DEVON ENERGY CORP/DE, 10-K filed on 2/15/2023
Annual Report
v3.22.4
Document And Entity Information - USD ($)
shares in Millions, $ in Billions
 12 Months Ended
Dec. 31, 2022
Feb. 01, 2023
Jun. 30, 2022
Cover [Abstract]      
Document Type 10-K    
Document Period End Date Dec. 31, 2022    
Amendment Flag false    
Trading Symbol DVN    
Entity Registrant Name DEVON ENERGY CORP/DE    
Entity Central Index Key 0001090012    
Entity Current Reporting Status Yes    
Entity Voluntary Filers No    
Entity Well-known Seasoned Issuer Yes    
Current Fiscal Year End Date --12-31    
Document Fiscal Year Focus 2022    
Entity Filer Category Large Accelerated Filer    
Entity Small Business false    
Entity Emerging Growth Company false    
Entity Shell Company false    
Document Fiscal Period Focus FY    
Entity Public Float     $ 35.9
Entity Common Stock, Shares Outstanding   654.0  
ICFR Auditor Attestation Flag true    
Entity File Number 001-32318    
Entity Tax Identification Number 73-1567067    
Entity Address, Address Line One 333 West Sheridan Avenue    
Entity Address, City or Town Oklahoma City    
Entity Address, State or Province OK    
Entity Address, Postal Zip Code 73102-5015    
City Area Code 405    
Local Phone Number 235-3611    
Entity Interactive Data Current Yes    
Title of 12(b) Security Common stock, par value $0.10 per share    
Security Exchange Name NYSE    
Entity Incorporation, State or Country Code DE    
Document Annual Report true    
Document Transition Report false    
Documents Incorporated by Reference

Portions of Registrant’s definitive Proxy Statement relating to Registrant’s 2023 annual meeting of stockholders have been incorporated by reference in Part III of this Annual Report on Form 10-K.

    
Auditor Name KPMG LLP    
Auditor Location Oklahoma City, Oklahoma    
Auditor Firm ID 185    
v3.22.4
Consolidated Statements of Comprehensive Earnings - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Revenues from contracts with customers $ 19,827 $ 13,750 $ 4,673
Oil, gas and NGL derivatives (658) (1,544) 155
Total revenues 19,169 12,206 4,828
Production expenses 2,797 2,131 1,123
Exploration expenses 29 14 167
Depreciation, depletion and amortization 2,223 2,158 1,300
Asset impairments 0 0 2,693
Asset dispositions (44) (168) (1)
General and administrative expenses 395 391 338
Financing costs, net 309 329 270
Restructuring and transaction costs 0 258 49
Other, net (95) (43) (34)
Total expenses 11,394 9,308 7,918
Earnings (loss) from continuing operations before income taxes 7,775 2,898 (3,090)
Income tax expense (benefit) 1,738 65 (547)
Net earnings (loss) from continuing operations 6,037 2,833 (2,543)
Net loss from discontinued operations, net of income taxes 0 0 (128)
Net earnings (loss) 6,037 2,833 (2,671)
Net earnings attributable to noncontrolling interests 22 20 9
Net earnings (loss) attributable to Devon $ 6,015 $ 2,813 $ (2,680)
Basic net earnings (loss) per share:      
Basic earnings (loss) from continuing operations per share $ 9.15 $ 4.20 $ (6.78)
Basic loss from discontinued operations per share 0 0 (0.34)
Basic net earnings per share 9.15 4.20 (7.12)
Diluted net earnings (loss) per share:      
Diluted earnings (loss) from continuing operations per share 9.12 4.19 (6.78)
Diluted loss from discontinued operations per share 0 0 (0.34)
Diluted net earnings (loss) per share $ 9.12 $ 4.19 $ (7.12)
Comprehensive earnings (loss):      
Net earnings (loss) $ 6,037 $ 2,833 $ (2,671)
Other comprehensive earnings (loss), net of tax:      
Pension and postretirement plans 16 (5) (8)
Other comprehensive loss, net of tax 16 (5) (8)
Comprehensive earnings (loss): 6,053 2,828 (2,679)
Comprehensive earnings attributable to noncontrolling interests 22 20 9
Comprehensive earnings (loss) attributable to Devon 6,031 2,808 (2,688)
Oil, Gas and NGL Sales [Member]      
Revenues from contracts with customers 14,082 9,531 2,695
Marketing and Midstream Revenues [Member]      
Revenues from contracts with customers 5,745 4,219 1,978
Marketing and Midstream Expenses [Member]      
Marketing and midstream expenses $ 5,780 $ 4,238 $ 2,013
v3.22.4
Consolidated Statements Of Cash Flows - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Cash flows from operating activities:      
Net earnings (loss) $ 6,037 $ 2,833 $ (2,671)
Adjustments to reconcile net earnings (loss) to net cash from operating activities:      
Net loss from discontinued operations, net of income taxes 0 0 128
Depreciation, depletion and amortization 2,223 2,158 1,300
Asset impairments 0 0 2,693
Leasehold impairments 12 4 152
(Amortization) accretion of liabilities (31) (27) 32
Total (gains) losses on commodity derivatives 658 1,544 (155)
Cash settlements on commodity derivatives (1,356) (1,462) 316
Gains on asset dispositions (44) (168) (1)
Deferred income tax expense (benefit) 1,179 49 (328)
Share-based compensation 88 99 88
Early retirement of debt 0 (30) 0
Other (10) 15 5
Changes in assets and liabilities, net (226) (116) (95)
Net cash from operating activities - continuing operations 8,530 4,899 1,464
Cash flows from investing activities:      
Capital expenditures (2,542) (1,989) (1,153)
Acquisitions of property and equipment (2,583) (18) (8)
Divestitures of property and equipment 39 79 34
WPX acquired cash 0 344 0
Distributions from investments 39 35 0
Contributions to investments (76) (25) 0
Net cash from investing activities - continuing operations (5,123) (1,574) (1,127)
Cash flows from financing activities:      
Repayments of long-term debt 0 (1,243) 0
Early retirement of debt 0 (59)  
Repurchases of common stock (718) (589) (38)
Dividends paid on common stock (3,379) (1,315) (257)
Contributions from noncontrolling interests 0 4 21
Distributions to noncontrolling interests (30) (21) (14)
Acquisition of noncontrolling interests 0 (24) 0
Shares exchanged for tax withholdings and other (86) (45) (18)
Net cash from financing activities - continuing operations (4,213) (3,292) (306)
Effect of exchange rate changes on cash - continuing operations (11) 1 0
Net change in cash, cash equivalents and restricted cash - continuing operations (817) 34 31
Cash flows from discontinued operations:      
Operating activities 0 0 (110)
Investing activities 0 0 481
Financing activities 0 0 0
Effect of exchange rate changes on cash 0 0 (9)
Net change in cash, cash equivalents and restricted cash of discontinued operations 0 0 362
Net change in cash, cash equivalents and restricted cash (817) 34 393
Cash, cash equivalents and restricted cash at beginning of period 2,271 2,237 1,844
Cash, cash equivalents and restricted cash at end of period 1,454 2,271 2,237
Reconciliation of cash, cash equivalents and restricted cash:      
Cash and cash equivalents 1,314 2,099 2,047
Restricted cash 140 172 190
Total cash, cash equivalents and restricted cash $ 1,454 $ 2,271 $ 2,237
v3.22.4
Consolidated Balance Sheets - USD ($)
$ in Millions
Dec. 31, 2022
Dec. 31, 2021
ASSETS    
Cash, cash equivalents and restricted cash $ 1,454 $ 2,271
Accounts receivable 1,767 1,543
Inventory 201 114
Other current assets 469 321
Total current assets 3,891 4,249
Oil and gas property and equipment, based on successful efforts accounting, net 16,567 13,536
Other property and equipment, net ($109 million and $111 million related to CDM in 2022 and 2021, respectively) [1] 1,539 1,472
Total property and equipment, net 18,106 15,008
Goodwill 753 753
Right-of-use assets 224 235
Investments 440 402
Other long-term assets 307 378
Total assets 23,721 21,025
LIABILITIES AND EQUITY    
Accounts payable 859 500
Revenues and royalties payable 1,506 1,456
Short-term debt 251 0
Other current liabilities 489 1,131
Total current liabilities 3,105 3,087
Long-term debt 6,189 6,482
Lease liabilities 257 252
Asset retirement obligations 511 468
Other long-term liabilities 900 1,050
Deferred income taxes 1,463 287
Stockholders' equity:    
Common stock, $0.10 par value. Authorized 1.0 billion shares; issued 653 million and 663 million shares in 2022 and 2021, respectively 65 66
Additional paid-in capital 6,921 7,636
Retained earnings 4,297 1,692
Accumulated other comprehensive loss (116) (132)
Total stockholders’ equity attributable to Devon 11,167 9,262
Noncontrolling interests 129 137
Total equity 11,296 9,399
Total liabilities and equity $ 23,721 $ 21,025
[1] $109 million and $111 million related to CDM in 2022 and 2021, respectively.
v3.22.4
Consolidated Balance Sheets (Parenthetical) - USD ($)
$ in Millions
Dec. 31, 2022
Dec. 31, 2021
Other property and equipment, net [1] $ 1,539 $ 1,472
Common stock, par value (in dollars per share) $ 0.10 $ 0.10
Common stock, shares authorized (in shares) 1,000,000,000.0 1,000,000,000.0
Common stock, shares issued (in shares) 653,000,000 663,000,000
CDM [Member]    
Other property and equipment, net $ 109 $ 111
[1] $109 million and $111 million related to CDM in 2022 and 2021, respectively.
v3.22.4
Consolidated Statements Of Equity - USD ($)
shares in Millions, $ in Millions
Total
Common Stock [Member]
Additional Paid-In Capital [Member]
Retained Earning [Member]
Other Comprehensive Earnings (Loss) [Member]
Treasury Stock [Member]
Noncontrolling Interests [Member]
Balance at Dec. 31, 2019 $ 5,920 $ 38 $ 2,735 $ 3,148 $ (119)   $ 118
Balance, shares at Dec. 31, 2019   382          
Net earnings (loss) (2,671)     (2,680)     9
Other comprehensive loss, net of tax (8)       (8)    
Restricted stock grants, net of cancellations, shares   3          
Common stock repurchased (57)         $ (57)  
Common stock retired     (57)     57  
Common stock retired, shares   (3)          
Common stock dividends (260)     (260)      
Share-based compensation 88   88        
Contributions from noncontrolling interests 21           21
Distributions to noncontrolling interests (14)           (14)
Balance at Dec. 31, 2020 3,019 $ 38 2,766 208 (127)   134
Balance, shares at Dec. 31, 2020   382          
Net earnings (loss) 2,833     2,813     20
Other comprehensive loss, net of tax (5)       (5)    
Restricted stock grants, net of cancellations, shares   6          
Common stock repurchased (633)         (633)  
Common stock retired   $ (1) (632)     633  
Common stock retired, shares   (16)          
Common stock dividends (1,329)     (1,329)      
Common stock issued 5,432 $ 29 5,403        
Common stock issued, Shares   290          
Share-based compensation 99   99        
Share-based compensation, shares   1          
Contributions from noncontrolling interests 3           3
Distributions to noncontrolling interests (20)           (20)
Balance at Dec. 31, 2021 9,399 $ 66 7,636 1,692 (132)   137
Balance, shares at Dec. 31, 2021   663          
Net earnings (loss) 6,037     6,015     22
Other comprehensive loss, net of tax 16       16    
Restricted stock grants, net of cancellations, value 4 $ 1 3        
Restricted stock grants, net of cancellations, shares   2          
Common stock repurchased (808)         (808)  
Common stock retired   $ (2) (806)     $ 808  
Common stock retired, shares   (13)          
Common stock dividends (3,410)     (3,410)      
Share-based compensation 88   88        
Share-based compensation, shares   1          
Distributions to noncontrolling interests (30)           (30)
Balance at Dec. 31, 2022 $ 11,296 $ 65 $ 6,921 $ 4,297 $ (116)   $ 129
Balance, shares at Dec. 31, 2022   653          
v3.22.4
Summary Of Significant Accounting Policies
 12 Months Ended
Dec. 31, 2022
Accounting Policies [Abstract]  
Summary Of Significant Accounting Policies
1.
Summary of Significant Accounting Policies

Devon is a leading independent energy company engaged primarily in the exploration, development and production of oil, natural gas and NGLs. Devon’s operations are concentrated in various onshore areas in the U.S.

Devon and WPX completed an all-stock merger of equals on January 7, 2021. On the closing date of the Merger, each share of WPX common stock was automatically converted into the right to receive 0.5165 of a share of Devon common stock. The transaction has been accounted for using the acquisition method of accounting, with Devon being treated as the accounting acquirer. See Note 2 for further discussion.

Accounting policies used by Devon and its subsidiaries conform to accounting principles generally accepted in the U.S. and reflect industry practices. The more significant of such policies are discussed below.

Principles of Consolidation

The accompanying consolidated financial statements include the accounts of Devon, entities in which it holds a controlling interest and VIEs for which Devon is the primary beneficiary. All intercompany transactions have been eliminated. Undivided interests in oil and natural gas exploration and production joint ventures are consolidated on a proportionate basis. Investments in non-controlled entities, over which Devon has the ability to exercise significant influence over operating and financial policies, are accounted for using the equity method. In applying the equity method of accounting, the investments are initially recognized at cost and subsequently adjusted for Devon’s proportionate share of earnings, losses, contributions and distributions. Investments in non-controlled entities over which Devon does not have the ability to exercise significant influence are initially recognized at cost and subsequently adjusted for contributions and distributions.

Variable Interest Entity

Devon and an affiliate of QL Capital Partners, LP (“QLCP”) formed CDM, a joint venture in 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.

Devon, through its controlling interest in CDM, has the power to direct the activities that significantly affect the economic performance of CDM and the obligation to absorb losses or the right to receive benefits that could be significant to CDM; therefore, Devon is considered the primary beneficiary and consolidates CDM. CDM maintains its own capital structure that is separate from Devon. During 2022, 2021 and 2020, QLCP distributions from CDM were approximately $30 million, $20 million and $14 million, respectively. During 2021 and 2020, QLCP contributions to CDM were approximately $3 million and $21 million, respectively.

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

In conjunction with the Merger, Devon acquired an interest in Catalyst, which is a joint venture established among WPX, 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. The agreements do not include any minimum volume commitments. Devon accounts for the investment in Catalyst as an equity method investment. Devon's share of the earnings are reflected as a component of other, net in the accompanying consolidated statements of comprehensive earnings.

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

Devon has other investments largely focused on midstream, new technologies and energy transition initiatives. Devon does not have the ability to exercise significant influence over these investments. The following table presents Devon's investments that are shown on the consolidated balance sheet.

 

 

 

 

 

Carrying Amount

 

Investments

 

% Interest

 

December 31, 2022

 

 

December 31, 2021

 

Catalyst

 

50%

 

$

339

 

 

$

368

 

Matterhorn

 

12.5%

 

 

54

 

 

 

—

 

Other

 

Various

 

 

47

 

 

 

34

 

Total

 

 

 

$

440

 

 

$

402

 

 

As of December 31, 2022, Devon’s $339 million investment in Catalyst exceeded the underlying equity in net assets by approximately $120 million. The basis difference results primarily from intangible assets associated with Devon’s acreage dedication and is amortized over the remaining 15-year term of the associated oil gathering and natural gas processing agreements.

 

After the closing of the Merger, Catalyst has provided certain gathering, processing and marketing services to Devon in the ordinary course of business. The impact from these services on Devon’s consolidated statement of comprehensive earnings and consolidated balance sheet for the years ended and as of December 31, 2022 and 2021, respectively, are summarized below.

 

 

 

Year ended December 31,

 

 

 

2022

 

 

2021

 

Oil, gas and NGL sales

 

$

405

 

 

$

264

 

Production expenses

 

$

55

 

 

$

42

 

Accounts receivable

 

$

14

 

 

$

22

 

 

Segment Information

 

Devon’s oil and gas exploration and production activities are solely focused in the U.S. For financial reporting purposes, Devon aggregates its U.S. operating segments into one reporting segment due to the similar nature of these operations.

 

Use of Estimates

The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual amounts

could differ from these estimates, and changes in these estimates are recorded when known. Significant items subject to such estimates and assumptions include the following:

•
proved reserves and related present value of future net revenues;
•
evaluation of suspended well costs;
•
the carrying and fair values of oil and gas properties, other property and equipment and product and equipment inventories;
•
derivative financial instruments;
•
the fair value of reporting units and related assessment of goodwill for impairment;
•
income taxes;
•
asset retirement obligations;
•
obligations related to employee pension and postretirement benefits;
•
purchase accounting estimates used for assets acquired and liabilities assumed;
•
legal and environmental risks and exposures;
•
the fair value of contingent earnout payments, and
•
general credit risk associated with receivables and other assets.

Revenue Recognition

Upstream Revenues

Upstream revenues include the sale of oil, gas and NGL production. Oil, gas and NGL sales are recognized when production is sold to a purchaser at a fixed or determinable price, delivery has occurred, control has transferred and collectability of the revenue is probable. Devon’s performance obligations are satisfied at a point in time. This occurs when control is transferred to the purchaser upon delivery of contract specified production volumes at a specified point. The transaction price used to recognize revenue is a function of the contract billing terms. Revenue is invoiced, if required, by calendar month based on volumes at contractually based rates with payment typically received within 30 days of the end of the production month. Taxes assessed by governmental authorities on oil, gas and NGL sales are presented separately from such revenues in the accompanying consolidated statements of comprehensive earnings.

Devon acts as a principal in sales transactions when control of the product is retained prior to delivery to the ultimate third-party customer or acts as an agent when services are rendered on behalf of the principal in the transactions. A control-based assessment is performed to identify whether Devon is a principal or an agent in the transaction, which determines whether revenue and the related expenses are presented on a gross or net basis, respectively.

Oil sales

Devon’s oil sales contracts are generally structured in one of two ways. First, production is sold at the wellhead at an agreed-upon index price, net of pricing differentials. In this scenario, revenue is recognized when control transfers to the purchaser at the wellhead at the net price received. Alternatively, production is delivered to the purchaser at a contractually agreed-upon delivery point where the purchaser takes custody, title and risk of loss of the product. Under this arrangement, a third party is paid to transport the product and Devon receives a specified index price from the purchaser with no transportation deduction. In this scenario, revenue is recognized when

control transfers to the purchaser at the delivery point based on the price received from the purchaser. The third-party costs are recorded as gathering, processing and transportation expense as a component of production expenses in the consolidated statements of comprehensive earnings.

Natural gas and NGL sales

Under Devon’s natural gas processing contracts, natural gas is delivered to a midstream processing entity at the wellhead or the inlet of the midstream processing entity’s system. The midstream processing entity gathers and processes the natural gas and remits proceeds for the resulting sales of NGLs and residue gas. In these scenarios, Devon evaluates whether it is the principal or the agent in the transaction. Devon has concluded it is the principal under these contracts and the ultimate third party is the customer. Revenue is recognized on a gross basis, with gathering, processing and transportation fees presented as a component of production expenses in the consolidated statements of comprehensive earnings.

In certain natural gas processing agreements, Devon may elect to take residue gas and/or NGLs in-kind at the tailgate of the midstream entity’s processing plant and subsequently market the product. Through the marketing process, the product is delivered to the ultimate third-party purchaser at a contractually agreed-upon delivery point, and Devon receives a specified index price from the purchaser. In this scenario, revenue is recognized when control transfers to the purchaser at the delivery point based on the index price received from the purchaser. The gathering, processing and compression fees attributable to the gas processing contract, as well as any transportation fees incurred to deliver the product to the purchaser, are presented as gathering, processing and transportation expense as a component of production expenses in the consolidated statements of comprehensive earnings.

Marketing Revenues

Marketing revenues are generated primarily as a result of Devon selling commodities purchased from third parties. Marketing revenues are recognized when performance obligations are satisfied. This occurs at the time contract-specified products are sold to third parties at a contractually fixed or determinable price, delivery occurs at a specified point or performance has occurred, control has transferred and collectability of the revenue is probable. The transaction price used to recognize revenue and invoice customers is based on a contractually stated fee or on a third party published index price plus or minus a known differential. Devon typically receives payment for invoiced amounts within 30 days. Marketing revenues and expenses attributable to oil, gas and NGL purchases are reported on a gross basis when Devon takes control of the products and has risks and rewards of ownership.

Midstream Revenues

 

Devon’s reported midstream revenue primarily relates to its interest in CDM. CDM provides gathering, compression and dehydration services to Devon and other producers’ natural gas production. An evaluation is performed to determine whether CDM is a principal or agent in these transactions. Under the terms of these gathering, compression and dehydration contracts, CDM has concluded it is the agent as title to the gas production remains with the CDM affiliate producer or a third-party producer. Revenue is recognized on a net basis since CDM is strictly providing a service. Costs to maintain CDM’s assets are presented as marketing and midstream expenses in the consolidated statements of comprehensive earnings. Revenue is recognized for sales at the time the gathering, compression and dehydration service has been rendered or performed.

Satisfaction of Performance Obligations and Revenue Recognition

Because Devon has a right to consideration from its customers in amounts that correspond directly to the value that the customer receives from the performance completed on each contract, Devon recognizes revenue for sales at the time the crude oil, natural gas or NGLs are delivered at a fixed or determinable price.

Transaction Price Allocated to Remaining Performance Obligations

Most of Devon’s contracts are short-term in nature with a contract term of one year or less. Devon applies the practical expedient exempting the disclosure of the transaction price allocated to remaining performance obligations if the performance obligation is part of a contract that has an original expected duration of one year or less. For contracts with terms greater than one year, Devon applies the practical expedient exempting the disclosure of the transaction price allocated to remaining performance obligations if the variable consideration is allocated entirely to a wholly unsatisfied performance obligation. Under Devon’s contracts, each unit of product typically represents a separate performance obligation; therefore, future volumes are wholly unsatisfied and disclosure of the transaction price allocated to remaining performance obligations is not required.

 

Contract Balances

Cash received relating to future performance obligations is deferred and recognized when all revenue recognition criteria are met. Contract liabilities generated from such deferred revenue are not considered material as of December 31, 2022. Devon’s product sales and marketing contracts do not give rise to contract assets.

 

Disaggregation of Revenue

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

 

 

 

Year Ended December 31,

 

 

 

2022

 

 

2021

 

 

2020

 

Oil

 

$

10,281

 

 

$

6,996

 

 

$

2,034

 

Gas

 

 

1,948

 

 

 

1,104

 

 

 

326

 

NGL

 

 

1,853

 

 

 

1,431

 

 

 

335

 

Oil, gas and NGL sales

 

 

14,082

 

 

 

9,531

 

 

 

2,695

 

 

 

 

 

 

 

 

 

 

 

Oil

 

 

3,305

 

 

 

2,451

 

 

 

936

 

Gas

 

 

1,163

 

 

 

718

 

 

 

488

 

NGL

 

 

1,277

 

 

 

1,050

 

 

 

554

 

Marketing and midstream revenues

 

 

5,745

 

 

 

4,219

 

 

 

1,978

 

Total revenues from contracts with customers

 

$

19,827

 

 

$

13,750

 

 

$

4,673

 

 

Customers

For the year ended December 31, 2022, sales to one customer accounted for approximately 15% of Devon's sales revenue. For the years ended December 31, 2021 and 2020, sales to two customers accounted for approximately 19% and 12% and 13% and 10%, respectively, of Devon's sales revenue.

If any one of Devon’s major customers were to stop purchasing our production, the Company believes there are a number of other purchasers to whom the company could sell Devon’s production. If multiple significant customers were to discontinue purchasing Devon’s production abruptly, the Company believes it would have the

resources needed to access alternative customers or markets and avoid or materially mitigate associated sales disruptions.

Derivative Financial Instruments

Devon is exposed to certain risks relating to its ongoing business operations, including risks related to commodity prices and interest rates. As discussed more fully below, Devon uses derivative instruments primarily to manage commodity price risk. Devon does not intend to issue or hold derivative financial instruments for speculative trading purposes.

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 instruments are used to manage the inherent uncertainty of future revenues resulting from commodity price volatility. Devon’s derivative financial instruments typically include financial price swaps, basis swaps and costless price collars. Under the terms of the price swaps, Devon receives a fixed price for its production and pays a variable market price to the contract counterparty. For the basis swaps, Devon receives a fixed differential between two regional index prices and pays a variable differential on the same two index prices to the contract counterparty. For price collars, Devon utilizes two-way price collars. The two-way price collars set a floor and ceiling price for the hedged production. If the applicable monthly price indices are outside of the ranges set by the floor and ceiling prices in the various collars, Devon will cash-settle the difference with the counterparty.

All derivative financial instruments are recognized at their current fair value as either assets or liabilities in the balance sheet. 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 balance sheet. Changes in the fair value of these derivative financial instruments are recorded in earnings unless specific hedge accounting criteria are met. For derivative financial instruments held during the three-year period ended December 31, 2022, Devon chose not to meet the necessary criteria to qualify its derivative financial instruments for hedge accounting treatment. Cash settlements with counterparties on Devon’s derivative financial instruments are also recorded in earnings.

By using derivative financial instruments to hedge exposures to changes in commodity prices and interest rates, 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 require cash collateral to be posted if either its or the counterparty’s credit rating falls below certain credit rating levels. As of December 31, 2022, Devon held no cash collateral of its counterparties nor posted collateral to its counterparties. Given Devon's current credit ratings and the terms of the underlying contracts, Devon is not currently required to post collateral to its counterparties with respect to its open derivative positions, and would not be required to post any such collateral as a result of any change to the amount of Devon's net liability for such positions.

General and Administrative Expenses

G&A is reported net of amounts reimbursed by working interest owners of the oil and gas properties operated by Devon.

Share-Based Compensation

Devon grants share-based awards to members of its Board of Directors, management and employees. All such awards are measured at fair value on the date of grant and are generally recognized as a component of G&A in the accompanying consolidated statements of comprehensive earnings over the applicable requisite service periods. As a result of Devon’s restructuring activity discussed in Note 6, certain share-based awards were accelerated and recognized as a component of restructuring and transaction costs in the accompanying consolidated statements of comprehensive earnings.

Generally, Devon uses new shares from approved incentive programs to grant share-based awards and to issue shares upon stock option exercises. Shares repurchased under approved programs are generally available to be issued as part of Devon’s share-based awards. However, Devon has historically canceled these shares upon repurchase.

Income Taxes

Devon is subject to current income taxes assessed by the federal and various state jurisdictions in the U.S. and by other foreign jurisdictions. In addition, Devon accounts for deferred income taxes related to these jurisdictions using the asset and liability method. Under this method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences and carryforwards are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date.

 

Deferred tax assets are also recognized for the future tax benefits attributable to the expected utilization of existing tax net operating loss carryforwards and other types of carryforwards. If the future utilization of some portion of the deferred tax assets is determined to be unlikely, a valuation allowance is provided to reduce the recorded tax benefits from such assets. Devon periodically weighs the positive and negative evidence to determine if it is more likely than not that some or all of the deferred tax assets will be realized. Forming a conclusion that a valuation allowance is not required is difficult when there is significant negative evidence, such as cumulative losses in recent years. See Note 8 for further discussion.

Devon recognizes the financial statement effects of tax positions when it is more likely than not, based on the technical merits, that the position will be sustained upon examination by a taxing authority. Recognized tax positions are initially and subsequently measured as the largest amount of tax benefit that is more likely than not of being realized upon ultimate settlement with a taxing authority. Liabilities for unrecognized tax benefits related to such tax positions are included in other long-term liabilities unless the tax position is expected to be settled within the upcoming year, in which case the liabilities are included in other current liabilities. Interest and penalties related to unrecognized tax benefits are included in current income tax expense.

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

Net Earnings (Loss) Per Share Attributable to Devon

Devon’s basic earnings per share amounts have been computed based on the average number of shares of common stock outstanding for the period. Basic earnings per share includes the effect of participating securities, which primarily consist of Devon’s outstanding restricted stock awards. Diluted earnings per share is calculated

using the treasury stock method to reflect the assumed issuance of common shares for all potentially dilutive securities. Such securities primarily consist of unvested performance share units.

Cash, Cash Equivalents and Restricted Cash

Devon considers all highly liquid investments with original contractual maturities of three months or less to be cash equivalents. To fund retained long-term obligations related to previously disposed assets, approximately $120 million and $160 million of Devon’s cash balance as of December 31, 2022 and 2021, respectively, is presented as restricted. These obligations primarily relate to abandoned Canadian firm transportation agreements. This cash is not legally restricted and can be used by Devon for other general corporate purposes.

Accounts Receivable

Devon’s accounts receivable balance primarily consists of oil and gas sales receivables, marketing and midstream revenue receivables and joint interest receivables. Devon does not require collateral security for joint interest receivables.

Devon records an allowance for credit losses based on a forward-looking “expected loss” model. Credit risk is assessed by class of account type, which includes cash equivalents and oil and gas, marketing and midstream, joint interest and other accounts receivable. These classes are further evaluated using a probability-weighted scenario assessment based on historical losses and a probability of future default. This evaluation is supported by an assessment of risk factors such as the age of the receivable, current macro-economic conditions, credit rating of the counterparty and our historical loss rate.

Property and Equipment

Oil and Gas Property and Equipment

Devon follows the successful efforts method of accounting for its oil and gas properties. Exploration costs, such as exploratory geological and geophysical costs, and costs associated with nonproductive exploratory wells, delay rentals and exploration overhead are charged against earnings as incurred. Costs of drilling successful exploratory wells along with acquisition costs and the costs of drilling development wells, including those that are unsuccessful, are capitalized. Devon groups its oil and gas properties with a common geological structure or stratigraphic condition (“common operating field”) for purposes of computing DD&A, assessing proved property impairments and accounting for asset dispositions.

Exploratory drilling costs and exploratory-type stratigraphic test wells are initially capitalized, or suspended, pending the determination of proved reserves. If proved reserves are found, drilling costs remain capitalized as proved properties. Costs of unsuccessful wells are charged to exploration expense. For exploratory wells that find reserves that cannot be classified as proved when drilling is completed, costs continue to be capitalized as suspended exploratory well costs if there have been sufficient reserves found to justify completion as a producing well and sufficient progress is being made in assessing the reserves and the economic and operating viability of the project. If management determines that future appraisal drilling or development activities are unlikely to occur, associated suspended exploratory well costs are expensed. In some instances, this determination may take longer than one year. Devon reviews the status of all suspended exploratory drilling costs quarterly.

 

Capitalized costs of proved oil and gas properties are depleted by an equivalent unit-of-production method, converting gas to oil at the ratio of six Mcf of gas to one Bbl of oil. Proved leasehold acquisition costs, less accumulated amortization, are depleted over total proved reserves, which includes proved undeveloped reserves.

Capitalized costs of wells and related equipment and facilities, including estimated asset retirement costs, net of estimated salvage values and less accumulated amortization are depreciated over proved developed reserves associated with those capitalized costs. Depletion is calculated by applying the DD&A rate (amortizable base divided by beginning of period proved reserves) to current period production.

Costs associated with unproved properties are excluded from the depletion calculation until it is determined whether or not proved reserves can be assigned to such properties. Devon assesses its unproved properties for impairment annually, or more frequently if events or changes in circumstances dictate that the carrying value of those assets may not be recoverable. Significant unproved properties are assessed individually.

Proved properties are assessed for impairment when events or changes in circumstances dictate that the carrying value of those assets may not be recoverable. Individual assets are grouped for impairment purposes based on a common operating field. If there is an indication the carrying amount of an asset may not be recovered, the asset is assessed for potential impairment by management through an established process. If, upon review, the sum of the undiscounted pre-tax reserve cash flows is less than the carrying value of the asset, the carrying value is written down to estimated fair value. Because there is usually a lack of quoted market prices for long-lived assets, the fair value of impaired assets is typically determined based on the present values of expected future cash flows using discount rates believed to be consistent with those used by principal market participants or by comparable transactions. The expected future cash flows used for impairment reviews and related fair value calculations are typically based on judgmental assessments of future production volumes, commodity prices, operating costs, and capital investment plans, considering all available information at the date of review.

Gains or losses are recorded for sales or dispositions of oil and gas properties which constitute an entire common operating field or which result in a significant alteration of the common operating field’s DD&A rate. These gains and losses are classified as asset dispositions in the accompanying statements of comprehensive earnings. Partial common operating field sales or dispositions deemed not to significantly alter the DD&A rates are generally accounted for as adjustments to capitalized costs with no gain or loss recognized.

Devon capitalizes interest costs incurred that are attributable to material unproved oil and gas properties and major development projects of oil and gas properties.

Other Property and Equipment

Costs for midstream assets that are in use are depreciated over the assets’ estimated useful lives, using the straight-line method. Depreciation and amortization of other property and equipment, including corporate and leasehold improvements, are provided using the straight-line method based on estimated useful lives ranging from three to 60 years. Interest costs incurred and attributable to major corporate construction projects are also capitalized.

 

Asset Retirement Obligations

Devon recognizes liabilities for retirement obligations associated with tangible long-lived assets, such as producing well sites when there is a legal obligation associated with the retirement of such assets and the amount can be reasonably estimated. The initial measurement of an asset retirement obligation is recorded as a liability at its fair value, with an offsetting asset retirement cost recorded as an increase to the associated property and equipment on the consolidated balance sheet. When the assumptions used to estimate a recorded asset retirement obligation change, a revision is recorded to both the asset retirement obligation and the asset retirement cost. Devon’s asset retirement obligations also include estimated environmental remediation costs which arise from normal operations and are associated with the retirement of such long-lived assets. The asset retirement cost is depreciated using a systematic and rational method similar to that used for the associated property and equipment.

Leases

 

Devon establishes right-of-use assets and lease liabilities on the balance sheet for all leases with a term longer than 12 months. Devon’s right-of-use operating lease assets are for certain leases related to real estate, drilling rigs and other equipment related to the exploration, development and production of oil and gas. Devon’s right-of-use financing lease assets are related to real estate. Certain of Devon’s lease agreements include variable payments based on usage or rental payments adjusted periodically for inflation. Devon’s lease agreements do not contain any material residual value guarantees or restrictive covenants.

Goodwill

Goodwill represents the excess of the purchase price of business combinations over the fair value of the net assets acquired and is tested for impairment annually, or more frequently if events or changes in circumstances dictate that the carrying value of goodwill may not be recoverable. Such test includes a qualitative assessment to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If the qualitative assessment determines that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, including goodwill, then a quantitative goodwill impairment test is performed. The quantitative goodwill impairment test requires the fair value of the reporting unit be compared to the carrying value of the reporting unit. If the fair value of the reporting unit is less than the carrying value, an impairment charge will be recognized for the amount by which the carrying amount exceeds the fair value. The fair value of the reporting unit is estimated based upon market capitalization, comparable transactions of similar companies and premiums paid.

Devon performed impairment tests of goodwill in the fourth quarters of 2022, 2021 and 2020. No impairment was required as a result of the annual tests in these time periods.

Commitments and Contingencies

Liabilities for loss contingencies arising from claims, assessments, litigation or other sources are recorded when it is probable that a liability has been incurred and the amount can be reasonably estimated. Liabilities for environmental remediation or restoration claims resulting from allegations of improper operation of assets are recorded when it is probable that obligations have been incurred and the amounts can be reasonably estimated. Expenditures related to such environmental matters are expensed or capitalized in accordance with Devon’s accounting policy for property and equipment.

Fair Value Measurements

Certain of Devon’s assets and liabilities are measured at fair value at each reporting date. Fair value represents the price that would be received to sell the asset or paid to transfer the liability in an orderly transaction between market participants. This price is commonly referred to as the “exit price.” Fair value measurements are classified according to a hierarchy that prioritizes the inputs underlying the valuation techniques. This hierarchy consists of three broad levels:

•
Level 1 – Inputs consist of unadjusted quoted prices in active markets for identical assets and liabilities and have the highest priority. When available, Devon measures fair value using Level 1 inputs because they generally provide the most reliable evidence of fair value.
•
Level 2 – Inputs consist of quoted prices that are generally observable for the asset or liability. Common examples of Level 2 inputs include quoted prices for similar assets and liabilities in active markets or quoted prices for identical assets and liabilities in markets not considered to be active.
•
Level 3 – Inputs are not observable from objective sources and have the lowest priority. The most common Level 3 fair value measurement is an internally developed cash flow model.

 

Noncontrolling Interests

Noncontrolling interests represent third-party ownership in the net assets of Devon’s consolidated subsidiaries and are presented as a component of equity. Changes in Devon’s ownership interests in subsidiaries that do not result in deconsolidation are recognized in equity.
v3.22.4
Acquisitions and Divestitures
 12 Months Ended
Dec. 31, 2022
Business Combinations [Abstract]  
Acquisition and Divestitures
2.
Acquisitions and Divestitures

WPX Merger

On January 7, 2021, Devon and WPX completed an all-stock merger of equals. WPX was an oil and gas exploration and production company with assets in the Delaware Basin in Texas and New Mexico and the Williston Basin in North Dakota. On the closing date of the Merger, each share of WPX common stock was automatically converted into the right to receive 0.5165 of a share of Devon common stock. No fractional shares of Devon’s common stock were issued in the Merger, and holders of WPX common stock instead received cash in lieu of fractional shares of Devon common stock, if any. Based on the closing price of Devon’s common stock on January 7, 2021, the total value of Devon common stock issued to holders of WPX common stock as part of this transaction was approximately $5.4 billion. The Merger was structured as a tax-free reorganization for U.S. federal income tax purposes.

 

Purchase Price Allocation

The allocation of the total purchase price of WPX to the identifiable assets acquired and the liabilities assumed was finalized at December 31, 2021. The transaction was accounted for using the acquisition method of accounting, with Devon being treated as the accounting acquirer. Under the acquisition method of accounting, the assets and liabilities of WPX and its subsidiaries were recorded at their respective fair values as of the date of completion of the Merger and added to Devon’s. Determining the fair value of the assets and liabilities of WPX required judgment and certain assumptions to be made, the most significant of these being related to the valuation of WPX's oil and gas properties. Significant judgments and assumptions included, among other things, estimates of reserve quantities, estimates of future commodity prices, expected development costs, lease operating costs, reserve risk adjustment factors and an estimate of an applicable market participant discount rate that reflected the risk of the underlying cash flow estimates. The inputs and assumptions related to the oil and gas properties were categorized as level 3 in the fair value hierarchy.

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

 

 

 

Final Purchase

 

 

 

Price Allocation

 

Consideration:

 

 

 

 WPX Common Stock outstanding

 

 

561.2

 

 Exchange Ratio

 

 

0.5165

 

 Devon common stock issued

 

 

289.9

 

 Devon closing price on January 7, 2021

 

$

18.57

 

Total common equity consideration

 

 

5,383

 

 Share-based replacement awards

 

 

49

 

Total consideration

 

$

5,432

 

Assets acquired:

 

 

 

 Cash, cash equivalents and restricted cash

 

$

344

 

 Accounts receivable

 

 

425

 

 Other current assets

 

 

49

 

 Right-of-use assets

 

 

38

 

 Proved oil and gas property and equipment

 

 

7,017

 

 Unproved and properties under development

 

 

2,362

 

 Other property and equipment

 

 

485

 

 Investments

 

 

400

 

 Other long-term assets

 

 

43

 

Total assets acquired

 

$

11,163

 

Liabilities assumed:

 

 

 

 Accounts payable

 

$

346

 

 Revenue and royalties payable

 

 

223

 

 Other current liabilities

 

 

454

 

 Debt

 

 

3,562

 

 Lease liabilities

 

 

38

 

 Asset retirement obligations

 

 

94

 

 Deferred income taxes

 

 

249

 

 Other long-term liabilities

 

 

765

 

Total liabilities assumed

 

 

5,731

 

 Net assets acquired

 

$

5,432

 

 

Pro Forma Financial Information

The following unaudited pro forma financial information for the year ended December 31, 2020 is based on our historical consolidated financial statements adjusted to reflect as if the Merger had occurred on January 1, 2020. The information below reflects pro forma adjustments to conform WPX’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 Merger had been completed as of the beginning of the periods presented, nor is it indicative of future results.

 

 

 

Year Ended December 31,

 

Continuing operations:

 

2020

 

Total revenues

 

$

7,261

 

Net loss

 

$

(3,438

)

Basic net loss per share

 

$

(5.16

)

 

 

Acquisitions

‌

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

 

Divestitures – Continuing Operations

 

In 2021, Devon completed the sale of non-core assets in the Rockies for proceeds of $9 million, net of purchase price adjustments, and recognized a $35 million gain related to the sale. Devon received $4 million in contingent earnout payments related to this transaction in the first quarters of 2023 and 2022. The total estimated proved reserves associated with these divested assets was approximately 3 MMBoe.‌

 

Divestitures – Discontinued Operations

 

In the fourth quarter of 2020, Devon completed the sale of its Barnett Shale assets to BKV for proceeds, net of purchase price adjustments, of $490 million. The agreement with BKV provides for contingent earnout payments to Devon with upside participation beginning at a $2.75 Henry Hub natural gas price or a $50 WTI oil price. The contingent payment period commenced on January 1, 2021 and has a term of four years. Devon received $65 million in contingent earnout payments related to this transaction in the first quarters of 2023 and 2022 and could receive up to an additional $130 million in contingent earnout payments for the remaining performance periods depending on future commodity prices. The valuation of the future contingent earnout payments included within other current assets and other long-term assets in the December 31, 2022 consolidated balance sheet was $65 million and $88 million, respectively. During 2022 and 2021, Devon recorded a $42 million and $110 million increase to the fair value within asset dispositions on the consolidated statements of comprehensive earnings related to these payments. These values were derived utilizing a Monte Carlo valuation model and qualify as a level 3 fair value measurement. Additional information can be found in Note 19.
v3.22.4
Derivative Financial Instruments
 12 Months Ended
Dec. 31, 2022
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Financial Instruments
3.
Derivative Financial Instruments

Commodity Derivatives

As of December 31, 2022, 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 Collars

 

 

Period

 

Volume
(Bbls/d)

 

 

Weighted
Average Floor
Price ($/Bbl)

 

 

Weighted
Average
Ceiling Price
($/Bbl)

 

 

Q1-Q4 2023

 

 

86,207

 

 

$

69.03

 

 

$

94.66

 

 

 

 

 

Oil Basis Swaps

 

Period

 

Index

 

Volume
(Bbls/d)

 

 

Weighted Average
Differential to WTI
($/Bbl)

 

Q1-Q4 2023

 

Midland Sweet

 

 

18,647

 

 

$

0.73

 

Q1-Q4 2024

 

Midland Sweet

 

 

9,000

 

 

$

1.14

 

 

As of December 31, 2022, 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)

 

Q1-Q4 2023

 

 

11,123

 

 

$

5.47

 

 

 

199,490

 

 

$

3.78

 

 

$

8.27

 

Q1-Q4 2024

 

 

 

 

 

 

 

 

40,527

 

 

$

3.78

 

 

$

7.05

 

 

 

 

Natural Gas Basis Swaps

 

Period

 

Index

 

Volume
(MMBtu/d)

 

 

Weighted Average
Differential to
Henry Hub
($/MMBtu)

 

Q1-Q4 2023

 

El Paso Natural Gas

 

 

140,041

 

 

$

(1.58

)

Q1-Q4 2023

 

Houston Ship Channel

 

 

110,000

 

 

$

(0.16

)

Q1-Q4 2023

 

WAHA

 

 

70,000

 

 

$

(0.51

)

Q1-Q4 2024

 

WAHA

 

 

40,000

 

 

$

(0.51

)

 

As of December 31, 2022, Devon did not have any open NGL derivative positions.

Financial Statement Presentation

 

All derivative financial instruments are recognized at their current fair value as either assets or liabilities in the consolidated balance sheets. Amounts related to contracts allowed to be netted upon payment subject to a master

netting arrangement with the same counterparty are reported on a net basis in the consolidated balance sheets. The table below presents a summary of these positions as of December 31, 2022 and 2021.

 

 

December 31, 2022

 

 

December 31, 2021

 

 

 

 

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

$

138

 

 

$

(19

)

 

$

119

 

 

$

6

 

 

$

(4

)

 

$

2

 

 

Other current assets

Long-term derivative asset

 

12

 

 

 

—

 

 

 

12

 

 

 

6

 

 

 

—

 

 

 

6

 

 

Other long-term assets

Short-term derivative liability

 

(22

)

 

 

19

 

 

 

(3

)

 

 

(579

)

 

 

4

 

 

 

(575

)

 

Other current liabilities

Long-term derivative liability

 

—

 

 

 

—

 

 

 

—

 

 

 

(2

)

 

 

—

 

 

 

(2

)

 

Other long-term liabilities

Total derivative asset (liability)

$

128

 

 

$

—

 

 

$

128

 

 

$

(569

)

 

$

—

 

 

$

(569

)

 

 
v3.22.4
Share-Based Compensation
 12 Months Ended
Dec. 31, 2022
Share-Based Payment Arrangement [Abstract]  
Share-Based Compensation
4.
Share-Based Compensation

In 2022, Devon's stockholders approved the 2022 Plan. The 2022 Plan replaces the 2017 Plan. From the effective date of the 2022 Plan, no further awards may be made under the 2017 Plan; however, awards previously granted will continue to be governed by the terms of the respective award documents. The 2022 Plan authorizes the grant of nonqualified and incentive stock options, restricted stock awards or units and stock appreciation rights to eligible employees. Restricted stock awards or restricted stock units granted under the 2022 Plan may be subject to performance-based conditions. The 2022 Plan also authorizes the grant of nonqualified stock options, restricted stock awards or units and stock appreciation rights to non-employee directors. To calculate the number of shares that may be granted in awards under the 2022 Plan, options and stock appreciation rights represent one share and other awards represent 1.74 shares.

The vesting for certain share-based awards was accelerated in 2021 and 2020 in conjunction with the reduction of workforce activities described in Note 6 and is included in restructuring and transaction costs in the accompanying consolidated statements of comprehensive earnings.

 

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

 

 

Year Ended December 31,

 

 

 

2022

 

 

2021

 

 

2020

 

G&A

 

$

87

 

 

$

77

 

 

$

76

 

Exploration expenses

 

 

1

 

 

 

1

 

 

 

1

 

Restructuring and transaction costs

 

 

—

 

 

 

21

 

 

 

11

 

Total

 

$

88

 

 

$

99

 

 

$

88

 

Related income tax benefit

 

$

34

 

 

$

13

 

 

$

—

 

 

The following table presents a summary of Devon’s unvested restricted stock awards and units and performance share units granted under the plans.

 

 

 

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 12/31/21

 

 

7,656

 

 

$

22.15

 

 

 

2,076

 

 

$

24.12

 

 

Granted

 

 

1,408

 

 

$

53.60

 

 

 

964

 

 

$

44.05

 

(1)

Vested

 

 

(3,192

)

 

$

23.10

 

 

 

(1,194

)

 

$

28.91

 

 

Forfeited

 

 

(84

)

 

$

34.05

 

 

 

(5

)

 

$

68.68

 

 

Unvested at 12/31/22

 

 

5,788

 

 

$

29.11

 

 

 

1,841

 

(2)

$

31.33

 

 

 

(1)
These grants also include the impact of performance share units granted in prior year that vested higher than 100% target due to Devon's TSR performance compared to applicable peers.
(2)
A maximum of 3.7 million common shares could be awarded based upon Devon’s final TSR ranking.

The following table presents the aggregate fair value of awards and units that vested during the indicated period.

 

 

 

2022

 

 

2021

 

 

2020

 

Restricted Stock Awards and Units

 

$

180

 

 

$

115

 

 

$

44

 

Performance-Based Restricted Stock Awards

 

$

—

 

 

$

1

 

 

$

2

 

Performance Share Units

 

$

62

 

 

$

15

 

 

$

10

 

 

The following table presents the unrecognized compensation cost and the related weighted average recognition period associated with unvested awards and units as of December 31, 2022.

 

 

 

Restricted Stock

 

 

Performance

 

 

 

Awards/Units

 

 

Share Units

 

Unrecognized compensation cost

 

$

85

 

 

$

18

 

Weighted average period for recognition (years)

 

 

2.5

 

 

 

1.6

 

 

Restricted Stock Awards and Units

Restricted stock awards and units are subject to the terms, conditions, restrictions and limitations, if any, that the Compensation Committee deems appropriate, including restrictions on continued employment. Generally, the service requirement for vesting ranges from one to four years. Dividends declared during the vesting period with respect to restricted stock awards and units will not be paid until the underlying award vests. Devon estimates the fair values of restricted stock awards and units as the closing price of Devon’s common stock on the grant date of the award, which is expensed over the applicable vesting period.

Performance Share Units

Performance share units are granted to certain members of Devon’s management and employees. Each unit that vests entitles the recipient to one share of Devon common stock. The vesting of these units is based on comparing Devon’s TSR to the TSR of a predetermined group of peer companies over the specified three-year performance period. Subject to certain limits, the vesting of units may be between zero and 200% of the units granted depending on Devon’s TSR as compared to the peer group as of the end of the performance period.

At vesting, recipients receive dividend equivalents with respect to the number of units vested. The fair value of each performance share unit is estimated as of the date of grant using a Monte Carlo simulation with the following assumptions used for all grants made under the plan: (i) a risk-free interest rate based on U.S. Treasury rates as of the grant date; (ii) a volatility assumption based on the historical realized price volatility of Devon and the designated peer group; and (iii) an estimated ranking of Devon among the designated peer group. The fair value of the unit on the date of grant is expensed over the applicable vesting period. The following table presents the assumptions related to performance share units granted.

 

 

 

2022

 

 

2021

 

 

2020

 

Grant-date fair value

 

$

68.68

 

 

$

18.08

 

 

$

27.89

 

Risk-free interest rate

 

 

1.81

%

 

 

0.18

%

 

 

1.36

%

Volatility factor

 

 

70.1

%

 

 

67.8

%

 

 

38.4

%

Contractual term (years)

 

 

2.89

 

 

 

2.89

 

 

 

2.89

 
v3.22.4
Asset Impairments
 12 Months Ended
Dec. 31, 2022
Asset Impairment Charges [Abstract]  
Asset Impairments
5.
Asset Impairments

 

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

 

 

 

Year Ended December 31,

 

 

 

2022

 

 

2021

 

 

2020

 

Proved oil and gas assets

 

$

—

 

 

$

—

 

 

$

2,664

 

Other assets

 

 

—

 

 

 

—

 

 

 

29

 

Total asset impairments

 

$

—

 

 

$

—

 

 

$

2,693

 

 

 

 

 

 

 

 

 

 

 

Unproved impairments

 

$

12

 

 

$

4

 

 

$

152

 

 

Proved Oil and Gas and Other Asset Impairments

Reduced demand from the COVID-19 pandemic caused an unprecedented downturn in the price of oil. As a result, Devon reduced 2020 planned capital spend by 45% in March 2020. With materially lower commodity prices and reduced near-term investment, Devon assessed all of its oil and gas common operating fields for impairment as of March 31, 2020. For impairment determination, Devon historically utilized NYMEX forward strip prices for the first five years and applied internally generated price forecasts for subsequent years. In response to the COVID-19 pandemic, the NYMEX forward market became highly illiquid as evidenced by materially reduced trading volumes for periods beyond 2021. Therefore, Devon supplemented the NYMEX forward strip prices with price forecasts published by reputable investment banks and reservoir engineering firms to estimate future revenues as of March 31, 2020. For WTI, the range of pricing utilized in the first ten years of impairment reserve cash flows was approximately $23 to $50, and the weighted average of WTI pricing was approximately $39. For Henry Hub pricing utilized in the first ten years of impairment reserve cash flows, the range was approximately $1.29 - $2.63, with a weighted average Henry Hub price of approximately $1.85. To measure the indicated impairment in the first quarter of 2020, Devon used a market-based weighted-average cost of capital of 9% to discount the future net cash flows. These inputs are categorized as level 3 in the fair value hierarchy.

 

Devon recognized approximately $2.7 billion of proved asset impairments during the first quarter of 2020. These impairments related to the Anadarko Basin and Rockies fields in which the cost basis included acquisitions completed in 2016 and 2015, respectively, when commodity prices were much higher. During 2020, Devon recognized approximately $29 million of non-oil and gas asset impairments.

Unproved Impairments

Due to the downturn in the commodity price environment and reduced near-term investment as discussed above, Devon recognized $152 million of unproved impairments in 2020, primarily in the Rockies field. In 2022 and 2021, Devon allowed certain non-core acreage to expire without plans for development resulting in unproved impairments.
v3.22.4
Restructuring and Transaction Costs
 12 Months Ended
Dec. 31, 2022
Restructuring and Related Activities [Abstract]  
Restructuring and Transaction Costs
6.
Restructuring and Transaction Costs

The following table summarizes Devon’s restructuring and transaction costs.

 

 

 

Year Ended December 31,

 

 

 

2022

 

 

2021

 

 

2020

 

Restructuring costs

 

$

—

 

 

$

210

 

 

$

41

 

Transaction costs

 

 

—

 

 

 

48

 

 

 

8

 

Total costs

 

$

—

 

 

$

258

 

 

$

49

 

2021 Merger Integration

In conjunction with the Merger closing, Devon recognized $210 million of restructuring expense in 2021 related to employee severance and termination benefits, settlements and curtailments from defined retirement benefits and contract terminations. Of these expenses, $66 million related to non-cash charges which primarily consisted of settlements and curtailments of defined retirement benefits of $41 million and the accelerated vesting of share-based grants of $21 million. Additionally, in conjunction primarily with the Merger closing, Devon recognized $48 million of transaction costs primarily comprised of bank, legal and accounting fees.

Prior Years’ Restructurings

During 2020, Devon sold assets, reduced its workforce and recognized restructuring expenses of $41 million. Of these expenses recognized in 2020, $11 million and $9 million resulted from accelerated vesting of share-based grants and settlements and curtailments of defined retirement benefits, respectively.

The following table summarizes Devon’s restructuring liabilities. The remaining restructuring liability as of December 31, 2022 primarily relates to obligations associated with an abandoned Canadian firm transportation agreement.

 

 

 

Other

 

 

Other

 

 

 

 

 

 

Current

 

 

Long-term

 

 

 

 

 

 

Liabilities

 

 

Liabilities

 

 

Total

 

Balance as of December 31, 2020

 

$

35

 

 

$

137

 

 

$

172

 

Changes related to prior years' restructurings

 

 

3

 

 

 

(26

)

 

 

(23

)

Balance as of December 31, 2021

 

$

38

 

 

$

111

 

 

$

149

 

Changes related to prior years' restructurings

 

 

(4

)

 

 

(30

)

 

 

(34

)

Balance as of December 31, 2022

 

$

34

 

 

$

81

 

 

$

115

 
v3.22.4
Other, Net
 12 Months Ended
Dec. 31, 2022
Other Expenses [Abstract]  
Other, Net
7.
Other, Net

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

 

 

 

Year Ended December 31,

 

 

 

2022

 

 

2021

 

 

2020

 

Estimated future obligation under a performance guarantee

 

$

(144

)

 

$

(18

)

 

$

—

 

Ukraine charitable pledge

 

 

20

 

 

 

—

 

 

 

—

 

Asset retirement obligation accretion

 

 

25

 

 

 

28

 

 

 

20

 

Severance and other non-income tax refunds

 

 

(5

)

 

 

(39

)

 

 

(40

)

Other

 

 

9

 

 

 

(14

)

 

 

(14

)

Total

 

$

(95

)

 

$

(43

)

 

$

(34

)

 

Devon has guaranteed performance through 2026 for a minimum volume commitment associated with assets divested in 2018. In 2022, the purchaser of the assets was able to fully satisfy the $35 million performance obligation due in 2022 and repay Devon $44 million for shortfall payments paid by WPX and Devon in 2021 and 2020. Due to improved commodity prices, market conditions, and performance by the purchaser of the assets, Devon also reduced the estimated liability associated with this performance obligation by $65 million in 2022. The effect of these cash collections and liability revisions resulted in a $144 million total benefit in 2022.

During 2022, Devon paid approximately $20 million for humanitarian relief for the Ukrainian people and surrounding countries supporting refugees.

During 2022, 2021 and 2020, Devon received severance and other non-income tax refunds of $5 million, $39 million and $40 million, respectively, related to prior periods.

v3.22.4
Income Taxes
 12 Months Ended
Dec. 31, 2022
Income Tax Disclosure [Abstract]  
Income Taxes
8.
Income Taxes

Income Tax Expense (Benefit)

The following table presents Devon’s income tax components.

 

 

 

Year Ended December 31,

 

 

 

2022

 

 

2021

 

 

2020

 

Current income tax expense (benefit):

 

 

 

 

 

 

 

 

 

U.S. federal

 

$

501

 

 

$

10

 

 

$

(219

)

Various states

 

 

65

 

 

 

9

 

 

 

—

 

Canada

 

 

(7

)

 

 

(3

)

 

 

—

 

Total current income tax expense (benefit)

 

 

559

 

 

 

16

 

 

 

(219

)

Deferred income tax expense (benefit):

 

 

 

 

 

 

 

 

 

U.S. federal

 

 

1,090

 

 

 

18

 

 

 

(304

)

Various states

 

 

82

 

 

 

22

 

 

 

(24

)

Canada

 

 

7

 

 

 

9

 

 

 

—

 

Total deferred income tax expense (benefit)

 

 

1,179

 

 

 

49

 

 

 

(328

)

Total income tax expense (benefit)

 

$

1,738

 

 

$

65

 

 

$

(547

)

 

 

Total income tax expense differed from the amounts computed by applying the U.S. federal income tax rate to earnings (loss) from continuing operations before income taxes as a result of the following:

 

 

 

Year Ended December 31,

 

 

 

2022

 

 

2021

 

 

2020

 

Earnings (loss) from continuing operations before income taxes

 

$

7,775

 

 

$

2,898

 

 

$

(3,090

)

 

 

 

 

 

 

 

 

 

 

U.S. statutory income tax rate

 

 

21

%

 

 

21

%

 

 

21

%

Change in tax legislation

 

 

0

%

 

 

0

%

 

 

4

%

State income taxes

 

 

1

%

 

 

1

%

 

 

1

%

Other

 

 

0

%

 

 

2

%

 

 

(1

%)

Deferred tax asset valuation allowance

 

 

0

%

 

 

(22

%)

 

 

(7

%)

Effective income tax rate

 

 

22

%

 

 

2

%

 

 

18

%

 

Devon and its subsidiaries are subject to U.S. federal income tax as well as income or capital taxes in various state and foreign jurisdictions. Devon’s tax reserves are related to tax years that may be subject to examinations by the relevant taxing authority. Devon is under audit in the U.S. and various foreign jurisdictions as part of its normal course of business.

 

Devon assesses the realizability of its deferred tax assets. If Devon concludes that it is more likely than not that some portion or all of the deferred tax assets will not be realized, the asset is reduced by a valuation allowance. Numerous judgments and assumptions are inherent in the determination of future taxable income, including factors such as future operating conditions (particularly as related to prevailing oil and gas prices) and changing tax laws.

 

2022

On August 16, 2022, the IRA was signed into law and included various income tax related provisions with effective dates generally beginning in 2023. Among the enacted provisions are a 15% corporate alternative minimum tax (“CAMT”) and several new and expanded clean energy credits and incentives. The CAMT will be assessed on applicable corporations with an average annual adjusted financial statement income that exceeds $1 billion for the preceding three consecutive years. Devon has made an accounting policy election to not consider the effects of the CAMT on the realizability of its deferred tax assets, carryforwards and other tax credits and will instead account for any such effects as a period cost when they arise.

 

2021

Prior to 2021, Devon maintained a valuation allowance against all U.S. federal deferred tax assets. Devon recognized approximately $250 million of deferred tax liabilities to account for the Merger. The recognition of these deferred tax liabilities caused a decrease to Devon’s net deferred tax assets and a corresponding decrease to the valuation allowance Devon had recognized on its U.S. federal deferred tax assets.

Due to significant increases in commodity pricing and projections of future income, in the fourth quarter of 2021, Devon reassessed its evaluation of the realizability of deferred tax assets in future years and determined that a U.S. federal valuation allowance was no longer necessary. As such, Devon removed its remaining $84 million U.S. federal valuation allowance.

 

2020

The Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) became law on March 27, 2020. The CARES Act allows net operating losses generated in taxable years beginning after December 31, 2017 and

before January 1, 2021 to be carried back five years to offset taxable income and recoup previously paid taxes. As a result, Devon carried net operating losses generated in 2019 and 2020 back to 2014 and 2015, respectively, and recorded a $220 million current income tax benefit, partially offset by a $107 million deferred income tax expense. The net $113 million income tax benefit recorded in 2020 is the result of the higher U.S. federal income tax rate in the carry back periods.

 

Throughout 2019, Devon maintained a valuation allowance against certain deferred tax assets, including certain tax credits and state net operating losses. Reduced demand from the COVID-19 pandemic caused an unprecedented downturn in the commodity price environment in 2020. As a result, Devon recorded significant impairments during the first quarter of 2020. Devon reassessed its position and recorded a 100% valuation allowance against all U.S. federal and state net deferred tax assets and maintained a full valuation allowance position throughout 2020.

Deferred Tax Assets and Liabilities

The following table presents the tax effects of temporary differences that gave rise to Devon’s deferred tax assets and liabilities.

 

 

 

December 31,

 

 

 

2022

 

 

2021

 

Deferred tax assets:

 

 

 

 

 

 

Net operating loss carryforwards

 

$

526

 

 

$

1,075

 

Capital loss carryforwards

 

 

523

 

 

 

559

 

Accrued liabilities

 

 

209

 

 

 

262

 

Fair value of derivative financial instruments

 

 

—

 

 

 

129

 

Asset retirement obligation

 

 

119

 

 

 

109

 

Other, including tax credits

 

 

14

 

 

 

138

 

Total deferred tax assets before valuation allowance

 

 

1,391

 

 

 

2,272

 

Less: valuation allowance

 

 

(814

)

 

 

(893

)

Net deferred tax assets

 

 

577

 

 

 

1,379

 

Deferred tax liabilities:

 

 

 

 

 

 

Property and equipment

 

 

(1,969

)

 

 

(1,630

)

Fair value of derivative financial instruments

 

 

(33

)

 

 

—

 

Other

 

 

(38

)

 

 

(29

)

Total deferred tax liabilities

 

 

(2,040

)

 

 

(1,659

)

Net deferred tax asset (liability)

 

$

(1,463

)

 

$

(280

)

 

At December 31, 2022, Devon has recognized $526 million of deferred tax assets related to various net operating loss carryforwards available to offset future taxable income. Devon has $221 million of U.S. federal net operating loss carryforwards, of which $199 million expires between 2030 and 2037, and $22 million does not expire. Devon also has $305 million of state net operating loss carryforwards primarily expiring between 2023 and 2041, $268 million of which are covered by a valuation allowance.

 

Devon’s net operating losses acquired from WPX as a result of the Merger are subject to limitation pursuant to Section 382 of the Internal Revenue Code of 1986, which relates to limitations upon the 50% or greater change of ownership of an entity during any three-year period. The Company anticipates utilizing these net operating losses prior to their expiration.

 

Devon's 2022 capital loss carryforward deferred tax assets, primarily related to Canada, are fully covered by a valuation allowance.

Unrecognized Tax Benefits

The following table presents changes in Devon’s unrecognized tax benefits.

 

 

 

December 31,

 

 

 

2022

 

 

2021

 

 

 

(Millions)

 

Balance at beginning of year

 

$

36

 

 

$

23

 

Tax positions taken in prior periods

 

 

51

 

 

 

5

 

Assumed WPX tax positions taken in prior periods

 

 

—

 

 

 

8

 

Settlements

 

 

(14

)

 

 

—

 

Balance at end of year

 

$

73

 

 

$

36

 

 

Devon's 2022 unrecognized tax benefit balance included no interest. At December 31, 2022 and December 31, 2021, there were $73 million and $36 million, respectively, of current unrecognized tax benefits that if recognized would affect the annual effective tax rate. Deferred unrecognized tax benefits of $42 million at December 31, 2021 are not included in the table above but are accounted for in Devon’s deferred tax disclosure above. Due to utilization of tax attributes in 2022, $42 million of Devon’s deferred unrecognized tax benefits were reclassified as current unrecognized tax benefits.

 

Included below is a summary of the tax years, by jurisdiction, that remain subject to examination by taxing authorities.

 

Jurisdiction

 

Tax Years Open

U.S. federal

 

2015-2022

Various U.S. states

 

2018-2022

Canada

 

2006-2022

 

Certain statute of limitation expirations are scheduled to occur in the next twelve months. However, Devon is currently in various stages of the administrative review process for certain open tax years. In addition, Devon is currently subject to various income tax audits that have not reached the administrative review process.

v3.22.4
Net Earnings (Loss) Per Share from Continuing Operations
 12 Months Ended
Dec. 31, 2022
Earnings Per Share [Abstract]  
Net Earnings (Loss) Per Share from Continuing Operations
9.
Net Earnings (Loss) Per Share from Continuing Operations

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

 

 

 

Year Ended December 31,

 

 

 

2022

 

 

2021

 

 

2020

 

Net earnings (loss) from continuing operations:

 

 

 

 

 

 

 

 

 

Net earnings (loss) from continuing operations

 

$

6,015

 

 

$

2,813

 

 

$

(2,552

)

Attributable to participating securities

 

 

(57

)

 

 

(30

)

 

 

(4

)

Basic and diluted earnings (loss) from continuing operations

 

$

5,958

 

 

$

2,783

 

 

$

(2,556

)

Common shares:

 

 

 

 

 

 

 

 

 

Common shares outstanding - total

 

 

657

 

 

 

670

 

 

 

383

 

Attributable to participating securities

 

 

(6

)

 

 

(7

)

 

 

(6

)

Common shares outstanding - basic

 

 

651

 

 

 

663

 

 

 

377

 

Dilutive effect of potential common shares issuable

 

 

2

 

 

 

2

 

 

 

—

 

Common shares outstanding - diluted

 

 

653

 

 

 

665

 

 

 

377

 

Net earnings (loss) per share from continuing operations:

 

 

 

 

 

 

 

 

 

Basic

 

$

9.15

 

 

$

4.20

 

 

$

(6.78

)

Diluted

 

$

9.12

 

 

$

4.19

 

 

$

(6.78

)
v3.22.4
Other Comprehensive Earnings (Loss)
 12 Months Ended
Dec. 31, 2022
Other Comprehensive Income (Loss), Net of Tax [Abstract]  
Other Comprehensive Earnings (Loss)
10.
Other Comprehensive Earnings (Loss)

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

 

 

 

Year Ended December 31,

 

 

 

2022

 

 

2021

 

 

2020

 

Pension and postretirement benefit plans:

 

 

 

 

 

 

 

 

 

Beginning accumulated pension and postretirement benefits

 

$

(132

)

 

$

(127

)

 

$

(119

)

Net actuarial gain (loss) and prior service cost arising in current year

 

 

15

 

 

 

(35

)

 

 

(34

)

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

 

 

6

 

 

 

3

 

 

 

7

 

Curtailment and settlement of pension benefits (2)

 

 

—

 

 

 

19

 

 

 

16

 

Other (3)

 

 

—

 

 

 

7

 

 

 

—

 

Income tax benefit (expense)

 

 

(5

)

 

 

1

 

 

 

3

 

Accumulated other comprehensive loss, net of tax

 

$

(116

)

 

$

(132

)

 

$

(127

)

 

 

(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. See Note 17 for additional details.

 

(2)
In 2021, the Merger triggered settlement payments to certain plan participants, and the expense associated with this settlement is recognized as a component of restructuring and transaction costs in the accompanying consolidated statements of comprehensive earnings.
Other includes a remeasurement of the pension obligation due to the Merger, which was partially offset by a change in mortality assumption.
v3.22.4
Supplemental Information To Statements Of Cash Flows
 12 Months Ended
Dec. 31, 2022
Supplemental Cash Flow Elements [Abstract]  
Supplemental Information To Statements Of Cash Flows
11.
Supplemental Information to Statements of Cash Flows

 

 

 

Year Ended December 31,

 

 

 

2022

 

 

2021

 

 

2020

 

Changes in assets and liabilities, net:

 

 

 

 

 

 

 

 

 

Accounts receivable

 

$

(142

)

 

$

(526

)

 

$

231

 

Other current assets

 

 

(119

)

 

 

30

 

 

 

(97

)

Other long-term assets

 

 

90

 

 

 

12

 

 

 

(9

)

Accounts payable and revenues and royalties payable

 

 

152

 

 

 

539

 

 

 

(109

)

Other current liabilities

 

 

(97

)

 

 

(18

)

 

 

(68

)

Other long-term liabilities

 

 

(110

)

 

 

(153

)

 

 

(43

)

Total

 

$

(226

)

 

$

(116

)

 

$

(95

)

Supplementary cash flow data - total operations:

 

 

 

 

 

 

 

 

 

Interest paid

 

$

370

 

 

$

404

 

 

$

259

 

Income taxes paid (refunded)

 

$

438

 

 

$

(116

)

 

$

171

 

 

As of December 31, 2022 and 2021, Devon had approximately $413 million and $205 million, respectively, of accrued capital expenditures included in total property and equipment, net and accounts payable on the consolidated balance sheets.
v3.22.4
Accounts Receivable
 12 Months Ended
Dec. 31, 2022
Accounts Receivable, after Allowance for Credit Loss [Abstract]  
Accounts Receivable
12.
Accounts Receivable

Components of accounts receivable include the following:

 

 

 

December 31, 2022

 

 

December 31, 2021

 

Oil, gas and NGL sales

 

$

1,153

 

 

$

984

 

Joint interest billings

 

 

162

 

 

 

158

 

Marketing and midstream revenues

 

 

428

 

 

 

370

 

Other

 

 

33

 

 

 

38

 

Gross accounts receivable

 

 

1,776

 

 

 

1,550

 

Allowance for doubtful accounts

 

 

(9

)

 

 

(7

)

Net accounts receivable

 

$

1,767

 

 

$

1,543

 
v3.22.4
Property, Plant and Equipment
 12 Months Ended
Dec. 31, 2022
Extractive Industries [Abstract]  
Property, Plant and Equipment
13.
Property, Plant and Equipment

Capitalized Costs

 

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

 

 

 

December 31, 2022

 

 

December 31, 2021

 

Property and equipment:

 

 

 

 

 

 

Proved

 

$

42,734

 

 

$

38,051

 

Unproved and properties under development

 

 

1,548

 

 

 

1,081

 

Total oil and gas

 

 

44,282

 

 

 

39,132

 

Less accumulated DD&A

 

 

(27,715

)

 

 

(25,596

)

Oil and gas property and equipment, net

 

 

16,567

 

 

 

13,536

 

Other property and equipment

 

 

2,280

 

 

 

2,139

 

Less accumulated DD&A

 

 

(741

)

 

 

(667

)

Other property and equipment, net (1)

 

 

1,539

 

 

 

1,472

 

Property and equipment, net

 

$

18,106

 

 

$

15,008

 

 

(1)
$109 million and $111 million related to CDM in 2022 and 2021, respectively.

 

Suspended Exploratory Well Costs

The following summarizes the changes in suspended exploratory well costs for the three years ended December 31, 2022.

 

 

 

Year Ended December 31,

 

 

 

2022

 

2021

 

2020

 

 

 

(Millions)

 

Beginning balance

 

$

66

 

$

18

 

$

82

 

Acquired WPX costs

 

 

—

 

 

34

 

 

—

 

Additions pending determination of proved reserves

 

 

462

 

 

206

 

 

148

 

Charges to exploration expense

 

 

(1

)

 

(2

)

 

(3

)

Reclassifications to proved properties

 

 

(401

)

 

(190

)

 

(209

)

Ending balance

 

$

126

 

$

66

 

$

18

 

 

Devon had no projects with suspended exploratory well costs capitalized for a period greater than one year since the completion of drilling as of December 31, 2022, 2021 and 2020.
v3.22.4
Debt And Related Expenses
 12 Months Ended
Dec. 31, 2022
Debt Disclosure [Abstract]  
Debt and Related Expenses
14.
Debt and Related Expenses

See below for a summary of debt instruments and balances. The notes and debentures are senior, unsecured obligations of Devon unless otherwise noted in the table below.

 

 

 

December 31, 2022

 

 

December 31, 2021

 

8.25% due August 1, 2023 (1)

 

$

242

 

 

$

242

 

5.25% due September 15, 2024 (1)

 

 

472

 

 

 

472

 

5.85% due December 15, 2025

 

 

485

 

 

 

485

 

7.50% due September 15, 2027 (2)

 

 

73

 

 

 

73

 

5.25% due October 15, 2027 (1)

 

 

390

 

 

 

390

 

5.875% due June 15, 2028 (1)

 

 

325

 

 

 

325

 

4.50% due January 15, 2030 (1)

 

 

585

 

 

 

585

 

7.875% due September 30, 2031

 

 

675

 

 

 

675

 

7.95% due April 15, 2032

 

 

366

 

 

 

366

 

5.60% due July 15, 2041

 

 

1,250

 

 

 

1,250

 

4.75% due May 15, 2042

 

 

750

 

 

 

750

 

5.00% due June 15, 2045

 

 

750

 

 

 

750

 

Net premium on debentures and notes

 

 

103

 

 

 

149

 

Debt issuance costs

 

 

(26

)

 

 

(30

)

Total debt

 

$

6,440

 

 

$

6,482

 

Less amount classified as short-term debt

 

 

251

 

 

 

—

 

Total long-term debt

 

$

6,189

 

 

$

6,482

 

 

(1)
These instruments were assumed by Devon in January 2021 in conjunction with the Merger. Approximately $50 million of these instruments remain the unsecured and unsubordinated obligation of WPX, a wholly-owned subsidiary of Devon.
(2)
This instrument was assumed by Devon in April 2003 in conjunction with the merger with Ocean Energy. The fair value and effective rate of this note at the time assumed was $169 million and 6.5%, respectively. This instrument is the unsecured and unsubordinated obligation of Devon OEI Operating, L.L.C. and is guaranteed by Devon Energy Production Company, L.P. Each of these entities is a wholly-owned subsidiary of Devon.

Debt maturities as of December 31, 2022, excluding debt issuance costs, premiums and discounts, are as follows:

 

 

 

Total

 

2023

 

$

242

 

2024

 

 

472

 

2025

 

 

485

 

2026

 

 

—

 

2027

 

 

463

 

Thereafter

 

 

4,701

 

Total

 

$

6,363

 

 

On or after the dates in the following schedule, Devon has the option to redeem the notes, in whole or in part, at the applicable redemption prices set forth in the indenture documents, plus accrued and unpaid interest thereon to the redemption date as more fully described in the indenture documents governing the notes to be redeemed. At any time prior to the dates in the following schedule, Devon has the option to redeem some or all of the notes at a specified "make whole" premium as described in such documents. Other than with respect to the notes identified in

the schedule below, Devon's senior notes generally include more limited redemption provisions, such as "par call" rights near the maturity date or "make whole" redemption rights.

 

 

 

Optional Redemption

5.25% due October 15, 2027

 

October 15, 2022

5.875% due June 15, 2028

 

June 15, 2023

4.50% due January 15, 2030

 

January 15, 2025

 

Retirement of Senior Notes

During 2021, Devon redeemed $43 million of the 6.00% senior notes due 2022, $175 million of the 5.875% senior notes due 2028, $315 million of the 4.50% senior notes due 2030, $210 million of the 5.25% senior notes due 2027 and $500 million of the 5.75% senior notes due 2026. In 2021, Devon recognized $30 million of gains on early retirement of debt, consisting of $89 million of non-cash premium accelerations, partially offset by $59 million of cash retirement costs. The gain on early retirement is included in financing costs, net in the consolidated statements of comprehensive earnings.

Credit Lines

Devon has a $3.0 billion Senior Credit Facility. As of December 31, 2022, Devon had $2 million in outstanding letters of credit under the Senior Credit Facility. There were no borrowings under the Senior Credit Facility as of December 31, 2022. The Senior Credit Facility matures on October 5, 2024, with the options to extend the maturity date by two additional one-year periods subject to lender consent. The maximum borrowing capacity of the Senior Credit Facility becomes $2.8 billion after October 5, 2023. Amounts borrowed under the Senior Credit Facility may, at the election of Devon, bear interest at various fixed rate options for periods of up to twelve months. Such rates are generally less than the prime rate. However, Devon may elect to borrow at the prime rate. The Senior Credit Facility currently provides for an annual facility fee of approximately $5 million.

The Senior Credit Facility contains only one material financial covenant. This covenant requires Devon’s ratio of total funded debt to total capitalization, as defined in the credit agreement, to be no greater than 65%. The credit agreement contains definitions of total funded debt and total capitalization that include adjustments to the respective amounts reported in the accompanying consolidated financial statements. For example, total capitalization is adjusted to add back certain noncash financial write-downs, such as asset impairments. As of December 31, 2022, Devon was in compliance with this covenant with a debt-to-capitalization ratio of 23%.

Commercial Paper

Devon’s Senior Credit Facility supports its $3.0 billion of short-term credit under its commercial paper program. Commercial paper debt generally has a maturity of between 1 and 90 days, although it can have a maturity of up to 365 days, and bears interest at rates agreed to at the time of the borrowing. As of December 31, 2022, Devon had no outstanding commercial paper borrowings.

Net Financing Costs

The following schedule includes the components of net financing costs.

 

 

 

Year Ended December 31,

 

 

 

2022

 

 

2021

 

 

2020

 

Interest based on debt outstanding

 

$

370

 

 

$

388

 

 

$

259

 

Gain on early retirement of debt

 

 

—

 

 

 

(30

)

 

 

—

 

Interest income

 

 

(38

)

 

 

(2

)

 

 

(12

)

Other

 

 

(23

)

 

 

(27

)

 

 

23

 

Total net financing costs

 

$

309

 

 

$

329

 

 

$

270

 
v3.22.4
Leases
 12 Months Ended
Dec. 31, 2022
Leases [Abstract]  
Leases
15.
Leases

Devon’s right-of-use operating lease assets are for certain leases related to real estate, drilling rigs and other equipment related to the exploration, development and production of oil and gas. Devon’s right-of-use financing lease assets are related to real estate. Certain of Devon’s lease agreements include variable payments based on usage or rental payments adjusted periodically for inflation. Devon’s lease agreements do not contain any material residual value guarantees or restrictive covenants.

The following table presents Devon’s right-of-use assets and lease liabilities.

 

 

 

December 31, 2022

 

 

December 31, 2021

 

 

 

Finance

 

 

Operating

 

 

Total

 

 

Finance

 

 

Operating

 

 

Total

 

Right-of-use assets

 

$

203

 

 

$

21

 

 

$

224

 

 

$

211

 

 

$

24

 

 

$

235

 

Lease liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current lease liabilities (1)

 

$

8

 

 

$

13

 

 

$

21

 

 

$

8

 

 

$

18

 

 

$

26

 

Long-term lease liabilities

 

 

249

 

 

 

8

 

 

 

257

 

 

 

247

 

 

 

5

 

 

 

252

 

Total lease liabilities

 

$

257

 

 

$

21

 

 

$

278

 

 

$

255

 

 

$

23

 

 

$

278

 

 

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

The following table presents Devon’s total lease cost.

 

 

 

 

Year Ended December 31,

 

 

 

 

2022

 

 

2021

 

 

2020

 

Operating lease cost

Property and equipment; LOE; G&A

 

$

22

 

 

$

25

 

 

$

10

 

Short-term lease cost (1)

Property and equipment; LOE; G&A

 

 

141

 

 

 

89

 

 

 

45

 

Financing lease cost:

 

 

 

 

 

 

 

 

 

 

Amortization of right-of-use assets

DD&A

 

 

8

 

 

 

8

 

 

 

8

 

Interest on lease liabilities

Net financing costs

 

 

11

 

 

 

11

 

 

 

11

 

Variable lease cost

G&A

 

 

—

 

 

 

(4

)

 

 

—

 

Lease income

G&A

 

 

(8

)

 

 

(8

)

 

 

(8

)

Net lease cost

 

 

$

173

 

 

$

121

 

 

$

66

 

 

(1)
Short-term lease cost excludes leases with terms of one month or less.

 

The following table presents Devon’s additional lease information.

 

 

 

Year Ended December 31,

 

 

 

2022

 

 

2021

 

 

 

Finance

 

 

Operating

 

 

Finance

 

 

Operating

 

Cash outflows for lease liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

Operating cash flows

 

$

8

 

 

$

14

 

 

$

7

 

 

$

15

 

Investing cash flows

 

$

—

 

 

$

9

 

 

$

—

 

 

$

9

 

Right-of-use assets obtained in exchange for new
   lease liabilities

 

$

—

 

 

$

20

 

 

$

—

 

 

$

7

 

Weighted average remaining lease term (years)

 

 

5.0

 

 

 

1.7

 

 

 

6.0

 

 

 

1.5

 

Weighted average discount rate

 

 

4.2

%

 

 

2.8

%

 

 

4.2

%

 

 

1.3

%

 

The following table presents Devon’s maturity analysis as of December 31, 2022 for leases expiring in each of the next 5 years and thereafter.

 

 

 

Finance

 

 

Operating

 

 

Total

 

2023

 

$

8

 

 

$

13

 

 

$

21

 

2024

 

 

8

 

 

 

7

 

 

 

15

 

2025

 

 

8

 

 

 

1

 

 

 

9

 

2026

 

 

8

 

 

 

—

 

 

 

8

 

2027

 

 

8

 

 

 

—

 

 

 

8

 

Thereafter

 

 

272

 

 

 

—

 

 

 

272

 

Total lease payments

 

 

312

 

 

 

21

 

 

 

333

 

Less: interest

 

 

(55

)

 

 

—

 

 

 

(55

)

Present value of lease liabilities

 

$

257

 

 

$

21

 

 

$

278

 

 

Devon rents or subleases certain real estate to third parties. The following table presents Devon’s expected lease income as of December 31, 2022 for each of the next 5 years and thereafter.

 

 

 

Operating

 

 

 

Lease Income

 

2023

 

$

10

 

2024

 

 

10

 

2025

 

 

13

 

2026

 

 

13

 

2027

 

 

13

 

Thereafter

 

 

72

 

Total

 

$

131

 

 
v3.22.4
Asset Retirement Obligations
 12 Months Ended
Dec. 31, 2022
Asset Retirement Obligation Disclosure [Abstract]  
Asset Retirement Obligations
16.
Asset Retirement Obligations

The following table presents the changes in asset retirement obligations.

 

 

 

Year Ended December 31,

 

 

 

2022

 

 

2021

 

Asset retirement obligations as of beginning of period

 

$

485

 

 

$

369

 

Liabilities incurred and assumed through acquisitions

 

 

73

 

 

 

134

 

Liabilities settled and divested

 

 

(19

)

 

 

(57

)

Revision of estimated obligation

 

 

(35

)

 

 

11

 

Accretion expense on discounted obligation

 

 

25

 

 

 

28

 

Asset retirement obligations as of end of period

 

 

529

 

 

 

485

 

Less current portion

 

 

18

 

 

 

17

 

Asset retirement obligations, long-term

 

$

511

 

 

$

468

 

 

During 2022, Devon increased its asset retirement obligations by approximately $38 million due to asset acquisitions in the Eagle Ford and Williston Basin. During this same time period, Devon reduced its asset retirement obligations by $35 million primarily due to extended retirement dates for oil and gas assets, partially offset by inflation-driven increases to current settlement costs. During 2021, Devon assumed $98 million of WPX asset retirement obligations.

 
v3.22.4
Retirement Plans
 12 Months Ended
Dec. 31, 2022
Retirement Benefits [Abstract]  
Retirement Plans
17.
Retirement Plans

Defined Contribution Plans

Devon sponsors defined contribution plans covering its employees. Such plans include its 401(k) plan and enhanced contribution plan. Devon makes matching contributions and additional retirement contributions, with the matching contributions being primarily based upon percentages of annual compensation and years of service. In addition, each plan is subject to regulatory limitations by the U.S. government. Devon contributed $37 million, $33 million and $33 million to these plans in 2022, 2021 and 2020, respectively.

Defined Benefit Plans

Devon has various non-contributory defined benefit pension plans, including qualified plans and nonqualified plans covering eligible employees and former employees meeting certain age and service requirements. Benefits under the defined benefit plans have been closed to new employees and effective, as of December 31, 2020, Devon’s benefits committee approved a freeze of all future benefit accruals under the plans.

Benefits are primarily funded from assets held in the plans’ trusts.

Devon’s investment objective for its plans’ assets is to achieve stability of the funded status while providing long-term growth of invested capital and income to ensure benefit payments can be funded when required. Devon has established certain investment strategies, including target allocation percentages and permitted and prohibited investments, designed to mitigate risks inherent with investing. Devon’s target allocations for its plan assets are 90% fixed income and 10% equity. See the following discussion for Devon’s pension assets by asset class.

Fixed-income – Devon’s fixed-income securities consist of U.S. Treasury obligations, bonds issued by investment-grade companies from diverse industries and asset-backed securities. These fixed-income securities do

not consistently trade actively in an established market. The fair values of these Level 2 securities are estimated based upon rates available for securities with similar terms and maturity when active trading is not available and were $384 million and $590 million at December 31, 2022 and 2021, respectively.

Equity – Devon’s equity securities include commingled global equity funds that invest in large, mid and small capitalization stocks across the world’s developed and emerging markets and international large cap equity securities. These equity securities can be sold on demand but are not actively traded. The fair values of these securities are based upon the net asset values provided by the investment managers and were $49 million and $67 million at December 31, 2022 and 2021, respectively.

Other – Devon’s other securities include short-term investment funds that invest both long and short term using a variety of investment strategies. The fair value of these securities is based upon the net asset values provided by investment managers and were $25 million and $14 million at December 31, 2022 and 2021, respectively.

 

Defined Postretirement Plans

Devon also has defined benefit postretirement plans that provide benefits for substantially all qualifying retirees. Benefit obligations for such plans are estimated based on Devon’s future cost-sharing intentions. Devon’s funding policy for the plans is to fund the benefits as they become payable with available cash and cash equivalents.

Benefit Obligations and Funded Status

The following table summarizes the benefit obligations, assets, funded status and balance sheet impacts associated with Devon’s defined pension and postretirement plans. Devon’s benefit obligations and plan assets are

measured each year as of December 31. The accumulated benefit obligation for pension plans approximated the projected benefit obligation at December 31, 2022 and 2021.

 

 

 

Pension Benefits

 

 

Postretirement Benefits

 

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

Change in benefit obligation:

 

 

 

 

 

 

 

 

 

 

 

 

Benefit obligation at beginning of year

 

$

880

 

 

$

981

 

 

$

12

 

 

$

13

 

Service cost

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Interest cost

 

 

19

 

 

 

18

 

 

 

—

 

 

 

—

 

Actuarial gain

 

 

(215

)

 

 

(18

)

 

 

(4

)

 

 

(1

)

Plan amendments

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1

 

Plan curtailments

 

 

—

 

 

 

22

 

 

 

—

 

 

 

—

 

Plan settlements

 

 

—

 

 

 

(73

)

 

 

—

 

 

 

—

 

Participant contributions

 

 

—

 

 

 

—

 

 

 

1

 

 

 

2

 

Benefits paid

 

 

(55

)

 

 

(50

)

 

 

(2

)

 

 

(3

)

Benefit obligation at end of year

 

 

629

 

 

 

880

 

 

 

7

 

 

 

12

 

Change in plan assets:

 

 

 

 

 

 

 

 

 

 

 

 

Fair value of plan assets at beginning of year

 

 

671

 

 

 

745

 

 

 

—

 

 

 

—

 

Actual return on plan assets

 

 

(172

)

 

 

(11

)

 

 

—

 

 

 

—

 

Employer contributions

 

 

14

 

 

 

60

 

 

 

1

 

 

 

1

 

Participant contributions

 

 

—

 

 

 

—

 

 

 

1

 

 

 

2

 

Plan settlements

 

 

—

 

 

 

(73

)

 

 

—

 

 

 

—

 

Benefits paid

 

 

(55

)

 

 

(50

)

 

 

(2

)

 

 

(3

)

Fair value of plan assets at end of year

 

 

458

 

 

 

671

 

 

 

—

 

 

 

—

 

Funded status at end of year

 

$

(171

)

 

$

(209

)

 

$

(7

)

 

$

(12

)

Amounts recognized in balance sheet:

 

 

 

 

 

 

 

 

 

 

 

 

Other long-term assets

 

$

—

 

 

$

6

 

 

$

—

 

 

$

—

 

Other current liabilities

 

 

(14

)

 

 

(14

)

 

 

(1

)

 

 

(2

)

Other long-term liabilities

 

 

(157

)

 

 

(201

)

 

 

(6

)

 

 

(9

)

Net amount

 

$

(171

)

 

$

(209

)

 

$

(7

)

 

$

(11

)

Amounts recognized in accumulated other
   comprehensive earnings:

 

 

 

 

 

 

 

 

 

 

 

 

Net actuarial loss (gain)

 

$

189

 

 

$

206

 

 

$

(15

)

 

$

(12

)

Prior service cost

 

 

—

 

 

 

—

 

 

 

1

 

 

 

1

 

Total

 

$

189

 

 

$

206

 

 

$

(14

)

 

$

(11

)

 

During 2021, non-qualified plans experienced curtailments due to the Merger and both qualified and non-qualified plans experienced a partial plan settlement due to continued lump sum payments.

 

Certain of Devon’s pension plans have a combined projected benefit obligation or accumulated benefit obligation in excess of plan assets at December 31, 2022, and December 31, 2021, as presented in the table below.

 

 

 

December 31,

 

 

 

2022

 

 

2021

 

Projected and accumulated benefit obligation

 

$

629

 

 

$

215

 

Fair value of plan assets

 

$

458

 

 

$

—

 

 

The following table presents the components of net periodic benefit cost and other comprehensive earnings.

 

 

 

Pension Benefits

 

 

Postretirement Benefits

 

 

 

2022

 

 

2021

 

 

2020

 

 

2022

 

 

2021

 

 

2020

 

Net periodic benefit cost:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Service cost

 

$

—

 

 

$

—

 

 

$

5

 

 

$

—

 

 

$

—

 

 

$

—

 

Interest cost

 

 

19

 

 

 

18

 

 

 

25

 

 

 

—

 

 

 

—

 

 

 

—

 

Expected return on plan assets

 

 

(31

)

 

 

(34

)

 

 

(41

)

 

 

—

 

 

 

—

 

 

 

—

 

Recognition of net actuarial loss (gain) (1)

 

 

6

 

 

 

4

 

 

 

5

 

 

 

(1

)

 

 

(1

)

 

 

—

 

Recognition of prior service cost (1)

 

 

—

 

 

 

—

 

 

 

3

 

 

 

—

 

 

 

—

 

 

 

(1

)

Total net periodic benefit cost (2)

 

 

(6

)

 

 

(12

)

 

 

(3

)

 

 

(1

)

 

 

(1

)

 

 

(1

)

Other comprehensive loss (earnings):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Actuarial loss (gain) arising in current year

 

 

(11

)

 

 

28

 

 

 

27

 

 

 

(4

)

 

 

(1

)

 

 

(1

)

Prior service cost arising in current year

 

 

—

 

 

 

—

 

 

 

2

 

 

 

—

 

 

 

1

 

 

 

—

 

Recognition of net actuarial gain (loss), including
   settlement expense, in net periodic benefit cost (3)

 

 

(6

)

 

 

(23

)

 

 

(9

)

 

 

1

 

 

 

1

 

 

 

1

 

Recognition of prior service cost, including
   curtailment, in net periodic benefit cost (3)

 

 

—

 

 

 

—

 

 

 

(7

)

 

 

—

 

 

 

—

 

 

 

1

 

Total other comprehensive loss (earnings)

 

 

(17

)

 

 

5

 

 

 

13

 

 

 

(3

)

 

 

1

 

 

 

1

 

Total

 

$

(23

)

 

$

(7

)

 

$

10

 

 

$

(4

)

 

$

—

 

 

$

—

 

 

(1)
These net periodic benefit costs were reclassified out of other comprehensive earnings in the current period.
(2)
The service cost component of net periodic benefit cost is included in G&A expense and the remaining components of net periodic benefit costs are included in other, net in the accompanying consolidated statements of comprehensive earnings.
(3)
These amounts include restructuring costs that were reclassified out of other comprehensive earnings in 2021 and 2020. See Note 6 for further discussion.

 

Assumptions

 

 

 

Pension Benefits

 

Postretirement Benefits

 

 

2022

 

2021

 

2020

 

2022

 

2021

 

2020

Assumptions to determine benefit obligations:

 

 

 

 

 

 

 

 

 

 

 

 

Discount rate

 

5.78%

 

2.71%

 

2.38%

 

5.71%

 

2.34%

 

1.82%

Rate of compensation increase

 

N/A

 

N/A

 

2.50%

 

N/A

 

N/A

 

N/A

Assumptions to determine net periodic benefit cost:

 

 

 

 

 

 

 

 

 

 

 

 

Discount rate - service cost

 

N/A

 

N/A

 

3.47%

 

2.83%

 

2.51%

 

3.25%

Discount rate - interest cost

 

2.18%

 

2.11%

 

2.75%

 

1.57%

 

1.01%

 

2.31%

Rate of compensation increase

 

N/A

 

N/A

 

2.50%

 

N/A

 

N/A

 

N/A

Expected return on plan assets

 

4.80%

 

5.00%

 

6.00%

 

N/A

 

N/A

 

N/A

 

Discount rate – Future pension and post-retirement obligations are discounted based on the rate at which obligations could be effectively settled, considering the timing of expected future cash flows related to the plans. This rate is based on high-quality bond yields, after allowing for call and default risk.

Expected return on plan assets – This was determined by evaluating input from external consultants and economists, as well as long-term inflation assumptions and consideration of target allocation of investment types.

Mortality rate – Devon utilized the Society of Actuaries produced mortality tables.

Other assumptions – For measurement of the 2022 benefit obligation for the other postretirement medical plans, a 6.6% annual rate of increase in the per capita cost of covered health care benefits was assumed for 2023. The rate was assumed to decrease annually to an ultimate rate of 5% in the year 2029 and remain at that level thereafter.

Expected Cash Flows

Devon expects benefit plan payments to average approximately $53 million a year for the next five years and $249 million total for the five years thereafter. Of these payments to be paid in 2023, $15 million is expected to be funded from Devon’s available cash, cash equivalents and other assets.

v3.22.4
Stockholders' Equity
 12 Months Ended
Dec. 31, 2022
Stockholders' Equity Note [Abstract]  
Stockholders' Equity
18.
Stockholders’ Equity

The authorized capital stock of Devon consists of 1.0 billion shares of common stock, par value $0.10 per share, and 4.5 million shares of preferred stock, par value $1.00 per share. The preferred stock may be issued in one or more series, and the terms and rights of such stock will be determined by the Board of Directors.

Share Repurchase Program

 

In December 2019, Devon announced a share repurchase program of $1.0 billion with a December 31, 2020 expiration date. In November 2021, Devon announced a new share repurchase program of $1.0 billion with a December 31, 2022 expiration date. In February 2022, the Board of Directors authorized an expansion of the share repurchase program to $1.6 billion, and in May 2022, authorized a further expansion to $2.0 billion and extended the expiration date to May 4, 2023.

 

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

 

 

 

Total Number of
Shares Purchased

 

 

Dollar Value of
Shares Purchased

 

 

Average Price Paid
per Share

 

$1.0 Billion Plan (Closed)

 

 

 

 

 

 

 

 

 

2020

 

 

2,243

 

 

$

38

 

 

$

16.85

 

Total

 

 

2,243

 

 

$

38

 

 

$

16.85

 

 

 

 

 

 

 

 

 

 

 

$2.0 Billion Plan

 

 

 

 

 

 

 

 

 

2021

 

 

13,983

 

 

$

589

 

 

$

42.15

 

2022

 

 

11,708

 

 

 

718

 

 

 

61.36

 

Total plan

 

 

25,691

 

 

$

1,307

 

 

$

50.90

 

 

 

Dividends

Devon is committed to paying a quarterly dividend at a fixed rate and a variable quarterly dividend, which is dependent on quarterly cash flows, among other factors. The following table summarizes the dividends Devon has paid on its common stock in 2022, 2021 and 2020, respectively.

 

 

Fixed

 

 

Variable

 

 

Total

 

 

Rate Per Share

 

2022:

 

 

 

 

 

 

 

 

 

 

 

First quarter

$

109

 

 

$

558

 

 

$

667

 

 

$

1.00

 

Second quarter

 

105

 

 

 

725

 

 

 

830

 

 

$

1.27

 

Third quarter

 

117

 

 

 

890

 

 

 

1,007

 

 

$

1.55

 

Fourth quarter

 

117

 

 

 

758

 

 

 

875

 

 

$

1.35

 

Total year-to-date

$

448

 

 

$

2,931

 

 

$

3,379

 

 

 

 

2021:

 

 

 

 

 

 

 

 

 

 

 

First quarter

$

76

 

 

$

127

 

 

$

203

 

 

$

0.30

 

Second quarter

 

75

 

 

 

154

 

 

 

229

 

 

$

0.34

 

Third quarter

 

74

 

 

 

255

 

 

 

329

 

 

$

0.49

 

Fourth quarter

 

73

 

 

 

481

 

 

 

554

 

 

$

0.84

 

Total year-to-date

$

298

 

 

$

1,017

 

 

$

1,315

 

 

 

 

2020:

 

 

 

 

 

 

 

 

 

 

 

First quarter

$

34

 

 

$

—

 

 

$

34

 

 

$

0.09

 

Second quarter

 

42

 

 

 

—

 

 

 

42

 

 

$

0.11

 

Third quarter

 

43

 

 

 

—

 

 

 

43

 

 

$

0.11

 

Fourth quarter

 

41

 

 

 

97

 

 

 

138

 

 

$

0.37

 

Total year-to-date

$

160

 

 

$

97

 

 

$

257

 

 

 

 

In February 2023, Devon raised its fixed quarterly dividend by 11%, to $0.20 per share and announced a cash dividend in the amount of $0.89 per share payable in the first quarter of 2023. The dividend consists of a fixed quarterly dividend in the amount of approximately $130 million (or $0.20 per share) and a variable quarterly dividend in the amount of approximately $449 million (or $0.69 per share).

Devon raised its fixed quarterly dividend by 45%, to $0.16 per share, beginning in the first quarter of 2022, and again by 13%, to $0.18 per share, beginning in the third quarter of 2022. Devon also increased its fixed quarterly dividend rate in the second quarter of 2020 from $0.09 to $0.11.

In the fourth quarter of 2020, Devon paid a $97 million (or $0.26 per share) special dividend.

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.
v3.22.4
Discontinued Operations
 12 Months Ended
Dec. 31, 2022
Discontinued Operations and Disposal Groups [Abstract]  
Discontinued Operations
19.
Discontinued Operations

 

On December 17, 2019, Devon announced that it had entered into an agreement to sell its Barnett Shale assets to BKV. Devon concluded that the transaction was a strategic shift and classified the results of operations and cash flows related to its Barnett Shale assets as discontinued operations on its consolidated financial statements.

 

In conjunction with the amended divestiture agreement in April 2020, Devon recognized a $182 million asset impairment related to the Barnett Shale assets in 2020, primarily due to the difference between the net carrying value and the purchase price, net of estimated customary purchase price adjustments, which qualifies as a level 2 fair value measurement.

 

On October 1, 2020, Devon completed the sale of its Barnett Shale assets to BKV for proceeds, net of purchase price adjustments, of $490 million. Additionally, the agreement provides for contingent earnout payments to Devon of up to $260 million based upon future commodity prices, with upside participation beginning at a $2.75 Henry Hub natural gas price or a $50 WTI oil price. The contingent payment period commenced on January 1, 2021 and has a term of four years. Devon received $65 million in contingent earnout payments related to this transaction in the first quarters of 2023 and 2022 and could receive up to an additional $130 million in contingent earnout payments for the remaining performance periods depending on future commodity prices. The valuation of the future contingent earnout payments included within other current assets and other long-term assets in the December 31, 2022 balance sheet was $65 million and $88 million, respectively. During 2022 and 2021, Devon recorded a $42 million and a $110 million increase, respectively, to the fair value within asset dispositions on the consolidated statements of comprehensive earnings related to these payments. These values were derived utilizing a Monte Carlo valuation model and qualify as a level 3 fair value measurement.

 

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

 

Year ended December 31, 2020

 

Total

 

 

 

 

 

Oil, gas and NGL sales

 

$

263

 

Total revenues

 

 

263

 

Production expenses

 

 

214

 

Asset impairments

 

 

182

 

Asset dispositions

 

 

1

 

General and administrative expenses

 

 

3

 

Financing costs, net

 

 

(3

)

Restructuring and transaction costs

 

 

9

 

Other expenses

 

 

9

 

Total expenses

 

 

415

 

Loss from discontinued operations before income taxes

 

 

(152

)

Income tax benefit

 

 

(24

)

Loss from discontinued operations, net of tax

 

$

(128

)
v3.22.4
Commitments And Contingencies
 12 Months Ended
Dec. 31, 2022
Commitments and Contingencies Disclosure [Abstract]  
Commitments And Contingencies
20.
Commitments and Contingencies

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

Royalty Matters

Numerous oil and natural gas producers and related parties, including Devon, have been named in various lawsuits alleging royalty underpayments. Devon is currently named as a defendant in a number of such lawsuits, including some lawsuits in which the plaintiffs seek to certify classes of similarly situated plaintiffs. Among the

allegations typically asserted in these suits are claims that Devon used below-market prices, made improper deductions, paid royalty proceeds in an untimely manner without including required interest, used improper measurement techniques and entered into gas purchase and processing arrangements with affiliates that resulted in underpayment of royalties in connection with oil, natural gas and NGLs produced and sold. Devon is also involved in governmental agency proceedings and royalty audits and is subject to related contracts and regulatory controls in the ordinary course of business, some that may lead to additional royalty claims.

Environmental and Climate Change Matters

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

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

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

 

Other Indemnifications and Legacy Matters

 

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

 

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

Commitments

The following table presents Devon’s commitments that have initial or remaining noncancelable terms in excess of one year as of December 31, 2022.

 

Year Ending December 31,

 

Drilling and Facility Obligations

 

 

Operational Agreements

 

 

Office and Equipment Leases and Other

 

2023

 

$

273

 

 

$

470

 

 

$

118

 

2024

 

 

42

 

 

 

491

 

 

 

62

 

2025

 

 

21

 

 

 

464

 

 

 

47

 

2026

 

 

12

 

 

 

423

 

 

 

23

 

2027

 

 

19

 

 

 

294

 

 

 

24

 

Thereafter

 

 

15

 

 

 

1,072

 

 

 

341

 

Total

 

$

382

 

 

$

3,214

 

 

$

615

 

Devon has certain drilling and facility obligations under contractual agreements with third-party service providers to procure drilling rigs and other related services for developmental and exploratory drilling and facilities construction. The value of the drilling obligations reported is based on gross contractual value.

Devon has certain operational agreements whereby Devon has committed to transport or process certain volumes of oil, gas and NGLs for a fixed fee. Devon has entered into these agreements to aid the movement of its production to downstream markets.

Devon leases certain office space and equipment under financing and operating lease arrangements.
v3.22.4
Fair Value Measurements
 12 Months Ended
Dec. 31, 2022
Fair Value Disclosures [Abstract]  
Fair Value Measurements
21.
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, restricted 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 December 31, 2022 and December 31, 2021, 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

 

December 31, 2022 assets (liabilities):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash equivalents

 

$

708

 

 

$

708

 

 

$

708

 

 

$

—

 

 

$

—

 

Commodity derivatives

 

$

131

 

 

$

131

 

 

$

—

 

 

$

131

 

 

$

—

 

Commodity derivatives

 

$

(3

)

 

$

(3

)

 

$

—

 

 

$

(3

)

 

$

—

 

Debt

 

$

(6,440

)

 

$

(6,231

)

 

$

—

 

 

$

(6,231

)

 

$

—

 

Contingent earnout payments

 

$

157

 

 

$

157

 

 

$

—

 

 

$

—

 

 

$

157

 

December 31, 2021 assets (liabilities):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash equivalents

 

$

1,421

 

 

$

1,421

 

 

$

1,421

 

 

$

—

 

 

$

—

 

Commodity derivatives

 

$

8

 

 

$

8

 

 

$

—

 

 

$

8

 

 

$

—

 

Commodity derivatives

 

$

(577

)

 

$

(577

)

 

$

—

 

 

$

(577

)

 

$

—

 

Debt

 

$

(6,482

)

 

$

(7,644

)

 

$

—

 

 

$

(7,644

)

 

$

—

 

Contingent earnout payments

 

$

184

 

 

$

184

 

 

$

—

 

 

$

—

 

 

$

184

 

 

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

 

Level 1 Fair Value Measurements

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

Level 2 Fair Value Measurements

 

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

 

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

Level 3 Fair Value Measurements

Contingent Earnout Payments – Devon has the right to receive contingent consideration related to the Barnett and non-core Rockies 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.
v3.22.4
Supplemental Information on Oil and Gas Operations (Unaudited)
 12 Months Ended
Dec. 31, 2022
Oil and Gas Exploration and Production Industries Disclosures [Abstract]  
Supplemental Information on Oil and Gas Operations (Unaudited)
22.
Supplemental Information on Oil and Gas Operations (Unaudited)

 

Supplemental unaudited information regarding Devon’s oil and gas activities is presented in this note. All of Devon’s reserves are located within the U.S.

 

The supplemental information in the tables below excludes amounts for 2020 related to Devon’s discontinued operations. For additional information on these discontinued operations, see Note 19.

Costs Incurred

The following tables reflect the costs incurred in oil and gas property acquisition, exploration and development activities.

 

 

 

Year Ended December 31,

 

 

 

2022

 

 

2021

 

 

2020

 

Property acquisition costs:

 

 

 

 

 

 

 

 

 

Proved properties

 

$

1,760

 

 

$

7,017

 

 

$

—

 

Unproved properties

 

 

803

 

 

 

2,381

 

 

 

8

 

Exploration costs

 

 

472

 

 

 

212

 

 

 

159

 

Development costs

 

 

2,132

 

 

 

1,643

 

 

 

820

 

Costs incurred

 

$

5,167

 

 

$

11,253

 

 

$

987

 

 

Acquisition costs for 2022 in the table above pertain primarily to the Eagle Ford and Willison Basin acquisitions which closed in the third quarter of 2022. Acquisition costs for 2021 primarily relate to the Merger. Development costs in the tables above include additions and revisions to Devon’s asset retirement obligations.

Results of Operations

The following table includes revenues and expenses associated with Devon’s oil and gas producing activities. It does not include any allocation of Devon’s interest costs or general corporate overhead and, therefore, are not necessarily indicative of the contribution to net earnings of Devon’s oil and gas operations. Income tax expense has been calculated by applying statutory income tax rates to oil, gas and NGL sales after deducting costs, including DD&A, and after giving effect to permanent differences.

 

 

 

Year Ended December 31,

 

 

2022

 

 

2021

 

 

2020

 

 

Oil, gas and NGL sales

 

$

14,082

 

 

$

9,531

 

 

$

2,695

 

 

Production expenses

 

 

(2,797

)

 

 

(2,131

)

 

 

(1,123

)

 

Exploration expenses

 

 

(29

)

 

 

(14

)

 

 

(167

)

 

Depreciation, depletion and amortization

 

 

(2,119

)

 

 

(2,050

)

 

 

(1,207

)

 

Asset dispositions

 

 

43

 

 

 

170

 

 

 

—

 

 

Asset impairments

 

 

—

 

 

 

—

 

 

 

(2,664

)

 

Accretion of asset retirement obligations

 

 

(25

)

 

 

(28

)

 

 

(20

)

 

Income tax expense

 

 

(2,041

)

 

 

(1,238

)

 

 

—

 

 

Results of operations

 

$

7,114

 

 

$

4,240

 

 

$

(2,486

)

 

Depreciation, depletion and amortization per Boe

 

$

9.52

 

 

$

9.83

 

 

$

9.90

 

 

 

Proved Reserves

The following table presents Devon’s estimated proved reserves by product.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Oil (MMBbls)

 

 

Gas (Bcf) (1)

 

 

NGL (MMBbls)

 

 

Combined (MMBoe)

 

Proved developed and undeveloped reserves:

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2019

 

 

276

 

 

 

1,621

 

 

 

211

 

 

 

757

 

Revisions due to prices

 

 

(26

)

 

 

(209

)

 

 

(17

)

 

 

(78

)

Revisions other than price

 

 

18

 

 

 

119

 

 

 

17

 

 

 

55

 

Extensions and discoveries

 

 

71

 

 

 

188

 

 

 

33

 

 

 

135

 

Purchase of reserves

 

 

1

 

 

 

19

 

 

 

3

 

 

 

7

 

Production

 

 

(57

)

 

 

(221

)

 

 

(28

)

 

 

(122

)

Sale of reserves

 

 

(1

)

 

 

(5

)

 

 

(1

)

 

 

(2

)

December 31, 2020

 

 

282

 

 

 

1,512

 

 

 

218

 

 

 

752

 

Revisions due to prices

 

 

55

 

 

 

382

 

 

 

36

 

 

 

155

 

Revisions other than price

 

 

(23

)

 

 

11

 

 

 

64

 

 

 

43

 

Extensions and discoveries

 

 

112

 

 

 

348

 

 

 

58

 

 

 

228

 

Purchase of reserves

 

 

393

 

 

 

961

 

 

 

110

 

 

 

663

 

Production

 

 

(106

)

 

 

(325

)

 

 

(48

)

 

 

(209

)

Sale of reserves

 

 

(4

)

 

 

(11

)

 

 

(1

)

 

 

(7

)

December 31, 2021

 

 

709

 

 

 

2,878

 

 

 

437

 

 

 

1,625

 

Revisions due to prices

 

 

15

 

 

 

61

 

 

 

8

 

 

 

34

 

Revisions other than price

 

 

(55

)

 

 

13

 

 

 

3

 

 

 

(49

)

Extensions and discoveries

 

 

127

 

 

 

449

 

 

 

76

 

 

 

278

 

Purchase of reserves

 

 

106

 

 

 

137

 

 

 

24

 

 

 

153

 

Production

 

 

(109

)

 

 

(356

)

 

 

(54

)

 

 

(223

)

Sale of reserves

 

 

—

 

 

 

(7

)

 

 

(1

)

 

 

(3

)

December 31, 2022

 

 

793

 

 

 

3,175

 

 

 

493

 

 

 

1,815

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Proved developed reserves:

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2019

 

 

198

 

 

 

1,344

 

 

 

167

 

 

 

589

 

December 31, 2020

 

 

194

 

 

 

1,244

 

 

 

173

 

 

 

574

 

December 31, 2021

 

 

544

 

 

 

2,361

 

 

 

348

 

 

 

1,285

 

December 31, 2022

 

 

596

 

 

 

2,595

 

 

 

391

 

 

 

1,419

 

Proved developed-producing reserves:

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2019

 

 

191

 

 

 

1,327

 

 

 

165

 

 

 

578

 

December 31, 2020

 

 

190

 

 

 

1,223

 

 

 

171

 

 

 

564

 

December 31, 2021

 

 

533

 

 

 

2,316

 

 

 

341

 

 

 

1,260

 

December 31, 2022

 

 

585

 

 

 

2,553

 

 

 

387

 

 

 

1,397

 

Proved undeveloped reserves:

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2019

 

 

78

 

 

 

277

 

 

 

44

 

 

 

168

 

December 31, 2020

 

 

88

 

 

 

268

 

 

 

45

 

 

 

178

 

December 31, 2021

 

 

165

 

 

 

517

 

 

 

89

 

 

 

340

 

December 31, 2022

 

 

197

 

 

 

580

 

 

 

102

 

 

 

396

 

 

(1)
Gas reserves are converted to Boe at the rate of six Mcf per Bbl of oil, based upon the approximate relative energy content of gas and oil. NGL reserves are converted to Boe on a one-to-one basis with oil. The conversion rates are not necessarily indicative of the relationship of oil, natural gas and NGL prices.

Price Revisions

Reserves increased 34 MMBoe in 2022 primarily due to price increases in the trailing 12 month averages for oil, gas and NGLs.

Reserves increased 155 MMBoe in 2021 primarily due to price increases in the trailing 12 month averages for oil, gas and NGLs.

Reserves decreased 78 MMBoe in 2020 primarily due to price decreases in the trailing 12 month averages for oil, gas and NGLs.

Revisions Other Than Price

2022 – Total revisions other than price (-49 MMBoe) were driven by higher operating costs across all areas of operation and the revisions to proved undeveloped reserves noted below. These downward revisions were partially offset by upward revisions due to well performance exceeding previous estimates primarily in the Delaware Basin. In total, after accounting for these compensating factors, we recorded negative revisions across each of our operating areas with the most significant changes being located in the Delaware Basin (-33 MMBoe), followed by the Powder River Basin (-5 MMBoe) and the Anadarko Basin (-4 MMBoe).

2021 – Total revisions other than price (43 MMBoe) were primarily due to well performance exceeding previous estimates modestly across all areas of operation (53 MMBoe) and the removal of proved undeveloped locations as noted below (-10 MMBoe). The upward revisions were driven by the Delaware Basin (23 MMBoe), Williston Basin (12 MMBoe) and Anadarko Basin (12 MMBoe).

2020 – Total revisions other than price (55 MMBoe) were primarily due to well performance exceeding previous estimates (75 MMBoe) and the removal of proved undeveloped locations as noted below (-20 MMBoe). The most significant well performance revisions were attributable to the Delaware Basin (40 MMBoe) and the Anadarko Basin (22 MMBoe).

Extensions and Discoveries

Each year, Devon’s proved reserves extensions and discoveries consist of adding proved undeveloped reserves to locations classified as undeveloped at year-end and adding proved developed reserves from successful development wells drilled on locations outside the areas classified as proved at the previous year-end. Therefore, it is not uncommon for Devon’s total proved extensions and discoveries to differ from the extensions and discoveries for Devon’s proved undeveloped reserves. Furthermore, because annual additions are classified according to reserve determinations made at the previous year-end and because Devon operates a multi-basin portfolio with assets at varying stages of maturity, extensions and discoveries for proved developed and proved undeveloped reserves can differ significantly in any particular year.

2022 – Of the 278 MMBoe of additions from extensions and discoveries, 255 MMBoe were in the Delaware Basin, 7 MMBoe were in the Powder River Basin, 6 MMBoe were in Eagle Ford, 5 MMBoe were in the Anadarko Basin and 5 MMBoe were in the Williston Basin.

2021 – Of the 228 MMBoe of additions from extensions and discoveries, 209 MMBoe were in the Delaware Basin, 8 MMBoe were in the Anadarko Basin, 6 MMBoe were in the Williston Basin, 3 MMBoe were in Eagle Ford and 2 MMBoe were in the Powder River Basin.

2020 – Of the 135 MMBoe of additions from extensions and discoveries, 117 MMBoe were in the Delaware Basin, 8 MMBoe were in the Anadarko Basin, 5 MMBoe were in the Powder River Basin and 5 MMBoe were in Eagle Ford.

Purchase of Reserves

During 2022, Devon had reserve additions due to the acquisitions of 66 MMBoe in the Williston Basin and 87 MMBoe in the Eagle Ford. For additional information on these asset additions, see Note 2.

During 2021, Devon had reserve additions due to the Merger of 538 MMBoe in the Delaware Basin and 125 MMBoe in the Williston Basin. For additional information on these asset additions, see Note 2.

 

Sale of Reserves

During 2022, 2021 and 2020, Devon had U.S. non-core asset divestitures. For additional information on these divestitures, see Note 2.

Proved Undeveloped Reserves

The following table presents the changes in Devon’s total proved undeveloped reserves during 2022 (MMBoe).

 

 

 

Total

 

Proved undeveloped reserves as of December 31, 2021

 

 

340

 

Extensions and discoveries

 

 

176

 

Revisions due to prices

 

 

2

 

Revisions other than price

 

 

(39

)

Purchase of reserves

 

 

44

 

Sale of reserves

 

 

—

 

Conversion to proved developed reserves

 

 

(127

)

Proved undeveloped reserves as of December 31, 2022

 

 

396

 

Total proved undeveloped reserves increased 16% from 2021 to 2022 with the year-end 2022 balance representing 22% of total proved reserves. Approximately 97% of the 176 MMBoe in extensions and discoveries were the result of Devon’s focus on drilling and development activities in the Delaware Basin. This continued development in the Delaware Basin also accounted for more than 80% of the 127 MMBoe of proved undeveloped reserves being converted to proved developed reserves in 2022. Costs incurred in 2022 to develop and convert Devon’s proved undeveloped reserves were approximately $866 million. Of the 44 MMBoe of purchased reserves, 51% relate to the Williston Basin and 49% to the Eagle Ford. Proved undeveloped reserves revisions other than price (-39 MMBoe) were due to changes in previously adopted development plans (-22 MMBoe) in the Delaware Basin (-9 MMBoe), Anadarko Basin (-7 MMBoe) and Powder River Basin (-6 MMBoe), combined with additional downward revisions (-17 MMBoe) caused by both continued evaluation of well performance and higher operating costs.

Standardized Measure

The following tables reflect Devon’s standardized measure of discounted future net cash flows from its proved reserves.

 

 

 

Year Ended December 31,

 

 

 

2022

 

 

2021

 

 

2020

 

Future cash inflows

 

$

108,361

 

 

$

66,321

 

 

$

14,957

 

Future costs:

 

 

 

 

 

 

 

 

 

Development

 

 

(5,176

)

 

 

(3,689

)

 

 

(1,747

)

Production

 

 

(35,264

)

 

 

(22,975

)

 

 

(7,964

)

Future income tax expense

 

 

(13,216

)

 

 

(6,423

)

 

 

—

 

Future net cash flow

 

 

54,705

 

 

 

33,234

 

 

 

5,246

 

10% discount to reflect timing of cash flows

 

 

(23,391

)

 

 

(13,933

)

 

 

(1,774

)

Standardized measure of discounted future net cash flows

 

$

31,314

 

 

$

19,301

 

 

$

3,472

 

 

Future cash inflows, development costs and production costs were computed using the same assumptions for prices and costs that were used to estimate Devon’s proved oil and gas reserves at the end of each year. For 2022 estimates, Devon’s future realized prices were assumed to be $93.53 per Bbl of oil, $5.41 per Mcf of gas and $34.58

per Bbl of NGLs. Of the $5.2 billion of future development costs as of the end of 2022, $1.7 billion, $1.2 billion and $0.7 billion are estimated to be spent in 2023, 2024 and 2025, respectively.

Future development costs include not only development costs but also future asset retirement costs. Included as part of the $5.2 billion of future development costs are $0.8 billion of future asset retirement costs. The future income tax expenses have been computed using statutory tax rates, giving effect to allowable tax deductions and tax credits under current laws.

 

The principal changes in Devon’s standardized measure of discounted future net cash flows are as follows:

 

 

 

Year Ended December 31,

 

 

 

2022

 

 

2021

 

 

2020

 

Beginning balance

 

$

19,301

 

 

$

3,472

 

 

$

5,398

 

Net changes in prices and production costs

 

 

14,081

 

 

 

8,274

 

 

 

(3,277

)

Oil, gas and NGL sales, net of production costs

 

 

(11,285

)

 

 

(7,400

)

 

 

(1,572

)

Changes in estimated future development costs

 

 

(216

)

 

 

(414

)

 

 

402

 

Extensions and discoveries, net of future development costs

 

 

7,279

 

 

 

3,877

 

 

 

988

 

Purchase of reserves

 

 

4,185

 

 

 

12,460

 

 

 

23

 

Sales of reserves in place

 

 

(20

)

 

 

(12

)

 

 

(7

)

Revisions of quantity estimates

 

 

(874

)

 

 

838

 

 

 

147

 

Previously estimated development costs incurred during the period

 

 

956

 

 

 

663

 

 

 

537

 

Accretion of discount

 

 

2,059

 

 

 

1,218

 

 

 

285

 

Net change in income taxes and other

 

 

(4,152

)

 

 

(3,675

)

 

 

548

 

Ending balance

 

$

31,314

 

 

$

19,301

 

 

$

3,472

 
v3.22.4
Summary Of Significant Accounting Policies (Policies)
 12 Months Ended
Dec. 31, 2022
Accounting Policies [Abstract]  
Principles Of Consolidation

Principles of Consolidation

The accompanying consolidated financial statements include the accounts of Devon, entities in which it holds a controlling interest and VIEs for which Devon is the primary beneficiary. All intercompany transactions have been eliminated. Undivided interests in oil and natural gas exploration and production joint ventures are consolidated on a proportionate basis. Investments in non-controlled entities, over which Devon has the ability to exercise significant influence over operating and financial policies, are accounted for using the equity method. In applying the equity method of accounting, the investments are initially recognized at cost and subsequently adjusted for Devon’s proportionate share of earnings, losses, contributions and distributions. Investments in non-controlled entities over which Devon does not have the ability to exercise significant influence are initially recognized at cost and subsequently adjusted for contributions and distributions.

Variable Interest Entity

Devon and an affiliate of QL Capital Partners, LP (“QLCP”) formed CDM, a joint venture in 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.

Devon, through its controlling interest in CDM, has the power to direct the activities that significantly affect the economic performance of CDM and the obligation to absorb losses or the right to receive benefits that could be significant to CDM; therefore, Devon is considered the primary beneficiary and consolidates CDM. CDM maintains its own capital structure that is separate from Devon. During 2022, 2021 and 2020, QLCP distributions from CDM were approximately $30 million, $20 million and $14 million, respectively. During 2021 and 2020, QLCP contributions to CDM were approximately $3 million and $21 million, respectively.

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

In conjunction with the Merger, Devon acquired an interest in Catalyst, which is a joint venture established among WPX, 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. The agreements do not include any minimum volume commitments. Devon accounts for the investment in Catalyst as an equity method investment. Devon's share of the earnings are reflected as a component of other, net in the accompanying consolidated statements of comprehensive earnings.

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

Devon has other investments largely focused on midstream, new technologies and energy transition initiatives. Devon does not have the ability to exercise significant influence over these investments. The following table presents Devon's investments that are shown on the consolidated balance sheet.

 

 

 

 

 

Carrying Amount

 

Investments

 

% Interest

 

December 31, 2022

 

 

December 31, 2021

 

Catalyst

 

50%

 

$

339

 

 

$

368

 

Matterhorn

 

12.5%

 

 

54

 

 

 

—

 

Other

 

Various

 

 

47

 

 

 

34

 

Total

 

 

 

$

440

 

 

$

402

 

 

As of December 31, 2022, Devon’s $339 million investment in Catalyst exceeded the underlying equity in net assets by approximately $120 million. The basis difference results primarily from intangible assets associated with Devon’s acreage dedication and is amortized over the remaining 15-year term of the associated oil gathering and natural gas processing agreements.

 

After the closing of the Merger, Catalyst has provided certain gathering, processing and marketing services to Devon in the ordinary course of business. The impact from these services on Devon’s consolidated statement of comprehensive earnings and consolidated balance sheet for the years ended and as of December 31, 2022 and 2021, respectively, are summarized below.

 

 

 

Year ended December 31,

 

 

 

2022

 

 

2021

 

Oil, gas and NGL sales

 

$

405

 

 

$

264

 

Production expenses

 

$

55

 

 

$

42

 

Accounts receivable

 

$

14

 

 

$

22

 
Segment Information

Segment Information

 

Devon’s oil and gas exploration and production activities are solely focused in the U.S. For financial reporting purposes, Devon aggregates its U.S. operating segments into one reporting segment due to the similar nature of these operations.
Use Of Estimates

Use of Estimates

The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual amounts

could differ from these estimates, and changes in these estimates are recorded when known. Significant items subject to such estimates and assumptions include the following:

•
proved reserves and related present value of future net revenues;
•
evaluation of suspended well costs;
•
the carrying and fair values of oil and gas properties, other property and equipment and product and equipment inventories;
•
derivative financial instruments;
•
the fair value of reporting units and related assessment of goodwill for impairment;
•
income taxes;
•
asset retirement obligations;
•
obligations related to employee pension and postretirement benefits;
•
purchase accounting estimates used for assets acquired and liabilities assumed;
•
legal and environmental risks and exposures;
•
the fair value of contingent earnout payments, and
•
general credit risk associated with receivables and other assets.
Revenue Recognition

Revenue Recognition

Upstream Revenues

Upstream revenues include the sale of oil, gas and NGL production. Oil, gas and NGL sales are recognized when production is sold to a purchaser at a fixed or determinable price, delivery has occurred, control has transferred and collectability of the revenue is probable. Devon’s performance obligations are satisfied at a point in time. This occurs when control is transferred to the purchaser upon delivery of contract specified production volumes at a specified point. The transaction price used to recognize revenue is a function of the contract billing terms. Revenue is invoiced, if required, by calendar month based on volumes at contractually based rates with payment typically received within 30 days of the end of the production month. Taxes assessed by governmental authorities on oil, gas and NGL sales are presented separately from such revenues in the accompanying consolidated statements of comprehensive earnings.

Devon acts as a principal in sales transactions when control of the product is retained prior to delivery to the ultimate third-party customer or acts as an agent when services are rendered on behalf of the principal in the transactions. A control-based assessment is performed to identify whether Devon is a principal or an agent in the transaction, which determines whether revenue and the related expenses are presented on a gross or net basis, respectively.

Oil sales

Devon’s oil sales contracts are generally structured in one of two ways. First, production is sold at the wellhead at an agreed-upon index price, net of pricing differentials. In this scenario, revenue is recognized when control transfers to the purchaser at the wellhead at the net price received. Alternatively, production is delivered to the purchaser at a contractually agreed-upon delivery point where the purchaser takes custody, title and risk of loss of the product. Under this arrangement, a third party is paid to transport the product and Devon receives a specified index price from the purchaser with no transportation deduction. In this scenario, revenue is recognized when

control transfers to the purchaser at the delivery point based on the price received from the purchaser. The third-party costs are recorded as gathering, processing and transportation expense as a component of production expenses in the consolidated statements of comprehensive earnings.

Natural gas and NGL sales

Under Devon’s natural gas processing contracts, natural gas is delivered to a midstream processing entity at the wellhead or the inlet of the midstream processing entity’s system. The midstream processing entity gathers and processes the natural gas and remits proceeds for the resulting sales of NGLs and residue gas. In these scenarios, Devon evaluates whether it is the principal or the agent in the transaction. Devon has concluded it is the principal under these contracts and the ultimate third party is the customer. Revenue is recognized on a gross basis, with gathering, processing and transportation fees presented as a component of production expenses in the consolidated statements of comprehensive earnings.

In certain natural gas processing agreements, Devon may elect to take residue gas and/or NGLs in-kind at the tailgate of the midstream entity’s processing plant and subsequently market the product. Through the marketing process, the product is delivered to the ultimate third-party purchaser at a contractually agreed-upon delivery point, and Devon receives a specified index price from the purchaser. In this scenario, revenue is recognized when control transfers to the purchaser at the delivery point based on the index price received from the purchaser. The gathering, processing and compression fees attributable to the gas processing contract, as well as any transportation fees incurred to deliver the product to the purchaser, are presented as gathering, processing and transportation expense as a component of production expenses in the consolidated statements of comprehensive earnings.

Marketing Revenues

Marketing revenues are generated primarily as a result of Devon selling commodities purchased from third parties. Marketing revenues are recognized when performance obligations are satisfied. This occurs at the time contract-specified products are sold to third parties at a contractually fixed or determinable price, delivery occurs at a specified point or performance has occurred, control has transferred and collectability of the revenue is probable. The transaction price used to recognize revenue and invoice customers is based on a contractually stated fee or on a third party published index price plus or minus a known differential. Devon typically receives payment for invoiced amounts within 30 days. Marketing revenues and expenses attributable to oil, gas and NGL purchases are reported on a gross basis when Devon takes control of the products and has risks and rewards of ownership.

Midstream Revenues

 

Devon’s reported midstream revenue primarily relates to its interest in CDM. CDM provides gathering, compression and dehydration services to Devon and other producers’ natural gas production. An evaluation is performed to determine whether CDM is a principal or agent in these transactions. Under the terms of these gathering, compression and dehydration contracts, CDM has concluded it is the agent as title to the gas production remains with the CDM affiliate producer or a third-party producer. Revenue is recognized on a net basis since CDM is strictly providing a service. Costs to maintain CDM’s assets are presented as marketing and midstream expenses in the consolidated statements of comprehensive earnings. Revenue is recognized for sales at the time the gathering, compression and dehydration service has been rendered or performed.

Satisfaction of Performance Obligations and Revenue Recognition

Because Devon has a right to consideration from its customers in amounts that correspond directly to the value that the customer receives from the performance completed on each contract, Devon recognizes revenue for sales at the time the crude oil, natural gas or NGLs are delivered at a fixed or determinable price.

Transaction Price Allocated to Remaining Performance Obligations

Most of Devon’s contracts are short-term in nature with a contract term of one year or less. Devon applies the practical expedient exempting the disclosure of the transaction price allocated to remaining performance obligations if the performance obligation is part of a contract that has an original expected duration of one year or less. For contracts with terms greater than one year, Devon applies the practical expedient exempting the disclosure of the transaction price allocated to remaining performance obligations if the variable consideration is allocated entirely to a wholly unsatisfied performance obligation. Under Devon’s contracts, each unit of product typically represents a separate performance obligation; therefore, future volumes are wholly unsatisfied and disclosure of the transaction price allocated to remaining performance obligations is not required.

 

Contract Balances

Cash received relating to future performance obligations is deferred and recognized when all revenue recognition criteria are met. Contract liabilities generated from such deferred revenue are not considered material as of December 31, 2022. Devon’s product sales and marketing contracts do not give rise to contract assets.

 

Disaggregation of Revenue

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

 

 

 

Year Ended December 31,

 

 

 

2022

 

 

2021

 

 

2020

 

Oil

 

$

10,281

 

 

$

6,996

 

 

$

2,034

 

Gas

 

 

1,948

 

 

 

1,104

 

 

 

326

 

NGL

 

 

1,853

 

 

 

1,431

 

 

 

335

 

Oil, gas and NGL sales

 

 

14,082

 

 

 

9,531

 

 

 

2,695

 

 

 

 

 

 

 

 

 

 

 

Oil

 

 

3,305

 

 

 

2,451

 

 

 

936

 

Gas

 

 

1,163

 

 

 

718

 

 

 

488

 

NGL

 

 

1,277

 

 

 

1,050

 

 

 

554

 

Marketing and midstream revenues

 

 

5,745

 

 

 

4,219

 

 

 

1,978

 

Total revenues from contracts with customers

 

$

19,827

 

 

$

13,750

 

 

$

4,673

 

 

Customers

For the year ended December 31, 2022, sales to one customer accounted for approximately 15% of Devon's sales revenue. For the years ended December 31, 2021 and 2020, sales to two customers accounted for approximately 19% and 12% and 13% and 10%, respectively, of Devon's sales revenue.

If any one of Devon’s major customers were to stop purchasing our production, the Company believes there are a number of other purchasers to whom the company could sell Devon’s production. If multiple significant customers were to discontinue purchasing Devon’s production abruptly, the Company believes it would have the

resources needed to access alternative customers or markets and avoid or materially mitigate associated sales disruptions.
Derivative Financial Instruments

Derivative Financial Instruments

Devon is exposed to certain risks relating to its ongoing business operations, including risks related to commodity prices and interest rates. As discussed more fully below, Devon uses derivative instruments primarily to manage commodity price risk. Devon does not intend to issue or hold derivative financial instruments for speculative trading purposes.

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 instruments are used to manage the inherent uncertainty of future revenues resulting from commodity price volatility. Devon’s derivative financial instruments typically include financial price swaps, basis swaps and costless price collars. Under the terms of the price swaps, Devon receives a fixed price for its production and pays a variable market price to the contract counterparty. For the basis swaps, Devon receives a fixed differential between two regional index prices and pays a variable differential on the same two index prices to the contract counterparty. For price collars, Devon utilizes two-way price collars. The two-way price collars set a floor and ceiling price for the hedged production. If the applicable monthly price indices are outside of the ranges set by the floor and ceiling prices in the various collars, Devon will cash-settle the difference with the counterparty.

All derivative financial instruments are recognized at their current fair value as either assets or liabilities in the balance sheet. 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 balance sheet. Changes in the fair value of these derivative financial instruments are recorded in earnings unless specific hedge accounting criteria are met. For derivative financial instruments held during the three-year period ended December 31, 2022, Devon chose not to meet the necessary criteria to qualify its derivative financial instruments for hedge accounting treatment. Cash settlements with counterparties on Devon’s derivative financial instruments are also recorded in earnings.

By using derivative financial instruments to hedge exposures to changes in commodity prices and interest rates, 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 require cash collateral to be posted if either its or the counterparty’s credit rating falls below certain credit rating levels. As of December 31, 2022, Devon held no cash collateral of its counterparties nor posted collateral to its counterparties. Given Devon's current credit ratings and the terms of the underlying contracts, Devon is not currently required to post collateral to its counterparties with respect to its open derivative positions, and would not be required to post any such collateral as a result of any change to the amount of Devon's net liability for such positions.
General And Administrative Expenses

General and Administrative Expenses

G&A is reported net of amounts reimbursed by working interest owners of the oil and gas properties operated by Devon.

Share-Based Compensation

Share-Based Compensation

Devon grants share-based awards to members of its Board of Directors, management and employees. All such awards are measured at fair value on the date of grant and are generally recognized as a component of G&A in the accompanying consolidated statements of comprehensive earnings over the applicable requisite service periods. As a result of Devon’s restructuring activity discussed in Note 6, certain share-based awards were accelerated and recognized as a component of restructuring and transaction costs in the accompanying consolidated statements of comprehensive earnings.

Generally, Devon uses new shares from approved incentive programs to grant share-based awards and to issue shares upon stock option exercises. Shares repurchased under approved programs are generally available to be issued as part of Devon’s share-based awards. However, Devon has historically canceled these shares upon repurchase.
Income Taxes

Income Taxes

Devon is subject to current income taxes assessed by the federal and various state jurisdictions in the U.S. and by other foreign jurisdictions. In addition, Devon accounts for deferred income taxes related to these jurisdictions using the asset and liability method. Under this method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences and carryforwards are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date.

 

Deferred tax assets are also recognized for the future tax benefits attributable to the expected utilization of existing tax net operating loss carryforwards and other types of carryforwards. If the future utilization of some portion of the deferred tax assets is determined to be unlikely, a valuation allowance is provided to reduce the recorded tax benefits from such assets. Devon periodically weighs the positive and negative evidence to determine if it is more likely than not that some or all of the deferred tax assets will be realized. Forming a conclusion that a valuation allowance is not required is difficult when there is significant negative evidence, such as cumulative losses in recent years. See Note 8 for further discussion.

Devon recognizes the financial statement effects of tax positions when it is more likely than not, based on the technical merits, that the position will be sustained upon examination by a taxing authority. Recognized tax positions are initially and subsequently measured as the largest amount of tax benefit that is more likely than not of being realized upon ultimate settlement with a taxing authority. Liabilities for unrecognized tax benefits related to such tax positions are included in other long-term liabilities unless the tax position is expected to be settled within the upcoming year, in which case the liabilities are included in other current liabilities. Interest and penalties related to unrecognized tax benefits are included in current income tax expense.

Devon estimates its annual effective income tax rate in recording its provision for income taxes in the various jurisdictions in which it operates. Statutory tax rate changes and other significant or unusual items are recognized as discrete items in the period in which they occur.
Net Earnings (Loss) Per Share Attributable To Devon

Net Earnings (Loss) Per Share Attributable to Devon

Devon’s basic earnings per share amounts have been computed based on the average number of shares of common stock outstanding for the period. Basic earnings per share includes the effect of participating securities, which primarily consist of Devon’s outstanding restricted stock awards. Diluted earnings per share is calculated

using the treasury stock method to reflect the assumed issuance of common shares for all potentially dilutive securities. Such securities primarily consist of unvested performance share units.
Cash, Cash Equivalents, and Restricted Cash

Cash, Cash Equivalents and Restricted Cash

Devon considers all highly liquid investments with original contractual maturities of three months or less to be cash equivalents. To fund retained long-term obligations related to previously disposed assets, approximately $120 million and $160 million of Devon’s cash balance as of December 31, 2022 and 2021, respectively, is presented as restricted. These obligations primarily relate to abandoned Canadian firm transportation agreements. This cash is not legally restricted and can be used by Devon for other general corporate purposes.
Accounts Receivable

Accounts Receivable

Devon’s accounts receivable balance primarily consists of oil and gas sales receivables, marketing and midstream revenue receivables and joint interest receivables. Devon does not require collateral security for joint interest receivables.

Devon records an allowance for credit losses based on a forward-looking “expected loss” model. Credit risk is assessed by class of account type, which includes cash equivalents and oil and gas, marketing and midstream, joint interest and other accounts receivable. These classes are further evaluated using a probability-weighted scenario assessment based on historical losses and a probability of future default. This evaluation is supported by an assessment of risk factors such as the age of the receivable, current macro-economic conditions, credit rating of the counterparty and our historical loss rate.
Property And Equipment

Property and Equipment

Oil and Gas Property and Equipment

Devon follows the successful efforts method of accounting for its oil and gas properties. Exploration costs, such as exploratory geological and geophysical costs, and costs associated with nonproductive exploratory wells, delay rentals and exploration overhead are charged against earnings as incurred. Costs of drilling successful exploratory wells along with acquisition costs and the costs of drilling development wells, including those that are unsuccessful, are capitalized. Devon groups its oil and gas properties with a common geological structure or stratigraphic condition (“common operating field”) for purposes of computing DD&A, assessing proved property impairments and accounting for asset dispositions.

Exploratory drilling costs and exploratory-type stratigraphic test wells are initially capitalized, or suspended, pending the determination of proved reserves. If proved reserves are found, drilling costs remain capitalized as proved properties. Costs of unsuccessful wells are charged to exploration expense. For exploratory wells that find reserves that cannot be classified as proved when drilling is completed, costs continue to be capitalized as suspended exploratory well costs if there have been sufficient reserves found to justify completion as a producing well and sufficient progress is being made in assessing the reserves and the economic and operating viability of the project. If management determines that future appraisal drilling or development activities are unlikely to occur, associated suspended exploratory well costs are expensed. In some instances, this determination may take longer than one year. Devon reviews the status of all suspended exploratory drilling costs quarterly.

 

Capitalized costs of proved oil and gas properties are depleted by an equivalent unit-of-production method, converting gas to oil at the ratio of six Mcf of gas to one Bbl of oil. Proved leasehold acquisition costs, less accumulated amortization, are depleted over total proved reserves, which includes proved undeveloped reserves.

Capitalized costs of wells and related equipment and facilities, including estimated asset retirement costs, net of estimated salvage values and less accumulated amortization are depreciated over proved developed reserves associated with those capitalized costs. Depletion is calculated by applying the DD&A rate (amortizable base divided by beginning of period proved reserves) to current period production.

Costs associated with unproved properties are excluded from the depletion calculation until it is determined whether or not proved reserves can be assigned to such properties. Devon assesses its unproved properties for impairment annually, or more frequently if events or changes in circumstances dictate that the carrying value of those assets may not be recoverable. Significant unproved properties are assessed individually.

Proved properties are assessed for impairment when events or changes in circumstances dictate that the carrying value of those assets may not be recoverable. Individual assets are grouped for impairment purposes based on a common operating field. If there is an indication the carrying amount of an asset may not be recovered, the asset is assessed for potential impairment by management through an established process. If, upon review, the sum of the undiscounted pre-tax reserve cash flows is less than the carrying value of the asset, the carrying value is written down to estimated fair value. Because there is usually a lack of quoted market prices for long-lived assets, the fair value of impaired assets is typically determined based on the present values of expected future cash flows using discount rates believed to be consistent with those used by principal market participants or by comparable transactions. The expected future cash flows used for impairment reviews and related fair value calculations are typically based on judgmental assessments of future production volumes, commodity prices, operating costs, and capital investment plans, considering all available information at the date of review.

Gains or losses are recorded for sales or dispositions of oil and gas properties which constitute an entire common operating field or which result in a significant alteration of the common operating field’s DD&A rate. These gains and losses are classified as asset dispositions in the accompanying statements of comprehensive earnings. Partial common operating field sales or dispositions deemed not to significantly alter the DD&A rates are generally accounted for as adjustments to capitalized costs with no gain or loss recognized.

Devon capitalizes interest costs incurred that are attributable to material unproved oil and gas properties and major development projects of oil and gas properties.

Other Property and Equipment

Costs for midstream assets that are in use are depreciated over the assets’ estimated useful lives, using the straight-line method. Depreciation and amortization of other property and equipment, including corporate and leasehold improvements, are provided using the straight-line method based on estimated useful lives ranging from three to 60 years. Interest costs incurred and attributable to major corporate construction projects are also capitalized.

 

Asset Retirement Obligations

Devon recognizes liabilities for retirement obligations associated with tangible long-lived assets, such as producing well sites when there is a legal obligation associated with the retirement of such assets and the amount can be reasonably estimated. The initial measurement of an asset retirement obligation is recorded as a liability at its fair value, with an offsetting asset retirement cost recorded as an increase to the associated property and equipment on the consolidated balance sheet. When the assumptions used to estimate a recorded asset retirement obligation change, a revision is recorded to both the asset retirement obligation and the asset retirement cost. Devon’s asset retirement obligations also include estimated environmental remediation costs which arise from normal operations and are associated with the retirement of such long-lived assets. The asset retirement cost is depreciated using a systematic and rational method similar to that used for the associated property and equipment.
Leases

Leases

 

Devon establishes right-of-use assets and lease liabilities on the balance sheet for all leases with a term longer than 12 months. Devon’s right-of-use operating lease assets are for certain leases related to real estate, drilling rigs and other equipment related to the exploration, development and production of oil and gas. Devon’s right-of-use financing lease assets are related to real estate. Certain of Devon’s lease agreements include variable payments based on usage or rental payments adjusted periodically for inflation. Devon’s lease agreements do not contain any material residual value guarantees or restrictive covenants.
Goodwill

Goodwill

Goodwill represents the excess of the purchase price of business combinations over the fair value of the net assets acquired and is tested for impairment annually, or more frequently if events or changes in circumstances dictate that the carrying value of goodwill may not be recoverable. Such test includes a qualitative assessment to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If the qualitative assessment determines that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, including goodwill, then a quantitative goodwill impairment test is performed. The quantitative goodwill impairment test requires the fair value of the reporting unit be compared to the carrying value of the reporting unit. If the fair value of the reporting unit is less than the carrying value, an impairment charge will be recognized for the amount by which the carrying amount exceeds the fair value. The fair value of the reporting unit is estimated based upon market capitalization, comparable transactions of similar companies and premiums paid.

Devon performed impairment tests of goodwill in the fourth quarters of 2022, 2021 and 2020. No impairment was required as a result of the annual tests in these time periods.

Commitments And Contingencies

Commitments and Contingencies

Liabilities for loss contingencies arising from claims, assessments, litigation or other sources are recorded when it is probable that a liability has been incurred and the amount can be reasonably estimated. Liabilities for environmental remediation or restoration claims resulting from allegations of improper operation of assets are recorded when it is probable that obligations have been incurred and the amounts can be reasonably estimated. Expenditures related to such environmental matters are expensed or capitalized in accordance with Devon’s accounting policy for property and equipment.
Fair Value Measurements

Fair Value Measurements

Certain of Devon’s assets and liabilities are measured at fair value at each reporting date. Fair value represents the price that would be received to sell the asset or paid to transfer the liability in an orderly transaction between market participants. This price is commonly referred to as the “exit price.” Fair value measurements are classified according to a hierarchy that prioritizes the inputs underlying the valuation techniques. This hierarchy consists of three broad levels:

•
Level 1 – Inputs consist of unadjusted quoted prices in active markets for identical assets and liabilities and have the highest priority. When available, Devon measures fair value using Level 1 inputs because they generally provide the most reliable evidence of fair value.
•
Level 2 – Inputs consist of quoted prices that are generally observable for the asset or liability. Common examples of Level 2 inputs include quoted prices for similar assets and liabilities in active markets or quoted prices for identical assets and liabilities in markets not considered to be active.
•
Level 3 – Inputs are not observable from objective sources and have the lowest priority. The most common Level 3 fair value measurement is an internally developed cash flow model.
Noncontrolling Interests

Noncontrolling Interests

Noncontrolling interests represent third-party ownership in the net assets of Devon’s consolidated subsidiaries and are presented as a component of equity. Changes in Devon’s ownership interests in subsidiaries that do not result in deconsolidation are recognized in equity.
v3.22.4
Summary Of Significant Accounting Policies (Tables)
 12 Months Ended
Dec. 31, 2022
Accounting Policies [Abstract]  
Schedule of Components of Investment The following table presents Devon's investments that are shown on the consolidated balance sheet.

 

 

 

 

 

Carrying Amount

 

Investments

 

% Interest

 

December 31, 2022

 

 

December 31, 2021

 

Catalyst

 

50%

 

$

339

 

 

$

368

 

Matterhorn

 

12.5%

 

 

54

 

 

 

—

 

Other

 

Various

 

 

47

 

 

 

34

 

Total

 

 

 

$

440

 

 

$

402

 
Schedule Of Additional Investment Information

After the closing of the Merger, Catalyst has provided certain gathering, processing and marketing services to Devon in the ordinary course of business. The impact from these services on Devon’s consolidated statement of comprehensive earnings and consolidated balance sheet for the years ended and as of December 31, 2022 and 2021, respectively, are summarized below.

 

 

 

Year ended December 31,

 

 

 

2022

 

 

2021

 

Oil, gas and NGL sales

 

$

405

 

 

$

264

 

Production expenses

 

$

55

 

 

$

42

 

Accounts receivable

 

$

14

 

 

$

22

 
Schedule of Revenue from Contracts with Customers Disaggregated Based on Type of Good

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

 

 

 

Year Ended December 31,

 

 

 

2022

 

 

2021

 

 

2020

 

Oil

 

$

10,281

 

 

$

6,996

 

 

$

2,034

 

Gas

 

 

1,948

 

 

 

1,104

 

 

 

326

 

NGL

 

 

1,853

 

 

 

1,431

 

 

 

335

 

Oil, gas and NGL sales

 

 

14,082

 

 

 

9,531

 

 

 

2,695

 

 

 

 

 

 

 

 

 

 

 

Oil

 

 

3,305

 

 

 

2,451

 

 

 

936

 

Gas

 

 

1,163

 

 

 

718

 

 

 

488

 

NGL

 

 

1,277

 

 

 

1,050

 

 

 

554

 

Marketing and midstream revenues

 

 

5,745

 

 

 

4,219

 

 

 

1,978

 

Total revenues from contracts with customers

 

$

19,827

 

 

$

13,750

 

 

$

4,673

 
v3.22.4
Acquisitions and Divestitures (Tables)
 12 Months Ended
Dec. 31, 2022
Business Combinations [Abstract]  
Schedule of Preliminary Allocation of the Total Purchase Price

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

 

 

 

Final Purchase

 

 

 

Price Allocation

 

Consideration:

 

 

 

 WPX Common Stock outstanding

 

 

561.2

 

 Exchange Ratio

 

 

0.5165

 

 Devon common stock issued

 

 

289.9

 

 Devon closing price on January 7, 2021

 

$

18.57

 

Total common equity consideration

 

 

5,383

 

 Share-based replacement awards

 

 

49

 

Total consideration

 

$

5,432

 

Assets acquired:

 

 

 

 Cash, cash equivalents and restricted cash

 

$

344

 

 Accounts receivable

 

 

425

 

 Other current assets

 

 

49

 

 Right-of-use assets

 

 

38

 

 Proved oil and gas property and equipment

 

 

7,017

 

 Unproved and properties under development

 

 

2,362

 

 Other property and equipment

 

 

485

 

 Investments

 

 

400

 

 Other long-term assets

 

 

43

 

Total assets acquired

 

$

11,163

 

Liabilities assumed:

 

 

 

 Accounts payable

 

$

346

 

 Revenue and royalties payable

 

 

223

 

 Other current liabilities

 

 

454

 

 Debt

 

 

3,562

 

 Lease liabilities

 

 

38

 

 Asset retirement obligations

 

 

94

 

 Deferred income taxes

 

 

249

 

 Other long-term liabilities

 

 

765

 

Total liabilities assumed

 

 

5,731

 

 Net assets acquired

 

$

5,432

 
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 Merger had been completed as of the beginning of the periods presented, nor is it indicative of future results.

 

 

 

Year Ended December 31,

 

Continuing operations:

 

2020

 

Total revenues

 

$

7,261

 

Net loss

 

$

(3,438

)

Basic net loss per share

 

$

(5.16

)
v3.22.4
Derivative Financial Instruments (Tables)
 12 Months Ended
Dec. 31, 2022
Derivative [Line Items]  
Schedule Of Open Derivative Positions

Commodity Derivatives

As of December 31, 2022, 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 Collars

 

 

Period

 

Volume
(Bbls/d)

 

 

Weighted
Average Floor
Price ($/Bbl)

 

 

Weighted
Average
Ceiling Price
($/Bbl)

 

 

Q1-Q4 2023

 

 

86,207

 

 

$

69.03

 

 

$

94.66

 

 

 

 

 

Oil Basis Swaps

 

Period

 

Index

 

Volume
(Bbls/d)

 

 

Weighted Average
Differential to WTI
($/Bbl)

 

Q1-Q4 2023

 

Midland Sweet

 

 

18,647

 

 

$

0.73

 

Q1-Q4 2024

 

Midland Sweet

 

 

9,000

 

 

$

1.14

 

 

As of December 31, 2022, 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)

 

Q1-Q4 2023

 

 

11,123

 

 

$

5.47

 

 

 

199,490

 

 

$

3.78

 

 

$

8.27

 

Q1-Q4 2024

 

 

 

 

 

 

 

 

40,527

 

 

$

3.78

 

 

$

7.05

 

 

 

 

Natural Gas Basis Swaps

 

Period

 

Index

 

Volume
(MMBtu/d)

 

 

Weighted Average
Differential to
Henry Hub
($/MMBtu)

 

Q1-Q4 2023

 

El Paso Natural Gas

 

 

140,041

 

 

$

(1.58

)

Q1-Q4 2023

 

Houston Ship Channel

 

 

110,000

 

 

$

(0.16

)

Q1-Q4 2023

 

WAHA

 

 

70,000

 

 

$

(0.51

)

Q1-Q4 2024

 

WAHA

 

 

40,000

 

 

$

(0.51

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

Financial Statement Presentation

 

All derivative financial instruments are recognized at their current fair value as either assets or liabilities in the consolidated balance sheets. Amounts related to contracts allowed to be netted upon payment subject to a master

netting arrangement with the same counterparty are reported on a net basis in the consolidated balance sheets. The table below presents a summary of these positions as of December 31, 2022 and 2021.

 

 

December 31, 2022

 

 

December 31, 2021

 

 

 

 

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

$

138

 

 

$

(19

)

 

$

119

 

 

$

6

 

 

$

(4

)

 

$

2

 

 

Other current assets

Long-term derivative asset

 

12

 

 

 

—

 

 

 

12

 

 

 

6

 

 

 

—

 

 

 

6

 

 

Other long-term assets

Short-term derivative liability

 

(22

)

 

 

19

 

 

 

(3

)

 

 

(579

)

 

 

4

 

 

 

(575

)

 

Other current liabilities

Long-term derivative liability

 

—

 

 

 

—

 

 

 

—

 

 

 

(2

)

 

 

—

 

 

 

(2

)

 

Other long-term liabilities

Total derivative asset (liability)

$

128

 

 

$

—

 

 

$

128

 

 

$

(569

)

 

$

—

 

 

$

(569

)

 

 
v3.22.4
Share-Based Compensation (Tables)
 12 Months Ended
Dec. 31, 2022
Share-Based Payment Arrangement [Abstract]  
Schedule of Share-Based Compensation Expense Included In The Consolidated Statements Of Comprehensive Earnings

 

 

Year Ended December 31,

 

 

 

2022

 

 

2021

 

 

2020

 

G&A

 

$

87

 

 

$

77

 

 

$

76

 

Exploration expenses

 

 

1

 

 

 

1

 

 

 

1

 

Restructuring and transaction costs

 

 

—

 

 

 

21

 

 

 

11

 

Total

 

$

88

 

 

$

99

 

 

$

88

 

Related income tax benefit

 

$

34

 

 

$

13

 

 

$

—

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

 

 

 

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 12/31/21

 

 

7,656

 

 

$

22.15

 

 

 

2,076

 

 

$

24.12

 

 

Granted

 

 

1,408

 

 

$

53.60

 

 

 

964

 

 

$

44.05

 

(1)

Vested

 

 

(3,192

)

 

$

23.10

 

 

 

(1,194

)

 

$

28.91

 

 

Forfeited

 

 

(84

)

 

$

34.05

 

 

 

(5

)

 

$

68.68

 

 

Unvested at 12/31/22

 

 

5,788

 

 

$

29.11

 

 

 

1,841

 

(2)

$

31.33

 

 

 

(1)
These grants also include the impact of performance share units granted in prior year that vested higher than 100% target due to Devon's TSR performance compared to applicable peers.
(2)
A maximum of 3.7 million common shares could be awarded based upon Devon’s final TSR ranking.
Schedule of Share Based Compensation Arrangement By Share Based Payment Award Aggregate Fair Value Of Awards And Units Table Text Block

 

 

 

2022

 

 

2021

 

 

2020

 

Restricted Stock Awards and Units

 

$

180

 

 

$

115

 

 

$

44

 

Performance-Based Restricted Stock Awards

 

$

—

 

 

$

1

 

 

$

2

 

Performance Share Units

 

$

62

 

 

$

15

 

 

$

10

 
Summary of Unrecognized Compensation Cost And Weighted Average Period For Recognition

 

 

Restricted Stock

 

 

Performance

 

 

 

Awards/Units

 

 

Share Units

 

Unrecognized compensation cost

 

$

85

 

 

$

18

 

Weighted average period for recognition (years)

 

 

2.5

 

 

 

1.6

 
Summary of Performance Share Units Grant-Date Fair Values And Their Related Assumptions The following table presents the assumptions related to performance share units granted.

 

 

 

2022

 

 

2021

 

 

2020

 

Grant-date fair value

 

$

68.68

 

 

$

18.08

 

 

$

27.89

 

Risk-free interest rate

 

 

1.81

%

 

 

0.18

%

 

 

1.36

%

Volatility factor

 

 

70.1

%

 

 

67.8

%

 

 

38.4

%

Contractual term (years)

 

 

2.89

 

 

 

2.89

 

 

 

2.89

 
v3.22.4
Asset Impairments (Tables)
 12 Months Ended
Dec. 31, 2022
Asset Impairment Charges [Abstract]  
Summary of Asset Impairments

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

 

 

 

Year Ended December 31,

 

 

 

2022

 

 

2021

 

 

2020

 

Proved oil and gas assets

 

$

—

 

 

$

—

 

 

$

2,664

 

Other assets

 

 

—

 

 

 

—

 

 

 

29

 

Total asset impairments

 

$

—

 

 

$

—

 

 

$

2,693

 

 

 

 

 

 

 

 

 

 

 

Unproved impairments

 

$

12

 

 

$

4

 

 

$

152

 
v3.22.4
Restructuring and Transaction Costs (Tables)
 12 Months Ended
Dec. 31, 2022
Restructuring and Related Activities [Abstract]  
Schedule Of Restructuring And Transaction Costs

The following table summarizes Devon’s restructuring and transaction costs.

 

 

 

Year Ended December 31,

 

 

 

2022

 

 

2021

 

 

2020

 

Restructuring costs

 

$

—

 

 

$

210

 

 

$

41

 

Transaction costs

 

 

—

 

 

 

48

 

 

 

8

 

Total costs

 

$

—

 

 

$

258

 

 

$

49

 
Schedule Of The Activity And Balances Associated With Restructuring Liabilities

The following table summarizes Devon’s restructuring liabilities. The remaining restructuring liability as of December 31, 2022 primarily relates to obligations associated with an abandoned Canadian firm transportation agreement.

 

 

 

Other

 

 

Other

 

 

 

 

 

 

Current

 

 

Long-term

 

 

 

 

 

 

Liabilities

 

 

Liabilities

 

 

Total

 

Balance as of December 31, 2020

 

$

35

 

 

$

137

 

 

$

172

 

Changes related to prior years' restructurings

 

 

3

 

 

 

(26

)

 

 

(23

)

Balance as of December 31, 2021

 

$

38

 

 

$

111

 

 

$

149

 

Changes related to prior years' restructurings

 

 

(4

)

 

 

(30

)

 

 

(34

)

Balance as of December 31, 2022

 

$

34

 

 

$

81

 

 

$

115

 
v3.22.4
Other, Net (Tables)
 12 Months Ended
Dec. 31, 2022
Other Expenses [Abstract]  
Summary of Other Expenses

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

 

 

 

Year Ended December 31,

 

 

 

2022

 

 

2021

 

 

2020

 

Estimated future obligation under a performance guarantee

 

$

(144

)

 

$

(18

)

 

$

—

 

Ukraine charitable pledge

 

 

20

 

 

 

—

 

 

 

—

 

Asset retirement obligation accretion

 

 

25

 

 

 

28

 

 

 

20

 

Severance and other non-income tax refunds

 

 

(5

)

 

 

(39

)

 

 

(40

)

Other

 

 

9

 

 

 

(14

)

 

 

(14

)

Total

 

$

(95

)

 

$

(43

)

 

$

(34

)
v3.22.4
Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2022
Income Tax Disclosure [Abstract]  
Schedule Of Income Tax Expense (Benefit)

The following table presents Devon’s income tax components.

 

 

 

Year Ended December 31,

 

 

 

2022

 

 

2021

 

 

2020

 

Current income tax expense (benefit):

 

 

 

 

 

 

 

 

 

U.S. federal

 

$

501

 

 

$

10

 

 

$

(219

)

Various states

 

 

65

 

 

 

9

 

 

 

—

 

Canada

 

 

(7

)

 

 

(3

)

 

 

—

 

Total current income tax expense (benefit)

 

 

559

 

 

 

16

 

 

 

(219

)

Deferred income tax expense (benefit):

 

 

 

 

 

 

 

 

 

U.S. federal

 

 

1,090

 

 

 

18

 

 

 

(304

)

Various states

 

 

82

 

 

 

22

 

 

 

(24

)

Canada

 

 

7

 

 

 

9

 

 

 

—

 

Total deferred income tax expense (benefit)

 

 

1,179

 

 

 

49

 

 

 

(328

)

Total income tax expense (benefit)

 

$

1,738

 

 

$

65

 

 

$

(547

)

 
Schedule Of Effective Income Tax Rate Reconciliation

Total income tax expense differed from the amounts computed by applying the U.S. federal income tax rate to earnings (loss) from continuing operations before income taxes as a result of the following:

 

 

 

Year Ended December 31,

 

 

 

2022

 

 

2021

 

 

2020

 

Earnings (loss) from continuing operations before income taxes

 

$

7,775

 

 

$

2,898

 

 

$

(3,090

)

 

 

 

 

 

 

 

 

 

 

U.S. statutory income tax rate

 

 

21

%

 

 

21

%

 

 

21

%

Change in tax legislation

 

 

0

%

 

 

0

%

 

 

4

%

State income taxes

 

 

1

%

 

 

1

%

 

 

1

%

Other

 

 

0

%

 

 

2

%

 

 

(1

%)

Deferred tax asset valuation allowance

 

 

0

%

 

 

(22

%)

 

 

(7

%)

Effective income tax rate

 

 

22

%

 

 

2

%

 

 

18

%
Schedule Of Deferred Tax Assets And Liabilities

The following table presents the tax effects of temporary differences that gave rise to Devon’s deferred tax assets and liabilities.

 

 

 

December 31,

 

 

 

2022

 

 

2021

 

Deferred tax assets:

 

 

 

 

 

 

Net operating loss carryforwards

 

$

526

 

 

$

1,075

 

Capital loss carryforwards

 

 

523

 

 

 

559

 

Accrued liabilities

 

 

209

 

 

 

262

 

Fair value of derivative financial instruments

 

 

—

 

 

 

129

 

Asset retirement obligation

 

 

119

 

 

 

109

 

Other, including tax credits

 

 

14

 

 

 

138

 

Total deferred tax assets before valuation allowance

 

 

1,391

 

 

 

2,272

 

Less: valuation allowance

 

 

(814

)

 

 

(893

)

Net deferred tax assets

 

 

577

 

 

 

1,379

 

Deferred tax liabilities:

 

 

 

 

 

 

Property and equipment

 

 

(1,969

)

 

 

(1,630

)

Fair value of derivative financial instruments

 

 

(33

)

 

 

—

 

Other

 

 

(38

)

 

 

(29

)

Total deferred tax liabilities

 

 

(2,040

)

 

 

(1,659

)

Net deferred tax asset (liability)

 

$

(1,463

)

 

$

(280

)
Schedule Of Changes In Unrecognized Tax Benefits

The following table presents changes in Devon’s unrecognized tax benefits.

 

 

 

December 31,

 

 

 

2022

 

 

2021

 

 

 

(Millions)

 

Balance at beginning of year

 

$

36

 

 

$

23

 

Tax positions taken in prior periods

 

 

51

 

 

 

5

 

Assumed WPX tax positions taken in prior periods

 

 

—

 

 

 

8

 

Settlements

 

 

(14

)

 

 

—

 

Balance at end of year

 

$

73

 

 

$

36

 
Summary Of The Tax Years By Jurisdiction That Remain Subject To Examination By Taxing Authorities

 

Jurisdiction

 

Tax Years Open

U.S. federal

 

2015-2022

Various U.S. states

 

2018-2022

Canada

 

2006-2022
v3.22.4
Net Earnings (Loss) Per Share from Continuing Operations (Tables)
 12 Months Ended
Dec. 31, 2022
Earnings Per Share [Abstract]  
Net Earnings (Loss) Per Share Computations from Continuing Operations

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

 

 

 

Year Ended December 31,

 

 

 

2022

 

 

2021

 

 

2020

 

Net earnings (loss) from continuing operations:

 

 

 

 

 

 

 

 

 

Net earnings (loss) from continuing operations

 

$

6,015

 

 

$

2,813

 

 

$

(2,552

)

Attributable to participating securities

 

 

(57

)

 

 

(30

)

 

 

(4

)

Basic and diluted earnings (loss) from continuing operations

 

$

5,958

 

 

$

2,783

 

 

$

(2,556

)

Common shares:

 

 

 

 

 

 

 

 

 

Common shares outstanding - total

 

 

657

 

 

 

670

 

 

 

383

 

Attributable to participating securities

 

 

(6

)

 

 

(7

)

 

 

(6

)

Common shares outstanding - basic

 

 

651

 

 

 

663

 

 

 

377

 

Dilutive effect of potential common shares issuable

 

 

2

 

 

 

2

 

 

 

—

 

Common shares outstanding - diluted

 

 

653

 

 

 

665

 

 

 

377

 

Net earnings (loss) per share from continuing operations:

 

 

 

 

 

 

 

 

 

Basic

 

$

9.15

 

 

$

4.20

 

 

$

(6.78

)

Diluted

 

$

9.12

 

 

$

4.19

 

 

$

(6.78

)
v3.22.4
Other Comprehensive Earnings (Loss) (Tables)
 12 Months Ended
Dec. 31, 2022
Other Comprehensive Income (Loss), Net of Tax [Abstract]  
Components Of Other Comprehensive Earnings (loss)

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

 

 

 

Year Ended December 31,

 

 

 

2022

 

 

2021

 

 

2020

 

Pension and postretirement benefit plans:

 

 

 

 

 

 

 

 

 

Beginning accumulated pension and postretirement benefits

 

$

(132

)

 

$

(127

)

 

$

(119

)

Net actuarial gain (loss) and prior service cost arising in current year

 

 

15

 

 

 

(35

)

 

 

(34

)

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

 

 

6

 

 

 

3

 

 

 

7

 

Curtailment and settlement of pension benefits (2)

 

 

—

 

 

 

19

 

 

 

16

 

Other (3)

 

 

—

 

 

 

7

 

 

 

—

 

Income tax benefit (expense)

 

 

(5

)

 

 

1

 

 

 

3

 

Accumulated other comprehensive loss, net of tax

 

$

(116

)

 

$

(132

)

 

$

(127

)

 

 

(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. See Note 17 for additional details.

 

(2)
In 2021, the Merger triggered settlement payments to certain plan participants, and the expense associated with this settlement is recognized as a component of restructuring and transaction costs in the accompanying consolidated statements of comprehensive earnings.
Other includes a remeasurement of the pension obligation due to the Merger, which was partially offset by a change in mortality assumption.
v3.22.4
Supplemental Information To Statements Of Cash Flows (Tables)
 12 Months Ended
Dec. 31, 2022
Supplemental Cash Flow Elements [Abstract]  
Schedule Of Supplemental Information To Statements Of Cash Flows

 

 

Year Ended December 31,

 

 

 

2022

 

 

2021

 

 

2020

 

Changes in assets and liabilities, net:

 

 

 

 

 

 

 

 

 

Accounts receivable

 

$

(142

)

 

$

(526

)

 

$

231

 

Other current assets

 

 

(119

)

 

 

30

 

 

 

(97

)

Other long-term assets

 

 

90

 

 

 

12

 

 

 

(9

)

Accounts payable and revenues and royalties payable

 

 

152

 

 

 

539

 

 

 

(109

)

Other current liabilities

 

 

(97

)

 

 

(18

)

 

 

(68

)

Other long-term liabilities

 

 

(110

)

 

 

(153

)

 

 

(43

)

Total

 

$

(226

)

 

$

(116

)

 

$

(95

)

Supplementary cash flow data - total operations:

 

 

 

 

 

 

 

 

 

Interest paid

 

$

370

 

 

$

404

 

 

$

259

 

Income taxes paid (refunded)

 

$

438

 

 

$

(116

)

 

$

171

 
v3.22.4
Accounts Receivable (Tables)
 12 Months Ended
Dec. 31, 2022
Accounts Receivable, after Allowance for Credit Loss [Abstract]  
Schedule Of Components Of Accounts Receivable

Components of accounts receivable include the following:

 

 

 

December 31, 2022

 

 

December 31, 2021

 

Oil, gas and NGL sales

 

$

1,153

 

 

$

984

 

Joint interest billings

 

 

162

 

 

 

158

 

Marketing and midstream revenues

 

 

428

 

 

 

370

 

Other

 

 

33

 

 

 

38

 

Gross accounts receivable

 

 

1,776

 

 

 

1,550

 

Allowance for doubtful accounts

 

 

(9

)

 

 

(7

)

Net accounts receivable

 

$

1,767

 

 

$

1,543

 
v3.22.4
Property, Plant and Equipment (Tables)
 12 Months Ended
Dec. 31, 2022
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.

 

 

 

December 31, 2022

 

 

December 31, 2021

 

Property and equipment:

 

 

 

 

 

 

Proved

 

$

42,734

 

 

$

38,051

 

Unproved and properties under development

 

 

1,548

 

 

 

1,081

 

Total oil and gas

 

 

44,282

 

 

 

39,132

 

Less accumulated DD&A

 

 

(27,715

)

 

 

(25,596

)

Oil and gas property and equipment, net

 

 

16,567

 

 

 

13,536

 

Other property and equipment

 

 

2,280

 

 

 

2,139

 

Less accumulated DD&A

 

 

(741

)

 

 

(667

)

Other property and equipment, net (1)

 

 

1,539

 

 

 

1,472

 

Property and equipment, net

 

$

18,106

 

 

$

15,008

 

 

(1)
$109 million and $111 million related to CDM in 2022 and 2021, respectively.
Summary of Changes in Suspended Exploratory Well Costs

The following summarizes the changes in suspended exploratory well costs for the three years ended December 31, 2022.

 

 

 

Year Ended December 31,

 

 

 

2022

 

2021

 

2020

 

 

 

(Millions)

 

Beginning balance

 

$

66

 

$

18

 

$

82

 

Acquired WPX costs

 

 

—

 

 

34

 

 

—

 

Additions pending determination of proved reserves

 

 

462

 

 

206

 

 

148

 

Charges to exploration expense

 

 

(1

)

 

(2

)

 

(3

)

Reclassifications to proved properties

 

 

(401

)

 

(190

)

 

(209

)

Ending balance

 

$

126

 

$

66

 

$

18

 
v3.22.4
Debt And Related Expenses (Tables)
 12 Months Ended
Dec. 31, 2022
Debt Instrument [Line Items]  
Schedule Of Debt Instruments and Balances

See below for a summary of debt instruments and balances. The notes and debentures are senior, unsecured obligations of Devon unless otherwise noted in the table below.

 

 

 

December 31, 2022

 

 

December 31, 2021

 

8.25% due August 1, 2023 (1)

 

$

242

 

 

$

242

 

5.25% due September 15, 2024 (1)

 

 

472

 

 

 

472

 

5.85% due December 15, 2025

 

 

485

 

 

 

485

 

7.50% due September 15, 2027 (2)

 

 

73

 

 

 

73

 

5.25% due October 15, 2027 (1)

 

 

390

 

 

 

390

 

5.875% due June 15, 2028 (1)

 

 

325

 

 

 

325

 

4.50% due January 15, 2030 (1)

 

 

585

 

 

 

585

 

7.875% due September 30, 2031

 

 

675

 

 

 

675

 

7.95% due April 15, 2032

 

 

366

 

 

 

366

 

5.60% due July 15, 2041

 

 

1,250

 

 

 

1,250

 

4.75% due May 15, 2042

 

 

750

 

 

 

750

 

5.00% due June 15, 2045

 

 

750

 

 

 

750

 

Net premium on debentures and notes

 

 

103

 

 

 

149

 

Debt issuance costs

 

 

(26

)

 

 

(30

)

Total debt

 

$

6,440

 

 

$

6,482

 

Less amount classified as short-term debt

 

 

251

 

 

 

—

 

Total long-term debt

 

$

6,189

 

 

$

6,482

 

 

(1)
These instruments were assumed by Devon in January 2021 in conjunction with the Merger. Approximately $50 million of these instruments remain the unsecured and unsubordinated obligation of WPX, a wholly-owned subsidiary of Devon.
(2)
This instrument was assumed by Devon in April 2003 in conjunction with the merger with Ocean Energy. The fair value and effective rate of this note at the time assumed was $169 million and 6.5%, respectively. This instrument is the unsecured and unsubordinated obligation of Devon OEI Operating, L.L.C. and is guaranteed by Devon Energy Production Company, L.P. Each of these entities is a wholly-owned subsidiary of Devon.
Schedule of Debt Maturities

Debt maturities as of December 31, 2022, excluding debt issuance costs, premiums and discounts, are as follows:

 

 

 

Total

 

2023

 

$

242

 

2024

 

 

472

 

2025

 

 

485

 

2026

 

 

—

 

2027

 

 

463

 

Thereafter

 

 

4,701

 

Total

 

$

6,363

 
Schedule Of Net Financing Cost Components

The following schedule includes the components of net financing costs.

 

 

 

Year Ended December 31,

 

 

 

2022

 

 

2021

 

 

2020

 

Interest based on debt outstanding

 

$

370

 

 

$

388

 

 

$

259

 

Gain on early retirement of debt

 

 

—

 

 

 

(30

)

 

 

—

 

Interest income

 

 

(38

)

 

 

(2

)

 

 

(12

)

Other

 

 

(23

)

 

 

(27

)

 

 

23

 

Total net financing costs

 

$

309

 

 

$

329

 

 

$

270

 
WPX  
Debt Instrument [Line Items]  
Schedule Of Debt Instruments and Balances the dates in the following schedule, Devon has the option to redeem the notes, in whole or in part, at the applicable redemption prices set forth in the indenture documents, plus accrued and unpaid interest thereon to the redemption date as more fully described in the indenture documents governing the notes to be redeemed. At any time prior to the dates in the following schedule, Devon has the option to redeem some or all of the notes at a specified "make whole" premium as described in such documents. Other than with respect to the notes identified in

the schedule below, Devon's senior notes generally include more limited redemption provisions, such as "par call" rights near the maturity date or "make whole" redemption rights.

 

 

 

Optional Redemption

5.25% due October 15, 2027

 

October 15, 2022

5.875% due June 15, 2028

 

June 15, 2023

4.50% due January 15, 2030

 

January 15, 2025
v3.22.4
Leases (Tables)
 12 Months Ended
Dec. 31, 2022
Leases [Abstract]  
Schedule of Right-of-use Assets and Lease Liabilities

Devon’s right-of-use operating lease assets are for certain leases related to real estate, drilling rigs and other equipment related to the exploration, development and production of oil and gas. Devon’s right-of-use financing lease assets are related to real estate. Certain of Devon’s lease agreements include variable payments based on usage or rental payments adjusted periodically for inflation. Devon’s lease agreements do not contain any material residual value guarantees or restrictive covenants.

The following table presents Devon’s right-of-use assets and lease liabilities.

 

 

 

December 31, 2022

 

 

December 31, 2021

 

 

 

Finance

 

 

Operating

 

 

Total

 

 

Finance

 

 

Operating

 

 

Total

 

Right-of-use assets

 

$

203

 

 

$

21

 

 

$

224

 

 

$

211

 

 

$

24

 

 

$

235

 

Lease liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current lease liabilities (1)

 

$

8

 

 

$

13

 

 

$

21

 

 

$

8

 

 

$

18

 

 

$

26

 

Long-term lease liabilities

 

 

249

 

 

 

8

 

 

 

257

 

 

 

247

 

 

 

5

 

 

 

252

 

Total lease liabilities

 

$

257

 

 

$

21

 

 

$

278

 

 

$

255

 

 

$

23

 

 

$

278

 

 

(1)
Current lease liabilities are included in other current liabilities on the consolidated balance sheets.
Schedule of Total Lease Cost he following table presents Devon’s total lease cost.

 

 

 

 

Year Ended December 31,

 

 

 

 

2022

 

 

2021

 

 

2020

 

Operating lease cost

Property and equipment; LOE; G&A

 

$

22

 

 

$

25

 

 

$

10

 

Short-term lease cost (1)

Property and equipment; LOE; G&A

 

 

141

 

 

 

89

 

 

 

45

 

Financing lease cost:

 

 

 

 

 

 

 

 

 

 

Amortization of right-of-use assets

DD&A

 

 

8

 

 

 

8

 

 

 

8

 

Interest on lease liabilities

Net financing costs

 

 

11

 

 

 

11

 

 

 

11

 

Variable lease cost

G&A

 

 

—

 

 

 

(4

)

 

 

—

 

Lease income

G&A

 

 

(8

)

 

 

(8

)

 

 

(8

)

Net lease cost

 

 

$

173

 

 

$

121

 

 

$

66

 

 

(1)
Short-term lease cost excludes leases with terms of one month or less.
Schedule of Additional Lease Information

The following table presents Devon’s additional lease information.

 

 

 

Year Ended December 31,

 

 

 

2022

 

 

2021

 

 

 

Finance

 

 

Operating

 

 

Finance

 

 

Operating

 

Cash outflows for lease liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

Operating cash flows

 

$

8

 

 

$

14

 

 

$

7

 

 

$

15

 

Investing cash flows

 

$

—

 

 

$

9

 

 

$

—

 

 

$

9

 

Right-of-use assets obtained in exchange for new
   lease liabilities

 

$

—

 

 

$

20

 

 

$

—

 

 

$

7

 

Weighted average remaining lease term (years)

 

 

5.0

 

 

 

1.7

 

 

 

6.0

 

 

 

1.5

 

Weighted average discount rate

 

 

4.2

%

 

 

2.8

%

 

 

4.2

%

 

 

1.3

%
Maturities of Lease Liabilities

The following table presents Devon’s maturity analysis as of December 31, 2022 for leases expiring in each of the next 5 years and thereafter.

 

 

 

Finance

 

 

Operating

 

 

Total

 

2023

 

$

8

 

 

$

13

 

 

$

21

 

2024

 

 

8

 

 

 

7

 

 

 

15

 

2025

 

 

8

 

 

 

1

 

 

 

9

 

2026

 

 

8

 

 

 

—

 

 

 

8

 

2027

 

 

8

 

 

 

—

 

 

 

8

 

Thereafter

 

 

272

 

 

 

—

 

 

 

272

 

Total lease payments

 

 

312

 

 

 

21

 

 

 

333

 

Less: interest

 

 

(55

)

 

 

—

 

 

 

(55

)

Present value of lease liabilities

 

$

257

 

 

$

21

 

 

$

278

 
Schedule of Expected Lease Income

Devon rents or subleases certain real estate to third parties. The following table presents Devon’s expected lease income as of December 31, 2022 for each of the next 5 years and thereafter.

 

 

 

Operating

 

 

 

Lease Income

 

2023

 

$

10

 

2024

 

 

10

 

2025

 

 

13

 

2026

 

 

13

 

2027

 

 

13

 

Thereafter

 

 

72

 

Total

 

$

131

 

 
v3.22.4
Asset Retirement Obligations (Tables)
 12 Months Ended
Dec. 31, 2022
Asset Retirement Obligation Disclosure [Abstract]  
Summary Of Changes In Asset Retirement Obligations

The following table presents the changes in asset retirement obligations.

 

 

 

Year Ended December 31,

 

 

 

2022

 

 

2021

 

Asset retirement obligations as of beginning of period

 

$

485

 

 

$

369

 

Liabilities incurred and assumed through acquisitions

 

 

73

 

 

 

134

 

Liabilities settled and divested

 

 

(19

)

 

 

(57

)

Revision of estimated obligation

 

 

(35

)

 

 

11

 

Accretion expense on discounted obligation

 

 

25

 

 

 

28

 

Asset retirement obligations as of end of period

 

 

529

 

 

 

485

 

Less current portion

 

 

18

 

 

 

17

 

Asset retirement obligations, long-term

 

$

511

 

 

$

468

 
v3.22.4
Retirement Plans (Tables)
 12 Months Ended
Dec. 31, 2022
Retirement Benefits [Abstract]  
Schedule of Changes in Defined Benefit Plan Obligations

 

 

 

Pension Benefits

 

 

Postretirement Benefits

 

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

Change in benefit obligation:

 

 

 

 

 

 

 

 

 

 

 

 

Benefit obligation at beginning of year

 

$

880

 

 

$

981

 

 

$

12

 

 

$

13

 

Service cost

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Interest cost

 

 

19

 

 

 

18

 

 

 

—

 

 

 

—

 

Actuarial gain

 

 

(215

)

 

 

(18

)

 

 

(4

)

 

 

(1

)

Plan amendments

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1

 

Plan curtailments

 

 

—

 

 

 

22

 

 

 

—

 

 

 

—

 

Plan settlements

 

 

—

 

 

 

(73

)

 

 

—

 

 

 

—

 

Participant contributions

 

 

—

 

 

 

—

 

 

 

1

 

 

 

2

 

Benefits paid

 

 

(55

)

 

 

(50

)

 

 

(2

)

 

 

(3

)

Benefit obligation at end of year

 

 

629

 

 

 

880

 

 

 

7

 

 

 

12

 

Change in plan assets:

 

 

 

 

 

 

 

 

 

 

 

 

Fair value of plan assets at beginning of year

 

 

671

 

 

 

745

 

 

 

—

 

 

 

—

 

Actual return on plan assets

 

 

(172

)

 

 

(11

)

 

 

—

 

 

 

—

 

Employer contributions

 

 

14

 

 

 

60

 

 

 

1

 

 

 

1

 

Participant contributions

 

 

—

 

 

 

—

 

 

 

1

 

 

 

2

 

Plan settlements

 

 

—

 

 

 

(73

)

 

 

—

 

 

 

—

 

Benefits paid

 

 

(55

)

 

 

(50

)

 

 

(2

)

 

 

(3

)

Fair value of plan assets at end of year

 

 

458

 

 

 

671

 

 

 

—

 

 

 

—

 

Funded status at end of year

 

$

(171

)

 

$

(209

)

 

$

(7

)

 

$

(12

)

Amounts recognized in balance sheet:

 

 

 

 

 

 

 

 

 

 

 

 

Other long-term assets

 

$

—

 

 

$

6

 

 

$

—

 

 

$

—

 

Other current liabilities

 

 

(14

)

 

 

(14

)

 

 

(1

)

 

 

(2

)

Other long-term liabilities

 

 

(157

)

 

 

(201

)

 

 

(6

)

 

 

(9

)

Net amount

 

$

(171

)

 

$

(209

)

 

$

(7

)

 

$

(11

)

Amounts recognized in accumulated other
   comprehensive earnings:

 

 

 

 

 

 

 

 

 

 

 

 

Net actuarial loss (gain)

 

$

189

 

 

$

206

 

 

$

(15

)

 

$

(12

)

Prior service cost

 

 

—

 

 

 

—

 

 

 

1

 

 

 

1

 

Total

 

$

189

 

 

$

206

 

 

$

(14

)

 

$

(11

)
Schedule of Projected Benefit Obligation And Accumulated Benefit Obligation in Excess of Plan Assets

Certain of Devon’s pension plans have a combined projected benefit obligation or accumulated benefit obligation in excess of plan assets at December 31, 2022, and December 31, 2021, as presented in the table below.

 

 

 

December 31,

 

 

 

2022

 

 

2021

 

Projected and accumulated benefit obligation

 

$

629

 

 

$

215

 

Fair value of plan assets

 

$

458

 

 

$

—

 
Schedule of Net Periodic Benefit Cost And Other Comprehensive Loss (Earnings) For Pension And Postretirement Benefit Plans

The following table presents the components of net periodic benefit cost and other comprehensive earnings.

 

 

 

Pension Benefits

 

 

Postretirement Benefits

 

 

 

2022

 

 

2021

 

 

2020

 

 

2022

 

 

2021

 

 

2020

 

Net periodic benefit cost:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Service cost

 

$

—

 

 

$

—

 

 

$

5

 

 

$

—

 

 

$

—

 

 

$

—

 

Interest cost

 

 

19

 

 

 

18

 

 

 

25

 

 

 

—

 

 

 

—

 

 

 

—

 

Expected return on plan assets

 

 

(31

)

 

 

(34

)

 

 

(41

)

 

 

—

 

 

 

—

 

 

 

—

 

Recognition of net actuarial loss (gain) (1)

 

 

6

 

 

 

4

 

 

 

5

 

 

 

(1

)

 

 

(1

)

 

 

—

 

Recognition of prior service cost (1)

 

 

—

 

 

 

—

 

 

 

3

 

 

 

—

 

 

 

—

 

 

 

(1

)

Total net periodic benefit cost (2)

 

 

(6

)

 

 

(12

)

 

 

(3

)

 

 

(1

)

 

 

(1

)

 

 

(1

)

Other comprehensive loss (earnings):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Actuarial loss (gain) arising in current year

 

 

(11

)

 

 

28

 

 

 

27

 

 

 

(4

)

 

 

(1

)

 

 

(1

)

Prior service cost arising in current year

 

 

—

 

 

 

—

 

 

 

2

 

 

 

—

 

 

 

1

 

 

 

—

 

Recognition of net actuarial gain (loss), including
   settlement expense, in net periodic benefit cost (3)

 

 

(6

)

 

 

(23

)

 

 

(9

)

 

 

1

 

 

 

1

 

 

 

1

 

Recognition of prior service cost, including
   curtailment, in net periodic benefit cost (3)

 

 

—

 

 

 

—

 

 

 

(7

)

 

 

—

 

 

 

—

 

 

 

1

 

Total other comprehensive loss (earnings)

 

 

(17

)

 

 

5

 

 

 

13

 

 

 

(3

)

 

 

1

 

 

 

1

 

Total

 

$

(23

)

 

$

(7

)

 

$

10

 

 

$

(4

)

 

$

—

 

 

$

—

 

 

(1)
These net periodic benefit costs were reclassified out of other comprehensive earnings in the current period.
(2)
The service cost component of net periodic benefit cost is included in G&A expense and the remaining components of net periodic benefit costs are included in other, net in the accompanying consolidated statements of comprehensive earnings.
(3)
These amounts include restructuring costs that were reclassified out of other comprehensive earnings in 2021 and 2020. See Note 6 for further discussion.
Schedule of Assumptions Used To Determine Benefit Obligations And Net Periodic Benefit Cost

 

 

Pension Benefits

 

Postretirement Benefits

 

 

2022

 

2021

 

2020

 

2022

 

2021

 

2020

Assumptions to determine benefit obligations:

 

 

 

 

 

 

 

 

 

 

 

 

Discount rate

 

5.78%

 

2.71%

 

2.38%

 

5.71%

 

2.34%

 

1.82%

Rate of compensation increase

 

N/A

 

N/A

 

2.50%

 

N/A

 

N/A

 

N/A

Assumptions to determine net periodic benefit cost:

 

 

 

 

 

 

 

 

 

 

 

 

Discount rate - service cost

 

N/A

 

N/A

 

3.47%

 

2.83%

 

2.51%

 

3.25%

Discount rate - interest cost

 

2.18%

 

2.11%

 

2.75%

 

1.57%

 

1.01%

 

2.31%

Rate of compensation increase

 

N/A

 

N/A

 

2.50%

 

N/A

 

N/A

 

N/A

Expected return on plan assets

 

4.80%

 

5.00%

 

6.00%

 

N/A

 

N/A

 

N/A

 
v3.22.4
Stockholders' Equity (Tables)
 12 Months Ended
Dec. 31, 2022
Stockholders' Equity Note [Abstract]  
Summary of Purchases of Common Stock

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

 

 

 

Total Number of
Shares Purchased

 

 

Dollar Value of
Shares Purchased

 

 

Average Price Paid
per Share

 

$1.0 Billion Plan (Closed)

 

 

 

 

 

 

 

 

 

2020

 

 

2,243

 

 

$

38

 

 

$

16.85

 

Total

 

 

2,243

 

 

$

38

 

 

$

16.85

 

 

 

 

 

 

 

 

 

 

 

$2.0 Billion Plan

 

 

 

 

 

 

 

 

 

2021

 

 

13,983

 

 

$

589

 

 

$

42.15

 

2022

 

 

11,708

 

 

 

718

 

 

 

61.36

 

Total plan

 

 

25,691

 

 

$

1,307

 

 

$

50.90

 

 
Summary Of Dividends Paid On Common Stock

Devon is committed to paying a quarterly dividend at a fixed rate and a variable quarterly dividend, which is dependent on quarterly cash flows, among other factors. The following table summarizes the dividends Devon has paid on its common stock in 2022, 2021 and 2020, respectively.

 

 

Fixed

 

 

Variable

 

 

Total

 

 

Rate Per Share

 

2022:

 

 

 

 

 

 

 

 

 

 

 

First quarter

$

109

 

 

$

558

 

 

$

667

 

 

$

1.00

 

Second quarter

 

105

 

 

 

725

 

 

 

830

 

 

$

1.27

 

Third quarter

 

117

 

 

 

890

 

 

 

1,007

 

 

$

1.55

 

Fourth quarter

 

117

 

 

 

758

 

 

 

875

 

 

$

1.35

 

Total year-to-date

$

448

 

 

$

2,931

 

 

$

3,379

 

 

 

 

2021:

 

 

 

 

 

 

 

 

 

 

 

First quarter

$

76

 

 

$

127

 

 

$

203

 

 

$

0.30

 

Second quarter

 

75

 

 

 

154

 

 

 

229

 

 

$

0.34

 

Third quarter

 

74

 

 

 

255

 

 

 

329

 

 

$

0.49

 

Fourth quarter

 

73

 

 

 

481

 

 

 

554

 

 

$

0.84

 

Total year-to-date

$

298

 

 

$

1,017

 

 

$

1,315

 

 

 

 

2020:

 

 

 

 

 

 

 

 

 

 

 

First quarter

$

34

 

 

$

—

 

 

$

34

 

 

$

0.09

 

Second quarter

 

42

 

 

 

—

 

 

 

42

 

 

$

0.11

 

Third quarter

 

43

 

 

 

—

 

 

 

43

 

 

$

0.11

 

Fourth quarter

 

41

 

 

 

97

 

 

 

138

 

 

$

0.37

 

Total year-to-date

$

160

 

 

$

97

 

 

$

257

 

 

 

 
v3.22.4
Discontinued Operations (Tables)
 12 Months Ended
Dec. 31, 2022
Discontinued Operations and Disposal Groups [Abstract]  
Summary of Amounts Reported as Discontinued Operations in the Consolidated Comprehensive Statements of Earnings and Carrying Amounts of Assets and Liabilities Classified as Held for Sale on the Consolidated Balance Sheets

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

 

Year ended December 31, 2020

 

Total

 

 

 

 

 

Oil, gas and NGL sales

 

$

263

 

Total revenues

 

 

263

 

Production expenses

 

 

214

 

Asset impairments

 

 

182

 

Asset dispositions

 

 

1

 

General and administrative expenses

 

 

3

 

Financing costs, net

 

 

(3

)

Restructuring and transaction costs

 

 

9

 

Other expenses

 

 

9

 

Total expenses

 

 

415

 

Loss from discontinued operations before income taxes

 

 

(152

)

Income tax benefit

 

 

(24

)

Loss from discontinued operations, net of tax

 

$

(128

)
v3.22.4
Commitments And Contingencies (Tables)
 12 Months Ended
Dec. 31, 2022
Commitments and Contingencies Disclosure [Abstract]  
Schedule Of Commitments And Contingencies

The following table presents Devon’s commitments that have initial or remaining noncancelable terms in excess of one year as of December 31, 2022.

 

Year Ending December 31,

 

Drilling and Facility Obligations

 

 

Operational Agreements

 

 

Office and Equipment Leases and Other

 

2023

 

$

273

 

 

$

470

 

 

$

118

 

2024

 

 

42

 

 

 

491

 

 

 

62

 

2025

 

 

21

 

 

 

464

 

 

 

47

 

2026

 

 

12

 

 

 

423

 

 

 

23

 

2027

 

 

19

 

 

 

294

 

 

 

24

 

Thereafter

 

 

15

 

 

 

1,072

 

 

 

341

 

Total

 

$

382

 

 

$

3,214

 

 

$

615

 
v3.22.4
Fair Value Measurements (Tables)
 12 Months Ended
Dec. 31, 2022
Fair Value Disclosures [Abstract]  
Schedule Of Carrying Value And Fair Value Measurement Information For Financial Assets And Liabilities

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, restricted 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 December 31, 2022 and December 31, 2021, 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

 

December 31, 2022 assets (liabilities):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash equivalents

 

$

708

 

 

$

708

 

 

$

708

 

 

$

—

 

 

$

—

 

Commodity derivatives

 

$

131

 

 

$

131

 

 

$

—

 

 

$

131

 

 

$

—

 

Commodity derivatives

 

$

(3

)

 

$

(3

)

 

$

—

 

 

$

(3

)

 

$

—

 

Debt

 

$

(6,440

)

 

$

(6,231

)

 

$

—

 

 

$

(6,231

)

 

$

—

 

Contingent earnout payments

 

$

157

 

 

$

157

 

 

$

—

 

 

$

—

 

 

$

157

 

December 31, 2021 assets (liabilities):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash equivalents

 

$

1,421

 

 

$

1,421

 

 

$

1,421

 

 

$

—

 

 

$

—

 

Commodity derivatives

 

$

8

 

 

$

8

 

 

$

—

 

 

$

8

 

 

$

—

 

Commodity derivatives

 

$

(577

)

 

$

(577

)

 

$

—

 

 

$

(577

)

 

$

—

 

Debt

 

$

(6,482

)

 

$

(7,644

)

 

$

—

 

 

$

(7,644

)

 

$

—

 

Contingent earnout payments

 

$

184

 

 

$

184

 

 

$

—

 

 

$

—

 

 

$

184

 
v3.22.4
Supplemental Information on Oil and Gas Operations (Unaudited) (Tables)
 12 Months Ended
Dec. 31, 2022
Oil and Gas Exploration and Production Industries Disclosures [Abstract]  
Costs Incurred

The following tables reflect the costs incurred in oil and gas property acquisition, exploration and development activities.

 

 

 

Year Ended December 31,

 

 

 

2022

 

 

2021

 

 

2020

 

Property acquisition costs:

 

 

 

 

 

 

 

 

 

Proved properties

 

$

1,760

 

 

$

7,017

 

 

$

—

 

Unproved properties

 

 

803

 

 

 

2,381

 

 

 

8

 

Exploration costs

 

 

472

 

 

 

212

 

 

 

159

 

Development costs

 

 

2,132

 

 

 

1,643

 

 

 

820

 

Costs incurred

 

$

5,167

 

 

$

11,253

 

 

$

987

 
Results Of Operations

 

 

Year Ended December 31,

 

 

2022

 

 

2021

 

 

2020

 

 

Oil, gas and NGL sales

 

$

14,082

 

 

$

9,531

 

 

$

2,695

 

 

Production expenses

 

 

(2,797

)

 

 

(2,131

)

 

 

(1,123

)

 

Exploration expenses

 

 

(29

)

 

 

(14

)

 

 

(167

)

 

Depreciation, depletion and amortization

 

 

(2,119

)

 

 

(2,050

)

 

 

(1,207

)

 

Asset dispositions

 

 

43

 

 

 

170

 

 

 

—

 

 

Asset impairments

 

 

—

 

 

 

—

 

 

 

(2,664

)

 

Accretion of asset retirement obligations

 

 

(25

)

 

 

(28

)

 

 

(20

)

 

Income tax expense

 

 

(2,041

)

 

 

(1,238

)

 

 

—

 

 

Results of operations

 

$

7,114

 

 

$

4,240

 

 

$

(2,486

)

 

Depreciation, depletion and amortization per Boe

 

$

9.52

 

 

$

9.83

 

 

$

9.90

 

 
Proved Reserves

The following table presents Devon’s estimated proved reserves by product.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Oil (MMBbls)

 

 

Gas (Bcf) (1)

 

 

NGL (MMBbls)

 

 

Combined (MMBoe)

 

Proved developed and undeveloped reserves:

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2019

 

 

276

 

 

 

1,621

 

 

 

211

 

 

 

757

 

Revisions due to prices

 

 

(26

)

 

 

(209

)

 

 

(17

)

 

 

(78

)

Revisions other than price

 

 

18

 

 

 

119

 

 

 

17

 

 

 

55

 

Extensions and discoveries

 

 

71

 

 

 

188

 

 

 

33

 

 

 

135

 

Purchase of reserves

 

 

1

 

 

 

19

 

 

 

3

 

 

 

7

 

Production

 

 

(57

)

 

 

(221

)

 

 

(28

)

 

 

(122

)

Sale of reserves

 

 

(1

)

 

 

(5

)

 

 

(1

)

 

 

(2

)

December 31, 2020

 

 

282

 

 

 

1,512

 

 

 

218

 

 

 

752

 

Revisions due to prices

 

 

55

 

 

 

382

 

 

 

36

 

 

 

155

 

Revisions other than price

 

 

(23

)

 

 

11

 

 

 

64

 

 

 

43

 

Extensions and discoveries

 

 

112

 

 

 

348

 

 

 

58

 

 

 

228

 

Purchase of reserves

 

 

393

 

 

 

961

 

 

 

110

 

 

 

663

 

Production

 

 

(106

)

 

 

(325

)

 

 

(48

)

 

 

(209

)

Sale of reserves

 

 

(4

)

 

 

(11

)

 

 

(1

)

 

 

(7

)

December 31, 2021

 

 

709

 

 

 

2,878

 

 

 

437

 

 

 

1,625

 

Revisions due to prices

 

 

15

 

 

 

61

 

 

 

8

 

 

 

34

 

Revisions other than price

 

 

(55

)

 

 

13

 

 

 

3

 

 

 

(49

)

Extensions and discoveries

 

 

127

 

 

 

449

 

 

 

76

 

 

 

278

 

Purchase of reserves

 

 

106

 

 

 

137

 

 

 

24

 

 

 

153

 

Production

 

 

(109

)

 

 

(356

)

 

 

(54

)

 

 

(223

)

Sale of reserves

 

 

—

 

 

 

(7

)

 

 

(1

)

 

 

(3

)

December 31, 2022

 

 

793

 

 

 

3,175

 

 

 

493

 

 

 

1,815

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Proved developed reserves:

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2019

 

 

198

 

 

 

1,344

 

 

 

167

 

 

 

589

 

December 31, 2020

 

 

194

 

 

 

1,244

 

 

 

173

 

 

 

574

 

December 31, 2021

 

 

544

 

 

 

2,361

 

 

 

348

 

 

 

1,285

 

December 31, 2022

 

 

596

 

 

 

2,595

 

 

 

391

 

 

 

1,419

 

Proved developed-producing reserves:

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2019

 

 

191

 

 

 

1,327

 

 

 

165

 

 

 

578

 

December 31, 2020

 

 

190

 

 

 

1,223

 

 

 

171

 

 

 

564

 

December 31, 2021

 

 

533

 

 

 

2,316

 

 

 

341

 

 

 

1,260

 

December 31, 2022

 

 

585

 

 

 

2,553

 

 

 

387

 

 

 

1,397

 

Proved undeveloped reserves:

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2019

 

 

78

 

 

 

277

 

 

 

44

 

 

 

168

 

December 31, 2020

 

 

88

 

 

 

268

 

 

 

45

 

 

 

178

 

December 31, 2021

 

 

165

 

 

 

517

 

 

 

89

 

 

 

340

 

December 31, 2022

 

 

197

 

 

 

580

 

 

 

102

 

 

 

396

 

 

(1)
Gas reserves are converted to Boe at the rate of six Mcf per Bbl of oil, based upon the approximate relative energy content of gas and oil. NGL reserves are converted to Boe on a one-to-one basis with oil. The conversion rates are not necessarily indicative of the relationship of oil, natural gas and NGL prices.
Proved Undeveloped Reserves

 

 

Total

 

Proved undeveloped reserves as of December 31, 2021

 

 

340

 

Extensions and discoveries

 

 

176

 

Revisions due to prices

 

 

2

 

Revisions other than price

 

 

(39

)

Purchase of reserves

 

 

44

 

Sale of reserves

 

 

—

 

Conversion to proved developed reserves

 

 

(127

)

Proved undeveloped reserves as of December 31, 2022

 

 

396

 
Standardized Measure of Discounted Future Cash Flows Relating to Proved Reserves

The following tables reflect Devon’s standardized measure of discounted future net cash flows from its proved reserves.

 

 

 

Year Ended December 31,

 

 

 

2022

 

 

2021

 

 

2020

 

Future cash inflows

 

$

108,361

 

 

$

66,321

 

 

$

14,957

 

Future costs:

 

 

 

 

 

 

 

 

 

Development

 

 

(5,176

)

 

 

(3,689

)

 

 

(1,747

)

Production

 

 

(35,264

)

 

 

(22,975

)

 

 

(7,964

)

Future income tax expense

 

 

(13,216

)

 

 

(6,423

)

 

 

—

 

Future net cash flow

 

 

54,705

 

 

 

33,234

 

 

 

5,246

 

10% discount to reflect timing of cash flows

 

 

(23,391

)

 

 

(13,933

)

 

 

(1,774

)

Standardized measure of discounted future net cash flows

 

$

31,314

 

 

$

19,301

 

 

$

3,472

 
Schedule Of Principal Changes In The Standardized Measure Of Discounted Future Net Cash Flows Attributable To Proved Reserves

The principal changes in Devon’s standardized measure of discounted future net cash flows are as follows:

 

 

 

Year Ended December 31,

 

 

 

2022

 

 

2021

 

 

2020

 

Beginning balance

 

$

19,301

 

 

$

3,472

 

 

$

5,398

 

Net changes in prices and production costs

 

 

14,081

 

 

 

8,274

 

 

 

(3,277

)

Oil, gas and NGL sales, net of production costs

 

 

(11,285

)

 

 

(7,400

)

 

 

(1,572

)

Changes in estimated future development costs

 

 

(216

)

 

 

(414

)

 

 

402

 

Extensions and discoveries, net of future development costs

 

 

7,279

 

 

 

3,877

 

 

 

988

 

Purchase of reserves

 

 

4,185

 

 

 

12,460

 

 

 

23

 

Sales of reserves in place

 

 

(20

)

 

 

(12

)

 

 

(7

)

Revisions of quantity estimates

 

 

(874

)

 

 

838

 

 

 

147

 

Previously estimated development costs incurred during the period

 

 

956

 

 

 

663

 

 

 

537

 

Accretion of discount

 

 

2,059

 

 

 

1,218

 

 

 

285

 

Net change in income taxes and other

 

 

(4,152

)

 

 

(3,675

)

 

 

548

 

Ending balance

 

$

31,314

 

 

$

19,301

 

 

$

3,472

 
v3.22.4
Summary Of Significant Accounting Policies (Narrative) (Details)
$ in Millions
 12 Months Ended
Jan. 07, 2021
Dec. 31, 2022
USD ($)
a
Customer
Dec. 31, 2021
USD ($)
Customer
Dec. 31, 2020
USD ($)
Customer
Summary Of Significant Accounting Policies [Line Items]        
Conversion of common stock into right to received per share 0.5165      
Number of customers | Customer   1 2 2
Derivative collateral held   $ 0    
Cash collateral posted   0    
Restricted cash   140 $ 172 $ 190
Goodwill, Impairment Loss   0 0 $ 0
Barnett Shale [Member]        
Summary Of Significant Accounting Policies [Line Items]        
Restricted cash   $ 120 $ 160  
Minimum [Member]        
Summary Of Significant Accounting Policies [Line Items]        
Other property and equipment, useful life     3 years  
Maximum [Member]        
Summary Of Significant Accounting Policies [Line Items]        
Other property and equipment, useful life   60 years    
Customer Concentration Risk [Member] | One Customer [Member] | Consolidated Sales Revenue [Member]        
Summary Of Significant Accounting Policies [Line Items]        
Concentration risk percentage   15.00% 19.00% 13.00%
Customer Concentration Risk [Member] | Two Customer [Member] | Consolidated Sales Revenue [Member]        
Summary Of Significant Accounting Policies [Line Items]        
Concentration risk percentage     12.00% 10.00%
Upstream Revenues [Member]        
Summary Of Significant Accounting Policies [Line Items]        
Number of days allowed for payment from end of production month   30 days    
Marketing Revenues [Member]        
Summary Of Significant Accounting Policies [Line Items]        
Number of days allowed for payment of invoiced amount   30 days    
CDM [Member] | QL Capital Partners, LP [Member]        
Summary Of Significant Accounting Policies [Line Items]        
Cash distribution from entities   $ 30 $ 20 $ 14
Cash contributed to entities     $ 3 $ 21
Devon and WPX Agreement [Member]        
Summary Of Significant Accounting Policies [Line Items]        
Date of agreement Jan. 07, 2021 Jan. 07, 2021    
Conversion of common stock into right to received per share 0.5165      
WPX and Howard Energy Partners [Member]        
Summary Of Significant Accounting Policies [Line Items]        
Voting interest in the join venture legal entity   50.00%    
Catalyst [Member]        
Summary Of Significant Accounting Policies [Line Items]        
Area of land | a   50,000    
Investment in Catalyst   $ 339    
Net assets   $ 120    
v3.22.4
Summary Of Significant Accounting Policies (Schedule of Components of Investments) (Details) - USD ($)
$ in Millions
Dec. 31, 2022
Dec. 31, 2021
Summary Of Significant Accounting Policies [Line Items]    
Investments $ 440 $ 402
Catalyst [Member]    
Summary Of Significant Accounting Policies [Line Items]    
% Interest 50.00%  
Investments $ 339 368
Matterhorn [Member]    
Summary Of Significant Accounting Policies [Line Items]    
% Interest 12.50%  
Investments $ 54  
Other [Member]    
Summary Of Significant Accounting Policies [Line Items]    
Investments $ 47 $ 34
v3.22.4
Summary Of Significant Accounting Policies (Schedule Of Additional Investment Information) (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Summary Of Significant Accounting Policies [Line Items]      
Oil, gas and NGL sales $ 19,827 $ 13,750 $ 4,673
Accounts receivable 1,767 1,543  
Catalyst [Member]      
Summary Of Significant Accounting Policies [Line Items]      
Oil, gas and NGL sales 405 264  
Production expenses 55 42  
Accounts receivable $ 14 $ 22  
v3.22.4
Summary of Significant Accounting Policies (Schedule of Revenue from Contracts with Customers Disaggregated Based on Type of Good) (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Disaggregation Of Revenue [Line Items]      
Oil, gas and NGL sales $ 19,827 $ 13,750 $ 4,673
Oil, Gas and NGL Sales [Member]      
Disaggregation Of Revenue [Line Items]      
Oil, gas and NGL sales 14,082 9,531 2,695
Oil, Gas and NGL Sales [Member] | Gas [Member]      
Disaggregation Of Revenue [Line Items]      
Oil, gas and NGL sales 1,948 1,104 326
Oil, Gas and NGL Sales [Member] | NGL [Member]      
Disaggregation Of Revenue [Line Items]      
Oil, gas and NGL sales 1,853 1,431 335
Oil, Gas and NGL Sales [Member] | Oil [Member]      
Disaggregation Of Revenue [Line Items]      
Oil, gas and NGL sales 10,281 6,996 2,034
Marketing and Midstream Revenues [Member]      
Disaggregation Of Revenue [Line Items]      
Oil, gas and NGL sales 5,745 4,219 1,978
Marketing and Midstream Revenues [Member] | Gas [Member]      
Disaggregation Of Revenue [Line Items]      
Oil, gas and NGL sales 1,163 718 488
Marketing and Midstream Revenues [Member] | NGL [Member]      
Disaggregation Of Revenue [Line Items]      
Oil, gas and NGL sales 1,277 1,050 554
Marketing and Midstream Revenues [Member] | Oil [Member]      
Disaggregation Of Revenue [Line Items]      
Oil, gas and NGL sales $ 3,305 $ 2,451 $ 936
v3.22.4
Acquisitions and Divestitures (Narrative) (Details)
$ in Millions
 1 Months Ended 3 Months Ended 12 Months Ended 48 Months Ended
Sep. 30, 2022
USD ($)
Jan. 07, 2021
Jul. 31, 2022
USD ($)
MMBoe
Mar. 31, 2023
USD ($)
Mar. 31, 2022
USD ($)
Dec. 31, 2020
USD ($)
$ / MMBTU
$ / bbl
Dec. 31, 2022
USD ($)
MMBoe
Dec. 31, 2021
USD ($)
Boe
MMBoe
Dec. 31, 2020
USD ($)
MMBoe
Dec. 31, 2024
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations And Disposition [Line Items]                    
Conversion of common stock into right to received per share   0.5165                
Common Stock Shares Issued             $ 65 $ 66    
Gain on asset dispositions                 $ (1)  
Total estimated proved reserves | MMBoe             3 7 2  
Gain on asset dispositions             $ 44 $ 168 $ 1  
Gain loss on disposition of assets             44 168 $ 1  
Barnett Shale [Member]                    
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations And Disposition [Line Items]                    
Divestitures of property and equipment           $ 490        
Gain on asset dispositions             42 110    
Contingent earnout payments         $ 65   130      
Divestitures of property and equipment           $ 490        
Gain on asset dispositions             42 110    
Henry Hub gas price for contingent earnout payment upside | $ / MMBTU           2.75        
WTI oil price for contingent earnout payment upside | $ / bbl           50        
Gain loss on disposition of assets             42 110    
Additional contingent earnout payment           $ 130        
Barnett Shale [Member] | Subsequent Event                    
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations And Disposition [Line Items]                    
Contingent earnout payments       $ 65            
Barnett Shale [Member] | Scenario Forecast [Member]                    
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations And Disposition [Line Items]                    
Contingent earnout payment period                   The contingent payment period commenced on January 1, 2021 and has a term of four years.
Other Current Assets | Barnett Shale [Member]                    
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations And Disposition [Line Items]                    
Contingent earnout payments             65      
Other Noncurrent Assets | Barnett Shale [Member]                    
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations And Disposition [Line Items]                    
Contingent earnout payments             $ 88      
Non Core Assets                    
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations And Disposition [Line Items]                    
Divestitures of property and equipment               9    
Gain on asset dispositions               $ 35    
Total estimated proved reserves | Boe               3    
Contingent earnout payments         $ 4          
Divestitures of property and equipment               $ 9    
Non Core Assets | Subsequent Event                    
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations And Disposition [Line Items]                    
Contingent earnout payments       $ 4            
Devon and WPX Agreement [Member]                    
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations And Disposition [Line Items]                    
Date of agreement   Jan. 07, 2021         Jan. 07, 2021      
Conversion of common stock into right to received per share   0.5165                
Common Stock Shares Issued             $ 5,400      
Eagle Ford Acquisition [Member]                    
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations And Disposition [Line Items]                    
Cash consideration $ 1,700                  
Williston Acquisition [Member]                    
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations And Disposition [Line Items]                    
Cash consideration     $ 830              
Eagle Ford [Member]                    
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations And Disposition [Line Items]                    
Total estimated proved reserves | MMBoe     87              
Williston Basin [Member]                    
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations And Disposition [Line Items]                    
Total estimated proved reserves | MMBoe     66              
v3.22.4
Acquisitions and Divestitures (Schedule of Preliminary Allocation of the Total Purchase Price) (Details)
$ / shares in Units, shares in Millions, $ in Millions
Jan. 07, 2021
USD ($)
$ / shares
shares
Dec. 31, 2022
shares
Dec. 31, 2021
shares
Consideration:      
Conversion of common stock into right to received per share 0.5165    
Common stock, shares issued (in shares) | shares   653.0 663.0
Total common equity consideration $ 5,383    
Share-based replacement awards 49    
Assets acquired:      
Cash, cash equivalents and restricted cash 344    
Accounts receivable 425    
Other current assets 49    
Right-of-use assets 38    
Proved oil and gas property and equipment 7,017    
Unproved and properties under development 2,362    
Other property and equipment 485    
Investments 400    
Other long-term assets 43    
Total assets acquired 11,163    
Liabilities assumed:      
Accounts payable 346    
Revenue and royalties payable 223    
Other current liabilities 454    
Debt 3,562    
Lease liabilities 38    
Asset retirement obligations 94    
Deferred income taxes 249    
Other long-term liabilities 765    
Total liabilities assumed 5,731    
Net assets acquired $ 5,432    
WPX      
Consideration:      
WPX Common Stock outstanding | shares 561.2    
Devon and WPX Agreement [Member]      
Consideration:      
Conversion of common stock into right to received per share 0.5165    
Common stock, shares issued (in shares) | shares 289.9    
Devon closing price on January 7, 2021 | $ / shares $ 18.57    
Total consideration $ 5,432    
v3.22.4
Acquisitions and Divestitures (Schedule of Pro Forma Adjustments to Confirm Acquisition) (Details) - USD ($)
$ / shares in Units, $ in Millions
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Business Acquisition [Line Items]      
Total revenues $ 19,169 $ 12,206 $ 4,828
Net loss $ 6,037 $ 2,833 $ (2,671)
Basic net loss per share $ 9.15 $ 4.20 $ (7.12)
Devon and WPX Agreement [Member] | Pro Forma [Member]      
Business Acquisition [Line Items]      
Total revenues     $ 7,261
Net loss     $ (3,438)
Basic net loss per share     $ (5.16)
v3.22.4
Derivative Financial Instruments (Schedule Of Open Oil Derivative Positions) (Details)
 12 Months Ended
Dec. 31, 2022
$ / bbl
bbl
NYMEX West Texas Intermediate Price Collars Oil Q1-Q4 2023 [Member]  
Derivative [Line Items]  
Volume Per Day (Bbls/d) | bbl 86,207
Weighted Average Floor Price 69.03
Weighted Average Ceiling Price 94.66
Midland Sweet Q1-Q4 2023 [Member]  
Derivative [Line Items]  
Volume Per Day (Bbls/d) | bbl 18,647
Weighted Average Differential To WTI 0.73
Midland Sweet Q1-Q4 2024 [Member]  
Derivative [Line Items]  
Volume Per Day (Bbls/d) | bbl 9,000
Weighted Average Differential To WTI 1.14
v3.22.4
Derivative Financial Instruments (Schedule Of Open Natural Gas Derivative Positions) (Details)
 12 Months Ended
Dec. 31, 2022
MMBTU
$ / MMBTU
FERC Henry Hub Price Swaps Natural Gas Q1-Q4 2023 [Member]  
Derivative [Line Items]  
Volume Per Day (MMBtu/d) | MMBTU 11,123
Weighted Average Price Swap 5.47
FERC Henry Hub Price Collars Natural Gas Q1-Q4 2023 [Member]  
Derivative [Line Items]  
Volume Per Day (MMBtu/d) | MMBTU 199,490
Weighted Average Floor Price 3.78
Weighted Average Ceiling Price 8.27
FERC Henry Hub Prices Collars Natural Gas Q1-Q4 2024 [Member]  
Derivative [Line Items]  
Volume Per Day (MMBtu/d) | MMBTU 40,527
Weighted Average Floor Price 3.78
Weighted Average Ceiling Price 7.05
Houston Ship Channel Natural Gas Basis Swaps Q1-Q4 2023 [Member]  
Derivative [Line Items]  
Volume Per Day (MMBtu/d) | MMBTU 110,000
Weighted Average Differential To Henry Hub (0.16)
El Paso Natural Gas Basis Swaps Q1-Q4 2023 [Member]  
Derivative [Line Items]  
Volume Per Day (MMBtu/d) | MMBTU 140,041
Weighted Average Differential To Henry Hub (1.58)
WAHA Natural Gas Basis Swaps Q1-Q4 2023 [Member]  
Derivative [Line Items]  
Volume Per Day (MMBtu/d) | MMBTU 70,000
Weighted Average Differential To Henry Hub (0.51)
WAHA Natural Gas Basis Swaps Q1-Q4 2024 [Member]  
Derivative [Line Items]  
Volume Per Day (MMBtu/d) | MMBTU 40,000
Weighted Average Differential To Henry Hub (0.51)
v3.22.4
Derivative Financial Instruments (Schedule Of Derivative Financial Instruments Included In The Consolidated Balance Sheets) (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Derivatives Fair Value [Line Items]    
Gross Fair Value $ 128 $ (569)
Net Fair Value 128 (569)
Short-term Derivative Asset [Member]    
Derivatives Fair Value [Line Items]    
Gross Fair Value 138 6
Amounts Netted (19) (4)
Net Fair Value $ 119 2
Balance Sheet Classification Other current assets  
Long-term Derivative Asset [Member]    
Derivatives Fair Value [Line Items]    
Gross Fair Value $ 12 6
Net Fair Value $ 12 6
Balance Sheet Classification Other long-term assets  
Short-term Derivative Liability [Member]    
Derivatives Fair Value [Line Items]    
Gross Fair Value $ (22) (579)
Amounts Netted 19 4
Net Fair Value $ (3) (575)
Balance Sheet Classification Other current liabilities  
Long-term Derivative Liability [Member]    
Derivatives Fair Value [Line Items]    
Gross Fair Value   (2)
Net Fair Value   $ (2)
Balance Sheet Classification Other long-term liabilities  
v3.22.4
Share-Based Compensation (Narrative) (Details)
 12 Months Ended
Dec. 31, 2022
shares
Performance Share Units [Member]  
Share Based Compensation Arrangement By Share Based Payment Award Line Items  
Comparison period of peer companies for performance awards 3 years
Share-Based Compensation Arrangement by Share-Based Payment Award, Award Vesting Rights, Percentage 100.00%
Minimum [Member] | Restricted Stock Awards [Member]  
Share Based Compensation Arrangement By Share Based Payment Award Line Items  
Vesting period 1 year
Minimum [Member] | Performance Share Units [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 0.00%
Maximum [Member] | Restricted Stock Awards [Member]  
Share Based Compensation Arrangement By Share Based Payment Award Line Items  
Vesting period 4 years
Maximum [Member] | Performance Share Units [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 200.00%
2022 Plan [Member]  
Share Based Compensation Arrangement By Share Based Payment Award Line Items  
Number of shares used to calculate shares that may be granted under the Long-Term Incentive Plan, other awards 1.74
Number of shares used to calculate shares that may be granted under the Long-Term Incentive Plan, options and stock appreciation rights 1
v3.22.4
Share-Based Compensation (Schedule of Share-Based Compensation Expense Included In The Consolidated Statements Of Comprehensive Earnings) (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Share Based Compensation Arrangement By Share Based Payment Award Line Items      
Share-based compensation expense $ 88 $ 99 $ 88
Related income tax benefit 34 13 0
G&A [Member]      
Share Based Compensation Arrangement By Share Based Payment Award Line Items      
Share-based compensation expense 87 77 76
Exploration Expenses [Member]      
Share Based Compensation Arrangement By Share Based Payment Award Line Items      
Share-based compensation expense 1 1 1
Restructuring and Transaction Costs [Member]      
Share Based Compensation Arrangement By Share Based Payment Award Line Items      
Restructuring and transaction costs $ 0 $ 21 $ 11
v3.22.4
Share-Based Compensation (Summary of Unvested Restricted Stock Awards, Performance-Based Restricted Stock Awards And Performance Share Units) (Details)
shares in Thousands
 12 Months Ended
Dec. 31, 2022
$ / shares
shares
Restricted Stock Awards [Member]  
Share Based Compensation Arrangement By Share Based Payment Award Line Items  
Unvested at December 31, 2021 | shares 7,656
Granted, awards and units | shares 1,408
Vested, awards and units | shares (3,192)
Forfeited, awards and units | shares (84)
Unvested at December 31, 2022 | shares 5,788
Unvested weighted average grant-date fair value at December 31, 2021 | $ / shares $ 22.15
Granted, weighted average grant-date fair value | $ / shares 53.60
Vested, weighted average grant-date fair value | $ / shares 23.10
Forfeited, weighted average grant-date fair value | $ / shares 34.05
Unvested weighted average grant-date fair value at December 31, 2022 | $ / shares $ 29.11
Performance Share Units [Member]  
Share Based Compensation Arrangement By Share Based Payment Award Line Items  
Unvested at December 31, 2021 | shares 2,076
Granted, awards and units | shares 964
Vested, awards and units | shares (1,194)
Forfeited, awards and units | shares (5)
Unvested at December 31, 2022 | shares 1,841 [1]
Unvested weighted average grant-date fair value at December 31, 2021 | $ / shares $ 24.12
Granted, weighted average grant-date fair value | $ / shares 44.05 [2]
Vested, weighted average grant-date fair value | $ / shares 28.91
Forfeited, weighted average grant-date fair value | $ / shares 68.68
Unvested weighted average grant-date fair value at December 31, 2022 | $ / shares $ 31.33
[1] A maximum of 3.7 million common shares could be awarded based upon Devon’s final TSR ranking.
[2] These grants also include the impact of performance share units granted in prior year that vested higher than 100% target due to Devon's TSR performance compared to applicable peers.
v3.22.4
Share-Based Compensation (Summary of Unvested Restricted Stock Awards, Performance-Based Restricted Stock Awards And Performance Share Units) (Parenthetical) (Details)
shares in Millions
 12 Months Ended
Jan. 07, 2021
Dec. 31, 2022
shares
Share Based Compensation Arrangement By Share Based Payment Award Line Items    
Conversion of common stock into right to received per share 0.5165  
Performance Share Units [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%
Performance Share Units [Member] | Maximum [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   200.00%
Maximum common shares that could be awarded based upon total shareholder return   3.7
Performance Share Units [Member] | Minimum [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   0.00%
Devon and WPX Agreement [Member]    
Share Based Compensation Arrangement By Share Based Payment Award Line Items    
Conversion of common stock into right to received per share 0.5165  
v3.22.4
Share-Based Compensation (Schedule of Aggregate Fair Value of Restricted Stock, Performance-Based Restricted Stock And Performance Shares, Awards And Units, That Vested During The Period) (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Restricted Stock Awards [Member]      
Share Based Compensation Arrangement By Share Based Payment Award Line Items      
Aggregate fair value of awards and units, vested $ 180 $ 115 $ 44
Performance-Based Restricted Stock Awards [Member]      
Share Based Compensation Arrangement By Share Based Payment Award Line Items      
Aggregate fair value of awards and units, vested 0 1 2
Performance Share Units [Member]      
Share Based Compensation Arrangement By Share Based Payment Award Line Items      
Aggregate fair value of awards and units, vested $ 62 $ 15 $ 10
v3.22.4
Share-Based Compensation (Summary of Unrecognized Compensation Cost And Weighted Average Period For Recognition) (Details)
 12 Months Ended
Dec. 31, 2022
USD ($)
Performance Share Units [Member]  
Unrecognized Compensation And Weighted Average Recognition [Line Items]  
Unrecognized compensation cost $ 18
Weighted average period for recognition (years) 1 year 7 months 6 days
Restricted Stock Units (RSUs) [Member]  
Unrecognized Compensation And Weighted Average Recognition [Line Items]  
Unrecognized compensation cost $ 85
Weighted average period for recognition (years) 2 years 6 months
v3.22.4
Share-Based Compensation (Summary of Performance Share Units Grant-Date Fair Values And Their Related Assumptions) (Details) - $ / shares
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Performance Share Units [Member]      
Share Based Compensation Arrangement By Share Based Payment Award Line Items      
Grant-date fair value [1] $ 44.05    
Risk-free interest rate 1.81% 0.18% 1.36%
Volatility factor 70.10% 67.80% 38.40%
Contractual term (years) 2 years 10 months 20 days 2 years 10 months 20 days 2 years 10 months 20 days
Including Performance Factor Shares Granted [Member]      
Share Based Compensation Arrangement By Share Based Payment Award Line Items      
Grant-date fair value $ 68.68 $ 18.08 $ 27.89
[1] These grants also include the impact of performance share units granted in prior year that vested higher than 100% target due to Devon's TSR performance compared to applicable peers.
v3.22.4
Asset Impairments (Summary of Asset Impairments) (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Impaired Long Lived Assets Held And Used [Line Items]      
Asset impairment charges $ 0 $ 0 $ 2,693
Unproved impairments 29 14 167
Proved Oil and Gas Assets [Member]      
Impaired Long Lived Assets Held And Used [Line Items]      
Asset impairment charges     2,664
Other Assets [Member]      
Impaired Long Lived Assets Held And Used [Line Items]      
Asset impairment charges     29
Unproved Impairments [Member]      
Impaired Long Lived Assets Held And Used [Line Items]      
Unproved impairments $ 12 $ 4 $ 152
v3.22.4
Asset Impairments (Narrative) (Details)
$ in Millions
 3 Months Ended 12 Months Ended
Mar. 31, 2020
USD ($)
$ / Mcf
$ / bbl
Dec. 31, 2022
USD ($)
Dec. 31, 2021
USD ($)
Dec. 31, 2020
USD ($)
Impaired Long Lived Assets Held And Used [Line Items]        
Capital investment percentage 45.00%      
Percentage of weighted average cost inventory       9.00%
Asset impairments   $ 0 $ 0 $ 2,693
Exploration expenses   29 14 167
Proved Asset Impairments [Member]        
Impaired Long Lived Assets Held And Used [Line Items]        
Asset impairments $ 2,700      
Non-oil and Gas Asset Impairments [Member]        
Impaired Long Lived Assets Held And Used [Line Items]        
Asset impairments       29
Unproved Impairments [Member]        
Impaired Long Lived Assets Held And Used [Line Items]        
Exploration expenses   $ 12 $ 4 $ 152
WTI [Member]        
Impaired Long Lived Assets Held And Used [Line Items]        
Oil and gas average sale price | $ / bbl 39      
WTI [Member] | Minimum [Member]        
Impaired Long Lived Assets Held And Used [Line Items]        
Oil and gas average sale price | $ / bbl 23      
WTI [Member] | Maximum [Member]        
Impaired Long Lived Assets Held And Used [Line Items]        
Oil and gas average sale price | $ / bbl 50      
Henry Hub [Member]        
Impaired Long Lived Assets Held And Used [Line Items]        
Oil and gas average sale price | $ / Mcf 1.85      
Henry Hub [Member] | Minimum [Member]        
Impaired Long Lived Assets Held And Used [Line Items]        
Oil and gas average sale price | $ / Mcf 1.29      
Henry Hub [Member] | Maximum [Member]        
Impaired Long Lived Assets Held And Used [Line Items]        
Oil and gas average sale price | $ / Mcf 2.63      
v3.22.4
Restructuring and Transaction Costs - (Schedule Of Restructuring And Transaction Costs) (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Restructuring Cost And Reserve [Line Items]      
Restructuring costs $ 0 $ 258 $ 49
Restructuring Costs [Member]      
Restructuring Cost And Reserve [Line Items]      
Restructuring costs 0 210 41
Transaction Costs [Member]      
Restructuring Cost And Reserve [Line Items]      
Restructuring costs $ 0 $ 48 $ 8
v3.22.4
Restructuring and Transaction Costs (Narrative) (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Restructuring Cost And Reserve [Line Items]      
Restructuring and transaction costs $ 0 $ 258 $ 49
Merger Integration [Member]      
Restructuring Cost And Reserve [Line Items]      
Restructuring and transaction costs   210  
Noncash restructuring costs   21  
Transaction Costs [Member]      
Restructuring Cost And Reserve [Line Items]      
Underwriting, bank, legal and accounting fees   48  
Reduction of workforce [Member]      
Restructuring Cost And Reserve [Line Items]      
Noncash restructuring costs   66 11
Reduction of workforce [Member] | Defined Benefit Settlements [Member]      
Restructuring Cost And Reserve [Line Items]      
Restructuring and transaction costs   $ 41 9
Reduction of workforce [Member] | Employee Related Costs [Member]      
Restructuring Cost And Reserve [Line Items]      
Restructuring and transaction costs     $ 41
v3.22.4
Restructuring and Transaction Costs (Schedule Of The Activity And Balances Associated With Restructuring Liabilities) (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Restructuring Cost And Reserve [Line Items]    
Beginning balance $ 149 $ 172
Changes related to prior years' restructurings (34) (23)
Ending balance 115 149
Other Current Liabilities [Member]    
Restructuring Cost And Reserve [Line Items]    
Beginning balance 38 35
Ending balance 34 38
Other Current Liabilities [Member] | Prior years' restructurings [Member]    
Restructuring Cost And Reserve [Line Items]    
Changes related to prior years' restructurings (4) 3
Other Long-Term Liabilities [Member]    
Restructuring Cost And Reserve [Line Items]    
Beginning balance 111 137
Ending balance 81 111
Other Long-Term Liabilities [Member] | Prior years' restructurings [Member]    
Restructuring Cost And Reserve [Line Items]    
Changes related to prior years' restructurings $ (30) $ (26)
v3.22.4
Other, Net -Summary Of Other Expenses (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Other Expenses [Abstract]      
Estimated future obligation under a performance guarantee $ (144) $ (18) $ 0
Ukraine charitable pledge 20 0 0
Accretion expense on discounted obligation 25 28 20
Severance and other non-income tax refunds (5) (39) (40)
Other 9 (14) (14)
Total $ (95) $ (43) $ (34)
v3.22.4
Other, Net -Additional Information (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Other Expenses [Abstract]      
Estimated future obligation under a performance guarantee $ (144) $ (18) $ 0
Satisfaction of future obligation under performance guarantee 35    
Reduction in estimated exposure of future obligation under performance guarantee 65    
Ukraine charitable pledge 20 0 0
Severance and other non-income tax refunds 5 $ 39 $ 40
Reimbursement of shortfall payments and related accrued interest $ 44    
v3.22.4
Income Taxes (Schedule Of Income Tax Expense (Benefit) (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Current income tax expense (benefit):      
United States Federal, current income tax expense (benefit) $ 501 $ 10 $ (219)
Various states, current income tax expense (benefit) 65 9  
Canada, current income tax expense (benefit) (7) (3)  
Total current income tax expense (benefit) 559 16 (219)
Deferred income tax expense (benefit):      
United States Federal, deferred income tax expense (benefit) 1,090 18 (304)
Various states, deferred income tax expense (benefit) 82 22 (24)
Canada,deferred income tax expense (benefit) 7 9  
Total deferred income tax expense (benefit) 1,179 49 (328)
Total income tax expense (benefit) $ 1,738 $ 65 $ (547)
v3.22.4
Income Taxes (Schedule Of Effective Income Tax Rate Reconciliation) (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Income Tax Disclosure [Abstract]      
Earnings (loss) from continuing operations before income taxes $ 7,775 $ 2,898 $ (3,090)
U.S. statutory income tax rate 21.00% 21.00% 21.00%
Change in tax legislation 0.00% 0.00% 4.00%
State income taxes 1.00% 1.00% 1.00%
Other 0.00% 2.00% (1.00%)
Deferred tax asset valuation allowance 0.00% (22.00%) (7.00%)
Effective income tax rate 22.00% 2.00% 18.00%
v3.22.4
Income Taxes (Narrative) (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Aug. 16, 2022
Mar. 31, 2021
Jan. 07, 2021
Income Tax [Line Items]            
Corporate alternative minimum tax       15.00%    
Deferred income taxes           $ 249
Federal valuation allowance amount removed $ 814 $ 893        
Income tax expense (benefit) 1,738 65 $ (547)      
Current income tax expense (benefit) 559 16 (219)      
Deferred income tax expense (benefit) 1,179 49 $ (328)      
Valuation allowance against deferred tax assets, percent     100.00%      
Unrecognized tax benefits increased 51          
Net operating loss carryforwards, deferred tax assets 526 1,075        
Net operating loss carryforwards 22          
Unrecognized tax benefits, interest expense (benefit) 0          
Unrecognized tax benefit that would impact effective tax rate 73 36        
Unrecognized tax benefits, decrease resulting from current period tax positions 42 5        
Deferred unrecognized tax benefits   42        
Severance and other non-income tax refunds 5 39 $ 40      
CARES Act [Member]            
Income Tax [Line Items]            
Income tax expense (benefit)     (113)      
Current income tax expense (benefit)     (220)      
Deferred income tax expense (benefit)     $ 107      
United States Federal [Member]            
Income Tax [Line Items]            
Federal valuation allowance amount removed 268          
Net operating loss carryforwards 221          
United States Federal [Member] | Expires between 2030 and 2037 [Member]            
Income Tax [Line Items]            
Net operating loss carryforwards 199          
Various U.S. States [Member]            
Income Tax [Line Items]            
Net operating loss carryforwards 305          
WPX Merger [Member]            
Income Tax [Line Items]            
Deferred income taxes $ 1       $ 250  
WPX Merger [Member] | United States Federal [Member]            
Income Tax [Line Items]            
Federal valuation allowance amount removed   $ 84        
v3.22.4
Income Taxes (Schedule Of Deferred Tax Assets And Liabilities) (Details) - USD ($)
$ in Millions
Dec. 31, 2022
Dec. 31, 2021
Income Tax Disclosure [Abstract]    
Deferred tax assets, net operating loss carryforwards $ 526 $ 1,075
Capital loss carryforwards 523 559
Deferred tax assets, accrued liabilities 209 262
Fair value of derivative financial instruments 0 129
Deferred tax assets, asset retirement obligations 119 109
Other, including tax credits 14 138
Total deferred tax assets before valuation allowance 1,391 2,272
Less: valuation allowance (814) (893)
Net deferred tax assets 577 1,379
Deferred tax liabilities, property and equipment (1,969) (1,630)
Deferred tax liabilities, fair value of derivative financial instruments (33) 0
Deferred tax liabilities, other (38) (29)
Total deferred tax liabilities (2,040) (1,659)
Net deferred tax asset (liability) $ (1,463) $ (280)
v3.22.4
Income Taxes (Schedule Of Changes In Unrecognized Tax Benefits) (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Income Tax Disclosure [Abstract]    
Unrecognized tax benefits, Balance at beginning of year $ 36 $ 23
Unrecognized tax benefits, Tax positions taken in prior periods (increase) 51  
Tax positions taken in prior periods 42 5
Assumed WPX tax positions taken in prior periods 0 8
Settlements 14 0
Unrecognized tax benefits, Balance at end of year $ 73 $ 36
v3.22.4
Income Taxes (Summary Of The Tax Years By Jurisdiction That Remain Subject To Examination By Taxing Authorities) (Details)
 12 Months Ended
Dec. 31, 2022
Minimum [Member] | United States Federal [Member]  
Tax years open 2015
Maximum [Member] | United States Federal [Member]  
Tax years open 2022
Various U.S. States [Member] | Minimum [Member]  
Tax years open 2018
Various U.S. States [Member] | Maximum [Member]  
Tax years open 2022
Canada [Member] | Minimum [Member]  
Tax years open 2006
Canada [Member] | Maximum [Member]  
Tax years open 2022
v3.22.4
Net Earnings (Loss) Per Share from Continuing Operations (Net Earnings (Loss) Per Share Computations from Continuing Operations) (Details) - USD ($)
$ / shares in Units, shares in Millions, $ in Millions
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Net earnings (loss) from continuing operations:      
Net earnings (loss) from continuing operations $ 6,015 $ 2,813 $ (2,552)
Attributable to participating securities (57) (30) (4)
Basic and diluted earnings (loss) from continuing operations $ 5,958 $ 2,783 $ (2,556)
Common shares:      
Common shares outstanding - total 657 670 383
Attributable to participating securities (6) (7) (6)
Common shares outstanding - basic 651 663 377
Dilutive effect of potential common shares issuable 2 2 0
Common shares outstanding - diluted 653 665 377
Net earnings (loss) per share from continuing operations:      
Basic $ 9.15 $ 4.20 $ (6.78)
Diluted $ 9.12 $ 4.19 $ (6.78)
v3.22.4
Other Comprehensive Earnings (loss) (Components Of Other Comprehensive Earnings (loss)) (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Pension and postretirement benefit plans:      
Beginning accumulated pension and postretirement benefits $ (132) $ (127) $ (119)
Net actuarial gain (loss) and prior service cost arising in current year 15 (35) (34)
Recognition of net actuarial loss and prior service cost in earnings [1] 6 3 7
Curtailment and settlement of pension benefits [2] 0 19 16
Other [3] 0 7 0
Income tax benefit (expense) (5) 1 3
Accumulated other comprehensive loss, net of tax $ (116) $ (132) $ (127)
[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. See Note 17 for additional details.
[2] In 2021, the Merger triggered settlement payments to certain plan participants, and the expense associated with this settlement is recognized as a component of restructuring and transaction costs in the accompanying consolidated statements of comprehensive earnings.
[3] Other includes a remeasurement of the pension obligation due to the Merger, which was partially offset by a change in mortality assumption.
v3.22.4
Supplemental Information to Statements Of Cash Flows (Schedule Of Supplemental Information To Statements Of Cash Flows) (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Changes in assets and liabilities, net:      
Accounts receivable $ (142) $ (526) $ 231
Other current assets (119) 30 (97)
Other long-term assets 90 12 (9)
Accounts payable and revenues and royalties payable 152 539 (109)
Other current liabilities (97) (18) (68)
Other long-term liabilities (110) (153) (43)
Total 226 116 95
Supplementary cash flow data - total operations:      
Interest paid 370 404 259
Income taxes paid (refunded) $ 438 $ (116) $ 171
v3.22.4
Supplemental Information to Statements Of Cash Flows (Narrative) (Details) - USD ($)
$ in Millions
Dec. 31, 2022
Dec. 31, 2021
Supplemental Cash Flow Elements [Abstract]    
Accrued capital expenditures $ 413 $ 205
v3.22.4
Accounts Receivable (Schedule Of Components Of Accounts Receivable) (Details) - USD ($)
$ in Millions
Dec. 31, 2022
Dec. 31, 2021
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Joint interest billings $ 162 $ 158
Other 33 38
Gross accounts receivable 1,776 1,550
Allowance for doubtful accounts (9) (7)
Net accounts receivable 1,767 1,543
Oil, Gas and NGL Sales [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Gross accounts receivable 1,153 984
Marketing and Midstream Revenues [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Gross accounts receivable $ 428 $ 370
v3.22.4
Property, Plant and Equipment (Schedule of Property and Equipment, net) (Details) - USD ($)
$ in Millions
Dec. 31, 2022
Dec. 31, 2021
Property and equipment:    
Proved $ 42,734 $ 38,051
Unproved and properties under development 1,548 1,081
Total oil and gas 44,282 39,132
Less accumulated DD&A (27,715) (25,596)
Oil and gas property and equipment, net 16,567 13,536
Other property and equipment 2,280 2,139
Less accumulated DD&A (741) (667)
Other property and equipment, net [1] 1,539 1,472
Total property and equipment, net $ 18,106 $ 15,008
[1] $109 million and $111 million related to CDM in 2022 and 2021, respectively.
v3.22.4
Property, Plant and Equipment (Schedule of Property and Equipment, net) (Parenthetical) (Details) - USD ($)
$ in Millions
Dec. 31, 2022
Dec. 31, 2021
Property Plant And Equipment [Line Items]    
Other property and equipment, net [1] $ 1,539 $ 1,472
CDM [Member]    
Property Plant And Equipment [Line Items]    
Other property and equipment, net $ 109 $ 111
[1] $109 million and $111 million related to CDM in 2022 and 2021, respectively.
v3.22.4
Property, Plant and Equipment (Summary of Changes in Suspended Exploratory Well Costs) (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Property, Plant and Equipment [Abstract]      
Beginning balance $ 66 $ 18 $ 82
Acquired WPX costs   34  
Additions pending determination of proved reserves 462 206 148
Charges to exploration expense (1) (2) (3)
Reclassifications to proved properties (401) (190) (209)
Ending balance $ 126 $ 66 $ 18
v3.22.4
Debt And Related Expenses (Schedule Of Debt Instruments and Balances) (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Debt Instrument [Line Items]    
Long-term debt, gross $ 6,363  
Net premium on debentures and notes 103 $ 149
Debt issuance costs (26) (30)
Total debt 6,440 6,482
Less amount classified as short-term debt 251 0
Long-term debt 6,189 6,482
8.25% due August 1, 2023 [Member]    
Debt Instrument [Line Items]    
Long-term debt, gross [1] $ 242 $ 242
Debt, maturity date Aug. 01, 2023  
Debt interest rate, stated percentage 8.25% 8.25%
5.25% due September 15, 2024 [Member]    
Debt Instrument [Line Items]    
Long-term debt, gross [1] $ 472 $ 472
Debt, maturity date Sep. 15, 2024  
Debt interest rate, stated percentage 5.25% 5.25%
5.85% due December 15, 2025 [Member]    
Debt Instrument [Line Items]    
Long-term debt, gross $ 485 $ 485
Debt, maturity date Dec. 15, 2025  
Debt interest rate, stated percentage 5.85% 5.85%
7.50% due September 15, 2027 [Member]    
Debt Instrument [Line Items]    
Long-term debt, gross [2] $ 73 $ 73
Debt, maturity date Sep. 15, 2027  
Debt interest rate, stated percentage 7.50% 7.50%
5.25% due October 15, 2027 [Member]    
Debt Instrument [Line Items]    
Long-term debt, gross [1] $ 390 $ 390
Debt, maturity date Oct. 15, 2027  
Debt interest rate, stated percentage 5.25% 5.25%
5.875% due June 15, 2028 [Member]    
Debt Instrument [Line Items]    
Long-term debt, gross [1] $ 325 $ 325
Debt, maturity date Jun. 15, 2028  
Debt interest rate, stated percentage 5.875% 5.875%
4.50% due January 15, 2030 [Member]    
Debt Instrument [Line Items]    
Long-term debt, gross [1] $ 585 $ 585
Debt, maturity date Jan. 15, 2030  
Debt interest rate, stated percentage 4.50% 4.50%
7.875% due September 30, 2031 [Member]    
Debt Instrument [Line Items]    
Long-term debt, gross $ 675 $ 675
Debt, maturity date Sep. 30, 2031  
Debt interest rate, stated percentage 7.875% 7.875%
7.95% due April 15, 2032 [Member]    
Debt Instrument [Line Items]    
Long-term debt, gross $ 366 $ 366
Debt, maturity date Apr. 15, 2032  
Debt interest rate, stated percentage 7.95% 7.95%
5.60% due July 15, 2041 [Member]    
Debt Instrument [Line Items]    
Long-term debt, gross $ 1,250 $ 1,250
Debt, maturity date Jul. 15, 2041  
Debt interest rate, stated percentage 5.60% 5.60%
4.75% due May 15, 2042 [Member]    
Debt Instrument [Line Items]    
Long-term debt, gross $ 750 $ 750
Debt, maturity date May 15, 2042  
Debt interest rate, stated percentage 4.75% 4.75%
5.00% due June 15, 2045 [Member]    
Debt Instrument [Line Items]    
Long-term debt, gross $ 750 $ 750
Debt, maturity date Jun. 15, 2045  
Debt interest rate, stated percentage 5.00% 5.00%
[1] These instruments were assumed by Devon in January 2021 in conjunction with the Merger. Approximately $50 million of these instruments remain the unsecured and unsubordinated obligation of WPX, a wholly-owned subsidiary of Devon.
[2] This instrument was assumed by Devon in April 2003 in conjunction with the merger with Ocean Energy. The fair value and effective rate of this note at the time assumed was $169 million and 6.5%, respectively. This instrument is the unsecured and unsubordinated obligation of Devon OEI Operating, L.L.C. and is guaranteed by Devon Energy Production Company, L.P. Each of these entities is a wholly-owned subsidiary of Devon.
v3.22.4
Debt And Related Expenses (Schedule Of Debt Instruments and Balances) (Parenthetical) (Details) - USD ($)
$ in Millions
 1 Months Ended
Apr. 30, 2003
Dec. 31, 2022
Debt Instrument [Line Items]    
Long-term debt, gross   $ 6,363
WPX    
Debt Instrument [Line Items]    
Long-term debt, gross   $ 50
Ocean Energy [Member]    
Debt Instrument [Line Items]    
Fair value of notes assumed $ 169  
Effective interest rate of notes 6.50%  
v3.22.4
Debt And Related Expenses (Schedule Of Debt Maturities) (Details)
$ in Millions
Dec. 31, 2022
USD ($)
Debt Disclosure [Abstract]  
2023 $ 242
2024 472
2025 485
2026 0
2027 463
Thereafter 4,701
Total $ 6,363
v3.22.4
Debt And Related Expenses (Schedule of WPX Debt assumed with the Merger) (Details) - WPX
 12 Months Ended
Dec. 31, 2022
5.25% due October 15, 2027 [Member]  
Debt Instrument [Line Items]  
Optional Redemption Oct. 15, 2022
5.875% due June 15, 2028 [Member]  
Debt Instrument [Line Items]  
Optional Redemption Jun. 15, 2023
4.50% due January 15, 2030 [Member]  
Debt Instrument [Line Items]  
Optional Redemption Jan. 15, 2025
v3.22.4
Debt And Related Expenses (Narrative) (Details)
$ in Millions
 12 Months Ended
Dec. 31, 2022
USD ($)
Dec. 31, 2021
USD ($)
Dec. 31, 2020
USD ($)
Oct. 05, 2023
USD ($)
Debt Instrument [Line Items]        
Repayments of Long-term Debt $ 0 $ 1,243 $ 0  
Early retirement of debt 0 (30) $ 0  
Charge on early retirement of debt, cash retirement costs 0 59    
Credit Facility, Commitment Fee 5      
Commercial paper 0      
Commercial Paper [Member]        
Debt Instrument [Line Items]        
Credit Facility, borrowing capacity 3,000      
Scenario Forecast [Member]        
Debt Instrument [Line Items]        
Credit Facility, borrowing capacity       $ 2,800
Senior Credit Facility [Member]        
Debt Instrument [Line Items]        
Credit Facility, borrowing capacity 3,000      
Outstanding credit facility borrowings 0      
Outstanding letters of credit $ 2      
Debt-to-capitalization ratio 0.23      
Senior Credit Facility [Member] | Maximum [Member]        
Debt Instrument [Line Items]        
Debt-to-capitalization ratio 0.65      
Senior Notes [Member]        
Debt Instrument [Line Items]        
Early retirement of debt   30    
Charge on early retirement of debt, cash retirement costs   59    
Charge on early retirement of debt, noncash charges   89    
6.00% Due 2022 [Member] | Senior Notes [Member]        
Debt Instrument [Line Items]        
Repayments of Long-term Debt   $ 43    
Debt interest rate, stated percentage   6.00%    
5.875% Due 2028 [Member] | Senior Notes [Member]        
Debt Instrument [Line Items]        
Repayments of Long-term Debt   $ 175    
Debt interest rate, stated percentage   5.875%    
4.5% Due 2030 [Member] | Senior Notes [Member]        
Debt Instrument [Line Items]        
Repayments of Long-term Debt   $ 315    
Debt interest rate, stated percentage   4.50%    
5.25% Due 2027 [Member] | Senior Notes [Member]        
Debt Instrument [Line Items]        
Repayments of Long-term Debt   $ 210    
Debt interest rate, stated percentage   5.25%    
5.75% due June 1, 2026 [Member] | Senior Notes [Member]        
Debt Instrument [Line Items]        
Repayments of Long-term Debt   $ 500    
Debt interest rate, stated percentage   5.75%    
v3.22.4
Debt And Related Expenses (Schedule of Net Financing Cost Components) (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Debt Disclosure [Abstract]      
Interest based on debt outstanding $ 370 $ 388 $ 259
Gain on early retirement of debt 0 30 0
Interest income (38) (2) (12)
Other (23) (27) 23
Total net financing costs $ 309 $ 329 $ 270
v3.22.4
Leases (Schedule of Right-of-use Assets and Lease Liabilities) (Details) - USD ($)
$ in Millions
Dec. 31, 2022
Dec. 31, 2021
Leases [Abstract]    
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] Right-of-use assets Right-of-use assets
Right-of-use assets, finance lease $ 203 $ 211
Finance lease liabilities:    
Finance Lease, Liability, Current Other current liabilities Other current liabilities
Current lease liabilities, finance lease [1] $ 8 $ 8
Finance Lease, Liability, Noncurrent Long-term lease liabilities Long-term lease liabilities
Long-term lease liabilities, finance lease $ 249 $ 247
Total lease liabilities, finance lease $ 257 $ 255
Operating Lease, Right-of-Use Asset Right-of-use assets Right-of-use assets
Right-of-use assets, operating lease $ 21 $ 24
Operating lease liabilities:    
Operating Lease, Liability, Current Other current liabilities Other current liabilities
Current lease liabilities, operating lease [1] $ 13 $ 18
Operating Lease, Liability, Noncurrent Long-term lease liabilities Long-term lease liabilities
Long-term lease liabilities, operating lease $ 8 $ 5
Total lease liabilities, operating lease 21 23
Right-of-use assets 224 235
Lease liabilities:    
Current lease liabilities [1] 21 26
Long-term lease liabilities 257 252
Total lease liabilities $ 278 $ 278
[1] Current lease liabilities are included in other current liabilities on the consolidated balance sheets.
v3.22.4
Leases (Schedule of Total Lease Cost) (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Leases [Abstract]      
Operating lease cost $ 22 $ 25 $ 10
Short-term lease cost [1] 141 89 45
Financing lease cost:      
Amortization of right-of-use assets 8 8 8
Interest on lease liabilities 11 11 11
Variable lease cost 0 (4)  
Lease income (8) (8) (8)
Net lease cost $ 173 $ 121 $ 66
[1] Short-term lease cost excludes leases with terms of one month or less.
v3.22.4
Leases (Schedule of Additional Lease Information) (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Cash outflows for lease liabilities:    
Operating cash flows, Finance lease $ 8 $ 7
Right-of-use assets obtained in exchange for new lease liabilities, Finance lease $ 20  
Weighted average remaining lease term (years), Finance lease 5 years 6 years
Weighted average discount rate, Finance lease 4.20% 4.20%
Operating cash flows, Operating lease $ 14 $ 15
Investing cash flows, Operating lease $ 9 9
Right-of-use assets obtained in exchange for new lease liabilities, Operating lease   $ 7
Weighted average remaining lease term (years), Operating lease 1 year 8 months 12 days 1 year 6 months
Weighted average discount rate, Operating lease 2.80% 1.30%
v3.22.4
Leases (Maturities of Lease Liabilities) (Details) - USD ($)
$ in Millions
Dec. 31, 2022
Dec. 31, 2021
Leases [Abstract]    
2023 $ 8  
2024 8  
2025 8  
2026 8  
2027 8  
Thereafter 272  
Total lease payments 312  
Less: interest (55)  
Present value of lease liabilities 257 $ 255
2023 13  
2024 7  
2025 1  
Total lease payments 21  
Present value of lease liabilities 21 23
2023 21  
2024 15  
2025 9  
2026 8  
2027 8  
Thereafter 272  
Total lease payments 333  
Less: interest (55)  
Present value of lease liabilities $ 278 $ 278
v3.22.4
Leases (Schedule of Expected Lease Income ) (Details)
$ in Millions
Dec. 31, 2022
USD ($)
Leases [Abstract]  
2023 $ 10
2024 10
2025 13
2026 13
2027 13
Thereafter 72
Total $ 131
v3.22.4
Asset Retirement Obligations (Summary Of Changes In Asset Retirement Obligations) (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Asset Retirement Obligation Disclosure [Abstract]      
Asset retirement obligations as of beginning of period $ 485 $ 369  
Liabilities incurred 73 134  
Liabilities settled and divested (19) (57)  
Revision of estimated obligation (35) 11  
Accretion expense on discounted obligation 25 28 $ 20
Asset retirement obligations as of end of period 529 485 $ 369
Less current portion 18 17  
Asset retirement obligations $ 511 $ 468  
v3.22.4
Asset Retirement Obligations (Narrative) (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Asset Acquisition [Line Items]    
Increase in asset retirement obligations $ 38  
Decrease in asset retirement obligations 35  
Asset retirement obligation, assumed $ (35) $ 11
WPX    
Asset Acquisition [Line Items]    
Asset retirement obligation, assumed   $ 98
v3.22.4
Retirement Plans (Narrative) (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Defined Benefit Plan Disclosure [Line Items]      
Contributions to defined contribution plans $ 37 $ 33 $ 33
Expected benefit plan payments for each of the next five years 53    
Expected total benefit plan payments for five years after the next five years 249    
Benefit plan payments expected to be funded from cash and cash equivalents and other assets for next fiscal year 15    
Pension Benefits [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets $ 458 671 $ 745
Pension Benefits [Member] | Fixed Income Securities [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Target plan asset allocations 90.00%    
Pension Benefits [Member] | Fixed Income Securities [Member] | Level 1 Inputs [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets $ 384 590  
Pension Benefits [Member] | Equity Securities [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Target plan asset allocations 10.00%    
Fair value of plan assets $ 49 67  
Pension Benefits [Member] | Other Securities [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets $ 25 $ 14  
Postretirement Benefits [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Defined benefit plan health care cost trend rate assumed for next fiscal year 6.60%    
Defined benefit plan ultimate health care cost trend rate 5.00%    
v3.22.4
Retirement Plans (Schedule of Changes In Defined Benefit Plan Obligations) (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Pension Benefits [Member]      
Change in benefit obligation:      
Benefit obligation at beginning of year $ 880 $ 981  
Service cost     $ 5
Interest cost 19 18 25
Actuarial gain (215) (18)  
Plan curtailments   22  
Plan settlements   (73)  
Benefits paid (55) (50)  
Benefit obligation at end of year 629 880 981
Change in plan assets:      
Fair value of plan assets at beginning of year 671 745  
Actual return on plan assets (172) (11)  
Employer contributions 14 60  
Plan settlements   (73)  
Benefits paid (55) (50)  
Fair value of plan assets at end of year 458 671 745
Funded status at end of year (171) (209)  
Amounts recognized in balance sheet:      
Other long-term assets   6  
Other current liabilities (14) (14)  
Other long-term liabilities (157) (201)  
Net amount (171) (209)  
Amounts recognized in accumulated other comprehensive earnings:      
Net actuarial loss (gain) 189 206  
Total 189 206  
Postretirement Benefits [Member]      
Change in benefit obligation:      
Benefit obligation at beginning of year 12 13  
Actuarial gain (4) (1)  
Plan amendments   1  
Participant contributions 1 2  
Benefits paid (2) (3)  
Benefit obligation at end of year 7 12 $ 13
Change in plan assets:      
Employer contributions 1 1  
Participant contributions 1 2  
Benefits paid (2) (3)  
Funded status at end of year (7) (12)  
Amounts recognized in balance sheet:      
Other current liabilities (1) (2)  
Other long-term liabilities (6) (9)  
Net amount (7) (11)  
Amounts recognized in accumulated other comprehensive earnings:      
Net actuarial loss (gain) (15) (12)  
Prior service cost 1 1  
Total $ (14) $ (11)  
v3.22.4
Retirement Plans (Schedule of Projected Benefit Obligation And Accumulated Benefit Obligation In Excess Of Plan Assets) (Details) - USD ($)
$ in Millions
Dec. 31, 2022
Dec. 31, 2021
Retirement Plans[Abstract]    
Projected benefit obligation $ 629 $ 215
Accumulated benefit obligation 629 $ 215
Fair value of plan assets $ 458  
v3.22.4
Retirement Plans (Schedule of Net Periodic Benefit Cost And Other Comprehensive Loss (Earnings) For Pension And Other Postretirement Benefit Plans) (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Net periodic benefit cost:      
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) Excluding Service Cost, Statement of Income or Comprehensive Income [Extensible Enumeration] Gain (Loss) on Hedging Activity Gain (Loss) on Hedging Activity Gain (Loss) on Hedging Activity
Pension Benefits [Member]      
Net periodic benefit cost:      
Service cost     $ 5
Interest cost $ 19 $ 18 25
Defined Benefit Plan, Expected Return (Loss) on Plan Assets (31) (34) (41)
Recognition of net actuarial loss (gain) (6) (4) (5)
Recognition of prior service cost     3
Total net periodic benefit cost (6) (12) (3)
Other comprehensive loss (earnings):      
Actuarial loss (gain) arising in current year 11 (28) (27)
Prior service cost arising in current year     2
Recognition of net actuarial gain (loss), including settlement expense, in net periodic benefit cost (6) (23) (9)
Recognition of prior service cost, including curtailment, in net periodic benefit cost     7
Total other comprehensive loss (earnings) (17) 5 13
Total (23) (7) 10
Postretirement Benefits [Member]      
Net periodic benefit cost:      
Recognition of net actuarial loss (gain) 1 1  
Recognition of prior service cost     (1)
Total net periodic benefit cost (1) (1) (1)
Other comprehensive loss (earnings):      
Actuarial loss (gain) arising in current year 4 1 1
Prior service cost arising in current year   1  
Recognition of net actuarial gain (loss), including settlement expense, in net periodic benefit cost 1 1 1
Recognition of prior service cost, including curtailment, in net periodic benefit cost     (1)
Total other comprehensive loss (earnings) (3) $ 1 $ 1
Total $ (4)    
v3.22.4
Retirement Plans (Schedule of Assumptions Used To Determine Benefit Obligations And Net Periodic Benefit Cost) (Details)
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Pension Benefits [Member]      
Assumptions to determine benefit obligations:      
Discount rate 5.78% 2.71% 2.38%
Rate of compensation increase     2.50%
Assumptions to determine net periodic benefit cost:      
Discount rate - service cost     3.47%
Discount rate - interest cost 2.18% 2.11% 2.75%
Rate of compensation increase     2.50%
Expected return on plan assets 4.80% 5.00% 6.00%
Postretirement Benefits [Member]      
Assumptions to determine benefit obligations:      
Discount rate 5.71% 2.34% 1.82%
Assumptions to determine net periodic benefit cost:      
Discount rate - service cost 2.83% 2.51% 3.25%
Discount rate - interest cost 1.57% 1.01% 2.31%
v3.22.4
Stockholders' Equity (Narrative) (Details) - USD ($)
$ / shares in Units, $ in Millions
 1 Months Ended 3 Months Ended
Feb. 02, 2023
Feb. 28, 2022
Feb. 28, 2023
May 31, 2022
Nov. 30, 2021
Dec. 31, 2019
Dec. 31, 2022
Sep. 30, 2022
Jun. 30, 2022
Mar. 31, 2022
Dec. 31, 2021
Sep. 30, 2021
Jun. 30, 2021
Mar. 31, 2021
Dec. 31, 2020
Sep. 30, 2020
Jun. 30, 2020
Mar. 31, 2020
Feb. 01, 2023
Stockholders Equity [Abstract]                                      
Common stock, shares authorized (in shares)             1,000,000,000.0       1,000,000,000.0                
Common stock, par value (in dollars per share)             $ 0.10       $ 0.10                
Preferred Stock, Shares Authorized             4,500,000                        
Preferred Stock, Par or Stated Value Per Share             $ 1.00                        
Dividends rate per share             $ 1.35 $ 1.55 $ 1.27 $ 1.00 $ 0.84 $ 0.49 $ 0.34 $ 0.30 $ 0.37 $ 0.11 $ 0.11 $ 0.09  
Fixed Dividend [Member]                                      
Stockholders Equity [Abstract]                                      
Percentage of increase to quarterly dividend               13.00%   45.00%                  
Dividends rate per share               $ 0.18   $ 0.16                  
Fixed Dividend [Member] | Minimum [Member]                                      
Stockholders Equity [Abstract]                                      
Dividends rate per share                                 0.09    
Fixed Dividend [Member] | Maximum [Member]                                      
Stockholders Equity [Abstract]                                      
Dividends rate per share                                 $ 0.11    
Special Dividend Paid [Member]                                      
Stockholders Equity [Abstract]                                      
Dividends rate per share                             $ 0.26        
Dividend payable amount                             $ 97        
Subsequent Event                                      
Stockholders Equity [Abstract]                                      
Dividend payable, year                                     2023
Dividends payable, per share                                     $ 0.89
Subsequent Event | Fixed Dividend [Member]                                      
Stockholders Equity [Abstract]                                      
Percentage of increase to quarterly dividend     11.00%                                
Dividends rate per share $ 0.20                                    
Dividend payable amount                                     $ 130
Subsequent Event | Fixed Dividend [Member] | Maximum [Member]                                      
Stockholders Equity [Abstract]                                      
Dividends rate per share     $ 0.20                                
Subsequent Event | Variable Dividend [Member]                                      
Stockholders Equity [Abstract]                                      
Dividend payable amount                                     $ 449
Dividends payable, per share                                     $ 0.69
Share Repurchase Program [Member]                                      
Stockholders Equity [Abstract]                                      
Share-repurchase program, authorized amount   $ 1,600     $ 1,000                            
Share-repurchase program expiration date   May 31, 2022     Dec. 31, 2022                            
1.0 Billion Dollar Share Repurchase Program Closed [Member]                                      
Stockholders Equity [Abstract]                                      
Share-repurchase program, authorized amount           $ 1,000                          
Share-repurchase program expiration date           Dec. 31, 2020                          
2.0 Billion Dollar Share Repurchase Program Open [Member]                                      
Stockholders Equity [Abstract]                                      
Share-repurchase program, authorized amount       $ 2,000                              
Share-repurchase program expiration date       May 04, 2023                              
v3.22.4
Stockholders' Equity (Summary of Purchases of Common Stock) (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Millions
 12 Months Ended 24 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2022
Dec. 31, 2020
1.0 Billion Dollar Share Repurchase Program Closed [Member]          
Stockholders Equity [Line Items]          
Total Number of Shares Purchased     2,243   2,243
Dollar Value of Shares Purchased     $ 38   $ 38
Average Price Paid per Share     $ 16.85   $ 16.85
2.0 Billion Dollar Share Repurchase Program Open [Member]          
Stockholders Equity [Line Items]          
Total Number of Shares Purchased 11,708 13,983      
Dollar Value of Shares Purchased $ 718 $ 589      
Average Price Paid per Share $ 61.36 $ 42.15      
5.0 Billion Dollar Share Repurchase Program Closed [Member]          
Stockholders Equity [Line Items]          
Total Number of Shares Purchased       25,691  
Dollar Value of Shares Purchased       $ 1,307  
Average Price Paid per Share       $ 50.90  
v3.22.4
Stockholders' Equity (Summary Of Dividends Paid On Common Stock) (Details) - USD ($)
$ / shares in Units, $ in Millions
 3 Months Ended 12 Months Ended
Dec. 31, 2022
Sep. 30, 2022
Jun. 30, 2022
Mar. 31, 2022
Dec. 31, 2021
Sep. 30, 2021
Jun. 30, 2021
Mar. 31, 2021
Dec. 31, 2020
Sep. 30, 2020
Jun. 30, 2020
Mar. 31, 2020
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Stockholders Equity [Line Items]                              
Dividends amount $ 875 $ 1,007 $ 830 $ 667 $ 554 $ 329 $ 229 $ 203 $ 138 $ 43 $ 42 $ 34 $ 3,379 $ 1,315 $ 257
Dividends rate per share $ 1.35 $ 1.55 $ 1.27 $ 1.00 $ 0.84 $ 0.49 $ 0.34 $ 0.30 $ 0.37 $ 0.11 $ 0.11 $ 0.09      
Fixed Dividend [Member]                              
Stockholders Equity [Line Items]                              
Dividends amount $ 117 $ 117 $ 105 $ 109 $ 73 $ 74 $ 75 $ 76 $ 41 $ 43 $ 42 $ 34 448 298 160
Dividends rate per share   $ 0.18   $ 0.16                      
Variable Dividend [Member]                              
Stockholders Equity [Line Items]                              
Dividends amount $ 758 $ 890 $ 725 $ 558 $ 481 $ 255 $ 154 $ 127 $ 97       $ 2,931 $ 1,017 $ 97
v3.22.4
Discontinued Operations (Narrative) (Details)
$ in Millions
 3 Months Ended 12 Months Ended 48 Months Ended
Oct. 01, 2020
USD ($)
$ / MMBTU
$ / bbl
Mar. 31, 2023
USD ($)
Mar. 31, 2022
USD ($)
Dec. 31, 2020
USD ($)
$ / MMBTU
$ / bbl
Dec. 31, 2022
USD ($)
Dec. 31, 2021
USD ($)
Dec. 31, 2020
USD ($)
Dec. 31, 2024
USD ($)
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items]                
Asset impairments             $ 182  
Gain on asset dispositions             (1)  
Charge on early retirement of debt, cash retirement costs         $ 0 $ 59    
Senior Notes [Member]                
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items]                
Charge on early retirement of debt, cash retirement costs           59    
Barnett Shale [Member]                
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items]                
Asset impairments             $ 182  
Divestitures of property and equipment       $ 490        
Contingent earnout payments     $ 65   130      
Henry Hub gas price for contingent earnout payment upside | $ / MMBTU       2.75        
WTI oil price for contingent earnout payment upside | $ / bbl       50        
Contingent earnout payments received     $ 65          
Gain on asset dispositions         42 $ 110    
Barnett Shale [Member] | Subsequent Event                
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items]                
Contingent earnout payments   $ 65            
Contingent earnout payments received   $ 65            
Barnett Shale [Member] | Other Current Assets                
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items]                
Contingent earnout payments         65      
Contingent payments valuation         65      
Barnett Shale [Member] | Other Noncurrent Assets                
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items]                
Contingent earnout payments         88      
Contingent payments valuation         $ 88      
Barnett Shale [Member] | Scenario Forecast [Member]                
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items]                
Contingent earnout payment period               The contingent payment period commenced on January 1, 2021 and has a term of four years.
Barnett Shale [Member] | BKV [Member]                
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items]                
Divestitures of property and equipment $ 490              
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.      
Barnett Shale [Member] | BKV [Member] | Scenario Forecast [Member] | Maximum [Member]                
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items]                
Contingent earnout payments               $ 260
v3.22.4
Discontinued Operations (Amounts Reported as Discontinued Operations in the Consolidated Statements of Comprehensive Earnings) (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items]      
Oil, gas and NGL sales     $ 263
Total revenues     263
Production expenses     214
Asset impairments     182
Asset dispositions     1
General and administrative expenses     3
Financing costs, net     (3)
Restructuring and transaction costs     9
Other expenses     9
Total expenses     415
Loss from discontinued operations before income taxes     (152)
Income tax expense (benefit)     (24)
Loss from discontinued operations, net of tax $ 0 $ 0 $ (128)
v3.22.4
Commitments And Contingencies (Schedule Of Commitments And Contingencies) (Details)
$ in Millions
Dec. 31, 2022
USD ($)
Drilling And Facility Obligations [Member]  
Long Term Purchase Commitment [Line Items]  
2023 $ 273
2024 42
2025 21
2026 12
2027 19
Thereafter 15
Total 382
Operational Agreements [Member]  
Long Term Purchase Commitment [Line Items]  
2023 470
2024 491
2025 464
2026 423
2027 294
Thereafter 1,072
Total 3,214
Office and Equipment Leases and Other [Member]  
Long Term Purchase Commitment [Line Items]  
2023 118
2024 62
2025 47
2026 23
2027 24
Thereafter 341
Total $ 615
v3.22.4
Fair Value Measurements (Schedule Of Carrying Value And Fair Value Measurement Information For Financial Assets And Liabilities) (Details) - USD ($)
$ in Millions
Dec. 31, 2022
Dec. 31, 2021
Carrying Amount [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash equivalents $ 708 $ 1,421
Debt (6,440) (6,482)
Contingent earnout payments 157 184
Carrying Amount [Member] | Commodity Derivatives [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivatives, assets 131 8
Derivatives, liabilities (3) (577)
Total Fair Value [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash equivalents 708 1,421
Debt (6,231) (7,644)
Contingent earnout payments 157 184
Total Fair Value [Member] | Commodity Derivatives [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivatives, assets 131 8
Derivatives, liabilities (3) (577)
Level 1 Inputs [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash equivalents 708 1,421
Level 2 Inputs [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Debt (6,231) (7,644)
Level 2 Inputs [Member] | Commodity Derivatives [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivatives, assets 131 8
Derivatives, liabilities (3) (577)
Level 3 Inputs [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Contingent earnout payments $ 157 $ 184
v3.22.4
Supplemental Information on Oil and Gas Operations (Unaudited) (Costs Incurred) (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Property acquisition costs:      
Proved properties $ 1,760 $ 7,017  
Unproved properties 803 2,381 $ 8
Exploration costs 472 212 159
Development costs 2,132 1,643 820
Costs incurred $ 5,167 $ 11,253 $ 987
v3.22.4
Supplemental Information on Oil and Gas Operations (Unaudited) (Results Of Operations) (Details)
$ in Millions
 12 Months Ended
Dec. 31, 2022
USD ($)
$ / Boe
Dec. 31, 2021
USD ($)
$ / Boe
Dec. 31, 2020
USD ($)
$ / Boe
Oil and Gas Exploration and Production Industries Disclosures [Abstract]      
Oil, gas and NGL sales $ 14,082 $ 9,531 $ 2,695
Production expenses (2,797) (2,131) (1,123)
Exploration expenses (29) (14) (167)
Depreciation, depletion and amortization (2,119) (2,050) (1,207)
Asset dispositions 43 170  
Asset impairments     (2,664)
Accretion of asset retirement obligations (25) (28) (20)
Income tax expense (2,041) (1,238)  
Results of operations $ 7,114 $ 4,240 $ (2,486)
Depreciation, depletion and amortization per Boe | $ / Boe 9.52 9.83 9.90
v3.22.4
Supplemental Information on Oil and Gas Operations (Unaudited) (Proved Developed and Undeveloped Reserves) (Details)
MMBbls in Thousands, MMcf in Millions
 12 Months Ended
Dec. 31, 2022
MMBoe
MMBbls
MMcf
Dec. 31, 2021
MMBoe
MMcf
MMBbls
Dec. 31, 2020
MMBoe
MMBbls
MMcf
Dec. 31, 2019
MMBoe
MMBbls
MMcf
Reserve Quantities [Line Items]        
Proved developed and undeveloped reserves, beginning balance | MMBoe 1,625 752 757  
Proved developed and undeveloped reserves, revisions due to prices | MMBoe 34 155 78  
Proved developed and undeveloped reserves, revisions other than price | MMBoe 49 43 55  
Proved developed and undeveloped reserves, extensions and discoveries | MMBoe 278 228 135  
Proved developed and undeveloped reserves, Purchase of reserves | MMBoe 153 663 7  
Proved developed and undeveloped reserves, production | MMBoe (223) (209) (122)  
Proved developed and undeveloped reserves, sale of reserves | MMBoe (3) (7) (2)  
Proved developed and undeveloped reserves, ending balance | MMBoe 1,815 1,625 752  
Proved developed reserves | MMBoe 1,419 1,285 574 589
Proved developed producing reserves | MMBoe 1,397 1,260 564 578
Proved undeveloped reserves | MMBoe 396 340 178 168
Conversion rate of gas reserves from barrels of oil to Boe 6      
Oil [Member]        
Reserve Quantities [Line Items]        
Proved developed and undeveloped reserves, beginning balance 709 282 276  
Proved developed and undeveloped reserves, revisions due to prices 15 55 (26)  
Proved developed and undeveloped reserves, revisions other than price (55) (23) 18  
Proved developed and undeveloped reserves, extensions and discoveries 127 112 71  
Proved developed and undeveloped reserves, Purchase of reserves 106 393 1  
Proved developed and undeveloped reserves, production (109) (106) (57)  
Proved developed and undeveloped reserves, sale of reserves 0 (4) (1)  
Proved developed and undeveloped reserves, ending balance 793 709 282  
Proved developed reserves 596 544 194 198
Proved developed producing reserves 585 533 190 191
Proved undeveloped reserves 197 165 88 78
Natural Gas [Member]        
Reserve Quantities [Line Items]        
Proved developed and undeveloped reserves, beginning balance | MMcf [1] 2,878 1,512 1,621  
Proved developed and undeveloped reserves, revisions due to prices | MMcf [1] 61 382 (209)  
Proved developed and undeveloped reserves, revisions other than price | MMcf [1] 13 11 119  
Proved developed and undeveloped reserves, extensions and discoveries | MMcf [1] 449 348 188  
Proved developed and undeveloped reserves, Purchase of reserves | MMcf [1] 137 961 19  
Proved developed and undeveloped reserves, production | MMcf [1] (356) (325) (221)  
Proved developed and undeveloped reserves, sale of reserves | MMcf [1] (7) (11) (5)  
Proved developed and undeveloped reserves, ending balance | MMcf [1] 3,175 2,878 1,512  
Proved developed reserves | MMcf [1] 2,595 2,361 1,244 1,344
Proved developed producing reserves | MMcf [1] 2,553 2,316 1,223 1,327
Proved undeveloped reserves | MMcf [1] 580 517 268 277
Natural Gas Liquids [Member]        
Reserve Quantities [Line Items]        
Proved developed and undeveloped reserves, beginning balance 437 218 211  
Proved developed and undeveloped reserves, revisions due to prices 8 36 (17)  
Proved developed and undeveloped reserves, revisions other than price 3 64 17  
Proved developed and undeveloped reserves, extensions and discoveries 76 58 33  
Proved developed and undeveloped reserves, Purchase of reserves 24 110 3  
Proved developed and undeveloped reserves, production (54) (48) (28)  
Proved developed and undeveloped reserves, sale of reserves (1) (1) (1)  
Proved developed and undeveloped reserves, ending balance 493 437 218  
Proved developed reserves 391 348 173 167
Proved developed producing reserves 387 341 171 165
Proved undeveloped reserves 102 89 45 44
[1] Gas reserves are converted to Boe at the rate of six Mcf per Bbl of oil, based upon the approximate relative energy content of gas and oil. NGL reserves are converted to Boe on a one-to-one basis with oil. The conversion rates are not necessarily indicative of the relationship of oil, natural gas and NGL prices.
v3.22.4
Supplemental Information on Oil and Gas Operations (Unaudited) (Narrative) (Details)
$ in Millions
 12 Months Ended
Dec. 31, 2022
USD ($)
MMBoe
$ / bbl
$ / Mcf
Dec. 31, 2021
USD ($)
MMBoe
Dec. 31, 2020
USD ($)
MMBoe
Dec. 31, 2025
USD ($)
Dec. 31, 2024
USD ($)
Dec. 31, 2023
USD ($)
Reserve Quantities [Line Items]            
Proved developed and undeveloped reserves, revisions due to prices 34 155 78      
Proved developed and undeveloped reserves, revisions other than price (MMBoe) (49) 43 55      
Proved developed and undeveloped reserves, additional downward revisions other than price(MMBoe)   10 20      
Proved developed and undeveloped reserves, extensions and discoveries 278 228 135      
Proved developed and undeveloped reserves revisions due to change in previously adopted development plans 22          
Proved developed and undeveloped reserves, Purchase of reserves 153 663 7      
Proved undeveloped reserves increased percentage 16.00%          
Proved undeveloped reserves as percentage of entire proved reserves 22.00%          
Purchased reserves related to acquisition, energy 44          
Proved undeveloped reserves due to drilling and development activities (MMBoe) 176          
Proved undeveloped reserves, conversion to proved developed reserves (MMBoe) 127          
Cost incurred related to development and conversion of proved undeveloped reserves | $ $ 866          
Proved undeveloped reserves revisions other than price 39          
Proved Undeveloped Reserves Revisions with Additional Revisions (17)          
Average estimated future realized price per barrel of oil used to estimate future cash inflows for proved oil reserves | $ / bbl 93.53          
Average estimated future realized price per Mcf of gas used to estimate future cash inflows for proved gas reserves | $ / Mcf 5.41          
Average estimated future realized price per barrel of natural gas liquids used to estimate future cash inflows for proved NGL reserves | $ / bbl 34.58          
Future development costs | $ $ 5,176 $ 3,689 $ 1,747      
Future dismantlement, abandonment and rehabilitation costs | $ $ 800          
Scenario Forecast [Member]            
Reserve Quantities [Line Items]            
Future development costs | $       $ 700 $ 1,200 $ 1,700
Maximum [Member]            
Reserve Quantities [Line Items]            
Proved developed and undeveloped reserves, revisions other than price (MMBoe)   53 75      
Delaware Basin            
Reserve Quantities [Line Items]            
Proved developed and undeveloped reserves, revisions other than price (MMBoe) 33 23 40      
Proved developed and undeveloped reserves, extensions and discoveries 255 209 117      
Proved developed and undeveloped reserves, Purchase of reserves   538        
Proved undeveloped reserves percentage 80.00%          
Percentage of extensions and discoveries proved undeveloped reserves 97.00%          
Delaware Basin | Maximum [Member]            
Reserve Quantities [Line Items]            
Proved undeveloped reserves revisions other than price (9)          
Williston Basin            
Reserve Quantities [Line Items]            
Proved developed and undeveloped reserves, revisions other than price (MMBoe)   12        
Proved developed and undeveloped reserves, extensions and discoveries 5 6        
Proved developed and undeveloped reserves, Purchase of reserves 66 125        
Percentage of purchase reserves related to acquisition 51.00%          
STACK [Member]            
Reserve Quantities [Line Items]            
Proved developed and undeveloped reserves, revisions other than price (MMBoe)   12 22      
Proved developed and undeveloped reserves, extensions and discoveries 5 8 8      
Eagle Ford [Member]            
Reserve Quantities [Line Items]            
Proved developed and undeveloped reserves, extensions and discoveries 6 3 5      
Proved developed and undeveloped reserves, Purchase of reserves 87          
Percentage of purchase reserves related to acquisition 49.00%          
Powder River Basin [Member]            
Reserve Quantities [Line Items]            
Proved developed and undeveloped reserves, revisions other than price (MMBoe) 5          
Proved developed and undeveloped reserves, extensions and discoveries 7 2 5      
Powder River Basin [Member] | Maximum [Member]            
Reserve Quantities [Line Items]            
Proved undeveloped reserves revisions other than price (6)          
Anadarko Basin            
Reserve Quantities [Line Items]            
Proved developed and undeveloped reserves, revisions other than price (MMBoe) 4          
Anadarko Basin | Maximum [Member]            
Reserve Quantities [Line Items]            
Proved undeveloped reserves revisions other than price (7)          
v3.22.4
Supplemental Information on Oil and Gas Operations (Unaudited) (Proved Undeveloped Reserves) (Details)
 12 Months Ended
Dec. 31, 2022
MMBoe
Reserve Quantities [Line Items]  
Proved undeveloped reserves (MMBoe) beginning balance 340
Proved undeveloped reserves, extensions and discoveries 176
Proved undeveloped reserves, revisions due to prices 2
Proved undeveloped reserves, revisions other than price (39)
Proved undeveloped reserves, Purchase of reserves 44
Proved undeveloped reserves, conversion to proved developed reserves (127)
Proved undeveloped reserves (MMBoe) ending balance 396
v3.22.4
Supplemental Information on Oil and Gas Operations (Unaudited) (Standardized Measure Of Discounted Future Net Cash Flows Related To Proved Reserves) (Details) - USD ($)
$ in Millions
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Oil and Gas Exploration and Production Industries Disclosures [Abstract]        
Future cash inflows $ 108,361 $ 66,321 $ 14,957  
Future costs:        
Development (5,176) (3,689) (1,747)  
Production (35,264) (22,975) (7,964)  
Future income tax expense 13,216 (6,423)    
Future net cash flow 54,705 33,234 5,246  
10% discount to reflect timing of cash flows (23,391) (13,933) (1,774)  
Standardized measure of discounted future net cash flows $ 31,314 $ 19,301 $ 3,472 $ 5,398
v3.22.4
Supplemental Information on Oil and Gas Operations (Unaudited) (Schedule Of Principal Changes In The Standardized Measure Of Discounted Future Net Cash Flows Attributable To Proved Reserves) (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Supplemental Information On Oil And Gas Operations [Abstract]      
Standardized measure of discounted future net cash flows, beginning balance $ 19,301 $ 3,472 $ 5,398
Net changes in prices and production costs 14,081 8,274 (3,277)
Oil, gas and NGL sales, net of production costs (11,285) (7,400) (1,572)
Changes in estimated future development costs (216) (414) 402
Extensions and discoveries, net of future development costs 7,279 3,877 988
Purchase of reserves 4,185 12,460 23
Sales of reserves in place (20) (12) (7)
Revisions of quantity estimates (874) 838 147
Previously estimated development costs incurred during the period 956 663 537
Accretion of discount 2,059 1,218 285
Net change in income taxes and other (4,152) (3,675) 548
Standardized measure of discounted future net cash flows, ending balance $ 31,314 $ 19,301 $ 3,472