DEVON ENERGY CORP/DE, 10-Q filed on 5/5/2021
Quarterly Report
v3.21.1
Document And Entity Information - shares
shares in Millions
3 Months Ended
Mar. 31, 2021
Apr. 21, 2021
Cover [Abstract]    
Document Type 10-Q  
Document Period End Date Mar. 31, 2021  
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 2021  
Entity Filer Category Large Accelerated Filer  
Entity Small Business false  
Entity Emerging Growth Company false  
Document Fiscal Period Focus Q1  
Entity Common Stock, Shares Outstanding   676.9
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 $0.10 per share  
Security Exchange Name NYSE  
Entity Incorporation, State or Country Code DE  
Document Quarterly Report true  
Document Transition Report false  
v3.21.1
Consolidated Statements of Comprehensive Earnings - USD ($)
$ in Millions
3 Months Ended
Mar. 31, 2021
Mar. 31, 2020
Revenues $ 2,290 $ 1,367
Oil, gas and NGL derivatives (528) 720
Total revenues 1,762 2,087
Production expenses 489 318
Exploration expenses 3 112
Depreciation, depletion and amortization 467 401
Asset impairments   2,666
Asset dispositions (32)  
General and administrative expenses 107 102
Financing costs, net 77 65
Restructuring and transaction costs 189  
Other, net (29) (48)
Total expenses 1,794 4,194
Loss from continuing operations before income taxes (32) (2,107)
Income tax benefit (248) (417)
Net earnings (loss) from continuing operations 216 (1,690)
Net loss from discontinued operations, net of income taxes   (125)
Net earnings (loss) 216 (1,815)
Net earnings attributable to noncontrolling interests 3 1
Net earnings (loss) attributable to Devon $ 213 $ (1,816)
Basic net earnings (loss) per share:    
Basic earnings (loss) from continuing operations per share $ 0.33 $ (4.48)
Basic loss from discontinued operations per share   (0.34)
Basic net earnings (loss) per share 0.33 (4.82)
Diluted net earnings (loss) per share:    
Diluted earnings (loss) from continuing operations per share 0.32 (4.48)
Diluted loss from discontinued operations per share   (0.34)
Diluted net earnings (loss) per share $ 0.32 $ (4.82)
Comprehensive earnings (loss):    
Net earnings (loss) $ 216 $ (1,815)
Other comprehensive earnings (loss), net of tax:    
Pension and postretirement plans 23 1
Other comprehensive earnings, net of tax 23 1
Comprehensive earnings (loss): 239 (1,814)
Comprehensive earnings attributable to noncontrolling interests 3 1
Comprehensive earnings (loss) attributable to Devon 236 (1,815)
Oil, Gas and NGL Sales [Member]    
Revenues 1,788 807
Marketing and Midstream Revenues [Member]    
Revenues 502 560
Marketing and Midstream Expenses [Member]    
Expenses $ 523 $ 578
v3.21.1
Consolidated Statements Of Cash Flows - USD ($)
$ in Millions
3 Months Ended
Mar. 31, 2021
Mar. 31, 2020
Cash flows from operating activities:    
Net earnings (loss) $ 216 $ (1,815)
Adjustments to reconcile net earnings (loss) to net cash from operating activities:    
Net loss from discontinued operations, net of income taxes   125
Depreciation, depletion and amortization 467 401
Asset impairments   2,666
Leasehold impairments 1 110
(Amortization) accretion of liabilities (54) 8
Total (gains) losses on commodity derivatives 528 (720)
Cash settlements on commodity derivatives (232) 101
Gains on asset dispositions (32)  
Deferred income tax benefit (243) (311)
Share-based compensation 41 20
Early retirement of debt 27  
Changes in assets and liabilities, net (127) (56)
Net cash from operating activities - continuing operations 592 529
Cash flows from investing activities:    
Capital expenditures (499) (425)
Acquisitions of property and equipment   (4)
Divestitures of property and equipment 15 25
WPX acquired cash 344  
Distributions from equity method investments 10  
Net cash from investing activities - continuing operations (130) (404)
Cash flows from financing activities:    
Repayments of long-term debt (533)  
Early retirement of debt (27)  
Repurchases of common stock   (38)
Dividends paid on common stock (203) (34)
Contributions from noncontrolling interests   5
Distributions to noncontrolling interests (4) (3)
Acquisition of noncontrolling interests (24)  
Shares exchanged for tax withholdings (33) (17)
Net cash from financing activities - continuing operations (824) (87)
Effect of exchange rate changes on cash - continuing operations 3  
Net change in cash, cash equivalents and restricted cash of continuing operations (359) 38
Cash flows from discontinued operations:    
Operating activities 0 (131)
Investing activities 0 (1)
Financing activities 0 0
Effect of exchange rate changes on cash 0 (23)
Net change in cash, cash equivalents and restricted cash of discontinued operations 0 (155)
Net change in cash, cash equivalents and restricted cash (359) (117)
Cash, cash equivalents and restricted cash at beginning of period 2,237 1,844
Cash, cash equivalents and restricted cash at end of period 1,878 1,727
Reconciliation of cash, cash equivalents and restricted cash:    
Cash and cash equivalents 1,683 1,527
Restricted cash 195 200
Cash, cash equivalents and restricted cash at end of period $ 1,878 $ 1,727
v3.21.1
Consolidated Balance Sheets - USD ($)
$ in Millions
Mar. 31, 2021
Dec. 31, 2020
ASSETS    
Cash, cash equivalents and restricted cash $ 1,878 $ 2,237
Accounts receivable 1,089 601
Income taxes receivable 166 174
Other current assets 334 248
Total current assets 3,467 3,260
Oil and gas property and equipment, based on successful efforts accounting, net 13,826 4,436
Other property and equipment, net ($106 million and $102 million related to CDM in 2021 and 2020, respectively) [1] 1,448 957
Total property and equipment, net 15,274 5,393
Goodwill 753 753
Right-of-use assets 255 223
Investments 402 12
Other long-term assets 306 271
Total assets 20,457 9,912
LIABILITIES AND EQUITY    
Accounts payable 564 242
Revenues and royalties payable 909 662
Short-term debt 226  
Other current liabilities 1,246 536
Total current liabilities 2,945 1,440
Long-term debt 7,042 4,298
Lease liabilities 260 246
Asset retirement obligations 455 358
Other long-term liabilities 1,269 551
Stockholders' equity:    
Common stock, $0.10 par value. Authorized 1.0 billion shares; issued 675 million and 382 million shares in 2021 and 2020, respectively 67 38
Additional paid-in capital 8,172 2,766
Retained earnings 218 208
Accumulated other comprehensive loss (104) (127)
Total stockholders’ equity attributable to Devon 8,353 2,885
Noncontrolling interests 133 134
Total equity 8,486 3,019
Total liabilities and equity $ 20,457 $ 9,912
[1] $106 million and $102 million related to CDM in 2021 and 2020, respectively.
v3.21.1
Consolidated Balance Sheets (Parenthetical) - USD ($)
$ in Millions
Mar. 31, 2021
Dec. 31, 2020
Other property and equipment, net [1] $ 1,448 $ 957
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) 675,000,000 382,000,000
CDM [Member]    
Other property and equipment, net $ 106 $ 102
[1] $106 million and $102 million related to CDM in 2021 and 2020, respectively.
v3.21.1
Consolidated Statements Of Equity - USD ($)
shares in Millions, $ in Millions
Total
Common Stock [Member]
Additional Paid-In Capital [Member]
Retained Earning (Accumulated Deficit) [Member]
Other Comprehensive Earnings (Loss) [Member]
Treasury Stock [Member]
Noncontrolling Interests [Member]
Balance at Dec. 31, 2019 $ 5,920 $ 38 $ 2,735 $ 3,148 $ (119)   $ 118
Balance, shares at Dec. 31, 2019   382          
Net earnings (loss) (1,815)     (1,816)     1
Other comprehensive earnings (loss), net of tax 1       1    
Restricted stock grants, net of cancellations, shares   3          
Common stock repurchased (54)         $ (54)  
Common stock retired     (54)     54  
Common stock retired, shares   (3)          
Common stock dividends (34)     (34)      
Share-based compensation 20   20        
Share-based compensation, shares   1          
Contributions from noncontrolling interests 5           5
Distributions to noncontrolling interests (3)           (3)
Balance at Mar. 31, 2020 4,040 $ 38 2,701 1,298 (118)   121
Balance, shares at Mar. 31, 2020   383          
Balance at Dec. 31, 2020 3,019 $ 38 2,766 208 (127)   134
Balance, shares at Dec. 31, 2020   382          
Net earnings (loss) 216     213     3
Other comprehensive earnings (loss), net of tax 23       23    
Restricted stock grants, net of cancellations, shares   4          
Common stock repurchased (38)         (38)  
Common stock retired     (38)     $ 38  
Common stock retired, shares   (2)          
Common stock dividends (203)     (203)      
Common stock issued 5,432 $ 29 5,403        
Common stock issued, Shares   290          
Share-based compensation 41   41        
Share-based compensation, shares   1          
Distributions to noncontrolling interests (4)           (4)
Balance at Mar. 31, 2021 $ 8,486 $ 67 $ 8,172 $ 218 $ (104)   $ 133
Balance, shares at Mar. 31, 2021   675          
v3.21.1
Summary Of Significant Accounting Policies
3 Months Ended
Mar. 31, 2021
Accounting Policies [Abstract]  
Summary Of Significant Accounting Policies

DEVON ENERGY CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

 

1.

Summary of Significant Accounting Policies

The accompanying unaudited interim financial statements and notes of Devon have been prepared pursuant to the rules and regulations of the SEC. Pursuant to such rules and regulations, certain disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been omitted. The accompanying unaudited interim financial statements and notes should be read in conjunction with the financial statements and notes included in Devon’s 2020 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 periods ended March 31, 2021 and 2020 and Devon’s financial position as of March 31, 2021.

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.

As further discussed in Note 18, Devon closed on the sale of its Barnett Shale assets in October 2020. Prior to December 31, 2020, activity relating to Devon’s Barnett Shale assets is classified as discontinued operations within Devon’s consolidated statements of comprehensive earnings and consolidated statements of cash flows.

As of March 31, 2021, Devon classified approximately $185 million of cash as restricted cash on the consolidated balance sheets for obligations associated with the abandonment of certain gas processing contracts related to divestitures of other Barnett Shale assets that occurred in 2018 and obligations retained related to 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 (“QLCP”). 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, on Devon's consolidated balance sheets if material.

 

Investments

In conjunction with the Merger, Devon acquired an interest in Catalyst which is a joint venture established between WPX and Howard Energy Partners (“HEP”) to develop oil gathering and natural gas processing infrastructure in the Stateline area of the Delaware Basin. Under the terms of the agreement, Devon and HEP each have a 50 percent 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 sheet and Devon’s share of Catalyst earnings are reflected as a component of other, net in the accompanying consolidated statements of comprehensive earnings.         

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 March 31,

 

 

 

2021

 

 

2020

 

Oil

 

$

1,357

 

 

$

662

 

Gas

 

 

207

 

 

 

70

 

NGL

 

 

224

 

 

 

75

 

Oil, gas and NGL sales

 

 

1,788

 

 

 

807

 

 

 

 

 

 

 

 

 

 

Oil

 

 

209

 

 

 

329

 

Gas

 

 

118

 

 

 

94

 

NGL

 

 

175

 

 

 

137

 

Marketing and midstream revenues

 

 

502

 

 

 

560

 

Total revenues from contracts with customers

 

$

2,290

 

 

$

1,367

 

 

v3.21.1
Acquisition and Divestitures
3 Months Ended
Mar. 31, 2021
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.

 

Purchase Price Allocation

The transaction has been accounted for using the acquisition method of accounting, with Devon being treated as the accounting acquirer. Under the acquisition method of accounting, the assets and liabilities of WPX and its subsidiaries have been recorded at their respective fair values as of the date of completion of the Merger and added to Devon’s. The preliminary purchase price assessment remains an ongoing process and is subject to change for up to one year subsequent to the closing date of the Merger. Determining the fair value of the assets and liabilities of WPX requires judgment and certain assumptions to be made, the most significant of these being related to the valuation of WPX’s oil and gas properties. The inputs and assumptions related to the oil and gas properties are categorized as level 3 in the fair value hierarchy.

The following table represents the preliminary allocation of the total purchase price of WPX to the identifiable assets acquired and the liabilities assumed based on the fair values as of the acquisition date.

 

 

Preliminary Purchase Price Allocation

 

Consideration:

 

 

 

 

WPX Common Stock outstanding

 

 

561.2

 

Exchange Ratio

 

 

0.5165

 

Devon common stock issued

 

 

289.9

 

Devon closing price on January 7, 2021

 

$

18.57

 

Total common equity consideration

 

 

5,383

 

Share-based replacement awards

 

 

49

 

Total consideration

 

$

5,432

 

Assets acquired:

 

 

 

 

Cash, cash equivalents and restricted cash

 

$

344

 

Accounts receivable

 

 

425

 

Other current assets

 

 

49

 

Right-of-use assets

 

 

38

 

Proved oil and gas property and equipment

 

 

7,017

 

Unproved and properties under development

 

 

2,367

 

Other property and equipment

 

 

485

 

Investments

 

 

400

 

Other long-term assets

 

 

43

 

Total assets acquired

 

$

11,168

 

Liabilities assumed:

 

 

 

 

Accounts payable

 

$

346

 

Revenue and royalties payable

 

 

223

 

Other current liabilities

 

 

454

 

Debt

 

 

3,562

 

Lease liabilities

 

 

38

 

Asset retirement obligations

 

 

94

 

Deferred income taxes

 

 

254

 

Other long-term liabilities

 

 

765

 

Total liabilities assumed

 

 

5,736

 

Net assets acquired

 

$

5,432

 

 

WPX Revenues and Earnings

 

The following table represents WPX’s revenues and earnings included in Devon’s consolidated comprehensive statements of earnings subsequent to the closing date of the Merger.

 

 

 

Three Months Ended March 31,

 

 

 

2021

 

Total revenues

 

$

772

 

Net earnings

 

$

166

 

 

 

Pro Forma Financial Information

 

Due to the Merger closing on January 7, 2021, all activity in the first quarter of 2021 except for the first six days of January is included in Devon’s consolidated statements of comprehensive earnings. The following unaudited pro forma financial information for the three months ended March 31, 2020 is based on our historical consolidated financial statements adjusted to reflect as if the Merger had occurred on January 1, 2020. The information below reflects pro forma adjustments to conform WPX’s historical financial information to Devon’s financial statement presentation. The unaudited pro forma financial information is not necessarily indicative of what would have occurred if the Merger had been completed as of the beginning of the periods presented, nor is it indicative of future results.

 

 

 

Three Months Ended March 31,

 

Continuing operations:

 

2020

 

Total revenues

 

$

3,485

 

Net loss

 

$

(1,864

)

Basic net loss per share

 

$

(2.77

)

 

Divestitures

 

On March 3, 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. The transaction includes contingent earnout payments of up to $8 million. The total estimated proved reserves associated with these divested assets are approximately 3 MMBoe. As of December 31, 2020, the associated assets and liabilities were classified as assets held for sale and included in other current assets and other current liabilities, respectively.

 

On October 1, 2020, Devon completed the sale of its Barnett Shale assets to BKV for proceeds, net of purchase price adjustments, of $490 million. The agreement with BKV also provides for contingent earnout payments to Devon of up to $260 million based upon future commodity prices, with upside participation beginning at a $2.75 Henry Hub natural gas price or a $50 WTI oil price. The contingent payment period commenced on January 1, 2021 and has a term of four years. Devon recognized a $748 million asset impairment related to these assets in the fourth quarter of 2019 and incremental asset impairments of $179 million and $3 million during the first quarter and third quarter of 2020, respectively. Additional information can be found in Note 18.

 

v3.21.1
Derivative Financial Instruments
3 Months Ended
Mar. 31, 2021
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, price swaptions, 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 March 31, 2021, 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 March 31, 2021, Devon neither held cash collateral of its counterparties nor posted cash collateral to its counterparties.

Commodity Derivatives

As of March 31, 2021, 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 Swaptions

 

 

Price Collars

 

 

Call Options Sold

 

Period

 

Volume

(Bbls/d)

 

 

Weighted

Average

Price ($/Bbl)

 

 

Volume

(Bbls/d)

 

 

Weighted

Average

Price ($/Bbl)

 

 

Volume

(Bbls/d)

 

 

Weighted

Average Floor

Price ($/Bbl)

 

 

Weighted

Average

Ceiling Price

($/Bbl)

 

 

Volume

(Bbls/d)

 

 

Weighted

Average Price

($/Bbl)

 

Q2-Q4 2021

 

 

81,122

 

 

$

40.45

 

 

 

6,691

 

 

$

40.12

 

 

 

40,905

 

 

$

39.84

 

 

$

49.84

 

 

 

5,000

 

 

$

39.50

 

Q1-Q4 2022

 

 

25,619

 

 

$

43.82

 

 

 

10,323

 

 

$

46.46

 

 

 

15,733

 

 

$

44.92

 

 

$

54.92

 

 

 

 

 

$

 

 

 

 

 

Oil Basis Swaps

 

Period

 

Index

 

Volume

(Bbls/d)

 

 

Weighted Average

Differential to WTI

($/Bbl)

 

Q2-Q4 2021

 

Midland Sweet

 

 

22,669

 

 

$

0.84

 

Q2-Q4 2021

 

Guernsey Light Sweet

 

 

2,007

 

 

$

(1.48

)

Q2-Q4 2021

 

BRENT

 

 

1,000

 

 

$

(8.00

)

Q2-Q4 2021

 

NYMEX Roll

 

 

11,676

 

 

$

0.38

 

Q1-Q4 2022

 

BRENT

 

 

1,000

 

 

$

(7.75

)

Q1-Q4 2022

 

NYMEX Roll

 

 

16,000

 

 

$

0.37

 

As of March 31, 2021, 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 Swaptions (2)

 

 

Price Collars (2)

 

 

Call Options Sold (2)

 

Period

 

Volume (MMBtu/d)

 

 

Weighted Average Price ($/MMBtu)

 

 

Volume (MMBtu/d)

 

 

Weighted Average Price ($/MMBtu)

 

 

Volume (MMBtu/d)

 

 

Weighted Average Floor Price ($/MMBtu)

 

 

Weighted Average

Ceiling Price ($/MMBtu)

 

 

Volume (MMBtu/d)

 

 

Weighted Average Price ($/MMBtu)

 

Q2-Q4 2021

 

 

270,636

 

 

$

2.63

 

 

 

 

 

$

 

 

 

196,218

 

 

$

2.46

 

 

$

2.96

 

 

 

50,000

 

 

$

2.68

 

Q1-Q4 2022

 

 

3,452

 

 

$

2.85

 

 

 

100,000

 

 

$

2.70

 

 

 

69,110

 

 

$

2.54

 

 

$

3.04

 

 

 

 

 

$

 

 

 

(1)

Related to the 2021 open positions, 30,636 MMBtu/d settle against the Inside FERC first of month Henry Hub index at an average price of $2.76 and 240,000 MMBtu/d settle against the end of month NYMEX index at an average price of $2.62. All 2022 open positions settle against the Inside FERC first of month Henry Hub index.

 

(2)

Price swaptions and call options settle against end of the month NYMEX index. Price collars settle against the Inside FERC first of the month Henry Hub Index.

 

 

 

Natural Gas Basis Swaps

 

Period

 

Index

 

Volume

(MMBtu/d)

 

 

Weighted Average

Differential to

Henry Hub

($/MMBtu)

 

Q2-Q4 2021

 

El Paso Natural Gas

 

 

35,000

 

 

$

(0.92

)

Q2-Q4 2021

 

WAHA

 

 

80,000

 

 

$

(0.65

)

Q1-Q4 2022

 

WAHA

 

 

70,000

 

 

$

(0.57

)

Q1-Q4 2023

 

WAHA

 

 

70,000

 

 

$

(0.51

)

Q1-Q4 2024

 

WAHA

 

 

40,000

 

 

$

(0.51

)

 

 

 

As of March 31, 2021, Devon had the following open NGL derivative positions. Devon’s NGL positions settle against the average of the prompt month OPIS Mont Belvieu, Texas index.

 

 

 

 

 

Price Swaps

 

Period

 

Product

 

Volume (Bbls/d)

 

 

Weighted Average Price ($/Bbl)

 

Q2-Q4 2021

 

Natural Gasoline

 

 

1,000

 

 

$

47.57

 

Q2-Q4 2021

 

Normal Butane

 

 

1,000

 

 

$

31.40

 

Q2-Q4 2021

 

Propane

 

 

1,000

 

 

$

27.88

 

 

Financial Statement Presentation

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

 

 

March 31, 2021

 

 

December 31, 2020

 

Commodity derivative assets:

 

 

 

 

 

 

 

 

Other current assets

 

$

3

 

 

$

5

 

Other long-term assets

 

 

3

 

 

 

1

 

Total derivative assets

 

$

6

 

 

$

6

 

Commodity derivative liabilities:

 

 

 

 

 

 

 

 

Other current liabilities

 

$

667

 

 

$

143

 

Other long-term liabilities

 

 

122

 

 

 

5

 

Total derivative liabilities

 

$

789

 

 

$

148

 

 

v3.21.1
Share-Based Compensation
3 Months Ended
Mar. 31, 2021
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]  
Share-Based Compensation

4.Share-Based Compensation

 

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

 

 

 

Three Months Ended March 31,

 

 

 

2021

 

 

2020

 

G&A

 

$

20

 

 

$

20

 

Restructuring and transaction costs

 

 

21

 

 

 

 

Total

 

$

41

 

 

$

20

 

 

 

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

 

 

 

 

 

 

Performance-Based

 

 

Performance

 

 

 

Restricted Stock Awards & Units

 

 

Restricted Stock Awards

 

 

Share Units

 

 

 

Awards/Units

 

 

Weighted

Average

Grant-Date

Fair Value

 

 

Awards

 

 

Weighted

Average

Grant-Date

Fair Value

 

 

Units

 

 

 

 

 

Weighted

Average

Grant-Date

Fair Value

 

 

 

(Thousands, except fair value data)

 

Unvested at 12/31/20

 

 

5,316

 

 

$

25.82

 

 

 

44

 

 

$

44.70

 

 

 

1,994

 

 

 

 

 

$

31.89

 

Granted (1)

 

 

5,542

 

 

$

18.71

 

 

 

 

 

$

 

 

 

861

 

 

 

 

 

$

18.08

 

Vested

 

 

(4,329

)

 

$

22.63

 

 

 

(39

)

 

$

45.41

 

 

 

(754

)

 

 

 

 

$

37.40

 

Forfeited

 

 

(20

)

 

$

24.79

 

 

 

 

 

$

 

 

 

(25

)

 

 

 

 

$

36.04

 

Unvested at 3/31/21

 

 

6,509

 

 

$

21.89

 

 

 

5

 

 

$

38.54

 

 

 

2,076

 

 

(2

)

 

$

24.12

 

 

 

(1)

Due to the closing 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. As a result, approximately 4.9 million awards relate to the conversion of WPX equity awards to Devon equity awards.  

 

(2)

A maximum of 4.2 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 2021, as indicated in the previous summary table.

 

 

 

2021

 

Grant-date fair value

 

$

18.08

 

Risk-free interest rate

 

0.18%

 

Volatility factor

 

67.8%

 

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 March 31, 2021.

 

 

 

 

 

 

 

Performance-Based

 

 

 

 

 

 

 

Restricted Stock

 

 

Restricted Stock

 

 

Performance

 

 

 

Awards/Units

 

 

Awards

 

 

Share Units

 

Unrecognized compensation cost

 

$

88

 

 

$

 

 

$

21

 

Weighted average period for recognition (years)

 

 

2.2

 

 

 

0.2

 

 

 

2.3

 

 

v3.21.1
Asset Impairments
3 Months Ended
Mar. 31, 2021
Asset Impairment Charges [Abstract]  
Asset Impairments

 

5.Asset Impairments

 

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

 

 

 

Three Months Ended March 31,

 

 

 

2021

 

 

2020

 

Proved oil and gas assets

 

$

 

 

$

2,664

 

Other assets

 

 

 

 

 

2

 

Total asset impairments

 

$

 

 

$

2,666

 

 

 

 

 

 

 

 

 

 

Unproved impairments

 

$

1

 

 

$

110

 

 

 

Proved Oil and Gas and Other Asset Impairments

Due to the reduced demand from the COVID-19 pandemic causing an unprecedented downturn in the price of oil and reductions in near-term capital investment, Devon recognized approximately $2.7 billion of proved asset impairments during the first quarter of 2020. These impairments related to the Anadarko Basin and Rockies fields in which the cost basis included acquisitions completed in 2016 and 2015, respectively, when commodity prices were much higher. During the first quarter of 2020, Devon also recognized $2 million of product line fill impairments.

Unproved Impairments

Due to the downturn in the commodity price environment and reduced near-term investment as discussed above, Devon also recognized $110 million of unproved impairments during the first three months of 2020, primarily in the Rockies field.

v3.21.1
Restructuring and Transaction Costs
3 Months Ended
Mar. 31, 2021
Restructuring And Related Activities [Abstract]  
Restructuring and Transaction Costs

6.Restructuring and Transaction Costs

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

 

 

 

Three Months Ended March 31,

 

 

 

2021

 

 

2020

 

Restructuring

 

$

143

 

 

$

 

Transaction costs

 

 

46

 

 

 

 

Total

 

$

189

 

 

$

 

In conjunction with the Merger closing, Devon recognized $143 million of restructuring expenses during the first quarter of 2021 related to employee severance and termination benefits, settlements and curtailments from defined retirement benefits and contract terminations. Of these expenses, $37 million and $21 million resulted from settlements and curtailments of defined retirement benefits and accelerated vesting of share-based grants, respectively, which are 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, 2020

 

$

35

 

 

$

137

 

 

$

172

 

Changes related to 2021 workforce reductions

 

 

61

 

 

 

 

 

 

61

 

Changes related to prior years' restructurings

 

 

(2

)

 

 

(7

)

 

 

(9

)

Balance as of March 31, 2021

 

$

94

 

 

$

130

 

 

$

224

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance as of December 31, 2019

 

$

20

 

 

$

1

 

 

$

21

 

Changes related to prior years' restructurings

 

 

(9

)

 

 

 

 

 

(9

)

Balance as of March 31, 2020

 

$

11

 

 

$

1

 

 

$

12

 

 

 

v3.21.1
Income Taxes
3 Months Ended
Mar. 31, 2021
Income Tax Disclosure [Abstract]  
Income Taxes

7.Income Taxes

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

 

 

Three Months Ended March 31,

 

 

 

2021

 

 

2020

 

Loss from continuing operations before income taxes

 

$

(32

)

 

$

(2,107

)

 

 

 

 

 

 

 

 

 

Current income tax benefit

 

$

(5

)

 

$

(106

)

Deferred income tax benefit

 

 

(243

)

 

 

(311

)

Total income tax benefit

 

$

(248

)

 

$

(417

)

 

 

 

 

 

 

 

 

 

U.S. statutory income tax rate

 

 

21

%

 

 

21

%

State income taxes

 

 

(1

%)

 

 

1

%

Change in tax legislation

 

 

0

%

 

 

5

%

Unrecognized tax benefits

 

 

0

%

 

 

0

%

Other

 

 

(48

%)

 

 

(3

%)

Deferred tax asset valuation allowance

 

 

791

%

 

 

(4

%)

Effective income tax rate

 

 

763

%

 

 

20

%

 

The deferred income tax benefit recognized in the first quarter of 2021 primarily relates to the Merger. As shown in Note 2, Devon recognized $254 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 has recognized on its U.S. Federal deferred tax assets.

As of March 31, 2021, Devon continues to maintain a valuation allowance against materially all U.S. deferred tax assets. Devon continues to assess its valuation allowance position every quarter. Absent any additional objective negative evidence, and with the addition of subjective evidence such as forecasted taxable income, Devon may adjust the valuation allowance on its deferred tax assets in future periods.

In the table above, the “other” effect is composed primarily of permanent differences related to costs incurred in connection with the Merger. Such items represent $15 million of income tax expense in the first quarter of 2021.

The Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) became law on March 27, 2020. The CARES Act allows net operating losses generated in taxable years beginning after December 31, 2017 and before January 1, 2021 to be carried back five years to offset taxable income and recoup previously paid taxes. As a result, Devon is carrying back net operating losses generated in 2020 and 2019 to 2015 and 2014, respectively. Because the U.S. Federal income tax rate was higher in the carryback periods, Devon recognized an income tax benefit in the first quarter of 2020. 

v3.21.1
Net Earnings (Loss) Per Share from Continuing Operations
3 Months Ended
Mar. 31, 2021
Earnings Per Share [Abstract]  
Net Earnings (Loss) Per Share from Continuing Operations

8.

Net Earnings (Loss) Per Share from Continuing Operations

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

 

 

 

Three Months Ended March 31,

 

 

 

2021

 

 

2020

 

Net earnings (loss) from continuing operations:

 

 

 

 

 

 

 

 

Net earnings (loss) from continuing operations

 

$

213

 

 

$

(1,691

)

Attributable to participating securities

 

 

(2

)

 

 

(1

)

Basic and diluted earnings (loss) from continuing operations

 

$

211

 

 

$

(1,692

)

Common shares:

 

 

 

 

 

 

 

 

Common shares outstanding - total

 

 

654

 

 

 

383

 

Attributable to participating securities

 

 

(5

)

 

 

(6

)

Common shares outstanding - basic

 

 

649

 

 

 

377

 

Dilutive effect of potential common shares issuable

 

 

2

 

 

 

 

Common shares outstanding - diluted

 

 

651

 

 

 

377

 

Net earnings (loss) per share from continuing operations:

 

 

 

 

 

 

 

 

Basic

 

$

0.33

 

 

$

(4.48

)

Diluted

 

$

0.32

 

 

$

(4.48

)

Antidilutive options

 

 

 

 

 

 

 

v3.21.1
Other Comprehensive Earnings (Loss)
3 Months Ended
Mar. 31, 2021
Other Comprehensive Income Loss Net Of Tax Period Increase Decrease [Abstract]  
Other Comprehensive Earnings (Loss)

9.

Other Comprehensive Earnings (Loss)

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

 

 

Three Months Ended March 31,

 

 

 

2021

 

 

2020

 

Pension and postretirement benefit plans:

 

 

 

 

 

 

 

 

Beginning accumulated pension and postretirement benefits

 

$

(127

)

 

$

(119

)

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

 

 

1

 

 

 

2

 

Settlement of pension benefits (2)

 

 

15

 

 

 

 

Income tax expense

 

 

 

 

 

(1

)

Other (3)

 

 

7

 

 

 

 

Accumulated other comprehensive loss, net of tax

 

$

(104

)

 

$

(118

)

 

 

(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)

Includes a remeasurement of the pension obligation due to the change in control described above which was partially offset by a change in mortality assumption.  

 

v3.21.1
Supplemental Information To Statements Of Cash Flows
3 Months Ended
Mar. 31, 2021
Supplemental Cash Flow Elements [Abstract]  
Supplemental Information To Statements Of Cash Flows

10.

Supplemental Information to Statements of Cash Flows

 

 

 

Three Months Ended March 31,

 

 

 

2021

 

 

2020

 

Changes in assets and liabilities, net:

 

 

 

 

 

 

 

 

Accounts receivable

 

$

(63

)

 

$

238

 

Income tax receivable

 

 

15

 

 

 

(113

)

Other current assets

 

 

(25

)

 

 

(38

)

Other long-term assets

 

 

(10

)

 

 

(24

)

Accounts payable

 

 

71

 

 

 

42

 

Revenues and royalties payable

 

 

(55

)

 

 

(113

)

Other current liabilities

 

 

(33

)

 

 

(81

)

Other long-term liabilities

 

 

(27

)

 

 

33

 

Total

 

$

(127

)

 

$

(56

)

Supplementary cash flow data - total operations:

 

 

 

 

 

 

 

 

Interest paid

 

$

114

 

 

$

64

 

Income taxes paid (refunded)

 

$

(6

)

 

$

151

 

 

As of March 31, 2021, Devon had approximately $230 million of accrued capital expenditures included in total property and equipment, net and accounts payable on the consolidated balance sheets. As of December 31, 2020 (pre-merger), Devon had approximately $100 million of accrued capital expenditures in total property and equipment, net and accounts payable on the consolidated balance sheets. As of January 7, 2021 (date of Merger closing), Devon assumed approximately $150 million of accrued capital expenditures included in accounts payable.

v3.21.1
Accounts Receivable
3 Months Ended
Mar. 31, 2021
Accounts Receivable Net [Abstract]  
Accounts Receivable

11.

Accounts Receivable

Components of accounts receivable include the following:

 

 

 

March 31, 2021

 

 

December 31, 2020

 

Oil, gas and NGL sales

 

$

742

 

 

$

335

 

Joint interest billings

 

 

127

 

 

 

57

 

Marketing and midstream revenues

 

 

181

 

 

 

195

 

Other

 

 

54

 

 

 

25

 

Gross accounts receivable

 

 

1,104

 

 

 

612

 

Allowance for doubtful accounts

 

 

(15

)

 

 

(11

)

Net accounts receivable

 

$

1,089

 

 

$

601

 

 

v3.21.1
Property, Plant and Equipment
3 Months Ended
Mar. 31, 2021
Extractive Industries [Abstract]  
Property, Plant and Equipment

12.Property, Plant and Equipment

 

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

 

 

 

March 31, 2021

 

 

December 31, 2020

 

Property and equipment:

 

 

 

 

 

 

 

 

Proved

 

$

35,119

 

 

$

27,589

 

Unproved and properties under development

 

 

2,692

 

 

 

392

 

Total oil and gas

 

 

37,811

 

 

 

27,981

 

Less accumulated DD&A

 

 

(23,985

)

 

 

(23,545

)

Oil and gas property and equipment, net

 

 

13,826

 

 

 

4,436

 

Other property and equipment

 

 

2,060

 

 

 

1,737

 

Less accumulated DD&A

 

 

(612

)

 

 

(780

)

Other property and equipment, net (1)

 

 

1,448

 

 

 

957

 

Property and equipment, net

 

$

15,274

 

 

$

5,393

 

 

 

(1)

$106 million and $102 million related to CDM in 2021 and 2020, respectively.

 

v3.21.1
Debt And Related Expenses
3 Months Ended
Mar. 31, 2021
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.

 

 

 

March 31, 2021

 

 

December 31, 2020

 

8.25% due August 1, 2023 (1)

 

$

242

 

 

$

 

5.25% due September 15, 2024 (1)

 

 

472

 

 

 

 

5.85% due December 15, 2025

 

 

485

 

 

 

485

 

5.75% due June 1, 2026 (1)

 

 

500

 

 

 

 

7.50% due September 15, 2027

 

 

73

 

 

 

73

 

5.25% due October 15, 2027 (1)

 

 

600

 

 

 

 

5.875% due June 15, 2028 (1)

 

 

325

 

 

 

 

4.50% due January 15, 2030 (1)

 

 

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 (discount) on debentures and notes

 

 

226

 

 

 

(20

)

Debt issuance costs

 

 

(31

)

 

 

(31

)

Total debt

 

$

7,268

 

 

$

4,298

 

Less amount classified as short-term debt

 

 

226

 

 

 

 

Total long-term debt

 

$

7,042

 

 

$

4,298

 

 

(1)

These instruments were assumed by Devon in January 2021 in conjunction with the Merger. These instruments are the unsecured and unsubordinated obligation of WPX, a wholly-owned subsidiary of Devon.

The following schedule includes the summary of the WPX debt Devon assumed upon closing of the Merger on January 7, 2021.

 

 

 

Face Value

 

 

Fair Value

 

 

Optional Redemption(1)

6.00% due January 15, 2022

 

$

43

 

 

$

44

 

 

 

8.25% due August 1, 2023

 

 

242

 

 

 

281

 

 

June 1, 2023

5.25% due September 15, 2024

 

 

472

 

 

 

530

 

 

June 15, 2024

5.75% due June 1, 2026

 

 

500

 

 

 

529

 

 

June 1, 2021

5.25% due October 15, 2027

 

 

600

 

 

 

646

 

 

October 15, 2022

5.875% due June 15, 2028

 

 

500

 

 

 

554

 

 

June 15, 2023

4.50% due January 15, 2030

 

 

900

 

 

 

978

 

 

January 15, 2025

 

 

$

3,257

 

 

$

3,562

 

 

 

 

(1)

At any time prior to these dates, Devon has the option to redeem some or all of the notes at a specified "make whole" premium as described in the indenture documents governing the notes to be redeemed. On or after these dates, Devon has the option to redeem the notes, in whole or in part, at the applicable redemption prices set forth in the indenture documents, plus accrued and unpaid interest thereon to the redemption date as more fully described in such documents.

  

Credit Lines

Devon has a $3.0 billion Senior Credit Facility. As of March 31, 2021, 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 March 31, 2021, Devon was in compliance with this covenant with a debt-to-capitalization ratio of 27.4%.

Retirement of Senior Notes

In first quarter of 2021, Devon redeemed $43 million of the 6.00% senior notes due 2022, $175 million of the 5.875% senior notes due 2028 and $315 million of the 4.50% senior notes due 2030. In the first quarter of 2021, Devon recognized a $20 million gain on early retirement of debt, consisting of $47 million of non-cash premium accelerations partially offset by $27 million of cash retirement costs. The gain on early retirement is included in net financing costs in the consolidated comprehensive statements of earnings. Devon also redeemed $210 million of the 5.25% senior notes due 2027 in April 2021. In May 2021, Devon gave notice to exercise its early redemption to fully retire the 5.75% senior notes due 2026 in June 2021.

Net Financing Costs

The following schedule includes the components of net financing costs.

 

 

 

Three Months Ended March 31,

 

 

 

2021

 

 

2020

 

Interest based on debt outstanding

 

$

105

 

 

$

65

 

Gain on early retirement of debt

 

 

(20

)

 

 

 

Interest income

 

 

(1

)

 

 

(5

)

Other

 

 

(7

)

 

 

5

 

Total net financing costs

 

$

77

 

 

$

65

 

 

v3.21.1
Leases
3 Months Ended
Mar. 31, 2021
Leases [Abstract]  
Leases

14.Leases

 

The following table presents Devon’s right-of-use assets and lease liabilities as of March 31, 2021 and December 31, 2020.

 

 

 

March 31, 2021

 

 

December 31, 2020

 

 

 

Finance

 

 

Operating

 

 

Total

 

 

Finance

 

 

Operating

 

 

Total

 

Right-of-use assets

 

$

217

 

 

$

38

 

 

$

255

 

 

$

220

 

 

$

3

 

 

$

223

 

Lease liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current lease liabilities (1)

 

$

8

 

 

$

23

 

 

$

31

 

 

$

8

 

 

$

1

 

 

$

9

 

Long-term lease liabilities

 

 

244

 

 

 

16

 

 

 

260

 

 

 

244

 

 

 

2

 

 

 

246

 

Total lease liabilities

 

$

252

 

 

$

39

 

 

$

291

 

 

$

252

 

 

$

3

 

 

$

255

 

 

(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.

v3.21.1
Asset Retirement Obligations
3 Months Ended
Mar. 31, 2021
Asset Retirement Obligation Disclosure [Abstract]  
Asset Retirement Obligations

 

15.

Asset Retirement Obligations

 

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

 

 

Three Months Ended March 31,

 

 

 

2021

 

 

2020

 

Asset retirement obligations as of beginning of period

 

$

369

 

 

$

398

 

Assumed WPX obligations

 

 

98

 

 

 

 

Liabilities incurred

 

 

9

 

 

 

6

 

Liabilities settled and divested

 

 

(17

)

 

 

(13

)

Revision of estimated obligation

 

 

11

 

 

 

4

 

Accretion expense on discounted obligation

 

 

7

 

 

 

5

 

Asset retirement obligations as of end of period

 

 

477

 

 

 

400

 

Less current portion

 

 

22

 

 

 

14

 

Asset retirement obligations, long-term

 

$

455

 

 

$

386

 

 

 

v3.21.1
Other Long-Term Liabilities
3 Months Ended
Mar. 31, 2021
Other Liabilities Disclosure [Abstract]  
Other Long-Term Liabilities

16.

Other Long-Term Liabilities

 

Components of other long-term liabilities include the following:

 

 

 

March 31, 2021

 

 

December 31, 2020

 

Assumed gathering, processing and transportation contracts

 

$

482

 

 

$

 

Pension and post retirement benefit obligations

 

 

225

 

 

 

243

 

Restructuring and transaction costs

 

 

130

 

 

 

137

 

Estimated future obligation under a performance guarantee

 

 

128

 

 

 

 

Commodity derivatives

 

 

122

 

 

 

5

 

Other

 

 

182

 

 

 

166

 

Total other long-term liabilities

 

$

1,269

 

 

$

551

 

 

Devon assumed fixed gathering, processing and transportation contracts in the Merger and recognized a liability related to the difference in the contractual and market rates of these contracts as of the date of the Merger. The terms of the contracts extend through 2038 and all relate to the Delaware Basin. This difference will be recognized as a reduction to production expenses as the associated reserves are produced over the life of the respective contracts. In the first quarter of 2021, Devon recognized $8 million of non-cash amortization of these liabilities as a reduction of production expenses in the consolidated statement of comprehensive earnings.

 

Additionally, in the Merger, Devon assumed a future obligation under a performance guarantee related to gathering and processing commitments for assets WPX sold in 2018 in which the purchaser of those assets is now not expected to have the financial ability to satisfy the obligations. As of March 31, 2021, Devon has recorded a $164 million liability for the estimated potential exposure based on probability-weighted cash flows for the remainder of the contract term of five years. Of the $164 million, $128 million is included in other long-term liabilities and $36 million is included in other current liabilities on the consolidated balance sheets as of March 31, 2021.  

v3.21.1
Stockholders' Equity
3 Months Ended
Mar. 31, 2021
Stockholders Equity Note [Abstract]  
Stockholders' Equity

17.

Stockholders’ Equity

WPX Merger

On January 7, 2021, Devon and WPX completed an all-stock merger of equals. 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. Consequently, Devon issued approximately 290 million shares of Devon common stock to holders of WPX common stock to effect the Merger on January 7, 2021.

Share Repurchases

The table below provides information regarding purchases of Devon’s common stock that were made in 2020 under a share repurchase program that expired at the end of 2020 (shares in thousands).

 

 

 

Total Number of

Shares Purchased

 

 

Dollar Value of

Shares Purchased

 

 

Average Price Paid

per Share

 

 

 

 

 

 

 

 

 

 

 

 

 

 

First quarter 2020

 

 

2,243

 

 

$

38

 

 

$

16.85

 

Total

 

 

2,243

 

 

$

38

 

 

$

16.85

 

 

 

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. The following table summarizes Devon’s fixed and variable dividends for the first quarter of 2021 and 2020, respectively.

 

Amounts

 

 

Rate Per Share

 

2021:

 

 

 

 

 

 

 

Fixed

$

76

 

 

$

0.11

 

Variable

 

127

 

 

 

0.19

 

Total

$

203

 

 

$

0.30

 

2020:

 

 

 

 

 

 

 

Fixed

$

34

 

 

$

0.09

 

 

In May 2021, Devon announced a cash dividend in the amount of $0.34 per share payable in the second quarter of 2021. The dividend consists of a fixed quarterly dividend in the amount of approximately $74 million (or $0.11 per share) and a variable quarterly dividend in the amount of approximately $155 million (or $0.23 per share).

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.

v3.21.1
Discontinued Operations
3 Months Ended
Mar. 31, 2021
Discontinued Operations And Disposal Groups [Abstract]  
Discontinued Operations

18.

Discontinued Operations

 

On October 1, 2020, Devon completed the sale of its Barnett Shale assets to BKV for proceeds, net of purchase price adjustments, of $490 million. Additionally, the agreement provides for contingent earnout payments to Devon of up to $260 million based upon future commodity prices, with upside participation beginning at a $2.75 Henry Hub natural gas price or a $50 WTI oil price. The contingent payment period commenced on January 1, 2021 and has a term of four years. The valuation of the future contingent earnout payments included within other current assets in the March 31, 2021 balance sheet was $66 million. The value was derived utilizing a Monte Carlo valuation model and qualifies as a level 3 fair value measurement.

 

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

 

 

 

Three Months Ended March 31, 2020

 

Oil, gas and NGL sales

 

$

92

 

Total revenues

 

 

92

 

Production expenses

 

 

74

 

Asset impairments (1)

 

 

179

 

General and administrative expenses

 

 

1

 

Financing costs, net

 

 

(2

)

Other, net

 

 

(3

)

Total expenses

 

 

249

 

Loss from discontinued operations before income taxes

 

 

(157

)

Income tax benefit

 

 

(32

)

Net loss from discontinued operations, net of tax

 

$

(125

)

 

 

(1)

Devon recognized an $179 million asset impairment in the first quarter of 2020 related to the Barnett Shale assets primarily due to the difference between the net carrying value and the purchase price, net of estimated customary purchase price adjustments, which qualified as a level 2 fair value measurement.

 

 

v3.21.1
Commitments And Contingencies
3 Months Ended
Mar. 31, 2021
Commitments And Contingencies Disclosure [Abstract]  
Commitments And Contingencies

19.

Commitments and Contingencies

Devon is party to various legal proceedings and other matters that may result in future payment obligations or other adverse consequences to its business. Matters that are probable of an unfavorable outcome to Devon and which any related potential payment obligation or other liability 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. While management does not believe any current matter is likely to involve future amounts that would be material to Devon’s financial position or results of operations after consideration of recorded accruals, the ultimate outcome of such matters and the amounts involved 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 defending against a number of such lawsuits, either as a named defendant in the action or pursuant to indemnity obligations for the benefit of a third party. Plaintiffs in some of these lawsuits are seeking class certification. Among the allegations typically asserted in these suits are claims that Devon used below-market prices, made improper deductions, failed to “enhance” the value of gas through processing, used improper measurement techniques, entered into purchase and midstream arrangements with affiliates that resulted in underpayment of royalties or otherwise failed to prudently market oil, natural gas and NGLs produced and sold and pay royalties on the highest obtainable price. Devon is also involved in governmental agency proceedings and royalty audits and is subject to related contracts and regulatory controls in the ordinary course of business, some that may lead to additional royalty claims. Devon does not currently believe that it is subject to material exposure with respect to such royalty matters.

Environmental and Climate Change Matters

Devon’s business is subject to numerous federal, state, local, Native American tribal and foreign 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, the payment of the costs necessary to clear, re-vegetate and otherwise restore the allegedly impacted areas. Although Devon cannot predict the ultimate outcome of these matters, Devon believes these claims to be baseless and is vigorously defending 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 believes these claims to be baseless and intends to vigorously defend against the proceedings.

Williams’ Former Power Business Matter

Direct and indirect purchasers of natural gas in various states filed individual and class action lawsuits against The Williams Companies, Inc. (“Williams”) and other parties alleging the manipulation of published gas price indices and seeking unspecified amounts of damages. WPX and certain of its subsidiaries, which were then affiliates of Williams, were also named as defendants in these actions. Such actions were transferred to the Nevada federal district court for consolidation of discovery and pre-trial issues. Although certain of the actions were subsequently settled or otherwise resolved, two putative class actions and an individual action remain unresolved.

The putative class actions have been remanded to their originally filed court, the Wisconsin federal district court, and class certification motions are pending. The individual action, Reorganized FLI Inc., has been remanded to its originally filed court, the

Kansas federal district court. The Tenth Circuit granted a petition to reconsider the denial of defendants’ motion for summary judgment, and the decision is pending after oral argument in January 2021.

 

Because of the uncertainty around pending unresolved issues, including an insufficient description of the purported classes and other related matters, Devon cannot reasonably estimate a range of potential exposure at this time for these matters. In connection with its spin-off from Williams in 2011, WPX entered into a separation and distribution agreement with Williams, pursuant to which Williams agreed to indemnify and hold WPX and its subsidiaries harmless from any losses arising out of these matters.

 

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. 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.

 

v3.21.1
Fair Value Measurements
3 Months Ended
Mar. 31, 2021
Fair Value Disclosures [Abstract]  
Fair Value Measurements

20.

Fair Value Measurements

 

The following table provides carrying value and fair value measurement information for certain of Devon’s financial assets and liabilities. The carrying values of cash, 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 March 31, 2021 and December 31, 2020, as applicable. Therefore, such financial assets and liabilities are not presented in the following table. Additionally, information regarding the fair values of oil and gas assets is provided in Note 5.

 

 

 

 

 

 

 

 

 

 

 

Fair Value Measurements Using:

 

 

 

Carrying

 

 

Total Fair

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

 

Amount

 

 

Value

 

 

Inputs

 

 

Inputs

 

 

Inputs

 

March 31, 2021 assets (liabilities):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash equivalents

 

$

1,075

 

 

$

1,075

 

 

$

1,075

 

 

$

 

 

$

 

Commodity derivatives

 

$

6

 

 

$

6

 

 

$

 

 

$

6

 

 

$

 

Commodity derivatives

 

$

(789

)

 

$

(789

)

 

$

 

 

$

(789

)

 

$

 

Debt

 

$

(7,268

)

 

$

(8,091

)

 

$

 

 

$

(8,091

)

 

$

 

Contingent earnout payments

 

$

70

 

 

$

70

 

 

$

 

 

$

 

 

$

70

 

December 31, 2020 assets (liabilities):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash equivalents

 

$

1,436

 

 

$

1,436

 

 

$

1,436

 

 

$

 

 

$

 

Commodity derivatives

 

$

6

 

 

$

6

 

 

$

 

 

$

6

 

 

$

 

Commodity derivatives

 

$

(148

)

 

$

(148

)

 

$

 

 

$

(148

)

 

$

 

Debt

 

$

(4,298

)

 

$

(5,365

)

 

$

 

 

$

(5,365

)

 

$

 

Contingent earnout payments

 

$

66

 

 

$

66

 

 

$

 

 

$

 

 

$

66

 

 

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.

v3.21.1
Summary Of Significant Accounting Policies (Policies)
3 Months Ended
Mar. 31, 2021
Accounting Policies [Abstract]  
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 (“QLCP”). 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, on Devon's consolidated balance sheets if material.

 

Investments

Investments

In conjunction with the Merger, Devon acquired an interest in Catalyst which is a joint venture established between WPX and Howard Energy Partners (“HEP”) to develop oil gathering and natural gas processing infrastructure in the Stateline area of the Delaware Basin. Under the terms of the agreement, Devon and HEP each have a 50 percent 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 sheet and Devon’s share of Catalyst earnings are reflected as a component of other, net in the accompanying consolidated statements of comprehensive earnings.
Commitments And Contingencies

Devon is party to various legal proceedings and other matters that may result in future payment obligations or other adverse consequences to its business. Matters that are probable of an unfavorable outcome to Devon and which any related potential payment obligation or other liability 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. While management does not believe any current matter is likely to involve future amounts that would be material to Devon’s financial position or results of operations after consideration of recorded accruals, the ultimate outcome of such matters and the amounts involved could differ materially from management’s estimates.

v3.21.1
Summary Of Significant Accounting Policies (Tables)
3 Months Ended
Mar. 31, 2021
Accounting Policies [Abstract]  
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 March 31,

 

 

 

2021

 

 

2020

 

Oil

 

$

1,357

 

 

$

662

 

Gas

 

 

207

 

 

 

70

 

NGL

 

 

224

 

 

 

75

 

Oil, gas and NGL sales

 

 

1,788

 

 

 

807

 

 

 

 

 

 

 

 

 

 

Oil

 

 

209

 

 

 

329

 

Gas

 

 

118

 

 

 

94

 

NGL

 

 

175

 

 

 

137

 

Marketing and midstream revenues

 

 

502

 

 

 

560

 

Total revenues from contracts with customers

 

$

2,290

 

 

$

1,367

 

v3.21.1
Acquisitions and Divestitures (Tables)
3 Months Ended
Mar. 31, 2021
Business Combinations [Abstract]  
Schedule of Preliminary Allocation of the Total Purchase Price

The following table represents the preliminary allocation of the total purchase price of WPX to the identifiable assets acquired and the liabilities assumed based on the fair values as of the acquisition date.

 

 

Preliminary Purchase Price Allocation

 

Consideration:

 

 

 

 

WPX Common Stock outstanding

 

 

561.2

 

Exchange Ratio

 

 

0.5165

 

Devon common stock issued

 

 

289.9

 

Devon closing price on January 7, 2021

 

$

18.57

 

Total common equity consideration

 

 

5,383

 

Share-based replacement awards

 

 

49

 

Total consideration

 

$

5,432

 

Assets acquired:

 

 

 

 

Cash, cash equivalents and restricted cash

 

$

344

 

Accounts receivable

 

 

425

 

Other current assets

 

 

49

 

Right-of-use assets

 

 

38

 

Proved oil and gas property and equipment

 

 

7,017

 

Unproved and properties under development

 

 

2,367

 

Other property and equipment

 

 

485

 

Investments

 

 

400

 

Other long-term assets

 

 

43

 

Total assets acquired

 

$

11,168

 

Liabilities assumed:

 

 

 

 

Accounts payable

 

$

346

 

Revenue and royalties payable

 

 

223

 

Other current liabilities

 

 

454

 

Debt

 

 

3,562

 

Lease liabilities

 

 

38

 

Asset retirement obligations

 

 

94

 

Deferred income taxes

 

 

254

 

Other long-term liabilities

 

 

765

 

Total liabilities assumed

 

 

5,736

 

Net assets acquired

 

$

5,432

 

Schedule of WPX Revenues And Earnings Included In Devons Consolidated Comprehensive Statements of Earnings

The following table represents WPX’s revenues and earnings included in Devon’s consolidated comprehensive statements of earnings subsequent to the closing date of the Merger.

 

 

 

Three Months Ended March 31,

 

 

 

2021

 

Total revenues

 

$

772

 

Net earnings

 

$

166

 

Schedule of Pro Forma Adjustments to Confirm Acquisition The unaudited pro forma financial information is not necessarily indicative of what would have occurred if the Merger had been completed as of the beginning of the periods presented, nor is it indicative of future results.

 

 

Three Months Ended March 31,

 

Continuing operations:

 

2020

 

Total revenues

 

$

3,485

 

Net loss

 

$

(1,864

)

Basic net loss per share

 

$

(2.77

)

 

v3.21.1
Derivative Financial Instruments (Tables)
3 Months Ended
Mar. 31, 2021
Derivative [Line Items]  
Schedule Of Derivative Financial Instruments Included In The Consolidated Balance Sheets

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

 

 

March 31, 2021

 

 

December 31, 2020

 

Commodity derivative assets:

 

 

 

 

 

 

 

 

Other current assets

 

$

3

 

 

$

5

 

Other long-term assets

 

 

3

 

 

 

1

 

Total derivative assets

 

$

6

 

 

$

6

 

Commodity derivative liabilities:

 

 

 

 

 

 

 

 

Other current liabilities

 

$

667

 

 

$

143

 

Other long-term liabilities

 

 

122

 

 

 

5

 

Total derivative liabilities

 

$

789

 

 

$

148

 

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

 

 

Price Swaps

 

 

Price Swaptions

 

 

Price Collars

 

 

Call Options Sold

 

Period

 

Volume

(Bbls/d)

 

 

Weighted

Average

Price ($/Bbl)

 

 

Volume

(Bbls/d)

 

 

Weighted

Average

Price ($/Bbl)

 

 

Volume

(Bbls/d)

 

 

Weighted

Average Floor

Price ($/Bbl)

 

 

Weighted

Average

Ceiling Price

($/Bbl)

 

 

Volume

(Bbls/d)

 

 

Weighted

Average Price

($/Bbl)

 

Q2-Q4 2021

 

 

81,122

 

 

$

40.45

 

 

 

6,691

 

 

$

40.12

 

 

 

40,905

 

 

$

39.84

 

 

$

49.84

 

 

 

5,000

 

 

$

39.50

 

Q1-Q4 2022

 

 

25,619

 

 

$

43.82

 

 

 

10,323

 

 

$

46.46

 

 

 

15,733

 

 

$

44.92

 

 

$

54.92

 

 

 

 

 

$

 

 

 

 

 

Oil Basis Swaps

 

Period

 

Index

 

Volume

(Bbls/d)

 

 

Weighted Average

Differential to WTI

($/Bbl)

 

Q2-Q4 2021

 

Midland Sweet

 

 

22,669

 

 

$

0.84

 

Q2-Q4 2021

 

Guernsey Light Sweet

 

 

2,007

 

 

$

(1.48

)

Q2-Q4 2021

 

BRENT

 

 

1,000

 

 

$

(8.00

)

Q2-Q4 2021

 

NYMEX Roll

 

 

11,676

 

 

$

0.38

 

Q1-Q4 2022

 

BRENT

 

 

1,000

 

 

$

(7.75

)

Q1-Q4 2022

 

NYMEX Roll

 

 

16,000

 

 

$

0.37

 

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

 

 

Price Swaps (1)

 

 

Price Swaptions (2)

 

 

Price Collars (2)

 

 

Call Options Sold (2)

 

Period

 

Volume (MMBtu/d)

 

 

Weighted Average Price ($/MMBtu)

 

 

Volume (MMBtu/d)

 

 

Weighted Average Price ($/MMBtu)

 

 

Volume (MMBtu/d)

 

 

Weighted Average Floor Price ($/MMBtu)

 

 

Weighted Average

Ceiling Price ($/MMBtu)

 

 

Volume (MMBtu/d)

 

 

Weighted Average Price ($/MMBtu)

 

Q2-Q4 2021

 

 

270,636

 

 

$

2.63

 

 

 

 

 

$

 

 

 

196,218

 

 

$

2.46

 

 

$

2.96

 

 

 

50,000

 

 

$

2.68

 

Q1-Q4 2022

 

 

3,452

 

 

$

2.85

 

 

 

100,000

 

 

$

2.70

 

 

 

69,110

 

 

$

2.54

 

 

$

3.04

 

 

 

 

 

$

 

 

 

(1)

Related to the 2021 open positions, 30,636 MMBtu/d settle against the Inside FERC first of month Henry Hub index at an average price of $2.76 and 240,000 MMBtu/d settle against the end of month NYMEX index at an average price of $2.62. All 2022 open positions settle against the Inside FERC first of month Henry Hub index.

 

(2)

Price swaptions and call options settle against end of the month NYMEX index. Price collars settle against the Inside FERC first of the month Henry Hub Index.

 

 

 

Natural Gas Basis Swaps

 

Period

 

Index

 

Volume

(MMBtu/d)

 

 

Weighted Average

Differential to

Henry Hub

($/MMBtu)

 

Q2-Q4 2021

 

El Paso Natural Gas

 

 

35,000

 

 

$

(0.92

)

Q2-Q4 2021

 

WAHA

 

 

80,000

 

 

$

(0.65

)

Q1-Q4 2022

 

WAHA

 

 

70,000

 

 

$

(0.57

)

Q1-Q4 2023

 

WAHA

 

 

70,000

 

 

$

(0.51

)

Q1-Q4 2024

 

WAHA

 

 

40,000

 

 

$

(0.51

)

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

 

 

 

 

Price Swaps

 

Period

 

Product

 

Volume (Bbls/d)

 

 

Weighted Average Price ($/Bbl)

 

Q2-Q4 2021

 

Natural Gasoline

 

 

1,000

 

 

$

47.57

 

Q2-Q4 2021

 

Normal Butane

 

 

1,000

 

 

$

31.40

 

Q2-Q4 2021

 

Propane

 

 

1,000

 

 

$

27.88

 

 

v3.21.1
Share-Based Compensation (Tables)
3 Months Ended
Mar. 31, 2021
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]  
Schedule Of Share-Based Compensation Expense Included In The Consolidated Statements Of Comprehensive Earnings

 

 

 

Three Months Ended March 31,

 

 

 

2021

 

 

2020

 

G&A

 

$

20

 

 

$

20

 

Restructuring and transaction costs

 

 

21

 

 

 

 

Total

 

$

41

 

 

$

20

 

 

 

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

 

 

 

 

 

 

Performance-Based

 

 

Performance

 

 

 

Restricted Stock Awards & Units

 

 

Restricted Stock Awards

 

 

Share Units

 

 

 

Awards/Units

 

 

Weighted

Average

Grant-Date

Fair Value

 

 

Awards

 

 

Weighted

Average

Grant-Date

Fair Value

 

 

Units

 

 

 

 

 

Weighted

Average

Grant-Date

Fair Value

 

 

 

(Thousands, except fair value data)

 

Unvested at 12/31/20

 

 

5,316

 

 

$

25.82

 

 

 

44

 

 

$

44.70

 

 

 

1,994

 

 

 

 

 

$

31.89

 

Granted (1)

 

 

5,542

 

 

$

18.71

 

 

 

 

 

$

 

 

 

861

 

 

 

 

 

$

18.08

 

Vested

 

 

(4,329

)

 

$

22.63

 

 

 

(39

)

 

$

45.41

 

 

 

(754

)

 

 

 

 

$

37.40

 

Forfeited

 

 

(20

)

 

$

24.79

 

 

 

 

 

$

 

 

 

(25

)

 

 

 

 

$

36.04

 

Unvested at 3/31/21

 

 

6,509

 

 

$

21.89

 

 

 

5

 

 

$

38.54

 

 

 

2,076

 

 

(2

)

 

$

24.12

 

 

 

(1)

Due to the closing 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. As a result, approximately 4.9 million awards relate to the conversion of WPX equity awards to Devon equity awards.  

 

(2)

A maximum of 4.2 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

 

 

 

2021

 

Grant-date fair value

 

$

18.08

 

Risk-free interest rate

 

0.18%

 

Volatility factor

 

67.8%

 

Contractual term (years)

 

2.89

 

 

Summary of Unrecognized Compensation Cost And Weighted Average Period For Recognition

 

 

 

 

 

 

 

Performance-Based

 

 

 

 

 

 

 

Restricted Stock

 

 

Restricted Stock

 

 

Performance

 

 

 

Awards/Units

 

 

Awards

 

 

Share Units

 

Unrecognized compensation cost

 

$

88

 

 

$

 

 

$

21

 

Weighted average period for recognition (years)

 

 

2.2

 

 

 

0.2

 

 

 

2.3

 

v3.21.1
Asset Impairments (Tables)
3 Months Ended
Mar. 31, 2021
Asset Impairment Charges [Abstract]  
Summary of Asset Impairments

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

 

 

 

Three Months Ended March 31,

 

 

 

2021

 

 

2020

 

Proved oil and gas assets

 

$

 

 

$

2,664

 

Other assets

 

 

 

 

 

2

 

Total asset impairments

 

$

 

 

$

2,666

 

 

 

 

 

 

 

 

 

 

Unproved impairments

 

$

1

 

 

$

110

 

v3.21.1
Restructuring and Transaction Costs (Tables)
3 Months Ended
Mar. 31, 2021
Restructuring And Related Activities [Abstract]  
Schedule Of Restructuring And Transaction Costs

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

 

 

 

Three Months Ended March 31,

 

 

 

2021

 

 

2020

 

Restructuring

 

$

143

 

 

$

 

Transaction costs

 

 

46

 

 

 

 

Total

 

$

189

 

 

$

 

In conjunction with the Merger closing, Devon recognized $143 million of restructuring expenses during the first quarter of 2021 related to employee severance and termination benefits, settlements and curtailments from defined retirement benefits and contract terminations. Of these expenses, $37 million and $21 million resulted from settlements and curtailments of defined retirement benefits and accelerated vesting of share-based grants, respectively, which are 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.

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, 2020

 

$

35

 

 

$

137

 

 

$

172

 

Changes related to 2021 workforce reductions

 

 

61

 

 

 

 

 

 

61

 

Changes related to prior years' restructurings

 

 

(2

)

 

 

(7

)

 

 

(9

)

Balance as of March 31, 2021

 

$

94

 

 

$

130

 

 

$

224

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance as of December 31, 2019

 

$

20

 

 

$

1

 

 

$

21

 

Changes related to prior years' restructurings

 

 

(9

)

 

 

 

 

 

(9

)

Balance as of March 31, 2020

 

$

11

 

 

$

1

 

 

$

12

 

v3.21.1
Income Taxes (Tables)
3 Months Ended
Mar. 31, 2021
Income Tax Disclosure [Abstract]  
Schedule Of Effective Income Tax Rate Reconciliation

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

 

 

Three Months Ended March 31,

 

 

 

2021

 

 

2020

 

Loss from continuing operations before income taxes

 

$

(32

)

 

$

(2,107

)

 

 

 

 

 

 

 

 

 

Current income tax benefit

 

$

(5

)

 

$

(106

)

Deferred income tax benefit

 

 

(243

)

 

 

(311

)

Total income tax benefit

 

$

(248

)

 

$

(417

)

 

 

 

 

 

 

 

 

 

U.S. statutory income tax rate

 

 

21

%

 

 

21

%

State income taxes

 

 

(1

%)

 

 

1

%

Change in tax legislation

 

 

0

%

 

 

5

%

Unrecognized tax benefits

 

 

0

%

 

 

0

%

Other

 

 

(48

%)

 

 

(3

%)

Deferred tax asset valuation allowance

 

 

791

%

 

 

(4

%)

Effective income tax rate

 

 

763

%

 

 

20

%

v3.21.1
Net Earnings (Loss) Per Share from Continuing Operations (Tables)
3 Months Ended
Mar. 31, 2021
Earnings Per Share [Abstract]  
Net Earnings (Loss) Per Share Computations from Continuing Operations

 

 

 

Three Months Ended March 31,

 

 

 

2021

 

 

2020

 

Net earnings (loss) from continuing operations:

 

 

 

 

 

 

 

 

Net earnings (loss) from continuing operations

 

$

213

 

 

$

(1,691

)

Attributable to participating securities

 

 

(2

)

 

 

(1

)

Basic and diluted earnings (loss) from continuing operations

 

$

211

 

 

$

(1,692

)

Common shares:

 

 

 

 

 

 

 

 

Common shares outstanding - total

 

 

654

 

 

 

383

 

Attributable to participating securities

 

 

(5

)

 

 

(6

)

Common shares outstanding - basic

 

 

649

 

 

 

377

 

Dilutive effect of potential common shares issuable

 

 

2

 

 

 

 

Common shares outstanding - diluted

 

 

651

 

 

 

377

 

Net earnings (loss) per share from continuing operations:

 

 

 

 

 

 

 

 

Basic

 

$

0.33

 

 

$

(4.48

)

Diluted

 

$

0.32

 

 

$

(4.48

)

Antidilutive options

 

 

 

 

 

 

 

v3.21.1
Other Comprehensive Earnings (Loss) (Tables)
3 Months Ended
Mar. 31, 2021
Other Comprehensive Income Loss Net Of Tax Period Increase Decrease [Abstract]  
Components Of Other Comprehensive Earnings (Loss)

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

 

 

Three Months Ended March 31,

 

 

 

2021

 

 

2020

 

Pension and postretirement benefit plans:

 

 

 

 

 

 

 

 

Beginning accumulated pension and postretirement benefits

 

$

(127

)

 

$

(119

)

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

 

 

1

 

 

 

2

 

Settlement of pension benefits (2)

 

 

15

 

 

 

 

Income tax expense

 

 

 

 

 

(1

)

Other (3)

 

 

7

 

 

 

 

Accumulated other comprehensive loss, net of tax

 

$

(104

)

 

$

(118

)

 

 

(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)

Includes a remeasurement of the pension obligation due to the change in control described above which was partially offset by a change in mortality assumption.  

 

v3.21.1
Supplemental Information To Statements Of Cash Flows (Tables)
3 Months Ended
Mar. 31, 2021
Supplemental Cash Flow Elements [Abstract]  
Schedule Of Supplemental Information To Statements Of Cash Flows

 

 

 

Three Months Ended March 31,

 

 

 

2021

 

 

2020

 

Changes in assets and liabilities, net:

 

 

 

 

 

 

 

 

Accounts receivable

 

$

(63

)

 

$

238

 

Income tax receivable

 

 

15

 

 

 

(113

)

Other current assets

 

 

(25

)

 

 

(38

)

Other long-term assets

 

 

(10

)

 

 

(24

)

Accounts payable

 

 

71

 

 

 

42

 

Revenues and royalties payable

 

 

(55

)

 

 

(113

)

Other current liabilities

 

 

(33

)

 

 

(81

)

Other long-term liabilities

 

 

(27

)

 

 

33

 

Total

 

$

(127

)

 

$

(56

)

Supplementary cash flow data - total operations:

 

 

 

 

 

 

 

 

Interest paid

 

$

114

 

 

$

64

 

Income taxes paid (refunded)

 

$

(6

)

 

$

151

 

v3.21.1
Accounts Receivable (Tables)
3 Months Ended
Mar. 31, 2021
Accounts Receivable Net [Abstract]  
Schedule Of Components Of Accounts Receivable

Components of accounts receivable include the following:

 

 

 

March 31, 2021

 

 

December 31, 2020

 

Oil, gas and NGL sales

 

$

742

 

 

$

335

 

Joint interest billings

 

 

127

 

 

 

57

 

Marketing and midstream revenues

 

 

181

 

 

 

195

 

Other

 

 

54

 

 

 

25

 

Gross accounts receivable

 

 

1,104

 

 

 

612

 

Allowance for doubtful accounts

 

 

(15

)

 

 

(11

)

Net accounts receivable

 

$

1,089

 

 

$

601

 

 

v3.21.1
Property, Plant and Equipment (Tables)
3 Months Ended
Mar. 31, 2021
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.

 

 

 

March 31, 2021

 

 

December 31, 2020

 

Property and equipment:

 

 

 

 

 

 

 

 

Proved

 

$

35,119

 

 

$

27,589

 

Unproved and properties under development

 

 

2,692

 

 

 

392

 

Total oil and gas

 

 

37,811

 

 

 

27,981

 

Less accumulated DD&A

 

 

(23,985

)

 

 

(23,545

)

Oil and gas property and equipment, net

 

 

13,826

 

 

 

4,436

 

Other property and equipment

 

 

2,060

 

 

 

1,737

 

Less accumulated DD&A

 

 

(612

)

 

 

(780

)

Other property and equipment, net (1)

 

 

1,448

 

 

 

957

 

Property and equipment, net

 

$

15,274

 

 

$

5,393

 

 

 

(1)

$106 million and $102 million related to CDM in 2021 and 2020, respectively.

 

v3.21.1
Debt And Related Expenses (Tables)
3 Months Ended
Mar. 31, 2021
Debt Disclosure [Abstract]  
Schedule Of Debt Instruments and Balances

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

 

 

 

March 31, 2021

 

 

December 31, 2020

 

8.25% due August 1, 2023 (1)

 

$

242

 

 

$

 

5.25% due September 15, 2024 (1)

 

 

472

 

 

 

 

5.85% due December 15, 2025

 

 

485

 

 

 

485

 

5.75% due June 1, 2026 (1)

 

 

500

 

 

 

 

7.50% due September 15, 2027

 

 

73

 

 

 

73

 

5.25% due October 15, 2027 (1)

 

 

600

 

 

 

 

5.875% due June 15, 2028 (1)

 

 

325

 

 

 

 

4.50% due January 15, 2030 (1)

 

 

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 (discount) on debentures and notes

 

 

226

 

 

 

(20

)

Debt issuance costs

 

 

(31

)

 

 

(31

)

Total debt

 

$

7,268

 

 

$

4,298

 

Less amount classified as short-term debt

 

 

226

 

 

 

 

Total long-term debt

 

$

7,042

 

 

$

4,298

 

Schedule of WPX Debt assumed with the Merger

The following schedule includes the summary of the WPX debt Devon assumed upon closing of the Merger on January 7, 2021.

 

 

 

Face Value

 

 

Fair Value

 

 

Optional Redemption(1)

6.00% due January 15, 2022

 

$

43

 

 

$

44

 

 

 

8.25% due August 1, 2023

 

 

242

 

 

 

281

 

 

June 1, 2023

5.25% due September 15, 2024

 

 

472

 

 

 

530

 

 

June 15, 2024

5.75% due June 1, 2026

 

 

500

 

 

 

529

 

 

June 1, 2021

5.25% due October 15, 2027

 

 

600

 

 

 

646

 

 

October 15, 2022

5.875% due June 15, 2028

 

 

500

 

 

 

554

 

 

June 15, 2023

4.50% due January 15, 2030

 

 

900

 

 

 

978

 

 

January 15, 2025

 

 

$

3,257

 

 

$

3,562

 

 

 

 

(1)

At any time prior to these dates, Devon has the option to redeem some or all of the notes at a specified "make whole" premium as described in the indenture documents governing the notes to be redeemed. On or after these dates, Devon has the option to redeem the notes, in whole or in part, at the applicable redemption prices set forth in the indenture documents, plus accrued and unpaid interest thereon to the redemption date as more fully described in such documents.

  

Schedule Of Net Financing Cost Components

The following schedule includes the components of net financing costs.

 

 

 

Three Months Ended March 31,

 

 

 

2021

 

 

2020

 

Interest based on debt outstanding

 

$

105

 

 

$

65

 

Gain on early retirement of debt

 

 

(20

)

 

 

 

Interest income

 

 

(1

)

 

 

(5

)

Other

 

 

(7

)

 

 

5

 

Total net financing costs

 

$

77

 

 

$

65

 

v3.21.1
Leases (Tables)
3 Months Ended
Mar. 31, 2021
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 March 31, 2021 and December 31, 2020.

 

 

 

March 31, 2021

 

 

December 31, 2020

 

 

 

Finance

 

 

Operating

 

 

Total

 

 

Finance

 

 

Operating

 

 

Total

 

Right-of-use assets

 

$

217

 

 

$

38

 

 

$

255

 

 

$

220

 

 

$

3

 

 

$

223

 

Lease liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current lease liabilities (1)

 

$

8

 

 

$

23

 

 

$

31

 

 

$

8

 

 

$

1

 

 

$

9

 

Long-term lease liabilities

 

 

244

 

 

 

16

 

 

 

260

 

 

 

244

 

 

 

2

 

 

 

246

 

Total lease liabilities

 

$

252

 

 

$

39

 

 

$

291

 

 

$

252

 

 

$

3

 

 

$

255

 

 

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

v3.21.1
Asset Retirement Obligations (Tables)
3 Months Ended
Mar. 31, 2021
Asset Retirement Obligation Disclosure [Abstract]  
Summary Of Changes In Asset Retirement Obligations

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

 

 

Three Months Ended March 31,

 

 

 

2021

 

 

2020

 

Asset retirement obligations as of beginning of period

 

$

369

 

 

$

398

 

Assumed WPX obligations

 

 

98

 

 

 

 

Liabilities incurred

 

 

9

 

 

 

6

 

Liabilities settled and divested

 

 

(17

)

 

 

(13

)

Revision of estimated obligation

 

 

11

 

 

 

4

 

Accretion expense on discounted obligation

 

 

7

 

 

 

5

 

Asset retirement obligations as of end of period

 

 

477

 

 

 

400

 

Less current portion

 

 

22

 

 

 

14

 

Asset retirement obligations, long-term

 

$

455

 

 

$

386

 

 

 

v3.21.1
Other Long-Term Liabilities (Tables)
3 Months Ended
Mar. 31, 2021
Other Liabilities Disclosure [Abstract]  
Components of Other Long-Term Liabilities

Components of other long-term liabilities include the following:

 

 

 

March 31, 2021

 

 

December 31, 2020

 

Assumed gathering, processing and transportation contracts

 

$

482

 

 

$

 

Pension and post retirement benefit obligations

 

 

225

 

 

 

243

 

Restructuring and transaction costs

 

 

130

 

 

 

137

 

Estimated future obligation under a performance guarantee

 

 

128

 

 

 

 

Commodity derivatives

 

 

122

 

 

 

5

 

Other

 

 

182

 

 

 

166

 

Total other long-term liabilities

 

$

1,269

 

 

$

551

 

v3.21.1
Stockholders' Equity (Tables)
3 Months Ended
Mar. 31, 2021
Stockholders Equity Note [Abstract]  
Summary of Purchases of Common Stock

The table below provides information regarding purchases of Devon’s common stock that were made in 2020 under a share repurchase program that expired at the end of 2020 (shares in thousands).

 

 

 

Total Number of

Shares Purchased

 

 

Dollar Value of

Shares Purchased

 

 

Average Price Paid

per Share

 

 

 

 

 

 

 

 

 

 

 

 

 

 

First quarter 2020

 

 

2,243

 

 

$

38

 

 

$

16.85

 

Total

 

 

2,243

 

 

$

38

 

 

$

16.85

 

 

 

Schedule of Dividends Payable The following table summarizes Devon’s fixed and variable dividends for the first quarter of 2021 and 2020, respectively.

 

Amounts

 

 

Rate Per Share

 

2021:

 

 

 

 

 

 

 

Fixed

$

76

 

 

$

0.11

 

Variable

 

127

 

 

 

0.19

 

Total

$

203

 

 

$

0.30

 

2020:

 

 

 

 

 

 

 

Fixed

$

34

 

 

$

0.09

 

 

v3.21.1
Discontinued Operations (Tables)
3 Months Ended
Mar. 31, 2021
Discontinued Operations And Disposal Groups [Abstract]  
Summary of Amounts Reported as Discontinued Operations in the Consolidated Comprehensive Statements of Earnings and Carrying Amounts of Assets and Liabilities Classified as Held for Sale on the Consolidated Balance Sheets

 

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

 

 

 

Three Months Ended March 31, 2020

 

Oil, gas and NGL sales

 

$

92

 

Total revenues

 

 

92

 

Production expenses

 

 

74

 

Asset impairments (1)

 

 

179

 

General and administrative expenses

 

 

1

 

Financing costs, net

 

 

(2

)

Other, net

 

 

(3

)

Total expenses

 

 

249

 

Loss from discontinued operations before income taxes

 

 

(157

)

Income tax benefit

 

 

(32

)

Net loss from discontinued operations, net of tax

 

$

(125

)

 

 

(1)

Devon recognized an $179 million asset impairment in the first quarter of 2020 related to the Barnett Shale assets primarily due to the difference between the net carrying value and the purchase price, net of estimated customary purchase price adjustments, which qualified as a level 2 fair value measurement.

v3.21.1
Fair Value Measurements (Tables)
3 Months Ended
Mar. 31, 2021
Fair Value Disclosures [Abstract]  
Schedule Of Carrying Value And Fair Value Measurement Information For Financial Assets And Liabilities

 

 

 

 

 

 

 

 

 

 

 

Fair Value Measurements Using:

 

 

 

Carrying

 

 

Total Fair

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

 

Amount

 

 

Value

 

 

Inputs

 

 

Inputs

 

 

Inputs

 

March 31, 2021 assets (liabilities):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash equivalents

 

$

1,075

 

 

$

1,075

 

 

$

1,075

 

 

$

 

 

$

 

Commodity derivatives

 

$

6

 

 

$

6

 

 

$

 

 

$

6

 

 

$

 

Commodity derivatives

 

$

(789

)

 

$

(789

)

 

$

 

 

$

(789

)

 

$

 

Debt

 

$

(7,268

)

 

$

(8,091

)

 

$

 

 

$

(8,091

)

 

$

 

Contingent earnout payments

 

$

70

 

 

$

70

 

 

$

 

 

$

 

 

$

70

 

December 31, 2020 assets (liabilities):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash equivalents

 

$

1,436

 

 

$

1,436

 

 

$

1,436

 

 

$

 

 

$

 

Commodity derivatives

 

$

6

 

 

$

6

 

 

$

 

 

$

6

 

 

$

 

Commodity derivatives

 

$

(148

)

 

$

(148

)

 

$

 

 

$

(148

)

 

$

 

Debt

 

$

(4,298

)

 

$

(5,365

)

 

$

 

 

$

(5,365

)

 

$

 

Contingent earnout payments

 

$

66

 

 

$

66

 

 

$

 

 

$

 

 

$

66

 

v3.21.1
Summary Of Significant Accounting Policies (Narrative) (Details) - USD ($)
$ / shares in Units, $ in Millions
3 Months Ended
Jan. 07, 2021
Mar. 31, 2021
Mar. 31, 2020
Summary Of Significant Accounting Policies [Line Items]      
Restricted cash   $ 195 $ 200
Cash payments for divestitures   10  
Barnett Shale [Member]      
Summary Of Significant Accounting Policies [Line Items]      
Restricted cash   $ 185  
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%  
v3.21.1
Summary of Significant Accounting Policies (Schedule of Revenue from Contracts with Customers) (Details) - USD ($)
$ in Millions
3 Months Ended
Mar. 31, 2021
Mar. 31, 2020
Disaggregation Of Revenue [Line Items]    
Total revenues from contracts with customers $ 2,290 $ 1,367
Oil, Gas and NGL Sales [Member]    
Disaggregation Of Revenue [Line Items]    
Total revenues from contracts with customers 1,788 807
Oil, Gas and NGL Sales [Member] | Oil [Member]    
Disaggregation Of Revenue [Line Items]    
Total revenues from contracts with customers 1,357 662
Oil, Gas and NGL Sales [Member] | Gas [Member]    
Disaggregation Of Revenue [Line Items]    
Total revenues from contracts with customers 207 70
Oil, Gas and NGL Sales [Member] | NGL [Member]    
Disaggregation Of Revenue [Line Items]    
Total revenues from contracts with customers 224 75
Marketing and Midstream Revenues [Member]    
Disaggregation Of Revenue [Line Items]    
Total revenues from contracts with customers 502 560
Marketing and Midstream Revenues [Member] | Oil [Member]    
Disaggregation Of Revenue [Line Items]    
Total revenues from contracts with customers 209 329
Marketing and Midstream Revenues [Member] | Gas [Member]    
Disaggregation Of Revenue [Line Items]    
Total revenues from contracts with customers 118 94
Marketing and Midstream Revenues [Member] | NGL [Member]    
Disaggregation Of Revenue [Line Items]    
Total revenues from contracts with customers $ 175 $ 137
v3.21.1
Acquisition and Divestitures (Narrative) (Details)
$ in Millions
3 Months Ended 48 Months Ended
Mar. 03, 2021
USD ($)
MMBoe
Jan. 07, 2021
shares
Oct. 01, 2020
USD ($)
$ / MMBTU
$ / bbl
Mar. 31, 2021
USD ($)
shares
Sep. 30, 2020
USD ($)
Mar. 31, 2020
USD ($)
Dec. 31, 2019
USD ($)
Dec. 31, 2024
Dec. 31, 2020
USD ($)
Business Acquisition [Line Items]                  
Common Stock Shares Issued       $ 67         $ 38
Asset impairment charges [1]           $ 179      
BKV [Member] | Barnett Shale [Member]                  
Business Acquisition [Line Items]                  
Divestitures of property and equipment     $ 490            
Contingent earnout payments     $ 260            
Henry Hub gas price for contingent earnout payment upside | $ / MMBTU     2.75            
WTI oil price for contingent earnout payment upside | $ / bbl     50            
Contingent earnout payment period       The contingent payment period commenced on January 1, 2021 and has a term of four years.          
Asset impairment charges         $ 3 $ 179 $ 748    
BKV [Member] | Barnett Shale [Member] | Scenario Forecast [Member]                  
Business Acquisition [Line Items]                  
Contingent earnout payment period               The contingent payment period commenced on January 1, 2021 and has a term of four years.  
Non Core Assets [Member]                  
Business Acquisition [Line Items]                  
Divestitures of property and equipment $ 9                
Gain on asset dispositions 35                
Contingent earnout payments $ 8                
Total estimated proved reserves | MMBoe 3                
Devon and WPX Agreement [Member]                  
Business Acquisition [Line Items]                  
Date of agreement   Jan. 07, 2021   Jan. 07, 2021          
Per share conversion | shares   0.5165   0.5165          
Common Stock Shares Issued       $ 5,400          
[1] Devon recognized an $179 million asset impairment in the first quarter of 2020 related to the Barnett Shale assets primarily due to the difference between the net carrying value and the purchase price, net of estimated customary purchase price adjustments, which qualified as a level 2 fair value measurement.
v3.21.1
Acquisition and Divestitures (Schedule of Preliminary Allocation of the Total Purchase Price) (Details)
$ / shares in Units, $ in Millions
Jan. 07, 2021
USD ($)
$ / shares
shares
Mar. 31, 2021
shares
Dec. 31, 2020
shares
Consideration:      
Exchange Ratio 0.5165    
Common stock, shares issued (in shares) | shares   675,000,000 382,000,000
Devon closing price on January 7, 2021 | $ / shares $ 18.57    
Total common equity consideration $ 5,383    
Share-based replacement awards 49    
Total consideration 5,432    
Assets acquired:      
Cash, cash equivalents and restricted cash 344    
Accounts receivable 425    
Other current assets 49    
Right-of-use assets 38    
Proved oil and gas property and equipment 7,017    
Unproved and properties under development 2,367    
Other property and equipment 485    
Investments 400    
Other long-term assets 43    
Total assets acquired 11,168    
Liabilities assumed:      
Accounts payable 346    
Revenue and royalties payable 223    
Other current liabilities 454    
Debt 3,562    
Lease liabilities 38    
Asset retirement obligations 94    
Deferred income taxes 254    
Other long-term liabilities 765    
Total liabilities assumed 5,736    
Net assets acquired $ 5,432    
WPX      
Consideration:      
WPX Common Stock outstanding | shares 561,200,000    
Devon and WPX Agreement [Member]      
Consideration:      
Common stock, shares issued (in shares) | shares 289,900,000    
v3.21.1
Acquisition and Divestitures (Schedule of WPX Revenue and Earnings Included In Devons Consolidated Comprehensive Statements Of Earnings) (Details) - USD ($)
$ in Millions
3 Months Ended
Mar. 31, 2021
Mar. 31, 2020
Business Acquisition [Line Items]    
Total revenues $ 1,762 $ 2,087
Net earnings (loss) 216 $ (1,815)
WPX    
Business Acquisition [Line Items]    
Total revenues 772  
Net earnings (loss) $ 166  
v3.21.1
Acquisition and Divestitures (Schedule of Pro Forma Adjustments to Confirm Acquisition) (Details) - USD ($)
$ / shares in Units, $ in Millions
3 Months Ended
Mar. 31, 2021
Mar. 31, 2020
Business Acquisition [Line Items]    
Total revenues $ 1,762 $ 2,087
Net earnings (loss) $ 216 $ (1,815)
Basic net loss per share $ 0.33 $ (4.82)
Devon and WPX Agreement [Member] | Pro Forma [Member]    
Business Acquisition [Line Items]    
Total revenues   $ 3,485
Net earnings (loss)   $ (1,864)
Basic net loss per share   $ (2.77)
v3.21.1
Derivative Financial Instruments (Narrative) (Details)
Mar. 31, 2021
USD ($)
Derivative Instruments And Hedging Activities Disclosure [Abstract]  
Cash collateral held $ 0
Cash collateral posted $ 0
v3.21.1
Derivative Financial Instruments (Schedule Of Open Oil Derivative Positions) (Details)
3 Months Ended
Mar. 31, 2021
$ / bbl
bbl
NYMEX West Texas Intermediate Price Swaps Oil Q2-Q4 2021 [Member]  
Derivative [Line Items]  
Volume Per Day (Bbls/d) | bbl 81,122
Weighted Average Price Swap 40.45
NYMEX West Texas Intermediate Price Collars Oil Q1-Q4 2022 [Member]  
Derivative [Line Items]  
Volume Per Day (Bbls/d) | bbl 25,619
Weighted Average Price Swap 43.82
NYMEX West Texas Intermediate Price Swaptions Oil Q2-Q4 2021 [Member]  
Derivative [Line Items]  
Volume Per Day (Bbls/d) | bbl 6,691
Weighted Average Price Swap 40.12
NYMEX West Texas Intermediate Price Swaptions Oil Q1-Q4 2022 [Member]  
Derivative [Line Items]  
Volume Per Day (Bbls/d) | bbl 10,323
Weighted Average Price Swap 46.46
NYMEX West Texas Intermediate Price Collars Oil Q2-Q4 2021 [Member]  
Derivative [Line Items]  
Volume Per Day (Bbls/d) | bbl 40,905
Weighted Average Floor Price 39.84
Weighted Average Ceiling Price 49.84
NYMEX West Texas Intermediate Price Collars Oil Q1-Q4 2022 [Member]  
Derivative [Line Items]  
Volume Per Day (Bbls/d) | bbl 15,733
Weighted Average Floor Price 44.92
Weighted Average Ceiling Price 54.92
NYMEX West Texas Intermediate Call Options Sold Oil Q1-Q4 2021 [Member]  
Derivative [Line Items]  
Volume Per Day (Bbls/d) | bbl 5,000
Weighted Average Price Swap 39.50
Midland Sweet Basis Swaps Oil Q2-Q4 2021 [Member]  
Derivative [Line Items]  
Volume Per Day (Bbls/d) | bbl 22,669
Oil Basis Swaps 0.84
Guernsey Light Sweet Basis Swaps Oil Q2-Q4 2021 [Member]  
Derivative [Line Items]  
Volume Per Day (Bbls/d) | bbl 2,007
Oil Basis Swaps (1.48)
BRENT Basis Swaps Oil Q2-Q4 2021 [Member]  
Derivative [Line Items]  
Volume Per Day (Bbls/d) | bbl 1,000
Oil Basis Swaps (8.00)
NYMEX Roll Basis Swaps Oil Q2-Q4 2021 [Member]  
Derivative [Line Items]  
Volume Per Day (Bbls/d) | bbl 11,676
Oil Basis Swaps 0.38
BRENT Basis Swaps Oil Q1-Q4 2022 [Member]  
Derivative [Line Items]  
Volume Per Day (Bbls/d) | bbl 1,000
Oil Basis Swaps (7.75)
NYMEX Roll Basis Swaps Oil Q1-Q4 2022 [Member]  
Derivative [Line Items]  
Volume Per Day (Bbls/d) | bbl 16,000
Oil Basis Swaps 0.37
v3.21.1
Derivative Financial Instruments (Schedule Of Open Natural Gas Derivative Positions) (Details)
3 Months Ended
Mar. 31, 2021
MMBTU
$ / MMBTU
FERC Henry Hub Price Swaps Natural Gas Q1-Q4 2022 [Member]  
Derivative [Line Items]  
Volume Per Day (MMBtu/d) | MMBTU 3,452 [1]
Weighted Average Price Swap 2.85 [1]
FERC Henry Hub Price Swaps Natural Gas Q2-Q4 2021 [Member]  
Derivative [Line Items]  
Volume Per Day (MMBtu/d) | MMBTU 270,636 [1]
Weighted Average Price Swap 2.63 [1]
FERC Henry Hub Price Swaptions Natural Gas Q1-Q4 2022 [Member]  
Derivative [Line Items]  
Volume Per Day (MMBtu/d) | MMBTU 100,000 [2]
Weighted Average Price Swap 2.70 [2]
FERC Henry Hub Price Collars Natural Gas Q1-Q4 2022 [Member]  
Derivative [Line Items]  
Volume Per Day (MMBtu/d) | MMBTU 69,110 [2]
Weighted Average Floor Price 2.54 [2]
Weighted Average Ceiling Price 3.04 [2]
FERC Henry Hub Price Collars Natural Gas Q2-Q4 2021 [Member]  
Derivative [Line Items]  
Volume Per Day (MMBtu/d) | MMBTU 196,218 [2]
Weighted Average Floor Price 2.46 [2]
Weighted Average Ceiling Price 2.96 [2]
FERC Henry Hub Call Options Sold Natural Gas Q2-Q4 2021 [Member]  
Derivative [Line Items]  
Volume Per Day (MMBtu/d) | MMBTU 50,000 [2]
Weighted Average Price Swap 2.68 [2]
El Paso Natural Gas Basis Swaps Q2-Q4 2021 [Member]  
Derivative [Line Items]  
Volume Per Day (MMBtu/d) | MMBTU 35,000
Weighted Average Differential To Henry Hub (0.92)
WAHA Natural Gas Basis Swaps Q2-Q4 2021 [Member]  
Derivative [Line Items]  
Volume Per Day (MMBtu/d) | MMBTU 80,000
Weighted Average Differential To Henry Hub (0.65)
WAHA Natural Gas Basis Swaps Q1-Q4 2022 [Member]  
Derivative [Line Items]  
Volume Per Day (MMBtu/d) | MMBTU 70,000
Weighted Average Differential To Henry Hub (0.57)
WAHA Natural Gas Basis Swaps Q2-Q4 2023 [Member]  
Derivative [Line Items]  
Volume Per Day (MMBtu/d) | MMBTU 70,000
Weighted Average Differential To Henry Hub (0.51)
WAHA Natural Gas Basis Swaps Q2-Q4 2024 [Member]  
Derivative [Line Items]  
Volume Per Day (MMBtu/d) | MMBTU 40,000
Weighted Average Differential To Henry Hub (0.51)
[1]

Related to the 2021 open positions, 30,636 MMBtu/d settle against the Inside FERC first of month Henry Hub index at an average price of $2.76 and 240,000 MMBtu/d settle against the end of month NYMEX index at an average price of $2.62. All 2022 open positions settle against the Inside FERC first of month Henry Hub index.

[2]

Price swaptions and call options settle against end of the month NYMEX index. Price collars settle against the Inside FERC first of the month Henry Hub Index.

v3.21.1
Derivative Financial Instruments (Schedule Of Open Natural Gas Derivative Positions) (Parenthetical) (Details)
3 Months Ended
Mar. 31, 2021
$ / MMBTU
bbl
FERC Henry Hub Natural Gas [Member]  
Derivative [Line Items]  
Volume Per Day (Bbls/d) | bbl 30,636
Weighted Average Price Swap | $ / MMBTU 2.76
NYMEX West Texas Intermediate [Member]  
Derivative [Line Items]  
Volume Per Day (Bbls/d) | bbl 240,000
Weighted Average Price Swap | $ / MMBTU 2.62
v3.21.1
Derivative Financial Instruments (Schedule Of Open NGL Derivative Positions) (Details)
3 Months Ended
Mar. 31, 2021
$ / bbl
bbl
OPIS Mont Belvieu Texas Natural Gasoline Price Swaps NGL Q2-Q4 2021 [Member]  
Derivative [Line Items]  
Volume Per Day (Bbls/d) | bbl 1,000
Weighted Average Price Swap | $ / bbl 47.57
OPIS Mont Belvieu Texas Normal Butane Price Swaps NGL Q2-Q4 2021 [Member]  
Derivative [Line Items]  
Volume Per Day (Bbls/d) | bbl 1,000
Weighted Average Price Swap | $ / bbl 31.40
OPIS Mont Belvieu Texas Propane Price Swaps NGL Q2-Q4 2021 [Member]  
Derivative [Line Items]  
Volume Per Day (Bbls/d) | bbl 1,000
Weighted Average Price Swap | $ / bbl 27.88
v3.21.1
Derivative Financial Instruments (Schedule Of Derivative Financial Instruments Included In The Consolidated Balance Sheets) (Details) - USD ($)
$ in Millions
Mar. 31, 2021
Dec. 31, 2020
Derivatives Fair Value [Line Items]    
Fair value of derivative assets $ 6 $ 6
Fair value of derivative liabilities 789 148
Commodity Contract [Member] | Other Current Assets [Member]    
Derivatives Fair Value [Line Items]    
Fair value of derivative assets 3 5
Commodity Contract [Member] | Other Long-Term Assets [Member]    
Derivatives Fair Value [Line Items]    
Fair value of derivative assets 3 1
Commodity Contract [Member] | Other Current Liabilities [Member]    
Derivatives Fair Value [Line Items]    
Fair value of derivative liabilities 667 143
Commodity Contract [Member] | Other Long-Term Liabilities [Member]    
Derivatives Fair Value [Line Items]    
Fair value of derivative liabilities $ 122 $ 5
v3.21.1
Share-Based Compensation (Schedule Of Share-Based Compensation Expense Included In The Consolidated Statements Of Comprehensive Earnings) (Details) - USD ($)
$ in Millions
3 Months Ended
Mar. 31, 2021
Mar. 31, 2020
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]    
Share-based compensation expense $ 41 $ 20
G&A [Member]    
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]    
Share-based compensation expense 20 $ 20
Restructuring and Transaction Costs [Member]    
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]    
Accelerated share-based compensation expense $ 21  
v3.21.1
Share-Based Compensation (Summary Of Unvested Restricted Stock Awards, Performance-Based Restricted Stock Awards And Performance Share Units) (Details)
shares in Thousands
3 Months Ended
Mar. 31, 2021
$ / shares
shares
Restricted Stock Awards [Member]  
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]  
Unvested at December 31, 2020 | shares 5,316
Granted, awards and units | shares 5,542 [1]
Vested, awards and units | shares (4,329)
Forfeited, awards and units | shares (20)
Unvested at March 31, 2021 shares | shares 6,509
Unvested weighted average grant-date fair value at December 31, 2020 | $ / shares $ 25.82
Granted, weighted average grant-date fair value | $ / shares 18.71 [1]
Vested, weighted average grant-date fair value | $ / shares 22.63
Forfeited, weighted average grant-date fair value | $ / shares 24.79
Unvested weighted average grant-date fair value at March 31, 2021 | $ / shares $ 21.89
Performance-Based Restricted Stock Awards [Member]  
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]  
Unvested at December 31, 2020 | shares 44
Vested, awards and units | shares (39)
Unvested at March 31, 2021 shares | shares 5
Unvested weighted average grant-date fair value at December 31, 2020 | $ / shares $ 44.70
Vested, weighted average grant-date fair value | $ / shares 45.41
Unvested weighted average grant-date fair value at March 31, 2021 | $ / shares $ 38.54
Performance Share Units [Member]  
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]  
Unvested at December 31, 2020 | shares 1,994
Granted, awards and units | shares 861 [1]
Vested, awards and units | shares (754)
Forfeited, awards and units | shares (25)
Unvested at March 31, 2021 shares | shares 2,076 [2]
Unvested weighted average grant-date fair value at December 31, 2020 | $ / shares $ 31.89
Granted, weighted average grant-date fair value | $ / shares 18.08 [1]
Vested, weighted average grant-date fair value | $ / shares 37.40
Forfeited, weighted average grant-date fair value | $ / shares 36.04
Unvested weighted average grant-date fair value at March 31, 2021 | $ / shares $ 24.12
[1] Due to the closing 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. As a result, approximately 4.9 million awards relate to the conversion of WPX equity awards to Devon equity awards.
[2] A maximum of 4.2 million common shares could be awarded based upon Devon’s final TSR ranking.
v3.21.1
Share-Based Compensation (Summary Of Unvested Restricted Stock Awards, Performance-Based Restricted Stock Awards And Performance Share Units) (Parenthetical) (Details) - shares
3 Months Ended
Mar. 31, 2021
Jan. 07, 2021
Performance Share Units [Member] | Maximum [Member]    
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]    
Maximum common shares that could be awarded based upon total shareholder return 4,200,000  
Devon and WPX Agreement [Member]    
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]    
Per share conversion 0.5165 0.5165
Conversion of WPX employees’ shares to Devon shares 4,900,000  
v3.21.1
Share-Based Compensation (Summary Of Performance Share Units Grant-Date Fair Values And Their Related Assumptions) (Details) - Performance Share Units [Member]
3 Months Ended
Mar. 31, 2021
$ / shares
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]  
Grant-date fair value $ 18.08 [1]
Risk-free interest rate 0.18%
Volatility factor 67.80%
Contractual term (years) 2 years 10 months 20 days
[1] Due to the closing 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. As a result, approximately 4.9 million awards relate to the conversion of WPX equity awards to Devon equity awards.
v3.21.1
Share-Based Compensation (Summary of Unrecognized Compensation Cost And Weighted Average Period For Recognition) (Details)
$ in Millions
3 Months Ended
Mar. 31, 2021
USD ($)
Restricted Stock Awards [Member]  
Unrecognized Compensation And Weighted Average Recognition [Line Items]  
Unrecognized compensation cost $ 88
Weighted average period for recognition (years) 2 years 2 months 12 days
Performance-Based Restricted Stock Awards [Member]  
Unrecognized Compensation And Weighted Average Recognition [Line Items]  
Weighted average period for recognition (years) 2 months 12 days
Performance Share Units [Member]  
Unrecognized Compensation And Weighted Average Recognition [Line Items]  
Unrecognized compensation cost $ 21
Weighted average period for recognition (years) 2 years 3 months 18 days
v3.21.1
Asset Impairments (Summary of Asset Impairments) (Details) - USD ($)
$ in Millions
3 Months Ended
Mar. 31, 2021
Mar. 31, 2020
Impaired Long Lived Assets Held And Used [Line Items]    
Asset impairment charges   $ 2,666
Unproved impairments $ 3 112
Proved Oil and Gas Assets [Member]    
Impaired Long Lived Assets Held And Used [Line Items]    
Asset impairment charges   2,664
Other Assets [Member]    
Impaired Long Lived Assets Held And Used [Line Items]    
Asset impairment charges   2
Unproved Impairments [Member]    
Impaired Long Lived Assets Held And Used [Line Items]    
Unproved impairments $ 1 $ 110
v3.21.1
Asset Impairments (Narrative) (Details) - USD ($)
$ in Millions
3 Months Ended
Mar. 31, 2021
Mar. 31, 2020
Impaired Long Lived Assets Held And Used [Line Items]    
Asset impairments   $ 2,666
Exploration expenses $ 3 112
Proved Asset Impairments [Member]    
Impaired Long Lived Assets Held And Used [Line Items]    
Asset impairments   2,700
Product Line Fill Impairments [Member]    
Impaired Long Lived Assets Held And Used [Line Items]    
Asset impairments   2
Unproved Impairments [Member]    
Impaired Long Lived Assets Held And Used [Line Items]    
Exploration expenses $ 1 $ 110
v3.21.1
Restructuring and Transaction Costs (Narrative) (Details)
$ in Millions
3 Months Ended
Mar. 31, 2021
USD ($)
Restructuring Cost And Reserve [Line Items]  
Restructuring and transaction costs $ 189
Reduction of workforce [Member]  
Restructuring Cost And Reserve [Line Items]  
Restructuring and transaction costs 143
Expense associated with accelerated awards 21
Reduction Of Workforce | Defined Benefit Settlements [Member]  
Restructuring Cost And Reserve [Line Items]  
Restructuring and transaction costs 37
Transaction Costs [Member]  
Restructuring Cost And Reserve [Line Items]  
Underwriting, bank, legal and accounting fees $ 46
v3.21.1
Restructuring and Transaction Costs - (Schedule Of Restructuring And Transaction Costs) (Details)
$ in Millions
3 Months Ended
Mar. 31, 2021
USD ($)
Restructuring Cost And Reserve [Line Items]  
Restructuring cost $ 189
Other Restructuring [Member]  
Restructuring Cost And Reserve [Line Items]  
Restructuring cost 143
Transaction Costs [Member]  
Restructuring Cost And Reserve [Line Items]  
Restructuring cost $ 46
v3.21.1
Restructuring and Transaction Costs (Schedule Of The Activity And Balances Associated With Restructuring Liabilities) (Details) - USD ($)
$ in Millions
3 Months Ended
Mar. 31, 2021
Mar. 31, 2020
Restructuring Cost And Reserve [Line Items]    
Beginning balance $ 172 $ 21
Ending balance 224 12
Reduction Of Workforce    
Restructuring Cost And Reserve [Line Items]    
Restructuring reserve activity 61  
Prior years' restructurings [Member]    
Restructuring Cost And Reserve [Line Items]    
Restructuring reserve activity (9) (9)
Other Current Liabilities [Member]    
Restructuring Cost And Reserve [Line Items]    
Beginning balance 35 20
Ending balance 94 11
Other Current Liabilities [Member] | Reduction Of Workforce    
Restructuring Cost And Reserve [Line Items]    
Restructuring reserve activity 61  
Other Current Liabilities [Member] | Prior years' restructurings [Member]    
Restructuring Cost And Reserve [Line Items]    
Restructuring reserve activity (2) (9)
Other Long-Term Liabilities [Member]    
Restructuring Cost And Reserve [Line Items]    
Beginning balance 137 1
Ending balance 130 $ 1
Other Long-Term Liabilities [Member] | Prior years' restructurings [Member]    
Restructuring Cost And Reserve [Line Items]    
Restructuring reserve activity $ (7)  
v3.21.1
Income Taxes (Narrative) (Details) - USD ($)
$ in Millions
3 Months Ended
Mar. 31, 2021
Jan. 07, 2021
Income Tax Disclosure [Abstract]    
Deferred income taxes   $ 254
Other income tax expense benefit $ 15  
v3.21.1
Income Taxes (Schedule Of Effective Income Tax Rate Reconciliation) (Details) - USD ($)
$ in Millions
3 Months Ended
Mar. 31, 2021
Mar. 31, 2020
Income Tax Disclosure [Abstract]    
Loss from continuing operations before income taxes $ (32) $ (2,107)
Current income tax benefit (5) (106)
Deferred income tax benefit (243) (311)
Total income tax benefit $ (248) $ (417)
U.S. statutory income tax rate 21.00% 21.00%
State income taxes (1.00%) 1.00%
Change in tax legislation 0.00% 5.00%
Unrecognized tax benefits 0.00% 0.00%
Other (48.00%) (3.00%)
Deferred tax asset valuation allowance 791.00% (4.00%)
Effective income tax rate 763.00% 20.00%
v3.21.1
Net Earnings (Loss) Per Share from Continuing Operations (Net Earnings (Loss) Per Share Computations from Continuing Operations) (Details) - USD ($)
$ / shares in Units, shares in Millions, $ in Millions
3 Months Ended
Mar. 31, 2021
Mar. 31, 2020
Net earnings (loss) from continuing operations:    
Net earnings (loss) from continuing operations $ 213 $ (1,691)
Attributable to participating securities (2) (1)
Basic and diluted earnings (loss) from continuing operations $ 211 $ (1,692)
Common shares:    
Common shares outstanding - total 654 383
Attributable to participating securities (5) (6)
Common shares outstanding - basic 649 377
Dilutive effect of potential common shares issuable 2  
Common shares outstanding - diluted 651 377
Net earnings (loss) per share from continuing operations:    
Basic $ 0.33 $ (4.48)
Diluted $ 0.32 $ (4.48)
v3.21.1
Other Comprehensive Earnings (Loss) (Components Of Other Comprehensive Earnings (Loss)) (Details) - USD ($)
$ in Millions
3 Months Ended
Mar. 31, 2021
Mar. 31, 2020
Dec. 31, 2020
Pension and postretirement benefit plans:      
Beginning accumulated pension and postretirement benefits $ (127) $ (119)  
Recognition of net actuarial loss and prior service cost in earnings [1] 1 2  
Settlement of pension benefits [2] 15    
Income tax expense   (1)  
Other [3] 7    
Accumulated other comprehensive loss $ (104) $ (118) $ (127)
[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] Includes a remeasurement of the pension obligation due to the change in control described above which was partially offset by a change in mortality assumption.
v3.21.1
Supplemental Information To Statements Of Cash Flows (Schedule Of Supplemental Information To Statements Of Cash Flows) (Details) - USD ($)
$ in Millions
3 Months Ended
Mar. 31, 2021
Mar. 31, 2020
Changes in assets and liabilities, net:    
Accounts receivable $ (63) $ 238
Income tax receivable 15 (113)
Other current assets (25) (38)
Other long-term assets (10) (24)
Accounts payable 71 42
Revenues and royalties payable (55) (113)
Other current liabilities (33) (81)
Other long-term liabilities (27) 33
Total (127) (56)
Supplementary cash flow data - total operations:    
Interest paid 114 64
Income taxes paid (refunded) $ (6) $ 151
v3.21.1
Supplemental Information To Statements Of Cash Flows (Narrative) (Details) - USD ($)
$ in Millions
Mar. 31, 2021
Jan. 07, 2021
Dec. 31, 2020
Supplemental Cash Flow [Line Items]      
Accrued capital expenditures     $ 100
Total Property And Equipment Net And Accounts Payable Member      
Supplemental Cash Flow [Line Items]      
Accrued capital expenditures $ 230    
Accounts Payable Member | WPX      
Supplemental Cash Flow [Line Items]      
Accrued capital expenditures   $ 150  
v3.21.1
Accounts Receivable (Schedule Of Components Of Accounts Receivable) (Details) - USD ($)
$ in Millions
Mar. 31, 2021
Dec. 31, 2020
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Joint interest billings $ 127 $ 57
Other 54 25
Gross accounts receivable 1,104 612
Allowance for doubtful accounts (15) (11)
Net accounts receivable 1,089 601
Oil, Gas and NGL Sales [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Gross accounts receivable 742 335
Marketing and Midstream Revenues [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Gross accounts receivable $ 181 $ 195
v3.21.1
Property, Plant and Equipment (Summary of Property and Equipment, net) (Details) - USD ($)
$ in Millions
Mar. 31, 2021
Dec. 31, 2020
Property and equipment:    
Proved $ 35,119 $ 27,589
Unproved and properties under development 2,692 392
Total oil and gas 37,811 27,981
Less accumulated DD&A (23,985) (23,545)
Oil and gas property and equipment, net 13,826 4,436
Other property and equipment 2,060 1,737
Less accumulated DD&A (612) (780)
Other property and equipment, net [1] 1,448 957
Total property and equipment, net $ 15,274 $ 5,393
[1] $106 million and $102 million related to CDM in 2021 and 2020, respectively.
v3.21.1
Property, Plant and Equipment (Summary of Property and Equipment, net) (Parenthetical) (Details) - USD ($)
$ in Millions
Mar. 31, 2021
Dec. 31, 2020
Property Plant And Equipment [Line Items]    
Other property and equipment, net [1] $ 1,448 $ 957
CDM [Member]    
Property Plant And Equipment [Line Items]    
Other property and equipment, net $ 106 $ 102
[1] $106 million and $102 million related to CDM in 2021 and 2020, respectively.
v3.21.1
Debt And Related Expenses (Schedule Of Debt Instruments and Balances) (Details) - USD ($)
$ in Millions
3 Months Ended
Mar. 31, 2021
Dec. 31, 2020
Debt Instrument [Line Items]    
Net premium (discount) on debentures and notes $ (226) $ 20
Debt issuance costs (31) (31)
Total debt 7,268 4,298
Short-term debt 226  
Long-term debt 7,042 $ 4,298
8.25% due August 1, 2023 [Member]    
Debt Instrument [Line Items]    
Long-term debt, gross [1] $ 242  
Debt interest rate, stated percentage 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 [1] $ 472  
Debt interest rate, stated percentage 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
Debt interest rate, stated percentage 5.85% 5.85%
Debt, maturity date Dec. 15, 2025  
5.75% due June 1, 2026 [Member]    
Debt Instrument [Line Items]    
Long-term debt, gross [1] $ 500  
Debt interest rate, stated percentage 5.75% 5.75%
Debt, maturity date Jun. 01, 2026  
7.50% due September 15, 2027 [Member]    
Debt Instrument [Line Items]    
Long-term debt, gross $ 73 $ 73
Debt interest rate, stated percentage 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 [1] $ 600  
Debt interest rate, stated percentage 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 [1] $ 325  
Debt interest rate, stated percentage 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 [1] $ 585  
Debt interest rate, stated percentage 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
Debt interest rate, stated percentage 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
Debt interest rate, stated percentage 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
Debt interest rate, stated percentage 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
Debt interest rate, stated percentage 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
Debt interest rate, stated percentage 5.00% 5.00%
Debt, maturity date Jun. 15, 2045  
[1] These instruments were assumed by Devon in January 2021 in conjunction with the Merger. These instruments are the unsecured and unsubordinated obligation of WPX, a wholly-owned subsidiary of Devon.
v3.21.1
Debt And Related Expenses (Schedule of WPX Debt assumed with the Merger) (Details) - WPX
$ in Millions
3 Months Ended
Mar. 31, 2021
USD ($)
Debt Instrument [Line Items]  
Face Value $ 3,257
Fair Value 3,562
6.00% due January 15, 2022 [Member]  
Debt Instrument [Line Items]  
Face Value 43
Fair Value 44
8.25% due August 1, 2023 [Member]  
Debt Instrument [Line Items]  
Face Value 242
Fair Value $ 281
Optional Redemption Jun. 01, 2023 [1]
5.25% due September 15, 2024 [Member]  
Debt Instrument [Line Items]  
Face Value $ 472
Fair Value $ 530
Optional Redemption Jun. 15, 2024 [1]
5.75% due June 1, 2026 [Member]  
Debt Instrument [Line Items]  
Face Value $ 500
Fair Value $ 529
Optional Redemption Jun. 01, 2021 [1]
5.25% due October 15, 2027 [Member]  
Debt Instrument [Line Items]  
Face Value $ 600
Fair Value $ 646
Optional Redemption Oct. 15, 2022 [1]
5.875% due June 15, 2028 [Member]  
Debt Instrument [Line Items]  
Face Value $ 500
Fair Value $ 554
Optional Redemption Jun. 15, 2023 [1]
4.50% due January 15, 2030 [Member]  
Debt Instrument [Line Items]  
Face Value $ 900
Fair Value $ 978
Optional Redemption Jan. 15, 2025 [1]
[1]

At any time prior to these dates, Devon has the option to redeem some or all of the notes at a specified "make whole" premium as described in the indenture documents governing the notes to be redeemed. On or after these dates, Devon has the option to redeem the notes, in whole or in part, at the applicable redemption prices set forth in the indenture documents, plus accrued and unpaid interest thereon to the redemption date as more fully described in such documents.

v3.21.1
Debt And Related Expenses (Narrative) (Details) - USD ($)
3 Months Ended
Apr. 10, 2021
Mar. 31, 2021
Jun. 10, 2021
Dec. 31, 2020
Debt Instrument [Line Items]        
Redemption of senior notes   $ 533,000,000    
Early retirement of debt   20,000,000    
Charge on early retirement of debt, cash retirement costs   27,000,000    
Senior Notes [Member]        
Debt Instrument [Line Items]        
Early retirement of debt   20,000,000    
Charge on early retirement of debt, cash retirement costs   27,000,000    
Charge on early retirement of debt, noncash charges   47,000,000    
6.00% Due 2022 [Member] | Senior Notes [Member]        
Debt Instrument [Line Items]        
Redemption of senior notes   $ 43,000,000    
Debt interest rate, stated percentage   6.00%    
5.875% Due 2028 [Member] | Senior Notes [Member]        
Debt Instrument [Line Items]        
Redemption of senior notes   $ 175,000,000    
Debt interest rate, stated percentage   5.875%    
4.5% Due 2030 [Member] | Senior Notes [Member]        
Debt Instrument [Line Items]        
Redemption of senior notes   $ 315,000,000    
Debt interest rate, stated percentage   4.50%    
5.25% Due 2027 [Member] | Senior Notes [Member] | Subsequent Event        
Debt Instrument [Line Items]        
Redemption of senior notes $ 210,000,000      
Debt interest rate, stated percentage 5.25%      
5.75% due June 1, 2026 [Member]        
Debt Instrument [Line Items]        
Debt interest rate, stated percentage   5.75%   5.75%
5.75% due June 1, 2026 [Member] | Senior Notes [Member] | Subsequent Event        
Debt Instrument [Line Items]        
Debt interest rate, stated percentage     5.75%  
Senior Credit Facility [Member]        
Debt Instrument [Line Items]        
Credit Facility, borrowing capacity   $ 3,000,000,000.0    
Outstanding credit facility borrowings   $ 0    
Debt-to-capitalization ratio   0.274    
Outstanding letters of credit   $ 2,000,000    
Senior Credit Facility [Member] | Maximum [Member]        
Debt Instrument [Line Items]        
Debt-to-capitalization ratio   0.65    
v3.21.1
Debt And Related Expenses (Schedule of Net Financing Cost Components) (Details) - USD ($)
$ in Millions
3 Months Ended
Mar. 31, 2021
Mar. 31, 2020
Debt Disclosure [Abstract]    
Interest based on debt outstanding $ 105 $ 65
Gain on early retirement of debt (20)  
Interest income (1) (5)
Other (7) 5
Total net financing costs $ 77 $ 65
v3.21.1
Leases (Schedule of Right-of-use Assets and Lease Liabilities) (Details) - USD ($)
$ in Millions
Mar. 31, 2021
Dec. 31, 2020
Leases [Abstract]    
Right-of-use assets, finance lease $ 217 $ 220
Finance lease liabilities:    
Current lease liabilities, finance lease [1] 8 8
Long-term lease liabilities, finance lease 244 244
Total lease liabilities, finance lease 252 252
Right-of-use assets, operating lease 38 3
Operating lease liabilities:    
Current lease liabilities, operating lease [1] 23 1
Long-term lease liabilities, operating lease 16 2
Total lease liabilities, operating lease 39 3
Right-of-use assets 255 223
Lease liabilities:    
Current lease liabilities [1] 31 9
Long-term lease liabilities 260 246
Total lease liabilities $ 291 $ 255
[1] Current lease liabilities are included in other current liabilities on the consolidated balance sheets.
v3.21.1
Asset Retirement Obligations (Summary Of Changes In Asset Retirement Obligations) (Details) - USD ($)
$ in Millions
3 Months Ended
Mar. 31, 2021
Mar. 31, 2020
Dec. 31, 2020
Asset Retirement Obligation Disclosure [Abstract]      
Asset retirement obligations as of beginning of period $ 369 $ 398  
Assumed WPX obligations 98    
Liabilities incurred 9 6  
Liabilities settled and divested (17) (13)  
Revision of estimated obligation 11 4  
Accretion expense on discounted obligation 7 5  
Asset retirement obligations as of end of period 477 400  
Less current portion 22 14  
Asset retirement obligations, long-term $ 455 $ 386 $ 358
v3.21.1
Other Long-Term Liabilities - Components of Other Long-Term Liabilities (Details) - USD ($)
$ in Millions
Mar. 31, 2021
Dec. 31, 2020
Other Liabilities Noncurrent [Abstract]    
Assumed gathering, processing and transportation contracts $ 482  
Pension and post retirement benefit obligations 225 $ 243
Restructuring and transaction costs 130 137
Estimated future obligation under a performance guarantee 128  
Commodity derivatives 122 5
Other 182 166
Total other long-term liabilities $ 1,269 $ 551
v3.21.1
Other Long-Term Liabilities - Additional Information (Details) - USD ($)
$ in Millions
3 Months Ended
Mar. 31, 2021
Dec. 31, 2020
Terms of the contracts extendible 2038  
Amortization of liabilities as a reduction of production expenses $ 8  
Liability for the estimated potential exposure for the remainder of the contract term 164  
Other liabilities noncurrent 128  
Other current liabilities $ 1,246 $ 536
Probability weighted cash flows for the remainder of the contract term 5 years  
Other Current Liabilities [Member] | Delaware Basin    
Other current liabilities $ 36  
v3.21.1
Stockholders' Equity (Narrative) (Details) - USD ($)
$ / shares in Units, $ in Millions
3 Months Ended
May 04, 2021
Mar. 31, 2021
Mar. 31, 2020
Jan. 07, 2021
Dec. 31, 2020
Stockholders Equity [Abstract]          
Common stock converted to right to receive share       0.5165  
Common stock, shares issued (in shares)   675,000,000     382,000,000
Dividends rate per share   $ 0.30      
Fixed Dividend [Member]          
Stockholders Equity [Abstract]          
Dividends rate per share   0.11 $ 0.09    
Variable Dividend [Member]          
Stockholders Equity [Abstract]          
Dividends rate per share   $ 0.19      
Dividends amount   $ 127      
Subsequent Event          
Stockholders Equity [Abstract]          
Dividends rate per share $ 0.34        
Dividends payable, year 2021        
Subsequent Event | Fixed Dividend [Member]          
Stockholders Equity [Abstract]          
Dividends amount $ 74        
Dividends rate per share $ 0.11        
Subsequent Event | Variable Dividend [Member]          
Stockholders Equity [Abstract]          
Dividends rate per share $ 0.23        
Dividends amount $ 155        
Devon and WPX Agreement [Member]          
Stockholders Equity [Abstract]          
Common stock, shares issued (in shares)       289,900,000  
v3.21.1
Stockholders' Equity (Summary of Purchases of Common Stock) (Details)
$ / shares in Units, shares in Thousands, $ in Millions
3 Months Ended
Mar. 31, 2020
USD ($)
$ / shares
shares
Stockholders Equity [Line Items]  
Total Number of Shares Purchased | shares 2,243
Dollar Value of Shares Purchased | $ $ 38
Average Price Paid per Share | $ / shares $ 16.85
1.0 Billion Dollar Share Repurchase Program [Member]  
Stockholders Equity [Line Items]  
Total Number of Shares Purchased | shares 2,243
Dollar Value of Shares Purchased | $ $ 38
Average Price Paid per Share | $ / shares $ 16.85
v3.21.1
Stockholders' Equity (Summary Of Dividends Paid On Common Stock) (Details) - USD ($)
$ / shares in Units, $ in Millions
3 Months Ended
Mar. 31, 2021
Mar. 31, 2020
Stockholders Equity [Line Items]    
Total dividends amount $ 203 $ 34
Dividends rate per share $ 0.30  
Fixed Dividend [Member]    
Stockholders Equity [Line Items]    
Dividends amount $ 76 $ 34
Dividends rate per share $ 0.11 $ 0.09
Variable Dividend [Member]    
Stockholders Equity [Line Items]    
Dividends amount $ 127  
Dividends rate per share $ 0.19  
v3.21.1
Discontinued Operations (Narrative) (Details) - Barnett Shale [Member]
$ in Millions
3 Months Ended 48 Months Ended
Oct. 01, 2020
USD ($)
$ / MMBTU
$ / bbl
Mar. 31, 2021
USD ($)
Dec. 31, 2024
USD ($)
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items]      
Contingent payments valuation   $ 66  
BKV [Member]      
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items]      
Proceeds from the sale of business $ 490    
Contingent earnout payments $ 260    
Henry Hub gas price for contingent earnout payment upside | $ / MMBTU 2.75    
WTI oil price for contingent earnout payment upside | $ / bbl 50    
Contingent earnout payment period   The contingent payment period commenced on January 1, 2021 and has a term of four years.  
Scenario Forecast [Member] | BKV [Member]      
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items]      
Contingent earnout payment period     The contingent payment period commenced on January 1, 2021 and has a term of four years.
Scenario Forecast [Member] | Maximum [Member] | BKV [Member]      
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items]      
Contingent earnout payments     $ 260
v3.21.1
Discontinued Operations (Amounts Reported as Discontinued Operations in the Consolidated Statements of Comprehensive Earnings) (Details)
$ in Millions
3 Months Ended
Mar. 31, 2020
USD ($)
Discontinued Operations And Disposal Groups [Abstract]  
Oil, gas and NGL sales $ 92
Total revenues 92
Production expenses 74
Asset impairment charges 179 [1]
General and administrative expenses 1
Financing costs, net (2)
Other, net (3)
Total expenses 249
Loss from discontinued operations before income taxes (157)
Income tax expense (benefit) (32)
Net loss from discontinued operations, net of tax $ (125)
[1] Devon recognized an $179 million asset impairment in the first quarter of 2020 related to the Barnett Shale assets primarily due to the difference between the net carrying value and the purchase price, net of estimated customary purchase price adjustments, which qualified as a level 2 fair value measurement.
v3.21.1
Discontinued Operations (Amounts Reported as Discontinued Operations in the Consolidated Statements of Comprehensive Earnings) Parenthetical (Details)
$ in Millions
3 Months Ended
Mar. 31, 2020
USD ($)
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items]  
Asset impairments $ 179 [1]
Barnett Shale [Member]  
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items]  
Asset impairments $ 179
[1] Devon recognized an $179 million asset impairment in the first quarter of 2020 related to the Barnett Shale assets primarily due to the difference between the net carrying value and the purchase price, net of estimated customary purchase price adjustments, which qualified as a level 2 fair value measurement.
v3.21.1
Fair Value Measurements (Schedule Of Carrying Value And Fair Value Measurement Information For Financial Assets And Liabilities) (Details) - USD ($)
$ in Millions
Mar. 31, 2021
Dec. 31, 2020
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivatives, assets $ 6 $ 6
Derivatives, liabilities (789) (148)
Carrying Amount [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash equivalents 1,075 1,436
Debt (7,268) (4,298)
Contingent earnout payments 70 66
Carrying Amount [Member] | Commodity Contract [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivatives, assets 6 6
Derivatives, liabilities (789) (148)
Total Fair Value [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash equivalents 1,075 1,436
Debt (8,091) (5,365)
Contingent earnout payments 70 66
Total Fair Value [Member] | Commodity Contract [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivatives, assets 6 6
Derivatives, liabilities (789) (148)
Level 1 Inputs [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash equivalents 1,075 1,436
Level 2 Inputs [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Debt (8,091) (5,365)
Level 2 Inputs [Member] | Commodity Contract [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivatives, assets 6 6
Derivatives, liabilities (789) (148)
Level 3 Inputs [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Contingent earnout payments $ 70 $ 66