DEVON ENERGY CORP/DE, 10-Q filed on 8/2/2022
Quarterly Report
v3.22.2
Document And Entity Information - shares
shares in Millions
6 Months Ended
Jun. 30, 2022
Jul. 20, 2022
Cover [Abstract]    
Document Type 10-Q  
Document Period End Date Jun. 30, 2022  
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 2022  
Entity Filer Category Large Accelerated Filer  
Entity Small Business false  
Entity Emerging Growth Company false  
Document Fiscal Period Focus Q2  
Entity Common Stock, Shares Outstanding   654.8
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 $0.10 per share  
Security Exchange Name NYSE  
Entity Incorporation, State or Country Code DE  
Document Quarterly Report true  
Document Transition Report false  
v3.22.2
Consolidated Statements of Comprehensive Earnings - USD ($)
$ in Millions
3 Months Ended 6 Months Ended
Jun. 30, 2022
Jun. 30, 2021
Jun. 30, 2022
Jun. 30, 2021
Revenues from contracts with customers $ 5,796 $ 3,120 $ 10,291 $ 5,698
Oil, gas and NGL derivatives (170) (703) (853) (1,231)
Total revenues 5,626 2,417 9,438 4,467
Production expenses 729 513 1,347 971
Exploration expenses 10 3 12 6
Depreciation, depletion and amortization 528 536 1,017 1,003
Asset dispositions (14) (87) (15) (119)
General and administrative expenses 84 94 178 201
Financing costs, net 84 80 169 157
Restructuring and transaction costs 0 23 0 212
Other, net 10 (14) (51) (43)
Total expenses 3,131 2,113 5,681 4,195
Earnings before income taxes 2,495 304 3,757 272
Income tax expense (benefit) 557 43 824 (205)
Net earnings (loss) 1,938 261 2,933 477
Net earnings attributable to noncontrolling interests 6 5 12 8
Net earnings (loss) attributable to Devon $ 1,932 $ 256 $ 2,921 $ 469
Net earnings per share:        
Basic net earnings per share: $ 2.94 $ 0.38 $ 4.42 $ 0.70
Diluted net earnings per share: $ 2.93 $ 0.38 $ 4.40 $ 0.70
Comprehensive earnings:        
Net earnings $ 1,938 $ 261 $ 2,933 $ 477
Other comprehensive earnings, net of tax:        
Pension and postretirement plans 1 3 2 26
Other comprehensive earnings, net of tax 1 3 2 26
Comprehensive earnings: 1,939 264 2,935 503
Comprehensive earnings attributable to noncontrolling interests 6 5 12 8
Comprehensive earnings attributable to Devon 1,933 259 2,923 495
Oil, Gas and NGL Sales [Member]        
Revenues from contracts with customers 4,100 2,154 7,275 3,911
Marketing and Midstream Revenues [Member]        
Revenues from contracts with customers 1,696 966 3,016 1,787
Marketing and Midstream Expenses [Member]        
Expenses $ 1,700 $ 965 $ 3,024 $ 1,807
v3.22.2
Consolidated Statements Of Cash Flows - USD ($)
$ in Millions
3 Months Ended 6 Months Ended
Jun. 30, 2022
Jun. 30, 2021
Jun. 30, 2022
Jun. 30, 2021
Cash flows from operating activities:        
Net earnings $ 1,938 $ 261 $ 2,933 $ 477
Adjustments to reconcile net earnings (loss) to net cash from operating activities:        
Depreciation, depletion and amortization 528 536 1,017 1,003
Leasehold impairments 7 1 8 2
Amortization of liabilities (9) (7) (15) (14)
Total losses on commodity derivatives 170 703 853 1,231
Cash settlements on commodity derivatives (472) (367) (816) (599)
Gains on asset dispositions (14) (87) (15) (119)
Deferred income tax expense (benefit) 305 24 469 (219)
Share-based compensation 23 20 43 61
Early retirement of debt 0 (10) 0 (30)
Other 4 2 (17) 2
Changes in assets and liabilities, net 198 17 55 (110)
Net cash from operating activities 2,678 1,093 4,515 1,685
Cash flows from investing activities:        
Capital expenditures (573) (504) (1,110) (1,003)
Acquisitions of property and equipment (100) (5) (101) (5)
Divestitures of property and equipment 9 49 35 64
WPX acquired cash 0 0 0 344
Distributions from equity method investments 15 8 23 18
Contributions to equity method investments (21) 0 (43) 0
Net cash from investing activities (670) (452) (1,196) (582)
Cash flows from financing activities:        
Repayments of long-term debt 0 (710) 0 (1,243)
Early retirement of debt (32) (59)
Repurchases of common stock (324) 0 (535) 0
Dividends paid on common stock (830) (229) (1,497) (432)
Contributions from noncontrolling interests 0 3 0 3
Distributions to noncontrolling interests (5) (5) (13) (9)
Acquisition of noncontrolling interests 0 0 0 (24)
Shares exchanged for tax withholdings and other (12) (9) (85) (42)
Net cash from financing activities (1,171) (982) (2,130) (1,806)
Effect of exchange rate changes on cash (5) 2 (3) 5
Net change in cash, cash equivalents and restricted cash 832 (339) 1,186 (698)
Cash, cash equivalents and restricted cash at beginning of period 2,625 1,878 2,271 2,237
Cash, cash equivalents and restricted cash at end of period 3,457 1,539 3,457 1,539
Reconciliation of cash, cash equivalents and restricted cash:        
Cash and cash equivalents 3,300 1,348 3,300 1,348
Restricted cash 157 191 157 191
Total cash, cash equivalents and restricted cash $ 3,457 $ 1,539 $ 3,457 $ 1,539
v3.22.2
Consolidated Balance Sheets - USD ($)
$ in Millions
Jun. 30, 2022
Dec. 31, 2021
ASSETS    
Cash, cash equivalents and restricted cash $ 3,457 $ 2,271
Accounts receivable 2,348 1,543
Other current assets 546 435
Total current assets 6,351 4,249
Oil and gas property and equipment, based on successful efforts accounting, net 13,588 13,536
Other property and equipment, net ($122 million and $111 million related to CDM in 2022 and 2021, respectively) [1] 1,525 1,472
Total property and equipment, net 15,113 15,008
Goodwill 753 753
Right-of-use assets 236 235
Investments 423 402
Other long-term assets 318 378
Total assets 23,194 21,025
LIABILITIES AND EQUITY    
Accounts payable 668 500
Revenues and royalties payable 2,108 1,456
Other current liabilities 1,318 1,131
Total current liabilities 4,094 3,087
Long-term debt 6,461 6,482
Lease liabilities 259 252
Asset retirement obligations 452 468
Other long-term liabilities 949 1,050
Deferred income taxes 753 287
Stockholders' equity:    
Common stock, $0.10 par value. Authorized 1.0 billion shares; issued 656 million and 663 million shares in 2022 and 2021, respectively 66 66
Additional paid-in capital 7,060 7,636
Retained earnings 3,107 1,692
Accumulated other comprehensive loss (130) (132)
Treasury stock value (13) 0
Total stockholders’ equity attributable to Devon 10,090 9,262
Noncontrolling interests 136 137
Total equity 10,226 9,399
Total liabilities and equity $ 23,194 $ 21,025
[1] $122 million and $111 million related to CDM in 2022 and 2021, respectively.
v3.22.2
Consolidated Balance Sheets (Parenthetical) - USD ($)
$ in Millions
Jun. 30, 2022
Dec. 31, 2021
Other property and equipment, net [1] $ 1,525 $ 1,472
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) 656,000,000 663,000,000
Treasury Stock, Shares 200,000  
CDM [Member]    
Other property and equipment, net $ 122 $ 111
[1] $122 million and $111 million related to CDM in 2022 and 2021, respectively.
v3.22.2
Consolidated Statements Of Equity - USD ($)
shares in Millions, $ in Millions
Total
Common Stock [Member]
Additional Paid-In Capital [Member]
Retained Earnings [Member]
Other Comprehensive Earnings (Loss) [Member]
Treasury Stock [Member]
Noncontrolling Interests [Member]
Balance at Dec. 31, 2020 $ 3,019 $ 38 $ 2,766 $ 208 $ (127)   $ 134
Balance, shares at Dec. 31, 2020   382          
Net earnings 477     469     8
Other comprehensive earnings (loss), net of tax 26       26    
Restricted stock grants, net of cancellations, value   $ 1 (1)        
Restricted stock grants, net of cancellations, shares   6          
Common stock repurchased (40)         $ (40)  
Common stock retired     (40)     (40)  
Common stock retired, shares   (2)          
Common stock dividends (434)     (434)      
Common stock issued 5,432 $ 29 5,403        
Common stock issued, Shares   290          
Share-based compensation 61   61        
Share-based compensation, shares   1          
Contributions from noncontrolling interests 2           2
Distributions to noncontrolling interests (8)           (8)
Balance at Jun. 30, 2021 8,535 $ 68 8,189 243 (101) 0 136
Balance, shares at Jun. 30, 2021   677          
Balance at Mar. 31, 2021 8,486 $ 67 8,172 218 (104) 0 133
Balance, shares at Mar. 31, 2021   675          
Net earnings 261     256     5
Other comprehensive earnings (loss), net of tax 3       3    
Restricted stock grants, net of cancellations, value   $ 1 (1)        
Restricted stock grants, net of cancellations, shares   2          
Common stock repurchased (2)         (2)  
Common stock retired     (2)     2  
Common stock dividends (231)     (231)      
Share-based compensation 20   20        
Contributions from noncontrolling interests 2           2
Distributions to noncontrolling interests (4)           (4)
Balance at Jun. 30, 2021 8,535 $ 68 8,189 243 (101) 0 136
Balance, shares at Jun. 30, 2021   677          
Balance at Dec. 31, 2021 9,399 $ 66 7,636 1,692 (132) 0 137
Balance, shares at Dec. 31, 2021   663          
Net earnings 2,933     2,921     12
Other comprehensive earnings (loss), net of tax 2       2    
Restricted stock grants, net of cancellations, value 2 $ 1 1        
Restricted stock grants, net of cancellations, shares   2          
Common stock repurchased (634)         (634)  
Common stock retired   $ (1) (620)     621  
Common stock retired, shares   (10)          
Common stock dividends (1,506)     (1,506)      
Share-based compensation 43   43        
Share-based compensation, shares   1          
Distributions to noncontrolling interests (13)           (13)
Balance at Jun. 30, 2022 10,226 $ 66 7,060 3,107 (130) (13) 136
Balance, shares at Jun. 30, 2022   656          
Balance at Mar. 31, 2022 9,435 $ 66 7,371 2,013 (131) (19) 135
Balance, shares at Mar. 31, 2022   661          
Net earnings 1,938     1,932     6
Other comprehensive earnings (loss), net of tax 1       1    
Restricted stock grants, net of cancellations, value 1 $ 1          
Common stock repurchased (329)         (329)  
Common stock retired   $ (1) (334)     335  
Common stock retired, shares   (5)          
Common stock dividends (838)     (838)      
Share-based compensation 23   23        
Distributions to noncontrolling interests (5)           (5)
Balance at Jun. 30, 2022 $ 10,226 $ 66 $ 7,060 $ 3,107 $ (130) $ (13) $ 136
Balance, shares at Jun. 30, 2022   656          
v3.22.2
Summary Of Significant Accounting Policies
6 Months Ended
Jun. 30, 2022
Accounting Policies [Abstract]  
Summary Of Significant Accounting Policies
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 2021 Annual Report on Form 10-K. The accompanying unaudited interim financial statements in this report reflect all adjustments that are, in the opinion of management, necessary for a fair statement of Devon’s results of operations and cash flows for the three-month and six-month periods ended June 30, 2022 and 2021 and Devon’s financial position as of June 30, 2022.

Devon and WPX completed an all-stock merger of equals on January 7, 2021. On the closing date of the Merger, each share of WPX common stock was automatically converted into the right to receive 0.5165 of a share of Devon common stock. The transaction has been accounted for using the acquisition method of accounting, with Devon being treated as the accounting acquirer. See Note 2 for further discussion.

Restricted Cash

As of June 30, 2022, Devon classified approximately $140 million of cash as restricted cash on the consolidated balance sheets for obligations retained related to the Barnett Shale assets and the Canadian business. Cash payments for these charges related to the Barnett assets and Canada business total approximately $10 million per quarter.

 

Variable Interest Entity

Cotton Draw Midstream, L.L.C. (“CDM”) is a joint venture entity formed by Devon and an affiliate of QL Capital Partners, LP. CDM provides gathering, compression and dehydration services for natural gas production in the Cotton Draw area of the Delaware Basin. 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, if material, on Devon's consolidated balance sheets.

 

Investments

In conjunction with the Merger, Devon acquired an interest in Catalyst, which is a joint venture established among WPX, an affiliate of Howard Energy Partners, LLC (“HEP”) and certain other investors, to develop oil gathering and natural gas processing infrastructure in the Stateline area of the Delaware Basin. Under the terms of the arrangement, Devon and a holding company owned by the other joint venture investors each have a 50% voting interest in the joint venture legal entity, and HEP serves as the operator. Through 2038, Devon’s production from 50,000 net acres in the Stateline area of the Delaware Basin has been dedicated to Catalyst subject to fixed-fee oil gathering and natural gas processing agreements. The agreements do not include any minimum volume commitments. Devon accounts for the investment in Catalyst as an equity method investment.

Devon's investment in Catalyst is shown within investments on the consolidated balance sheets and Devon's share of Catalyst earnings are reflected as a component of other, net in the accompanying consolidated statements of comprehensive earnings.

 

 

 

 

 

Carrying Amount

 

Investments

 

% Interest

 

June 30, 2022

 

 

December 31, 2021

 

Catalyst

 

50%

 

$

354

 

 

$

368

 

Other

 

Various

 

 

69

 

 

 

34

 

      Total

 

 

 

$

423

 

 

$

402

 

 

 

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 June 30,

 

 

Six Months Ended June 30,

 

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

Oil

 

$

2,970

 

 

$

1,686

 

 

$

5,376

 

 

$

3,017

 

Gas

 

 

557

 

 

 

188

 

 

 

864

 

 

 

390

 

NGL

 

 

573

 

 

 

280

 

 

 

1,035

 

 

 

504

 

Oil, gas and NGL sales

 

 

4,100

 

 

 

2,154

 

 

 

7,275

 

 

 

3,911

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Oil

 

 

952

 

 

 

610

 

 

 

1,728

 

 

 

1,109

 

Gas

 

 

322

 

 

 

134

 

 

 

531

 

 

 

281

 

NGL

 

 

422

 

 

 

222

 

 

 

757

 

 

 

397

 

Marketing and midstream revenues

 

 

1,696

 

 

 

966

 

 

 

3,016

 

 

 

1,787

 

Total revenues from contracts with customers

 

$

5,796

 

 

$

3,120

 

 

$

10,291

 

 

$

5,698

 

v3.22.2
Acquisition and Divestitures
6 Months Ended
Jun. 30, 2022
Business Combinations [Abstract]  
Acquisition and Divestitures

2. Acquisitions and Divestitures

WPX Merger

On January 7, 2021, Devon and WPX completed an all-stock merger of equals. WPX was 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 was automatically converted into the right to receive 0.5165 of a share of Devon common stock. No fractional shares of Devon’s common stock were issued in the Merger, and holders of WPX common stock instead received cash in lieu of fractional shares of Devon common stock, if any. Based on the closing price of Devon’s common stock on January 7, 2021, the total value of Devon common stock issued to holders of WPX common stock as part of this transaction was approximately $5.4 billion. The Merger was structured as a tax-free reorganization for United States federal income tax purposes. The final allocation of the total purchase price of WPX to the identifiable assets acquired and the liabilities assumed was finalized at December 31, 2021.

 

Acquisitions

In July 2022, Devon completed its acquisition of producing properties and leasehold interests located in the Williston Basin for cash consideration of approximately $830 million, net of purchase price adjustments. In the second quarter of 2022, Devon paid an $87 million cash deposit related to this acquisition, which is included within other current assets in the June 30, 2022 consolidated balance sheet and within acquisitions of property and equipment in the consolidated statement of cash flows.

 

Divestitures

In the first quarter of 2021, Devon completed the sale of non-core assets in the Rockies for proceeds of $9 million, net of purchase price adjustments, and recognized a $35 million gain related to the sale. Devon received $4 million in contingent earnout payments related to this transaction in the first quarter of 2022 with the potential for up to an additional $4 million in the future. The total estimated proved reserves associated with these divested assets was approximately 3 MMBoe.

 

Contingent Earnout Payments

Devon is entitled to contingent earnout payments associated with the sale of its Barnett Shale assets in 2020 with upside participation beginning at a $2.75 Henry Hub natural gas price or a $50 WTI oil price. The contingent payment period commenced on January 1, 2021 and has a term of four years. Devon received $65 million in contingent earnout payments related to this transaction in the first quarter of 2022 and could receive up to an additional $195 million in contingent earnout payments for the remaining performance periods depending on future commodity prices. The valuation of the future contingent earnout payments included within other current assets and other long-term assets in the June 30, 2022 consolidated balance sheet was approximately $65 million and $60 million, respectively. The value was derived utilizing a Monte Carlo valuation model and qualifies as a level 3 fair value measurement.

v3.22.2
Derivative Financial Instruments
6 Months Ended
Jun. 30, 2022
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, costless price collars and call options. Devon periodically enters into interest rate swaps to manage its exposure to interest rate volatility. As of June 30, 2022, 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 June 30, 2022, Devon neither held cash collateral of its counterparties nor posted cash collateral to its counterparties. Given Devon's current credit ratings and the terms of the underlying contracts, Devon is not currently required to post collateral to its counterparties with respect to its open derivative positions, and we would not be required to post any such collateral as a result of any change to the amount of Devon's net liability for such positions.

Commodity Derivatives

As of June 30, 2022, 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)

 

 

Q3-Q4 2022

 

 

35,000

 

 

$

44.61

 

 

 

36,500

 

 

$

57.96

 

 

$

78.08

 

 

Q1-Q4 2023

 

 

 

 

$

 

 

 

6,193

 

 

$

61.32

 

 

$

97.65

 

 

 

 

 

Oil Basis Swaps

 

Period

 

Index

 

Volume
(Bbls/d)

 

 

Weighted Average
Differential to WTI
($/Bbl)

 

Q3-Q4 2022

 

BRENT

 

 

1,000

 

 

$

(7.75

)

Q3-Q4 2022

 

NYMEX Roll

 

 

29,000

 

 

$

0.45

 

Q1-Q4 2023

 

Midland Sweet

 

 

12,296

 

 

$

0.52

 

 

As of June 30, 2022, 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 and the end of month NYMEX index. The second table presents Devon’s natural gas derivatives that settle against the respective indices noted within the table.

 

 

 

Price Swaps (1)

 

 

Price Collars (2)

 

Period

 

Volume (MMBtu/d)

 

 

Weighted Average Price ($/MMBtu)

 

 

Volume (MMBtu/d)

 

 

Weighted Average Floor Price ($/MMBtu)

 

 

Weighted Average
Ceiling Price ($/MMBtu)

 

Q3-Q4 2022

 

 

117,500

 

 

$

3.08

 

 

 

193,000

 

 

$

3.05

 

 

$

4.55

 

Q1-Q4 2023

 

 

8,658

 

 

$

5.24

 

 

 

96,436

 

 

$

3.55

 

 

$

7.63

 

 

(1)
Related to the 2022 open positions, 17,500 MMBtu/d settle against the Inside FERC first of month Henry Hub index at an average price of $5.25 and 100,000 MMBtu/d settle against the end of month NYMEX index at an average price of $2.70. All 2023 open positions settle against the Inside FERC first of month Henry Hub index.
(2)
Price collars settle against the Inside FERC first of month Henry Hub Index.

 

 

 

Natural Gas Basis Swaps

 

Period

 

Index

 

Volume
(MMBtu/d)

 

 

Weighted Average
Differential to
Henry Hub
($/MMBtu)

 

Q3-Q4 2022

 

El Paso Natural Gas

 

 

50,000

 

 

$

(0.85

)

Q3-Q4 2022

 

Houston Ship Channel

 

 

40,000

 

 

$

(0.15

)

Q3-Q4 2022

 

WAHA

 

 

70,000

 

 

$

(0.57

)

Q1-Q4 2023

 

El Paso Natural Gas

 

 

125,000

 

 

$

(1.59

)

Q1-Q4 2023

 

Houston Ship Channel

 

 

50,000

 

 

$

(0.13

)

Q1-Q4 2023

 

WAHA

 

 

70,000

 

 

$

(0.51

)

Q1-Q4 2024

 

WAHA

 

 

40,000

 

 

$

(0.51

)

 

As of June 30, 2022, Devon did not have any open NGL positions.

Financial Statement Presentation

All derivative financial instruments are recognized at their current fair value as either assets or liabilities in the consolidated balance sheets. Amounts related to contracts allowed to be netted upon payment subject to a master netting arrangement with the same counterparty are reported on a net basis in the consolidated balance sheets. The tables below present a summary of these positions as of June 30, 2022 and December 31, 2021.

 

June 30, 2022

 

 

December 31, 2021

 

 

 

 

Gross Fair Value

 

 

Amounts Netted

 

 

Net Fair Value

 

 

Gross Fair Value

 

 

Amounts Netted

 

 

Net Fair Value

 

 

Balance Sheet Classification

Commodity derivatives:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Short-term derivative asset

$

37

 

 

$

(26

)

 

$

11

 

 

$

6

 

 

$

(4

)

 

$

2

 

 

Other current assets

Long-term derivative asset

 

31

 

 

 

(1

)

 

 

30

 

 

 

6

 

 

 

 

 

 

6

 

 

Other long-term assets

Short-term derivative liability

 

(672

)

 

 

26

 

 

 

(646

)

 

 

(579

)

 

 

4

 

 

 

(575

)

 

Other current liabilities

Long-term derivative liability

 

(2

)

 

 

1

 

 

 

(1

)

 

 

(2

)

 

 

 

 

 

(2

)

 

Other long-term liabilities

Total derivative liability

$

(606

)

 

$

 

 

$

(606

)

 

$

(569

)

 

$

 

 

$

(569

)

 

 

v3.22.2
Share-Based Compensation
6 Months Ended
Jun. 30, 2022
Share-Based Payment Arrangement [Abstract]  
Share-Based Compensation
4.
Share-Based Compensation

In the second quarter of 2022, Devon's stockholders approved the 2022 Plan. The 2022 Plan replaces the 2017 Plan. From the effective date of the 2022 Plan, no further awards may be made under the 2017 Plan; however, awards previously granted will continue to be governed by the terms of the respective award documents. The 2022 Plan authorizes the grant of nonqualified and incentive stock options, restricted stock awards or units and stock appreciation rights to eligible employees. Restricted stock awards or restricted stock units granted under the 2022 Plan may be subject to performance-based conditions. The 2022 Plan also authorizes the grant of nonqualified stock options, restricted stock awards or units and stock appreciation rights to non-employee directors. To

calculate the number of shares that may be granted in awards under the 2022 Plan, options and stock appreciation rights represent one share and other awards represent 1.74 shares.

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 2021 in conjunction with the reduction of workforce described in Note 5 and is included in restructuring and transaction costs in the accompanying consolidated statements of comprehensive earnings.

 

 

 

Six Months Ended June 30,

 

 

 

2022

 

 

2021

 

G&A

 

$

42

 

 

$

40

 

Exploration expenses

 

 

1

 

 

 

 

Restructuring and transaction costs

 

 

 

 

 

21

 

Total

 

$

43

 

 

$

61

 

Related income tax benefit

 

$

26

 

 

$

 

 

 

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

 

 

 

Restricted Stock Awards & Units

 

 

Performance Share Units

 

 

 

Awards/Units

 

 

Weighted
Average
Grant-Date
Fair Value

 

 

Units

 

 

Weighted
Average
Grant-Date
Fair Value

 

 

 

(Thousands, except fair value data)

 

Unvested at 12/31/21

 

 

7,656

 

 

$

22.15

 

 

 

2,076

 

 

$

24.12

 

Granted

 

 

1,296

 

 

$

52.98

 

 

 

964

 

 

$

44.05

 

Vested

 

 

(3,104

)

 

$

23.00

 

 

 

(1,194

)

 

$

28.91

 

Forfeited

 

 

(59

)

 

$

33.03

 

 

 

(5

)

 

$

68.68

 

Unvested at 6/30/22

 

 

5,789

 

 

$

28.49

 

 

 

1,841

 

(1)

$

31.33

 

 

(1)
A maximum of 3.7 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 2022, as indicated in the previous summary table. The grants in the previous summary table also include the impact of performance share units granted in a prior year that vested higher than 100% of target due to Devon's TSR performance compared to our peers.

 

 

 

2022

 

Grant-date fair value

 

$

68.68

 

Risk-free interest rate

 

 

1.81

%

Volatility factor

 

 

70.1

%

Contractual term (years)

 

 

2.89

 

 

The following table presents a summary of the unrecognized compensation cost and the related weighted average recognition period associated with unvested awards and units as of June 30, 2022.

 

 

 

Restricted Stock

 

 

Performance

 

 

 

Awards/Units

 

 

Share Units

 

Unrecognized compensation cost

 

$

109

 

 

$

27

 

Weighted average period for recognition (years)

 

 

2.7

 

 

 

1.9

 

v3.22.2
Restructuring and Transaction Costs
6 Months Ended
Jun. 30, 2022
Restructuring and Related Activities [Abstract]  
Restructuring and Transaction Costs

5. Restructuring and Transaction Costs

The following table summarizes Devon’s restructuring and transaction costs.

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

Restructuring costs

 

$

 

 

$

23

 

 

$

 

 

$

166

 

Transaction costs

 

 

 

 

 

 

 

 

 

 

 

46

 

Total costs

 

$

 

 

$

23

 

 

$

 

 

$

212

 

 

In conjunction with the Merger closing, Devon recognized $166 million of restructuring expenses during the first six months of 2021 related to employee severance and termination benefits, settlements and curtailments from defined retirement benefits and contract terminations. Of these expenses, $40 million and $21 million resulted from settlements and curtailments of defined retirement benefits and accelerated vesting of share-based grants, respectively, which were non-cash charges. Additionally, in conjunction with the Merger closing, Devon recognized $46 million of transaction costs primarily comprised of bank, legal and accounting fees.

The following table summarizes Devon’s restructuring liabilities.

 

 

 

Other

 

 

Other

 

 

 

 

 

 

Current

 

 

Long-term

 

 

 

 

 

 

Liabilities

 

 

Liabilities

 

 

Total

 

Balance as of December 31, 2021

 

$

38

 

 

$

111

 

 

$

149

 

Changes related to prior years' restructurings

 

 

(10

)

 

 

(12

)

 

 

(22

)

Balance as of June 30, 2022

 

$

28

 

 

$

99

 

 

$

127

 

 

 

 

 

 

 

 

 

 

 

Balance as of December 31, 2020

 

$

35

 

 

$

137

 

 

$

172

 

Changes related to prior years' restructurings

 

 

48

 

 

 

(15

)

 

 

33

 

Balance as of June 30, 2021

 

$

83

 

 

$

122

 

 

$

205

 

v3.22.2
Other, Net
6 Months Ended
Jun. 30, 2022
Other Expenses [Abstract]  
Other, Net

6. Other, Net

The following table summarizes Devon's other expenses (income) presented in the accompanying consolidated comprehensive statement of earnings.

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

Estimated future obligation under a performance guarantee

 

$

 

 

$

(18

)

 

$

(96

)

 

$

(18

)

Ukraine charitable pledge

 

 

 

 

 

 

 

 

20

 

 

 

 

Asset retirement obligation accretion

 

 

6

 

 

 

7

 

 

 

13

 

 

 

14

 

Severance and other non-income tax refunds

 

 

 

 

 

(3

)

 

 

(3

)

 

 

(39

)

Other

 

 

4

 

 

 

 

 

 

15

 

 

 

 

Total

 

$

10

 

 

$

(14

)

 

$

(51

)

 

$

(43

)

 

The first six months of 2022 includes a $96 million benefit related to the revision of a future obligation under a performance guarantee liability for previously divested assets. Due to improved commodity prices and market conditions, the purchaser of these assets was able to fully satisfy a $35 million obligation due in the first quarter of 2022. Further, during the first quarter of 2022, Devon also reduced the estimated future exposure of the performance guarantee by $61 million based on probability-weighted cash flows for the remainder of the contract term of four years. Additionally, the first six months of 2021 included an $18 million benefit related to the revision of a future obligation under a performance guarantee liability for which the purchaser of these assets was able to partially satisfy an obligation.

 

The first six months of 2022 also includes a $20 million pledge for humanitarian relief for the Ukrainian people and surrounding countries supporting refugees.

 

During the first six months of 2021, Devon received severance and other non-income tax refunds of $39 million.

v3.22.2
Income Taxes
6 Months Ended
Jun. 30, 2022
Income Tax Disclosure [Abstract]  
Income Taxes

7. Income Taxes

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

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

Earnings before income taxes

 

$

2,495

 

 

$

304

 

 

$

3,757

 

 

$

272

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current income tax expense

 

$

252

 

 

$

19

 

 

$

355

 

 

$

14

 

Deferred income tax expense (benefit)

 

 

305

 

 

 

24

 

 

 

469

 

 

 

(219

)

Total income tax expense (benefit)

 

$

557

 

 

$

43

 

 

$

824

 

 

$

(205

)

 

U.S. statutory income tax rate

 

 

21

%

 

 

21

%

 

 

21

%

 

 

21

%

State income taxes

 

 

1

%

 

 

0

%

 

 

1

%

 

 

1

%

Subsidiary reorganization

 

 

0

%

 

 

6

%

 

 

0

%

 

 

7

%

Deferred tax asset valuation allowance

 

 

0

%

 

 

(19

%)

 

 

0

%

 

 

(116

%)

Other

 

 

0

%

 

 

6

%

 

 

0

%

 

 

12

%

Effective income tax rate

 

 

22

%

 

 

14

%

 

 

22

%

 

 

(75

%)

 

Prior to December 31, 2021, Devon maintained a valuation allowance against all U.S. federal deferred tax assets. Devon recognized approximately $250 million of deferred tax liabilities to account for the Merger. The recognition of these deferred tax liabilities caused a decrease to Devon’s net deferred tax assets and a corresponding decrease to the valuation allowance Devon had recognized on its U.S. federal deferred tax assets in the first quarter of 2021.

Due to significant increases in commodity pricing and projections of future income, in the fourth quarter of 2021, Devon reassessed its evaluation of the realizability of deferred tax assets in future years and determined that a U.S. federal valuation allowance was no longer necessary at December 31, 2021.

In the fourth quarter of 2020, Devon recorded a deferred tax asset representing the deductible outside basis difference in its investment in a consolidated subsidiary. In the second quarter of 2021, Devon realized this deferred tax asset, increasing its U.S. federal net operating loss carryforwards by $1.8 billion.

In the table above, the "other" effect for 2021 is composed primarily of permanent differences related to costs incurred in connection with the Merger. Such items represent $18 million of income tax expense in the first six months of 2021.

Pursuant to the tax sharing agreement with The Williams Companies, Inc. ("Williams") assumed in the Merger, Devon has remained responsible for the tax from audit adjustments related to the WPX business for periods prior to WPX’s spin-off from Williams on December 31, 2011. The 2011 consolidated tax filing by Williams was audited by the Internal Revenue Service (“IRS”) during which the IRS proposed adjustments related to the WPX business. After a lengthy appeals process, these matters were effectively settled with the IRS during the second quarter of 2022 upon review and approval by the Joint Committee on Taxation. Accordingly, Devon believes these matters have now been effectively settled with no material impacts to Devon.

v3.22.2
Net Earnings Per Share
6 Months Ended
Jun. 30, 2022
Earnings Per Share [Abstract]  
Net Earnings Per Share
8.
Net Earnings Per Share

The following table reconciles net earnings and weighted-average common shares outstanding used in the calculations of basic and diluted net earnings per share.

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

Net earnings:

 

 

 

 

 

 

 

 

 

 

 

 

Net earnings

 

$

1,932

 

 

$

256

 

 

$

2,921

 

 

$

469

 

Attributable to participating securities

 

 

(17

)

 

 

(3

)

 

 

(33

)

 

 

(5

)

Basic and diluted earnings

 

$

1,915

 

 

$

253

 

 

$

2,888

 

 

$

464

 

Common shares:

 

 

 

 

 

 

 

 

 

 

 

 

Common shares outstanding - total

 

 

658

 

 

 

677

 

 

 

661

 

 

 

666

 

Attributable to participating securities

 

 

(6

)

 

 

(6

)

 

 

(7

)

 

 

(6

)

Common shares outstanding - basic

 

 

652

 

 

 

671

 

 

 

654

 

 

 

660

 

Dilutive effect of potential common shares issuable

 

 

2

 

 

 

2

 

 

 

2

 

 

 

2

 

Common shares outstanding - diluted

 

 

654

 

 

 

673

 

 

 

656

 

 

 

662

 

Net earnings per share:

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

2.94

 

 

$

0.38

 

 

$

4.42

 

 

$

0.70

 

Diluted

 

$

2.93

 

 

$

0.38

 

 

$

4.40

 

 

$

0.70

 

v3.22.2
Other Comprehensive Earnings (Loss)
6 Months Ended
Jun. 30, 2022
Other Comprehensive Income (Loss), Net of Tax [Abstract]  
Other Comprehensive Earnings (Loss)

9. Other Comprehensive Earnings (Loss)

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

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

Pension and postretirement benefit plans:

 

 

 

 

 

 

 

 

 

 

 

 

Beginning accumulated pension and postretirement benefits

 

$

(131

)

 

$

(104

)

 

$

(132

)

 

$

(127

)

Recognition of net actuarial loss and prior service cost in earnings (1)

 

 

2

 

 

 

 

 

 

3

 

 

 

1

 

Settlement of pension benefits (2)

 

 

 

 

 

3

 

 

 

 

 

 

18

 

Other (3)

 

 

 

 

 

 

 

 

 

 

 

7

 

Income tax expense

 

 

(1

)

 

 

 

 

 

(1

)

 

 

 

Accumulated other comprehensive loss, net of tax

 

$

(130

)

 

$

(101

)

 

$

(130

)

 

$

(101

)

 

(1)
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, net in the accompanying consolidated statements of comprehensive earnings.
(2)
The Merger triggered settlement payments to certain plan participants, and the expense associated with this settlement is recognized as a component of restructuring and transaction costs in the accompanying consolidated statements of comprehensive earnings.
(3)
Other includes a remeasurement of the pension obligation due to the Merger, which was partially offset by a change in mortality assumption.
v3.22.2
Supplemental Information To Statements Of Cash Flows
6 Months Ended
Jun. 30, 2022
Supplemental Cash Flow Elements [Abstract]  
Supplemental Information To Statements Of Cash Flows
10.
Supplemental Information to Statements of Cash Flows

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

Changes in assets and liabilities, net:

 

 

 

 

 

 

 

 

 

 

 

 

Accounts receivable

 

$

(346

)

 

$

(100

)

 

$

(803

)

 

$

(163

)

Other current assets

 

 

(85

)

 

 

88

 

 

 

(21

)

 

 

78

 

Other long-term assets

 

 

9

 

 

 

(14

)

 

 

75

 

 

 

(24

)

Accounts payable and revenues and royalties payable

 

 

540

 

 

 

72

 

 

 

787

 

 

 

88

 

Other current liabilities

 

 

93

 

 

 

52

 

 

 

101

 

 

 

19

 

Other long-term liabilities

 

 

(13

)

 

 

(81

)

 

 

(84

)

 

 

(108

)

Total

 

$

198

 

 

$

17

 

 

$

55

 

 

$

(110

)

Supplementary cash flow data:

 

 

 

 

 

 

 

 

 

 

 

 

Interest paid

 

$

85

 

 

$

105

 

 

$

185

 

 

$

219

 

Income taxes paid (refunded)

 

$

133

 

 

$

(106

)

 

$

110

 

 

$

(112

)

v3.22.2
Accounts Receivable
6 Months Ended
Jun. 30, 2022
Accounts Receivable, after Allowance for Credit Loss [Abstract]  
Accounts Receivable
11.
Accounts Receivable

Components of accounts receivable include the following:

 

 

 

June 30, 2022

 

 

December 31, 2021

 

Oil, gas and NGL sales

 

$

1,520

 

 

$

984

 

Joint interest billings

 

 

192

 

 

 

158

 

Marketing and midstream revenues

 

 

602

 

 

 

370

 

Other

 

 

42

 

 

 

38

 

Gross accounts receivable

 

 

2,356

 

 

 

1,550

 

Allowance for doubtful accounts

 

 

(8

)

 

 

(7

)

Net accounts receivable

 

$

2,348

 

 

$

1,543

 

v3.22.2
Property, Plant and Equipment
6 Months Ended
Jun. 30, 2022
Extractive Industries [Abstract]  
Property, Plant and Equipment Property, Plant and Equipment

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

 

 

 

June 30, 2022

 

 

December 31, 2021

 

Property and equipment:

 

 

 

 

 

 

Proved

 

$

39,216

 

 

$

38,051

 

Unproved and properties under development

 

 

937

 

 

 

1,081

 

Total oil and gas

 

 

40,153

 

 

 

39,132

 

Less accumulated DD&A

 

 

(26,565

)

 

 

(25,596

)

Oil and gas property and equipment, net

 

 

13,588

 

 

 

13,536

 

Other property and equipment

 

 

2,224

 

 

 

2,139

 

Less accumulated DD&A

 

 

(699

)

 

 

(667

)

Other property and equipment, net (1)

 

 

1,525

 

 

 

1,472

 

Property and equipment, net

 

$

15,113

 

 

$

15,008

 

 

(1)
$122 million and $111 million related to CDM in 2022 and 2021, respectively.
v3.22.2
Debt And Related Expenses
6 Months Ended
Jun. 30, 2022
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.

 

 

 

June 30, 2022

 

 

December 31, 2021

 

8.25% due August 1, 2023

 

$

242

 

 

$

242

 

5.25% due September 15, 2024

 

 

472

 

 

 

472

 

5.85% due December 15, 2025

 

 

485

 

 

 

485

 

7.50% due September 15, 2027

 

 

73

 

 

 

73

 

5.25% due October 15, 2027

 

 

390

 

 

 

390

 

5.875% due June 15, 2028

 

 

325

 

 

 

325

 

4.50% due January 15, 2030

 

 

585

 

 

 

585

 

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 premium on debentures and notes

 

 

126

 

 

 

149

 

Debt issuance costs

 

 

(28

)

 

 

(30

)

Total long-term debt

 

$

6,461

 

 

$

6,482

 

 

Retirement of Senior Notes

In the first six months of 2021, Devon redeemed $43 million of the 6.00% senior notes due 2022, $175 million of the 5.875% senior notes due 2028, $315 million of the 4.50% senior notes due 2030, $210 million of the 5.35% senior notes due 2027 and $500 million of the 5.75% senior notes due 2026. In the first six months of 2021, Devon recognized $30 million of gains on early retirement of debt, consisting of $89 million of non-cash premium accelerations, partially offset by $59 million of cash retirement costs. The gain on early retirement is included in net financing costs in the consolidated comprehensive statements of earnings.

 

Credit Lines

Devon has a $3.0 billion Senior Credit Facility. As of June 30, 2022, 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 non-cash financial write-downs such as impairments. As of June 30, 2022, Devon was in compliance with this covenant with a debt-to-capitalization ratio of 23.9%.

Net Financing Costs

The following schedule includes the components of net financing costs.

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

Interest based on debt outstanding

 

$

93

 

 

$

98

 

 

$

185

 

 

$

203

 

Gain on early retirement of debt

 

 

 

 

 

(10

)

 

 

 

 

 

(30

)

Interest income

 

 

(2

)

 

 

 

 

 

(3

)

 

 

(1

)

Other

 

 

(7

)

 

 

(8

)

 

 

(13

)

 

 

(15

)

Total net financing costs

 

$

84

 

 

$

80

 

 

$

169

 

 

$

157

 

v3.22.2
Leases
6 Months Ended
Jun. 30, 2022
Leases [Abstract]  
Leases

14. Leases

The following table presents Devon’s right-of-use assets and lease liabilities as of June 30, 2022 and December 31, 2021.

 

 

 

June 30, 2022

 

 

December 31, 2021

 

 

 

Finance

 

 

Operating

 

 

Total

 

 

Finance

 

 

Operating

 

 

Total

 

Right-of-use assets

 

$

207

 

 

$

29

 

 

$

236

 

 

$

211

 

 

$

24

 

 

$

235

 

Lease liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current lease liabilities (1)

 

$

8

 

 

$

18

 

 

$

26

 

 

$

8

 

 

$

18

 

 

$

26

 

Long-term lease liabilities

 

 

248

 

 

 

11

 

 

 

259

 

 

 

247

 

 

 

5

 

 

 

252

 

Total lease liabilities

 

$

256

 

 

$

29

 

 

$

285

 

 

$

255

 

 

$

23

 

 

$

278

 

 

(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.

v3.22.2
Asset Retirement Obligations
6 Months Ended
Jun. 30, 2022
Asset Retirement Obligation Disclosure [Abstract]  
Asset Retirement Obligations
15.
Asset Retirement Obligations

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

 

 

 

Six Months Ended June 30,

 

 

 

2022

 

 

2021

 

Asset retirement obligations as of beginning of period

 

$

485

 

 

$

369

 

Assumed WPX obligations

 

 

 

 

 

98

 

Liabilities incurred

 

 

15

 

 

 

20

 

Liabilities settled and divested

 

 

(9

)

 

 

(47

)

Revision of estimated obligation

 

 

(35

)

 

 

11

 

Accretion expense on discounted obligation

 

 

13

 

 

 

14

 

Asset retirement obligations as of end of period

 

 

469

 

 

 

465

 

Less current portion

 

 

17

 

 

 

15

 

Asset retirement obligations, long-term

 

$

452

 

 

$

450

 

 

During the first six months of 2022, Devon reduced its asset retirement obligations by $35 million primarily due to extended retirement dates for oil and gas assets, partially offset by inflation-driven increases to current settlement costs.

v3.22.2
Stockholders' Equity
6 Months Ended
Jun. 30, 2022
Stockholders' Equity Note [Abstract]  
Stockholders' Equity
16.
Stockholders’ Equity

Share Repurchases

In November 2021, Devon authorized a share repurchase program of $1.0 billion with a December 31, 2022 expiration date. In February 2022, the Board of Directors authorized an expansion of the share repurchase program to $1.6 billion, and in May 2022, authorized a further expansion to $2.0 billion and extended the expiration date to May 4, 2023. The table below provides information regarding purchases of Devon’s common stock under the $2.0 billion share repurchase program (shares in thousands).

 

 

 

Total Number of
Shares Purchased

 

 

Dollar Value of
Shares Purchased

 

 

Average Price Paid
per Share

 

2021:

 

 

 

 

 

 

 

 

 

Fourth quarter

 

 

13,983

 

 

$

589

 

 

$

42.15

 

2022:

 

 

 

 

 

 

 

 

 

First quarter

 

 

3,979

 

 

$

230

 

 

$

57.74

 

Second quarter

 

 

5,052

 

 

 

318

 

 

$

63.07

 

Total plan

 

 

23,014

 

 

$

1,137

 

 

$

49.44

 

 

Dividends

Upon completion of the Merger, Devon continued its commitment to pay a quarterly dividend at a fixed rate and instituted a variable quarterly dividend, which is dependent on quarterly cash flows, among other factors. Devon raised its fixed quarterly dividend by 45%, to $0.16 per share, beginning in the first quarter of 2022 and again by 13%, to $0.18 per share, beginning in the third quarter of 2022. The following table summarizes Devon’s fixed and variable dividends for the first six months of 2022 and 2021, respectively.

 

 

Fixed

 

 

Variable

 

 

Total

 

 

Rate Per Share

 

2022:

 

 

 

 

 

 

 

 

 

 

 

First quarter

$

109

 

 

$

558

 

 

$

667

 

 

$

1.00

 

Second quarter

 

105

 

 

 

725

 

 

 

830

 

 

$

1.27

 

Total year-to-date

$

214

 

 

$

1,283

 

 

$

1,497

 

 

 

 

2021:

 

 

 

 

 

 

 

 

 

 

 

First quarter

$

76

 

 

$

127

 

 

$

203

 

 

$

0.30

 

Second quarter

 

75

 

 

 

154

 

 

 

229

 

 

$

0.34

 

Total year-to-date

$

151

 

 

$

281

 

 

$

432

 

 

 

 

 

In August 2022, Devon announced a cash dividend in the amount of $1.55 per share payable in the third quarter of 2022. The dividend consists of an $0.18 per share fixed quarterly dividend and a $1.37 per share variable quarterly dividend and will total approximately $1.0 billion.

Noncontrolling Interests

The noncontrolling interests’ share of CDM’s net earnings and the contributions from and distributions to the noncontrolling interests are presented as components of equity.

v3.22.2
Commitments and Contingencies
6 Months Ended
Jun. 30, 2022
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies
17.
Commitments and Contingencies

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

Royalty Matters

Numerous oil and natural gas producers and related parties, including Devon, have been named in various lawsuits alleging royalty underpayments. Devon is currently named as a defendant in a number of such lawsuits, including some lawsuits in which the plaintiffs seek to certify classes of similarly situated plaintiffs. Among the allegations typically asserted in these suits are claims that Devon used below-market prices, made improper deductions, paid royalty proceeds in an untimely manner without including required interest, 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. As of June 30, 2022, Devon has accrued approximately $25 million in other current liabilities pertaining to such royalty matters.

Environmental and Climate Change Matters

Devon’s business is subject to numerous federal, state, tribal and local laws and regulations governing the discharge of materials into the environment or otherwise relating to environmental protection. Failure to comply with these laws and regulations may result in the assessment of administrative, civil and criminal fines and penalties, as well as remediation costs. Although Devon believes that it is in substantial compliance with applicable environmental laws and regulations and that continued compliance with existing requirements will not have a material adverse impact on its business, there can be no assurance that this will continue in the future.

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, 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 intends to vigorously defend against these claims.

The State of Delaware and various municipalities and other governmental and private parties in California have filed legal proceedings against numerous 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 intends to vigorously defend against the proceedings.

Other Indemnifications and Legacy Matters

Pursuant to various sale agreements relating to divested businesses and assets, Devon has indemnified various purchasers against liabilities that they may incur with respect to the businesses and assets acquired from Devon. Additionally, federal, state and other laws in areas of former operations may require previous operators (including corporate successors of previous operators) to perform or make payments in certain circumstances where the current operator may no longer be able to satisfy the applicable obligation. Such obligations may include plugging and abandoning wells, removing production facilities or performing requirements under surface agreements in existence at the time of disposition.

In November 2020, the Department of the Interior, Bureau of Safety and Environmental Enforcement, ordered several oil and gas operators, including Devon, to perform decommissioning and reclamation activities related to two California offshore oil and gas production platforms and related facilities. The current operator and owner of the platforms contends that it does not have the financial ability to perform these obligations and relinquished the related federal lease in October 2020. In response to the apparent insolvency of the current operator, the government has ordered the former operators and alleged former lease record title owners to decommission the platforms and related facilities. The government contends that an alleged corporate predecessor of Devon owned a partial interest in the subject lease and platforms. Although Devon cannot predict the ultimate outcome of this matter, Devon denies any obligation to decommission the subject platforms, has appealed the order, and believes any decommissioning obligation related to the subject platforms should be assumed by others.

v3.22.2
Fair Value Measurements
6 Months Ended
Jun. 30, 2022
Fair Value Disclosures [Abstract]  
Fair Value Measurements
18.
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, accounts receivable, other current receivables, accounts payable, other current payables, accrued expenses and lease liabilities included in the accompanying consolidated balance sheets approximated fair value at June 30, 2022 and December 31, 2021, as applicable. Therefore, such financial assets and liabilities are not presented in the following table.

 

 

 

 

 

 

 

 

 

Fair Value Measurements Using:

 

 

 

Carrying

 

 

Total Fair

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

 

Amount

 

 

Value

 

 

Inputs

 

 

Inputs

 

 

Inputs

 

June 30, 2022 assets (liabilities):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash equivalents

 

$

3,063

 

 

$

3,063

 

 

$

3,063

 

 

$

 

 

$

 

Commodity derivatives

 

$

41

 

 

$

41

 

 

$

 

 

$

41

 

 

$

 

Commodity derivatives

 

$

(647

)

 

$

(647

)

 

$

 

 

$

(647

)

 

$

 

Debt

 

$

(6,461

)

 

$

(6,440

)

 

$

 

 

$

(6,440

)

 

$

 

Contingent earnout payments

 

$

129

 

 

$

129

 

 

$

 

 

$

 

 

$

129

 

December 31, 2021 assets (liabilities):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash equivalents

 

$

1,421

 

 

$

1,421

 

 

$

1,421

 

 

$

 

 

$

 

Commodity derivatives

 

$

8

 

 

$

8

 

 

$

 

 

$

8

 

 

$

 

Commodity derivatives

 

$

(577

)

 

$

(577

)

 

$

 

 

$

(577

)

 

$

 

Debt

 

$

(6,482

)

 

$

(7,644

)

 

$

 

 

$

(7,644

)

 

$

 

Contingent earnout payments

 

$

184

 

 

$

184

 

 

$

 

 

$

 

 

$

184

 

 

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.

Level 3 Fair Value Measurements

Contingent Earnout Payments – Devon has the right to receive contingent consideration related to the Barnett and non-core Rockies asset divestitures based on future oil and gas prices. These values were derived using a Monte Carlo valuation model and qualify as a level 3 fair value measurement. For additional information, see Note 2.

v3.22.2
Summary Of Significant Accounting Policies (Policies)
6 Months Ended
Jun. 30, 2022
Accounting Policies [Abstract]  
Restricted Cash

Restricted Cash

As of June 30, 2022, Devon classified approximately $140 million of cash as restricted cash on the consolidated balance sheets for obligations retained related to the Barnett Shale assets and the Canadian business. Cash payments for these charges related to the Barnett assets and Canada business total approximately $10 million per quarter.

Variable Interest Entity

Variable Interest Entity

Cotton Draw Midstream, L.L.C. (“CDM”) is a joint venture entity formed by Devon and an affiliate of QL Capital Partners, LP. CDM provides gathering, compression and dehydration services for natural gas production in the Cotton Draw area of the Delaware Basin. 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, if material, on Devon's consolidated balance sheets.

Investments

Investments

In conjunction with the Merger, Devon acquired an interest in Catalyst, which is a joint venture established among WPX, an affiliate of Howard Energy Partners, LLC (“HEP”) and certain other investors, to develop oil gathering and natural gas processing infrastructure in the Stateline area of the Delaware Basin. Under the terms of the arrangement, Devon and a holding company owned by the other joint venture investors each have a 50% voting interest in the joint venture legal entity, and HEP serves as the operator. Through 2038, Devon’s production from 50,000 net acres in the Stateline area of the Delaware Basin has been dedicated to Catalyst subject to fixed-fee oil gathering and natural gas processing agreements. The agreements do not include any minimum volume commitments. Devon accounts for the investment in Catalyst as an equity method investment.

Devon's investment in Catalyst is shown within investments on the consolidated balance sheets and Devon's share of Catalyst earnings are reflected as a component of other, net in the accompanying consolidated statements of comprehensive earnings.

 

 

 

 

 

Carrying Amount

 

Investments

 

% Interest

 

June 30, 2022

 

 

December 31, 2021

 

Catalyst

 

50%

 

$

354

 

 

$

368

 

Other

 

Various

 

 

69

 

 

 

34

 

      Total

 

 

 

$

423

 

 

$

402

 

 

Commitments And Contingencies

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

v3.22.2
Summary Of Significant Accounting Policies (Tables)
6 Months Ended
Jun. 30, 2022
Accounting Policies [Abstract]  
Schedule of Components of Investment

Devon's investment in Catalyst is shown within investments on the consolidated balance sheets and Devon's share of Catalyst earnings are reflected as a component of other, net in the accompanying consolidated statements of comprehensive earnings.

 

 

 

 

 

Carrying Amount

 

Investments

 

% Interest

 

June 30, 2022

 

 

December 31, 2021

 

Catalyst

 

50%

 

$

354

 

 

$

368

 

Other

 

Various

 

 

69

 

 

 

34

 

      Total

 

 

 

$

423

 

 

$

402

 

 

Schedule of Revenue from Contracts with Customers

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

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

Oil

 

$

2,970

 

 

$

1,686

 

 

$

5,376

 

 

$

3,017

 

Gas

 

 

557

 

 

 

188

 

 

 

864

 

 

 

390

 

NGL

 

 

573

 

 

 

280

 

 

 

1,035

 

 

 

504

 

Oil, gas and NGL sales

 

 

4,100

 

 

 

2,154

 

 

 

7,275

 

 

 

3,911

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Oil

 

 

952

 

 

 

610

 

 

 

1,728

 

 

 

1,109

 

Gas

 

 

322

 

 

 

134

 

 

 

531

 

 

 

281

 

NGL

 

 

422

 

 

 

222

 

 

 

757

 

 

 

397

 

Marketing and midstream revenues

 

 

1,696

 

 

 

966

 

 

 

3,016

 

 

 

1,787

 

Total revenues from contracts with customers

 

$

5,796

 

 

$

3,120

 

 

$

10,291

 

 

$

5,698

 

v3.22.2
Derivative Financial Instruments (Tables)
6 Months Ended
Jun. 30, 2022
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule Of Open Derivative Positions

Commodity Derivatives

As of June 30, 2022, 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)

 

 

Q3-Q4 2022

 

 

35,000

 

 

$

44.61

 

 

 

36,500

 

 

$

57.96

 

 

$

78.08

 

 

Q1-Q4 2023

 

 

 

 

$

 

 

 

6,193

 

 

$

61.32

 

 

$

97.65

 

 

 

 

 

Oil Basis Swaps

 

Period

 

Index

 

Volume
(Bbls/d)

 

 

Weighted Average
Differential to WTI
($/Bbl)

 

Q3-Q4 2022

 

BRENT

 

 

1,000

 

 

$

(7.75

)

Q3-Q4 2022

 

NYMEX Roll

 

 

29,000

 

 

$

0.45

 

Q1-Q4 2023

 

Midland Sweet

 

 

12,296

 

 

$

0.52

 

 

As of June 30, 2022, 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 and the end of month NYMEX index. The second table presents Devon’s natural gas derivatives that settle against the respective indices noted within the table.

 

 

 

Price Swaps (1)

 

 

Price Collars (2)

 

Period

 

Volume (MMBtu/d)

 

 

Weighted Average Price ($/MMBtu)

 

 

Volume (MMBtu/d)

 

 

Weighted Average Floor Price ($/MMBtu)

 

 

Weighted Average
Ceiling Price ($/MMBtu)

 

Q3-Q4 2022

 

 

117,500

 

 

$

3.08

 

 

 

193,000

 

 

$

3.05

 

 

$

4.55

 

Q1-Q4 2023

 

 

8,658

 

 

$

5.24

 

 

 

96,436

 

 

$

3.55

 

 

$

7.63

 

 

(1)
Related to the 2022 open positions, 17,500 MMBtu/d settle against the Inside FERC first of month Henry Hub index at an average price of $5.25 and 100,000 MMBtu/d settle against the end of month NYMEX index at an average price of $2.70. All 2023 open positions settle against the Inside FERC first of month Henry Hub index.
(2)
Price collars settle against the Inside FERC first of month Henry Hub Index.

 

 

 

Natural Gas Basis Swaps

 

Period

 

Index

 

Volume
(MMBtu/d)

 

 

Weighted Average
Differential to
Henry Hub
($/MMBtu)

 

Q3-Q4 2022

 

El Paso Natural Gas

 

 

50,000

 

 

$

(0.85

)

Q3-Q4 2022

 

Houston Ship Channel

 

 

40,000

 

 

$

(0.15

)

Q3-Q4 2022

 

WAHA

 

 

70,000

 

 

$

(0.57

)

Q1-Q4 2023

 

El Paso Natural Gas

 

 

125,000

 

 

$

(1.59

)

Q1-Q4 2023

 

Houston Ship Channel

 

 

50,000

 

 

$

(0.13

)

Q1-Q4 2023

 

WAHA

 

 

70,000

 

 

$

(0.51

)

Q1-Q4 2024

 

WAHA

 

 

40,000

 

 

$

(0.51

)

 

As of June 30, 2022, Devon did not have any open NGL positions.

Schedule Of Derivative Financial Instruments Included In The Consolidated Balance Sheets

Financial Statement Presentation

All derivative financial instruments are recognized at their current fair value as either assets or liabilities in the consolidated balance sheets. Amounts related to contracts allowed to be netted upon payment subject to a master netting arrangement with the same counterparty are reported on a net basis in the consolidated balance sheets. The tables below present a summary of these positions as of June 30, 2022 and December 31, 2021.

 

June 30, 2022

 

 

December 31, 2021

 

 

 

 

Gross Fair Value

 

 

Amounts Netted

 

 

Net Fair Value

 

 

Gross Fair Value

 

 

Amounts Netted

 

 

Net Fair Value

 

 

Balance Sheet Classification

Commodity derivatives:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Short-term derivative asset

$

37

 

 

$

(26

)

 

$

11

 

 

$

6

 

 

$

(4

)

 

$

2

 

 

Other current assets

Long-term derivative asset

 

31

 

 

 

(1

)

 

 

30

 

 

 

6

 

 

 

 

 

 

6

 

 

Other long-term assets

Short-term derivative liability

 

(672

)

 

 

26

 

 

 

(646

)

 

 

(579

)

 

 

4

 

 

 

(575

)

 

Other current liabilities

Long-term derivative liability

 

(2

)

 

 

1

 

 

 

(1

)

 

 

(2

)

 

 

 

 

 

(2

)

 

Other long-term liabilities

Total derivative liability

$

(606

)

 

$

 

 

$

(606

)

 

$

(569

)

 

$

 

 

$

(569

)

 

 

v3.22.2
Share-Based Compensation (Tables)
6 Months Ended
Jun. 30, 2022
Share-Based Payment Arrangement [Abstract]  
Schedule Of Share-Based Compensation Expense Included In The Consolidated Statements Of Comprehensive Earnings The vesting for certain share-based awards was accelerated in 2021 in conjunction with the reduction of workforce described in Note 5 and is included in restructuring and transaction costs in the accompanying consolidated statements of comprehensive earnings.

 

 

 

Six Months Ended June 30,

 

 

 

2022

 

 

2021

 

G&A

 

$

42

 

 

$

40

 

Exploration expenses

 

 

1

 

 

 

 

Restructuring and transaction costs

 

 

 

 

 

21

 

Total

 

$

43

 

 

$

61

 

Related income tax benefit

 

$

26

 

 

$

 

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

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

 

 

 

Restricted Stock Awards & Units

 

 

Performance Share Units

 

 

 

Awards/Units

 

 

Weighted
Average
Grant-Date
Fair Value

 

 

Units

 

 

Weighted
Average
Grant-Date
Fair Value

 

 

 

(Thousands, except fair value data)

 

Unvested at 12/31/21

 

 

7,656

 

 

$

22.15

 

 

 

2,076

 

 

$

24.12

 

Granted

 

 

1,296

 

 

$

52.98

 

 

 

964

 

 

$

44.05

 

Vested

 

 

(3,104

)

 

$

23.00

 

 

 

(1,194

)

 

$

28.91

 

Forfeited

 

 

(59

)

 

$

33.03

 

 

 

(5

)

 

$

68.68

 

Unvested at 6/30/22

 

 

5,789

 

 

$

28.49

 

 

 

1,841

 

(1)

$

31.33

 

 

(1)
A maximum of 3.7 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

The following table presents the assumptions related to the performance share units granted in 2022, as indicated in the previous summary table. The grants in the previous summary table also include the impact of performance share units granted in a prior year that vested higher than 100% of target due to Devon's TSR performance compared to our peers.

 

 

 

2022

 

Grant-date fair value

 

$

68.68

 

Risk-free interest rate

 

 

1.81

%

Volatility factor

 

 

70.1

%

Contractual term (years)

 

 

2.89

 

Summary of Unrecognized Compensation Cost And Weighted Average Period For Recognition

The following table presents a summary of the unrecognized compensation cost and the related weighted average recognition period associated with unvested awards and units as of June 30, 2022.

 

 

 

Restricted Stock

 

 

Performance

 

 

 

Awards/Units

 

 

Share Units

 

Unrecognized compensation cost

 

$

109

 

 

$

27

 

Weighted average period for recognition (years)

 

 

2.7

 

 

 

1.9

 

v3.22.2
Restructuring and Transaction Costs (Tables)
6 Months Ended
Jun. 30, 2022
Restructuring and Related Activities [Abstract]  
Schedule Of Restructuring And Transaction Costs

The following table summarizes Devon’s restructuring and transaction costs.

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

Restructuring costs

 

$

 

 

$

23

 

 

$

 

 

$

166

 

Transaction costs

 

 

 

 

 

 

 

 

 

 

 

46

 

Total costs

 

$

 

 

$

23

 

 

$

 

 

$

212

 

Schedule Of The Activity And Balances Associated With Restructuring Liabilities

The following table summarizes Devon’s restructuring liabilities.

 

 

 

Other

 

 

Other

 

 

 

 

 

 

Current

 

 

Long-term

 

 

 

 

 

 

Liabilities

 

 

Liabilities

 

 

Total

 

Balance as of December 31, 2021

 

$

38

 

 

$

111

 

 

$

149

 

Changes related to prior years' restructurings

 

 

(10

)

 

 

(12

)

 

 

(22

)

Balance as of June 30, 2022

 

$

28

 

 

$

99

 

 

$

127

 

 

 

 

 

 

 

 

 

 

 

Balance as of December 31, 2020

 

$

35

 

 

$

137

 

 

$

172

 

Changes related to prior years' restructurings

 

 

48

 

 

 

(15

)

 

 

33

 

Balance as of June 30, 2021

 

$

83

 

 

$

122

 

 

$

205

 

v3.22.2
Other, Net (Tables)
6 Months Ended
Jun. 30, 2022
Other Expenses [Abstract]  
Schedule of Other Expenses (Income)

The following table summarizes Devon's other expenses (income) presented in the accompanying consolidated comprehensive statement of earnings.

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

Estimated future obligation under a performance guarantee

 

$

 

 

$

(18

)

 

$

(96

)

 

$

(18

)

Ukraine charitable pledge

 

 

 

 

 

 

 

 

20

 

 

 

 

Asset retirement obligation accretion

 

 

6

 

 

 

7

 

 

 

13

 

 

 

14

 

Severance and other non-income tax refunds

 

 

 

 

 

(3

)

 

 

(3

)

 

 

(39

)

Other

 

 

4

 

 

 

 

 

 

15

 

 

 

 

Total

 

$

10

 

 

$

(14

)

 

$

(51

)

 

$

(43

)

v3.22.2
Income Taxes (Tables)
6 Months Ended
Jun. 30, 2022
Income Tax Disclosure [Abstract]  
Schedule of Components of Income Tax Expense (Benefit)

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

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

Earnings before income taxes

 

$

2,495

 

 

$

304

 

 

$

3,757

 

 

$

272

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current income tax expense

 

$

252

 

 

$

19

 

 

$

355

 

 

$

14

 

Deferred income tax expense (benefit)

 

 

305

 

 

 

24

 

 

 

469

 

 

 

(219

)

Total income tax expense (benefit)

 

$

557

 

 

$

43

 

 

$

824

 

 

$

(205

)

Schedule of Effective Income Tax Rate Reconciliation

U.S. statutory income tax rate

 

 

21

%

 

 

21

%

 

 

21

%

 

 

21

%

State income taxes

 

 

1

%

 

 

0

%

 

 

1

%

 

 

1

%

Subsidiary reorganization

 

 

0

%

 

 

6

%

 

 

0

%

 

 

7

%

Deferred tax asset valuation allowance

 

 

0

%

 

 

(19

%)

 

 

0

%

 

 

(116

%)

Other

 

 

0

%

 

 

6

%

 

 

0

%

 

 

12

%

Effective income tax rate

 

 

22

%

 

 

14

%

 

 

22

%

 

 

(75

%)

v3.22.2
Net Earnings Per Share (Tables)
6 Months Ended
Jun. 30, 2022
Earnings Per Share [Abstract]  
Net Earnings (Loss) Per Share Computations from Continuing Operations

The following table reconciles net earnings and weighted-average common shares outstanding used in the calculations of basic and diluted net earnings per share.

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

Net earnings:

 

 

 

 

 

 

 

 

 

 

 

 

Net earnings

 

$

1,932

 

 

$

256

 

 

$

2,921

 

 

$

469

 

Attributable to participating securities

 

 

(17

)

 

 

(3

)

 

 

(33

)

 

 

(5

)

Basic and diluted earnings

 

$

1,915

 

 

$

253

 

 

$

2,888

 

 

$

464

 

Common shares:

 

 

 

 

 

 

 

 

 

 

 

 

Common shares outstanding - total

 

 

658

 

 

 

677

 

 

 

661

 

 

 

666

 

Attributable to participating securities

 

 

(6

)

 

 

(6

)

 

 

(7

)

 

 

(6

)

Common shares outstanding - basic

 

 

652

 

 

 

671

 

 

 

654

 

 

 

660

 

Dilutive effect of potential common shares issuable

 

 

2

 

 

 

2

 

 

 

2

 

 

 

2

 

Common shares outstanding - diluted

 

 

654

 

 

 

673

 

 

 

656

 

 

 

662

 

Net earnings per share:

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

2.94

 

 

$

0.38

 

 

$

4.42

 

 

$

0.70

 

Diluted

 

$

2.93

 

 

$

0.38

 

 

$

4.40

 

 

$

0.70

 

v3.22.2
Other Comprehensive Earnings (Loss) (Tables)
6 Months Ended
Jun. 30, 2022
Other Comprehensive Income (Loss), Net of Tax [Abstract]  
Components Of Other Comprehensive Earnings (Loss)

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

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

Pension and postretirement benefit plans:

 

 

 

 

 

 

 

 

 

 

 

 

Beginning accumulated pension and postretirement benefits

 

$

(131

)

 

$

(104

)

 

$

(132

)

 

$

(127

)

Recognition of net actuarial loss and prior service cost in earnings (1)

 

 

2

 

 

 

 

 

 

3

 

 

 

1

 

Settlement of pension benefits (2)

 

 

 

 

 

3

 

 

 

 

 

 

18

 

Other (3)

 

 

 

 

 

 

 

 

 

 

 

7

 

Income tax expense

 

 

(1

)

 

 

 

 

 

(1

)

 

 

 

Accumulated other comprehensive loss, net of tax

 

$

(130

)

 

$

(101

)

 

$

(130

)

 

$

(101

)

 

(1)
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, net in the accompanying consolidated statements of comprehensive earnings.
(2)
The Merger triggered settlement payments to certain plan participants, and the expense associated with this settlement is recognized as a component of restructuring and transaction costs in the accompanying consolidated statements of comprehensive earnings.
(3)
Other includes a remeasurement of the pension obligation due to the Merger, which was partially offset by a change in mortality assumption.
v3.22.2
Supplemental Information To Statements Of Cash Flows (Tables)
6 Months Ended
Jun. 30, 2022
Supplemental Cash Flow Elements [Abstract]  
Schedule Of Supplemental Information To Statements Of Cash Flows

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

Changes in assets and liabilities, net:

 

 

 

 

 

 

 

 

 

 

 

 

Accounts receivable

 

$

(346

)

 

$

(100

)

 

$

(803

)

 

$

(163

)

Other current assets

 

 

(85

)

 

 

88

 

 

 

(21

)

 

 

78

 

Other long-term assets

 

 

9

 

 

 

(14

)

 

 

75

 

 

 

(24

)

Accounts payable and revenues and royalties payable

 

 

540

 

 

 

72

 

 

 

787

 

 

 

88

 

Other current liabilities

 

 

93

 

 

 

52

 

 

 

101

 

 

 

19

 

Other long-term liabilities

 

 

(13

)

 

 

(81

)

 

 

(84

)

 

 

(108

)

Total

 

$

198

 

 

$

17

 

 

$

55

 

 

$

(110

)

Supplementary cash flow data:

 

 

 

 

 

 

 

 

 

 

 

 

Interest paid

 

$

85

 

 

$

105

 

 

$

185

 

 

$

219

 

Income taxes paid (refunded)

 

$

133

 

 

$

(106

)

 

$

110

 

 

$

(112

)

v3.22.2
Accounts Receivable (Tables)
6 Months Ended
Jun. 30, 2022
Accounts Receivable, after Allowance for Credit Loss [Abstract]  
Schedule Of Components Of Accounts Receivable

Components of accounts receivable include the following:

 

 

 

June 30, 2022

 

 

December 31, 2021

 

Oil, gas and NGL sales

 

$

1,520

 

 

$

984

 

Joint interest billings

 

 

192

 

 

 

158

 

Marketing and midstream revenues

 

 

602

 

 

 

370

 

Other

 

 

42

 

 

 

38

 

Gross accounts receivable

 

 

2,356

 

 

 

1,550

 

Allowance for doubtful accounts

 

 

(8

)

 

 

(7

)

Net accounts receivable

 

$

2,348

 

 

$

1,543

 

v3.22.2
Property, Plant and Equipment (Tables)
6 Months Ended
Jun. 30, 2022
Extractive Industries [Abstract]  
Table of Property and Equipment, net

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

 

 

 

June 30, 2022

 

 

December 31, 2021

 

Property and equipment:

 

 

 

 

 

 

Proved

 

$

39,216

 

 

$

38,051

 

Unproved and properties under development

 

 

937

 

 

 

1,081

 

Total oil and gas

 

 

40,153

 

 

 

39,132

 

Less accumulated DD&A

 

 

(26,565

)

 

 

(25,596

)

Oil and gas property and equipment, net

 

 

13,588

 

 

 

13,536

 

Other property and equipment

 

 

2,224

 

 

 

2,139

 

Less accumulated DD&A

 

 

(699

)

 

 

(667

)

Other property and equipment, net (1)

 

 

1,525

 

 

 

1,472

 

Property and equipment, net

 

$

15,113

 

 

$

15,008

 

 

(1)
$122 million and $111 million related to CDM in 2022 and 2021, respectively.
v3.22.2
Debt And Related Expenses (Tables)
6 Months Ended
Jun. 30, 2022
Debt Instrument [Line Items]  
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.

 

 

 

June 30, 2022

 

 

December 31, 2021

 

8.25% due August 1, 2023

 

$

242

 

 

$

242

 

5.25% due September 15, 2024

 

 

472

 

 

 

472

 

5.85% due December 15, 2025

 

 

485

 

 

 

485

 

7.50% due September 15, 2027

 

 

73

 

 

 

73

 

5.25% due October 15, 2027

 

 

390

 

 

 

390

 

5.875% due June 15, 2028

 

 

325

 

 

 

325

 

4.50% due January 15, 2030

 

 

585

 

 

 

585

 

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 premium on debentures and notes

 

 

126

 

 

 

149

 

Debt issuance costs

 

 

(28

)

 

 

(30

)

Total long-term debt

 

$

6,461

 

 

$

6,482

 

Schedule Of Net Financing Cost Components

The following schedule includes the components of net financing costs.

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

Interest based on debt outstanding

 

$

93

 

 

$

98

 

 

$

185

 

 

$

203

 

Gain on early retirement of debt

 

 

 

 

 

(10

)

 

 

 

 

 

(30

)

Interest income

 

 

(2

)

 

 

 

 

 

(3

)

 

 

(1

)

Other

 

 

(7

)

 

 

(8

)

 

 

(13

)

 

 

(15

)

Total net financing costs

 

$

84

 

 

$

80

 

 

$

169

 

 

$

157

 

v3.22.2
Leases (Tables)
6 Months Ended
Jun. 30, 2022
Leases [Abstract]  
Schedule of Right-of-use Assets and Lease Liabilities

The following table presents Devon’s right-of-use assets and lease liabilities as of June 30, 2022 and December 31, 2021.

 

 

 

June 30, 2022

 

 

December 31, 2021

 

 

 

Finance

 

 

Operating

 

 

Total

 

 

Finance

 

 

Operating

 

 

Total

 

Right-of-use assets

 

$

207

 

 

$

29

 

 

$

236

 

 

$

211

 

 

$

24

 

 

$

235

 

Lease liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current lease liabilities (1)

 

$

8

 

 

$

18

 

 

$

26

 

 

$

8

 

 

$

18

 

 

$

26

 

Long-term lease liabilities

 

 

248

 

 

 

11

 

 

 

259

 

 

 

247

 

 

 

5

 

 

 

252

 

Total lease liabilities

 

$

256

 

 

$

29

 

 

$

285

 

 

$

255

 

 

$

23

 

 

$

278

 

 

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

v3.22.2
Asset Retirement Obligations (Tables)
6 Months Ended
Jun. 30, 2022
Asset Retirement Obligation Disclosure [Abstract]  
Summary Of Changes In Asset Retirement Obligations

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

 

 

 

Six Months Ended June 30,

 

 

 

2022

 

 

2021

 

Asset retirement obligations as of beginning of period

 

$

485

 

 

$

369

 

Assumed WPX obligations

 

 

 

 

 

98

 

Liabilities incurred

 

 

15

 

 

 

20

 

Liabilities settled and divested

 

 

(9

)

 

 

(47

)

Revision of estimated obligation

 

 

(35

)

 

 

11

 

Accretion expense on discounted obligation

 

 

13

 

 

 

14

 

Asset retirement obligations as of end of period

 

 

469

 

 

 

465

 

Less current portion

 

 

17

 

 

 

15

 

Asset retirement obligations, long-term

 

$

452

 

 

$

450

 

v3.22.2
Stockholders' Equity (Tables)
6 Months Ended
Jun. 30, 2022
Stockholders' Equity Note [Abstract]  
Summary of Purchases of Common Stock The table below provides information regarding purchases of Devon’s common stock under the $2.0 billion share repurchase program (shares in thousands).

 

 

 

Total Number of
Shares Purchased

 

 

Dollar Value of
Shares Purchased

 

 

Average Price Paid
per Share

 

2021:

 

 

 

 

 

 

 

 

 

Fourth quarter

 

 

13,983

 

 

$

589

 

 

$

42.15

 

2022:

 

 

 

 

 

 

 

 

 

First quarter

 

 

3,979

 

 

$

230

 

 

$

57.74

 

Second quarter

 

 

5,052

 

 

 

318

 

 

$

63.07

 

Total plan

 

 

23,014

 

 

$

1,137

 

 

$

49.44

 

Schedule of Dividends Payable The following table summarizes Devon’s fixed and variable dividends for the first six months of 2022 and 2021, respectively.

 

 

Fixed

 

 

Variable

 

 

Total

 

 

Rate Per Share

 

2022:

 

 

 

 

 

 

 

 

 

 

 

First quarter

$

109

 

 

$

558

 

 

$

667

 

 

$

1.00

 

Second quarter

 

105

 

 

 

725

 

 

 

830

 

 

$

1.27

 

Total year-to-date

$

214

 

 

$

1,283

 

 

$

1,497

 

 

 

 

2021:

 

 

 

 

 

 

 

 

 

 

 

First quarter

$

76

 

 

$

127

 

 

$

203

 

 

$

0.30

 

Second quarter

 

75

 

 

 

154

 

 

 

229

 

 

$

0.34

 

Total year-to-date

$

151

 

 

$

281

 

 

$

432

 

 

 

 

v3.22.2
Fair Value Measurements (Tables)
6 Months Ended
Jun. 30, 2022
Fair Value Disclosures [Abstract]  
Schedule Of Carrying Value And Fair Value Measurement Information For Financial Assets And Liabilities Therefore, such financial assets and liabilities are not presented in the following table.

 

 

 

 

 

 

 

 

 

Fair Value Measurements Using:

 

 

 

Carrying

 

 

Total Fair

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

 

Amount

 

 

Value

 

 

Inputs

 

 

Inputs

 

 

Inputs

 

June 30, 2022 assets (liabilities):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash equivalents

 

$

3,063

 

 

$

3,063

 

 

$

3,063

 

 

$

 

 

$

 

Commodity derivatives

 

$

41

 

 

$

41

 

 

$

 

 

$

41

 

 

$

 

Commodity derivatives

 

$

(647

)

 

$

(647

)

 

$

 

 

$

(647

)

 

$

 

Debt

 

$

(6,461

)

 

$

(6,440

)

 

$

 

 

$

(6,440

)

 

$

 

Contingent earnout payments

 

$

129

 

 

$

129

 

 

$

 

 

$

 

 

$

129

 

December 31, 2021 assets (liabilities):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash equivalents

 

$

1,421

 

 

$

1,421

 

 

$

1,421

 

 

$

 

 

$

 

Commodity derivatives

 

$

8

 

 

$

8

 

 

$

 

 

$

8

 

 

$

 

Commodity derivatives

 

$

(577

)

 

$

(577

)

 

$

 

 

$

(577

)

 

$

 

Debt

 

$

(6,482

)

 

$

(7,644

)

 

$

 

 

$

(7,644

)

 

$

 

Contingent earnout payments

 

$

184

 

 

$

184

 

 

$

 

 

$

 

 

$

184

 

v3.22.2
Summary Of Significant Accounting Policies (Narrative) (Details)
$ in Millions
6 Months Ended
Jan. 07, 2021
Jun. 30, 2022
USD ($)
a
Jun. 30, 2021
USD ($)
Summary Of Significant Accounting Policies [Line Items]      
Restricted cash   $ 157 $ 191
Canada [Member] | Barnett Shale [Member]      
Summary Of Significant Accounting Policies [Line Items]      
Restricted cash   140  
Cash payments for divestitures   $ 10  
Devon and WPX Agreement [Member]      
Summary Of Significant Accounting Policies [Line Items]      
Date of agreement Jan. 07, 2021 Jan. 07, 2021  
Conversion of common stock into right to recieve per share 0.5165    
WPX and Howard Energy Partners [Member]      
Summary Of Significant Accounting Policies [Line Items]      
Voting interest in the join venture legal entity   50.00%  
Catalyst [Member]      
Summary Of Significant Accounting Policies [Line Items]      
Area of land | a   50,000  
v3.22.2
summary Of Significant Accounting Policies - (Schedule of Components of Investments) (Details) - USD ($)
$ in Millions
Jun. 30, 2022
Dec. 31, 2021
Summary Of Significant Accounting Policies [Line Items]    
Investments $ 423 $ 402
Catalyst [Member]    
Summary Of Significant Accounting Policies [Line Items]    
Investments $ 354 368
Percentage Of Interest In Investments 50.00%  
Other Member    
Summary Of Significant Accounting Policies [Line Items]    
Investments $ 69 $ 34
v3.22.2
Summary of Significant Accounting Policies (Schedule of Revenue from Contracts with Customers) (Details) - USD ($)
$ in Millions
3 Months Ended 6 Months Ended
Jun. 30, 2022
Jun. 30, 2021
Jun. 30, 2022
Jun. 30, 2021
Disaggregation Of Revenue [Line Items]        
Total revenues from contracts with customers $ 5,796 $ 3,120 $ 10,291 $ 5,698
Oil, Gas and NGL Sales [Member]        
Disaggregation Of Revenue [Line Items]        
Total revenues from contracts with customers 4,100 2,154 7,275 3,911
Oil, Gas and NGL Sales [Member] | Oil [Member]        
Disaggregation Of Revenue [Line Items]        
Total revenues from contracts with customers 2,970 1,686 5,376 3,017
Oil, Gas and NGL Sales [Member] | Gas [Member]        
Disaggregation Of Revenue [Line Items]        
Total revenues from contracts with customers 557 188 864 390
Oil, Gas and NGL Sales [Member] | NGL [Member]        
Disaggregation Of Revenue [Line Items]        
Total revenues from contracts with customers 573 280 1,035 504
Marketing and Midstream Revenues [Member]        
Disaggregation Of Revenue [Line Items]        
Total revenues from contracts with customers 1,696 966 3,016 1,787
Marketing and Midstream Revenues [Member] | Oil [Member]        
Disaggregation Of Revenue [Line Items]        
Total revenues from contracts with customers 952 610 1,728 1,109
Marketing and Midstream Revenues [Member] | Gas [Member]        
Disaggregation Of Revenue [Line Items]        
Total revenues from contracts with customers 322 134 531 281
Marketing and Midstream Revenues [Member] | NGL [Member]        
Disaggregation Of Revenue [Line Items]        
Total revenues from contracts with customers $ 422 $ 222 $ 757 $ 397
v3.22.2
Acquisition and Divestitures (Narrative) (Details)
$ in Millions
1 Months Ended 3 Months Ended 6 Months Ended
Jan. 07, 2021
Jul. 31, 2022
USD ($)
Jun. 30, 2022
USD ($)
Mar. 31, 2022
USD ($)
Mar. 31, 2021
USD ($)
Jun. 30, 2022
USD ($)
MMBoe
$ / MMBTU
$ / bbl
Dec. 31, 2021
USD ($)
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations And Disposition [Line Items]              
Common Stock Shares Issued     $ 66     $ 66 $ 66
Other Current Assets [Member]              
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations And Disposition [Line Items]              
Cash paid related to acquisition     87        
Barnett Shale [Member]              
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations And Disposition [Line Items]              
Contingent earnout payments           65  
Additional contingent earnout payment           $ 195  
Henry Hub gas price for contingent earnout payment upside | $ / MMBTU           2.75  
WTI oil price for contingent earnout payment upside | $ / bbl           50  
Contingent earnout payment period           The contingent payment period commenced on January 1, 2021 and has a term of four years.  
Barnett Shale [Member] | Other Current Assets [Member]              
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations And Disposition [Line Items]              
Contingent earnout payments           $ 65  
Barnett Shale [Member] | Other Noncurrent Assets [Member]              
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations And Disposition [Line Items]              
Contingent earnout payments           60  
Producing properties and leasehold interests | Subsequent Event [Member]              
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations And Disposition [Line Items]              
Cash consideration   $ 830          
Non Core Assets [Member]              
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations And Disposition [Line Items]              
Divestitures of property and equipment         $ 9    
Gain on asset dispositions         $ 35    
Contingent earnout payments       $ 4      
Change in contingent earnout payments           $ 4  
Total estimated proved reserves | MMBoe           3  
Devon and WPX Agreement [Member]              
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations And Disposition [Line Items]              
Date of agreement Jan. 07, 2021         Jan. 07, 2021  
Conversion of common stock into right to recieve per share 0.5165            
Common Stock Shares Issued     $ 5,400     $ 5,400  
v3.22.2
Derivative Financial Instruments (Narrative) (Details)
Jun. 30, 2022
USD ($)
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Cash collateral held $ 0
Cash collateral posted $ 0
v3.22.2
Derivative Financial Instruments (Schedule Of Open Oil Derivative Positions) (Details)
6 Months Ended
Jun. 30, 2022
$ / bbl
bbl
NYMEX West Texas Intermediate Price Swaps Oil Q3-Q4 2022 [Member]  
Derivatives, Fair Value [Line Items]  
Volume Per Day (Bbls/d) | bbl 35,000
Weighted Average Price Swap 44.61
NYMEX West Texas Intermediate Price Collars Oil Q1-Q4 2023 [Member]  
Derivatives, Fair Value [Line Items]  
Volume Per Day (Bbls/d) | bbl 6,193
Weighted Average Floor Price 61.32
Weighted Average Ceiling Price 97.65
NYMEX West Texas Intermediate Price Collars Oil Q3 Q4 2022 [Member]  
Derivatives, Fair Value [Line Items]  
Volume Per Day (Bbls/d) | bbl 36,500
Weighted Average Floor Price 57.96
Weighted Average Ceiling Price 78.08
BRENT Basis Swaps Oil Q3-Q4 2022 [Member]  
Derivatives, Fair Value [Line Items]  
Volume Per Day (Bbls/d) | bbl 1,000
Oil Basis Swaps (7.75)
NYMEX Roll Basis Swaps Oil Q3-Q4 2022 [Member]  
Derivatives, Fair Value [Line Items]  
Volume Per Day (Bbls/d) | bbl 29,000
Oil Basis Swaps 0.45
Midland Sweet Q1 Q4 2023 [Member]  
Derivatives, Fair Value [Line Items]  
Volume Per Day (Bbls/d) | bbl 12,296
Oil Basis Swaps 0.52
v3.22.2
Derivative Financial Instruments (Schedule Of Open Natural Gas Derivative Positions) (Details)
6 Months Ended
Jun. 30, 2022
MMBTU
$ / MMBTU
FERC Henry Hub Price Swaps Natural Gas1 Q3-Q4 2022 [Member]  
Derivatives, Fair Value [Line Items]  
Volume Per Day (MMBtu/d) | MMBTU 117,500 [1]
Weighted Average Price Swap 3.08 [1]
FERC Henry Hub Price Swaps Natural Gas Q1-Q4 2023 [Member]  
Derivatives, Fair Value [Line Items]  
Volume Per Day (MMBtu/d) | MMBTU 8,658 [1]
Weighted Average Price Swap 5.24 [1]
FERC Henry Hub Price Collars Natural Gas Q1-Q4 2023 [Member]  
Derivatives, Fair Value [Line Items]  
Volume Per Day (MMBtu/d) | MMBTU 96,436 [2]
Weighted Average Floor Price 3.55 [2]
Weighted Average Ceiling Price 7.63 [2]
FERC Henry Hub Price Collars Natural Gas Q3-Q4 2022 [Member]  
Derivatives, Fair Value [Line Items]  
Volume Per Day (MMBtu/d) | MMBTU 193,000 [2]
Weighted Average Floor Price 3.05 [2]
Weighted Average Ceiling Price 4.55 [2]
El Paso Natural Gas Basis Swaps Q3-Q4 2022 [Member]  
Derivatives, Fair Value [Line Items]  
Volume Per Day (MMBtu/d) | MMBTU 50,000
Weighted Average Differential To Henry Hub (0.85)
WAHA Natural Gas Basis Swaps Q3-Q4 2022 [Member]  
Derivatives, Fair Value [Line Items]  
Volume Per Day (MMBtu/d) | MMBTU 70,000
Weighted Average Differential To Henry Hub (0.57)
El Paso Natural Gas Basis Swaps Q1-Q4 2023 [Member]  
Derivatives, Fair Value [Line Items]  
Volume Per Day (MMBtu/d) | MMBTU 125,000
Weighted Average Differential To Henry Hub (1.59)
WAHA Natural Gas Basis Swaps Q1-Q4 2023 [Member]  
Derivatives, Fair Value [Line Items]  
Volume Per Day (MMBtu/d) | MMBTU 70,000
Weighted Average Differential To Henry Hub (0.51)
WAHA Natural Gas Basis Swaps Q1-Q4 2024 [Member]  
Derivatives, Fair Value [Line Items]  
Volume Per Day (MMBtu/d) | MMBTU 40,000
Weighted Average Differential To Henry Hub (0.51)
Houston Ship Channel Natural Gas Basis Swaps Q3-Q4 2022 [Member]  
Derivatives, Fair Value [Line Items]  
Volume Per Day (MMBtu/d) | MMBTU 40,000
Weighted Average Differential To Henry Hub (0.15)
Houston Ship Channel Natural Gas Basis Swaps Q1 Q4 2023 Member  
Derivatives, Fair Value [Line Items]  
Volume Per Day (MMBtu/d) | MMBTU 50,000
Weighted Average Differential To Henry Hub (0.13)
[1] Related to the 2022 open positions, 17,500 MMBtu/d settle against the Inside FERC first of month Henry Hub index at an average price of $5.25 and 100,000 MMBtu/d settle against the end of month NYMEX index at an average price of $2.70. All 2023 open positions settle against the Inside FERC first of month Henry Hub index.
[2] Price collars settle against the Inside FERC first of month Henry Hub Index.
v3.22.2
Derivative Financial Instruments (Schedule Of Open Natural Gas Derivative Positions) (Parenthetical) (Details)
6 Months Ended
Jun. 30, 2022
$ / MMBTU
bbl
FERC Henry Hub Natural Gas [Member]  
Derivatives, Fair Value [Line Items]  
Volume Per Day (Bbls/d) | bbl 17,500
Weighted Average Price Swap | $ / MMBTU 5.25
NYMEX West Texas Intermediate [Member]  
Derivatives, Fair Value [Line Items]  
Volume Per Day (Bbls/d) | bbl 100,000
Weighted Average Price Swap | $ / MMBTU 2.70
v3.22.2
Derivative Financial Instruments (Schedule Of Derivative Financial Instruments Included In The Consolidated Balance Sheets) (Details) - USD ($)
$ in Millions
6 Months Ended
Jun. 30, 2022
Dec. 31, 2021
Derivatives Fair Value [Line Items]    
Gross Fair Value $ (606) $ (569)
Net Fair Value (606) (569)
Short-term Derivative Asset [Member]    
Derivatives Fair Value [Line Items]    
Gross Fair Value 37 6
Amounts Netted (26) (4)
Net Fair Value $ 11 2
Balance Sheet Classification Other current assets  
Long-term Derivative Asset [Member]    
Derivatives Fair Value [Line Items]    
Gross Fair Value $ 31 6
Amounts Netted (1)  
Net Fair Value $ 30 6
Balance Sheet Classification Other long-term assets  
Short-term Derivative Liability [Member]    
Derivatives Fair Value [Line Items]    
Gross Fair Value $ (672) (579)
Amounts Netted 26 4
Net Fair Value $ (646) (575)
Balance Sheet Classification Other current liabilities  
Long-term Derivative Liability [Member]    
Derivatives Fair Value [Line Items]    
Gross Fair Value $ (2) (2)
Amounts Netted 1  
Net Fair Value $ (1) $ (2)
Balance Sheet Classification Other long-term liabilities  
v3.22.2
Share-Based Compensation (Additional Information) (Details)
6 Months Ended
Jun. 30, 2022
shares
Performance Shares [Member]  
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]  
Sharebased Compensation Arrangement By Sharebased Payment Award Award Vesting Rights Percentage 100.00%
Two Thousand Twenty Two Plan [Member]  
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]  
Common Stock Shares 1.74
Number of shares used to calculate shares that may be granted under the Long-Term Incentive Plan, options and stock appreciation rights 1
v3.22.2
Share-Based Compensation (Schedule Of Share-Based Compensation Expense Included In The Consolidated Statements Of Comprehensive Earnings) (Details) - USD ($)
$ in Millions
6 Months Ended
Jun. 30, 2022
Jun. 30, 2021
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]    
Share-based compensation expense $ 43 $ 61
Related income tax benefit 26 0
G&A [Member]    
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]    
Share-based compensation expense 42 40
Exploration Expenses [Member]    
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]    
Share-based compensation expense 1 0
Restructuring and Transaction Costs [Member]    
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]    
Restructuring and transaction costs $ 0 $ 21
v3.22.2
Share-Based Compensation (Summary Of Unvested Restricted Stock Awards, Performance-Based Restricted Stock Awards And Performance Share Units) (Details)
shares in Thousands
6 Months Ended
Jun. 30, 2022
$ / shares
shares
Restricted Stock Awards [Member]  
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]  
Unvested at December 31, 2021 | shares 7,656
Granted, awards and units | shares 1,296
Vested, awards and units | shares (3,104)
Forfeited, awards and units | shares (59)
Unvested at March 31, 2022 share | shares 5,789
Unvested weighted average grant-date fair value at December 31, 2021 $ 22.15
Granted, weighted average grant-date fair value 52.98
Vested, weighted average grant-date fair value 23.00
Forfeited, weighted average grant-date fair value 33.03
Unvested weighted average grant-date fair value at March 31, 2022 $ 28.49
Performance Share Units [Member]  
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]  
Unvested at December 31, 2021 | shares 2,076
Granted, awards and units | shares 964
Vested, awards and units | shares (1,194)
Forfeited, awards and units | shares (5)
Unvested at March 31, 2022 share | shares 1,841 [1]
Unvested weighted average grant-date fair value at December 31, 2021 $ 24.12
Granted, weighted average grant-date fair value 44.05
Vested, weighted average grant-date fair value 28.91
Forfeited, weighted average grant-date fair value 68.68
Unvested weighted average grant-date fair value at March 31, 2022 31.33
Including Performance Factor Shares Granted [Member]  
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]  
Granted, weighted average grant-date fair value $ 68.68
[1] A maximum of 3.7 million common shares could be awarded based upon Devon’s final TSR ranking.
v3.22.2
Share-Based Compensation (Summary Of Unvested Restricted Stock Awards, Performance-Based Restricted Stock Awards And Performance Share Units) (Parenthetical) (Details)
shares in Millions
6 Months Ended
Jun. 30, 2022
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 3.7
v3.22.2
Share-Based Compensation (Summary Of Performance Share Units Grant-Date Fair Values And Their Related Assumptions) (Details)
6 Months Ended
Jun. 30, 2022
$ / shares
Performance Share Units [Member]  
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]  
Grant-date fair value $ 44.05
Risk-free interest rate 1.81%
Volatility factor 70.10%
Contractual term (years) 2 years 10 months 20 days
Including Performance Factor Shares Granted [Member]  
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]  
Grant-date fair value $ 68.68
v3.22.2
Share-Based Compensation (Summary of Unrecognized Compensation Cost And Weighted Average Period For Recognition) (Details)
$ in Millions
6 Months Ended
Jun. 30, 2022
USD ($)
Restricted Stock Awards [Member]  
Unrecognized Compensation And Weighted Average Recognition [Line Items]  
Unrecognized compensation cost $ 109
Weighted average period for recognition (years) 2 years 8 months 12 days
Performance Share Units [Member]  
Unrecognized Compensation And Weighted Average Recognition [Line Items]  
Unrecognized compensation cost $ 27
Weighted average period for recognition (years) 1 year 10 months 24 days
v3.22.2
Restructuring and Transaction Costs - (Schedule Of Restructuring And Transaction Costs) (Details) - USD ($)
$ in Millions
3 Months Ended 6 Months Ended
Jun. 30, 2022
Jun. 30, 2021
Jun. 30, 2022
Jun. 30, 2021
Restructuring Cost And Reserve [Line Items]        
Restructuring costs $ 0 $ 23 $ 0 $ 212
Transaction Costs [Member]        
Restructuring Cost And Reserve [Line Items]        
Restructuring costs 0 0 0 46
Other Restructuring [Member]        
Restructuring Cost And Reserve [Line Items]        
Restructuring costs $ 0 $ 23 $ 0 $ 166
v3.22.2
Restructuring and Transaction Costs (Narrative) (Details) - USD ($)
$ in Millions
3 Months Ended 6 Months Ended
Jun. 30, 2022
Jun. 30, 2021
Jun. 30, 2022
Jun. 30, 2021
Restructuring Cost And Reserve [Line Items]        
Restructuring and transaction costs $ 0 $ 23 $ 0 $ 212
Reduction of workforce [Member]        
Restructuring Cost And Reserve [Line Items]        
Restructuring and transaction costs       40
Reduction Of Workforce [Member]        
Restructuring Cost And Reserve [Line Items]        
Noncash-Accelerated vesting       21
Transaction Costs [Member]        
Restructuring Cost And Reserve [Line Items]        
Transaction costs   $ 46   46
Merger Integration [Member]        
Restructuring Cost And Reserve [Line Items]        
Restructuring and transaction costs       $ 166
v3.22.2
Restructuring and Transaction Costs (Schedule Of The Activity And Balances Associated With Restructuring Liabilities) (Details) - USD ($)
$ in Millions
6 Months Ended
Jun. 30, 2022
Jun. 30, 2021
Restructuring Cost And Reserve [Line Items]    
Beginning balance $ 149 $ 172
Ending balance 127 205
Prior years' restructurings [Member]    
Restructuring Cost And Reserve [Line Items]    
Restructuring reserve activity (22) 33
Other Current Liabilities [Member]    
Restructuring Cost And Reserve [Line Items]    
Beginning balance 38 35
Ending balance 28 83
Other Current Liabilities [Member] | Prior years' restructurings [Member]    
Restructuring Cost And Reserve [Line Items]    
Restructuring reserve activity (10) 48
Other Long-Term Liabilities [Member]    
Restructuring Cost And Reserve [Line Items]    
Beginning balance 111 137
Ending balance 99 122
Other Long-Term Liabilities [Member] | Prior years' restructurings [Member]    
Restructuring Cost And Reserve [Line Items]    
Restructuring reserve activity $ (12) $ (15)
v3.22.2
Other, Net (Schedule of Other Expenses (Income)) (Details) - USD ($)
$ in Millions
3 Months Ended 6 Months Ended
Jun. 30, 2022
Jun. 30, 2021
Jun. 30, 2022
Jun. 30, 2021
Other Expenses [Abstract]        
Estimated future obligation under a performance guarantee $ 0 $ (18) $ (96) $ (18)
Ukraine charitable pledge 0 0 20 0
Asset retirement obligation accretion 6 7 13 14
Severance and other non-income tax refunds 0 (3) (3) (39)
Other 4 0 15 0
Total $ 10 $ (14) $ (51) $ (43)
v3.22.2
Other, Net (Narrative) (Details) - USD ($)
$ in Millions
3 Months Ended 6 Months Ended
Jun. 30, 2022
Mar. 31, 2022
Jun. 30, 2021
Jun. 30, 2022
Jun. 30, 2021
Other Expenses [Abstract]          
Estimated future obligation under a performance guarantee $ 0   $ (18) $ (96) $ (18)
Satisfaction of future obligation under performance guarantee   $ 35      
Reduction in estimated exposure of future obligation under performance guarantee   $ 61      
Ukraine charitable pledge 0   0 20 0
Severance and other non-income tax refunds $ 0   $ 3 $ 3 $ 39
v3.22.2
Income Taxes (Schedule of Components of Income Tax Expense (Benefit)) (Details) - USD ($)
$ in Millions
3 Months Ended 6 Months Ended
Jun. 30, 2022
Jun. 30, 2021
Jun. 30, 2022
Jun. 30, 2021
Income Tax Disclosure [Abstract]        
Earnings before income taxes $ 2,495 $ 304 $ 3,757 $ 272
Current income tax expense 252 19 355 14
Deferred income tax expense (benefit) 305 24 469 (219)
Total income tax expense (benefit) $ 557 $ 43 $ 824 $ (205)
v3.22.2
Income Taxes (Schedule Of Effective Income Tax Rate Reconciliation) (Details)
3 Months Ended 6 Months Ended
Jun. 30, 2022
Jun. 30, 2021
Jun. 30, 2022
Jun. 30, 2021
Income Tax Disclosure [Abstract]        
U.S. statutory income tax rate 21.00% 21.00% 21.00% 21.00%
State income taxes 1.00% 0.00% 1.00% 1.00%
Subsidiary reorganization 0.00% 6.00% 0.00% 7.00%
Deferred tax asset valuation allowance 0.00% (19.00%) 0.00% (116.00%)
Other 0.00% 6.00% 0.00% 12.00%
Effective income tax rate 22.00% 14.00% 22.00% (75.00%)
v3.22.2
Income Taxes (Narrative) (Details)
$ in Millions
6 Months Ended
Jun. 30, 2021
USD ($)
Domestic Tax Authority [Member]  
Income Tax [Line Items]  
Operating Loss Carryforwards $ 1,800
WPX Merger [Member]  
Income Tax [Line Items]  
Deferred income taxes 250
Merger [Member]  
Income Tax [Line Items]  
Other income tax expense benefit $ 18
v3.22.2
Net Earnings Per Share (Net Earnings (Loss) Per Share Computations from Continuing Operations) (Details) - USD ($)
$ / shares in Units, shares in Millions, $ in Millions
3 Months Ended 6 Months Ended
Jun. 30, 2022
Jun. 30, 2021
Jun. 30, 2022
Jun. 30, 2021
Net earnings:        
Net earnings $ 1,932 $ 256 $ 2,921 $ 469
Attributable to participating securities (17) (3) (33) (5)
Basic and diluted earnings $ 1,915 $ 253 $ 2,888 $ 464
Common shares:        
Common shares outstanding - total 658 677 661 666
Attributable to participating securities (6) (6) (7) (6)
Common shares outstanding - basic 652 671 654 660
Dilutive effect of potential common shares issuable 2 2 2 2
Common shares outstanding - diluted 654 673 656 662
Net Earnings Per Share Basic And Diluted        
Basic $ 2.94 $ 0.38 $ 4.42 $ 0.70
Diluted $ 2.93 $ 0.38 $ 4.40 $ 0.70
v3.22.2
Other Comprehensive Earnings (Loss) (Components Of Other Comprehensive Earnings (Loss)) (Details) - USD ($)
$ in Millions
3 Months Ended 6 Months Ended
Jun. 30, 2022
Jun. 30, 2021
Jun. 30, 2022
Jun. 30, 2021
Pension and postretirement benefit plans:        
Beginning accumulated pension and postretirement benefits $ (131) $ (104) $ (132) $ (127)
Recognition of net actuarial loss and prior service cost in earnings [1] 2 0 3 1
Settlement of pension benefits 0 3 [2] 0 18 [2]
Other 0 0 0 7 [3]
Income tax benefit (expense) (1) 0 (1) 0
Accumulated other comprehensive loss, net of tax $ (130) $ (101) $ (130) $ (101)
[1] 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, net in the accompanying consolidated statements of comprehensive earnings.
[2] The Merger triggered settlement payments to certain plan participants, and the expense associated with this settlement is recognized as a component of restructuring and transaction costs in the accompanying consolidated statements of comprehensive earnings.
[3] Other includes a remeasurement of the pension obligation due to the Merger, which was partially offset by a change in mortality assumption.
v3.22.2
Supplemental Information To Statements Of Cash Flows (Schedule Of Supplemental Information To Statements Of Cash Flows) (Details) - USD ($)
$ in Millions
3 Months Ended 6 Months Ended
Jun. 30, 2022
Jun. 30, 2021
Jun. 30, 2022
Jun. 30, 2021
Changes in assets and liabilities, net:        
Accounts receivable $ (346) $ (100) $ 803 $ (163)
Other current assets (85) (88) 21 78
Other long-term assets (9) (14) (75) (24)
Accounts payable and revenues and royalties payable 540 72 787 88
Other current liabilities 93 52 101 19
Other long-term liabilities 13 (81) (84) (108)
Total 198 17 55 (110)
Supplementary cash flow data - total operations:        
Interest paid 85 105 185 219
Income taxes paid (refunded) $ (133) $ (106) $ (110) $ (112)
v3.22.2
Accounts Receivable (Schedule Of Components Of Accounts Receivable) (Details) - USD ($)
$ in Millions
Jun. 30, 2022
Dec. 31, 2021
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Joint interest billings $ 192 $ 158
Other 42 38
Gross accounts receivable 2,356 1,550
Allowance for doubtful accounts (8) (7)
Net accounts receivable 2,348 1,543
Oil, Gas and NGL Sales [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Gross accounts receivable 1,520 984
Marketing and Midstream Revenues [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Gross accounts receivable $ 602 $ 370
v3.22.2
Property, Plant and Equipment (Summary of Property and Equipment, net) (Details) - USD ($)
$ in Millions
Jun. 30, 2022
Dec. 31, 2021
Property and equipment:    
Proved $ 39,216 $ 38,051
Unproved and properties under development 937 1,081
Total oil and gas 40,153 39,132
Less accumulated DD&A (26,565) (25,596)
Oil and gas property and equipment, net 13,588 13,536
Other property and equipment 2,224 2,139
Less accumulated DD&A (699) (667)
Other property and equipment, net [1] 1,525 1,472
Total property and equipment, net $ 15,113 $ 15,008
[1] $122 million and $111 million related to CDM in 2022 and 2021, respectively.
v3.22.2
Property, Plant and Equipment (Summary of Property and Equipment, net) (Parenthetical) (Details) - USD ($)
$ in Millions
Jun. 30, 2022
Dec. 31, 2021
Property Plant And Equipment [Line Items]    
Other property and equipment, net [1] $ 1,525 $ 1,472
CDM [Member]    
Property Plant And Equipment [Line Items]    
Other property and equipment, net $ 122 $ 111
[1] $122 million and $111 million related to CDM in 2022 and 2021, respectively.
v3.22.2
Debt And Related Expenses (Schedule Of Debt Instruments and Balances) (Details) - USD ($)
$ in Millions
6 Months Ended
Jun. 30, 2022
Dec. 31, 2021
Debt Instrument [Line Items]    
Net premium (discount) on debentures and notes $ 126 $ (149)
Debt issuance costs (28) (30)
Long-term debt 6,461 6,482
8.25% due August 1, 2023 [Member]    
Debt Instrument [Line Items]    
Long-term debt, gross $ 242 $ 242
Charge on early retirement of debt, cash retirement costs 8.25% 8.25%
Debt, maturity date Aug. 01, 2023  
5.25% due September 15, 2024 [Member]    
Debt Instrument [Line Items]    
Long-term debt, gross $ 472 $ 472
Charge on early retirement of debt, cash retirement costs 5.25% 5.25%
Debt, maturity date Sep. 15, 2024  
5.85% due December 15, 2025 [Member]    
Debt Instrument [Line Items]    
Long-term debt, gross $ 485 $ 485
Charge on early retirement of debt, cash retirement costs 5.85% 5.85%
Debt, maturity date Dec. 15, 2025  
7.50% due September 15, 2027 [Member]    
Debt Instrument [Line Items]    
Long-term debt, gross $ 73 $ 73
Charge on early retirement of debt, cash retirement costs 7.50% 7.50%
Debt, maturity date Sep. 15, 2027  
5.25% due October 15, 2027 [Member]    
Debt Instrument [Line Items]    
Long-term debt, gross $ 390 $ 390
Charge on early retirement of debt, cash retirement costs 5.25% 5.25%
Debt, maturity date Oct. 15, 2027  
5.875% due June 15, 2028 [Member]    
Debt Instrument [Line Items]    
Long-term debt, gross $ 325 $ 325
Charge on early retirement of debt, cash retirement costs 5.875% 5.875%
Debt, maturity date Jun. 15, 2028  
4.50% due January 15, 2030 [Member]    
Debt Instrument [Line Items]    
Long-term debt, gross $ 585 $ 585
Charge on early retirement of debt, cash retirement costs 4.50% 4.50%
Debt, maturity date Jan. 15, 2030  
7.875% due September 30, 2031 [Member]    
Debt Instrument [Line Items]    
Long-term debt, gross $ 675 $ 675
Charge on early retirement of debt, cash retirement costs 7.875% 7.875%
Debt, maturity date Sep. 30, 2031  
7.95% due April 15, 2032 [Member]    
Debt Instrument [Line Items]    
Long-term debt, gross $ 366 $ 366
Charge on early retirement of debt, cash retirement costs 7.95% 7.95%
Debt, maturity date Apr. 15, 2032  
5.60% due July 15, 2041 [Member]    
Debt Instrument [Line Items]    
Long-term debt, gross $ 1,250 $ 1,250
Charge on early retirement of debt, cash retirement costs 5.60% 5.60%
Debt, maturity date Jul. 15, 2041  
4.75% due May 15, 2042 [Member]    
Debt Instrument [Line Items]    
Long-term debt, gross $ 750 $ 750
Charge on early retirement of debt, cash retirement costs 4.75% 4.75%
Debt, maturity date May 15, 2042  
5.00% due June 15, 2045 [Member]    
Debt Instrument [Line Items]    
Long-term debt, gross $ 750 $ 750
Charge on early retirement of debt, cash retirement costs 5.00% 5.00%
Debt, maturity date Jun. 15, 2045  
v3.22.2
Debt And Related Expenses (Narrative) (Details) - USD ($)
3 Months Ended 6 Months Ended
Jun. 30, 2022
Jun. 30, 2021
Jun. 30, 2022
Jun. 30, 2021
Debt Instrument [Line Items]        
Repayments of long-term debt $ 0 $ 710,000,000 $ 0 $ 1,243,000,000
Early retirement of debt 0 (10,000,000) 0 (30,000,000)
Charge on early retirement of debt, noncash charges $ 32,000,000 59,000,000
Senior Credit Facility [Member]        
Debt Instrument [Line Items]        
Credit Facility, borrowing capacity 3,000,000,000.0   3,000,000,000.0  
Outstanding credit facility borrowings $ 0   $ 0  
Debt-to-capitalization ratio 0.239   0.239  
Outstanding letters of credit $ 2,000,000   $ 2,000,000  
Senior Credit Facility [Member] | Maximum [Member]        
Debt Instrument [Line Items]        
Debt-to-capitalization ratio 0.65   0.65  
Senior Notes [Member]        
Debt Instrument [Line Items]        
Early retirement of debt       $ (30,000,000)
Charge on early retirement of debt, cash retirement costs     $ 89,000,000  
Charge on early retirement of debt, noncash charges     59,000,000  
6.00% Due 2022 [Member] | Senior Notes [Member]        
Debt Instrument [Line Items]        
Repayments of long-term debt     $ 43,000,000  
Debt interest rate, stated percentage 6.00%   6.00%  
5.875% Due 2028 [Member] | Senior Notes [Member]        
Debt Instrument [Line Items]        
Repayments of long-term debt     $ 175,000,000  
Debt interest rate, stated percentage 5.875%   5.875%  
4.5% Due 2030 [Member] | Senior Notes [Member]        
Debt Instrument [Line Items]        
Repayments of long-term debt     $ 315,000,000  
Debt interest rate, stated percentage 4.50%   4.50%  
5.35% Due 2027 [Member] | Senior Notes [Member]        
Debt Instrument [Line Items]        
Repayments of long-term debt     $ 210,000,000  
Debt interest rate, stated percentage 5.35%   5.35%  
5.75% due June 1, 2026 [Member] | Senior Notes [Member]        
Debt Instrument [Line Items]        
Repayments of long-term debt     $ 500,000,000  
Debt interest rate, stated percentage 5.75%   5.75%  
v3.22.2
Debt And Related Expenses (Schedule of Net Financing Cost Components) (Details) - USD ($)
$ in Millions
3 Months Ended 6 Months Ended
Jun. 30, 2022
Jun. 30, 2021
Jun. 30, 2022
Jun. 30, 2021
Debt Disclosure [Abstract]        
Interest based on debt outstanding $ 93 $ 98 $ 185 $ 203
Early retirement of debt 0 (10) 0 (30)
Interest income (2)   (3) (1)
Other (7) (8) (13) 15
Total net financing costs $ 84 $ 80 $ 169 $ 157
v3.22.2
Leases (Schedule of Right-of-use Assets and Lease Liabilities) (Details) - USD ($)
$ in Millions
Jun. 30, 2022
Dec. 31, 2021
Leases [Abstract]    
Right-of-use assets, finance lease $ 207 $ 211
Finance lease liabilities:    
Current lease liabilities, finance lease [1] 8 8
Long-term lease liabilities, finance lease 248 247
Total lease liabilities, finance lease 256 255
Right-of-use assets, operating lease 29 24
Operating lease liabilities:    
Current lease liabilities, operating lease [1] 18 18
Long-term lease liabilities, operating lease 11 5
Total lease liabilities, operating lease 29 23
Right-of-use assets 236 235
Lease liabilities:    
Current lease liabilities [1] 26 26
Long-term lease liabilities 259 252
Total lease liabilities $ 285 $ 278
[1] Current lease liabilities are included in other current liabilities on the consolidated balance sheets.
v3.22.2
Asset Retirement Obligations (Summary Of Changes In Asset Retirement Obligations) (Details) - USD ($)
$ in Millions
3 Months Ended 6 Months Ended
Jun. 30, 2022
Jun. 30, 2021
Jun. 30, 2022
Jun. 30, 2021
Dec. 31, 2021
Asset Retirement Obligation Disclosure [Abstract]          
Asset retirement obligations as of beginning of period     $ 485 $ 369  
Assumed WPX obligations     0 98  
Liabilities incurred     15 20  
Liabilities settled and divested     (9) (47)  
Revision of estimated obligation     (35) 11  
Asset retirement obligation accretion $ 6 $ 7 13 14  
Asset retirement obligations as of end of period 469 465 469 465  
Less current portion 17 15 17 15  
Asset retirement obligations $ 452 $ 450 $ 452 $ 450 $ 468
v3.22.2
Asset Retirement Obligations (Narrative) (Details)
$ in Millions
6 Months Ended
Jun. 30, 2022
USD ($)
Asset Retirement Obligation Disclosure [Abstract]  
Decrease in asset retirement obligations $ 35
v3.22.2
Stockholders' Equity (Narrative) (Details) - USD ($)
$ / shares in Units, $ in Billions
1 Months Ended 3 Months Ended
Feb. 28, 2022
Nov. 02, 2021
Aug. 31, 2022
May 31, 2022
Sep. 30, 2022
Jun. 30, 2022
Mar. 31, 2022
Jun. 30, 2021
Mar. 31, 2021
Stockholders Equity [Abstract]                  
Dividends rate per share           $ 1.27 $ 1.00 $ 0.34 $ 0.30
Fixed Dividend [Member]                  
Stockholders Equity [Abstract]                  
Percentage Increase In Quarterly Dividend             45.00%    
Dividends rate per share             $ 0.16    
Forecast [Member] | Fixed Dividend [Member]                  
Stockholders Equity [Abstract]                  
Percentage Increase In Quarterly Dividend         13.00%        
Dividends rate per share         $ 0.18        
Subsequent Event                  
Stockholders Equity [Abstract]                  
Dividend payable, per share     $ 1.55            
Dividend payable amount     $ 1.0            
Dividends payable, year     2022            
Subsequent Event | Fixed Dividend [Member]                  
Stockholders Equity [Abstract]                  
Dividends rate per share     $ 0.18            
Subsequent Event | Variable Dividend [Member]                  
Stockholders Equity [Abstract]                  
Dividend payable, per share     $ 1.37            
Share Repurchase Program [Member]                  
Stockholders Equity [Abstract]                  
Repurchase of common stock $ 1.6 $ 1.0   $ 2.0          
Repurchase program expiration date May 31, 2022 Dec. 31, 2022   May 04, 2023          
v3.22.2
Stockholders' Equity (Summary of Purchases of Common Stock) (Details) - Share Repurchase Program Open [Member] - USD ($)
$ / shares in Units, shares in Thousands, $ in Millions
3 Months Ended 8 Months Ended
Jun. 30, 2022
Mar. 31, 2022
Dec. 31, 2021
Jun. 30, 2022
Stockholders Equity [Line Items]        
Total Number of Shares Purchased 5,052 3,979 13,983 23,014
Dollar Value of Shares Purchased $ 318 $ 230 $ 589 $ 1,137
Average Price Paid per Share $ 63.07 $ 57.74 $ 42.15 $ 49.44
v3.22.2
Stockholders' Equity (Summary Of Dividends Paid On Common Stock) (Details) - USD ($)
$ / shares in Units, $ in Millions
3 Months Ended 6 Months Ended
Jun. 30, 2022
Mar. 31, 2022
Jun. 30, 2021
Mar. 31, 2021
Jun. 30, 2022
Jun. 30, 2021
Stockholders Equity [Line Items]            
Dividends amount $ 830 $ 667 $ 229 $ 203 $ 1,497 $ 432
Dividends rate per share $ 1.27 $ 1.00 $ 0.34 $ 0.30    
Fixed Dividend [Member]            
Stockholders Equity [Line Items]            
Dividends amount $ 105 $ 109 $ 75 $ 76 214 151
Dividends rate per share   $ 0.16        
Variable Dividend [Member]            
Stockholders Equity [Line Items]            
Dividends amount $ 725 $ 558 $ 154 $ 127 $ 1,283 $ 281
v3.22.2
Commitments and Contingencies (Narrative) (Details)
$ in Millions
Jun. 30, 2022
USD ($)
Commitments and Contingencies Disclosure [Abstract]  
Other accrued liabilities current $ 25
v3.22.2
Fair Value Measurements (Schedule Of Carrying Value And Fair Value Measurement Information For Financial Assets And Liabilities) (Details) - USD ($)
$ in Millions
Jun. 30, 2022
Dec. 31, 2021
Carrying Amount [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash equivalents $ 3,063 $ 1,421
Debt (6,461) (6,482)
Contingent earnout payments 129 184
Carrying Amount [Member] | Commodity Derivatives [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivatives, assets 41 8
Derivatives, liabilities (647) (577)
Total Fair Value [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash equivalents 3,063 1,421
Debt (6,440) (7,644)
Contingent earnout payments 129 184
Total Fair Value [Member] | Commodity Derivatives [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivatives, assets 41 8
Derivatives, liabilities (647) (577)
Level 1 Inputs [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash equivalents 3,063 1,421
Level 2 Inputs [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Debt (6,440) (7,644)
Level 2 Inputs [Member] | Commodity Derivatives [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivatives, assets 41 8
Derivatives, liabilities (647) (577)
Level 3 Inputs [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Contingent earnout payments $ 129 $ 184