DEVON ENERGY CORP/DE, 10-Q filed on 5/7/2025
Quarterly Report
v3.25.1
Document And Entity Information - shares
shares in Millions
 3 Months Ended
Mar. 31, 2025
Apr. 23, 2025
Cover [Abstract]    
Document Type 10-Q  
Amendment Flag false  
Document Quarterly Report true  
Document Transition Report false  
Document Period End Date Mar. 31, 2025  
Document Fiscal Year Focus 2025  
Document Fiscal Period Focus Q1  
Current Fiscal Year End Date --12-31  
Entity Registrant Name DEVON ENERGY CORP/DE  
Entity Central Index Key 0001090012  
Entity Filer Category Large Accelerated Filer  
Entity Small Business false  
Entity Emerging Growth Company false  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Shell Company false  
Entity File Number 001-32318  
Entity Tax Identification Number 73-1567067  
Entity Incorporation, State or Country Code DE  
Entity Address, Address Line One 333 West Sheridan Avenue  
Entity Address, City or Town Oklahoma City  
Entity Address, State or Province OK  
Entity Address, Postal Zip Code 73102-5015  
City Area Code 405  
Local Phone Number 235-3611  
Title of 12(b) Security Common Stock, par value $0.10 per share  
Trading Symbol DVN  
Security Exchange Name NYSE  
Entity Common Stock, Shares Outstanding   642.1
v3.25.1
Consolidated Statements of Comprehensive Earnings - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2025
Mar. 31, 2024
Oil, gas and NGL sales $ 4,550 $ 3,741
Oil, gas and NGL derivatives (98) (145)
Total revenues 4,452 3,596
Production expenses 912 751
Exploration expenses 10 9
Depreciation, depletion and amortization 912 722
Asset impairments 254 0
Asset dispositions 2 1
General and administrative expenses 130 114
Financing costs, net 123 76
Other, net 27 22
Total expenses 3,806 2,828
Earnings before income taxes 646 768
Income tax expense 137 159
Net earnings 509 609
Net earnings attributable to noncontrolling interests 15 13
Net earnings attributable to Devon $ 494 $ 596
Net earnings per share:    
Basic net earnings per share $ 0.77 $ 0.95
Diluted net earnings per share $ 0.77 $ 0.94
Comprehensive earnings:    
Net earnings $ 509 $ 609
Other comprehensive earnings, net of tax:    
Pension and postretirement plans 1 1
Other comprehensive earnings, net of tax 1 1
Comprehensive earnings: 510 610
Comprehensive earnings attributable to noncontrolling interests 15 13
Comprehensive earnings attributable to Devon 495 597
Oil, Gas and NGL Sales [Member]    
Oil, gas and NGL sales 3,126 2,629
Marketing and Midstream Revenues [Member]    
Oil, gas and NGL sales 1,424 1,112
Marketing and Midstream Expenses [Member]    
Marketing and midstream expenses $ 1,436 $ 1,133
v3.25.1
Consolidated Balance Sheets - USD ($)
$ in Millions
Mar. 31, 2025
Dec. 31, 2024
ASSETS    
Cash, cash equivalents and restricted cash $ 1,234 $ 846
Accounts receivable 2,036 1,972
Inventory 332 294
Other current assets 303 315
Total current assets 3,905 3,427
Oil and gas property and equipment, based on successful efforts accounting, net 23,429 23,198
Other property and equipment, net ($189 million and $178 million related to CDM in 2025 and 2024, respectively) [1] 1,653 1,813
Total property and equipment, net 25,082 25,011
Goodwill 753 753
Right-of-use assets 127 303
Investments 713 727
Other long-term assets 348 268
Total assets 30,928 30,489
LIABILITIES AND EQUITY    
Accounts payable 923 806
Revenues and royalties payable 1,588 1,432
Short-term debt 485 485
Other current liabilities 622 586
Total current liabilities 3,618 3,309
Long-term debt 8,395 8,398
Lease liabilities 77 320
Asset retirement obligations 835 770
Other long-term liabilities 1,041 840
Deferred income taxes 2,189 2,148
Stockholders' equity:    
Common stock, $0.10 par value. Authorized 1.0 billion shares; issued 644 million and 651 million shares in 2025 and 2024, respectively 64 65
Additional paid-in capital 6,096 6,387
Retained earnings 8,506 8,166
Accumulated other comprehensive loss (121) (122)
Total stockholders’ equity attributable to Devon 14,545 14,496
Noncontrolling interests 228 208
Total equity 14,773 14,704
Total liabilities and equity $ 30,928 $ 30,489
[1] $189 million and $178 million related to CDM in 2025 and 2024, respectively.
v3.25.1
Consolidated Balance Sheets (Parenthetical) - USD ($)
shares in Millions, $ in Millions
Mar. 31, 2025
Dec. 31, 2024
Other property and equipment, net [1] $ 1,653 $ 1,813
Common stock, par value (in dollars per share) $ 0.1 $ 0.1
Common stock, shares authorized (in shares) 1,000 1,000
Common stock, shares issued (in shares) 644 651
CDM [Member]    
Other property and equipment, net $ 189 $ 178
[1] $189 million and $178 million related to CDM in 2025 and 2024, respectively.
v3.25.1
Consolidated Statements Of Cash Flows - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2025
Mar. 31, 2024
Cash flows from operating activities:    
Net earnings $ 509 $ 609
Adjustments to reconcile net earnings to net cash from operating activities:    
Depreciation, depletion and amortization 912 722
Asset impairments 254 0
Leasehold impairments 5 0
Accretion of liabilities 6 0
Total losses on commodity derivatives 98 145
Cash settlements on commodity derivatives (10) 24
Losses on asset dispositions 2 1
Deferred income tax expense 41 40
Share-based compensation 30 24
Other (22) 3
Changes in assets and liabilities, net 117 170
Net cash from operating activities 1,942 1,738
Cash flows from investing activities:    
Capital expenditures (934) (894)
Acquisitions of property and equipment (8) (8)
Divestitures of property and equipment 133 17
Distributions from investments 9 11
Contributions to investments and other (2) (47)
Net cash from investing activities (802) (921)
Cash flows from financing activities:    
Repurchases of common stock (301) (205)
Dividends paid on common stock (163) (299)
Contributions from noncontrolling interests 14 12
Distributions to noncontrolling interests (9) (7)
Repayment of finance lease (274) 0
Shares exchanged for tax withholdings and other (19) (42)
Net cash from financing activities (752) (541)
Effect of exchange rate changes on cash 0 (2)
Net change in cash, cash equivalents and restricted cash 388 274
Cash, cash equivalents and restricted cash at beginning of period 846 875
Cash, cash equivalents and restricted cash at end of period 1,234 1,149
Reconciliation of cash, cash equivalents and restricted cash:    
Cash and cash equivalents 1,198 1,126
Restricted cash 36 23
Total cash, cash equivalents and restricted cash $ 1,234 $ 1,149
v3.25.1
Consolidated Statements Of Equity - USD ($)
shares in Millions, $ in Millions
Total
Common Stock [Member]
Additional Paid-In Capital [Member]
Retained Earnings [Member]
Other Comprehensive Earnings (Loss) [Member]
Treasury Stock [Member]
Noncontrolling Interests [Member]
Balance at Dec. 31, 2023 $ 12,217 $ 64 $ 5,939 $ 6,195 $ (124) $ (13) $ 156
Balance, Shares at Dec. 31, 2023   636          
Net earnings 609     596     13
Other comprehensive earnings, net of tax 1       1    
Restricted stock grants, net of cancellations, shares   2          
Common stock repurchased (233)   (1)     (232)  
Common stock retired   $ (1) (244)     245  
Common stock retired, shares   (6)          
Common stock dividends (282)     (282)      
Share-based compensation 24   24        
Share-based compensation, shares   1          
Contributions from noncontrolling interests 12           12
Distributions to noncontrolling interests (7)           (7)
Balance at Mar. 31, 2024 12,341 $ 63 5,718 6,509 (123) 0 174
Balance, Shares at Mar. 31, 2024   633          
Balance at Dec. 31, 2024 14,704 $ 65 6,387 8,166 (122)   208
Balance, Shares at Dec. 31, 2024   651          
Net earnings 509     494     15
Other comprehensive earnings, net of tax 1       1    
Restricted stock grants, net of cancellations, shares   2          
Common stock repurchased (322)   (3)     (319)  
Common stock retired   $ (1) (318)     319  
Common stock retired, shares   (9)          
Common stock dividends (154)     (154)      
Share-based compensation 30   30        
Contributions from noncontrolling interests 14           14
Distributions to noncontrolling interests (9)           (9)
Balance at Mar. 31, 2025 $ 14,773 $ 64 $ 6,096 $ 8,506 $ (121) $ (0) $ 228
Balance, Shares at Mar. 31, 2025   644          
v3.25.1
Pay vs Performance Disclosure - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2025
Mar. 31, 2024
Pay vs Performance Disclosure    
Net Income (Loss) $ 494 $ 596
v3.25.1
Insider Trading Arrangements
 3 Months Ended
Mar. 31, 2025
Trading Arrangements, by Individual  
Rule 10b5-1 Arrangement Adopted false
Non-Rule 10b5-1 Arrangement Adopted false
Rule 10b5-1 Arrangement Terminated false
Non-Rule 10b5-1 Arrangement Terminated false
Rule 10b5-1 Arrangement Modified false
Non-Rule 10b5-1 Arrangement Modified false
v3.25.1
Summary of Significant Accounting Policies
 3 Months Ended
Mar. 31, 2025
Accounting Policies [Abstract]  
Summary of Significant Accounting Policies Summary of Significant Accounting Policies

The accompanying unaudited interim financial statements and notes of Devon have been prepared pursuant to the rules and regulations of the SEC. Pursuant to such rules and regulations, certain disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been omitted. The accompanying unaudited interim financial statements and notes should be read in conjunction with the financial statements and notes included in Devon’s 2024 Annual Report on Form 10-K. The accompanying unaudited interim financial statements in this report reflect all adjustments that are, in the opinion of management, necessary for a fair statement of Devon’s results of operations and cash flows for the three-month periods ended March 31, 2025 and 2024 and Devon’s financial position as of March 31, 2025.

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

 

Variable Interest Entity

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

 

Disaggregation of Revenue

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

 

 

 

Three Months Ended March 31,

 

 

 

2025

 

 

2024

 

Oil

 

$

2,414

 

 

$

2,189

 

Gas

 

 

309

 

 

 

128

 

NGL

 

 

403

 

 

 

312

 

Oil, gas and NGL sales

 

 

3,126

 

 

 

2,629

 

 

 

 

 

 

 

 

Oil

 

 

918

 

 

 

807

 

Gas

 

 

272

 

 

 

121

 

NGL

 

 

234

 

 

 

184

 

Marketing and midstream revenues

 

 

1,424

 

 

 

1,112

 

Total revenues from contracts with customers

 

$

4,550

 

 

$

3,741

 

 

Recently Adopted Accounting Standards

Beginning with the 2024 Annual Report on Form 10-K, Devon adopted ASU 2023-07, Improvements to Reportable Segments Disclosures. Under this ASU, the scope and frequency of segment disclosures has increased to provide investors with additional detail about information utilized by an entity's "Chief Operating Decision Maker". See Note 19 for Devon's disclosure.

 

Recently Issued Accounting Standards Not Yet Adopted

In December 2023, the FASB issued ASU 2023-09, Improvements to Income Tax Disclosures. ASU 2023-09 intends to provide investors with enhanced information about an entity’s income taxes by requiring disclosure of items such as disaggregation of the effective tax rate reconciliation as well as information regarding income taxes paid. This ASU will result in additional disclosures for annual reporting periods beginning after December 15, 2024, with early adoption permitted for annual financial statements that have

not yet been issued. This ASU will result in additional disclosures for Devon beginning with our 2025 annual reporting and interim periods beginning in 2026.

In November 2024, the FASB issued ASU 2024-03, Disaggregation of Income Statement Expenses. ASU 2024-03 requires disclosures about specific types of expenses included in the expense captions presented on the face of the statement of operations as well as disclosures about selling expenses. This ASU is effective for Devon beginning with its 2027 annual reporting and interim periods beginning in 2028. Devon is evaluating the impact this ASU will have on the disclosures that accompany its consolidated financial statements.
v3.25.1
Acquisition and Divestitures
 3 Months Ended
Mar. 31, 2025
Business Combinations [Abstract]  
Acquisition and Divestitures

2. Acquisitions and Divestitures

Grayson Mill Acquisition

On September 27, 2024, Devon completed its acquisition of the Williston Basin business of Grayson Mill for total consideration of approximately $5.0 billion, consisting of $3.5 billion of cash and approximately 37.3 million shares of Devon common stock, including purchase price adjustments. Devon funded the cash portion of the purchase price through cash on hand and debt financing. For additional information regarding the debt financing, see Note 13.

Purchase Price Allocation

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

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

 

 

 

Purchase

 

 

 

Price Allocation

 

 

 

as of March 31, 2025

 

 Consideration:

 

 

 

 Devon common stock issued

 

 

37.3

 

 Devon closing price on September 27, 2024

 

$

38.96

 

 Total common equity consideration

 

$

1,455

 

 Cash consideration

 

 

3,567

 

 Total consideration

 

$

5,022

 

 Assets acquired:

 

 

 

 Cash, cash equivalents and restricted cash

 

$

147

 

 Accounts receivable

 

 

219

 

 Inventory

 

 

44

 

 Other current assets

 

 

9

 

 Proved oil and gas property and equipment

 

 

3,056

 

 Unproved oil and gas property and equipment

 

 

1,771

 

 Other property and equipment, net

 

 

210

 

 Right-of-use assets

 

 

29

 

 Total assets acquired

 

$

5,485

 

 Liabilities assumed:

 

 

 

 Accounts payable

 

$

145

 

 Revenue and royalties payable

 

 

209

 

 Other current liabilities

 

 

16

 

 Asset retirement obligations

 

 

75

 

 Lease liabilities

 

 

18

 

 Total liabilities assumed

 

 

463

 

 Net assets acquired

 

$

5,022

 

Asset Exchange

On April 1, 2025, Devon and BPX Energy dissolved their partnership and divided their acreage in the Eagle Ford Blackhawk field located in Texas' DeWitt County. The transaction is expected to be accounted for as an equal, non-monetary exchange between the two parties.

Contingent Earnout Payments

Devon was entitled to contingent earnout payments associated with the sale of its Barnett Shale assets in 2020 with upside participation beginning at a $2.75 Henry Hub natural gas price or a $50 WTI oil price. The contingent payment period commenced on January 1, 2021, and had a term of four years. Devon received $20 million in contingent earnout payments related to this transaction in both the first quarter of 2025 and first quarter of 2024.
v3.25.1
Derivative Financial Instruments
 3 Months Ended
Mar. 31, 2025
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Financial Instruments
3.
Derivative Financial Instruments

Objectives and Strategies

Devon enters into derivative financial instruments with respect to a portion of its oil, gas and NGL production to hedge future prices received. Additionally, Devon periodically enters into derivative financial instruments with respect to a portion of its oil, gas and NGL marketing activities. These commodity derivative financial instruments include financial price swaps, basis swaps and costless price collars.

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

Counterparty Credit Risk

By using derivative financial instruments, Devon is exposed to credit risk. Credit risk is the failure of the counterparty to perform under the terms of the derivative contract. To mitigate this risk, the hedging instruments are placed with a number of counterparties whom Devon believes are acceptable credit risks. It is Devon’s policy to enter into derivative contracts only with investment-grade rated counterparties deemed by management to be competent and competitive market makers. Additionally, Devon’s derivative contracts generally contain provisions that provide for collateral payments if Devon’s or its counterparty’s credit rating falls below certain credit rating levels. As of March 31, 2025, Devon neither held cash collateral of its counterparties nor posted cash collateral to its counterparties.

Commodity Derivatives

As of March 31, 2025, Devon had the following open oil derivative positions. The first two tables present Devon’s oil derivatives that settle against the average of the prompt month NYMEX WTI futures price. The third table presents Devon’s oil derivatives that settle against the respective indices noted within the table.

 

 

 

Price Swaps

 

 

Price Collars

 

 

Period

 

Volume
(Bbls/d)

 

 

Weighted
Average
Price ($/Bbl)

 

 

Volume
(Bbls/d)

 

 

Weighted
Average Floor
Price ($/Bbl)

 

 

Weighted
Average
Ceiling Price
($/Bbl)

 

 

Q2-Q4 2025

 

 

10,985

 

 

$

71.82

 

 

 

103,015

 

 

$

66.41

 

 

$

75.37

 

 

 

 

 

Three-Way Price Collars

 

Period

 

Volume
(Bbls/d)

 

 

Weighted
Average Floor Sold
Price ($/Bbl)

 

 

Weighted
Average Floor Purchased
Price ($/Bbl)

 

 

Weighted
Average
Ceiling Price
($/Bbl)

 

Q2-Q4 2025

 

 

13,000

 

 

$

50.77

 

 

$

65.00

 

 

$

77.37

 

Q1-Q4 2026

 

 

2,479

 

 

$

50.00

 

 

$

65.00

 

 

$

77.91

 

 

 

 

Oil Basis Swaps

 

Period

 

Index

 

Volume
(Bbls/d)

 

 

Weighted Average
Differential to WTI
($/Bbl)

 

Q2-Q4 2025

 

Midland Sweet

 

 

63,000

 

 

$

1.00

 

Q2-Q4 2025

 

NYMEX Roll

 

 

4,000

 

 

$

0.91

 

Q1-Q4 2026

 

Midland Sweet

 

 

32,000

 

 

$

1.13

 

As of March 31, 2025, 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)

 

Q2-Q4 2025

 

 

296,167

 

 

$

3.41

 

 

 

170,000

 

 

$

3.00

 

 

$

3.80

 

Q1-Q4 2026

 

 

217,500

 

 

$

3.72

 

 

 

160,000

 

 

$

3.14

 

 

$

4.88

 

 

 

 

Natural Gas Basis Swaps

 

Period

 

Index

 

Volume
(MMBtu/d)

 

 

Weighted Average
Differential to
Henry Hub
($/MMBtu)

 

Q2-Q4 2025

 

Houston Ship Channel

 

 

230,000

 

 

$

(0.35

)

Q2-Q4 2025

 

WAHA

 

 

110,000

 

 

$

(1.11

)

Q1-Q4 2026

 

Houston Ship Channel

 

 

50,000

 

 

$

(0.29

)

Q1-Q4 2026

 

WAHA

 

 

20,000

 

 

$

(1.30

)

 

As of March 31, 2025, Devon had the following open NGL derivative positions. Devon's NGL positions settle against the average of the prompt month OPIS Mont Belvieu, Texas index.

 

 

 

 

 

Price Swaps

 

Period

 

Product

 

Volume (Bbls/d)

 

 

Weighted Average Price ($/Bbl)

 

Q2-Q4 2025

 

Natural Gasoline

 

 

3,000

 

 

$

63.35

 

Q2-Q4 2025

 

Normal Butane

 

 

323

 

 

$

39.90

 

Q2-Q4 2025

 

Propane

 

 

3,000

 

 

$

32.29

 

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 March 31, 2025 and December 31, 2024.

 

March 31, 2025

 

December 31, 2024

 

 

 

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

$

133

 

$

(68

)

$

65

 

$

78

 

$

(23

)

$

55

 

Other current assets

Long-term derivative asset

 

11

 

 

(8

)

 

3

 

 

5

 

 

(4

)

 

1

 

Other long-term assets

Short-term derivative liability

 

(165

)

 

68

 

 

(97

)

 

(37

)

 

23

 

 

(14

)

Other current liabilities

Long-term derivative liability

 

(44

)

 

8

 

 

(36

)

 

(23

)

 

4

 

 

(19

)

Other long-term liabilities

  Total derivative asset (liability)

$

(65

)

$

—

 

$

(65

)

$

23

 

$

—

 

$

23

 

 
v3.25.1
Share-Based Compensation
 3 Months Ended
Mar. 31, 2025
Share-Based Payment Arrangement [Abstract]  
Share-Based Compensation
4.
Share-Based Compensation

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

 

 

 

Three Months Ended March 31,

 

 

 

2025

 

 

2024

 

G&A

 

$

24

 

 

$

24

 

Restructuring and transaction costs

 

 

6

 

 

 

—

 

Total

 

$

30

 

 

$

24

 

 

 

 

 

 

 

 

Related income tax benefit

 

$

3

 

 

$

9

 

 

 

 

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

 

 

 

 

Restricted Stock Awards & Units

 

 

Performance Share Units

 

 

 

Awards/Units

 

 

Weighted
Average
Grant-Date
Fair Value

 

 

Units

 

 

Weighted
Average
Grant-Date
Fair Value

 

 

 

(Thousands, except fair value data)

 

Unvested at 12/31/24

 

 

4,107

 

 

$

45.31

 

 

 

1,179

 

 

$

67.38

 

Granted

 

 

2,432

 

 

$

34.26

 

 

 

510

 

 

$

45.92

 

Vested

 

 

(1,192

)

 

$

46.88

 

 

 

(272

)

 

$

68.68

 

Forfeited

 

 

(16

)

 

$

39.40

 

 

 

(90

)

 

$

68.68

 

Unvested at 3/31/25

 

 

5,331

 

 

$

39.93

 

 

 

1,327

 

(1)

$

58.77

 

 

(1)
A maximum of 2.7 million common shares could be awarded based upon Devon’s final TSR ranking.

The following table presents the assumptions related to the performance share units granted in 2025, as indicated in the previous summary table.

 

 

2025

 

 Grant-date fair value

 

$

45.92

 

 Risk-free interest rate

 

 

4.29

%

 Volatility factor

 

 

38.70

%

 Contractual term (years)

 

 

2.89

 

 

The following table presents a summary of the unrecognized compensation cost and the related weighted average recognition period associated with unvested awards and units as of March 31, 2025.

 

 

 

Restricted Stock

 

 

Performance

 

 

 

Awards/Units

 

 

Share Units

 

Unrecognized compensation cost

 

$

159

 

 

$

30

 

Weighted average period for recognition (years)

 

 

3.0

 

 

 

2.3

 
v3.25.1
Asset Impairments
 3 Months Ended
Mar. 31, 2025
Asset Impairment Charges [Abstract]  
Asset Impairments

5. Asset Impairments

In the first quarter of 2025, Devon rationalized two headquarters-related real estate assets, triggering assets held for sale and recording asset impairments of $254 million. Both transactions closed by the end of the first quarter of 2025 and generated sale proceeds of $120 million.
v3.25.1
Income Taxes
 3 Months Ended
Mar. 31, 2025
Income Tax Disclosure [Abstract]  
Income Taxes . Income Taxes

The following table presents Devon’s total income tax expense and a reconciliation of its effective income tax rate to the U.S. statutory income tax rate.

 

 

 

Three Months Ended March 31,

 

 

 

2025

 

2024

 

Earnings before income taxes

 

$

646

 

$

768

 

 

 

 

 

 

 

Current income tax expense

 

$

96

 

$

119

 

Deferred income tax expense

 

 

41

 

 

40

 

Total income tax expense

 

$

137

 

$

159

 

 

 

 

 

 

 

U.S. statutory income tax rate

 

 

21

%

 

21

%

State income taxes

 

 

1

%

 

1

%

Other

 

 

(1

%)

 

(1

%)

Effective income tax rate

 

 

21

%

 

21

%
v3.25.1
Net Earnings Per Share
 3 Months Ended
Mar. 31, 2025
Earnings Per Share [Abstract]  
Net Earnings Per Share Net Earnings Per Share

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

 

 

 

Three Months Ended March 31,

 

 

 

2025

 

 

2024

 

Net earnings

 

$

494

 

 

$

596

 

Common shares:

 

 

 

 

 

 

Average common shares outstanding - basic

 

 

643

 

 

 

629

 

Dilutive effect of potential common shares issuable

 

 

2

 

 

 

3

 

Average common shares outstanding - diluted

 

 

645

 

 

 

632

 

Net earnings per share available to common shareholders:

 

 

 

 

 

 

Basic

 

$

0.77

 

 

$

0.95

 

Diluted

 

$

0.77

 

 

$

0.94

 
v3.25.1
Other Comprehensive Earnings (Loss)
 3 Months Ended
Mar. 31, 2025
Other Comprehensive Income (Loss), Net of Tax [Abstract]  
Other Comprehensive Earnings (Loss)

8. Other Comprehensive Earnings (Loss)

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

 

 

Three Months Ended March 31,

 

 

 

2025

 

 

2024

 

Pension and postretirement benefit plans:

 

 

 

 

 

 

Beginning accumulated pension and postretirement benefits

 

$

(122

)

 

$

(124

)

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

 

 

1

 

 

 

1

 

Ending accumulated pension and postretirement benefits

 

$

(121

)

 

$

(123

)

 

(1)
Recognition of net actuarial loss and prior service cost are included in the computation of net periodic benefit cost, which is a component of other, net in the accompanying consolidated statements of comprehensive earnings.
v3.25.1
Supplemental Information to Statements of Cash Flows
 3 Months Ended
Mar. 31, 2025
Supplemental Cash Flow Elements [Abstract]  
Supplemental Information to Statements of Cash Flows Supplemental Information to Statements of Cash Flows

 

 

 

Three Months Ended March 31,

 

 

 

2025

 

 

2024

 

Changes in assets and liabilities, net:

 

 

 

 

 

 

Accounts receivable

 

$

(63

)

 

$

(96

)

Other current assets

 

 

(35

)

 

 

(23

)

Other long-term assets

 

 

(85

)

 

 

49

 

Accounts payable and revenues and royalties payable

 

 

248

 

 

 

143

 

Other current liabilities

 

 

(57

)

 

 

116

 

Other long-term liabilities

 

 

109

 

 

 

(19

)

Total

 

$

117

 

 

$

170

 

Supplementary cash flow data:

 

 

 

 

 

 

Interest paid

 

$

160

 

 

$

63

 

Income taxes refunded

 

$

—

 

 

$

(4

)
v3.25.1
Accounts Receivable
 3 Months Ended
Mar. 31, 2025
Accounts Receivable, after Allowance for Credit Loss [Abstract]  
Accounts Receivable Accounts Receivable

Components of accounts receivable include the following:

 

 

 

March 31, 2025

 

 

December 31, 2024

 

Oil, gas and NGL sales

 

$

1,151

 

 

$

1,130

 

Joint interest billings

 

 

367

 

 

 

341

 

Marketing and midstream revenues

 

 

493

 

 

 

465

 

Other

 

 

32

 

 

 

42

 

Gross accounts receivable

 

 

2,043

 

 

 

1,978

 

Allowance for doubtful accounts

 

 

(7

)

 

 

(6

)

Net accounts receivable

 

$

2,036

 

 

$

1,972

 
v3.25.1
Property, Plant and Equipment
 3 Months Ended
Mar. 31, 2025
Extractive Industries [Abstract]  
Property, Plant and Equipment Property, Plant and Equipment

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

 

 

 

March 31, 2025

 

 

December 31, 2024

 

Property and equipment:

 

 

 

 

 

 

Proved

 

$

54,814

 

 

$

53,647

 

Unproved and properties under development

 

 

2,775

 

 

 

2,814

 

Total oil and gas

 

 

57,589

 

 

 

56,461

 

Less accumulated DD&A

 

 

(34,160

)

 

 

(33,263

)

Oil and gas property and equipment, net

 

 

23,429

 

 

 

23,198

 

Other property and equipment

 

 

2,510

 

 

 

2,671

 

Less accumulated DD&A

 

 

(857

)

 

 

(858

)

Other property and equipment, net (1)

 

 

1,653

 

 

 

1,813

 

Property and equipment, net

 

$

25,082

 

 

$

25,011

 

 

(1)
$189 million and $178 million related to CDM in 2025 and 2024, respectively.
v3.25.1
Investments
 3 Months Ended
Mar. 31, 2025
Investments [Abstract]  
Investments Investments

The following table presents Devon's investments shown on the consolidated balance sheets.

 

 

 

 

 

Carrying Amount

 

Investments

 

% Interest

 

March 31, 2025

 

 

December 31, 2024

 

Catalyst

 

50%

 

$

266

 

 

$

273

 

Water JV

 

30%

 

 

218

 

 

 

216

 

Fervo

 

17%

 

 

113

 

 

 

115

 

Matterhorn

 

12.5%

 

 

69

 

 

 

69

 

Other

 

Various

 

 

47

 

 

 

54

 

      Total

 

 

 

$

713

 

 

$

727

 

 

On May 5, 2025, Devon agreed to sell its investment in Matterhorn for approximately $375 million. The transaction is expected to close by the end of the second quarter, subject to customary closing conditions.
v3.25.1
Debt And Related Expenses
 3 Months Ended
Mar. 31, 2025
Debt Disclosure [Abstract]  
Debt and Related Expenses Debt and Related Expenses

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

 

 

 

March 31, 2025

 

 

December 31, 2024

 

5.85% due December 15, 2025

 

$

485

 

 

$

485

 

7.50% due September 15, 2027

 

 

73

 

 

 

73

 

5.25% due October 15, 2027

 

 

390

 

 

 

390

 

5.875% due June 15, 2028

 

 

325

 

 

 

325

 

4.50% due January 15, 2030

 

 

585

 

 

 

585

 

7.875% due September 30, 2031

 

 

675

 

 

 

675

 

7.95% due April 15, 2032

 

 

366

 

 

 

366

 

5.20% due September 15, 2034

 

 

1,250

 

 

 

1,250

 

5.60% due July 15, 2041

 

 

1,250

 

 

 

1,250

 

4.75% due May 15, 2042

 

 

750

 

 

 

750

 

5.00% due June 15, 2045

 

 

750

 

 

 

750

 

5.75% due September 15, 2054

 

 

1,000

 

 

 

1,000

 

Term Loan due September 25, 2026

 

 

1,000

 

 

 

1,000

 

Net premium on debentures and notes

 

 

34

 

 

 

37

 

Debt issuance costs

 

 

(53

)

 

 

(53

)

Total debt

 

$

8,880

 

 

$

8,883

 

Less amount classified as short-term debt

 

 

485

 

 

 

485

 

Total long-term debt

 

$

8,395

 

 

$

8,398

 

Credit Lines

Devon has a $3.0 billion revolving Senior Credit Facility, and, in the first quarter of 2025, Devon exercised its option to extend the Senior Credit Facility maturity date from March 24, 2029 to March 24, 2030. Devon has the option to extend the March 24, 2030 maturity date by an additional year subject to lender consent. As of March 31, 2025, Devon had no outstanding borrowings under the Senior Credit Facility and had issued $4 million in outstanding letters of credit under this facility. 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%. Under the terms of the credit agreement, total capitalization is adjusted to add back

non-cash financial write-downs such as impairments. As of March 31, 2025, Devon was in compliance with this covenant with a debt-to-capitalization ratio of 26.3%.

 

Term Loan Credit Agreement

In August 2024, Devon entered into a delayed draw term loan credit agreement (the “Term Loan Credit Agreement”), providing for delayed draw term loans in an aggregate principal amount not to exceed $2.0 billion, including a 364-day tranche of $500 million and a two-year tranche of $1.5 billion. On September 27, 2024, Devon borrowed $1.0 billion on the two-year tranche (the “Term Loan”) to partially fund the closing of the Grayson Mill acquisition. In connection with the borrowing of the Term Loan, the undrawn commitments under the Term Loan Credit Agreement automatically terminated. The Term Loan bears interest at a rate based on term SOFR plus a spread adjustment that varies based on Devon's credit ratings. The interest rate on the Term Loan was 5.8% as of March 31, 2025.

The Term Loan Credit Agreement contains substantially the same financial covenant as the Senior Credit Facility. As of March 31, 2025, Devon was in compliance with this covenant with a debt-to-capitalization ratio of 26.3%.

 

Issuance of Senior Notes

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

Retirement of Senior Notes

On September 15, 2024, Devon repaid $472 million of 5.25% senior notes at maturity.

Net Financing Costs

The following schedule includes the components of net financing costs.

 

 

 

Three Months Ended March 31,

 

 

 

2025

 

 

2024

 

Net financing costs:

 

 

 

 

 

 

Interest based on debt outstanding

 

$

127

 

 

$

87

 

Interest income

 

 

(10

)

 

 

(13

)

Other

 

 

6

 

 

 

2

 

Total net financing costs

 

$

123

 

 

$

76

 
v3.25.1
Leases
 3 Months Ended
Mar. 31, 2025
Leases [Abstract]  
Leases

14. Leases

Devon’s operating lease right-of-use assets relate to real estate, drilling rigs and other equipment related to the exploration, development and production of oil and gas. As of March 31, 2025, Devon’s financing lease right-of-use assets primarily relate to equipment related to the exploration, development and production of oil and gas. In the first quarter of 2025, Devon extinguished an approximately $300 million real estate finance lease by making a cash payment of $274 million and recognized a gain on early lease extinguishment in other, net related to the difference on the accompanying consolidated statement of comprehensive earnings. For additional information, see Note 5.

The following table presents Devon’s right-of-use assets and lease liabilities as of March 31, 2025 and December 31, 2024.

 

 

 

March 31, 2025

 

 

December 31, 2024

 

 

 

Finance

 

 

Operating

 

 

Total

 

 

Finance

 

 

Operating

 

 

Total

 

Right-of-use assets

 

$

19

 

 

$

108

 

 

$

127

 

 

$

248

 

 

$

55

 

 

$

303

 

Lease liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current lease liabilities (1)

 

$

5

 

 

$

45

 

 

$

50

 

 

$

25

 

 

$

28

 

 

$

53

 

Long-term lease liabilities

 

 

14

 

 

 

63

 

 

 

77

 

 

 

293

 

 

 

27

 

 

 

320

 

Total lease liabilities (2)

 

$

19

 

 

$

108

 

 

$

127

 

 

$

318

 

 

$

55

 

 

$

373

 

 

(1)
Current lease liabilities are included in other current liabilities on the consolidated balance sheets.
(2)
Devon has entered into certain leases of equipment related to the exploration, development and production of oil and gas that had terms not yet commenced as of March 31, 2025 and are therefore excluded from the amounts shown above.
v3.25.1
Asset Retirement Obligations
 3 Months Ended
Mar. 31, 2025
Asset Retirement Obligation Disclosure [Abstract]  
Asset Retirement Obligations
15.
Asset Retirement Obligations

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

 

 

 

Three Months Ended March 31,

 

 

 

2025

 

 

2024

 

Asset retirement obligations as of beginning of period

 

$

807

 

 

$

665

 

Liabilities incurred

 

 

11

 

 

 

8

 

Liabilities settled and divested

 

 

(8

)

 

 

(8

)

Revision and reclassification of estimated obligation

 

 

55

 

 

 

35

 

Accretion expense on discounted obligation

 

 

12

 

 

 

9

 

Asset retirement obligations as of end of period

 

 

877

 

 

 

709

 

Less current portion

 

 

42

 

 

 

26

 

Asset retirement obligations, long-term

 

$

835

 

 

$

683

 

 

During the first quarters of 2025 and 2024, Devon increased its asset retirement obligations by approximately $55 million and $35 million, respectively, primarily due to changes in current cost estimates and future retirement dates for its oil and gas assets.
v3.25.1
Stockholders' Equity
 3 Months Ended
Mar. 31, 2025
Stockholders' Equity Note [Abstract]  
Stockholders' Equity
16.
Stockholders’ Equity

Share Issuance

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

Share Repurchases

Devon's Board of Directors has authorized a $5.0 billion share repurchase program with a June 30, 2026 expiration date. The table below provides information regarding purchases of Devon’s common stock under the $5.0 billion share repurchase program (shares in thousands).

 

 

 

Total Number of
Shares Purchased

 

 

Dollar Value of
Shares Purchased

 

 

Average Price Paid
per Share

 

$5.0 Billion Plan

 

 

 

 

 

 

 

 

 

2021

 

 

13,983

 

 

$

589

 

 

$

42.15

 

2022

 

 

11,708

 

 

 

718

 

 

$

61.36

 

2023

 

 

19,350

 

 

 

992

 

 

$

51.23

 

2024:

 

 

 

 

 

 

 

 

 

First quarter

 

 

4,428

 

 

 

193

 

 

$

43.47

 

Second quarter

 

 

5,188

 

 

 

256

 

 

$

49.40

 

Third quarter

 

 

6,675

 

 

 

295

 

 

$

44.23

 

Fourth quarter

 

 

7,653

 

 

 

300

 

 

$

39.22

 

2024 Total

 

 

23,944

 

 

 

1,044

 

 

$

43.61

 

2025:

 

 

 

 

 

 

 

 

 

First quarter

 

 

8,505

 

 

 

301

 

 

$

35.33

 

Total plan

 

 

77,490

 

 

$

3,644

 

 

$

47.02

 

 

Dividends

Devon pays a quarterly dividend which can be comprised of a fixed dividend and a variable dividend. The variable dividend is dependent on quarterly cash flows, among other factors. Devon has raised its fixed dividend multiple times over the past two calendar years and most recently raised it by 9% from $0.22 to $0.24 per share in the first quarter of 2025. The following table summarizes Devon’s dividends for the first quarter of 2025 and 2024, respectively.

 

 

Dividends

 

 

Rate Per Share

 

2025:

 

 

 

 

 

First quarter

$

163

 

 

$

0.24

 

2024:

 

 

 

 

 

First quarter (1)

$

299

 

 

$

0.44

 
(1)
In the first quarter of 2024, Devon paid a variable dividend of $0.22 per share for a total of $156 million in addition to its fixed dividend.

 

In May 2025, Devon announced a fixed cash dividend in the amount of $0.24 per share for approximately $154 million payable in the second quarter of 2025.

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.
v3.25.1
Commitments and Contingencies
 3 Months Ended
Mar. 31, 2025
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies Commitments and Contingencies

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

Royalty Matters

Numerous oil and natural gas producers and related parties, including Devon, have been named in various lawsuits alleging royalty underpayments. Devon is currently named as a defendant in a number of such lawsuits, including some lawsuits in which the plaintiffs seek to certify classes of similarly situated plaintiffs. Among the allegations typically asserted in these suits are claims that Devon used below-market prices, made improper deductions, paid royalty proceeds in an untimely manner without including required interest, used improper measurement techniques and entered into gas purchase and processing arrangements with affiliates that resulted in underpayment of royalties in connection with oil, natural gas and NGLs produced and sold. Devon is also involved in governmental agency proceedings and royalty audits and is subject to related contracts and regulatory controls in the ordinary course of business, some that may lead to additional royalty claims. As of March 31, 2025, Devon has accrued approximately $40 million in other current liabilities pertaining to such royalty matters.

Environmental and Climate Change Matters

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

The Company has previously received separate NOVs from the EPA alleging emissions and permitting violations relating to certain of our historic operations in North Dakota, western Texas and New Mexico, respectively. The Company has been engaging with the EPA to resolve each of these matters, and Devon is actively negotiating a draft consent decree with the EPA and the Department of Justice with respect to the North Dakota NOV matter. If finalized, the consent decree may include monetary sanctions and obligations to complete mitigation projects and implement specific injunctive relief. Given that negotiations of the draft consent decree are ongoing and the uncertainty as to the ultimate result of the North Dakota NOV matter, we are currently unable to provide an estimate of potential loss; however, the costs associated with the resolution of the North Dakota NOV matter or any of the other NOV matters could be significant in amount and may include monetary penalties.

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

The State of Delaware has filed legal proceedings against numerous oil and gas companies, including Devon, seeking relief to abate alleged impacts of climate change. These proceedings include far-reaching claims for monetary damages and injunctive relief. Although Devon cannot predict the ultimate outcome of this matter, Devon denies the allegations asserted in this lawsuit and intends to vigorously defend against these claims.

Other Indemnifications and Legacy Matters

Pursuant to various sale agreements relating to divested businesses and assets, Devon has indemnified various purchasers against liabilities that they may incur with respect to the businesses and assets acquired from Devon. Additionally, federal, state and other laws in areas of former operations may require previous operators (including corporate successors of previous operators) to perform or make payments in certain circumstances where the current operator may no longer be able to satisfy the applicable obligation. Such obligations may include plugging and abandoning wells, removing production facilities, undertaking other restorative actions or performing requirements under surface agreements in existence at the time of disposition. For example, a predecessor entity of a Devon subsidiary previously sold certain private, state and federal oil and gas leases covering properties in shallow waters off the coast of Louisiana in the Gulf of America. These assets are generally referred to as the East Bay Field. The current operator of the East Bay Field has filed for protection under Chapter 11 of the U.S. Bankruptcy Code and will likely be unable to satisfy the eventual decommissioning obligations associated with the East Bay Field. Other companies in the chain of title of the East Bay Field have also sought bankruptcy protection and will also likely be unable to satisfy the eventual decommissioning obligations associated with the East Bay Field.

In March 2025, Devon received an order from the Department of the Interior, Bureau of Safety and Environmental Enforcement to decommission assets located on certain federal leases in the East Bay Field (the “Federal Assets”). As a result, during the first quarter of 2025, Devon recorded a contingent liability of $125 million within other long-term liabilities in the consolidated balance sheet, reflecting the estimated costs of decommissioning the Federal Assets. The Company expects to be able to access funds available under certain bonds and a cash security account as and when Devon performs and pays these decommissioning obligations. Devon believes the funds will likely cover approximately $100 million of the estimated decommissioning costs for the Federal Assets. Accordingly, during the first quarter of 2025, Devon recorded an approximately $100 million receivable related to these sources of funds within other long-term assets in the consolidated balance sheet. The remaining $25 million difference of the recorded decommissioning obligation and such sources of funds was recognized in other, net on the consolidated statement of comprehensive earnings. Devon may also be required to perform or fund decommissioning obligations associated with the East Bay Field under state and federal regulations applicable to predecessor operators beyond amounts accrued. Factors impacting this contingency include, among others: (i) the ultimate outcome of the ongoing bankruptcy proceedings, including with respect to state lease assets included in the East Bay Field, (ii) the actual costs to decommission the Federal Assets relative to the estimates, which are subject to numerous assumptions and uncertainties, and (iii) Devon's ability to successfully access funds under decommissioning bonds and other sources.

As of March 31, 2025, Devon has accrued approximately $200 million of contingent liabilities related to such decommissioning legacy matters, including liabilities associated with the East Bay Field.
v3.25.1
Fair Value Measurements
 3 Months Ended
Mar. 31, 2025
Fair Value Disclosures [Abstract]  
Fair Value Measurements Fair Value Measurements

The following table provides carrying value and fair value measurement information for certain of Devon’s financial assets and liabilities. The carrying values of cash, accounts receivable, other current receivables, accounts payable, other current payables, accrued expenses and lease liabilities included in the accompanying consolidated balance sheets approximated fair value at March 31, 2025 and December 31, 2024, 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

 

March 31, 2025 assets (liabilities):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash equivalents

 

$

682

 

 

$

682

 

 

$

682

 

 

$

—

 

 

$

—

 

Commodity derivatives

 

$

68

 

 

$

68

 

 

$

—

 

 

$

68

 

 

$

—

 

Commodity derivatives

 

$

(133

)

 

$

(133

)

 

$

—

 

 

$

(133

)

 

$

—

 

Debt

 

$

(8,880

)

 

$

(8,592

)

 

$

—

 

 

$

(8,592

)

 

$

—

 

December 31, 2024 assets (liabilities):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash equivalents

 

$

319

 

 

$

319

 

 

$

319

 

 

$

—

 

 

$

—

 

Commodity derivatives

 

$

56

 

 

$

56

 

 

$

—

 

 

$

56

 

 

$

—

 

Commodity derivatives

 

$

(33

)

 

$

(33

)

 

$

—

 

 

$

(33

)

 

$

—

 

Debt

 

$

(8,883

)

 

$

(8,520

)

 

$

—

 

 

$

(8,520

)

 

$

—

 

Contingent earnout payments

 

$

20

 

 

$

20

 

 

$

—

 

 

$

—

 

 

$

20

 

 

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

Level 1 Fair Value Measurements

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

Level 2 Fair Value Measurements

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

 

Debt – Devon’s debt instruments do not consistently trade actively in an established market. The fair values of its debt are estimated based on rates available for debt with similar terms and maturity when active trading is not available. Our variable rate debt is non-public and consists of our Term Loan. The fair value of our variable rate debt approximates the carrying value as the underlying SOFR resets every month based on the prevailing market rate.

Level 3 Fair Value Measurements

Contingent Earnout Payments – Devon had the right to receive contingent consideration related to the Barnett asset divestiture based on future oil and gas prices. These values were derived using a Monte Carlo valuation model and qualify as a level 3 fair value measurement. For additional information, see Note 2.
v3.25.1
Reportable Segments
 3 Months Ended
Mar. 31, 2025
Segment Reporting Information, Revenue for Reportable Segment [Abstract]  
Reportable Segments Reportable Segments

Devon is a leading independent energy company engaged primarily in the exploration, development and production of oil, natural gas and NGLs. 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.

Devon’s chief operating decision maker is the executive committee, which includes the chief executive officer, chief operating officers and chief financial officer. To assess the performance of our assets, we use net earnings. We believe net earnings provides information useful in assessing our operating and financial performance across periods.

The following table reflects Devon's net earnings, assets and capital expenditures for the time periods presented below.

 

 

 

Three Months Ended March 31,

 

 

 

2025

 

 

2024

 

Total revenues

 

$

4,452

 

 

$

3,596

 

 

 

 

 

 

 

 

LOE

 

 

479

 

 

 

380

 

Gathering, processing & transportation

 

 

204

 

 

 

180

 

Production and property taxes

 

 

229

 

 

 

191

 

Total significant expenses

 

 

912

 

 

 

751

 

Marketing and midstream expenses

 

 

1,436

 

 

 

1,133

 

DD&A

 

 

912

 

 

 

722

 

G&A

 

 

130

 

 

 

114

 

Financing costs, net

 

 

123

 

 

 

76

 

Income tax expense

 

 

137

 

 

 

159

 

Other segment items (1)

 

 

293

 

 

 

32

 

Total expenses

 

 

3,943

 

 

 

2,987

 

 

 

 

 

 

 

 

Net earnings

 

$

509

 

 

$

609

 

 

 

 

 

 

 

 

Total assets

 

$

30,928

 

 

$

24,978

 

 

 

 

 

 

 

 

Capital expenditures, including acquisitions

 

$

972

 

 

$

945

 
(1)
Other segment items included in segment net earnings are exploration expenses, asset impairments, asset dispositions and other, net.
v3.25.1
Summary of Significant Accounting Policies (Policies)
 3 Months Ended
Mar. 31, 2025
Accounting Policies [Abstract]  
Variable Interest Entity

Variable Interest Entity

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

Disaggregation of Revenue

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

 

 

 

Three Months Ended March 31,

 

 

 

2025

 

 

2024

 

Oil

 

$

2,414

 

 

$

2,189

 

Gas

 

 

309

 

 

 

128

 

NGL

 

 

403

 

 

 

312

 

Oil, gas and NGL sales

 

 

3,126

 

 

 

2,629

 

 

 

 

 

 

 

 

Oil

 

 

918

 

 

 

807

 

Gas

 

 

272

 

 

 

121

 

NGL

 

 

234

 

 

 

184

 

Marketing and midstream revenues

 

 

1,424

 

 

 

1,112

 

Total revenues from contracts with customers

 

$

4,550

 

 

$

3,741

 
Recently Adopted Accounting Standards

Recently Adopted Accounting Standards

Beginning with the 2024 Annual Report on Form 10-K, Devon adopted ASU 2023-07, Improvements to Reportable Segments Disclosures. Under this ASU, the scope and frequency of segment disclosures has increased to provide investors with additional detail about information utilized by an entity's "Chief Operating Decision Maker". See Note 19 for Devon's disclosure.
Recently Issued Accounting Standards Not Yet Adopted

Recently Issued Accounting Standards Not Yet Adopted

In December 2023, the FASB issued ASU 2023-09, Improvements to Income Tax Disclosures. ASU 2023-09 intends to provide investors with enhanced information about an entity’s income taxes by requiring disclosure of items such as disaggregation of the effective tax rate reconciliation as well as information regarding income taxes paid. This ASU will result in additional disclosures for annual reporting periods beginning after December 15, 2024, with early adoption permitted for annual financial statements that have

not yet been issued. This ASU will result in additional disclosures for Devon beginning with our 2025 annual reporting and interim periods beginning in 2026.

In November 2024, the FASB issued ASU 2024-03, Disaggregation of Income Statement Expenses. ASU 2024-03 requires disclosures about specific types of expenses included in the expense captions presented on the face of the statement of operations as well as disclosures about selling expenses. This ASU is effective for Devon beginning with its 2027 annual reporting and interim periods beginning in 2028. Devon is evaluating the impact this ASU will have on the disclosures that accompany its consolidated financial statements.
v3.25.1
Summary of Significant Accounting Policies (Tables)
 3 Months Ended
Mar. 31, 2025
Accounting Policies [Abstract]  
Schedule of Components of Investment

The following table presents Devon's investments shown on the consolidated balance sheets.

 

 

 

 

 

Carrying Amount

 

Investments

 

% Interest

 

March 31, 2025

 

 

December 31, 2024

 

Catalyst

 

50%

 

$

266

 

 

$

273

 

Water JV

 

30%

 

 

218

 

 

 

216

 

Fervo

 

17%

 

 

113

 

 

 

115

 

Matterhorn

 

12.5%

 

 

69

 

 

 

69

 

Other

 

Various

 

 

47

 

 

 

54

 

      Total

 

 

 

$

713

 

 

$

727

 
Schedule of Revenue from Contracts with Customers

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

 

 

 

Three Months Ended March 31,

 

 

 

2025

 

 

2024

 

Oil

 

$

2,414

 

 

$

2,189

 

Gas

 

 

309

 

 

 

128

 

NGL

 

 

403

 

 

 

312

 

Oil, gas and NGL sales

 

 

3,126

 

 

 

2,629

 

 

 

 

 

 

 

 

Oil

 

 

918

 

 

 

807

 

Gas

 

 

272

 

 

 

121

 

NGL

 

 

234

 

 

 

184

 

Marketing and midstream revenues

 

 

1,424

 

 

 

1,112

 

Total revenues from contracts with customers

 

$

4,550

 

 

$

3,741

 
v3.25.1
Acquisitions and Divestitures (Tables)
 3 Months Ended
Mar. 31, 2025
Business Acquisition [Line Items]  
Schedule of Preliminary Allocation of the Total Purchase Price

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

 

 

 

Purchase

 

 

 

Price Allocation

 

 

 

as of March 31, 2025

 

 Consideration:

 

 

 

 Devon common stock issued

 

 

37.3

 

 Devon closing price on September 27, 2024

 

$

38.96

 

 Total common equity consideration

 

$

1,455

 

 Cash consideration

 

 

3,567

 

 Total consideration

 

$

5,022

 

 Assets acquired:

 

 

 

 Cash, cash equivalents and restricted cash

 

$

147

 

 Accounts receivable

 

 

219

 

 Inventory

 

 

44

 

 Other current assets

 

 

9

 

 Proved oil and gas property and equipment

 

 

3,056

 

 Unproved oil and gas property and equipment

 

 

1,771

 

 Other property and equipment, net

 

 

210

 

 Right-of-use assets

 

 

29

 

 Total assets acquired

 

$

5,485

 

 Liabilities assumed:

 

 

 

 Accounts payable

 

$

145

 

 Revenue and royalties payable

 

 

209

 

 Other current liabilities

 

 

16

 

 Asset retirement obligations

 

 

75

 

 Lease liabilities

 

 

18

 

 Total liabilities assumed

 

 

463

 

 Net assets acquired

 

$

5,022

 
v3.25.1
Derivative Financial Instruments (Tables)
 3 Months Ended
Mar. 31, 2025
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of Open Derivative Positions

Commodity Derivatives

As of March 31, 2025, Devon had the following open oil derivative positions. The first two tables present Devon’s oil derivatives that settle against the average of the prompt month NYMEX WTI futures price. The third table presents Devon’s oil derivatives that settle against the respective indices noted within the table.

 

 

 

Price Swaps

 

 

Price Collars

 

 

Period

 

Volume
(Bbls/d)

 

 

Weighted
Average
Price ($/Bbl)

 

 

Volume
(Bbls/d)

 

 

Weighted
Average Floor
Price ($/Bbl)

 

 

Weighted
Average
Ceiling Price
($/Bbl)

 

 

Q2-Q4 2025

 

 

10,985

 

 

$

71.82

 

 

 

103,015

 

 

$

66.41

 

 

$

75.37

 

 

 

 

 

Three-Way Price Collars

 

Period

 

Volume
(Bbls/d)

 

 

Weighted
Average Floor Sold
Price ($/Bbl)

 

 

Weighted
Average Floor Purchased
Price ($/Bbl)

 

 

Weighted
Average
Ceiling Price
($/Bbl)

 

Q2-Q4 2025

 

 

13,000

 

 

$

50.77

 

 

$

65.00

 

 

$

77.37

 

Q1-Q4 2026

 

 

2,479

 

 

$

50.00

 

 

$

65.00

 

 

$

77.91

 

 

 

 

Oil Basis Swaps

 

Period

 

Index

 

Volume
(Bbls/d)

 

 

Weighted Average
Differential to WTI
($/Bbl)

 

Q2-Q4 2025

 

Midland Sweet

 

 

63,000

 

 

$

1.00

 

Q2-Q4 2025

 

NYMEX Roll

 

 

4,000

 

 

$

0.91

 

Q1-Q4 2026

 

Midland Sweet

 

 

32,000

 

 

$

1.13

 

As of March 31, 2025, 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)

 

Q2-Q4 2025

 

 

296,167

 

 

$

3.41

 

 

 

170,000

 

 

$

3.00

 

 

$

3.80

 

Q1-Q4 2026

 

 

217,500

 

 

$

3.72

 

 

 

160,000

 

 

$

3.14

 

 

$

4.88

 

 

 

 

Natural Gas Basis Swaps

 

Period

 

Index

 

Volume
(MMBtu/d)

 

 

Weighted Average
Differential to
Henry Hub
($/MMBtu)

 

Q2-Q4 2025

 

Houston Ship Channel

 

 

230,000

 

 

$

(0.35

)

Q2-Q4 2025

 

WAHA

 

 

110,000

 

 

$

(1.11

)

Q1-Q4 2026

 

Houston Ship Channel

 

 

50,000

 

 

$

(0.29

)

Q1-Q4 2026

 

WAHA

 

 

20,000

 

 

$

(1.30

)

 

As of March 31, 2025, Devon had the following open NGL derivative positions. Devon's NGL positions settle against the average of the prompt month OPIS Mont Belvieu, Texas index.

 

 

 

 

 

Price Swaps

 

Period

 

Product

 

Volume (Bbls/d)

 

 

Weighted Average Price ($/Bbl)

 

Q2-Q4 2025

 

Natural Gasoline

 

 

3,000

 

 

$

63.35

 

Q2-Q4 2025

 

Normal Butane

 

 

323

 

 

$

39.90

 

Q2-Q4 2025

 

Propane

 

 

3,000

 

 

$

32.29

 
Schedule of Derivative Financial Instruments Included in the Consolidated Balance Sheets The table below presents a summary of these positions as of March 31, 2025 and December 31, 2024.

 

March 31, 2025

 

December 31, 2024

 

 

 

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

$

133

 

$

(68

)

$

65

 

$

78

 

$

(23

)

$

55

 

Other current assets

Long-term derivative asset

 

11

 

 

(8

)

 

3

 

 

5

 

 

(4

)

 

1

 

Other long-term assets

Short-term derivative liability

 

(165

)

 

68

 

 

(97

)

 

(37

)

 

23

 

 

(14

)

Other current liabilities

Long-term derivative liability

 

(44

)

 

8

 

 

(36

)

 

(23

)

 

4

 

 

(19

)

Other long-term liabilities

  Total derivative asset (liability)

$

(65

)

$

—

 

$

(65

)

$

23

 

$

—

 

$

23

 

 
v3.25.1
Share-Based Compensation (Tables)
 3 Months Ended
Mar. 31, 2025
Share-Based Payment Arrangement [Abstract]  
Schedule Of Share-Based Compensation Expense Included In The Consolidated Statements Of Comprehensive Earnings

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

 

 

 

Three Months Ended March 31,

 

 

 

2025

 

 

2024

 

G&A

 

$

24

 

 

$

24

 

Restructuring and transaction costs

 

 

6

 

 

 

—

 

Total

 

$

30

 

 

$

24

 

 

 

 

 

 

 

 

Related income tax benefit

 

$

3

 

 

$

9

 

 
Summary Of Unvested Restricted Stock Awards, Performance-Based Restricted Stock Awards And Performance Share Units The following table presents a summary of Devon’s unvested restricted stock awards and units and performance share units granted under the plan.

 

 

 

 

Restricted Stock Awards & Units

 

 

Performance Share Units

 

 

 

Awards/Units

 

 

Weighted
Average
Grant-Date
Fair Value

 

 

Units

 

 

Weighted
Average
Grant-Date
Fair Value

 

 

 

(Thousands, except fair value data)

 

Unvested at 12/31/24

 

 

4,107

 

 

$

45.31

 

 

 

1,179

 

 

$

67.38

 

Granted

 

 

2,432

 

 

$

34.26

 

 

 

510

 

 

$

45.92

 

Vested

 

 

(1,192

)

 

$

46.88

 

 

 

(272

)

 

$

68.68

 

Forfeited

 

 

(16

)

 

$

39.40

 

 

 

(90

)

 

$

68.68

 

Unvested at 3/31/25

 

 

5,331

 

 

$

39.93

 

 

 

1,327

 

(1)

$

58.77

 

 

A maximum of 2.7 million common shares could be awarded based upon Devon’s final TSR ranking.
Summary Of Performance Share Units Grant-Date Fair Values And Their Related Assumptions

The following table presents the assumptions related to the performance share units granted in 2025, as indicated in the previous summary table.

 

 

2025

 

 Grant-date fair value

 

$

45.92

 

 Risk-free interest rate

 

 

4.29

%

 Volatility factor

 

 

38.70

%

 Contractual term (years)

 

 

2.89

 
Summary of Unrecognized Compensation Cost And Weighted Average Period For Recognition

The following table presents a summary of the unrecognized compensation cost and the related weighted average recognition period associated with unvested awards and units as of March 31, 2025.

 

 

 

Restricted Stock

 

 

Performance

 

 

 

Awards/Units

 

 

Share Units

 

Unrecognized compensation cost

 

$

159

 

 

$

30

 

Weighted average period for recognition (years)

 

 

3.0

 

 

 

2.3

 
v3.25.1
Income Taxes (Tables)
 3 Months Ended
Mar. 31, 2025
Income Tax Disclosure [Abstract]  
Schedule of Effective Income Tax Rate Reconciliation

The following table presents Devon’s total income tax expense and a reconciliation of its effective income tax rate to the U.S. statutory income tax rate.

 

 

 

Three Months Ended March 31,

 

 

 

2025

 

2024

 

Earnings before income taxes

 

$

646

 

$

768

 

 

 

 

 

 

 

Current income tax expense

 

$

96

 

$

119

 

Deferred income tax expense

 

 

41

 

 

40

 

Total income tax expense

 

$

137

 

$

159

 

 

 

 

 

 

 

U.S. statutory income tax rate

 

 

21

%

 

21

%

State income taxes

 

 

1

%

 

1

%

Other

 

 

(1

%)

 

(1

%)

Effective income tax rate

 

 

21

%

 

21

%
v3.25.1
Net Earnings Per Share (Tables)
 3 Months Ended
Mar. 31, 2025
Earnings Per Share [Abstract]  
Net Earnings (Loss) Per Share Computations from Continuing Operations

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

 

 

 

Three Months Ended March 31,

 

 

 

2025

 

 

2024

 

Net earnings

 

$

494

 

 

$

596

 

Common shares:

 

 

 

 

 

 

Average common shares outstanding - basic

 

 

643

 

 

 

629

 

Dilutive effect of potential common shares issuable

 

 

2

 

 

 

3

 

Average common shares outstanding - diluted

 

 

645

 

 

 

632

 

Net earnings per share available to common shareholders:

 

 

 

 

 

 

Basic

 

$

0.77

 

 

$

0.95

 

Diluted

 

$

0.77

 

 

$

0.94

 
v3.25.1
Other Comprehensive Earnings (Loss) (Tables)
 3 Months Ended
Mar. 31, 2025
Other Comprehensive Income (Loss), Net of Tax [Abstract]  
Components Of Other Comprehensive Earnings (Loss)

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

 

 

Three Months Ended March 31,

 

 

 

2025

 

 

2024

 

Pension and postretirement benefit plans:

 

 

 

 

 

 

Beginning accumulated pension and postretirement benefits

 

$

(122

)

 

$

(124

)

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

 

 

1

 

 

 

1

 

Ending accumulated pension and postretirement benefits

 

$

(121

)

 

$

(123

)

 

(1)
Recognition of net actuarial loss and prior service cost are included in the computation of net periodic benefit cost, which is a component of other, net in the accompanying consolidated statements of comprehensive earnings.
v3.25.1
Supplemental Information to Statements of Cash Flows (Tables)
 3 Months Ended
Mar. 31, 2025
Supplemental Cash Flow Elements [Abstract]  
Schedule of Supplemental Information to Statements of Cash Flows

 

 

Three Months Ended March 31,

 

 

 

2025

 

 

2024

 

Changes in assets and liabilities, net:

 

 

 

 

 

 

Accounts receivable

 

$

(63

)

 

$

(96

)

Other current assets

 

 

(35

)

 

 

(23

)

Other long-term assets

 

 

(85

)

 

 

49

 

Accounts payable and revenues and royalties payable

 

 

248

 

 

 

143

 

Other current liabilities

 

 

(57

)

 

 

116

 

Other long-term liabilities

 

 

109

 

 

 

(19

)

Total

 

$

117

 

 

$

170

 

Supplementary cash flow data:

 

 

 

 

 

 

Interest paid

 

$

160

 

 

$

63

 

Income taxes refunded

 

$

—

 

 

$

(4

)

 
v3.25.1
Accounts Receivable (Tables)
 3 Months Ended
Mar. 31, 2025
Accounts Receivable, after Allowance for Credit Loss [Abstract]  
Schedule Of Components Of Accounts Receivable

Components of accounts receivable include the following:

 

 

 

March 31, 2025

 

 

December 31, 2024

 

Oil, gas and NGL sales

 

$

1,151

 

 

$

1,130

 

Joint interest billings

 

 

367

 

 

 

341

 

Marketing and midstream revenues

 

 

493

 

 

 

465

 

Other

 

 

32

 

 

 

42

 

Gross accounts receivable

 

 

2,043

 

 

 

1,978

 

Allowance for doubtful accounts

 

 

(7

)

 

 

(6

)

Net accounts receivable

 

$

2,036

 

 

$

1,972

 
v3.25.1
Property, Plant and Equipment (Tables)
 3 Months Ended
Mar. 31, 2025
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.

 

 

 

March 31, 2025

 

 

December 31, 2024

 

Property and equipment:

 

 

 

 

 

 

Proved

 

$

54,814

 

 

$

53,647

 

Unproved and properties under development

 

 

2,775

 

 

 

2,814

 

Total oil and gas

 

 

57,589

 

 

 

56,461

 

Less accumulated DD&A

 

 

(34,160

)

 

 

(33,263

)

Oil and gas property and equipment, net

 

 

23,429

 

 

 

23,198

 

Other property and equipment

 

 

2,510

 

 

 

2,671

 

Less accumulated DD&A

 

 

(857

)

 

 

(858

)

Other property and equipment, net (1)

 

 

1,653

 

 

 

1,813

 

Property and equipment, net

 

$

25,082

 

 

$

25,011

 

 

(1)
$189 million and $178 million related to CDM in 2025 and 2024, respectively.
v3.25.1
Investments (Tables)
 3 Months Ended
Mar. 31, 2025
Investments [Abstract]  
Schedule of Components of Investment

The following table presents Devon's investments shown on the consolidated balance sheets.

 

 

 

 

 

Carrying Amount

 

Investments

 

% Interest

 

March 31, 2025

 

 

December 31, 2024

 

Catalyst

 

50%

 

$

266

 

 

$

273

 

Water JV

 

30%

 

 

218

 

 

 

216

 

Fervo

 

17%

 

 

113

 

 

 

115

 

Matterhorn

 

12.5%

 

 

69

 

 

 

69

 

Other

 

Various

 

 

47

 

 

 

54

 

      Total

 

 

 

$

713

 

 

$

727

 
v3.25.1
Debt And Related Expenses (Tables)
 3 Months Ended
Mar. 31, 2025
Debt Instrument [Line Items]  
Schedule Of Debt Instruments and Balances

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

 

 

 

March 31, 2025

 

 

December 31, 2024

 

5.85% due December 15, 2025

 

$

485

 

 

$

485

 

7.50% due September 15, 2027

 

 

73

 

 

 

73

 

5.25% due October 15, 2027

 

 

390

 

 

 

390

 

5.875% due June 15, 2028

 

 

325

 

 

 

325

 

4.50% due January 15, 2030

 

 

585

 

 

 

585

 

7.875% due September 30, 2031

 

 

675

 

 

 

675

 

7.95% due April 15, 2032

 

 

366

 

 

 

366

 

5.20% due September 15, 2034

 

 

1,250

 

 

 

1,250

 

5.60% due July 15, 2041

 

 

1,250

 

 

 

1,250

 

4.75% due May 15, 2042

 

 

750

 

 

 

750

 

5.00% due June 15, 2045

 

 

750

 

 

 

750

 

5.75% due September 15, 2054

 

 

1,000

 

 

 

1,000

 

Term Loan due September 25, 2026

 

 

1,000

 

 

 

1,000

 

Net premium on debentures and notes

 

 

34

 

 

 

37

 

Debt issuance costs

 

 

(53

)

 

 

(53

)

Total debt

 

$

8,880

 

 

$

8,883

 

Less amount classified as short-term debt

 

 

485

 

 

 

485

 

Total long-term debt

 

$

8,395

 

 

$

8,398

 
Schedule Of Net Financing Cost Components

The following schedule includes the components of net financing costs.

 

 

 

Three Months Ended March 31,

 

 

 

2025

 

 

2024

 

Net financing costs:

 

 

 

 

 

 

Interest based on debt outstanding

 

$

127

 

 

$

87

 

Interest income

 

 

(10

)

 

 

(13

)

Other

 

 

6

 

 

 

2

 

Total net financing costs

 

$

123

 

 

$

76

 
v3.25.1
Leases (Tables)
 3 Months Ended
Mar. 31, 2025
Leases [Abstract]  
Schedule of Right-of-use Assets and Lease Liabilities

The following table presents Devon’s right-of-use assets and lease liabilities as of March 31, 2025 and December 31, 2024.

 

 

 

March 31, 2025

 

 

December 31, 2024

 

 

 

Finance

 

 

Operating

 

 

Total

 

 

Finance

 

 

Operating

 

 

Total

 

Right-of-use assets

 

$

19

 

 

$

108

 

 

$

127

 

 

$

248

 

 

$

55

 

 

$

303

 

Lease liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current lease liabilities (1)

 

$

5

 

 

$

45

 

 

$

50

 

 

$

25

 

 

$

28

 

 

$

53

 

Long-term lease liabilities

 

 

14

 

 

 

63

 

 

 

77

 

 

 

293

 

 

 

27

 

 

 

320

 

Total lease liabilities (2)

 

$

19

 

 

$

108

 

 

$

127

 

 

$

318

 

 

$

55

 

 

$

373

 

 

(1)
Current lease liabilities are included in other current liabilities on the consolidated balance sheets.
(2)
Devon has entered into certain leases of equipment related to the exploration, development and production of oil and gas that had terms not yet commenced as of March 31, 2025 and are therefore excluded from the amounts shown above.
v3.25.1
Asset Retirement Obligations (Tables)
 3 Months Ended
Mar. 31, 2025
Asset Retirement Obligation Disclosure [Abstract]  
Summary of Changes in Asset Retirement Obligations

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

 

 

 

Three Months Ended March 31,

 

 

 

2025

 

 

2024

 

Asset retirement obligations as of beginning of period

 

$

807

 

 

$

665

 

Liabilities incurred

 

 

11

 

 

 

8

 

Liabilities settled and divested

 

 

(8

)

 

 

(8

)

Revision and reclassification of estimated obligation

 

 

55

 

 

 

35

 

Accretion expense on discounted obligation

 

 

12

 

 

 

9

 

Asset retirement obligations as of end of period

 

 

877

 

 

 

709

 

Less current portion

 

 

42

 

 

 

26

 

Asset retirement obligations, long-term

 

$

835

 

 

$

683

 
v3.25.1
Stockholders' Equity (Tables)
 3 Months Ended
Mar. 31, 2025
Stockholders' Equity Note [Abstract]  
Summary of Purchases of Common Stock The table below provides information regarding purchases of Devon’s common stock under the $5.0 billion share repurchase program (shares in thousands).

 

 

 

Total Number of
Shares Purchased

 

 

Dollar Value of
Shares Purchased

 

 

Average Price Paid
per Share

 

$5.0 Billion Plan

 

 

 

 

 

 

 

 

 

2021

 

 

13,983

 

 

$

589

 

 

$

42.15

 

2022

 

 

11,708

 

 

 

718

 

 

$

61.36

 

2023

 

 

19,350

 

 

 

992

 

 

$

51.23

 

2024:

 

 

 

 

 

 

 

 

 

First quarter

 

 

4,428

 

 

 

193

 

 

$

43.47

 

Second quarter

 

 

5,188

 

 

 

256

 

 

$

49.40

 

Third quarter

 

 

6,675

 

 

 

295

 

 

$

44.23

 

Fourth quarter

 

 

7,653

 

 

 

300

 

 

$

39.22

 

2024 Total

 

 

23,944

 

 

 

1,044

 

 

$

43.61

 

2025:

 

 

 

 

 

 

 

 

 

First quarter

 

 

8,505

 

 

 

301

 

 

$

35.33

 

Total plan

 

 

77,490

 

 

$

3,644

 

 

$

47.02

 
Schedule of Dividends Payable The following table summarizes Devon’s dividends for the first quarter of 2025 and 2024, respectively.

 

 

Dividends

 

 

Rate Per Share

 

2025:

 

 

 

 

 

First quarter

$

163

 

 

$

0.24

 

2024:

 

 

 

 

 

First quarter (1)

$

299

 

 

$

0.44

 
(1)
In the first quarter of 2024, Devon paid a variable dividend of $0.22 per share for a total of $156 million in addition to its fixed dividend.
v3.25.1
Fair Value Measurements (Tables)
 3 Months Ended
Mar. 31, 2025
Fair Value Disclosures [Abstract]  
Schedule Of Carrying Value And Fair Value Measurement Information For Financial Assets And Liabilities Therefore, such financial assets and liabilities are not presented in the following table.

 

 

 

 

 

 

 

 

 

Fair Value Measurements Using:

 

 

 

Carrying

 

 

Total Fair

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

 

Amount

 

 

Value

 

 

Inputs

 

 

Inputs

 

 

Inputs

 

March 31, 2025 assets (liabilities):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash equivalents

 

$

682

 

 

$

682

 

 

$

682

 

 

$

—

 

 

$

—

 

Commodity derivatives

 

$

68

 

 

$

68

 

 

$

—

 

 

$

68

 

 

$

—

 

Commodity derivatives

 

$

(133

)

 

$

(133

)

 

$

—

 

 

$

(133

)

 

$

—

 

Debt

 

$

(8,880

)

 

$

(8,592

)

 

$

—

 

 

$

(8,592

)

 

$

—

 

December 31, 2024 assets (liabilities):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash equivalents

 

$

319

 

 

$

319

 

 

$

319

 

 

$

—

 

 

$

—

 

Commodity derivatives

 

$

56

 

 

$

56

 

 

$

—

 

 

$

56

 

 

$

—

 

Commodity derivatives

 

$

(33

)

 

$

(33

)

 

$

—

 

 

$

(33

)

 

$

—

 

Debt

 

$

(8,883

)

 

$

(8,520

)

 

$

—

 

 

$

(8,520

)

 

$

—

 

Contingent earnout payments

 

$

20

 

 

$

20

 

 

$

—

 

 

$

—

 

 

$

20

 
v3.25.1
Reportable Segments (Tables)
 3 Months Ended
Mar. 31, 2025
Segment Reporting [Abstract]  
Schedule of Reconciliations of Net Earnings to EBITDAX and Field-Level Cash Margin

The following table reflects Devon's net earnings, assets and capital expenditures for the time periods presented below.

 

 

 

Three Months Ended March 31,

 

 

 

2025

 

 

2024

 

Total revenues

 

$

4,452

 

 

$

3,596

 

 

 

 

 

 

 

 

LOE

 

 

479

 

 

 

380

 

Gathering, processing & transportation

 

 

204

 

 

 

180

 

Production and property taxes

 

 

229

 

 

 

191

 

Total significant expenses

 

 

912

 

 

 

751

 

Marketing and midstream expenses

 

 

1,436

 

 

 

1,133

 

DD&A

 

 

912

 

 

 

722

 

G&A

 

 

130

 

 

 

114

 

Financing costs, net

 

 

123

 

 

 

76

 

Income tax expense

 

 

137

 

 

 

159

 

Other segment items (1)

 

 

293

 

 

 

32

 

Total expenses

 

 

3,943

 

 

 

2,987

 

 

 

 

 

 

 

 

Net earnings

 

$

509

 

 

$

609

 

 

 

 

 

 

 

 

Total assets

 

$

30,928

 

 

$

24,978

 

 

 

 

 

 

 

 

Capital expenditures, including acquisitions

 

$

972

 

 

$

945

 
(1)
Other segment items included in segment net earnings are exploration expenses, asset impairments, asset dispositions and other, net.
v3.25.1
Summary of Significant Accounting Policies (Narrative) (Details) - Williston Acquisition [Member]
shares in Millions, $ in Billions
Sep. 27, 2024
USD ($)
shares
Summary Of Significant Accounting Policies [Line Items]  
Business Combination, Contingent Consideration, Asset, Total $ 5.0
Cash paid related to acquisition $ 3.5
Common Stock [Member]  
Summary Of Significant Accounting Policies [Line Items]  
Number of shares sold in acquisition | shares 37.3
v3.25.1
Summary of Significant Accounting Policies (Schedule of Revenue from Contracts with Customers) (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2025
Mar. 31, 2024
Disaggregation Of Revenue [Line Items]    
Total revenues from contracts with customers $ 4,550 $ 3,741
Oil, Gas and NGL Sales [Member]    
Disaggregation Of Revenue [Line Items]    
Total revenues from contracts with customers 3,126 2,629
Oil, Gas and NGL Sales [Member] | Oil [Member]    
Disaggregation Of Revenue [Line Items]    
Total revenues from contracts with customers 2,414 2,189
Oil, Gas and NGL Sales [Member] | Gas [Member]    
Disaggregation Of Revenue [Line Items]    
Total revenues from contracts with customers 309 128
Oil, Gas and NGL Sales [Member] | NGL [Member]    
Disaggregation Of Revenue [Line Items]    
Total revenues from contracts with customers 403 312
Marketing and Midstream Revenues [Member]    
Disaggregation Of Revenue [Line Items]    
Total revenues from contracts with customers 1,424 1,112
Marketing and Midstream Revenues [Member] | Oil [Member]    
Disaggregation Of Revenue [Line Items]    
Total revenues from contracts with customers 918 807
Marketing and Midstream Revenues [Member] | Gas [Member]    
Disaggregation Of Revenue [Line Items]    
Total revenues from contracts with customers 272 121
Marketing and Midstream Revenues [Member] | NGL [Member]    
Disaggregation Of Revenue [Line Items]    
Total revenues from contracts with customers $ 234 $ 184
v3.25.1
Acquisition and Divestitures (Narrative) (Details)
shares in Millions, $ in Millions
 3 Months Ended
Sep. 27, 2024
USD ($)
shares
Mar. 31, 2025
USD ($)
$ / bbl
$ / MMBTU
shares
Mar. 31, 2024
USD ($)
Dec. 31, 2024
shares
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations And Disposition [Line Items]        
Common stock, shares issued (in shares) | shares   644.0   651.0
Barnett Shale [Member]        
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations And Disposition [Line Items]        
Contingent earnout payments   $ 20 $ 20  
Henry Hub gas price for contingent earnout payment upside | $ / MMBTU   2.75    
WTI oil price for contingent earnout payment upside | $ / bbl   50    
Contingent earnout payment period   The contingent payment period commenced on January 1, 2021, and had a term of four years.    
Williston Acquisition [Member]        
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations And Disposition [Line Items]        
Total consideration for business acquired $ 5,000      
Cash paid related to acquisition $ 3,500      
Williston Acquisition [Member] | Common Stock [Member]        
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations And Disposition [Line Items]        
Common stock, shares issued (in shares) | shares 37.3      
v3.25.1
Acquisitions and Divestitures - Schedule of Preliminary Allocation of the Total Purchase Price (Details) - USD ($)
$ / shares in Units, $ in Millions
 3 Months Ended
Mar. 31, 2025
Dec. 31, 2024
Consideration:    
Devon common stock issued 644,000,000 651,000,000
GME    
Consideration:    
Devon common stock issued 37.3  
Devon closing price on September 27, 2024 $ 38.96  
Total common equity consideration $ 1,455  
Cash consideration 3,567  
Total consideration 5,022  
Assets acquired:    
Cash, cash equivalents and restricted cash 147  
Accounts receivable 219  
Inventory 44  
Other current assets 9  
Proved oil and gas property and equipment 3,056  
Unproved oil and gas property and equipment 1,771  
Other property and equipment, net 210  
Right-of-use assets 29  
Total assets acquired 5,485  
Liabilities assumed:    
Accounts payable 145  
Revenue and royalties payable 209  
Other current liabilities 16  
Asset retirement obligations 75  
Lease liabilities 18  
Total liabilities assumed 463  
Net assets acquired $ 5,022  
v3.25.1
Derivative Financial Instruments (Narrative) (Details)
$ in Millions
Mar. 31, 2025
USD ($)
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Cash collateral posted $ 0
v3.25.1
Derivative Financial Instruments (Schedule Of Open Oil Derivative Positions) (Details)
 3 Months Ended
Mar. 31, 2025
$ / bbl
$ / Customer
bbl
NYMEX West Texas Intermediate Price Collars Oil Q2 Q4 2025 [Member]  
Derivatives, Fair Value [Line Items]  
Volume Per Day (Bbls/d) | bbl 103,015
Weighted Average Floor Price 66.41
Weighted Average Ceiling Price 75.37
NYMEX West Texas Intermediate Three Way Price Collars Oil Q2 Q4 2025 [Member]  
Derivatives, Fair Value [Line Items]  
Volume Per Day (Bbls/d) | bbl 13,000
Weighted Average Floor Sold Price 50.77
Weighted Average Floor Price 65
Weighted Average Ceiling Price 77.37
NYMEX West Texas Intermediate Three Way Price Collars Oil Q1 Q4 2026 [Member]  
Derivatives, Fair Value [Line Items]  
Volume Per Day (Bbls/d) | bbl 2,479
Weighted Average Floor Sold Price | $ / Customer 50.00
Weighted Average Floor Price 65
Weighted Average Ceiling Price 77.91
Midland Sweet Q1-Q4 2026 [Member]  
Derivatives, Fair Value [Line Items]  
Volume Per Day (Bbls/d) | bbl 32,000
Weighted Average Differential To WTI Price 1.13
Nymex West Texas Intermediate Price Swaps Oil Q2-Q4 2025 [Member]  
Derivatives, Fair Value [Line Items]  
Volume Per Day (Bbls/d) | bbl 10,985
Weighted Average Price Swap 71.82
Midland Sweet Q2 Q4 2025 [Member]  
Derivatives, Fair Value [Line Items]  
Volume Per Day (Bbls/d) | bbl 63,000
Weighted Average Differential To WTI Price 1
NymexRollQ2-Q42025 [Member]  
Derivatives, Fair Value [Line Items]  
Volume Per Day (Bbls/d) | bbl 4,000
Weighted Average Differential To WTI Price 0.91
v3.25.1
Derivative Financial Instruments (Schedule Of Open Natural Gas Derivative Positions) (Details)
 3 Months Ended
Mar. 31, 2025
MMBTU
$ / MMBTU
$ / Customer
FERC Henry Hub Price Swaps Natural Gas Q2-Q4 2025 [Member]  
Derivatives, Fair Value [Line Items]  
Volume Per Day (MMBtu/d) 296,167
Weighted Average Price Swap | $ / MMBTU 3.41
Ferchenry Hub Price Swaps Natural Gas Q1-Q4 2026 [Member]  
Derivatives, Fair Value [Line Items]  
Volume Per Day (MMBtu/d) 217,500
Weighted Average Price Swap | $ / MMBTU 3.72
FERC Henry Hub Price Collars Natural Gas Q2-Q4 2025 [Member]  
Derivatives, Fair Value [Line Items]  
Volume Per Day (MMBtu/d) 170,000
Weighted Average Floor Price | $ / Customer 3
Weighted Average Ceiling Price | $ / Customer 3.8
Ferchenry Hub Price Collars Natural Gas Q1-Q4 2026 [Member]  
Derivatives, Fair Value [Line Items]  
Volume Per Day (MMBtu/d) 160,000
Weighted Average Floor Price | $ / Customer 3.14
Weighted Average Ceiling Price | $ / Customer 4.88
Waha Natural Gas Basis Swaps Q1- Q4 2026 [Member]  
Derivatives, Fair Value [Line Items]  
Volume Per Day (MMBtu/d) 20,000
Weighted Average Differential To Henry Hub | $ / MMBTU (1.3)
Houston Ship Channel Natural Gas Basis Swap Q2 Q4 2025 [Member]  
Derivatives, Fair Value [Line Items]  
Volume Per Day (MMBtu/d) 230,000
Weighted Average Differential To Henry Hub | $ / MMBTU (0.35)
Waha Natural Gas Basis Swaps Q2-Q4 2025 [Member]  
Derivatives, Fair Value [Line Items]  
Volume Per Day (MMBtu/d) 110,000
Weighted Average Differential To Henry Hub | $ / MMBTU (1.11)
Houston Ship Channel Natural Gas Basis Swaps Q1-Q4 2026 [Member]  
Derivatives, Fair Value [Line Items]  
Volume Per Day (MMBtu/d) 50,000
Weighted Average Differential To Henry Hub | $ / MMBTU (0.29)
v3.25.1
Derivative Financial Instruments (Schedule Of Open NGL Derivative Positions) (Details)
 3 Months Ended
Mar. 31, 2025
$ / bbl
bbl
Q4 2024 Natural Gasoline [Member]  
Derivatives, Fair Value [Line Items]  
Volume Per Day (Bbls/d) | bbl 3,000
Weighted Average Price Swap | $ / bbl 63.35
Q4 2024 Normal Butane [Member]  
Derivatives, Fair Value [Line Items]  
Volume Per Day (Bbls/d) | bbl 323
Weighted Average Price Swap | $ / bbl 39.9
Q4 2024 Propane [Member]  
Derivatives, Fair Value [Line Items]  
Volume Per Day (Bbls/d) | bbl 3,000
Weighted Average Price Swap | $ / bbl 32.29
v3.25.1
Derivative Financial Instruments (Schedule Of Derivative Financial Instruments Included In The Consolidated Balance Sheets) (Details) - USD ($)
$ in Millions
Mar. 31, 2025
Dec. 31, 2024
Derivatives Fair Value [Line Items]    
Gross Fair Value $ (65) $ 23
Amounts Netted 0 0
Net Fair Value (65) 23
Short-term Derivative Asset [Member]    
Derivatives Fair Value [Line Items]    
Gross Fair Value 133 78
Amounts Netted (68) (23)
Net Fair Value 65 55
Long-term Derivative Asset [Member]    
Derivatives Fair Value [Line Items]    
Gross Fair Value 11 5
Amounts Netted (8) (4)
Net Fair Value 3 1
Short-term Derivative Liability [Member]    
Derivatives Fair Value [Line Items]    
Gross Fair Value (165) (37)
Amounts Netted 68 23
Net Fair Value (97) (14)
Long-term Derivative Liability [Member]    
Derivatives Fair Value [Line Items]    
Gross Fair Value (44) (23)
Amounts Netted 8 4
Net Fair Value $ (36) $ (19)
v3.25.1
Share-Based Compensation (Schedule Of Share-Based Compensation Expense Included In The Consolidated Statements Of Comprehensive Earnings) (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2025
Mar. 31, 2024
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]    
Share-based compensation expense $ 30 $ 24
Related income tax benefit 3 9
G&A [Member]    
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]    
Share-based compensation expense 24 24
Restructuring and Transaction Costs [Member]    
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]    
Share-based compensation expense $ 6 $ 0
v3.25.1
Share-Based Compensation (Summary Of Unvested Restricted Stock Awards, Performance-Based Restricted Stock Awards And Performance Share Units) (Details)
shares in Thousands
 3 Months Ended
Mar. 31, 2025
$ / shares
shares
Restricted Stock Awards [Member]  
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]  
Unvested at December 31, 2024 | shares 4,107
Granted, awards and units | shares 2,432
Vested, awards and units | shares (1,192)
Forfeited, awards and units | shares (16)
Unvested at March 31, 2025 | shares 5,331
Unvested weighted average grant-date fair value at December 31, 2024 | $ / shares $ 45.31
Granted, weighted average grant-date fair value | $ / shares 34.26
Vested, weighted average grant-date fair value | $ / shares 46.88
Forfeited, weighted average grant-date fair value | $ / shares 39.4
Unvested weighted average grant-date fair value at March 31, 2025 | $ / shares $ 39.93
Performance Share Units [Member]  
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]  
Unvested at December 31, 2024 | shares 1,179
Granted, awards and units | shares 510
Vested, awards and units | shares (272)
Forfeited, awards and units | shares (90)
Unvested at March 31, 2025 | shares 1,327 [1]
Unvested weighted average grant-date fair value at December 31, 2024 | $ / shares $ 67.38
Granted, weighted average grant-date fair value | $ / shares 45.92
Vested, weighted average grant-date fair value | $ / shares 68.68
Forfeited, weighted average grant-date fair value | $ / shares 68.68
Unvested weighted average grant-date fair value at March 31, 2025 | $ / shares $ 58.77
[1] A maximum of 2.7 million common shares could be awarded based upon Devon’s final TSR ranking.
v3.25.1
Share-Based Compensation (Summary Of Unvested Restricted Stock Awards, Performance-Based Restricted Stock Awards And Performance Share Units) (Parenthetical) (Details)
shares in Millions
 3 Months Ended
Mar. 31, 2025
shares
Performance Share Units [Member] | Maximum [Member]  
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]  
Maximum common shares that could be awarded based upon total shareholder return 2.7
v3.25.1
Share-Based Compensation (Summary Of Performance Share Units Grant-Date Fair Values And Their Related Assumptions) (Details) - Including Performance Factor Shares Granted [Member]
 3 Months Ended
Mar. 31, 2025
$ / shares
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]  
Grant-date fair value $ 45.92
Risk-free interest rate 4.29%
Volatility factor 38.70%
Contractual term (years) 2 years 10 months 20 days
v3.25.1
Share-Based Compensation (Summary of Unrecognized Compensation Cost And Weighted Average Period For Recognition) (Details)
 3 Months Ended
Mar. 31, 2025
USD ($)
Restricted Stock Awards [Member]  
Unrecognized Compensation And Weighted Average Recognition [Line Items]  
Unrecognized compensation cost $ 159
Weighted average period for recognition (years) 3 years
Performance Share Units [Member]  
Unrecognized Compensation And Weighted Average Recognition [Line Items]  
Unrecognized compensation cost $ 30
Weighted average period for recognition (years) 2 years 3 months 18 days
v3.25.1
Asset Impairments (Additional Information) (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2025
Mar. 31, 2024
Asset Impairments [Line Items]    
Asset impairments $ 254 $ 0
Devon [Member]    
Asset Impairments [Line Items]    
Asset impairments 254  
Sale proceeds $ 120  
v3.25.1
Income Taxes (Schedule Of Effective Income Tax Rate Reconciliation) (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2025
Mar. 31, 2024
Income Tax Disclosure [Abstract]    
Earnings before income taxes $ 646 $ 768
Current income tax expense 96 119
Deferred income tax expense 41 40
Total income tax expense $ 137 $ 159
U.S. statutory income tax rate 21.00% 21.00%
State income taxes 1.00% 1.00%
Other (1.00%) (1.00%)
Effective income tax rate 21.00% 21.00%
v3.25.1
Net Earnings Per Share (Net Earnings (Loss) Per Share Computations from Continuing Operations) (Details) - USD ($)
$ / shares in Units, shares in Millions, $ in Millions
 3 Months Ended
Mar. 31, 2025
Mar. 31, 2024
Earnings Per Share [Abstract]    
Net earnings available to common shareholders - basic $ 494 $ 596
Net earnings available to common shareholders - diluted $ 494 $ 596
Common shares:    
Average common shares outstanding - basic 643 629
Dilutive effect of potential common shares issuable 2 3
Average common shares outstanding - diluted 645 632
Net earnings per share available to common shareholders:    
Basic $ 0.77 $ 0.95
Diluted $ 0.77 $ 0.94
v3.25.1
Other Comprehensive Earnings (Loss) (Components Of Other Comprehensive Earnings (Loss)) (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2025
Mar. 31, 2024
Pension and postretirement benefit plans:    
Beginning accumulated pension and postretirement benefits $ (122) $ (124)
Recognition of net actuarial loss and prior service cost in earnings [1] 1 1
Ending accumulated pension and postretirement benefits $ (121) $ (123)
[1] Recognition of net actuarial loss and prior service cost are included in the computation of net periodic benefit cost, which is a component of other, net in the accompanying consolidated statements of comprehensive earnings.
v3.25.1
Supplemental Information to Statements of Cash Flows (Schedule Of Supplemental Information To Statements Of Cash Flows) (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2025
Mar. 31, 2024
Changes in assets and liabilities, net:    
Accounts receivable $ (63) $ (96)
Other current assets (35) (23)
Other long-term assets (85) 49
Accounts payable and revenues and royalties payable 248 143
Other current liabilities (57) 116
Other long-term liabilities 109 (19)
Total 117 170
Supplementary cash flow data:    
Interest paid 160 63
Income taxes refunded $ 0 $ (4)
v3.25.1
Accounts Receivable (Schedule Of Components Of Accounts Receivable) (Details) - USD ($)
$ in Millions
Mar. 31, 2025
Dec. 31, 2024
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Joint interest billings $ 367 $ 341
Other 32 42
Gross accounts receivable 2,043 1,978
Allowance for doubtful accounts (7) (6)
Net accounts receivable 2,036 1,972
Oil Gas And N G L Sales [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Gross accounts receivable 1,151 1,130
Marketing And Midstream Revenues [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Gross accounts receivable $ 493 $ 465
v3.25.1
Property, Plant and Equipment (Summary of Property and Equipment, net) (Details) - USD ($)
$ in Millions
Mar. 31, 2025
Dec. 31, 2024
Property and equipment:    
Proved $ 54,814 $ 53,647
Unproved and properties under development 2,775 2,814
Total oil and gas 57,589 56,461
Less accumulated DD&A (34,160) (33,263)
Oil and gas property and equipment, net 23,429 23,198
Other property and equipment 2,510 2,671
Less accumulated DD&A (857) (858)
Other property and equipment, net [1] 1,653 1,813
Total property and equipment, net $ 25,082 $ 25,011
[1] $189 million and $178 million related to CDM in 2025 and 2024, respectively.
v3.25.1
Property, Plant and Equipment (Summary of Property and Equipment, net) (Parenthetical) (Details) - USD ($)
$ in Millions
Mar. 31, 2025
Dec. 31, 2024
Mar. 31, 2024
Property Plant And Equipment [Line Items]      
Other property and equipment, net [1] $ 1,653 $ 1,813  
CDM [Member]      
Property Plant And Equipment [Line Items]      
Other property and equipment, net $ 189 $ 178 $ 178
[1] $189 million and $178 million related to CDM in 2025 and 2024, respectively.
v3.25.1
Investments - Summary of Components of Investment (Details) - USD ($)
$ in Millions
Mar. 31, 2025
Dec. 31, 2024
Schedule of Investments [Line Items]    
Investments $ 713 $ 727
Catalyst [Member]    
Schedule of Investments [Line Items]    
% Interest 50.00%  
Investments $ 266 273
Water JV [Member]    
Schedule of Investments [Line Items]    
% Interest 30.00%  
Investments $ 218 216
Fervo [Member]    
Schedule of Investments [Line Items]    
% Interest 17.00%  
Investments $ 113 115
Matterhorn [Member]    
Schedule of Investments [Line Items]    
% Interest 12.50%  
Investments $ 69 69
Other [Member]    
Schedule of Investments [Line Items]    
Investments $ 47 $ 54
v3.25.1
Investments - (Additional Information) (Details) - USD ($)
$ in Millions
May 05, 2025
Mar. 31, 2025
Dec. 31, 2024
Schedule of Investments [Line Items]      
Investments   $ 713 $ 727
Matterhorn [Member]      
Schedule of Investments [Line Items]      
Investments   $ 69 $ 69
Matterhorn [Member] | Subsequent Event [Member]      
Schedule of Investments [Line Items]      
Investments $ 375    
v3.25.1
Debt And Related Expenses (Schedule Of Debt Instruments and Balances) (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2025
Dec. 31, 2024
Debt Instrument [Line Items]    
Net premium on debentures and notes $ 34 $ 37
Debt issuance costs (53) (53)
Total debt 8,880 8,883
Less amount classified as short-term debt 485 485
Long-term debt 8,395 8,398
5.85% due December 15, 2025 [Member]    
Debt Instrument [Line Items]    
Long-term debt, gross $ 485 $ 485
Charge on early retirement of debt, cash retirement costs 5.85% 5.85%
Debt, maturity date Dec. 15, 2025  
7.50% due September 15, 2027 [Member]    
Debt Instrument [Line Items]    
Long-term debt, gross $ 73 $ 73
Charge on early retirement of debt, cash retirement costs 7.50% 7.50%
Debt, maturity date Sep. 15, 2027  
5.25% due October 15, 2027 [Member]    
Debt Instrument [Line Items]    
Long-term debt, gross $ 390 $ 390
Charge on early retirement of debt, cash retirement costs 5.25% 5.25%
Debt, maturity date Oct. 15, 2027  
5.875% due June 15, 2028 [Member]    
Debt Instrument [Line Items]    
Long-term debt, gross $ 325 $ 325
Charge on early retirement of debt, cash retirement costs 5.875% 5.875%
Debt, maturity date Jun. 15, 2028  
4.50% due January 15, 2030 [Member]    
Debt Instrument [Line Items]    
Long-term debt, gross $ 585 $ 585
Charge on early retirement of debt, cash retirement costs 4.50% 4.50%
Debt, maturity date Jan. 15, 2030  
7.875% due September 30, 2031 [Member]    
Debt Instrument [Line Items]    
Long-term debt, gross $ 675 $ 675
Charge on early retirement of debt, cash retirement costs 7.875% 7.875%
Debt, maturity date Sep. 30, 2031  
7.95% due April 15, 2032 [Member]    
Debt Instrument [Line Items]    
Long-term debt, gross $ 366 $ 366
Charge on early retirement of debt, cash retirement costs 7.95% 7.95%
Debt, maturity date Apr. 15, 2032  
5.20% due September 15, 2034 [Member]    
Debt Instrument [Line Items]    
Long-term debt, gross $ 1,250 $ 1,250
Charge on early retirement of debt, cash retirement costs 5.20% 5.20%
Debt, maturity date Sep. 15, 2034  
5.60% due July 15, 2041 [Member]    
Debt Instrument [Line Items]    
Long-term debt, gross $ 1,250 $ 1,250
Charge on early retirement of debt, cash retirement costs 5.60% 5.60%
Debt, maturity date Jul. 15, 2041  
4.75% due May 15, 2042 [Member]    
Debt Instrument [Line Items]    
Long-term debt, gross $ 750 $ 750
Charge on early retirement of debt, cash retirement costs 4.75% 4.75%
Debt, maturity date May 15, 2042  
5.00% due June 15, 2045 [Member]    
Debt Instrument [Line Items]    
Long-term debt, gross $ 750 $ 750
Charge on early retirement of debt, cash retirement costs 5.00% 5.00%
Debt, maturity date Jun. 15, 2045  
5.75% due September 15, 2054 [Member]    
Debt Instrument [Line Items]    
Long-term debt, gross $ 1,000 $ 1,000
Charge on early retirement of debt, cash retirement costs 5.75% 5.75%
Debt, maturity date Sep. 15, 2054  
Term Loan due September 25, 2026    
Debt Instrument [Line Items]    
Long-term debt, gross $ 1,000 $ 1,000
Debt, maturity date Sep. 25, 2026  
v3.25.1
Debt And Related Expenses (Narrative) (Details)
$ in Millions
 3 Months Ended
Sep. 15, 2024
USD ($)
Aug. 12, 2024
USD ($)
Mar. 31, 2025
USD ($)
Aug. 28, 2024
USD ($)
Debt Instrument [Line Items]        
Maturity date extension     in the first quarter of 2025, Devon exercised its option to extend the Senior Credit Facility maturity date from March 24, 2029 to March 24, 2030  
Term Loan Credit Agreement [Member]        
Debt Instrument [Line Items]        
Aggregate Principal Amount   $ 2,000    
Outstanding credit facility borrowings   1,000    
Debt-to-capitalization ratio     0.263  
Interest rate on the term loan     5.80%  
Senior Credit Facility [Member]        
Debt Instrument [Line Items]        
Credit facility, borrowing capacity     $ 3,000  
Outstanding credit facility borrowings     $ 0  
Debt-to-capitalization ratio     0.263  
Outstanding letters of credit     $ 4  
Senior Credit Facility [Member] | Maximum [Member]        
Debt Instrument [Line Items]        
Debt-to-capitalization ratio     0.65  
Tranche One [Member] | Term Loan Credit Agreement [Member]        
Debt Instrument [Line Items]        
Aggregate Principal Amount   500,000    
Tranche Two [Member] | Term Loan Credit Agreement [Member]        
Debt Instrument [Line Items]        
Aggregate Principal Amount   $ 1,500    
Senior Notes [Member] | Devon [Member]        
Debt Instrument [Line Items]        
Repayments of Related Party Debt $ 472      
Debt interest rate, stated percentage 5.25%      
5.2% due 2034 [Member] | Senior Notes [Member]        
Debt Instrument [Line Items]        
Issuance of Senior Long-Term Debt       $ 1,250
Debt interest rate, stated percentage       5.20%
5.75% due 2054 [Member] | Senior Notes [Member]        
Debt Instrument [Line Items]        
Issuance of Senior Long-Term Debt       $ 1,000
Debt interest rate, stated percentage       5.75%
v3.25.1
Debt And Related Expenses (Schedule of Net Financing Cost Components) (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2025
Mar. 31, 2024
Debt Disclosure [Abstract]    
Interest based on debt outstanding $ 127 $ 87
Interest income (10) (13)
Other 6 2
Total net financing costs $ 123 $ 76
v3.25.1
Leases (Schedule of Right-of-use Assets and Lease Liabilities) (Details) - USD ($)
$ in Millions
Mar. 31, 2025
Dec. 31, 2024
Leases [Abstract]    
Right-of-use assets, finance lease $ 19 $ 248
Finance lease liabilities:    
Current lease liabilities, finance lease [1] 5 25
Long-term lease liabilities, finance lease 14 293
Total lease liabilities, finance lease [2] 19 318
Right-of-use assets, operating lease 108 55
Operating lease liabilities:    
Current lease liabilities, operating lease [1] 45 28
Long-term lease liabilities, operating lease 63 27
Total lease liabilities, operating lease [2] 108 55
Right-of-use assets 127 303
Lease liabilities:    
Current lease liabilities [1] 50 53
Long-term lease liabilities 77 320
Total lease liabilities [2] $ 127 $ 373
[1] Current lease liabilities are included in other current liabilities on the consolidated balance sheets
[2] Devon has entered into certain leases of equipment related to the exploration, development and production of oil and gas that had terms not yet commenced as of March 31, 2025 and are therefore excluded from the amounts shown above.
v3.25.1
Leases (Additional Information) (Details)
$ in Millions
 3 Months Ended
Mar. 31, 2025
USD ($)
Lessee, Lease, Description [Line Items]  
Extinguishment of real estate finance lease $ 300
Gain on early lease extinguishment $ 274
v3.25.1
Asset Retirement Obligations (Summary of Changes in Asset Retirement Obligations) (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2025
Mar. 31, 2024
Dec. 31, 2024
Asset Retirement Obligation Disclosure [Abstract]      
Asset retirement obligations as of beginning of period $ 807 $ 665  
Liabilities incurred 11 8  
Liabilities settled and divested (8) (8)  
Revision and reclassification of estimated obligation 55 35  
Accretion expense on discounted obligation 12 9  
Asset retirement obligations as of end of period 877 709  
Less current portion 42 26  
Asset retirement obligations, long-term $ 835 $ 683 $ 770
v3.25.1
Asset Retirement Obligations (Narrative) (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2025
Mar. 31, 2024
Asset Retirement Obligation Disclosure [Abstract]    
Asset retirement obligation, assumed $ 55 $ 35
v3.25.1
Stockholders' Equity (Narrative) (Details) - USD ($)
$ / shares in Units, shares in Millions, $ in Millions
 3 Months Ended
Sep. 27, 2024
Mar. 31, 2025
Mar. 31, 2024
May 31, 2025
Stockholders Equity [Line Items]        
Dividend payable, per share     $ 0.22  
Dividend payable amount     $ 156.0  
Rate Per Share   $ 0.24 $ 0.44 [1]  
Maximum [Member]        
Stockholders Equity [Line Items]        
Rate Per Share   0.24    
Minimum [Member]        
Stockholders Equity [Line Items]        
Rate Per Share   $ 0.22    
Fixed Dividends Year To Date March 31, 2025 [Member]        
Stockholders Equity [Line Items]        
Percentage of increase to quarterly dividend   9.00%    
Devon [Member]        
Stockholders Equity [Line Items]        
Cash Transaction $ 3.5      
Common shares issued for business acquisition 37.3      
Common stock value for business acquisition $ 1.5      
Common shares issued price per share for business acquisition $ 38.96      
Subsequent Event        
Stockholders Equity [Line Items]        
Dividend payable, per share       $ 0.24
Dividend payable amount       $ 154.0
Dividends payable, year       2025
Williston Basin Business [Member]        
Stockholders Equity [Line Items]        
Total consideration for business acquired $ 5.0      
Share Repurchase Program [Member]        
Stockholders Equity [Line Items]        
Repurchase of common stock   $ 5,000.0    
Five Billion Dollar Share Repurchase Program Open [Member]        
Stockholders Equity [Line Items]        
Repurchase of common stock   $ 5,000.0    
Repurchase program expiration date   Jun. 30, 2026    
[1] In the first quarter of 2024, Devon paid a variable dividend of $0.22 per share for a total of $156 million in addition to its fixed dividend.
v3.25.1
Stockholders' Equity (Summary of Purchases of Common Stock) (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Millions
 3 Months Ended 12 Months Ended
Mar. 31, 2025
Dec. 31, 2024
Sep. 30, 2024
Jun. 30, 2024
Mar. 31, 2024
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
5.0 Billion Dollar Share Repurchase Program Closed [Member]                  
Stockholders Equity [Line Items]                  
Total Number of Shares Purchased 8,505 7,653 6,675 5,188 4,428 23,944 19,350 11,708 13,983
Dollar Value of Shares Purchased $ 301 $ 300 $ 295 $ 256 $ 193 $ 1,044 $ 992 $ 718 $ 589
Average Price Paid per Share $ 35.33 $ 39.22 $ 44.23 $ 49.4 $ 43.47 $ 43.61 $ 51.23 $ 61.36 $ 42.15
Share Repurchase Program Open [Member]                  
Stockholders Equity [Line Items]                  
Total Number of Shares Purchased 77,490                
Dollar Value of Shares Purchased $ 3,644                
Average Price Paid per Share $ 47.02                
v3.25.1
Stockholders' Equity (Summary Of Dividends Paid On Common Stock) (Details) - USD ($)
$ / shares in Units, $ in Millions
 3 Months Ended
Mar. 31, 2025
Mar. 31, 2024
Stockholders Equity [Line Items]    
Rate Per Share $ 0.24 $ 0.44 [1]
Variable Dividend Date March 31, 2024    
Stockholders Equity [Line Items]    
Dividends [1]   $ 299
Fixed Dividends Year To Date March 31, 2025    
Stockholders Equity [Line Items]    
Dividends $ 163  
[1] In the first quarter of 2024, Devon paid a variable dividend of $0.22 per share for a total of $156 million in addition to its fixed dividend.
v3.25.1
Stockholders' Equity - (Summary Of Dividends Paid On Common Stock) (Parenthetical) (Details)
$ / shares in Units, $ in Millions
Mar. 31, 2024
USD ($)
$ / shares
Stockholders' Equity Note [Abstract]  
Dividend payable, per share | $ / shares $ 0.22
Dividend payable amount | $ $ 156
v3.25.1
Commitments and Contingencies (Narrative) (Details)
$ in Millions
 3 Months Ended
Mar. 31, 2025
USD ($)
Commitments and Contingencies Disclosure [Abstract]  
Other accrued liabilities current $ 40
Contingent liability 125
Estimated decommissioning costs 100
Other Long-Term Investments 100
Difference of decommissioning obligation and available bond 25
Accrued approximation $ 200
v3.25.1
Fair Value Measurements (Schedule Of Carrying Value And Fair Value Measurement Information For Financial Assets And Liabilities) (Details) - USD ($)
$ in Millions
Mar. 31, 2025
Mar. 31, 2024
Carrying Amount [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash equivalents $ 319 $ 682
Debt (8,880) (8,883)
Contingent earnout payments   20
Carrying Amount [Member] | Commodity Derivatives [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivatives, assets 56 68
Derivatives, liabilities (33) (133)
Total Fair Value [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash equivalents 319 682
Debt (8,592) (8,520)
Contingent earnout payments   20
Total Fair Value [Member] | Commodity Derivatives [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivatives, assets 56 68
Derivatives, liabilities (33) (133)
Level 1 Inputs [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash equivalents 319 682
Level 2 Inputs [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Debt (8,592) (8,520)
Level 2 Inputs [Member] | Commodity Derivatives [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivatives, assets 56 68
Derivatives, liabilities $ (33) (133)
Level 3 Inputs [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Contingent earnout payments   $ 20
v3.25.1
Reportable Segments - Schedule of Reconciliations of Net Earnings to EBITDAX and Field-Level Cash Margin (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2025
Mar. 31, 2024
Dec. 31, 2024
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]      
Total revenues $ 4,452 $ 3,596  
LOE 479 380  
Gathering, processing & transportation 204 180  
Production and property taxes 229 191  
Total significant expenses 912 751  
DD&A 912 722  
G&A 130 114  
Financing costs, net 123 76  
Income tax expense 137 159  
Other segment items [1] 293 32  
Total expenses 3,943 2,987  
Net earnings 509 609  
Total assets 30,928 24,978 $ 30,489
Capital expenditures, including acquisitions 972 945  
Marketing and Midstream Expenses [Member]      
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]      
Marketing and midstream expenses $ 1,436 $ 1,133  
[1] Other segment items included in segment net earnings are exploration expenses, asset impairments, asset dispositions and other, net.