DEVON ENERGY CORP/DE, 10-Q filed on 11/6/2024
Quarterly Report
v3.24.3
Document And Entity Information - shares
 9 Months Ended
Sep. 30, 2024
Oct. 23, 2024
Cover [Abstract]    
Document Type 10-Q  
Amendment Flag false  
Document Quarterly Report true  
Document Transition Report false  
Document Period End Date Sep. 30, 2024  
Document Fiscal Year Focus 2024  
Document Fiscal Period Focus Q3  
Current Fiscal Year End Date --12-31  
Entity Registrant Name DEVON ENERGY CORP/DE  
Entity Central Index Key 0001090012  
Entity Filer Category Large Accelerated Filer  
Entity Small Business false  
Entity Emerging Growth Company false  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Shell Company false  
Entity File Number 001-32318  
Entity Tax Identification Number 73-1567067  
Entity Incorporation, State or Country Code DE  
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  
Title of 12(b) Security Common Stock, par value $0.10 per share  
Trading Symbol DVN  
Security Exchange Name NYSE  
Entity Common Stock, Shares Outstanding   656,900,000
v3.24.3
Consolidated Statements of Comprehensive Earnings - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Sep. 30, 2024
Sep. 30, 2023
Oil, gas and NGL sales $ 3,797 $ 4,030 $ 11,432 $ 11,319
Oil, gas and NGL derivatives 227 (194) 105 (206)
Total revenues 4,024 3,836 11,537 11,113
Production expenses 763 757 2,302 2,169
Exploration expenses 4 3 16 16
Depreciation, depletion and amortization 794 651 2,284 1,904
Asset dispositions 0 0 16 (41)
General and administrative expenses 117 99 345 297
Financing costs, net 88 81 240 231
Restructuring and transaction costs 8 0 8 0
Other, net 37 13 64 28
Total expenses 2,960 2,764 8,665 7,920
Earnings before income taxes 1,064 1,072 2,872 3,193
Income tax expense 239 152 583 572
Net earnings 825 920 2,289 2,621
Net earnings attributable to noncontrolling interests 13 10 37 26
Net earnings attributable to Devon $ 812 $ 910 $ 2,252 $ 2,595
Net earnings per share:        
Basic net earnings per share $ 1.31 $ 1.43 $ 3.6 $ 4.05
Diluted net earnings per share $ 1.3 $ 1.42 $ 3.59 $ 4.03
Comprehensive earnings:        
Net earnings $ 825 $ 920 $ 2,289 $ 2,621
Other comprehensive earnings, net of tax:        
Pension and postretirement plans 1 1 3 3
Other comprehensive earnings, net of tax 1 1 3 3
Comprehensive earnings: 826 921 2,292 2,624
Comprehensive earnings attributable to noncontrolling interests 13 10 37 26
Comprehensive earnings attributable to Devon 813 911 2,255 2,598
Oil, Gas and NGL Sales [Member]        
Oil, gas and NGL sales 2,665 2,882 8,090 8,054
Marketing and Midstream Revenues [Member]        
Oil, gas and NGL sales 1,132 1,148 3,342 3,265
Marketing and Midstream Expenses [Member]        
Expenses $ 1,149 $ 1,160 $ 3,390 $ 3,316
v3.24.3
Consolidated Balance Sheets (Unaudited) - USD ($)
$ in Millions
Sep. 30, 2024
Dec. 31, 2023
ASSETS    
Cash, cash equivalents and restricted cash $ 676 $ 875
Accounts receivable 1,779 1,573
Inventory 293 249
Other current assets 484 460
Total current assets 3,232 3,157
Oil and gas property and equipment, based on successful efforts accounting, net 23,155 17,825
Other property and equipment, net ($164 million and $136 million related to CDM in 2024 and 2023, respectively) [1] 1,795 1,503
Total property and equipment, net 24,950 19,328
Goodwill 753 753
Right-of-use assets 317 267
Investments 718 666
Other long-term assets 293 319
Total assets 30,263 24,490
LIABILITIES AND EQUITY    
Accounts payable 995 760
Revenues and royalties payable 1,423 1,222
Short-term debt 0 483
Other current liabilities 488 484
Total current liabilities 2,906 2,949
Long-term debt 8,884 5,672
Lease liabilities 328 295
Asset retirement obligations 765 643
Other long-term liabilities 820 876
Deferred income taxes 2,082 1,838
Stockholders' equity:    
Common stock, $0.10 par value. Authorized 1.0 billion shares; issued 658 million and 636 million shares in 2024 and 2023, respectively 66 64
Additional paid-in capital 6,662 5,939
Retained earnings 7,670 6,195
Accumulated other comprehensive loss (121) (124)
Treasury stock, at cost, 0.3 million shares in 2023 0 (13)
Total stockholders’ equity attributable to Devon 14,277 12,061
Noncontrolling interests 201 156
Total equity 14,478 12,217
Total liabilities and equity $ 30,263 $ 24,490
[1] $164 million and $136 million related to CDM in 2024 and 2023, respectively.
v3.24.3
Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($)
shares in Millions, $ in Millions
Sep. 30, 2024
Dec. 31, 2023
Other property and equipment, net [1] $ 1,795 $ 1,503
Common stock, par value (in dollars per share) $ 0.1 $ 0.1
Common stock, shares authorized (in shares) 1,000.0 1,000.0
Common stock, shares issued (in shares) 658.0 636.0
Treasury stock common shares   0.3
CDM [Member]    
Other property and equipment, net $ 164 $ 136
[1] $164 million and $136 million related to CDM in 2024 and 2023, respectively.
v3.24.3
Consolidated Statements Of Cash Flows
$ in Millions
 3 Months Ended 9 Months Ended
Sep. 30, 2024
USD ($)
Sep. 30, 2023
USD ($)
Sep. 30, 2024
USD ($)
Sep. 30, 2023
USD ($)
Cash flows from operating activities:        
Net earnings $ 825 $ 920 $ 2,289 $ 2,621
Adjustments to reconcile net earnings to net cash from operating activities:        
Depreciation, depletion and amortization 794 651 2,284 1,904
Leasehold impairments 1 1 2 4
Accretion (amortization) of liabilities 2 (2) 2 (17)
Total (gains) losses on commodity derivatives (227) 194 (105) 206
Cash settlements on commodity derivatives 61 (11) 139 39
(Gains) losses on asset dispositions 0 0 16 (41)
Deferred income tax expense 164 13 243 212
Share-based compensation 24 22 75 70
Other 3 (2) 6 (2)
Changes in assets and liabilities, net 16 (61) (15) (189)
Net cash from operating activities 1,663 1,725 4,936 4,807
Cash flows from investing activities:        
Capital expenditures (877) (882) (2,719) (2,973)
Acquisitions of property and equipment (3,602) (23) (3,692) (54)
Divestitures of property and equipment 0 1 18 23
GME acquired cash 147 0 147 0
Distributions from investments 13 7 35 24
Contributions to investments and other (30) 0 (78) (52)
Net cash from investing activities (4,349) (897) (6,289) (3,032)
Cash flows from financing activities:        
Borrowings of long-term debt, net of issuance costs 3,219 0 3,219 0
Repayments of long-term debt (472) (242) (472) (242)
Repurchases of common stock (295) 0 (756) (745)
Dividends paid on common stock (272) (312) (794) (1,370)
Contributions from noncontrolling interests 20 10 44 18
Distributions to noncontrolling interests (10) (9) (36) (33)
Shares exchanged for tax withholdings and other 2 0 (49) (96)
Net cash from financing activities 2,192 (553) 1,156 (2,468)
Effect of exchange rate changes on cash 1 (2) (2) 0
Net change in cash, cash equivalents and restricted cash (493) 273 (199) (693)
Cash, cash equivalents and restricted cash at beginning of period 1,169 488 875 1,454
Cash, cash equivalents and restricted cash at end of period 676 761 676 761
Reconciliation of cash, cash equivalents and restricted cash:        
Cash and cash equivalents 645 654 645 654
Restricted cash 31 107 31 107
Total cash, cash equivalents and restricted cash $ 676 $ 761 $ 676 $ 761
v3.24.3
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, 2022 $ 11,296 $ 65 $ 6,921 $ 4,297 $ (116)   $ 129
Balance, shares at Dec. 31, 2022   653,000,000          
Net earnings 2,621     2,595     26
Other comprehensive earnings, net of tax 3       3    
Restricted stock grants, net of cancellations, shares   2,000,000          
Common stock repurchased (839)   (6)     $ (833)  
Common stock retired   $ (1) (832)     833  
Common stock retired, shares   (15,000,000)          
Common stock dividends (1,357)     (1,357)      
Share-based compensation 70   70        
Share-based compensation, shares   1,000,000          
Contributions from noncontrolling interests 18           18
Distributions to noncontrolling interests (33)           (33)
Balance at Sep. 30, 2023 11,779 $ 64 6,153 5,535 (113)   140
Balance, shares at Sep. 30, 2023   641,000,000          
Balance at Jun. 30, 2023 11,150 $ 64 6,131 4,940 (114)   129
Balance, shares at Jun. 30, 2023   641,000,000          
Net earnings 920     910     10
Other comprehensive earnings, net of tax 1       1    
Common stock dividends (315)     (315)      
Share-based compensation 22   22        
Contributions from noncontrolling interests 10           10
Distributions to noncontrolling interests (9)           (9)
Balance at Sep. 30, 2023 11,779 $ 64 6,153 5,535 (113)   140
Balance, shares at Sep. 30, 2023   641,000,000          
Balance at Dec. 31, 2023 12,217 $ 64 5,939 6,195 (124) (13) 156
Balance, shares at Dec. 31, 2023   636,000,000          
Net earnings 2,289     2,252     37
Other comprehensive earnings, net of tax 3       3    
Restricted stock grants, net of cancellations, shares   2,000,000          
Common stock repurchased (792)         (792)  
Common stock retired   $ (2) (803)     805  
Common stock retired, shares   (18,000,000)          
Common stock dividends (777)     (777)      
Common stock issued 1,455 $ 4 1,451        
Common stock issued, Shares   37          
Share-based compensation 75   75        
Share-based compensation, shares   1,000,000          
Contributions from noncontrolling interests 44           44
Distributions to noncontrolling interests (36)           (36)
Balance at Sep. 30, 2024 14,478 $ 66 6,662 7,670 (121) 0 201
Balance, shares at Sep. 30, 2024   658,000,000          
Balance at Jun. 30, 2024 12,729 $ 63 5,478 7,132 (122) 0 178
Balance, shares at Jun. 30, 2024   628,000,000          
Net earnings 825     812     13
Other comprehensive earnings, net of tax 1       1    
Common stock repurchased (292) $ (1) (4)     (295)  
Common stock retired     (295)     295  
Common stock retired, shares   (7,000,000)          
Common stock dividends (274)     (274)      
Common stock issued 1,455 $ 4 1,451        
Common stock issued, Shares   37          
Share-based compensation 24   24        
Contributions from noncontrolling interests 20           20
Distributions to noncontrolling interests (10)           (10)
Balance at Sep. 30, 2024 $ 14,478 $ 66 $ 6,662 $ 7,670 $ (121) $ 0 $ 201
Balance, shares at Sep. 30, 2024   658,000,000          
v3.24.3
Pay vs Performance Disclosure - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Sep. 30, 2024
Sep. 30, 2023
Pay vs Performance Disclosure        
Net Income (Loss) $ 812 $ 910 $ 2,252 $ 2,595
v3.24.3
Insider Trading Arrangements
 3 Months Ended
Sep. 30, 2024
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
Rule 10b5-1 Arrangement Modified false
Non-Rule 10b5-1 Arrangement Modified false
v3.24.3
Summary of Significant Accounting Policies
 9 Months Ended
Sep. 30, 2024
Accounting Policies [Abstract]  
Summary of Significant Accounting Policies 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 2023 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 nine-month periods ended September 30, 2024 and 2023 and Devon’s financial position as of September 30, 2024.

On September 27, 2024, Devon acquired the Williston Basin business of Grayson Mill for total consideration of approximately $5.0 billion, consisting of $3.5 billion of cash and approximately 37.3 million shares of Devon common stock, including purchase price adjustments. The transaction has been accounted for using the acquisition method of accounting. See Note 2 for further discussion.

 

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

 

September 30, 2024

 

 

December 31, 2023

 

Catalyst

 

50%

 

$

282

 

 

$

311

 

Water JV

 

30%

 

 

216

 

 

 

216

 

Matterhorn

 

12.5%

 

 

90

 

 

 

90

 

Fervo

 

14%

 

 

77

 

 

 

—

 

Other

 

Various

 

 

53

 

 

 

49

 

      Total

 

 

 

$

718

 

 

$

666

 

 

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. In the second quarter of 2023, 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.

Devon has an interest in Matterhorn, which is a joint venture in a natural gas pipeline which transports 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.

 

In the first quarter of 2024, Devon committed to invest approximately $100 million in Fervo, a company that generates energy from geothermal wells. As of September 30, 2024, Devon has funded approximately $78 million of the commitment and expects to fund the remaining $22 million commitment in the fourth quarter of 2024. The investment in Fervo allows Devon to exercise significant influence over Fervo, and the investment is accounted for under the equity method of accounting. Devon's investment in Fervo is shown within investments on the consolidated balance sheets and Devon's share of Fervo earnings are reflected as a component of other, net in the accompanying consolidated statements of comprehensive earnings.

 

Disaggregation of Revenue

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

 

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

Oil

 

$

2,273

 

 

$

2,377

 

 

$

6,875

 

 

$

6,626

 

Gas

 

 

49

 

 

 

189

 

 

 

234

 

 

 

524

 

NGL

 

 

343

 

 

 

316

 

 

 

981

 

 

 

904

 

Oil, gas and NGL sales

 

 

2,665

 

 

 

2,882

 

 

 

8,090

 

 

 

8,054

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Oil

 

 

815

 

 

 

795

 

 

 

2,423

 

 

 

2,260

 

Gas

 

 

105

 

 

 

153

 

 

 

326

 

 

 

428

 

NGL

 

 

212

 

 

 

200

 

 

 

593

 

 

 

577

 

Marketing and midstream revenues

 

 

1,132

 

 

 

1,148

 

 

 

3,342

 

 

 

3,265

 

Total revenues from contracts with customers

 

$

3,797

 

 

$

4,030

 

 

$

11,432

 

 

$

11,319

 

 

Recently Issued Accounting Standards Not Yet Adopted

In December 2023, the FASB issued ASU 2023-09, Improvements to Income Tax Disclosures. ASU 2023-09 intends to provide investors with enhanced information about an entity’s income taxes by requiring disclosure of items such as disaggregation of the effective tax rate reconciliation as well as information regarding income taxes paid. This ASU will result in additional disclosures for annual reporting periods beginning after December 15, 2024, with early adoption permitted for annual financial statements that have not yet been issued.

In November 2023, the FASB issued ASU 2023-07, Improvements to Reportable Segments Disclosures. Under this ASU, the scope and frequency of segment disclosures is increased to provide investors with additional detail about information utilized by an entity’s “Chief Operating Decision Maker.” This ASU will result in additional disclosures for Devon beginning with our 2024 annual reporting and interim periods beginning in 2025.
v3.24.3
Acquisition and Divestitures
 9 Months Ended
Sep. 30, 2024
Business Combinations [Abstract]  
Acquisition and Divestitures

2. Acquisitions and Divestitures

Acquisition

On September 27, 2024, Devon completed its acquisition of the Williston Basin business of Grayson Mill for total consideration of approximately $5.0 billion, consisting of $3.5 billion of cash and approximately 37.3 million shares of Devon common stock, including purchase price adjustments. Devon funded the cash portion of the purchase price through cash on hand and debt financing. For additional information regarding the debt financing, see Note 11.

Purchase Price Allocation

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

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

 

 

 

Preliminary Purchase

 

 

 

Price Allocation

 

 

 

as of September 27, 2024

 

 Consideration:

 

 

 

 Devon common stock issued

 

 

37.3

 

 Devon closing price on September 27, 2024

 

$

38.96

 

 Total common equity consideration

 

$

1,455

 

 Cash consideration

 

 

3,567

 

 Total consideration

 

$

5,022

 

 Assets acquired:

 

 

 

 Cash, cash equivalents and restricted cash

 

$

147

 

 Accounts receivable

 

 

226

 

 Inventory

 

 

38

 

 Other current assets

 

 

9

 

 Proved oil and gas property and equipment

 

 

2,931

 

 Unproved oil and gas property and equipment

 

 

1,905

 

 Other property and equipment, net

 

 

210

 

 Right-of-use assets

 

 

29

 

 Total assets acquired

 

$

5,495

 

 Liabilities assumed:

 

 

 

 Accounts payable

 

$

155

 

 Revenue and royalties payable

 

 

209

 

 Other current liabilities

 

 

16

 

 Asset retirement obligations

 

 

75

 

 Lease liabilities

 

 

18

 

 Total liabilities assumed

 

 

473

 

 Net assets acquired

 

$

5,022

 

Grayson Mill Revenues and Earnings

From the date of the acquisition through September 30, 2024, revenues and net earnings included in Devon's consolidated statements of comprehensive earnings associated with these assets totaled $28 million and $4 million, respectively.

Pro Forma Financial Information

The following unaudited pro forma financial information is based on our historical consolidated financial statements adjusted to reflect as if the Grayson Mill acquisition had occurred on January 1, 2023. The information below reflects pro forma adjustments to conform Grayson Mill's historical financial information to Devon’s financial statement presentation. The unaudited pro forma financial information is not necessarily indicative of what would have occurred if the acquisition had been completed as of the beginning of the periods presented, nor is it indicative of future results.

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

 Total revenues

 

$

4,691

 

 

$

4,553

 

 

$

13,563

 

 

$

12,679

 

 Net earnings

 

$

895

 

 

$

1,044

 

 

$

2,524

 

 

$

2,827

 

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 $20 million in contingent earnout payments related to this transaction in the first quarter of 2024 and $65 million in the first quarter of 2023. Devon could also receive up to an additional $65 million in contingent earnout payments for the remaining performance period depending on future commodity prices. The valuation of the future contingent earnout payment included within other current assets in the September 30, 2024 consolidated balance sheet was approximately $20 million. This value was derived utilizing a Monte Carlo valuation model and qualifies as a level 3 fair value measurement.

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

v3.24.3
Derivative Financial Instruments
 9 Months Ended
Sep. 30, 2024
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 also periodically enters into interest rate swaps to manage its exposure to interest rate volatility. As of September 30, 2024, Devon did not have any open interest rate contracts.

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

Counterparty Credit Risk

By using derivative financial instruments, Devon is exposed to credit risk. Credit risk is the failure of the counterparty to perform under the terms of the derivative contract. To mitigate this risk, the hedging instruments are placed with a number of counterparties whom Devon believes are acceptable credit risks. It is Devon’s policy to enter into derivative contracts only with investment-grade rated counterparties deemed by management to be competent and competitive market makers. Additionally, Devon’s derivative contracts generally contain provisions that provide for collateral payments if Devon’s or its counterparty’s credit rating falls below certain credit rating levels. As of September 30, 2024, Devon neither held cash collateral of its counterparties nor posted cash collateral to its counterparties.

Commodity Derivatives

As of September 30, 2024, 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)

 

 

Q4 2024

 

 

33,000

 

 

$

78.38

 

 

 

98,000

 

 

$

68.64

 

 

$

83.73

 

 

Q1-Q4 2025

 

 

8,468

 

 

$

71.90

 

 

 

26,992

 

 

$

70.00

 

 

$

76.58

 

 

 

 

 

Oil Basis Swaps

 

Period

 

Index

 

Volume
(Bbls/d)

 

 

Weighted Average
Differential to WTI
($/Bbl)

 

Q4 2024

 

Midland Sweet

 

 

69,500

 

 

$

1.17

 

Q4 2024

 

NYMEX Roll

 

 

26,000

 

 

$

0.82

 

Q1-Q4 2025

 

Midland Sweet

 

 

63,000

 

 

$

1.00

 

Q1-Q4 2026

 

Midland Sweet

 

 

18,000

 

 

$

1.21

 

As of September 30, 2024, 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)

 

Q4 2024

 

 

252,000

 

 

$

3.16

 

 

 

15,000

 

 

$

3.00

 

 

$

3.65

 

Q1-Q4 2025

 

 

220,537

 

 

$

3.34

 

 

 

55,000

 

 

$

3.00

 

 

$

3.69

 

Q1-Q4 2026

 

 

130,000

 

 

$

3.78

 

 

 

50,000

 

 

$

3.25

 

 

$

4.18

 

 

 

 

Natural Gas Basis Swaps

 

Period

 

Index

 

Volume
(MMBtu/d)

 

 

Weighted Average
Differential to
Henry Hub
($/MMBtu)

 

Q4 2024

 

El Paso Natural Gas

 

 

10,000

 

 

$

(1.00

)

Q4 2024

 

Houston Ship Channel

 

 

160,000

 

 

$

(0.28

)

Q4 2024

 

WAHA

 

 

80,000

 

 

$

(0.74

)

Q1-Q4 2025

 

Houston Ship Channel

 

 

170,000

 

 

$

(0.36

)

Q1-Q4 2025

 

WAHA

 

 

50,000

 

 

$

(1.04

)

Q1-Q4 2026

 

Houston Ship Channel

 

 

50,000

 

 

$

(0.29

)

 

As of September 30, 2024, Devon had the following open NGL derivative positions. Devon's NGL positions settle against the average of the prompt month OPIS Mont Belvieu, Texas index.

 

 

 

 

 

Price Swaps

 

Period

 

Product

 

Volume (Bbls/d)

 

 

Weighted Average Price ($/Bbl)

 

Q4 2024

 

Natural Gasoline

 

 

3,000

 

 

$

69.11

 

Q4 2024

 

Normal Butane

 

 

3,350

 

 

$

37.58

 

Q4 2024

 

Propane

 

 

5,250

 

 

$

33.01

 

 

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 table below presents a summary of these positions as of September 30, 2024 and December 31, 2023.

 

September 30, 2024

 

December 31, 2023

 

 

 

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

$

153

 

$

(12

)

$

141

 

$

213

 

$

(5

)

$

208

 

Other current assets

Long-term derivative asset

 

32

 

 

(5

)

 

27

 

 

—

 

 

—

 

 

—

 

Other long-term assets

Short-term derivative liability

 

(14

)

 

12

 

 

(2

)

 

(7

)

 

5

 

 

(2

)

Other current liabilities

Long-term derivative liability

 

(6

)

 

5

 

 

(1

)

 

(7

)

 

—

 

 

(7

)

Other long-term liabilities

  Total derivative asset

$

165

 

$

—

 

$

165

 

$

199

 

$

—

 

$

199

 

 
v3.24.3
Share-Based Compensation
 9 Months Ended
Sep. 30, 2024
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.

 

 

 

Nine Months Ended September 30,

 

 

 

2024

 

 

2023

 

G&A

 

$

74

 

 

$

70

 

Exploration expenses

 

 

1

 

 

 

—

 

Total

 

$

75

 

 

$

70

 

 

 

 

 

 

 

 

Related income tax benefit

 

$

21

 

 

$

31

 

 

 

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 12/31/23

 

 

4,033

 

 

$

42.10

 

 

 

1,547

 

 

$

43.25

 

Granted

 

 

1,936

 

 

$

42.53

 

 

 

858

 

 

$

40.41

 

Vested

 

 

(1,805

)

 

$

34.83

 

 

 

(1,226

)

 

$

18.08

 

Forfeited

 

 

(79

)

 

$

45.44

 

 

 

—

 

 

$

—

 

Unvested at 9/30/24

 

 

4,085

 

 

$

45.45

 

 

 

1,179

 

(1)

$

67.38

 

 

(1)
A maximum of 2.4 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 2024, 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.

 

 

2024

 

 Grant-date fair value

 

$

56.99

 

 Risk-free interest rate

 

 

4.28

%

 Volatility factor

 

 

46.03

%

 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 September 30, 2024.

 

 

 

Restricted Stock

 

 

Performance

 

 

 

Awards/Units

 

 

Share Units

 

Unrecognized compensation cost

 

$

116

 

 

$

26

 

Weighted average period for recognition (years)

 

 

2.6

 

 

 

1.7

 
v3.24.3
Income Taxes
 9 Months Ended
Sep. 30, 2024
Income Tax Disclosure [Abstract]  
Income Taxes

5. 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 September 30,

 

Nine Months Ended September 30,

 

 

 

2024

 

2023

 

2024

 

2023

 

Earnings before income taxes

 

$

1,064

 

$

1,072

 

$

2,872

 

$

3,193

 

 

 

 

 

 

 

 

 

 

 

Current income tax expense

 

$

75

 

$

139

 

$

340

 

$

360

 

Deferred income tax expense

 

 

164

 

 

13

 

 

243

 

 

212

 

Total income tax expense

 

$

239

 

$

152

 

$

583

 

$

572

 

 

 

 

 

 

 

 

 

 

 

U.S. statutory income tax rate

 

 

21

%

 

21

%

 

21

%

 

21

%

State income taxes

 

 

3

%

 

1

%

 

2

%

 

1

%

Income tax credits

 

 

(2

%)

 

(8

%)

 

(3

%)

 

(4

%)

Effective income tax rate

 

 

22

%

 

14

%

 

20

%

 

18

%

 

 

In the first nine months of 2024 and 2023, Devon recognized income tax credits associated with its qualified research activities.
v3.24.3
Net Earnings Per Share
 9 Months Ended
Sep. 30, 2024
Earnings Per Share [Abstract]  
Net Earnings Per Share Net Earnings Per Share

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

 

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

Net earnings available to common shareholders - basic and diluted

 

$

812

 

 

$

910

 

 

$

2,252

 

 

$

2,595

 

Common shares:

 

 

 

 

 

 

 

 

 

 

 

 

Average common shares outstanding - basic

 

 

622

 

 

 

637

 

 

 

626

 

 

 

640

 

Dilutive effect of potential common shares issuable

 

 

1

 

 

 

2

 

 

 

2

 

 

 

3

 

Average common shares outstanding - diluted

 

 

623

 

 

 

639

 

 

 

628

 

 

 

643

 

Net earnings per share available to common shareholders:

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

1.31

 

 

$

1.43

 

 

$

3.60

 

 

$

4.05

 

Diluted

 

$

1.30

 

 

$

1.42

 

 

$

3.59

 

 

$

4.03

 
v3.24.3
Other Comprehensive Earnings (Loss)
 9 Months Ended
Sep. 30, 2024
Other Comprehensive Income (Loss), Net of Tax [Abstract]  
Other Comprehensive Earnings (Loss) Other Comprehensive Earnings (Loss)

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

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

Pension and postretirement benefit plans:

 

 

 

 

 

 

 

 

 

 

 

 

Beginning accumulated pension and postretirement benefits

 

$

(122

)

 

$

(114

)

 

$

(124

)

 

$

(116

)

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

 

 

1

 

 

 

1

 

 

 

4

 

 

 

4

 

Income tax expense

 

 

—

 

 

 

—

 

 

 

(1

)

 

 

(1

)

Accumulated other comprehensive loss, net of tax

 

$

(121

)

 

$

(113

)

 

$

(121

)

 

$

(113

)

 

(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.
v3.24.3
Supplemental Information to Statements of Cash Flows
 9 Months Ended
Sep. 30, 2024
Supplemental Cash Flow Elements [Abstract]  
Supplemental Information to Statements of Cash Flows Supplemental Information to Statements of Cash Flows

 

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

Changes in assets and liabilities, net:

 

 

 

 

 

 

 

 

 

 

 

 

Accounts receivable

 

$

41

 

 

$

(334

)

 

$

26

 

 

$

(86

)

Other current assets

 

 

(13

)

 

 

27

 

 

 

(120

)

 

 

31

 

Other long-term assets

 

 

(9

)

 

 

(31

)

 

 

24

 

 

 

(13

)

Accounts payable and revenues and royalties payable

 

 

(64

)

 

 

194

 

 

 

121

 

 

 

(36

)

Other current liabilities

 

 

57

 

 

 

88

 

 

 

(51

)

 

 

(53

)

Other long-term liabilities

 

 

4

 

 

 

(5

)

 

 

(15

)

 

 

(32

)

Total

 

$

16

 

 

$

(61

)

 

$

(15

)

 

$

(189

)

Supplementary cash flow data:

 

 

 

 

 

 

 

 

 

 

 

 

Interest paid

 

$

90

 

 

$

77

 

 

$

265

 

 

$

266

 

Income taxes paid

 

$

92

 

 

$

50

 

 

$

476

 

 

$

309

 

 

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

v3.24.3
Accounts Receivable
 9 Months Ended
Sep. 30, 2024
Accounts Receivable, after Allowance for Credit Loss [Abstract]  
Accounts Receivable Accounts Receivable

Components of accounts receivable include the following:

 

 

 

September 30, 2024

 

 

December 31, 2023

 

Oil, gas and NGL sales

 

$

989

 

 

$

965

 

Joint interest billings

 

 

321

 

 

 

251

 

Marketing and midstream revenues

 

 

442

 

 

 

342

 

Other

 

 

34

 

 

 

22

 

Gross accounts receivable

 

 

1,786

 

 

 

1,580

 

Allowance for doubtful accounts

 

 

(7

)

 

 

(7

)

Net accounts receivable

 

$

1,779

 

 

$

1,573

 
v3.24.3
Property, Plant and Equipment
 9 Months Ended
Sep. 30, 2024
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.

 

 

 

September 30, 2024

 

 

December 31, 2023

 

Property and equipment:

 

 

 

 

 

 

Proved

 

$

52,190

 

 

$

46,659

 

Unproved and properties under development

 

 

3,286

 

 

 

1,279

 

Total oil and gas

 

 

55,476

 

 

 

47,938

 

Less accumulated DD&A

 

 

(32,321

)

 

 

(30,113

)

Oil and gas property and equipment, net

 

 

23,155

 

 

 

17,825

 

Other property and equipment

 

 

2,630

 

 

 

2,289

 

Less accumulated DD&A

 

 

(835

)

 

 

(786

)

Other property and equipment, net (1)

 

 

1,795

 

 

 

1,503

 

Property and equipment, net

 

$

24,950

 

 

$

19,328

 

 

(1)
$164 million and $136 million related to CDM in 2024 and 2023, respectively.
v3.24.3
Debt And Related Expenses
 9 Months Ended
Sep. 30, 2024
Debt Disclosure [Abstract]  
Debt and Related Expenses Debt and Related Expenses

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

 

 

 

September 30, 2024

 

 

December 31, 2023

 

5.25% due September 15, 2024

 

$

—

 

 

$

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

 

5.20% due September 15, 2034

 

 

1,250

 

 

 

—

 

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

 

5.75% due September 15, 2054

 

 

1,000

 

 

 

—

 

Term Loan due September 25, 2026

 

 

1,000

 

 

 

—

 

Net premium on debentures and notes

 

 

41

 

 

 

64

 

Debt issuance costs

 

 

(56

)

 

 

(30

)

Total debt

 

$

8,884

 

 

$

6,155

 

Less amount classified as short-term debt

 

 

—

 

 

 

483

 

Total long-term debt

 

$

8,884

 

 

$

5,672

 

Credit Lines

In 2023, Devon amended and restated its 2018 Senior Credit Facility to provide for a new $3.0 billion revolving 2023 Senior Credit Facility. In the first quarter of 2024, Devon exercised its option to extend the 2023 Senior Credit Facility maturity date from March 24, 2028 to March 24, 2029. Devon has the option to extend the March 24, 2029 maturity date by two additional one-year periods subject to lender consent. As of September 30, 2024, Devon had no outstanding borrowings under the 2023 Senior Credit Facility and had issued $4 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 September 30, 2024, Devon was in compliance with this covenant with a debt-to-capitalization ratio of 26.7%

 

Term Loan Credit Agreement

On August 12, 2024, Devon entered into a delayed draw term loan credit agreement (the “Term Loan Credit Agreement”), providing for delayed draw term loans in an aggregate principal amount not to exceed $2.0 billion, including a 364-day tranche of $500 million and a two-year tranche of $1.5 billion. On September 27, 2024, Devon borrowed $1.0 billion on the two-year tranche (the “Term Loan”) to partially fund the closing of the Grayson Mill acquisition. In connection with the borrowing of the Term Loan, the undrawn commitments under the Term Loan Credit Agreement automatically terminated. The Term Loan bears interest at a rate based on term SOFR plus a spread adjustment that varies based on Devon's credit ratings. The interest rate on the Term Loan was 6.33% as of September 30, 2024.

The Term Loan Credit Agreement contains substantially the same financial covenant as the 2023 Senior Credit Facility. As of September 30, 2024, Devon was in compliance with this covenant with a debt-to-capitalization ratio of 26.7%.

 

Issuance of Senior Notes

On August 28, 2024, Devon issued $1.25 billion of 5.20% senior notes due 2034 and $1.0 billion of 5.75% senior notes due 2054. Devon used the net proceeds to partially fund the Grayson Mill acquisition. For additional information, see Note 2.

 


Retirement of Senior Notes

On September 15, 2024 and August 1, 2023, Devon repaid the $472 million of 5.25% senior notes and $242 million of 8.25% senior notes at maturity, respectively.
 

Net Financing Costs

The following schedule includes the components of net financing costs.

 

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

Interest based on debt outstanding

 

$

98

 

 

$

93

 

 

$

273

 

 

$

282

 

Interest income

 

 

(19

)

 

 

(11

)

 

 

(46

)

 

 

(43

)

Other

 

 

9

 

 

 

(1

)

 

 

13

 

 

 

(8

)

Total net financing costs

 

$

88

 

 

$

81

 

 

$

240

 

 

$

231

 
v3.24.3
Leases
 9 Months Ended
Sep. 30, 2024
Leases [Abstract]  
Leases

12. Leases

The following table presents Devon’s right-of-use assets and lease liabilities as of September 30, 2024 and December 31, 2023.

 

 

 

September 30, 2024

 

 

December 31, 2023

 

 

 

Finance

 

 

Operating

 

 

Total

 

 

Finance

 

 

Operating

 

 

Total

 

Right-of-use assets

 

$

257

 

 

$

60

 

 

$

317

 

 

$

246

 

 

$

21

 

 

$

267

 

Lease liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current lease liabilities (1)

 

$

27

 

 

$

30

 

 

$

57

 

 

$

21

 

 

$

12

 

 

$

33

 

Long-term lease liabilities

 

 

298

 

 

 

30

 

 

 

328

 

 

 

286

 

 

 

9

 

 

 

295

 

Total lease liabilities (2)

 

$

325

 

 

$

60

 

 

$

385

 

 

$

307

 

 

$

21

 

 

$

328

 

 

(1)
Current lease liabilities are included in other current liabilities on the consolidated balance sheets.
(2)
Devon has entered into certain leases of equipment related to the exploration, development and production of oil and gas that had terms not yet commenced as of September 30, 2024 and are therefore excluded from the amounts shown above.

 

Devon’s operating lease right-of-use assets relate to real estate, drilling rigs and other equipment related to the exploration, development and production of oil and gas. Devon’s financing lease right-of-use assets primarily relate to real estate.
v3.24.3
Asset Retirement Obligations
 9 Months Ended
Sep. 30, 2024
Asset Retirement Obligation Disclosure [Abstract]  
Asset Retirement Obligations
13.
Asset Retirement Obligations

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

 

 

 

Nine Months Ended September 30,

 

 

 

2024

 

 

2023

 

Asset retirement obligations as of beginning of period

 

$

665

 

 

$

529

 

Assumed Grayson Mill obligations

 

 

75

 

 

 

—

 

Liabilities incurred

 

 

21

 

 

 

104

 

Liabilities settled and divested

 

 

(25

)

 

 

(24

)

Revision of estimated obligation

 

 

35

 

 

 

27

 

Accretion expense on discounted obligation

 

 

28

 

 

 

21

 

Asset retirement obligations as of end of period

 

 

799

 

 

 

657

 

Less current portion

 

 

34

 

 

 

16

 

Asset retirement obligations, long-term

 

$

765

 

 

$

641

 

 

During the first nine months of 2024, Devon increased its asset retirement obligations by approximately $35 million primarily due to changes in current cost estimates and future retirement dates for its oil and gas assets. During the first nine months of 2023,

Devon increased its asset retirement obligations by approximately $27 million primarily due to inflation-driven increases in cost estimates.

 

Devon's asset retirement obligations recorded during the first nine months of 2023 included a potential obligation to decommission two California offshore oil and gas production platforms and related facilities pursuant to an order of the Department of the Interior, Bureau of Safety and Environmental Enforcement.
v3.24.3
Stockholders' Equity
 9 Months Ended
Sep. 30, 2024
Stockholders' Equity Note [Abstract]  
Stockholders' Equity
14.
Stockholders’ Equity

Share Issuance

On September 27, 2024, Devon completed its acquisition of the Williston Basin business of Grayson Mill for total consideration of approximately $5.0 billion. The transaction consisted of $3.5 billion of cash and approximately 37.3 million shares of Devon common stock at $38.96 per share for total equity consideration of approximately $1.5 billion, including purchase price adjustments.

Share Repurchases

In July 2024, Devon's Board of Directors authorized an expansion to the Company's share repurchase program from $3.0 billion to $5.0 billion and extended the expiration date from December 31, 2024 to June 30, 2026. The table below provides information regarding purchases of Devon’s common stock under the $5.0 billion share repurchase program (shares in thousands).

 

 

 

Total Number of
Shares Purchased

 

 

Dollar Value of
Shares Purchased

 

 

Average Price Paid
per Share

 

$5.0 Billion Plan

 

 

 

 

 

 

 

 

 

2021

 

 

13,983

 

 

$

589

 

 

$

42.15

 

2022

 

 

11,708

 

 

 

718

 

 

$

61.36

 

2023:

 

 

 

 

 

 

 

 

 

First quarter

 

 

10,090

 

 

 

545

 

 

$

53.96

 

Second quarter

 

 

3,795

 

 

 

200

 

 

$

52.70

 

Fourth quarter

 

 

5,465

 

 

 

247

 

 

$

45.17

 

2023 Total

 

 

19,350

 

 

 

992

 

 

$

51.23

 

2024:

 

 

 

 

 

 

 

 

 

First quarter

 

 

4,428

 

 

 

193

 

 

$

43.47

 

Second quarter

 

 

5,188

 

 

 

256

 

 

$

49.40

 

Third quarter

 

 

6,675

 

 

 

295

 

 

$

44.23

 

2024 Total

 

 

16,291

 

 

 

744

 

 

$

45.67

 

Total plan

 

 

61,332

 

 

$

3,043

 

 

$

49.62

 

 

Dividends

Devon pays a quarterly dividend which can be comprised of a fixed dividend and a variable dividend. The variable dividend is dependent on quarterly cash flows, among other factors. Devon has raised its fixed dividend multiple times over the past two calendar years and most recently raised it by 10% from $0.20 to $0.22 per share in the first quarter of 2024. The following table summarizes Devon’s dividends for the first nine months of 2024 and 2023, respectively.

 

 

Fixed

 

 

Variable

 

 

Total

 

 

Rate Per Share

 

2024:

 

 

 

 

 

 

 

 

 

 

 

First quarter

$

143

 

 

$

156

 

 

$

299

 

 

$

0.44

 

Second quarter

 

138

 

 

 

85

 

 

 

223

 

 

$

0.35

 

Third quarter

 

136

 

 

 

136

 

 

 

272

 

 

$

0.44

 

Total year-to-date

$

417

 

 

$

377

 

 

$

794

 

 

 

 

2023:

 

 

 

 

 

 

 

 

 

 

 

First quarter

$

133

 

 

$

463

 

 

$

596

 

 

$

0.89

 

Second quarter

 

128

 

 

 

334

 

 

 

462

 

 

$

0.72

 

Third quarter

 

127

 

 

 

185

 

 

 

312

 

 

$

0.49

 

Total year-to-date

$

388

 

 

$

982

 

 

$

1,370

 

 

 

 

 

In November 2024, Devon announced a fixed cash dividend in the amount of $0.22 per share for approximately $144 million payable in the fourth quarter of 2024.

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.
v3.24.3
Commitments and Contingencies
 9 Months Ended
Sep. 30, 2024
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies 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. As of September 30, 2024, Devon has accrued approximately $60 million in other current liabilities pertaining to such royalty matters.

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.

As previously disclosed, the Company received separate notices of violation (“NOV”) from the EPA alleging emissions and permitting violations relating to certain of our historic operations in North Dakota, western Texas and New Mexico, respectively. The

Company has been engaging with the EPA to resolve each of these matters, and Devon is actively negotiating a draft consent decree with the EPA and the Department of Justice with respect to the North Dakota NOV matter. If finalized, the consent decree may include monetary sanctions and obligations to complete mitigation projects and implement specific injunctive relief. Given that negotiations of the draft consent decree are ongoing and the uncertainty as to the ultimate result of the North Dakota NOV matter, we are currently unable to provide an estimate of potential loss; however, the costs associated with the resolution of the North Dakota NOV matter or any of the other NOV matters could be significant in amount and may include monetary penalties.

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 has 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 this matter, Devon denies the allegations asserted in this lawsuit 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, undertaking other restorative actions or performing requirements under surface agreements in existence at the time of disposition. For example, a predecessor entity of a Devon subsidiary previously sold certain private, state and federal oil and gas leases covering properties in shallow waters off the coast of Louisiana in the Gulf of Mexico. These assets are generally referred to as the East Bay Field. The current operator of the East Bay Field has filed for protection under Chapter 11 of the U.S. Bankruptcy Code and may be unable to satisfy the eventual decommissioning obligations associated with the East Bay Field. Other companies in the chain of title of the East Bay Field have also sought bankruptcy protection and may be similarly unable to satisfy the eventual decommissioning obligations associated with the East Bay Field. Depending upon the outcome of these bankruptcy proceedings, amounts available under decommissioning bonds and a cash security account and other factors, Devon may be required to perform or fund certain decommissioning obligations associated with the East Bay Field under state and federal regulations applicable to predecessor operators. As a result of these factors and uncertainties, we are currently unable to provide an estimate of potential loss.

v3.24.3
Fair Value Measurements
 9 Months Ended
Sep. 30, 2024
Fair Value Disclosures [Abstract]  
Fair Value Measurements 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 September 30, 2024 and December 31, 2023, 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

 

September 30, 2024 assets (liabilities):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash equivalents

 

$

164

 

 

$

164

 

 

$

164

 

 

$

—

 

 

$

—

 

Commodity derivatives

 

$

168

 

 

$

168

 

 

$

—

 

 

$

168

 

 

$

—

 

Commodity derivatives

 

$

(3

)

 

$

(3

)

 

$

—

 

 

$

(3

)

 

$

—

 

Debt

 

$

(8,884

)

 

$

(8,883

)

 

$

—

 

 

$

(8,883

)

 

$

—

 

Contingent earnout payments

 

$

20

 

 

$

20

 

 

$

—

 

 

$

—

 

 

$

20

 

December 31, 2023 assets (liabilities):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash equivalents

 

$

306

 

 

$

306

 

 

$

306

 

 

$

—

 

 

$

—

 

Commodity derivatives

 

$

208

 

 

$

208

 

 

$

—

 

 

$

208

 

 

$

—

 

Commodity derivatives

 

$

(9

)

 

$

(9

)

 

$

—

 

 

$

(9

)

 

$

—

 

Debt

 

$

(6,155

)

 

$

(6,090

)

 

$

—

 

 

$

(6,090

)

 

$

—

 

Contingent earnout payments

 

$

55

 

 

$

55

 

 

$

—

 

 

$

—

 

 

$

55

 

 

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. Our variable rate debt is non-public and consists of our Term Loan. The fair value of our variable rate debt approximates the carrying value as the underlying SOFR resets every month based on the prevailing market rate.

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.
v3.24.3
Summary of Significant Accounting Policies (Policies)
 9 Months Ended
Sep. 30, 2024
Accounting Policies [Abstract]  
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

 

September 30, 2024

 

 

December 31, 2023

 

Catalyst

 

50%

 

$

282

 

 

$

311

 

Water JV

 

30%

 

 

216

 

 

 

216

 

Matterhorn

 

12.5%

 

 

90

 

 

 

90

 

Fervo

 

14%

 

 

77

 

 

 

—

 

Other

 

Various

 

 

53

 

 

 

49

 

      Total

 

 

 

$

718

 

 

$

666

 

 

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. In the second quarter of 2023, 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.

Devon has an interest in Matterhorn, which is a joint venture in a natural gas pipeline which transports 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.

 

In the first quarter of 2024, Devon committed to invest approximately $100 million in Fervo, a company that generates energy from geothermal wells. As of September 30, 2024, Devon has funded approximately $78 million of the commitment and expects to fund the remaining $22 million commitment in the fourth quarter of 2024. The investment in Fervo allows Devon to exercise significant influence over Fervo, and the investment is accounted for under the equity method of accounting. Devon's investment in Fervo is shown within investments on the consolidated balance sheets and Devon's share of Fervo earnings are reflected as a component of other, net in the accompanying consolidated statements of comprehensive earnings.

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 September 30,

 

 

Nine Months Ended September 30,

 

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

Oil

 

$

2,273

 

 

$

2,377

 

 

$

6,875

 

 

$

6,626

 

Gas

 

 

49

 

 

 

189

 

 

 

234

 

 

 

524

 

NGL

 

 

343

 

 

 

316

 

 

 

981

 

 

 

904

 

Oil, gas and NGL sales

 

 

2,665

 

 

 

2,882

 

 

 

8,090

 

 

 

8,054

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Oil

 

 

815

 

 

 

795

 

 

 

2,423

 

 

 

2,260

 

Gas

 

 

105

 

 

 

153

 

 

 

326

 

 

 

428

 

NGL

 

 

212

 

 

 

200

 

 

 

593

 

 

 

577

 

Marketing and midstream revenues

 

 

1,132

 

 

 

1,148

 

 

 

3,342

 

 

 

3,265

 

Total revenues from contracts with customers

 

$

3,797

 

 

$

4,030

 

 

$

11,432

 

 

$

11,319

 
Recently Issued Accounting Standards Not Yet Adopted

Recently Issued Accounting Standards Not Yet Adopted

In December 2023, the FASB issued ASU 2023-09, Improvements to Income Tax Disclosures. ASU 2023-09 intends to provide investors with enhanced information about an entity’s income taxes by requiring disclosure of items such as disaggregation of the effective tax rate reconciliation as well as information regarding income taxes paid. This ASU will result in additional disclosures for annual reporting periods beginning after December 15, 2024, with early adoption permitted for annual financial statements that have not yet been issued.

In November 2023, the FASB issued ASU 2023-07, Improvements to Reportable Segments Disclosures. Under this ASU, the scope and frequency of segment disclosures is increased to provide investors with additional detail about information utilized by an entity’s “Chief Operating Decision Maker.” This ASU will result in additional disclosures for Devon beginning with our 2024 annual reporting and interim periods beginning in 2025.
v3.24.3
Summary of Significant Accounting Policies (Tables)
 9 Months Ended
Sep. 30, 2024
Accounting Policies [Abstract]  
Schedule of Components of Investment

The following table presents Devon's investments.

 

 

 

 

 

Carrying Amount

 

Investments

 

% Interest

 

September 30, 2024

 

 

December 31, 2023

 

Catalyst

 

50%

 

$

282

 

 

$

311

 

Water JV

 

30%

 

 

216

 

 

 

216

 

Matterhorn

 

12.5%

 

 

90

 

 

 

90

 

Fervo

 

14%

 

 

77

 

 

 

—

 

Other

 

Various

 

 

53

 

 

 

49

 

      Total

 

 

 

$

718

 

 

$

666

 
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 September 30,

 

 

Nine Months Ended September 30,

 

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

Oil

 

$

2,273

 

 

$

2,377

 

 

$

6,875

 

 

$

6,626

 

Gas

 

 

49

 

 

 

189

 

 

 

234

 

 

 

524

 

NGL

 

 

343

 

 

 

316

 

 

 

981

 

 

 

904

 

Oil, gas and NGL sales

 

 

2,665

 

 

 

2,882

 

 

 

8,090

 

 

 

8,054

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Oil

 

 

815

 

 

 

795

 

 

 

2,423

 

 

 

2,260

 

Gas

 

 

105

 

 

 

153

 

 

 

326

 

 

 

428

 

NGL

 

 

212

 

 

 

200

 

 

 

593

 

 

 

577

 

Marketing and midstream revenues

 

 

1,132

 

 

 

1,148

 

 

 

3,342

 

 

 

3,265

 

Total revenues from contracts with customers

 

$

3,797

 

 

$

4,030

 

 

$

11,432

 

 

$

11,319

 
v3.24.3
Acquisitions and Divestitures (Tables)
 9 Months Ended
Sep. 30, 2024
Business Acquisition [Line Items]  
Schedule of Preliminary Allocation of the Total Purchase Price

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

 

 

 

Preliminary Purchase

 

 

 

Price Allocation

 

 

 

as of September 27, 2024

 

 Consideration:

 

 

 

 Devon common stock issued

 

 

37.3

 

 Devon closing price on September 27, 2024

 

$

38.96

 

 Total common equity consideration

 

$

1,455

 

 Cash consideration

 

 

3,567

 

 Total consideration

 

$

5,022

 

 Assets acquired:

 

 

 

 Cash, cash equivalents and restricted cash

 

$

147

 

 Accounts receivable

 

 

226

 

 Inventory

 

 

38

 

 Other current assets

 

 

9

 

 Proved oil and gas property and equipment

 

 

2,931

 

 Unproved oil and gas property and equipment

 

 

1,905

 

 Other property and equipment, net

 

 

210

 

 Right-of-use assets

 

 

29

 

 Total assets acquired

 

$

5,495

 

 Liabilities assumed:

 

 

 

 Accounts payable

 

$

155

 

 Revenue and royalties payable

 

 

209

 

 Other current liabilities

 

 

16

 

 Asset retirement obligations

 

 

75

 

 Lease liabilities

 

 

18

 

 Total liabilities assumed

 

 

473

 

 Net assets acquired

 

$

5,022

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

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

 Total revenues

 

$

4,691

 

 

$

4,553

 

 

$

13,563

 

 

$

12,679

 

 Net earnings

 

$

895

 

 

$

1,044

 

 

$

2,524

 

 

$

2,827

 
v3.24.3
Derivative Financial Instruments (Tables)
 9 Months Ended
Sep. 30, 2024
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of Open Derivative Positions

Commodity Derivatives

As of September 30, 2024, 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)

 

 

Q4 2024

 

 

33,000

 

 

$

78.38

 

 

 

98,000

 

 

$

68.64

 

 

$

83.73

 

 

Q1-Q4 2025

 

 

8,468

 

 

$

71.90

 

 

 

26,992

 

 

$

70.00

 

 

$

76.58

 

 

 

 

 

Oil Basis Swaps

 

Period

 

Index

 

Volume
(Bbls/d)

 

 

Weighted Average
Differential to WTI
($/Bbl)

 

Q4 2024

 

Midland Sweet

 

 

69,500

 

 

$

1.17

 

Q4 2024

 

NYMEX Roll

 

 

26,000

 

 

$

0.82

 

Q1-Q4 2025

 

Midland Sweet

 

 

63,000

 

 

$

1.00

 

Q1-Q4 2026

 

Midland Sweet

 

 

18,000

 

 

$

1.21

 

As of September 30, 2024, 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)

 

Q4 2024

 

 

252,000

 

 

$

3.16

 

 

 

15,000

 

 

$

3.00

 

 

$

3.65

 

Q1-Q4 2025

 

 

220,537

 

 

$

3.34

 

 

 

55,000

 

 

$

3.00

 

 

$

3.69

 

Q1-Q4 2026

 

 

130,000

 

 

$

3.78

 

 

 

50,000

 

 

$

3.25

 

 

$

4.18

 

 

 

 

Natural Gas Basis Swaps

 

Period

 

Index

 

Volume
(MMBtu/d)

 

 

Weighted Average
Differential to
Henry Hub
($/MMBtu)

 

Q4 2024

 

El Paso Natural Gas

 

 

10,000

 

 

$

(1.00

)

Q4 2024

 

Houston Ship Channel

 

 

160,000

 

 

$

(0.28

)

Q4 2024

 

WAHA

 

 

80,000

 

 

$

(0.74

)

Q1-Q4 2025

 

Houston Ship Channel

 

 

170,000

 

 

$

(0.36

)

Q1-Q4 2025

 

WAHA

 

 

50,000

 

 

$

(1.04

)

Q1-Q4 2026

 

Houston Ship Channel

 

 

50,000

 

 

$

(0.29

)

 

As of September 30, 2024, Devon had the following open NGL derivative positions. Devon's NGL positions settle against the average of the prompt month OPIS Mont Belvieu, Texas index.

 

 

 

 

 

Price Swaps

 

Period

 

Product

 

Volume (Bbls/d)

 

 

Weighted Average Price ($/Bbl)

 

Q4 2024

 

Natural Gasoline

 

 

3,000

 

 

$

69.11

 

Q4 2024

 

Normal Butane

 

 

3,350

 

 

$

37.58

 

Q4 2024

 

Propane

 

 

5,250

 

 

$

33.01

 

 
Schedule of Derivative Financial Instruments Included in the Consolidated Balance Sheets The table below presents a summary of these positions as of September 30, 2024 and December 31, 2023.

 

September 30, 2024

 

December 31, 2023

 

 

 

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

$

153

 

$

(12

)

$

141

 

$

213

 

$

(5

)

$

208

 

Other current assets

Long-term derivative asset

 

32

 

 

(5

)

 

27

 

 

—

 

 

—

 

 

—

 

Other long-term assets

Short-term derivative liability

 

(14

)

 

12

 

 

(2

)

 

(7

)

 

5

 

 

(2

)

Other current liabilities

Long-term derivative liability

 

(6

)

 

5

 

 

(1

)

 

(7

)

 

—

 

 

(7

)

Other long-term liabilities

  Total derivative asset

$

165

 

$

—

 

$

165

 

$

199

 

$

—

 

$

199

 

 
v3.24.3
Share-Based Compensation (Tables)
 9 Months Ended
Sep. 30, 2024
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.

 

 

 

Nine Months Ended September 30,

 

 

 

2024

 

 

2023

 

G&A

 

$

74

 

 

$

70

 

Exploration expenses

 

 

1

 

 

 

—

 

Total

 

$

75

 

 

$

70

 

 

 

 

 

 

 

 

Related income tax benefit

 

$

21

 

 

$

31

 
Summary Of Unvested Restricted Stock Awards, Performance-Based Restricted Stock Awards And Performance Share Units 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 12/31/23

 

 

4,033

 

 

$

42.10

 

 

 

1,547

 

 

$

43.25

 

Granted

 

 

1,936

 

 

$

42.53

 

 

 

858

 

 

$

40.41

 

Vested

 

 

(1,805

)

 

$

34.83

 

 

 

(1,226

)

 

$

18.08

 

Forfeited

 

 

(79

)

 

$

45.44

 

 

 

—

 

 

$

—

 

Unvested at 9/30/24

 

 

4,085

 

 

$

45.45

 

 

 

1,179

 

(1)

$

67.38

 

 

A maximum of 2.4 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 2024, 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.

 

 

2024

 

 Grant-date fair value

 

$

56.99

 

 Risk-free interest rate

 

 

4.28

%

 Volatility factor

 

 

46.03

%

 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 September 30, 2024.

 

 

 

Restricted Stock

 

 

Performance

 

 

 

Awards/Units

 

 

Share Units

 

Unrecognized compensation cost

 

$

116

 

 

$

26

 

Weighted average period for recognition (years)

 

 

2.6

 

 

 

1.7

 
v3.24.3
Income Taxes (Tables)
 9 Months Ended
Sep. 30, 2024
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 September 30,

 

Nine Months Ended September 30,

 

 

 

2024

 

2023

 

2024

 

2023

 

Earnings before income taxes

 

$

1,064

 

$

1,072

 

$

2,872

 

$

3,193

 

 

 

 

 

 

 

 

 

 

 

Current income tax expense

 

$

75

 

$

139

 

$

340

 

$

360

 

Deferred income tax expense

 

 

164

 

 

13

 

 

243

 

 

212

 

Total income tax expense

 

$

239

 

$

152

 

$

583

 

$

572

 

 

 

 

 

 

 

 

 

 

 

U.S. statutory income tax rate

 

 

21

%

 

21

%

 

21

%

 

21

%

State income taxes

 

 

3

%

 

1

%

 

2

%

 

1

%

Income tax credits

 

 

(2

%)

 

(8

%)

 

(3

%)

 

(4

%)

Effective income tax rate

 

 

22

%

 

14

%

 

20

%

 

18

%
v3.24.3
Net Earnings Per Share (Tables)
 9 Months Ended
Sep. 30, 2024
Earnings Per Share [Abstract]  
Net Earnings (Loss) Per Share Computations from Continuing Operations

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

 

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

Net earnings available to common shareholders - basic and diluted

 

$

812

 

 

$

910

 

 

$

2,252

 

 

$

2,595

 

Common shares:

 

 

 

 

 

 

 

 

 

 

 

 

Average common shares outstanding - basic

 

 

622

 

 

 

637

 

 

 

626

 

 

 

640

 

Dilutive effect of potential common shares issuable

 

 

1

 

 

 

2

 

 

 

2

 

 

 

3

 

Average common shares outstanding - diluted

 

 

623

 

 

 

639

 

 

 

628

 

 

 

643

 

Net earnings per share available to common shareholders:

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

1.31

 

 

$

1.43

 

 

$

3.60

 

 

$

4.05

 

Diluted

 

$

1.30

 

 

$

1.42

 

 

$

3.59

 

 

$

4.03

 
v3.24.3
Other Comprehensive Earnings (Loss) (Tables)
 9 Months Ended
Sep. 30, 2024
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 September 30,

 

 

Nine Months Ended September 30,

 

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

Pension and postretirement benefit plans:

 

 

 

 

 

 

 

 

 

 

 

 

Beginning accumulated pension and postretirement benefits

 

$

(122

)

 

$

(114

)

 

$

(124

)

 

$

(116

)

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

 

 

1

 

 

 

1

 

 

 

4

 

 

 

4

 

Income tax expense

 

 

—

 

 

 

—

 

 

 

(1

)

 

 

(1

)

Accumulated other comprehensive loss, net of tax

 

$

(121

)

 

$

(113

)

 

$

(121

)

 

$

(113

)

 

(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.
v3.24.3
Supplemental Information to Statements of Cash Flows (Tables)
 9 Months Ended
Sep. 30, 2024
Supplemental Cash Flow Elements [Abstract]  
Schedule of Supplemental Information to Statements of Cash Flows

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

Changes in assets and liabilities, net:

 

 

 

 

 

 

 

 

 

 

 

 

Accounts receivable

 

$

41

 

 

$

(334

)

 

$

26

 

 

$

(86

)

Other current assets

 

 

(13

)

 

 

27

 

 

 

(120

)

 

 

31

 

Other long-term assets

 

 

(9

)

 

 

(31

)

 

 

24

 

 

 

(13

)

Accounts payable and revenues and royalties payable

 

 

(64

)

 

 

194

 

 

 

121

 

 

 

(36

)

Other current liabilities

 

 

57

 

 

 

88

 

 

 

(51

)

 

 

(53

)

Other long-term liabilities

 

 

4

 

 

 

(5

)

 

 

(15

)

 

 

(32

)

Total

 

$

16

 

 

$

(61

)

 

$

(15

)

 

$

(189

)

Supplementary cash flow data:

 

 

 

 

 

 

 

 

 

 

 

 

Interest paid

 

$

90

 

 

$

77

 

 

$

265

 

 

$

266

 

Income taxes paid

 

$

92

 

 

$

50

 

 

$

476

 

 

$

309

 

 

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

v3.24.3
Accounts Receivable (Tables)
 9 Months Ended
Sep. 30, 2024
Accounts Receivable, after Allowance for Credit Loss [Abstract]  
Schedule Of Components Of Accounts Receivable

Components of accounts receivable include the following:

 

 

 

September 30, 2024

 

 

December 31, 2023

 

Oil, gas and NGL sales

 

$

989

 

 

$

965

 

Joint interest billings

 

 

321

 

 

 

251

 

Marketing and midstream revenues

 

 

442

 

 

 

342

 

Other

 

 

34

 

 

 

22

 

Gross accounts receivable

 

 

1,786

 

 

 

1,580

 

Allowance for doubtful accounts

 

 

(7

)

 

 

(7

)

Net accounts receivable

 

$

1,779

 

 

$

1,573

 
v3.24.3
Property, Plant and Equipment (Tables)
 9 Months Ended
Sep. 30, 2024
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.

 

 

 

September 30, 2024

 

 

December 31, 2023

 

Property and equipment:

 

 

 

 

 

 

Proved

 

$

52,190

 

 

$

46,659

 

Unproved and properties under development

 

 

3,286

 

 

 

1,279

 

Total oil and gas

 

 

55,476

 

 

 

47,938

 

Less accumulated DD&A

 

 

(32,321

)

 

 

(30,113

)

Oil and gas property and equipment, net

 

 

23,155

 

 

 

17,825

 

Other property and equipment

 

 

2,630

 

 

 

2,289

 

Less accumulated DD&A

 

 

(835

)

 

 

(786

)

Other property and equipment, net (1)

 

 

1,795

 

 

 

1,503

 

Property and equipment, net

 

$

24,950

 

 

$

19,328

 

 

(1)
$164 million and $136 million related to CDM in 2024 and 2023, respectively.
v3.24.3
Debt And Related Expenses (Tables)
 9 Months Ended
Sep. 30, 2024
Debt Instrument [Line Items]  
Schedule Of Debt Instruments and Balances

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

 

 

 

September 30, 2024

 

 

December 31, 2023

 

5.25% due September 15, 2024

 

$

—

 

 

$

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

 

5.20% due September 15, 2034

 

 

1,250

 

 

 

—

 

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

 

5.75% due September 15, 2054

 

 

1,000

 

 

 

—

 

Term Loan due September 25, 2026

 

 

1,000

 

 

 

—

 

Net premium on debentures and notes

 

 

41

 

 

 

64

 

Debt issuance costs

 

 

(56

)

 

 

(30

)

Total debt

 

$

8,884

 

 

$

6,155

 

Less amount classified as short-term debt

 

 

—

 

 

 

483

 

Total long-term debt

 

$

8,884

 

 

$

5,672

 
Schedule Of Net Financing Cost Components

The following schedule includes the components of net financing costs.

 

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

Interest based on debt outstanding

 

$

98

 

 

$

93

 

 

$

273

 

 

$

282

 

Interest income

 

 

(19

)

 

 

(11

)

 

 

(46

)

 

 

(43

)

Other

 

 

9

 

 

 

(1

)

 

 

13

 

 

 

(8

)

Total net financing costs

 

$

88

 

 

$

81

 

 

$

240

 

 

$

231

 
v3.24.3
Leases (Tables)
 9 Months Ended
Sep. 30, 2024
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 September 30, 2024 and December 31, 2023.

 

 

 

September 30, 2024

 

 

December 31, 2023

 

 

 

Finance

 

 

Operating

 

 

Total

 

 

Finance

 

 

Operating

 

 

Total

 

Right-of-use assets

 

$

257

 

 

$

60

 

 

$

317

 

 

$

246

 

 

$

21

 

 

$

267

 

Lease liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current lease liabilities (1)

 

$

27

 

 

$

30

 

 

$

57

 

 

$

21

 

 

$

12

 

 

$

33

 

Long-term lease liabilities

 

 

298

 

 

 

30

 

 

 

328

 

 

 

286

 

 

 

9

 

 

 

295

 

Total lease liabilities (2)

 

$

325

 

 

$

60

 

 

$

385

 

 

$

307

 

 

$

21

 

 

$

328

 

 

(1)
Current lease liabilities are included in other current liabilities on the consolidated balance sheets.
(2)
Devon has entered into certain leases of equipment related to the exploration, development and production of oil and gas that had terms not yet commenced as of September 30, 2024 and are therefore excluded from the amounts shown above.
v3.24.3
Asset Retirement Obligations (Tables)
 9 Months Ended
Sep. 30, 2024
Asset Retirement Obligation Disclosure [Abstract]  
Summary of Changes in Asset Retirement Obligations

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

 

 

 

Nine Months Ended September 30,

 

 

 

2024

 

 

2023

 

Asset retirement obligations as of beginning of period

 

$

665

 

 

$

529

 

Assumed Grayson Mill obligations

 

 

75

 

 

 

—

 

Liabilities incurred

 

 

21

 

 

 

104

 

Liabilities settled and divested

 

 

(25

)

 

 

(24

)

Revision of estimated obligation

 

 

35

 

 

 

27

 

Accretion expense on discounted obligation

 

 

28

 

 

 

21

 

Asset retirement obligations as of end of period

 

 

799

 

 

 

657

 

Less current portion

 

 

34

 

 

 

16

 

Asset retirement obligations, long-term

 

$

765

 

 

$

641

 
v3.24.3
Stockholders' Equity (Tables)
 9 Months Ended
Sep. 30, 2024
Stockholders' Equity Note [Abstract]  
Summary of Purchases of Common Stock The table below provides information regarding purchases of Devon’s common stock under the $5.0 billion share repurchase program (shares in thousands).

 

 

 

Total Number of
Shares Purchased

 

 

Dollar Value of
Shares Purchased

 

 

Average Price Paid
per Share

 

$5.0 Billion Plan

 

 

 

 

 

 

 

 

 

2021

 

 

13,983

 

 

$

589

 

 

$

42.15

 

2022

 

 

11,708

 

 

 

718

 

 

$

61.36

 

2023:

 

 

 

 

 

 

 

 

 

First quarter

 

 

10,090

 

 

 

545

 

 

$

53.96

 

Second quarter

 

 

3,795

 

 

 

200

 

 

$

52.70

 

Fourth quarter

 

 

5,465

 

 

 

247

 

 

$

45.17

 

2023 Total

 

 

19,350

 

 

 

992

 

 

$

51.23

 

2024:

 

 

 

 

 

 

 

 

 

First quarter

 

 

4,428

 

 

 

193

 

 

$

43.47

 

Second quarter

 

 

5,188

 

 

 

256

 

 

$

49.40

 

Third quarter

 

 

6,675

 

 

 

295

 

 

$

44.23

 

2024 Total

 

 

16,291

 

 

 

744

 

 

$

45.67

 

Total plan

 

 

61,332

 

 

$

3,043

 

 

$

49.62

 
Schedule of Dividends Payable The following table summarizes Devon’s dividends for the first nine months of 2024 and 2023, respectively.

 

 

Fixed

 

 

Variable

 

 

Total

 

 

Rate Per Share

 

2024:

 

 

 

 

 

 

 

 

 

 

 

First quarter

$

143

 

 

$

156

 

 

$

299

 

 

$

0.44

 

Second quarter

 

138

 

 

 

85

 

 

 

223

 

 

$

0.35

 

Third quarter

 

136

 

 

 

136

 

 

 

272

 

 

$

0.44

 

Total year-to-date

$

417

 

 

$

377

 

 

$

794

 

 

 

 

2023:

 

 

 

 

 

 

 

 

 

 

 

First quarter

$

133

 

 

$

463

 

 

$

596

 

 

$

0.89

 

Second quarter

 

128

 

 

 

334

 

 

 

462

 

 

$

0.72

 

Third quarter

 

127

 

 

 

185

 

 

 

312

 

 

$

0.49

 

Total year-to-date

$

388

 

 

$

982

 

 

$

1,370

 

 

 

 
v3.24.3
Fair Value Measurements (Tables)
 9 Months Ended
Sep. 30, 2024
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

 

September 30, 2024 assets (liabilities):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash equivalents

 

$

164

 

 

$

164

 

 

$

164

 

 

$

—

 

 

$

—

 

Commodity derivatives

 

$

168

 

 

$

168

 

 

$

—

 

 

$

168

 

 

$

—

 

Commodity derivatives

 

$

(3

)

 

$

(3

)

 

$

—

 

 

$

(3

)

 

$

—

 

Debt

 

$

(8,884

)

 

$

(8,883

)

 

$

—

 

 

$

(8,883

)

 

$

—

 

Contingent earnout payments

 

$

20

 

 

$

20

 

 

$

—

 

 

$

—

 

 

$

20

 

December 31, 2023 assets (liabilities):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash equivalents

 

$

306

 

 

$

306

 

 

$

306

 

 

$

—

 

 

$

—

 

Commodity derivatives

 

$

208

 

 

$

208

 

 

$

—

 

 

$

208

 

 

$

—

 

Commodity derivatives

 

$

(9

)

 

$

(9

)

 

$

—

 

 

$

(9

)

 

$

—

 

Debt

 

$

(6,155

)

 

$

(6,090

)

 

$

—

 

 

$

(6,090

)

 

$

—

 

Contingent earnout payments

 

$

55

 

 

$

55

 

 

$

—

 

 

$

—

 

 

$

55

 
v3.24.3
Summary of Significant Accounting Policies (Narrative) (Details)
shares in Millions, $ in Millions
 3 Months Ended 9 Months Ended
Sep. 27, 2024
USD ($)
shares
Sep. 30, 2024
USD ($)
a
Sep. 30, 2023
USD ($)
Jun. 30, 2023
USD ($)
Sep. 30, 2024
USD ($)
a
Sep. 30, 2023
USD ($)
Mar. 31, 2024
USD ($)
Summary Of Significant Accounting Policies [Line Items]              
Gain loss on disposition of assets   $ (0) $ 0   $ (16) $ 41  
Williston Acquisition [Member]              
Summary Of Significant Accounting Policies [Line Items]              
Business Combination, Contingent Consideration, Asset, Total $ 5,000            
Cash paid related to acquisition $ 3,500            
Common Stock [Member] | Williston Acquisition [Member]              
Summary Of Significant Accounting Policies [Line Items]              
Number of shares sold in acquisition | shares 37.3            
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    
Fervo [Member]              
Summary Of Significant Accounting Policies [Line Items]              
Investment             $ 100
Commitment amount funded         $ 78    
Committed to making additional investments   $ 22     $ 22    
v3.24.3
Summary of Significant Accounting Policies - (Schedule of Components of Investments) (Details) - USD ($)
$ in Millions
Sep. 30, 2024
Dec. 31, 2023
Summary Of Significant Accounting Policies [Line Items]    
Total Investments $ 718 $ 666
Catalyst [Member]    
Summary Of Significant Accounting Policies [Line Items]    
Total Investments $ 282 311
Percentage Of Interest In Investments 50.00%  
Water JV [Member]    
Summary Of Significant Accounting Policies [Line Items]    
Total Investments $ 216 216
Percentage Of Interest In Investments 30.00%  
Matterhorn [Member]    
Summary Of Significant Accounting Policies [Line Items]    
Total Investments $ 90 90
Percentage Of Interest In Investments 12.50%  
Fervo [Member]    
Summary Of Significant Accounting Policies [Line Items]    
Total Investments $ 77 0
Percentage Of Interest In Investments 14.00%  
Other [Member]    
Summary Of Significant Accounting Policies [Line Items]    
Total Investments $ 53 $ 49
v3.24.3
Summary of Significant Accounting Policies (Schedule of Revenue from Contracts with Customers) (Details) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Sep. 30, 2024
Sep. 30, 2023
Disaggregation Of Revenue [Line Items]        
Total revenues from contracts with customers $ 3,797 $ 4,030 $ 11,432 $ 11,319
Oil, Gas and NGL Sales [Member]        
Disaggregation Of Revenue [Line Items]        
Total revenues from contracts with customers 2,665 2,882 8,090 8,054
Oil, Gas and NGL Sales [Member] | Oil [Member]        
Disaggregation Of Revenue [Line Items]        
Total revenues from contracts with customers 2,273 2,377 6,875 6,626
Oil, Gas and NGL Sales [Member] | Gas [Member]        
Disaggregation Of Revenue [Line Items]        
Total revenues from contracts with customers 49 189 234 524
Oil, Gas and NGL Sales [Member] | NGL [Member]        
Disaggregation Of Revenue [Line Items]        
Total revenues from contracts with customers 343 316 981 904
Marketing and Midstream Revenues [Member]        
Disaggregation Of Revenue [Line Items]        
Total revenues from contracts with customers 1,132 1,148 3,342 3,265
Marketing and Midstream Revenues [Member] | Oil [Member]        
Disaggregation Of Revenue [Line Items]        
Total revenues from contracts with customers 815 795 2,423 2,260
Marketing and Midstream Revenues [Member] | Gas [Member]        
Disaggregation Of Revenue [Line Items]        
Total revenues from contracts with customers 105 153 326 428
Marketing and Midstream Revenues [Member] | NGL [Member]        
Disaggregation Of Revenue [Line Items]        
Total revenues from contracts with customers $ 212 $ 200 $ 593 $ 577
v3.24.3
Acquisition and Divestitures (Narrative) (Details)
shares in Millions, $ in Millions
 3 Months Ended 9 Months Ended
Sep. 30, 2024
USD ($)
shares
Sep. 27, 2024
USD ($)
shares
Sep. 30, 2024
USD ($)
shares
Sep. 30, 2023
USD ($)
Mar. 31, 2023
USD ($)
Sep. 30, 2024
USD ($)
$ / bbl
$ / MMBTU
shares
Sep. 30, 2023
USD ($)
Dec. 31, 2023
shares
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations And Disposition [Line Items]                
Potential additional contingent earnout payment           $ 65    
Common stock, shares issued (in shares) | shares 658.0   658.0     658.0   636.0
Total revenues     $ 4,024 $ 3,836   $ 11,537 $ 11,113  
Net earnings     $ 825 $ 920   2,289 $ 2,621  
Other Current Assets [Member]                
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations And Disposition [Line Items]                
Contingent earnout payments           20    
Barnett Shale [Member]                
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations And Disposition [Line Items]                
Contingent earnout payments         $ 65 $ 20    
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.    
GME Revenues and Earnings                
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations And Disposition [Line Items]                
Total revenues $ 28              
Net earnings $ 4              
Williston Acquisition [Member]                
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations And Disposition [Line Items]                
Total consideration for business acquired   $ 5,000            
Cash paid related to acquisition   $ 3,500            
Williston Acquisition [Member] | Common Stock [Member]                
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations And Disposition [Line Items]                
Common stock, shares issued (in shares) | shares   37.3            
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      
v3.24.3
Acquisitions and Divestitures - Schedule of Preliminary Allocation of the Total Purchase Price (Details) - USD ($)
$ / shares in Units, $ in Millions
Sep. 27, 2024
Sep. 30, 2024
Dec. 31, 2023
Consideration:      
Devon common stock issued   658,000,000 636,000,000
GME      
Consideration:      
Devon common stock issued 37.3    
Devon closing price on September 27, 2024 $ 38.96    
Total common equity consideration $ 1,455    
Cash consideration 3,567    
Total consideration 5,022    
Assets acquired:      
Cash, cash equivalents and restricted cash 147    
Accounts receivable 226    
Inventory 38    
Other current assets 9    
Proved oil and gas property and equipment 2,931    
Unproved and properties under development 1,905    
Other property and equipment, net 210    
Right-of-use assets 29    
Total assets acquired 5,495    
Liabilities assumed:      
Accounts payable 155    
Revenue and royalties payable 209    
Other current liabilities 16    
Asset retirement obligations 75    
Lease liabilities 18    
Total liabilities assumed 473    
Net assets acquired $ 5,022    
v3.24.3
Acquisitions and Divestitures - Schedule of GME Revenues And Earnings Included In Devon's Consolidated Comprehensive Statements of Earnings (Details) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Sep. 30, 2024
Sep. 30, 2023
Business Acquisition [Line Items]        
Total revenues $ 4,024 $ 3,836 $ 11,537 $ 11,113
Net earnings $ 825 $ 920 $ 2,289 $ 2,621
v3.24.3
Acquisitions and Divestitures - Schedule of Pro Forma Adjustments to Confirm Acquisition (Details) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Sep. 30, 2024
Sep. 30, 2023
Business Acquisition [Line Items]        
Total revenues $ 4,024 $ 3,836 $ 11,537 $ 11,113
Net earnings 825 920 2,289 2,621
Pro Forma Financial Information        
Business Acquisition [Line Items]        
Total revenues 4,691 4,553 13,563 12,679
Net earnings $ 895 $ 1,044 $ 2,524 $ 2,827
v3.24.3
Derivative Financial Instruments (Narrative) (Details)
$ in Millions
Sep. 30, 2024
USD ($)
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Cash collateral posted $ 0
v3.24.3
Derivative Financial Instruments (Schedule Of Open Oil Derivative Positions) (Details)
 9 Months Ended
Sep. 30, 2024
$ / bbl
bbl
Nymex West Texas Intermediate Price Collars Oil Q1-Q4 2025 [Member]  
Derivatives, Fair Value [Line Items]  
Volume Per Day (Bbls/d) | bbl 26,992
Weighted Average Floor Price 70
Weighted Average Ceiling Price 76.58
Midland Sweet Q1-Q4 2026 [Member]  
Derivatives, Fair Value [Line Items]  
Volume Per Day (Bbls/d) | bbl 18,000
Weighted Average Differential To WTI Price 1.21
Midland Sweet Q1-Q4 2025 [Member]  
Derivatives, Fair Value [Line Items]  
Volume Per Day (Bbls/d) | bbl 63,000
Weighted Average Differential To WTI Price 1
Nymex West Texas Intermediate Price Collars Oil Q4 2024 [Member]  
Derivatives, Fair Value [Line Items]  
Volume Per Day (Bbls/d) | bbl 98,000
Weighted Average Floor Price 68.64
Weighted Average Ceiling Price 83.73
Nymex West Texas Intermediate Price Swaps Oil Q1-Q4 2025 [Member]  
Derivatives, Fair Value [Line Items]  
Volume Per Day (Bbls/d) | bbl 8,468
Weighted Average Price Swap 71.9
Nymex West Texas Intermediate Price Swaps Oil Q4 2024 [Member]  
Derivatives, Fair Value [Line Items]  
Volume Per Day (Bbls/d) | bbl 33,000
Weighted Average Price Swap 78.38
Midland Sweet Q4 2024 [Member]  
Derivatives, Fair Value [Line Items]  
Volume Per Day (Bbls/d) | bbl 69,500
Weighted Average Differential To WTI Price 1.17
Nymex Roll Q4 2024 [Member]  
Derivatives, Fair Value [Line Items]  
Volume Per Day (Bbls/d) | bbl 26,000
Weighted Average Differential To WTI Price 0.82
v3.24.3
Derivative Financial Instruments (Schedule Of Open Natural Gas Derivative Positions) (Details)
 9 Months Ended
Sep. 30, 2024
MMBTU
$ / Customer
$ / MMBTU
Ferchenry Hub Price Swaps Natural Gas Q4 2024 [Member]  
Derivatives, Fair Value [Line Items]  
Volume Per Day (MMBtu/d) 252,000
Weighted Average Price Swap | $ / MMBTU 3.16
Ferchenry Hub Prices Collars Natural Gas Q4 2024 [Member]  
Derivatives, Fair Value [Line Items]  
Volume Per Day (MMBtu/d) 15,000
Weighted Average Floor Price | $ / MMBTU 3
Weighted Average Ceiling Price | $ / MMBTU 3.65
Ferchenry Hub Price Swaps Natural Gas Q1-Q4 2025 [Member]  
Derivatives, Fair Value [Line Items]  
Volume Per Day (MMBtu/d) 220,537
Weighted Average Price Swap | $ / MMBTU 3.34
Ferchenry Hub Price Swaps Natural Gas Q1-Q4 2026 [Member]  
Derivatives, Fair Value [Line Items]  
Volume Per Day (MMBtu/d) 130,000
Weighted Average Price Swap | $ / MMBTU 3.78
Ferchenry Hub Price Collars Natural Gas Q1-Q4 2025 [Member]  
Derivatives, Fair Value [Line Items]  
Volume Per Day (MMBtu/d) 55,000
Weighted Average Floor Price | $ / Customer 3
Weighted Average Ceiling Price | $ / Customer 3.69
Ferchenry Hub Price Collars Natural Gas Q1-Q4 2026 [Member]  
Derivatives, Fair Value [Line Items]  
Volume Per Day (MMBtu/d) 50,000
Weighted Average Floor Price | $ / Customer 3.25
Weighted Average Ceiling Price | $ / Customer 4.18
E1 Paso Natural Gas Basis Swaps Q4 2024 [Member]  
Derivatives, Fair Value [Line Items]  
Volume Per Day (MMBtu/d) 10,000
Weighted Average Differential To Henry Hub | $ / MMBTU (1)
Houston Ship Channel Natural Gas Basis Swaps Q4 2024 [Member]  
Derivatives, Fair Value [Line Items]  
Volume Per Day (MMBtu/d) 160,000
Weighted Average Differential To Henry Hub | $ / MMBTU (0.28)
Waha Natural Gas Basis Swaps Q4 2024 [Member]  
Derivatives, Fair Value [Line Items]  
Volume Per Day (MMBtu/d) 80,000
Weighted Average Differential To Henry Hub | $ / MMBTU (0.74)
Houston Ship Channel Natural Gas Basis Swaps Q1-Q4 2025 [Member]  
Derivatives, Fair Value [Line Items]  
Volume Per Day (MMBtu/d) 170,000
Weighted Average Differential To Henry Hub | $ / MMBTU (0.36)
Waha Natural Gas Basis Swaps Q1-Q4 2025 [Member]  
Derivatives, Fair Value [Line Items]  
Volume Per Day (MMBtu/d) 50,000
Weighted Average Differential To Henry Hub | $ / MMBTU (1.04)
Houston Ship Channel Natural Gas Basis Swaps Q1-Q4 2026 [Member]  
Derivatives, Fair Value [Line Items]  
Volume Per Day (MMBtu/d) 50,000
Weighted Average Differential To Henry Hub | $ / MMBTU (0.29)
v3.24.3
Derivative Financial Instruments (Schedule Of Open NGL Derivative Positions) (Details)
 9 Months Ended
Sep. 30, 2024
$ / bbl
bbl
Q4 2024 Natural Gasoline [Member]  
Derivatives, Fair Value [Line Items]  
Volume Per Day (Bbls/d) | bbl 3,000
Weighted Average Price Swap | $ / bbl 69.11
Q4 2024 Normal Butane [Member]  
Derivatives, Fair Value [Line Items]  
Volume Per Day (Bbls/d) | bbl 3,350
Weighted Average Price Swap | $ / bbl 37.58
Q4 2024 Propane [Member]  
Derivatives, Fair Value [Line Items]  
Volume Per Day (Bbls/d) | bbl 5,250
Weighted Average Price Swap | $ / bbl 33.01
v3.24.3
Derivative Financial Instruments (Schedule Of Derivative Financial Instruments Included In The Consolidated Balance Sheets) (Details) - USD ($)
$ in Millions
Sep. 30, 2024
Dec. 31, 2023
Derivatives Fair Value [Line Items]    
Gross Fair Value $ 165 $ 199
Amounts Netted 0 0
Net Fair Value 165 199
Short-term Derivative Asset [Member]    
Derivatives Fair Value [Line Items]    
Gross Fair Value 153 213
Amounts Netted (12) (5)
Net Fair Value 141 208
Long-term Derivative Asset [Member]    
Derivatives Fair Value [Line Items]    
Gross Fair Value 32 0
Amounts Netted (5) 0
Net Fair Value 27 0
Short-term Derivative Liability [Member]    
Derivatives Fair Value [Line Items]    
Gross Fair Value (14) (7)
Amounts Netted 12 5
Net Fair Value (2) (2)
Long-term Derivative Liability [Member]    
Derivatives Fair Value [Line Items]    
Gross Fair Value (6) (7)
Amounts Netted 5 0
Net Fair Value $ (1) $ (7)
v3.24.3
Share-Based Compensation (Additional Information) (Details)
 9 Months Ended
Sep. 30, 2024
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%
v3.24.3
Share-Based Compensation (Schedule Of Share-Based Compensation Expense Included In The Consolidated Statements Of Comprehensive Earnings) (Details) - USD ($)
$ in Millions
 9 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]    
Share-based compensation expense $ 75 $ 70
Related income tax benefit 21 31
G&A [Member]    
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]    
Share-based compensation expense 74 70
Exploration Expenses [Member]    
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]    
Share-based compensation expense $ 1 $ 0
v3.24.3
Share-Based Compensation (Summary Of Unvested Restricted Stock Awards, Performance-Based Restricted Stock Awards And Performance Share Units) (Details)
shares in Thousands
 9 Months Ended
Sep. 30, 2024
$ / shares
shares
Restricted Stock Awards [Member]  
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]  
Unvested at December 31, 2023 | shares 4,033
Granted, awards and units | shares 1,936
Vested, awards and units | shares (1,805)
Forfeited, awards and units | shares (79)
Unvested at March 31, 2024 | shares 4,085
Unvested weighted average grant-date fair value at December 31, 2023 | $ / shares $ 42.1
Granted, weighted average grant-date fair value | $ / shares 42.53
Vested, weighted average grant-date fair value | $ / shares 34.83
Forfeited, weighted average grant-date fair value | $ / shares 45.44
Unvested weighted average grant-date fair value at March 31, 2024 | $ / shares $ 45.45
Performance Share Units [Member]  
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]  
Unvested at December 31, 2023 | shares 1,547
Granted, awards and units | shares 858
Vested, awards and units | shares (1,226)
Forfeited, awards and units | shares 0
Unvested at March 31, 2024 | shares 1,179 [1]
Unvested weighted average grant-date fair value at December 31, 2023 | $ / shares $ 43.25
Granted, weighted average grant-date fair value | $ / shares 40.41
Vested, weighted average grant-date fair value | $ / shares 18.08
Forfeited, weighted average grant-date fair value | $ / shares 0
Unvested weighted average grant-date fair value at March 31, 2024 | $ / shares $ 67.38
[1] A maximum of 2.4 million common shares could be awarded based upon Devon’s final TSR ranking.
v3.24.3
Share-Based Compensation (Summary Of Unvested Restricted Stock Awards, Performance-Based Restricted Stock Awards And Performance Share Units) (Parenthetical) (Details)
shares in Millions
 9 Months Ended
Sep. 30, 2024
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 2.4
v3.24.3
Share-Based Compensation (Summary Of Performance Share Units Grant-Date Fair Values And Their Related Assumptions) (Details) - Including Performance Factor Shares Granted [Member]
 9 Months Ended
Sep. 30, 2024
$ / shares
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]  
Grant-date fair value $ 56.99
Risk-free interest rate 4.28%
Volatility factor 46.03%
Contractual term (years) 2 years 10 months 20 days
v3.24.3
Share-Based Compensation (Summary of Unrecognized Compensation Cost And Weighted Average Period For Recognition) (Details)
 9 Months Ended
Sep. 30, 2024
USD ($)
Restricted Stock Awards [Member]  
Unrecognized Compensation And Weighted Average Recognition [Line Items]  
Unrecognized compensation cost $ 116
Weighted average period for recognition (years) 2 years 7 months 6 days
Performance Share Units [Member]  
Unrecognized Compensation And Weighted Average Recognition [Line Items]  
Unrecognized compensation cost $ 26
Weighted average period for recognition (years) 1 year 8 months 12 days
v3.24.3
Restructuring (Narrative) (Details) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Sep. 30, 2024
Sep. 30, 2023
Restructuring Cost And Reserve [Line Items]        
Restructuring and transaction costs $ 8 $ 0 $ 8 $ 0
v3.24.3
Income Taxes (Schedule of Components of Income Tax Expense (Benefit)) (Details) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Sep. 30, 2024
Sep. 30, 2023
Income Tax Disclosure [Abstract]        
Earnings before income taxes $ 1,064 $ 1,072 $ 2,872 $ 3,193
Current income tax expense 75 139 340 360
Deferred income tax expense 164 13 243 212
Total income tax expense $ 239 $ 152 $ 583 $ 572
v3.24.3
Income Taxes (Schedule Of Effective Income Tax Rate Reconciliation) (Details)
 3 Months Ended 9 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Sep. 30, 2024
Sep. 30, 2023
Income Tax Disclosure [Abstract]        
U.S. statutory income tax rate 21.00% 21.00% 21.00% 21.00%
State income taxes 3.00% 1.00% 2.00% 1.00%
Income tax credits (2.00%) (8.00%) (3.00%) (4.00%)
Effective income tax rate 22.00% 14.00% 20.00% 18.00%
v3.24.3
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 9 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Sep. 30, 2024
Sep. 30, 2023
Earnings Per Share [Abstract]        
Net earnings available to common shareholders - basic $ 812 $ 910 $ 2,252 $ 2,595
Net earnings available to common shareholders - diluted $ 812 $ 910 $ 2,252 $ 2,595
Common shares:        
Average common shares outstanding - basic 622 637 626 640
Dilutive effect of potential common shares issuable 1 2 2 3
Average common shares outstanding - diluted 623 639 628 643
Net earnings per share available to common shareholders:        
Basic $ 1.31 $ 1.43 $ 3.6 $ 4.05
Diluted $ 1.3 $ 1.42 $ 3.59 $ 4.03
v3.24.3
Other Comprehensive Earnings (Loss) (Components Of Other Comprehensive Earnings (Loss)) (Details) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Sep. 30, 2024
Sep. 30, 2023
Dec. 31, 2023
Pension and postretirement benefit plans:          
Beginning accumulated pension and postretirement benefits $ (122) $ (114) $ (124) $ (116)  
Recognition of net actuarial loss and prior service cost in earnings [1] 1 1 4 4  
Income tax expense 0 0 (1) (1)  
Accumulated other comprehensive loss, net of tax $ (121) $ (113) $ (121) $ (113) $ (124)
[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.
v3.24.3
Supplemental Information to Statements of Cash Flows (Schedule Of Supplemental Information To Statements Of Cash Flows) (Details) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Sep. 30, 2024
Sep. 30, 2023
Changes in assets and liabilities, net:        
Accounts receivable $ 41 $ (334) $ 26 $ (86)
Other current assets (13) 27 (120) 31
Other long-term assets (9) (31) 24 (13)
Accounts payable and revenues and royalties payable (64) 194 121 (36)
Other current liabilities 57 88 (51) (53)
Other long-term liabilities 4 (5) (15) (32)
Total 16 (61) (15) (189)
Supplementary cash flow data:        
Interest paid 90 77 265 266
Income taxes paid $ 92 $ 50 $ 476 $ 309
v3.24.3
Supplemental Information to Statements of Cash Flows (Narrative) (Details) - USD ($)
$ in Millions
Sep. 30, 2024
Jun. 30, 2024
Dec. 31, 2023
Supplemental Cash Flow [Line Items]      
Other property and equipment $ 2,630   $ 2,289
Water JV [Member]      
Supplemental Cash Flow [Line Items]      
Other property and equipment   $ 150  
v3.24.3
Accounts Receivable (Schedule Of Components Of Accounts Receivable) (Details) - USD ($)
$ in Millions
Sep. 30, 2024
Dec. 31, 2023
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Joint interest billings $ 321 $ 251
Other 34 22
Gross accounts receivable 1,786 1,580
Allowance for doubtful accounts (7) (7)
Net accounts receivable 1,779 1,573
Oil, Gas and NGL Sales [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Gross accounts receivable 989 965
Marketing and Midstream Revenues [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Gross accounts receivable $ 442 $ 342
v3.24.3
Property, Plant and Equipment (Summary of Property and Equipment, net) (Details) - USD ($)
$ in Millions
Sep. 30, 2024
Dec. 31, 2023
Property and equipment:    
Proved $ 52,190 $ 46,659
Unproved and properties under development 3,286 1,279
Total oil and gas 55,476 47,938
Less accumulated DD&A (32,321) (30,113)
Oil and gas property and equipment, net 23,155 17,825
Other property and equipment 2,630 2,289
Less accumulated DD&A (835) (786)
Other property and equipment, net [1] 1,795 1,503
Total property and equipment, net $ 24,950 $ 19,328
[1] $164 million and $136 million related to CDM in 2024 and 2023, respectively.
v3.24.3
Property, Plant and Equipment (Summary of Property and Equipment, net) (Parenthetical) (Details) - USD ($)
$ in Millions
Sep. 30, 2024
Dec. 31, 2023
Property Plant And Equipment [Line Items]    
Other property and equipment, net [1] $ 1,795 $ 1,503
CDM [Member]    
Property Plant And Equipment [Line Items]    
Other property and equipment, net $ 164 $ 136
[1] $164 million and $136 million related to CDM in 2024 and 2023, respectively.
v3.24.3
Debt And Related Expenses (Schedule Of Debt Instruments and Balances) (Details) - USD ($)
$ in Millions
 9 Months Ended
Sep. 30, 2024
Dec. 31, 2023
Debt Instrument [Line Items]    
Net premium on debentures and notes $ 41 $ 64
Debt issuance costs (56) (30)
Total debt 8,884 6,155
Less amount classified as short-term debt 0 483
Long-term debt 8,884 5,672
5.25% due September 15, 2024 [Member]    
Debt Instrument [Line Items]    
Long-term debt, gross $ 0 $ 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  
5.20% due September 15, 2034 [Member]    
Debt Instrument [Line Items]    
Long-term debt, gross $ 1,250 $ 0
Charge on early retirement of debt, cash retirement costs 5.20% 5.20%
Debt, maturity date Sep. 15, 2034  
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  
5.75% due September 15, 2054 [Member]    
Debt Instrument [Line Items]    
Long-term debt, gross $ 1,000 $ 0
Charge on early retirement of debt, cash retirement costs 5.75% 5.75%
Debt, maturity date Sep. 15, 2054  
Term Loan due September 25, 2026    
Debt Instrument [Line Items]    
Long-term debt, gross $ 1,000 $ 0
Debt, maturity date Sep. 25, 2026  
v3.24.3
Debt And Related Expenses (Narrative) (Details) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Sep. 15, 2024
Aug. 12, 2024
Sep. 30, 2024
Sep. 30, 2023
Sep. 30, 2024
Sep. 30, 2023
Aug. 28, 2024
Dec. 31, 2023
Debt Instrument [Line Items]                
Repayments of long-term debt     $ 472 $ 242 $ 472 $ 242    
Maturity date extension         In the first quarter of 2024, Devon exercised its option to extend the 2023 Senior Credit Facility maturity date from March 24, 2028 to March 24, 2029.      
Term Loan Credit Agreement [Member]                
Debt Instrument [Line Items]                
Aggregate Principal Amount   $ 2,000            
Outstanding credit facility borrowings   1,000            
Debt-to-capitalization ratio     0.267   0.267      
Interest rate on the term loan     6.33%   6.33%      
Senior Credit Facility [Member]                
Debt Instrument [Line Items]                
Credit facility, borrowing capacity               $ 3,000
Outstanding credit facility borrowings     $ 0   $ 0      
Debt-to-capitalization ratio     0.267   0.267      
Outstanding letters of credit     $ 4   $ 4      
Senior Credit Facility [Member] | Maximum [Member]                
Debt Instrument [Line Items]                
Debt-to-capitalization ratio     0.65   0.65      
Tranche One [Member] | Term Loan Credit Agreement [Member]                
Debt Instrument [Line Items]                
Aggregate Principal Amount   500,000            
Tranche Two [Member] | Term Loan Credit Agreement [Member]                
Debt Instrument [Line Items]                
Aggregate Principal Amount   $ 1,500            
5.2% due 2034 [Member] | Senior Notes [Member]                
Debt Instrument [Line Items]                
Issuance of Senior Long-Term Debt             $ 1,250  
Debt interest rate, stated percentage             5.20%  
5.75% due 2054 [Member] | Senior Notes [Member]                
Debt Instrument [Line Items]                
Issuance of Senior Long-Term Debt             $ 1,000  
Debt interest rate, stated percentage             5.75%  
5.25% due September 15, 2024 [Member]                
Debt Instrument [Line Items]                
Debt interest rate, stated percentage     5.25%   5.25%     5.25%
5.25% due September 15, 2024 [Member] | Senior Notes [Member]                
Debt Instrument [Line Items]                
Repayments of long-term debt $ 472              
Debt interest rate, stated percentage 5.25%              
8.25% due August 1, 2023 [Member] | Senior Notes [Member]                
Debt Instrument [Line Items]                
Repayments of long-term debt $ 242              
Debt interest rate, stated percentage 8.25%              
v3.24.3
Debt And Related Expenses (Schedule of Net Financing Cost Components) (Details) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Sep. 30, 2024
Sep. 30, 2023
Debt Disclosure [Abstract]        
Interest based on debt outstanding $ 98 $ 93 $ 273 $ 282
Interest income (19) (11) (46) (43)
Other 9 (1) 13 (8)
Total net financing costs $ 88 $ 81 $ 240 $ 231
v3.24.3
Leases (Schedule of Right-of-use Assets and Lease Liabilities) (Details) - USD ($)
$ in Millions
Sep. 30, 2024
Dec. 31, 2023
Leases [Abstract]    
Right-of-use assets, finance lease $ 257 $ 246
Finance lease liabilities:    
Current lease liabilities, finance lease [1] 27 21
Long-term lease liabilities, finance lease 298 286
Total lease liabilities, finance lease [2] 325 307
Right-of-use assets, operating lease 60 21
Operating lease liabilities:    
Current lease liabilities, operating lease [1] 30 12
Long-term lease liabilities, operating lease 30 9
Total lease liabilities, operating lease [2] 60 21
Right-of-use assets 317 267
Lease liabilities:    
Current lease liabilities [1] 57 33
Long-term lease liabilities 328 295
Total lease liabilities [2] $ 385 $ 328
[1] Current lease liabilities are included in other current liabilities on the consolidated balance sheets
[2] Devon has entered into certain leases of equipment related to the exploration, development and production of oil and gas that had terms not yet commenced as of September 30, 2024 and are therefore excluded from the amounts shown above.
v3.24.3
Asset Retirement Obligations (Summary of Changes in Asset Retirement Obligations) (Details) - USD ($)
$ in Millions
 9 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Dec. 31, 2023
Asset Retirement Obligation Disclosure [Abstract]      
Asset retirement obligations as of beginning of period $ 665 $ 529  
Assumed Grayson Mill obligations 75 0  
Liabilities incurred 21 104  
Liabilities settled and divested (25) (24)  
Revision of estimated obligation 35 27  
Accretion expense on discounted obligation 28 21  
Asset retirement obligations as of end of period 799 657  
Less current portion 34 16  
Asset retirement obligations, long-term $ 765 $ 641 $ 643
v3.24.3
Asset Retirement Obligations (Narrative) (Details) - USD ($)
$ in Millions
 9 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Asset Acquisition [Line Items]    
Revision of estimated obligation $ 35 $ 27
v3.24.3
Stockholders' Equity (Narrative) (Details) - USD ($)
$ / shares in Units, $ in Millions
 3 Months Ended 9 Months Ended
Sep. 27, 2024
Jul. 31, 2024
Sep. 30, 2024
Jun. 30, 2024
Mar. 31, 2024
Sep. 30, 2023
Jun. 30, 2023
Mar. 31, 2023
Sep. 30, 2024
Nov. 30, 2024
Stockholders Equity [Abstract]                    
Common stock value for business acquisition     $ 1,455           $ 1,455  
Dividends rate per share     $ 0.44 $ 0.35 $ 0.44 $ 0.49 $ 0.72 $ 0.89    
Maximum [Member]                    
Stockholders Equity [Abstract]                    
Dividends rate per share         0.22          
Minimum [Member]                    
Stockholders Equity [Abstract]                    
Dividends rate per share         $ 0.2          
Common Stock [Member]                    
Stockholders Equity [Abstract]                    
Common shares issued for business acquisition     37           37  
Common stock value for business acquisition     $ 4           $ 4  
Subsequent Event                    
Stockholders Equity [Abstract]                    
Dividend payable, per share                   $ 0.22
Dividend payable amount                   $ 144
Dividends payable, year                   2024
Williston Basin Business [Member]                    
Stockholders Equity [Abstract]                    
Business aquisition date Sep. 27, 2024                  
Total consideration for business acquired $ 5,000                  
Cash Transaction $ 3,500                  
Williston Basin Business [Member] | Common Stock [Member]                    
Stockholders Equity [Abstract]                    
Common shares issued for business acquisition 37,300,000                  
Common stock value for business acquisition $ 1,500                  
Common shares issued price per share for business acquisition $ 38.96                  
Share Repurchase Program [Member] | Maximum [Member]                    
Stockholders Equity [Abstract]                    
Repurchase of common stock   $ 5,000                
Share Repurchase Program [Member] | Minimum [Member]                    
Stockholders Equity [Abstract]                    
Repurchase of common stock   $ 3,000                
Five Billion Dollar Share Repurchase Program Open [Member]                    
Stockholders Equity [Abstract]                    
Repurchase of common stock     $ 5,000           $ 5,000  
Five Billion Dollar Share Repurchase Program Open [Member] | Maximum [Member]                    
Stockholders Equity [Abstract]                    
Repurchase program expiration date   Jun. 30, 2026                
Five Billion Dollar Share Repurchase Program Open [Member] | Minimum [Member]                    
Stockholders Equity [Abstract]                    
Repurchase program expiration date   Dec. 31, 2024                
v3.24.3
Stockholders' Equity (Summary of Purchases of Common Stock) (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Millions
 3 Months Ended 9 Months Ended 12 Months Ended
Sep. 30, 2024
Jun. 30, 2024
Mar. 31, 2024
Dec. 31, 2023
Jun. 30, 2023
Mar. 31, 2023
Sep. 30, 2024
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
5.0 Billion Dollar Share Repurchase Program Closed [Member]                    
Stockholders Equity [Line Items]                    
Total Number of Shares Purchased 6,675 5,188 4,428 5,465 3,795 10,090 16,291 19,350 11,708 13,983
Dollar Value of Shares Purchased $ 295 $ 256 $ 193 $ 247 $ 200 $ 545 $ 744 $ 992 $ 718 $ 589
Average Price Paid per Share $ 44.23 $ 49.4 $ 43.47 $ 45.17 $ 52.7 $ 53.96 $ 45.67 $ 51.23 $ 61.36 $ 42.15
Share Repurchase Program Open [Member]                    
Stockholders Equity [Line Items]                    
Total Number of Shares Purchased             61,332      
Dollar Value of Shares Purchased             $ 3,043      
Average Price Paid per Share             $ 49.62      
v3.24.3
Stockholders' Equity (Summary Of Dividends Paid On Common Stock) (Details) - USD ($)
$ / shares in Units, $ in Millions
 3 Months Ended 9 Months Ended
Sep. 30, 2024
Jun. 30, 2024
Mar. 31, 2024
Sep. 30, 2023
Jun. 30, 2023
Mar. 31, 2023
Sep. 30, 2024
Sep. 30, 2023
Stockholders Equity [Line Items]                
Dividends amount $ 272 $ 223 $ 299 $ 312 $ 462 $ 596 $ 794 $ 1,370
Dividends rate per share $ 0.44 $ 0.35 $ 0.44 $ 0.49 $ 0.72 $ 0.89    
Fixed Dividend Date March 31, 2024                
Stockholders Equity [Line Items]                
Dividends amount     $ 143          
Fixed Dividend Date June 30, 2024                
Stockholders Equity [Line Items]                
Dividends amount   $ 138            
Fixed Dividend Date September 30, 2024                
Stockholders Equity [Line Items]                
Dividends amount $ 136              
Variable Dividend Date March 31, 2024                
Stockholders Equity [Line Items]                
Dividends amount     $ 156          
Variable Dividend Date June 30, 2024                
Stockholders Equity [Line Items]                
Dividends amount   $ 85            
Variable Dividend Date September 30, 2024                
Stockholders Equity [Line Items]                
Dividends amount $ 136              
Fixed Dividend Date March 31, 2023                
Stockholders Equity [Line Items]                
Dividends amount           $ 133    
Fixed Dividend Date June 30, 2023                
Stockholders Equity [Line Items]                
Dividends amount         $ 128      
Fixed Dividend Date September 30, 2023                
Stockholders Equity [Line Items]                
Dividends amount       $ 127        
Variable Dividend Date March 31, 2023                
Stockholders Equity [Line Items]                
Dividends amount           $ 463    
Variable Dividend Date June 30, 2023                
Stockholders Equity [Line Items]                
Dividends amount         $ 334      
Variable Dividend Date September 30, 2023                
Stockholders Equity [Line Items]                
Dividends amount       $ 185        
Fixed Dividend Year to Date 2024                
Stockholders Equity [Line Items]                
Dividends amount             417  
Variable Dividend Year to Date 2024                
Stockholders Equity [Line Items]                
Dividends amount             $ 377  
Fixed Dividend Year to Date 2023                
Stockholders Equity [Line Items]                
Dividends amount               388
Variable Dividend Year to Date 2023                
Stockholders Equity [Line Items]                
Dividends amount               $ 982
v3.24.3
Commitments and Contingencies (Narrative) (Details)
$ in Millions
Sep. 30, 2024
USD ($)
Commitments and Contingencies Disclosure [Abstract]  
Other accrued liabilities current $ 60
v3.24.3
Fair Value Measurements (Schedule Of Carrying Value And Fair Value Measurement Information For Financial Assets And Liabilities) (Details) - USD ($)
$ in Millions
Sep. 30, 2024
Dec. 31, 2023
Carrying Amount [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash equivalents $ 164 $ 306
Debt (8,884) (6,155)
Contingent earnout payments 20 55
Carrying Amount [Member] | Commodity Derivatives [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivatives, assets 168 208
Derivatives, liabilities (3) (9)
Total Fair Value [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash equivalents 164 306
Debt (8,883) (6,090)
Contingent earnout payments 20 55
Total Fair Value [Member] | Commodity Derivatives [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivatives, assets 168 208
Derivatives, liabilities (3) (9)
Level 1 Inputs [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash equivalents 164 306
Level 2 Inputs [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Debt (8,883) (6,090)
Level 2 Inputs [Member] | Commodity Derivatives [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivatives, assets 168 208
Derivatives, liabilities (3) (9)
Level 3 Inputs [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Contingent earnout payments $ 20 $ 55