DEVON ENERGY CORP/DE, 10-Q filed on 8/2/2023
Quarterly Report
v3.23.2
Document And Entity Information - shares
shares in Millions
 6 Months Ended
Jun. 30, 2023
Jul. 19, 2023
Cover [Abstract]    
Document Type 10-Q  
Document Period End Date Jun. 30, 2023  
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 2023  
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   640.7
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 $0.10 per share  
Security Exchange Name NYSE  
Entity Incorporation, State or Country Code DE  
Document Quarterly Report true  
Document Transition Report false  
v3.23.2
Consolidated Statements of Comprehensive Earnings - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2023
Jun. 30, 2022
Revenues from contracts with customers $ 3,530 $ 5,796 $ 7,289 $ 10,291
Oil, gas and NGL derivatives (76) (170) (12) (853)
Total revenues 3,454 5,626 7,277 9,438
Production expenses 719 729 1,412 1,347
Exploration expenses 10 10 13 12
Depreciation, depletion and amortization 638 528 1,253 1,017
Asset dispositions (41) (14) (41) (15)
General and administrative expenses 92 84 198 178
Financing costs, net 78 84 150 169
Other, net 10 10 15 (51)
Total expenses 2,557 3,131 5,156 5,681
Earnings before income taxes 897 2,495 2,121 3,757
Income tax expense 199 557 420 824
Net earnings 698 1,938 1,701 2,933
Net earnings attributable to noncontrolling interests 8 6 16 12
Net earnings attributable to Devon $ 690 $ 1,932 $ 1,685 $ 2,921
Net earnings per share:        
Basic net earnings per share $ 1.08 $ 2.94 $ 2.61 $ 4.42
Diluted net earnings per share $ 1.07 $ 2.93 $ 2.6 $ 4.4
Comprehensive earnings:        
Net earnings $ 698 $ 1,938 $ 1,701 $ 2,933
Other comprehensive earnings, net of tax:        
Pension and postretirement plans 1 1 2 2
Other comprehensive earnings, net of tax 1 1 2 2
Comprehensive earnings: 699 1,939 1,703 2,935
Comprehensive earnings attributable to noncontrolling interests 8 6 16 12
Comprehensive earnings attributable to Devon 691 1,933 1,687 2,923
Oil, Gas and NGL Sales [Member]        
Revenues from contracts with customers 2,493 4,100 5,172 7,275
Marketing and Midstream Revenues [Member]        
Revenues from contracts with customers 1,037 1,696 2,117 3,016
Marketing and Midstream Expenses [Member]        
Expenses $ 1,051 $ 1,700 $ 2,156 $ 3,024
v3.23.2
Consolidated Balance Sheets - USD ($)
$ in Millions
Jun. 30, 2023
Dec. 31, 2022
ASSETS    
Cash, cash equivalents and restricted cash $ 488 $ 1,454
Accounts receivable 1,519 1,767
Inventory 201 201
Other current assets 397 469
Total current assets 2,605 3,891
Oil and gas property and equipment, based on successful efforts accounting, net 17,317 16,567
Other property and equipment, net ($112 million and $109 million related to CDM in 2023 and 2022, respectively) [1] 1,446 1,539
Total property and equipment, net 18,763 18,106
Goodwill 753 753
Right-of-use assets 266 224
Investments 675 440
Other long-term assets 293 307
Total assets 23,355 23,721
LIABILITIES AND EQUITY    
Accounts payable 843 859
Revenues and royalties payable 1,199 1,506
Short-Term Debt 244 251
Other current liabilities 383 489
Total current liabilities 2,669 3,105
Long-term debt 6,169 6,189
Lease liabilities 299 257
Asset retirement obligations 548 511
Other long-term liabilities 858 900
Deferred income taxes 1,662 1,463
Stockholders' equity:    
Common stock, $0.10 par value. Authorized 1.0 billion shares; issued 645 million and 653 million shares in 2023 and 2022, respectively 64 65
Additional paid-in capital 6,131 6,921
Retained earnings 4,940 4,297
Accumulated other comprehensive loss (114) (116)
Total stockholders’ equity attributable to Devon 11,021 11,167
Noncontrolling interests 129 129
Total equity 11,150 11,296
Total liabilities and equity $ 23,355 $ 23,721
[1] $117 million and $109 million related to CDM in 2023 and 2022, respectively.
v3.23.2
Consolidated Balance Sheets (Parenthetical) - USD ($)
shares in Millions, $ in Millions
Jun. 30, 2023
Dec. 31, 2022
Other property and equipment, net [1] $ 1,446 $ 1,539
Common stock, par value (in dollars per share) $ 0.1 $ 0.1
Common stock, shares authorized (in shares) 1,000 1,000
Common stock, shares issued (in shares) 641 653
CDM [Member]    
Other property and equipment, net $ 117 $ 109
[1] $117 million and $109 million related to CDM in 2023 and 2022, respectively.
v3.23.2
Consolidated Statements Of Cash Flows - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2023
Jun. 30, 2022
Cash flows from operating activities:        
Net earnings $ 698 $ 1,938 $ 1,701 $ 2,933
Adjustments to reconcile net earnings to net cash from operating activities:        
Depreciation, depletion and amortization 638 528 1,253 1,017
Leasehold impairments 0 7 0 8
Amortization of liabilities (8) (9) (15) (15)
Total losses on commodity derivatives 76 170 12 853
Cash settlements on commodity derivatives 37 (472) 50 (816)
Gains on asset dispositions (41) (14) (41) (15)
Deferred income tax expense 119 305 199 469
Share-based compensation 25 23 48 43
Other (2) 4 0 (17)
Changes in assets and liabilities, net (140) 198 (128) 55
Net cash from operating activities 1,405 2,678 3,082 4,515
Cash flows from investing activities:        
Capital expenditures (1,079) (573) (2,091) (1,110)
Acquisitions of property and equipment (18) (100) (31) (101)
Divestitures of property and equipment 1 9 22 35
Distributions from investments 9 15 17 23
Contributions to investments and other (15) (21) (52) (43)
Net cash from investing activities (1,102) (670) (2,135) (1,196)
Cash flows from financing activities:        
Repurchases of common stock (228) (324) (745) (535)
Dividends paid on common stock (462) (830) (1,058) (1,497)
Contributions from noncontrolling interests 0 0 8 0
Distributions to noncontrolling interests (13) (5) (24) (13)
Shares exchanged for tax withholdings and other (9) (12) (96) (85)
Net cash from financing activities (704) (1,171) (1,915) (2,130)
Effect of exchange rate changes on cash 2 (5) 2 (3)
Net change in cash, cash equivalents and restricted cash (399) 832 (966) 1,186
Cash, cash equivalents and restricted cash at beginning of period 887 2,625 1,454 2,271
Cash, cash equivalents and restricted cash at end of period 488 3,457 488 3,457
Reconciliation of cash, cash equivalents and restricted cash:        
Cash and cash equivalents 372 3,300 372 3,300
Restricted cash 116 157 116 157
Total cash, cash equivalents and restricted cash $ 488 $ 3,457 $ 488 $ 3,457
v3.23.2
Consolidated Statements Of Equity - USD ($)
$ in Millions
Total
Common Stock [Member]
Additional Paid-In Capital [Member]
Retained Earnings [Member]
Other Comprehensive Earnings (Loss) [Member]
Treasury Stock [Member]
Noncontrolling Interests [Member]
Balance at Dec. 31, 2021 $ 9,399 $ 66 $ 7,636 $ 1,692 $ (132)   $ 137
Balance, shares at Dec. 31, 2021   663          
Net earnings 2,933     2,921     12
Other comprehensive earnings (loss), net of tax 2       2    
Restricted stock grants, net of cancellations, value 2 $ 1 1        
Restricted stock grants, net of cancellations, shares   0          
Common stock repurchased (634)         $ 634  
Common stock retired   $ 1 (620)     (621)  
Common stock retired, shares   (10)          
Common stock dividends (1,506)     (1,506)      
Share-based compensation 43   43        
Share-based compensation, shares   1          
Distributions to noncontrolling interests (13)           (13)
Balance at Jun. 30, 2022 10,226 $ 66 7,060 3,107 (130) (13) 136
Balance, shares at Jun. 30, 2022   656          
Balance at Mar. 31, 2022 9,435 $ 66 7,371 2,013 (131) 19 135
Balance, shares at Mar. 31, 2022   661          
Net earnings 1,938     1,932     6
Other comprehensive earnings (loss), net of tax 1       1    
Restricted stock grants, net of cancellations, value 1 $ 1 0        
Restricted stock grants, net of cancellations, shares   0          
Common stock repurchased (329)         329  
Common stock retired   $ 1 (334)     (335)  
Common stock retired, shares   (5)          
Common stock dividends (838)     (838)      
Share-based compensation 23   23        
Distributions to noncontrolling interests (5)           (5)
Balance at Jun. 30, 2022 10,226 $ 66 7,060 3,107 (130) (13) 136
Balance, shares at Jun. 30, 2022   656          
Balance at Dec. 31, 2022 11,296 $ 65 6,921 4,297 (116)   129
Balance, shares at Dec. 31, 2022   653          
Net earnings 1,701     1,685     16
Other comprehensive earnings (loss), net of tax 2       2    
Restricted stock grants, net of cancellations, shares   2          
Common stock repurchased (839) $ 0 (6)     833  
Common stock retired   $ 1 (832)     (833)  
Common stock retired, shares   15          
Common stock dividends (1,042)     1,042      
Share-based compensation 48   48        
Share-based compensation, shares   1          
Contributions from noncontrolling interests 8           8
Distributions to noncontrolling interests (24)           (24)
Balance at Jun. 30, 2023 11,150 $ 64 6,131 4,940 (114) 0 129
Balance, shares at Jun. 30, 2023   641          
Balance at Mar. 31, 2023 11,103 $ 64 6,344 4,712 (115) 28 126
Balance, shares at Mar. 31, 2023   645          
Net earnings 698     690     8
Other comprehensive earnings (loss), net of tax 1            
Common stock repurchased (210)   (2)     208  
Common stock retired     236     (236)  
Common stock retired, shares   4          
Common stock dividends (462)   0 462      
Share-based compensation 25   25        
Contributions from noncontrolling interests 8           8
Distributions to noncontrolling interests (13)           (13)
Balance at Jun. 30, 2023 $ 11,150 $ 64 $ 6,131 $ 4,940 $ (114) $ 0 $ 129
Balance, shares at Jun. 30, 2023   641          
v3.23.2
Pay vs Performance Disclosure - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2023
Jun. 30, 2022
Pay vs Performance Disclosure        
Net Income (Loss) $ 690 $ 1,932 $ 1,685 $ 2,921
v3.23.2
Insider Trading Arrangements
 3 Months Ended
Jun. 30, 2023
Trading Arrangements, by Individual  
Rule 10b5-1 Arrangement Adopted false
Non-Rule 10b5-1 Arrangement Adopted false
Rule 10b5-1 Arrangement Terminated false
Non-Rule 10b5-1 Arrangement Terminated false
v3.23.2
Summary of Significant Accounting Policies
 6 Months Ended
Jun. 30, 2023
Accounting Policies [Abstract]  
Summary of Significant Accounting Policies
1.
Summary of Significant Accounting Policies

The accompanying unaudited interim financial statements and notes of Devon have been prepared pursuant to the rules and regulations of the SEC. Pursuant to such rules and regulations, certain disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been omitted. The accompanying unaudited interim financial statements and notes should be read in conjunction with the financial statements and notes included in Devon’s 2022 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, 2023 and 2022 and Devon’s financial position as of June 30, 2023.

Restricted Cash

As of June 30, 2023, approximately $116 million of cash on the consolidated balance sheets is presented as restricted cash for obligations primarily related to an abandoned Canadian firm transportation agreement.

 

Variable Interest Entity

CDM is a joint venture entity formed by Devon and an affiliate of QL Capital Partners, LP. CDM provides gathering, compression and dehydration services for natural gas production in the Cotton Draw area of the Delaware Basin. Devon holds a controlling interest in CDM and the portions of CDM’s net earnings and equity not attributable to Devon’s controlling interest are shown separately as noncontrolling interests in the accompanying consolidated statements of comprehensive earnings and consolidated balance sheets. CDM is considered a VIE to Devon. The assets of CDM cannot be used by Devon for general corporate purposes and are included in, and disclosed parenthetically, on Devon's consolidated balance sheets. The carrying amount of liabilities related to CDM for which the creditors do not have recourse to Devon's assets are also included in, and disclosed parenthetically, if material, on Devon's consolidated balance sheets.

 

Investments

The following table presents Devon's investments.

 

 

 

 

 

Carrying Amount

 

Investments

 

% Interest

 

June 30, 2023

 

 

December 31, 2022

 

Catalyst

 

50%

 

$

324

 

 

$

339

 

Water JV

 

30%

 

 

212

 

 

 

—

 

Matterhorn

 

12.5%

 

 

90

 

 

 

54

 

Other

 

Various

 

 

49

 

 

 

47

 

      Total

 

 

 

$

675

 

 

$

440

 

 

Devon has an interest in Catalyst, which is a joint venture with an affiliate of Howard Energy Partners, LLC (“HEP”) and certain other investors, to develop oil gathering and natural gas processing infrastructure in the Stateline area of the Delaware Basin. Under the terms of the arrangement, Devon and a holding company owned by the other joint venture investors each have a 50% voting interest in the joint venture legal entity, and HEP serves as the operator. Through 2038, Devon’s production from 50,000 net acres in the Stateline area of the Delaware Basin has been dedicated to Catalyst subject to fixed-fee oil gathering and natural gas processing agreements. Devon accounts for the investment in Catalyst as an equity method investment. Devon's investment in Catalyst is shown within investments on the consolidated balance sheets and Devon's share of Catalyst earnings are reflected as a component of other, net in the accompanying consolidated statements of comprehensive earnings.

In the second quarter of 2023, Devon made an investment in the Water JV, a joint venture entity formed with an affiliate of WaterBridge NDB LLC (“WaterBridge”), for the purpose of providing increased capacity and flexibility in disposing of produced water in the Delaware Basin and Eagle Ford. Under terms of the arrangement, Devon contributed water infrastructure assets and committed to a water gathering and disposal dedication to the Water JV through 2038, in exchange for a 30% voting interest in the joint venture legal entity. WaterBridge contributed water infrastructure assets to the Water JV, in exchange for a 70% voting interest in the joint venture legal entity and will serve as the operator. At closing of the Water JV, Devon recognized a $64 million gain in asset dispositions in the consolidated statements of comprehensive earnings, which represented the excess of the estimated fair value of Devon's interest in the Water JV over the carrying value of the water infrastructure assets Devon contributed to the Water JV. Devon accounts for the investment in the Water JV as an equity method investment. Devon's investment in the Water JV is shown

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

During 2023 and 2022, Devon made investments in Matterhorn. Matterhorn is a joint venture entity and was formed for the purpose of constructing a natural gas pipeline that will transport natural gas from the Permian Basin to the Katy, Texas area. Devon's investment in Matterhorn does not give it the ability to exercise significant influence over Matterhorn.

 

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,

 

 

 

2023

 

 

2022

 

 

2023

 

 

2022

 

Oil

 

$

2,106

 

 

$

2,970

 

 

$

4,249

 

 

$

5,376

 

Gas

 

 

122

 

 

 

557

 

 

 

335

 

 

 

864

 

NGL

 

 

265

 

 

 

573

 

 

 

588

 

 

 

1,035

 

Oil, gas and NGL sales

 

 

2,493

 

 

 

4,100

 

 

 

5,172

 

 

 

7,275

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Oil

 

 

735

 

 

 

952

 

 

 

1,465

 

 

 

1,728

 

Gas

 

 

123

 

 

 

322

 

 

 

275

 

 

 

531

 

NGL

 

 

179

 

 

 

422

 

 

 

377

 

 

 

757

 

Marketing and midstream revenues

 

 

1,037

 

 

 

1,696

 

 

 

2,117

 

 

 

3,016

 

Total revenues from contracts with customers

 

$

3,530

 

 

$

5,796

 

 

$

7,289

 

 

$

10,291

 
v3.23.2
Acquisition and Divestitures
 6 Months Ended
Jun. 30, 2023
Business Combinations [Abstract]  
Acquisition and Divestitures

2. Acquisitions and Divestitures

 

Acquisitions

In September 2022, Devon completed its acquisition of producing properties and leasehold interests located in the Eagle Ford for cash consideration of approximately $1.7 billion, net of purchase price adjustments. Additionally, in July 2022, Devon completed its acquisition of producing properties and leasehold interests located in the Williston Basin for cash consideration of approximately $830 million, net of purchase price adjustments. The total estimated proved reserves associated with these Eagle Ford and Williston Basin assets were approximately 87 MMBoe and 66 MMBoe, respectively. Each of these acquisitions were accounted for as asset acquisitions as substantially all of the fair value was concentrated in a group of similar assets. Each of the acquisitions resulted in the purchase of producing properties and leasehold interests in a defined geographical and geological area, and substantially all of the assets have similar risk characteristics.

 

Contingent Earnout Payments

Devon is entitled to contingent earnout payments associated with the sale of its Barnett Shale assets in 2020 with upside participation beginning at a $2.75 Henry Hub natural gas price or a $50 WTI oil price. The contingent payment period commenced on January 1, 2021 and has a term of four years. Devon received $65 million in contingent earnout payments related to this transaction in the first quarter of 2023 and 2022 and could receive up to an additional $130 million in contingent earnout payments for the remaining performance periods depending on future commodity prices. The valuation of the future contingent earnout payments included within other current assets and other long-term assets in the June 30, 2023 consolidated balance sheet was approximately $30 million and $35 million, respectively. These values were derived utilizing a Monte Carlo valuation model and qualify as a level 3 fair value measurement.

Devon also received $4 million in contingent earnout payments related to the sale of non-core assets in the Rockies in the first quarter of 2023 and 2022.

v3.23.2
Derivative Financial Instruments
 6 Months Ended
Jun. 30, 2023
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 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, 2023, Devon neither held cash collateral of its counterparties nor posted cash collateral to its counterparties. Given Devon's current credit ratings and the terms of the underlying contracts, Devon is not currently required to post collateral to its counterparties with respect to its open derivative positions, and we would not be required to post any such collateral as a result of any change to the amount of Devon's net liability for such positions.

Commodity Derivatives

As of June 30, 2023, 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 2023

 

 

6,000

 

 

$

68.42

 

 

 

82,750

 

 

$

69.52

 

 

$

94.57

 

 

Q1-Q4 2024

 

 

1,492

 

 

$

68.42

 

 

 

21,486

 

 

$

60.00

 

 

$

85.66

 

 

 

 

 

Oil Basis Swaps

 

Period

 

Index

 

Volume
(Bbls/d)

 

 

Weighted Average
Differential to WTI
($/Bbl)

 

Q3-Q4 2023

 

Midland Sweet

 

 

66,500

 

 

$

1.11

 

Q1-Q4 2024

 

Midland Sweet

 

 

61,500

 

 

$

1.17

 

Q1-Q4 2025

 

Midland Sweet

 

 

49,000

 

 

$

0.96

 

As of June 30, 2023, 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 2023

 

 

108,000

 

 

$

3.30

 

 

 

171,000

 

 

$

3.64

 

 

$

7.44

 

Q1-Q4 2024

 

 

94,426

 

 

$

3.30

 

 

 

40,527

 

 

$

3.78

 

 

$

7.05

 

 

 

 

Natural Gas Basis Swaps

 

Period

 

Index

 

Volume
(MMBtu/d)

 

 

Weighted Average
Differential to
Henry Hub
($/MMBtu)

 

Q3-Q4 2023

 

El Paso Natural Gas

 

 

145,000

 

 

$

(1.58

)

Q3-Q4 2023

 

Houston Ship Channel

 

 

140,000

 

 

$

(0.19

)

Q3-Q4 2023

 

WAHA

 

 

70,000

 

 

$

(0.51

)

Q1-Q4 2024

 

El Paso Natural Gas

 

 

34,863

 

 

$

(0.91

)

Q1-Q4 2024

 

Houston Ship Channel

 

 

90,000

 

 

$

(0.25

)

Q1-Q4 2024

 

WAHA

 

 

44,973

 

 

$

(0.58

)

 

As of June 30, 2023, Devon did not have any open NGL positions.

Financial Statement Presentation

All derivative financial instruments are recognized at their current fair value as either assets or liabilities in the consolidated balance sheets. Amounts related to contracts allowed to be netted upon payment subject to a master netting arrangement with the same counterparty are reported on a net basis in the consolidated balance sheets. The tables below present a summary of these positions as of June 30, 2023 and December 31, 2022.

 

June 30, 2023

 

 

December 31, 2022

 

 

 

 

Gross Fair Value

 

 

Amounts Netted

 

 

Net Fair Value

 

 

Gross Fair Value

 

 

Amounts Netted

 

 

Net Fair Value

 

 

Balance Sheet Classification

Commodity derivatives:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Short-term derivative asset

$

111

 

 

$

(20

)

 

$

91

 

 

$

138

 

 

$

(19

)

 

$

119

 

 

Other current assets

Long-term derivative asset

 

11

 

 

 

(1

)

 

 

10

 

 

 

12

 

 

 

—

 

 

 

12

 

 

Other long-term assets

Short-term derivative liability

 

(43

)

 

 

20

 

 

 

(23

)

 

 

(22

)

 

 

19

 

 

 

(3

)

 

Other current liabilities

Long-term derivative liability

 

(13

)

 

 

1

 

 

 

(12

)

 

 

—

 

 

 

—

 

 

 

—

 

 

Other long-term liabilities

  Total derivative asset

$

66

 

 

$

—

 

 

$

66

 

 

$

128

 

 

$

—

 

 

$

128

 

 

 
v3.23.2
Share-Based Compensation
 6 Months Ended
Jun. 30, 2023
Share-Based Payment Arrangement [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.

 

 

 

Six Months Ended June 30,

 

 

 

2023

 

 

2022

 

G&A

 

$

48

 

 

$

42

 

Exploration expenses

 

 

—

 

 

 

1

 

Total

 

$

48

 

 

$

43

 

Related income tax benefit

 

$

27

 

 

$

26

 

 

 

 

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

 

 

 

Restricted Stock Awards & Units

 

 

Performance Share Units

 

 

 

 

Awards/Units

 

 

Weighted
Average
Grant-Date
Fair Value

 

 

Units

 

 

Weighted
Average
Grant-Date
Fair Value

 

 

 

 

(Thousands, except fair value data)

 

 

Unvested at 12/31/22

 

 

5,788

 

 

$

29.11

 

 

 

1,841

 

 

$

31.33

 

 

Granted

 

 

1,224

 

 

$

62.95

 

 

 

743

 

 

$

51.38

 

 

Vested

 

 

(2,905

)

 

$

25.18

 

 

 

(1,037

)

 

$

27.89

 

 

Forfeited

 

 

(79

)

 

$

43.82

 

 

 

—

 

 

$

—

 

 

Unvested at 6/30/23

 

 

4,028

 

 

$

41.94

 

 

 

1,547

 

(1)

$

43.25

 

 

 

(1)
A maximum of 3.1 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 2023, as indicated in the previous summary table. The grants in the previous summary table also include the impacts of performance share units granted in a prior year that vested higher than 100% of target due to Devon's TSR performance compared to our peers.

 

 

2023

 

 Grant-date fair value

 

$

81.70

 

 Risk-free interest rate

 

 

4.15

%

 Volatility factor

 

 

61.43

%

 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, 2023.

 

 

 

Restricted Stock

 

 

Performance

 

 

 

Awards/Units

 

 

Share Units

 

Unrecognized compensation cost

 

$

118

 

 

$

30

 

Weighted average period for recognition (years)

 

 

2.8

 

 

 

1.9

 
v3.23.2
Restructuring
 6 Months Ended
Jun. 30, 2023
Restructuring and Related Activities [Abstract]  
Restructuring

5. Restructuring

The following table summarizes Devon’s restructuring liabilities. The remaining liabilities primarily relate to an abandoned Canadian firm transportation agreement.

 

 

 

Other

 

 

Other

 

 

 

 

 

 

Current

 

 

Long-term

 

 

 

 

 

 

Liabilities

 

 

Liabilities

 

 

Total

 

Balance as of December 31, 2022

 

$

34

 

 

$

81

 

 

$

115

 

Changes related to prior years' restructurings

 

 

(19

)

 

 

(4

)

 

 

(23

)

Balance as of June 30, 2023

 

$

15

 

 

$

77

 

 

$

92

 

 

 

 

 

 

 

 

 

 

 

Balance as of December 31, 2021

 

$

38

 

 

$

111

 

 

$

149

 

Changes related to prior years' restructurings

 

 

(10

)

 

 

(12

)

 

 

(22

)

Balance as of June 30, 2022

 

$

28

 

 

$

99

 

 

$

127

 
v3.23.2
Other, Net
 6 Months Ended
Jun. 30, 2023
Other Expenses [Abstract]  
Other, Net

6. Other, Net

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

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

2023

 

 

2022

 

 

2023

 

 

2022

 

Estimated future obligation under a performance guarantee

 

$

—

 

 

$

—

 

 

$

—

 

 

$

(96

)

Ukraine charitable pledge

 

 

—

 

 

 

—

 

 

 

—

 

 

 

20

 

Asset retirement obligation accretion

 

 

7

 

 

 

6

 

 

 

14

 

 

 

13

 

Other

 

 

3

 

 

 

4

 

 

 

1

 

 

 

12

 

Total

 

$

10

 

 

$

10

 

 

$

15

 

 

$

(51

)

 

Devon has guaranteed performance through 2026 for a minimum volume commitment associated with assets divested in 2018. Due to improved commodity prices, market conditions, and performance by the purchaser of the assets, the purchaser was able to fully satisfy the performance obligation due in the first quarter of 2023 and 2022. Additionally, at March 31, 2022, Devon reduced the estimated future exposure of the performance guarantee. The effect of these cash collections and liability revisions resulted in a $96 million benefit in the first six months of 2022.

 

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

v3.23.2
Income Taxes
 6 Months Ended
Jun. 30, 2023
Income Tax Disclosure [Abstract]  
Income Taxes

7. Income Taxes

The following table presents Devon’s total income tax expense 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,

 

 

 

2023

 

 

2022

 

 

2023

 

 

2022

 

Earnings before income taxes

 

$

897

 

 

$

2,495

 

 

$

2,121

 

 

$

3,757

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current income tax expense

 

$

80

 

 

$

252

 

 

$

221

 

 

$

355

 

Deferred income tax expense

 

 

119

 

 

 

305

 

 

 

199

 

 

 

469

 

Total income tax expense

 

$

199

 

 

$

557

 

 

$

420

 

 

$

824

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. statutory income tax rate

 

 

21

%

 

 

21

%

 

 

21

%

 

 

21

%

State income taxes

 

 

1

%

 

 

1

%

 

 

1

%

 

 

1

%

Other

 

 

0

%

 

 

0

%

 

 

(2

%)

 

 

0

%

Effective income tax rate

 

 

22

%

 

 

22

%

 

 

20

%

 

 

22

%

 

On August 16, 2022, the IRA was signed into law and included various income tax related provisions with effective dates generally beginning in 2023. Among the enacted provisions are a 15% CAMT on AFSI and several new and expanded clean energy credits and incentives. Dependent upon future regulations, Devon believes it is subject to the CAMT as Devon has an average annual AFSI that exceeds $1 billion for the three-year period ended December 31, 2022.
v3.23.2
Net Earnings Per Share
 6 Months Ended
Jun. 30, 2023
Earnings Per Share [Abstract]  
Net Earnings Per Share
8.
Net Earnings Per Share

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

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2023

 

 

2022

 

 

2023

 

 

2022

 

Net earnings:

 

 

 

 

 

 

 

 

 

 

 

 

Net earnings

 

$

690

 

 

$

1,932

 

 

$

1,685

 

 

$

2,921

 

Attributable to participating securities

 

 

(3

)

 

 

(17

)

 

 

(11

)

 

 

(33

)

Basic and diluted earnings

 

$

687

 

 

$

1,915

 

 

$

1,674

 

 

$

2,888

 

Common shares:

 

 

 

 

 

 

 

 

 

 

 

 

Common shares outstanding - total

 

 

642

 

 

 

658

 

 

 

646

 

 

 

661

 

Attributable to participating securities

 

 

(4

)

 

 

(6

)

 

 

(5

)

 

 

(7

)

Common shares outstanding - basic

 

 

638

 

 

 

652

 

 

 

641

 

 

 

654

 

Dilutive effect of potential common shares issuable

 

 

1

 

 

 

2

 

 

 

2

 

 

 

2

 

Common shares outstanding - diluted

 

 

639

 

 

 

654

 

 

 

643

 

 

 

656

 

Net earnings per share:

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

1.08

 

 

$

2.94

 

 

$

2.61

 

 

$

4.42

 

Diluted

 

$

1.07

 

 

$

2.93

 

 

$

2.60

 

 

$

4.40

 
v3.23.2
Other Comprehensive Earnings (Loss)
 6 Months Ended
Jun. 30, 2023
Other Comprehensive Income (Loss), Net of Tax [Abstract]  
Other Comprehensive Earnings (Loss)

9. Other Comprehensive Earnings (Loss)

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

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2023

 

 

2022

 

 

2023

 

 

2022

 

Pension and postretirement benefit plans:

 

 

 

 

 

 

 

 

 

 

 

 

Beginning accumulated pension and postretirement benefits

 

$

(115

)

 

$

(131

)

 

$

(116

)

 

$

(132

)

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

 

 

2

 

 

 

2

 

 

 

3

 

 

 

3

 

Income tax expense

 

 

(1

)

 

 

(1

)

 

 

(1

)

 

 

(1

)

Accumulated other comprehensive loss, net of tax

 

$

(114

)

 

$

(130

)

 

$

(114

)

 

$

(130

)

 

(1)
Recognition of net actuarial loss and prior service cost are included in the computation of net periodic benefit cost, which is a component of other, net in the accompanying consolidated statements of comprehensive earnings.
v3.23.2
Supplemental Information To Statements Of Cash Flows
 6 Months Ended
Jun. 30, 2023
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,

 

 

 

2023

 

 

2022

 

 

2023

 

 

2022

 

Changes in assets and liabilities, net:

 

 

 

 

 

 

 

 

 

 

 

 

Accounts receivable

 

$

98

 

 

$

(346

)

 

$

248

 

 

$

(803

)

Other current assets

 

 

(12

)

 

 

(85

)

 

 

4

 

 

 

(21

)

Other long-term assets

 

 

(13

)

 

 

9

 

 

 

18

 

 

 

75

 

Accounts payable and revenues and royalties payable

 

 

(65

)

 

 

540

 

 

 

(230

)

 

 

787

 

Other current liabilities

 

 

(138

)

 

 

93

 

 

 

(141

)

 

 

101

 

Other long-term liabilities

 

 

(10

)

 

 

(13

)

 

 

(27

)

 

 

(84

)

Total

 

$

(140

)

 

$

198

 

 

$

(128

)

 

$

55

 

Supplementary cash flow data:

 

 

 

 

 

 

 

 

 

 

 

 

Interest paid

 

$

88

 

 

$

85

 

 

$

189

 

 

$

185

 

Income taxes paid

 

$

259

 

 

$

133

 

 

$

259

 

 

$

110

 

 

Devon's non-cash investing activities for the three and six months ended June 30, 2023, included approximately $150 million of contributions of other property and equipment for the formation of the Water JV.

v3.23.2
Accounts Receivable
 6 Months Ended
Jun. 30, 2023
Accounts Receivable, after Allowance for Credit Loss [Abstract]  
Accounts Receivable
11.
Accounts Receivable

Components of accounts receivable include the following:

 

 

 

June 30, 2023

 

 

December 31, 2022

 

Oil, gas and NGL sales

 

$

913

 

 

$

1,153

 

Joint interest billings

 

 

217

 

 

 

162

 

Marketing and midstream revenues

 

 

364

 

 

 

428

 

Other

 

 

32

 

 

 

33

 

Gross accounts receivable

 

 

1,526

 

 

 

1,776

 

Allowance for doubtful accounts

 

 

(7

)

 

 

(9

)

Net accounts receivable

 

$

1,519

 

 

$

1,767

 
v3.23.2
Property, Plant and Equipment
 6 Months Ended
Jun. 30, 2023
Extractive Industries [Abstract]  
Property, Plant and Equipment Property, Plant and Equipment

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

 

 

 

June 30, 2023

 

 

December 31, 2022

 

Property and equipment:

 

 

 

 

 

 

Proved

 

$

44,711

 

 

$

42,734

 

Unproved and properties under development

 

 

1,528

 

 

 

1,548

 

Total oil and gas

 

 

46,239

 

 

 

44,282

 

Less accumulated DD&A

 

 

(28,922

)

 

 

(27,715

)

Oil and gas property and equipment, net

 

 

17,317

 

 

 

16,567

 

Other property and equipment

 

 

2,204

 

 

 

2,280

 

Less accumulated DD&A

 

 

(758

)

 

 

(741

)

Other property and equipment, net (1)

 

 

1,446

 

 

 

1,539

 

Property and equipment, net

 

$

18,763

 

 

$

18,106

 

 

(1)
$117 million and $109 million related to CDM in 2023 and 2022, respectively.
v3.23.2
Debt And Related Expenses
 6 Months Ended
Jun. 30, 2023
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, 2023

 

 

December 31, 2022

 

8.25% due August 1, 2023

 

$

242

 

 

$

242

 

5.25% due September 15, 2024

 

 

472

 

 

 

472

 

5.85% due December 15, 2025

 

 

485

 

 

 

485

 

7.50% due September 15, 2027

 

 

73

 

 

 

73

 

5.25% due October 15, 2027

 

 

390

 

 

 

390

 

5.875% due June 15, 2028

 

 

325

 

 

 

325

 

4.50% due January 15, 2030

 

 

585

 

 

 

585

 

7.875% due September 30, 2031

 

 

675

 

 

 

675

 

7.95% due April 15, 2032

 

 

366

 

 

 

366

 

5.60% due July 15, 2041

 

 

1,250

 

 

 

1,250

 

4.75% due May 15, 2042

 

 

750

 

 

 

750

 

5.00% due June 15, 2045

 

 

750

 

 

 

750

 

Net premium on debentures and notes

 

 

82

 

 

 

103

 

Debt issuance costs

 

 

(32

)

 

 

(26

)

Total debt

 

$

6,413

 

 

$

6,440

 

Less amount classified as short-term debt

 

 

244

 

 

 

251

 

Total long-term debt

 

$

6,169

 

 

$

6,189

 

 

Retirement of Senior Notes

On August 1, 2023, Devon repaid the $242 million of 8.25% senior notes at maturity.

Credit Lines

On March 24, 2023, Devon amended and restated its 2018 Senior Credit Facility to provide for a new $3.0 billion revolving 2023 Senior Credit Facility with a financial covenant and other terms similar to the 2018 Senior Credit Facility. The 2023 Senior Credit Facility matures on March 24, 2028, with the option to extend the maturity date by three additional one-year periods, subject to lender consent. As of June 30, 2023, Devon had no outstanding borrowings under the 2023 Senior Credit Facility and had issued $2 million in outstanding letters of credit under this facility. The 2023 Senior Credit Facility contains only one material financial covenant. This covenant requires Devon’s ratio of total funded debt to total capitalization, as defined in the credit agreement, to be no greater than 65%. Under the terms of the credit agreement, total capitalization is adjusted to add back non-cash financial write-downs such as impairments. As of June 30, 2023, Devon was in compliance with this covenant with a debt-to-capitalization ratio of 23.1%.

Net Financing Costs

The following schedule includes the components of net financing costs.

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2023

 

 

2022

 

 

2023

 

 

2022

 

Interest based on debt outstanding

 

$

96

 

 

$

93

 

 

$

189

 

 

$

185

 

Interest income

 

 

(15

)

 

 

(2

)

 

 

(32

)

 

 

(3

)

Other

 

 

(3

)

 

 

(7

)

 

 

(7

)

 

 

(13

)

Total net financing costs

 

$

78

 

 

$

84

 

 

$

150

 

 

$

169

 

v3.23.2
Leases
 6 Months Ended
Jun. 30, 2023
Leases [Abstract]  
Leases

14. Leases

The following table presents Devon’s right-of-use assets and lease liabilities as of June 30, 2023 and December 31, 2022.

 

 

 

June 30, 2023

 

 

December 31, 2022

 

 

 

Finance

 

 

Operating

 

 

Total

 

 

Finance

 

 

Operating

 

 

Total

 

Right-of-use assets

 

$

251

 

 

$

15

 

 

$

266

 

 

$

203

 

 

$

21

 

 

$

224

 

Lease liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current lease liabilities (1)

 

$

14

 

 

$

10

 

 

$

24

 

 

$

8

 

 

$

13

 

 

$

21

 

Long-term lease liabilities

 

 

295

 

 

 

4

 

 

 

299

 

 

 

249

 

 

 

8

 

 

 

257

 

Total lease liabilities

 

$

309

 

 

$

14

 

 

$

323

 

 

$

257

 

 

$

21

 

 

$

278

 

 

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

 

Devon’s operating lease right-of-use assets relate to real estate, drilling rigs and other equipment for the exploration, development and production of oil and gas. Devon’s financing lease right-of-use assets relate to real estate. In the second quarter of 2023, Devon's financing lease right-of-use assets and the associated liabilities increased primarily from an amendment of lease terms.
v3.23.2
Asset Retirement Obligations
 6 Months Ended
Jun. 30, 2023
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,

 

 

 

2023

 

 

2022

 

Asset retirement obligations as of beginning of period

 

$

529

 

 

$

485

 

Liabilities incurred

 

 

14

 

 

 

15

 

Liabilities settled and divested

 

 

(18

)

 

 

(9

)

Revision of estimated obligation

 

 

27

 

 

 

(35

)

Accretion expense on discounted obligation

 

 

14

 

 

 

13

 

Asset retirement obligations as of end of period

 

 

566

 

 

 

469

 

Less current portion

 

 

18

 

 

 

17

 

Asset retirement obligations, long-term

 

$

548

 

 

$

452

 

 

During the first six months of 2023, Devon increased its asset retirement obligations by approximately $27 million primarily due to inflation-driven increases in current cost estimates. During the first six months of 2022, Devon reduced its asset retirement obligations by $35 million primarily due to extended retirement dates for oil and gas assets, partially offset by inflation-driven increases to current settlement costs.

v3.23.2
Stockholders' Equity
 6 Months Ended
Jun. 30, 2023
Stockholders' Equity Note [Abstract]  
Stockholders' Equity
16.
Stockholders’ Equity

Share Repurchases

In November 2021, Devon authorized a share repurchase program of $1.0 billion with a December 31, 2022 expiration date. In 2022, the Board of Directors authorized expansions of the share repurchase program ultimately to $2.0 billion and extended the expiration date to May 4, 2023. In May 2023, the Board of Directors authorized a further expansion to $3.0 billion and extended the expiration date to December 31, 2024. The table below provides information regarding purchases of Devon’s common stock under the $3.0 billion share repurchase program (shares in thousands).

 

 

 

Total Number of
Shares Purchased

 

 

Dollar Value of
Shares Purchased

 

 

Average Price Paid
per Share

 

$3.0 Billion Plan

 

 

 

 

 

 

 

 

 

2021:

 

 

 

 

 

 

 

 

 

Fourth quarter

 

 

13,983

 

 

$

589

 

 

$

42.15

 

2022:

 

 

 

 

 

 

 

 

 

First quarter

 

 

3,979

 

 

 

230

 

 

$

57.74

 

Second quarter

 

 

5,052

 

 

 

318

 

 

$

63.07

 

Third quarter

 

 

1,875

 

 

 

113

 

 

$

59.99

 

Fourth quarter

 

 

802

 

 

 

57

 

 

$

71.69

 

2023:

 

 

 

 

 

 

 

 

 

First quarter

 

 

10,090

 

 

 

545

 

 

$

53.96

 

Second quarter

 

 

3,795

 

 

 

200

 

 

$

52.70

 

Total plan

 

 

39,576

 

 

$

2,052

 

 

$

51.86

 

 

Dividends

Devon pays a quarterly dividend which is comprised of a fixed dividend and a variable dividend. The variable dividend is dependent on quarterly cash flows, among other factors. Devon raised its fixed dividend multiple times over the past two calendar years from $0.16 per share in the first quarter of 2022 to $0.20 per share beginning in the first quarter of 2023. The following table summarizes Devon’s fixed and variable dividends for the first six months of 2023 and 2022, respectively.

 

 

Fixed

 

 

Variable

 

 

Total

 

 

Rate Per Share

 

2023:

 

 

 

 

 

 

 

 

 

 

 

First quarter

$

133

 

 

$

463

 

 

$

596

 

 

$

0.89

 

Second quarter

 

128

 

 

 

334

 

 

 

462

 

 

$

0.72

 

Total year-to-date

$

261

 

 

$

797

 

 

$

1,058

 

 

 

 

2022:

 

 

 

 

 

 

 

 

 

 

 

First quarter

$

109

 

 

$

558

 

 

$

667

 

 

$

1.00

 

Second quarter

 

105

 

 

 

725

 

 

 

830

 

 

$

1.27

 

Total year-to-date

$

214

 

 

$

1,283

 

 

$

1,497

 

 

 

 

 

In August 2023, Devon announced a cash dividend in the amount of $0.49 per share payable in the third quarter of 2023. The dividend consists of a $0.20 per share fixed quarterly dividend and a $0.29 per share variable quarterly dividend and will total approximately $314 million.

Noncontrolling Interests

The noncontrolling interests’ share of CDM’s net earnings and the contributions from and distributions to the noncontrolling interests are presented as components of equity.
v3.23.2
Commitments and Contingencies
 6 Months Ended
Jun. 30, 2023
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies
17.
Commitments and Contingencies

Devon is party to various legal actions arising in connection with its business. Matters that are probable of unfavorable outcome to Devon and which can be reasonably estimated are accrued. Such accruals are based on information known about the matters, Devon’s estimates of the outcomes of such matters and its experience in contesting, litigating and settling similar matters. None of the

actions are believed by management to likely involve future amounts that would be material to Devon’s financial position or results of operations after consideration of recorded accruals. Actual amounts could differ materially from management’s estimates.

Royalty Matters

Numerous oil and natural gas producers and related parties, including Devon, have been named in various lawsuits alleging royalty underpayments. Devon is currently named as a defendant in a number of such lawsuits, including some lawsuits in which the plaintiffs seek to certify classes of similarly situated plaintiffs. Among the allegations typically asserted in these suits are claims that Devon used below-market prices, made improper deductions, paid royalty proceeds in an untimely manner without including required interest, used improper measurement techniques and entered into gas purchase and processing arrangements with affiliates that resulted in underpayment of royalties in connection with oil, natural gas and NGLs produced and sold. Devon is also involved in governmental agency proceedings and royalty audits and is subject to related contracts and regulatory controls in the ordinary course of business, some that may lead to additional royalty claims.

Environmental and Climate Change Matters

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

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

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

Other Indemnifications and Legacy Matters

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

In November 2020, the Department of the Interior, Bureau of Safety and Environmental Enforcement ordered several oil and gas operators, including Devon, to perform decommissioning and reclamation activities related to two California offshore oil and gas production platforms and related facilities. The current operator and owner of the platforms contends that it does not have the financial ability to perform these obligations and relinquished the related federal lease in October 2020. In response to the apparent insolvency of the current operator, the government has ordered the former operators and alleged former lease record title owners to decommission the platforms and related facilities. The government contends that an alleged corporate predecessor of Devon owned a partial interest in the subject lease and platforms. Although Devon cannot predict the ultimate outcome of this matter, Devon denies any obligation to decommission the subject platforms, has appealed the order, and believes any decommissioning obligation related to the subject platforms should be assumed by others.
v3.23.2
Fair Value Measurements
 6 Months Ended
Jun. 30, 2023
Fair Value Disclosures [Abstract]  
Fair Value Measurements
18.
Fair Value Measurements

The following table provides carrying value and fair value measurement information for certain of Devon’s financial assets and liabilities. The carrying values of cash, accounts receivable, other current receivables, accounts payable, other current payables, accrued expenses and lease liabilities included in the accompanying consolidated balance sheets approximated fair value at June 30, 2023 and December 31, 2022, as applicable. Therefore, such financial assets and liabilities are not presented in the following table.

 

 

 

 

 

 

 

 

 

Fair Value Measurements Using:

 

 

 

Carrying

 

 

Total Fair

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

 

Amount

 

 

Value

 

 

Inputs

 

 

Inputs

 

 

Inputs

 

June 30, 2023 assets (liabilities):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash equivalents

 

$

2

 

 

$

2

 

 

$

2

 

 

$

—

 

 

$

—

 

Commodity derivatives

 

$

101

 

 

$

101

 

 

$

—

 

 

$

101

 

 

$

—

 

Commodity derivatives

 

$

(35

)

 

$

(35

)

 

$

—

 

 

$

(35

)

 

$

—

 

Debt

 

$

(6,413

)

 

$

(6,187

)

 

$

—

 

 

$

(6,187

)

 

$

—

 

Contingent earnout payments

 

$

65

 

 

$

65

 

 

$

—

 

 

$

—

 

 

$

65

 

December 31, 2022 assets (liabilities):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash equivalents

 

$

708

 

 

$

708

 

 

$

708

 

 

$

—

 

 

$

—

 

Commodity derivatives

 

$

131

 

 

$

131

 

 

$

—

 

 

$

131

 

 

$

—

 

Commodity derivatives

 

$

(3

)

 

$

(3

)

 

$

—

 

 

$

(3

)

 

$

—

 

Debt

 

$

(6,440

)

 

$

(6,231

)

 

$

—

 

 

$

(6,231

)

 

$

—

 

Contingent earnout payments

 

$

157

 

 

$

157

 

 

$

—

 

 

$

—

 

 

$

157

 

 

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

Level 1 Fair Value Measurements

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

Level 2 Fair Value Measurements

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

 

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

Level 3 Fair Value Measurements

Contingent Earnout Payments – Devon has the right to receive contingent consideration related to the Barnett asset divestiture based on future oil and gas prices. These values were derived using a Monte Carlo valuation model and qualify as a level 3 fair value measurement. For additional information, see Note 2.
v3.23.2
Summary of Significant Accounting Policies (Policies)
 6 Months Ended
Jun. 30, 2023
Accounting Policies [Abstract]  
Restricted Cash

Restricted Cash

As of June 30, 2023, approximately $116 million of cash on the consolidated balance sheets is presented as restricted cash for obligations primarily related to an abandoned Canadian firm transportation agreement.

Variable Interest Entity

Variable Interest Entity

CDM is a joint venture entity formed by Devon and an affiliate of QL Capital Partners, LP. CDM provides gathering, compression and dehydration services for natural gas production in the Cotton Draw area of the Delaware Basin. Devon holds a controlling interest in CDM and the portions of CDM’s net earnings and equity not attributable to Devon’s controlling interest are shown separately as noncontrolling interests in the accompanying consolidated statements of comprehensive earnings and consolidated balance sheets. CDM is considered a VIE to Devon. The assets of CDM cannot be used by Devon for general corporate purposes and are included in, and disclosed parenthetically, on Devon's consolidated balance sheets. The carrying amount of liabilities related to CDM for which the creditors do not have recourse to Devon's assets are also included in, and disclosed parenthetically, if material, on Devon's consolidated balance sheets.
Investments

Investments

The following table presents Devon's investments.

 

 

 

 

 

Carrying Amount

 

Investments

 

% Interest

 

June 30, 2023

 

 

December 31, 2022

 

Catalyst

 

50%

 

$

324

 

 

$

339

 

Water JV

 

30%

 

 

212

 

 

 

—

 

Matterhorn

 

12.5%

 

 

90

 

 

 

54

 

Other

 

Various

 

 

49

 

 

 

47

 

      Total

 

 

 

$

675

 

 

$

440

 

 

Devon has an interest in Catalyst, which is a joint venture with an affiliate of Howard Energy Partners, LLC (“HEP”) and certain other investors, to develop oil gathering and natural gas processing infrastructure in the Stateline area of the Delaware Basin. Under the terms of the arrangement, Devon and a holding company owned by the other joint venture investors each have a 50% voting interest in the joint venture legal entity, and HEP serves as the operator. Through 2038, Devon’s production from 50,000 net acres in the Stateline area of the Delaware Basin has been dedicated to Catalyst subject to fixed-fee oil gathering and natural gas processing agreements. Devon accounts for the investment in Catalyst as an equity method investment. Devon's investment in Catalyst is shown within investments on the consolidated balance sheets and Devon's share of Catalyst earnings are reflected as a component of other, net in the accompanying consolidated statements of comprehensive earnings.

In the second quarter of 2023, Devon made an investment in the Water JV, a joint venture entity formed with an affiliate of WaterBridge NDB LLC (“WaterBridge”), for the purpose of providing increased capacity and flexibility in disposing of produced water in the Delaware Basin and Eagle Ford. Under terms of the arrangement, Devon contributed water infrastructure assets and committed to a water gathering and disposal dedication to the Water JV through 2038, in exchange for a 30% voting interest in the joint venture legal entity. WaterBridge contributed water infrastructure assets to the Water JV, in exchange for a 70% voting interest in the joint venture legal entity and will serve as the operator. At closing of the Water JV, Devon recognized a $64 million gain in asset dispositions in the consolidated statements of comprehensive earnings, which represented the excess of the estimated fair value of Devon's interest in the Water JV over the carrying value of the water infrastructure assets Devon contributed to the Water JV. Devon accounts for the investment in the Water JV as an equity method investment. Devon's investment in the Water JV is shown

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

During 2023 and 2022, Devon made investments in Matterhorn. Matterhorn is a joint venture entity and was formed for the purpose of constructing a natural gas pipeline that will transport natural gas from the Permian Basin to the Katy, Texas area. Devon's investment in Matterhorn does not give it the ability to exercise significant influence over Matterhorn.

Disaggregation of Revenue

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,

 

 

 

2023

 

 

2022

 

 

2023

 

 

2022

 

Oil

 

$

2,106

 

 

$

2,970

 

 

$

4,249

 

 

$

5,376

 

Gas

 

 

122

 

 

 

557

 

 

 

335

 

 

 

864

 

NGL

 

 

265

 

 

 

573

 

 

 

588

 

 

 

1,035

 

Oil, gas and NGL sales

 

 

2,493

 

 

 

4,100

 

 

 

5,172

 

 

 

7,275

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Oil

 

 

735

 

 

 

952

 

 

 

1,465

 

 

 

1,728

 

Gas

 

 

123

 

 

 

322

 

 

 

275

 

 

 

531

 

NGL

 

 

179

 

 

 

422

 

 

 

377

 

 

 

757

 

Marketing and midstream revenues

 

 

1,037

 

 

 

1,696

 

 

 

2,117

 

 

 

3,016

 

Total revenues from contracts with customers

 

$

3,530

 

 

$

5,796

 

 

$

7,289

 

 

$

10,291

 
v3.23.2
Summary of Significant Accounting Policies (Tables)
 6 Months Ended
Jun. 30, 2023
Accounting Policies [Abstract]  
Schedule of Components of Investment

The following table presents Devon's investments.

 

 

 

 

 

Carrying Amount

 

Investments

 

% Interest

 

June 30, 2023

 

 

December 31, 2022

 

Catalyst

 

50%

 

$

324

 

 

$

339

 

Water JV

 

30%

 

 

212

 

 

 

—

 

Matterhorn

 

12.5%

 

 

90

 

 

 

54

 

Other

 

Various

 

 

49

 

 

 

47

 

      Total

 

 

 

$

675

 

 

$

440

 
Schedule of Revenue from Contracts with Customers

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

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2023

 

 

2022

 

 

2023

 

 

2022

 

Oil

 

$

2,106

 

 

$

2,970

 

 

$

4,249

 

 

$

5,376

 

Gas

 

 

122

 

 

 

557

 

 

 

335

 

 

 

864

 

NGL

 

 

265

 

 

 

573

 

 

 

588

 

 

 

1,035

 

Oil, gas and NGL sales

 

 

2,493

 

 

 

4,100

 

 

 

5,172

 

 

 

7,275

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Oil

 

 

735

 

 

 

952

 

 

 

1,465

 

 

 

1,728

 

Gas

 

 

123

 

 

 

322

 

 

 

275

 

 

 

531

 

NGL

 

 

179

 

 

 

422

 

 

 

377

 

 

 

757

 

Marketing and midstream revenues

 

 

1,037

 

 

 

1,696

 

 

 

2,117

 

 

 

3,016

 

Total revenues from contracts with customers

 

$

3,530

 

 

$

5,796

 

 

$

7,289

 

 

$

10,291

 
v3.23.2
Derivative Financial Instruments (Tables)
 6 Months Ended
Jun. 30, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule Of Open Derivative Positions

Commodity Derivatives

As of June 30, 2023, 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 2023

 

 

6,000

 

 

$

68.42

 

 

 

82,750

 

 

$

69.52

 

 

$

94.57

 

 

Q1-Q4 2024

 

 

1,492

 

 

$

68.42

 

 

 

21,486

 

 

$

60.00

 

 

$

85.66

 

 

 

 

 

Oil Basis Swaps

 

Period

 

Index

 

Volume
(Bbls/d)

 

 

Weighted Average
Differential to WTI
($/Bbl)

 

Q3-Q4 2023

 

Midland Sweet

 

 

66,500

 

 

$

1.11

 

Q1-Q4 2024

 

Midland Sweet

 

 

61,500

 

 

$

1.17

 

Q1-Q4 2025

 

Midland Sweet

 

 

49,000

 

 

$

0.96

 

As of June 30, 2023, 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 2023

 

 

108,000

 

 

$

3.30

 

 

 

171,000

 

 

$

3.64

 

 

$

7.44

 

Q1-Q4 2024

 

 

94,426

 

 

$

3.30

 

 

 

40,527

 

 

$

3.78

 

 

$

7.05

 

 

 

 

Natural Gas Basis Swaps

 

Period

 

Index

 

Volume
(MMBtu/d)

 

 

Weighted Average
Differential to
Henry Hub
($/MMBtu)

 

Q3-Q4 2023

 

El Paso Natural Gas

 

 

145,000

 

 

$

(1.58

)

Q3-Q4 2023

 

Houston Ship Channel

 

 

140,000

 

 

$

(0.19

)

Q3-Q4 2023

 

WAHA

 

 

70,000

 

 

$

(0.51

)

Q1-Q4 2024

 

El Paso Natural Gas

 

 

34,863

 

 

$

(0.91

)

Q1-Q4 2024

 

Houston Ship Channel

 

 

90,000

 

 

$

(0.25

)

Q1-Q4 2024

 

WAHA

 

 

44,973

 

 

$

(0.58

)
Schedule Of Derivative Financial Instruments Included In The Consolidated Balance Sheets

Financial Statement Presentation

All derivative financial instruments are recognized at their current fair value as either assets or liabilities in the consolidated balance sheets. Amounts related to contracts allowed to be netted upon payment subject to a master netting arrangement with the same counterparty are reported on a net basis in the consolidated balance sheets. The tables below present a summary of these positions as of June 30, 2023 and December 31, 2022.

 

June 30, 2023

 

 

December 31, 2022

 

 

 

 

Gross Fair Value

 

 

Amounts Netted

 

 

Net Fair Value

 

 

Gross Fair Value

 

 

Amounts Netted

 

 

Net Fair Value

 

 

Balance Sheet Classification

Commodity derivatives:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Short-term derivative asset

$

111

 

 

$

(20

)

 

$

91

 

 

$

138

 

 

$

(19

)

 

$

119

 

 

Other current assets

Long-term derivative asset

 

11

 

 

 

(1

)

 

 

10

 

 

 

12

 

 

 

—

 

 

 

12

 

 

Other long-term assets

Short-term derivative liability

 

(43

)

 

 

20

 

 

 

(23

)

 

 

(22

)

 

 

19

 

 

 

(3

)

 

Other current liabilities

Long-term derivative liability

 

(13

)

 

 

1

 

 

 

(12

)

 

 

—

 

 

 

—

 

 

 

—

 

 

Other long-term liabilities

  Total derivative asset

$

66

 

 

$

—

 

 

$

66

 

 

$

128

 

 

$

—

 

 

$

128

 

 

 
v3.23.2
Share-Based Compensation (Tables)
 6 Months Ended
Jun. 30, 2023
Share-Based Payment Arrangement [Abstract]  
Schedule Of Share-Based Compensation Expense Included In The Consolidated Statements Of Comprehensive Earnings

The table below presents the share-based compensation expense included in Devon’s accompanying consolidated statements of comprehensive earnings.

 

 

 

Six Months Ended June 30,

 

 

 

2023

 

 

2022

 

G&A

 

$

48

 

 

$

42

 

Exploration expenses

 

 

—

 

 

 

1

 

Total

 

$

48

 

 

$

43

 

Related income tax benefit

 

$

27

 

 

$

26

 

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

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

 

 

 

Restricted Stock Awards & Units

 

 

Performance Share Units

 

 

 

 

Awards/Units

 

 

Weighted
Average
Grant-Date
Fair Value

 

 

Units

 

 

Weighted
Average
Grant-Date
Fair Value

 

 

 

 

(Thousands, except fair value data)

 

 

Unvested at 12/31/22

 

 

5,788

 

 

$

29.11

 

 

 

1,841

 

 

$

31.33

 

 

Granted

 

 

1,224

 

 

$

62.95

 

 

 

743

 

 

$

51.38

 

 

Vested

 

 

(2,905

)

 

$

25.18

 

 

 

(1,037

)

 

$

27.89

 

 

Forfeited

 

 

(79

)

 

$

43.82

 

 

 

—

 

 

$

—

 

 

Unvested at 6/30/23

 

 

4,028

 

 

$

41.94

 

 

 

1,547

 

(1)

$

43.25

 

 

 

(1)
A maximum of 3.1 million common shares could be awarded based upon Devon’s final TSR ranking.
Summary Of Performance Share Units Grant-Date Fair Values And Their Related Assumptions

The following table presents the assumptions related to the performance share units granted in 2023, as indicated in the previous summary table. The grants in the previous summary table also include the impacts of performance share units granted in a prior year that vested higher than 100% of target due to Devon's TSR performance compared to our peers.

 

 

2023

 

 Grant-date fair value

 

$

81.70

 

 Risk-free interest rate

 

 

4.15

%

 Volatility factor

 

 

61.43

%

 Contractual term (years)

 

 

2.89

 
Summary of Unrecognized Compensation Cost And Weighted Average Period For Recognition

The following table presents a summary of the unrecognized compensation cost and the related weighted average recognition period associated with unvested awards and units as of June 30, 2023.

 

 

 

Restricted Stock

 

 

Performance

 

 

 

Awards/Units

 

 

Share Units

 

Unrecognized compensation cost

 

$

118

 

 

$

30

 

Weighted average period for recognition (years)

 

 

2.8

 

 

 

1.9

 
v3.23.2
Restructuring (Tables)
 6 Months Ended
Jun. 30, 2023
Restructuring and Related Activities [Abstract]  
Schedule Of The Activity And Balances Associated With Restructuring Liabilities

The following table summarizes Devon’s restructuring liabilities. The remaining liabilities primarily relate to an abandoned Canadian firm transportation agreement.

 

 

 

Other

 

 

Other

 

 

 

 

 

 

Current

 

 

Long-term

 

 

 

 

 

 

Liabilities

 

 

Liabilities

 

 

Total

 

Balance as of December 31, 2022

 

$

34

 

 

$

81

 

 

$

115

 

Changes related to prior years' restructurings

 

 

(19

)

 

 

(4

)

 

 

(23

)

Balance as of June 30, 2023

 

$

15

 

 

$

77

 

 

$

92

 

 

 

 

 

 

 

 

 

 

 

Balance as of December 31, 2021

 

$

38

 

 

$

111

 

 

$

149

 

Changes related to prior years' restructurings

 

 

(10

)

 

 

(12

)

 

 

(22

)

Balance as of June 30, 2022

 

$

28

 

 

$

99

 

 

$

127

 
v3.23.2
Other, Net (Tables)
 6 Months Ended
Jun. 30, 2023
Other Expenses [Abstract]  
Schedule of Other Expenses (Income)

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

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

2023

 

 

2022

 

 

2023

 

 

2022

 

Estimated future obligation under a performance guarantee

 

$

—

 

 

$

—

 

 

$

—

 

 

$

(96

)

Ukraine charitable pledge

 

 

—

 

 

 

—

 

 

 

—

 

 

 

20

 

Asset retirement obligation accretion

 

 

7

 

 

 

6

 

 

 

14

 

 

 

13

 

Other

 

 

3

 

 

 

4

 

 

 

1

 

 

 

12

 

Total

 

$

10

 

 

$

10

 

 

$

15

 

 

$

(51

)
v3.23.2
Income Taxes (Tables)
 6 Months Ended
Jun. 30, 2023
Income Tax Disclosure [Abstract]  
Schedule of Effective Income Tax Rate Reconciliation

The following table presents Devon’s total income tax expense 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,

 

 

 

2023

 

 

2022

 

 

2023

 

 

2022

 

Earnings before income taxes

 

$

897

 

 

$

2,495

 

 

$

2,121

 

 

$

3,757

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current income tax expense

 

$

80

 

 

$

252

 

 

$

221

 

 

$

355

 

Deferred income tax expense

 

 

119

 

 

 

305

 

 

 

199

 

 

 

469

 

Total income tax expense

 

$

199

 

 

$

557

 

 

$

420

 

 

$

824

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. statutory income tax rate

 

 

21

%

 

 

21

%

 

 

21

%

 

 

21

%

State income taxes

 

 

1

%

 

 

1

%

 

 

1

%

 

 

1

%

Other

 

 

0

%

 

 

0

%

 

 

(2

%)

 

 

0

%

Effective income tax rate

 

 

22

%

 

 

22

%

 

 

20

%

 

 

22

%
v3.23.2
Net Earnings Per Share (Tables)
 6 Months Ended
Jun. 30, 2023
Earnings Per Share [Abstract]  
Net Earnings (Loss) Per Share Computations from Continuing Operations

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

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2023

 

 

2022

 

 

2023

 

 

2022

 

Net earnings:

 

 

 

 

 

 

 

 

 

 

 

 

Net earnings

 

$

690

 

 

$

1,932

 

 

$

1,685

 

 

$

2,921

 

Attributable to participating securities

 

 

(3

)

 

 

(17

)

 

 

(11

)

 

 

(33

)

Basic and diluted earnings

 

$

687

 

 

$

1,915

 

 

$

1,674

 

 

$

2,888

 

Common shares:

 

 

 

 

 

 

 

 

 

 

 

 

Common shares outstanding - total

 

 

642

 

 

 

658

 

 

 

646

 

 

 

661

 

Attributable to participating securities

 

 

(4

)

 

 

(6

)

 

 

(5

)

 

 

(7

)

Common shares outstanding - basic

 

 

638

 

 

 

652

 

 

 

641

 

 

 

654

 

Dilutive effect of potential common shares issuable

 

 

1

 

 

 

2

 

 

 

2

 

 

 

2

 

Common shares outstanding - diluted

 

 

639

 

 

 

654

 

 

 

643

 

 

 

656

 

Net earnings per share:

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

1.08

 

 

$

2.94

 

 

$

2.61

 

 

$

4.42

 

Diluted

 

$

1.07

 

 

$

2.93

 

 

$

2.60

 

 

$

4.40

 
v3.23.2
Other Comprehensive Earnings (Loss) (Tables)
 6 Months Ended
Jun. 30, 2023
Other Comprehensive Income (Loss), Net of Tax [Abstract]  
Components Of Other Comprehensive Earnings (Loss)

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

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2023

 

 

2022

 

 

2023

 

 

2022

 

Pension and postretirement benefit plans:

 

 

 

 

 

 

 

 

 

 

 

 

Beginning accumulated pension and postretirement benefits

 

$

(115

)

 

$

(131

)

 

$

(116

)

 

$

(132

)

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

 

 

2

 

 

 

2

 

 

 

3

 

 

 

3

 

Income tax expense

 

 

(1

)

 

 

(1

)

 

 

(1

)

 

 

(1

)

Accumulated other comprehensive loss, net of tax

 

$

(114

)

 

$

(130

)

 

$

(114

)

 

$

(130

)

 

(1)
Recognition of net actuarial loss and prior service cost are included in the computation of net periodic benefit cost, which is a component of other, net in the accompanying consolidated statements of comprehensive earnings.
v3.23.2
Supplemental Information To Statements Of Cash Flows (Tables)
 6 Months Ended
Jun. 30, 2023
Supplemental Cash Flow Elements [Abstract]  
Schedule Of Supplemental Information To Statements Of Cash Flows

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2023

 

 

2022

 

 

2023

 

 

2022

 

Changes in assets and liabilities, net:

 

 

 

 

 

 

 

 

 

 

 

 

Accounts receivable

 

$

98

 

 

$

(346

)

 

$

248

 

 

$

(803

)

Other current assets

 

 

(12

)

 

 

(85

)

 

 

4

 

 

 

(21

)

Other long-term assets

 

 

(13

)

 

 

9

 

 

 

18

 

 

 

75

 

Accounts payable and revenues and royalties payable

 

 

(65

)

 

 

540

 

 

 

(230

)

 

 

787

 

Other current liabilities

 

 

(138

)

 

 

93

 

 

 

(141

)

 

 

101

 

Other long-term liabilities

 

 

(10

)

 

 

(13

)

 

 

(27

)

 

 

(84

)

Total

 

$

(140

)

 

$

198

 

 

$

(128

)

 

$

55

 

Supplementary cash flow data:

 

 

 

 

 

 

 

 

 

 

 

 

Interest paid

 

$

88

 

 

$

85

 

 

$

189

 

 

$

185

 

Income taxes paid

 

$

259

 

 

$

133

 

 

$

259

 

 

$

110

 
v3.23.2
Accounts Receivable (Tables)
 6 Months Ended
Jun. 30, 2023
Accounts Receivable, after Allowance for Credit Loss [Abstract]  
Schedule Of Components Of Accounts Receivable

Components of accounts receivable include the following:

 

 

 

June 30, 2023

 

 

December 31, 2022

 

Oil, gas and NGL sales

 

$

913

 

 

$

1,153

 

Joint interest billings

 

 

217

 

 

 

162

 

Marketing and midstream revenues

 

 

364

 

 

 

428

 

Other

 

 

32

 

 

 

33

 

Gross accounts receivable

 

 

1,526

 

 

 

1,776

 

Allowance for doubtful accounts

 

 

(7

)

 

 

(9

)

Net accounts receivable

 

$

1,519

 

 

$

1,767

 
v3.23.2
Property, Plant and Equipment (Tables)
 6 Months Ended
Jun. 30, 2023
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, 2023

 

 

December 31, 2022

 

Property and equipment:

 

 

 

 

 

 

Proved

 

$

44,711

 

 

$

42,734

 

Unproved and properties under development

 

 

1,528

 

 

 

1,548

 

Total oil and gas

 

 

46,239

 

 

 

44,282

 

Less accumulated DD&A

 

 

(28,922

)

 

 

(27,715

)

Oil and gas property and equipment, net

 

 

17,317

 

 

 

16,567

 

Other property and equipment

 

 

2,204

 

 

 

2,280

 

Less accumulated DD&A

 

 

(758

)

 

 

(741

)

Other property and equipment, net (1)

 

 

1,446

 

 

 

1,539

 

Property and equipment, net

 

$

18,763

 

 

$

18,106

 

 

(1)
$117 million and $109 million related to CDM in 2023 and 2022, respectively.
v3.23.2
Debt And Related Expenses (Tables)
 6 Months Ended
Jun. 30, 2023
Debt Instrument [Line Items]  
Schedule Of Debt Instruments and Balances See below for a summary of debt instruments and balances. The notes and debentures are senior, unsecured obligations of Devon.

 

 

 

June 30, 2023

 

 

December 31, 2022

 

8.25% due August 1, 2023

 

$

242

 

 

$

242

 

5.25% due September 15, 2024

 

 

472

 

 

 

472

 

5.85% due December 15, 2025

 

 

485

 

 

 

485

 

7.50% due September 15, 2027

 

 

73

 

 

 

73

 

5.25% due October 15, 2027

 

 

390

 

 

 

390

 

5.875% due June 15, 2028

 

 

325

 

 

 

325

 

4.50% due January 15, 2030

 

 

585

 

 

 

585

 

7.875% due September 30, 2031

 

 

675

 

 

 

675

 

7.95% due April 15, 2032

 

 

366

 

 

 

366

 

5.60% due July 15, 2041

 

 

1,250

 

 

 

1,250

 

4.75% due May 15, 2042

 

 

750

 

 

 

750

 

5.00% due June 15, 2045

 

 

750

 

 

 

750

 

Net premium on debentures and notes

 

 

82

 

 

 

103

 

Debt issuance costs

 

 

(32

)

 

 

(26

)

Total debt

 

$

6,413

 

 

$

6,440

 

Less amount classified as short-term debt

 

 

244

 

 

 

251

 

Total long-term debt

 

$

6,169

 

 

$

6,189

 
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,

 

 

 

2023

 

 

2022

 

 

2023

 

 

2022

 

Interest based on debt outstanding

 

$

96

 

 

$

93

 

 

$

189

 

 

$

185

 

Interest income

 

 

(15

)

 

 

(2

)

 

 

(32

)

 

 

(3

)

Other

 

 

(3

)

 

 

(7

)

 

 

(7

)

 

 

(13

)

Total net financing costs

 

$

78

 

 

$

84

 

 

$

150

 

 

$

169

 
v3.23.2
Leases (Tables)
 6 Months Ended
Jun. 30, 2023
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, 2023 and December 31, 2022.

 

 

 

June 30, 2023

 

 

December 31, 2022

 

 

 

Finance

 

 

Operating

 

 

Total

 

 

Finance

 

 

Operating

 

 

Total

 

Right-of-use assets

 

$

251

 

 

$

15

 

 

$

266

 

 

$

203

 

 

$

21

 

 

$

224

 

Lease liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current lease liabilities (1)

 

$

14

 

 

$

10

 

 

$

24

 

 

$

8

 

 

$

13

 

 

$

21

 

Long-term lease liabilities

 

 

295

 

 

 

4

 

 

 

299

 

 

 

249

 

 

 

8

 

 

 

257

 

Total lease liabilities

 

$

309

 

 

$

14

 

 

$

323

 

 

$

257

 

 

$

21

 

 

$

278

 

 

(1) Current lease liabilities are included in other current liabilities on the consolidated balance sheets.
v3.23.2
Asset Retirement Obligations (Tables)
 6 Months Ended
Jun. 30, 2023
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,

 

 

 

2023

 

 

2022

 

Asset retirement obligations as of beginning of period

 

$

529

 

 

$

485

 

Liabilities incurred

 

 

14

 

 

 

15

 

Liabilities settled and divested

 

 

(18

)

 

 

(9

)

Revision of estimated obligation

 

 

27

 

 

 

(35

)

Accretion expense on discounted obligation

 

 

14

 

 

 

13

 

Asset retirement obligations as of end of period

 

 

566

 

 

 

469

 

Less current portion

 

 

18

 

 

 

17

 

Asset retirement obligations, long-term

 

$

548

 

 

$

452

 
v3.23.2
Stockholders' Equity (Tables)
 6 Months Ended
Jun. 30, 2023
Stockholders' Equity Note [Abstract]  
Summary of Purchases of Common Stock The table below provides information regarding purchases of Devon’s common stock under the $3.0 billion share repurchase program (shares in thousands).

 

 

 

Total Number of
Shares Purchased

 

 

Dollar Value of
Shares Purchased

 

 

Average Price Paid
per Share

 

$3.0 Billion Plan

 

 

 

 

 

 

 

 

 

2021:

 

 

 

 

 

 

 

 

 

Fourth quarter

 

 

13,983

 

 

$

589

 

 

$

42.15

 

2022:

 

 

 

 

 

 

 

 

 

First quarter

 

 

3,979

 

 

 

230

 

 

$

57.74

 

Second quarter

 

 

5,052

 

 

 

318

 

 

$

63.07

 

Third quarter

 

 

1,875

 

 

 

113

 

 

$

59.99

 

Fourth quarter

 

 

802

 

 

 

57

 

 

$

71.69

 

2023:

 

 

 

 

 

 

 

 

 

First quarter

 

 

10,090

 

 

 

545

 

 

$

53.96

 

Second quarter

 

 

3,795

 

 

 

200

 

 

$

52.70

 

Total plan

 

 

39,576

 

 

$

2,052

 

 

$

51.86

 
Schedule of Dividends Payable The following table summarizes Devon’s fixed and variable dividends for the first six months of 2023 and 2022, respectively.

 

 

Fixed

 

 

Variable

 

 

Total

 

 

Rate Per Share

 

2023:

 

 

 

 

 

 

 

 

 

 

 

First quarter

$

133

 

 

$

463

 

 

$

596

 

 

$

0.89

 

Second quarter

 

128

 

 

 

334

 

 

 

462

 

 

$

0.72

 

Total year-to-date

$

261

 

 

$

797

 

 

$

1,058

 

 

 

 

2022:

 

 

 

 

 

 

 

 

 

 

 

First quarter

$

109

 

 

$

558

 

 

$

667

 

 

$

1.00

 

Second quarter

 

105

 

 

 

725

 

 

 

830

 

 

$

1.27

 

Total year-to-date

$

214

 

 

$

1,283

 

 

$

1,497

 

 

 

 
v3.23.2
Fair Value Measurements (Tables)
 6 Months Ended
Jun. 30, 2023
Fair Value Disclosures [Abstract]  
Schedule Of Carrying Value And Fair Value Measurement Information For Financial Assets And Liabilities Therefore, such financial assets and liabilities are not presented in the following table.

 

 

 

 

 

 

 

 

 

Fair Value Measurements Using:

 

 

 

Carrying

 

 

Total Fair

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

 

Amount

 

 

Value

 

 

Inputs

 

 

Inputs

 

 

Inputs

 

June 30, 2023 assets (liabilities):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash equivalents

 

$

2

 

 

$

2

 

 

$

2

 

 

$

—

 

 

$

—

 

Commodity derivatives

 

$

101

 

 

$

101

 

 

$

—

 

 

$

101

 

 

$

—

 

Commodity derivatives

 

$

(35

)

 

$

(35

)

 

$

—

 

 

$

(35

)

 

$

—

 

Debt

 

$

(6,413

)

 

$

(6,187

)

 

$

—

 

 

$

(6,187

)

 

$

—

 

Contingent earnout payments

 

$

65

 

 

$

65

 

 

$

—

 

 

$

—

 

 

$

65

 

December 31, 2022 assets (liabilities):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash equivalents

 

$

708

 

 

$

708

 

 

$

708

 

 

$

—

 

 

$

—

 

Commodity derivatives

 

$

131

 

 

$

131

 

 

$

—

 

 

$

131

 

 

$

—

 

Commodity derivatives

 

$

(3

)

 

$

(3

)

 

$

—

 

 

$

(3

)

 

$

—

 

Debt

 

$

(6,440

)

 

$

(6,231

)

 

$

—

 

 

$

(6,231

)

 

$

—

 

Contingent earnout payments

 

$

157

 

 

$

157

 

 

$

—

 

 

$

—

 

 

$

157

 
v3.23.2
Summary of Significant Accounting Policies (Narrative) (Details)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2023
USD ($)
a
Jun. 30, 2022
USD ($)
Jun. 30, 2023
USD ($)
a
Jun. 30, 2022
USD ($)
Summary Of Significant Accounting Policies [Line Items]        
Restricted cash $ 116 $ 157 $ 116 $ 157
Gain loss on disposition of assets $ 41 $ 14 $ 41 $ 15
Devon Energy Corporation [Member]        
Summary Of Significant Accounting Policies [Line Items]        
Voting interest in the joint venture legal entity 30.00%   30.00%  
Devon Energy Corporation [Member] | Waterbridge        
Summary Of Significant Accounting Policies [Line Items]        
Voting interest in the joint venture legal entity 70.00%   70.00%  
Water JV [Member]        
Summary Of Significant Accounting Policies [Line Items]        
Gain loss on disposition of assets $ 64      
WPX and Howard Energy Partners [Member]        
Summary Of Significant Accounting Policies [Line Items]        
Voting interest in the joint venture legal entity 50.00%   50.00%  
Catalyst [Member]        
Summary Of Significant Accounting Policies [Line Items]        
Area of land | a 50,000   50,000  
v3.23.2
Summary of Significant Accounting Policies - (Schedule of Components of Investments) (Details) - USD ($)
$ in Millions
Jun. 30, 2023
Dec. 31, 2022
Summary Of Significant Accounting Policies [Line Items]    
Total Investments $ 675 $ 440
Catalyst [Member]    
Summary Of Significant Accounting Policies [Line Items]    
Total Investments $ 324 339
Percentage Of Interest In Investments 50.00%  
Water JV [Member]    
Summary Of Significant Accounting Policies [Line Items]    
Total Investments $ 212  
Percentage Of Interest In Investments 30.00%  
Matterhorn [Member]    
Summary Of Significant Accounting Policies [Line Items]    
Total Investments $ 90 54
Percentage Of Interest In Investments 12.50%  
Other Member    
Summary Of Significant Accounting Policies [Line Items]    
Total Investments $ 49 $ 47
v3.23.2
Summary of Significant Accounting Policies (Schedule of Revenue from Contracts with Customers) (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2023
Jun. 30, 2022
Disaggregation Of Revenue [Line Items]        
Oil, gas and NGL sales $ 3,530 $ 5,796 $ 7,289 $ 10,291
Oil, Gas and NGL Sales [Member]        
Disaggregation Of Revenue [Line Items]        
Oil, gas and NGL sales 2,493 4,100 5,172 7,275
Oil, Gas and NGL Sales [Member] | Oil [Member]        
Disaggregation Of Revenue [Line Items]        
Oil, gas and NGL sales 2,106 2,970 4,249 5,376
Oil, Gas and NGL Sales [Member] | Gas [Member]        
Disaggregation Of Revenue [Line Items]        
Oil, gas and NGL sales 122 557 335 864
Oil, Gas and NGL Sales [Member] | NGL [Member]        
Disaggregation Of Revenue [Line Items]        
Oil, gas and NGL sales 265 573 588 1,035
Marketing and Midstream Revenues [Member]        
Disaggregation Of Revenue [Line Items]        
Oil, gas and NGL sales 1,037 1,696 2,117 3,016
Marketing and Midstream Revenues [Member] | Oil [Member]        
Disaggregation Of Revenue [Line Items]        
Oil, gas and NGL sales 735 952 1,465 1,728
Marketing and Midstream Revenues [Member] | Gas [Member]        
Disaggregation Of Revenue [Line Items]        
Oil, gas and NGL sales 123 322 275 531
Marketing and Midstream Revenues [Member] | NGL [Member]        
Disaggregation Of Revenue [Line Items]        
Oil, gas and NGL sales $ 179 $ 422 $ 377 $ 757
v3.23.2
Acquisition and Divestitures (Narrative) (Details)
$ in Millions
 1 Months Ended 3 Months Ended 6 Months Ended
Sep. 30, 2022
USD ($)
MMBoe
Jul. 31, 2022
USD ($)
MMBoe
Mar. 31, 2023
USD ($)
Mar. 31, 2022
USD ($)
Jun. 30, 2023
USD ($)
$ / bbl
$ / MMBTU
Jun. 30, 2022
Dec. 31, 2022
USD ($)
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations And Disposition [Line Items]              
Common Stock Shares Issued         $ 64   $ 65
Eagle Ford [Member]              
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations And Disposition [Line Items]              
Total estimated proved reserves | MMBoe 87            
Williston Basin              
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations And Disposition [Line Items]              
Total estimated proved reserves | MMBoe   66          
Other Current Assets [Member]              
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations And Disposition [Line Items]              
Contingent earnout payments         30    
Other Noncurrent Assets [Member]              
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations And Disposition [Line Items]              
Contingent earnout payments         35    
Barnett Shale [Member]              
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations And Disposition [Line Items]              
Contingent earnout payments         65    
Additional contingent earnout payment         $ 130    
Henry Hub gas price for contingent earnout payment upside | $ / MMBTU         2.75    
WTI oil price for contingent earnout payment upside | $ / bbl         50    
Contingent earnout payment period           The contingent payment period commenced on January 1, 2021 and has a term of four years.  
Eagle Ford Acquisition [Member]              
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations And Disposition [Line Items]              
Cash consideration $ 1,700            
Williston Acquisition [Member]              
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations And Disposition [Line Items]              
Cash consideration   $ 830          
Non Core Assets [Member]              
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations And Disposition [Line Items]              
Contingent earnout payments     $ 4 $ 4      
v3.23.2
Derivative Financial Instruments (Narrative) (Details)
Jun. 30, 2023
USD ($)
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Cash collateral posted $ 0
v3.23.2
Derivative Financial Instruments (Schedule Of Open Oil Derivative Positions) (Details)
 6 Months Ended
Jun. 30, 2023
$ / bbl
bbl
NYMEX West Texas Intermediate Price Swaps Oil Q1 Q4 2024  
Derivatives, Fair Value [Line Items]  
Volume Per Day (Bbls/d) | bbl 1,492
Weighted Average Price Swap 68.42
N Y M E X West Texas Intermediate Price Swaps Oil Q3-Q4 2023  
Derivatives, Fair Value [Line Items]  
Volume Per Day (Bbls/d) | bbl 6,000
Weighted Average Price Swap 68.42
NYMEX West Texas Intermediate Price Collars Oil Q3-Q4 2023 [Member]  
Derivatives, Fair Value [Line Items]  
Volume Per Day (Bbls/d) | bbl 82,750
Weighted Average Floor Price 69.52
Weighted Average Ceiling Price 94.57
NYMEX West Texas Intermediate Price Collars Oil Q1 Q4 2024 [Member]  
Derivatives, Fair Value [Line Items]  
Volume Per Day (Bbls/d) | bbl 21,486
Weighted Average Floor Price 60
Weighted Average Ceiling Price 85.66
Midland Sweet Q3 Q4 2023 [Member]  
Derivatives, Fair Value [Line Items]  
Volume Per Day (Bbls/d) | bbl 66,500
Oil Basis Swaps 1.11
Midland Sweet Q1 Q4 2024 [Member]  
Derivatives, Fair Value [Line Items]  
Volume Per Day (Bbls/d) | bbl 61,500
Oil Basis Swaps 1.17
Midland Sweet Q1 Q4 2025 [Member]  
Derivatives, Fair Value [Line Items]  
Volume Per Day (Bbls/d) | bbl 49,000
Oil Basis Swaps 0.96
v3.23.2
Derivative Financial Instruments (Schedule Of Open Natural Gas Derivative Positions) (Details)
 6 Months Ended
Jun. 30, 2023
MMBTU
$ / MMBTU
Ferc Henry Hub Price Swaps Natural Gas Q3 Q4 2023 [Member]  
Derivatives, Fair Value [Line Items]  
Volume Per Day (MMBtu/d) | MMBTU 108,000
Weighted Average Price Swap 3.3
FERC Henry Hub Price Swaps Natural Gas Q1 Q4 2024 [Member]  
Derivatives, Fair Value [Line Items]  
Volume Per Day (MMBtu/d) | MMBTU 94,426
Weighted Average Price Swap 3.3
FERC Henry Hub Price Collars Natural Gas Q1-Q4 2024 [Member]  
Derivatives, Fair Value [Line Items]  
Volume Per Day (MMBtu/d) | MMBTU 40,527
Weighted Average Floor Price 3.78
Weighted Average Ceiling Price 7.05
FERC Henry Hub Price Collars Natural Gas Q3 Q4 2023 [Member]  
Derivatives, Fair Value [Line Items]  
Volume Per Day (MMBtu/d) | MMBTU 171,000
Weighted Average Floor Price 3.64
Weighted Average Ceiling Price 7.44
El Paso Natural Gas Basis Swaps Q3-Q4 2023 [Member]  
Derivatives, Fair Value [Line Items]  
Volume Per Day (MMBtu/d) | MMBTU 145,000
Weighted Average Differential To Henry Hub (1.58)
ElPasoNaturalGasBasisSwapsQ1Q42024Member  
Derivatives, Fair Value [Line Items]  
Volume Per Day (MMBtu/d) | MMBTU 34,863
Weighted Average Differential To Henry Hub (0.91)
WAHA Natural Gas Basis Swaps Q3-Q4 2023 [Member]  
Derivatives, Fair Value [Line Items]  
Volume Per Day (MMBtu/d) | MMBTU 70,000
Weighted Average Differential To Henry Hub (0.51)
WAHA Natural Gas Basis Swaps Q1-Q4 2024 [Member]  
Derivatives, Fair Value [Line Items]  
Volume Per Day (MMBtu/d) | MMBTU 44,973
Weighted Average Differential To Henry Hub (0.58)
Houston Ship Channel Natural Gas Basis Swaps Q3 Q4 2023 [Member]  
Derivatives, Fair Value [Line Items]  
Volume Per Day (MMBtu/d) | MMBTU 140,000
Weighted Average Differential To Henry Hub (0.19)
HoustonShipChannelNaturalGasBasisSwapsQ1Q42024Member  
Derivatives, Fair Value [Line Items]  
Volume Per Day (MMBtu/d) | MMBTU 90,000
Weighted Average Differential To Henry Hub 0.25
v3.23.2
Derivative Financial Instruments (Schedule Of Derivative Financial Instruments Included In The Consolidated Balance Sheets) (Details) - USD ($)
$ in Millions
 6 Months Ended
Jun. 30, 2023
Dec. 31, 2022
Derivatives Fair Value [Line Items]    
Gross Fair Value $ 66 $ 128
Amounts Netted
Net Fair Value 66 128
Short-term Derivative Asset [Member]    
Derivatives Fair Value [Line Items]    
Gross Fair Value 111 138
Amounts Netted (20) 19
Net Fair Value $ 91 119
Balance Sheet Classification Other current assets  
Long-term Derivative Asset [Member]    
Derivatives Fair Value [Line Items]    
Gross Fair Value $ 11 12
Amounts Netted (1)
Net Fair Value $ 10 12
Balance Sheet Classification Other long-term assets  
Short-term Derivative Liability [Member]    
Derivatives Fair Value [Line Items]    
Gross Fair Value $ (43) (22)
Amounts Netted 20 (19)
Net Fair Value $ (23) (3)
Balance Sheet Classification Other current liabilities  
Long-term Derivative Liability [Member]    
Derivatives Fair Value [Line Items]    
Gross Fair Value $ (13)
Amounts Netted 1
Net Fair Value $ (12)
Balance Sheet Classification Other long-term liabilities  
v3.23.2
Share-Based Compensation (Additional Information) (Details)
 6 Months Ended
Jun. 30, 2023
Performance Shares [Member]  
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]  
Share-based Compensation Arrangement By Share-Based Payment Award Award Vesting Rights Percentage 100.00%
v3.23.2
Share-Based Compensation (Schedule Of Share-Based Compensation Expense Included In The Consolidated Statements Of Comprehensive Earnings) (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2023
Jun. 30, 2022
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]        
Share-based compensation expense     $ 48 $ 43
Exploration Expense $ 10 $ 10 13 12
Related income tax benefit     27 26
G&A [Member]        
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]        
Share-based compensation expense     48 42
Exploration Expenses [Member]        
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]        
Share-based compensation expense     $ 0 $ 1
v3.23.2
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, 2023
$ / shares
shares
Restricted Stock Awards [Member]  
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]  
Unvested at December 31, 2022 | shares 5,788
Granted, awards and units | shares 1,224
Vested, awards and units | shares (2,905)
Forfeited, awards and units | shares (79)
Unvested at June 30, 2023 share | shares 4,028
Unvested weighted average grant-date fair value at December 31, 2022 | $ / shares $ 29.11
Granted, weighted average grant-date fair value | $ / shares 62.95
Vested, weighted average grant-date fair value | $ / shares 25.18
Forfeited, weighted average grant-date fair value | $ / shares 43.82
Unvested weighted average grant-date fair value at June 30, 2023 | $ / shares $ 41.94
Performance Share Units [Member]  
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]  
Unvested at December 31, 2022 | shares 1,841
Granted, awards and units | shares 743
Vested, awards and units | shares (1,037)
Forfeited, awards and units | shares 0
Unvested at June 30, 2023 share | shares 1,547 [1]
Unvested weighted average grant-date fair value at December 31, 2022 | $ / shares $ 31.33
Granted, weighted average grant-date fair value | $ / shares 51.38
Vested, weighted average grant-date fair value | $ / shares 27.89
Forfeited, weighted average grant-date fair value | $ / shares 0
Unvested weighted average grant-date fair value at June 30, 2023 | $ / shares $ 43.25
[1] A maximum of 3.1 million common shares could be awarded based upon Devon’s final TSR ranking.
v3.23.2
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, 2023
shares
Performance Share Units [Member] | Maximum [Member]  
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]  
Maximum common shares that could be awarded based upon total shareholder return 3.1
v3.23.2
Share-Based Compensation (Summary Of Performance Share Units Grant-Date Fair Values And Their Related Assumptions) (Details)
 6 Months Ended
Jun. 30, 2023
$ / shares
Performance Share Units [Member]  
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]  
Grant-date fair value $ 51.38
Risk-free interest rate 4.15%
Volatility factor 61.43%
Contractual term (years) 2 years 10 months 20 days
Including Performance Factor Shares Granted [Member]  
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]  
Grant-date fair value $ 81.7
v3.23.2
Share-Based Compensation (Summary of Unrecognized Compensation Cost And Weighted Average Period For Recognition) (Details)
$ in Millions
 6 Months Ended
Jun. 30, 2023
USD ($)
Restricted Stock Awards [Member]  
Unrecognized Compensation And Weighted Average Recognition [Line Items]  
Unrecognized compensation cost $ 118
Weighted average period for recognition (years) 2 years 9 months 18 days
Performance Share Units [Member]  
Unrecognized Compensation And Weighted Average Recognition [Line Items]  
Unrecognized compensation cost $ 30
Weighted average period for recognition (years) 1 year 10 months 24 days
v3.23.2
Restructuring (Schedule Of The Activity And Balances Associated With Restructuring Liabilities) (Details) - USD ($)
$ in Millions
 6 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Restructuring Cost And Reserve [Line Items]    
Beginning balance $ 115 $ 149
Ending balance 92 127
Prior years' restructurings [Member]    
Restructuring Cost And Reserve [Line Items]    
Restructuring reserve activity (23) (22)
Other Current Liabilities [Member]    
Restructuring Cost And Reserve [Line Items]    
Beginning balance 34 38
Ending balance 15 28
Other Current Liabilities [Member] | Prior years' restructurings [Member]    
Restructuring Cost And Reserve [Line Items]    
Restructuring reserve activity (19) (10)
Other Long-Term Liabilities [Member]    
Restructuring Cost And Reserve [Line Items]    
Beginning balance 81 111
Ending balance 77 99
Other Long-Term Liabilities [Member] | Prior years' restructurings [Member]    
Restructuring Cost And Reserve [Line Items]    
Restructuring reserve activity $ (4) $ (12)
v3.23.2
Other, Net (Schedule of Other Expenses (Income)) (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2023
Jun. 30, 2022
Other Expenses [Abstract]        
Estimated future obligation under a performance guarantee $ 0 $ 0 $ 0 $ (96)
Ukraine charitable pledge 0 0 0 20
Asset retirement obligation accretion 7 6 14 13
Other (3) 4 (1) 12
Total $ 10 $ 10 $ 15 $ (51)
v3.23.2
Other, Net (Narrative) (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2023
Jun. 30, 2022
Other Expenses [Abstract]        
Estimated future obligation under a performance guarantee $ 0 $ 0 $ 0 $ (96)
Ukraine charitable pledge $ 0 $ 0 $ 0 $ 20
v3.23.2
Income Taxes (Schedule of Components of Income Tax Expense (Benefit)) (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2023
Jun. 30, 2022
Income Tax Disclosure [Abstract]        
Earnings before income taxes $ 897 $ 2,495 $ 2,121 $ 3,757
Current income tax expense 80 252 221 355
Deferred income tax expense 119 305 199 469
Total income tax expense (benefit) $ 199 $ 557 $ 420 $ 824
v3.23.2
Income Taxes (Schedule Of Effective Income Tax Rate Reconciliation) (Details)
 3 Months Ended 6 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2023
Jun. 30, 2022
Income Tax Disclosure [Abstract]        
U.S. statutory income tax rate 21.00% 21.00% 21.00% 21.00%
State income taxes 1.00% 1.00% 1.00% 1.00%
Other 0.00% 0.00% (2.00%) 0.00%
Effective income tax rate 22.00% 22.00% 20.00% 22.00%
v3.23.2
Income Taxes (Narrative) (Details) - USD ($)
$ in Millions
Dec. 31, 2022
Aug. 16, 2022
Income Tax [Line Items]    
Corporate Alternative Minimum Tax   15.00%
WPX Merger [Member]    
Income Tax [Line Items]    
Deferred income taxes $ 1  
v3.23.2
Net Earnings Per Share (Net Earnings (Loss) Per Share Computations from Continuing Operations) (Details) - USD ($)
$ / shares in Units, shares in Millions, $ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2023
Jun. 30, 2022
Net earnings:        
Net earnings $ 690 $ 1,932 $ 1,685 $ 2,921
Attributable to participating securities (3) (17) (11) (33)
Basic and diluted earnings $ 687 $ 1,915 $ 1,674 $ 2,888
Common shares:        
Common shares outstanding - total 642 658 646 661
Attributable to participating securities (4) (6) (5) (7)
Common shares outstanding - basic 638 652 641 654
Dilutive effect of potential common shares issuable 1 2 2 2
Common shares outstanding - diluted 639 654 643 656
Net earnings per share:        
Basic $ 1.08 $ 2.94 $ 2.61 $ 4.42
Diluted $ 1.07 $ 2.93 $ 2.6 $ 4.4
v3.23.2
Other Comprehensive Earnings (Loss) (Components Of Other Comprehensive Earnings (Loss)) (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2023
Jun. 30, 2022
Mar. 31, 2023
Dec. 31, 2022
Pension and postretirement benefit plans:            
Beginning accumulated pension and postretirement benefits $ (115) $ (131) $ (116) $ (132)    
Recognition of net actuarial loss and prior service cost in earnings [1] 2 2 3 3    
Income tax benefit (expense) (1) (1) [1] (1) (1) [1]    
Accumulated other comprehensive loss $ (114) $ (130) $ (114) $ (130) $ (114) $ (116)
[1] Recognition of net actuarial loss and prior service cost are included in the computation of net periodic benefit cost, which is a component of other, net in the accompanying consolidated statements of comprehensive earnings.
v3.23.2
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, 2023
Jun. 30, 2022
Jun. 30, 2023
Jun. 30, 2022
Changes in assets and liabilities, net:        
Accounts receivable $ 98 $ (346) $ 248 $ (803)
Other current assets (12) (85) 4 (21)
Other long-term assets (13) 9 18 75
Accounts payable and revenues and royalties payable (65) 540 (230) 787
Other current liabilities (138) 93 (141) 101
Other long-term liabilities (10) (13) (27) (84)
Total (140) 198 (128) 55
Supplementary cash flow data:        
Interest paid 88 85 189 185
Income taxes refunded $ 259 $ 133 $ 259 $ 110
v3.23.2
Supplemental Information To Statements Of Cash Flows (Narrative) (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2023
Jun. 30, 2023
Supplemental Cash Flow [Line Items]    
Non-cash investing activities contributions of other propoerty and equipment $ 150 $ 150
v3.23.2
Accounts Receivable (Schedule Of Components Of Accounts Receivable) (Details) - USD ($)
$ in Millions
Jun. 30, 2023
Dec. 31, 2022
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Joint interest billings $ 217 $ 162
Other 32 33
Gross accounts receivable 1,526 1,776
Allowance for doubtful accounts (7) (9)
Net accounts receivable 1,519 1,767
Oil, Gas and NGL Sales [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Gross accounts receivable 913 1,153
Marketing and Midstream Revenues [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Gross accounts receivable $ 364 $ 428
v3.23.2
Property, Plant and Equipment (Summary of Property and Equipment, net) (Details) - USD ($)
$ in Millions
Jun. 30, 2023
Dec. 31, 2022
Property and equipment:    
Proved $ 44,711 $ 42,734
Unproved and properties under development 1,528 1,548
Total oil and gas 46,239 44,282
Less accumulated DD&A (28,922) (27,715)
Oil and gas property and equipment, net 17,317 16,567
Other property and equipment 2,204 2,280
Less accumulated DD&A (758) (741)
Other property and equipment, net [1] 1,446 1,539
Total property and equipment, net $ 18,763 $ 18,106
[1] $117 million and $109 million related to CDM in 2023 and 2022, respectively.
v3.23.2
Property, Plant and Equipment (Summary of Property and Equipment, net) (Parenthetical) (Details) - USD ($)
$ in Millions
Jun. 30, 2023
Dec. 31, 2022
Property Plant And Equipment [Line Items]    
Other property and equipment, net [1] $ 1,446 $ 1,539
CDM [Member]    
Property Plant And Equipment [Line Items]    
Other property and equipment, net $ 117 $ 109
[1] $117 million and $109 million related to CDM in 2023 and 2022, respectively.
v3.23.2
Debt And Related Expenses (Schedule Of Debt Instruments and Balances) (Details) - USD ($)
$ in Millions
 6 Months Ended
Jun. 30, 2023
Dec. 31, 2022
Debt Instrument [Line Items]    
Net premium (discount) on debentures and notes $ 82 $ 103
Debt issuance costs (32) (26)
Total debt 6,413 6,440
Less amount classified as short-term debt 244 251
Long-term debt 6,169 6,189
8.25% due August 1, 2023 [Member]    
Debt Instrument [Line Items]    
Long-term debt, gross $ 242 $ 242
Charge on early retirement of debt, cash retirement costs 8.25% 8.25%
Debt, maturity date Aug. 01, 2023  
5.25% due September 15, 2024 [Member]    
Debt Instrument [Line Items]    
Long-term debt, gross $ 472 $ 472
Charge on early retirement of debt, cash retirement costs 5.25% 5.25%
Debt, maturity date Sep. 15, 2024  
5.85% due December 15, 2025 [Member]    
Debt Instrument [Line Items]    
Long-term debt, gross $ 485 $ 485
Charge on early retirement of debt, cash retirement costs 5.85% 5.85%
Debt, maturity date Dec. 15, 2025  
7.50% due September 15, 2027 [Member]    
Debt Instrument [Line Items]    
Long-term debt, gross $ 73 $ 73
Charge on early retirement of debt, cash retirement costs 7.50% 7.50%
Debt, maturity date Sep. 15, 2027  
5.25% due October 15, 2027 [Member]    
Debt Instrument [Line Items]    
Long-term debt, gross $ 390 $ 390
Charge on early retirement of debt, cash retirement costs 5.25% 5.25%
Debt, maturity date Oct. 15, 2027  
5.875% due June 15, 2028 [Member]    
Debt Instrument [Line Items]    
Long-term debt, gross $ 325 $ 325
Charge on early retirement of debt, cash retirement costs 5.875% 5.875%
Debt, maturity date Jun. 15, 2028  
4.50% due January 15, 2030 [Member]    
Debt Instrument [Line Items]    
Long-term debt, gross $ 585 $ 585
Charge on early retirement of debt, cash retirement costs 4.50% 4.50%
Debt, maturity date Jan. 15, 2030  
7.875% due September 30, 2031 [Member]    
Debt Instrument [Line Items]    
Long-term debt, gross $ 675 $ 675
Charge on early retirement of debt, cash retirement costs 7.875% 7.875%
Debt, maturity date Sep. 30, 2031  
7.95% due April 15, 2032 [Member]    
Debt Instrument [Line Items]    
Long-term debt, gross $ 366 $ 366
Charge on early retirement of debt, cash retirement costs 7.95% 7.95%
Debt, maturity date Apr. 15, 2032  
5.60% due July 15, 2041 [Member]    
Debt Instrument [Line Items]    
Long-term debt, gross $ 1,250 $ 1,250
Charge on early retirement of debt, cash retirement costs 5.60% 5.60%
Debt, maturity date Jul. 15, 2041  
4.75% due May 15, 2042 [Member]    
Debt Instrument [Line Items]    
Long-term debt, gross $ 750 $ 750
Charge on early retirement of debt, cash retirement costs 4.75% 4.75%
Debt, maturity date May 15, 2042  
5.00% due June 15, 2045 [Member]    
Debt Instrument [Line Items]    
Long-term debt, gross $ 750 $ 750
Charge on early retirement of debt, cash retirement costs 5.00% 5.00%
Debt, maturity date Jun. 15, 2045  
v3.23.2
Debt And Related Expenses (Narrative) (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Aug. 01, 2023
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2023
Jun. 30, 2022
Dec. 31, 2022
Debt Instrument [Line Items]            
Interest Income. Received   $ 15 $ 2 $ 32 $ 3  
Senior Credit Facility [Member]            
Debt Instrument [Line Items]            
Credit Facility, borrowing capacity   3,000   3,000    
Outstanding credit facility borrowings   $ 0   $ 0    
Debt-to-capitalization ratio   0.231   0.231    
Outstanding letters of credit   $ 2   $ 2    
Senior Credit Facility [Member] | Maximum [Member]            
Debt Instrument [Line Items]            
Debt-to-capitalization ratio   0.65   0.65    
8.25% due August 1, 2023 [Member]            
Debt Instrument [Line Items]            
Debt interest rate, stated percentage   8.25%   8.25%   8.25%
8.25% due August 1, 2023 [Member] | Senior Notes [Member] | Subsequent Event            
Debt Instrument [Line Items]            
Repayments of long-term debt $ 242          
Debt interest rate, stated percentage 8.25%          
v3.23.2
Debt And Related Expenses (Schedule of Net Financing Cost Components) (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2023
Jun. 30, 2022
Debt Disclosure [Abstract]        
Interest based on debt outstanding $ 96 $ 93 $ 189 $ 185
Interest income (15) (2) (32) (3)
Other (3) (7) (7) (13)
Total net financing costs $ 78 $ 84 $ 150 $ 169
v3.23.2
Leases (Schedule of Right-of-use Assets and Lease Liabilities) (Details) - USD ($)
$ in Millions
Jun. 30, 2023
Dec. 31, 2022
Leases [Abstract]    
Right-of-use assets, finance lease $ 251 $ 203
Finance lease liabilities:    
Current lease liabilities, finance lease [1] 14 8
Long-term lease liabilities, finance lease 295 249
Total lease liabilities, finance lease 309 257
Right-of-use assets, operating lease 15 21
Operating lease liabilities:    
Current lease liabilities, operating lease [1] 10 13
Long-term lease liabilities, operating lease 4 8
Total lease liabilities, operating lease 14 21
Right-of-use assets 266 224
Lease liabilities:    
Current lease liabilities [1] 24 21
Long-term lease liabilities 299 257
Total lease liabilities $ 323 $ 278
[1] Current lease liabilities are included in other current liabilities on the consolidated balance sheets.
v3.23.2
Asset Retirement Obligations (Summary Of Changes In Asset Retirement Obligations) (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2023
Jun. 30, 2022
Dec. 31, 2022
Asset Retirement Obligation Disclosure [Abstract]          
Asset retirement obligations as of beginning of period     $ 529 $ 485  
Liabilities incurred and assumed through acquisitions     14 15  
Liabilities settled and divested     (18) (9)  
Revision of estimated obligation     27 (35)  
Accretion expense on discounted obligation $ 7 $ 6 14 13  
Asset retirement obligations as of end of period 566 469 566 469  
Less current portion 18 17 18 17  
Asset retirement obligations, long-term $ 548 $ 452 $ 548 $ 452 $ 511
v3.23.2
Asset Retirement Obligations (Narrative) (Details) - USD ($)
$ in Millions
 6 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Asset Acquisition [Line Items]    
Revision of estimated obligation $ 27 $ (35)
v3.23.2
Stockholders' Equity (Narrative) (Details) - USD ($)
$ / shares in Units, $ in Millions
 1 Months Ended 3 Months Ended 6 Months Ended
Nov. 02, 2021
May 31, 2023
May 31, 2022
Mar. 31, 2023
Mar. 31, 2022
Jun. 30, 2023
Jun. 30, 2022
Aug. 31, 2023
Stockholders Equity [Abstract]                
Dividends rate per share       $ 0.89 $ 1 $ 0.72 $ 1.27  
Dividends payable, year           2023    
Fixed Dividend [Member]                
Stockholders Equity [Abstract]                
Dividends rate per share       $ 0.2 $ 0.16      
Subsequent Event                
Stockholders Equity [Abstract]                
Dividend payable, per share               $ 0.49
Dividend payable amount               $ 314.0
Subsequent Event | Fixed Dividend [Member]                
Stockholders Equity [Abstract]                
Dividend payable, per share               $ 0.2
Subsequent Event | Variable Dividend [Member]                
Stockholders Equity [Abstract]                
Dividend payable, per share               $ 0.29
Share Repurchase Program [Member]                
Stockholders Equity [Abstract]                
Repurchase of common stock $ 1,000.0 $ 3.0 $ 2,000.0          
Repurchase program expiration date Dec. 31, 2022   May 04, 2023          
Three Billion Dollar Share Repurchase Program Open                
Stockholders Equity [Abstract]                
Repurchase of common stock   $ 3.0            
Repurchase program expiration date   Dec. 31, 2024            
v3.23.2
Stockholders' Equity (Summary of Purchases of Common Stock) (Details) - Share Repurchase Program Open [Member] - USD ($)
$ / shares in Units, shares in Thousands, $ in Millions
 3 Months Ended 21 Months Ended
Jun. 30, 2023
Mar. 31, 2023
Dec. 31, 2022
Sep. 30, 2022
Jun. 30, 2022
Mar. 31, 2022
Dec. 31, 2021
Jun. 30, 2023
Stockholders Equity [Line Items]                
Total Number of Shares Purchased 3,795 10,090 802 1,875 5,052 3,979 13,983 39,576
Dollar Value of Shares Purchased $ 200 $ 545 $ 57 $ 113 $ 318 $ 230 $ 589 $ 2,052
Average Price Paid per Share $ 52.7 $ 53.96 $ 71.69 $ 59.99 $ 63.07 $ 57.74 $ 42.15 $ 51.86
v3.23.2
Stockholders' Equity (Summary Of Dividends Paid On Common Stock) (Details) - USD ($)
$ / shares in Units, $ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2023
Mar. 31, 2023
Jun. 30, 2022
Mar. 31, 2022
Jun. 30, 2023
Jun. 30, 2022
Stockholders Equity [Line Items]            
Dividends amount $ 462 $ 596 $ 830 $ 667    
Dividends rate per share   $ 0.89   $ 1 $ 0.72 $ 1.27
Total year to date 1,058   1,497   $ 1,058 $ 1,497
Fixed Dividend [Member]            
Stockholders Equity [Line Items]            
Dividends amount 128 $ 133 105 $ 109    
Dividends rate per share   $ 0.2   $ 0.16    
Total year to date 261   214   261 214
Variable Dividend [Member]            
Stockholders Equity [Line Items]            
Dividends amount 334 $ 463 725 $ 558    
Total year to date $ 797   $ 1,283   $ 797 $ 1,283
v3.23.2
Fair Value Measurements (Schedule Of Carrying Value And Fair Value Measurement Information For Financial Assets And Liabilities) (Details) - USD ($)
$ in Millions
Jun. 30, 2023
Dec. 31, 2022
Carrying Amount [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash equivalents $ 2 $ 708
Debt (6,413) (6,440)
Contingent earnout payments 65 157
Carrying Amount [Member] | Commodity Derivatives [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivatives, assets 101 131
Derivatives, liabilities (35) (3)
Total Fair Value [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash equivalents 2 708
Debt (6,187) (6,231)
Contingent earnout payments 65 157
Total Fair Value [Member] | Commodity Derivatives [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivatives, assets 101 131
Derivatives, liabilities (35) (3)
Level 1 Inputs [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash equivalents 2 708
Level 2 Inputs [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Debt (6,187) (6,231)
Level 2 Inputs [Member] | Commodity Derivatives [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivatives, assets 101 131
Derivatives, liabilities (35) (3)
Level 3 Inputs [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Contingent earnout payments $ 65 $ 157