DEVON ENERGY CORP/DE, PRE 14A filed on 4/6/2023
Proxy Statement - Notice of Shareholders Meeting (preliminary)
v3.23.1
Cover
12 Months Ended
Dec. 31, 2022
Document Information [Line Items]  
Document Type PRE 14A
Amendment Flag false
Entity Information [Line Items]  
Entity Registrant Name DEVON ENERGY CORP/DE
Entity Central Index Key 0001090012
v3.23.1
Pay vs Performance Disclosure
12 Months Ended
Jan. 06, 2021
Dec. 31, 2022
USD ($)
Dec. 31, 2021
Dec. 31, 2021
USD ($)
Dec. 31, 2020
USD ($)
Pay vs Performance Disclosure [Table]          
Pay vs Performance [Table Text Block]  
 
PAY VERSUS PERFORMANCE DISCLOSURE
As required by Item 402(v) of Regulation
S-K,
we are providing the following information regarding the relationship between executive compensation and our financial performance for each of the last three completed calendar years. “Compensation actually paid” includes payments made to executives during the applicable year such as salary, performance bonus, and various benefits. The SEC’s valuation methods for this section emphasize the changes in fair value of equity awards under applicable financial accounting standards, and as such, references to “compensation actually paid” below reflects the change in equity award values on the applicable calculation dates and does not necessarily reflect what our NEOs received
year-to-year.
This is highlighted by the 2020 values in the Pay Versus Performance (PvP) Tables 1 and Table 2 below, where the “compensation actually paid” numbers are negative. The three PvP tables
below
, along with three PvP charts and their respective footnotes, are Devon’s disclosure to the new SEC requirements.
PvP Table 1: Named Executive Officer “Compensation Actually Paid”
1,10
 
Year   SCT Total
CEO
2,4
    “Compensation
Actually Paid”
to CEO
3,4
    Average SCT
Total for Other
NEOs
2,5
    Average
“Compensation
Actually Paid”
to Other
NEOs
3,5
    Value of a
$100
Investment
in Devon
Based on
Cumulative
TSR
6,10
    Value of a
$100
Investment
in the Peer
Group
Based on
Cumulative
TSR
6,7,10
   
Post-Tax

Net Income
8,10
    CROCE
9,10
 
2022
  $ 14,531      $ 30,817     $ 5,379      $ 8,670     $ 285     $ 143      $
6.031B
      62
2021-Muncrief
  $ 11,915      $ 39,748     $ 4,596      $ 12,245     $ 191     $ 121      $ 2.808B       39
2021-Hager
    $3,391      $ 31,575  
2020
  $ 13,355       ($4,994   $ 4,536       ($444   $ 65     $ 58     ($ 2.688B     27
 
1
 
Dollar amounts are shown in thousands, except where otherwise indicated. Amounts in parentheses are negative. References to our CEO are also references to our principal executive officer (“PEO”) for purposes of this section.
 
2
 
“SCT Total” is the Summary Compensation Table’s total for the applicable year.
 
3
 
The calculation for “Compensation Actually Paid” is shown in “PvP Table 3”.
 
4
 
The CEO for each year is as follows:
 
 
2022: Richard E. Muncrief
 
 
2021: Richard E. Muncrief, from January 7
th
to the end of the year; David A. Hager, from January 1
st
to 6
th
. After January 6
th
, Mr. Hager assumed the position of Executive Chair of the Board of Directors until his retirement in early 2023.
 
 
2020: David A. Hager
 
5
 
The other NEOs for each year are as follows:
 
 
2022: Dennis C. Cameron, Clay M. Gaspar, David G. Harris, and Jeffrey L. Ritenour.
 
 
2021: Tana K. Cashion, Clay M. Gaspar, David G. Harris, Jeffrey L. Ritenour, and Lyndon C. Taylor.
 
 
2020: Tana K. Cashion, David G. Harris, Jeffrey L. Ritenour, and Lyndon C. Taylor.
 
6
 
“TSR” is Total Shareholder Return including reinvested dividends. It is a measure of finance performance indicating the growth or decline in an investment’s value over a specified period. For 2022, “Cumulative TSR” is measured from the last trading day of 2019 to the last trading day of 2022; for 2021, the range is the last trading day of 2019 to the last trading day of 2021; and for 2020, the range is the last trading day of 2019 to the last trading day of 2020. For Devon, Cumulative TSR for 2022, 2021, and 2020 was 185%, 91%, and
-35%,
respectively. For the Peer Group, Cumulative TSR was 43%, 21%, and
-42%
for the same periods.
 
7
 
The 2022 peer group is the SPDR S&P Oil & Gas Exploration & Production ETF (Symbol: XOP). The 2021 peer group is comprised of APA Corporation, ConocoPhillips, Continental Resources, Diamondback Energy, Inc., EOG Resources, Inc., Marathon Oil Corporation, Ovintiv, Inc., Pioneer Natural Resources Company, and the S&P Midcap 400 Index. Cimarex Energy Co. is excluded from this Cumulative TSR calculation due to its subsequent acquisition, and the S&P Midcap 400 is excluded due to incomparability on a market capitalized basis. The 2020 peer group was comprised of APA Corporation, Chesapeake Energy Corporation, Cimarex Energy Co, Continental Resources, Inc., EOG Resources, Inc., Marathon Oil Corporation, Occidental Petroleum Corporation, Ovintiv, Inc., and Pioneer Natural Resources Company. Chesapeake Energy Corporation is excluded from this Cumulative TSR calculation due to the impact of their subsequent bankruptcy filing, and Cimarex Energy Co. is excluded due to the company’s subsequent acquisition.
 
8
 
Post-Tax Net Income is disclosed in the Comprehensive Statements of Consolidated Earnings of Devon’s annual report as “Comprehensive earnings (loss) attributable to Devon.
 
9
 
Cash Return on Capital Employed (CROCE) is an important financial measure used by the Company to link “compensation actually paid” to Company performance because of the importance of capital efficiency to successful operations in the oil and gas exploration and production industry. In Devon’s annual performance scorecard published in the “Annual Performance Bonus” section of this Proxy Statement (and the same section title in the 2021 and 2020 proxy statements), CROCE was weighted as the joint-highest measure of performance on preset annual goals. The Company’s other important financial measures used to link “compensation actually paid” to Company performance are used to calculate Devon’s Annual Performance Bonus and can be found on page 43.
 
10
 
The PvP Charts below illustrate the relationship between various performance measures and “Compensation Actually Paid.”
     
Company Selected Measure Name   Cash Return on Capital Employed (CROCE)      
Named Executive Officers, Footnote [Text Block]  
 
5
 
The other NEOs for each year are as follows:
 
 
2022: Dennis C. Cameron, Clay M. Gaspar, David G. Harris, and Jeffrey L. Ritenour.
 
 
2021: Tana K. Cashion, Clay M. Gaspar, David G. Harris, Jeffrey L. Ritenour, and Lyndon C. Taylor.
 
 
2020: Tana K. Cashion, David G. Harris, Jeffrey L. Ritenour, and Lyndon C. Taylor.
     
Peer Group Issuers, Footnote [Text Block]   For the Peer Group, Cumulative TSR was 43%, 21%, and
-42%
for the same periods.
     
Adjustment To PEO Compensation, Footnote [Text Block]  
 
 
 
 
 
 
 
   
Subtract
(-)
 
 
   
Subtract
(-)
 
 
   
Add
(+)
 
 
   
Add
(+)
 
 
   
Equals
(=)
 
 
Year
 
Executive
 
 
SCT Total
Compensation
 
 
   

 
Fair Value of
Stock-Based
Awards Granted
During the Year
 
 
 
 
   
 
Change in
Pension Value
for the Year
 
 
 
   




 
The difference
in the fair value
from start to
end of the year
for all stock
awards
outstanding
4
 
 
 
 
 
 
 
   




 
Pension Service
Cost and Cost
of Additional
Pension
Benefits Due to
Plan
Amendment
 
 
 
 
 
 
 
   
“Compensation
Actually Paid”
 
 
2022  
  CEO     $14,531       $10,405       $0        $26,691       $0        $30,817  
  Other NEO Average     $5,379       $3,717       $0        $7,008       $0        $8,670  
2021  
 
CEO-Muncrief
    $11,915       $8,311       $0        $36,144       $0        $39,748  
 
CEO-Hager
    $3,391       $712       $0        $28,897       $0        $31,575  
  Other NEO Average     $4,596       $1,881       $0        $9,530       $0        $12,245  
2020  
  CEO     $13,355       $9,509       $0       ($8,840     $0       ($4,994
  Other NEO Average     $4,536       $2,405       $1,038       ($1,904     $368       ($444
     
Non-PEO NEO Average Total Compensation Amount   $ 5,379   $ 4,596 $ 4,536
Non-PEO NEO Average Compensation Actually Paid Amount   $ 8,670   12,245 (444)
Adjustment to Non-PEO NEO Compensation Footnote [Text Block]  
 
 
 
 
 
 
 
   
Subtract
(-)
 
 
   
Subtract
(-)
 
 
   
Add
(+)
 
 
   
Add
(+)
 
 
   
Equals
(=)
 
 
Year
 
Executive
 
 
SCT Total
Compensation
 
 
   

 
Fair Value of
Stock-Based
Awards Granted
During the Year
 
 
 
 
   
 
Change in
Pension Value
for the Year
 
 
 
   




 
The difference
in the fair value
from start to
end of the year
for all stock
awards
outstanding
4
 
 
 
 
 
 
 
   




 
Pension Service
Cost and Cost
of Additional
Pension
Benefits Due to
Plan
Amendment
 
 
 
 
 
 
 
   
“Compensation
Actually Paid”
 
 
2022  
  CEO     $14,531       $10,405       $0        $26,691       $0        $30,817  
  Other NEO Average     $5,379       $3,717       $0        $7,008       $0        $8,670  
2021  
 
CEO-Muncrief
    $11,915       $8,311       $0        $36,144       $0        $39,748  
 
CEO-Hager
    $3,391       $712       $0        $28,897       $0        $31,575  
  Other NEO Average     $4,596       $1,881       $0        $9,530       $0        $12,245  
2020  
  CEO     $13,355       $9,509       $0       ($8,840     $0       ($4,994
  Other NEO Average     $4,536       $2,405       $1,038       ($1,904     $368       ($444
     
Compensation Actually Paid vs. Total Shareholder Return [Text Block]   LOGO      
Compensation Actually Paid vs. Net Income [Text Block]   LOGO      
Compensation Actually Paid vs. Company Selected Measure [Text Block]   LOGO      
Total Shareholder Return Vs Peer Group [Text Block]   LOGO      
Tabular List [Table Text Block]  
Other Important Measures
1
         
Free Cash Flow
(FCF)
  
Emissions
Reduction
   ESG & Community Engagement    Total Oil & Gas Production    Total Capital Expenditures
 
     
Total Shareholder Return Amount   $ 285   191 65
Peer Group Total Shareholder Return Amount   143   121 58
Net Income (Loss)   $ 6,031,000,000.000   $ 2,808,000,000 $ (2,688,000,000)
Company Selected Measure Amount   0.62   0.39 0.27
Measure [Axis]: 1          
Pay vs Performance Disclosure [Table]          
Measure Name   Free Cash Flow      
Measure [Axis]: 2          
Pay vs Performance Disclosure [Table]          
Measure Name   EmissionsReduction      
Measure [Axis]: 3          
Pay vs Performance Disclosure [Table]          
Measure Name   ESG & Community Engagement      
Measure [Axis]: 4          
Pay vs Performance Disclosure [Table]          
Measure Name   Total Oil & Gas Production      
Measure [Axis]: 5          
Pay vs Performance Disclosure [Table]          
Measure Name   Total Capital Expenditures      
Muncrief [Member]          
Pay vs Performance Disclosure [Table]          
PEO Total Compensation Amount   $ 14,531   $ 11,915  
PEO Actually Paid Compensation Amount   $ 30,817   39,748  
PEO Name   Richard E. Muncrief Richard E. Muncrief    
Hager [Member]          
Pay vs Performance Disclosure [Table]          
PEO Total Compensation Amount       3,391 $ 13,355
PEO Actually Paid Compensation Amount       31,575 $ (4,994)
PEO Name Mr. Hager       David A. Hager
PEO [Member] | Muncrief [Member] | Fair Value Of Stock Based Awards Granted [Member]          
Pay vs Performance Disclosure [Table]          
Adjustment to Compensation Amount   $ (10,405)   (8,311)  
PEO [Member] | Muncrief [Member] | Change in Pension Value [Member]          
Pay vs Performance Disclosure [Table]          
Adjustment to Compensation Amount   0   0  
PEO [Member] | Muncrief [Member] | The Difference In The Fair Value From Start To End Of The Year For All Stock Awards Outstanding [Member]          
Pay vs Performance Disclosure [Table]          
Adjustment to Compensation Amount   26,691   36,144  
PEO [Member] | Muncrief [Member] | Pension Service Cost and Cost Of Additional Pension Benefits Due To Plan Amendment [Member]          
Pay vs Performance Disclosure [Table]          
Adjustment to Compensation Amount   0   0  
PEO [Member] | Muncrief [Member] | Year End Fair Value Awards Made During Year [Member]          
Pay vs Performance Disclosure [Table]          
Adjustment to Compensation Amount   13,005   18,136  
PEO [Member] | Muncrief [Member] | Awards Outstanding During Year [Member]          
Pay vs Performance Disclosure [Table]          
Adjustment to Compensation Amount   15,003   24,292  
PEO [Member] | Muncrief [Member] | Awards Vesting During Year [Member]          
Pay vs Performance Disclosure [Table]          
Adjustment to Compensation Amount   9,088   2,027  
PEO [Member] | Muncrief [Member] | Grant Date Fair Value Awards Made During Year [Member]          
Pay vs Performance Disclosure [Table]          
Adjustment to Compensation Amount   (10,405)   (8,311)  
PEO [Member] | Muncrief [Member] | Total Change In Fair Value [Member]          
Pay vs Performance Disclosure [Table]          
Adjustment to Compensation Amount   26,691   36,144  
PEO [Member] | Hager [Member] | Fair Value Of Stock Based Awards Granted [Member]          
Pay vs Performance Disclosure [Table]          
Adjustment to Compensation Amount       (712) $ (9,509)
PEO [Member] | Hager [Member] | Change in Pension Value [Member]          
Pay vs Performance Disclosure [Table]          
Adjustment to Compensation Amount       0 0
PEO [Member] | Hager [Member] | The Difference In The Fair Value From Start To End Of The Year For All Stock Awards Outstanding [Member]          
Pay vs Performance Disclosure [Table]          
Adjustment to Compensation Amount       28,897 (8,840)
PEO [Member] | Hager [Member] | Pension Service Cost and Cost Of Additional Pension Benefits Due To Plan Amendment [Member]          
Pay vs Performance Disclosure [Table]          
Adjustment to Compensation Amount       0 0
PEO [Member] | Hager [Member] | Year End Fair Value Awards Made During Year [Member]          
Pay vs Performance Disclosure [Table]          
Adjustment to Compensation Amount       1,555 7,572
PEO [Member] | Hager [Member] | Awards Outstanding During Year [Member]          
Pay vs Performance Disclosure [Table]          
Adjustment to Compensation Amount       17,015 (4,435)
PEO [Member] | Hager [Member] | Awards Vesting During Year [Member]          
Pay vs Performance Disclosure [Table]          
Adjustment to Compensation Amount       11,040 (2,469)
PEO [Member] | Hager [Member] | Grant Date Fair Value Awards Made During Year [Member]          
Pay vs Performance Disclosure [Table]          
Adjustment to Compensation Amount       (712) (9,509)
PEO [Member] | Hager [Member] | Total Change In Fair Value [Member]          
Pay vs Performance Disclosure [Table]          
Adjustment to Compensation Amount       28,897 (8,840)
Non-PEO NEO [Member] | Fair Value Of Stock Based Awards Granted [Member]          
Pay vs Performance Disclosure [Table]          
Adjustment to Compensation Amount   (3,717)   (1,881) (2,405)
Non-PEO NEO [Member] | Change in Pension Value [Member]          
Pay vs Performance Disclosure [Table]          
Adjustment to Compensation Amount   0   0 (1,038)
Non-PEO NEO [Member] | The Difference In The Fair Value From Start To End Of The Year For All Stock Awards Outstanding [Member]          
Pay vs Performance Disclosure [Table]          
Adjustment to Compensation Amount   7,008   9,530 (1,904)
Non-PEO NEO [Member] | Pension Service Cost and Cost Of Additional Pension Benefits Due To Plan Amendment [Member]          
Pay vs Performance Disclosure [Table]          
Adjustment to Compensation Amount   0   0 368
Non-PEO NEO [Member] | Year End Fair Value Awards Made During Year [Member]          
Pay vs Performance Disclosure [Table]          
Adjustment to Compensation Amount   4,533   5,130 1,915
Non-PEO NEO [Member] | Awards Outstanding During Year [Member]          
Pay vs Performance Disclosure [Table]          
Adjustment to Compensation Amount   4,105   5,653 (935)
Non-PEO NEO [Member] | Awards Vesting During Year [Member]          
Pay vs Performance Disclosure [Table]          
Adjustment to Compensation Amount   1,997   1,653 (479)
Non-PEO NEO [Member] | Grant Date Fair Value Awards Made During Year [Member]          
Pay vs Performance Disclosure [Table]          
Adjustment to Compensation Amount   (3,627)   (2,351) (2,405)
Non-PEO NEO [Member] | Total Change In Fair Value [Member]          
Pay vs Performance Disclosure [Table]          
Adjustment to Compensation Amount   $ 7,008   $ 9,530 $ (1,904)