 

230

 

 

 

355

 

 

 

406

 

Total marketing revenues from

   contracts with customers

 

 

730

 

 

 

1,156

 

 

 

1,495

 

 

 

2,018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total revenues

 

$

1,921

 

 

$

1,922

 

 

$

3,149

 

 

$

3,801

 

v3.19.2
Derivative Financial Instruments (Tables)
6 Months Ended
Jun. 30, 2019
Derivative [Line Items]  
Schedule Of Derivative Financial Instruments Included In Consolidated Comprehensive Statements Of Earnings And Consolidated Balance Sheets

The following table presents the net gains and losses by derivative financial instrument type followed by the corresponding individual consolidated comprehensive statements of earnings caption.

 

 

Three Months

Ended June 30,

 

 

Six Months

Ended June 30,

 

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

Commodity derivatives:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Upstream revenues

 

$

140

 

 

$

(487

)

 

$

(465

)

 

$

(600

)

Marketing revenues

 

 

 

 

 

(1

)

 

 

1

 

 

 

(1

)

Interest rate derivatives:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other expenses

 

 

 

 

 

19

 

 

 

 

 

 

65

 

Net gains (losses) recognized

 

$

140

 

 

$

(469

)

 

$

(464

)

 

$

(536

)

 

The following table presents the derivative fair values by derivative financial instrument type followed by the corresponding individual consolidated balance sheet caption.

 

 

June 30, 2019

 

 

December 31, 2018

 

Commodity derivative assets:

 

 

 

 

 

 

 

 

Other current assets

 

$

117

 

 

$

634

 

Other long-term assets

 

 

10

 

 

 

40

 

Total derivative assets

 

$

127

 

 

$

674

 

Commodity derivative liabilities:

 

 

 

 

 

 

 

 

Other current liabilities

 

$

7

 

 

$

32

 

Other long-term liabilities

 

 

 

 

 

1

 

Total derivative liabilities

 

$

7

 

 

$

33

 

Open Oil Derivative Positions [Member]  
Derivative [Line Items]  
Schedule Of Open Derivative Positions

 

 

 

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)

 

Q3-Q4 2019

 

 

41,100

 

 

$

60.76

 

 

 

79,750

 

 

$

54.89

 

 

$

64.92

 

Q1-Q4 2020

 

 

3,238

 

 

$

60.13

 

 

 

22,432

 

 

$

52.92

 

 

$

63.03

 

 

 

 

Three-Way Price Collars

 

Period

 

Volume

(Bbls/d)

 

 

Weighted

Average Floor Sold

Price ($/Bbl)

 

 

Weighted

Average Floor Purchased

Price ($/Bbl)

 

 

Weighted

Average

Ceiling Price

($/Bbl)

 

Q3-Q4 2019

 

 

5,000

 

 

$

50.00

 

 

$

63.00

 

 

$

74.80

 

 

 

 

Oil Basis Swaps

 

Period

 

Index

 

Volume

(Bbls/d)

 

 

Weighted Average

Differential to WTI

($/Bbl)

 

Q3-Q4 2019

 

Midland Sweet

 

 

28,000

 

 

$

(0.46

)

Q3-Q4 2019

 

Argus LLS

 

 

7,500

 

 

$

5.18

 

Q3-Q4 2019

 

Argus MEH

 

 

26,000

 

 

$

3.33

 

Q3-Q4 2019

 

NYMEX Roll

 

 

38,000

 

 

$

0.45

 

Q1-Q4 2020

 

Argus MEH

 

 

9,000

 

 

$

3.44

 

Q1-Q4 2020

 

NYMEX Roll

 

 

42,000

 

 

$

0.32

 

 

Open Natural Gas Derivative Positions [Member]  
Derivative [Line Items]  
Schedule Of Open Derivative Positions

 

 

 

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)

 

Q3-Q4 2019

 

 

257,800

 

 

$

2.80

 

 

 

200,500

 

 

$

2.63

 

 

$

3.02

 

Q1-Q4 2020

 

 

81,409

 

 

$

2.77

 

 

 

42,557

 

 

$

2.73

 

 

$

3.03

 

 

 

Natural Gas Basis Swaps

 

Period

 

Index

 

Volume

(MMBtu/d)

 

 

Weighted Average

Differential to

Henry Hub

($/MMBtu)

 

Q3-Q4 2019

 

Panhandle Eastern Pipe Line

 

 

20,000

 

 

$

(0.56

)

Q3-Q4 2019

 

El Paso Natural Gas

 

 

130,000

 

 

$

(1.46

)

Q3-Q4 2019

 

Houston Ship Channel

 

 

162,500

 

 

$

0.01

 

Q1-Q4 2020

 

Panhandle Eastern Pipe Line

 

 

30,000

 

 

$

(0.47

)

Q1-Q4 2020

 

El Paso Natural Gas

 

 

40,000

 

 

$

(0.67

)

Q1-Q4 2020

 

Houston Ship Channel

 

 

10,000

 

 

$

0.02

 

 

Open NGL Derivative Positions [Member]  
Derivative [Line Items]  
Schedule Of Open Derivative Positions

 

 

 

 

 

Price Swaps

 

Period

 

Product

 

Volume (Bbls/d)

 

 

Weighted Average Price ($/Bbl)

 

Q3-Q4 2019

 

Ethane

 

 

1,000

 

 

$

11.55

 

Q3-Q4 2019

 

Natural Gasoline

 

 

4,500

 

 

$

55.93

 

Q3-Q4 2019

 

Normal Butane

 

 

4,000

 

 

$

33.69

 

Q3-Q4 2019

 

Propane

 

 

8,500

 

 

$

30.01

 

Q1-Q4 2020

 

Propane

 

 

2,500

 

 

$

27.29

 

v3.19.2
Share-Based Compensation (Tables)
6 Months Ended
Jun. 30, 2019
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]  
Schedule Of Share-Based Compensation Expense Included In The Consolidated Comprehensive Statements Of Earnings

 

 

 

Six Months Ended June 30,

 

 

 

2019

 

 

2018

 

G&A

 

$

44

 

 

$

59

 

Exploration expenses

 

 

1

 

 

 

2

 

Restructuring and transaction costs

 

 

24

 

 

 

26

 

Total

 

$

69

 

 

$

87

 

Related income tax benefit

 

$

10

 

 

$

 

 

Summary Of Unvested Restricted Stock Awards and Units, Performance-Based Restricted Stock Awards And Performance Share Units

 

 

 

Restricted Stock

 

 

Performance-Based

 

 

Performance

 

 

 

Awards and Units

 

 

Restricted Stock Awards

 

 

Share Units

 

 

 

Awards and

Units

 

 

Weighted

Average

Grant-Date

Fair Value

 

 

Awards

 

 

Weighted

Average

Grant-Date

Fair Value

 

 

Units

 

 

 

 

 

Weighted

Average

Grant-Date

Fair Value

 

 

 

(Thousands, except fair value data)

 

Unvested at 12/31/18

 

 

5,963

 

 

$

35.47

 

 

 

302

 

 

$

35.93

 

 

 

2,868

 

 

 

 

 

$

30.14

 

Granted

 

 

4,383

 

 

$

25.49

 

 

 

 

 

$

 

 

 

741

 

 

 

 

 

$

28.97

 

Vested

 

 

(4,295

)

 

$

33.60

 

 

 

(141

)

 

$

37.48

 

 

 

(145

)

 

 

 

 

$

37.23

 

Forfeited

 

 

(557

)

 

$

27.16

 

 

 

 

 

$

 

 

 

(1,276

)

 

 

 

 

$

11.34

 

Unvested at 6/30/19

 

 

5,494

 

 

$

29.80

 

 

 

161

 

 

$

34.56

 

 

 

2,188

 

 

(1

)

 

$

40.25

 

 

(1)

A maximum of 4.4 million common shares could be awarded based upon Devon’s final TSR ranking.

Summary Of Performance Share Units Grant-Date Fair Values And Their Related Assumptions

 

 

 

2019

 

Grant-date fair value

 

$

28.43

 

 

 

$

29.53

 

Risk-free interest rate

 

2.48%

 

Volatility factor

 

39.1%

 

Contractual term (years)

 

2.89

 

Summary of Unrecognized Compensation Cost And Weighted Average Period For Recognition

 

 

 

 

 

 

 

Performance-Based

 

 

 

 

 

 

 

Restricted Stock

 

 

Restricted Stock

 

 

Performance

 

 

 

Awards and Units

 

 

Awards

 

 

Share Units

 

Unrecognized compensation cost

 

$

116

 

 

$

 

 

$

25

 

Weighted average period for recognition (years)

 

 

2.8

 

 

 

1.9

 

 

 

1.7

 

v3.19.2
Restructuring and Transaction Costs (Tables)
6 Months Ended
Jun. 30, 2019
Restructuring And Related Activities [Abstract]  
Schedule Of The Activity And Balances Associated With Restructuring Liabilities

The following table summarizes Devon’s restructuring liabilities.

 

 

Other

 

 

Other

 

 

 

 

 

 

 

Current

 

 

Long-term

 

 

 

 

 

 

 

Liabilities

 

 

Liabilities

 

 

Total

 

Balance as of December 31, 2018

 

$

39

 

 

$

3

 

 

$

42

 

Changes related to 2019 workforce reductions

 

 

23

 

 

 

 

 

 

23

 

Changes related to prior years' restructurings

 

 

(23

)

 

 

(2

)

 

 

(25

)

Balance as of June 30, 2019

 

$

39

 

 

$

1

 

 

$

40

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance as of December 31, 2017

 

$

17

 

 

$

17

 

 

$

34

 

Changes related to prior years' restructurings

 

 

42

 

 

 

(7

)

 

 

35

 

Balance as of June 30, 2018

 

$

59

 

 

$

10

 

 

$

69

 

v3.19.2
Income Taxes (Tables)
6 Months Ended
Jun. 30, 2019
Income Tax Disclosure [Abstract]  
Schedule Of Effective Income Tax Rate Reconciliation

The following table presents Devon’s total income tax expense (benefit) and a reconciliation of its effective income tax rate to the U.S. statutory income tax rate.

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

Current income tax expense (benefit)

 

$

2

 

 

$

13

 

 

$

(1

)

 

$

14

 

Deferred income tax expense (benefit)

 

 

69

 

 

 

 

 

 

(38

)

 

 

(4

)

Total income tax expense (benefit)

 

$

71

 

 

$

13

 

 

$

(39

)

 

$

10

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. statutory income tax rate

 

 

21

%

 

 

21

%

 

 

21

%

 

 

21

%

State income taxes

 

 

8

%

 

 

(1

%)

 

 

4

%

 

 

(1

%)

Other

 

 

1

%

 

 

3

%

 

 

(7

%)

 

 

(2

%)

Deferred tax asset valuation allowance

 

 

%

 

 

(26

%)

 

 

%

 

 

(19

%)

Effective income tax rate

 

 

30

%

 

 

(3

%)

 

 

18

%

 

 

(1

%)

v3.19.2
Net Earnings (Loss) Per Share from Continuing Operations (Tables)
6 Months Ended
Jun. 30, 2019
Earnings Per Share [Abstract]  
Net Earnings (Loss) Per Share Computations from Continuing Operations

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

Net earnings (loss) from continuing operations:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net earnings (loss) from continuing operations

 

$

166

 

 

$

(496

)

 

$

(180

)

 

$

(704

)

Attributable to participating securities

 

 

(2

)

 

 

(1

)

 

 

(1

)

 

 

(1

)

Basic and diluted earnings (loss) from continuing operations

 

$

164

 

 

$

(497

)

 

$

(181

)

 

$

(705

)

Common shares:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common shares outstanding - total

 

 

415

 

 

 

521

 

 

 

425

 

 

 

524

 

Attributable to participating securities

 

 

(6

)

 

 

(6

)

 

 

(6

)

 

 

(6

)

Common shares outstanding - basic

 

 

409

 

 

 

515

 

 

 

419

 

 

 

518

 

Dilutive effect of potential common shares issuable

 

 

2

 

 

 

 

 

 

 

 

 

 

Common shares outstanding - diluted

 

 

411

 

 

 

515

 

 

 

419

 

 

 

518

 

Net earnings (loss) per share from continuing operations:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.40

 

 

$

(0.97

)

 

$

(0.43

)

 

$

(1.36

)

Diluted

 

$

0.40

 

 

$

(0.97

)

 

$

(0.43

)

 

$

(1.36

)

Antidilutive options (1)

 

 

1

 

 

 

2

 

 

 

1

 

 

 

2

 

 

(1)

Amounts represent options to purchase shares of Devon’s common stock that are excluded from the diluted net earnings per share calculations because the options are antidilutive.

v3.19.2
Other Comprehensive Earnings (Loss) (Tables)
6 Months Ended
Jun. 30, 2019
Other Comprehensive Income Loss Net Of Tax Period Increase Decrease [Abstract]  
Components Of Other Comprehensive Earnings (Loss)

Components of other comprehensive earnings consist of the following:

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

Foreign currency translation:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning accumulated foreign currency translation and other

 

$

1,194

 

 

$

1,261

 

 

$

1,159

 

 

$

1,309

 

Change in cumulative translation adjustment

 

 

43

 

 

 

(36

)

 

 

78

 

 

 

(96

)

Release of Canadian cumulative translation adjustment (1)

 

 

(1,237

)

 

 

 

 

 

(1,237

)

 

 

 

Income tax benefit

 

 

 

 

 

2

 

 

 

 

 

 

14

 

Ending accumulated foreign currency translation

 

 

 

 

 

1,227

 

 

 

 

 

 

1,227

 

Pension and postretirement benefit plans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning accumulated pension and postretirement benefits

 

 

(130

)

 

 

(139

)

 

 

(132

)

 

 

(143

)

Recognition of net actuarial loss and prior service cost in earnings (2)

 

 

17

 

 

 

3

 

 

 

20

 

 

 

7

 

Income tax expense

 

 

(4

)

 

 

 

 

 

(5

)

 

 

 

Ending accumulated pension and postretirement benefits

 

 

(117

)

 

 

(136

)

 

 

(117

)

 

 

(136

)

Accumulated other comprehensive earnings (loss), net of tax

 

$

(117

)

 

$

1,091

 

 

$

(117

)

 

$

1,091

 

 

(1)

In conjunction with the sale of all of its Canadian operating assets, Devon released the cumulative translation adjustment as part of its gain on the disposition of its Canadian business. See Note 18 for additional details.

(2)

These accumulated other comprehensive earnings components are included in the computation of net periodic benefit cost, which is a component of other expenses in the accompanying consolidated comprehensive statements of earnings. See Note 16 for additional details.

v3.19.2
Supplemental Information To Statements Of Cash Flows (Tables)
6 Months Ended
Jun. 30, 2019
Supplemental Cash Flow Elements [Abstract]  
Schedule Of Supplemental Information To Statements Of Cash Flows

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

Changes in assets and liabilities, net:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accounts receivable

 

$

60

 

 

$

(131

)

 

$

31

 

 

$

(162

)

Other current assets

 

 

(5

)

 

 

6

 

 

 

7

 

 

 

(95

)

Other long-term assets

 

 

(6

)

 

 

(25

)

 

 

(15

)

 

 

(66

)

Accounts payable

 

 

15

 

 

 

73

 

 

 

(21

)

 

 

93

 

Revenues and royalties payable

 

 

(68

)

 

 

139

 

 

 

(60

)

 

 

210

 

Other current liabilities

 

 

(67

)

 

 

4

 

 

 

(90

)

 

 

95

 

Other long-term liabilities

 

 

12

 

 

 

(1

)

 

 

5

 

 

 

(4

)

Total

 

$

(59

)

 

$

65

 

 

$

(143

)

 

$

71

 

Supplementary cash flow data - total operations:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest paid (net of capitalized interest)

 

$

108

 

 

$

138

 

 

$

161

 

 

$

214

 

Income taxes paid (refunded)

 

$

10

 

 

$

(7

)

 

$

16

 

 

$

(6

)

v3.19.2
Accounts Receivable (Tables)
6 Months Ended
Jun. 30, 2019
Accounts Receivable Net [Abstract]  
Schedule Of Components Of Accounts Receivable

Components of accounts receivable include the following:

 

 

 

June 30, 2019

 

 

December 31, 2018

 

Oil, gas and NGL sales

 

$

368

 

 

$

413

 

Joint interest billings

 

 

198

 

 

 

150

 

Marketing revenues

 

 

255

 

 

 

284

 

Other

 

 

27

 

 

 

15

 

Gross accounts receivable

 

 

848

 

 

 

862

 

Allowance for doubtful accounts

 

 

(6

)

 

 

(7

)

Net accounts receivable

 

$

842

 

 

$

855

 

v3.19.2
Property, Plant and Equipment (Tables)
6 Months Ended
Jun. 30, 2019
Extractive Industries [Abstract]  
Table of Property and Equipment, net

The following table presents the aggregate capitalized costs related to Devon’s oil and gas and non-oil and gas activities.

 

 

 

June 30, 2019

 

 

December 31, 2018

 

Property and equipment:

 

 

 

 

 

 

 

 

Proved

 

$

41,155

 

 

$

40,378

 

Unproved and properties under development

 

 

770

 

 

 

833

 

Total oil and gas

 

 

41,925

 

 

 

41,211

 

Less accumulated DD&A

 

 

(32,938

)

 

 

(32,229

)

Oil and gas property and equipment, net

 

 

8,987

 

 

 

8,982

 

Other property and equipment

 

 

1,735

 

 

 

1,707

 

Less accumulated DD&A

 

 

(685

)

 

 

(663

)

Other property and equipment, net

 

 

1,050

 

 

 

1,044

 

Property and equipment, net

 

$

10,037

 

 

$

10,026

 

 

v3.19.2
Debt And Related Expenses (Tables)
6 Months Ended
Jun. 30, 2019
Debt Disclosure [Abstract]  
Schedule Of Debt Instruments and Balances

A summary of debt is as follows:

 

 

June 30, 2019

 

 

December 31, 2018

 

 

 

 

 

 

 

 

 

 

6.30% due January 15, 2019

 

$

 

 

$

162

 

5.85% due December 15, 2025

 

 

485

 

 

 

485

 

7.50% due September 15, 2027

 

 

73

 

 

 

73

 

7.875% due September 30, 2031 (1)

 

 

675

 

 

 

675

 

7.95% due April 15, 2032 (1)

 

 

366

 

 

 

366

 

5.60% due July 15, 2041

 

 

1,250

 

 

 

1,250

 

4.75% due May 15, 2042

 

 

750

 

 

 

750

 

5.00% due June 15, 2045

 

 

750

 

 

 

750

 

Net discount on debentures and notes

 

 

(20

)

 

 

(21

)

Debt issuance costs

 

 

(35

)

 

 

(36

)

Total debt

 

 

4,294

 

 

 

4,454

 

Less amount classified as short-term debt

 

 

 

 

 

162

 

Total long-term debt

 

$

4,294

 

 

$

4,292

 

 

 

(1)

These senior notes were included in the 2018 tender offer repurchases discussed below.

Schedule Of Net Financing Cost Components

The following schedule includes the components of net financing costs.

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

Interest based on debt outstanding

 

$

65

 

 

$

68

 

 

$

130

 

 

$

151

 

Early retirement of debt

 

 

 

 

 

 

 

 

 

 

 

312

 

Other

 

 

1

 

 

 

(4

)

 

 

(4

)

 

 

(10

)

Total net financing costs

 

$

66

 

 

$

64

 

 

$

126

 

 

$

453

 

v3.19.2
Leases (Tables)
6 Months Ended
Jun. 30, 2019
Leases [Abstract]  
Schedule of Right-of-use Assets and Lease Liabilities The following table presents Devon’s right-of-use assets and lease liabilities as of June 30, 2019.

 

 

Finance

 

 

Operating

 

 

Total

 

Right-of-use assets

 

$

209

 

 

$

64

 

 

$

273

 

Lease liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

Current lease liabilities (1)

 

$

7

 

 

$

39

 

 

$

46

 

Long-term lease liabilities

 

 

239

 

 

 

24

 

 

 

263

 

Total lease liabilities

 

$

246

 

 

$

63

 

 

$

309

 

 

(1)

Current lease liabilities are included in other current liabilities on the consolidated balance sheets.

Schedule of Total Lease Cost

 

The following table presents Devon’s total lease cost.

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

 

June 30, 2019

 

Operating lease cost

Property, plant and equipment; G&A

 

$

12

 

 

$

25

 

Short-term lease cost (1)

Property, plant and equipment; G&A

 

 

21

 

 

 

45

 

Financing lease cost:

 

 

 

 

 

 

 

 

 

Amortization of right-of-use assets

DD&A

 

 

6

 

 

 

12

 

Interest on lease liabilities

Net financing costs

 

 

2

 

 

 

5

 

Variable lease cost

G&A

 

 

 

 

 

1

 

Lease income

G&A

 

 

(1

)

 

 

(2

)

Net lease cost

 

 

$

40

 

 

$

86

 

 

(1)

Short-term lease cost excludes leases with terms of one month or less.

 

Schedule of Additional Lease Information

The following table presents Devon’s additional lease information for the three and six months ended June 30, 2019.

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

June 30, 2019

 

 

June 30, 2019

 

 

 

Finance

 

 

Operating

 

 

Finance

 

 

Operating

 

Cash outflows for lease liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating cash flows

 

$

1

 

 

$

 

 

$

3

 

 

$

1

 

Investing cash flows

 

$

 

 

$

12

 

 

$

 

 

$

27

 

Right-of-use assets obtained in exchange for new

   lease liabilities

 

$

 

 

$

1

 

 

$

 

 

$

1

 

Weighted average remaining lease term (years)

 

 

8.5

 

 

 

1.9

 

 

 

8.5

 

 

 

1.9

 

Weighted average discount rate

 

 

4.2

%

 

 

3.2

%

 

 

4.2

%

 

 

3.2

%

Maturities of Lease Liabilities

 

The following table presents Devon’s maturity analysis as of June 30, 2019 for leases expiring in each of the next 5 years and thereafter.

 

 

Finance

 

 

Operating

 

 

Total (1)

 

2019

 

$

3

 

 

$

22

 

 

$

25

 

2020

 

 

7

 

 

 

32

 

 

 

39

 

2021

 

 

7

 

 

 

8

 

 

 

15

 

2022

 

 

8

 

 

 

1

 

 

 

9

 

2023

 

 

8

 

 

 

1

 

 

 

9

 

Thereafter

 

 

306

 

 

 

1

 

 

 

307

 

Total lease payments

 

 

339

 

 

 

65

 

 

 

404

 

Less: interest

 

 

(93

)

 

 

(2

)

 

 

(95

)

Present value of lease liabilities

 

$

246

 

 

$

63

 

 

$

309

 

 

(1)

Under previous lease accounting standard, ASC 840, Devon’s lease obligations as of December 31, 2018 expiring in each of the next 5 years and thereafter were $61 million for 2019, $48 million for 2020, $18 million for 2021, $9 million for 2022, $8 million for 2023 and $33 million thereafter.

 

Schedule of Expected Lease Income The following table presents Devon’s expected lease income as of June 30, 2019 for each of the next 5 years and thereafter.

 

 

Operating

 

 

 

Lease Income (1)

 

2019

 

$

3

 

2020

 

 

6

 

2021

 

 

7

 

2022

 

 

7

 

2023

 

 

7

 

Thereafter

 

 

53

 

Total

 

$

83

 

 

(1)

Included in operating lease income is approximately $30 million related to leases which have been executed but not yet commenced.

v3.19.2
Asset Retirement Obligations (Tables)
6 Months Ended
Jun. 30, 2019
Asset Retirement Obligation Disclosure [Abstract]  
Summary Of Changes In Asset Retirement Obligations

The following table presents the changes in Devon’s asset retirement obligations.

 

 

Six Months Ended June 30,

 

 

 

2019

 

 

2018

 

Asset retirement obligations as of beginning of period

 

$

623

 

 

$

704

 

Liabilities incurred

 

 

8

 

 

 

17

 

Liabilities settled and divested

 

 

(40

)

 

 

(58

)

Revision of estimated obligation

 

 

(63

)

 

 

 

Accretion expense on discounted obligation

 

 

15

 

 

 

18

 

Asset retirement obligations as of end of period

 

 

543

 

 

 

681

 

Less current portion

 

 

15

 

 

 

18

 

Asset retirement obligations, long-term

 

$

528

 

 

$

663

 

 

v3.19.2
Retirement Plans (Tables)
6 Months Ended
Jun. 30, 2019
Compensation And Retirement Disclosure [Abstract]  
Schedule Of Net Periodic Benefit Cost For Pension Benefits Plan

 

 

Pension Benefits

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

Service cost

 

$

2

 

 

$

3

 

 

$

3

 

 

$

5

 

Interest cost

 

 

8

 

 

 

10

 

 

 

17

 

 

 

20

 

Expected return on plan assets

 

 

(9

)

 

 

(14

)

 

 

(19

)

 

 

(27

)

Amortization of prior service cost (1)

 

 

 

 

 

1

 

 

 

1

 

 

 

1

 

Net actuarial loss (1)

 

 

3

 

 

 

3

 

 

 

6

 

 

 

7

 

Net periodic benefit cost (2)

 

$

4

 

 

$

3

 

 

$

8

 

 

$

6

 

 

(1)

These net periodic benefit costs were reclassified out of other comprehensive earnings.

(2)

The service cost component of net periodic benefit cost is included in G&A expense and the remaining components of net periodic benefit costs are included in other expenses in the accompanying consolidated comprehensive statements of earnings.

 

v3.19.2
Stockholders' Equity (Tables)
6 Months Ended
Jun. 30, 2019
Stockholders Equity Note [Abstract]  
Summary of Purchases of Common Stock

The table below provides information regarding purchases of Devon’s common stock that were made during 2018 and the first six months of 2019 (shares in thousands).  

 

 

Total Number of

Shares Purchased

 

 

Dollar Value of

Shares Purchased

 

 

Average Price Paid

per Share

 

First quarter 2018:

 

 

 

 

 

 

 

 

 

 

 

 

Open-Market

 

 

2,561

 

 

$

82

 

 

$

32.19

 

Second quarter 2018:

 

 

 

 

 

 

 

 

 

 

 

 

Open-Market

 

 

11,154

 

 

 

439

 

 

 

39.35

 

Third quarter 2018:

 

 

 

 

 

 

 

 

 

 

 

 

Open-Market

 

 

16,492

 

 

 

712

 

 

 

43.13

 

ASR

 

 

24,330

 

 

 

1,000

 

 

 

41.10

 

Total

 

 

40,822

 

 

 

1,712

 

 

 

41.92

 

Fourth quarter 2018:

 

 

 

 

 

 

 

 

 

 

 

 

Open-Market

 

 

23,612

 

 

 

745

 

 

 

31.57

 

First quarter 2019:

 

 

 

 

 

 

 

 

 

 

 

 

Open-Market

 

 

36,141

 

 

 

1,024

 

 

 

28.33

 

Second quarter 2019:

 

 

 

 

 

 

 

 

 

 

 

 

Open-Market

 

 

5,911

 

 

 

159

 

 

 

27.01

 

Total inception-to-date

 

 

120,201

 

 

$

4,161

 

 

$

34.62

 

 

Summary Of Dividends Paid On Common Stock

The table below summarizes the dividends Devon paid on its common stock.

 

 

Amounts

 

 

Rate Per Share

 

Quarter Ended 2019:

 

 

 

 

 

 

 

First quarter

$

34

 

 

$

0.08

 

Second quarter

 

37

 

 

$

0.09

 

Total year-to-date

$

71

 

 

 

 

 

Quarter Ended 2018:

 

 

 

 

 

 

 

First quarter

$

32

 

 

$

0.06

 

Second quarter

 

42

 

 

$

0.08

 

Total year-to-date

$

74

 

 

 

 

 

v3.19.2
Discontinued Operations and Assets Held for Sale (Tables)
6 Months Ended
Jun. 30, 2019
Discontinued Operations And Disposal Groups [Abstract]  
Summary of Amounts Reported as Discontinued Operations in the Consolidated Comprehensive Statements of Earnings and Carrying Amounts of Assets and Liabilities Classified as Held for Sale on the Consolidated Balance Sheets

 


The following table presents the amounts reported in the consolidated comprehensive statements of earnings as discontinued operations.

 

 

Three months ended June 30,

 

 

Six months ended June 30,

 

 

 

Canada

 

 

EnLink

 

 

Total

 

 

Canada

 

 

EnLink

 

 

Total

 

2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Upstream revenues

 

$

388

 

 

$

 

 

$

388

 

 

$

635

 

 

$

 

 

$

635

 

Marketing and midstream revenues

 

 

12

 

 

 

 

 

 

12

 

 

 

38

 

 

 

 

 

 

38

 

Total revenues

 

 

400

 

 

 

 

 

 

400

 

 

 

673

 

 

 

 

 

 

673

 

Production expenses

 

 

153

 

 

 

 

 

 

153

 

 

 

294

 

 

 

 

 

 

294

 

Exploration expenses

 

 

4

 

 

 

 

 

 

4

 

 

 

13

 

 

 

 

 

 

13

 

Marketing and midstream expenses

 

 

9

 

 

 

 

 

 

9

 

 

 

18

 

 

 

 

 

 

18

 

Depreciation, depletion and amortization

 

 

49

 

 

 

 

 

 

49

 

 

 

128

 

 

 

 

 

 

128

 

Asset impairments

 

 

37

 

 

 

 

 

 

37

 

 

 

37

 

 

 

 

 

 

37

 

Asset dispositions

 

 

(189

)

 

 

 

 

 

(189

)

 

 

(189

)

 

 

 

 

 

(189

)

General and administrative expenses

 

 

13

 

 

 

 

 

 

13

 

 

 

31

 

 

 

 

 

 

31

 

Financing costs, net

 

 

13

 

 

 

 

 

 

13

 

 

 

26

 

 

 

 

 

 

26

 

Restructuring and transaction costs

 

 

236

 

 

 

 

 

 

236

 

 

 

239

 

 

 

 

 

 

239

 

Other expenses

 

 

31

 

 

 

 

 

 

31

 

 

 

3

 

 

 

 

 

 

3

 

Total expenses

 

 

356

 

 

 

 

 

 

356

 

 

 

600

 

 

 

 

 

 

600

 

Earnings from discontinued operations before income taxes

 

 

44

 

 

 

 

 

 

44

 

 

 

73

 

 

 

 

 

 

73

 

Income tax benefit

 

 

(285

)

 

 

 

 

 

(285

)

 

 

(285

)

 

 

 

 

 

(285

)

Net earnings from discontinued operations, net of tax

 

$

329

 

 

$

 

 

$

329

 

 

$

358

 

 

$

 

 

$

358

 

2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Upstream revenues

 

$

303

 

 

$

 

 

$

303

 

 

$

605

 

 

$

 

 

$

605

 

Marketing and midstream revenues

 

 

24

 

 

 

1,595

 

 

 

1,619

 

 

 

41

 

 

 

3,207

 

 

 

3,248

 

Total revenues

 

 

327

 

 

 

1,595

 

 

 

1,922

 

 

 

646

 

 

 

3,207

 

 

 

3,853

 

Production expenses

 

 

166

 

 

 

 

 

 

166

 

 

 

314

 

 

 

 

 

 

314

 

Exploration expenses

 

 

6

 

 

 

 

 

 

6

 

 

 

18

 

 

 

 

 

 

18

 

Marketing and midstream expenses

 

 

11

 

 

 

1,269

 

 

 

1,280

 

 

 

18

 

 

 

2,610

 

 

 

2,628

 

Depreciation, depletion and amortization

 

 

78

 

 

 

106

 

 

 

184

 

 

 

172

 

 

 

244

 

 

 

416

 

General and administrative expenses

 

 

18

 

 

 

31

 

 

 

49

 

 

 

42

 

 

 

58

 

 

 

100

 

Financing costs, net

 

 

(2

)

 

 

45

 

 

 

43

 

 

 

(4

)

 

 

89

 

 

 

85

 

Restructuring and transaction costs

 

 

9

 

 

 

 

 

 

9

 

 

 

9

 

 

 

 

 

 

9

 

Other expenses

 

 

39

 

 

 

(5

)

 

 

34

 

 

 

109

 

 

 

(7

)

 

 

102

 

Total expenses

 

 

325

 

 

 

1,446

 

 

 

1,771

 

 

 

678

 

 

 

2,994

 

 

 

3,672

 

Earnings (loss) from discontinued operations before income taxes

 

 

2

 

 

 

149

 

 

 

151

 

 

 

(32

)

 

 

213

 

 

 

181

 

Income tax expense (benefit)

 

 

(20

)

 

 

10

 

 

 

(10

)

 

 

(51

)

 

 

16

 

 

 

(35

)

Net earnings from discontinued operations, net of tax

 

 

22

 

 

 

139

 

 

 

161

 

 

 

19

 

 

 

197

 

 

 

216

 

Net earnings attributable to noncontrolling interests

 

 

 

 

 

90

 

 

 

90

 

 

 

 

 

 

134

 

 

 

134

 

Net earnings from discontinued operations, attributable to Devon

 

$

22

 

 

$

49

 

 

$

71

 

 

$

19

 

 

$

63

 

 

$

82

 

 

The following table presents the carrying amounts of the assets and liabilities associated with discontinued operations on the consolidated balance sheets. The assets and liabilities associated with discontinued operations at June 30, 2019 and December 31, 2018 are primarily related to the divestiture of Devon’s Canadian business. Included within assets and liabilities associated with discontinued operations at December 31, 2018 are $197 million of assets and $69 million of liabilities related to the divestiture of non-core upstream Permian Basin assets which closed in January 2019 as further discussed in Note 2.

 

 

 

June 30, 2019

 

 

December 31, 2018

 

Accounts receivable

 

$

111

 

 

$

37

 

Other current assets

 

 

20

 

 

 

246

 

Current assets associated with discontinued operations

 

 

131

 

 

 

283

 

Oil and gas property and equipment, based on

   successful efforts accounting, net

 

 

 

 

 

3,829

 

Other property and equipment, net

 

 

 

 

 

78

 

Other long-term assets

 

 

99

 

 

 

79

 

Long-term assets associated with discontinued operations

 

 

99

 

 

 

3,986

 

Total assets associated with discontinued operations

 

$

230

 

 

$

4,269

 

 

 

 

 

 

 

 

 

 

Accounts payable

 

$

97

 

 

$

101

 

Revenues and royalties payable

 

 

16

 

 

 

67

 

Short-term debt (1)

 

 

1,494

 

 

 

 

Other current liabilities

 

 

287

 

 

 

170

 

Current liabilities associated with discontinued operations

 

 

1,894

 

 

 

338

 

Long-term debt (1)

 

 

 

 

 

1,493

 

Asset retirement obligations

 

 

 

 

 

424

 

Other long-term liabilities

 

 

189

 

 

 

20

 

Deferred income taxes

 

 

 

 

 

348

 

Long-term liabilities associated with discontinued operations

 

 

189

 

 

 

2,285

 

Total liabilities associated with discontinued operations

 

$

2,083

 

 

$

2,623

 

 

 

(1)

Includes the $500 million 4.00% Senior Notes due July 15, 2021 and $1.0 billion 3.25% Senior Notes due May 15, 2022 that were retired early in July 2019 utilizing a portion of the proceeds from the sale of Devon’s Canadian business.

 

v3.19.2
Fair Value Measurements (Tables)
6 Months Ended
Jun. 30, 2019
Fair Value Disclosures [Abstract]  
Schedule Of Carrying Value And Fair Value Measurement Information For Financial Assets And Liabilities

 

 

 

 

 

 

 

 

 

 

 

Fair Value Measurements Using:

 

 

 

Carrying

 

 

Total Fair

 

 

Level 1

 

 

Level 2

 

 

 

Amount

 

 

Value

 

 

Inputs

 

 

Inputs

 

June 30, 2019 assets (liabilities):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash equivalents

 

$

2,784

 

 

$

2,784

 

 

$

2,784

 

 

$

 

Commodity derivatives

 

$

127

 

 

$

127

 

 

$

 

 

$

127

 

Commodity derivatives

 

$

(7

)

 

$

(7

)

 

$

 

 

$

(7

)

Debt

 

$

(4,294

)

 

$

(5,311

)

 

$

 

 

$

(5,311

)

December 31, 2018 assets (liabilities):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash equivalents

 

$

1,505

 

 

$

1,505

 

 

$

1,405

 

 

$

100

 

Commodity derivatives

 

$

674

 

 

$

674

 

 

$

 

 

$

674

 

Commodity derivatives

 

$

(33

)

 

$

(33

)

 

$

 

 

$

(33

)

Debt

 

$

(4,454

)

 

$

(4,494

)

 

$

 

 

$

(4,494

)

v3.19.2
Summary of Significant Accounting Policies (Schedule of Revenue from Contracts with Customers Disaggregated Based on Type of Good) (Details) - USD ($)
$ in Millions
3 Months Ended 6 Months Ended
Jun. 30, 2019
Jun. 30, 2018
Jun. 30, 2019
Jun. 30, 2018
Disaggregation Of Revenue [Line Items]        
Total revenues from contracts with customers $ 730 $ 1,156 $ 1,495 $ 2,018
Oil, gas and NGL derivatives 140 (487) (465) (600)
Upstream revenues 1,191 766 1,654 1,783
Total revenues 1,921 1,922 3,149 3,801
Oil, Gas and NGL Sales [Member]        
Disaggregation Of Revenue [Line Items]        
Total revenues from contracts with customers 1,051 1,253 2,119 2,383
Oil, Gas and NGL Sales [Member] | Oil [Member]        
Disaggregation Of Revenue [Line Items]        
Total revenues from contracts with customers 753 808 1,414 1,485
Oil, Gas and NGL Sales [Member] | Gas [Member]        
Disaggregation Of Revenue [Line Items]        
Total revenues from contracts with customers 147 207 380 462
Oil, Gas and NGL Sales [Member] | NGL [Member]        
Disaggregation Of Revenue [Line Items]        
Total revenues from contracts with customers 151 238 325 436
Marketing Revenues [Member]        
Disaggregation Of Revenue [Line Items]        
Total revenues from contracts with customers 730 1,156 1,495 2,018
Marketing Revenues [Member] | Oil [Member]        
Disaggregation Of Revenue [Line Items]        
Total revenues from contracts with customers 394 766 750 1,297
Marketing Revenues [Member] | Gas [Member]        
Disaggregation Of Revenue [Line Items]        
Total revenues from contracts with customers 172 160 390 315
Marketing Revenues [Member] | NGL [Member]        
Disaggregation Of Revenue [Line Items]        
Total revenues from contracts with customers $ 164 $ 230 $ 355 $ 406
v3.19.2
Divestitures (Narrative) (Details)
$ in Billions
3 Months Ended 6 Months Ended
Jun. 27, 2019
USD ($)
MMBoe
Jun. 27, 2019
CAD ($)
MMBoe
Jun. 30, 2019
USD ($)
Mar. 31, 2019
USD ($)
MMBoe
Jun. 30, 2018
USD ($)
Jun. 30, 2019
USD ($)
Jun. 30, 2018
USD ($)
Business Acquisition [Line Items]              
Gain recognized on sale of business, pre tax     $ 189,000,000     $ 189,000,000  
Asset retirement obligations assumed by other party           40,000,000 $ 58,000,000
Gain recognized     1,000,000   $ (23,000,000) 45,000,000 $ (11,000,000)
Barnett Shale [Member]              
Business Acquisition [Line Items]              
Net assets     $ 1,400,000,000     $ 1,400,000,000  
Permian Basin [Member] | Non Core Assets [Member]              
Business Acquisition [Line Items]              
Total estimated proved reserves | MMBoe       25      
Divestitures of property and equipment       $ 300,000,000      
Gain recognized       $ 44,000,000      
Permian Basin [Member] | Non Core Assets [Member] | Maximum [Member]              
Business Acquisition [Line Items]              
Percentage of estimated U.S. total proved reserves associated with divestiture assets.       2.00%      
Barnett Shale Johnson County [Member]              
Business Acquisition [Line Items]              
Asset retirement obligations assumed by other party         $ 34,000,000    
Percentage of proved reserves associated with divestiture assets compared to total estimated proved reserves         10.00%    
Divestitures of property and equipment         $ 553,000,000    
Gain recognized         0    
Settlement expenses relating to gas processing contracts         $ 40,000,000    
Canadian​ Divestiture [Member]              
Business Acquisition [Line Items]              
Restructuring and asset impairment related charges $ 273,000,000            
Canadian Natural Resources Limited [Member] | Canadian Business Segment [Member]              
Business Acquisition [Line Items]              
Proceeds from sale of business, net of purchase price adjustments $ 2,600,000,000 $ 3.4          
Effective close date of divestiture Jun. 27, 2019 Jun. 27, 2019          
Gain recognized on sale of business, pre tax $ 189,000,000            
Gain recognized on sale of business, net of tax 460,000,000            
Asset retirement obligations assumed by other party $ 436,000,000            
Total estimated proved reserves | MMBoe 400 400          
Percentage of proved reserves associated with divestiture assets compared to total estimated proved reserves 21.00% 21.00%          
v3.19.2
Derivative Financial Instruments (Schedule Of Open Oil Derivative Positions) (Details)
6 Months Ended
Jun. 30, 2019
$ / bbl
bbl
NYMEX West Texas Intermediate Price Swaps Oil Q3-Q4 2019 [Member]  
Derivative [Line Items]  
Volume Per Day (Bbls/d) | bbl 41,100
Weighted Average Price Swap 60.76
NYMEX West Texas Intermediate Price Swaps Oil Q1-Q4 2020 [Member]  
Derivative [Line Items]  
Volume Per Day (Bbls/d) | bbl 3,238
Weighted Average Price Swap 60.13
NYMEX West Texas Intermediate Price Collars Oil Q3-Q4 2019 [Member]  
Derivative [Line Items]  
Volume Per Day (Bbls/d) | bbl 79,750
Weighted Average Floor Price 54.89
Weighted Average Ceiling Price 64.92
NYMEX West Texas Intermediate Price Collars Oil Q1-Q4 2020 [Member]  
Derivative [Line Items]  
Volume Per Day (Bbls/d) | bbl 22,432
Weighted Average Floor Price 52.92
Weighted Average Ceiling Price 63.03
NYMEX West Texas Intermediate Three-Way Price Collars Oil Q3-Q4 2019 [Member]  
Derivative [Line Items]  
Volume Per Day (Bbls/d) | bbl 5,000
Weighted Average Ceiling Price 74.80
Weighted Average Floor Sold Price 50.00
Weighted Average Floor Purchased Price 63.00
Midland Sweet Basis Swaps Oil Q3-Q4 2019 [Member]  
Derivative [Line Items]  
Volume Per Day (Bbls/d) | bbl 28,000
Weighted Average Differential To WTI (0.46)
Argus LLS Basis Swaps Oil Q3-Q4 2019 [Member]  
Derivative [Line Items]  
Volume Per Day (Bbls/d) | bbl 7,500
Weighted Average Differential To WTI 5.18
Argus MEH Basis Swaps Oil Q3-Q4 2019 [Member]  
Derivative [Line Items]  
Volume Per Day (Bbls/d) | bbl 26,000
Weighted Average Differential To WTI 3.33
NYMEX Roll Basis Swaps Oil Q3-Q4 2019 [Member]  
Derivative [Line Items]  
Volume Per Day (Bbls/d) | bbl 38,000
Weighted Average Differential To WTI 0.45
Argus MEH Basis Swaps Oil Q1-Q4 2020 [Member]  
Derivative [Line Items]  
Volume Per Day (Bbls/d) | bbl 9,000
Weighted Average Differential To WTI 3.44
NYMEX Roll Basis Swaps Oil Q1-Q4 2020 [Member]  
Derivative [Line Items]  
Volume Per Day (Bbls/d) | bbl 42,000
Weighted Average Differential To WTI 0.32
v3.19.2
Derivative Financial Instruments (Schedule Of Open Natural Gas Derivative Positions) (Details)
6 Months Ended
Jun. 30, 2019
MMBTU
$ / MMBTU
FERC Henry Hub Price Swaps Natural Gas Q3-Q4 2019 [Member]  
Derivative [Line Items]  
Volume Per Day (MMBtu/d) | MMBTU 257,800
Weighted Average Price Swap 2.80
FERC Henry Hub Price Swaps Natural Gas Q1-Q4 2020 [Member]  
Derivative [Line Items]  
Volume Per Day (MMBtu/d) | MMBTU 81,409
Weighted Average Price Swap 2.77
FERC Henry Hub Price Collars Natural Gas Q3-Q4 2019 [Member]  
Derivative [Line Items]  
Volume Per Day (MMBtu/d) | MMBTU 200,500
Weighted Average Floor Price 2.63
Weighted Average Ceiling Price 3.02
FERC Henry Hub Price Collars Natural Gas Q1-Q4 2020 [Member]  
Derivative [Line Items]  
Volume Per Day (MMBtu/d) | MMBTU 42,557
Weighted Average Floor Price 2.73
Weighted Average Ceiling Price 3.03
PEPL Basis Swaps Natural Gas Q3-Q4 2019 [Member]  
Derivative [Line Items]  
Volume Per Day (MMBtu/d) | MMBTU 20,000
Weighted Average Differential To Henry Hub (0.56)
El Paso Natural Gas Basis Swaps Q3-Q4 2019 [Member]  
Derivative [Line Items]  
Volume Per Day (MMBtu/d) | MMBTU 130,000
Weighted Average Differential To Henry Hub (1.46)
Houston Ship Channel Natural Gas Basis Swaps Q3-Q4 2019 [Member]  
Derivative [Line Items]  
Volume Per Day (MMBtu/d) | MMBTU 162,500
Weighted Average Differential To Henry Hub 0.01
PEPL Basis Swaps Natural Gas Q1-Q4 2020 [Member]  
Derivative [Line Items]  
Volume Per Day (MMBtu/d) | MMBTU 30,000
Weighted Average Differential To Henry Hub (0.47)
El Paso Natural Gas Basis Swaps Q1-Q4 2020 [Member]  
Derivative [Line Items]  
Volume Per Day (MMBtu/d) | MMBTU 40,000
Weighted Average Differential To Henry Hub (0.67)
Houston Ship Channel Natural Gas Basis Swaps Q1-Q4 2020 [Member]  
Derivative [Line Items]  
Volume Per Day (MMBtu/d) | MMBTU 10,000
Weighted Average Differential To Henry Hub 0.02
v3.19.2
Derivative Financial Instruments (Schedule Of Open NGL Derivative Positions) (Details)
6 Months Ended
Jun. 30, 2019
$ / bbl
bbl
OPIS Mont Belvieu Texas Ethane Price Swaps NGL Q3-Q4 2019 [Member]  
Derivative [Line Items]  
Volume Per Day (Bbls/d) | bbl 1,000
Weighted Average Price Swap | $ / bbl 11.55
OPIS Mont Belvieu Texas Natural Gasoline Price Swaps NGL Q3-Q4 2019 [Member]  
Derivative [Line Items]  
Volume Per Day (Bbls/d) | bbl 4,500
Weighted Average Price Swap | $ / bbl 55.93
OPIS Mont Belvieu Texas Normal Butane Price Swaps NGL Q3-Q4 2019 [Member]  
Derivative [Line Items]  
Volume Per Day (Bbls/d) | bbl 4,000
Weighted Average Price Swap | $ / bbl 33.69
OPIS Mont Belvieu Texas Propane Price Swaps NGL Q3-Q4 2019 [Member]  
Derivative [Line Items]  
Volume Per Day (Bbls/d) | bbl 8,500
Weighted Average Price Swap | $ / bbl 30.01
OPIS Mont Belvieu Texas Propane Price Swaps NGL Q1-Q4 2020 [Member]  
Derivative [Line Items]  
Volume Per Day (Bbls/d) | bbl 2,500
Weighted Average Price Swap | $ / bbl 27.29
v3.19.2
Derivative Financial Instruments (Schedule Of Derivative Financial Instruments Included In The Consolidated Comprehensive Statements Of Earnings) (Details) - USD ($)
$ in Millions
3 Months Ended 6 Months Ended
Jun. 30, 2019
Jun. 30, 2018
Jun. 30, 2019
Jun. 30, 2018
Derivative [Line Items]        
Net gains (losses) recognized in consolidated comprehensive statements of earnings $ 140 $ (469) $ (464) $ (536)
Commodity Derivatives [Member] | Upstream Revenues [Member]        
Derivative [Line Items]        
Net gains (losses) recognized in consolidated comprehensive statements of earnings $ 140 (487) (465) (600)
Commodity Derivatives [Member] | Marketing Revenues [Member]        
Derivative [Line Items]        
Net gains (losses) recognized in consolidated comprehensive statements of earnings   (1) $ 1 (1)
Interest Rate Derivatives [Member] | Other Expenses [Member]        
Derivative [Line Items]        
Net gains (losses) recognized in consolidated comprehensive statements of earnings   $ 19   $ 65
v3.19.2
Derivative Financial Instruments (Schedule Of Derivative Financial Instruments Included In The Consolidated Balance Sheets) (Details) - USD ($)
$ in Millions
Jun. 30, 2019
Dec. 31, 2018
Derivatives Fair Value [Line Items]    
Fair value of derivative assets $ 127 $ 674
Fair value of derivative liabilities 7 33
Commodity Derivatives [Member] | Other Current Assets [Member]    
Derivatives Fair Value [Line Items]    
Fair value of derivative assets 117 634
Commodity Derivatives [Member] | Other Long-Term Assets [Member]    
Derivatives Fair Value [Line Items]    
Fair value of derivative assets 10 40
Commodity Derivatives [Member] | Other Current Liabilities [Member]    
Derivatives Fair Value [Line Items]    
Fair value of derivative liabilities $ 7 32
Commodity Derivatives [Member] | Other Long-Term Liabilities [Member]    
Derivatives Fair Value [Line Items]    
Fair value of derivative liabilities   $ 1
v3.19.2
Share-Based Compensation (Schedule Of Share-Based Compensation Expense Included In The Consolidated Comprehensive Statements Of Earnings) (Details) - USD ($)
$ in Millions
6 Months Ended
Jun. 30, 2019
Jun. 30, 2018
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]    
Share-based compensation expense $ 69 $ 87
Related income tax benefit 10  
G&A [Member]    
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]    
Share-based compensation expense 44 59
Exploration Expenses [Member]    
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]    
Share-based compensation expense 1 2
Restructuring and Transaction Costs [Member]    
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]    
Accelerated share-based compensation expense $ 24 $ 26
v3.19.2
Share-Based Compensation (Summary Of Unvested Restricted Stock Awards and Units, Performance-Based Restricted Stock Awards And Performance Share Units) (Details)
shares in Thousands
6 Months Ended
Jun. 30, 2019
$ / shares
shares
Restricted Stock Awards And Units [Member]  
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]  
Unvested at December 31, 2018 | shares 5,963
Granted, awards and units | shares 4,383
Vested, awards and units | shares (4,295)
Forfeited, awards and units | shares (557)
Unvested at June 30, 2019 | shares 5,494
Unvested weighted average grant-date fair value at December 31, 2018 | $ / shares $ 35.47
Granted, weighted average grant-date fair value | $ / shares 25.49
Vested, weighted average grant-date fair value | $ / shares 33.60
Forfeited, weighted average grant-date fair value | $ / shares 27.16
Unvested weighted average grant-date fair value at June 30, 2019 | $ / shares $ 29.80
Performance-Based Restricted Stock Awards [Member]  
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]  
Unvested at December 31, 2018 | shares 302
Vested, awards and units | shares (141)
Unvested at June 30, 2019 | shares 161
Unvested weighted average grant-date fair value at December 31, 2018 | $ / shares $ 35.93
Vested, weighted average grant-date fair value | $ / shares 37.48
Unvested weighted average grant-date fair value at June 30, 2019 | $ / shares $ 34.56
Performance Share Units [Member]  
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]  
Unvested at December 31, 2018 | shares 2,868
Granted, awards and units | shares 741
Vested, awards and units | shares (145)
Forfeited, awards and units | shares (1,276)
Unvested at June 30, 2019 | shares 2,188 [1]
Unvested weighted average grant-date fair value at December 31, 2018 | $ / shares $ 30.14
Granted, weighted average grant-date fair value | $ / shares 28.97
Vested, weighted average grant-date fair value | $ / shares 37.23
Forfeited, weighted average grant-date fair value | $ / shares 11.34
Unvested weighted average grant-date fair value at June 30, 2019 | $ / shares $ 40.25
[1] A maximum of 4.4 million common shares could be awarded based upon Devon’s final TSR ranking.
v3.19.2
Share-Based Compensation (Summary Of Unvested Restricted Stock Awards and Units, Performance-Based Restricted Stock Awards And Performance Share Units) (Parenthetical) (Details)
shares in Millions
6 Months Ended
Jun. 30, 2019
shares
Performance Share Units [Member] | Maximum [Member]  
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]  
Maximum common shares that could be awarded based upon total shareholder return 4.4
v3.19.2
Share-Based Compensation (Summary Of Performance Share Units Grant-Date Fair Values And Their Related Assumptions) (Details) - Performance Share Units [Member]
6 Months Ended
Jun. 30, 2019
$ / shares
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]  
Grant-date fair value $ 28.97
Risk-free interest rate 2.48%
Volatility factor 39.10%
Contractual term (years) 2 years 10 months 20 days
Minimum [Member]  
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]  
Grant-date fair value $ 28.43
Maximum [Member]  
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]  
Grant-date fair value $ 29.53
v3.19.2
Share-Based Compensation (Summary of Unrecognized Compensation Cost And Weighted Average Period For Recognition) (Details)
$ in Millions
6 Months Ended
Jun. 30, 2019
USD ($)
Restricted Stock Awards And Units [Member]  
Unrecognized Compensation And Weighted Average Recognition [Line Items]  
Unrecognized compensation cost $ 116
Weighted average period for recognition (years) 2 years 9 months 18 days
Performance-Based Restricted Stock Awards [Member]  
Unrecognized Compensation And Weighted Average Recognition [Line Items]  
Weighted average period for recognition (years) 1 year 10 months 24 days
Performance Share Units [Member]  
Unrecognized Compensation And Weighted Average Recognition [Line Items]  
Unrecognized compensation cost $ 25
Weighted average period for recognition (years) 1 year 8 months 12 days
v3.19.2
Asset Impairments (Narrative) (Details) - USD ($)
$ in Millions
3 Months Ended 6 Months Ended
Jun. 30, 2018
Jun. 30, 2018
Impaired Long Lived Assets Held And Used [Line Items]    
Asset impairments $ 154 $ 154
Unproved Impairments [Member]    
Impaired Long Lived Assets Held And Used [Line Items]    
Asset impairments   $ 61
Proved Asset Impairments [Member]    
Impaired Long Lived Assets Held And Used [Line Items]    
Asset impairments 109  
Non-oil and Gas Asset Impairments [Member]    
Impaired Long Lived Assets Held And Used [Line Items]    
Asset impairments $ 45  
v3.19.2
Restructuring and Transaction Costs (Narrative) (Details) - USD ($)
$ in Millions
3 Months Ended 6 Months Ended
Jun. 30, 2019
Jun. 30, 2018
Jun. 30, 2019
Jun. 30, 2018
Restructuring Cost And Reserve [Line Items]        
Restructuring and transaction costs $ 12 $ 85 $ 63 $ 85
Reduction of workforce [Member]        
Restructuring Cost And Reserve [Line Items]        
Restructuring and transaction costs     63  
Expense associated with accelerated awards   26 24  
Reduction of workforce [Member] | Defined Benefit Settlements [Member]        
Restructuring Cost And Reserve [Line Items]        
Restructuring and transaction costs   15 $ 5  
Reduction of workforce [Member] | Employee Related Costs [Member]        
Restructuring Cost And Reserve [Line Items]        
Restructuring and transaction costs   $ 85    
v3.19.2
Restructuring and Transaction Costs (Schedule Of The Activity And Balances Associated With Restructuring Liabilities) (Details) - USD ($)
$ in Millions
6 Months Ended
Jun. 30, 2019
Jun. 30, 2018
Restructuring Cost And Reserve [Line Items]    
Beginning balance $ 42 $ 34
Ending balance 40 69
Reduction of workforce [Member]    
Restructuring Cost And Reserve [Line Items]    
Restructuring reserve activity 23  
Prior years' restructurings [Member]    
Restructuring Cost And Reserve [Line Items]    
Restructuring reserve activity (25) 35
Other Current Liabilities [Member]    
Restructuring Cost And Reserve [Line Items]    
Beginning balance 39 17
Ending balance 39 59
Other Current Liabilities [Member] | Reduction of workforce [Member]    
Restructuring Cost And Reserve [Line Items]    
Restructuring reserve activity 23  
Other Current Liabilities [Member] | Prior years' restructurings [Member]    
Restructuring Cost And Reserve [Line Items]    
Restructuring reserve activity (23) 42
Other Long-Term Liabilities [Member]    
Restructuring Cost And Reserve [Line Items]    
Beginning balance 3 17
Ending balance 1 10
Other Long-Term Liabilities [Member] | Prior years' restructurings [Member]    
Restructuring Cost And Reserve [Line Items]    
Restructuring reserve activity $ (2) $ (7)
v3.19.2
Income Taxes (Schedule Of Effective Income Tax Rate Reconciliation) (Details) - USD ($)
$ in Millions
3 Months Ended 6 Months Ended
Jun. 30, 2019
Jun. 30, 2018
Jun. 30, 2019
Jun. 30, 2018
Income Tax Disclosure [Abstract]        
Current income tax expense (benefit) $ 2 $ 13 $ (1) $ 14
Deferred income tax expense (benefit) 69   (38) (4)
Total income tax expense (benefit) $ 71 $ 13 $ (39) $ 10
U.S. statutory income tax rate 21.00% 21.00% 21.00% 21.00%
State income taxes 8.00% (1.00%) 4.00% (1.00%)
Other 1.00% 3.00% (7.00%) (2.00%)
Deferred tax asset valuation allowance   (26.00%)   (19.00%)
Effective income tax rate 30.00% (3.00%) 18.00% (1.00%)
v3.19.2
Income Taxes (Narrative) (Details) - USD ($)
$ in Millions
3 Months Ended 6 Months Ended
Jun. 30, 2019
Jun. 30, 2018
Income Tax Disclosure [Abstract]    
Change in deferred tax valuation allowance $ 11  
Valuation allowance against U.S. deferred tax assets, percent   100.00%
v3.19.2
Net Earnings (Loss) Per Share from Continuing Operations (Net Earnings (Loss) Per Share Computations from Continuing Operations) (Details) - USD ($)
$ / shares in Units, shares in Millions, $ in Millions
3 Months Ended 6 Months Ended
Jun. 30, 2019
Jun. 30, 2018
Jun. 30, 2019
Jun. 30, 2018
Net earnings (loss) from continuing operations:        
Net earnings (loss) from continuing operations $ 166 $ (496) $ (180) $ (704)
Attributable to participating securities (2) (1) (1) (1)
Basic and diluted earnings (loss) from continuing operations $ 164 $ (497) $ (181) $ (705)
Common shares:        
Common shares outstanding - total 415 521 425 524
Attributable to participating securities (6) (6) (6) (6)
Common shares outstanding - basic 409 515 419 518
Dilutive effect of potential common shares issuable 2      
Common shares outstanding - diluted 411 515 419 518
Net earnings (loss) per share from continuing operations:        
Basic $ 0.40 $ (0.97) $ (0.43) $ (1.36)
Diluted $ 0.40 $ (0.97) $ (0.43) $ (1.36)
Antidilutive options [1] 1 2 1 2
[1] Amounts represent options to purchase shares of Devon’s common stock that are excluded from the diluted net earnings per share calculations because the options are antidilutive.
v3.19.2
Other Comprehensive Earnings (Loss) (Components Of Other Comprehensive Earnings (Loss)) (Details) - USD ($)
$ in Millions
3 Months Ended 6 Months Ended
Jun. 30, 2019
Jun. 30, 2018
Jun. 30, 2019
Jun. 30, 2018
Dec. 31, 2018
Foreign currency translation:          
Beginning accumulated foreign currency translation and other $ 1,194 $ 1,261 $ 1,159 $ 1,309  
Change in cumulative translation adjustment 43 (36) 78 (96)  
Release of Canadian cumulative translation adjustment [1] (1,237)   (1,237)    
Income tax benefit   2   14  
Ending accumulated foreign currency translation   1,227   1,227  
Pension and postretirement benefit plans:          
Beginning accumulated pension and postretirement benefits (130) (139) (132) (143)  
Recognition of net actuarial loss and prior service cost in earnings [2] 17 3 20 7  
Income tax expense (4)   (5)    
Ending accumulated pension and postretirement benefits (117) (136) (117) (136)  
Accumulated other comprehensive earnings (loss), net of tax $ (117) $ 1,091 $ (117) $ 1,091 $ 1,027
[1] In conjunction with the sale of all of its Canadian operating assets, Devon released the cumulative translation adjustment as part of its gain on the disposition of its Canadian business. See Note 18 for additional details.
[2] These accumulated other comprehensive earnings components are included in the computation of net periodic benefit cost, which is a component of other expenses in the accompanying consolidated comprehensive statements of earnings. See Note 16 for additional details.
v3.19.2
Supplemental Information To Statements Of Cash Flows (Schedule Of Supplemental Information To Statements Of Cash Flows) (Details) - USD ($)
$ in Millions
3 Months Ended 6 Months Ended
Jun. 30, 2019
Jun. 30, 2018
Jun. 30, 2019
Jun. 30, 2018
Changes in assets and liabilities, net:        
Accounts receivable $ 60 $ (131) $ 31 $ (162)
Other current assets (5) 6 7 (95)
Other long-term assets (6) (25) (15) (66)
Accounts payable 15 73 (21) 93
Revenues and royalties payable (68) 139 (60) 210
Other current liabilities (67) 4 (90) 95
Other long-term liabilities 12 (1) 5 (4)
Total (59) 65 (143) 71
Supplementary cash flow data - total operations:        
Interest paid (net of capitalized interest) 108 138 161 214
Income taxes paid (refunded) $ 10 $ (7) $ 16 $ (6)
v3.19.2
Accounts Receivable (Schedule Of Components Of Accounts Receivable) (Details) - USD ($)
$ in Millions
Jun. 30, 2019
Dec. 31, 2018
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Joint interest billings $ 198 $ 150
Other 27 15
Gross accounts receivable 848 862
Allowance for doubtful accounts (6) (7)
Net accounts receivable 842 855
Oil, Gas and NGL Sales [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Gross accounts receivable 368 413
Marketing Revenues [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Gross accounts receivable $ 255 $ 284
v3.19.2
Property, Plant and Equipment (Table of Property and Equipment, net) (Details) - USD ($)
$ in Millions
Jun. 30, 2019
Dec. 31, 2018
Property and equipment:    
Proved $ 41,155 $ 40,378
Unproved and properties under development 770 833
Total oil and gas 41,925 41,211
Less accumulated DD&A (32,938) (32,229)
Oil and gas property and equipment, net 8,987 8,982
Other property and equipment 1,735 1,707
Less accumulated DD&A (685) (663)
Other property and equipment, net 1,050 1,044
Total property and equipment, net $ 10,037 $ 10,026
v3.19.2
Debt And Related Expenses (Schedule Of Debt Instruments and Balances) (Details) - USD ($)
$ in Millions
6 Months Ended
Jun. 30, 2019
Dec. 31, 2018
Debt Instrument [Line Items]    
Short-term debt   $ 162
Net discount on debentures and notes $ (20) (21)
Debt issuance costs (35) (36)
Total debt 4,294 4,454
Total long-term debt $ 4,294 4,292
6.30% Due January 15, 2019 [Member]    
Debt Instrument [Line Items]    
Short-term debt   $ 162
Debt, maturity date Jan. 15, 2019  
Debt interest rate, stated percentage 6.30% 6.30%
5.85% due December 15, 2025 [Member]    
Debt Instrument [Line Items]    
Long-term debt, gross $ 485 $ 485
Debt, maturity date Dec. 15, 2025  
Debt interest rate, stated percentage 5.85% 5.85%
7.50% due September 15, 2027 [Member]    
Debt Instrument [Line Items]    
Long-term debt, gross $ 73 $ 73
Debt, maturity date Sep. 15, 2027  
Debt interest rate, stated percentage 7.50% 7.50%
7.875% due September 30, 2031 [Member]    
Debt Instrument [Line Items]    
Long-term debt, gross $ 675 $ 675
Debt, maturity date Sep. 30, 2031  
Debt interest rate, stated percentage 7.875% 7.875%
7.95% due April 15, 2032 [Member]    
Debt Instrument [Line Items]    
Long-term debt, gross $ 366 $ 366
Debt, maturity date Apr. 15, 2032  
Debt interest rate, stated percentage 7.95% 7.95%
5.60% due July 15, 2041 [Member]    
Debt Instrument [Line Items]    
Long-term debt, gross [1] $ 1,250 $ 1,250
Debt, maturity date Jul. 15, 2041  
Debt interest rate, stated percentage 5.60% 5.60%
4.75% due May 15, 2042 [Member]    
Debt Instrument [Line Items]    
Long-term debt, gross [1] $ 750 $ 750
Debt, maturity date May 15, 2042  
Debt interest rate, stated percentage 4.75% 4.75%
5.00% due June 15, 2045 [Member]    
Debt Instrument [Line Items]    
Long-term debt, gross $ 750 $ 750
Debt, maturity date Jun. 15, 2045  
Debt interest rate, stated percentage 5.00% 5.00%
[1] These senior notes were included in the 2018 tender offer repurchases discussed below
v3.19.2
Debt And Related Expenses (Narrative) (Details) - USD ($)
1 Months Ended 3 Months Ended 6 Months Ended
Jan. 31, 2019
Mar. 31, 2018
Jun. 30, 2019
Jun. 30, 2018
Dec. 31, 2018
Debt Instrument [Line Items]          
Redemption of senior notes     $ 162,000,000 $ 807,000,000  
Loss on early retirement of debt       (312,000,000)  
Loss on early retirement of debt, cash retirement costs       $ 304,000,000  
Senior Notes [Member]          
Debt Instrument [Line Items]          
Redemption of senior notes   $ 807,000,000      
Loss on early retirement of debt   (312,000,000)      
Loss on early retirement of debt, cash retirement costs   304,000,000      
Loss on early retirement of debt, noncash charges   8,000,000      
6.30% Due January 15, 2019 [Member]          
Debt Instrument [Line Items]          
Debt interest rate, stated percentage     6.30%   6.30%
Debt, maturity date     Jan. 15, 2019    
6.30% Due January 15, 2019 [Member] | Senior Notes [Member]          
Debt Instrument [Line Items]          
Redemption of senior notes $ 162,000,000        
Debt interest rate, stated percentage 6.30%        
7.875% due September 30, 2031 [Member]          
Debt Instrument [Line Items]          
Debt interest rate, stated percentage     7.875%   7.875%
Debt, maturity date     Sep. 30, 2031    
7.875% due September 30, 2031 [Member] | Senior Notes [Member]          
Debt Instrument [Line Items]          
Redemption of senior notes   $ 384,000,000      
Debt interest rate, stated percentage   7.875%      
Debt, maturity date   Sep. 30, 2031      
7.95% due April 15, 2032 [Member]          
Debt Instrument [Line Items]          
Debt interest rate, stated percentage     7.95%   7.95%
Debt, maturity date     Apr. 15, 2032    
7.95% due April 15, 2032 [Member] | Senior Notes [Member]          
Debt Instrument [Line Items]          
Redemption of senior notes   $ 423,000,000      
Debt interest rate, stated percentage   7.95%      
Debt, maturity date   Apr. 15, 2032      
Senior Credit Facility [Member]          
Debt Instrument [Line Items]          
Credit Facility, borrowing capacity     $ 3,000,000,000.0    
Outstanding credit facility borrowings     $ 0    
Debt-to-capitalization ratio     0.234    
Outstanding letters of credit     $ 3,000,000    
Senior Credit Facility [Member] | Maximum [Member]          
Debt Instrument [Line Items]          
Debt-to-capitalization ratio     0.65    
v3.19.2
Debt And Related Expenses (Schedule of Net Financing Cost Components) (Details) - USD ($)
$ in Millions
3 Months Ended 6 Months Ended
Jun. 30, 2019
Jun. 30, 2018
Jun. 30, 2019
Jun. 30, 2018
Debt Disclosure [Abstract]        
Interest based on debt outstanding $ 65 $ 68 $ 130 $ 151
Early retirement of debt       312
Other 1 (4) (4) (10)
Total net financing costs $ 66 $ 64 $ 126 $ 453
v3.19.2
Leases (Narrative) (Details) - USD ($)
$ in Millions
Jan. 01, 2019
Jun. 30, 2019
Operating Leased Assets [Line Items]    
Right-of-use assets   $ 273
Lease liabilities [1]   $ 309
ASU 2016-02 [Member]    
Operating Leased Assets [Line Items]    
Right-of-use assets $ 394  
Lease liabilities 380  
Cumulative effect on retained earnings, before tax (24)  
Cumulative effect on retained earnings $ (19)  
[1] Under previous lease accounting standard, ASC 840, Devon’s lease obligations as of December 31, 2018 expiring in each of the next 5 years and thereafter were $61 million for 2019, $48 million for 2020, $18 million for 2021, $9 million for 2022, $8 million for 2023 and $33 million thereafter
v3.19.2
Leases (Schedule of Right-of-use Assets and Lease Liabilities) (Details)
$ in Millions
Jun. 30, 2019
USD ($)
Leases [Abstract]  
Right-of-use assets, finance lease $ 209
Finance lease liabilities:  
Current lease liabilities, finance lease 7 [1]
Long-term lease liabilities, finance lease 239
Total lease liabilities, finance lease 246
Right-of-use assets, operating lease 64
Operating lease liabilities:  
Current lease liabilities, operating lease 39 [1]
Long-term lease liabilities, operating lease 24
Total lease liabilities, operating lease 63
Right-of-use assets 273
Lease liabilities:  
Current lease liabilities 46 [1]
Long-term lease liabilities 263
Total lease liabilities $ 309 [2]
[1] Current lease liabilities are included in other current liabilities on the consolidated balance sheets.
[2] Under previous lease accounting standard, ASC 840, Devon’s lease obligations as of December 31, 2018 expiring in each of the next 5 years and thereafter were $61 million for 2019, $48 million for 2020, $18 million for 2021, $9 million for 2022, $8 million for 2023 and $33 million thereafter
v3.19.2
Leases (Schedule of Total Lease Cost) (Details) - USD ($)
$ in Millions
3 Months Ended 6 Months Ended
Jun. 30, 2019
Jun. 30, 2019
Leases [Abstract]    
Operating lease cost $ 12 $ 25
Short-term lease cost [1] 21 45
Financing lease cost:    
Amortization of right-of-use assets 6 12
Interest on lease liabilities 2 5
Variable lease cost   1
Lease income (1) (2)
Net lease cost $ 40 $ 86
[1] Short-term lease cost excludes leases with terms of one month or less.
v3.19.2
Leases (Schedule of Additional Lease Information) (Details)
$ in Millions
3 Months Ended 6 Months Ended
Jun. 30, 2019
USD ($)
Jun. 30, 2019
USD ($)
Cash outflows for lease liabilities:    
Operating cash flows, Finance lease $ 1 $ 3
Weighted average remaining lease term (years), Finance lease 8 years 6 months 8 years 6 months
Weighted average discount rate, Finance lease 4.20% 4.20%
Operating cash flows, Operating lease   $ 1
Investing cash flows, Operating lease $ 12 27
Right-of-use assets obtained in exchange for new lease liabilities, Operating lease $ 1 $ 1
Weighted average remaining lease term (years), Operating lease 1 year 10 months 24 days 1 year 10 months 24 days
Weighted average discount rate, Operating lease 3.20% 3.20%
v3.19.2
Leases (Maturities of Lease Liabilities) (Details)
$ in Millions
Jun. 30, 2019
USD ($)
Leases [Abstract]  
2019 $ 3
2020 7
2021 7
2022 8
2023 8
Thereafter 306
Total lease payments 339
Less: interest (93)
Present value of lease liabilities 246
2019 22
2020 32
2021 8
2022 1
2023 1
Thereafter 1
Total lease payments 65
Less: interest (2)
Present value of lease liabilities 63
2019 25 [1]
2020 39 [1]
2021 15 [1]
2022 9 [1]
2023 9 [1]
Thereafter 307 [1]
Total lease payments 404 [1]
Less: interest (95) [1]
Present value of lease liabilities $ 309 [1]
[1] Under previous lease accounting standard, ASC 840, Devon’s lease obligations as of December 31, 2018 expiring in each of the next 5 years and thereafter were $61 million for 2019, $48 million for 2020, $18 million for 2021, $9 million for 2022, $8 million for 2023 and $33 million thereafter
v3.19.2
Leases (Maturities of Lease Liabilities) (Parenthetical) (Details) - USD ($)
$ in Millions
Jun. 30, 2019
Dec. 31, 2018
Lease Liability Maturity Term [Line Items]    
2019 $ 22  
2020 32  
2021 8  
2022 1  
2023 1  
Thereafter $ 1  
ASC 840    
Lease Liability Maturity Term [Line Items]    
2019   $ 61
2020   48
2021   18
2022   9
2023   8
Thereafter   $ 33
v3.19.2
Leases (Schedule of Expected Lease Income ) (Details)
$ in Millions
Jun. 30, 2019
USD ($)
[1]
Leases [Abstract]  
2019 $ 3
2020 6
2021 7
2022 7
2023 7
Thereafter 53
Total $ 83
[1] Included in operating lease income is approximately $30 million related to leases which have been executed but not yet commenced
v3.19.2
Leases (Schedule of Expected Lease Income ) (Parenthetical) (Details)
$ in Millions
Jun. 30, 2019
USD ($)
Leases [Abstract]  
Operating lease income for leases not yet commenced $ 30
v3.19.2
Asset Retirement Obligations (Summary Of Changes In Asset Retirement Obligations) (Details) - USD ($)
$ in Millions
6 Months Ended
Jun. 30, 2019
Jun. 30, 2018
Dec. 31, 2018
Asset Retirement Obligation Disclosure [Abstract]      
Asset retirement obligations as of beginning of period $ 623 $ 704  
Liabilities incurred 8 17  
Liabilities settled and divested (40) (58)  
Revision of estimated obligation (63)    
Accretion expense on discounted obligation 15 18  
Asset retirement obligations as of end of period 543 681  
Less current portion 15 18  
Asset retirement obligations, long-term $ 528 $ 663 $ 606
v3.19.2
Asset Retirement Obligations (Narrative) (Details) - USD ($)
$ in Millions
3 Months Ended 6 Months Ended
Jun. 30, 2018
Jun. 30, 2019
Jun. 30, 2018
Asset Retirement Obligations [Line Items]      
Revision of estimated obligation   $ (63)  
Decrease in asset retirement obligation   $ 40 $ 58
Barnett Shale Johnson County [Member]      
Asset Retirement Obligations [Line Items]      
Decrease in asset retirement obligation $ 34    
v3.19.2
Retirement Plans (Narrative) (Details) - USD ($)
$ in Millions
3 Months Ended 6 Months Ended
Jun. 30, 2019
Jun. 30, 2018
Jun. 30, 2019
Jun. 30, 2018
Postretirement Benefits [Member]        
Defined Benefit Plan Disclosure [Line Items]        
Net periodic benefit credit $ 1 $ 1 $ 1 $ 1
v3.19.2
Retirement Plans (Schedule Of Net Periodic Benefit Cost For Pension Benefits Plan) (Details) - Pension Benefits [Member] - USD ($)
$ in Millions
3 Months Ended 6 Months Ended
Jun. 30, 2019
Jun. 30, 2018
Jun. 30, 2019
Jun. 30, 2018
Defined Benefit Plan Disclosure [Line Items]        
Service cost $ 2 $ 3 $ 3 $ 5
Interest cost 8 10 17 20
Expected return on plan assets (9) (14) (19) (27)
Amortization of prior service cost [1]   1 1 1
Net actuarial loss [1] 3 3 6 7
Net periodic benefit cost [2] $ 4 $ 3 $ 8 $ 6
[1] These net periodic benefit costs were reclassified out of other comprehensive earnings.
[2] The service cost component of net periodic benefit cost is included in G&A expense and the remaining components of net periodic benefit costs are included in other expenses in the accompanying consolidated comprehensive statements of earnings.
v3.19.2
Stockholders' Equity (Narrative) (Details) - USD ($)
$ / shares in Units, $ in Billions
3 Months Ended 6 Months Ended
Jun. 30, 2019
Mar. 31, 2019
Jun. 30, 2018
Mar. 31, 2018
Jun. 30, 2019
Feb. 28, 2019
Stockholders Equity [Abstract]            
Percentage of increase to quarterly dividend 12.50%       12.50%  
Common stock dividends, rate per share $ 0.09 $ 0.08 $ 0.08 $ 0.06    
Share Repurchase Program [Member]            
Stockholders Equity [Abstract]            
Share-repurchase program, additional authorized amount     $ 3.0     $ 1.0
Share-repurchase program expiration date         Dec. 31, 2019  
Share Repurchase Program [Member] | Maximum [Member]            
Stockholders Equity [Abstract]            
Share-repurchase program, authorized amount       $ 1.0   $ 5.0
v3.19.2
Stockholders' Equity (Summary of Purchases of Common Stock) (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Millions
3 Months Ended 18 Months Ended
Jun. 30, 2019
Mar. 31, 2019
Dec. 31, 2018
Sep. 30, 2018
Jun. 30, 2018
Mar. 31, 2018
Jun. 30, 2019
Stockholders Equity [Line Items]              
Total Number of Shares Purchased       40,822     120,201
Dollar Value of Shares Purchased       $ 1,712     $ 4,161
Average Price Paid per Share       $ 41.92     $ 34.62
Open-Market [Member]              
Stockholders Equity [Line Items]              
Total Number of Shares Purchased 5,911 36,141 23,612 16,492 11,154 2,561  
Dollar Value of Shares Purchased $ 159 $ 1,024 $ 745 $ 712 $ 439 $ 82  
Average Price Paid per Share $ 27.01 $ 28.33 $ 31.57 $ 43.13 $ 39.35 $ 32.19  
ASR [Member]              
Stockholders Equity [Line Items]              
Total Number of Shares Purchased       24,330      
Dollar Value of Shares Purchased       $ 1,000      
Average Price Paid per Share       $ 41.10      
v3.19.2
Stockholders' Equity (Summary Of Dividends Paid On Common Stock) (Details) - USD ($)
$ / shares in Units, $ in Millions
3 Months Ended 6 Months Ended
Jun. 30, 2019
Mar. 31, 2019
Jun. 30, 2018
Mar. 31, 2018
Jun. 30, 2019
Jun. 30, 2018
Stockholders Equity Note [Abstract]            
Common stock dividends paid, Amount $ 37 $ 34 $ 42 $ 32 $ 71 $ 74
Common stock dividends, rate per share $ 0.09 $ 0.08 $ 0.08 $ 0.06    
v3.19.2
Discontinued Operations and Assets Held for Sale (Narrative) (Details)
$ in Millions, $ in Billions
3 Months Ended 6 Months Ended
Jun. 27, 2019
USD ($)
Jun. 27, 2019
CAD ($)
Sep. 30, 2019
USD ($)
Jun. 30, 2019
USD ($)
Sep. 30, 2018
USD ($)
Mar. 31, 2018
USD ($)
Jun. 30, 2019
USD ($)
MMcf
Jun. 30, 2018
USD ($)
Dec. 31, 2018
USD ($)
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items]                  
Gain on sale of aggregate ownership interests, before-tax       $ 189     $ 189    
Foreign currency translation adjustment [1]       1,237     1,237    
Cash restricted for discontinued operations       370     370    
Loss on early retirement of debt, cash retirement costs               $ 304  
Assets related to divestiture       230     230   $ 4,269
Liabilities related to divestiture       $ 2,083     $ 2,083   2,623
Non-Core Upstream Assets [Member] | Permian Basin [Member]                  
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items]                  
Assets related to divestiture                 197
Liabilities related to divestiture                 $ 69
Senior Notes [Member]                  
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items]                  
Loss on early retirement of debt, cash retirement costs           $ 304      
Loss on early retirement of debt, noncash charges           $ 8      
4.00% due July 15, 2021 [Member] | Senior Notes [Member] | Scenario Forecast [Member]                  
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items]                  
Long-term debt retired     $ 500            
Debt interest rate, stated percentage     4.00%            
Debt, maturity date     Jul. 15, 2021            
3.25% due May 15, 2022 [Member] | Senior Notes [Member] | Scenario Forecast [Member]                  
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items]                  
Long-term debt retired     $ 1,000            
Debt interest rate, stated percentage     3.25%            
Debt, maturity date     May 15, 2022            
Canadian​ Divestiture [Member]                  
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items]                  
Restructuring costs and asset impairment charges $ 273                
Estimated cash abandonment charges per quarter 6                
Canadian Business Segment [Member]                  
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items]                  
Deferred tax asset 34                
Canadian Business Segment [Member] | Scenario Forecast [Member]                  
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items]                  
Loss on early retirement of debt, cash retirement costs     $ 52            
Loss on early retirement of debt, noncash charges     6            
Canadian Business Segment [Member] | 4.00% due July 15, 2021 [Member] | Senior Notes [Member] | Scenario Forecast [Member]                  
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items]                  
Long-term debt retired     $ 500            
Debt interest rate, stated percentage     4.00%            
Debt, maturity date     Jul. 15, 2021            
Canadian Business Segment [Member] | 3.25% due May 15, 2022 [Member] | Senior Notes [Member] | Scenario Forecast [Member]                  
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items]                  
Long-term debt retired     $ 1,000            
Debt interest rate, stated percentage     3.25%            
Debt, maturity date     May 15, 2022            
Canadian Business Segment [Member] | Canadian​ Divestiture [Member] | Firm Transportation Agreement Abandonment Charge [Member]                  
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items]                  
Restructuring costs and asset impairment charges 154                
Canadian Business Segment [Member] | Canadian​ Divestiture [Member] | Office Lease Abandonment and Related Asset Impairment Charges [Member]                  
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items]                  
Restructuring costs and asset impairment charges 55                
Canadian Business Segment [Member] | Canadian​ Divestiture [Member] | Employee Related Costs [Member]                  
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items]                  
Restructuring costs and asset impairment charges 64                
Expense associated with accelerated awards $ 40                
Canadian Natural Resources Limited [Member] | Canadian Business Segment [Member]                  
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items]                  
Effective close date of divestiture Jun. 27, 2019 Jun. 27, 2019              
Proceeds from sale of aggregate ownership interests $ 2,600 $ 3.4              
Gain on sale of aggregate ownership interests, before-tax 189                
Gain on sale of aggregate ownership interests, after-tax 460                
Cash income taxes 110                
Foreign currency translation adjustment 1,200                
Cash restricted for discontinued operations 370                
Restructuring costs reimbursed $ 50                
EnLink and General Partner [Member]                  
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items]                  
Effective close date of divestiture             Jul. 18, 2018    
Proceeds from sale of aggregate ownership interests         $ 3,125        
Gain on sale of aggregate ownership interests, before-tax         2,600        
Gain on sale of aggregate ownership interests, after-tax         2,200        
Cash income taxes         $ 12        
Net cash outflows             $ 280    
EnLink and General Partner [Member] | Chisholm Gathering and Processing Contract [Member]                  
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items]                  
Gathering and processing minimum volume commitments period end             early 2021    
EnLink and General Partner [Member] | Bridgeport and Cana Gathering and Processing Contracts [Member]                  
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items]                  
Commitment Termination Date             Dec. 31, 2029    
EnLink and General Partner [Member] | Minimum [Member] | Chisholm Gathering and Processing Contract [Member]                  
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items]                  
Minimum gathering volume commitment | MMcf             77    
Minimum processing volume commitment | MMcf             77    
EnLink and General Partner [Member] | Maximum [Member] | Chisholm Gathering and Processing Contract [Member]                  
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items]                  
Minimum gathering volume commitment | MMcf             128    
Minimum processing volume commitment | MMcf             128    
[1] In conjunction with the sale of all of its Canadian operating assets, Devon released the cumulative translation adjustment as part of its gain on the disposition of its Canadian business. See Note 18 for additional details.
v3.19.2
Discontinued Operations and Assets Held for Sale (Amounts Reported as Discontinued Operations in the Consolidated Comprehensive Statements of Earnings) (Details) - USD ($)
$ in Millions
3 Months Ended 6 Months Ended
Jun. 30, 2019
Jun. 30, 2018
Jun. 30, 2019
Jun. 30, 2018
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items]        
Upstream revenues $ 388 $ 303 $ 635 $ 605
Marketing and midstream revenues 12 1,619 38 3,248
Total revenues 400 1,922 673 3,853
Production expenses 153 166 294 314
Exploration expenses 4 6 13 18
Marketing and midstream expenses 9 1,280 18 2,628
Depreciation, depletion and amortization 49 184 128 416
Asset impairments 37   37  
Asset dispositions (189)   (189)  
General and administrative expenses 13 49 31 100
Financing costs, net 13 43 26 85
Restructuring and transaction costs 236 9 239 9
Other expenses 31 34 3 102
Total expenses 356 1,771 600 3,672
Earnings from discontinued operations before income taxes 44 151 73 181
Income tax benefit (285) (10) (285) (35)
Net earnings from discontinued operations, net of tax 329 161 358 216
Net earnings attributable to noncontrolling interests   90   134
Net earnings from discontinued operations, attributable to Devon   71   82
Canada [Member]        
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items]        
Upstream revenues 388 303 635 605
Marketing and midstream revenues 12 24 38 41
Total revenues 400 327 673 646
Production expenses 153 166 294 314
Exploration expenses 4 6 13 18
Marketing and midstream expenses 9 11 18 18
Depreciation, depletion and amortization 49 78 128 172
Asset impairments 37   37  
Asset dispositions (189)   (189)  
General and administrative expenses 13 18 31 42
Financing costs, net 13 (2) 26 (4)
Restructuring and transaction costs 236 9 239 9
Other expenses 31 39 3 109
Total expenses 356 325 600 678
Earnings from discontinued operations before income taxes 44 2 73 (32)
Income tax benefit (285) (20) (285) (51)
Net earnings from discontinued operations, net of tax $ 329 22 $ 358 19
Net earnings from discontinued operations, attributable to Devon   22   19
EnLink and General Partner [Member]        
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items]        
Marketing and midstream revenues   1,595   3,207
Total revenues   1,595   3,207
Marketing and midstream expenses   1,269   2,610
Depreciation, depletion and amortization   106   244
General and administrative expenses   31   58
Financing costs, net   45   89
Other expenses   (5)   (7)
Total expenses   1,446   2,994
Earnings from discontinued operations before income taxes   149   213
Income tax benefit   10   16
Net earnings from discontinued operations, net of tax   139   197
Net earnings attributable to noncontrolling interests   90   134
Net earnings from discontinued operations, attributable to Devon   $ 49   $ 63
v3.19.2
Discontinued Operations and Assets Held for Sale (Carrying Amounts of Assets and Liabilities Classified as Associated with Discontinued Operations on Consolidated Balance Sheets) (Details) - USD ($)
$ in Millions
Jun. 30, 2019
Dec. 31, 2018
Disposal Group Including Discontinued Operation Balance Sheet Disclosures [Abstract]    
Accounts receivable $ 111 $ 37
Other current assets 20 246
Current assets associated with discontinued operations 131 283
Oil and gas property and equipment, based on successful efforts accounting, net   3,829
Other property and equipment, net   78
Other long-term assets 99 79
Long-term assets associated with discontinued operations 99 3,986
Total assets associated with discontinued operations 230 4,269
Accounts payable 97 101
Revenues and royalties payable 16 67
Short-term debt (1) [1] 1,494  
Other current liabilities 287 170
Current liabilities associated with discontinued operations 1,894 338
Long-term debt [1]   1,493
Asset retirement obligations   424
Other long-term liabilities 189 20
Deferred income taxes   348
Long-term liabilities associated with discontinued operations 189 2,285
Total liabilities associated with discontinued operations $ 2,083 $ 2,623
[1]

 

(1)

Includes the $500 million 4.00% Senior Notes due July 15, 2021 and $1.0 billion 3.25% Senior Notes due May 15, 2022 that were retired early in July 2019 utilizing a portion of the proceeds from the sale of Devon’s Canadian business.

v3.19.2
Discontinued Operations and Assets Held for Sale (Carrying Amounts of Assets and Liabilities Classified as Associated with Discontinued Operations on Consolidated Balance Sheets) (Parenthetical) (Details) - Scenario Forecast [Member] - Senior Notes [Member]
$ in Millions
3 Months Ended
Sep. 30, 2019
USD ($)
4.00% due July 15, 2021 [Member]  
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items]  
Long-term debt retired $ 500
Debt interest rate, stated percentage 4.00%
Debt, maturity date Jul. 15, 2021
3.25% due May 15, 2022 [Member]  
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items]  
Long-term debt retired $ 1,000
Debt interest rate, stated percentage 3.25%
Debt, maturity date May 15, 2022
v3.19.2
Commitments And Contingencies (Narrative) (Details)
6 Months Ended
Jun. 30, 2019
Defendant
Parishes in Louisiana [Member] | Minimum [Member]  
Loss Contingencies [Line Items]  
Number of defendants 100
v3.19.2
Fair Value Measurements (Schedule Of Carrying Value And Fair Value Measurement Information For Financial Assets And Liabilities) (Details) - USD ($)
$ in Millions
Jun. 30, 2019
Dec. 31, 2018
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivatives, assets $ 127 $ 674
Derivatives, liabilities (7) (33)
Carrying Amount [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash equivalents 2,784 1,505
Debt (4,294) (4,454)
Carrying Amount [Member] | Commodity Derivatives [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivatives, assets 127 674
Derivatives, liabilities (7) (33)
Total Fair Value [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash equivalents 2,784 1,505
Debt (5,311) (4,494)
Total Fair Value [Member] | Commodity Derivatives [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivatives, assets 127 674
Derivatives, liabilities (7) (33)
Level 1 Inputs [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash equivalents 2,784 1,405
Level 2 Inputs [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash equivalents   100
Debt (5,311) (4,494)
Level 2 Inputs [Member] | Commodity Derivatives [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivatives, assets 127 674
Derivatives, liabilities $ (7) $ (33)