DEVON ENERGY CORP/DE, 10-Q filed on 8/5/2020
Quarterly Report
v3.20.2
Document And Entity Information - shares
shares in Millions
 6 Months Ended
Jun. 30, 2020
Jul. 22, 2020
Cover [Abstract]    
Document Type 10-Q  
Document Period End Date Jun. 30, 2020  
Amendment Flag false  
Trading Symbol DVN  
Entity Registrant Name DEVON ENERGY CORP/DE  
Entity Central Index Key 0001090012  
Current Fiscal Year End Date --12-31  
Document Fiscal Year Focus 2020  
Entity Filer Category Large Accelerated Filer  
Entity Small Business false  
Entity Emerging Growth Company false  
Document Fiscal Period Focus Q2  
Entity Common Stock, Shares Outstanding   382.8
Entity Current Reporting Status Yes  
Entity Shell Company false  
Entity File Number 001-32318  
Entity Tax Identification Number 73-1567067  
Entity Address, Address Line One 333 West Sheridan Avenue  
Entity Address, City or Town Oklahoma City  
Entity Address, State or Province OK  
Entity Address, Postal Zip Code 73102-5015  
City Area Code 405  
Local Phone Number 235-3611  
Entity Interactive Data Current Yes  
Title of 12(b) Security Common Stock, par value $0.10 per share  
Security Exchange Name NYSE  
Entity Incorporation, State or Country Code DE  
Document Quarterly Report true  
Document Transition Report false  
v3.20.2
Consolidated Statements of Comprehensive Earnings - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2020
Jun. 30, 2019
Jun. 30, 2020
Jun. 30, 2019
Revenues $ 755 $ 1,666 $ 2,122 $ 3,350
Oil, gas and NGL derivatives (361) 140 359 (465)
Total revenues 394 1,806 2,481 2,885
Production expenses 263 296 581 579
Exploration expenses 12 7 124 11
Depreciation, depletion and amortization 299 374 700 734
Asset impairments     2,666  
Asset dispositions   (2)   (47)
General and administrative expenses 79 114 181 249
Financing costs, net 69 66 134 126
Restructuring and transaction costs   12   63
Other expenses 13 7 (35) (15)
Total expenses 1,074 1,587 5,268 3,163
Earnings (loss) from continuing operations before income taxes (680) 219 (2,787) (278)
Income tax expense (benefit) (3) 68 (420) (51)
Net earnings (loss) from continuing operations (677) 151 (2,367) (227)
Net earnings (loss) from discontinued operations, net of income taxes 9 344 (116) 405
Net earnings (loss) (668) 495 (2,483) 178
Net earnings attributable to noncontrolling interests 2   3  
Net earnings (loss) attributable to Devon $ (670) $ 495 $ (2,486) $ 178
Basic net earnings (loss) per share:        
Basic earnings (loss) from continuing operations per share $ (1.80) $ 0.37 $ (6.29) $ (0.54)
Basic earnings (loss) from discontinued operations per share 0.02 0.83 (0.31) 0.96
Basic net earnings (loss) per share (1.78) 1.20 (6.60) 0.42
Diluted net earnings (loss) per share:        
Diluted earnings (loss) from continuing operations per share (1.80) 0.37 (6.29) (0.54)
Diluted earnings (loss) from discontinued operations per share 0.02 0.82 (0.31) 0.96
Diluted net earnings (loss) per share $ (1.78) $ 1.19 $ (6.60) $ 0.42
Comprehensive earnings (loss):        
Net earnings (loss) $ (668) $ 495 $ (2,483) $ 178
Other comprehensive earnings (loss), net of tax:        
Foreign currency translation, discontinued operations   43   78
Release of Canadian cumulative translation adjustment, discontinued operations [1]   (1,237)   (1,237)
Pension and postretirement plans 1 13 2 15
Other comprehensive earnings (loss), net of tax 1 (1,181) 2 (1,144)
Comprehensive loss (667) (686) (2,481) (966)
Comprehensive earnings attributable to noncontrolling interests 2   3  
Comprehensive loss attributable to Devon (669) (686) (2,484) (966)
Oil, Gas and NGL Sales [Member]        
Revenues 424 936 1,231 1,855
Marketing and Midstream Revenues [Member]        
Revenues 331 730 891 1,495
Marketing and Midstream Expenses [Member]        
Expenses $ 339 $ 713 $ 917 $ 1,463
[1] In conjunction with the sale of substantially all of its oil and gas assets and operations in Canada, Devon released the cumulative translation adjustment as part of its gain on the disposition of its Canadian business. See Note 17 for additional details.
v3.20.2
Consolidated Statements Of Cash Flows - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2020
Jun. 30, 2019
Jun. 30, 2020
Jun. 30, 2019
Cash flows from operating activities:        
Net earnings (loss) $ (668) $ 495 $ (2,483) $ 178
Adjustments to reconcile net earnings (loss) to net cash from operating activities:        
Net (earnings) loss from discontinued operations, net of income taxes (9) (344) 116 (405)
Depreciation, depletion and amortization 299 374 700 734
Asset impairments     2,666  
Leasehold impairments 3 1 113 2
Accretion on discounted liabilities 8 8 16 17
Total (gains) losses on commodity derivatives 361 (140) (359) 465
Cash settlements on commodity derivatives 232 23 333 54
Gains on asset dispositions   (2)   (47)
Deferred income tax expense (benefit)   65 (311) (50)
Share-based compensation 19 25 39 69
Other 4 2 4 (13)
Changes in assets and liabilities, net (99) (75) (155) (136)
Net cash from operating activities - continuing operations 150 432 679 868
Cash flows from investing activities:        
Capital expenditures (307) (486) (732) (976)
Acquisitions of property and equipment (1) (13) (5) (23)
Divestitures of property and equipment 3 28 28 338
Net cash from investing activities - continuing operations (305) (471) (709) (661)
Cash flows from financing activities:        
Repayments of long-term debt       (162)
Repurchases of common stock   (187) (38) (1,185)
Dividends paid on common stock (42) (37) (76) (71)
Contributions from noncontrolling interests 6   11  
Distributions to noncontrolling interests (3)   (6)  
Shares exchanged for tax withholdings and other   (3) (17) (23)
Net cash from financing activities - continuing operations (39) (227) (126) (1,441)
Net change in cash, cash equivalents and restricted cash of continuing operations (194) (266) (156) (1,234)
Cash flows from discontinued operations:        
Operating activities (43) 191 (174) 131
Investing activities 171 2,536 170 2,478
Financing activities 0 0 0 (7)
Effect of exchange rate changes on cash 8 37 (15) 39
Net change in cash, cash equivalents and restricted cash of discontinued operations 136 2,764 (19) 2,641
Net change in cash, cash equivalents and restricted cash (58) 2,498 (175) 1,407
Cash, cash equivalents and restricted cash at beginning of period 1,727 1,355 1,844 2,446
Cash, cash equivalents and restricted cash at end of period 1,669 3,853 1,669 3,853
Reconciliation of cash, cash equivalents and restricted cash:        
Cash and cash equivalents 1,474 3,470 1,474 3,470
Cash restricted for discontinued operations 195 370 195 370
Restricted cash included in other current assets   13   13
Cash, cash equivalents and restricted cash at end of period $ 1,669 $ 3,853 $ 1,669 $ 3,853
v3.20.2
Consolidated Balance Sheets - USD ($)
$ in Millions
Jun. 30, 2020
Dec. 31, 2019
ASSETS    
Cash and cash equivalents $ 1,474 $ 1,464
Cash restricted for discontinued operations 195 380
Accounts receivable 515 832
Current assets associated with discontinued operations 748 896
Other current assets 446 279
Total current assets 3,378 3,851
Oil and gas property and equipment, based on successful efforts accounting, net 4,673 7,558
Other property and equipment, net ($96 million and $80 million related to CDM in 2020 and 2019, respectively) [1] 1,013 1,035
Total property and equipment, net 5,686 8,593
Goodwill 753 753
Right-of-use assets 231 243
Other long-term assets 227 196
Long-term assets associated with discontinued operations 82 81
Total assets 10,357 13,717
LIABILITIES AND EQUITY    
Accounts payable 309 428
Revenues and royalties payable 473 730
Current liabilities associated with discontinued operations 441 459
Other current liabilities 229 310
Total current liabilities 1,452 1,927
Long-term debt 4,296 4,294
Lease liabilities 245 244
Asset retirement obligations 391 380
Other long-term liabilities 458 426
Long-term liabilities associated with discontinued operations 162 185
Deferred income taxes   341
Stockholders' equity:    
Common stock, $0.10 par value. Authorized 1.0 billion shares; issued 383 million and 382 million shares in 2020 and 2019, respectively 38 38
Additional paid-in capital 2,720 2,735
Retained earnings 586 3,148
Accumulated other comprehensive loss (117) (119)
Total stockholders’ equity attributable to Devon 3,227 5,802
Noncontrolling interests 126 118
Total equity 3,353 5,920
Total liabilities and equity $ 10,357 $ 13,717
[1] $96 million and $80 million related to CDM in 2020 and 2019, respectively.
v3.20.2
Consolidated Balance Sheets (Parenthetical) - USD ($)
$ in Millions
Jun. 30, 2020
Dec. 31, 2019
Other property and equipment, net [1] $ 1,013 $ 1,035
Common stock, par value (in dollars per share) $ 0.10 $ 0.10
Common stock, shares authorized (in shares) 1,000,000,000.0 1,000,000,000.0
Common stock, shares issued (in shares) 383,000,000 382,000,000
CDM [Member]    
Other property and equipment, net $ 96 $ 80
[1] $96 million and $80 million related to CDM in 2020 and 2019, respectively.
v3.20.2
Consolidated Statements Of Equity - USD ($)
shares in Millions, $ in Millions
Total
Effect of Adoption of Lease Accounting [Member]
Common Stock [Member]
Additional Paid-In Capital [Member]
Retained Earnings (Accumulated Deficit) [Member]
Retained Earnings (Accumulated Deficit) [Member]
Effect of Adoption of Lease Accounting [Member]
Other Comprehensive Earnings (Loss) [Member]
Treasury Stock [Member]
Noncontrolling Interests [Member]
Balance at Dec. 31, 2018 $ 9,186 $ (19) $ 45 $ 4,486 $ 3,650 $ (19) $ 1,027 $ (22)  
Balance, shares at Dec. 31, 2018     450            
Net earnings (loss) 178       178        
Other comprehensive earnings (loss), net of tax (1,144)           (1,144)    
Restricted stock grants, net of cancellations, shares     3            
Common stock repurchased (1,206)             (1,206)  
Common stock retired     $ (4) (1,204)       1,208  
Common stock retired, shares     (43)            
Common stock dividends (71)       (71)        
Share-based compensation 70     70          
Balance at Jun. 30, 2019 6,994   $ 41 3,352 3,738   (117) (20)  
Balance, shares at Jun. 30, 2019     410            
Balance at Mar. 31, 2019 7,857   $ 42 3,518 3,280   1,064 (47)  
Balance, shares at Mar. 31, 2019     417            
Net earnings (loss) 495       495        
Other comprehensive earnings (loss), net of tax (1,181)           (1,181)    
Common stock repurchased (164)             (164)  
Common stock retired     $ (1) (190)       191  
Common stock retired, shares     (7)            
Common stock dividends (37)       (37)        
Share-based compensation 24     24          
Balance at Jun. 30, 2019 6,994   $ 41 3,352 3,738   (117) (20)  
Balance, shares at Jun. 30, 2019     410            
Balance at Dec. 31, 2019 5,920   $ 38 2,735 3,148   (119)   $ 118
Balance, shares at Dec. 31, 2019     382            
Net earnings (loss) (2,483)       (2,486)       3
Other comprehensive earnings (loss), net of tax 2           2    
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 (76)       (76)        
Share-based compensation 39     39          
Share-based compensation, shares     1            
Contributions from noncontrolling interests 11               11
Distributions to noncontrolling interests (6)               (6)
Balance at Jun. 30, 2020 3,353   $ 38 2,720 586   (117)   126
Balance, shares at Jun. 30, 2020     383            
Balance at Mar. 31, 2020 4,040   $ 38 2,701 1,298   (118)   121
Balance, shares at Mar. 31, 2020     383            
Net earnings (loss) (668)       (670)       2
Other comprehensive earnings (loss), net of tax 1           1    
Common stock dividends (42)       (42)        
Share-based compensation 19     19          
Contributions from noncontrolling interests 6               6
Distributions to noncontrolling interests (3)               (3)
Balance at Jun. 30, 2020 $ 3,353   $ 38 $ 2,720 $ 586   $ (117)   $ 126
Balance, shares at Jun. 30, 2020     383            
v3.20.2
Summary Of Significant Accounting Policies
 6 Months Ended
Jun. 30, 2020
Accounting Policies [Abstract]  
Summary Of Significant Accounting Policies

DEVON ENERGY CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

 

1.

Summary of Significant Accounting Policies

The accompanying unaudited interim financial statements and notes of Devon have been prepared pursuant to the rules and regulations of the SEC. Pursuant to such rules and regulations, certain disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been omitted. The accompanying unaudited interim financial statements and notes should be read in conjunction with the financial statements and notes included in Devon’s 2019 Annual Report on Form 10-K.

The accompanying unaudited interim financial statements in this report reflect all adjustments that are, in the opinion of management, necessary for a fair statement of Devon’s results of operations and cash flows for the three-month and six-month periods ended June 30, 2020 and 2019 and Devon’s financial position as of June 30, 2020. As further discussed in Note 17, Devon reached an agreement to sell its Barnett Shale assets in December 2019, which was amended in April 2020, and sold its Canadian operations in the second quarter of 2019. Activity relating to Devon’s Barnett Shale assets, inclusive of properties divested as partial sales of the Barnett Shale common operating field in previous reporting periods located primarily in Johnson and Wise counties, Texas, and its Canadian operations are classified as discontinued operations within Devon’s consolidated statements of comprehensive earnings and consolidated statements of cash flows. The associated assets and liabilities of Devon’s Barnett Shale assets and Canadian operations are presented as assets and liabilities associated with discontinued operations on the consolidated balance sheets.

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

 

Disaggregation of Revenue

 

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

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Oil

 

$

296

 

 

$

750

 

 

$

958

 

 

$

1,409

 

Gas

 

 

72

 

 

 

73

 

 

 

142

 

 

 

211

 

NGL

 

 

56

 

 

 

113

 

 

 

131

 

 

 

235

 

Oil, gas and NGL sales

 

 

424

 

 

 

936

 

 

 

1,231

 

 

 

1,855

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Oil

 

 

140

 

 

 

394

 

 

 

469

 

 

 

750

 

Gas

 

 

79

 

 

 

172

 

 

 

171

 

 

 

390

 

NGL

 

 

110

 

 

 

164

 

 

 

247

 

 

 

355

 

Total marketing revenues

 

 

329

 

 

 

730

 

 

 

887

 

 

 

1,495

 

Midstream revenues

 

 

2

 

 

 

—

 

 

 

4

 

 

 

—

 

Marketing and midstream revenues

 

 

331

 

 

 

730

 

 

 

891

 

 

 

1,495

 

Total revenues from contracts with customers

 

$

755

 

 

$

1,666

 

 

$

2,122

 

 

$

3,350

 

 

 


Recently Adopted Accounting Standards

 

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

 
v3.20.2
Divestitures
 6 Months Ended
Jun. 30, 2020
Business Combinations [Abstract]  
Divestitures

2.Divestitures

 

Discontinued Operations – Upstream Assets

 

In June 2019, Devon completed the sale of substantially all of its oil and gas assets and operations in Canada to Canadian Natural Resources Limited for proceeds, net of purchase price adjustments, of $2.6 billion ($3.4 billion Canadian dollars), and recognized a pre-tax gain of $223 million ($425 million, net of tax, primarily due to a significant deferred tax benefit) in 2019. Additional information can be found in Note 17.

 

Devon announced the sale of its Barnett Shale assets to BKV in December 2019 and subsequently amended the agreement in April 2020. Under the amended terms, Devon has agreed to sell its Barnett Shale assets for $570 million in cash, before purchase price adjustments, at closing, which is scheduled for October 1, 2020. Under the terms of the agreement, Devon received deposit funds of $170 million in April 2020. Devon recognized a $748 million asset impairment related to these assets in the fourth quarter of 2019 and an incremental $179 million asset impairment during the first quarter of 2020. Additional information can be found in Note 17.

 

Continuing Operations – Upstream Assets

 

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

 

In the first quarter of 2019, Devon received proceeds of approximately $300 million and recognized a $45 million net gain on asset dispositions, primarily from sales of non-core assets in the Permian Basin. In aggregate, the total estimated proved reserves associated with these divested assets were approximately 25 MMBoe.
v3.20.2
Derivative Financial Instruments
 6 Months Ended
Jun. 30, 2020
Derivative Instruments And Hedging Activities Disclosure [Abstract]  
Derivative Financial Instruments

 

3.Derivative Financial Instruments

Objectives and Strategies

Devon enters into derivative financial instruments with respect to a portion of its oil, gas and NGL production to hedge future prices received. Additionally, Devon periodically enters into derivative financial instruments with respect to a portion of its oil, gas and NGL marketing activities. These commodity derivative financial instruments include financial price swaps, basis swaps and costless price collars. Devon periodically enters into interest rate swaps to manage its exposure to interest rate volatility. As of June 30, 2020, Devon did not have any open interest rate swap contracts.

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


Counterparty Credit Risk

By using derivative financial instruments, Devon is exposed to credit risk. Credit risk is the failure of the counterparty to perform under the terms of the derivative contract. To mitigate this risk, the hedging instruments are placed with a number of counterparties whom Devon believes are acceptable credit risks. It is Devon’s policy to enter into derivative contracts only with investment-grade rated counterparties deemed by management to be competent and competitive market makers. Additionally, Devon’s derivative contracts generally contain provisions that provide for collateral payments if Devon’s or its counterparty’s credit rating falls below certain credit rating levels. As of June 30, 2020, Devon did not hold any cash collateral of its counterparties.

Commodity Derivatives

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

 

 

 

Price Swaps

 

 

Price Collars

 

Period

 

Volume

(Bbls/d)

 

 

Weighted

Average

Price ($/Bbl)

 

 

Volume

(Bbls/d)

 

 

Weighted

Average Floor

Price ($/Bbl)

 

 

Weighted

Average

Ceiling Price

($/Bbl)

 

Q3-Q4 2020

 

 

87,750

 

 

$

36.65

 

 

 

43,500

 

 

$

50.96

 

 

$

60.96

 

Q1-Q4 2021

 

 

23,558

 

 

$

35.69

 

 

 

15,964

 

 

$

41.24

 

 

$

51.24

 

 

 

 

 

Oil Basis Swaps

 

Period

 

Index

 

Volume

(Bbls/d)

 

 

Weighted Average

Differential to WTI

($/Bbl)

 

Q3-Q4 2020

 

Argus MEH

 

 

52,500

 

 

$

0.42

 

Q3-Q4 2020

 

Midland Sweet

 

 

32,000

 

 

$

(1.23

)

Q3-Q4 2020

 

NYMEX Roll

 

 

54,000

 

 

$

0.38

 

Q1-Q4 2021

 

Midland Sweet

 

 

7,000

 

 

$

1.27

 

 

As of June 30, 2020, Devon had the following open natural gas derivative positions. The first table presents Devon’s natural gas derivatives that settle against the Inside FERC first of the month Henry Hub index. The second table presents Devon’s natural gas derivatives that settle against the respective indices noted within the table.

 

 

 

Price Swaps

 

 

Price Collars

 

Period

 

Volume (MMBtu/d)

 

 

Weighted Average Price ($/MMBtu)

 

 

Volume (MMBtu/d)

 

 

Weighted Average Floor Price ($/MMBtu)

 

 

Weighted Average

Ceiling Price ($/MMBtu)

 

Q3-Q4 2020

 

 

59,150

 

 

$

2.69

 

 

 

180,000

 

 

$

1.96

 

 

$

2.45

 

Q1-Q4 2021

 

 

18,699

 

 

$

2.69

 

 

 

106,055

 

 

$

2.31

 

 

$

2.81

 

 

 

 

Natural Gas Basis Swaps

 

Period

 

Index

 

Volume

(MMBtu/d)

 

 

Weighted Average

Differential to

Henry Hub

($/MMBtu)

 

Q3-Q4 2020

 

Panhandle Eastern Pipe Line

 

 

30,000

 

 

$

(0.47

)

Q3-Q4 2020

 

El Paso Natural Gas

 

 

65,000

 

 

$

(0.78

)

Q3-Q4 2020

 

Houston Ship Channel

 

 

30,000

 

 

$

(0.02

)

Q1-Q4 2021

 

El Paso Natural Gas

 

 

35,000

 

 

$

(0.92

)

 

 

As of June 30, 2020, Devon had the following open NGL derivative positions. Devon’s NGL positions settle against the average of the prompt month OPIS Mont Belvieu, Texas index.

 

 

 

 

 

Price Swaps

 

Period

 

Product

 

Volume (Bbls/d)

 

 

Weighted Average Price ($/Bbl)

 

Q3-Q4 2020

 

Ethane

 

 

7,500

 

 

$

5.62

 

Q3-Q4 2020

 

Natural Gasoline

 

 

1,000

 

 

$

44.84

 

Q3-Q4 2020

 

Normal Butane

 

 

1,500

 

 

$

23.56

 

Q3-Q4 2020

 

Propane

 

 

4,500

 

 

$

25.18

 

 

Financial Statement Presentation

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

 

 

June 30, 2020

 

 

December 31, 2019

 

Commodity derivative assets:

 

 

 

 

 

 

 

 

Other current assets

 

$

95

 

 

$

49

 

Other long-term assets

 

 

6

 

 

 

1

 

Total derivative assets

 

$

101

 

 

$

50

 

Commodity derivative liabilities:

 

 

 

 

 

 

 

 

Other current liabilities

 

$

49

 

 

$

30

 

Other long-term liabilities

 

 

9

 

 

 

1

 

Total derivative liabilities

 

$

58

 

 

$

31

 

 
v3.20.2
Share-Based Compensation
 6 Months Ended
Jun. 30, 2020
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]  
Share-Based Compensation

 

4.Share-Based Compensation

 

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

 

 

 

Six Months Ended June 30,

 

 

 

2020

 

 

2019

 

G&A

 

$

39

 

 

$

44

 

Exploration expenses

 

 

—

 

 

 

1

 

Restructuring and transaction costs

 

 

—

 

 

 

24

 

Total

 

$

39

 

 

$

69

 

Related income tax benefit

 

$

—

 

 

$

10

 

 

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

 

 

 

 

 

 

Performance-Based

 

 

Performance

 

 

 

Restricted Stock Awards

 

 

Restricted Stock Awards

 

 

Share Units

 

 

 

Awards

 

 

Weighted

Average

Grant-Date

Fair Value

 

 

Awards

 

 

Weighted

Average

Grant-Date

Fair Value

 

 

Units

 

 

 

 

 

Weighted

Average

Grant-Date

Fair Value

 

 

 

(Thousands, except fair value data)

 

Unvested at 12/31/19

 

 

4,984

 

 

$

29.65

 

 

 

153

 

 

$

33.88

 

 

 

2,155

 

 

 

 

 

$

40.35

 

Granted

 

 

3,051

 

 

$

21.93

 

 

 

—

 

 

$

—

 

 

 

688

 

 

 

 

 

$

27.89

 

Vested

 

 

(1,847

)

 

$

29.26

 

 

 

(109

)

 

$

29.51

 

 

 

(455

)

 

 

 

 

$

52.56

 

Forfeited

 

 

(162

)

 

$

25.01

 

 

 

—

 

 

$

—

 

 

 

(364

)

 

 

 

 

$

48.66

 

Unvested at 6/30/20

 

 

6,026

 

 

$

25.98

 

 

 

44

 

 

$

44.70

 

 

 

2,024

 

 

(1

)

 

$

31.87

 

 

(1)

A maximum of 4.0 million common shares could be awarded based upon Devon’s final TSR ranking.

The following table presents the assumptions related to the performance share units granted in 2020, as indicated in the previous summary table.

 

 

 

2020

 

Grant-date fair value

 

$

27.89

 

Risk-free interest rate

 

1.36%

 

Volatility factor

 

38.4%

 

Contractual term (years)

 

2.89

 

 

 

The following table presents a summary of the unrecognized compensation cost and the related weighted average recognition period associated with unvested awards and units as of June 30, 2020.

 

 

 

 

 

 

 

Performance-Based

 

 

 

 

 

 

 

Restricted Stock

 

 

Restricted Stock

 

 

Performance

 

 

 

Awards

 

 

Awards

 

 

Share Units

 

Unrecognized compensation cost

 

$

107

 

 

$

—

 

 

$

19

 

Weighted average period for recognition (years)

 

 

2.7

 

 

 

0.9

 

 

 

1.8

 

 
v3.20.2
Asset Impairments
 6 Months Ended
Jun. 30, 2020
Asset Impairment Charges [Abstract]  
Asset Impairments

5.Asset Impairments

 

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

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Proved oil and gas assets

 

$

—

 

 

$

—

 

 

$

2,664

 

 

$

—

 

Other assets

 

 

—

 

 

 

—

 

 

 

2

 

 

 

—

 

Total asset impairments

 

$

—

 

 

$

—

 

 

$

2,666

 

 

$

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unproved impairments

 

$

3

 

 

$

1

 

 

$

113

 

 

$

2

 

 


Proved Oil and Gas and Other Asset Impairments

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

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

Unproved Impairments

Due to the downturn in the commodity price environment and reduced near-term investment as discussed above, Devon also recognized $113 million of unproved impairments during the first six months of 2020, primarily in the Rockies field.

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

6.Restructuring and Transaction Costs

During the first quarter of 2019, Devon announced workforce reductions and other initiatives designed to enhance its operational focus and cost structure in conjunction with the portfolio transformation discussed in Note 2. As a result, Devon recognized $63 million of restructuring expenses during the first six months of 2019. Of these expenses, $24 million resulted from accelerated vesting of share-based grants, which are noncash charges. Additionally, $5 million resulted from settlements of defined retirement benefits.

The following table summarizes Devon’s restructuring liabilities.

 

 

 

Other

 

 

Other

 

 

 

 

 

 

 

Current

 

 

Long-term

 

 

 

 

 

 

 

Liabilities

 

 

Liabilities

 

 

Total

 

 

 

(Millions)

 

Balance as of December 31, 2019

 

$

20

 

 

$

1

 

 

$

21

 

Changes related to prior years' restructurings

 

 

(13

)

 

 

—

 

 

 

(13

)

Balance as of June 30, 2020

 

$

7

 

 

$

1

 

 

$

8

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance as of December 31, 2018

 

$

39

 

 

$

3

 

 

$

42

 

Changes related to prior years' restructurings

 

 

—

 

 

 

(2

)

 

 

(2

)

Balance as of June 30, 2019

 

$

39

 

 

$

1

 

 

$

40

 

 
v3.20.2
Income Taxes
 6 Months Ended
Jun. 30, 2020
Income Tax Disclosure [Abstract]  
Income Taxes

7.Income Taxes

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

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Earnings (loss) from continuing operations before income taxes

 

$

(680

)

 

$

219

 

 

$

(2,787

)

 

$

(278

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current income tax expense (benefit)

 

$

(3

)

 

$

3

 

 

$

(109

)

 

$

(1

)

Deferred income tax expense (benefit)

 

 

—

 

 

 

65

 

 

 

(311

)

 

 

(50

)

Total income tax expense (benefit)

 

$

(3

)

 

$

68

 

 

$

(420

)

 

$

(51

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. statutory income tax rate

 

 

21

%

 

 

21

%

 

 

21

%

 

 

21

%

State income taxes

 

 

0

%

 

 

9

%

 

 

1

%

 

 

3

%

Change in tax legislation

 

 

0

%

 

 

0

%

 

 

3

%

 

 

0

%

Other

 

 

(1

%)

 

 

1

%

 

 

(2

%)

 

 

(6

%)

Deferred tax asset valuation allowance

 

 

(20

%)

 

 

0

%

 

 

(8

%)

 

 

0

%

Effective income tax rate

 

 

0

%

 

 

31

%

 

 

15

%

 

 

18

%

 

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

The Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) became law on March 27, 2020. The CARES Act allows net operating losses generated in taxable years beginning after December 31, 2017 and before January 1, 2021 to be carried back five years to offset taxable income and generate a refund. Devon intends to carry net operating losses generated in 2019 and 2020 back to 2014 and 2015, respectively. As a result, Devon recorded a $96 million income tax benefit through the first six months of 2020, and expects to record an additional $2 million income tax benefit by the end of the year.

On July 28, 2020, the Department of Treasury issued final regulations regarding the provision of the Tax Cuts and Jobs Act that limits the deduction for business interest expense. Upon preliminary review of the regulations, there are provisions that may have a favorable impact to Devon. Upon completing a full review of the final regulations, Devon expects to record the effects of this tax legislation in the third quarter of 2020.

Throughout 2019, Devon maintained a valuation allowance against certain deferred tax assets, including certain tax credits and state net operating losses. Since then, reduced demand from the COVID-19 pandemic has caused an unprecedented downturn in the commodity price environment. As a result, Devon recorded significant impairments during the first quarter of 2020 and is now in a net deferred tax asset position. Devon reassessed its position and recorded a 100% valuation allowance against all net deferred tax assets as of March 31, 2020 and remains in a full valuation allowance position as of June 30, 2020.

 

Included in “other” in the table above is the impact of increasing Devon’s unrecognized tax benefits by approximately $34 million during the first quarter of 2020.

 

 
v3.20.2
Net Earnings (Loss) Per Share from Continuing Operations
 6 Months Ended
Jun. 30, 2020
Earnings Per Share [Abstract]  
Net Earnings (Loss) Per Share from Continuing Operations

8.

Net Earnings (Loss) Per Share from Continuing Operations

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

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Net earnings (loss) from continuing operations:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net earnings (loss) from continuing operations

 

$

(679

)

 

$

151

 

 

$

(2,370

)

 

$

(227

)

Attributable to participating securities

 

 

—

 

 

 

(2

)

 

 

(1

)

 

 

(1

)

Basic and diluted earnings (loss) from continuing operations

 

$

(679

)

 

$

149

 

 

$

(2,371

)

 

$

(228

)

Common shares:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common shares outstanding - total

 

 

383

 

 

 

415

 

 

 

383

 

 

 

425

 

Attributable to participating securities

 

 

(6

)

 

 

(6

)

 

 

(6

)

 

 

(6

)

Common shares outstanding - basic

 

 

377

 

 

 

409

 

 

 

377

 

 

 

419

 

Dilutive effect of potential common shares issuable

 

 

—

 

 

 

2

 

 

 

—

 

 

 

—

 

Common shares outstanding - diluted

 

 

377

 

 

 

411

 

 

 

377

 

 

 

419

 

Net earnings (loss) per share from continuing operations:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

(1.80

)

 

$

0.37

 

 

$

(6.29

)

 

$

(0.54

)

Diluted

 

$

(1.80

)

 

$

0.37

 

 

$

(6.29

)

 

$

(0.54

)

Antidilutive options (1)

 

 

—

 

 

 

1

 

 

 

—

 

 

 

1

 

 

(1)

Amounts represent options to purchase shares of Devon’s common stock that are excluded from the diluted net earnings per share calculations because the options are antidilutive.
v3.20.2
Other Comprehensive Earnings (Loss)
 6 Months Ended
Jun. 30, 2020
Other Comprehensive Income Loss Net Of Tax Period Increase Decrease [Abstract]  
Other Comprehensive Earnings (Loss)

 

9.

Other Comprehensive Earnings (Loss)

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

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Foreign currency translation:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning accumulated foreign currency translation and other

 

$

—

 

 

$

1,194

 

 

$

—

 

 

$

1,159

 

Change in cumulative translation adjustment

 

 

—

 

 

 

43

 

 

 

—

 

 

 

78

 

Release of Canadian cumulative translation adjustment (1)

 

 

—

 

 

 

(1,237

)

 

 

—

 

 

 

(1,237

)

Ending accumulated foreign currency translation and other

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Pension and postretirement benefit plans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning accumulated pension and postretirement benefits

 

 

(118

)

 

 

(130

)

 

 

(119

)

 

 

(132

)

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

 

 

1

 

 

 

17

 

 

 

3

 

 

 

20

 

Income tax expense

 

 

—

 

 

 

(4

)

 

 

(1

)

 

 

(5

)

Ending accumulated pension and postretirement benefits

 

 

(117

)

 

 

(117

)

 

 

(117

)

 

 

(117

)

Accumulated other comprehensive loss, net of tax

 

$

(117

)

 

$

(117

)

 

$

(117

)

 

$

(117

)

 

 

(1)

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

 

(2)

These accumulated other comprehensive earnings (loss) components are included in the computation of net periodic benefit cost, which is a component of other expenses in the accompanying consolidated statements of comprehensive earnings.
v3.20.2
Supplemental Information To Statements Of Cash Flows
 6 Months Ended
Jun. 30, 2020
Supplemental Cash Flow Elements [Abstract]  
Supplemental Information To Statements Of Cash Flows

10.

Supplemental Information to Statements of Cash Flows

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Changes in assets and liabilities, net:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accounts receivable

 

$

80

 

 

$

39

 

 

$

318

 

 

$

10

 

Income tax receivable

 

 

1

 

 

 

(1

)

 

 

(112

)

 

 

(1

)

Other current assets

 

 

30

 

 

 

(6

)

 

 

(8

)

 

 

3

 

Other long-term assets

 

 

—

 

 

 

(7

)

 

 

(24

)

 

 

(15

)

Accounts payable

 

 

(44

)

 

 

14

 

 

 

(2

)

 

 

(37

)

Revenues and royalties payable

 

 

(145

)

 

 

(62

)

 

 

(258

)

 

 

(16

)

Other current liabilities

 

 

(16

)

 

 

(66

)

 

 

(97

)

 

 

(89

)

Other long-term liabilities

 

 

(5

)

 

 

14

 

 

 

28

 

 

 

9

 

Total

 

$

(99

)

 

$

(75

)

 

$

(155

)

 

$

(136

)

Supplementary cash flow data - total operations:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest paid

 

$

66

 

 

$

108

 

 

$

130

 

 

$

161

 

Income taxes paid

 

$

21

 

 

$

10

 

 

$

172

 

 

$

16

 

 

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

v3.20.2
Accounts Receivable
 6 Months Ended
Jun. 30, 2020
Accounts Receivable Net [Abstract]  
Accounts Receivable

11.

Accounts Receivable

Components of accounts receivable include the following:

 

 

 

June 30, 2020

 

 

December 31, 2019

 

Oil, gas and NGL sales

 

$

228

 

 

$

452

 

Joint interest billings

 

 

95

 

 

 

168

 

Marketing and midstream revenues

 

 

114

 

 

 

207

 

Other

 

 

88

 

 

 

13

 

Gross accounts receivable

 

 

525

 

 

 

840

 

Allowance for doubtful accounts

 

 

(10

)

 

 

(8

)

Net accounts receivable

 

$

515

 

 

$

832

 

 
v3.20.2
Property, Plant and Equipment
 6 Months Ended
Jun. 30, 2020
Extractive Industries [Abstract]  
Property, Plant and Equipment

 

12.Property, Plant and Equipment

 

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

 

 

 

June 30, 2020

 

 

December 31, 2019

 

Property and equipment:

 

 

 

 

 

 

 

 

Proved

 

$

28,200

 

 

$

27,668

 

Unproved and properties under development

 

 

483

 

 

 

583

 

Total oil and gas

 

 

28,683

 

 

 

28,251

 

Less accumulated DD&A

 

 

(24,010

)

 

 

(20,693

)

Oil and gas property and equipment, net

 

 

4,673

 

 

 

7,558

 

Other property and equipment

 

 

1,735

 

 

 

1,725

 

Less accumulated DD&A

 

 

(722

)

 

 

(690

)

Other property and equipment, net (1)

 

 

1,013

 

 

 

1,035

 

Property and equipment, net

 

$

5,686

 

 

$

8,593

 

 

 

(1)

$96 million and $80 million related to CDM in 2020 and 2019, respectively.

 

During the first six months of 2020, Devon recognized asset impairments of $2.7 billion primarily related to proved oil and gas assets and $113 million of unproved impairments, which significantly reduced the carrying value of its property and equipment, net. See Note 5 for additional details.
v3.20.2
Debt And Related Expenses
 6 Months Ended
Jun. 30, 2020
Debt Disclosure [Abstract]  
Debt and Related Expenses

 

13.

 

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

 

 

 

June 30, 2020

 

 

December 31, 2019

 

5.85% due December 15, 2025

 

$

485

 

 

$

485

 

7.50% due September 15, 2027

 

 

73

 

 

 

73

 

7.875% due September 30, 2031

 

 

675

 

 

 

675

 

7.95% due April 15, 2032

 

 

366

 

 

 

366

 

5.60% due July 15, 2041

 

 

1,250

 

 

 

1,250

 

4.75% due May 15, 2042

 

 

750

 

 

 

750

 

5.00% due June 15, 2045

 

 

750

 

 

 

750

 

Net discount on debentures and notes

 

 

(20

)

 

 

(20

)

Debt issuance costs

 

 

(33

)

 

 

(35

)

Total long-term debt

 

$

4,296

 

 

$

4,294

 

Devon has a $3.0 billion Senior Credit Facility. As of June 30, 2020, Devon had no outstanding borrowings under the Senior Credit Facility and had issued $2 million in outstanding letters of credit under this facility. The Senior Credit Facility contains only one material financial covenant. This covenant requires Devon’s ratio of total funded debt to total capitalization, as defined in the credit agreement, to be no greater than 65%. Under the terms of the credit agreement, total capitalization is adjusted to add back noncash financial write-downs such as impairments. As of June 30, 2020, Devon was in compliance with this covenant with a debt-to-capitalization ratio of 19.3%.

Retirement of Senior Notes

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

Net Financing Costs

The following schedule includes the components of net financing costs.

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Interest based on debt outstanding

 

$

65

 

 

$

65

 

 

$

130

 

 

$

130

 

Interest income

 

 

(2

)

 

 

(7

)

 

 

(7

)

 

 

(18

)

Other

 

 

6

 

 

 

8

 

 

 

11

 

 

 

14

 

Total net financing costs

 

$

69

 

 

$

66

 

 

$

134

 

 

$

126

 

 
v3.20.2
Leases
 6 Months Ended
Jun. 30, 2020
Leases [Abstract]  
Leases

14.Leases

 

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

 

 

 

June 30, 2020

 

 

December 31, 2019

 

 

 

Finance

 

 

Operating

 

 

Total

 

 

Finance

 

 

Operating

 

 

Total

 

Right-of-use assets

 

$

225

 

 

$

6

 

 

$

231

 

 

$

229

 

 

$

14

 

 

$

243

 

Lease liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current lease liabilities (1)

 

$

7

 

 

$

4

 

 

$

11

 

 

$

7

 

 

$

10

 

 

$

17

 

Long-term lease liabilities

 

 

242

 

 

 

3

 

 

 

245

 

 

 

240

 

 

 

4

 

 

 

244

 

Total lease liabilities

 

$

249

 

 

$

7

 

 

$

256

 

 

$

247

 

 

$

14

 

 

$

261

 

 

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

 

Devon’s right-of-use operating lease assets are for certain leases related to real estate, drilling rigs and other equipment related to the exploration, development and production of oil and gas. Devon’s right-of-use financing lease assets are related to real estate.

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

15.

Asset Retirement Obligations

 

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

 

 

Six Months Ended June 30,

 

 

 

2020

 

 

2019

 

Asset retirement obligations as of beginning of period

 

$

398

 

 

$

484

 

Liabilities incurred

 

 

11

 

 

 

8

 

Liabilities settled and divested

 

 

(21

)

 

 

(39

)

Revision of estimated obligation

 

 

4

 

 

 

(62

)

Accretion expense on discounted obligation

 

 

10

 

 

 

11

 

Asset retirement obligations as of end of period

 

 

402

 

 

 

402

 

Less current portion

 

 

11

 

 

 

15

 

Asset retirement obligations, long-term

 

$

391

 

 

$

387

 

 

During the first six months of 2019, Devon reduced its asset retirement obligations by $62 million, primarily due to changes in the future cost estimates and retirement dates for its oil and gas assets. Additionally, during the first six months of 2019, Devon reduced its asset retirement obligations by $29 million as a result of the non-core asset divestitures. For additional information, see Note 2.
v3.20.2
Stockholders' Equity
 6 Months Ended
Jun. 30, 2020
Stockholders Equity Note [Abstract]  
Stockholders' Equity

16.

Stockholders’ Equity

Share Repurchase Programs

In March 2018, Devon announced a $1.0 billion share repurchase program. In June 2018, Devon announced the expansion of this program to $4.0 billion. In February 2019, Devon announced a further expansion to $5.0 billion with a December 31, 2019 expiration date. In December 2019, Devon announced a new $1.0 billion share repurchase program with a December 31, 2020 expiration date. Under the new program, $800 million of the $1.0 billion authorization is conditioned upon the closing of the Barnett Shale divestiture for cash proceeds of at least $725 million. As the pricing and economic environment has changed due to the COVID-19 pandemic and demand challenges for commodities, Devon has temporarily suspended its share repurchase program to preserve liquidity.

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

 

 

 

Total Number of

Shares Purchased

 

 

Dollar Value of

Shares Purchased

 

 

Average Price Paid

per Share

 

$5.0 Billion Plan

 

 

 

 

 

 

 

 

 

 

 

 

Full year 2018

 

 

78,149

 

 

$

2,978

 

 

$

38.11

 

First quarter 2019

 

 

36,141

 

 

 

1,024

 

 

 

28.33

 

Second quarter 2019

 

 

5,911

 

 

 

159

 

 

 

27.01

 

Third quarter 2019

 

 

22,137

 

 

 

550

 

 

 

24.80

 

Fourth quarter 2019

 

 

4,436

 

 

 

94

 

 

 

21.32

 

Total inception-to-date

 

 

146,774

 

 

$

4,805

 

 

$

32.74

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$1.0 Billion Plan

 

 

 

 

 

 

 

 

 

 

 

 

First quarter 2020

 

 

2,243

 

 

$

38

 

 

$

16.85

 

Total inception-to-date

 

 

2,243

 

 

$

38

 

 

$

16.85

 

 


Dividends

 

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

 

 

Amounts

 

 

Rate Per Share

 

Quarter Ended 2020:

 

 

 

 

 

 

 

First quarter

$

34

 

 

$

0.09

 

Second quarter

 

42

 

 

$

0.11

 

Total year-to-date

$

76

 

 

 

 

 

Quarter Ended 2019:

 

 

 

 

 

 

 

First quarter

$

34

 

 

$

0.08

 

Second quarter

 

37

 

 

$

0.09

 

Total year-to-date

$

71

 

 

 

 

 

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

On August 4, 2020, our Board of Directors approved a $0.26 per share (approximately $100 million total) special dividend to be payable as of October 1, 2020, to holders of record as of August 14, 2020.

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

17.

Discontinued Operations and Assets Held For Sale

 

Barnett Shale

 

In 2019, Devon announced that it had entered into an agreement to sell its Barnett Shale assets to BKV and subsequently amended the agreement in April 2020. Under the amended terms, Devon has agreed to sell its Barnett Shale assets for $570 million in cash, before purchase price adjustments, at closing, which is scheduled for October 1, 2020. Additionally, the agreement provides for contingent earnout payments to Devon of up to $260 million based upon future commodity prices, with upside participation beginning at a $2.75 Henry Hub natural gas price or a $50 WTI oil price. The contingent payment period commences on January 1, 2021 and has a term of four years. Under the terms of the agreement, Devon received deposit funds of $170 million in April 2020. The deposit is being held by Devon pursuant to the terms of the sale agreement, which only requires Devon to return such funds to BKV in the event the transaction does not close as a result of Devon’s breach of its closing obligations. The deposit is classified as current liabilities associated with discontinued operations on Devon’s consolidated balance sheets.

 

In connection with the announced sale of its Barnett Shale assets, approximately $88 million of the U.S. reporting unit goodwill was allocated to the Barnett Shale assets. Additionally, Devon ceased depreciation for all property, plant and equipment classified as assets held for sale on the date the sales agreement was approved by the Board of Directors. Devon also recognized a $748 million asset impairment in the fourth quarter of 2019 related to these assets, primarily due to the difference between the net carrying value and the purchase price, net of estimated customary purchase price adjustments. During the first quarter of 2020, Devon adjusted the estimated impairment $179 million, primarily due to the amended agreement terms. The valuation of the future contingent earnout payments included in the March 31, 2020 Barnett Shale impairment computation was $41 million. The value was derived utilizing a Monte Carlo valuation model and qualifies as a level 3 fair value measurement.

 

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

 

Canada

 

In the second quarter of 2019, Devon completed the sale of its Canadian business for $2.6 billion ($3.4 billion Canadian dollars), net of purchase price adjustments, and recognized a pre-tax gain of $223 million ($425 million net of tax, primarily due to a significant deferred tax benefit) in 2019. Current (cash) income and withholding taxes associated with the Canadian business were

approximately $175 million and were paid in the first half of 2020. The disposition of substantially all of Devon’s Canadian oil and gas assets resulted in Devon releasing its historical cumulative foreign currency translation adjustment of $1.2 billion from accumulated other comprehensive earnings to be included within the gain computation. The historical cumulative foreign currency translation portion of the gain is not taxable.

 

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

 

As of June 30, 2020, Devon has restricted approximately $175 million of cash to fund obligations retained related to the Canadian business and is classified as cash restricted for discontinued operations on the consolidated balance sheets. The remaining obligations consist of a firm transportation agreement and office leases. Cash payments for these charges total approximately $6 million per quarter.

 

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

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

Barnett Shale

 

 

Canada

 

 

Total

 

 

Barnett Shale

 

 

Canada

 

 

Total

 

2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Oil, gas and NGL sales

 

$

77

 

 

$

—

 

 

$

77

 

 

$

169

 

 

$

—

 

 

$

169

 

Total revenues

 

 

77

 

 

 

—

 

 

 

77

 

 

 

169

 

 

 

—

 

 

 

169

 

Production expenses

 

 

74

 

 

 

—

 

 

 

74

 

 

 

148

 

 

 

—

 

 

 

148

 

Asset impairments

 

 

—

 

 

 

—

 

 

 

—

 

 

 

179

 

 

 

—

 

 

 

179

 

Asset dispositions

 

 

—

 

 

 

(2

)

 

 

(2

)

 

 

—

 

 

 

(2

)

 

 

(2

)

General and administrative expenses

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1

 

 

 

1

 

Financing costs, net

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(2

)

 

 

(2

)

Other expenses

 

 

2

 

 

 

(6

)

 

 

(4

)

 

 

(11

)

 

 

4

 

 

 

(7

)

Total expenses

 

 

76

 

 

 

(8

)

 

 

68

 

 

 

316

 

 

 

1

 

 

 

317

 

Earnings (loss) from discontinued operations before income taxes

 

 

1

 

 

 

8

 

 

 

9

 

 

 

(147

)

 

 

(1

)

 

 

(148

)

Income tax benefit

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(32

)

 

 

—

 

 

 

(32

)

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

 

$

1

 

 

$

8

 

 

$

9

 

 

$

(115

)

 

$

(1

)

 

$

(116

)

2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Oil, gas and NGL sales

 

$

115

 

 

$

379

 

 

$

494

 

 

$

264

 

 

$

730

 

 

$

994

 

Oil, gas and NGL derivatives

 

 

—

 

 

 

9

 

 

 

9

 

 

 

—

 

 

 

(95

)

 

 

(95

)

Marketing and midstream revenues

 

 

—

 

 

 

12

 

 

 

12

 

 

 

—

 

 

 

38

 

 

 

38

 

Total revenues

 

 

115

 

 

 

400

 

 

 

515

 

 

 

264

 

 

 

673

 

 

 

937

 

Production expenses

 

 

76

 

 

 

153

 

 

 

229

 

 

 

157

 

 

 

294

 

 

 

451

 

Exploration expenses

 

 

—

 

 

 

4

 

 

 

4

 

 

 

—

 

 

 

13

 

 

 

13

 

Marketing and midstream expenses

 

 

—

 

 

 

9

 

 

 

9

 

 

 

—

 

 

 

18

 

 

 

18

 

Depreciation, depletion and amortization

 

 

20

 

 

 

49

 

 

 

69

 

 

 

40

 

 

 

128

 

 

 

168

 

Asset impairments

 

 

—

 

 

 

37

 

 

 

37

 

 

 

—

 

 

 

37

 

 

 

37

 

Asset dispositions

 

 

1

 

 

 

(189

)

 

 

(188

)

 

 

2

 

 

 

(189

)

 

 

(187

)

General and administrative expenses

 

 

—

 

 

 

13

 

 

 

13

 

 

 

—

 

 

 

31

 

 

 

31

 

Financing costs, net

 

 

—

 

 

 

13

 

 

 

13

 

 

 

—

 

 

 

26

 

 

 

26

 

Restructuring and transaction costs

 

 

—

 

 

 

236

 

 

 

236

 

 

 

—

 

 

 

239

 

 

 

239

 

Other expenses

 

 

—

 

 

 

31

 

 

 

31

 

 

 

6

 

 

 

3

 

 

 

9

 

Total expenses

 

 

97

 

 

 

356

 

 

 

453

 

 

 

205

 

 

 

600

 

 

 

805

 

Earnings from discontinued operations before income taxes

 

 

18

 

 

 

44

 

 

 

62

 

 

 

59

 

 

 

73

 

 

 

132

 

Income tax expense (benefit)

 

 

3

 

 

 

(285

)

 

 

(282

)

 

 

12

 

 

 

(285

)

 

 

(273

)

Net earnings from discontinued operations, net of tax

 

$

15

 

 

$

329

 

 

$

344

 

 

$

47

 

 

$

358

 

 

$

405

 

 

 


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

 

 

As of June 30, 2020

 

 

As of December 31, 2019

 

 

 

Barnett Shale

 

 

Canada

 

 

Total

 

 

Barnett Shale

 

 

Canada

 

 

Total

 

Cash restricted for discontinued operations

 

$

20

 

 

$

175

 

 

$

195

 

 

$

25

 

 

$

355

 

 

$

380

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accounts receivable

 

$

47

 

 

$

2

 

 

$

49

 

 

$

38

 

 

$

1

 

 

$

39

 

Other current assets

 

 

5

 

 

 

2

 

 

 

7

 

 

 

5

 

 

 

2

 

 

 

7

 

Oil and gas property and equipment, based on

   successful efforts accounting, net

 

 

593

 

 

 

—

 

 

 

593

 

 

 

751

 

 

 

—

 

 

 

751

 

Other property and equipment, net

 

 

11

 

 

 

—

 

 

 

11

 

 

 

11

 

 

 

—

 

 

 

11

 

Goodwill

 

 

88

 

 

 

—

 

 

 

88

 

 

 

88

 

 

 

—

 

 

 

88

 

Other long-term assets

 

 

—

 

 

 

82

 

 

 

82

 

 

 

—

 

 

 

81

 

 

 

81

 

Total assets associated with discontinued operations

 

$

744

 

 

$

86

 

 

$

830

 

 

$

893

 

 

$

84

 

 

$

977

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accounts payable

 

$

18

 

 

$

3

 

 

$

21

 

 

$

15

 

 

$

4

 

 

$

19

 

Revenues and royalties payable

 

 

33

 

 

 

3

 

 

 

36

 

 

 

44

 

 

 

3

 

 

 

47

 

Other current liabilities

 

 

188

 

 

 

53

 

 

 

241

 

 

 

19

 

 

 

233

 

 

 

252

 

Asset retirement obligations

 

 

143

 

 

 

—

 

 

 

143

 

 

 

141

 

 

 

—

 

 

 

141

 

Other long-term liabilities

 

 

15

 

 

 

147

 

 

 

162

 

 

 

16

 

 

 

169

 

 

 

185

 

Total liabilities associated with discontinued operations

 

$

397

 

 

$

206

 

 

$

603

 

 

$

235

 

 

$

409

 

 

$

644

 

 
v3.20.2
Commitments And Contingencies
 6 Months Ended
Jun. 30, 2020
Commitments And Contingencies Disclosure [Abstract]  
Commitments And Contingencies

18.

Commitments and Contingencies

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

Royalty Matters

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

Environmental and Other Matters

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

Beginning in 2013, various parishes in Louisiana filed suit against more than 100 oil and gas companies, including Devon, alleging that the companies’ operations and activities in certain fields violated the State and Local Coastal Resource Management Act of 1978, as amended, and caused substantial environmental contamination, subsidence and other environmental damages to land and water bodies located in the coastal zone of Louisiana. The plaintiffs’ claims against Devon relate primarily to the operations of several of Devon’s corporate predecessors. The plaintiffs seek, among other things, the payment of the costs necessary to clear, re-vegetate and otherwise restore the allegedly impacted areas. Although Devon cannot predict the ultimate outcome of these matters, Devon is vigorously defending against these claims.

Various municipalities and other governmental and private parties in California have filed legal proceedings against certain oil and gas companies, including Devon, seeking relief to abate alleged impacts of climate change. These proceedings include far-reaching claims for monetary damages and injunctive relief. Although Devon cannot predict the ultimate outcome of these matters, Devon believes these claims to be baseless and intends to vigorously defend against the proceedings.
v3.20.2
Fair Value Measurements
 6 Months Ended
Jun. 30, 2020
Fair Value Disclosures [Abstract]  
Fair Value Measurements

 

19.

Fair Value Measurements

The following table provides carrying value and fair value measurement information for certain of Devon’s financial assets and liabilities. The carrying values of cash, cash restricted for discontinued operations, accounts receivable, other current receivables, accounts payable, other current payables, accrued expenses and lease liabilities included in the accompanying consolidated balance sheets approximated fair value at June 30, 2020 and December 31, 2019, as applicable. Therefore, such financial assets and liabilities are not presented in the following table. Additionally, information regarding the fair values of oil and gas assets is provided in Note 5.

 

 

 

 

 

 

 

 

 

 

 

Fair Value Measurements Using:

 

 

 

Carrying

 

 

Total Fair

 

 

Level 1

 

 

Level 2

 

 

 

Amount

 

 

Value

 

 

Inputs

 

 

Inputs

 

June 30, 2020 assets (liabilities):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash equivalents

 

$

831

 

 

$

831

 

 

$

831

 

 

$

—

 

Commodity derivatives

 

$

101

 

 

$

101

 

 

$

—

 

 

$

101

 

Commodity derivatives

 

$

(58

)

 

$

(58

)

 

$

—

 

 

$

(58

)

Debt

 

$

(4,296

)

 

$

(4,382

)

 

$

—

 

 

$

(4,382

)

December 31, 2019 assets (liabilities):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash equivalents

 

$

702

 

 

$

702

 

 

$

702

 

 

$

—

 

Commodity derivatives

 

$

50

 

 

$

50

 

 

$

—

 

 

$

50

 

Commodity derivatives

 

$

(31

)

 

$

(31

)

 

$

—

 

 

$

(31

)

Debt

 

$

(4,294

)

 

$

(5,376

)

 

$

—

 

 

$

(5,376

)

 

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

Level 1 Fair Value Measurements

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

Level 2 Fair Value Measurements

 

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

 

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

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

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

 


Recently Adopted Accounting Standards

 

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

 
Commitments And Contingencies

Devon is party to various legal actions arising in the normal course of business. Matters that are probable of an unfavorable outcome to Devon and which can be reasonably estimated are accrued. Such accruals are based on information known about the matters, Devon’s estimates of the outcomes of such matters and its experience in contesting, litigating and settling similar matters. None of the actions are believed by management to likely involve future amounts that would be material to Devon’s financial position or results of operations after consideration of recorded accruals. Actual amounts could differ materially from management’s estimates.
v3.20.2
Summary Of Significant Accounting Policies (Tables)
 6 Months Ended
Jun. 30, 2020
Accounting Policies [Abstract]  
Schedule of Revenue from Contracts with Customers Disaggregated Based on Type of Good or Service

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

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Oil

 

$

296

 

 

$

750

 

 

$

958

 

 

$

1,409

 

Gas

 

 

72

 

 

 

73

 

 

 

142

 

 

 

211

 

NGL

 

 

56

 

 

 

113

 

 

 

131

 

 

 

235

 

Oil, gas and NGL sales

 

 

424

 

 

 

936

 

 

 

1,231

 

 

 

1,855

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Oil

 

 

140

 

 

 

394

 

 

 

469

 

 

 

750

 

Gas

 

 

79

 

 

 

172

 

 

 

171

 

 

 

390

 

NGL

 

 

110

 

 

 

164

 

 

 

247

 

 

 

355

 

Total marketing revenues

 

 

329

 

 

 

730

 

 

 

887

 

 

 

1,495

 

Midstream revenues

 

 

2

 

 

 

—

 

 

 

4

 

 

 

—

 

Marketing and midstream revenues

 

 

331

 

 

 

730

 

 

 

891

 

 

 

1,495

 

Total revenues from contracts with customers

 

$

755

 

 

$

1,666

 

 

$

2,122

 

 

$

3,350

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

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

 

 

June 30, 2020

 

 

December 31, 2019

 

Commodity derivative assets:

 

 

 

 

 

 

 

 

Other current assets

 

$

95

 

 

$

49

 

Other long-term assets

 

 

6

 

 

 

1

 

Total derivative assets

 

$

101

 

 

$

50

 

Commodity derivative liabilities:

 

 

 

 

 

 

 

 

Other current liabilities

 

$

49

 

 

$

30

 

Other long-term liabilities

 

 

9

 

 

 

1

 

Total derivative liabilities

 

$

58

 

 

$

31

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

 

 

 

Price Swaps

 

 

Price Collars

 

Period

 

Volume

(Bbls/d)

 

 

Weighted

Average

Price ($/Bbl)

 

 

Volume

(Bbls/d)

 

 

Weighted

Average Floor

Price ($/Bbl)

 

 

Weighted

Average

Ceiling Price

($/Bbl)

 

Q3-Q4 2020

 

 

87,750

 

 

$

36.65

 

 

 

43,500

 

 

$

50.96

 

 

$

60.96

 

Q1-Q4 2021

 

 

23,558

 

 

$

35.69

 

 

 

15,964

 

 

$

41.24

 

 

$

51.24

 

 

 

 

 

Oil Basis Swaps

 

Period

 

Index

 

Volume

(Bbls/d)

 

 

Weighted Average

Differential to WTI

($/Bbl)

 

Q3-Q4 2020

 

Argus MEH

 

 

52,500

 

 

$

0.42

 

Q3-Q4 2020

 

Midland Sweet

 

 

32,000

 

 

$

(1.23

)

Q3-Q4 2020

 

NYMEX Roll

 

 

54,000

 

 

$

0.38

 

Q1-Q4 2021

 

Midland Sweet

 

 

7,000

 

 

$

1.27

 

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

 

 

 

Price Swaps

 

 

Price Collars

 

Period

 

Volume (MMBtu/d)

 

 

Weighted Average Price ($/MMBtu)

 

 

Volume (MMBtu/d)

 

 

Weighted Average Floor Price ($/MMBtu)

 

 

Weighted Average

Ceiling Price ($/MMBtu)

 

Q3-Q4 2020

 

 

59,150

 

 

$

2.69

 

 

 

180,000

 

 

$

1.96

 

 

$

2.45

 

Q1-Q4 2021

 

 

18,699

 

 

$

2.69

 

 

 

106,055

 

 

$

2.31

 

 

$

2.81

 

 

 

Natural Gas Basis Swaps

 

Period

 

Index

 

Volume

(MMBtu/d)

 

 

Weighted Average

Differential to

Henry Hub

($/MMBtu)

 

Q3-Q4 2020

 

Panhandle Eastern Pipe Line

 

 

30,000

 

 

$

(0.47

)

Q3-Q4 2020

 

El Paso Natural Gas

 

 

65,000

 

 

$

(0.78

)

Q3-Q4 2020

 

Houston Ship Channel

 

 

30,000

 

 

$

(0.02

)

Q1-Q4 2021

 

El Paso Natural Gas

 

 

35,000

 

 

$

(0.92

)

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

 

 

 

 

 

Price Swaps

 

Period

 

Product

 

Volume (Bbls/d)

 

 

Weighted Average Price ($/Bbl)

 

Q3-Q4 2020

 

Ethane

 

 

7,500

 

 

$

5.62

 

Q3-Q4 2020

 

Natural Gasoline

 

 

1,000

 

 

$

44.84

 

Q3-Q4 2020

 

Normal Butane

 

 

1,500

 

 

$

23.56

 

Q3-Q4 2020

 

Propane

 

 

4,500

 

 

$

25.18

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

 

 

 

Six Months Ended June 30,

 

 

 

2020

 

 

2019

 

G&A

 

$

39

 

 

$

44

 

Exploration expenses

 

 

—

 

 

 

1

 

Restructuring and transaction costs

 

 

—

 

 

 

24

 

Total

 

$

39

 

 

$

69

 

Related income tax benefit

 

$

—

 

 

$

10

 

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

 

 

 

 

 

 

Performance-Based

 

 

Performance

 

 

 

Restricted Stock Awards

 

 

Restricted Stock Awards

 

 

Share Units

 

 

 

Awards

 

 

Weighted

Average

Grant-Date

Fair Value

 

 

Awards

 

 

Weighted

Average

Grant-Date

Fair Value

 

 

Units

 

 

 

 

 

Weighted

Average

Grant-Date

Fair Value

 

 

 

(Thousands, except fair value data)

 

Unvested at 12/31/19

 

 

4,984

 

 

$

29.65

 

 

 

153

 

 

$

33.88

 

 

 

2,155

 

 

 

 

 

$

40.35

 

Granted

 

 

3,051

 

 

$

21.93

 

 

 

—

 

 

$

—

 

 

 

688

 

 

 

 

 

$

27.89

 

Vested

 

 

(1,847

)

 

$

29.26

 

 

 

(109

)

 

$

29.51

 

 

 

(455

)

 

 

 

 

$

52.56

 

Forfeited

 

 

(162

)

 

$

25.01

 

 

 

—

 

 

$

—

 

 

 

(364

)

 

 

 

 

$

48.66

 

Unvested at 6/30/20

 

 

6,026

 

 

$

25.98

 

 

 

44

 

 

$

44.70

 

 

 

2,024

 

 

(1

)

 

$

31.87

 

 

(1)

A maximum of 4.0 million common shares could be awarded based upon Devon’s final TSR ranking.

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

 

 

 

2020

 

Grant-date fair value

 

$

27.89

 

Risk-free interest rate

 

1.36%

 

Volatility factor

 

38.4%

 

Contractual term (years)

 

2.89

 

 
Summary of Unrecognized Compensation Cost And Weighted Average Period For Recognition

 

 

 

 

 

 

 

Performance-Based

 

 

 

 

 

 

 

Restricted Stock

 

 

Restricted Stock

 

 

Performance

 

 

 

Awards

 

 

Awards

 

 

Share Units

 

Unrecognized compensation cost

 

$

107

 

 

$

—

 

 

$

19

 

Weighted average period for recognition (years)

 

 

2.7

 

 

 

0.9

 

 

 

1.8

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

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

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Proved oil and gas assets

 

$

—

 

 

$

—

 

 

$

2,664

 

 

$

—

 

Other assets

 

 

—

 

 

 

—

 

 

 

2

 

 

 

—

 

Total asset impairments

 

$

—

 

 

$

—

 

 

$

2,666

 

 

$

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unproved impairments

 

$

3

 

 

$

1

 

 

$

113

 

 

$

2

 
v3.20.2
Restructuring and Transaction Costs (Tables)
 6 Months Ended
Jun. 30, 2020
Restructuring And Related Activities [Abstract]  
Schedule Of The Activity And Balances Associated With Restructuring Liabilities

The following table summarizes Devon’s restructuring liabilities.

 

 

 

Other

 

 

Other

 

 

 

 

 

 

 

Current

 

 

Long-term

 

 

 

 

 

 

 

Liabilities

 

 

Liabilities

 

 

Total

 

 

 

(Millions)

 

Balance as of December 31, 2019

 

$

20

 

 

$

1

 

 

$

21

 

Changes related to prior years' restructurings

 

 

(13

)

 

 

—

 

 

 

(13

)

Balance as of June 30, 2020

 

$

7

 

 

$

1

 

 

$

8

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance as of December 31, 2018

 

$

39

 

 

$

3

 

 

$

42

 

Changes related to prior years' restructurings

 

 

—

 

 

 

(2

)

 

 

(2

)

Balance as of June 30, 2019

 

$

39

 

 

$

1

 

 

$

40

 
v3.20.2
Income Taxes (Tables)
 6 Months Ended
Jun. 30, 2020
Income Tax Disclosure [Abstract]  
Schedule Of Effective Income Tax Rate Reconciliation

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

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Earnings (loss) from continuing operations before income taxes

 

$

(680

)

 

$

219

 

 

$

(2,787

)

 

$

(278

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current income tax expense (benefit)

 

$

(3

)

 

$

3

 

 

$

(109

)

 

$

(1

)

Deferred income tax expense (benefit)

 

 

—

 

 

 

65

 

 

 

(311

)

 

 

(50

)

Total income tax expense (benefit)

 

$

(3

)

 

$

68

 

 

$

(420

)

 

$

(51

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. statutory income tax rate

 

 

21

%

 

 

21

%

 

 

21

%

 

 

21

%

State income taxes

 

 

0

%

 

 

9

%

 

 

1

%

 

 

3

%

Change in tax legislation

 

 

0

%

 

 

0

%

 

 

3

%

 

 

0

%

Other

 

 

(1

%)

 

 

1

%

 

 

(2

%)

 

 

(6

%)

Deferred tax asset valuation allowance

 

 

(20

%)

 

 

0

%

 

 

(8

%)

 

 

0

%

Effective income tax rate

 

 

0

%

 

 

31

%

 

 

15

%

 

 

18

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

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Net earnings (loss) from continuing operations:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net earnings (loss) from continuing operations

 

$

(679

)

 

$

151

 

 

$

(2,370

)

 

$

(227

)

Attributable to participating securities

 

 

—

 

 

 

(2

)

 

 

(1

)

 

 

(1

)

Basic and diluted earnings (loss) from continuing operations

 

$

(679

)

 

$

149

 

 

$

(2,371

)

 

$

(228

)

Common shares:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common shares outstanding - total

 

 

383

 

 

 

415

 

 

 

383

 

 

 

425

 

Attributable to participating securities

 

 

(6

)

 

 

(6

)

 

 

(6

)

 

 

(6

)

Common shares outstanding - basic

 

 

377

 

 

 

409

 

 

 

377

 

 

 

419

 

Dilutive effect of potential common shares issuable

 

 

—

 

 

 

2

 

 

 

—

 

 

 

—

 

Common shares outstanding - diluted

 

 

377

 

 

 

411

 

 

 

377

 

 

 

419

 

Net earnings (loss) per share from continuing operations:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

(1.80

)

 

$

0.37

 

 

$

(6.29

)

 

$

(0.54

)

Diluted

 

$

(1.80

)

 

$

0.37

 

 

$

(6.29

)

 

$

(0.54

)

Antidilutive options (1)

 

 

—

 

 

 

1

 

 

 

—

 

 

 

1

 

 

(1)

Amounts represent options to purchase shares of Devon’s common stock that are excluded from the diluted net earnings per share calculations because the options are antidilutive.
v3.20.2
Other Comprehensive Earnings (Loss) (Tables)
 6 Months Ended
Jun. 30, 2020
Other Comprehensive Income Loss Net Of Tax Period Increase Decrease [Abstract]  
Components Of Other Comprehensive Earnings (Loss)

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

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Foreign currency translation:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning accumulated foreign currency translation and other

 

$

—

 

 

$

1,194

 

 

$

—

 

 

$

1,159

 

Change in cumulative translation adjustment

 

 

—

 

 

 

43

 

 

 

—

 

 

 

78

 

Release of Canadian cumulative translation adjustment (1)

 

 

—

 

 

 

(1,237

)

 

 

—

 

 

 

(1,237

)

Ending accumulated foreign currency translation and other

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Pension and postretirement benefit plans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning accumulated pension and postretirement benefits

 

 

(118

)

 

 

(130

)

 

 

(119

)

 

 

(132

)

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

 

 

1

 

 

 

17

 

 

 

3

 

 

 

20

 

Income tax expense

 

 

—

 

 

 

(4

)

 

 

(1

)

 

 

(5

)

Ending accumulated pension and postretirement benefits

 

 

(117

)

 

 

(117

)

 

 

(117

)

 

 

(117

)

Accumulated other comprehensive loss, net of tax

 

$

(117

)

 

$

(117

)

 

$

(117

)

 

$

(117

)

 

 

(1)

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

 

(2)

These accumulated other comprehensive earnings (loss) components are included in the computation of net periodic benefit cost, which is a component of other expenses in the accompanying consolidated statements of comprehensive earnings.
v3.20.2
Supplemental Information To Statements Of Cash Flows (Tables)
 6 Months Ended
Jun. 30, 2020
Supplemental Cash Flow Elements [Abstract]  
Schedule Of Supplemental Information To Statements Of Cash Flows

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Changes in assets and liabilities, net:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accounts receivable

 

$

80

 

 

$

39

 

 

$

318

 

 

$

10

 

Income tax receivable

 

 

1

 

 

 

(1

)

 

 

(112

)

 

 

(1

)

Other current assets

 

 

30

 

 

 

(6

)

 

 

(8

)

 

 

3

 

Other long-term assets

 

 

—

 

 

 

(7

)

 

 

(24

)

 

 

(15

)

Accounts payable

 

 

(44

)

 

 

14

 

 

 

(2

)

 

 

(37

)

Revenues and royalties payable

 

 

(145

)

 

 

(62

)

 

 

(258

)

 

 

(16

)

Other current liabilities

 

 

(16

)

 

 

(66

)

 

 

(97

)

 

 

(89

)

Other long-term liabilities

 

 

(5

)

 

 

14

 

 

 

28

 

 

 

9

 

Total

 

$

(99

)

 

$

(75

)

 

$

(155

)

 

$

(136

)

Supplementary cash flow data - total operations:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest paid

 

$

66

 

 

$

108

 

 

$

130

 

 

$

161

 

Income taxes paid

 

$

21

 

 

$

10

 

 

$

172

 

 

$

16

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

Components of accounts receivable include the following:

 

 

 

June 30, 2020

 

 

December 31, 2019

 

Oil, gas and NGL sales

 

$

228

 

 

$

452

 

Joint interest billings

 

 

95

 

 

 

168

 

Marketing and midstream revenues

 

 

114

 

 

 

207

 

Other

 

 

88

 

 

 

13

 

Gross accounts receivable

 

 

525

 

 

 

840

 

Allowance for doubtful accounts

 

 

(10

)

 

 

(8

)

Net accounts receivable

 

$

515

 

 

$

832

 

 
v3.20.2
Property, Plant and Equipment (Tables)
 6 Months Ended
Jun. 30, 2020
Extractive Industries [Abstract]  
Table of Property and Equipment, net

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

 

 

 

June 30, 2020

 

 

December 31, 2019

 

Property and equipment:

 

 

 

 

 

 

 

 

Proved

 

$

28,200

 

 

$

27,668

 

Unproved and properties under development

 

 

483

 

 

 

583

 

Total oil and gas

 

 

28,683

 

 

 

28,251

 

Less accumulated DD&A

 

 

(24,010

)

 

 

(20,693

)

Oil and gas property and equipment, net

 

 

4,673

 

 

 

7,558

 

Other property and equipment

 

 

1,735

 

 

 

1,725

 

Less accumulated DD&A

 

 

(722

)

 

 

(690

)

Other property and equipment, net (1)

 

 

1,013

 

 

 

1,035

 

Property and equipment, net

 

$

5,686

 

 

$

8,593

 

 

 

(1)

$96 million and $80 million related to CDM in 2020 and 2019, respectively.
v3.20.2
Debt And Related Expenses (Tables)
 6 Months Ended
Jun. 30, 2020
Debt Disclosure [Abstract]  
Schedule Of Debt Instruments and Balances

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

 

 

 

June 30, 2020

 

 

December 31, 2019

 

5.85% due December 15, 2025

 

$

485

 

 

$

485

 

7.50% due September 15, 2027

 

 

73

 

 

 

73

 

7.875% due September 30, 2031

 

 

675

 

 

 

675

 

7.95% due April 15, 2032

 

 

366

 

 

 

366

 

5.60% due July 15, 2041

 

 

1,250

 

 

 

1,250

 

4.75% due May 15, 2042

 

 

750

 

 

 

750

 

5.00% due June 15, 2045

 

 

750

 

 

 

750

 

Net discount on debentures and notes

 

 

(20

)

 

 

(20

)

Debt issuance costs

 

 

(33

)

 

 

(35

)

Total long-term debt

 

$

4,296

 

 

$

4,294

 
Schedule Of Net Financing Cost Components

The following schedule includes the components of net financing costs.

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Interest based on debt outstanding

 

$

65

 

 

$

65

 

 

$

130

 

 

$

130

 

Interest income

 

 

(2

)

 

 

(7

)

 

 

(7

)

 

 

(18

)

Other

 

 

6

 

 

 

8

 

 

 

11

 

 

 

14

 

Total net financing costs

 

$

69

 

 

$

66

 

 

$

134

 

 

$

126

 
v3.20.2
Leases (Tables)
 6 Months Ended
Jun. 30, 2020
Leases [Abstract]  
Schedule of Right-of-use Assets and Lease Liabilities

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

 

 

 

June 30, 2020

 

 

December 31, 2019

 

 

 

Finance

 

 

Operating

 

 

Total

 

 

Finance

 

 

Operating

 

 

Total

 

Right-of-use assets

 

$

225

 

 

$

6

 

 

$

231

 

 

$

229

 

 

$

14

 

 

$

243

 

Lease liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current lease liabilities (1)

 

$

7

 

 

$

4

 

 

$

11

 

 

$

7

 

 

$

10

 

 

$

17

 

Long-term lease liabilities

 

 

242

 

 

 

3

 

 

 

245

 

 

 

240

 

 

 

4

 

 

 

244

 

Total lease liabilities

 

$

249

 

 

$

7

 

 

$

256

 

 

$

247

 

 

$

14

 

 

$

261

 

 

(1)Current lease liabilities are included in other current liabilities on the consolidated balance sheets.
v3.20.2
Asset Retirement Obligations (Tables)
 6 Months Ended
Jun. 30, 2020
Asset Retirement Obligation Disclosure [Abstract]  
Summary Of Changes In Asset Retirement Obligations

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

 

 

Six Months Ended June 30,

 

 

 

2020

 

 

2019

 

Asset retirement obligations as of beginning of period

 

$

398

 

 

$

484

 

Liabilities incurred

 

 

11

 

 

 

8

 

Liabilities settled and divested

 

 

(21

)

 

 

(39

)

Revision of estimated obligation

 

 

4

 

 

 

(62

)

Accretion expense on discounted obligation

 

 

10

 

 

 

11

 

Asset retirement obligations as of end of period

 

 

402

 

 

 

402

 

Less current portion

 

 

11

 

 

 

15

 

Asset retirement obligations, long-term

 

$

391

 

 

$

387

 

 
v3.20.2
Stockholders' Equity (Tables)
 6 Months Ended
Jun. 30, 2020
Stockholders Equity Note [Abstract]  
Summary of Purchases of Common Stock

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

 

 

 

Total Number of

Shares Purchased

 

 

Dollar Value of

Shares Purchased

 

 

Average Price Paid

per Share

 

$5.0 Billion Plan

 

 

 

 

 

 

 

 

 

 

 

 

Full year 2018

 

 

78,149

 

 

$

2,978

 

 

$

38.11

 

First quarter 2019

 

 

36,141

 

 

 

1,024

 

 

 

28.33

 

Second quarter 2019

 

 

5,911

 

 

 

159

 

 

 

27.01

 

Third quarter 2019

 

 

22,137

 

 

 

550

 

 

 

24.80

 

Fourth quarter 2019

 

 

4,436

 

 

 

94

 

 

 

21.32

 

Total inception-to-date

 

 

146,774

 

 

$

4,805

 

 

$

32.74

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$1.0 Billion Plan

 

 

 

 

 

 

 

 

 

 

 

 

First quarter 2020

 

 

2,243

 

 

$

38

 

 

$

16.85

 

Total inception-to-date

 

 

2,243

 

 

$

38

 

 

$

16.85

 

 
Summary Of Dividends Paid On Common Stock

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

 

 

Amounts

 

 

Rate Per Share

 

Quarter Ended 2020:

 

 

 

 

 

 

 

First quarter

$

34

 

 

$

0.09

 

Second quarter

 

42

 

 

$

0.11

 

Total year-to-date

$

76

 

 

 

 

 

Quarter Ended 2019:

 

 

 

 

 

 

 

First quarter

$

34

 

 

$

0.08

 

Second quarter

 

37

 

 

$

0.09

 

Total year-to-date

$

71

 

 

 

 

 
v3.20.2
Discontinued Operations and Assets Held for Sale (Tables)
 6 Months Ended
Jun. 30, 2020
Discontinued Operations And Disposal Groups [Abstract]  
Summary of Amounts Reported as Discontinued Operations in the Consolidated Statements of Comprehensive Earnings and Carrying Amounts of Assets and Liabilities Classified as Held for Sale on the Consolidated Balance Sheets

 

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

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

Barnett Shale

 

 

Canada

 

 

Total

 

 

Barnett Shale

 

 

Canada

 

 

Total

 

2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Oil, gas and NGL sales

 

$

77

 

 

$

—

 

 

$

77

 

 

$

169

 

 

$

—

 

 

$

169

 

Total revenues

 

 

77

 

 

 

—

 

 

 

77

 

 

 

169

 

 

 

—

 

 

 

169

 

Production expenses

 

 

74

 

 

 

—

 

 

 

74

 

 

 

148

 

 

 

—

 

 

 

148

 

Asset impairments

 

 

—

 

 

 

—

 

 

 

—

 

 

 

179

 

 

 

—

 

 

 

179

 

Asset dispositions

 

 

—

 

 

 

(2

)

 

 

(2

)

 

 

—

 

 

 

(2

)

 

 

(2

)

General and administrative expenses

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1

 

 

 

1

 

Financing costs, net

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(2

)

 

 

(2

)

Other expenses

 

 

2

 

 

 

(6

)

 

 

(4

)

 

 

(11

)

 

 

4

 

 

 

(7

)

Total expenses

 

 

76

 

 

 

(8

)

 

 

68

 

 

 

316

 

 

 

1

 

 

 

317

 

Earnings (loss) from discontinued operations before income taxes

 

 

1

 

 

 

8

 

 

 

9

 

 

 

(147

)

 

 

(1

)

 

 

(148

)

Income tax benefit

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(32

)

 

 

—

 

 

 

(32

)

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

 

$

1

 

 

$

8

 

 

$

9

 

 

$

(115

)

 

$

(1

)

 

$

(116

)

2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Oil, gas and NGL sales

 

$

115

 

 

$

379

 

 

$

494

 

 

$

264

 

 

$

730

 

 

$

994

 

Oil, gas and NGL derivatives

 

 

—

 

 

 

9

 

 

 

9

 

 

 

—

 

 

 

(95

)

 

 

(95

)

Marketing and midstream revenues

 

 

—

 

 

 

12

 

 

 

12

 

 

 

—

 

 

 

38

 

 

 

38

 

Total revenues

 

 

115

 

 

 

400

 

 

 

515

 

 

 

264

 

 

 

673

 

 

 

937

 

Production expenses

 

 

76

 

 

 

153

 

 

 

229

 

 

 

157

 

 

 

294

 

 

 

451

 

Exploration expenses

 

 

—

 

 

 

4

 

 

 

4

 

 

 

—

 

 

 

13

 

 

 

13

 

Marketing and midstream expenses

 

 

—

 

 

 

9

 

 

 

9

 

 

 

—

 

 

 

18

 

 

 

18

 

Depreciation, depletion and amortization

 

 

20

 

 

 

49

 

 

 

69

 

 

 

40

 

 

 

128

 

 

 

168

 

Asset impairments

 

 

—

 

 

 

37

 

 

 

37

 

 

 

—

 

 

 

37

 

 

 

37

 

Asset dispositions

 

 

1

 

 

 

(189

)

 

 

(188

)

 

 

2

 

 

 

(189

)

 

 

(187

)

General and administrative expenses

 

 

—

 

 

 

13

 

 

 

13

 

 

 

—

 

 

 

31

 

 

 

31

 

Financing costs, net

 

 

—

 

 

 

13

 

 

 

13

 

 

 

—

 

 

 

26

 

 

 

26

 

Restructuring and transaction costs

 

 

—

 

 

 

236

 

 

 

236

 

 

 

—

 

 

 

239

 

 

 

239

 

Other expenses

 

 

—

 

 

 

31

 

 

 

31

 

 

 

6

 

 

 

3

 

 

 

9

 

Total expenses

 

 

97

 

 

 

356

 

 

 

453

 

 

 

205

 

 

 

600

 

 

 

805

 

Earnings from discontinued operations before income taxes

 

 

18

 

 

 

44

 

 

 

62

 

 

 

59

 

 

 

73

 

 

 

132

 

Income tax expense (benefit)

 

 

3

 

 

 

(285

)

 

 

(282

)

 

 

12

 

 

 

(285

)

 

 

(273

)

Net earnings from discontinued operations, net of tax

 

$

15

 

 

$

329

 

 

$

344

 

 

$

47

 

 

$

358

 

 

$

405

 

 

 


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

 

 

As of June 30, 2020

 

 

As of December 31, 2019

 

 

 

Barnett Shale

 

 

Canada

 

 

Total

 

 

Barnett Shale

 

 

Canada

 

 

Total

 

Cash restricted for discontinued operations

 

$

20

 

 

$

175

 

 

$

195

 

 

$

25

 

 

$

355

 

 

$

380

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accounts receivable

 

$

47

 

 

$

2

 

 

$

49

 

 

$

38

 

 

$

1

 

 

$

39

 

Other current assets

 

 

5

 

 

 

2

 

 

 

7

 

 

 

5

 

 

 

2

 

 

 

7

 

Oil and gas property and equipment, based on

   successful efforts accounting, net

 

 

593

 

 

 

—

 

 

 

593

 

 

 

751

 

 

 

—

 

 

 

751

 

Other property and equipment, net

 

 

11

 

 

 

—

 

 

 

11

 

 

 

11

 

 

 

—

 

 

 

11

 

Goodwill

 

 

88

 

 

 

—

 

 

 

88

 

 

 

88

 

 

 

—

 

 

 

88

 

Other long-term assets

 

 

—

 

 

 

82

 

 

 

82

 

 

 

—

 

 

 

81

 

 

 

81

 

Total assets associated with discontinued operations

 

$

744

 

 

$

86

 

 

$

830

 

 

$

893

 

 

$

84

 

 

$

977

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accounts payable

 

$

18

 

 

$

3

 

 

$

21

 

 

$

15

 

 

$

4

 

 

$

19

 

Revenues and royalties payable

 

 

33

 

 

 

3

 

 

 

36

 

 

 

44

 

 

 

3

 

 

 

47

 

Other current liabilities

 

 

188

 

 

 

53

 

 

 

241

 

 

 

19

 

 

 

233

 

 

 

252

 

Asset retirement obligations

 

 

143

 

 

 

—

 

 

 

143

 

 

 

141

 

 

 

—

 

 

 

141

 

Other long-term liabilities

 

 

15

 

 

 

147

 

 

 

162

 

 

 

16

 

 

 

169

 

 

 

185

 

Total liabilities associated with discontinued operations

 

$

397

 

 

$

206

 

 

$

603

 

 

$

235

 

 

$

409

 

 

$

644

 

 
v3.20.2
Fair Value Measurements (Tables)
 6 Months Ended
Jun. 30, 2020
Fair Value Disclosures [Abstract]  
Schedule Of Carrying Value And Fair Value Measurement Information For Financial Assets And Liabilities

 

 

 

 

 

 

 

 

 

 

 

Fair Value Measurements Using:

 

 

 

Carrying

 

 

Total Fair

 

 

Level 1

 

 

Level 2

 

 

 

Amount

 

 

Value

 

 

Inputs

 

 

Inputs

 

June 30, 2020 assets (liabilities):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash equivalents

 

$

831

 

 

$

831

 

 

$

831

 

 

$

—

 

Commodity derivatives

 

$

101

 

 

$

101

 

 

$

—

 

 

$

101

 

Commodity derivatives

 

$

(58

)

 

$

(58

)

 

$

—

 

 

$

(58

)

Debt

 

$

(4,296

)

 

$

(4,382

)

 

$

—

 

 

$

(4,382

)

December 31, 2019 assets (liabilities):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash equivalents

 

$

702

 

 

$

702

 

 

$

702

 

 

$

—

 

Commodity derivatives

 

$

50

 

 

$

50

 

 

$

—

 

 

$

50

 

Commodity derivatives

 

$

(31

)

 

$

(31

)

 

$

—

 

 

$

(31

)

Debt

 

$

(4,294

)

 

$

(5,376

)

 

$

—

 

 

$

(5,376

)
v3.20.2
Summary of Significant Accounting Policies (Schedule of Revenue from Contracts with Customers Disaggregated Based on Type of Good or Service) (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2020
Jun. 30, 2019
Jun. 30, 2020
Jun. 30, 2019
Disaggregation Of Revenue [Line Items]        
Total revenues from contracts with customers $ 755 $ 1,666 $ 2,122 $ 3,350
Oil, Gas and NGL Sales [Member]        
Disaggregation Of Revenue [Line Items]        
Total revenues from contracts with customers 424 936 1,231 1,855
Oil, Gas and NGL Sales [Member] | Oil [Member]        
Disaggregation Of Revenue [Line Items]        
Total revenues from contracts with customers 296 750 958 1,409
Oil, Gas and NGL Sales [Member] | Gas [Member]        
Disaggregation Of Revenue [Line Items]        
Total revenues from contracts with customers 72 73 142 211
Oil, Gas and NGL Sales [Member] | NGL [Member]        
Disaggregation Of Revenue [Line Items]        
Total revenues from contracts with customers 56 113 131 235
Marketing Revenues [Member]        
Disaggregation Of Revenue [Line Items]        
Total revenues from contracts with customers 329 730 887 1,495
Marketing Revenues [Member] | Oil [Member]        
Disaggregation Of Revenue [Line Items]        
Total revenues from contracts with customers 140 394 469 750
Marketing Revenues [Member] | Gas [Member]        
Disaggregation Of Revenue [Line Items]        
Total revenues from contracts with customers 79 172 171 390
Marketing Revenues [Member] | NGL [Member]        
Disaggregation Of Revenue [Line Items]        
Total revenues from contracts with customers 110 164 247 355
Midstream Revenues [Member]        
Disaggregation Of Revenue [Line Items]        
Total revenues from contracts with customers 2   4  
Marketing and Midstream Revenues [Member]        
Disaggregation Of Revenue [Line Items]        
Total revenues from contracts with customers $ 331 $ 730 $ 891 $ 1,495
v3.20.2
Divestitures (Narrative) (Details)
$ in Millions, $ in Billions
 3 Months Ended 6 Months Ended 12 Months Ended
Oct. 01, 2020
USD ($)
Jun. 30, 2020
USD ($)
Mar. 31, 2020
USD ($)
Dec. 31, 2019
USD ($)
Jun. 30, 2019
USD ($)
Jun. 30, 2019
CAD ($)
Mar. 31, 2019
USD ($)
MMBoe
Jun. 30, 2020
USD ($)
Jun. 30, 2019
USD ($)
Dec. 31, 2019
USD ($)
Dec. 31, 2019
CAD ($)
Apr. 30, 2020
USD ($)
Business Acquisition [Line Items]                        
Gain recognized on sale of business, pre tax   $ 2     $ 188     $ 2 $ 187      
Asset impairment charges         37     $ 179 37      
Gain on asset dispositions         2       $ 47      
Non Core Assets [Member]                        
Business Acquisition [Line Items]                        
Divestitures of property and equipment             $ 300          
Gain on asset dispositions             $ 45          
Total estimated proved reserves | MMBoe             25          
Barnett Shale [Member]                        
Business Acquisition [Line Items]                        
Asset impairment charges     $ 179 $ 748                
Canadian Natural Resources Limited [Member] | Canadian Business Segment [Member]                        
Business Acquisition [Line Items]                        
Proceeds from sale of business         $ 2,600 $ 3.4       $ 2,600 $ 3.4  
Gain recognized on sale of business, pre tax                   223    
Gain recognized on sale of business, net of tax                   $ 425    
BKV [Member] | Barnett Shale [Member]                        
Business Acquisition [Line Items]                        
Cash deposit received                       $ 170
BKV [Member] | Barnett Shale [Member] | Scenario Forecast [Member]                        
Business Acquisition [Line Items]                        
Divestitures of property and equipment $ 570                      
v3.20.2
Derivative Financial Instruments (Narrative) (Details)
Jun. 30, 2020
USD ($)
Derivative Instruments And Hedging Activities Disclosure [Abstract]  
Derivative collateral held $ 0
v3.20.2
Derivative Financial Instruments (Schedule Of Open Oil Derivative Positions) (Details)
 6 Months Ended
Jun. 30, 2020
$ / bbl
bbl
NYMEX West Texas Intermediate Price Swaps Oil Q3-Q4 2020 [Member]  
Derivative [Line Items]  
Volume Per Day (Bbls/d) | bbl 87,750
Weighted Average Price Swap 36.65
NYMEX West Texas Intermediate Price Swaps Oil Q1-Q4 2021 [Member]  
Derivative [Line Items]  
Volume Per Day (Bbls/d) | bbl 23,558
Weighted Average Price Swap 35.69
NYMEX West Texas Intermediate Price Collars Oil Q3-Q4 2020 [Member]  
Derivative [Line Items]  
Volume Per Day (Bbls/d) | bbl 43,500
Weighted Average Floor Price 50.96
Weighted Average Ceiling Price 60.96
NYMEX West Texas Intermediate Price Collars Oil Q1-Q4 2021 [Member]  
Derivative [Line Items]  
Volume Per Day (Bbls/d) | bbl 15,964
Weighted Average Floor Price 41.24
Weighted Average Ceiling Price 51.24
Argus MEH Basis Swaps Oil Q3-Q4 2020 [Member]  
Derivative [Line Items]  
Volume Per Day (Bbls/d) | bbl 52,500
Weighted Average Differential To WTI 0.42
Midland Sweet Basis Swaps Oil Q3-Q4 2020 [Member]  
Derivative [Line Items]  
Volume Per Day (Bbls/d) | bbl 32,000
Weighted Average Differential To WTI (1.23)
NYMEX Roll Basis Swaps Oil Q3-Q4 2020 [Member]  
Derivative [Line Items]  
Volume Per Day (Bbls/d) | bbl 54,000
Weighted Average Differential To WTI 0.38
Midland Sweet Basis Swaps Oil Q1-Q4 2021 [Member]  
Derivative [Line Items]  
Volume Per Day (Bbls/d) | bbl 7,000
Weighted Average Differential To WTI 1.27
v3.20.2
Derivative Financial Instruments (Schedule Of Open Natural Gas Derivative Positions) (Details)
 6 Months Ended
Jun. 30, 2020
MMBTU
$ / MMBTU
FERC Henry Hub Price Swaps Natural Gas Q1-Q4 2021 [Member]  
Derivative [Line Items]  
Volume Per Day (MMBtu/d) | MMBTU 18,699
Weighted Average Price Swap 2.69
FERC Henry Hub Price Swaps Natural Gas Q3-Q4 2020 [Member]  
Derivative [Line Items]  
Volume Per Day (MMBtu/d) | MMBTU 59,150
Weighted Average Price Swap 2.69
FERC Henry Hub Price Collars Natural Gas Q3-Q4 2020 [Member]  
Derivative [Line Items]  
Volume Per Day (MMBtu/d) | MMBTU 180,000
Weighted Average Floor Price 1.96
Weighted Average Ceiling Price 2.45
FERC Henry Hub Price Collars Natural Gas Q1-Q4 2021 [Member]  
Derivative [Line Items]  
Volume Per Day (MMBtu/d) | MMBTU 106,055
Weighted Average Floor Price 2.31
Weighted Average Ceiling Price 2.81
PEPL Basis Swaps Natural Gas Q3-Q4 2020 [Member]  
Derivative [Line Items]  
Volume Per Day (MMBtu/d) | MMBTU 30,000
Weighted Average Differential To Henry Hub (0.47)
El Paso Natural Gas Basis Swaps Q3-Q4 2020 [Member]  
Derivative [Line Items]  
Volume Per Day (MMBtu/d) | MMBTU 65,000
Weighted Average Differential To Henry Hub (0.78)
Houston Ship Channel Natural Gas Basis Swaps Q3-Q4 2020 [Member]  
Derivative [Line Items]  
Volume Per Day (MMBtu/d) | MMBTU 30,000
Weighted Average Differential To Henry Hub (0.02)
El Paso Natural Gas Basis Swaps Q1-Q4 2021 [Member]  
Derivative [Line Items]  
Volume Per Day (MMBtu/d) | MMBTU 35,000
Weighted Average Differential To Henry Hub (0.92)
v3.20.2
Derivative Financial Instruments (Schedule Of Open NGL Derivative Positions) (Details)
 6 Months Ended
Jun. 30, 2020
$ / bbl
bbl
OPIS Mont Belvieu Texas Ethane Price Swaps NGL Q3-Q4 2020 [Member]  
Derivative [Line Items]  
Volume Per Day (Bbls/d) | bbl 7,500
Weighted Average Price Swap | $ / bbl 5.62
OPIS Mont Belvieu Texas Natural Gasoline Price Swaps NGL Q3-Q4 2020 [Member]  
Derivative [Line Items]  
Volume Per Day (Bbls/d) | bbl 1,000
Weighted Average Price Swap | $ / bbl 44.84
OPIS Mont Belvieu Texas Normal Butane Price Swaps NGL Q3-Q4 2020 [Member]  
Derivative [Line Items]  
Volume Per Day (Bbls/d) | bbl 1,500
Weighted Average Price Swap | $ / bbl 23.56
OPIS Mont Belvieu Texas Propane Price Swaps NGL Q3-Q4 2020 [Member]  
Derivative [Line Items]  
Volume Per Day (Bbls/d) | bbl 4,500
Weighted Average Price Swap | $ / bbl 25.18
v3.20.2
Derivative Financial Instruments (Schedule Of Derivative Financial Instruments Included In The Consolidated Balance Sheets) (Details) - USD ($)
$ in Millions
Jun. 30, 2020
Dec. 31, 2019
Derivatives Fair Value [Line Items]    
Fair value of derivative assets $ 101 $ 50
Fair value of derivative liabilities 58 31
Commodity Derivatives [Member] | Other Current Assets [Member]    
Derivatives Fair Value [Line Items]    
Fair value of derivative assets 95 49
Commodity Derivatives [Member] | Other Long-Term Assets [Member]    
Derivatives Fair Value [Line Items]    
Fair value of derivative assets 6 1
Commodity Derivatives [Member] | Other Current Liabilities [Member]    
Derivatives Fair Value [Line Items]    
Fair value of derivative liabilities 49 30
Commodity Derivatives [Member] | Other Long-Term Liabilities [Member]    
Derivatives Fair Value [Line Items]    
Fair value of derivative liabilities $ 9 $ 1
v3.20.2
Share-Based Compensation (Schedule Of Share-Based Compensation Expense Included In The Consolidated Statements Of Comprehensive Earnings) (Details) - USD ($)
$ in Millions
 6 Months Ended
Jun. 30, 2020
Jun. 30, 2019
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]    
Share-based compensation expense $ 39 $ 69
Related income tax benefit   10
G&A [Member]    
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]    
Share-based compensation expense $ 39 44
Exploration Expenses [Member]    
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]    
Share-based compensation expense   1
Restructuring and Transaction Costs [Member]    
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]    
Accelerated share-based compensation expense   $ 24
v3.20.2
Share-Based Compensation (Summary Of Unvested Restricted Stock Awards, Performance-Based Restricted Stock Awards And Performance Share Units) (Details)
shares in Thousands
 6 Months Ended
Jun. 30, 2020
$ / shares
shares
Restricted Stock Awards [Member]  
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]  
Unvested at December 31, 2019 | shares 4,984
Granted, awards and units | shares 3,051
Vested, awards and units | shares (1,847)
Forfeited, awards and units | shares (162)
Unvested at June 30, 2020 | shares 6,026
Unvested weighted average grant-date fair value at December 31, 2019 | $ / shares $ 29.65
Granted, weighted average grant-date fair value | $ / shares 21.93
Vested, weighted average grant-date fair value | $ / shares 29.26
Forfeited, weighted average grant-date fair value | $ / shares 25.01
Unvested weighted average grant-date fair value at June 30, 2020 | $ / shares $ 25.98
Performance-Based Restricted Stock Awards [Member]  
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]  
Unvested at December 31, 2019 | shares 153
Vested, awards and units | shares (109)
Unvested at June 30, 2020 | shares 44
Unvested weighted average grant-date fair value at December 31, 2019 | $ / shares $ 33.88
Vested, weighted average grant-date fair value | $ / shares 29.51
Unvested weighted average grant-date fair value at June 30, 2020 | $ / shares $ 44.70
Performance Share Units [Member]  
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]  
Unvested at December 31, 2019 | shares 2,155
Granted, awards and units | shares 688
Vested, awards and units | shares (455)
Forfeited, awards and units | shares (364)
Unvested at June 30, 2020 | shares 2,024 [1]
Unvested weighted average grant-date fair value at December 31, 2019 | $ / shares $ 40.35
Granted, weighted average grant-date fair value | $ / shares 27.89
Vested, weighted average grant-date fair value | $ / shares 52.56
Forfeited, weighted average grant-date fair value | $ / shares 48.66
Unvested weighted average grant-date fair value at June 30, 2020 | $ / shares $ 31.87
[1] A maximum of 4.0 million common shares could be awarded based upon Devon’s final TSR ranking.
v3.20.2
Share-Based Compensation (Summary Of Unvested Restricted Stock Awards, Performance-Based Restricted Stock Awards And Performance Share Units) (Parenthetical) (Details)
shares in Millions
 6 Months Ended
Jun. 30, 2020
shares
Performance Share Units [Member] | Maximum [Member]  
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]  
Maximum common shares that could be awarded based upon total shareholder return 4.0
v3.20.2
Share-Based Compensation (Summary Of Performance Share Units Grant-Date Fair Values And Their Related Assumptions) (Details) - Performance Share Units [Member]
 6 Months Ended
Jun. 30, 2020
$ / shares
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]  
Grant-date fair value $ 27.89
Risk-free interest rate 1.36%
Volatility factor 38.40%
Contractual term (years) 2 years 10 months 20 days
v3.20.2
Share-Based Compensation (Summary of Unrecognized Compensation Cost And Weighted Average Period For Recognition) (Details)
$ in Millions
 6 Months Ended
Jun. 30, 2020
USD ($)
Restricted Stock Awards [Member]  
Unrecognized Compensation And Weighted Average Recognition [Line Items]  
Unrecognized compensation cost $ 107
Weighted average period for recognition (years) 2 years 8 months 12 days
Performance-Based Restricted Stock Awards [Member]  
Unrecognized Compensation And Weighted Average Recognition [Line Items]  
Weighted average period for recognition (years) 10 months 24 days
Performance Share Units [Member]  
Unrecognized Compensation And Weighted Average Recognition [Line Items]  
Unrecognized compensation cost $ 19
Weighted average period for recognition (years) 1 year 9 months 18 days
v3.20.2
Asset Impairments (Summary of Asset Impairments) (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2020
Jun. 30, 2019
Jun. 30, 2020
Jun. 30, 2019
Impaired Long Lived Assets Held And Used [Line Items]        
Asset impairment charges     $ 2,666  
Unproved impairments $ 12 $ 7 124 $ 11
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 $ 3 $ 1 $ 113 $ 2
v3.20.2
Asset Impairments (Narrative) (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2020
Mar. 31, 2020
Jun. 30, 2019
Jun. 30, 2020
Jun. 30, 2019
Impaired Long Lived Assets Held And Used [Line Items]          
Capital investment percentage       45.00%  
Asset impairments       $ 2,666  
Exploration expenses $ 12   $ 7 124 $ 11
Proved Asset Impairments [Member]          
Impaired Long Lived Assets Held And Used [Line Items]          
Asset impairments   $ 2,700   2,700  
Product Line Fill Impairments [Member]          
Impaired Long Lived Assets Held And Used [Line Items]          
Asset impairments   $ 2      
Unproved Impairments [Member]          
Impaired Long Lived Assets Held And Used [Line Items]          
Exploration expenses $ 3   $ 1 $ 113 $ 2
v3.20.2
Restructuring and Transaction Costs (Narrative) (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2019
Jun. 30, 2019
Restructuring Cost And Reserve [Line Items]    
Restructuring and transaction costs $ 12 $ 63
Reduction of workforce [Member]    
Restructuring Cost And Reserve [Line Items]    
Restructuring and transaction costs   63
Expense associated with accelerated awards   24
Reduction of workforce [Member] | Defined Benefit Settlements [Member]    
Restructuring Cost And Reserve [Line Items]    
Restructuring and transaction costs   $ 5
v3.20.2
Restructuring and Transaction Costs (Schedule Of The Activity And Balances Associated With Restructuring Liabilities) (Details) - USD ($)
$ in Millions
 6 Months Ended
Jun. 30, 2020
Jun. 30, 2019
Restructuring Cost And Reserve [Line Items]    
Beginning balance $ 21 $ 42
Ending balance 8 40
Prior years' restructurings [Member]    
Restructuring Cost And Reserve [Line Items]    
Restructuring reserve activity (13) (2)
Other Current Liabilities [Member]    
Restructuring Cost And Reserve [Line Items]    
Beginning balance 20 39
Ending balance 7 39
Other Current Liabilities [Member] | Prior years' restructurings [Member]    
Restructuring Cost And Reserve [Line Items]    
Restructuring reserve activity (13)  
Other Long-Term Liabilities [Member]    
Restructuring Cost And Reserve [Line Items]    
Beginning balance 1 3
Ending balance $ 1 1
Other Long-Term Liabilities [Member] | Prior years' restructurings [Member]    
Restructuring Cost And Reserve [Line Items]    
Restructuring reserve activity   $ (2)
v3.20.2
Income Taxes (Schedule Of Effective Income Tax Rate Reconciliation) (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2020
Jun. 30, 2019
Jun. 30, 2020
Jun. 30, 2019
Income Tax Disclosure [Abstract]        
Earnings (loss) from continuing operations before income taxes $ (680) $ 219 $ (2,787) $ (278)
Current income tax expense (benefit) (3) 3 (109) (1)
Deferred income tax expense (benefit)   65 (311) (50)
Total income tax expense (benefit) $ (3) $ 68 $ (420) $ (51)
U.S. statutory income tax rate 21.00% 21.00% 21.00% 21.00%
State income taxes 0.00% 9.00% 1.00% 3.00%
Change in tax legislation 0.00% 0.00% 3.00% 0.00%
Other (1.00%) 1.00% (2.00%) (6.00%)
Deferred tax asset valuation allowance (20.00%) 0.00% (8.00%) 0.00%
Effective income tax rate 0.00% 31.00% 15.00% 18.00%
v3.20.2
Income Taxes (Narrative) (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2020
Mar. 31, 2020
Jun. 30, 2019
Dec. 31, 2020
Jun. 30, 2020
Jun. 30, 2019
Income Tax [Line Items]            
Income tax expense (benefit) $ (3)   $ 68   $ (420) $ (51)
Valuation allowance against deferred tax assets, percent         100.00%  
Increase in unrecognized tax benefits   $ 34        
CARES Act [Member]            
Income Tax [Line Items]            
Income tax expense (benefit)         $ (96)  
Scenario Forecast [Member] | CARES Act [Member]            
Income Tax [Line Items]            
Income tax expense (benefit)       $ (2)    
v3.20.2
Net Earnings (Loss) Per Share from Continuing Operations (Net Earnings (Loss) Per Share Computations from Continuing Operations) (Details) - USD ($)
$ / shares in Units, shares in Millions, $ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2020
Jun. 30, 2019
Jun. 30, 2020
Jun. 30, 2019
Net earnings (loss) from continuing operations:        
Net earnings (loss) from continuing operations $ (679) $ 151 $ (2,370) $ (227)
Attributable to participating securities   (2) (1) (1)
Basic and diluted earnings (loss) from continuing operations $ (679) $ 149 $ (2,371) $ (228)
Common shares:        
Common shares outstanding - total 383 415 383 425
Attributable to participating securities (6) (6) (6) (6)
Common shares outstanding - basic 377 409 377 419
Dilutive effect of potential common shares issuable   2    
Common shares outstanding - diluted 377 411 377 419
Net earnings (loss) per share from continuing operations:        
Basic $ (1.80) $ 0.37 $ (6.29) $ (0.54)
Diluted $ (1.80) $ 0.37 $ (6.29) $ (0.54)
Antidilutive options [1]   1   1
[1] Amounts represent options to purchase shares of Devon’s common stock that are excluded from the diluted net earnings per share calculations because the options are antidilutive.
v3.20.2
Other Comprehensive Earnings (Loss) (Components Of Other Comprehensive Earnings (Loss)) (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended 12 Months Ended
Jun. 30, 2020
Jun. 30, 2019
Jun. 30, 2020
Jun. 30, 2019
Dec. 31, 2019
Foreign currency translation:          
Beginning accumulated foreign currency translation and other   $ 1,194   $ 1,159 $ 1,159
Change in cumulative translation adjustment   43   78  
Release of Canadian cumulative translation adjustment [1]   (1,237)   (1,237)  
Pension and postretirement benefit plans:          
Beginning accumulated pension and postretirement benefits $ (118) (130) $ (119) (132) (132)
Recognition of net actuarial loss and prior service cost in earnings [2] 1 17 3 20  
Income tax expense   (4) (1) (5)  
Ending accumulated pension and postretirement benefits (117) (117) (117) (117) (119)
Accumulated other comprehensive loss, net of tax $ (117) $ (117) $ (117) $ (117) $ (119)
[1] In conjunction with the sale of substantially all of its oil and gas assets and operations in Canada, Devon released the cumulative translation adjustment as part of its gain on the disposition of its Canadian business. See Note 17 for additional details.
[2] These accumulated other comprehensive earnings (loss) components are included in the computation of net periodic benefit cost, which is a component of other expenses in the accompanying consolidated statements of comprehensive earnings.
v3.20.2
Supplemental Information To Statements Of Cash Flows (Schedule Of Supplemental Information To Statements Of Cash Flows) (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2020
Jun. 30, 2019
Jun. 30, 2020
Jun. 30, 2019
Changes in assets and liabilities, net:        
Accounts receivable $ 80 $ 39 $ 318 $ 10
Income tax receivable 1 (1) (112) (1)
Other current assets 30 (6) (8) 3
Other long-term assets   (7) (24) (15)
Accounts payable (44) 14 (2) (37)
Revenues and royalties payable (145) (62) (258) (16)
Other current liabilities (16) (66) (97) (89)
Other long-term liabilities (5) 14 28 9
Total (99) (75) (155) (136)
Supplementary cash flow data - total operations:        
Interest paid 66 108 130 161
Income taxes paid $ 21 $ 10 $ 172 $ 16
v3.20.2
Supplemental Information To Statements Of Cash Flows (Narrative) (Details) - USD ($)
$ in Millions
Jun. 30, 2020
Dec. 31, 2019
Supplemental Cash Flow Elements [Abstract]    
Accrued capital expenditures $ 130 $ 250
v3.20.2
Accounts Receivable (Schedule Of Components Of Accounts Receivable) (Details) - USD ($)
$ in Millions
Jun. 30, 2020
Dec. 31, 2019
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Joint interest billings $ 95 $ 168
Other 88 13
Gross accounts receivable 525 840
Allowance for doubtful accounts (10) (8)
Net accounts receivable 515 832
Oil, Gas and NGL Sales [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Gross accounts receivable 228 452
Marketing and Midstream Revenues [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Gross accounts receivable $ 114 $ 207
v3.20.2
Property, Plant and Equipment (Table of Property and Equipment, net) (Details) - USD ($)
$ in Millions
Jun. 30, 2020
Dec. 31, 2019
Property and equipment:    
Proved $ 28,200 $ 27,668
Unproved and properties under development 483 583
Total oil and gas 28,683 28,251
Less accumulated DD&A (24,010) (20,693)
Oil and gas property and equipment, net 4,673 7,558
Other property and equipment 1,735 1,725
Less accumulated DD&A (722) (690)
Other property and equipment, net [1] 1,013 1,035
Total property and equipment, net $ 5,686 $ 8,593
[1] $96 million and $80 million related to CDM in 2020 and 2019, respectively.
v3.20.2
Property, Plant and Equipment (Table of Property and Equipment, net) (Parenthetical) (Details) - USD ($)
$ in Millions
Jun. 30, 2020
Dec. 31, 2019
Property Plant And Equipment [Line Items]    
Other property and equipment, net [1] $ 1,013 $ 1,035
CDM [Member]    
Property Plant And Equipment [Line Items]    
Other property and equipment, net $ 96 $ 80
[1] $96 million and $80 million related to CDM in 2020 and 2019, respectively.
v3.20.2
Property, Plant and Equipment (Narrative) (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2020
Mar. 31, 2020
Jun. 30, 2019
Jun. 30, 2020
Jun. 30, 2019
Property Plant And Equipment [Line Items]          
Asset impairments       $ 2,666  
Exploration expenses $ 12   $ 7 124 $ 11
Proved Asset Impairments [Member]          
Property Plant And Equipment [Line Items]          
Asset impairments   $ 2,700   2,700  
Unproved Impairments [Member]          
Property Plant And Equipment [Line Items]          
Exploration expenses $ 3   $ 1 $ 113 $ 2
v3.20.2
Debt And Related Expenses (Schedule Of Debt Instruments and Balances) (Details) - USD ($)
$ in Millions
 6 Months Ended
Jun. 30, 2020
Dec. 31, 2019
Debt Instrument [Line Items]    
Net discount on debentures and notes $ (20) $ (20)
Debt issuance costs (33) (35)
Total long-term debt 4,296 4,294
5.85% due December 15, 2025 [Member]    
Debt Instrument [Line Items]    
Long-term debt, gross $ 485 $ 485
Debt, maturity date Dec. 15, 2025  
Debt interest rate, stated percentage 5.85% 5.85%
7.50% due September 15, 2027 [Member]    
Debt Instrument [Line Items]    
Long-term debt, gross $ 73 $ 73
Debt, maturity date Sep. 15, 2027  
Debt interest rate, stated percentage 7.50% 7.50%
7.875% due September 30, 2031 [Member]    
Debt Instrument [Line Items]    
Long-term debt, gross $ 675 $ 675
Debt, maturity date Sep. 30, 2031  
Debt interest rate, stated percentage 7.875% 7.875%
7.95% due April 15, 2032 [Member]    
Debt Instrument [Line Items]    
Long-term debt, gross $ 366 $ 366
Debt, maturity date Apr. 15, 2032  
Debt interest rate, stated percentage 7.95% 7.95%
5.60% due July 15, 2041 [Member]    
Debt Instrument [Line Items]    
Long-term debt, gross $ 1,250 $ 1,250
Debt, maturity date Jul. 15, 2041  
Debt interest rate, stated percentage 5.60% 5.60%
4.75% due May 15, 2042 [Member]    
Debt Instrument [Line Items]    
Long-term debt, gross $ 750 $ 750
Debt, maturity date May 15, 2042  
Debt interest rate, stated percentage 4.75% 4.75%
5.00% due June 15, 2045 [Member]    
Debt Instrument [Line Items]    
Long-term debt, gross $ 750 $ 750
Debt, maturity date Jun. 15, 2045  
Debt interest rate, stated percentage 5.00% 5.00%
v3.20.2
Debt And Related Expenses (Narrative) (Details)
 1 Months Ended 6 Months Ended
Jan. 31, 2019
USD ($)
Jun. 30, 2019
USD ($)
Jun. 30, 2020
USD ($)
Debt Instrument [Line Items]      
Redemption of senior notes   $ 162,000,000  
6.30% Due January 15, 2019 [Member] | Senior Notes [Member]      
Debt Instrument [Line Items]      
Redemption of senior notes $ 162,000,000    
Debt interest rate, stated percentage 6.30%    
Senior Credit Facility [Member]      
Debt Instrument [Line Items]      
Credit Facility, borrowing capacity     $ 3,000,000,000.0
Outstanding credit facility borrowings     $ 0
Debt-to-capitalization ratio     0.193
Outstanding letters of credit     $ 2,000,000
Senior Credit Facility [Member] | Maximum [Member]      
Debt Instrument [Line Items]      
Debt-to-capitalization ratio     0.65
v3.20.2
Debt And Related Expenses (Schedule of Net Financing Cost Components) (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2020
Jun. 30, 2019
Jun. 30, 2020
Jun. 30, 2019
Debt Disclosure [Abstract]        
Interest based on debt outstanding $ 65 $ 65 $ 130 $ 130
Interest income (2) (7) (7) (18)
Other 6 8 11 14
Total net financing costs $ 69 $ 66 $ 134 $ 126
v3.20.2
Leases (Schedule of Right-of-use Assets and Lease Liabilities) (Details) - USD ($)
$ in Millions
Jun. 30, 2020
Dec. 31, 2019
Leases [Abstract]    
Right-of-use assets, finance lease $ 225 $ 229
Finance lease liabilities:    
Current lease liabilities, finance lease [1] 7 7
Long-term lease liabilities, finance lease 242 240
Total lease liabilities, finance lease 249 247
Right-of-use assets, operating lease 6 14
Operating lease liabilities:    
Current lease liabilities, operating lease [1] 4 10
Long-term lease liabilities, operating lease 3 4
Total lease liabilities, operating lease 7 14
Right-of-use assets 231 243
Lease liabilities:    
Current lease liabilities [1] 11 17
Long-term lease liabilities 245 244
Total lease liabilities $ 256 $ 261
[1] Current lease liabilities are included in other current liabilities on the consolidated balance sheets.
v3.20.2
Asset Retirement Obligations (Summary Of Changes In Asset Retirement Obligations) (Details) - USD ($)
$ in Millions
 6 Months Ended
Jun. 30, 2020
Jun. 30, 2019
Dec. 31, 2019
Asset Retirement Obligation Disclosure [Abstract]      
Asset retirement obligations as of beginning of period $ 398 $ 484  
Liabilities incurred 11 8  
Liabilities settled and divested (21) (39)  
Revision of estimated obligation 4 (62)  
Accretion expense on discounted obligation 10 11  
Asset retirement obligations as of end of period 402 402  
Less current portion 11 15  
Asset retirement obligations, long-term $ 391 $ 387 $ 380
v3.20.2
Asset Retirement Obligations (Narrative) (Details) - USD ($)
$ in Millions
 6 Months Ended
Jun. 30, 2020
Jun. 30, 2019
Asset Retirement Obligations [Line Items]    
Revision of estimated obligation $ 4 $ (62)
Decrease in asset retirement obligations $ 21 39
Asset Divestitures [Member]    
Asset Retirement Obligations [Line Items]    
Decrease in asset retirement obligations   $ 29
v3.20.2
Stockholders' Equity (Narrative) (Details) - USD ($)
 3 Months Ended 6 Months Ended
Aug. 04, 2020
Jun. 30, 2020
Mar. 31, 2020
Jun. 30, 2019
Mar. 31, 2019
Jun. 30, 2020
Dec. 31, 2019
Feb. 28, 2019
Jun. 30, 2018
Mar. 31, 2018
Stockholders Equity [Abstract]                    
Common stock dividends, rate per share   $ 0.11 $ 0.09 $ 0.09 $ 0.08          
Percentage of increase to quarterly dividend   22.00%       22.00%        
Subsequent Event [Member]                    
Stockholders Equity [Abstract]                    
Dividend payable amount, per share $ 0.26                  
Dividend payable amount $ 100,000,000                  
Dividend payable date Oct. 01, 2020                  
Dividend payable date of record Aug. 14, 2020                  
Share Repurchase Programs [Member]                    
Stockholders Equity [Abstract]                    
Share-repurchase program, authorized amount               $ 5,000,000,000.0 $ 4,000,000,000.0 $ 1,000,000,000.0
5.0 Billion Dollar Share Repurchase Program [Member]                    
Stockholders Equity [Abstract]                    
Share-repurchase program expiration date           Dec. 31, 2019        
1.0 Billion Dollar Share Repurchase Program [Member]                    
Stockholders Equity [Abstract]                    
Share-repurchase program, authorized amount             $ 1,000,000,000.0      
Share-repurchase program expiration date           Dec. 31, 2020        
Stock-repurchase program, conditioned amount             $ 800,000,000      
Minimum [Member]                    
Stockholders Equity [Abstract]                    
Share-repurchase program, cash proceeds required for conditioned amount   $ 725,000,000       $ 725,000,000        
v3.20.2
Stockholders' Equity (Summary of Purchases of Common Stock) (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Millions
 3 Months Ended 6 Months Ended 12 Months Ended 24 Months Ended
Mar. 31, 2020
Dec. 31, 2019
Sep. 30, 2019
Jun. 30, 2019
Mar. 31, 2019
Jun. 30, 2020
Dec. 31, 2018
Dec. 31, 2019
5.0 Billion Dollar Share Repurchase Program [Member]                
Stockholders Equity [Line Items]                
Total Number of Shares Purchased   4,436 22,137 5,911 36,141   78,149 146,774
Dollar Value of Shares Purchased   $ 94 $ 550 $ 159 $ 1,024   $ 2,978 $ 4,805
Average Price Paid per Share   $ 21.32 $ 24.80 $ 27.01 $ 28.33   $ 38.11 $ 32.74
1.0 Billion Dollar Share Repurchase Program [Member]                
Stockholders Equity [Line Items]                
Total Number of Shares Purchased 2,243         2,243    
Dollar Value of Shares Purchased $ 38         $ 38    
Average Price Paid per Share $ 16.85         $ 16.85    
v3.20.2
Stockholders' Equity (Summary Of Dividends Paid On Common Stock) (Details) - USD ($)
$ / shares in Units, $ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2020
Mar. 31, 2020
Jun. 30, 2019
Mar. 31, 2019
Jun. 30, 2020
Jun. 30, 2019
Stockholders Equity Note [Abstract]            
Common stock dividends paid, Amount $ 42 $ 34 $ 37 $ 34 $ 76 $ 71
Common stock dividends, rate per share $ 0.11 $ 0.09 $ 0.09 $ 0.08    
v3.20.2
Discontinued Operations and Assets Held for Sale (Narrative) (Details)
$ in Millions, $ in Billions
 1 Months Ended 3 Months Ended 6 Months Ended 12 Months Ended
Oct. 01, 2020
USD ($)
$ / bbl
$ / MMBTU
Mar. 31, 2020
USD ($)
Jun. 30, 2020
USD ($)
Mar. 31, 2020
USD ($)
Dec. 31, 2019
USD ($)
Sep. 30, 2019
USD ($)
Jun. 30, 2019
USD ($)
Jun. 30, 2019
CAD ($)
Jun. 30, 2020
USD ($)
Jun. 30, 2019
USD ($)
Dec. 31, 2019
USD ($)
Dec. 31, 2019
CAD ($)
Apr. 30, 2020
USD ($)
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items]                          
Asset impairments             $ 37   $ 179 $ 37      
Goodwill     $ 88   $ 88       88   $ 88    
Cash restricted for discontinued operations     195   380   370   195 370 380    
Gain recognized on sale of business, pre-tax     2       188   2 187      
Foreign currency translation adjustment [1]             1,237     $ 1,237      
Canadian Divestiture [Member]                          
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items]                          
Estimated cash abandonment charges per quarter                 6        
Barnett Shale [Member]                          
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items]                          
Asset impairments       $ 179 $ 748                
Goodwill     88           88        
Contingent payments valuation   $ 41                      
Cash restricted for discontinued operations     20           20        
Estimated cash abandonment charges per quarter                 $ 2        
Canadian Business Segment [Member]                          
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items]                          
Charge on early retirement of debt, cash retirement costs           $ 52              
Loss on early retirement of debt, noncash charges           6              
Canadian Business Segment [Member] | 4.00% due July 15, 2021 [Member] | Senior Notes [Member]                          
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items]                          
Long-term debt retired           $ 500              
Debt interest rate, stated percentage           4.00%              
Debt, maturity date           Jul. 15, 2021              
Canadian Business Segment [Member] | 3.25% due May 15, 2022 [Member] | Senior Notes [Member]                          
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items]                          
Long-term debt retired           $ 1,000              
Debt interest rate, stated percentage           3.25%              
Debt, maturity date           May 15, 2022              
BKV [Member] | Barnett Shale [Member]                          
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items]                          
Cash deposit received                         $ 170
Contingent earnout payment period                 The contingent payment period commences on January 1, 2021 and has a term of four years.        
Canadian Natural Resources Limited [Member] | Canadian Business Segment [Member]                          
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items]                          
Cash restricted for discontinued operations     $ 175           $ 175        
Proceeds from the sale of business             $ 2,600 $ 3.4     2,600 $ 3.4  
Gain recognized on sale of business, pre-tax                     223    
Gain recognized on sale of business, after-tax                     425    
Income taxes paid                 $ 175        
Foreign currency translation adjustment                     $ 1,200    
Scenario Forecast [Member] | BKV [Member] | Barnett Shale [Member]                          
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items]                          
Proceeds from the sale of business $ 570                        
Henry Hub gas price for contingent earnout payment upside | $ / MMBTU 2.75                        
WTI oil price for contingent earnout payment upside | $ / bbl 50                        
Scenario Forecast [Member] | Maximum [Member] | BKV [Member] | Barnett Shale [Member]                          
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items]                          
Contingent earnout payments $ 260                        
[1] In conjunction with the sale of substantially all of its oil and gas assets and operations in Canada, Devon released the cumulative translation adjustment as part of its gain on the disposition of its Canadian business. See Note 17 for additional details.
v3.20.2
Discontinued Operations and Assets Held for Sale (Amounts Reported as Discontinued Operations in the Consolidated Statements of Comprehensive Earnings) (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2020
Jun. 30, 2019
Jun. 30, 2020
Jun. 30, 2019
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items]        
Oil, gas and NGL sales $ 77 $ 494 $ 169 $ 994
Oil, gas and NGL derivatives   9   (95)
Marketing and midstream revenues   12   38
Total revenues 77 515 169 937
Production expenses 74 229 148 451
Exploration expenses   4   13
Marketing and midstream expenses   9   18
Depreciation, depletion and amortization   69   168
Asset impairments   37 179 37
Asset dispositions (2) (188) (2) (187)
General and administrative expenses   13 1 31
Financing costs, net   13 (2) 26
Restructuring and transaction costs   236   239
Other expenses (4) 31 (7) 9
Total expenses 68 453 317 805
Earnings (loss) from discontinued operations before income taxes 9 62 (148) 132
Income tax expense (benefit)   (282) (32) (273)
Net earnings (loss) from discontinued operations, net of tax 9 344 (116) 405
Barnett Shale [Member]        
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items]        
Oil, gas and NGL sales 77 115 169 264
Total revenues 77 115 169 264
Production expenses 74 76 148 157
Depreciation, depletion and amortization   20   40
Asset impairments     179  
Asset dispositions   1   2
Other expenses 2   (11) 6
Total expenses 76 97 316 205
Earnings (loss) from discontinued operations before income taxes 1 18 (147) 59
Income tax expense (benefit)   3 (32) 12
Net earnings (loss) from discontinued operations, net of tax 1 15 (115) 47
Canada [Member]        
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items]        
Oil, gas and NGL sales   379   730
Oil, gas and NGL derivatives   9   (95)
Marketing and midstream revenues   12   38
Total revenues   400   673
Production expenses   153   294
Exploration expenses   4   13
Marketing and midstream expenses   9   18
Depreciation, depletion and amortization   49   128
Asset impairments   37   37
Asset dispositions (2) (189) (2) (189)
General and administrative expenses   13 1 31
Financing costs, net   13 (2) 26
Restructuring and transaction costs   236   239
Other expenses (6) 31 4 3
Total expenses (8) 356 1 600
Earnings (loss) from discontinued operations before income taxes 8 44 (1) 73
Income tax expense (benefit)   (285)   (285)
Net earnings (loss) from discontinued operations, net of tax $ 8 $ 329 $ (1) $ 358
v3.20.2
Discontinued Operations and Assets Held for Sale (Carrying Amounts of Assets and Liabilities Classified as Associated with Discontinued Operations on Consolidated Balance Sheets) (Details) - USD ($)
$ in Millions
Jun. 30, 2020
Dec. 31, 2019
Jun. 30, 2019
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items]      
Cash restricted for discontinued operations $ 195 $ 380 $ 370
Accounts receivable 49 39  
Other current assets 7 7  
Oil and gas property and equipment, based on successful efforts accounting, net 593 751  
Other property and equipment, net 11 11  
Goodwill 88 88  
Other long-term assets 82 81  
Total assets associated with discontinued operations 830 977  
Accounts payable 21 19  
Revenues and royalties payable 36 47  
Other current liabilities 241 252  
Asset retirement obligations 143 141  
Other long-term liabilities 162 185  
Total liabilities associated with discontinued operations 603 644  
Barnett Shale [Member]      
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items]      
Cash restricted for discontinued operations 20 25  
Accounts receivable 47 38  
Other current assets 5 5  
Oil and gas property and equipment, based on successful efforts accounting, net 593 751  
Other property and equipment, net 11 11  
Goodwill 88 88  
Total assets associated with discontinued operations 744 893  
Accounts payable 18 15  
Revenues and royalties payable 33 44  
Other current liabilities 188 19  
Asset retirement obligations 143 141  
Other long-term liabilities 15 16  
Total liabilities associated with discontinued operations 397 235  
Canada [Member]      
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items]      
Cash restricted for discontinued operations 175 355  
Accounts receivable 2 1  
Other current assets 2 2  
Other long-term assets 82 81  
Total assets associated with discontinued operations 86 84  
Accounts payable 3 4  
Revenues and royalties payable 3 3  
Other current liabilities 53 233  
Other long-term liabilities 147 169  
Total liabilities associated with discontinued operations $ 206 $ 409  
v3.20.2
Commitments And Contingencies (Narrative) (Details)
 6 Months Ended
Jun. 30, 2020
Defendant
Parishes in Louisiana [Member] | Minimum [Member]  
Loss Contingencies [Line Items]  
Number of defendants 100
v3.20.2
Fair Value Measurements (Schedule Of Carrying Value And Fair Value Measurement Information For Financial Assets And Liabilities) (Details) - USD ($)
$ in Millions
Jun. 30, 2020
Dec. 31, 2019
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivatives, assets $ 101 $ 50
Derivatives, liabilities (58) (31)
Carrying Amount [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash equivalents 831 702
Debt (4,296) (4,294)
Carrying Amount [Member] | Commodity Derivatives [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivatives, assets 101 50
Derivatives, liabilities (58) (31)
Total Fair Value [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash equivalents 831 702
Debt (4,382) (5,376)
Total Fair Value [Member] | Commodity Derivatives [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivatives, assets 101 50
Derivatives, liabilities (58) (31)
Level 1 Inputs [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash equivalents 831 702
Level 2 Inputs [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Debt (4,382) (5,376)
Level 2 Inputs [Member] | Commodity Derivatives [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivatives, assets 101 50
Derivatives, liabilities $ (58) $ (31)