UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 or 15(d)
of The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): August 3, 2021

Devon Energy Corporation
(Exact name of registrant as specified in its charter)

 
					
DELAWARE	 	001-32318	 	73-1567067	
(State or other jurisdiction
of incorporation)	 	(Commission
File Number)	 	(IRS Employer
Identification No.)	

333 W. SHERIDAN AVE.,
OKLAHOMA CITY, OKLAHOMA	 	73102-5015	
(Address of principal executive offices)	 	(Zip Code)	
Registrant’s telephone number, including area code: (405) 235-3611
Not Applicable
(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
 
☐	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)	
 
☐	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)	
 
☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))	
 
☐	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))	
Securities registered pursuant to Section 12(b) of the Act:

Title of each class	 	Trading
Symbol(s)	 	Name of each exchange
on which registered	
Common Stock, par value $0.10 per share	 	DVN	 	The New York Stock Exchange	
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

 

Item 2.02	Results of Operations and Financial Condition.	
On August 3, 2021, Devon Energy Corporation (the “Company”) announced its financial and operational results for the quarterly period ended June 30, 2021. In connection with this announcement, the Company provided an earnings release and certain supplemental financial information (including guidance and hedging information). Copies of these documents are furnished as Exhibits 99.1 and 99.2, respectively, to this report and, along with certain other materials, will be available on the Company’s website at www.devonenergy.com.
The information contained in this report and the exhibits hereto shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and shall not be incorporated by reference into any filings made by the Company under the Securities Act of 1933, as amended, or the Exchange Act, except as may be expressly set forth by specific reference in such filing.
 
Item 9.01	Financial Statements and Exhibits.	
(d)    Exhibits

Exhibit
No.	  	Description of Exhibits	
		
99.1	  	Earnings release, dated August 3, 2021.	
		
99.2	  	Supplemental financial information (including guidance and hedging information).	
		
104	  	Cover Page Interactive Data File (embedded within the Inline XBRL document).	

SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

DEVON ENERGY CORPORATION	
		
By:	 	/s/ Jeffrey L. Ritenour	
	 	Jeffrey L. Ritenour	
	 	Executive Vice President and Chief Financial Officer	
Date:    August 3, 2021

Exhibit 99.1

             	  		  	Devon Energy Corporation	
	  		  	333 West Sheridan Avenue	
	  		  	Oklahoma City, OK 73102-5015	
Devon Energy Reports Second-Quarter 2021 Financial and Operational Results
OKLAHOMA CITY – Aug. 3, 2021 – Devon Energy Corp. (NYSE: DVN) today reported financial and operational results for the second-quarter 2021. Supplemental financial tables and forward-looking guidance are available on the company’s website at www.devonenergy.com.
KEY FINANCIAL AND OPERATIONAL HIGHLIGHTS
 
 	•	 	Fixed-plus-variable dividend increased by 44 percent to $0.49 per share	
 
 	•	 	Investment-grade financial strength enhanced with redemption of $1.2 billion of debt year-to-date	
 
 	•	 	Operating cash flow increased 85 percent from the prior quarter to $1.1 billion	
 
 	•	 	Free cash flow generation accelerated to $589 million, a 6-fold increase from the prior quarter	
 
 	•	 	Oil production exceeded midpoint guidance, averaging 291,000 barrels per day in the second quarter	
 
 	•	 	Delaware Basin efficiency gains drove capital expenditures 9 percent below guidance	
 
 	•	 	Merger synergies improved corporate cost structure by 27 percent year over year	
CEO PERSPECTIVE
“2021 is shaping up to be an excellent year for Devon that can best be defined as one of comprehensive execution across all elements of our strategy, resulting in expanded margins, growth in free cash flow and the return of significant value to our shareholders through higher dividends and the reduction of debt,” said Rick Muncrief, president and CEO.
“With our business building momentum and generating increasing amounts of free cash flow, a clear differentiator for Devon is the ability to accelerate cash returns through our fixed-plus-variable dividend framework,” said Muncrief. “The power of this uniquely designed dividend strategy was demonstrated by our announcement to increase the dividend by 44 percent this quarter.”
“As I look to the second half of the year, the investment proposition for Devon only continues to strengthen,” Muncrief added. “With our disciplined capital allocation framework, we are positioned to have the highest forward dividend yield in the entire S&P 500 index that is accompanied by a strong balance sheet projected to have a leverage ratio of less than 1-turn by year end.”
FINANCIAL SUMMARY
Devon reported net earnings of $256 million, or $0.38 per diluted share, in the second quarter of 2021. Adjusting for items analysts typically exclude from estimates, Devon’s core earnings were $408 million or $0.60 per diluted share.
The company’s operating cash flow totaled $1.1 billion in the second quarter, an 85 percent increase from the prior quarter. This level of cash flow funded all capital requirements and generated $589 million of free cash flow.
Based on the strong financial performance in the second quarter, Devon’s board declared a fixed-plus-variable dividend of $0.49 per share. This represents a 44 percent increase compared to the payout declared for the previous quarter. The dividend is payable on Sep. 30, 2021 to shareholders of record at the close of business on Sep. 13, 2021.
Devon’s investment-grade financial position also continued to strengthen with the redemption of $710 million of debt in the quarter. This action brings the total amount of debt reduced to $1.2 billion year to date and the company exited the quarter with excellent liquidity of $1.5 billion of cash on hand.
 
1

OPERATING RESULTS
Oil production averaged 291,000 barrels per day in the second quarter, exceeding midpoint guidance by 3,000 barrels per day. This better-than-forecasted volume performance was driven by strong well productivity from the company’s Delaware Basin operations.
Devon’s capital program in the second quarter averaged 15 operated drilling rigs and five completion crews. This level of activity resulted in a total capital spend of $509 million in the quarter, or 9 percent below guidance. This positive variance was attributable to efficiency gains and purchasing power synergies realized in the Delaware Basin.
With activity focused on developing higher-margin production opportunities, oil and liquids sales reached 91 percent of Devon’s oil, gas and NGL sales in the quarter. This exposure to higher-value production, coupled with lower lease operating expenses, expanded the company’s field-level cash margin to $31.79 per Boe. This represents a 10 percent increase quarter over quarter.
The capture of merger synergies improved Devon’s corporate cost structure by 27 percent year-over-year, on a pro forma basis. This performance was driven by lower personnel expenses and reduced financing costs from the company’s ongoing debt-reduction program. Devon expects its merger cost savings to drive $600 million in annual cash flow improvements by year-end 2021.
ASSET-LEVEL HIGHLIGHTS
Delaware Basin: Production averaged 358,000 Boe per day (53 percent oil). This result represents a 22 percent increase in oil production year over year, on a pro forma basis. The company’s strong oil growth was driven by 88 new wells that achieved first production in the quarter across the company’s 400,000 net acre position in New Mexico and Texas.
Capital activity for the quarter was headlined by several large development pads at the company’s Cotton Draw and Stateline leasehold. Initial 30-day rates from this subset of 33 wells averaged 3,300 Boe per day, with per well recoveries estimated to exceed 1.5 million oil-equivalent barrels. In addition to the strong well productivity, completed well costs in the Delaware Basin declined to $543 per lateral foot, a 12 percent reduction compared to the previous year.
Another key operational highlight was the significant improvement in field-level operating costs, which declined 7 percent year-over-year to $5.97 per Boe. This cost performance, combined with higher commodity pricing, expanded field-level margins to $33.79 per Boe in the quarter. This improvement represents more than a two-fold increase in per-unit margin compared to full-year 2020 results.
Anadarko Basin: Production averaged 80,000 Boe per day in the quarter, of which 54 percent was liquids. In the second quarter, Devon brought online 6 legacy Meramec wells from its uncompleted inventory that averaged 30-day rates of 1,800 Boe per day. Additionally, the company continued to progress its $100 million joint venture drilling carry with Dow by spudding 16 new wells in the first half of 2021. Overall, Devon plans to drill up to 30 wells with its Dow partnership this year, with first production from this carry-enhanced activity expected in the second half of the year.
Williston Basin: Production averaged 66,000 Boe per day (70 percent oil). Second-quarter results were highlighted by 13 high-rate development wells brought online, driving an 8 percent production increase quarter over quarter. The Patricia Kelly 2-1HA, a two-mile lateral, achieved the highest 30-day rate reaching 4,200 Boe per day (85 percent oil). With a capital program tailored to mitigate production declines and optimize margins, this asset is projected to generate nearly $700 million of free cash flow this year at current pricing.
Eagle Ford: Production averaged 37,000 Boe per day, a 21 percent increase from the prior quarter. The increase in production was attributable to 21 new wells that achieved peak rates in the second quarter. This low-risk development activity resulted in average 30-day production rates of 2,300 Boe per day. Completed well costs for these wells averaged $4.7 million per well. With operational continuity reestablished, the company plans to maintain production with a two-rig drilling program for the remainder of 2021.
Powder River Basin: Production averaged 22,000 Boe per day, with oil reaching 73 percent of the product mix. The company did not bring online any new wells in the second quarter. Devon’s operational focus for the remainder of 2021 is to advance its understanding of the emerging Niobrara oil resource opportunity and optimize base production.
 
2

2021 OUTLOOK
Devon remains on track to meet the strategic objectives underpinning its 2021 capital program. The company remains committed to its maintenance capital program and has not made any modifications to its capital budget or oil production outlook in 2021. Additional details of Devon’s forward-looking guidance for the third-quarter and full-year 2021 are available on the company’s website at www.devonenergy.com.
ENVIRONMENTAL PERFORMANCE TARGETS
Devon recently established new environmental performance targets focused on reducing the carbon intensity of its operations. Highlights from these targets include reducing GHG emissions 50 percent by 2030, achieving net zero emissions by 2050 and initiatives to constructively engage with upstream and downstream stakeholders to improve performance. For more information, please refer to the Sustainability portion of Devon’s website at www.devonenergy.com/sustainability.
CONFERENCE CALL WEBCAST AND SUPPLEMENTAL EARNINGS MATERIALS
Also provided with today’s release is the company’s detailed earnings presentation that is available on the company’s website at www.devonenergy.com. The company’s second-quarter conference call will be held at 10:00 a.m. Central (11:00 a.m. Eastern) on Wednesday, Aug. 4, 2021, and will serve primarily as a forum for analyst and investor questions and answers.
ABOUT DEVON ENERGY
Devon Energy is a leading oil and gas producer in the U.S. with a premier multi-basin portfolio headlined by a world-class acreage position in the Delaware Basin. Devon’s disciplined cash-return business model is designed to achieve strong returns, generate free cash flow and return capital to shareholders, while focusing on safe and sustainable operations. For more information, please visit www.devonenergy.com.

Investor Contacts	  	Media Contact	
Scott Coody, 405-552-4735	  	Lisa Adams, 405-228-1732	
Chris Carr, 405-228-2496	  		
NON-GAAP DISCLOSURES
This press release includes non-GAAP (generally accepted accounting principles) financial measures. Such non-GAAP measures are not alternatives to GAAP measures, and you should not consider these non-GAAP measures in isolation or as a substitute for analysis of results as reported under GAAP. Reconciliations of these non-GAAP measures and other disclosures are provided within the supplemental financial tables that are available on the company’s website and in the related Form 10-Q filed with the SEC.
FORWARD LOOKING STATEMENTS
This communication includes “forward-looking statements” within the meaning of the federal securities laws. Such statements include those concerning strategic plans, our expectations and objectives for future operations, as well as other future events or conditions, and are often identified by use of the words and phrases “expects,” “believes,” “will,” “would,” “could,” “continue,” “may,” “aims,” “likely to be,” “intends,” “forecasts,” “projections,” “estimates,” “plans,” “expectations,” “targets,” “opportunities,” “potential,” “anticipates,” “outlook” and other similar terminology. All statements, other than statements of historical facts, included in this communication that address activities, events or developments that Devon expects, believes or anticipates will or may occur in the future are forward-looking statements. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond our control. Consequently, actual future results could differ materially and adversely from our expectations due to a number of factors, including, but not limited to: the volatility of oil, gas and NGL prices; risks relating to the COVID-19 pandemic or other future pandemics; uncertainties inherent in estimating oil, gas and NGL reserves; the extent to which we are successful in acquiring and discovering additional reserves; the uncertainties, costs and risks involved in our operations, including as a result of employee misconduct; regulatory restrictions, compliance costs and other risks relating to governmental regulation, including with respect to environmental matters; risks related to regulatory, social and market efforts to address climate change; risks related to our hedging activities; counterparty credit risks; risks relating to our indebtedness; cyberattack risks; our limited control over third parties who operate some of our oil and gas properties; midstream capacity constraints and potential interruptions in production; the extent to which insurance covers any losses we may experience; competition for assets, materials, people and capital; risks related to investors attempting to effect change; our ability to successfully complete mergers, acquisitions and divestitures; risks related to the recent merger with WPX, including the risk that we may not realize the anticipated benefits of the merger or successfully integrate the two legacy businesses; and any of the other risks and uncertainties discussed in Devon’s 2020 Annual Report on Form 10-K (the “2020 Form 10-K”) or other SEC filings.
 
3

The forward-looking statements included in this communication speak only as of the date of this communication, represent current reasonable management’s expectations as of the date of this communication and are subject to the risks and uncertainties identified above as well as those described in the 2020 Form 10-K and in other documents we file from time to time with the SEC. We cannot guarantee the accuracy of our forward-looking statements, and readers are urged to carefully review and consider the various disclosures made in the 2020 Form 10-K and in other documents we file from time to time with the SEC. All subsequent written and oral forward-looking statements attributable to Devon, or persons acting on its behalf, are expressly qualified in their entirety by the cautionary statements above. We do not undertake, and expressly disclaim, any duty to update or revise our forward-looking statements based on new information, future events or otherwise.
 
4

Exhibit 99.2

Devon Energy Second-Quarter 2021
Supplemental Tables

TABLE OF CONTENTS:	  	PAGE:	 	
Income Statement	  	 	2	 	
		
Supplemental Information for Income Statement	  	 	3	 	
		
Cash Flow Statement	  	 	4	 	
		
Balance Sheet	  	 	5	 	
		
Production by Asset	  	 	6	 	
		
Capital and Well Activity by Asset	  	 	7	 	
		
Realized Price by Asset	  	 	8	 	
		
Per-Unit Cash Margin by Asset	  	 	9	 	
		
Non-GAAP Core Earnings (Loss), Non-GAAP EBITDAX	  	 	10	 	
		
Net Debt, Net Debt-to-EBITDAX, Free Cash Flow and Reinvestment Rate	  	 	11	 	
		
Variable Dividend	  	 	12	 	
 
1

CONSOLIDATED STATEMENTS OF EARNINGS

																					
(in millions, except per share amounts)	  	2021	 	 	2020	 	
	  	Quarter 2	 	 	Quarter 1	 	 	Quarter 4	 	 	Quarter 3	 	 	Quarter 2	 	
Oil, gas and NGL sales	  	$	2,154	 	 	$	1,757	 	 	$	786	 	 	$	678	 	 	$	424	 	
Oil, gas and NGL derivatives (1)	  	 	(703	) 	 	 	(528	) 	 	 	(117	) 	 	 	(87	) 	 	 	(361	) 	
Marketing and midstream revenues	  	 	966	 	 	 	821	 	 	 	611	 	 	 	476	 	 	 	331	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total revenues	  	 	2,417	 	 	 	2,050	 	 	 	1,280	 	 	 	1,067	 	 	 	394	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Production expenses (2)	  	 	513	 	 	 	458	 	 	 	271	 	 	 	271	 	 	 	263	 	
Exploration expenses	  	 	3	 	 	 	3	 	 	 	4	 	 	 	39	 	 	 	12	 	
Marketing and midstream expenses	  	 	965	 	 	 	842	 	 	 	618	 	 	 	478	 	 	 	339	 	
Depreciation, depletion and amortization	  	 	536	 	 	 	467	 	 	 	301	 	 	 	299	 	 	 	299	 	
Asset impairments	  	 	—  	 	 	 	—  	 	 	 	27	 	 	 	—  	 	 	 	—  	 	
Asset dispositions	  	 	(87	) 	 	 	(32	) 	 	 	(1	) 	 	 	—  	 	 	 	—  	 	
General and administrative expenses	  	 	94	 	 	 	107	 	 	 	82	 	 	 	75	 	 	 	79	 	
Financing costs, net (3)	  	 	80	 	 	 	77	 	 	 	70	 	 	 	66	 	 	 	69	 	
Restructuring and transaction costs	  	 	23	 	 	 	189	 	 	 	17	 	 	 	32	 	 	 	—  	 	
Other, net	  	 	(14	) 	 	 	(29	) 	 	 	1	 	 	 	—  	 	 	 	13	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total expenses	  	 	2,113	 	 	 	2,082	 	 	 	1,390	 	 	 	1,260	 	 	 	1,074	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Earnings (loss) from continuing operations before income taxes	  	 	304	 	 	 	(32	) 	 	 	(110	) 	 	 	(193	) 	 	 	(680	) 	
Income tax expense (benefit)	  	 	43	 	 	 	(248	) 	 	 	(37	) 	 	 	(90	) 	 	 	(3	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net earnings (loss) from continuing operations	  	 	261	 	 	 	216	 	 	 	(73	) 	 	 	(103	) 	 	 	(677	) 	
Net earnings (loss) from discontinued operations, net of taxes	  	 	—  	 	 	 	—  	 	 	 	(25	) 	 	 	13	 	 	 	9	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net earnings (loss)	  	 	261	 	 	 	216	 	 	 	(98	) 	 	 	(90	) 	 	 	(668	) 	
Net earnings attributable to noncontrolling interests	  	 	5	 	 	 	3	 	 	 	4	 	 	 	2	 	 	 	2	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net earnings (loss) attributable to Devon	  	$	256	 	 	$	213	 	 	$	(102	) 	 	$	(92	) 	 	$	(670	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Basic earnings (loss) per share:	  				 				 				 				 				
Continuing operations	  	$	0.38	 	 	$	0.33	 	 	$	(0.20	) 	 	$	(0.29	) 	 	$	(1.80	) 	
Discontinued operations	  	 	—  	 	 	 	—  	 	 	 	(0.07	) 	 	 	0.04	 	 	 	0.02	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Basic net earnings (loss) per share	  	$	0.38	 	 	$	0.33	 	 	$	(0.27	) 	 	$	(0.25	) 	 	$	(1.78	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Diluted earnings (loss) per share:	  				 				 				 				 				
Continuing operations	  	$	0.38	 	 	$	0.32	 	 	$	(0.20	) 	 	$	(0.29	) 	 	$	(1.80	) 	
Discontinued operations	  	 	—  	 	 	 	—  	 	 	 	(0.07	) 	 	 	0.04	 	 	 	0.02	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Diluted net earnings (loss) per share	  	$	0.38	 	 	$	0.32	 	 	$	(0.27	) 	 	$	(0.25	) 	 	$	(1.78	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Weighted average common shares outstanding:	  				 				 				 				 				
Basic	  	 	677	 	 	 	654	 	 	 	383	 	 	 	383	 	 	 	383	 	
Diluted	  	 	679	 	 	 	656	 	 	 	383	 	 	 	383	 	 	 	383	 	
 
2

SUPPLEMENTAL INFORMATION FOR CONSLIDATED STATEMENTS OF EARNINGS

																					
(1) OIL, GAS AND NGL DERIVATIVES	  	2021	 	 	2020	 	
(in millions)	  	Quarter 2	 	 	Quarter 1	 	 	Quarter 4	 	 	Quarter 3	 	 	Quarter 2	 	
Derivative cash settlements	  	$	(367	) 	 	$	(232	) 	 	$	(27	) 	 	$	10	 	 	$	232	 	
Derivative valuation changes	  	 	(336	) 	 	 	(296	) 	 	 	(90	) 	 	 	(97	) 	 	 	(593	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Oil, gas and NGL derivatives	  	$	(703	) 	 	$	(528	) 	 	$	(117	) 	 	$	(87	) 	 	$	(361	) 	

(2) PRODUCTION EXPENSES	  	2021	 	 	2020	 	
(in millions)	  	Quarter 2	 	 	Quarter 1	 	 	Quarter 4	 	 	Quarter 3	 	 	Quarter 2	 	
Lease operating expense	  	$	210	 	 	$	199	 	 	$	91	 	 	$	100	 	 	$	108	 	
Gathering, processing & transportation	  	 	147	 	 	 	129	 	 	 	130	 	 	 	125	 	 	 	123	 	
Production taxes	  	 	143	 	 	 	117	 	 	 	47	 	 	 	42	 	 	 	25	 	
Property taxes	  	 	13	 	 	 	13	 	 	 	3	 	 	 	4	 	 	 	7	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Production expenses	  	$	513	 	 	$	458	 	 	$	271	 	 	$	271	 	 	$	263	 	

(3) FINANCING COSTS, NET	  	2021	 	 	2020	 	
(in millions)	  	Quarter 2	 	 	Quarter 1	 	 	Quarter 4	 	 	Quarter 3	 	 	Quarter 2	 	
Interest on outstanding debt	  	$	98	 	 	$	105	 	 	$	65	 	 	$	65	 	 	$	65	 	
Gain on early retirement of debt	  	 	(10	) 	 	 	(20	) 	 	 	—  	 	 	 	—  	 	 	 	—  	 	
Interest income	  	 	—  	 	 	 	(1	) 	 	 	—  	 	 	 	(5	) 	 	 	(2	) 	
Other	  	 	(8	) 	 	 	(7	) 	 	 	5	 	 	 	6	 	 	 	6	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Financing costs, net	  	$	80	 	 	$	77	 	 	$	70	 	 	$	66	 	 	$	69	 	

3

CONSOLIDATED STATEMENTS OF CASH FLOWS

																					
(in millions)	  	2021	 	 	2020	 	
	  	Quarter 2	 	 	Quarter 1	 	 	Quarter 4	 	 	Quarter 3	 	 	Quarter 2	 	
Cash flows from operating activities:	  				 				 				 				 				
Net earnings (loss)	  	$	261	 	 	$	216	 	 	$	(98	) 	 	$	(90	) 	 	$	(668	) 	
Adjustments to reconcile net loss to net cash from operating activities:	  				 				 				 				 				
Net (earnings) loss from discontinued operations, net of income taxes	  	 	—  	 	 	 	—  	 	 	 	25	 	 	 	(13	) 	 	 	(9	) 	
Depreciation, depletion and amortization	  	 	536	 	 	 	467	 	 	 	301	 	 	 	299	 	 	 	299	 	
Asset impairments	  	 	—  	 	 	 	—  	 	 	 	27	 	 	 	—  	 	 	 	—  	 	
Leasehold impairments	  	 	1	 	 	 	1	 	 	 	3	 	 	 	36	 	 	 	3	 	
(Amortization) accretion of liabilities	  	 	(7	) 	 	 	(7	) 	 	 	8	 	 	 	8	 	 	 	8	 	
Total losses on commodity derivatives	  	 	703	 	 	 	528	 	 	 	117	 	 	 	87	 	 	 	361	 	
Cash settlements on commodity derivatives	  	 	(367	) 	 	 	(232	) 	 	 	(27	) 	 	 	10	 	 	 	232	 	
Gains on asset dispositions	  	 	(87	) 	 	 	(32	) 	 	 	(1	) 	 	 	—  	 	 	 	—  	 	
Deferred income tax expense (benefit)	  	 	24	 	 	 	(243	) 	 	 	(17	) 	 	 	—  	 	 	 	—  	 	
Share-based compensation	  	 	20	 	 	 	41	 	 	 	18	 	 	 	31	 	 	 	19	 	
Early retirement of debt	  	 	(10	) 	 	 	(20	) 	 	 	—  	 	 	 	—  	 	 	 	—  	 	
Other	  	 	2	 	 	 	—  	 	 	 	—  	 	 	 	1	 	 	 	4	 	
Changes in assets and liabilities, net	  	 	17	 	 	 	(127	) 	 	 	2	 	 	 	58	 	 	 	(99	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net cash from operating activities - continuing operations	  	 	1,093	 	 	 	592	 	 	 	358	 	 	 	427	 	 	 	150	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Cash flows from investing activities:	  				 				 				 				 				
Capital expenditures	  	 	(504	) 	 	 	(499	) 	 	 	(217	) 	 	 	(204	) 	 	 	(307	) 	
Acquisitions of property and equipment	  	 	(5	) 	 	 	—  	 	 	 	(3	) 	 	 	—  	 	 	 	(1	) 	
Divestitures of property and equipment	  	 	49	 	 	 	15	 	 	 	5	 	 	 	1	 	 	 	3	 	
WPX acquired cash	  	 	—  	 	 	 	344	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	
Distributions from equity method investments	  	 	8	 	 	 	10	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net cash from investing activities - continuing operations	  	 	(452	) 	 	 	(130	) 	 	 	(215	) 	 	 	(203	) 	 	 	(305	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Cash flows from financing activities:	  				 				 				 				 				
Repayments of long-term debt	  	 	(710	) 	 	 	(533	) 	 	 	—  	 	 	 	—  	 	 	 	—  	 	
Early retirement of debt	  	 	(32	) 	 	 	(27	) 	 	 	—  	 	 	 	—  	 	 	 	—  	 	
Dividends paid on common stock	  	 	(229	) 	 	 	(203	) 	 	 	(138	) 	 	 	(43	) 	 	 	(42	) 	
Contributions from noncontrolling interests	  	 	3	 	 	 	—  	 	 	 	9	 	 	 	1	 	 	 	6	 	
Distributions to noncontrolling interests	  	 	(5	) 	 	 	(4	) 	 	 	(4	) 	 	 	(4	) 	 	 	(3	) 	
Acquisition of noncontrolling interests	  	 	—  	 	 	 	(24	) 	 	 	—  	 	 	 	—  	 	 	 	—  	 	
Shares exchanged for tax withholdings and other	  	 	(9	) 	 	 	(33	) 	 	 	(1	) 	 	 	—  	 	 	 	—  	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net cash from financing activities - continuing operations	  	 	(982	) 	 	 	(824	) 	 	 	(134	) 	 	 	(46	) 	 	 	(39	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Effect of exchange rate changes on cash - continuing	  	 	2	 	 	 	3	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net change in cash, cash equivalents and restricted cash of continuing operations	  	 	(339	) 	 	 	(359	) 	 	 	9	 	 	 	178	 	 	 	(194	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Cash flows from discontinued operations:	  				 				 				 				 				
Operating activities	  	 	—  	 	 	 	—  	 	 	 	19	 	 	 	45	 	 	 	(43	) 	
Investing activities	  	 	—  	 	 	 	—  	 	 	 	310	 	 	 	1	 	 	 	171	 	
Effect of exchange rate changes on cash	  	 	—  	 	 	 	—  	 	 	 	2	 	 	 	4	 	 	 	8	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net change in cash, cash equivalents and restricted cash of discontinued operations	  	 	—  	 	 	 	—  	 	 	 	331	 	 	 	50	 	 	 	136	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net change in cash, cash equivalents and restricted cash	  	 	(339	) 	 	 	(359	) 	 	 	340	 	 	 	228	 	 	 	(58	) 	
Cash, cash equivalents and restricted cash at beginning of period	  	 	1,878	 	 	 	2,237	 	 	 	1,897	 	 	 	1,669	 	 	 	1,727	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Cash, cash equivalents and restricted cash at end of period	  	$	1,539	 	 	$	1,878	 	 	$	2,237	 	 	$	1,897	 	 	$	1,669	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Reconciliation of cash, cash equivalents and restricted cash:	  				 				 				 				 				
Cash and cash equivalents	  	$	1,348	 	 	$	1,683	 	 	$	2,047	 	 	$	1,707	 	 	$	1,474	 	
Restricted cash	  	 	191	 	 	 	195	 	 	 	190	 	 	 	190	 	 	 	195	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total cash, cash equivalents and restricted cash	  	$	1,539	 	 	$	1,878	 	 	$	2,237	 	 	$	1,897	 	 	$	1,669	 	

4

CONSOLIDATED BALANCE SHEETS

									
(in millions)	  	June 30,	 	 	December 31,	 	
	  	2021	 	 	2020	 	
Current assets:	  				 				
Cash, cash equivalents and restricted cash	  	$	1,539	 	 	$	2,237	 	
Accounts receivable	  	 	1,185	 	 	 	601	 	
Income tax receivable	  	 	40	 	 	 	174	 	
Other current assets	  	 	312	 	 	 	248	 	
	  	 	 	 	 	 	 	 	
Total current assets	  	 	3,076	 	 	 	3,260	 	
Oil and gas property and equipment, based on successful efforts accounting, net	  	 	13,727	 	 	 	4,436	 	
Other property and equipment, net	  	 	1,462	 	 	 	957	 	
	  	 	 	 	 	 	 	 	
Total property and equipment, net	  	 	15,189	 	 	 	5,393	 	
Goodwill	  	 	753	 	 	 	753	 	
Right-of-use assets	  	 	252	 	 	 	223	 	
Investments	  	 	398	 	 	 	12	 	
Other long-term assets	  	 	397	 	 	 	271	 	
	  	 	 	 	 	 	 	 	
Total assets	  	$	20,065	 	 	$	9,912	 	
	  	 	 	 	 	 	 	 	
Current liabilities:	  				 				
Accounts payable	  	$	487	 	 	$	242	 	
Revenues and royalties payable	  	 	1,030	 	 	 	662	 	
Other current liabilities	  	 	1,555	 	 	 	536	 	
	  	 	 	 	 	 	 	 	
Total current liabilities	  	 	3,072	 	 	 	1,440	 	
Long-term debt	  	 	6,502	 	 	 	4,298	 	
Lease liabilities	  	 	258	 	 	 	246	 	
Asset retirement obligations	  	 	450	 	 	 	358	 	
Other long-term liabilities	  	 	1,248	 	 	 	551	 	
Stockholders’ equity:	  				 				
Common stock	  	 	68	 	 	 	38	 	
Additional paid-in capital	  	 	8,189	 	 	 	2,766	 	
Retained earnings	  	 	243	 	 	 	208	 	
Accumulated other comprehensive loss	  	 	(101	) 	 	 	(127	) 	
	  	 	 	 	 	 	 	 	
Total stockholders’ equity attributable to Devon	  	 	8,399	 	 	 	2,885	 	
Noncontrolling interests	  	 	136	 	 	 	134	 	
	  	 	 	 	 	 	 	 	
Total equity	  	 	8,535	 	 	 	3,019	 	
	  	 	 	 	 	 	 	 	
Total liabilities and equity	  	$	20,065	 	 	$	9,912	 	
	  	 	 	 	 	 	 	 	
Common shares outstanding	  	 	677	 	 	 	382	 	
 
5

PRODUCTION TREND

																					
 	  	2021	 	  	2020	 	
 	  	Quarter 2	 	  	Quarter 1	 	  	Quarter 4	 	  	Quarter 3	 	  	Quarter 2	 	
Oil (MBbls/d)	  				  				  				  				  				
Delaware Basin	  	 	191	 	  	 	172	 	  	 	99	 	  	 	77	 	  	 	79	 	
Anadarko Basin	  	 	17	 	  	 	13	 	  	 	16	 	  	 	19	 	  	 	21	 	
Williston Basin	  	 	46	 	  	 	44	 	  	 	—  	 	  	 	—  	 	  	 	—  	 	
Eagle Ford	  	 	18	 	  	 	16	 	  	 	18	 	  	 	22	 	  	 	27	 	
Powder River Basin	  	 	16	 	  	 	17	 	  	 	16	 	  	 	21	 	  	 	18	 	
Other	  	 	3	 	  	 	6	 	  	 	7	 	  	 	7	 	  	 	8	 	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total	  	 	291	 	  	 	268	 	  	 	156	 	  	 	146	 	  	 	153	 	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Natural gas liquids (MBbls/d)	  				  				  				  				  				
Delaware Basin	  	 	82	 	  	 	60	 	  	 	43	 	  	 	38	 	  	 	29	 	
Anadarko Basin	  	 	26	 	  	 	21	 	  	 	25	 	  	 	30	 	  	 	25	 	
Williston Basin	  	 	9	 	  	 	8	 	  	 	—  	 	  	 	—  	 	  	 	—  	 	
Eagle Ford	  	 	9	 	  	 	6	 	  	 	9	 	  	 	11	 	  	 	12	 	
Powder River Basin	  	 	3	 	  	 	3	 	  	 	3	 	  	 	3	 	  	 	2	 	
Other	  	 	—  	 	  	 	1	 	  	 	—  	 	  	 	1	 	  	 	1	 	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total	  	 	129	 	  	 	99	 	  	 	80	 	  	 	83	 	  	 	69	 	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Gas (MMcf/d)	  				  				  				  				  				
Delaware Basin	  	 	513	 	  	 	471	 	  	 	267	 	  	 	239	 	  	 	241	 	
Anadarko Basin	  	 	225	 	  	 	200	 	  	 	233	 	  	 	242	 	  	 	262	 	
Williston Basin	  	 	61	 	  	 	49	 	  	 	—  	 	  	 	—  	 	  	 	—  	 	
Eagle Ford	  	 	59	 	  	 	47	 	  	 	60	 	  	 	73	 	  	 	87	 	
Powder River Basin	  	 	21	 	  	 	21	 	  	 	22	 	  	 	23	 	  	 	20	 	
Other	  	 	2	 	  	 	3	 	  	 	2	 	  	 	3	 	  	 	4	 	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total	  	 	881	 	  	 	791	 	  	 	584	 	  	 	580	 	  	 	614	 	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total oil equivalent (MBoe/d)	  				  				  				  				  				
Delaware Basin	  	 	358	 	  	 	310	 	  	 	186	 	  	 	155	 	  	 	149	 	
Anadarko Basin	  	 	80	 	  	 	68	 	  	 	81	 	  	 	89	 	  	 	90	 	
Williston Basin	  	 	66	 	  	 	61	 	  	 	—  	 	  	 	—  	 	  	 	—  	 	
Eagle Ford	  	 	37	 	  	 	30	 	  	 	37	 	  	 	46	 	  	 	53	 	
Powder River Basin	  	 	22	 	  	 	23	 	  	 	22	 	  	 	28	 	  	 	24	 	
Other	  	 	4	 	  	 	7	 	  	 	7	 	  	 	8	 	  	 	9	 	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total	  	 	567	 	  	 	499	 	  	 	333	 	  	 	326	 	  	 	325	 	

6

CAPITAL EXPENDITURES

																					
(in millions)	  	2021	 	  	2020	 	
	  	Quarter 2	 	  	Quarter 1	 	  	Quarter 4	 	  	Quarter 3	 	  	Quarter 2	 	
Delaware Basin	  	$	394	 	  	$	355	 	  	$	153	 	  	$	179	 	  	$	148	 	
Anadarko Basin	  	 	11	 	  	 	13	 	  	 	3	 	  	 	1	 	  	 	3	 	
Williston Basin	  	 	19	 	  	 	20	 	  	 	—  	 	  	 	—  	 	  	 	—  	 	
Eagle Ford	  	 	36	 	  	 	29	 	  	 	2	 	  	 	1	 	  	 	10	 	
Powder River Basin	  	 	5	 	  	 	27	 	  	 	22	 	  	 	11	 	  	 	39	 	
Other	  	 	2	 	  	 	3	 	  	 	3	 	  	 	3	 	  	 	3	 	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total upstream capital	  	$	467	 	  	$	447	 	  	$	183	 	  	$	195	 	  	$	203	 	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Midstream	  	 	22	 	  	 	24	 	  	 	3	 	  	 	7	 	  	 	8	 	
Other	  	 	20	 	  	 	16	 	  	 	3	 	  	 	5	 	  	 	3	 	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total capital	  	$	509	 	  	$	487	 	  	$	189	 	  	$	207	 	  	$	214	 	

SUPPLEMENTAL INFORMATION FOR UPSTREAM CAPITAL EXPENDITURES	 	
			
GROSS OPERATED SPUDS	  	2021	 	  	2020	 	
	  	Quarter 2	 	  	Quarter 1	 	  	Quarter 4	 	  	Quarter 3	 	  	Quarter 2	 	
Delaware Basin	  	 	55	 	  	 	60	 	  	 	21	 	  	 	35	 	  	 	27	 	
Anadarko Basin	  	 	8	 	  	 	8	 	  	 	—  	 	  	 	—  	 	  	 	—  	 	
Williston Basin	  	 	—  	 	  	 	7	 	  	 	—  	 	  	 	—  	 	  	 	—  	 	
Eagle Ford	  	 	11	 	  	 	14	 	  	 	—  	 	  	 	—  	 	  	 	—  	 	
Powder River Basin	  	 	1	 	  	 	—  	 	  	 	2	 	  	 	—  	 	  	 	—  	 	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total	  	 	75	 	  	 	89	 	  	 	23	 	  	 	35	 	  	 	27	 	

GROSS OPERATED WELLS TIED-IN	  	2021	 	  	2020	 	
	  	Quarter 2	 	  	Quarter 1	 	  	Quarter 4	 	  	Quarter 3	 	  	Quarter 2	 	
Delaware Basin	  	 	88	 	  	 	52	 	  	 	23	 	  	 	32	 	  	 	22	 	
Anadarko Basin	  	 	6	 	  	 	—  	 	  	 	—  	 	  	 	—  	 	  	 	—  	 	
Williston Basin	  	 	13	 	  	 	—  	 	  	 	—  	 	  	 	—  	 	  	 	—  	 	
Eagle Ford	  	 	9	 	  	 	12	 	  	 	—  	 	  	 	—  	 	  	 	13	 	
Powder River Basin	  	 	—  	 	  	 	10	 	  	 	2	 	  	 	9	 	  	 	4	 	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total	  	 	116	 	  	 	74	 	  	 	25	 	  	 	41	 	  	 	39	 	

AVERAGE LATERAL LENGTH	  	2021	 	  	2020	 	
(based on wells tied-in)	  	Quarter 2	 	  	Quarter 1	 	  	Quarter 4	 	  	Quarter 3	 	  	Quarter 2	 	
Delaware Basin	  	 	10,000’	 	  	 	10,000’	 	  	 	9,800’	 	  	 	9,900’	 	  	 	9,100’	 	
Anadarko Basin	  	 	9,600’	 	  	 	—  	 	  	 	—  	 	  	 	—  	 	  	 	—  	 	
Williston Basin	  	 	10,000’	 	  	 	—  	 	  	 	—  	 	  	 	—  	 	  	 	—  	 	
Eagle Ford	  	 	5,600’	 	  	 	4,400’	 	  	 	—  	 	  	 	—  	 	  	 	5,900’	 	
Powder River Basin	  	 	—  	 	  	 	9,800’	 	  	 	13,600’	 	  	 	9,800’	 	  	 	8,100’	 	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total	  	 	9,600’	 	  	 	9,100’	 	  	 	10,100’	 	  	 	9,900’	 	  	 	7,900’	 	

7

REALIZED PRICING

																					
BENCHMARK PRICES	  	2021	 	 	2020	 	
(average prices)	  	Quarter 2	 	 	Quarter 1	 	 	Quarter 4	 	 	Quarter 3	 	 	Quarter 2	 	
Oil ($/Bbl) - West Texas Intermediate (Cushing)	  	$	66.04	 	 	$	57.87	 	 	$	42.65	 	 	$	40.86	 	 	$	28.42	 	
Natural Gas ($/Mcf) - Henry Hub	  	$	2.83	 	 	$	2.71	 	 	$	2.67	 	 	$	1.98	 	 	$	1.71	 	
NGL ($/Bbl) - Mont Belvieu Blended	  	$	28.54	 	 	$	25.81	 	 	$	20.01	 	 	$	16.69	 	 	$	12.57	 	
			
REALIZED PRICES	  	2021	 	 	2020	 	
	  	Quarter 2	 	 	Quarter 1	 	 	Quarter 4	 	 	Quarter 3	 	 	Quarter 2	 	
Oil (Per Bbl)	  				 				 				 				 				
Delaware Basin	  	$	63.93	 	 	$	56.07	 	 	$	40.67	 	 	$	39.19	 	 	$	22.70	 	
Anadarko Basin	  	 	63.51	 	 	 	55.86	 	 	 	40.34	 	 	 	37.88	 	 	 	19.52	 	
Williston Basin	  	 	62.00	 	 	 	52.74	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	
Eagle Ford	  	 	64.04	 	 	 	54.90	 	 	 	37.83	 	 	 	33.68	 	 	 	15.30	 	
Powder River Basin	  	 	62.36	 	 	 	53.77	 	 	 	36.42	 	 	 	35.39	 	 	 	24.03	 	
Other	  	 	72.85	 	 	 	55.65	 	 	 	39.93	 	 	 	37.33	 	 	 	25.45	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Realized price without hedges	  	 	63.63	 	 	 	55.28	 	 	 	39.84	 	 	 	37.56	 	 	 	21.25	 	
Cash settlements	  	 	(13.29	) 	 	 	(9.13	) 	 	 	(1.83	) 	 	 	0.65	 	 	 	15.25	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Realized price, including cash settlements	  	$	50.34	 	 	$	46.15	 	 	$	38.01	 	 	$	38.21	 	 	$	36.50	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Natural gas liquids (Per Bbl)	  				 				 				 				 				
Delaware Basin	  	$	23.81	 	 	$	26.25	 	 	$	13.67	 	 	$	11.49	 	 	$	7.94	 	
Anadarko Basin	  	 	25.55	 	 	 	23.14	 	 	 	15.65	 	 	 	12.68	 	 	 	9.31	 	
Williston Basin	  	 	14.76	 	 	 	18.51	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	
Eagle Ford	  	 	25.46	 	 	 	24.44	 	 	 	15.66	 	 	 	13.74	 	 	 	10.02	 	
Powder River Basin	  	 	35.46	 	 	 	30.19	 	 	 	19.39	 	 	 	13.10	 	 	 	10.07	 	
Other	  	 	41.19	 	 	 	31.86	 	 	 	24.24	 	 	 	21.74	 	 	 	10.19	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Realized price without hedges	  	 	23.89	 	 	 	25.01	 	 	 	14.77	 	 	 	12.36	 	 	 	8.89	 	
Cash settlements	  	 	(0.25	) 	 	 	(0.20	) 	 	 	(0.01	) 	 	 	(0.30	) 	 	 	0.51	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Realized price, including cash settlements	  	$	23.64	 	 	$	24.81	 	 	$	14.76	 	 	$	12.06	 	 	$	9.40	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Gas (Per Mcf)	  				 				 				 				 				
Delaware Basin	  	$	2.31	 	 	$	3.19	 	 	$	1.51	 	 	$	1.11	 	 	$	1.05	 	
Anadarko Basin	  	 	3.15	 	 	 	2.49	 	 	 	2.29	 	 	 	1.66	 	 	 	1.31	 	
Williston Basin	  	 	(1.60	) 	 	 	(0.48	) 	 	 	—  	 	 	 	—  	 	 	 	—  	 	
Eagle Ford	  	 	3.25	 	 	 	3.15	 	 	 	2.38	 	 	 	1.95	 	 	 	1.79	 	
Powder River Basin	  	 	3.54	 	 	 	5.27	 	 	 	2.70	 	 	 	1.94	 	 	 	1.80	 	
Other	  	 	2.74	 	 	 	2.57	 	 	 	2.87	 	 	 	1.52	 	 	 	1.32	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Realized price without hedges	  	 	2.35	 	 	 	2.84	 	 	 	1.96	 	 	 	1.48	 	 	 	1.29	 	
Cash settlements	  	 	(0.15	) 	 	 	(0.15	) 	 	 	0.00	 	 	 	0.06	 	 	 	0.28	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Realized price, including cash settlements	  	$	2.20	 	 	$	2.69	 	 	$	1.96	 	 	$	1.54	 	 	$	1.57	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total oil equivalent (Per Boe)	  				 				 				 				 				
Delaware Basin	  	$	42.84	 	 	$	40.95	 	 	$	26.94	 	 	$	24.00	 	 	$	15.39	 	
Anadarko Basin	  	 	30.34	 	 	 	25.35	 	 	 	19.79	 	 	 	16.81	 	 	 	10.98	 	
Williston Basin	  	 	43.98	 	 	 	40.79	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	
Eagle Ford	  	 	42.84	 	 	 	38.90	 	 	 	25.97	 	 	 	22.78	 	 	 	12.90	 	
Powder River Basin	  	 	52.55	 	 	 	47.58	 	 	 	31.08	 	 	 	29.83	 	 	 	20.80	 	
Other	  	 	65.37	 	 	 	50.58	 	 	 	37.67	 	 	 	34.15	 	 	 	22.95	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Realized price without hedges	  	 	41.75	 	 	 	39.14	 	 	 	25.63	 	 	 	22.60	 	 	 	14.37	 	
Cash settlements	  	 	(7.11	) 	 	 	(5.17	) 	 	 	(0.86	) 	 	 	0.33	 	 	 	7.83	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Realized price, including cash settlements	  	$	34.64	 	 	$	33.97	 	 	$	24.77	 	 	$	22.93	 	 	$	22.20	 	

8

ASSET MARGINS

																					
BENCHMARK PRICES	  	2021	 	 	2020	 	
(average prices)	  	Quarter 2	 	 	Quarter 1	 	 	Quarter 4	 	 	Quarter 3	 	 	Quarter 2	 	
Oil ($/Bbl) - West Texas Intermediate (Cushing)	  	$	66.04	 	 	$	57.87	 	 	$	42.65	 	 	$	40.86	 	 	$	28.42	 	
Natural Gas ($/Mcf) - Henry Hub	  	$	2.83	 	 	$	2.71	 	 	$	2.67	 	 	$	1.98	 	 	$	1.71	 	
NGL ($/Bbl) - Mont Belvieu Blended	  	$	28.54	 	 	$	25.81	 	 	$	20.01	 	 	$	16.69	 	 	$	12.57	 	
			
PER-UNIT CASH MARGIN BY ASSET (per Boe)	  	2021	 	 	2020	 	
	  	Quarter 2	 	 	Quarter 1	 	 	Quarter 4	 	 	Quarter 3	 	 	Quarter 2	 	
Delaware Basin	  				 				 				 				 				
Realized price	  	$	42.84	 	 	$	40.95	 	 	$	26.94	 	 	$	24.00	 	 	$	15.39	 	
Lease operating expenses	  	 	(3.91	) 	 	 	(3.97	) 	 	 	(2.38	) 	 	 	(3.00	) 	 	 	(3.56	) 	
Gathering, processing & transportation	  	 	(2.06	) 	 	 	(1.96	) 	 	 	(2.40	) 	 	 	(2.68	) 	 	 	(2.88	) 	
Production & property taxes	  	 	(3.08	) 	 	 	(2.95	) 	 	 	(2.08	) 	 	 	(1.80	) 	 	 	(1.14	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Field-level cash margin	  	$	33.79	 	 	$	32.07	 	 	$	20.08	 	 	$	16.52	 	 	$	7.81	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Anadarko Basin	  				 				 				 				 				
Realized price	  	$	30.34	 	 	$	25.35	 	 	$	19.79	 	 	$	16.81	 	 	$	10.98	 	
Lease operating expenses	  	 	(2.96	) 	 	 	(3.82	) 	 	 	(2.57	) 	 	 	(2.16	) 	 	 	(2.42	) 	
Gathering, processing & transportation	  	 	(6.06	) 	 	 	(6.31	) 	 	 	(8.39	) 	 	 	(7.39	) 	 	 	(6.57	) 	
Production & property taxes	  	 	(1.46	) 	 	 	(1.21	) 	 	 	(0.55	) 	 	 	(0.54	) 	 	 	(0.32	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Field-level cash margin	  	$	19.86	 	 	$	14.01	 	 	$	8.28	 	 	$	6.72	 	 	$	1.67	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Williston Basin	  				 				 				 				 				
Realized price	  	$	43.98	 	 	$	40.79	 	 	$	—  	 	 	$	—  	 	 	$	—  	 	
Lease operating expenses	  	 	(4.87	) 	 	 	(5.13	) 	 	 	—  	 	 	 	—  	 	 	 	—  	 	
Gathering, processing & transportation	  	 	(1.86	) 	 	 	(2.14	) 	 	 	—  	 	 	 	—  	 	 	 	—  	 	
Production & property taxes	  	 	(4.27	) 	 	 	(3.82	) 	 	 	—  	 	 	 	—  	 	 	 	—  	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Field-level cash margin	  	$	32.98	 	 	$	29.70	 	 	$	—  	 	 	$	—  	 	 	$	—  	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Eagle Ford	  				 				 				 				 				
Realized price	  	$	42.84	 	 	$	38.90	 	 	$	25.97	 	 	$	22.78	 	 	$	12.90	 	
Lease operating expenses	  	 	(3.47	) 	 	 	(3.89	) 	 	 	(2.79	) 	 	 	(2.47	) 	 	 	(2.59	) 	
Gathering, processing & transportation	  	 	(5.56	) 	 	 	(6.73	) 	 	 	(5.89	) 	 	 	(4.73	) 	 	 	(4.96	) 	
Production & property taxes	  	 	(1.93	) 	 	 	(1.71	) 	 	 	(0.16	) 	 	 	(0.92	) 	 	 	(0.85	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Field-level cash margin	  	$	31.88	 	 	$	26.57	 	 	$	17.13	 	 	$	14.66	 	 	$	4.50	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Powder River Basin	  				 				 				 				 				
Realized price	  	$	52.55	 	 	$	47.58	 	 	$	31.08	 	 	$	29.83	 	 	$	20.80	 	
Lease operating expenses	  	 	(6.65	) 	 	 	(7.45	) 	 	 	(5.47	) 	 	 	(5.41	) 	 	 	(6.60	) 	
Gathering, processing & transportation	  	 	(3.02	) 	 	 	(2.66	) 	 	 	(3.01	) 	 	 	(2.30	) 	 	 	(2.71	) 	
Production & property taxes	  	 	(6.10	) 	 	 	(5.48	) 	 	 	(3.91	) 	 	 	(3.49	) 	 	 	(2.40	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Field-level cash margin	  	$	36.78	 	 	$	31.99	 	 	$	18.69	 	 	$	18.63	 	 	$	9.09	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Other	  				 				 				 				 				
Realized price	  	$	65.37	 	 	$	50.58	 	 	$	37.67	 	 	$	34.15	 	 	$	22.95	 	
Lease operating expenses	  	 	(16.69	) 	 	 	(17.15	) 	 	 	(15.35	) 	 	 	(19.92	) 	 	 	(17.40	) 	
Gathering, processing & transportation	  	 	(0.58	) 	 	 	(0.62	) 	 	 	(0.59	) 	 	 	(0.51	) 	 	 	(0.34	) 	
Production & property taxes	  	 	(5.25	) 	 	 	(4.60	) 	 	 	(3.38	) 	 	 	(3.62	) 	 	 	(5.11	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Field-level cash margin	  	$	42.85	 	 	$	28.21	 	 	$	18.35	 	 	$	10.10	 	 	$	0.10	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Devon - Total	  				 				 				 				 				
Realized price	  	$	41.75	 	 	$	39.14	 	 	$	25.63	 	 	$	22.60	 	 	$	14.37	 	
Lease operating expenses	  	 	(4.06	) 	 	 	(4.44	) 	 	 	(2.97	) 	 	 	(3.32	) 	 	 	(3.69	) 	
Gathering, processing & transportation	  	 	(2.85	) 	 	 	(2.87	) 	 	 	(4.23	) 	 	 	(4.17	) 	 	 	(4.16	) 	
Production & property taxes	  	 	(3.05	) 	 	 	(2.88	) 	 	 	(1.66	) 	 	 	(1.52	) 	 	 	(1.07	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Field-level cash margin	  	$	31.79	 	 	$	28.95	 	 	$	16.77	 	 	$	13.59	 	 	$	5.45	 	

9

NON-GAAP MEASURES
 
(all monetary values in millions, except per share amounts)
This press release includes non-GAAP financial measures. These non-GAAP measures are not alternatives to GAAP measures, and you should not consider these non-GAAP measures in isolation or as a substitute for analysis of our results as reported under GAAP. Below is additional disclosure regarding each of the non-GAAP measures used in this press release, including reconciliations to their most directly comparable GAAP measure.
CORE EARNINGS
Devon’s reported net earnings include items of income and expense that are typically excluded by securities analysts in their published estimates of the company’s financial results. Accordingly, the company also uses the measures of core earnings (loss) and core earnings (loss) per share attributable to Devon. Devon believes these non-GAAP measures facilitate comparisons of its performance to earnings estimates published by securities analysts. Devon also believes these non-GAAP measures can facilitate comparisons of its performance between periods and to the performance of its peers. The following table summarizes the effects of these items on second-quarter 2021 earnings.

 	  	Quarter Ended June 30, 2021	 	
 	  	Before-tax	 	  	After-tax	 	  	After
Noncontrolling
Interests	 	  	Per Diluted
Share	 	
Total	  				  				  				  				
Earnings (GAAP)	  	$	304	 	  	$	261	 	  	$	256	 	  	$	0.38	 	
Adjustments:	  				  				  				  				
Asset dispositions	  	 	(87	) 	  	 	(67	) 	  	 	(67	) 	  	 	(0.10	) 	
Asset and exploration impairments	  	 	1	 	  	 	1	 	  	 	1	 	  	 	0.00	 	
Deferred tax asset valuation allowance	  	 	—  	 	  	 	(115	) 	  	 	(115	) 	  	 	(0.17	) 	
Change in tax legislation	  	 	—  	 	  	 	62	 	  	 	62	 	  	 	0.09	 	
Fair value changes in financial instruments and foreign currency	  	 	334	 	  	 	258	 	  	 	258	 	  	 	0.38	 	
Restructuring and transaction costs	  	 	23	 	  	 	21	 	  	 	21	 	  	 	0.03	 	
Early retirement of debt	  	 	(10	) 	  	 	(8	) 	  	 	(8	) 	  	 	(0.01	) 	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Core earnings (Non-GAAP)	  	$	565	 	  	$	413	 	  	$	408	 	  	$	0.60	 	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
EBITDAX
Devon believes EBITDAX provides information useful in assessing operating and financial performance across periods. Devon computes EBITDAX as net earnings from continuing operations before income tax expense; financing costs, net; exploration expenses; depreciation, depletion and amortization; asset impairments; asset disposition gains and losses; non-cash share-based compensation; non-cash valuation changes for derivatives and financial instruments; restructuring and transaction costs; accretion on discounted liabilities; and other items not related to normal operations. EBITDAX as defined by Devon may not be comparable to similarly titled measures used by other companies and should be considered in conjunction with net earnings from continuing operations.

 	  	YTD ’21	 	  	Q2 ’21	 	  	Q1 ’21	 	
Net earnings (GAAP)	  	$	477	 	  	$	261	 	  	$	216	 	
Financing costs, net	  	 	157	 	  	 	80	 	  	 	77	 	
Income tax expense (benefit)	  	 	(205	) 	  	 	43	 	  	 	(248	) 	
Exploration expenses	  	 	6	 	  	 	3	 	  	 	3	 	
Depreciation, depletion and amortization	  	 	1,003	 	  	 	536	 	  	 	467	 	
Asset dispositions	  	 	(119	) 	  	 	(87	) 	  	 	(32	) 	
Share-based compensation	  	 	40	 	  	 	20	 	  	 	20	 	
Derivative and financial instrument non-cash valuation changes	  	 	632	 	  	 	336	 	  	 	296	 	
Restructuring and transaction costs	  	 	212	 	  	 	23	 	  	 	189	 	
Accretion on discounted liabilities and other	  	 	(43	) 	  	 	(14	) 	  	 	(29	) 	
	  	 	 	 	  	 	 	 	  	 	 	 	
EBITDAX (Non-GAAP)	  	$	2,160	 	  	$	1,201	 	  	$	959	 	
	  	 	 	 	  	 	 	 	  	 	 	 	
Annualized EBITDAX (Non-GAAP)	  	$	4,320	 	  				  				
 
10

 
NET DEBT
Devon defines net debt as debt less cash, cash equivalents and cash restricted for discontinued operations. Devon believes that netting these sources of cash against debt provides a clearer picture of the future demands on cash from Devon to repay debt.

 	  	Quarter Ended
June 30, 2021	 	
Total debt (GAAP)	  	$	6,502	 	
Less:	  				
Cash, cash equivalents and restricted cash	  	 	(1,539	) 	
	  	 	 	 	
Net debt (Non-GAAP)	  	$	4,963	 	
	  	 	 	 	
NET DEBT-TO-EBITDAX
Devon defines net debt-to-EBITDAX as net debt divided by an annualized EBITDAX measure. Due to the merger with WPX closing in the first quarter of 2021, Devon has shown the first six months of 2021 EBITDAX annualized divided by net debt to show a more meaningful net debt-to-EBITDAX measure. Devon believes this ratio provides information useful to investors in assessing the company’s credit position and debt leverage.

 	  	Quarter Ended
June 30, 2021	 	
Net debt (Non-GAAP)	  	$	4,963	 	
EBITDAX (annualized 1H ’21) (Non-GAAP)	  	$	4,320	 	
	  	 	 	 	
Net debt-to-EBITDAX (Non-GAAP)	  	 	1.1	 	
	  	 	 	 	
FREE CASH FLOW
Devon defines free cash flow as total operating cash flow less capital expenditures. Devon believes that free cash flow provides a useful measure of available cash generated by operating activities for other investing and financing activities.

 	  	Quarter Ended
June 30, 2021	 	  	Quarter Ended
March 31, 2021	 	
Total operating cash flow (GAAP)	  	$	1,093	 	  	$	592	 	
Less capital expenditures:	  				  				
Capital expenditures	  	 	(504	) 	  	 	(499	) 	
	  	 	 	 	  	 	 	 	
Free cash flow (Non-GAAP)	  	$	589	 	  	$	93	 	
	  	 	 	 	  	 	 	 	
REINVESTMENT RATE
Devon defines reinvestment rate as accrued capital expenditures divided by operating cash flow. Devon believes this measure provides useful information to our investors as an indicator of the capital demands of our business relative to the cash flow generated from normal business operations.

 	  	Quarter Ended
June 30, 2021	 	
Capital expenditures (accrued)	  	$	509	 	
Operating cash flow	  	$	1,093	 	
	  	 	 	 	
Reinvestment rate (Non-GAAP)	  	 	47	% 	

11

 
VARIABLE DIVIDEND CALCULATION
Devon may pay a variable dividend up to 50 percent of its excess cash flow. Each quarter’s excess cash flow is computed as adjusted cash flow less capital expenditures and the fixed dividend.

 	  	Quarter Ended
June 30, 2021	 	
Operating cash flow (GAAP)	  	$	1,093	 	
Changes in assets and liabilities, net	  	 	(17	) 	
	  	 	 	 	
Cash from operations before balance sheet changes (Non-GAAP)	  	 	1,076	 	
Cash restructuring and transaction costs (Non-GAAP)	  	 	23	 	
	  	 	 	 	
Adjusted cash flow (Non-GAAP)	  	 	1,099	 	
Capital expenditures (Accrued)	  	 	(509	) 	
	  	 	 	 	
Adjusted free cash flow (Non-GAAP)	  	 	590	 	
Fixed quarterly dividend ($0.11/share)	  	 	(75	) 	
	  	 	 	 	
Excess free cash flow (Non-GAAP)	  	 	515	 	
50% Pay out (Board Discretion: Up to 50%)	  	 	50	% 	
	  	 	 	 	
Total variable dividend ($0.38/share)	  	$	257	 	

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THIRD-QUARTER AND FULL-YEAR 2021 GUIDANCE

																	
PRODUCTION GUIDANCE	  	 	 	 	 	 	 	 	 	 	 	 	
			
 	  	Quarter 3 	 	 	Full Year 	 	
 	  	Low	 	 	High	 	 	Low	 	 	High	 	
Oil (MBbls/d)	  	 	290	 	 	 	300	 	 	 	280	 	 	 	290	 	
Natural gas liquids (MBbls/d)	  	 	130	 	 	 	140	 	 	 	120	 	 	 	130	 	
Gas (MMcf/d)	  	 	875	 	 	 	925	 	 	 	835	 	 	 	895	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total oil equivalent (MBoe/d)	  	 	566	 	 	 	594	 	 	 	539	 	 	 	569	 	

CAPITAL EXPENDITURES GUIDANCE	  	 	 	 	 	 	 	 	 	 	 	 	
			
 	  	Quarter 3	 	 	Full Year	 	
(in millions)	  	Low	 	 	High	 	 	Low	 	 	High	 	
Upstream capital	  	$	400	 	 	$	450	 	 	$	1,600	 	 	$	1,800	 	
Midstream capital	  	 	5	 	 	 	15	 	 	 	80	 	 	 	100	 	
Other capital	  	 	15	 	 	 	25	 	 	 	40	 	 	 	80	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total capital	  	$	420	 	 	$	490	 	 	$	1,720	 	 	$	1,980	 	

PRICE REALIZATIONS GUIDANCE	  	 	 	 	 	 	 	 	 	 	 	 	
			
 	  	Quarter 3	 	 	Full Year	 	
 	  	Low	 	 	High	 	 	Low	 	 	High	 	
Oil - % of WTI	  	 	90	% 	 	 	100	% 	 	 	92	% 	 	 	100	% 	
NGL - % of WTI	  	 	35	% 	 	 	45	% 	 	 	35	% 	 	 	45	% 	
Natural gas - % of Henry Hub	  	 	75	% 	 	 	85	% 	 	 	80	% 	 	 	90	% 	
					
OTHER GUIDANCE ITEMS	  	 	 	 	 	 	 	 	 	 	 	 	
			
 	  	Quarter 3	 	 	Full Year	 	
($ millions, except Boe and %)	  	Low	 	 	High	 	 	Low	 	 	High	 	
Marketing & midstream operating profit	  	$	(5	) 	 	$	5	 	 	$	(30	) 	 	$	(10	) 	
LOE & GP&T per BOE	  	$	6.75	 	 	$	7.25	 	 	$	7.00	 	 	$	7.30	 	
Production & property taxes as % of upstream sales	  	 	7.0	% 	 	 	8.0	% 	 	 	7.0	% 	 	 	8.0	% 	
Exploration expenses	  	$	—  	 	 	$	5	 	 	$	5	 	 	$	15	 	
Depreciation, depletion and amortization	  	$	540	 	 	$	590	 	 	$	2,100	 	 	$	2,150	 	
General & administrative expenses	  	$	90	 	 	$	100	 	 	$	380	 	 	$	400	 	
Cash financing costs, net	  	$	90	 	 	$	100	 	 	$	395	 	 	$	415	 	
Other expenses	  	$	—  	 	 	$	10	 	 	$	(20	) 	 	$	(40	) 	
Current income tax rate from continuing operations	  	 	0	% 	 	 	0	% 	 	 	0	% 	 	 	0	% 	
Deferred income tax rate from continuing operations	  	 	20	% 	 	 	30	% 	 	 	20	% 	 	 	30	% 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total income tax rate from continuing operations	  	 	20	% 	 	 	30	% 	 	 	20	% 	 	 	30	% 	
 
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CONTINGENT PAYMENTS FOR BARNETT SHALE DIVESTITURE (4-year period beginning in 2021)

															
WTI Threshold	 	  	WTI Annual Earnout Amount	 	  	Henry Hub Threshold	 	  	Henry Hub Annual Earnout
Amount	 	
$	50.00	 	  	$	10,000,000	 	  	$	2.75	 	  	$	20,000,000	 	
$	55.00	 	  	$	12,500,000	 	  	$	3.00	 	  	$	25,000,000	 	
$	60.00	 	  	$	15,000,000	 	  	$	3.25	 	  	$	35,000,000	 	
$	65.00	 	  	$	20,000,000	 	  	$	3.50	 	  	$	45,000,000	 	
2021 & 2022 HEDGING POSITIONS

																						
Oil Commodity Hedges	  	 	 	  	 	 	  	 	 	  	 	 	  	 	 		
				
 	  	Price Swaps	 	  	Price Collars	 		
	Period	  	Volume (Bbls/d)	 	  	Weighted
Average Price
($/Bbl)	 	  	Volume
(Bbls/d)	 	  	Weighted
Average Floor
Price ($/Bbl)	 	  	Weighted
Average Ceiling
Price ($/Bbl)	 	
Q3 2021	  	 	67,460	 	  	$	41.45	 	  	 	53,250	 	  	$	39.74	 	  	$	49.74	 		
Q4 2021	  	 	66,460	 	  	$	41.24	 	  	 	48,250	 	  	$	38.82	 	  	$	48.82	 		
Q1-Q4 2022	  	 	26,112	 	  	$	43.75	 	  	 	20,233	 	  	$	46.41	 	  	$	56.41	 		

 	  	Price Swaptions	 	  	Price Call Options	 	  	 	 		
	Period	  	Volume (Bbls/d)	 	  	Weighted
Average
Price ($/Bbl)	 	  	Volume (Bbls/d)	 	  	Weighted
Average Price
($/Bbl)	 	
Q3 2021	  	 	—  	 	  	$	—  	 	  	 	5,000	 	  	$	 	 	  	 	39.50	 		
Q4 2021	  	 	—  	 	  	$	—  	 	  	 	5,000	 	  	$	 	 	  	 	39.50	 		
Q1-Q4 2022	  	 	10,000	 	  	$	46.67	 	  	 	—  	 	  	$	 	 	  	 	—  	 		
Oil Basis Swaps

	Period	  	Index	  	Volume (Bbls/d)	 	  	Weighted Average
Differential to WTI
($/Bbl)	 	
Q3-Q4 2021	  	Midland Sweet	  	 	23,000	 	  	$	0.84	 		
Q3-Q4 2021	  	BRENT/WTI Spread	  	 	1,000	 	  	$	(8.00	) 		
Q3-Q4 2021	  	Guernsey Light Sweet	  	 	4,000	 	  	$	(1.49	) 		
Q3-Q4 2021	  	NYMEX Roll	  	 	13,000	 	  	$	0.39	 		
Q1-Q4 2022	  	BRENT/WTI Spread	  	 	1,000	 	  	$	(7.75	) 		
Q1-Q4 2022	  	NYMEX Roll	  	 	29,000	 	  	$	0.45	 		

Natural Gas Commodity Hedges - Henry Hub	 	  	 	 	  	 	 	  	 	 	  	 	 		
				
 	  	Price Swaps	 	  	Price Collars	 		
	Period	  	Volume (MMBtu/d)	 	  	Weighted
Average Price
($/MMBtu)	 	  	Volume
(MMBtu/d)	 	  	Weighted
Average Floor
Price ($/MMBtu)	 	  	Weighted
Average Ceiling
Price
($/MMBtu)	 	
Q3 2021	  	 	279,000	 	  	$	2.64	 	  	 	228,000	 	  	$	2.43	 	  	$	2.93	 		
Q4 2021	  	 	254,000	 	  	$	2.63	 	  	 	133,000	 	  	$	2.55	 	  	$	3.05	 		
Q1-Q4 2022	  	 	3,452	 	  	$	2.85	 	  	 	120,644	 	  	$	2.59	 	  	$	3.09	 		
 
2

			
2021 & 2022 HEDGING POSITIONS (continued)	  		

 
																						
 	  	Price Swaptions	 	  	Price Call Options	 	  	 	 		
	Period	  	Volume (MMBtu/d)	 	  	Weighted
Average
Price
($/MMBtu)	 	  	Volume (MMBtu/d)	 	  	Weighted
Average Price
($/MMBtu)	 	
Q3 2021	  	 	—  	 	  	$	—  	 	  	 	50,000	 	  	$	 	 	  	 	2.68	 		
Q4 2021	  	 	—  	 	  	$	—  	 	  	 	50,000	 	  	$	 	 	  	 	2.68	 		
Q1-Q4 2022	  	 	100,000	 	  	$	2.70	 	  	 	—  	 	  	$	 	 	  	 	—  	 		
Natural Gas Basis Swaps

	Period	  	Index	  	Volume (MMBtu/d)	 	  	Weighted Average
Differential to Henry
Hub ($/MMBtu)	 	
Q3-Q4 2021	  	El Paso Natural Gas	  	 	35,000	 	  	$	(0.92	) 		
Q3-Q4 2021	  	WAHA	  	 	80,000	 	  	$	(0.65	) 		
Q1-Q4 2022	  	WAHA	  	 	70,000	 	  	$	(0.57	) 		
NGL Commodity Hedges

 	  	 	  	Price Swaps	 		
	Period	  	Product	  	Volume (Bbls/d)	 	  	Weighted Average
Price ($/Bbl)	 	
Q3-Q4 2021	  	Natural Gasoline	  	 	1,000	 	  	$	47.57	 		
Q3-Q4 2021	  	Normal Butane	  	 	1,000	 	  	$	31.40	 		
Q3-Q4 2021	  	Propane	  	 	1,000	 	  	$	27.88	 		
Devon’s oil derivatives settle against the average of the prompt month NYMEX West Texas Intermediate futures price. Devon’s natural gas derivatives settle against the Inside FERC first of the month Henry Hub index. Devon’s NGL derivatives settle against the average of the prompt month OPIS Mont Belvieu, Texas index. Commodity hedge positions are shown as of July 29, 2021.
 
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