DEVON ENERGY CORP/DE, 10-Q filed on 10/30/2020
Quarterly Report
v3.20.2
Document And Entity Information - shares
shares in Millions
9 Months Ended
Sep. 30, 2020
Oct. 21, 2020
Cover [Abstract]    
Document Type 10-Q  
Document Period End Date Sep. 30, 2020  
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 2020  
Entity Filer Category Large Accelerated Filer  
Entity Small Business false  
Entity Emerging Growth Company false  
Document Fiscal Period Focus Q3  
Entity Common Stock, Shares Outstanding   382.5
Entity Current Reporting Status Yes  
Entity Shell Company false  
Entity File Number 001-32318  
Entity Tax Identification Number 73-1567067  
Entity Address, Address Line One 333 West Sheridan Avenue  
Entity Address, City or Town Oklahoma City  
Entity Address, State or Province OK  
Entity Address, Postal Zip Code 73102-5015  
City Area Code 405  
Local Phone Number 235-3611  
Entity Interactive Data Current Yes  
Title of 12(b) Security Common Stock, par value $0.10 per share  
Security Exchange Name NYSE  
Entity Incorporation, State or Country Code DE  
Document Quarterly Report true  
Document Transition Report false  
v3.20.2
Consolidated Statements of Comprehensive Earnings - USD ($)
$ in Millions
3 Months Ended 9 Months Ended
Sep. 30, 2020
Sep. 30, 2019
Sep. 30, 2020
Sep. 30, 2019
Revenues $ 1,154 $ 1,619 $ 3,276 $ 4,969
Oil, gas and NGL derivatives (87) 127 272 (338)
Total revenues 1,067 1,746 3,548 4,631
Production expenses 271 294 852 873
Exploration expenses 39 18 163 29
Depreciation, depletion and amortization 299 381 999 1,115
Asset impairments     2,666  
Asset dispositions   (1)   (48)
General and administrative expenses 75 107 256 356
Financing costs, net 66 60 200 186
Restructuring and transaction costs 32 10 32 73
Other expenses   3 (35) (12)
Total expenses 1,260 1,556 6,528 4,719
Earnings (loss) from continuing operations before income taxes (193) 190 (2,980) (88)
Income tax expense (benefit) (90) 54 (510) 3
Net earnings (loss) from continuing operations (103) 136 (2,470) (91)
Net earnings (loss) from discontinued operations, net of income taxes 13 (27) (103) 378
Net earnings (loss) (90) 109 (2,573) 287
Net earnings attributable to noncontrolling interests 2   5  
Net earnings (loss) attributable to Devon $ (92) $ 109 $ (2,578) $ 287
Basic net earnings (loss) per share:        
Basic earnings (loss) from continuing operations per share $ (0.29) $ 0.34 $ (6.58) $ (0.22)
Basic earnings (loss) from discontinued operations per share 0.04 (0.07) (0.27) 0.91
Basic net earnings (loss) per share (0.25) 0.27 (6.85) 0.69
Diluted net earnings (loss) per share:        
Diluted earnings (loss) from continuing operations per share (0.29) 0.34 (6.58) (0.22)
Diluted earnings (loss) from discontinued operations per share 0.04 (0.07) (0.27) 0.91
Diluted net earnings (loss) per share $ (0.25) $ 0.27 $ (6.85) $ 0.69
Comprehensive earnings (loss):        
Net earnings (loss) $ (90) $ 109 $ (2,573) $ 287
Other comprehensive earnings (loss), net of tax:        
Foreign currency translation, discontinued operations       78
Release of Canadian cumulative translation adjustment, discontinued operations [1]       (1,237)
Pension and postretirement plans 1 1 3 16
Other comprehensive earnings (loss), net of tax 1 1 3 (1,143)
Comprehensive earnings (loss): (89) 110 (2,570) (856)
Comprehensive earnings attributable to noncontrolling interests 2   5  
Comprehensive earnings (loss) attributable to Devon (91) 110 (2,575) (856)
Oil, Gas and NGL Sales [Member]        
Revenues 678 919 1,909 2,774
Marketing and Midstream Revenues [Member]        
Revenues 476 700 1,367 2,195
Marketing and Midstream Expenses [Member]        
Expenses $ 478 $ 684 $ 1,395 $ 2,147
[1] In conjunction with the sale of substantially all of its oil and gas assets and operations in Canada, Devon released the cumulative translation adjustment as part of its gain on the disposition of its Canadian business. See Note 17 for additional details.
v3.20.2
Consolidated Statements Of Cash Flows - USD ($)
$ in Millions
3 Months Ended 9 Months Ended
Sep. 30, 2020
Sep. 30, 2019
Sep. 30, 2020
Sep. 30, 2019
Cash flows from operating activities:        
Net earnings (loss) $ (90) $ 109 $ (2,573) $ 287
Adjustments to reconcile net earnings (loss) to net cash from operating activities:        
Net (earnings) loss from discontinued operations, net of income taxes (13) 27 103 (378)
Depreciation, depletion and amortization 299 381 999 1,115
Asset impairments     2,666  
Leasehold impairments 36 13 149 15
Accretion on discounted liabilities 8 8 24 25
Total (gains) losses on commodity derivatives 87 (127) (272) 338
Cash settlements on commodity derivatives 10 71 343 125
Gains on asset dispositions   (1)   (48)
Deferred income tax expense (benefit)   52 (311) 2
Share-based compensation 31 23 70 92
Other 1 3 5 (9)
Changes in assets and liabilities, net 58 36 (97) (100)
Net cash from operating activities - continuing operations 427 595 1,106 1,464
Cash flows from investing activities:        
Capital expenditures (204) (526) (936) (1,502)
Acquisitions of property and equipment   (5) (5) (28)
Divestitures of property and equipment 1 9 29 347
Net cash from investing activities - continuing operations (203) (522) (912) (1,183)
Cash flows from financing activities:        
Repayments of long-term debt       (162)
Repurchases of common stock   (561) (38) (1,746)
Dividends paid on common stock (43) (35) (119) (106)
Contributions from noncontrolling interests 1   12  
Distributions to noncontrolling interests (4)   (10)  
Shares exchanged for tax withholdings and other   (1) (17) (23)
Net cash from financing activities - continuing operations (46) (597) (172) (2,037)
Net change in cash, cash equivalents and restricted cash of continuing operations 178 (524) 22 (1,756)
Cash flows from discontinued operations:        
Operating activities 45 (94) (129) 37
Investing activities 1 (5) 171 2,472
Financing activities 0 (1,571) 0 (1,579)
Effect of exchange rate changes on cash 4 (3) (11) 36
Net change in cash, cash equivalents and restricted cash of discontinued operations 50 (1,673) 31 966
Net change in cash, cash equivalents and restricted cash 228 (2,197) 53 (790)
Cash, cash equivalents and restricted cash at beginning of period 1,669 3,853 1,844 2,446
Cash, cash equivalents and restricted cash at end of period 1,897 1,656 1,897 1,656
Reconciliation of cash, cash equivalents and restricted cash:        
Cash and cash equivalents 1,707 1,375 1,707 1,375
Cash restricted for discontinued operations 190 280 190 280
Restricted cash included in other current assets   1   1
Cash, cash equivalents and restricted cash at end of period $ 1,897 $ 1,656 $ 1,897 $ 1,656
v3.20.2
Consolidated Balance Sheets - USD ($)
$ in Millions
Sep. 30, 2020
Dec. 31, 2019
ASSETS    
Cash and cash equivalents $ 1,707 $ 1,464
Cash restricted for discontinued operations 190 380
Accounts receivable 493 832
Current assets associated with discontinued operations 728 896
Other current assets 359 279
Total current assets 3,477 3,851
Oil and gas property and equipment, based on successful efforts accounting, net 4,553 7,558
Other property and equipment, net ($100 million and $80 million related to CDM in 2020 and 2019, respectively) [1] 1,003 1,035
Total property and equipment, net 5,556 8,593
Goodwill 753 753
Right-of-use assets 226 243
Other long-term assets 233 196
Long-term assets associated with discontinued operations 81 81
Total assets 10,326 13,717
LIABILITIES AND EQUITY    
Accounts payable 415 428
Revenues and royalties payable 562 730
Current liabilities associated with discontinued operations 463 459
Other current liabilities 269 310
Total current liabilities 1,709 1,927
Long-term debt 4,297 4,294
Lease liabilities 245 244
Asset retirement obligations 398 380
Other long-term liabilities 372 426
Long-term liabilities associated with discontinued operations 157 185
Deferred income taxes   341
Stockholders' equity:    
Common stock, $0.10 par value. Authorized 1.0 billion shares; issued 383 million and 382 million shares in 2020 and 2019, respectively 38 38
Additional paid-in capital 2,750 2,735
Retained earnings 351 3,148
Accumulated other comprehensive loss (116) (119)
Total stockholders’ equity attributable to Devon 3,023 5,802
Noncontrolling interests 125 118
Total equity 3,148 5,920
Total liabilities and equity $ 10,326 $ 13,717
[1] $100 million and $80 million related to CDM in 2020 and 2019, respectively.
v3.20.2
Consolidated Balance Sheets (Parenthetical) - USD ($)
$ in Millions
Sep. 30, 2020
Dec. 31, 2019
Other property and equipment, net [1] $ 1,003 $ 1,035
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) 383,000,000 382,000,000
CDM [Member]    
Other property and equipment, net $ 100 $ 80
[1] $100 million and $80 million related to CDM in 2020 and 2019, respectively.
v3.20.2
Consolidated Statements Of Equity - USD ($)
shares in Millions, $ in Millions
Total
Effect of Adoption of Lease Accounting [Member]
Common Stock [Member]
Additional Paid-In Capital [Member]
Retained Earning [Member]
Retained Earning [Member]
Effect of Adoption of Lease Accounting [Member]
Other Comprehensive Earnings (Loss) [Member]
Treasury Stock [Member]
Noncontrolling Interests [Member]
Balance at Dec. 31, 2018 $ 9,186 $ (19) $ 45 $ 4,486 $ 3,650 $ (19) $ 1,027 $ (22)  
Balance, shares at Dec. 31, 2018     450            
Net earnings (loss) 287       287        
Other comprehensive earnings (loss), net of tax (1,143)           (1,143)    
Restricted stock grants, net of cancellations, shares     3            
Common stock repurchased (1,755)             (1,755)  
Common stock retired     $ (6) (1,763)       1,769  
Common stock retired, shares     (66)            
Common stock dividends (106)       (106)        
Share-based compensation 92     92          
Balance at Sep. 30, 2019 6,542   $ 39 2,815 3,812   (116) (8)  
Balance, shares at Sep. 30, 2019     387            
Balance at Jun. 30, 2019 6,994   $ 41 3,352 3,738   (117) (20)  
Balance, shares at Jun. 30, 2019     410            
Net earnings (loss) 109       109        
Other comprehensive earnings (loss), net of tax 1           1    
Common stock repurchased (549)             (549)  
Common stock retired     $ (2) (559)       561  
Common stock retired, shares     (23)            
Common stock dividends (35)       (35)        
Share-based compensation 22     22          
Balance at Sep. 30, 2019 6,542   $ 39 2,815 3,812   (116) (8)  
Balance, shares at Sep. 30, 2019     387            
Balance at Dec. 31, 2019 5,920   $ 38 2,735 3,148   (119)   $ 118
Balance, shares at Dec. 31, 2019     382            
Net earnings (loss) (2,573)       (2,578)       5
Other comprehensive earnings (loss), net of tax 3           3    
Restricted stock grants, net of cancellations, shares     3            
Common stock repurchased (55)             (55)  
Common stock retired       (55)       55  
Common stock retired, shares     (3)            
Common stock dividends (219)       (219)        
Share-based compensation 70     70          
Share-based compensation, shares     1            
Contributions from noncontrolling interests 12               12
Distributions to noncontrolling interests (10)               (10)
Balance at Sep. 30, 2020 3,148   $ 38 2,750 351   (116)   125
Balance, shares at Sep. 30, 2020     383            
Balance at Jun. 30, 2020 3,353   $ 38 2,720 586   (117)   126
Balance, shares at Jun. 30, 2020     383            
Net earnings (loss) (90)       (92)       2
Other comprehensive earnings (loss), net of tax 1           1    
Common stock repurchased (1)             (1)  
Common stock retired       (1)       $ 1  
Common stock dividends (143)       (143)        
Share-based compensation 31     31          
Contributions from noncontrolling interests 1               1
Distributions to noncontrolling interests (4)               (4)
Balance at Sep. 30, 2020 $ 3,148   $ 38 $ 2,750 $ 351   $ (116)   $ 125
Balance, shares at Sep. 30, 2020     383            
v3.20.2
Summary Of Significant Accounting Policies
9 Months Ended
Sep. 30, 2020
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 2019 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 nine-month periods ended September 30, 2020 and 2019 and Devon’s financial position as of September 30, 2020. As further discussed in Note 17, Devon closed on the sale of its Barnett Shale assets on October 1, 2020, and sold its Canadian operations in the second quarter of 2019. Activity relating to Devon’s Barnett Shale assets, inclusive of properties divested as partial sales of the Barnett Shale common operating field in previous reporting periods located primarily in Johnson and Wise counties, Texas, and its Canadian operations are classified as discontinued operations within Devon’s consolidated statements of comprehensive earnings and consolidated statements of cash flows. The associated assets and liabilities of Devon’s Barnett Shale assets and Canadian operations are presented as assets and liabilities associated with discontinued operations on the consolidated balance sheets.

During the fourth quarter of 2019, Devon entered into an agreement to form Cotton Draw Midstream, L.L.C. (“CDM”), a joint-venture entity in the Delaware Basin with an affiliate of QL Capital Partners, LP (“QLCP”). Devon holds a controlling interest in CDM and the portions of CDM’s net earnings and equity not attributable to Devon’s controlling interest are shown separately as noncontrolling interests in the accompanying consolidated statements of comprehensive earnings and consolidated balance sheets. CDM is considered a VIE to Devon. The assets of CDM cannot be used by Devon for general corporate purposes and are included in and disclosed parenthetically on Devon's consolidated balance sheets. The carrying amount of liabilities related to CDM for which the creditors do not have recourse to Devon's assets are also included in, and disclosed parenthetically, on Devon's consolidated balance sheets if material.

 

Disaggregation of Revenue

 

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

 

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Oil

 

$

504

 

 

$

751

 

 

$

1,462

 

 

$

2,160

 

Gas

 

 

79

 

 

 

80

 

 

 

221

 

 

 

291

 

NGL

 

 

95

 

 

 

88

 

 

 

226

 

 

 

323

 

Oil, gas and NGL sales

 

 

678

 

 

 

919

 

 

 

1,909

 

 

 

2,774

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Oil

 

 

233

 

 

 

407

 

 

 

702

 

 

 

1,157

 

Gas

 

 

97

 

 

 

140

 

 

 

268

 

 

 

530

 

NGL

 

 

143

 

 

 

151

 

 

 

390

 

 

 

506

 

Total marketing revenues

 

 

473

 

 

 

698

 

 

 

1,360

 

 

 

2,193

 

Midstream revenues

 

 

3

 

 

 

2

 

 

 

7

 

 

 

2

 

Marketing and midstream revenues

 

 

476

 

 

 

700

 

 

 

1,367

 

 

 

2,195

 

Total revenues from contracts with customers

 

$

1,154

 

 

$

1,619

 

 

$

3,276

 

 

$

4,969

 

 

 


Recently Adopted Accounting Standards

 

In 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses. This ASU changes the impairment model for trade receivables, held-to-maturity debt securities, net investments in leases, loans and other financial assets measured at amortized cost from the current “incurred loss” model to a new forward-looking “expected loss” model. Devon adopted this ASU in the first quarter of 2020 using the modified retrospective approach. Devon assesses credit risk by class of account type which includes cash equivalents and oil and gas, marketing and midstream, joint interest and other accounts receivable. These classes are then further evaluated using a probability weighted scenario assessment based on historical losses and a probability of future default. This evaluation is supported by an assessment of risk factors such as the age of receivable, current macro-economic conditions, credit rating of the counterparty and our historical loss rate. This adoption did not have a material impact on Devon’s consolidated financial statements.

 

v3.20.2
Acquisition and Divestitures
9 Months Ended
Sep. 30, 2020
Business Combinations [Abstract]  
Acquisition and Divestitures

2.Acquisitions and Divestitures

 

Divestitures

 

Discontinued Operations – Upstream Assets

 

On October 1, 2020, Devon completed the sale of its Barnett Shale assets to BKV for proceeds, net of purchase price adjustments, of $490 million, including a $170 million deposit previously received in April 2020. The agreement with BKV also provides for contingent earnout payments to Devon of up to $260 million based upon future commodity prices, with upside participation beginning at a $2.75 Henry Hub natural gas price or a $50 WTI oil price. The contingent payment period commences on January 1, 2021 and has a term of four years. Devon recognized a $748 million asset impairment related to these assets in the fourth quarter of 2019 and incremental asset impairments of $179 million and $3 million during the first quarter and third quarter of 2020, respectively. Additional information can be found in Note 17.

 

In June 2019, Devon completed the sale of substantially all of its oil and gas 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 $223 million ($425 million, net of tax, primarily due to a significant deferred tax benefit) in 2019. Additional information can be found in Note 17.

 

Continuing Operations – Upstream Assets

 

During the first quarter of 2020, Devon entered into a farmout agreement in which the third party to the agreement can participate in the development of certain Devon-owned non-operated interests in the Delaware Basin. Under the agreement, Devon will periodically transfer working interests to the third party, who will then fund its share of operating and development costs. Once certain investment hurdles are met, a portion of the working interest held by the third party will revert back to Devon. No material activity occurred during the first nine months of 2020.

 

In the first quarter of 2019, Devon received proceeds of approximately $300 million and recognized a $45 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.

 

Pending Merger

On September 26, 2020, Devon and WPX entered into the Merger Agreement, providing for an all-stock merger of equals. WPX is an oil and gas exploration and production company with assets in the Delaware Basin in Texas and New Mexico and the Williston Basin in North Dakota. On the closing date of the Merger, each share of WPX common stock will be automatically converted into the right to receive 0.5165 of a share of Devon common stock. No fractional shares of Devon’s common stock will be issued in the Merger, and holders of shares of WPX common stock will, instead, receive cash in lieu of fractional shares of Devon common stock, if any. The Merger has been unanimously approved by Devon and WPX Boards of Directors and is still subject to the approval of both Devon and WPX shareholders. The Merger is expected to close in the first quarter of 2021 subject to shareholder and regulatory approvals and other customary closing conditions.

v3.20.2
Derivative Financial Instruments
9 Months Ended
Sep. 30, 2020
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 September 30, 2020, 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. As of September 30, 2020, Devon neither held cash collateral of its counterparties nor posted cash collateral to its counterparties.

Commodity Derivatives

As of September 30, 2020, Devon had the following open oil derivative positions. The first table presents Devon’s oil derivatives that settle against the average of the prompt month NYMEX WTI futures price. The second 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)

 

Q4 2020

 

 

88,000

 

 

$

36.28

 

 

 

39,500

 

 

$

50.93

 

 

$

60.93

 

Q1-Q4 2021

 

 

23,810

 

 

$

35.79

 

 

 

19,367

 

 

$

40.66

 

 

$

50.66

 

Q1 2022

 

 

500

 

 

$

45.00

 

 

 

6,750

 

 

$

37.93

 

 

$

47.93

 

 

 

 

 

Oil Basis Swaps

 

Period

 

Index

 

Volume

(Bbls/d)

 

 

Weighted Average

Differential to WTI

($/Bbl)

 

Q4 2020

 

Argus MEH

 

 

50,000

 

 

$

0.47

 

Q4 2020

 

Midland Sweet

 

 

32,000

 

 

$

(1.23

)

Q4 2020

 

NYMEX Roll

 

 

54,000

 

 

$

0.38

 

Q1-Q4 2021

 

Midland Sweet

 

 

7,000

 

 

$

1.27

 

 

As of September 30, 2020, 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)

 

Q4 2020

 

 

69,000

 

 

$

2.69

 

 

 

141,000

 

 

$

2.35

 

 

$

2.85

 

Q1-Q4 2021

 

 

32,699

 

 

$

2.76

 

 

 

142,055

 

 

$

2.38

 

 

$

2.88

 

Q1 2022

 

 

14,000

 

 

$

2.85

 

 

 

36,000

 

 

$

2.60

 

 

$

3.10

 

 

 

 

Natural Gas Basis Swaps

 

Period

 

Index

 

Volume

(MMBtu/d)

 

 

Weighted Average

Differential to

Henry Hub

($/MMBtu)

 

Q4 2020

 

Panhandle Eastern Pipe Line

 

 

30,000

 

 

$

(0.47

)

Q4 2020

 

El Paso Natural Gas

 

 

65,000

 

 

$

(0.78

)

Q4 2020

 

Houston Ship Channel

 

 

30,000

 

 

$

(0.02

)

Q1-Q4 2021

 

El Paso Natural Gas

 

 

35,000

 

 

$

(0.92

)

 

 

As of September 30, 2020, 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)

 

Q4 2020

 

Natural Gasoline

 

 

1,000

 

 

$

44.84

 

Q4 2020

 

Normal Butane

 

 

1,500

 

 

$

23.56

 

Q4 2020

 

Propane

 

 

4,500

 

 

$

25.18

 

 

Financial Statement Presentation

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

 

 

September 30, 2020

 

 

December 31, 2019

 

Commodity derivative assets:

 

 

 

 

 

 

 

 

Other current assets

 

$

27

 

 

$

49

 

Other long-term assets

 

 

1

 

 

 

1

 

Total derivative assets

 

$

28

 

 

$

50

 

Commodity derivative liabilities:

 

 

 

 

 

 

 

 

Other current liabilities

 

$

70

 

 

$

30

 

Other long-term liabilities

 

 

10

 

 

 

1

 

Total derivative liabilities

 

$

80

 

 

$

31

 

 

v3.20.2
Share-Based Compensation
9 Months Ended
Sep. 30, 2020
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 statements of comprehensive 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 statements of comprehensive earnings.

 

 

 

Nine Months Ended September 30,

 

 

 

2020

 

 

2019

 

G&A

 

$

58

 

 

$

64

 

Exploration expenses

 

 

1

 

 

 

1

 

Restructuring and transaction costs

 

 

11

 

 

 

27

 

Total

 

$

70

 

 

$

92

 

Related income tax benefit

 

$

 

 

$

13

 

 

Under its approved long-term incentive plan, Devon granted share-based awards to certain employees in the first nine months of 2020. The following table presents a summary of Devon’s unvested restricted stock awards, performance-based restricted stock awards and performance share units granted under the plan.

 

 

 

 

 

 

Performance-Based

 

 

Performance

 

 

 

Restricted Stock Awards

 

 

Restricted Stock Awards

 

 

Share Units

 

 

 

Awards

 

 

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 12/31/19

 

 

4,984

 

 

$

29.65

 

 

 

153

 

 

$

33.88

 

 

 

2,155

 

 

 

 

 

$

40.35

 

Granted

 

 

3,056

 

 

$

21.90

 

 

 

 

 

$

 

 

 

688

 

 

 

 

 

$

27.89

 

Vested

 

 

(2,093

)

 

$

29.11

 

 

 

(109

)

 

$

29.51

 

 

 

(455

)

 

 

 

 

$

52.56

 

Forfeited

 

 

(294

)

 

$

24.44

 

 

 

 

 

$

 

 

 

(385

)

 

 

 

 

$

47.68

 

Unvested at 9/30/20

 

 

5,653

 

 

$

25.93

 

 

 

44

 

 

$

44.70

 

 

 

2,003

 

 

(1

)

 

$

31.89

 

 

(1)

A maximum of 4.0 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 2020, as indicated in the previous summary table.

 

 

 

2020

 

Grant-date fair value

 

$

27.89

 

Risk-free interest rate

 

1.36%

 

Volatility factor

 

38.4%

 

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 September 30, 2020.

 

 

 

 

 

 

 

Performance-Based

 

 

 

 

 

 

 

Restricted Stock

 

 

Restricted Stock

 

 

Performance

 

 

 

Awards

 

 

Awards

 

 

Share Units

 

Unrecognized compensation cost

 

$

81

 

 

$

 

 

$

15

 

Weighted average period for recognition (years)

 

 

2.6

 

 

 

0.7

 

 

 

1.7

 

 

v3.20.2
Asset Impairments
9 Months Ended
Sep. 30, 2020
Asset Impairment Charges [Abstract]  
Asset Impairments

5.Asset Impairments

 

The following table presents a summary of Devon’s asset impairments. Unproved impairments shown below are included in exploration expenses in the consolidated statements of comprehensive earnings.

 

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Proved oil and gas assets

 

$

 

 

$

 

 

$

2,664

 

 

$

 

Other assets

 

 

 

 

 

 

 

 

2

 

 

 

 

Total asset impairments

 

$

 

 

$

 

 

$

2,666

 

 

$

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unproved impairments

 

$

36

 

 

$

13

 

 

$

149

 

 

$

15

 

 

Proved Oil and Gas and Other Asset Impairments

Reduced demand from the COVID-19 pandemic caused an unprecedented downturn in the price of oil. As a result, Devon reduced planned 2020 capital investment by 45%. With materially lower commodity prices and reduced near-term investment, Devon assessed all of its oil and gas fields for impairment as of March 31, 2020. For impairment determinations, Devon historically utilized NYMEX forward strip prices for the first five years and applied internally generated price forecasts for subsequent years. In response to the COVID-19 pandemic, the NYMEX forward market became highly illiquid as evidenced by materially reduced trading volumes for periods beyond 2021. Therefore, Devon supplemented the NYMEX forward strip prices with price forecasts published by reputable investment banks and reservoir engineering firms to estimate future revenues as of March 31, 2020. To measure indicated impairments, Devon used a market-based weighted-average cost of capital to discount the future net cash flows. These inputs are categorized as level 3 in the fair value hierarchy.

Devon recognized approximately $2.7 billion of proved asset impairments during the first quarter of 2020. These impairments related to the Anadarko Basin and Rockies fields in which the cost basis included acquisitions completed in 2016 and 2015, respectively, when commodity prices were much higher than they are today. During the first quarter of 2020, Devon recognized $2 million of product line fill impairments.

Unproved Impairments

Due to the downturn in the commodity price environment and reduced near-term investment as discussed above, Devon also recognized $149 million of unproved impairments during the first nine months of 2020. Of these unproved impairments, $113 million related primarily to the Rockies field and $36 million related to certain non-core acreage Devon no longer intends to pursue for exploration opportunities. During the first nine months of 2019, Devon recognized $15 million of unproved impairments related to certain non-core acreage it no longer intended to pursue for exploration opportunities.

v3.20.2
Restructuring and Transaction Costs
9 Months Ended
Sep. 30, 2020
Restructuring And Related Activities [Abstract]  
Restructuring and Transaction Costs

6.Restructuring and Transaction Costs

In August 2020, Devon announced a cost reduction plan designed to deliver sustainable cost savings by year-end 2020. As a result, Devon recognized $32 million of restructuring expenses during the third quarter of 2020. Of these expenses, $11 million resulted from accelerated vesting of share-based grants, which are noncash charges.

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 discussed in Note 2. As a result, Devon recognized $73 million of restructuring expenses during the first nine months of 2019. Of these expenses, $27 million resulted from accelerated vesting of share-based grants, which are noncash charges. Additionally, $5 million resulted from settlements of defined retirement benefits.

The following table summarizes Devon’s restructuring liabilities.

 

 

 

Other

 

 

Other

 

 

 

 

 

 

 

Current

 

 

Long-term

 

 

 

 

 

 

 

Liabilities

 

 

Liabilities

 

 

Total

 

 

 

(Millions)

 

Balance as of December 31, 2019

 

$

20

 

 

$

1

 

 

$

21

 

Changes related to 2020 workforce reductions

 

 

11

 

 

 

 

 

 

11

 

Changes related to prior years' restructurings

 

 

(14

)

 

 

 

 

 

(14

)

Balance as of September 30, 2020

 

$

17

 

 

$

1

 

 

$

18

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance as of December 31, 2018

 

$

39

 

 

$

3

 

 

$

42

 

Changes related to prior years' restructurings

 

 

(9

)

 

 

(2

)

 

 

(11

)

Balance as of September 30, 2019

 

$

30

 

 

$

1

 

 

$

31

 

 

v3.20.2
Income Taxes
9 Months Ended
Sep. 30, 2020
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 September 30,

 

 

Nine Months Ended September 30,

 

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Earnings (loss) from continuing operations before income taxes

 

$

(193

)

 

$

190

 

 

$

(2,980

)

 

$

(88

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current income tax expense (benefit)

 

$

(90

)

 

$

2

 

 

$

(199

)

 

$

1

 

Deferred income tax expense (benefit)

 

 

 

 

 

52

 

 

 

(311

)

 

 

2

 

Total income tax expense (benefit)

 

$

(90

)

 

$

54

 

 

$

(510

)

 

$

3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. statutory income tax rate

 

 

21

%

 

 

21

%

 

 

21

%

 

 

21

%

State income taxes

 

 

0

%

 

 

6

%

 

 

1

%

 

 

(2

%)

Change in tax legislation

 

 

4

%

 

 

0

%

 

 

3

%

 

 

0

%

Unrecognized tax benefits

 

 

18

%

 

 

0

%

 

 

0

%

 

 

(2

%)

Other

 

 

0

%

 

 

1

%

 

 

(1

%)

 

 

(20

%)

Deferred tax asset valuation allowance

 

 

4

%

 

 

0

%

 

 

(7

%)

 

 

0

%

Effective income tax rate

 

 

47

%

 

 

28

%

 

 

17

%

 

 

(3

%)

 

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.

The Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) became law on March 27, 2020. The CARES Act allows net operating losses generated in taxable years beginning after December 31, 2017 and before January 1, 2021 to be carried back five years to offset taxable income and recoup previously paid taxes. As a result, Devon intends to carry back net operating losses generated in 2019 and 2020 to 2014 and 2015, respectively, and recorded a $105 million income tax benefit through the first nine months of 2020.

On July 28, 2020, the Department of Treasury issued final regulations regarding the provision of the Tax Cuts and Jobs Act that limits the deduction for business interest expense. Prior to the issuance of these final regulations, Devon had reduced its CARES Act income tax benefit by $34 million due to the business interest expense limitation. With the regulatory update, Devon was able to reverse the $34 million in the third quarter of 2020 and recognize the full $105 million of benefit under the CARES Act.

Throughout 2019, Devon maintained a valuation allowance against certain deferred tax assets, including certain tax credits and state net operating losses. Since then, reduced demand from the COVID-19 pandemic has caused an unprecedented downturn in the commodity price environment. As a result, Devon recorded significant impairments during the first quarter of 2020 and is now in a net

deferred tax asset position. Consequently, Devon reassessed its position and recorded a 100% valuation allowance against all net deferred tax assets and has maintained a full valuation allowance position throughout 2020.

 

In the table above, the “other” effect is composed of permanent differences primarily related to stock compensation for which dollar amounts do not increase or decrease in relation to the change in pre-tax earnings. Such items have an insignificant impact on Devon’s effective income tax rate unless pre-tax earnings or losses are relatively small in amount. In total, “other” represents $18 million of income tax expense in the first nine months of 2019.

 

v3.20.2
Net Earnings (Loss) Per Share from Continuing Operations
9 Months Ended
Sep. 30, 2020
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 September 30,

 

 

Nine Months Ended September 30,

 

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Net earnings (loss) from continuing operations:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net earnings (loss) from continuing operations

 

$

(105

)

 

$

136

 

 

$

(2,475

)

 

$

(91

)

Attributable to participating securities

 

 

(2

)

 

 

(1

)

 

 

(3

)

 

 

(1

)

Basic and diluted earnings (loss) from continuing operations

 

$

(107

)

 

$

135

 

 

$

(2,478

)

 

$

(92

)

Common shares:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common shares outstanding - total

 

 

383

 

 

 

397

 

 

 

383

 

 

 

415

 

Attributable to participating securities

 

 

(6

)

 

 

(5

)

 

 

(6

)

 

 

(6

)

Common shares outstanding - basic

 

 

377

 

 

 

392

 

 

 

377

 

 

 

409

 

Dilutive effect of potential common shares issuable

 

 

 

 

 

2

 

 

 

 

 

 

 

Common shares outstanding - diluted

 

 

377

 

 

 

394

 

 

 

377

 

 

 

409

 

Net earnings (loss) per share from continuing operations:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

(0.29

)

 

$

0.34

 

 

$

(6.58

)

 

$

(0.22

)

Diluted

 

$

(0.29

)

 

$

0.34

 

 

$

(6.58

)

 

$

(0.22

)

Antidilutive options (1)

 

 

 

 

 

1

 

 

 

 

 

 

1

 

 

(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.

v3.20.2
Other Comprehensive Earnings (Loss)
9 Months Ended
Sep. 30, 2020
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 (loss) consist of the following:

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Foreign currency translation:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning accumulated foreign currency translation and other

 

$

 

 

$

 

 

$

 

 

$

1,159

 

Change in cumulative translation adjustment

 

 

 

 

 

 

 

 

 

 

 

78

 

Release of Canadian cumulative translation adjustment (1)

 

 

 

 

 

 

 

 

 

 

 

(1,237

)

Ending accumulated foreign currency translation and other

 

 

 

 

 

 

 

 

 

 

 

 

Pension and postretirement benefit plans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning accumulated pension and postretirement benefits

 

 

(117

)

 

 

(117

)

 

 

(119

)

 

 

(132

)

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

 

 

1

 

 

 

1

 

 

 

4

 

 

 

5

 

Curtailment and settlement of pension benefits(3)

 

 

 

 

 

 

 

 

 

 

 

15

 

Income tax expense

 

 

 

 

 

 

 

 

(1

)

 

 

(4

)

Ending accumulated pension and postretirement benefits

 

 

(116

)

 

 

(116

)

 

 

(116

)

 

 

(116

)

Accumulated other comprehensive loss, net of tax

 

$

(116

)

 

$

(116

)

 

$

(116

)

 

$

(116

)

 

 

(1)

In conjunction with the sale of substantially all of its oil and gas assets and operations in Canada, Devon released the cumulative translation adjustment as part of its gain on the disposition of its Canadian business. See Note 17 for additional details.

 

(2)

Recognition of net actuarial loss and prior service cost are included in the computation of net periodic benefit cost, which is a component of other expenses in the accompanying consolidated statements of comprehensive earnings.

 

(3)

These accumulated other comprehensive earnings are included within components of other expenses and restructuring and transaction costs in the accompanying consolidated comprehensive statements of earnings.

v3.20.2
Supplemental Information To Statements Of Cash Flows
9 Months Ended
Sep. 30, 2020
Supplemental Cash Flow Elements [Abstract]  
Supplemental Information To Statements Of Cash Flows

10.

Supplemental Information to Statements of Cash Flows

 

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Changes in assets and liabilities, net:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accounts receivable

 

$

21

 

 

$

55

 

 

$

339

 

 

$

65

 

Income tax receivable

 

 

 

 

 

(12

)

 

 

(112

)

 

 

(13

)

Other current assets

 

 

18

 

 

 

15

 

 

 

10

 

 

 

18

 

Other long-term assets

 

 

(9

)

 

 

14

 

 

 

(33

)

 

 

(1

)

Accounts payable

 

 

11

 

 

 

23

 

 

 

9

 

 

 

(14

)

Revenues and royalties payable

 

 

89

 

 

 

(72

)

 

 

(169

)

 

 

(88

)

Other current liabilities

 

 

15

 

 

 

12

 

 

 

(82

)

 

 

(77

)

Other long-term liabilities

 

 

(87

)

 

 

1

 

 

 

(59

)

 

 

10

 

Total

 

$

58

 

 

$

36

 

 

$

(97

)

 

$

(100

)

Supplementary cash flow data - total operations:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest paid

 

$

64

 

 

$

81

 

 

$

194

 

 

$

242

 

Income taxes paid (received)

 

$

(2

)

 

$

 

 

$

170

 

 

$

16

 

 

As of September 30, 2020 and December 31, 2019, Devon had approximately $130 million and $250 million, respectively, of accrued capital expenditures included in “Total property and equipment, net” and “Accounts payable” on the consolidated balance sheets.

v3.20.2
Accounts Receivable
9 Months Ended
Sep. 30, 2020
Accounts Receivable Net [Abstract]  
Accounts Receivable

11.

Accounts Receivable

Components of accounts receivable include the following:

 

 

 

September 30, 2020

 

 

December 31, 2019

 

Oil, gas and NGL sales

 

$

276

 

 

$

452

 

Joint interest billings

 

 

58

 

 

 

168

 

Marketing and midstream revenues

 

 

147

 

 

 

207

 

Other

 

 

23

 

 

 

13

 

Gross accounts receivable

 

 

504

 

 

 

840

 

Allowance for doubtful accounts

 

 

(11

)

 

 

(8

)

Net accounts receivable

 

$

493

 

 

$

832

 

 

v3.20.2
Property, Plant and Equipment
9 Months Ended
Sep. 30, 2020
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.

 

 

 

September 30, 2020

 

 

December 31, 2019

 

Property and equipment:

 

 

 

 

 

 

 

 

Proved

 

$

28,407

 

 

$

27,668

 

Unproved and properties under development

 

 

432

 

 

 

583

 

Total oil and gas

 

 

28,839

 

 

 

28,251

 

Less accumulated DD&A

 

 

(24,286

)

 

 

(20,693

)

Oil and gas property and equipment, net

 

 

4,553

 

 

 

7,558

 

Other property and equipment

 

 

1,746

 

 

 

1,725

 

Less accumulated DD&A

 

 

(743

)

 

 

(690

)

Other property and equipment, net (1)

 

 

1,003

 

 

 

1,035

 

Property and equipment, net

 

$

5,556

 

 

$

8,593

 

 

 

(1)

$100 million and $80 million related to CDM in 2020 and 2019, respectively.

 

During the first nine months of 2020, Devon recognized asset impairments of $2.7 billion primarily related to proved oil and gas assets and $149 million of unproved impairments, which significantly reduced the carrying value of its property and equipment, net. See Note 5 for additional details.

v3.20.2
Debt And Related Expenses
9 Months Ended
Sep. 30, 2020
Debt Disclosure [Abstract]  
Debt and Related Expenses

 

13.

 

        See below for a summary of debt instruments and balances. The notes and debentures are senior, unsecured obligations of Devon.

 

 

 

September 30, 2020

 

 

December 31, 2019

 

5.85% due December 15, 2025

 

$

485

 

 

$

485

 

7.50% due September 15, 2027

 

 

73

 

 

 

73

 

7.875% due September 30, 2031

 

 

675

 

 

 

675

 

7.95% due April 15, 2032

 

 

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

)

 

 

(20

)

Debt issuance costs

 

 

(32

)

 

 

(35

)

Total long-term debt

 

$

4,297

 

 

$

4,294

 

Devon has a $3.0 billion Senior Credit Facility. As of September 30, 2020, Devon had no outstanding borrowings under the Senior Credit Facility and had issued $2 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 September 30, 2020, Devon was in compliance with this covenant with a debt-to-capitalization ratio of 19.5%.

Retirement of Senior Notes

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

Net Financing Costs

The following schedule includes the components of net financing costs.

 

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Interest based on debt outstanding

 

$

65

 

 

$

65

 

 

$

195

 

 

$

195

 

Interest income

 

 

(5

)

 

 

(10

)

 

 

(12

)

 

 

(28

)

Other

 

 

6

 

 

 

5

 

 

 

17

 

 

 

19

 

Total net financing costs

 

$

66

 

 

$

60

 

 

$

200

 

 

$

186

 

 

v3.20.2
Leases
9 Months Ended
Sep. 30, 2020
Leases [Abstract]  
Leases

14.Leases

 

The following table presents Devon’s right-of-use assets and lease liabilities as of September 30, 2020 and December 31, 2019.

 

 

 

September 30, 2020

 

 

December 31, 2019

 

 

 

Finance

 

 

Operating

 

 

Total

 

 

Finance

 

 

Operating

 

 

Total

 

Right-of-use assets

 

$

222

 

 

$

4

 

 

$

226

 

 

$

229

 

 

$

14

 

 

$

243

 

Lease liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current lease liabilities (1)

 

$

7

 

 

$

1

 

 

$

8

 

 

$

7

 

 

$

10

 

 

$

17

 

Long-term lease liabilities

 

 

243

 

 

 

2

 

 

 

245

 

 

 

240

 

 

 

4

 

 

 

244

 

Total lease liabilities

 

$

250

 

 

$

3

 

 

$

253

 

 

$

247

 

 

$

14

 

 

$

261

 

 

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

 

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.

 

v3.20.2
Asset Retirement Obligations
9 Months Ended
Sep. 30, 2020
Asset Retirement Obligation Disclosure [Abstract]  
Asset Retirement Obligations

15.

Asset Retirement Obligations

 

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

 

 

Nine Months Ended September 30,

 

 

 

2020

 

 

2019

 

Asset retirement obligations as of beginning of period

 

$

398

 

 

$

484

 

Liabilities incurred

 

 

15

 

 

 

14

 

Liabilities settled and divested

 

 

(24

)

 

 

(50

)

Revision of estimated obligation

 

 

4

 

 

 

(62

)

Accretion expense on discounted obligation

 

 

15

 

 

 

16

 

Asset retirement obligations as of end of period

 

 

408

 

 

 

402

 

Less current portion

 

 

10

 

 

 

17

 

Asset retirement obligations, long-term

 

$

398

 

 

$

385

 

 

During the first nine months of 2019, Devon reduced its asset retirement obligations by $62 million, primarily due to changes in the future cost estimates and retirement dates for its oil and gas assets. Additionally, during the first nine months of 2019, Devon reduced its asset retirement obligations by $34 million as a result of the non-core asset divestitures. For additional information, see Note 2.

v3.20.2
Stockholders' Equity
9 Months Ended
Sep. 30, 2020
Stockholders Equity Note [Abstract]  
Stockholders' Equity

16.

Stockholders’ Equity

Share Repurchase Programs

In March 2018, Devon announced a $1.0 billion share repurchase program. In June 2018, Devon announced the expansion of this program to $4.0 billion. In February 2019, Devon announced a further expansion to $5.0 billion with a December 31, 2019 expiration date. In December 2019, Devon announced a new $1.0 billion share repurchase program with a December 31, 2020 expiration date.

Under the new program, $800 million of the $1.0 billion authorization was conditioned upon the closing of the Barnett Shale divestiture for cash proceeds of at least $725 million. Since the Company received proceeds less than that amount in connection with the Barnett divestiture, we do not expect to complete repurchases in excess of $200 million in the aggregate under the existing repurchase program. Moreover, Devon has temporarily suspended its share repurchase program.

The table below provides information regarding purchases of Devon’s common stock that were made under the respective share repurchase programs (shares in thousands).

 

 

 

Total Number of

Shares Purchased

 

 

Dollar Value of

Shares Purchased

 

 

Average Price Paid

per Share

 

$5.0 Billion Plan

 

 

 

 

 

 

 

 

 

 

 

 

Full year 2018

 

 

78,149

 

 

$

2,978

 

 

$

38.11

 

First quarter 2019

 

 

36,141

 

 

 

1,024

 

 

 

28.33

 

Second quarter 2019

 

 

5,911

 

 

 

159

 

 

 

27.01

 

Third quarter 2019

 

 

22,137

 

 

 

550

 

 

 

24.80

 

Fourth quarter 2019

 

 

4,436

 

 

 

94

 

 

 

21.32

 

Total inception-to-date

 

 

146,774

 

 

$

4,805

 

 

$

32.74

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$1.0 Billion Plan

 

 

 

 

 

 

 

 

 

 

 

 

First quarter 2020

 

 

2,243

 

 

$

38

 

 

$

16.85

 

Total inception-to-date

 

 

2,243

 

 

$

38

 

 

$

16.85

 

 

Dividends

 

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

 

 

Amounts

 

 

Rate Per Share

 

Quarter Ended 2020:

 

 

 

 

 

 

 

First quarter

$

34

 

 

$

0.09

 

Second quarter

 

42

 

 

$

0.11

 

Third quarter

 

43

 

 

$

0.11

 

Total year-to-date

$

119

 

 

 

 

 

Quarter Ended 2019:

 

 

 

 

 

 

 

First quarter

$

34

 

 

$

0.08

 

Second quarter

 

37

 

 

$

0.09

 

Third quarter

 

35

 

 

$

0.09

 

Total year-to-date

$

106

 

 

 

 

 

Devon raised its quarterly dividend by 22%, to $0.11 per share, beginning in the second quarter of 2020. In the second quarter of 2019, Devon increased the quarterly dividend rate from $0.08 to $0.09 per share.

On August 4, 2020, Devon’s Board of Directors approved a $0.26 per share (approximately $100 million total) special dividend which was paid on October 1, 2020 to holders of record as of August 14, 2020. As of September 30, 2020, the accrued dividends payable is included as a component of accounts payable within the accompanying consolidated balance sheets.

v3.20.2
Discontinued Operations and Assets Held for Sale
9 Months Ended
Sep. 30, 2020
Discontinued Operations And Disposal Groups [Abstract]  
Discontinued Operations and Assets Held for Sale

17.

Discontinued Operations and Assets Held For Sale

 

Barnett Shale

 

On October 1, 2020, Devon completed the sale of its Barnett Shale assets to BKV for proceeds, net of purchase price adjustments, of $490 million, including a $170 million deposit previously received in April 2020. Additionally, the agreement provides for contingent earnout payments to Devon of up to $260 million based upon future commodity prices, with upside participation beginning at a $2.75 Henry Hub natural gas price or a $50 WTI oil price. The contingent payment period commences on January 1, 2021 and has a term of four years.

 

In connection with the sale of its Barnett Shale assets, approximately $88 million of the U.S. reporting unit goodwill was allocated to the Barnett Shale assets. Additionally, Devon ceased depreciation for all property, plant and equipment classified as assets held for sale on the date the sales agreement was approved by the Board of Directors. Devon also recognized a $748 million asset impairment in the fourth quarter of 2019 related to these assets, primarily due to the difference between the net carrying value and the purchase price, net of estimated customary purchase price adjustments. Additionally, Devon recognized incremental asset impairments of $179 million and $3 million during the first quarter and third quarter of 2020, respectively. The valuation of the future contingent earnout payments included in the September 30, 2020 Barnett Shale impairment computation was $60 million. The value was derived utilizing a Monte Carlo valuation model and qualifies as a level 3 fair value measurement.

 

As of September 30, 2020, Devon has classified as cash restricted for discontinued operations on the consolidated balance sheets approximately $20 million of cash for obligations associated with the abandonment of certain gas processing contracts related to divestitures of other Barnett Shale assets that occurred in 2018. Cash payments for these charges total approximately $2 million per quarter.

 

Royalty Matter

 

Devon is a party to a class action pending in the United States District Court for the Northern District of Texas styled Henry Seeligson et al. v. Devon Energy Production Company, L.P., Case No. 3:16-cv-00082-K. The Seeligson class has been certified and Devon’s request to appeal the class certification was recently denied. The Seeligson class is composed of royalty interest owners under approximately 4,500 oil and gas leases covering properties in the Barnett Shale field in northern Texas. The Seeligson class alleges that Devon breached an implied duty to market by selling natural gas produced from the subject oil and gas leases to a Devon affiliate and failing to obtain the best price reasonably available for the gas. The Seeligson class alleges that this breach resulted in Devon underpaying royalties to the class during the period from January 1, 2008 through March 1, 2014. Although Devon denies the allegations asserted in the Seeligson case, in order to avoid the uncertainty of litigation, Devon recently reached an agreement in principle to settle the class claims. Although this settlement is contingent upon the negotiation and execution of a final definitive settlement agreement and subject to approval by the District Court, Devon recorded a $28 million expense for this matter in its third quarter 2020 discontinued operations. The amount is included within discontinued operations in the consolidated statements of comprehensive earnings and consolidated balance sheets.

 

Canada

 

In the second quarter of 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 $223 million ($425 million net of tax, primarily due to a significant deferred tax benefit) in 2019. Current (cash) income and withholding taxes associated with the Canadian business were approximately $175 million and were paid in the first half of 2020. The disposition of substantially all of Devon’s Canadian oil and gas 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.

 

During the third quarter of 2019, Devon utilized a portion of the sales proceeds to early retire $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 recognized a charge on the early retirement of these notes consisting of $52 million in cash retirement costs and $6 million of noncash charges.

 

As of September 30, 2020, Devon has classified as cash restricted for discontinued operations on the consolidated balance sheets approximately $170 million of cash for obligations retained related to the Canadian business. The remaining obligations consist of a firm transportation agreement and office leases. Cash payments for these charges total approximately $8 million per quarter.

 

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

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

 

 

Barnett Shale

 

 

Canada

 

 

Total

 

 

Barnett Shale

 

 

Canada

 

 

Total

 

2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Oil, gas and NGL sales

 

$

94

 

 

$

 

 

$

94

 

 

$

263

 

 

$

 

 

$

263

 

Total revenues

 

 

94

 

 

 

 

 

 

94

 

 

 

263

 

 

 

 

 

 

263

 

Production expenses

 

 

66

 

 

 

 

 

 

66

 

 

 

214

 

 

 

 

 

 

214

 

Asset impairments

 

 

3

 

 

 

 

 

 

3

 

 

 

182

 

 

 

 

 

 

182

 

Asset dispositions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(2

)

 

 

(2

)

General and administrative expenses

 

 

 

 

 

2

 

 

 

2

 

 

 

 

 

 

3

 

 

 

3

 

Financing costs, net

 

 

 

 

 

(1

)

 

 

(1

)

 

 

 

 

 

(3

)

 

 

(3

)

Other expenses

 

 

27

 

 

 

(1

)

 

 

26

 

 

 

16

 

 

 

3

 

 

 

19

 

Total expenses

 

 

96

 

 

 

 

 

 

96

 

 

 

412

 

 

 

1

 

 

 

413

 

Earnings (loss) from discontinued operations before income taxes

 

 

(2

)

 

 

 

 

 

(2

)

 

 

(149

)

 

 

(1

)

 

 

(150

)

Income tax benefit

 

 

 

 

 

(15

)

 

 

(15

)

 

 

(32

)

 

 

(15

)

 

 

(47

)

Net earnings (loss) from discontinued operations, net of tax

 

$

(2

)

 

$

15

 

 

$

13

 

 

$

(117

)

 

$

14

 

 

$

(103

)

2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Oil, gas and NGL sales

 

$

101

 

 

$

11

 

 

$

112

 

 

$

365

 

 

$

741

 

 

$

1,106

 

Oil, gas and NGL derivatives

 

 

 

 

 

(18

)

 

 

(18

)

 

 

 

 

 

(113

)

 

 

(113

)

Marketing and midstream revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

38

 

 

 

38

 

Total revenues

 

 

101

 

 

 

(7

)

 

 

94

 

 

 

365

 

 

 

666

 

 

 

1,031

 

Production expenses

 

 

75

 

 

 

(1

)

 

 

74

 

 

 

232

 

 

 

293

 

 

 

525

 

Exploration expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

13

 

 

 

13

 

Marketing and midstream expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

18

 

 

 

18

 

Depreciation, depletion and amortization

 

 

20

 

 

 

 

 

 

20

 

 

 

60

 

 

 

128

 

 

 

188

 

Asset impairments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

37

 

 

 

37

 

Asset dispositions

 

 

(1

)

 

 

(34

)

 

 

(35

)

 

 

1

 

 

 

(223

)

 

 

(222

)

General and administrative expenses

 

 

 

 

 

2

 

 

 

2

 

 

 

 

 

 

33

 

 

 

33

 

Financing costs, net

 

 

 

 

 

59

 

 

 

59

 

 

 

 

 

 

85

 

 

 

85

 

Restructuring and transaction costs

 

 

 

 

 

5

 

 

 

5

 

 

 

 

 

 

244

 

 

 

244

 

Other expenses

 

 

3

 

 

 

5

 

 

 

8

 

 

 

9

 

 

 

8

 

 

 

17

 

Total expenses

 

 

97

 

 

 

36

 

 

 

133

 

 

 

302

 

 

 

636

 

 

 

938

 

Earnings from discontinued operations before income taxes

 

 

4

 

 

 

(43

)

 

 

(39

)

 

 

63

 

 

 

30

 

 

 

93

 

Income tax expense (benefit)

 

 

1

 

 

 

(13

)

 

 

(12

)

 

 

13

 

 

 

(298

)

 

 

(285

)

Net earnings from discontinued operations, net of tax

 

$

3

 

 

$

(30

)

 

$

(27

)

 

$

50

 

 

$

328

 

 

$

378

 

 

 


The following table presents the carrying amounts of the assets and liabilities associated with discontinued operations on the consolidated balance sheets.

 

 

As of September 30, 2020

 

 

As of December 31, 2019

 

 

 

Barnett Shale

 

 

Canada

 

 

Total

 

 

Barnett Shale

 

 

Canada

 

 

Total

 

Cash restricted for discontinued operations

 

$

20

 

 

$

170

 

 

$

190

 

 

$

25

 

 

$

355

 

 

$

380

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accounts receivable

 

$

33

 

 

$

 

 

$

33

 

 

$

38

 

 

$

1

 

 

$

39

 

Other current assets

 

 

6

 

 

 

 

 

 

6

 

 

 

5

 

 

 

2

 

 

 

7

 

Oil and gas property and equipment, based on successful efforts accounting, net

 

 

590

 

 

 

 

 

 

590

 

 

 

751

 

 

 

 

 

 

751

 

Other property and equipment, net

 

 

11

 

 

 

 

 

 

11

 

 

 

11

 

 

 

 

 

 

11

 

Goodwill

 

 

88

 

 

 

 

 

 

88

 

 

 

88

 

 

 

 

 

 

88

 

Other long-term assets

 

 

 

 

 

81

 

 

 

81

 

 

 

 

 

 

81

 

 

 

81

 

Total assets associated with discontinued operations

 

$

728

 

 

$

81

 

 

$

809

 

 

$

893

 

 

$

84

 

 

$

977

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accounts payable

 

$

17

 

 

$

3

 

 

$

20

 

 

$

15

 

 

$

4

 

 

$

19

 

Revenues and royalties payable

 

 

42

 

 

 

3

 

 

 

45

 

 

 

44

 

 

 

3

 

 

 

47

 

Other current liabilities

 

 

215

 

 

 

38

 

 

 

253

 

 

 

19

 

 

 

233

 

 

 

252

 

Asset retirement obligations

 

 

145

 

 

 

 

 

 

145

 

 

 

141

 

 

 

 

 

 

141

 

Other long-term liabilities

 

 

14

 

 

 

143

 

 

 

157

 

 

 

16

 

 

 

169

 

 

 

185

 

Total liabilities associated with discontinued operations

 

$

433

 

 

$

187

 

 

$

620

 

 

$

235

 

 

$

409

 

 

$

644

 

 

v3.20.2
Commitments And Contingencies
9 Months Ended
Sep. 30, 2020
Commitments And Contingencies Disclosure [Abstract]  
Commitments And Contingencies

18.

Commitments and Contingencies

Devon is party to various legal actions arising in the normal course of business. Matters that are probable of an 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 except those detailed within Note 17.

Environmental and Other 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 numerous 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’ claims against Devon relate primarily to the operations of several of Devon’s corporate predecessors. 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.

Various municipalities and other governmental and private parties in California and the State of Delaware have filed legal proceedings against certain oil and gas companies, including Devon, seeking relief to abate alleged impacts of climate change. These proceedings include far-reaching claims for monetary damages and injunctive relief. Although Devon cannot predict the ultimate outcome of these matters, Devon believes these claims to be baseless and intends to vigorously defend against the proceedings.

v3.20.2
Fair Value Measurements
9 Months Ended
Sep. 30, 2020
Fair Value Disclosures [Abstract]  
Fair Value Measurements

 

19.

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 September 30, 2020 and December 31, 2019, as applicable. Therefore, such financial assets and liabilities are not presented in the following table. Additionally, information regarding the fair values of oil and gas assets is provided in Note 5.

 

 

 

 

 

 

 

 

 

 

 

Fair Value Measurements Using:

 

 

 

Carrying

 

 

Total Fair

 

 

Level 1

 

 

Level 2

 

 

 

Amount

 

 

Value

 

 

Inputs

 

 

Inputs

 

September 30, 2020 assets (liabilities):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash equivalents

 

$

1,171

 

 

$

1,171

 

 

$

1,171

 

 

$

 

Commodity derivatives

 

$

28

 

 

$

28

 

 

$

 

 

$

28

 

Commodity derivatives

 

$

(80

)

 

$

(80

)

 

$

 

 

$

(80

)

Debt

 

$

(4,297

)

 

$

(4,635

)

 

$

 

 

$

(4,635

)

December 31, 2019 assets (liabilities):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash equivalents

 

$

702

 

 

$

702

 

 

$

702

 

 

$

 

Commodity derivatives

 

$

50

 

 

$

50

 

 

$

 

 

$

50

 

Commodity derivatives

 

$

(31

)

 

$

(31

)

 

$

 

 

$

(31

)

Debt

 

$

(4,294

)

 

$

(5,376

)

 

$

 

 

$

(5,376

)

 

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

 

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 consistently trade actively in an established market. The fair values of its debt are estimated based on rates available for debt with similar terms and maturity when active trading is not available.

 

v3.20.2
Summary Of Significant Accounting Policies (Policies)
9 Months Ended
Sep. 30, 2020
Accounting Policies [Abstract]  
Principles of Consolidation

During the fourth quarter of 2019, Devon entered into an agreement to form Cotton Draw Midstream, L.L.C. (“CDM”), a joint-venture entity in the Delaware Basin with an affiliate of QL Capital Partners, LP (“QLCP”). Devon holds a controlling interest in CDM and the portions of CDM’s net earnings and equity not attributable to Devon’s controlling interest are shown separately as noncontrolling interests in the accompanying consolidated statements of comprehensive earnings and consolidated balance sheets. CDM is considered a VIE to Devon. The assets of CDM cannot be used by Devon for general corporate purposes and are included in and disclosed parenthetically on Devon's consolidated balance sheets. The carrying amount of liabilities related to CDM for which the creditors do not have recourse to Devon's assets are also included in, and disclosed parenthetically, on Devon's consolidated balance sheets if material.

Recent Accounting Standards

 


Recently Adopted Accounting Standards

 

In 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses. This ASU changes the impairment model for trade receivables, held-to-maturity debt securities, net investments in leases, loans and other financial assets measured at amortized cost from the current “incurred loss” model to a new forward-looking “expected loss” model. Devon adopted this ASU in the first quarter of 2020 using the modified retrospective approach. Devon assesses credit risk by class of account type which includes cash equivalents and oil and gas, marketing and midstream, joint interest and other accounts receivable. These classes are then further evaluated using a probability weighted scenario assessment based on historical losses and a probability of future default. This evaluation is supported by an assessment of risk factors such as the age of receivable, current macro-economic conditions, credit rating of the counterparty and our historical loss rate. This adoption did not have a material impact on Devon’s 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 an 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.

v3.20.2
Summary Of Significant Accounting Policies (Tables)
9 Months Ended
Sep. 30, 2020
Accounting Policies [Abstract]  
Schedule of Revenue from Contracts with Customers Disaggregated Based on Type of Good or Service

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

 

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Oil

 

$

504

 

 

$

751

 

 

$

1,462

 

 

$

2,160

 

Gas

 

 

79

 

 

 

80

 

 

 

221

 

 

 

291

 

NGL

 

 

95

 

 

 

88

 

 

 

226

 

 

 

323

 

Oil, gas and NGL sales

 

 

678

 

 

 

919

 

 

 

1,909

 

 

 

2,774

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Oil

 

 

233

 

 

 

407

 

 

 

702

 

 

 

1,157

 

Gas

 

 

97

 

 

 

140

 

 

 

268

 

 

 

530

 

NGL

 

 

143

 

 

 

151

 

 

 

390

 

 

 

506

 

Total marketing revenues

 

 

473

 

 

 

698

 

 

 

1,360

 

 

 

2,193

 

Midstream revenues

 

 

3

 

 

 

2

 

 

 

7

 

 

 

2

 

Marketing and midstream revenues

 

 

476

 

 

 

700

 

 

 

1,367

 

 

 

2,195

 

Total revenues from contracts with customers

 

$

1,154

 

 

$

1,619

 

 

$

3,276

 

 

$

4,969

 

v3.20.2
Derivative Financial Instruments (Tables)
9 Months Ended
Sep. 30, 2020
Derivative [Line Items]  
Schedule Of Derivative Financial Instruments Included In The Consolidated Balance Sheets

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

 

 

September 30, 2020

 

 

December 31, 2019

 

Commodity derivative assets:

 

 

 

 

 

 

 

 

Other current assets

 

$

27

 

 

$

49

 

Other long-term assets

 

 

1

 

 

 

1

 

Total derivative assets

 

$

28

 

 

$

50

 

Commodity derivative liabilities:

 

 

 

 

 

 

 

 

Other current liabilities

 

$

70

 

 

$

30

 

Other long-term liabilities

 

 

10

 

 

 

1

 

Total derivative liabilities

 

$

80

 

 

$

31

 

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)

 

Q4 2020

 

 

88,000

 

 

$

36.28

 

 

 

39,500

 

 

$

50.93

 

 

$

60.93

 

Q1-Q4 2021

 

 

23,810

 

 

$

35.79

 

 

 

19,367

 

 

$

40.66

 

 

$

50.66

 

Q1 2022

 

 

500

 

 

$

45.00

 

 

 

6,750

 

 

$

37.93

 

 

$

47.93

 

 

 

 

 

Oil Basis Swaps

 

Period

 

Index

 

Volume

(Bbls/d)

 

 

Weighted Average

Differential to WTI

($/Bbl)

 

Q4 2020

 

Argus MEH

 

 

50,000

 

 

$

0.47

 

Q4 2020

 

Midland Sweet

 

 

32,000

 

 

$

(1.23

)

Q4 2020

 

NYMEX Roll

 

 

54,000

 

 

$

0.38

 

Q1-Q4 2021

 

Midland Sweet

 

 

7,000

 

 

$

1.27

 

 

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)

 

Q4 2020

 

 

69,000

 

 

$

2.69

 

 

 

141,000

 

 

$

2.35

 

 

$

2.85

 

Q1-Q4 2021

 

 

32,699

 

 

$

2.76

 

 

 

142,055

 

 

$

2.38

 

 

$

2.88

 

Q1 2022

 

 

14,000

 

 

$

2.85

 

 

 

36,000

 

 

$

2.60

 

 

$

3.10

 

 

 

Natural Gas Basis Swaps

 

Period

 

Index

 

Volume

(MMBtu/d)

 

 

Weighted Average

Differential to

Henry Hub

($/MMBtu)

 

Q4 2020

 

Panhandle Eastern Pipe Line

 

 

30,000

 

 

$

(0.47

)

Q4 2020

 

El Paso Natural Gas

 

 

65,000

 

 

$

(0.78

)

Q4 2020

 

Houston Ship Channel

 

 

30,000

 

 

$

(0.02

)

Q1-Q4 2021

 

El Paso Natural Gas

 

 

35,000

 

 

$

(0.92

)

 

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

 

 

 

 

 

Price Swaps

 

Period

 

Product

 

Volume (Bbls/d)

 

 

Weighted Average Price ($/Bbl)

 

Q4 2020

 

Natural Gasoline

 

 

1,000

 

 

$

44.84

 

Q4 2020

 

Normal Butane

 

 

1,500

 

 

$

23.56

 

Q4 2020

 

Propane

 

 

4,500

 

 

$

25.18

 

v3.20.2
Share-Based Compensation (Tables)
9 Months Ended
Sep. 30, 2020
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]  
Schedule Of Share-Based Compensation Expense Included In The Consolidated Statements Of Comprehensive Earnings

 

 

 

Nine Months Ended September 30,

 

 

 

2020

 

 

2019

 

G&A

 

$

58

 

 

$

64

 

Exploration expenses

 

 

1

 

 

 

1

 

Restructuring and transaction costs

 

 

11

 

 

 

27

 

Total

 

$

70

 

 

$

92

 

Related income tax benefit

 

$

 

 

$

13

 

 

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

 

 

 

 

 

 

Performance-Based

 

 

Performance

 

 

 

Restricted Stock Awards

 

 

Restricted Stock Awards

 

 

Share Units

 

 

 

Awards

 

 

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 12/31/19

 

 

4,984

 

 

$

29.65

 

 

 

153

 

 

$

33.88

 

 

 

2,155

 

 

 

 

 

$

40.35

 

Granted

 

 

3,056

 

 

$

21.90

 

 

 

 

 

$

 

 

 

688

 

 

 

 

 

$

27.89

 

Vested

 

 

(2,093

)

 

$

29.11

 

 

 

(109

)

 

$

29.51

 

 

 

(455

)

 

 

 

 

$

52.56

 

Forfeited

 

 

(294

)

 

$

24.44

 

 

 

 

 

$

 

 

 

(385

)

 

 

 

 

$

47.68

 

Unvested at 9/30/20

 

 

5,653

 

 

$

25.93

 

 

 

44

 

 

$

44.70

 

 

 

2,003

 

 

(1

)

 

$

31.89

 

 

(1)

A maximum of 4.0 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

 

 

 

2020

 

Grant-date fair value

 

$

27.89

 

Risk-free interest rate

 

1.36%

 

Volatility factor

 

38.4%

 

Contractual term (years)

 

2.89

 

 

Summary of Unrecognized Compensation Cost And Weighted Average Period For Recognition

 

 

 

 

 

 

 

Performance-Based

 

 

 

 

 

 

 

Restricted Stock

 

 

Restricted Stock

 

 

Performance

 

 

 

Awards

 

 

Awards

 

 

Share Units

 

Unrecognized compensation cost

 

$

81

 

 

$

 

 

$

15

 

Weighted average period for recognition (years)

 

 

2.6

 

 

 

0.7

 

 

 

1.7

 

v3.20.2
Asset Impairments (Tables)
9 Months Ended
Sep. 30, 2020
Asset Impairment Charges [Abstract]  
Summary of Asset Impairments

The following table presents a summary of Devon’s asset impairments. Unproved impairments shown below are included in exploration expenses in the consolidated statements of comprehensive earnings.

 

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Proved oil and gas assets

 

$

 

 

$

 

 

$

2,664

 

 

$

 

Other assets

 

 

 

 

 

 

 

 

2

 

 

 

 

Total asset impairments

 

$

 

 

$

 

 

$

2,666

 

 

$

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unproved impairments

 

$

36

 

 

$

13

 

 

$

149

 

 

$

15

 

v3.20.2
Restructuring and Transaction Costs (Tables)
9 Months Ended
Sep. 30, 2020
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

 

 

 

(Millions)

 

Balance as of December 31, 2019

 

$

20

 

 

$

1

 

 

$

21

 

Changes related to 2020 workforce reductions

 

 

11

 

 

 

 

 

 

11

 

Changes related to prior years' restructurings

 

 

(14

)

 

 

 

 

 

(14

)

Balance as of September 30, 2020

 

$

17

 

 

$

1

 

 

$

18

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance as of December 31, 2018

 

$

39

 

 

$

3

 

 

$

42

 

Changes related to prior years' restructurings

 

 

(9

)

 

 

(2

)

 

 

(11

)

Balance as of September 30, 2019

 

$

30

 

 

$

1

 

 

$

31

 

v3.20.2
Income Taxes (Tables)
9 Months Ended
Sep. 30, 2020
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 September 30,

 

 

Nine Months Ended September 30,

 

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Earnings (loss) from continuing operations before income taxes

 

$

(193

)

 

$

190

 

 

$

(2,980

)

 

$

(88

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current income tax expense (benefit)

 

$

(90

)

 

$

2

 

 

$

(199

)

 

$

1

 

Deferred income tax expense (benefit)

 

 

 

 

 

52

 

 

 

(311

)

 

 

2

 

Total income tax expense (benefit)

 

$

(90

)

 

$

54

 

 

$

(510

)

 

$

3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. statutory income tax rate

 

 

21

%

 

 

21

%

 

 

21

%

 

 

21

%

State income taxes

 

 

0

%

 

 

6

%

 

 

1

%

 

 

(2

%)

Change in tax legislation

 

 

4

%

 

 

0

%

 

 

3

%

 

 

0

%

Unrecognized tax benefits

 

 

18

%

 

 

0

%

 

 

0

%

 

 

(2

%)

Other

 

 

0

%

 

 

1

%

 

 

(1

%)

 

 

(20

%)

Deferred tax asset valuation allowance

 

 

4

%

 

 

0

%

 

 

(7

%)

 

 

0

%

Effective income tax rate

 

 

47

%

 

 

28

%

 

 

17

%

 

 

(3

%)

v3.20.2
Net Earnings (Loss) Per Share from Continuing Operations (Tables)
9 Months Ended
Sep. 30, 2020
Earnings Per Share [Abstract]  
Net Earnings (Loss) Per Share Computations from Continuing Operations

 

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Net earnings (loss) from continuing operations:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net earnings (loss) from continuing operations

 

$

(105

)

 

$

136

 

 

$

(2,475

)

 

$

(91

)

Attributable to participating securities

 

 

(2

)

 

 

(1

)

 

 

(3

)

 

 

(1

)

Basic and diluted earnings (loss) from continuing operations

 

$

(107

)

 

$

135

 

 

$

(2,478

)

 

$

(92

)

Common shares:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common shares outstanding - total

 

 

383

 

 

 

397

 

 

 

383

 

 

 

415

 

Attributable to participating securities

 

 

(6

)

 

 

(5

)

 

 

(6

)

 

 

(6

)

Common shares outstanding - basic

 

 

377

 

 

 

392

 

 

 

377

 

 

 

409

 

Dilutive effect of potential common shares issuable

 

 

 

 

 

2

 

 

 

 

 

 

 

Common shares outstanding - diluted

 

 

377

 

 

 

394

 

 

 

377

 

 

 

409

 

Net earnings (loss) per share from continuing operations:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

(0.29

)

 

$

0.34

 

 

$

(6.58

)

 

$

(0.22

)

Diluted

 

$

(0.29

)

 

$

0.34

 

 

$

(6.58

)

 

$

(0.22

)

Antidilutive options (1)

 

 

 

 

 

1

 

 

 

 

 

 

1

 

 

(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.

v3.20.2
Other Comprehensive Earnings (Loss) (Tables)
9 Months Ended
Sep. 30, 2020
Other Comprehensive Income Loss Net Of Tax Period Increase Decrease [Abstract]  
Components Of Other Comprehensive Earnings (Loss)

Components of other comprehensive earnings (loss) consist of the following:

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Foreign currency translation:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning accumulated foreign currency translation and other

 

$

 

 

$

 

 

$

 

 

$

1,159

 

Change in cumulative translation adjustment

 

 

 

 

 

 

 

 

 

 

 

78

 

Release of Canadian cumulative translation adjustment (1)

 

 

 

 

 

 

 

 

 

 

 

(1,237

)

Ending accumulated foreign currency translation and other

 

 

 

 

 

 

 

 

 

 

 

 

Pension and postretirement benefit plans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning accumulated pension and postretirement benefits

 

 

(117

)

 

 

(117

)

 

 

(119

)

 

 

(132

)

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

 

 

1

 

 

 

1

 

 

 

4

 

 

 

5

 

Curtailment and settlement of pension benefits(3)

 

 

 

 

 

 

 

 

 

 

 

15

 

Income tax expense

 

 

 

 

 

 

 

 

(1

)

 

 

(4

)

Ending accumulated pension and postretirement benefits

 

 

(116

)

 

 

(116

)

 

 

(116

)

 

 

(116

)

Accumulated other comprehensive loss, net of tax

 

$

(116

)

 

$

(116

)

 

$

(116

)

 

$

(116

)

 

 

(1)

In conjunction with the sale of substantially all of its oil and gas assets and operations in Canada, Devon released the cumulative translation adjustment as part of its gain on the disposition of its Canadian business. See Note 17 for additional details.

 

(2)

Recognition of net actuarial loss and prior service cost are included in the computation of net periodic benefit cost, which is a component of other expenses in the accompanying consolidated statements of comprehensive earnings.

 

(3)

These accumulated other comprehensive earnings are included within components of other expenses and restructuring and transaction costs in the accompanying consolidated comprehensive statements of earnings.

v3.20.2
Supplemental Information To Statements Of Cash Flows (Tables)
9 Months Ended
Sep. 30, 2020
Supplemental Cash Flow Elements [Abstract]  
Schedule Of Supplemental Information To Statements Of Cash Flows

 

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Changes in assets and liabilities, net:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accounts receivable

 

$

21

 

 

$

55

 

 

$

339

 

 

$

65

 

Income tax receivable

 

 

 

 

 

(12

)

 

 

(112

)

 

 

(13

)

Other current assets

 

 

18

 

 

 

15

 

 

 

10

 

 

 

18

 

Other long-term assets

 

 

(9

)

 

 

14

 

 

 

(33

)

 

 

(1

)

Accounts payable

 

 

11

 

 

 

23

 

 

 

9

 

 

 

(14

)

Revenues and royalties payable

 

 

89

 

 

 

(72

)

 

 

(169

)

 

 

(88

)

Other current liabilities

 

 

15

 

 

 

12

 

 

 

(82

)

 

 

(77

)

Other long-term liabilities

 

 

(87

)

 

 

1

 

 

 

(59

)

 

 

10

 

Total

 

$

58

 

 

$

36

 

 

$

(97

)

 

$

(100

)

Supplementary cash flow data - total operations:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest paid

 

$

64

 

 

$

81

 

 

$

194

 

 

$

242

 

Income taxes paid (received)

 

$

(2

)

 

$

 

 

$

170

 

 

$

16

 

v3.20.2
Accounts Receivable (Tables)
9 Months Ended
Sep. 30, 2020
Accounts Receivable Net [Abstract]  
Schedule Of Components Of Accounts Receivable

Components of accounts receivable include the following:

 

 

 

September 30, 2020

 

 

December 31, 2019

 

Oil, gas and NGL sales

 

$

276

 

 

$

452

 

Joint interest billings

 

 

58

 

 

 

168

 

Marketing and midstream revenues

 

 

147

 

 

 

207

 

Other

 

 

23

 

 

 

13

 

Gross accounts receivable

 

 

504

 

 

 

840

 

Allowance for doubtful accounts

 

 

(11

)

 

 

(8

)

Net accounts receivable

 

$

493

 

 

$

832

 

 

v3.20.2
Property, Plant and Equipment (Tables)
9 Months Ended
Sep. 30, 2020
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.

 

 

 

September 30, 2020

 

 

December 31, 2019

 

Property and equipment:

 

 

 

 

 

 

 

 

Proved

 

$

28,407

 

 

$

27,668

 

Unproved and properties under development

 

 

432

 

 

 

583

 

Total oil and gas

 

 

28,839

 

 

 

28,251

 

Less accumulated DD&A

 

 

(24,286

)

 

 

(20,693

)

Oil and gas property and equipment, net

 

 

4,553

 

 

 

7,558

 

Other property and equipment

 

 

1,746

 

 

 

1,725

 

Less accumulated DD&A

 

 

(743

)

 

 

(690

)

Other property and equipment, net (1)

 

 

1,003

 

 

 

1,035

 

Property and equipment, net

 

$

5,556

 

 

$

8,593

 

 

 

(1)

$100 million and $80 million related to CDM in 2020 and 2019, respectively.

 

v3.20.2
Debt And Related Expenses (Tables)
9 Months Ended
Sep. 30, 2020
Debt Disclosure [Abstract]  
Schedule Of Debt Instruments and Balances

        See below for a summary of debt instruments and balances. The notes and debentures are senior, unsecured obligations of Devon.

 

 

 

September 30, 2020

 

 

December 31, 2019

 

5.85% due December 15, 2025

 

$

485

 

 

$

485

 

7.50% due September 15, 2027

 

 

73

 

 

 

73

 

7.875% due September 30, 2031

 

 

675

 

 

 

675

 

7.95% due April 15, 2032

 

 

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

)

 

 

(20

)

Debt issuance costs

 

 

(32

)

 

 

(35

)

Total long-term debt

 

$

4,297

 

 

$

4,294

 

Schedule Of Net Financing Cost Components

The following schedule includes the components of net financing costs.

 

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Interest based on debt outstanding

 

$

65

 

 

$

65

 

 

$

195

 

 

$

195

 

Interest income

 

 

(5

)

 

 

(10

)

 

 

(12

)

 

 

(28

)

Other

 

 

6

 

 

 

5

 

 

 

17

 

 

 

19

 

Total net financing costs

 

$

66

 

 

$

60

 

 

$

200

 

 

$

186

 

v3.20.2
Leases (Tables)
9 Months Ended
Sep. 30, 2020
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 September 30, 2020 and December 31, 2019.

 

 

 

September 30, 2020

 

 

December 31, 2019

 

 

 

Finance

 

 

Operating

 

 

Total

 

 

Finance

 

 

Operating

 

 

Total

 

Right-of-use assets

 

$

222

 

 

$

4

 

 

$

226

 

 

$

229

 

 

$

14

 

 

$

243

 

Lease liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current lease liabilities (1)

 

$

7

 

 

$

1

 

 

$

8

 

 

$

7

 

 

$

10

 

 

$

17

 

Long-term lease liabilities

 

 

243

 

 

 

2

 

 

 

245

 

 

 

240

 

 

 

4

 

 

 

244

 

Total lease liabilities

 

$

250

 

 

$

3

 

 

$

253

 

 

$

247

 

 

$

14

 

 

$

261

 

 

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

v3.20.2
Asset Retirement Obligations (Tables)
9 Months Ended
Sep. 30, 2020
Asset Retirement Obligation Disclosure [Abstract]  
Summary Of Changes In Asset Retirement Obligations

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

 

 

Nine Months Ended September 30,

 

 

 

2020

 

 

2019

 

Asset retirement obligations as of beginning of period

 

$

398

 

 

$

484

 

Liabilities incurred

 

 

15

 

 

 

14

 

Liabilities settled and divested

 

 

(24

)

 

 

(50

)

Revision of estimated obligation

 

 

4

 

 

 

(62

)

Accretion expense on discounted obligation

 

 

15

 

 

 

16

 

Asset retirement obligations as of end of period

 

 

408

 

 

 

402

 

Less current portion

 

 

10

 

 

 

17

 

Asset retirement obligations, long-term

 

$

398

 

 

$

385

 

 

v3.20.2
Stockholders' Equity (Tables)
9 Months Ended
Sep. 30, 2020
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 under the respective share repurchase programs (shares in thousands).

 

 

 

Total Number of

Shares Purchased

 

 

Dollar Value of

Shares Purchased

 

 

Average Price Paid

per Share

 

$5.0 Billion Plan

 

 

 

 

 

 

 

 

 

 

 

 

Full year 2018

 

 

78,149

 

 

$

2,978

 

 

$

38.11

 

First quarter 2019

 

 

36,141

 

 

 

1,024

 

 

 

28.33

 

Second quarter 2019

 

 

5,911

 

 

 

159

 

 

 

27.01

 

Third quarter 2019

 

 

22,137

 

 

 

550

 

 

 

24.80

 

Fourth quarter 2019

 

 

4,436

 

 

 

94

 

 

 

21.32

 

Total inception-to-date

 

 

146,774

 

 

$

4,805

 

 

$

32.74

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$1.0 Billion Plan

 

 

 

 

 

 

 

 

 

 

 

 

First quarter 2020

 

 

2,243

 

 

$

38

 

 

$

16.85

 

Total inception-to-date

 

 

2,243

 

 

$

38

 

 

$

16.85

 

 

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 2020:

 

 

 

 

 

 

 

First quarter

$

34

 

 

$

0.09

 

Second quarter

 

42

 

 

$

0.11

 

Third quarter

 

43

 

 

$

0.11

 

Total year-to-date

$

119

 

 

 

 

 

Quarter Ended 2019:

 

 

 

 

 

 

 

First quarter

$

34

 

 

$

0.08

 

Second quarter

 

37

 

 

$

0.09

 

Third quarter

 

35

 

 

$

0.09

 

Total year-to-date

$

106

 

 

 

 

 

v3.20.2
Discontinued Operations and Assets Held for Sale (Tables)
9 Months Ended
Sep. 30, 2020
Discontinued Operations And Disposal Groups [Abstract]  
Summary of Amounts Reported as Discontinued Operations in the Consolidated Statements of Comprehensive 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 statements of comprehensive earnings as discontinued operations.

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

 

 

Barnett Shale

 

 

Canada

 

 

Total

 

 

Barnett Shale

 

 

Canada

 

 

Total

 

2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Oil, gas and NGL sales

 

$

94

 

 

$

 

 

$

94

 

 

$

263

 

 

$

 

 

$

263

 

Total revenues

 

 

94

 

 

 

 

 

 

94

 

 

 

263

 

 

 

 

 

 

263

 

Production expenses

 

 

66

 

 

 

 

 

 

66

 

 

 

214

 

 

 

 

 

 

214

 

Asset impairments

 

 

3

 

 

 

 

 

 

3

 

 

 

182

 

 

 

 

 

 

182

 

Asset dispositions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(2

)

 

 

(2

)

General and administrative expenses

 

 

 

 

 

2

 

 

 

2

 

 

 

 

 

 

3

 

 

 

3

 

Financing costs, net

 

 

 

 

 

(1

)

 

 

(1

)

 

 

 

 

 

(3

)

 

 

(3

)

Other expenses

 

 

27

 

 

 

(1

)

 

 

26

 

 

 

16

 

 

 

3

 

 

 

19

 

Total expenses

 

 

96

 

 

 

 

 

 

96

 

 

 

412

 

 

 

1

 

 

 

413

 

Earnings (loss) from discontinued operations before income taxes

 

 

(2

)

 

 

 

 

 

(2

)

 

 

(149

)

 

 

(1

)

 

 

(150

)

Income tax benefit

 

 

 

 

 

(15

)

 

 

(15

)

 

 

(32

)

 

 

(15

)

 

 

(47

)

Net earnings (loss) from discontinued operations, net of tax

 

$

(2

)

 

$

15

 

 

$

13

 

 

$

(117

)

 

$

14

 

 

$

(103

)

2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Oil, gas and NGL sales

 

$

101

 

 

$

11

 

 

$

112

 

 

$

365

 

 

$

741

 

 

$

1,106

 

Oil, gas and NGL derivatives

 

 

 

 

 

(18

)

 

 

(18

)

 

 

 

 

 

(113

)

 

 

(113

)

Marketing and midstream revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

38

 

 

 

38

 

Total revenues

 

 

101

 

 

 

(7

)

 

 

94

 

 

 

365

 

 

 

666

 

 

 

1,031

 

Production expenses

 

 

75

 

 

 

(1

)

 

 

74

 

 

 

232

 

 

 

293

 

 

 

525

 

Exploration expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

13

 

 

 

13

 

Marketing and midstream expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

18

 

 

 

18

 

Depreciation, depletion and amortization

 

 

20

 

 

 

 

 

 

20

 

 

 

60

 

 

 

128

 

 

 

188

 

Asset impairments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

37

 

 

 

37

 

Asset dispositions

 

 

(1

)

 

 

(34

)

 

 

(35

)

 

 

1

 

 

 

(223

)

 

 

(222

)

General and administrative expenses

 

 

 

 

 

2

 

 

 

2

 

 

 

 

 

 

33

 

 

 

33

 

Financing costs, net

 

 

 

 

 

59

 

 

 

59

 

 

 

 

 

 

85

 

 

 

85

 

Restructuring and transaction costs

 

 

 

 

 

5

 

 

 

5

 

 

 

 

 

 

244

 

 

 

244

 

Other expenses

 

 

3

 

 

 

5

 

 

 

8

 

 

 

9

 

 

 

8

 

 

 

17

 

Total expenses

 

 

97

 

 

 

36

 

 

 

133

 

 

 

302

 

 

 

636

 

 

 

938

 

Earnings from discontinued operations before income taxes

 

 

4

 

 

 

(43

)

 

 

(39

)

 

 

63

 

 

 

30

 

 

 

93

 

Income tax expense (benefit)

 

 

1

 

 

 

(13

)

 

 

(12

)

 

 

13

 

 

 

(298

)

 

 

(285

)

Net earnings from discontinued operations, net of tax

 

$

3

 

 

$

(30

)

 

$

(27

)

 

$

50

 

 

$

328

 

 

$

378

 

 

 


The following table presents the carrying amounts of the assets and liabilities associated with discontinued operations on the consolidated balance sheets.

 

 

As of September 30, 2020

 

 

As of December 31, 2019

 

 

 

Barnett Shale

 

 

Canada

 

 

Total

 

 

Barnett Shale

 

 

Canada

 

 

Total

 

Cash restricted for discontinued operations

 

$

20

 

 

$

170

 

 

$

190

 

 

$

25

 

 

$

355

 

 

$

380

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accounts receivable

 

$

33

 

 

$

 

 

$

33

 

 

$

38

 

 

$

1

 

 

$

39

 

Other current assets

 

 

6

 

 

 

 

 

 

6

 

 

 

5

 

 

 

2

 

 

 

7

 

Oil and gas property and equipment, based on successful efforts accounting, net

 

 

590

 

 

 

 

 

 

590

 

 

 

751

 

 

 

 

 

 

751

 

Other property and equipment, net

 

 

11

 

 

 

 

 

 

11

 

 

 

11

 

 

 

 

 

 

11

 

Goodwill

 

 

88

 

 

 

 

 

 

88

 

 

 

88

 

 

 

 

 

 

88

 

Other long-term assets

 

 

 

 

 

81

 

 

 

81

 

 

 

 

 

 

81

 

 

 

81

 

Total assets associated with discontinued operations

 

$

728

 

 

$

81

 

 

$

809

 

 

$

893

 

 

$

84

 

 

$

977

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accounts payable

 

$

17

 

 

$

3

 

 

$

20

 

 

$

15

 

 

$

4

 

 

$

19

 

Revenues and royalties payable

 

 

42

 

 

 

3

 

 

 

45

 

 

 

44

 

 

 

3

 

 

 

47

 

Other current liabilities

 

 

215

 

 

 

38

 

 

 

253

 

 

 

19

 

 

 

233

 

 

 

252

 

Asset retirement obligations

 

 

145

 

 

 

 

 

 

145

 

 

 

141

 

 

 

 

 

 

141

 

Other long-term liabilities

 

 

14

 

 

 

143

 

 

 

157

 

 

 

16

 

 

 

169

 

 

 

185

 

Total liabilities associated with discontinued operations

 

$

433

 

 

$

187

 

 

$

620

 

 

$

235

 

 

$

409

 

 

$

644

 

 

v3.20.2
Fair Value Measurements (Tables)
9 Months Ended
Sep. 30, 2020
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

 

September 30, 2020 assets (liabilities):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash equivalents

 

$

1,171

 

 

$

1,171

 

 

$

1,171

 

 

$

 

Commodity derivatives

 

$

28

 

 

$

28

 

 

$

 

 

$

28

 

Commodity derivatives

 

$

(80

)

 

$

(80

)

 

$

 

 

$

(80

)

Debt

 

$

(4,297

)

 

$

(4,635

)

 

$

 

 

$

(4,635

)

December 31, 2019 assets (liabilities):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash equivalents

 

$

702

 

 

$

702

 

 

$

702

 

 

$

 

Commodity derivatives

 

$

50

 

 

$

50

 

 

$

 

 

$

50

 

Commodity derivatives

 

$

(31

)

 

$

(31

)

 

$

 

 

$

(31

)

Debt

 

$

(4,294

)

 

$

(5,376

)

 

$

 

 

$

(5,376

)

v3.20.2
Summary of Significant Accounting Policies (Schedule of Revenue from Contracts with Customers Disaggregated Based on Type of Good or Service) (Details) - USD ($)
$ in Millions
3 Months Ended 9 Months Ended
Sep. 30, 2020
Sep. 30, 2019
Sep. 30, 2020
Sep. 30, 2019
Disaggregation Of Revenue [Line Items]        
Total revenues from contracts with customers $ 1,154 $ 1,619 $ 3,276 $ 4,969
Oil, Gas and NGL Sales [Member]        
Disaggregation Of Revenue [Line Items]        
Total revenues from contracts with customers 678 919 1,909 2,774
Oil, Gas and NGL Sales [Member] | Oil [Member]        
Disaggregation Of Revenue [Line Items]        
Total revenues from contracts with customers 504 751 1,462 2,160
Oil, Gas and NGL Sales [Member] | Gas [Member]        
Disaggregation Of Revenue [Line Items]        
Total revenues from contracts with customers 79 80 221 291
Oil, Gas and NGL Sales [Member] | NGL [Member]        
Disaggregation Of Revenue [Line Items]        
Total revenues from contracts with customers 95 88 226 323
Marketing Revenues [Member]        
Disaggregation Of Revenue [Line Items]        
Total revenues from contracts with customers 473 698 1,360 2,193
Marketing Revenues [Member] | Oil [Member]        
Disaggregation Of Revenue [Line Items]        
Total revenues from contracts with customers 233 407 702 1,157
Marketing Revenues [Member] | Gas [Member]        
Disaggregation Of Revenue [Line Items]        
Total revenues from contracts with customers 97 140 268 530
Marketing Revenues [Member] | NGL [Member]        
Disaggregation Of Revenue [Line Items]        
Total revenues from contracts with customers 143 151 390 506
Midstream Revenues [Member]        
Disaggregation Of Revenue [Line Items]        
Total revenues from contracts with customers 3 2 7 2
Marketing and Midstream Revenues [Member]        
Disaggregation Of Revenue [Line Items]        
Total revenues from contracts with customers $ 476 $ 700 $ 1,367 $ 2,195
v3.20.2
Acquisition and Divestitures (Narrative) (Details)
$ / shares in Units, $ in Millions, $ in Billions
3 Months Ended 9 Months Ended 12 Months Ended 48 Months Ended
Oct. 01, 2020
USD ($)
$ / MMBTU
$ / bbl
Sep. 30, 2020
USD ($)
Jun. 30, 2020
USD ($)
Jun. 30, 2020
CAD ($)
Mar. 31, 2020
USD ($)
Dec. 31, 2019
USD ($)
Sep. 30, 2019
USD ($)
Mar. 31, 2019
USD ($)
MMBoe
Sep. 30, 2020
USD ($)
$ / shares
Sep. 30, 2019
USD ($)
Dec. 31, 2019
USD ($)
Dec. 31, 2019
CAD ($)
Dec. 31, 2024
Apr. 30, 2020
USD ($)
Business Acquisition [Line Items]                            
Asset impairment charges   $ 3             $ 182 $ 37        
Gain recognized on sale of business, pre tax             $ 35   $ 2 222        
Gain on asset dispositions             $ 1     $ 48        
Devon and WPX Agreement [Member]                            
Business Acquisition [Line Items]                            
Date of Agreement                 Sep. 26, 2020          
Per share conversion | $ / shares                 $ 0.5165          
Non Core Assets [Member]                            
Business Acquisition [Line Items]                            
Divestitures of property and equipment               $ 300            
Gain on asset dispositions               $ 45            
Total estimated proved reserves | MMBoe               25            
Barnett Shale [Member]                            
Business Acquisition [Line Items]                            
Asset impairment charges   3     $ 179 $ 748                
BKV [Member] | Barnett Shale [Member]                            
Business Acquisition [Line Items]                            
Cash deposit received                           $ 170
Contingent earnout payment period                 The contingent payment period commences on January 1, 2021 and has a term of four years.          
Asset impairment charges   $ 3     $ 179 $ 748                
BKV [Member] | Barnett Shale [Member] | Scenario Forecast [Member]                            
Business Acquisition [Line Items]                            
Contingent earnout payment period                         The contingent payment period commences on January 1, 2021 and has a term of four years.  
BKV [Member] | Barnett Shale [Member] | Subsequent Event [Member]                            
Business Acquisition [Line Items]                            
Divestitures of property and equipment $ 490                          
Contingent earnout payments $ 260                          
Henry Hub gas price for contingent earnout payment upside | $ / MMBTU 2.75                          
WTI oil price for contingent earnout payment upside | $ / bbl 50                          
Canadian Natural Resources Limited [Member] | Canadian Business Segment [Member]                            
Business Acquisition [Line Items]                            
Proceeds from sale of business     $ 2,600 $ 3.4             $ 2,600 $ 3.4    
Gain recognized on sale of business, pre tax                     223      
Gain recognized on sale of business, net of tax                     $ 425      
v3.20.2
Derivative Financial Instruments (Narrative) (Details)
Sep. 30, 2020
USD ($)
Derivative Instruments And Hedging Activities Disclosure [Abstract]  
Cash collateral held $ 0
Cash collateral posted $ 0
v3.20.2
Derivative Financial Instruments (Schedule Of Open Oil Derivative Positions) (Details)
9 Months Ended
Sep. 30, 2020
$ / bbl
bbl
NYMEX West Texas Intermediate Price Swaps Oil Q4 2020 [Member]  
Derivative [Line Items]  
Volume Per Day (Bbls/d) | bbl 88,000
Weighted Average Price Swap 36.28
NYMEX West Texas Intermediate Price Swaps Oil Q1-Q4 2021 [Member]  
Derivative [Line Items]  
Volume Per Day (Bbls/d) | bbl 23,810
Weighted Average Price Swap 35.79
NYMEX West Texas Intermediate Price Swaps Oil Q1 2022 [Member]  
Derivative [Line Items]  
Volume Per Day (Bbls/d) | bbl 500
Weighted Average Price Swap 45.00
NYMEX West Texas Intermediate Price Collars Oil Q4 2020 [Member]  
Derivative [Line Items]  
Volume Per Day (Bbls/d) | bbl 39,500
Weighted Average Floor Price 50.93
Weighted Average Ceiling Price 60.93
NYMEX West Texas Intermediate Price Collars Oil Q1-Q4 2021 [Member]  
Derivative [Line Items]  
Volume Per Day (Bbls/d) | bbl 19,367
Weighted Average Floor Price 40.66
Weighted Average Ceiling Price 50.66
NYMEX West Texas Intermediate Price Collars Oil 2022 [Member]  
Derivative [Line Items]  
Volume Per Day (Bbls/d) | bbl 6,750
Weighted Average Floor Price 37.93
Weighted Average Ceiling Price 47.93
Argus MEH Basis Swaps Oil Q4 2020 [Member]  
Derivative [Line Items]  
Volume Per Day (Bbls/d) | bbl 50,000
Weighted Average Differential To WTI 0.47
Midland Sweet Basis Swaps Oil Q1-Q4 2021 [Member]  
Derivative [Line Items]  
Volume Per Day (Bbls/d) | bbl 7,000
Weighted Average Differential To WTI 1.27
Midland Sweet Basis Swaps Oil Q4 2020 [Member]  
Derivative [Line Items]  
Volume Per Day (Bbls/d) | bbl 32,000
Weighted Average Differential To WTI (1.23)
NYMEX Roll Basis Swaps Oil Q4 2020 [Member]  
Derivative [Line Items]  
Volume Per Day (Bbls/d) | bbl 54,000
Weighted Average Differential To WTI 0.38
v3.20.2
Derivative Financial Instruments (Schedule Of Open Natural Gas Derivative Positions) (Details)
9 Months Ended
Sep. 30, 2020
MMBTU
$ / MMBTU
FERC Henry Hub Price Swaps Natural Gas Q4 2020 [Member]  
Derivative [Line Items]  
Volume Per Day (MMBtu/d) | MMBTU 69,000
Weighted Average Price Swap 2.69
FERC Henry Hub Price Swaps Natural Gas Q1-Q4 2021 [Member]  
Derivative [Line Items]  
Volume Per Day (MMBtu/d) | MMBTU 32,699
Weighted Average Price Swap 2.76
FERC Henry Hub Price Swaps Natural Gas Q1 2022 [Member]  
Derivative [Line Items]  
Volume Per Day (MMBtu/d) | MMBTU 14,000
Weighted Average Price Swap 2.85
FERC Henry Hub Price Collars Natural Gas Q4 2020 [Member]  
Derivative [Line Items]  
Volume Per Day (MMBtu/d) | MMBTU 141,000
Weighted Average Floor Price 2.35
Weighted Average Ceiling Price 2.85
FERC Henry Hub Price Collars Natural Gas Q1-Q4 2021 [Member]  
Derivative [Line Items]  
Volume Per Day (MMBtu/d) | MMBTU 142,055
Weighted Average Floor Price 2.38
Weighted Average Ceiling Price 2.88
FERC Henry Hub Price Collars Natural Gas Q1 2022 [Member]  
Derivative [Line Items]  
Volume Per Day (MMBtu/d) | MMBTU 36,000
Weighted Average Floor Price 2.60
Weighted Average Ceiling Price 3.10
PEPL Basis Swaps Natural Gas 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 Q4 2020 [Member]  
Derivative [Line Items]  
Volume Per Day (MMBtu/d) | MMBTU 65,000
Weighted Average Differential To Henry Hub (0.78)
El Paso Natural Gas Basis Swaps Q1-Q4 2021 [Member]  
Derivative [Line Items]  
Volume Per Day (MMBtu/d) | MMBTU 35,000
Weighted Average Differential To Henry Hub (0.92)
Houston Ship Channel Natural Gas Basis Swaps Q4 2020 [Member]  
Derivative [Line Items]  
Volume Per Day (MMBtu/d) | MMBTU 30,000
Weighted Average Differential To Henry Hub (0.02)
v3.20.2
Derivative Financial Instruments (Schedule Of Open NGL Derivative Positions) (Details)
9 Months Ended
Sep. 30, 2020
$ / bbl
bbl
OPIS Mont Belvieu Texas Natural Gasoline Price Swaps NGL Q4 2020 [Member]  
Derivative [Line Items]  
Volume Per Day (Bbls/d) | bbl 1,000
Weighted Average Price Swap | $ / bbl 44.84
OPIS Mont Belvieu Texas Normal Butane Price Swaps NGL Q4 2020 [Member]  
Derivative [Line Items]  
Volume Per Day (Bbls/d) | bbl 1,500
Weighted Average Price Swap | $ / bbl 23.56
OPIS Mont Belvieu Texas Propane Price Swaps NGL Q4 2020 [Member]  
Derivative [Line Items]  
Volume Per Day (Bbls/d) | bbl 4,500
Weighted Average Price Swap | $ / bbl 25.18
v3.20.2
Derivative Financial Instruments (Schedule Of Derivative Financial Instruments Included In The Consolidated Balance Sheets) (Details) - USD ($)
$ in Millions
Sep. 30, 2020
Dec. 31, 2019
Derivatives Fair Value [Line Items]    
Fair value of derivative assets $ 28 $ 50
Fair value of derivative liabilities 80 31
Commodity Derivatives [Member] | Other Current Assets [Member]    
Derivatives Fair Value [Line Items]    
Fair value of derivative assets 27 49
Commodity Derivatives [Member] | Other Long-Term Assets [Member]    
Derivatives Fair Value [Line Items]    
Fair value of derivative assets 1 1
Commodity Derivatives [Member] | Other Current Liabilities [Member]    
Derivatives Fair Value [Line Items]    
Fair value of derivative liabilities 70 30
Commodity Derivatives [Member] | Other Long-Term Liabilities [Member]    
Derivatives Fair Value [Line Items]    
Fair value of derivative liabilities $ 10 $ 1
v3.20.2
Share-Based Compensation (Schedule Of Share-Based Compensation Expense Included In The Consolidated Statements Of Comprehensive Earnings) (Details) - USD ($)
$ in Millions
9 Months Ended
Sep. 30, 2020
Sep. 30, 2019
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]    
Share-based compensation expense $ 70 $ 92
Related income tax benefit   13
G&A [Member]    
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]    
Share-based compensation expense 58 64
Exploration Expenses [Member]    
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]    
Share-based compensation expense 1 1
Restructuring and Transaction Costs [Member]    
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]    
Accelerated share-based compensation expense $ 11 $ 27
v3.20.2
Share-Based Compensation (Summary Of Unvested Restricted Stock Awards, Performance-Based Restricted Stock Awards And Performance Share Units) (Details)
shares in Thousands
9 Months Ended
Sep. 30, 2020
$ / shares
shares
Restricted Stock Awards [Member]  
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]  
Unvested at December 31, 2019 | shares 4,984
Granted, awards and units | shares 3,056
Vested, awards and units | shares (2,093)
Forfeited, awards and units | shares (294)
Unvested at September 30, 2020 | shares 5,653
Unvested weighted average grant-date fair value at December 31, 2019 | $ / shares $ 29.65
Granted, weighted average grant-date fair value | $ / shares 21.90
Vested, weighted average grant-date fair value | $ / shares 29.11
Forfeited, weighted average grant-date fair value | $ / shares 24.44
Unvested weighted average grant-date fair value at September 30, 2020 | $ / shares $ 25.93
Performance-Based Restricted Stock Awards [Member]  
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]  
Unvested at December 31, 2019 | shares 153
Vested, awards and units | shares (109)
Unvested at September 30, 2020 | shares 44
Unvested weighted average grant-date fair value at December 31, 2019 | $ / shares $ 33.88
Vested, weighted average grant-date fair value | $ / shares 29.51
Unvested weighted average grant-date fair value at September 30, 2020 | $ / shares $ 44.70
Performance Share Units [Member]  
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]  
Unvested at December 31, 2019 | shares 2,155
Granted, awards and units | shares 688
Vested, awards and units | shares (455)
Forfeited, awards and units | shares (385)
Unvested at September 30, 2020 | shares 2,003 [1]
Unvested weighted average grant-date fair value at December 31, 2019 | $ / shares $ 40.35
Granted, weighted average grant-date fair value | $ / shares 27.89
Vested, weighted average grant-date fair value | $ / shares 52.56
Forfeited, weighted average grant-date fair value | $ / shares 47.68
Unvested weighted average grant-date fair value at September 30, 2020 | $ / shares $ 31.89
[1] A maximum of 4.0 million common shares could be awarded based upon Devon’s final TSR ranking.
v3.20.2
Share-Based Compensation (Summary Of Unvested Restricted Stock Awards, Performance-Based Restricted Stock Awards And Performance Share Units) (Parenthetical) (Details)
shares in Millions
9 Months Ended
Sep. 30, 2020
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 4.0
v3.20.2
Share-Based Compensation (Summary Of Performance Share Units Grant-Date Fair Values And Their Related Assumptions) (Details) - Performance Share Units [Member]
9 Months Ended
Sep. 30, 2020
$ / shares
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]  
Grant-date fair value $ 27.89
Risk-free interest rate 1.36%
Volatility factor 38.40%
Contractual term (years) 2 years 10 months 20 days
v3.20.2
Share-Based Compensation (Summary of Unrecognized Compensation Cost And Weighted Average Period For Recognition) (Details)
$ in Millions
9 Months Ended
Sep. 30, 2020
USD ($)
Restricted Stock Awards [Member]  
Unrecognized Compensation And Weighted Average Recognition [Line Items]  
Unrecognized compensation cost $ 81
Weighted average period for recognition (years) 2 years 7 months 6 days
Performance-Based Restricted Stock Awards [Member]  
Unrecognized Compensation And Weighted Average Recognition [Line Items]  
Weighted average period for recognition (years) 8 months 12 days
Performance Share Units [Member]  
Unrecognized Compensation And Weighted Average Recognition [Line Items]  
Unrecognized compensation cost $ 15
Weighted average period for recognition (years) 1 year 8 months 12 days
v3.20.2
Asset Impairments (Summary of Asset Impairments) (Details) - USD ($)
$ in Millions
3 Months Ended 9 Months Ended
Sep. 30, 2020
Sep. 30, 2019
Sep. 30, 2020
Sep. 30, 2019
Impaired Long Lived Assets Held And Used [Line Items]        
Asset impairment charges     $ 2,666  
Unproved impairments $ 39 $ 18 163 $ 29
Proved Oil and Gas Assets [Member]        
Impaired Long Lived Assets Held And Used [Line Items]        
Asset impairment charges     2,664  
Other Assets [Member]        
Impaired Long Lived Assets Held And Used [Line Items]        
Asset impairment charges     2  
Unproved Impairments [Member]        
Impaired Long Lived Assets Held And Used [Line Items]        
Unproved impairments $ 36 $ 13 $ 149 $ 15
v3.20.2
Asset Impairments (Narrative) (Details) - USD ($)
$ in Millions
3 Months Ended 9 Months Ended
Sep. 30, 2020
Mar. 31, 2020
Sep. 30, 2019
Sep. 30, 2020
Sep. 30, 2019
Impaired Long Lived Assets Held And Used [Line Items]          
Capital investment percentage       45.00%  
Asset impairments       $ 2,666  
Exploration expenses $ 39   $ 18 163 $ 29
Proved Asset Impairments [Member]          
Impaired Long Lived Assets Held And Used [Line Items]          
Asset impairments   $ 2,700   2,700  
Product Line Fill Impairments [Member]          
Impaired Long Lived Assets Held And Used [Line Items]          
Asset impairments   $ 2      
Unproved Impairments [Member]          
Impaired Long Lived Assets Held And Used [Line Items]          
Exploration expenses $ 36   $ 13 149 $ 15
Impairments charges related to non-core acreage       36  
Rockies [Member]          
Impaired Long Lived Assets Held And Used [Line Items]          
Exploration expenses       $ 113  
v3.20.2
Restructuring and Transaction Costs (Narrative) (Details) - USD ($)
$ in Millions
3 Months Ended 9 Months Ended
Sep. 30, 2020
Sep. 30, 2019
Sep. 30, 2020
Sep. 30, 2019
Restructuring Cost And Reserve [Line Items]        
Restructuring and transaction costs $ 32 $ 10 $ 32 $ 73
Reduction of workforce [Member]        
Restructuring Cost And Reserve [Line Items]        
Restructuring and transaction costs 32      
Expense associated with accelerated awards $ 11      
Reduction of workforce [Member]        
Restructuring Cost And Reserve [Line Items]        
Restructuring and transaction costs       73
Expense associated with accelerated awards       27
Reduction of workforce [Member] | Defined Benefit Settlements [Member]        
Restructuring Cost And Reserve [Line Items]        
Restructuring and transaction costs       $ 5
v3.20.2
Restructuring and Transaction Costs (Schedule Of The Activity And Balances Associated With Restructuring Liabilities) (Details) - USD ($)
$ in Millions
9 Months Ended
Sep. 30, 2020
Sep. 30, 2019
Restructuring Cost And Reserve [Line Items]    
Beginning balance $ 21 $ 42
Ending balance 18 31
Reduction of workforce [Member]    
Restructuring Cost And Reserve [Line Items]    
Restructuring reserve activity 11  
Prior years' restructurings [Member]    
Restructuring Cost And Reserve [Line Items]    
Restructuring reserve activity (14) (11)
Other Current Liabilities [Member]    
Restructuring Cost And Reserve [Line Items]    
Beginning balance 20 39
Ending balance 17 30
Other Current Liabilities [Member] | Reduction of workforce [Member]    
Restructuring Cost And Reserve [Line Items]    
Restructuring reserve activity 11  
Other Current Liabilities [Member] | Prior years' restructurings [Member]    
Restructuring Cost And Reserve [Line Items]    
Restructuring reserve activity (14) (9)
Other Long-Term Liabilities [Member]    
Restructuring Cost And Reserve [Line Items]    
Beginning balance 1 3
Ending balance $ 1 1
Other Long-Term Liabilities [Member] | Prior years' restructurings [Member]    
Restructuring Cost And Reserve [Line Items]    
Restructuring reserve activity   $ (2)
v3.20.2
Income Taxes (Schedule Of Effective Income Tax Rate Reconciliation) (Details) - USD ($)
$ in Millions
3 Months Ended 9 Months Ended
Sep. 30, 2020
Sep. 30, 2019
Sep. 30, 2020
Sep. 30, 2019
Income Tax Disclosure [Abstract]        
Earnings (loss) from continuing operations before income taxes $ (193) $ 190 $ (2,980) $ (88)
Current income tax expense (benefit) (90) 2 (199) 1
Deferred income tax expense (benefit)   52 (311) 2
Total income tax expense (benefit) $ (90) $ 54 $ (510) $ 3
U.S. statutory income tax rate 21.00% 21.00% 21.00% 21.00%
State income taxes 0.00% 6.00% 1.00% (2.00%)
Change in tax legislation 4.00% 0.00% 3.00% 0.00%
Unrecognized tax benefits 18.00% 0.00% 0.00% (2.00%)
Other 0.00% 1.00% (1.00%) (20.00%)
Deferred tax asset valuation allowance 4.00% 0.00% (7.00%) 0.00%
Effective income tax rate 47.00% 28.00% 17.00% (3.00%)
v3.20.2
Income Taxes (Narrative) (Details) - USD ($)
$ in Millions
3 Months Ended 9 Months Ended
Jul. 28, 2020
Sep. 30, 2020
Sep. 30, 2019
Sep. 30, 2020
Sep. 30, 2019
Income Tax [Line Items]          
Income tax expense (benefit)   $ (90) $ 54 $ (510) $ 3
Decrease in unrecognized tax benefits   34      
Tax adjustments, settlements, and unusual provisions   $ 34      
Valuation allowance against deferred tax assets, percent       100.00%  
Other income tax expense         $ 18
CARES Act [Member]          
Income Tax [Line Items]          
Income tax expense (benefit) $ (105)     $ (105)  
v3.20.2
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 9 Months Ended
Sep. 30, 2020
Sep. 30, 2019
Sep. 30, 2020
Sep. 30, 2019
Net earnings (loss) from continuing operations:        
Net earnings (loss) from continuing operations $ (105) $ 136 $ (2,475) $ (91)
Attributable to participating securities (2) (1) (3) (1)
Basic and diluted earnings (loss) from continuing operations $ (107) $ 135 $ (2,478) $ (92)
Common shares:        
Common shares outstanding - total 383 397 383 415
Attributable to participating securities (6) (5) (6) (6)
Common shares outstanding - basic 377 392 377 409
Dilutive effect of potential common shares issuable   2    
Common shares outstanding - diluted 377 394 377 409
Net earnings (loss) per share from continuing operations:        
Basic $ (0.29) $ 0.34 $ (6.58) $ (0.22)
Diluted $ (0.29) $ 0.34 $ (6.58) $ (0.22)
Antidilutive options [1]   1   1
[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.
v3.20.2
Other Comprehensive Earnings (Loss) (Components Of Other Comprehensive Earnings (Loss)) (Details) - USD ($)
$ in Millions
3 Months Ended 9 Months Ended 12 Months Ended
Sep. 30, 2020
Sep. 30, 2019
Sep. 30, 2020
Sep. 30, 2019
Dec. 31, 2019
Foreign currency translation:          
Beginning accumulated foreign currency translation and other       $ 1,159 $ 1,159
Change in cumulative translation adjustment       78  
Release of Canadian cumulative translation adjustment [1]       (1,237)  
Pension and postretirement benefit plans:          
Beginning accumulated pension and postretirement benefits $ (117) $ (117) $ (119) (132) (132)
Recognition of net actuarial loss and prior service cost in earnings [2] 1 1 4 5  
Curtailment and settlement of pension benefits [3]       15  
Income tax expense     (1) (4)  
Ending accumulated pension and postretirement benefits (116) (116) (116) (116) (119)
Accumulated other comprehensive loss, net of tax $ (116) $ (116) $ (116) $ (116) $ (119)
[1] In conjunction with the sale of substantially all of its oil and gas assets and operations in Canada, Devon released the cumulative translation adjustment as part of its gain on the disposition of its Canadian business. See Note 17 for additional details.
[2] Recognition of net actuarial loss and prior service cost are included in the computation of net periodic benefit cost, which is a component of other expenses in the accompanying consolidated statements of comprehensive earnings.
[3] These accumulated other comprehensive earnings are included within components of other expenses and restructuring and transaction costs in the accompanying consolidated comprehensive statements of earnings.
v3.20.2
Supplemental Information To Statements Of Cash Flows (Schedule Of Supplemental Information To Statements Of Cash Flows) (Details) - USD ($)
$ in Millions
3 Months Ended 9 Months Ended
Sep. 30, 2020
Sep. 30, 2019
Sep. 30, 2020
Sep. 30, 2019
Changes in assets and liabilities, net:        
Accounts receivable $ 21 $ 55 $ 339 $ 65
Income tax receivable   (12) (112) (13)
Other current assets 18 15 10 18
Other long-term assets (9) 14 (33) (1)
Accounts payable 11 23 9 (14)
Revenues and royalties payable 89 (72) (169) (88)
Other current liabilities 15 12 (82) (77)
Other long-term liabilities (87) 1 (59) 10
Total 58 36 (97) (100)
Supplementary cash flow data - total operations:        
Interest paid 64 $ 81 194 242
Income taxes paid (received) $ (2)   $ 170 $ 16
v3.20.2
Supplemental Information To Statements Of Cash Flows (Narrative) (Details) - USD ($)
$ in Millions
Sep. 30, 2020
Dec. 31, 2019
Supplemental Cash Flow Elements [Abstract]    
Accrued capital expenditures $ 130 $ 250
v3.20.2
Accounts Receivable (Schedule Of Components Of Accounts Receivable) (Details) - USD ($)
$ in Millions
Sep. 30, 2020
Dec. 31, 2019
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Joint interest billings $ 58 $ 168
Other 23 13
Gross accounts receivable 504 840
Allowance for doubtful accounts (11) (8)
Net accounts receivable 493 832
Oil, Gas and NGL Sales [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Gross accounts receivable 276 452
Marketing and Midstream Revenues [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Gross accounts receivable $ 147 $ 207
v3.20.2
Property, Plant and Equipment (Table of Property and Equipment, net) (Details) - USD ($)
$ in Millions
Sep. 30, 2020
Dec. 31, 2019
Property and equipment:    
Proved $ 28,407 $ 27,668
Unproved and properties under development 432 583
Total oil and gas 28,839 28,251
Less accumulated DD&A (24,286) (20,693)
Oil and gas property and equipment, net 4,553 7,558
Other property and equipment 1,746 1,725
Less accumulated DD&A (743) (690)
Other property and equipment, net [1] 1,003 1,035
Total property and equipment, net $ 5,556 $ 8,593
[1] $100 million and $80 million related to CDM in 2020 and 2019, respectively.
v3.20.2
Property, Plant and Equipment (Table of Property and Equipment, net) (Parenthetical) (Details) - USD ($)
$ in Millions
Sep. 30, 2020
Dec. 31, 2019
Property Plant And Equipment [Line Items]    
Other property and equipment, net [1] $ 1,003 $ 1,035
CDM [Member]    
Property Plant And Equipment [Line Items]    
Other property and equipment, net $ 100 $ 80
[1] $100 million and $80 million related to CDM in 2020 and 2019, respectively.
v3.20.2
Property, Plant and Equipment (Narrative) (Details) - USD ($)
$ in Millions
3 Months Ended 9 Months Ended
Sep. 30, 2020
Mar. 31, 2020
Sep. 30, 2019
Sep. 30, 2020
Sep. 30, 2019
Property Plant And Equipment [Line Items]          
Asset impairments       $ 2,666  
Exploration expenses $ 39   $ 18 163 $ 29
Proved Asset Impairments [Member]          
Property Plant And Equipment [Line Items]          
Asset impairments   $ 2,700   2,700  
Unproved Impairments [Member]          
Property Plant And Equipment [Line Items]          
Exploration expenses $ 36   $ 13 $ 149 $ 15
v3.20.2
Debt And Related Expenses (Schedule Of Debt Instruments and Balances) (Details) - USD ($)
$ in Millions
9 Months Ended
Sep. 30, 2020
Dec. 31, 2019
Debt Instrument [Line Items]    
Net discount on debentures and notes $ (20) $ (20)
Debt issuance costs (32) (35)
Total long-term debt 4,297 4,294
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 $ 1,250 $ 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 $ 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%
v3.20.2
Debt And Related Expenses (Narrative) (Details)
1 Months Ended 9 Months Ended
Jan. 31, 2019
USD ($)
Sep. 30, 2019
USD ($)
Sep. 30, 2020
USD ($)
Debt Instrument [Line Items]      
Redemption of senior notes   $ 162,000,000  
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%    
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     0.195
Outstanding letters of credit     $ 2,000,000
Senior Credit Facility [Member] | Maximum [Member]      
Debt Instrument [Line Items]      
Debt-to-capitalization ratio     0.65
v3.20.2
Debt And Related Expenses (Schedule of Net Financing Cost Components) (Details) - USD ($)
$ in Millions
3 Months Ended 9 Months Ended
Sep. 30, 2020
Sep. 30, 2019
Sep. 30, 2020
Sep. 30, 2019
Debt Disclosure [Abstract]        
Interest based on debt outstanding $ 65 $ 65 $ 195 $ 195
Interest income (5) (10) (12) (28)
Other 6 5 17 19
Total net financing costs $ 66 $ 60 $ 200 $ 186
v3.20.2
Leases (Schedule of Right-of-use Assets and Lease Liabilities) (Details) - USD ($)
$ in Millions
Sep. 30, 2020
Dec. 31, 2019
Leases [Abstract]    
Right-of-use assets, finance lease $ 222 $ 229
Finance lease liabilities:    
Current lease liabilities, finance lease [1] 7 7
Long-term lease liabilities, finance lease 243 240
Total lease liabilities, finance lease 250 247
Right-of-use assets, operating lease 4 14
Operating lease liabilities:    
Current lease liabilities, operating lease [1] 1 10
Long-term lease liabilities, operating lease 2 4
Total lease liabilities, operating lease 3 14
Right-of-use assets 226 243
Lease liabilities:    
Current lease liabilities [1] 8 17
Long-term lease liabilities 245 244
Total lease liabilities $ 253 $ 261
[1] Current lease liabilities are included in other current liabilities on the consolidated balance sheets.
v3.20.2
Asset Retirement Obligations (Summary Of Changes In Asset Retirement Obligations) (Details) - USD ($)
$ in Millions
9 Months Ended
Sep. 30, 2020
Sep. 30, 2019
Dec. 31, 2019
Asset Retirement Obligation Disclosure [Abstract]      
Asset retirement obligations as of beginning of period $ 398 $ 484  
Liabilities incurred 15 14  
Liabilities settled and divested (24) (50)  
Revision of estimated obligation 4 (62)  
Accretion expense on discounted obligation 15 16  
Asset retirement obligations as of end of period 408 402  
Less current portion 10 17  
Asset retirement obligations, long-term $ 398 $ 385 $ 380
v3.20.2
Asset Retirement Obligations (Narrative) (Details) - USD ($)
$ in Millions
9 Months Ended
Sep. 30, 2020
Sep. 30, 2019
Asset Retirement Obligations [Line Items]    
Revision of estimated obligation $ 4 $ (62)
Decrease in asset retirement obligations $ 24 50
Asset Divestitures [Member]    
Asset Retirement Obligations [Line Items]    
Decrease in asset retirement obligations   $ 34
v3.20.2
Stockholders' Equity (Narrative) (Details) - USD ($)
3 Months Ended 9 Months Ended
Aug. 04, 2020
Sep. 30, 2020
Jun. 30, 2020
Mar. 31, 2020
Sep. 30, 2019
Jun. 30, 2019
Mar. 31, 2019
Sep. 30, 2020
Dec. 31, 2020
Oct. 01, 2020
Dec. 31, 2019
Feb. 28, 2019
Jun. 30, 2018
Mar. 31, 2018
Stockholders Equity [Abstract]                            
Common stock dividends, rate per share   $ 0.11 $ 0.11 $ 0.09 $ 0.09 $ 0.09 $ 0.08              
Percentage of increase to quarterly dividend     22.00%                      
Dividend payable date Oct. 01, 2020                          
Dividend payable amount, per share $ 0.26                          
Dividend payable date of record Aug. 14, 2020                          
Subsequent Event [Member]                            
Stockholders Equity [Abstract]                            
Dividend payable amount                   $ 100,000,000        
Share Repurchase Programs [Member]                            
Stockholders Equity [Abstract]                            
Share-repurchase program, authorized amount                       $ 5,000,000,000.0 $ 4,000,000,000.0 $ 1,000,000,000.0
5.0 Billion Dollar Share Repurchase Program [Member]                            
Stockholders Equity [Abstract]                            
Share-repurchase program expiration date               Dec. 31, 2019            
1.0 Billion Dollar Share Repurchase Program [Member]                            
Stockholders Equity [Abstract]                            
Share-repurchase program, authorized amount                     $ 1,000,000,000.0      
Share-repurchase program expiration date               Dec. 31, 2020            
Stock-repurchase program, conditioned amount                     $ 800,000,000      
Minimum [Member]                            
Stockholders Equity [Abstract]                            
Share-repurchase program, cash proceeds required for conditioned amount   $ 725,000,000           $ 725,000,000            
Maximum [Member] | 1.0 Billion Dollar Share Repurchase Program [Member]                            
Stockholders Equity [Abstract]                            
Share repurchase program, remaining authorized repurchase amount                 $ 200,000,000          
v3.20.2
Stockholders' Equity (Summary of Purchases of Common Stock) (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Millions
3 Months Ended 9 Months Ended 12 Months Ended 24 Months Ended
Mar. 31, 2020
Dec. 31, 2019
Sep. 30, 2019
Jun. 30, 2019
Mar. 31, 2019
Sep. 30, 2020
Dec. 31, 2018
Dec. 31, 2019
5.0 Billion Dollar Share Repurchase Program [Member]                
Stockholders Equity [Line Items]                
Total Number of Shares Purchased   4,436 22,137 5,911 36,141   78,149 146,774
Dollar Value of Shares Purchased   $ 94 $ 550 $ 159 $ 1,024   $ 2,978 $ 4,805
Average Price Paid per Share   $ 21.32 $ 24.80 $ 27.01 $ 28.33   $ 38.11 $ 32.74
1.0 Billion Dollar Share Repurchase Program [Member]                
Stockholders Equity [Line Items]                
Total Number of Shares Purchased 2,243         2,243    
Dollar Value of Shares Purchased $ 38         $ 38    
Average Price Paid per Share $ 16.85         $ 16.85    
v3.20.2
Stockholders' Equity (Summary Of Dividends Paid On Common Stock) (Details) - USD ($)
$ / shares in Units, $ in Millions
3 Months Ended 9 Months Ended
Sep. 30, 2020
Jun. 30, 2020
Mar. 31, 2020
Sep. 30, 2019
Jun. 30, 2019
Mar. 31, 2019
Sep. 30, 2020
Sep. 30, 2019
Stockholders Equity Note [Abstract]                
Common stock dividends paid, Amount $ 43 $ 42 $ 34 $ 35 $ 37 $ 34 $ 119 $ 106
Common stock dividends, rate per share $ 0.11 $ 0.11 $ 0.09 $ 0.09 $ 0.09 $ 0.08    
v3.20.2
Discontinued Operations and Assets Held for Sale (Narrative) (Details)
$ in Millions, $ in Billions
1 Months Ended 3 Months Ended 6 Months Ended 9 Months Ended 12 Months Ended 48 Months Ended
Oct. 01, 2020
USD ($)
$ / MMBTU
$ / bbl
Sep. 30, 2020
USD ($)
Sep. 30, 2020
USD ($)
Jun. 30, 2020
USD ($)
Jun. 30, 2020
CAD ($)
Mar. 31, 2020
USD ($)
Dec. 31, 2019
USD ($)
Sep. 30, 2019
USD ($)
Jun. 30, 2020
USD ($)
Sep. 30, 2020
USD ($)
Property
Sep. 30, 2019
USD ($)
Dec. 31, 2019
USD ($)
Dec. 31, 2019
CAD ($)
Dec. 31, 2024
USD ($)
Apr. 30, 2020
USD ($)
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items]                              
Asset impairments     $ 3             $ 182 $ 37        
Goodwill   $ 88 88       $ 88     88   $ 88      
Cash restricted for discontinued operations   190 190       380 $ 280   190 280 380      
Gain recognized on sale of business, pre-tax               35   2 222        
Foreign currency translation adjustment [1]                     $ 1,237        
Canadian Divestiture [Member]                              
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items]                              
Estimated cash abandonment charges per quarter                   8          
Barnett Shale [Member]                              
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items]                              
Asset impairments     3     $ 179 748                
Goodwill   88 88             88          
Contingent payments valuation   60                          
Cash restricted for discontinued operations   20 20             20          
Estimated cash abandonment charges per quarter                   $ 2          
Number of oil and gas leases covering properties | Property                   4,500          
Expense for litigation claim settlement costs     28                        
Canadian Business Segment [Member]                              
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items]                              
Charge 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]                              
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%     4.00%        
Debt, maturity date               Jul. 15, 2021              
Canadian Business Segment [Member] | 3.25% due May 15, 2022 [Member] | Senior Notes [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%     3.25%        
Debt, maturity date               May 15, 2022              
BKV [Member] | Barnett Shale [Member]                              
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items]                              
Cash deposit received                             $ 170
Contingent earnout payment period                   The contingent payment period commences on January 1, 2021 and has a term of four years.          
Asset impairments     3     $ 179 $ 748                
Canadian Natural Resources Limited [Member] | Canadian Business Segment [Member]                              
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items]                              
Cash restricted for discontinued operations   $ 170 $ 170             $ 170          
Proceeds from the sale of business       $ 2,600 $ 3.4             2,600 $ 3.4    
Gain recognized on sale of business, pre-tax                       223      
Gain recognized on sale of business, after-tax                       425      
Income taxes paid                 $ 175            
Foreign currency translation adjustment                       $ 1,200      
Subsequent Event [Member] | BKV [Member] | Barnett Shale [Member]                              
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items]                              
Proceeds from the sale of business $ 490                            
Contingent earnout payments $ 260                            
Henry Hub gas price for contingent earnout payment upside | $ / MMBTU 2.75                            
WTI oil price for contingent earnout payment upside | $ / bbl 50                            
Scenario Forecast [Member] | BKV [Member] | Barnett Shale [Member]                              
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items]                              
Contingent earnout payment period                           The contingent payment period commences on January 1, 2021 and has a term of four years.  
Scenario Forecast [Member] | Maximum [Member] | BKV [Member] | Barnett Shale [Member]                              
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items]                              
Contingent earnout payments                           $ 260  
[1] In conjunction with the sale of substantially all of its oil and gas assets and operations in Canada, Devon released the cumulative translation adjustment as part of its gain on the disposition of its Canadian business. See Note 17 for additional details.
v3.20.2
Discontinued Operations and Assets Held for Sale (Amounts Reported as Discontinued Operations in the Consolidated Statements of Comprehensive Earnings) (Details) - USD ($)
$ in Millions
3 Months Ended 9 Months Ended
Sep. 30, 2020
Sep. 30, 2019
Sep. 30, 2020
Sep. 30, 2019
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items]        
Oil, gas and NGL sales $ 94 $ 112 $ 263 $ 1,106
Oil, gas and NGL derivatives   (18)   (113)
Marketing and midstream revenues       38
Total revenues 94 94 263 1,031
Production expenses 66 74 214 525
Exploration expenses       13
Marketing and midstream expenses       18
Depreciation, depletion and amortization   20   188
Asset impairments 3   182 37
Asset dispositions   (35) (2) (222)
General and administrative expenses 2 2 3 33
Financing costs, net (1) 59 (3) 85
Restructuring and transaction costs   5   244
Other expenses 26 8 19 17
Total expenses 96 133 413 938
Earnings (loss) from discontinued operations before income taxes (2) (39) (150) 93
Income tax expense (benefit) (15) (12) (47) (285)
Net earnings (loss) from discontinued operations, net of tax 13 (27) (103) 378
Barnett Shale [Member]        
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items]        
Oil, gas and NGL sales 94 101 263 365
Total revenues 94 101 263 365
Production expenses 66 75 214 232
Depreciation, depletion and amortization   20   60
Asset impairments 3   182  
Asset dispositions   (1)   1
Other expenses 27 3 16 9
Total expenses 96 97 412 302
Earnings (loss) from discontinued operations before income taxes (2) 4 (149) 63
Income tax expense (benefit)   1 (32) 13
Net earnings (loss) from discontinued operations, net of tax (2) 3 (117) 50
Canada [Member]        
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items]        
Oil, gas and NGL sales   11   741
Oil, gas and NGL derivatives   (18)   (113)
Marketing and midstream revenues       38
Total revenues   (7)   666
Production expenses   (1)   293
Exploration expenses       13
Marketing and midstream expenses       18
Depreciation, depletion and amortization       128
Asset impairments       37
Asset dispositions   (34) (2) (223)
General and administrative expenses 2 2 3 33
Financing costs, net (1) 59 (3) 85
Restructuring and transaction costs   5   244
Other expenses (1) 5 3 8
Total expenses   36 1 636
Earnings (loss) from discontinued operations before income taxes   (43) (1) 30
Income tax expense (benefit) (15) (13) (15) (298)
Net earnings (loss) from discontinued operations, net of tax $ 15 $ (30) $ 14 $ 328
v3.20.2
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
Sep. 30, 2020
Dec. 31, 2019
Sep. 30, 2019
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items]      
Cash restricted for discontinued operations $ 190 $ 380 $ 280
Accounts receivable 33 39  
Other current assets 6 7  
Oil and gas property and equipment, based on successful efforts accounting, net 590 751  
Other property and equipment, net 11 11  
Goodwill 88 88  
Other long-term assets 81 81  
Total assets associated with discontinued operations 809 977  
Accounts payable 20 19  
Revenues and royalties payable 45 47  
Other current liabilities 253 252  
Asset retirement obligations 145 141  
Other long-term liabilities 157 185  
Total liabilities associated with discontinued operations 620 644  
Barnett Shale [Member]      
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items]      
Cash restricted for discontinued operations 20 25  
Accounts receivable 33 38  
Other current assets 6 5  
Oil and gas property and equipment, based on successful efforts accounting, net 590 751  
Other property and equipment, net 11 11  
Goodwill 88 88  
Total assets associated with discontinued operations 728 893  
Accounts payable 17 15  
Revenues and royalties payable 42 44  
Other current liabilities 215 19  
Asset retirement obligations 145 141  
Other long-term liabilities 14 16  
Total liabilities associated with discontinued operations 433 235  
Canada [Member]      
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items]      
Cash restricted for discontinued operations 170 355  
Accounts receivable   1  
Other current assets   2  
Other long-term assets 81 81  
Total assets associated with discontinued operations 81 84  
Accounts payable 3 4  
Revenues and royalties payable 3 3  
Other current liabilities 38 233  
Other long-term liabilities 143 169  
Total liabilities associated with discontinued operations $ 187 $ 409  
v3.20.2
Fair Value Measurements (Schedule Of Carrying Value And Fair Value Measurement Information For Financial Assets And Liabilities) (Details) - USD ($)
$ in Millions
Sep. 30, 2020
Dec. 31, 2019
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivatives, assets $ 28 $ 50
Derivatives, liabilities (80) (31)
Carrying Amount [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash equivalents 1,171 702
Debt (4,297) (4,294)
Carrying Amount [Member] | Commodity Derivatives [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivatives, assets 28 50
Derivatives, liabilities (80) (31)
Total Fair Value [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash equivalents 1,171 702
Debt (4,635) (5,376)
Total Fair Value [Member] | Commodity Derivatives [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivatives, assets 28 50
Derivatives, liabilities (80) (31)
Level 1 Inputs [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash equivalents 1,171 702
Level 2 Inputs [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Debt (4,635) (5,376)
Level 2 Inputs [Member] | Commodity Derivatives [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivatives, assets 28 50
Derivatives, liabilities $ (80) $ (31)