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

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 or 15(d)
of The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): August 1, 2022

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

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

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

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

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

 

Item 2.02	Results of Operations and Financial Condition.	
On August 1, 2022, Devon Energy Corporation (the “Company”) announced its financial and operational results for the quarterly period ended June 30, 2022. In connection with this announcement, the Company provided an earnings release and certain supplemental financial information (including guidance and hedging information). Copies of these documents are furnished as Exhibits 99.1 and 99.2, respectively, to this report and, along with certain other materials, will be available on the Company’s website at www.devonenergy.com.
The information contained in this report and the exhibits hereto shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and shall not be incorporated by reference into any filings made by the Company under the Securities Act of 1933, as amended, or the Exchange Act, except as may be expressly set forth by specific reference in such filing.
 
Item 9.01	Financial Statements and Exhibits.	
    (d) Exhibits

Exhibit
No.	  		Description of Exhibits	
			
99.1	  	Earnings release, dated August 1, 2022.		
			
99.2	  	Supplemental financial information (including guidance and hedging information).		
			
 104	  	Cover Page Interactive Data File (embedded within the Inline XBRL document).		

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

DEVON ENERGY CORPORATION	
		
By:	 	/s/ Jeffrey L. Ritenour	
	 	Jeffrey L. Ritenour	
	 	Executive Vice President and Chief Financial Officer	
Date: August 1, 2022

Exhibit 99.1
			
	 	Devon Energy Corporation
333 West Sheridan Avenue Oklahoma City, OK 73102-5015	
 
Devon Energy Reports Second-Quarter 2022 Financial and Operational Results
OKLAHOMA CITY – Aug. 1, 2022 – Devon Energy Corp. (NYSE: DVN) today reported financial and operational results for the second-quarter 2022. Supplemental financial tables and forward-looking guidance are available on the company’s website at www.devonenergy.com.
KEY FINANCIAL AND OPERATIONAL HIGHLIGHTS
 
 	•	 	Fixed-plus-variable dividend increased by 22 percent to record high of $1.55 per share	
 
 	•	 	Share-repurchase program retired 4 percent of outstanding shares since inception	
 
 	•	 	Delaware Basin drove second-quarter results that were favorable to guidance on production and capital	
 
 	•	 	Operating cash flow more than doubled year over year and free cash flow reached the highest level in Devon history	
 
 	•	 	Disciplined capital allocation framework moderated reinvestment rates to 22 percent of cash flow	
 
 	•	 	Balance sheet strengthened with cash balances increasing by $832 million to a total of $3.5 billion	
 
 	•	 	Resource capture transactions added high-return inventory in Williston and Delaware Basin	
CEO PERSPECTIVE
“The second quarter saw our business continue to strengthen and build momentum as we delivered systematic execution across the financial, operational and strategic tenets of our cash-return business model,” said Rick Muncrief, president and CEO.
“This success was showcased by production from our Delaware-focused program that exceeded guidance expectations, our streamlined cost structure captured the full benefit of higher commodity prices and we returned record-setting amounts of cash to shareholders. In addition, we took important steps to strengthen the quality and depth of our asset portfolio.
“As a result of the strong financial and operational performance achieved year to date, we have updated our full-year 2022 guidance,” Muncrief commented. “This improved outlook raises production targets, increases free cash flow projections and enhances our ability to accelerate the return of capital to shareholders.”
FINANCIAL RESULTS
Devon reported net earnings of $1.9 billion, or $2.93 per diluted share, in the second quarter of 2022. Adjusting for items analysts typically exclude from estimates, the company’s core earnings were $1.7 billion, or $2.59 per diluted share.
Operating cash flow totaled $2.7 billion in the quarter, a more than two-fold increase versus the year-ago period. With capital reinvestment rates at 22 percent of cash flow, Devon generated $2.1 billion of free cash flow in the quarter. This represents the highest quarterly amount of free cash flow in the company’s 51-year history.
The company’s investment-grade financial position also continued to strengthen in the second quarter with cash balances increasing by $832 million to a total of $3.5 billion. Devon exited the quarter with an outstanding debt balance of $6.5 billion and a net debt-to-EBITDAX ratio of only 0.4 times.
RETURN OF CAPITAL
Based on the second-quarter financial performance, Devon declared a fixed-plus-variable dividend of $1.55 per share, an increase of 22 percent from the previous quarter. This dividend payout represents an annualized yield of 11 percent based on the company’s share price as of July 29, 2022. As of the end of July, Devon repurchased 23.9 million shares, or 4 percent of its outstanding shares, at a total cost of $1.2 billion.
 
1

OPERATING RESULTS
Production for the second quarter averaged 616,000 oil-equivalent barrels (Boe) per day, an increase of 7 percent from the first quarter of 2022. Oil production accounted for the largest component of the company’s product mix at 49 percent of total volumes.
Upstream capital spending was 5 percent below guidance, totaling $513 million in the second quarter. Devon’s capital program averaged 19 operated drilling rigs and 67 gross operated wells were placed online during the quarter.
Production costs, including taxes, averaged $13.01 per Boe. Devon’s low operating cost structure, coupled with the benefits of an oil-weighted production mix, expanded field-level cash margins to $60.12 per Boe in the quarter. This represents a 22 percent improvement from the first quarter of 2022.
The company’s administrative and financing costs improved by 9 percent year-over-year, excluding the early retirement of debt. These cost reductions were achieved through merger-related synergies and reduced interest expense.
ASSET-LEVEL HIGHLIGHTS
Delaware Basin: Production increased 22 percent year over year to an average of 436,000 Boe per day. The growth was driven by 52 wells completed across targeted intervals in the Bone Spring and Wolfcamp formations. Capital activity was headlined by a 12-well program at the company’s Todd area in Lea and Eddy County. Initial 30-day rates from this Wolfcamp-oriented development averaged 4,500 Boe per day, with per well recoveries estimated to exceed 1.5 million oil-equivalent barrels.
Another key operational highlight was a series of acreage trades that optimized leasehold for future development in the state line area of Texas and New Mexico. In aggregate, these trades added 7,000 net acres to existing drilling units and unlocked more than 200 extended-reach drilling locations that were previously constrained to 1-mile developments.
Anadarko Basin: Production averaged 74,000 Boe per day, with liquids-rich gas representing 81 percent of the product mix. Devon operated 3 drilling rigs supported by a $100 million drilling carry with Dow. With this carry-enhanced activity, the company spud 14 wells during the quarter and remains on track to complete up to 40 wells in the second half of 2022.
Williston Basin: Production averaged 45,000 Boe per day. In June, Devon announced a bolt-on acquisition in the core of the basin, adding a contiguous position of 38,000 net acres directly offsetting and overlapping Devon’s existing leasehold. With the acquisition now closed, production in the Williston Basin is expected to approximate 65,000 Boe per day by the end of the year.
Eagle Ford: Production averaged 38,000 Boe per day, a 6 percent increase compared to the previous quarter. The volume growth resulted from 14 wells completed in the volatile oil window of the play, where the company’s Dziuk 8-H well achieved the highest 30-day rate at 3,500 Boe per day. To sustain production, Devon plans to complete 15 wells over the remainder of the year.
Powder River Basin: Production averaged 19,000 Boe per day. Devon plans to run a dedicated rig throughout the second half of the year and expects to complete 10 wells by year end. This activity is focused on a combination of Parkman and Niobrara opportunities across the company’s 300,000 net acre position.
2022 OUTLOOK
Devon is raising its full-year 2022 production forecast by 3 percent to a range of 600,000 to 610,000 Boe per day. The improved volume outlook is due to better-than-expected well performance year-to-date and the impact from a bolt-on acquisition in the Williston Basin. With the ongoing share repurchase program, production per share is expected to grow 8 percent compared to 2021.
The company also adjusted its upstream capital guidance to a range of $2.2 billion to $2.4 billion versus prior guidance of approximately $2.1 billion. This updated outlook incorporates $100 million of incremental capital related to the acquisition in the Williston Basin and the impact of inflationary cost pressures. Devon expects its capital to be fully funded from operating cash flow, which is forecasted to be nearly $9 billion at current strip pricing.
 
2

Additional details of Devon’s forward-looking guidance for the third quarter and full-year 2022 are available on the company’s website at www.devonenergy.com.
SUSTAINABILITY UPDATE
Devon recently joined the Oil & Gas Methane Partnership 2.0 Initiative, strengthening the company’s commitment to reduce emissions and the environmental impact of its operations. The initiative’s mission is to improve the industry’s transparency in methane emissions reporting and encourage progress in reducing those emissions. For more information, please refer to the Sustainability portion of Devon’s website at www.devonenergy.com/sustainability.
CONFERENCE CALL WEBCAST AND SUPPLEMENTAL EARNINGS MATERIALS
Also provided with today’s release is the company’s detailed earnings presentation that is available on the company’s website at www.devonenergy.com. The company’s second-quarter conference call will be held at 10:00 a.m. Central (11:00 a.m. Eastern) on Tuesday, August 2, 2022, and will serve primarily as a forum for analyst and investor questions and answers.
ABOUT DEVON ENERGY
Devon Energy is a leading oil and gas producer in the U.S. with a premier multi-basin portfolio headlined by a world-class acreage position in the Delaware Basin. Devon’s disciplined cash-return business model is designed to achieve strong returns, generate free cash flow and return capital to shareholders, while focusing on safe and sustainable operations. For more information, please visit www.devonenergy.com.

Investor Contacts	 	Media Contact	 		
Scott Coody, 405-552-4735	 	Lisa Adams, 405-228-1732	 		
Chris Carr, 405-228-2496	 		 		
NON-GAAP DISCLOSURES
This press release includes non-GAAP (generally accepted accounting principles) financial measures. Such non-GAAP measures are not alternatives to GAAP measures, and you should not consider these non-GAAP measures in isolation or as a substitute for analysis of results as reported under GAAP. Reconciliations of these non-GAAP measures and other disclosures are provided within the supplemental financial tables that are available on the company’s website and in the related Form 10-Q filed with the SEC.
FORWARD LOOKING STATEMENTS
This press release includes “forward-looking statements” within the meaning of the federal securities laws. Such statements include those concerning strategic plans, our expectations and objectives for future operations, as well as other future events or conditions, and are often identified by use of the words and phrases “expects,” “believes,” “will,” “would,” “could,” “continue,” “may,” “aims,” “likely to be,” “intends,” “forecasts,” “projections,” “estimates,” “plans,” “expectations,” “targets,” “opportunities,” “potential,” “anticipates,” “outlook” and other similar terminology. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that Devon expects, believes or anticipates will or may occur in the future are forward looking statements. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond our control. Consequently, actual future results could differ materially and adversely from our expectations due to a number of factors, including, but not limited to: the volatility of oil, gas and NGL prices; risks relating to the COVID-19 pandemic or other future pandemics; uncertainties inherent in estimating oil, gas and NGL reserves; the extent to which we are successful in acquiring and discovering additional reserves; regulatory restrictions, compliance costs and other risks relating to governmental regulation, including with respect to federal lands and environmental matters; risks related to climate change; the uncertainties, costs and risks involved in our operations, including as a result of employee misconduct; risks related to our hedging activities; counterparty credit risks; risks relating to our indebtedness; cyberattack risks; our limited control over third parties who operate some of our oil and gas properties; midstream capacity constraints and potential interruptions in production; the extent to which insurance covers any losses we may experience; competition for assets, materials, people and capital; risks related to investors attempting to effect change; our ability to successfully complete mergers, acquisitions and divestitures; our ability to pay dividends and make share repurchases; and any of the other risks and uncertainties discussed in Devon’s 2021 Annual Report on Form 10-K (the “2021 Form 10-K”) or other SEC filings.
The forward-looking statements included in this press release speak only as of the date of this press release, represent management’s current reasonable expectations as of the date of this press release and are subject to the risks and uncertainties identified above as well as those described in the 2021 Form 10-K and in other documents we file from time to time with the SEC. We cannot guarantee the accuracy of our forward-looking statements, and readers are urged to carefully review and consider the various disclosures made in the 2021 Form 10-K and in other documents we file from time to time with the SEC. All subsequent written and oral forward-looking statements attributable to Devon, or persons acting on its behalf, are expressly qualified in their entirety by the cautionary statements above. We do not undertake, and expressly disclaim, any duty to update or revise our forward-looking statements based on new information, future events or otherwise.
 
3

Exhibit 99.2

 
Devon Energy Second-Quarter 2022
Supplemental Tables

TABLE OF CONTENTS:	  	PAGE:	 	
		
Consolidated Statements of Earnings	  	 	2	 	
		
Supplemental Information for Consolidated Statements of Earnings	  	 	3	 	
		
Consolidated Statements of Cash Flows	  	 	4	 	
		
Consolidated Balance Sheets	  	 	5	 	
		
Production	  	 	6	 	
		
Capital Expenditures and Supplemental Information for Capital Expenditures	  	 	7	 	
		
Realized Pricing	  	 	8	 	
		
Asset Margins	  	 	9	 	
		
Core Earnings	  	 	10	 	
		
EBITDAX, Net Debt, Net Debt-to-EBITDAX and Free Cash Flow	  	 	11	 	
		
Reinvestment Rate and Variable Dividend	  	 	12	 	

1

			

CONSOLIDATED STATEMENTS OF EARNINGS

																					
 	  	2022	 	 	2021	 	
(in millions, except per share amounts)	  	Quarter 2	 	 	Quarter 1	 	 	Quarter 4	 	 	Quarter 3	 	 	Quarter 2	 	
Oil, gas and NGL sales	  	$	4,100	 	 	$	3,175	 	 	$	2,985	 	 	$	2,635	 	 	$	2,154	 	
Oil, gas and NGL derivatives (1)	  	 	(170	) 	 	 	(683	) 	 	 	22	 	 	 	(335	) 	 	 	(703	) 	
Marketing and midstream revenues	  	 	1,696	 	 	 	1,320	 	 	 	1,266	 	 	 	1,166	 	 	 	966	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total revenues	  	 	5,626	 	 	 	3,812	 	 	 	4,273	 	 	 	3,466	 	 	 	2,417	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Production expenses (2)	  	 	729	 	 	 	618	 	 	 	605	 	 	 	555	 	 	 	513	 	
Exploration expenses	  	 	10	 	 	 	2	 	 	 	5	 	 	 	3	 	 	 	3	 	
Marketing and midstream expenses	  	 	1,700	 	 	 	1,324	 	 	 	1,266	 	 	 	1,165	 	 	 	965	 	
Depreciation, depletion and amortization	  	 	528	 	 	 	489	 	 	 	577	 	 	 	578	 	 	 	536	 	
Asset dispositions	  	 	(14	) 	 	 	(1	) 	 	 	(49	) 	 	 	—  	 	 	 	(87	) 	
General and administrative expenses	  	 	84	 	 	 	94	 	 	 	95	 	 	 	95	 	 	 	94	 	
Financing costs, net (3)	  	 	84	 	 	 	85	 	 	 	86	 	 	 	86	 	 	 	80	 	
Restructuring and transaction costs	  	 	—  	 	 	 	—  	 	 	 	28	 	 	 	18	 	 	 	23	 	
Other, net	  	 	10	 	 	 	(61	) 	 	 	(2	) 	 	 	2	 	 	 	(14	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total expenses	  	 	3,131	 	 	 	2,550	 	 	 	2,611	 	 	 	2,502	 	 	 	2,113	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Earnings before income taxes	  	 	2,495	 	 	 	1,262	 	 	 	1,662	 	 	 	964	 	 	 	304	 	
Income tax expense (4)	  	 	557	 	 	 	267	 	 	 	150	 	 	 	120	 	 	 	43	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net earnings	  	 	1,938	 	 	 	995	 	 	 	1,512	 	 	 	844	 	 	 	261	 	
Net earnings attributable to noncontrolling interests	  	 	6	 	 	 	6	 	 	 	6	 	 	 	6	 	 	 	5	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net earnings attributable to Devon	  	$	1,932	 	 	$	989	 	 	$	1,506	 	 	$	838	 	 	$	256	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net earnings per share:	  				 				 				 				 				
Basic net earnings per share	  	$	2.94	 	 	$	1.48	 	 	$	2.24	 	 	$	1.24	 	 	$	0.38	 	
Diluted net earnings per share	  	$	2.93	 	 	$	1.48	 	 	$	2.23	 	 	$	1.24	 	 	$	0.38	 	
Weighted average common shares outstanding:	  				 				 				 				 				
Basic	  	 	658	 	 	 	663	 	 	 	671	 	 	 	677	 	 	 	677	 	
Diluted	  	 	660	 	 	 	665	 	 	 	673	 	 	 	679	 	 	 	679	 	
 
2

			

SUPPLEMENTAL INFORMATION FOR CONSLIDATED STATEMENTS OF EARNINGS
 
(1) OIL, GAS AND NGL DERIVATIVES

 	  	2022	 	 	2021	 	
(in millions)	  	Quarter 2	 	 	Quarter 1	 	 	Quarter 4	 	 	Quarter 3	 	 	Quarter 2	 	
Derivative cash settlements	  	$	(472	) 	 	$	(344	) 	 	$	(493	) 	 	$	(370	) 	 	$	(367	) 	
Derivative valuation changes	  	 	302	 	 	 	(339	) 	 	 	515	 	 	 	35	 	 	 	(336	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Oil, gas and NGL derivatives	  	$	(170	) 	 	$	(683	) 	 	$	22	 	 	$	(335	) 	 	$	(703	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
(2) PRODUCTION EXPENSES

 	  	2022	 	  	2021	 	
(in millions)	  	Quarter 2	 	  	Quarter 1	 	  	Quarter 4	 	  	Quarter 3	 	  	Quarter 2	 	
Lease operating expense	  	$	255	 	  	$	224	 	  	$	235	 	  	$	215	 	  	$	210	 	
Gathering, processing & transportation	  	 	177	 	  	 	161	 	  	 	173	 	  	 	157	 	  	 	147	 	
Production taxes	  	 	278	 	  	 	214	 	  	 	197	 	  	 	176	 	  	 	143	 	
Property taxes	  	 	19	 	  	 	19	 	  	 	—  	 	  	 	7	 	  	 	13	 	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Production expenses	  	$	729	 	  	$	618	 	  	$	605	 	  	$	555	 	  	$	513	 	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
(3) FINANCING COSTS, NET

 	  	2022	 	 	2021	 	
(in millions)	  	Quarter 2	 	 	Quarter 1	 	 	Quarter 4	 	 	Quarter 3	 	 	Quarter 2	 	
Interest based on outstanding debt	  	$	93	 	 	$	92	 	 	$	92	 	 	$	93	 	 	$	98	 	
Gain on early retirement of debt	  	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	(10	) 	
Interest income	  	 	(2	) 	 	 	(1	) 	 	 	—  	 	 	 	(1	) 	 	 	—  	 	
Other	  	 	(7	) 	 	 	(6	) 	 	 	(6	) 	 	 	(6	) 	 	 	(8	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Financing costs, net	  	$	84	 	 	$	85	 	 	$	86	 	 	$	86	 	 	$	80	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
(4) INCOME TAX EXPENSE

 	  	2022	 	  	2021	 	
(in millions)	  	Quarter 2	 	  	Quarter 1	 	  	Quarter 4	 	  	Quarter 3	 	  	Quarter 2	 	
Current expense	  	$	252	 	  	$	103	 	  	$	1	 	  	$	1	 	  	$	19	 	
Deferred expense	  	 	305	 	  	 	164	 	  	 	149	 	  	 	119	 	  	 	24	 	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Income tax expense	  	$	557	 	  	$	267	 	  	$	150	 	  	$	120	 	  	$	43	 	

3

			

CONSOLIDATED STATEMENTS OF CASH FLOWS

																					
 	  	2022	 	 	2021	 	
(in millions)	  	Quarter 2	 	 	Quarter 1	 	 	Quarter 4	 	 	Quarter 3	 	 	Quarter 2	 	
Cash flows from operating activities:	  				 				 				 				 				
Net earnings	  	$	1,938	 	 	$	995	 	 	$	1,512	 	 	$	844	 	 	$	261	 	
Adjustments to reconcile net earnings to net cash from operating activities:	  				 				 				 				 				
Depreciation, depletion and amortization	  	 	528	 	 	 	489	 	 	 	577	 	 	 	578	 	 	 	536	 	
Leasehold impairments	  	 	7	 	 	 	1	 	 	 	1	 	 	 	1	 	 	 	1	 	
Amortization of liabilities	  	 	(9	) 	 	 	(6	) 	 	 	(6	) 	 	 	(7	) 	 	 	(7	) 	
Total (gains) losses on commodity derivatives	  	 	170	 	 	 	683	 	 	 	(22	) 	 	 	335	 	 	 	703	 	
Cash settlements on commodity derivatives	  	 	(472	) 	 	 	(344	) 	 	 	(493	) 	 	 	(370	) 	 	 	(367	) 	
Gains on asset dispositions	  	 	(14	) 	 	 	(1	) 	 	 	(49	) 	 	 	—	 	 	 	(87	) 	
Deferred income tax expense	  	 	305	 	 	 	164	 	 	 	149	 	 	 	119	 	 	 	24	 	
Share-based compensation	  	 	23	 	 	 	20	 	 	 	19	 	 	 	19	 	 	 	20	 	
Early retirement of debt	  	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	(10	) 	
Other	  	 	4	 	 	 	(21	) 	 	 	2	 	 	 	11	 	 	 	2	 	
Changes in assets and liabilities, net	  	 	198	 	 	 	(143	) 	 	 	(74	) 	 	 	68	 	 	 	17	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net cash from operating activities	  	 	2,678	 	 	 	1,837	 	 	 	1,616	 	 	 	1,598	 	 	 	1,093	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Cash flows from investing activities:	  				 				 				 				 				
Capital expenditures	  	 	(573	) 	 	 	(537	) 	 	 	(512	) 	 	 	(474	) 	 	 	(504	) 	
Acquisitions of property and equipment	  	 	(100	)(1) 	 	 	(1	) 	 	 	(3	) 	 	 	(10	) 	 	 	(5	) 	
Divestitures of property and equipment	  	 	9	 	 	 	26	 	 	 	14	 	 	 	1	 	 	 	49	 	
Distributions from equity method investments	  	 	15	 	 	 	8	 	 	 	8	 	 	 	9	 	 	 	8	 	
Contributions to equity method investments	  	 	(21	) 	 	 	(22	) 	 	 	(25	) 	 	 	—  	 	 	 	—  	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net cash from investing activities	  	 	(670	) 	 	 	(526	) 	 	 	(518	) 	 	 	(474	) 	 	 	(452	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Cash flows from financing activities:	  				 				 				 				 				
Repayments of long-term debt	  	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	(710	) 	
Early retirement of debt	  	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	(32	) 	
Repurchases of common stock	  	 	(324	) 	 	 	(211	) 	 	 	(589	) 	 	 	—  	 	 	 	—  	 	
Dividends paid on common stock	  	 	(830	) 	 	 	(667	) 	 	 	(554	) 	 	 	(329	) 	 	 	(229	) 	
Contributions from noncontrolling interests	  	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	1	 	 	 	3	 	
Distributions to noncontrolling interests	  	 	(5	) 	 	 	(8	) 	 	 	(6	) 	 	 	(6	) 	 	 	(5	) 	
Shares exchanged for tax withholdings and other	  	 	(12	) 	 	 	(73	) 	 	 	—  	 	 	 	(3	) 	 	 	(9	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net cash from financing activities	  	 	(1,171	) 	 	 	(959	) 	 	 	(1,149	) 	 	 	(337	) 	 	 	(982	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Effect of exchange rate changes on cash	  	 	(5	) 	 	 	2	 	 	 	1	 	 	 	(5	) 	 	 	2	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net change in cash, cash equivalents and restricted cash	  	 	832	 	 	 	354	 	 	 	(50	) 	 	 	782	 	 	 	(339	) 	
Cash, cash equivalents and restricted cash at beginning of period	  	 	2,625	 	 	 	2,271	 	 	 	2,321	 	 	 	1,539	 	 	 	1,878	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Cash, cash equivalents and restricted cash at end of period	  	$	3,457	 	 	$	2,625	 	 	$	2,271	 	 	$	2,321	 	 	$	1,539	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Reconciliation of cash, cash equivalents and restricted cash:	  				 				 				 				 				
Cash and cash equivalents	  	$	3,300	 	 	$	2,459	 	 	$	2,099	 	 	$	2,144	 	 	$	1,348	 	
Restricted cash	  	 	157	 	 	 	166	 	 	 	172	 	 	 	177	 	 	 	191	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total cash, cash equivalents and restricted cash	  	$	3,457	 	 	$	2,625	 	 	$	2,271	 	 	$	2,321	 	 	$	1,539	 	

(1)	Primarily relates to deposit associated with the RimRock acquisition.	
 
4

			

CONSOLIDATED BALANCE SHEETS

									
(in millions)	  	June 30,
2022	 	 	December 31,
2021	 	
Current 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	  	 	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	 	
	  	 	 	 	 	 	 	 	
Current liabilities:	  				 				
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	  	 	66	 	 	 	66	 	
Additional paid-in capital	  	 	7,060	 	 	 	7,636	 	
Retained earnings	  	 	3,107	 	 	 	1,692	 	
Accumulated other comprehensive loss	  	 	(130	) 	 	 	(132	) 	
Treasury stock, at cost, 0.2 million shares in 2022	  	 	(13	) 	 	 	—  	 	
	  	 	 	 	 	 	 	 	
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	 	
	  	 	 	 	 	 	 	 	
Common shares outstanding	  	 	656	 	 	 	663	 	
 
5

			

PRODUCTION

																					
 	  	2022	 	  	2021	 	
 	  	Quarter 2	 	  	Quarter 1	 	  	Quarter 4	 	  	Quarter 3	 	  	Quarter 2	 	
Oil (MBbls/d)	  				  				  				  				  				
Delaware Basin	  	 	222	 	  	 	209	 	  	 	213	 	  	 	213	 	  	 	191	 	
Anadarko Basin	  	 	14	 	  	 	14	 	  	 	14	 	  	 	14	 	  	 	17	 	
Williston Basin	  	 	27	 	  	 	32	 	  	 	36	 	  	 	39	 	  	 	46	 	
Eagle Ford	  	 	19	 	  	 	17	 	  	 	19	 	  	 	20	 	  	 	18	 	
Powder River Basin	  	 	14	 	  	 	12	 	  	 	14	 	  	 	14	 	  	 	16	 	
Other	  	 	4	 	  	 	4	 	  	 	4	 	  	 	3	 	  	 	3	 	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total	  	 	300	 	  	 	288	 	  	 	300	 	  	 	303	 	  	 	291	 	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Natural gas liquids (MBbls/d)	  				  				  				  				  				
Delaware Basin	  	 	111	 	  	 	92	 	  	 	107	 	  	 	100	 	  	 	82	 	
Anadarko Basin	  	 	25	 	  	 	25	 	  	 	27	 	  	 	25	 	  	 	26	 	
Williston Basin	  	 	9	 	  	 	8	 	  	 	9	 	  	 	9	 	  	 	9	 	
Eagle Ford	  	 	9	 	  	 	9	 	  	 	9	 	  	 	11	 	  	 	9	 	
Powder River Basin	  	 	2	 	  	 	2	 	  	 	2	 	  	 	3	 	  	 	3	 	
Other	  	 	—  	 	  	 	—  	 	  	 	—  	 	  	 	—  	 	  	 	—  	 	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total	  	 	156	 	  	 	136	 	  	 	154	 	  	 	148	 	  	 	129	 	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Gas (MMcf/d)	  				  				  				  				  				
Delaware Basin	  	 	618	 	  	 	561	 	  	 	577	 	  	 	578	 	  	 	513	 	
Anadarko Basin	  	 	212	 	  	 	210	 	  	 	222	 	  	 	219	 	  	 	225	 	
Williston Basin	  	 	52	 	  	 	54	 	  	 	64	 	  	 	59	 	  	 	61	 	
Eagle Ford	  	 	60	 	  	 	61	 	  	 	60	 	  	 	67	 	  	 	59	 	
Powder River Basin	  	 	18	 	  	 	19	 	  	 	19	 	  	 	19	 	  	 	21	 	
Other	  	 	1	 	  	 	1	 	  	 	1	 	  	 	1	 	  	 	2	 	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total	  	 	961	 	  	 	906	 	  	 	943	 	  	 	943	 	  	 	881	 	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total oil equivalent (MBoe/d)	  				  				  				  				  				
Delaware Basin	  	 	436	 	  	 	394	 	  	 	416	 	  	 	409	 	  	 	358	 	
Anadarko Basin	  	 	74	 	  	 	75	 	  	 	78	 	  	 	75	 	  	 	80	 	
Williston Basin	  	 	45	 	  	 	48	 	  	 	55	 	  	 	58	 	  	 	66	 	
Eagle Ford	  	 	38	 	  	 	36	 	  	 	38	 	  	 	42	 	  	 	37	 	
Powder River Basin	  	 	19	 	  	 	18	 	  	 	19	 	  	 	20	 	  	 	22	 	
Other	  	 	4	 	  	 	4	 	  	 	5	 	  	 	4	 	  	 	4	 	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total	  	 	616	 	  	 	575	 	  	 	611	 	  	 	608	 	  	 	567	 	

6

			

CAPITAL EXPENDITURES

																					
 	  	2022	 	  	2021	 	
(in millions)	  	Quarter 2	 	  	Quarter 1	 	  	Quarter 4	 	  	Quarter 3	 	  	Quarter 2	 	
Delaware Basin	  	$	374	 	  	$	413	 	  	$	392	 	  	$	363	 	  	$	394	 	
Anadarko Basin	  	 	42	 	  	 	16	 	  	 	19	 	  	 	15	 	  	 	11	 	
Williston Basin	  	 	21	 	  	 	17	 	  	 	25	 	  	 	13	 	  	 	19	 	
Eagle Ford	  	 	37	 	  	 	27	 	  	 	21	 	  	 	34	 	  	 	36	 	
Powder River Basin	  	 	37	 	  	 	27	 	  	 	27	 	  	 	15	 	  	 	5	 	
Other	  	 	2	 	  	 	1	 	  	 	2	 	  	 	2	 	  	 	2	 	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total upstream capital	  	$	513	 	  	$	501	 	  	$	486	 	  	$	442	 	  	$	467	 	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Environmental (1)	  	 	22	 	  	 	16	 	  	 	—  	 	  	 	—  	 	  	 	—  	 	
Midstream	  	 	10	 	  	 	32	 	  	 	14	 	  	 	11	 	  	 	22	 	
Other	  	 	35	 	  	 	15	 	  	 	21	 	  	 	28	 	  	 	20	 	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total capital	  	$	580	 	  	$	564	 	  	$	521	 	  	$	481	 	  	$	509	 	

(1)	Devon began tracking environmental capital separately in 2022.	
SUPPLEMENTAL INFORMATION FOR CAPITAL EXPENDITURES
 
GROSS OPERATED SPUDS
																					
 	  	2022	 	  	2021	 	
 	  	Quarter 2	 	  	Quarter 1	 	  	Quarter 4	 	  	Quarter 3	 	  	Quarter 2	 	
Delaware Basin	  	 	46	 	  	 	59	 	  	 	54	 	  	 	50	 	  	 	55	 	
Anadarko Basin	  	 	14	 	  	 	13	 	  	 	6	 	  	 	9	 	  	 	8	 	
Williston Basin	  	 	5	 	  	 	—  	 	  	 	9	 	  	 	—  	 	  	 	—  	 	
Eagle Ford	  	 	4	 	  	 	11	 	  	 	9	 	  	 	10	 	  	 	11	 	
Powder River Basin	  	 	1	 	  	 	—  	 	  	 	4	 	  	 	9	 	  	 	1	 	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total	  	 	70	 	  	 	83	 	  	 	82	 	  	 	78	 	  	 	75	 	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
GROSS OPERATED WELLS TIED-IN

 	  	2022	 	  	2021	 	
 	  	Quarter 2	 	  	Quarter 1	 	  	Quarter 4	 	  	Quarter 3	 	  	Quarter 2	 	
Delaware Basin	  	 	52	 	  	 	52	 	  	 	65	 	  	 	52	 	  	 	88	 	
Anadarko Basin	  	 	1	 	  	 	—  	 	  	 	12	 	  	 	4	 	  	 	6	 	
Williston Basin	  	 	—  	 	  	 	—  	 	  	 	—  	 	  	 	4	 	  	 	13	 	
Eagle Ford	  	 	14	 	  	 	8	 	  	 	7	 	  	 	19	 	  	 	9	 	
Powder River Basin	  	 	—  	 	  	 	4	 	  	 	2	 	  	 	2	 	  	 	—  	 	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total	  	 	67	 	  	 	64	 	  	 	86	 	  	 	81	 	  	 	116	 	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
AVERAGE LATERAL LENGTH
(based on wells tied-in)
																					
 	  	2022	 	  	2021	 	
 	  	Quarter 2	 	  	Quarter 1	 	  	Quarter 4	 	  	Quarter 3	 	  	Quarter 2	 	
Delaware Basin	  	 	9,100’	 	  	 	8,900’	 	  	 	10,100’	 	  	 	9,700’	 	  	 	10,000’	 	
Anadarko Basin	  	 	10,100’	 	  	 	—  	 	  	 	11,700’	 	  	 	9,200’	 	  	 	9,600’	 	
Williston Basin	  	 	—  	 	  	 	—  	 	  	 	—  	 	  	 	9,600’	 	  	 	10,000’	 	
Eagle Ford	  	 	5,800’	 	  	 	7,500’	 	  	 	7,100’	 	  	 	6,300’	 	  	 	5,600’	 	
Powder River Basin	  	 	—  	 	  	 	10,400’	 	  	 	9,600’	 	  	 	10,500’	 	  	 	—  	 	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total	  	 	8,400’	 	  	 	8,800’	 	  	 	10,100’	 	  	 	8,900’	 	  	 	9,600’	 	

7

			

REALIZED PRICING
 
BENCHMARK PRICES
(average prices)
																					
 	  	2022	 	  	2021	 	
 	  	Quarter 2	 	  	Quarter 1	 	  	Quarter 4	 	  	Quarter 3	 	  	Quarter 2	 	
Oil ($/Bbl) - West Texas Intermediate (Cushing)	  	$	108.70	 	  	$	94.45	 	  	$	76.91	 	  	$	70.64	 	  	$	66.04	 	
Natural Gas ($/Mcf) - Henry Hub	  	$	7.17	 	  	$	4.96	 	  	$	5.84	 	  	$	4.02	 	  	$	2.83	 	
NGL ($/Bbl) - Mont Belvieu Blended	  	$	46.44	 	  	$	43.99	 	  	$	40.39	 	  	$	36.85	 	  	$	28.54	 	
REALIZED PRICES

 	  	2022	 	 	2021	 	
 	  	Quarter 2	 	 	Quarter 1	 	 	Quarter 4	 	 	Quarter 3	 	 	Quarter 2	 	
Oil (Per Bbl)	  				 				 				 				 				
Delaware Basin	  	$	109.05	 	 	$	93.12	 	 	$	75.67	 	 	$	68.44	 	 	$	63.93	 	
Anadarko Basin	  	 	108.15	 	 	 	92.70	 	 	 	76.07	 	 	 	69.11	 	 	 	63.51	 	
Williston Basin	  	 	109.85	 	 	 	90.87	 	 	 	74.02	 	 	 	66.60	 	 	 	62.00	 	
Eagle Ford	  	 	109.77	 	 	 	94.51	 	 	 	75.35	 	 	 	68.32	 	 	 	64.04	 	
Powder River Basin	  	 	104.75	 	 	 	92.69	 	 	 	72.86	 	 	 	65.81	 	 	 	62.36	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Realized price without hedges	  	 	108.93	 	 	 	92.94	 	 	 	75.36	 	 	 	68.19	 	 	 	63.63	 	
Cash settlements	  	 	(13.13	) 	 	 	(11.32	) 	 	 	(13.14	) 	 	 	(10.60	) 	 	 	(13.29	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Realized price, including cash settlements	  	$	95.80	 	 	$	81.62	 	 	$	62.22	 	 	$	57.59	 	 	$	50.34	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Natural gas liquids (Per Bbl)	  				 				 				 				 				
Delaware Basin	  	$	40.75	 	 	$	38.43	 	 	$	35.56	 	 	$	31.34	 	 	$	23.81	 	
Anadarko Basin	  	 	41.64	 	 	 	38.38	 	 	 	35.66	 	 	 	33.20	 	 	 	25.55	 	
Williston Basin	  	 	23.88	 	 	 	20.71	 	 	 	24.97	 	 	 	19.36	 	 	 	14.76	 	
Eagle Ford	  	 	41.98	 	 	 	39.68	 	 	 	38.17	 	 	 	32.80	 	 	 	25.46	 	
Powder River Basin	  	 	55.62	 	 	 	52.49	 	 	 	47.30	 	 	 	40.66	 	 	 	35.46	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Realized price without hedges	  	 	40.28	 	 	 	37.76	 	 	 	35.36	 	 	 	31.25	 	 	 	23.89	 	
Cash settlements	  	 	—  	 	 	 	—  	 	 	 	(0.54	) 	 	 	(0.45	) 	 	 	(0.25	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Realized price, including cash settlements	  	$	40.28	 	 	$	37.76	 	 	$	34.82	 	 	$	30.80	 	 	$	23.64	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Gas (Per Mcf)	  				 				 				 				 				
Delaware Basin	  	$	6.41	 	 	$	3.83	 	 	$	4.60	 	 	$	3.58	 	 	$	2.31	 	
Anadarko Basin	  	 	7.11	 	 	 	4.00	 	 	 	5.37	 	 	 	4.05	 	 	 	3.15	 	
Williston Basin	  	 	1.56	 	 	 	0.74	 	 	 	1.53	 	 	 	0.65	 	 	 	(1.60	) 	
Eagle Ford	  	 	7.10	 	 	 	4.91	 	 	 	5.76	 	 	 	4.08	 	 	 	3.25	 	
Powder River Basin	  	 	7.93	 	 	 	4.24	 	 	 	6.10	 	 	 	4.15	 	 	 	3.54	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Realized price without hedges	  	 	6.37	 	 	 	3.77	 	 	 	4.68	 	 	 	3.55	 	 	 	2.35	 	
Cash settlements	  	 	(1.31	) 	 	 	(0.62	) 	 	 	(1.42	) 	 	 	(0.78	) 	 	 	(0.15	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Realized price, including cash settlements	  	$	5.06	 	 	$	3.15	 	 	$	3.26	 	 	$	2.77	 	 	$	2.20	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total oil equivalent (Per Boe)	  				 				 				 				 				
Delaware Basin	  	$	75.02	 	 	$	63.75	 	 	$	54.28	 	 	$	48.29	 	 	$	42.84	 	
Anadarko Basin	  	 	54.46	 	 	 	42.08	 	 	 	41.39	 	 	 	35.62	 	 	 	30.34	 	
Williston Basin	  	 	73.15	 	 	 	63.31	 	 	 	53.44	 	 	 	48.55	 	 	 	43.98	 	
Eagle Ford	  	 	75.07	 	 	 	62.74	 	 	 	56.06	 	 	 	47.40	 	 	 	42.84	 	
Powder River Basin	  	 	89.84	 	 	 	75.75	 	 	 	63.45	 	 	 	55.93	 	 	 	52.55	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Realized price without hedges	  	 	73.13	 	 	 	61.40	 	 	 	53.12	 	 	 	47.08	 	 	 	41.75	 	
Cash settlements	  	 	(8.43	) 	 	 	(6.65	) 	 	 	(8.78	) 	 	 	(6.60	) 	 	 	(7.11	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Realized price, including cash settlements	  	$	64.70	 	 	$	54.75	 	 	$	44.34	 	 	$	40.48	 	 	$	34.64	 	

8

			

ASSET MARGINS
 
BENCHMARK PRICES
(average prices)
																					
 	  	2022	 	  	2021	 	
 	  	Quarter 2	 	  	Quarter 1	 	  	Quarter 4	 	  	Quarter 3	 	  	Quarter 2	 	
Oil ($/Bbl) - West Texas Intermediate (Cushing)	  	$	108.70	 	  	$	94.45	 	  	$	76.91	 	  	$	70.64	 	  	$	66.04	 	
Natural Gas ($/Mcf) - Henry Hub	  	$	7.17	 	  	$	4.96	 	  	$	5.84	 	  	$	4.02	 	  	$	2.83	 	
NGL ($/Bbl) - Mont Belvieu Blended	  	$	46.44	 	  	$	43.99	 	  	$	40.39	 	  	$	36.85	 	  	$	28.54	 	
PER-UNIT CASH MARGIN BY ASSET (per Boe)

 	  	2022	 	 	2021	 	
 	  	Quarter 2	 	 	Quarter 1	 	 	Quarter 4	 	 	Quarter 3	 	 	Quarter 2	 	
Delaware Basin	  				 				 				 				 				
Realized price	  	$	75.02	 	 	$	63.75	 	 	$	54.28	 	 	$	48.29	 	 	$	42.84	 	
Lease operating expenses	  	 	(3.98	) 	 	 	(3.79	) 	 	 	(4.02	) 	 	 	(3.52	) 	 	 	(3.91	) 	
Gathering, processing & transportation	  	 	(2.37	) 	 	 	(2.32	) 	 	 	(2.27	) 	 	 	(2.18	) 	 	 	(2.06	) 	
Production & property taxes	  	 	(5.35	) 	 	 	(4.65	) 	 	 	(3.40	) 	 	 	(3.31	) 	 	 	(3.08	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Field-level cash margin	  	$	63.32	 	 	$	52.99	 	 	$	44.59	 	 	$	39.28	 	 	$	33.79	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Anadarko Basin	  				 				 				 				 				
Realized price	  	$	54.46	 	 	$	42.08	 	 	$	41.39	 	 	$	35.62	 	 	$	30.34	 	
Lease operating expenses	  	 	(3.49	) 	 	 	(2.75	) 	 	 	(2.70	) 	 	 	(2.58	) 	 	 	(2.96	) 	
Gathering, processing & transportation	  	 	(6.65	) 	 	 	(6.67	) 	 	 	(6.60	) 	 	 	(6.14	) 	 	 	(6.06	) 	
Production & property taxes	  	 	(3.17	) 	 	 	(2.35	) 	 	 	(2.44	) 	 	 	(1.70	) 	 	 	(1.46	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Field-level cash margin	  	$	41.15	 	 	$	30.31	 	 	$	29.65	 	 	$	25.20	 	 	$	19.86	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Williston Basin	  				 				 				 				 				
Realized price	  	$	73.15	 	 	$	63.31	 	 	$	53.44	 	 	$	48.55	 	 	$	43.98	 	
Lease operating expenses	  	 	(9.40	) 	 	 	(7.67	) 	 	 	(5.76	) 	 	 	(5.83	) 	 	 	(4.87	) 	
Gathering, processing & transportation	  	 	(2.44	) 	 	 	(2.32	) 	 	 	(2.09	) 	 	 	(2.13	) 	 	 	(1.86	) 	
Production & property taxes	  	 	(6.75	) 	 	 	(5.67	) 	 	 	(4.64	) 	 	 	(4.47	) 	 	 	(4.27	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Field-level cash margin	  	$	54.56	 	 	$	47.65	 	 	$	40.95	 	 	$	36.12	 	 	$	32.98	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Eagle Ford	  				 				 				 				 				
Realized price	  	$	75.07	 	 	$	62.74	 	 	$	56.06	 	 	$	47.40	 	 	$	42.84	 	
Lease operating expenses	  	 	(4.98	) 	 	 	(4.63	) 	 	 	(3.78	) 	 	 	(3.43	) 	 	 	(3.47	) 	
Gathering, processing & transportation	  	 	(6.39	) 	 	 	(5.67	) 	 	 	(6.65	) 	 	 	(4.17	) 	 	 	(5.56	) 	
Production & property taxes	  	 	(3.99	) 	 	 	(3.52	) 	 	 	(2.93	) 	 	 	(1.99	) 	 	 	(1.93	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Field-level cash margin	  	$	59.71	 	 	$	48.92	 	 	$	42.70	 	 	$	37.81	 	 	$	31.88	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Powder River Basin	  				 				 				 				 				
Realized price	  	$	89.84	 	 	$	75.75	 	 	$	63.45	 	 	$	55.93	 	 	$	52.55	 	
Lease operating expenses	  	 	(7.04	) 	 	 	(9.01	) 	 	 	(7.49	) 	 	 	(8.09	) 	 	 	(6.65	) 	
Gathering, processing & transportation	  	 	(3.50	) 	 	 	(3.19	) 	 	 	(2.86	) 	 	 	(2.93	) 	 	 	(3.02	) 	
Production & property taxes	  	 	(10.89	) 	 	 	(9.23	) 	 	 	(7.49	) 	 	 	(6.73	) 	 	 	(6.10	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Field-level cash margin	  	$	68.41	 	 	$	54.32	 	 	$	45.61	 	 	$	38.18	 	 	$	36.78	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Devon - Total	  				 				 				 				 				
Realized price	  	$	73.13	 	 	$	61.40	 	 	$	53.12	 	 	$	47.08	 	 	$	41.75	 	
Lease operating expenses	  	 	(4.56	) 	 	 	(4.33	) 	 	 	(4.18	) 	 	 	(3.85	) 	 	 	(4.06	) 	
Gathering, processing & transportation	  	 	(3.15	) 	 	 	(3.11	) 	 	 	(3.08	) 	 	 	(2.81	) 	 	 	(2.85	) 	
Production & property taxes	  	 	(5.30	) 	 	 	(4.51	) 	 	 	(3.49	) 	 	 	(3.25	) 	 	 	(3.05	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Field-level cash margin	  	$	60.12	 	 	$	49.45	 	 	$	42.37	 	 	$	37.17	 	 	$	31.79	 	

9

			

NON-GAAP MEASURES
 
(all monetary values in millions, except per share amounts)
Devon’s earnings materials include non-GAAP financial measures. These non-GAAP measures are not alternatives to GAAP measures, and you should not consider these non-GAAP measures in isolation or as a substitute for analysis of our results as reported under GAAP. Below is additional disclosure regarding each of the non-GAAP measures used in the earnings materials, including reconciliations to their most directly comparable GAAP measure.
The earnings materials may include forward-looking non-GAAP measures. The company is unable to provide reconciliations of these forward-looking non-GAAP measures, because components of the calculations are inherently unpredictable, such as changes to current assets and liabilities, the timing of changes in capital accruals, unknown future events and estimating certain future GAAP measures. The inability to reliably quantify certain components of the calculation would significantly affect the usefulness and accuracy of a reconciliation.
CORE EARNINGS
Devon’s reported net earnings include items of income and expense that are typically excluded by securities analysts in their published estimates of the company’s financial results. Accordingly, the company also uses the measures of core earnings and core earnings per share attributable to Devon. Devon believes these non-GAAP measures facilitate comparisons of its performance to earnings estimates published by securities analysts. Devon also believes these non-GAAP measures can facilitate comparisons of its performance between periods and to the performance of its peers. The following table summarizes the effects of these items on second quarter and first quarter 2022 earnings.

 	  	Quarter Ended June 30, 2022	 	
 	  	Before-tax	 	  	After-tax	 	  	After
Noncontrolling
Interests	 	  	Per
Diluted
Share	 	
Total	  				  				  				  				
Earnings (GAAP)	  	$	2,495	 	  	$	1,938	 	  	$	1,932	 	  	$	2.93	 	
Adjustments:	  				  				  				  				
Asset dispositions	  	 	(14	) 	  	 	(11	) 	  	 	(11	) 	  	 	(0.02	) 	
Asset and exploration impairments	  	 	8	 	  	 	6	 	  	 	6	 	  	 	0.01	 	
Deferred tax asset valuation allowance	  	 	—  	 	  	 	10	 	  	 	10	 	  	 	0.02	 	
Fair value changes in financial instruments	  	 	(299	) 	  	 	(230	) 	  	 	(230	) 	  	 	(0.35	) 	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Core earnings (Non-GAAP)	  	$	2,190	 	  	$	1,713	 	  	$	1,707	 	  	$	2.59	 	

																	
 	  	Quarter Ended March 31, 2022	 	
 	  	Before-tax	 	  	After-tax	 	  	After
Noncontrolling
Interests	 	  	Per
Diluted
Share	 	
Total	  				  				  				  				
Earnings (GAAP)	  	$	1,262	 	  	$	995	 	  	$	989	 	  	$	1.48	 	
Adjustments:	  				  				  				  				
Asset dispositions	  	 	(1	) 	  	 	—  	 	  	 	—  	 	  	 	—  	 	
Deferred tax asset valuation allowance	  	 	—  	 	  	 	6	 	  	 	6	 	  	 	0.01	 	
Fair value changes in financial instruments	  	 	338	 	  	 	260	 	  	 	260	 	  	 	0.39	 	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Core earnings (Non-GAAP)	  	$	1,599	 	  	$	1,261	 	  	$	1,255	 	  	$	1.88	 	

*	The tax impact for the adjustments to core earnings in the tables above are all deferred.	
 
10

			

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

 	  	Q2 ‘22	 	 	Q1 ‘22	 	 	Q4 ‘21	 	 	Q3 ‘21	 	 	TTM	 	 	Q2 ‘21	 	 	Q1 ‘21	 	
Net earnings (GAAP)	  	$	1,938	 	 	$	995	 	 	$	1,512	 	 	$	844	 	 	$	5,289	 	 	$	261	 	 	$	216	 	
Financing costs, net	  	 	84	 	 	 	85	 	 	 	86	 	 	 	86	 	 	 	341	 	 	 	80	 	 	 	77	 	
Income tax expense (benefit)	  	 	557	 	 	 	267	 	 	 	150	 	 	 	120	 	 	 	1,094	 	 	 	43	 	 	 	(248	) 	
Exploration expenses	  	 	10	 	 	 	2	 	 	 	5	 	 	 	3	 	 	 	20	 	 	 	3	 	 	 	3	 	
Depreciation, depletion and amortization	  	 	528	 	 	 	489	 	 	 	577	 	 	 	578	 	 	 	2,172	 	 	 	536	 	 	 	467	 	
Asset dispositions	  	 	(14	) 	 	 	(1	) 	 	 	(49	) 	 	 	—  	 	 	 	(64	) 	 	 	(87	) 	 	 	(32	) 	
Share-based compensation	  	 	22	 	 	 	20	 	 	 	19	 	 	 	18	 	 	 	79	 	 	 	20	 	 	 	20	 	
Derivative and financial instrument non-cash valuation changes	  	 	(302	) 	 	 	339	 	 	 	(515	) 	 	 	(35	) 	 	 	(513	) 	 	 	336	 	 	 	296	 	
Restructuring and transaction costs	  	 	—  	 	 	 	—  	 	 	 	28	 	 	 	18	 	 	 	46	 	 	 	23	 	 	 	189	 	
Accretion on discounted liabilities and other	  	 	10	 	 	 	(61	) 	 	 	(2	) 	 	 	2	 	 	 	(51	) 	 	 	(14	) 	 	 	(29	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
EBITDAX (Non-GAAP)	  	$	2,833	 	 	$	2,135	 	 	$	1,811	 	 	$	1,634	 	 	$	8,413	 	 	$	1,201	 	 	$	959	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Annualized EBITDAX for first-quarter 2021 (Non-GAAP)	  				 				 				 				 				 				 	$	3,836	 	
NET DEBT
Devon defines net debt as debt less cash, cash equivalents and cash restricted for discontinued operations. Devon believes that netting these sources of cash against debt provides a clearer picture of the future demands on cash from Devon to repay debt.

 	  	Jun. 30, 2022	 	 	Mar. 31, 2022	 	 	Dec. 31, 2021	 	 	Sep. 30, 2021	 	 	Jun. 30, 2021	 	 	Mar. 31, 2021	 	
Total debt (GAAP)	  	$	6,461	 	 	$	6,471	 	 	$	6,482	 	 	$	6,492	 	 	$	6,502	 	 	$	7,268	 	
Less:	  				 				 				 				 				 				
Cash, cash equivalents and restricted cash	  	 	(3,457	) 	 	 	(2,625	) 	 	 	(2,271	) 	 	 	(2,321	) 	 	 	(1,539	) 	 	 	(1,878	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net debt (Non-GAAP)	  	$	3,004	 	 	$	3,846	 	 	$	4,211	 	 	$	4,171	 	 	$	4,963	 	 	$	5,390	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
NET DEBT-TO-EBITDAX
Devon defines net debt-to-EBITDAX as net debt divided by an annualized EBITDAX measure. Devon believes this ratio provides information useful to investors in assessing the company’s credit position and debt leverage.

 	  	June 30, 2022	 	  	March 31, 2022	 	  	December 31, 2021	 	  	March 31, 2021	 	
Net debt (Non-GAAP)	  	$	3,004	 	  	$	3,846	 	  	$	4,211	 	  	$	5,390	 	
EBITDAX (Non-GAAP) (1)	  	$	8,413	 	  	$	6,781	 	  	$	5,605	 	  	$	3,836	 	
Net debt-to-EBITDAX (Non-GAAP)	  	 	0.4	 	  	 	0.6	 	  	 	0.8	 	  	 	1.4	 	
 
(1)	The second quarter 2022 EBITDAX is an annualized measure using a trailing twelve month calculation. The first quarter 2021 EBITDAX is an annualized measure. See the EBITDAX table above for additional details. Due to the merger with WPX closing in the first quarter of 2021, Devon has shown the first quarter 2021 EBITDAX annualized, divided by net debt to show a more meaningful net debt-to-EBITDAX measure.	
FREE CASH FLOW
Devon defines free cash flow as total operating cash flow less capital expenditures. Devon believes free cash flow provides a useful measure of available cash generated by operating activities for other investing and financing activities.

 	  	Quarter Ended
Jun. 30, 2022	 	 	Quarter Ended
Mar. 31, 2022	 	 	Quarter Ended
Dec. 31, 2021	 	 	Quarter Ended
Sep. 30, 2021	 	 	Quarter Ended
Jun. 30, 2021	 	
Total operating cash flow (GAAP)	  	$	2,678	 	 	$	1,837	 	 	$	1,616	 	 	$	1,598	 	 	$	1,093	 	
Less capital expenditures:	  				 				 				 				 				
Capital expenditures	  	 	(573	) 	 	 	(537	) 	 	 	(512	) 	 	 	(474	) 	 	 	(504	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Free cash flow (Non-GAAP)	  	$	2,105	 	 	$	1,300	 	 	$	1,104	 	 	$	1,124	 	 	$	589	 	

11

			

REINVESTMENT RATE
Devon defines reinvestment rate as accrued capital expenditures divided by operating cash flow. Devon believes this measure provides useful information to our investors as an indicator of the capital demands of our business relative to the cash flow generated from normal business operations.

 	  	Quarter Ended
June 30, 2022	 	 	Quarter Ended
March 31, 2022	 	 	Quarter Ended
December 31, 2021	 	
Capital expenditures (accrued)	  	$	580	 	 	$	564	 	 	$	521	 	
Operating cash flow	  	$	2,678	 	 	$	1,837	 	 	$	1,616	 	
	  	 	 	 	 	 	 	 	 	 	 	 	
Reinvestment rate (Non-GAAP)	  	 	22	% 	 	 	31	% 	 	 	32	% 	
	  	 	 	 	 	 	 	 	 	 	 	 	
VARIABLE DIVIDEND
Devon may pay a variable dividend up to 50 percent of its excess cash flow. Each quarter’s excess cash flow is computed as adjusted cash flow less capital expenditures and the fixed dividend.

 	  	Quarter Ended
June 30, 2022	 	
Operating cash flow (GAAP)	  	$	2,678	 	
Changes in assets and liabilities, net	  	 	(198	) 	
	  	 	 	 	
Adjusted cash flow (Non-GAAP)	  	 	2,480	 	
Capital expenditures (Accrued)	  	 	(580	) 	
	  	 	 	 	
Adjusted free cash flow (Non-GAAP)	  	 	1,900	 	
Fixed quarterly dividend	  	 	(105	) 	
	  	 	 	 	
Excess free cash flow (Non-GAAP)	  	 	1,795	 	
~50% Pay out (Board Discretion: Up to 50%)	  	 	50	% 	
	  	 	 	 	
Total variable dividend	  	$	897	 	

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THIRD-QUARTER AND FULL-YEAR 2022 GUIDANCE
 
PRODUCTION GUIDANCE

 	  	Quarter 3	 	  	Full Year 	 	
 	  	Low	 	  	High	 	  	Low	 	  	High	 	
Oil (MBbls/d)	  	 	287	 	  	 	295	 	  	 	294	 	  	 	299	 	
Natural gas liquids (MBbls/d)	  	 	151	 	  	 	156	 	  	 	148	 	  	 	152	 	
Gas (MMcf/d)	  	 	930	 	  	 	970	 	  	 	940	 	  	 	960	 	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total oil equivalent (MBoe/d)	  	 	593	 	  	 	613	 	  	 	600	 	  	 	610	 	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Note: Fourth production is estimated to increase ~4% due to timing of activity and higher working interest.
CAPITAL EXPENDITURES GUIDANCE

 	  	Quarter 3(1)	 	  	Full Year	 	
(in millions)	  	Low	 	  	High	 	  	Low	 	  	High	 	
Upstream capital	  	$	640	 	  	$	690	 	  	$	2,200	 	  	$	2,400	 	
Environmental capital	  	 	20	 	  	 	30	 	  	 	75	 	  	 	100	 	
Midstream & other capital	  	 	20	 	  	 	35	 	  	 	100	 	  	 	140	 	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total capital	  	$	680	 	  	$	755	 	  	$	2,375	 	  	$	2,640	 	

(1)	Devon expects to bring online ~100 new wells in the third quarter, driving higher production in the fourth quarter.	
PRICE REALIZATIONS GUIDANCE

 	  	Quarter 3	 	 	Full Year	 	
 	  	Low	 	 	High	 	 	Low	 	 	High	 	
Oil - % of WTI	  	 	95	% 	 	 	100	% 	 	 	95	% 	 	 	100	% 	
NGL - % of WTI	  	 	35	% 	 	 	40	% 	 	 	35	% 	 	 	40	% 	
Natural gas - % of Henry Hub	  	 	80	% 	 	 	85	% 	 	 	80	% 	 	 	85	% 	
OTHER GUIDANCE ITEMS

 	  	Quarter 3	 	 	Full Year	 	
($ millions, except Boe and %)	  	Low	 	 	High	 	 	Low	 	 	High	 	
Marketing & midstream operating profit	  	$	(10	) 	 	$	—  	 	 	$	(25	) 	 	$	(15	) 	
LOE & GP&T per BOE	  	$	7.50	 	 	$	7.90	 	 	$	7.50	 	 	$	7.80	 	
Production & property taxes as % of upstream sales	  	 	7.0	% 	 	 	8.0	% 	 	 	7.0	% 	 	 	8.0	% 	
Exploration expenses	  	$	—  	 	 	$	5	 	 	$	5	 	 	$	15	 	
Depreciation, depletion and amortization	  	$	510	 	 	$	560	 	 	$	2,050	 	 	$	2,150	 	
General & administrative expenses	  	$	85	 	 	$	95	 	 	$	340	 	 	$	365	 	
Net financing costs, net	  	$	80	 	 	$	90	 	 	$	335	 	 	$	345	 	
Other expenses	  	$	—  	 	 	$	10	 	 	$	(50	) 	 	$	(30	) 	
INCOME TAX GUIDANCE

(% of pre-tax earnings)	  	Quarter 3	 	 	Full Year	 	
Current income tax rate	  	 	10	% 	 	 	10	% 	
Deferred income tax rate	  	 	12	% 	 	 	12	% 	
	  	 	 	 	 	 	 	 	
Total income tax rate	  	 	22	% 	 	 	22	% 	

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CONTINGENT PAYMENTS FOR BARNETT SHALE DIVESTITURE (4-year period beginning in 2021)

															
WTI Threshold	 	 	WTI Annual Earnout Amount	 	 	Henry Hub Threshold	 	 	Henry Hub Annual Earnout
Amount	 	
$	50.00	 	 	$	10,000,000	 	 	$	2.75	 	 	$	20,000,000	 	
$	55.00	 	 	$	12,500,000	 	 	$	3.00	 	 	$	25,000,000	 	
$	60.00	 	 	$	15,000,000	 	 	$	3.25	 	 	$	35,000,000	 	
$	65.00	 	 	$	20,000,000	 	 	$	3.50	 	 	$	45,000,000	 	
2022 & 2023 HEDGING POSITIONS
 
Oil Commodity Hedges

 	  	Price Swaps	 	  	Price Collars	 		
	Period	  	Volume (Bbls/d)	 	  	Weighted
Average Price
($/Bbl)	 	  	Volume
(Bbls/d)	 	  	Weighted
Average Floor
Price ($/Bbl)	 	  	Weighted
Average Ceiling
Price ($/Bbl)	 	
Q3 2022	  	 	35,000	 	  	$	44.61	 	  	 	42,500	 	  	$	56.11	 	  	$	73.82	 		
Q4 2022	  	 	35,000	 	  	$	44.61	 	  	 	45,500	 	  	$	63.32	 	  	$	90.33	 		
Q1-Q4 2023	  	 	—  	 	  	$	—  	 	  	 	37,193	 	  	$	68.55	 	  	$	95.92	 		
Oil Basis Swaps

	Period	  		Index	  	Volume (Bbls/d)	 	  	Weighted Average
Differential to WTI
($/Bbl)	 	
Q3-Q4 2022	  	BRENT/WTI Spread	  	 	1,000	 	  	$	(7.75	) 		
Q3-Q4 2022	  	NYMEX Roll	  	 	29,000	 	  	$	0.45	 		
Q1-Q4 2023	  	Midland Sweet	  	 	12,296	 	  	$	0.52	 		
Natural Gas Commodity Hedges - Henry Hub

 	  	Price Swaps	 	  	Price Collars	 		
	Period	  	Volume (MMBtu/d)	 	  	Weighted
Average Price
($/MMBtu)	 	  	Volume
(MMBtu/d)	 	  	Weighted
Average Floor
Price
($/MMBtu)	 	  	Weighted
Average Ceiling
Price
($/MMBtu)	 	
Q3 2022	  	 	110,000	 	  	$	2.79	 	  	 	221,000	 	  	$	2.98	 	  	$	4.35	 		
Q4 2022	  	 	125,000	 	  	$	3.34	 	  	 	165,000	 	  	$	3.16	 	  	$	4.82	 		
Q1-Q4 2023	  	 	8,658	 	  	$	5.24	 	  	 	106,436	 	  	$	3.58	 	  	$	7.81	 		
Natural Gas Basis Swaps

	Period	  		Index	  	Volume (MMBtu/d)	 	  	Weighted Average
Differential to Henry
Hub ($/MMBtu)	 	
Q3-Q4 2022	  	WAHA	  	 	70,000	 	  	$	(0.57	) 		
Q3-Q4 2022	  	El Paso Permian	  	 	50,000	 	  	$	(0.85	) 		
Q3-Q4 2022	  	Houston Ship Channel	  	 	40,000	 	  	$	(0.15	) 		
Q1-Q4 2023	  	WAHA	  	 	70,000	 	  	$	(0.51	) 		
Q1-Q4 2023	  	El Paso Permian	  	 	140,041	 	  	$	(1.58	) 		
Q1-Q4 2023	  	Houston Ship Channel	  	 	50,000	 	  	$	(0.13	) 		
Devon’s oil derivatives settle against the average of the prompt month NYMEX West Texas Intermediate futures price. Devon’s natural gas derivatives settle against the Inside FERC end of the month NYMEX index. Commodity hedge positions are shown as of July 27, 2022.
 
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