DEVON ENERGY CORP/DE, 10-Q filed on 5/1/2019
Quarterly Report
v3.19.1
Document And Entity Information - shares
shares in Millions
3 Months Ended
Mar. 31, 2019
Apr. 17, 2019
Document And Entity Information [Abstract]    
Document Type 10-Q  
Document Period End Date Mar. 31, 2019  
Amendment Flag false  
Trading Symbol DVN  
Entity Registrant Name DEVON ENERGY CORP/DE  
Entity Central Index Key 0001090012  
Current Fiscal Year End Date --12-31  
Document Fiscal Year Focus 2019  
Entity Filer Category Large Accelerated Filer  
Entity Small Business false  
Entity Emerging Growth Company false  
Document Fiscal Period Focus Q1  
Entity Common Stock, Shares Outstanding   415.2
v3.19.1
Consolidated Comprehensive Statements Of Earnings - USD ($)
$ in Millions
3 Months Ended
Mar. 31, 2019
Mar. 31, 2018
Income Statement [Abstract]    
Upstream revenues $ 710 $ 1,319
Revenues $ 791 $ 879
Type of Revenue [Extensible List] us-gaap:NaturalGasGatheringTransportationMarketingAndProcessingMember us-gaap:NaturalGasGatheringTransportationMarketingAndProcessingMember
Total revenues $ 1,501 $ 2,198
Production expenses 506 543
Exploration expenses 13 33
Expenses $ 759 $ 873
Type of Cost, Good or Service [Extensible List] us-gaap:NaturalGasGatheringTransportationMarketingAndProcessingMember us-gaap:NaturalGasGatheringTransportationMarketingAndProcessingMember
Depreciation, depletion and amortization $ 459 $ 399
Asset dispositions (44) (12)
General and administrative expenses 153 199
Financing costs, net 73 387
Restructuring and transaction costs 54  
Other expenses (45) 21
Total expenses 1,928 2,443
Loss from continuing operations before income taxes (427) (245)
Income tax benefit (110) (34)
Net loss from continuing operations (317) (211)
Net earnings from discontinued operations, net of income tax expense   58
Net loss (317) (153)
Net earnings attributable to noncontrolling interests   44
Net loss attributable to Devon $ (317) $ (197)
Basic net loss per share:    
Basic loss from continuing operations per share $ (0.74) $ (0.41)
Basic earnings from discontinued operations per share   0.03
Basic net loss per share (0.74) (0.38)
Diluted net loss per share:    
Diluted loss from continuing operations per share (0.74) (0.41)
Diluted earnings from discontinued operations per share   0.03
Diluted net loss per share $ (0.74) $ (0.38)
Comprehensive loss:    
Net loss $ (317) $ (153)
Other comprehensive earnings (loss), net of tax:    
Foreign currency translation 35 (48)
Pension and postretirement plans 2 4
Other comprehensive earnings (loss), net of tax 37 (44)
Comprehensive loss (280) (197)
Comprehensive earnings attributable to noncontrolling interests   44
Comprehensive loss attributable to Devon $ (280) $ (241)
v3.19.1
Consolidated Statements Of Cash Flows - USD ($)
$ in Millions
3 Months Ended
Mar. 31, 2019
Mar. 31, 2018
Cash flows from operating activities:    
Net loss $ (317) $ (153)
Adjustments to reconcile net loss to net cash from operating activities:    
Net earnings from discontinued operations, net of income tax expense   (58)
Depreciation, depletion and amortization 459 399
Leasehold impairments 1 8
Accretion on discounted liabilities 17 16
Total losses on commodity derivatives 709 41
Cash settlements on commodity derivatives (43) 11
Gains on asset dispositions (44) (12)
Deferred income tax benefit (107) (38)
Share-based compensation 48 38
Early retirement of debt   312
Total (gains) losses on foreign exchange (34) 50
Other (10) (29)
Changes in assets and liabilities, net (302) 25
Net cash from operating activities - continuing operations 377 610
Cash flows from investing activities:    
Capital expenditures (548) (651)
Acquisitions of property and equipment (11) (6)
Divestitures of property and equipment 311 47
Net cash from investing activities - continuing operations (248) (610)
Cash flows from financing activities:    
Repayments of long-term debt principal (162) (807)
Early retirement of debt   (304)
Repurchases of common stock (999) (71)
Dividends paid on common stock (34) (32)
Shares exchanged for tax withholdings (26) (38)
Net cash from financing activities - continuing operations (1,221) (1,252)
Effect of exchange rate changes on cash - continuing operations 1 (15)
Net change in cash, cash equivalents and restricted cash of continuing operations (1,091) (1,267)
Cash flows from discontinued operations:    
Operating activities 0 194
Investing activities 0 (180)
Financing activities 0 39
Net change in cash, cash equivalents and restricted cash of discontinued operations   53
Net change in cash, cash equivalents and restricted cash (1,091) (1,214)
Cash, cash equivalents and restricted cash at beginning of period 2,446 2,684
Cash, cash equivalents and restricted cash at end of period 1,355 1,470
Reconciliation of cash, cash equivalents and restricted cash:    
Cash and cash equivalents 1,327 1,407
Restricted cash included in other current assets 28 46
Cash and cash equivalents included in current assets held for sale   17
Cash, cash equivalents and restricted cash at end of period $ 1,355 $ 1,470
v3.19.1
Consolidated Balance Sheets - USD ($)
$ in Millions
Mar. 31, 2019
Dec. 31, 2018
ASSETS    
Cash and cash equivalents $ 1,327 $ 2,414
Accounts receivable 1,038 885
Current assets held for sale   197
Other current assets 338 941
Total current assets 2,703 4,437
Oil and gas property and equipment, based on successful efforts accounting, net 12,766 12,813
Other property and equipment, net 1,098 1,122
Total property and equipment, net 13,864 13,935
Goodwill 841 841
Right-of-use assets 365  
Other long-term assets 304 353
Total assets 18,077 19,566
LIABILITIES AND STOCKHOLDERS' EQUITY    
Accounts payable 603 662
Revenues and royalties payable 850 898
Short-term debt   162
Current liabilities held for sale   69
Other current liabilities 515 435
Total current liabilities 1,968 2,226
Long-term debt 5,786 5,785
Lease liabilities 298  
Asset retirement obligations 938 1,030
Other long-term liabilities 458 462
Deferred income taxes 772 877
Stockholders' equity:    
Common stock, $0.10 par value. Authorized 1.0 billion shares; issued 417 million and 450 million shares in 2019 and 2018, respectively 42 45
Additional paid-in capital 3,518 4,486
Retained earnings 3,280 3,650
Accumulated other comprehensive earnings 1,064 1,027
Treasury stock, at cost, 1.5 million and 1.0 million shares in 2019 and 2018, respectively (47) (22)
Total stockholders’ equity 7,857 9,186
Total liabilities and stockholders' equity $ 18,077 $ 19,566
v3.19.1
Consolidated Balance Sheets (Parenthetical) - $ / shares
Mar. 31, 2019
Dec. 31, 2018
Statement Of Financial Position [Abstract]    
Common stock, par value (in dollars per share) $ 0.10 $ 0.10
Common stock, shares authorized (in shares) 1,000,000,000.0 1,000,000,000.0
Common stock, shares issued (in shares) 417,000,000 450,000,000
Treasury stock, shares 1,500,000 1,000,000.0
v3.19.1
Consolidated Statements Of Equity - USD ($)
shares in Millions, $ in Millions
Total
Common Stock [Member]
Additional Paid-In Capital [Member]
Retained Earnings [Member]
Accumulated Other Comprehensive Earnings [Member]
Treasury Stock [Member]
Noncontrolling Interests [Member]
Balance at Dec. 31, 2017 $ 14,104 $ 53 $ 7,333 $ 702 $ 1,166   $ 4,850
Balance, shares at Dec. 31, 2017   525          
Net earnings (loss) (153)     (197)     44
Other comprehensive earnings (loss), net of tax (44)       (44)    
Restricted stock grants, net of cancellations, shares   3          
Common stock repurchased (111)         $ (111)  
Common stock retired     (99)     99  
Common stock retired, shares   (3)          
Common stock dividends (32)     (32)      
Share-based compensation 36   36        
Share-based compensation, shares   1          
Subsidiary equity transactions 27   (1)       28
Distributions to noncontrolling interests (102)           (102)
Balance at Mar. 31, 2018 13,725 $ 53 7,269 473 1,122 (12) $ 4,820
Balance, shares at Mar. 31, 2018   526          
Effect of adoption of lease accounting (19)     (19)      
Balance at Dec. 31, 2018 9,186 $ 45 4,486 3,650 1,027 (22)  
Balance, shares at Dec. 31, 2018   450          
Net earnings (loss) (317)     (317)      
Other comprehensive earnings (loss), net of tax 37       37    
Restricted stock grants, net of cancellations, shares   3          
Common stock repurchased (1,042)         (1,042)  
Common stock retired   $ (3) (1,014)     1,017  
Common stock retired, shares   (36)          
Common stock dividends (34)     (34)      
Share-based compensation 46   46        
Balance at Mar. 31, 2019 $ 7,857 $ 42 $ 3,518 $ 3,280 $ 1,064 $ (47)  
Balance, shares at Mar. 31, 2019   417          
v3.19.1
Summary Of Significant Accounting Policies
3 Months Ended
Mar. 31, 2019
Accounting Policies [Abstract]  
Summary Of Significant Accounting Policies

1.

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 2018 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, 2019 and 2018 and Devon’s financial position as of March 31, 2019. As further discussed in Note 19, Devon sold its interests in EnLink and the General Partner on July 18, 2018. Activity relating to EnLink and the General Partner are classified as discontinued operations within Devon’s consolidated comprehensive statements of earnings and consolidated statements of cash flows.

Recently Adopted Accounting Standards

 

In January 2019, Devon adopted ASU 2016-02, Leases (Topic 842), using the modified retrospective method. See Note 15 for further discussion regarding Devon’s adoption of the leases standard.

The SEC released Final Rule No. 33 -10532, Disclosure Update and Simplification, which amends various SEC disclosure requirements determined to be redundant, duplicative, overlapping, outdated or superseded as part of the SEC’s ongoing disclosure effectiveness initiative. The rule was effective November 5, 2018. The rule amended numerous SEC rules, items and forms covering a diverse group of topics. Devon has implemented these required changes which generally reduced or eliminated disclosures. Devon adopted the requirement of presenting current and comparative quarterly stockholders’ equity roll forwards in the first quarter of 2019.

Issued Accounting Standards Not Yet Adopted

 

The FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Changes to the Disclosure Requirements for Fair Value Measurement. This ASU will eliminate, add and modify certain disclosure requirements for fair value measurement. The ASU is effective for annual and interim periods beginning January 1, 2020, with early adoption permitted for either the entire standard or only the provisions that eliminate or modify requirements. The ASU requires the additional disclosure requirements to be adopted using a retrospective approach. Devon is currently evaluating the provisions of this ASU and assessing the impact it may have on its disclosures in the notes to the consolidated financial statements.

 

The FASB issued ASU 2018-15, Intangibles, Goodwill and Other Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract. This ASU will require a customer in a cloud computing arrangement (i.e., hosting arrangement) that is a service contract to follow the internal-use software guidance in ASC 350-40 to determine which implementation costs to capitalize as assets or expense as incurred. Capitalized implementation costs related to a hosting arrangement that is a service contract will be amortized over the term of the hosting arrangement, beginning when the module or component of the hosting arrangement is ready for its intended use. This ASU is effective for annual and interim periods beginning January 1, 2020, with early adoption permitted. Entities have the option to adopt the ASU using either a retrospective approach or a prospective approach applied to all implementation costs incurred after the date of the adoption. Devon is currently evaluating the provisions of this ASU and assessing the impact it may have on its consolidated financial statements.

 

The SEC released Final Rule Release No. 33-10618, FAST Act Modernization and Simplification of Regulation S-K, which amends Regulation S-K to modernize and simplify certain disclosure requirements in a manner that reduces costs and burdens on registrants while continuing to provide all material information to investors. The rule is effective May 2, 2019. The rule amends numerous SEC rules, items and forms covering a diverse group of topics. As the changes are generally expected to reduce or eliminate disclosures, Devon is currently evaluating and assessing the impact it may have on its disclosures.

 

v3.19.1
Divestitures
3 Months Ended
Mar. 31, 2019
Business Combinations [Abstract]  
Divestitures

2.Divestitures

2019 Asset Divestitures

In the first quarter of 2019, Devon received proceeds of approximately $300 million and recognized a net gain on asset dispositions of approximately $44 million, primarily from sales of non-core assets in the Permian Basin. In aggregate, the total estimated proved reserves associated with these divested assets were approximately 25 MMBoe, or less than 2% of total U.S. proved reserves. As of December 31, 2018, assets and liabilities associated with these divested assets were classified as held for sale in the accompanying consolidated balance sheet.

 

In February 2019, Devon announced its intent to separate its Canadian business and Barnett Shale assets from the Company, based on authorizations provided by its Board of Directors. Devon is evaluating multiple methods of separation for these assets, including potential sales or spin-offs. As of March 31, 2019, Devon does not currently have any indications that it would recognize an impairment upon separating its Canadian business or its Barnett Shale assets.

 

Devon anticipates reporting all financial information for its Canadian business and Barnett Shale assets as discontinued operations in 2019 when all the requisite criteria are met for such financial statement presentation.

v3.19.1
Derivative Financial Instruments
3 Months Ended
Mar. 31, 2019
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 periodically enters into interest rate swaps to manage its exposure to interest rate volatility and foreign exchange forward contracts to manage its exposure to fluctuations in the U.S. and Canadian dollar exchange rates. As of March 31, 2019, Devon did not have any open interest rate swap or foreign exchange contracts.

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

Counterparty Credit Risk

By using derivative financial instruments, Devon is exposed to credit risk. Credit risk is the failure of the counterparty to perform under the terms of the derivative contract. To mitigate this risk, the hedging instruments are placed with a number of counterparties whom Devon believes are acceptable credit risks. It is Devon’s policy to enter into derivative contracts only with investment-grade rated counterparties deemed by management to be competent and competitive market makers. Additionally, Devon’s derivative contracts generally contain provisions that provide for collateral payments if Devon’s or its counterparty’s credit rating falls below certain credit rating levels.

Commodity Derivatives

As of March 31, 2019, 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 2019

 

 

46,891

 

 

$

59.97

 

 

 

87,484

 

 

$

54.60

 

 

$

64.62

 

Q1-Q4 2020

 

 

3,238

 

 

$

60.13

 

 

 

17,186

 

 

$

51.97

 

 

$

62.12

 

 

 

 

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 2019

 

 

5,000

 

 

$

50.00

 

 

$

63.00

 

 

$

74.80

 

 

 

 

Oil Basis Swaps

 

Period

 

Index

 

Volume

(Bbls/d)

 

 

Weighted Average

Differential to WTI

($/Bbl)

 

Q2-Q4 2019

 

Midland Sweet

 

 

24,945

 

 

$

(0.46

)

Q2-Q4 2019

 

Argus LLS

 

 

8,900

 

 

$

5.10

 

Q2-Q4 2019

 

Argus MEH

 

 

20,945

 

 

$

3.24

 

Q2-Q4 2019

 

NYMEX Roll

 

 

38,000

 

 

$

0.45

 

Q2-Q4 2019

 

Western Canadian Select

 

 

62,762

 

 

$

(19.21

)

Q1-Q4 2020

 

NYMEX Roll

 

 

38,000

 

 

$

0.31

 

Q1-Q4 2020

 

Western Canadian Select

 

 

4,577

 

 

$

(20.80

)

 

As of March 31, 2019, 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 2019

 

 

262,525

 

 

$

2.81

 

 

 

213,884

 

 

$

2.64

 

 

$

3.02

 

Q1-Q4 2020

 

 

51,409

 

 

$

2.86

 

 

 

40,071

 

 

$

2.73

 

 

$

3.03

 

 

 

 

Natural Gas Basis Swaps

 

Period

 

Index

 

Volume

(MMBtu/d)

 

 

Weighted Average

Differential to

Henry Hub

($/MMBtu)

 

Q2-Q4 2019

 

Panhandle Eastern Pipe Line

 

 

63,018

 

 

$

(0.71

)

Q2-Q4 2019

 

El Paso Natural Gas

 

 

130,000

 

 

$

(1.46

)

Q2-Q4 2019

 

Houston Ship Channel

 

 

162,500

 

 

$

0.01

 

Q1-Q4 2020

 

Panhandle Eastern Pipe Line

 

 

30,000

 

 

$

(0.47

)

Q1-Q4 2020

 

El Paso Natural Gas

 

 

40,000

 

 

$

(0.67

)

Q1-Q4 2020

 

Houston Ship Channel

 

 

10,000

 

 

$

0.02

 

 

 

As of March 31, 2019, 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 2019

 

Ethane

 

 

1,000

 

 

$

11.55

 

Q2-Q4 2019

 

Natural Gasoline

 

 

4,500

 

 

$

55.93

 

Q2-Q4 2019

 

Normal Butane

 

 

4,000

 

 

$

33.69

 

Q2-Q4 2019

 

Propane

 

 

8,500

 

 

$

30.01

 

 

Financial Statement Presentation

The following table presents the net gains and losses by derivative financial instrument type followed by the corresponding individual consolidated comprehensive statements of earnings caption.

 

 

Three Months Ended March 31,

 

 

 

2019

 

 

2018

 

Commodity derivatives:

 

 

 

 

 

 

 

 

Upstream revenues

 

$

(709

)

 

$

(41

)

Marketing revenues

 

 

1

 

 

 

 

Interest rate derivatives:

 

 

 

 

 

 

 

 

Other expenses

 

 

 

 

 

46

 

Net gains (losses) recognized

 

$

(708

)

 

$

5

 

 

The following table presents the derivative fair values by derivative financial instrument type followed by the corresponding individual consolidated balance sheet caption.

 

 

March 31, 2019

 

 

December 31, 2018

 

Commodity derivative assets:

 

 

 

 

 

 

 

 

Other current assets

 

$

30

 

 

$

637

 

Other long-term assets

 

 

6

 

 

 

40

 

Total derivative assets

 

$

36

 

 

$

677

 

Commodity derivative liabilities:

 

 

 

 

 

 

 

 

Other current liabilities

 

$

91

 

 

$

67

 

Other long-term liabilities

 

 

6

 

 

 

1

 

Total derivative liabilities

 

$

97

 

 

$

68

 

 

v3.19.1
Share-Based Compensation
3 Months Ended
Mar. 31, 2019
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]  
Share-Based Compensation

4.Share-Based Compensation

 

The table below presents the share-based compensation expense included in Devon’s accompanying consolidated comprehensive statements of earnings. The vesting for certain share-based awards was accelerated in conjunction with the reduction of workforce described in Note 5 and is included in restructuring and transaction costs in the accompanying consolidated comprehensive statements of earnings.

 

 

 

Three Months Ended March 31,

 

 

 

2019

 

 

2018

 

G&A

 

$

26

 

 

$

37

 

Exploration expenses

 

 

1

 

 

 

2

 

Restructuring and transaction costs

 

 

22

 

 

 

 

Total

 

$

49

 

 

$

39

 

Related income tax benefit

 

$

10

 

 

$

1

 

 

Under its approved long-term incentive plan, Devon granted share-based awards to certain employees in the first three months of 2019. The following table presents a summary of Devon’s unvested restricted stock awards and units, performance-based restricted stock awards and performance share units granted under the plan.

 

 

 

Restricted Stock

 

 

Performance-Based

 

 

Performance

 

 

 

Awards and Units

 

 

Restricted Stock Awards

 

 

Share Units

 

 

 

Awards and

Units

 

 

Weighted

Average

Grant-Date

Fair Value

 

 

Awards

 

 

Weighted

Average

Grant-Date

Fair Value

 

 

Units

 

 

 

 

 

Weighted

Average

Grant-Date

Fair Value

 

 

 

(Thousands, except fair value data)

 

Unvested at 12/31/18

 

 

5,963

 

 

$

35.47

 

 

 

302

 

 

$

35.93

 

 

 

2,868

 

 

 

 

 

$

30.14

 

Granted

 

 

4,271

 

 

$

25.47

 

 

 

 

 

$

 

 

 

741

 

 

 

 

 

$

28.97

 

Vested

 

 

(2,505

)

 

$

35.05

 

 

 

(137

)

 

$

37.44

 

 

 

 

 

 

 

 

$

 

Forfeited

 

 

(442

)

 

$

26.83

 

 

 

 

 

$

 

 

 

(1,267

)

 

 

 

 

$

11.15

 

Unvested at 3/31/19

 

 

7,287

 

 

$

30.27

 

 

 

165

 

 

$

34.67

 

 

 

2,342

 

 

(1

)

 

$

40.05

 

 

(1)

A maximum of 4.7 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 2019, as indicated in the previous summary table.

 

 

 

2019

 

Grant-date fair value

 

$

28.43

 

 

 

$

29.53

 

Risk-free interest rate

 

2.48%

 

Volatility factor

 

39.1%

 

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, 2019.

 

 

 

 

 

 

 

Performance-Based

 

 

 

 

 

 

 

Restricted Stock

 

 

Restricted Stock

 

 

Performance

 

 

 

Awards and Units

 

 

Awards

 

 

Share Units

 

Unrecognized compensation cost

 

$

162

 

 

$

 

 

$

33

 

Weighted average period for recognition (years)

 

 

2.8

 

 

 

2.2

 

 

 

1.9

 

 

v3.19.1
Restructuring and Transaction Costs
3 Months Ended
Mar. 31, 2019
Restructuring And Related Activities [Abstract]  
Restructuring and Transaction Costs

 

5.Restructuring and Transaction Costs

Workforce Reductions

During the first quarter of 2019, Devon announced workforce reductions and other initiatives designed to enhance its operational focus and cost structure in conjunction with the portfolio transformation announcement further discussed in Note 2. As a result, Devon recognized $54 million of restructuring expenses during the first three months of 2019. Of these expenses, $22 million resulted from accelerated vesting of share-based grants, which are noncash charges. Devon anticipates recognizing additional restructuring charges in 2019 primarily when the separation of the Canadian and Barnett Shale assets are completed.

The following table summarizes Devon’s restructuring liabilities.

 

 

Other

 

 

Other

 

 

 

 

 

 

 

Current

 

 

Long-term

 

 

 

 

 

 

 

Liabilities

 

 

Liabilities

 

 

Total

 

Balance as of December 31, 2018

 

$

47

 

 

$

16

 

 

$

63

 

Changes related to 2019 workforce reductions

 

 

30

 

 

 

 

 

 

30

 

Changes related to prior years' restructurings

 

 

(18

)

 

 

(3

)

 

 

(21

)

Balance as of March 31, 2019

 

$

59

 

 

$

13

 

 

$

72

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance as of December 31, 2017

 

$

19

 

 

$

31

 

 

$

50

 

Changes related to prior years' restructurings

 

 

(1

)

 

 

(4

)

 

 

(5

)

Balance as of March 31, 2018

 

$

18

 

 

$

27

 

 

$

45

 

 

 

v3.19.1
Other Expenses
3 Months Ended
Mar. 31, 2019
Other Income And Expenses [Abstract]  
Other Expenses

6.

Other Expenses

 

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

 

 

Three Months Ended March 31,

 

 

 

2019

 

 

2018

 

Foreign exchange (gain) loss, net

 

$

(34

)

 

$

50

 

Asset retirement obligation accretion

 

 

14

 

 

 

16

 

Other, net

 

 

(25

)

 

 

(45

)

Total

 

$

(45

)

 

$

21

 

Foreign exchange (gain) loss, net

 

The U.S. dollar is the functional currency for Devon’s consolidated operations except its Canadian subsidiaries, which use the Canadian dollar as the functional currency. The amounts in the table above include both unrealized and realized foreign exchange impacts of foreign currency denominated monetary assets and liabilities, including intercompany loans between subsidiaries with different functional currencies. Unrealized gains and losses arise from the remeasurement of these foreign currency denominated monetary assets and liabilities and intercompany loans. Realized gains and losses arise when there are settlements of these foreign currency denominated monetary assets and liabilities and intercompany loans.

v3.19.1
Income Taxes
3 Months Ended
Mar. 31, 2019
Income Tax Disclosure [Abstract]  
Income Taxes

7.

Income Taxes

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

 

 

Three Months Ended March 31,

 

 

 

2019

 

 

2018

 

Current income tax expense (benefit)

 

$

(3

)

 

$

4

 

Deferred income tax benefit

 

 

(107

)

 

 

(38

)

Total income tax benefit

 

$

(110

)

 

$

(34

)

 

 

 

 

 

 

 

 

 

U.S. statutory income tax rate

 

 

21

%

 

 

21

%

State income taxes

 

 

7

%

 

 

1

%

Other

 

 

(2

%)

 

 

(8

%)

Effective income tax rate

 

 

26

%

 

 

14

%

 

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

In the table above, the “other” effect is primarily composed of permanent differences for which dollar amounts do not increase or decrease in relation to the change in pre-tax earnings. Generally, such items have an insignificant impact on Devon’s effective income tax rate. However, these items had a more noticeable impact to the rate in the first three months of 2018 due to the low relative net loss during the period.

In the first quarter of 2019, the deferred tax asset representing Devon’s U.S. state net operating loss subject to a valuation allowance decreased by $13 million. The corresponding decrease in the valuation allowance against the state net operating loss resulted in a deferred tax benefit, which is included within state income taxes in the table above.

As of the first quarter of 2018, Devon’s U.S. segment maintained a 100% valuation allowance against its U.S. deferred tax assets resulting from prior year cumulative financial losses, oil and gas impairments, and significant net operating losses for U.S. federal and state income tax. However, upon closing the EnLink divestiture in the third quarter of 2018, Devon reassessed its position and determined that its U.S. segment was no longer in a full valuation allowance position, maintaining only valuation allowances against certain deferred tax assets, including certain tax credits and state net operating losses. Devon’s Canadian segment maintains a valuation allowance against certain capital loss carryforwards.

During the first quarter of 2019, Devon announced its intent to separate all Canadian assets. As a result, Devon’s foreign earnings were no longer considered indefinitely reinvested as of March 31, 2019. However, the deferred tax asset of its Canadian investment will not be recorded until the form of the separation is certain.

 

v3.19.1
Net Loss Per Share from Continuing Operations
3 Months Ended
Mar. 31, 2019
Earnings Per Share [Abstract]  
Net Loss Per Share from Continuing Operations

8.

Net Loss Per Share from Continuing Operations

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

 

 

 

Three Months Ended March 31,

 

 

 

2019

 

 

2018

 

Net loss from continuing operations:

 

 

 

 

 

 

 

 

Net loss from continuing operations

 

$

(317

)

 

$

(211

)

Attributable to participating securities

 

 

 

 

 

 

Basic and diluted loss from continuing operations

 

$

(317

)

 

$

(211

)

Common shares:

 

 

 

 

 

 

 

 

Common shares outstanding - total

 

 

434

 

 

 

527

 

Attributable to participating securities

 

 

(6

)

 

 

(7

)

Common shares outstanding - basic and diluted

 

 

428

 

 

 

520

 

Net loss per share from continuing operations:

 

 

 

 

 

 

 

 

Basic

 

$

(0.74

)

 

$

(0.41

)

Diluted

 

$

(0.74

)

 

$

(0.41

)

Antidilutive options (1)

 

 

1

 

 

 

2

 

 

(1)

Amounts represent options to purchase shares of Devon’s common stock that are excluded from the diluted net earnings per share calculations because the options are antidilutive.

v3.19.1
Other Comprehensive Earnings
3 Months Ended
Mar. 31, 2019
Other Comprehensive Income Loss Net Of Tax Period Increase Decrease [Abstract]  
Other Comprehensive Earnings

 

9.

Other Comprehensive Earnings

Components of other comprehensive earnings consist of the following:

 

 

Three Months Ended March 31,

 

 

 

2019

 

 

2018

 

Foreign currency translation:

 

 

 

 

 

 

 

 

Beginning accumulated foreign currency translation and other

 

$

1,159

 

 

$

1,309

 

Change in cumulative translation adjustment

 

 

35

 

 

 

(61

)

Income tax benefit

 

 

 

 

 

13

 

Ending accumulated foreign currency translation

 

 

1,194

 

 

 

1,261

 

Pension and postretirement benefit plans:

 

 

 

 

 

 

 

 

Beginning accumulated pension and postretirement benefits

 

 

(132

)

 

 

(143

)

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

 

 

3

 

 

 

4

 

Income tax expense

 

 

(1

)

 

 

 

Ending accumulated pension and postretirement benefits

 

 

(130

)

 

 

(139

)

Accumulated other comprehensive earnings, net of tax

 

$

1,064

 

 

$

1,122

 

 

(1)

These accumulated other comprehensive earnings components are included in the computation of net periodic benefit cost, which is a component of other expenses in the accompanying consolidated comprehensive statements of earnings. See Note 17 for additional details.

 

v3.19.1
Supplemental Information To Statements Of Cash Flows
3 Months Ended
Mar. 31, 2019
Supplemental Cash Flow Elements [Abstract]  
Supplemental Information To Statements Of Cash Flows

10.

Supplemental Information to Statements of Cash Flows

 

 

 

Three Months Ended March 31,

 

 

 

2019

 

 

2018

 

Changes in assets and liabilities, net

 

 

 

 

 

 

 

 

Accounts receivable

 

$

(152

)

 

$

37

 

Other current assets

 

 

(7

)

 

 

(88

)

Other long-term assets

 

 

(19

)

 

 

(53

)

Accounts payable

 

 

(37

)

 

 

4

 

Revenues and royalties payable

 

 

(49

)

 

 

66

 

Other current liabilities

 

 

(30

)

 

 

64

 

Other long-term liabilities

 

 

(8

)

 

 

(5

)

Total

 

$

(302

)

 

$

25

 

Supplementary cash flow data - total operations:

 

 

 

 

 

 

 

 

Interest paid (net of capitalized interest)

 

$

53

 

 

$

76

 

Income taxes paid

 

$

6

 

 

$

1

 

 

v3.19.1
Accounts Receivable
3 Months Ended
Mar. 31, 2019
Accounts Receivable Net [Abstract]  
Accounts Receivable

11.

Accounts Receivable

Components of accounts receivable include the following:

 

 

 

March 31, 2019

 

 

December 31, 2018

 

Oil, gas and NGL sales

 

$

608

 

 

$

430

 

Joint interest billings

 

 

155

 

 

 

155

 

Marketing revenues

 

 

269

 

 

 

285

 

Other

 

 

14

 

 

 

23

 

Gross accounts receivable

 

 

1,046

 

 

 

893

 

Allowance for doubtful accounts

 

 

(8

)

 

 

(8

)

Net accounts receivable

 

$

1,038

 

 

$

885

 

v3.19.1
Property, Plant and Equipment
3 Months Ended
Mar. 31, 2019
Extractive Industries [Abstract]  
Property, Plant and Equipment

12.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, 2019

 

 

December 31, 2018

 

Property and equipment:

 

 

 

 

 

 

 

 

Proved

 

$

47,325

 

 

$

46,805

 

Unproved and properties under development

 

 

2,215

 

 

 

2,267

 

Total oil and gas

 

 

49,540

 

 

 

49,072

 

Less accumulated DD&A

 

 

(36,774

)

 

 

(36,259

)

Oil and gas property and equipment, net

 

 

12,766

 

 

 

12,813

 

Other property and equipment

 

 

1,819

 

 

 

1,832

 

Less accumulated DD&A

 

 

(721

)

 

 

(710

)

Other property and equipment, net

 

 

1,098

 

 

 

1,122

 

Property and equipment, net

 

$

13,864

 

 

$

13,935

 

 

v3.19.1
Other Current Liabilities
3 Months Ended
Mar. 31, 2019
Other Liabilities Disclosure [Abstract]  
Other Current Liabilities

13.Other Current Liabilities

 

Components of other current liabilities include the following:

 

 

March 31, 2019

 

 

December 31, 2018

 

Derivative liabilities

$

91

 

 

$

67

 

Accrued interest payable

 

106

 

 

 

80

 

Lease liabilities

 

67

 

 

 

 

Restructuring liabilities

 

59

 

 

 

47

 

Other

 

192

 

 

 

241

 

Other current liabilities

$

515

 

 

$

435

 

 

v3.19.1
Debt And Related Expenses
3 Months Ended
Mar. 31, 2019
Debt Disclosure [Abstract]  
Debt and Related Expenses

 

14.

A summary of debt is as follows:

 

 

March 31, 2019

 

 

December 31, 2018

 

6.30% due January 15, 2019

 

$

 

 

$

162

 

4.00% due July 15, 2021

 

 

500

 

 

 

500

 

3.25% due May 15, 2022

 

 

1,000

 

 

 

1,000

 

5.85% due December 15, 2025

 

 

485

 

 

 

485

 

7.50% due September 15, 2027

 

 

73

 

 

 

73

 

7.875% due September 30, 2031 (1)

 

 

675

 

 

 

675

 

7.95% due April 15, 2032 (1)

 

 

366

 

 

 

366

 

5.60% due July 15, 2041

 

 

1,250

 

 

 

1,250

 

4.75% due May 15, 2042

 

 

750

 

 

 

750

 

5.00% due June 15, 2045

 

 

750

 

 

 

750

 

Net discount on debentures and notes

 

 

(24

)

 

 

(24

)

Debt issuance costs

 

 

(39

)

 

 

(40

)

Total debt

 

 

5,786

 

 

 

5,947

 

Less amount classified as short-term debt

 

 

 

 

 

162

 

Total long-term debt

 

$

5,786

 

 

$

5,785

 

 

(1)

These senior notes were included in the 2018 tender offer repurchases discussed below.

Credit Lines

Devon has a $3.0 billion Senior Credit Facility. As of March 31, 2019, Devon had no outstanding borrowings under the Senior Credit Facility and had issued $52 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 noncash financial write-downs such as impairments. As of March 31, 2019, Devon was in compliance with this covenant with a debt-to-capitalization ratio of 21.6%.

Retirement of Senior Notes

In January 2019, Devon repaid the $162 million of 6.30% senior notes at maturity.

In the first quarter of 2018, Devon completed tender offers to repurchase $807 million in aggregate principal amount of debt securities, using cash on hand. This included $384 million of the 7.875% senior notes due September 30, 2031 and $423 million of the 7.95% senior notes due April 15, 2032. Devon recognized a $312 million loss on early retirement of debt, consisting of $304 million in cash retirement costs and $8 million of noncash charges. These costs, along with other charges associated with retiring the debt, are included in net financing costs in the consolidated comprehensive statements of earnings.

Net Financing Costs

The following schedule includes the components of net financing costs.

 

 

 

Three Months Ended March 31,

 

 

 

2019

 

 

2018

 

Interest based on debt outstanding

 

$

78

 

 

$

96

 

Early retirement of debt

 

 

 

 

 

312

 

Capitalized interest

 

 

 

 

 

(18

)

Other

 

 

(5

)

 

 

(3

)

Total net financing costs

 

$

73

 

 

$

387

 

 

v3.19.1
Leases
3 Months Ended
Mar. 31, 2019
Leases [Abstract]  
Leases

 

15.Leases

 

Devon adopted ASU No. 2016-02, Leases (Topic 842), as of January 1, 2019, using the modified retrospective transition approach. ASC 842 supersedes the previous lease accounting requirements in ASC 840 and requires lessees to recognize leases on-balance sheet and disclose key information about leasing arrangements. ASC 842 establishes a right-of-use model that requires a lessee to recognize a right-of-use asset and lease liability on the balance sheet for all leases with a term longer than 12 months. At adoption, using the modified retrospective transition approach, Devon recorded right-of-use lease assets of $394 million and lease liabilities of $380 million. Additionally, Devon recorded a $24 million before tax, $19 million net of tax, cumulative-effect adjustment to reduce retained earnings. Comparative periods have been presented in accordance with ASC Topic 840 and do not include any retrospective adjustments to reflect the adoption of Topic 842. Excluding land easements and rights-of-way, all leases that existed at January 1, 2019 or were entered into or modified thereafter, are accounted for under Topic 842. Devon elected the practical expedient provided in the standard that allows the new guidance to be applied prospectively to all new or modified land easements and rights-of-way. Devon also elected a policy not to recognize right-of-use assets and lease liabilities related to short-term leases with terms of 12 months or less. Additionally, Devon elected to account for lease components separately from the nonlease components.

 

Devon made certain significant assumptions and judgments in determining its right-of-use asset and lease liability balances. First is the determination of whether a contract contains a lease. Devon considered the presence of an identified asset that is physically distinct, and for which the supplier does not have substantive substitution rights and whether Devon has the right to control the underlying asset. Second, Devon assessed lease terms and considered whether Devon is reasonably certain to extend leases or exercise purchase options. Certain of Devon’s leases include one or more options to renew, with renewal terms that can extend the lease term for additional years. Certain leases also include options to purchase the leased property. For options to renew or purchase that Devon is reasonably certain to exercise, these costs are recognized as part of the right-of-use assets and lease liabilities. Third, significant judgments have been made in determining discount rates. Devon estimates discount rates using market rates that approximate collateralized borrowings over the remaining term of Devon’s lease payments.

 

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

 

The following table presents Devon’s right-of-use assets and lease liabilities as of March 31, 2019.

 

 

 

Finance

 

 

Operating

 

 

Total

 

Right-of-use assets

 

$

215

 

 

$

150

 

 

$

365

 

Lease liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

Current lease liabilities (1)

 

$

7

 

 

$

60

 

 

$

67

 

Long-term lease liabilities

 

 

238

 

 

 

60

 

 

 

298

 

Total lease liabilities

 

$

245

 

 

$

120

 

 

$

365

 

 

(1)

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

 

The following table presents Devon’s total lease cost.

 

 

Three Months Ended

 

 

 

March 31, 2019

 

Operating lease cost (1)(2)

 

$

15

 

Short-term lease cost (1)(3)

 

 

26

 

Financing lease cost:

 

 

 

 

Amortization of right-of-use assets (4)

 

 

6

 

Interest on lease liabilities (5)

 

 

3

 

Variable lease cost (1)

 

 

1

 

Lease income (1)

 

 

(1

)

Net lease cost

 

$

50

 

 

(1)

Included as a component of general and administrative expense in the accompanying consolidated comprehensive statements of earnings.

(2)

Includes certain amounts capitalized to oil and gas property and equipment in the accompanying consolidated balance sheets.

(3)

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

(4)

Included as a component of depreciation, depletion and amortization in the accompanying consolidated comprehensive statements of earnings.

(5)

Included as a component of net financing costs in the accompanying consolidated comprehensive statements of earnings.

 

The following table presents Devon’s additional lease information for the three months ended March 31, 2019.

 

 

 

Finance

 

 

Operating

 

Cash outflows for lease liabilities:

 

 

 

 

 

 

 

 

Operating cash flows

 

$

2

 

 

$

3

 

Investing cash flows

 

$

 

 

$

15

 

Weighted average remaining lease term (years)

 

 

8.8

 

 

 

2.6

 

Weighted average discount rate

 

 

4.2

%

 

 

3.4

%

 

The following table presents Devon’s maturity analysis as of March 31, 2019 for leases expiring in each of the next 5 years and thereafter.

 

 

Finance

 

 

Operating

 

 

Total (1)

 

2019

 

$

5

 

 

$

48

 

 

$

53

 

2020

 

 

7

 

 

 

47

 

 

 

54

 

2021

 

 

7

 

 

 

16

 

 

 

23

 

2022

 

 

8

 

 

 

7

 

 

 

15

 

2023

 

 

8

 

 

 

7

 

 

 

15

 

Thereafter

 

 

306

 

 

 

1

 

 

 

307

 

Total lease payments

 

 

341

 

 

 

126

 

 

 

467

 

Less: interest

 

 

(96

)

 

 

(6

)

 

 

(102

)

Present value of lease liabilities

 

$

245

 

 

$

120

 

 

$

365

 

 

(1)

Under previous lease accounting standard, ASC 840, Devon’s lease obligations as of December 31, 2018 expiring in each of the next 5 years and thereafter were $72 million for 2019, $54 million for 2020, $24 million for 2021, $15 million for 2022, $15 million for 2023 and $33 million thereafter.

 

 


Devon rents or subleases certain real estate to third parties. The following table presents Devon’s expected lease income as of March 31, 2019 for each of the next 5 years and thereafter.

 

 

 

Operating

 

 

 

Lease Income (1)

 

2019

 

$

4

 

2020

 

 

6

 

2021

 

 

7

 

2022

 

 

7

 

2023

 

 

7

 

Thereafter

 

 

53

 

Total

 

$

84

 

 

(1)

Included in operating lease income is approximately $30 million related to leases which have been executed but not yet commenced.

 

v3.19.1
Asset Retirement Obligations
3 Months Ended
Mar. 31, 2019
Asset Retirement Obligation Disclosure [Abstract]  
Asset Retirement Obligations

16.

Asset Retirement Obligations

 

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

 

 

Three Months Ended March 31,

 

 

 

2019

 

 

2018

 

Asset retirement obligations as of beginning of period

 

$

1,057

 

 

$

1,138

 

Liabilities incurred

 

 

7

 

 

 

15

 

Liabilities settled and divested

 

 

(37

)

 

 

(20

)

Revision of estimated obligation

 

 

(87

)

 

 

23

 

Accretion expense on discounted obligation

 

 

14

 

 

 

16

 

Foreign currency translation adjustment

 

 

9

 

 

 

(13

)

Asset retirement obligations as of end of period

 

 

963

 

 

 

1,159

 

Less current portion

 

 

25

 

 

 

32

 

Asset retirement obligations, long-term

 

$

938

 

 

$

1,127

 

 

During the first three months of 2019, Devon reduced its asset retirement obligations by $87 million, primarily due to changes in the future cost estimates and retirement dates for its oil and gas assets.

v3.19.1
Retirement Plans
3 Months Ended
Mar. 31, 2019
Compensation And Retirement Disclosure [Abstract]  
Retirement Plans

17.

Retirement Plans

 

The following table presents the components of net periodic benefit cost for Devon’s pension benefits plan. There were no net periodic benefit costs for postretirement benefit plans for all periods presented below.

 

 

 

Pension Benefits

 

 

 

Three Months Ended March 31,

 

 

 

2019

 

 

2018

 

Service cost

 

$

2

 

 

$

3

 

Interest cost

 

 

9

 

 

 

10

 

Expected return on plan assets

 

 

(10

)

 

 

(14

)

Net actuarial loss (1)

 

 

3

 

 

 

4

 

Net periodic benefit cost (2)

 

$

4

 

 

$

3

 

 

(1)

These net periodic benefit costs were reclassified out of other comprehensive earnings.

(2)

The service cost component of net periodic benefit cost is included in G&A expense and the remaining components of net periodic benefit costs are included in other expenses in the accompanying consolidated comprehensive statements of earnings.

 

v3.19.1
Stockholders' Equity
3 Months Ended
Mar. 31, 2019
Stockholders Equity Note [Abstract]  
Stockholders' Equity

 


18.

Stockholders’ Equity

Share Repurchase Program

In March 2018, Devon announced a share repurchase program to buy up to $1.0 billion of shares of common stock. In June 2018, in conjunction with the announced divestiture of its investment in EnLink and the General Partner, Devon increased its program by an additional $3.0 billion. In February 2019, Devon’s Board of Directors authorized an expansion of the share repurchase program by an additional $1.0 billion, bringing the total to $5.0 billion. The share repurchase program expires December 31, 2019.

The table below provides information regarding purchases of Devon’s common stock that were made during 2018 and the first three months of 2019 (shares in thousands).  

 

 

Total Number of

Shares Purchased

 

 

Dollar Value of

Shares Purchased

 

 

Average Price Paid

per Share

 

First quarter 2018:

 

 

 

 

 

 

 

 

 

 

 

 

Open-Market

 

 

2,561

 

 

$

82

 

 

$

32.19

 

Second quarter 2018:

 

 

 

 

 

 

 

 

 

 

 

 

Open-Market

 

 

11,154

 

 

 

439

 

 

 

39.35

 

Third quarter 2018:

 

 

 

 

 

 

 

 

 

 

 

 

Open-Market

 

 

16,492

 

 

 

712

 

 

 

43.13

 

ASR

 

 

24,330

 

 

 

1,000

 

 

 

41.10

 

Total

 

 

40,822

 

 

 

1,712

 

 

 

41.92

 

Fourth quarter 2018:

 

 

 

 

 

 

 

 

 

 

 

 

Open-Market

 

 

23,612

 

 

 

745

 

 

 

31.57

 

First quarter 2019:

 

 

 

 

 

 

 

 

 

 

 

 

Open-Market

 

 

36,141

 

 

 

1,024

 

 

 

28.33

 

Total inception-to-date

 

 

114,290

 

 

$

4,002

 

 

$

35.01

 

 

Dividends

Devon paid common stock dividends of $34 million ($0.08 per share) and $32 million ($0.06 per share) during the first three months of 2019 and 2018, respectively. In February 2019, Devon announced a 12.5% increase to its quarterly dividend, to $0.09 per share, beginning in the second quarter of 2019. In the second quarter of 2018, Devon increased the quarterly dividend rate from $0.06 to $0.08 per share.

 

v3.19.1
Discontinued Operations and Assets Held for Sale
3 Months Ended
Mar. 31, 2019
Discontinued Operations And Disposal Groups [Abstract]  
Discontinued Operations and Assets Held for Sale

19.

Discontinued Operations and Assets Held For Sale

 

On June 6, 2018, Devon announced that it had entered into an agreement to sell its aggregate ownership interests in EnLink and the General Partner for $3.125 billion. Upon entering into the agreement to sell its ownership interest in June 2018, Devon concluded that the transaction was a strategic shift and met the requirements of assets held for sale and discontinued operations. As a result, Devon classified the results of operations and cash flows related to EnLink and the General Partner as discontinued operations on its consolidated financial statements.

 

On July 18, 2018, Devon completed the sale of its aggregate ownership interests in EnLink and the General Partner for $3.125 billion and recognized a gain of approximately $2.6 billion ($2.2 billion after-tax). Current (cash) income tax associated with the transaction was approximately $12 million. The vast majority of the tax effect relates to deferred tax expense offset by the valuation allowance adjustment.

 

As part of the sale agreement, Devon extended its fixed-fee gathering and processing contracts with respect to the Bridgeport and Cana plants with EnLink through 2029. Although the agreements were extended to 2029, the minimum volume commitments for the Bridgeport and Cana plants expired at the end of 2018. Devon has minimum volume commitments for gathering and processing of 77-128 MMcf/d with EnLink at the Chisholm plant through early 2021.

 

During the first quarter of 2019, Devon had net outflows of approximately $150 million with EnLink, which primarily related to gathering and processing expenses. These net outflows represent gross cash amounts and not net working interest amounts.

 

Prior to the divestment of Devon’s aggregate ownership of EnLink and the General Partner, certain activity between Devon and EnLink were eliminated in consolidation. Subsequent to the divestment, all activity related to EnLink represent third-party transactions and are no longer eliminated in consolidation.

 

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

 

 

Three Months Ended March 31, 2018

 

Marketing and midstream revenues

 

$

1,612

 

Marketing and midstream expenses

 

 

1,341

 

Depreciation, depletion and amortization

 

 

138

 

General and administrative expenses

 

 

27

 

Financing costs, net

 

 

44

 

Other expenses

 

 

(2

)

Total expenses

 

 

1,548

 

Earnings from discontinued operations before income taxes

 

 

64

 

Income tax expense

 

 

6

 

Net earnings from discontinued operations, net of income tax expense

 

 

58

 

Net earnings attributable to noncontrolling interests

 

 

44

 

Net earnings from discontinued operations attributable to Devon

 

$

14

 

 

The following table presents the carrying amounts of the assets and liabilities classified as held for sale on the consolidated balance sheets. The assets and liabilities classified as held for sale at December 31, 2018 are related to the divestiture of non-core upstream Permian Basin assets which closed in January 2019 as further discussed in Note 2.

 

 

 

December 31, 2018

 

Accounts receivable

 

$

7

 

Oil and gas property and equipment, based on successful efforts accounting, net

 

 

190

 

Total assets held for sale

 

$

197

 

 

 

 

 

 

Accounts payable

 

$

3

 

Other current liabilities

 

 

19

 

Asset retirement obligations

 

 

47

 

Total liabilities held for sale

 

$

69

 

 

v3.19.1
Commitments And Contingencies
3 Months Ended
Mar. 31, 2019
Commitments And Contingencies Disclosure [Abstract]  
Commitments And Contingencies

20.

Commitments and Contingencies

Devon is party to various legal actions arising in the normal course of 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, 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. Devon does not currently believe that it is subject to material exposure with respect to such royalty matters.

Environmental Matters

Devon is subject to certain laws and regulations relating to environmental remediation activities associated with past operations, such as the Comprehensive Environmental Response, Compensation, and Liability Act and similar state statutes. In response to liabilities associated with these activities, loss accruals primarily consist of estimated uninsured remediation costs. Devon’s monetary exposure for environmental matters is not expected to be material.

Beginning in 2013, various parishes in Louisiana filed suit against more than 100 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 seek, among other things, the 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 is vigorously defending against these claims.

Other Matters

Devon is involved in other various legal proceedings incidental to its business. However, to Devon’s knowledge, there were no material pending legal proceedings to which Devon is a party or to which any of its property is subject.

v3.19.1
Fair Value Measurements
3 Months Ended
Mar. 31, 2019
Fair Value Disclosures [Abstract]  
Fair Value Measurements

 

21.

Fair Value Measurements

The following table provides carrying value and fair value measurement information for certain of Devon’s financial assets and liabilities. The carrying values of cash, 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, 2019 and December 31, 2018, 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

 

 

 

Amount

 

 

Value

 

 

Inputs

 

 

Inputs

 

March 31, 2019 assets (liabilities):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash equivalents

 

$

432

 

 

$

432

 

 

$

432

 

 

$

 

Commodity derivatives

 

$

36

 

 

$

36

 

 

$

 

 

$

36

 

Commodity derivatives

 

$

(97

)

 

$

(97

)

 

$

 

 

$

(97

)

Debt

 

$

(5,786

)

 

$

(6,448

)

 

$

 

 

$

(6,448

)

December 31, 2018 assets (liabilities):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash equivalents

 

$

1,505

 

 

$

1,505

 

 

$

1,405

 

 

$

100

 

Commodity derivatives

 

$

677

 

 

$

677

 

 

$

 

 

$

677

 

Commodity derivatives

 

$

(68

)

 

$

(68

)

 

$

 

 

$

(68

)

Debt

 

$

(5,947

)

 

$

(5,965

)

 

$

 

 

$

(5,965

)

 

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

Cash equivalents – Amounts primarily consist of Canadian agency and provincial securities investments. The fair value approximates the carrying value.

 

Commodity and interest rate 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 actively trade in an established market. The fair values of its debt are estimated based on rates available for debt with similar terms and maturity.

v3.19.1
Segment Information
3 Months Ended
Mar. 31, 2019
Segment Reporting [Abstract]  
Segment Information

22.Segment Information

Devon manages its operations through distinct operating segments, which are defined primarily by geographic areas. For financial reporting purposes, Devon aggregates its U.S. operating segments into one reporting segment due to the similar nature of the businesses. However, Devon’s Canadian E&P operating segment is reported as a separate reporting segment primarily due to the significant differences between the U.S. and Canadian regulatory environments. Devon’s U.S. and Canadian segments are both primarily engaged in oil and gas E&P activities.

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

 

 

Three Months Ended March 31, 2019

 

 

Three Months Ended March 31, 2018

 

 

 

U.S.

 

 

Canada

 

 

Total

 

 

U.S.

 

 

Canada

 

 

Total

 

Oil

 

$

661

 

 

$

351

 

 

$

1,012

 

 

$

677

 

 

$

230

 

 

$

907

 

Gas

 

 

233

 

 

 

 

 

 

233

 

 

 

255

 

 

 

 

 

 

255

 

NGL

 

 

174

 

 

 

 

 

 

174

 

 

 

198

 

 

 

 

 

 

198

 

Oil, gas and NGL revenues from

   contracts with customers

 

 

1,068

 

 

 

351

 

 

 

1,419

 

 

 

1,130

 

 

 

230

 

 

 

1,360

 

Oil, gas and NGL derivatives

 

 

(605

)

 

 

(104

)

 

 

(709

)

 

 

(113

)

 

 

72

 

 

 

(41

)

Upstream revenues

 

 

463

 

 

 

247

 

 

 

710

 

 

 

1,017

 

 

 

302

 

 

 

1,319

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Oil

 

 

356

 

 

 

26

 

 

 

382

 

 

 

531

 

 

 

17

 

 

 

548

 

Gas

 

 

218

 

 

 

 

 

 

218

 

 

 

155

 

 

 

 

 

 

155

 

NGL

 

 

191

 

 

 

 

 

 

191

 

 

 

176

 

 

 

 

 

 

176

 

Total marketing revenues from

   contracts with customers

 

 

765

 

 

 

26

 

 

 

791

 

 

 

862

 

 

 

17

 

 

 

879

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total revenues

 

$

1,228

 

 

$

273

 

 

$

1,501

 

 

$

1,879

 

 

$

319

 

 

$

2,198

 

 

The following table presents selected financial information for Devon’s reporting segments.

 

 

U.S.

 

 

Canada

 

 

Total

 

Three Months Ended March 31, 2019:

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation, depletion and amortization

 

$

380

 

 

$

79

 

 

$

459

 

Interest expense

 

$

71

 

 

$

15

 

 

$

86

 

Asset dispositions

 

$

(44

)

 

$

 

 

$

(44

)

Restructuring and transaction costs

 

$

51

 

 

$

3

 

 

$

54

 

Earnings (loss) from continuing operations before income taxes

 

$

(450

)

 

$

23

 

 

$

(427

)

Income tax benefit

 

$

(106

)

 

$

(4

)

 

$

(110

)

Net earnings (loss) from continuing operations

 

$

(344

)

 

$

27

 

 

$

(317

)

Property and equipment, net

 

$

9,926

 

 

$

3,938

 

 

$

13,864

 

Total assets

 

$

13,513

 

 

$

4,564

 

 

$

18,077

 

Capital expenditures, including acquisitions

 

$

481

 

 

$

49

 

 

$

530

 

Three Months Ended March 31, 2018:

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation, depletion and amortization

 

$

305

 

 

$

94

 

 

$

399

 

Interest expense

 

$

247

 

 

$

148

 

 

$

395

 

Asset dispositions

 

$

(12

)

 

$

 

 

$

(12

)

Loss from continuing operations before income taxes

 

$

(116

)

 

$

(129

)

 

$

(245

)

Income tax expense (benefit)

 

$

1

 

 

$

(35

)

 

$

(34

)

Net loss from continuing operations

 

$

(117

)

 

$

(94

)

 

$

(211

)

Property and equipment, net

 

$

10,538

 

 

$

4,186

 

 

$

14,724

 

Total assets (1)

 

$

13,477

 

 

$

5,271

 

 

$

18,748

 

Capital expenditures, including acquisitions

 

$

612

 

 

$

89

 

 

$

701

 

 

(1)

Total assets in the table above do not include assets held for sale related to Devon’s discontinued operations, which totaled $10.6 billion on March 31, 2018. Additional information about Devon’s discontinued operations can be found in Note 19.

v3.19.1
Summary Of Significant Accounting Policies (Policies)
3 Months Ended
Mar. 31, 2019
Accounting Policies [Abstract]  
Recent Accounting Standards

Recently Adopted Accounting Standards

 

In January 2019, Devon adopted ASU 2016-02, Leases (Topic 842), using the modified retrospective method. See Note 15 for further discussion regarding Devon’s adoption of the leases standard.

The SEC released Final Rule No. 33 -10532, Disclosure Update and Simplification, which amends various SEC disclosure requirements determined to be redundant, duplicative, overlapping, outdated or superseded as part of the SEC’s ongoing disclosure effectiveness initiative. The rule was effective November 5, 2018. The rule amended numerous SEC rules, items and forms covering a diverse group of topics. Devon has implemented these required changes which generally reduced or eliminated disclosures. Devon adopted the requirement of presenting current and comparative quarterly stockholders’ equity roll forwards in the first quarter of 2019.

Issued Accounting Standards Not Yet Adopted

 

The FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Changes to the Disclosure Requirements for Fair Value Measurement. This ASU will eliminate, add and modify certain disclosure requirements for fair value measurement. The ASU is effective for annual and interim periods beginning January 1, 2020, with early adoption permitted for either the entire standard or only the provisions that eliminate or modify requirements. The ASU requires the additional disclosure requirements to be adopted using a retrospective approach. Devon is currently evaluating the provisions of this ASU and assessing the impact it may have on its disclosures in the notes to the consolidated financial statements.

 

The FASB issued ASU 2018-15, Intangibles, Goodwill and Other Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract. This ASU will require a customer in a cloud computing arrangement (i.e., hosting arrangement) that is a service contract to follow the internal-use software guidance in ASC 350-40 to determine which implementation costs to capitalize as assets or expense as incurred. Capitalized implementation costs related to a hosting arrangement that is a service contract will be amortized over the term of the hosting arrangement, beginning when the module or component of the hosting arrangement is ready for its intended use. This ASU is effective for annual and interim periods beginning January 1, 2020, with early adoption permitted. Entities have the option to adopt the ASU using either a retrospective approach or a prospective approach applied to all implementation costs incurred after the date of the adoption. Devon is currently evaluating the provisions of this ASU and assessing the impact it may have on its consolidated financial statements.

 

The SEC released Final Rule Release No. 33-10618, FAST Act Modernization and Simplification of Regulation S-K, which amends Regulation S-K to modernize and simplify certain disclosure requirements in a manner that reduces costs and burdens on registrants while continuing to provide all material information to investors. The rule is effective May 2, 2019. The rule amends numerous SEC rules, items and forms covering a diverse group of topics. As the changes are generally expected to reduce or eliminate disclosures, Devon is currently evaluating and assessing the impact it may have on its disclosures.

Commitments And Contingencies

Devon is party to various legal actions arising in the normal course of 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.

v3.19.1
Derivative Financial Instruments (Tables)
3 Months Ended
Mar. 31, 2019
Derivative [Line Items]  
Schedule Of Derivative Financial Instruments Included In Consolidated Comprehensive Statements Of Earnings And Consolidated Balance Sheets

The following table presents the net gains and losses by derivative financial instrument type followed by the corresponding individual consolidated comprehensive statements of earnings caption.

 

 

Three Months Ended March 31,

 

 

 

2019

 

 

2018

 

Commodity derivatives:

 

 

 

 

 

 

 

 

Upstream revenues

 

$

(709

)

 

$

(41

)

Marketing revenues

 

 

1

 

 

 

 

Interest rate derivatives:

 

 

 

 

 

 

 

 

Other expenses

 

 

 

 

 

46

 

Net gains (losses) recognized

 

$

(708

)

 

$

5

 

 

The following table presents the derivative fair values by derivative financial instrument type followed by the corresponding individual consolidated balance sheet caption.

 

 

March 31, 2019

 

 

December 31, 2018

 

Commodity derivative assets:

 

 

 

 

 

 

 

 

Other current assets

 

$

30

 

 

$

637

 

Other long-term assets

 

 

6

 

 

 

40

 

Total derivative assets

 

$

36

 

 

$

677

 

Commodity derivative liabilities:

 

 

 

 

 

 

 

 

Other current liabilities

 

$

91

 

 

$

67

 

Other long-term liabilities

 

 

6

 

 

 

1

 

Total derivative liabilities

 

$

97

 

 

$

68

 

Open Oil Derivative Positions [Member]  
Derivative [Line Items]  
Schedule Of Open Derivative Positions

 

 

 

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 2019

 

 

46,891

 

 

$

59.97

 

 

 

87,484

 

 

$

54.60

 

 

$

64.62

 

Q1-Q4 2020

 

 

3,238

 

 

$

60.13

 

 

 

17,186

 

 

$

51.97

 

 

$

62.12

 

 

 

 

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 2019

 

 

5,000

 

 

$

50.00

 

 

$

63.00

 

 

$

74.80

 

 

 

 

Oil Basis Swaps

 

Period

 

Index

 

Volume

(Bbls/d)

 

 

Weighted Average

Differential to WTI

($/Bbl)

 

Q2-Q4 2019

 

Midland Sweet

 

 

24,945

 

 

$

(0.46

)

Q2-Q4 2019

 

Argus LLS

 

 

8,900

 

 

$

5.10

 

Q2-Q4 2019

 

Argus MEH

 

 

20,945

 

 

$

3.24

 

Q2-Q4 2019

 

NYMEX Roll

 

 

38,000

 

 

$

0.45

 

Q2-Q4 2019

 

Western Canadian Select

 

 

62,762

 

 

$

(19.21

)

Q1-Q4 2020

 

NYMEX Roll

 

 

38,000

 

 

$

0.31

 

Q1-Q4 2020

 

Western Canadian Select

 

 

4,577

 

 

$

(20.80

)

 

Open Natural Gas Derivative Positions [Member]  
Derivative [Line Items]  
Schedule Of Open Derivative Positions

 

 

 

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 2019

 

 

262,525

 

 

$

2.81

 

 

 

213,884

 

 

$

2.64

 

 

$

3.02

 

Q1-Q4 2020

 

 

51,409

 

 

$

2.86

 

 

 

40,071

 

 

$

2.73

 

 

$

3.03

 

 

 

Natural Gas Basis Swaps

 

Period

 

Index

 

Volume

(MMBtu/d)

 

 

Weighted Average

Differential to

Henry Hub

($/MMBtu)

 

Q2-Q4 2019

 

Panhandle Eastern Pipe Line

 

 

63,018

 

 

$

(0.71

)

Q2-Q4 2019

 

El Paso Natural Gas

 

 

130,000

 

 

$

(1.46

)

Q2-Q4 2019

 

Houston Ship Channel

 

 

162,500

 

 

$

0.01

 

Q1-Q4 2020

 

Panhandle Eastern Pipe Line

 

 

30,000

 

 

$

(0.47

)

Q1-Q4 2020

 

El Paso Natural Gas

 

 

40,000

 

 

$

(0.67

)

Q1-Q4 2020

 

Houston Ship Channel

 

 

10,000

 

 

$

0.02

 

 

Open NGL Derivative Positions [Member]  
Derivative [Line Items]  
Schedule Of Open Derivative Positions

 

 

 

 

 

Price Swaps

 

Period

 

Product

 

Volume (Bbls/d)

 

 

Weighted Average Price ($/Bbl)

 

Q2-Q4 2019

 

Ethane

 

 

1,000

 

 

$

11.55

 

Q2-Q4 2019

 

Natural Gasoline

 

 

4,500

 

 

$

55.93

 

Q2-Q4 2019

 

Normal Butane

 

 

4,000

 

 

$

33.69

 

Q2-Q4 2019

 

Propane

 

 

8,500

 

 

$

30.01

 

v3.19.1
Share-Based Compensation (Tables)
3 Months Ended
Mar. 31, 2019
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]  
Schedule Of Share-Based Compensation Expense Included In The Consolidated Comprehensive Statements Of Earnings

 

 

 

Three Months Ended March 31,

 

 

 

2019

 

 

2018

 

G&A

 

$

26

 

 

$

37

 

Exploration expenses

 

 

1

 

 

 

2

 

Restructuring and transaction costs

 

 

22

 

 

 

 

Total

 

$

49

 

 

$

39

 

Related income tax benefit

 

$

10

 

 

$

1

 

 

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

 

 

 

Restricted Stock

 

 

Performance-Based

 

 

Performance

 

 

 

Awards and Units

 

 

Restricted Stock Awards

 

 

Share Units

 

 

 

Awards and

Units

 

 

Weighted

Average

Grant-Date

Fair Value

 

 

Awards

 

 

Weighted

Average

Grant-Date

Fair Value

 

 

Units

 

 

 

 

 

Weighted

Average

Grant-Date

Fair Value

 

 

 

(Thousands, except fair value data)

 

Unvested at 12/31/18

 

 

5,963

 

 

$

35.47

 

 

 

302

 

 

$

35.93

 

 

 

2,868

 

 

 

 

 

$

30.14

 

Granted

 

 

4,271

 

 

$

25.47

 

 

 

 

 

$

 

 

 

741

 

 

 

 

 

$

28.97

 

Vested

 

 

(2,505

)

 

$

35.05

 

 

 

(137

)

 

$

37.44

 

 

 

 

 

 

 

 

$

 

Forfeited

 

 

(442

)

 

$

26.83

 

 

 

 

 

$

 

 

 

(1,267

)

 

 

 

 

$

11.15

 

Unvested at 3/31/19

 

 

7,287

 

 

$

30.27

 

 

 

165

 

 

$

34.67

 

 

 

2,342

 

 

(1

)

 

$

40.05

 

 

(1)

A maximum of 4.7 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

 

 

 

2019

 

Grant-date fair value

 

$

28.43

 

 

 

$

29.53

 

Risk-free interest rate

 

2.48%

 

Volatility factor

 

39.1%

 

Contractual term (years)

 

2.89

 

Summary of Unrecognized Compensation Cost And Weighted Average Period For Recognition

 

 

 

 

 

 

 

Performance-Based

 

 

 

 

 

 

 

Restricted Stock

 

 

Restricted Stock

 

 

Performance

 

 

 

Awards and Units

 

 

Awards

 

 

Share Units

 

Unrecognized compensation cost

 

$

162

 

 

$

 

 

$

33

 

Weighted average period for recognition (years)

 

 

2.8

 

 

 

2.2

 

 

 

1.9

 

v3.19.1
Restructuring and Transaction Costs (Tables)
3 Months Ended
Mar. 31, 2019
Restructuring And Related Activities [Abstract]  
Schedule Of The Activity And Balances Associated With Restructuring Liabilities

The following table summarizes Devon’s restructuring liabilities.

 

 

Other

 

 

Other

 

 

 

 

 

 

 

Current

 

 

Long-term

 

 

 

 

 

 

 

Liabilities

 

 

Liabilities

 

 

Total

 

Balance as of December 31, 2018

 

$

47

 

 

$

16

 

 

$

63

 

Changes related to 2019 workforce reductions

 

 

30

 

 

 

 

 

 

30

 

Changes related to prior years' restructurings

 

 

(18

)

 

 

(3

)

 

 

(21

)

Balance as of March 31, 2019

 

$

59

 

 

$

13

 

 

$

72

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance as of December 31, 2017

 

$

19

 

 

$

31

 

 

$

50

 

Changes related to prior years' restructurings

 

 

(1

)

 

 

(4

)

 

 

(5

)

Balance as of March 31, 2018

 

$

18

 

 

$

27

 

 

$

45

 

v3.19.1
Other Expenses (Tables)
3 Months Ended
Mar. 31, 2019
Other Income And Expenses [Abstract]  
Schedule Of Other Expenses Presented In The Accompanying Consolidated Comprehensive Statements of Earnings

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

 

 

Three Months Ended March 31,

 

 

 

2019

 

 

2018

 

Foreign exchange (gain) loss, net

 

$

(34

)

 

$

50

 

Asset retirement obligation accretion

 

 

14

 

 

 

16

 

Other, net

 

 

(25

)

 

 

(45

)

Total

 

$

(45

)

 

$

21

 

v3.19.1
Income Taxes (Tables)
3 Months Ended
Mar. 31, 2019
Income Tax Disclosure [Abstract]  
Schedule Of Effective Income Tax Rate Reconciliation

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

 

 

Three Months Ended March 31,

 

 

 

2019

 

 

2018

 

Current income tax expense (benefit)

 

$

(3

)

 

$

4

 

Deferred income tax benefit

 

 

(107

)

 

 

(38

)

Total income tax benefit

 

$

(110

)

 

$

(34

)

 

 

 

 

 

 

 

 

 

U.S. statutory income tax rate

 

 

21

%

 

 

21

%

State income taxes

 

 

7

%

 

 

1

%

Other

 

 

(2

%)

 

 

(8

%)

Effective income tax rate

 

 

26

%

 

 

14

%

v3.19.1
Net Loss Per Share from Continuing Operations (Tables)
3 Months Ended
Mar. 31, 2019
Earnings Per Share [Abstract]  
Net Loss Per Share Computations from Continuing Operations

 

 

 

Three Months Ended March 31,

 

 

 

2019

 

 

2018

 

Net loss from continuing operations:

 

 

 

 

 

 

 

 

Net loss from continuing operations

 

$

(317

)

 

$

(211

)

Attributable to participating securities

 

 

 

 

 

 

Basic and diluted loss from continuing operations

 

$

(317

)

 

$

(211

)

Common shares:

 

 

 

 

 

 

 

 

Common shares outstanding - total

 

 

434

 

 

 

527

 

Attributable to participating securities

 

 

(6

)

 

 

(7

)

Common shares outstanding - basic and diluted

 

 

428

 

 

 

520

 

Net loss per share from continuing operations:

 

 

 

 

 

 

 

 

Basic

 

$

(0.74

)

 

$

(0.41

)

Diluted

 

$

(0.74

)

 

$

(0.41

)

Antidilutive options (1)

 

 

1

 

 

 

2

 

 

(1)

Amounts represent options to purchase shares of Devon’s common stock that are excluded from the diluted net earnings per share calculations because the options are antidilutive.

v3.19.1
Other Comprehensive Earnings (Tables)
3 Months Ended
Mar. 31, 2019
Other Comprehensive Income Loss Net Of Tax Period Increase Decrease [Abstract]  
Components Of Other Comprehensive Earnings

Components of other comprehensive earnings consist of the following:

 

 

Three Months Ended March 31,

 

 

 

2019

 

 

2018

 

Foreign currency translation:

 

 

 

 

 

 

 

 

Beginning accumulated foreign currency translation and other

 

$

1,159

 

 

$

1,309

 

Change in cumulative translation adjustment

 

 

35

 

 

 

(61

)

Income tax benefit

 

 

 

 

 

13

 

Ending accumulated foreign currency translation

 

 

1,194

 

 

 

1,261

 

Pension and postretirement benefit plans:

 

 

 

 

 

 

 

 

Beginning accumulated pension and postretirement benefits

 

 

(132

)

 

 

(143

)

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

 

 

3

 

 

 

4

 

Income tax expense

 

 

(1

)

 

 

 

Ending accumulated pension and postretirement benefits

 

 

(130

)

 

 

(139

)

Accumulated other comprehensive earnings, net of tax

 

$

1,064

 

 

$

1,122

 

 

(1)

These accumulated other comprehensive earnings components are included in the computation of net periodic benefit cost, which is a component of other expenses in the accompanying consolidated comprehensive statements of earnings. See Note 17 for additional details.

v3.19.1
Supplemental Information To Statements Of Cash Flows (Tables)
3 Months Ended
Mar. 31, 2019
Supplemental Cash Flow Elements [Abstract]  
Schedule Of Supplemental Information To Statements Of Cash Flows

 

 

 

Three Months Ended March 31,

 

 

 

2019

 

 

2018

 

Changes in assets and liabilities, net

 

 

 

 

 

 

 

 

Accounts receivable

 

$

(152

)

 

$

37

 

Other current assets

 

 

(7

)

 

 

(88

)

Other long-term assets

 

 

(19

)

 

 

(53

)

Accounts payable

 

 

(37

)

 

 

4

 

Revenues and royalties payable

 

 

(49

)

 

 

66

 

Other current liabilities

 

 

(30

)

 

 

64

 

Other long-term liabilities

 

 

(8

)

 

 

(5

)

Total

 

$

(302

)

 

$

25

 

Supplementary cash flow data - total operations:

 

 

 

 

 

 

 

 

Interest paid (net of capitalized interest)

 

$

53

 

 

$

76

 

Income taxes paid

 

$

6

 

 

$

1

 

v3.19.1
Accounts Receivable (Tables)
3 Months Ended
Mar. 31, 2019
Accounts Receivable Net [Abstract]  
Schedule Of Components Of Accounts Receivable

Components of accounts receivable include the following:

 

 

 

March 31, 2019

 

 

December 31, 2018

 

Oil, gas and NGL sales

 

$

608

 

 

$

430

 

Joint interest billings

 

 

155

 

 

 

155

 

Marketing revenues

 

 

269

 

 

 

285

 

Other

 

 

14

 

 

 

23

 

Gross accounts receivable

 

 

1,046

 

 

 

893

 

Allowance for doubtful accounts

 

 

(8

)

 

 

(8

)

Net accounts receivable

 

$

1,038

 

 

$

885

 

v3.19.1
Property, Plant and Equipment (Tables)
3 Months Ended
Mar. 31, 2019
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, 2019

 

 

December 31, 2018

 

Property and equipment:

 

 

 

 

 

 

 

 

Proved

 

$

47,325

 

 

$

46,805

 

Unproved and properties under development

 

 

2,215

 

 

 

2,267

 

Total oil and gas

 

 

49,540

 

 

 

49,072

 

Less accumulated DD&A

 

 

(36,774

)

 

 

(36,259

)

Oil and gas property and equipment, net

 

 

12,766

 

 

 

12,813

 

Other property and equipment

 

 

1,819

 

 

 

1,832

 

Less accumulated DD&A

 

 

(721

)

 

 

(710

)

Other property and equipment, net

 

 

1,098

 

 

 

1,122

 

Property and equipment, net

 

$

13,864

 

 

$

13,935

 

 

v3.19.1
Other Current Liabilities (Tables)
3 Months Ended
Mar. 31, 2019
Other Liabilities Disclosure [Abstract]  
Schedule Of Other Current Liabilities

Components of other current liabilities include the following:

 

 

March 31, 2019

 

 

December 31, 2018

 

Derivative liabilities

$

91

 

 

$

67

 

Accrued interest payable

 

106

 

 

 

80

 

Lease liabilities

 

67

 

 

 

 

Restructuring liabilities

 

59

 

 

 

47

 

Other

 

192

 

 

 

241

 

Other current liabilities

$

515

 

 

$

435

 

v3.19.1
Debt And Related Expenses (Tables)
3 Months Ended
Mar. 31, 2019
Debt Disclosure [Abstract]  
Schedule Of Debt Instruments and Balances

A summary of debt is as follows:

 

 

March 31, 2019

 

 

December 31, 2018

 

6.30% due January 15, 2019

 

$

 

 

$

162

 

4.00% due July 15, 2021

 

 

500

 

 

 

500

 

3.25% due May 15, 2022

 

 

1,000

 

 

 

1,000

 

5.85% due December 15, 2025

 

 

485

 

 

 

485

 

7.50% due September 15, 2027

 

 

73

 

 

 

73

 

7.875% due September 30, 2031 (1)

 

 

675

 

 

 

675

 

7.95% due April 15, 2032 (1)

 

 

366

 

 

 

366

 

5.60% due July 15, 2041

 

 

1,250

 

 

 

1,250

 

4.75% due May 15, 2042

 

 

750

 

 

 

750

 

5.00% due June 15, 2045

 

 

750

 

 

 

750

 

Net discount on debentures and notes

 

 

(24

)

 

 

(24

)

Debt issuance costs

 

 

(39

)

 

 

(40

)

Total debt

 

 

5,786

 

 

 

5,947

 

Less amount classified as short-term debt

 

 

 

 

 

162

 

Total long-term debt

 

$

5,786

 

 

$

5,785

 

 

(1)

These senior notes were included in the 2018 tender offer repurchases discussed below.

Schedule Of Net Financing Cost Components

The following schedule includes the components of net financing costs.

 

 

 

Three Months Ended March 31,

 

 

 

2019

 

 

2018

 

Interest based on debt outstanding

 

$

78

 

 

$

96

 

Early retirement of debt

 

 

 

 

 

312

 

Capitalized interest

 

 

 

 

 

(18

)

Other

 

 

(5

)

 

 

(3

)

Total net financing costs

 

$

73

 

 

$

387

 

v3.19.1
Leases (Tables)
3 Months Ended
Mar. 31, 2019
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, 2019.

 

 

Finance

 

 

Operating

 

 

Total

 

Right-of-use assets

 

$

215

 

 

$

150

 

 

$

365

 

Lease liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

Current lease liabilities (1)

 

$

7

 

 

$

60

 

 

$

67

 

Long-term lease liabilities

 

 

238

 

 

 

60

 

 

 

298

 

Total lease liabilities

 

$

245

 

 

$

120

 

 

$

365

 

 

(1)

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

Schedule of Total Lease Cost

 

The following table presents Devon’s total lease cost.

 

 

Three Months Ended

 

 

 

March 31, 2019

 

Operating lease cost (1)(2)

 

$

15

 

Short-term lease cost (1)(3)

 

 

26

 

Financing lease cost:

 

 

 

 

Amortization of right-of-use assets (4)

 

 

6

 

Interest on lease liabilities (5)

 

 

3

 

Variable lease cost (1)

 

 

1

 

Lease income (1)

 

 

(1

)

Net lease cost

 

$

50

 

 

(1)

Included as a component of general and administrative expense in the accompanying consolidated comprehensive statements of earnings.

(2)

Includes certain amounts capitalized to oil and gas property and equipment in the accompanying consolidated balance sheets.

(3)

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

(4)

Included as a component of depreciation, depletion and amortization in the accompanying consolidated comprehensive statements of earnings.

(5)

Included as a component of net financing costs in the accompanying consolidated comprehensive statements of earnings.

 

Schedule of Additional Lease Information

The following table presents Devon’s additional lease information for the three months ended March 31, 2019.

 

 

 

Finance

 

 

Operating

 

Cash outflows for lease liabilities:

 

 

 

 

 

 

 

 

Operating cash flows

 

$

2

 

 

$

3

 

Investing cash flows

 

$

 

 

$

15

 

Weighted average remaining lease term (years)

 

 

8.8

 

 

 

2.6

 

Weighted average discount rate

 

 

4.2

%

 

 

3.4

%

 

Maturities of Lease Liabilities

The following table presents Devon’s maturity analysis as of March 31, 2019 for leases expiring in each of the next 5 years and thereafter.

 

 

Finance

 

 

Operating

 

 

Total (1)

 

2019

 

$

5

 

 

$

48

 

 

$

53

 

2020

 

 

7

 

 

 

47

 

 

 

54

 

2021

 

 

7

 

 

 

16

 

 

 

23

 

2022

 

 

8

 

 

 

7

 

 

 

15

 

2023

 

 

8

 

 

 

7

 

 

 

15

 

Thereafter

 

 

306

 

 

 

1

 

 

 

307

 

Total lease payments

 

 

341

 

 

 

126

 

 

 

467

 

Less: interest

 

 

(96

)

 

 

(6

)

 

 

(102

)

Present value of lease liabilities

 

$

245

 

 

$

120

 

 

$

365

 

 

(1)

Under previous lease accounting standard, ASC 840, Devon’s lease obligations as of December 31, 2018 expiring in each of the next 5 years and thereafter were $72 million for 2019, $54 million for 2020, $24 million for 2021, $15 million for 2022, $15 million for 2023 and $33 million thereafter.

 

 

Schedule of Expected Lease Income The following table presents Devon’s expected lease income as of March 31, 2019 for each of the next 5 years and thereafter.

 

 

Operating

 

 

 

Lease Income (1)

 

2019

 

$

4

 

2020

 

 

6

 

2021

 

 

7

 

2022

 

 

7

 

2023

 

 

7

 

Thereafter

 

 

53

 

Total

 

$

84

 

 

(1)

Included in operating lease income is approximately $30 million related to leases which have been executed but not yet commenced.

v3.19.1
Asset Retirement Obligations (Tables)
3 Months Ended
Mar. 31, 2019
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,

 

 

 

2019

 

 

2018

 

Asset retirement obligations as of beginning of period

 

$

1,057

 

 

$

1,138

 

Liabilities incurred

 

 

7

 

 

 

15

 

Liabilities settled and divested

 

 

(37

)

 

 

(20

)

Revision of estimated obligation

 

 

(87

)

 

 

23

 

Accretion expense on discounted obligation

 

 

14

 

 

 

16

 

Foreign currency translation adjustment

 

 

9

 

 

 

(13

)

Asset retirement obligations as of end of period

 

 

963

 

 

 

1,159

 

Less current portion

 

 

25

 

 

 

32

 

Asset retirement obligations, long-term

 

$

938

 

 

$

1,127

 

 

v3.19.1
Retirement Plans (Tables)
3 Months Ended
Mar. 31, 2019
Compensation And Retirement Disclosure [Abstract]  
Schedule Of Net Periodic Benefit Cost For Pension Benefits Plan

 

 

Pension Benefits

 

 

 

Three Months Ended March 31,

 

 

 

2019

 

 

2018

 

Service cost

 

$

2

 

 

$

3

 

Interest cost

 

 

9

 

 

 

10

 

Expected return on plan assets

 

 

(10

)

 

 

(14

)

Net actuarial loss (1)

 

 

3

 

 

 

4

 

Net periodic benefit cost (2)

 

$

4

 

 

$

3

 

 

(1)

These net periodic benefit costs were reclassified out of other comprehensive earnings.

(2)

The service cost component of net periodic benefit cost is included in G&A expense and the remaining components of net periodic benefit costs are included in other expenses in the accompanying consolidated comprehensive statements of earnings.

 

v3.19.1
Stockholders' Equity (Tables)
3 Months Ended
Mar. 31, 2019
Stockholders Equity Note [Abstract]  
Summary of Purchases of Common Stock

The table below provides information regarding purchases of Devon’s common stock that were made during 2018 and the first three months of 2019 (shares in thousands).  

 

 

Total Number of

Shares Purchased

 

 

Dollar Value of

Shares Purchased

 

 

Average Price Paid

per Share

 

First quarter 2018:

 

 

 

 

 

 

 

 

 

 

 

 

Open-Market

 

 

2,561

 

 

$

82

 

 

$

32.19

 

Second quarter 2018:

 

 

 

 

 

 

 

 

 

 

 

 

Open-Market

 

 

11,154

 

 

 

439

 

 

 

39.35

 

Third quarter 2018:

 

 

 

 

 

 

 

 

 

 

 

 

Open-Market

 

 

16,492

 

 

 

712

 

 

 

43.13

 

ASR

 

 

24,330

 

 

 

1,000

 

 

 

41.10

 

Total

 

 

40,822

 

 

 

1,712

 

 

 

41.92

 

Fourth quarter 2018:

 

 

 

 

 

 

 

 

 

 

 

 

Open-Market

 

 

23,612

 

 

 

745

 

 

 

31.57

 

First quarter 2019:

 

 

 

 

 

 

 

 

 

 

 

 

Open-Market

 

 

36,141

 

 

 

1,024

 

 

 

28.33

 

Total inception-to-date

 

 

114,290

 

 

$

4,002

 

 

$

35.01

 

 

v3.19.1
Discontinued Operations and Assets Held for Sale (Tables)
3 Months Ended
Mar. 31, 2019
Discontinued Operations And Disposal Groups [Abstract]  
Summary of Amounts Reported as Discontinued Operations in the Consolidated Comprehensive Statements of Earnings and Carrying Amounts of Assets and Liabilities Classified as Held for Sale on the Consolidated Balance Sheets

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

 

 

Three Months Ended March 31, 2018

 

Marketing and midstream revenues

 

$

1,612

 

Marketing and midstream expenses

 

 

1,341

 

Depreciation, depletion and amortization

 

 

138

 

General and administrative expenses

 

 

27

 

Financing costs, net

 

 

44

 

Other expenses

 

 

(2

)

Total expenses

 

 

1,548

 

Earnings from discontinued operations before income taxes

 

 

64

 

Income tax expense

 

 

6

 

Net earnings from discontinued operations, net of income tax expense

 

 

58

 

Net earnings attributable to noncontrolling interests

 

 

44

 

Net earnings from discontinued operations attributable to Devon

 

$

14

 

 

The following table presents the carrying amounts of the assets and liabilities classified as held for sale on the consolidated balance sheets. The assets and liabilities classified as held for sale at December 31, 2018 are related to the divestiture of non-core upstream Permian Basin assets which closed in January 2019 as further discussed in Note 2.

 

 

 

December 31, 2018

 

Accounts receivable

 

$

7

 

Oil and gas property and equipment, based on successful efforts accounting, net

 

 

190

 

Total assets held for sale

 

$

197

 

 

 

 

 

 

Accounts payable

 

$

3

 

Other current liabilities

 

 

19

 

Asset retirement obligations

 

 

47

 

Total liabilities held for sale

 

$

69

 

 

v3.19.1
Fair Value Measurements (Tables)
3 Months Ended
Mar. 31, 2019
Fair Value Disclosures [Abstract]  
Schedule Of Carrying Value And Fair Value Measurement Information For Financial Assets And Liabilities

 

 

 

 

 

 

 

 

 

 

 

Fair Value Measurements Using:

 

 

 

Carrying

 

 

Total Fair

 

 

Level 1

 

 

Level 2

 

 

 

Amount

 

 

Value

 

 

Inputs

 

 

Inputs

 

March 31, 2019 assets (liabilities):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash equivalents

 

$

432

 

 

$

432

 

 

$

432

 

 

$

 

Commodity derivatives

 

$

36

 

 

$

36

 

 

$

 

 

$

36

 

Commodity derivatives

 

$

(97

)

 

$

(97

)

 

$

 

 

$

(97

)

Debt

 

$

(5,786

)

 

$

(6,448

)

 

$

 

 

$

(6,448

)

December 31, 2018 assets (liabilities):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash equivalents

 

$

1,505

 

 

$

1,505

 

 

$

1,405

 

 

$

100

 

Commodity derivatives

 

$

677

 

 

$

677

 

 

$

 

 

$

677

 

Commodity derivatives

 

$

(68

)

 

$

(68

)

 

$

 

 

$

(68

)

Debt

 

$

(5,947

)

 

$

(5,965

)

 

$

 

 

$

(5,965

)

v3.19.1
Segment Information (Tables)
3 Months Ended
Mar. 31, 2019
Segment Reporting [Abstract]  
Schedule of Revenue from Contracts with Customers Disaggregated Based on Type of Good

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

 

 

Three Months Ended March 31, 2019

 

 

Three Months Ended March 31, 2018

 

 

 

U.S.

 

 

Canada

 

 

Total

 

 

U.S.

 

 

Canada

 

 

Total

 

Oil

 

$

661

 

 

$

351

 

 

$

1,012

 

 

$

677

 

 

$

230

 

 

$

907

 

Gas

 

 

233

 

 

 

 

 

 

233

 

 

 

255

 

 

 

 

 

 

255

 

NGL

 

 

174

 

 

 

 

 

 

174

 

 

 

198

 

 

 

 

 

 

198

 

Oil, gas and NGL revenues from

   contracts with customers

 

 

1,068

 

 

 

351

 

 

 

1,419

 

 

 

1,130

 

 

 

230

 

 

 

1,360

 

Oil, gas and NGL derivatives

 

 

(605

)

 

 

(104

)

 

 

(709

)

 

 

(113

)

 

 

72

 

 

 

(41

)

Upstream revenues

 

 

463

 

 

 

247

 

 

 

710

 

 

 

1,017

 

 

 

302

 

 

 

1,319

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Oil

 

 

356

 

 

 

26

 

 

 

382

 

 

 

531

 

 

 

17

 

 

 

548

 

Gas

 

 

218

 

 

 

 

 

 

218

 

 

 

155

 

 

 

 

 

 

155

 

NGL

 

 

191

 

 

 

 

 

 

191

 

 

 

176

 

 

 

 

 

 

176

 

Total marketing revenues from

   contracts with customers

 

 

765

 

 

 

26

 

 

 

791

 

 

 

862

 

 

 

17

 

 

 

879

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total revenues

 

$

1,228

 

 

$

273

 

 

$

1,501

 

 

$

1,879

 

 

$

319

 

 

$

2,198

 

 

Schedule of Selected Financial Information for Reporting Segments

The following table presents selected financial information for Devon’s reporting segments.

 

 

U.S.

 

 

Canada

 

 

Total

 

Three Months Ended March 31, 2019:

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation, depletion and amortization

 

$

380

 

 

$

79

 

 

$

459

 

Interest expense

 

$

71

 

 

$

15

 

 

$

86

 

Asset dispositions

 

$

(44

)

 

$

 

 

$

(44

)

Restructuring and transaction costs

 

$

51

 

 

$

3

 

 

$

54

 

Earnings (loss) from continuing operations before income taxes

 

$

(450

)

 

$

23

 

 

$

(427

)

Income tax benefit

 

$

(106

)

 

$

(4

)

 

$

(110

)

Net earnings (loss) from continuing operations

 

$

(344

)

 

$

27

 

 

$

(317

)

Property and equipment, net

 

$

9,926

 

 

$

3,938

 

 

$

13,864

 

Total assets

 

$

13,513

 

 

$

4,564

 

 

$

18,077

 

Capital expenditures, including acquisitions

 

$

481

 

 

$

49

 

 

$

530

 

Three Months Ended March 31, 2018:

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation, depletion and amortization

 

$

305

 

 

$

94

 

 

$

399

 

Interest expense

 

$

247

 

 

$

148

 

 

$

395

 

Asset dispositions

 

$

(12

)

 

$

 

 

$

(12

)

Loss from continuing operations before income taxes

 

$

(116

)

 

$

(129

)

 

$

(245

)

Income tax expense (benefit)

 

$

1

 

 

$

(35

)

 

$

(34

)

Net loss from continuing operations

 

$

(117

)

 

$

(94

)

 

$

(211

)

Property and equipment, net

 

$

10,538

 

 

$

4,186

 

 

$

14,724

 

Total assets (1)

 

$

13,477

 

 

$

5,271

 

 

$

18,748

 

Capital expenditures, including acquisitions

 

$

612

 

 

$

89

 

 

$

701

 

 

(1)

Total assets in the table above do not include assets held for sale related to Devon’s discontinued operations, which totaled $10.6 billion on March 31, 2018. Additional information about Devon’s discontinued operations can be found in Note 19.

v3.19.1
Divestitures (Narrative) (Details)
$ in Millions
3 Months Ended
Mar. 31, 2019
USD ($)
MMBoe
Mar. 31, 2018
USD ($)
Business Acquisition [Line Items]    
Gain recognized $ 44 $ 12
Non Core Assets [Member] | Permian Basin [Member]    
Business Acquisition [Line Items]    
Divestitures of property and equipment 300  
Gain recognized $ 44  
Total estimated proved reserves | MMBoe 25  
Non Core Assets [Member] | Permian Basin [Member] | Maximum [Member]    
Business Acquisition [Line Items]    
Percentage of estimated U.S. total proved reserves associated with divestiture assets. 2.00%  
v3.19.1
Derivative Financial Instruments (Schedule Of Open Oil Derivative Positions) (Details)
3 Months Ended
Mar. 31, 2019
$ / bbl
bbl
NYMEX West Texas Intermediate Price Swaps Oil Q2-Q4 2019 [Member]  
Derivative [Line Items]  
Volume Per Day (Bbls/d) | bbl 46,891
Weighted Average Price Swap 59.97
NYMEX West Texas Intermediate Price Swaps Oil Q1-Q4 2020 [Member]  
Derivative [Line Items]  
Volume Per Day (Bbls/d) | bbl 3,238
Weighted Average Price Swap 60.13
NYMEX West Texas Intermediate Price Collars Oil Q2-Q4 2019 [Member]  
Derivative [Line Items]  
Volume Per Day (Bbls/d) | bbl 87,484
Weighted Average Floor Price 54.60
Weighted Average Ceiling Price 64.62
NYMEX West Texas Intermediate Price Collars Oil Q1-Q4 2020 [Member]  
Derivative [Line Items]  
Volume Per Day (Bbls/d) | bbl 17,186
Weighted Average Floor Price 51.97
Weighted Average Ceiling Price 62.12
NYMEX West Texas Intermediate Three-Way Price Collars Oil Q2-Q4 2019 [Member]  
Derivative [Line Items]  
Volume Per Day (Bbls/d) | bbl 5,000
Weighted Average Ceiling Price 74.80
Weighted Average Floor Sold Price 50.00
Weighted Average Floor Purchased Price 63.00
Midland Sweet Basis Swaps Oil Q2-Q4 2019 [Member]  
Derivative [Line Items]  
Volume Per Day (Bbls/d) | bbl 24,945
Weighted Average Differential To WTI (0.46)
Argus LLS Basis Swaps Oil Q2-Q4 2019 [Member]  
Derivative [Line Items]  
Volume Per Day (Bbls/d) | bbl 8,900
Weighted Average Differential To WTI 5.10
Argus MEH Basis Swaps Oil Q2-Q4 2019 [Member]  
Derivative [Line Items]  
Volume Per Day (Bbls/d) | bbl 20,945
Weighted Average Differential To WTI 3.24
NYMEX Roll Basis Swaps Oil Q2-Q4 2019 [Member]  
Derivative [Line Items]  
Volume Per Day (Bbls/d) | bbl 38,000
Weighted Average Differential To WTI 0.45
Western Canadian Select Basis Swaps Oil Q2-Q4 2019 [Member]  
Derivative [Line Items]  
Volume Per Day (Bbls/d) | bbl 62,762
Weighted Average Differential To WTI (19.21)
Western Canadian Select Basis Swaps Oil Q1-Q4 2020 [Member]  
Derivative [Line Items]  
Volume Per Day (Bbls/d) | bbl 4,577
Weighted Average Differential To WTI (20.80)
NYMEX Roll Basis Swaps Oil Q1-Q4 2020 [Member]  
Derivative [Line Items]  
Volume Per Day (Bbls/d) | bbl 38,000
Weighted Average Differential To WTI 0.31
v3.19.1
Derivative Financial Instruments (Schedule Of Open Natural Gas Derivative Positions) (Details)
3 Months Ended
Mar. 31, 2019
MMBTU
$ / MMBTU
FERC Henry Hub Price Swaps Natural Gas Q2-Q4 2019 [Member]  
Derivative [Line Items]  
Volume Per Day (MMBtu/d) | MMBTU 262,525
Weighted Average Price Swap 2.81
FERC Henry Hub Price Swaps Natural Gas Q1-Q4 2020 [Member]  
Derivative [Line Items]  
Volume Per Day (MMBtu/d) | MMBTU 51,409
Weighted Average Price Swap 2.86
FERC Henry Hub Price Collars Natural Gas Q2-Q4 2019 [Member]  
Derivative [Line Items]  
Volume Per Day (MMBtu/d) | MMBTU 213,884
Weighted Average Floor Price 2.64
Weighted Average Ceiling Price 3.02
FERC Henry Hub Price Collars Natural Gas Q1-Q4 2020 [Member]  
Derivative [Line Items]  
Volume Per Day (MMBtu/d) | MMBTU 40,071
Weighted Average Floor Price 2.73
Weighted Average Ceiling Price 3.03
PEPL Basis Swaps Natural Gas Q2-Q4 2019 [Member]  
Derivative [Line Items]  
Volume Per Day (MMBtu/d) | MMBTU 63,018
Weighted Average Differential To Henry Hub (0.71)
El Paso Natural Gas Basis Swaps Q2-Q4 2019 [Member]  
Derivative [Line Items]  
Volume Per Day (MMBtu/d) | MMBTU 130,000
Weighted Average Differential To Henry Hub (1.46)
Houston Ship Channel Natural Gas Basis Swaps Q2-Q4 2019 [Member]  
Derivative [Line Items]  
Volume Per Day (MMBtu/d) | MMBTU 162,500
Weighted Average Differential To Henry Hub 0.01
PEPL Basis Swaps Natural Gas Q1-Q4 2020 [Member]  
Derivative [Line Items]  
Volume Per Day (MMBtu/d) | MMBTU 30,000
Weighted Average Differential To Henry Hub (0.47)
El Paso Natural Gas Basis Swaps Q1-Q4 2020 [Member]  
Derivative [Line Items]  
Volume Per Day (MMBtu/d) | MMBTU 40,000
Weighted Average Differential To Henry Hub (0.67)
Houston Ship Channel Natural Gas Basis Swaps Q1-Q4 2020 [Member]  
Derivative [Line Items]  
Volume Per Day (MMBtu/d) | MMBTU 10,000
Weighted Average Differential To Henry Hub 0.02
v3.19.1
Derivative Financial Instruments (Schedule Of Open NGL Derivative Positions) (Details)
3 Months Ended
Mar. 31, 2019
$ / bbl
bbl
OPIS Mont Belvieu Texas Ethane Price Swaps NGL Q2-Q4 2019 [Member]  
Derivative [Line Items]  
Volume Per Day (Bbls/d) | bbl 1,000
Weighted Average Price Swap | $ / bbl 11.55
OPIS Mont Belvieu Texas Natural Gasoline Price Swaps NGL Q2-Q4 2019 [Member]  
Derivative [Line Items]  
Volume Per Day (Bbls/d) | bbl 4,500
Weighted Average Price Swap | $ / bbl 55.93
OPIS Mont Belvieu Texas Normal Butane Price Swaps NGL Q2-Q4 2019 [Member]  
Derivative [Line Items]  
Volume Per Day (Bbls/d) | bbl 4,000
Weighted Average Price Swap | $ / bbl 33.69
OPIS Mont Belvieu Texas Propane Price Swaps NGL Q2-Q4 2019 [Member]  
Derivative [Line Items]  
Volume Per Day (Bbls/d) | bbl 8,500
Weighted Average Price Swap | $ / bbl 30.01
v3.19.1
Derivative Financial Instruments (Schedule Of Derivative Financial Instruments Included In The Consolidated Comprehensive Statements Of Earnings) (Details) - USD ($)
$ in Millions
3 Months Ended
Mar. 31, 2019
Mar. 31, 2018
Derivative [Line Items]    
Net gains (losses) recognized in consolidated comprehensive statements of earnings $ (708) $ 5
Commodity Derivatives [Member] | Upstream Revenues [Member]    
Derivative [Line Items]    
Net gains (losses) recognized in consolidated comprehensive statements of earnings (709) (41)
Commodity Derivatives [Member] | Marketing Revenues [Member]    
Derivative [Line Items]    
Net gains (losses) recognized in consolidated comprehensive statements of earnings $ 1  
Interest Rate Derivatives [Member] | Other Expenses [Member]    
Derivative [Line Items]    
Net gains (losses) recognized in consolidated comprehensive statements of earnings   $ 46
v3.19.1
Derivative Financial Instruments (Schedule Of Derivative Financial Instruments Included In The Consolidated Balance Sheets) (Details) - USD ($)
$ in Millions
Mar. 31, 2019
Dec. 31, 2018
Derivatives Fair Value [Line Items]    
Fair value of derivative assets $ 36 $ 677
Fair value of derivative liabilities 97 68
Other Current Liabilities [Member]    
Derivatives Fair Value [Line Items]    
Fair value of derivative liabilities 91 67
Commodity Derivatives [Member] | Other Current Assets [Member]    
Derivatives Fair Value [Line Items]    
Fair value of derivative assets 30 637
Commodity Derivatives [Member] | Other Long-Term Assets [Member]    
Derivatives Fair Value [Line Items]    
Fair value of derivative assets 6 40
Commodity Derivatives [Member] | Other Current Liabilities [Member]    
Derivatives Fair Value [Line Items]    
Fair value of derivative liabilities 91 67
Commodity Derivatives [Member] | Other Long-Term Liabilities [Member]    
Derivatives Fair Value [Line Items]    
Fair value of derivative liabilities $ 6 $ 1
v3.19.1
Share-Based Compensation (Schedule Of Share-Based Compensation Expense Included In The Consolidated Comprehensive Statements Of Earnings) (Details) - USD ($)
$ in Millions
3 Months Ended
Mar. 31, 2019
Mar. 31, 2018
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]    
Share-based compensation expense $ 49 $ 39
Related income tax benefit 10 1
G&A [Member]    
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]    
Share-based compensation expense 26 37
Exploration Expenses [Member]    
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]    
Share-based compensation expense 1 $ 2
Restructuring and Transaction Costs [Member]    
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]    
Accelerated share-based compensation expense $ 22  
v3.19.1
Share-Based Compensation (Summary Of Unvested Restricted Stock Awards and Units, Performance-Based Restricted Stock Awards And Performance Share Units) (Details)
shares in Thousands
3 Months Ended
Mar. 31, 2019
$ / shares
shares
Restricted Stock Awards And Units [Member]  
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]  
Unvested at December 31, 2018 | shares 5,963
Granted, awards and units | shares 4,271
Vested, awards and units | shares (2,505)
Forfeited, awards and units | shares (442)
Unvested at March 31, 2019 | shares 7,287
Unvested weighted average grant-date fair value at December 31, 2018 | $ / shares $ 35.47
Granted, weighted average grant-date fair value | $ / shares 25.47
Vested, weighted average grant-date fair value | $ / shares 35.05
Forfeited, weighted average grant-date fair value | $ / shares 26.83
Unvested weighted average grant-date fair value at March 31, 2019 | $ / shares $ 30.27
Performance-Based Restricted Stock Awards [Member]  
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]  
Unvested at December 31, 2018 | shares 302
Vested, awards and units | shares (137)
Unvested at March 31, 2019 | shares 165
Unvested weighted average grant-date fair value at December 31, 2018 | $ / shares $ 35.93
Vested, weighted average grant-date fair value | $ / shares 37.44
Unvested weighted average grant-date fair value at March 31, 2019 | $ / shares $ 34.67
Performance Share Units [Member]  
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]  
Unvested at December 31, 2018 | shares 2,868
Granted, awards and units | shares 741
Forfeited, awards and units | shares (1,267)
Unvested at March 31, 2019 | shares 2,342 [1]
Unvested weighted average grant-date fair value at December 31, 2018 | $ / shares $ 30.14
Granted, weighted average grant-date fair value | $ / shares 28.97
Forfeited, weighted average grant-date fair value | $ / shares 11.15
Unvested weighted average grant-date fair value at March 31, 2019 | $ / shares $ 40.05
[1] A maximum of 4.7 million common shares could be awarded based upon Devon’s final TSR ranking.
v3.19.1
Share-Based Compensation (Summary Of Unvested Restricted Stock Awards and Units, Performance-Based Restricted Stock Awards And Performance Share Units) (Parenthetical) (Details)
shares in Millions
3 Months Ended
Mar. 31, 2019
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 4.7
v3.19.1
Share-Based Compensation (Summary Of Performance Share Units Grant-Date Fair Values And Their Related Assumptions) (Details) - Performance Share Units [Member]
3 Months Ended
Mar. 31, 2019
$ / shares
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]  
Grant-date fair value $ 28.97
Risk-free interest rate 2.48%
Volatility factor 39.10%
Contractual term (years) 2 years 10 months 20 days
Minimum [Member]  
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]  
Grant-date fair value $ 28.43
Maximum [Member]  
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]  
Grant-date fair value $ 29.53
v3.19.1
Share-Based Compensation (Summary of Unrecognized Compensation Cost And Weighted Average Period For Recognition) (Details)
$ in Millions
3 Months Ended
Mar. 31, 2019
USD ($)
Restricted Stock Awards And Units [Member]  
Unrecognized Compensation And Weighted Average Recognition [Line Items]  
Unrecognized compensation cost $ 162
Weighted average period for recognition (years) 2 years 9 months 18 days
Performance-Based Restricted Stock Awards [Member]  
Unrecognized Compensation And Weighted Average Recognition [Line Items]  
Weighted average period for recognition (years) 2 years 2 months 12 days
Performance Share Units [Member]  
Unrecognized Compensation And Weighted Average Recognition [Line Items]  
Unrecognized compensation cost $ 33
Weighted average period for recognition (years) 1 year 10 months 24 days
v3.19.1
Restructuring and Transaction Costs (Narrative) (Details)
$ in Millions
3 Months Ended
Mar. 31, 2019
USD ($)
Restructuring Cost And Reserve [Line Items]  
Restructuring and transaction costs $ 54
Reduction of workforce [Member]  
Restructuring Cost And Reserve [Line Items]  
Restructuring and transaction costs 54
Expense associated with accelerated awards $ 22
v3.19.1
Restructuring and Transaction Costs (Schedule Of The Activity And Balances Associated With Restructuring Liabilities) (Details) - USD ($)
$ in Millions
3 Months Ended
Mar. 31, 2019
Mar. 31, 2018
Restructuring Cost And Reserve [Line Items]    
Beginning balance $ 63 $ 50
Ending balance 72 45
Reduction of workforce [Member]    
Restructuring Cost And Reserve [Line Items]    
Restructuring reserve activity 30  
Prior years' restructurings [Member]    
Restructuring Cost And Reserve [Line Items]    
Restructuring reserve activity (21) (5)
Other Current Liabilities [Member]    
Restructuring Cost And Reserve [Line Items]    
Beginning balance 47 19
Ending balance 59 18
Other Current Liabilities [Member] | Reduction of workforce [Member]    
Restructuring Cost And Reserve [Line Items]    
Restructuring reserve activity 30  
Other Current Liabilities [Member] | Prior years' restructurings [Member]    
Restructuring Cost And Reserve [Line Items]    
Restructuring reserve activity (18) (1)
Other Long-Term Liabilities [Member]    
Restructuring Cost And Reserve [Line Items]    
Beginning balance 16 31
Ending balance 13 27
Other Long-Term Liabilities [Member] | Prior years' restructurings [Member]    
Restructuring Cost And Reserve [Line Items]    
Restructuring reserve activity $ (3) $ (4)
v3.19.1
Other Expenses (Schedule Of Other Expenses Presented In The Accompanying Consolidated Comprehensive Statements of Earnings) (Details) - USD ($)
$ in Millions
3 Months Ended
Mar. 31, 2019
Mar. 31, 2018
Other Income And Expenses [Abstract]    
Foreign exchange (gain) loss, net $ (34) $ 50
Asset retirement obligation accretion 14 16
Other, net (25) (45)
Total $ (45) $ 21
v3.19.1
Income Taxes (Schedule Of Effective Income Tax Rate Reconciliation) (Details) - USD ($)
$ in Millions
3 Months Ended
Mar. 31, 2019
Mar. 31, 2018
Income Tax Disclosure [Abstract]    
Current income tax expense (benefit) $ (3) $ 4
Deferred income tax benefit (107) (38)
Total income tax benefit $ (110) $ (34)
U.S. statutory income tax rate 21.00% 21.00%
State income taxes 7.00% 1.00%
Other (2.00%) (8.00%)
Effective income tax rate 26.00% 14.00%
v3.19.1
Income Taxes (Narrative) (Details) - USD ($)
$ in Millions
3 Months Ended
Mar. 31, 2019
Mar. 31, 2018
Income Tax Disclosure [Abstract]    
Change in deferred tax valuation allowance $ 13  
Valuation allowance against U.S. deferred tax assets, percent   100.00%
v3.19.1
Net Loss Per Share from Continuing Operations (Loss Per Share Computations from Continuing Operations) (Details) - USD ($)
$ / shares in Units, shares in Millions, $ in Millions
3 Months Ended
Mar. 31, 2019
Mar. 31, 2018
Net loss from continuing operations:    
Net loss from continuing operations $ (317) $ (211)
Basic and diluted loss from continuing operations $ (317) $ (211)
Common shares:    
Common shares outstanding - total 434 527
Attributable to participating securities (6) (7)
Common shares outstanding - basic and diluted 428 520
Net loss per share from continuing operations:    
Basic $ (0.74) $ (0.41)
Diluted $ (0.74) $ (0.41)
Antidilutive options [1] 1 2
[1] Amounts represent options to purchase shares of Devon’s common stock that are excluded from the diluted net earnings per share calculations because the options are antidilutive.
v3.19.1
Other Comprehensive Earnings (Components Of Other Comprehensive Earnings) (Details) - USD ($)
$ in Millions
3 Months Ended
Mar. 31, 2019
Mar. 31, 2018
Dec. 31, 2018
Foreign currency translation:      
Beginning accumulated foreign currency translation and other $ 1,159 $ 1,309  
Change in cumulative translation adjustment 35 (61)  
Income tax benefit   13  
Ending accumulated foreign currency translation 1,194 1,261  
Pension and postretirement benefit plans:      
Beginning accumulated pension and postretirement benefits (132) (143)  
Recognition of net actuarial loss and prior service cost in earnings [1] 3 4  
Income tax expense (1)    
Ending accumulated pension and postretirement benefits (130) (139)  
Accumulated other comprehensive earnings, net of tax $ 1,064 $ 1,122 $ 1,027
[1] These accumulated other comprehensive earnings components are included in the computation of net periodic benefit cost, which is a component of other expenses in the accompanying consolidated comprehensive statements of earnings. See Note 17 for additional details.
v3.19.1
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, 2019
Mar. 31, 2018
Changes in assets and liabilities, net    
Accounts receivable $ (152) $ 37
Other current assets (7) (88)
Other long-term assets (19) (53)
Accounts payable (37) 4
Revenues and royalties payable (49) 66
Other current liabilities (30) 64
Other long-term liabilities (8) (5)
Total (302) 25
Supplementary cash flow data - total operations:    
Interest paid (net of capitalized interest) 53 76
Income taxes paid $ 6 $ 1
v3.19.1
Accounts Receivable (Schedule Of Components Of Accounts Receivable) (Details) - USD ($)
$ in Millions
Mar. 31, 2019
Dec. 31, 2018
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Joint interest billings $ 155 $ 155
Other 14 23
Gross accounts receivable 1,046 893
Allowance for doubtful accounts (8) (8)
Net accounts receivable 1,038 885
Oil, Gas and NGL Sales [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Gross accounts receivable 608 430
Marketing Revenues [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Gross accounts receivable $ 269 $ 285
v3.19.1
Property, Plant and Equipment (Table of Property and Equipment, net) (Details) - USD ($)
$ in Millions
Mar. 31, 2019
Dec. 31, 2018
Mar. 31, 2018
Property and equipment:      
Proved $ 47,325 $ 46,805  
Unproved and properties under development 2,215 2,267  
Total oil and gas 49,540 49,072  
Less accumulated DD&A (36,774) (36,259)  
Oil and gas property and equipment, net 12,766 12,813  
Other property and equipment 1,819 1,832  
Less accumulated DD&A (721) (710)  
Other property and equipment, net 1,098 1,122  
Total property and equipment, net $ 13,864 $ 13,935 $ 14,724
v3.19.1
Other Current Liabilities (Schedule Of Other Current Liabilities) (Details) - USD ($)
$ in Millions
Mar. 31, 2019
Dec. 31, 2018
Other Liabilities, Current [Abstract]    
Derivative liabilities $ 97 $ 68
Accrued interest payable 106 80
Lease liabilities [1] 67  
Restructuring liabilities 59 47
Other 192 241
Other current liabilities 515 435
Other Current Liabilities [Member]    
Other Liabilities, Current [Abstract]    
Derivative liabilities $ 91 $ 67
[1] Current lease liabilities are included in other current liabilities on the consolidated balance sheets.
v3.19.1
Debt And Related Expenses (Schedule Of Debt Instruments and Balances) (Details) - USD ($)
$ in Millions
3 Months Ended
Mar. 31, 2019
Dec. 31, 2018
Debt Instrument [Line Items]    
Short-term debt   $ 162
Net discount on debentures and notes $ (24) (24)
Debt issuance costs (39) (40)
Total debt 5,786 5,947
Total long-term debt $ 5,786 5,785
6.30% Due January 15, 2019 [Member]    
Debt Instrument [Line Items]    
Short-term debt   $ 162
Debt, maturity date Jan. 15, 2019  
Debt interest rate, stated percentage 6.30% 6.30%
4.00% Due July 15, 2021 [Member]    
Debt Instrument [Line Items]    
Long-term debt, gross $ 500 $ 500
Debt, maturity date Jul. 15, 2021  
Debt interest rate, stated percentage 4.00% 4.00%
3.25% due May 15, 2022 [Member]    
Debt Instrument [Line Items]    
Long-term debt, gross $ 1,000 $ 1,000
Debt, maturity date May 15, 2022  
Debt interest rate, stated percentage 3.25% 3.25%
5.85% due December 15, 2025 [Member]    
Debt Instrument [Line Items]    
Long-term debt, gross $ 485 $ 485
Debt, maturity date Dec. 15, 2025  
Debt interest rate, stated percentage 5.85% 5.85%
7.50% due September 15, 2027 [Member]    
Debt Instrument [Line Items]    
Long-term debt, gross $ 73 $ 73
Debt, maturity date Sep. 15, 2027  
Debt interest rate, stated percentage 7.50% 7.50%
7.875% due September 30, 2031 [Member]    
Debt Instrument [Line Items]    
Long-term debt, gross [1] $ 675 $ 675
Debt, maturity date Sep. 30, 2031  
Debt interest rate, stated percentage 7.875% 7.875%
7.95% due April 15, 2032 [Member]    
Debt Instrument [Line Items]    
Long-term debt, gross [1] $ 366 $ 366
Debt, maturity date Apr. 15, 2032  
Debt interest rate, stated percentage 7.95% 7.95%
5.60% due July 15, 2041 [Member]    
Debt Instrument [Line Items]    
Long-term debt, gross $ 1,250 $ 1,250
Debt, maturity date Jul. 15, 2041  
Debt interest rate, stated percentage 5.60% 5.60%
4.75% due May 15, 2042 [Member]    
Debt Instrument [Line Items]    
Long-term debt, gross $ 750 $ 750
Debt, maturity date May 15, 2042  
Debt interest rate, stated percentage 4.75% 4.75%
5.00% due June 15, 2045 [Member]    
Debt Instrument [Line Items]    
Long-term debt, gross $ 750 $ 750
Debt, maturity date Jun. 15, 2045  
Debt interest rate, stated percentage 5.00% 5.00%
[1] These senior notes were included in the 2018 tender offer repurchases discussed below
v3.19.1
Debt And Related Expenses (Narrative) (Details) - USD ($)
1 Months Ended 3 Months Ended
Jan. 31, 2019
Mar. 31, 2019
Mar. 31, 2018
Dec. 31, 2018
Debt Instrument [Line Items]        
Redemption of senior notes   $ 162,000,000 $ 807,000,000  
Loss on early retirement of debt     (312,000,000)  
Loss on early retirement of debt, cash retirement costs     304,000,000  
Senior Notes [Member]        
Debt Instrument [Line Items]        
Redemption of senior notes     807,000,000  
Loss on early retirement of debt     (312,000,000)  
Loss on early retirement of debt, cash retirement costs     304,000,000  
Loss on early retirement of debt, noncash charges     8,000,000  
6.30% Due January 15, 2019 [Member]        
Debt Instrument [Line Items]        
Debt interest rate, stated percentage   6.30%   6.30%
Debt, maturity date   Jan. 15, 2019    
6.30% Due January 15, 2019 [Member] | Senior Notes [Member]        
Debt Instrument [Line Items]        
Redemption of senior notes $ 162,000,000      
Debt interest rate, stated percentage 6.30%      
7.875% due September 30, 2031 [Member]        
Debt Instrument [Line Items]        
Debt interest rate, stated percentage   7.875%   7.875%
Debt, maturity date   Sep. 30, 2031    
7.875% due September 30, 2031 [Member] | Senior Notes [Member]        
Debt Instrument [Line Items]        
Redemption of senior notes     $ 384,000,000  
Debt interest rate, stated percentage     7.875%  
Debt, maturity date     Sep. 30, 2031  
7.95% due April 15, 2032 [Member]        
Debt Instrument [Line Items]        
Debt interest rate, stated percentage   7.95%   7.95%
Debt, maturity date   Apr. 15, 2032    
7.95% due April 15, 2032 [Member] | Senior Notes [Member]        
Debt Instrument [Line Items]        
Redemption of senior notes     $ 423,000,000  
Debt interest rate, stated percentage     7.95%  
Debt, maturity date     Apr. 15, 2032  
Senior Credit Facility [Member]        
Debt Instrument [Line Items]        
Credit Facility, borrowing capacity   $ 3,000,000,000.0    
Outstanding credit facility borrowings   $ 0    
Debt-to-capitalization ratio   0.216    
Outstanding letters of credit   $ 52,000,000    
Senior Credit Facility [Member] | Maximum [Member]        
Debt Instrument [Line Items]        
Debt-to-capitalization ratio   0.65    
v3.19.1
Debt And Related Expenses (Schedule of Net Financing Cost Components) (Details) - USD ($)
$ in Millions
3 Months Ended
Mar. 31, 2019
Mar. 31, 2018
Debt Disclosure [Abstract]    
Interest based on debt outstanding $ 78 $ 96
Early retirement of debt   312
Capitalized interest   (18)
Other (5) (3)
Total net financing costs $ 73 $ 387
v3.19.1
Leases (Narrative) (Details) - USD ($)
$ in Millions
Jan. 01, 2019
Mar. 31, 2019
Operating Leased Assets [Line Items]    
Right-of-use assets   $ 365
Lease liabilities [1]   $ 365
ASU 2016-02 [Member]    
Operating Leased Assets [Line Items]    
Right-of-use assets $ 394  
Lease liabilities 380  
Cumulative effect on retained earnings, before tax (24)  
Cumulative effect on retained earnings $ (19)  
[1] Under previous lease accounting standard, ASC 840, Devon’s lease obligations as of December 31, 2018 expiring in each of the next 5 years and thereafter were $72 million for 2019, $54 million for 2020, $24 million for 2021, $15 million for 2022, $15 million for 2023 and $33 million thereafter
v3.19.1
Leases (Schedule of Right-of-use Assets and Lease Liabilities) (Details)
$ in Millions
Mar. 31, 2019
USD ($)
Leases [Abstract]  
Right-of-use assets, finance lease $ 215
Finance lease liabilities:  
Current lease liabilities, finance lease 7 [1]
Long-term lease liabilities, finance lease 238
Total lease liabilities, finance lease 245
Right-of-use assets, operating lease 150
Operating lease liabilities:  
Current lease liabilities, operating lease 60 [1]
Long-term lease liabilities, operating lease 60
Total lease liabilities, operating lease 120
Right-of-use assets 365
Lease liabilities:  
Current lease liabilities 67 [1]
Long-term lease liabilities 298
Total lease liabilities $ 365 [2]
[1] Current lease liabilities are included in other current liabilities on the consolidated balance sheets.
[2] Under previous lease accounting standard, ASC 840, Devon’s lease obligations as of December 31, 2018 expiring in each of the next 5 years and thereafter were $72 million for 2019, $54 million for 2020, $24 million for 2021, $15 million for 2022, $15 million for 2023 and $33 million thereafter
v3.19.1
Leases (Schedule of Total Lease Cost) (Details)
$ in Millions
3 Months Ended
Mar. 31, 2019
USD ($)
Leases [Abstract]  
Operating lease cost $ 15 [1],[2]
Short-term lease cost 26 [1],[3]
Financing lease cost:  
Amortization of right-of-use assets 6 [4]
Interest on lease liabilities 3 [5]
Variable lease cost 1 [1]
Lease income (1) [1]
Net lease cost $ 50
[1] Included as a component of general and administrative expense in the accompanying consolidated comprehensive statements of earnings
[2] Includes certain amounts capitalized to oil and gas property and equipment in the accompanying consolidated balance sheets.
[3] Short-term lease cost excludes leases with terms of one month or less.
[4] Included as a component of depreciation, depletion and amortization in the accompanying consolidated comprehensive statements of earnings.
[5] Included as a component of net financing costs in the accompanying consolidated comprehensive statements of earnings.
v3.19.1
Leases (Schedule of Additional Lease Information) (Details)
$ in Millions
3 Months Ended
Mar. 31, 2019
USD ($)
Cash outflows for lease liabilities:  
Operating cash flows, Finance lease $ 2
Weighted average remaining lease term (years), Finance lease 8 years 9 months 18 days
Weighted average discount rate, Finance lease 4.20%
Operating cash flows, Operating lease $ 3
Investing cash flows, Operating lease $ 15
Weighted average remaining lease term (years), Operating lease 2 years 7 months 6 days
Weighted average discount rate, Operating lease 3.40%
v3.19.1
Leases (Maturities of Lease Liabilities) (Details)
$ in Millions
Mar. 31, 2019
USD ($)
Leases [Abstract]  
2019 $ 5
2020 7
2021 7
2022 8
2023 8
Thereafter 306
Total lease payments 341
Less: interest (96)
Present value of lease liabilities 245
2019 48
2020 47
2021 16
2022 7
2023 7
Thereafter 1
Total lease payments 126
Less: interest (6)
Present value of lease liabilities 120
2019 53 [1]
2020 54 [1]
2021 23 [1]
2022 15 [1]
2023 15 [1]
Thereafter 307 [1]
Total lease payments 467 [1]
Less: interest (102) [1]
Present value of lease liabilities $ 365 [1]
[1] Under previous lease accounting standard, ASC 840, Devon’s lease obligations as of December 31, 2018 expiring in each of the next 5 years and thereafter were $72 million for 2019, $54 million for 2020, $24 million for 2021, $15 million for 2022, $15 million for 2023 and $33 million thereafter
v3.19.1
Leases (Maturities of Lease Liabilities) (Parenthetical) (Details) - USD ($)
$ in Millions
Mar. 31, 2019
Dec. 31, 2018
Lease Liability Maturity Term [Line Items]    
2019 $ 48  
2020 47  
2021 16  
2022 7  
2023 7  
Thereafter $ 1  
ASC 840    
Lease Liability Maturity Term [Line Items]    
2019   $ 72
2020   54
2021   24
2022   15
2023   15
Thereafter   $ 33
v3.19.1
Leases (Schedule of Expected Lease Income ) (Details)
$ in Millions
Mar. 31, 2019
USD ($)
[1]
Leases [Abstract]  
2019 $ 4
2020 6
2021 7
2022 7
2023 7
Thereafter 53
Total $ 84
[1] Included in operating lease income is approximately $30 million related to leases which have been executed but not yet commenced
v3.19.1
Leases (Schedule of Expected Lease Income ) (Parenthetical) (Details)
$ in Millions
Mar. 31, 2019
USD ($)
Leases [Abstract]  
Operating lease income for leases not yet commenced $ 30
v3.19.1
Asset Retirement Obligations (Summary Of Changes In Asset Retirement Obligations) (Details) - USD ($)
$ in Millions
3 Months Ended
Mar. 31, 2019
Mar. 31, 2018
Dec. 31, 2018
Asset Retirement Obligation Disclosure [Abstract]      
Asset retirement obligations as of beginning of period $ 1,057 $ 1,138  
Liabilities incurred 7 15  
Liabilities settled and divested (37) (20)  
Revision of estimated obligation (87) 23  
Accretion expense on discounted obligation 14 16  
Foreign currency translation adjustment 9 (13)  
Asset retirement obligations as of end of period 963 1,159  
Less current portion 25 32  
Asset retirement obligations, long-term $ 938 $ 1,127 $ 1,030
v3.19.1
Asset Retirement Obligations (Narrative) (Details) - USD ($)
$ in Millions
3 Months Ended
Mar. 31, 2019
Mar. 31, 2018
Asset Retirement Obligation [Abstract]    
Revision of estimated obligation $ (87) $ 23
v3.19.1
Retirement Plans (Narrative) (Details) - USD ($)
$ in Millions
3 Months Ended
Mar. 31, 2019
Mar. 31, 2018
Postretirement Benefits [Member]    
Defined Benefit Plan Disclosure [Line Items]    
Net periodic benefit cost $ 0 $ 0
v3.19.1
Retirement Plans (Schedule Of Net Periodic Benefit Cost For Pension Benefits Plan) (Details) - Pension Benefits [Member] - USD ($)
$ in Millions
3 Months Ended
Mar. 31, 2019
Mar. 31, 2018
Defined Benefit Plan Disclosure [Line Items]    
Service cost $ 2 $ 3
Interest cost 9 10
Expected return on plan assets (10) (14)
Net actuarial loss [1] 3 4
Net periodic benefit cost [2] $ 4 $ 3
[1] These net periodic benefit costs were reclassified out of other comprehensive earnings.
[2] The service cost component of net periodic benefit cost is included in G&A expense and the remaining components of net periodic benefit costs are included in other expenses in the accompanying consolidated comprehensive statements of earnings.
v3.19.1
Stockholders' Equity (Narrative) (Details) - USD ($)
$ / shares in Units, $ in Millions
1 Months Ended 3 Months Ended
Feb. 28, 2019
Mar. 31, 2019
Jun. 30, 2018
Mar. 31, 2018
Stockholders Equity [Abstract]        
Common stock dividends paid, amount   $ 34   $ 32
Common stock dividends, rate per share   $ 0.08 $ 0.08 $ 0.06
Percentage of increase to quarterly dividend 12.50%      
Common stock dividends, rate per share, declared $ 0.09      
Share Repurchase Program [Member]        
Stockholders Equity [Abstract]        
Share-repurchase program, additional authorized amount $ 1,000   $ 3,000  
Share-repurchase program expiration date   Dec. 31, 2019    
Share Repurchase Program [Member] | Maximum [Member]        
Stockholders Equity [Abstract]        
Share-repurchase program, authorized amount $ 5,000     $ 1,000
v3.19.1
Stockholders' Equity (Summary of Purchases of Common Stock) (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Millions
3 Months Ended 15 Months Ended
Mar. 31, 2019
Dec. 31, 2018
Sep. 30, 2018
Jun. 30, 2018
Mar. 31, 2018
Mar. 31, 2019
Stockholders Equity [Line Items]            
Total Number of Shares Purchased     40,822     114,290
Dollar Value of Shares Purchased     $ 1,712     $ 4,002
Average Price Paid per Share     $ 41.92     $ 35.01
Open-Market [Member]            
Stockholders Equity [Line Items]            
Total Number of Shares Purchased 36,141 23,612 16,492 11,154 2,561  
Dollar Value of Shares Purchased $ 1,024 $ 745 $ 712 $ 439 $ 82  
Average Price Paid per Share $ 28.33 $ 31.57 $ 43.13 $ 39.35 $ 32.19  
ASR [Member]            
Stockholders Equity [Line Items]            
Total Number of Shares Purchased     24,330      
Dollar Value of Shares Purchased     $ 1,000      
Average Price Paid per Share     $ 41.10      
v3.19.1
Discontinued Operations and Assets Held for Sale (Narrative) (Details) - EnLink and General Partner [Member]
$ in Millions
3 Months Ended
Mar. 31, 2019
USD ($)
MMcf
Sep. 30, 2018
USD ($)
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items]    
Proceeds from sale of aggregate ownership interests   $ 3,125
Effective close date of divestiture Jul. 18, 2018  
Gain on sale of aggregate ownership interests, before-tax   2,600
Gain on sale of aggregate ownership interests, after-tax   2,200
Cash income taxes   $ 12
Net cash outflows $ 150  
Chisholm Gathering and Processing Contract [Member]    
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items]    
Gathering and processing minimum volume commitments period end early 2021  
Bridgeport and Cana Gathering and Processing Contracts [Member]    
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items]    
Commitment Termination Date Dec. 31, 2029  
Minimum [Member] | Chisholm Gathering and Processing Contract [Member]    
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items]    
Minimum gathering volume commitment | MMcf 77  
Minimum processing volume commitment | MMcf 77  
Maximum [Member] | Chisholm Gathering and Processing Contract [Member]    
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items]    
Minimum gathering volume commitment | MMcf 128  
Minimum processing volume commitment | MMcf 128  
v3.19.1
Discontinued Operations and Assets Held for Sale (Amounts Reported as Discontinued Operations in the Consolidated Comprehensive Statements of Earnings) (Details)
$ in Millions
3 Months Ended
Mar. 31, 2018
USD ($)
Discontinued Operations And Disposal Groups [Abstract]  
Marketing and midstream revenues $ 1,612
Marketing and midstream expenses 1,341
Depreciation, depletion and amortization 138
General and administrative expenses 27
Financing costs, net 44
Other expenses (2)
Total expenses 1,548
Earnings from discontinued operations before income taxes 64
Income tax expense 6
Net earnings from discontinued operations, net of income tax expense 58
Net earnings attributable to noncontrolling interests 44
Net earnings from discontinued operations attributable to Devon $ 14
v3.19.1
Discontinued Operations and Assets Held for Sale (Carrying Amounts of Assets and Liabilities Classified as Held for Sale on Consolidated Balance Sheets) (Details) - USD ($)
$ in Millions
Dec. 31, 2018
Mar. 31, 2018
Disposal Group Including Discontinued Operation Balance Sheet Disclosures [Abstract]    
Accounts receivable $ 7  
Oil and gas property and equipment, based on successful efforts accounting, net 190  
Total assets held for sale 197 $ 10,600
Accounts payable 3  
Other current liabilities 19  
Asset retirement obligations 47  
Total liabilities held for sale $ 69  
v3.19.1
Commitments And Contingencies (Narrative) (Details)
3 Months Ended
Mar. 31, 2019
Defendant
Parishes in Louisiana [Member] | Minimum [Member]  
Loss Contingencies [Line Items]  
Number of defendants 100
v3.19.1
Fair Value Measurements (Schedule Of Carrying Value And Fair Value Measurement Information For Financial Assets And Liabilities) (Details) - USD ($)
$ in Millions
Mar. 31, 2019
Dec. 31, 2018
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivatives, assets $ 36 $ 677
Derivatives, liabilities (97) (68)
Carrying Amount [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash equivalents 432 1,505
Debt (5,786) (5,947)
Carrying Amount [Member] | Commodity Derivatives [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivatives, assets 36 677
Derivatives, liabilities (97) (68)
Total Fair Value [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash equivalents 432 1,505
Debt (6,448) (5,965)
Total Fair Value [Member] | Commodity Derivatives [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivatives, assets 36 677
Derivatives, liabilities (97) (68)
Level 1 Inputs [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash equivalents 432 1,405
Level 2 Inputs [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash equivalents   100
Debt (6,448) (5,965)
Level 2 Inputs [Member] | Commodity Derivatives [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivatives, assets 36 677
Derivatives, liabilities $ (97) $ (68)
v3.19.1
Segment Information (Schedule of Selected Financial Information for Reporting Segments) (Details)
$ in Millions
3 Months Ended
Mar. 31, 2019
USD ($)
segment
Mar. 31, 2018
USD ($)
Dec. 31, 2018
USD ($)
Segment Reporting Information [Line Items]      
Depreciation, depletion and amortization $ 459 $ 399  
Interest expense 86 395  
Asset dispositions (44) (12)  
Restructuring and transaction costs 54    
Earnings (loss) from continuing operations before income taxes (427) (245)  
Income tax expense (benefit) (110) (34)  
Net earnings (loss) from continuing operations (317) (211)  
Property and equipment, net 13,864 14,724 $ 13,935
Total assets 18,077   $ 19,566
Capital expenditures, including acquisitions 530 701  
Continuing Operations [Member]      
Segment Reporting Information [Line Items]      
Total assets $ 18,077 18,748 [1]  
United States [Member]      
Segment Reporting Information [Line Items]      
Number of reportable segments | segment 1    
United States [Member] | Operating Segments [Member]      
Segment Reporting Information [Line Items]      
Depreciation, depletion and amortization $ 380 305  
Interest expense 71 247  
Asset dispositions (44) (12)  
Restructuring and transaction costs 51    
Earnings (loss) from continuing operations before income taxes (450) (116)  
Income tax expense (benefit) (106) 1  
Net earnings (loss) from continuing operations (344) (117)  
Property and equipment, net 9,926 10,538  
Capital expenditures, including acquisitions 481 612  
United States [Member] | Operating Segments [Member] | Continuing Operations [Member]      
Segment Reporting Information [Line Items]      
Total assets 13,513 13,477 [1]  
Canada [Member] | Operating Segments [Member]      
Segment Reporting Information [Line Items]      
Depreciation, depletion and amortization 79 94  
Interest expense 15 148  
Restructuring and transaction costs 3    
Earnings (loss) from continuing operations before income taxes 23 (129)  
Income tax expense (benefit) (4) (35)  
Net earnings (loss) from continuing operations 27 (94)  
Property and equipment, net 3,938 4,186  
Capital expenditures, including acquisitions 49 89  
Canada [Member] | Operating Segments [Member] | Continuing Operations [Member]      
Segment Reporting Information [Line Items]      
Total assets $ 4,564 $ 5,271 [1]  
[1] Total assets in the table above do not include assets held for sale related to Devon’s discontinued operations, which totaled $10.6 billion on March 31, 2018. Additional information about Devon’s discontinued operations can be found in Note 19.
v3.19.1
Segment Information (Schedule of Revenue from Contracts with Customers Disaggregated Based on Type of Good) (Details) - USD ($)
$ in Millions
3 Months Ended
Mar. 31, 2019
Mar. 31, 2018
Disaggregation Of Revenue [Line Items]    
Total revenues from contracts with customers $ 791 $ 879
Oil, gas and NGL derivatives (709) (41)
Upstream revenues 710 1,319
Total revenues 1,501 2,198
Operating Segments [Member] | U.S. [Member]    
Disaggregation Of Revenue [Line Items]    
Oil, gas and NGL derivatives (605) (113)
Upstream revenues 463 1,017
Total revenues 1,228 1,879
Operating Segments [Member] | Canada [Member]    
Disaggregation Of Revenue [Line Items]    
Oil, gas and NGL derivatives (104) 72
Upstream revenues 247 302
Total revenues 273 319
Oil, Gas and NGL Sales [Member]    
Disaggregation Of Revenue [Line Items]    
Total revenues from contracts with customers 1,419 1,360
Oil, Gas and NGL Sales [Member] | Oil [Member]    
Disaggregation Of Revenue [Line Items]    
Total revenues from contracts with customers 1,012 907
Oil, Gas and NGL Sales [Member] | Gas [Member]    
Disaggregation Of Revenue [Line Items]    
Total revenues from contracts with customers 233 255
Oil, Gas and NGL Sales [Member] | NGL [Member]    
Disaggregation Of Revenue [Line Items]    
Total revenues from contracts with customers 174 198
Oil, Gas and NGL Sales [Member] | Operating Segments [Member] | U.S. [Member]    
Disaggregation Of Revenue [Line Items]    
Total revenues from contracts with customers 1,068 1,130
Oil, Gas and NGL Sales [Member] | Operating Segments [Member] | Canada [Member]    
Disaggregation Of Revenue [Line Items]    
Total revenues from contracts with customers 351 230
Oil, Gas and NGL Sales [Member] | Operating Segments [Member] | Oil [Member] | U.S. [Member]    
Disaggregation Of Revenue [Line Items]    
Total revenues from contracts with customers 661 677
Oil, Gas and NGL Sales [Member] | Operating Segments [Member] | Oil [Member] | Canada [Member]    
Disaggregation Of Revenue [Line Items]    
Total revenues from contracts with customers 351 230
Oil, Gas and NGL Sales [Member] | Operating Segments [Member] | Gas [Member] | U.S. [Member]    
Disaggregation Of Revenue [Line Items]    
Total revenues from contracts with customers 233 255
Oil, Gas and NGL Sales [Member] | Operating Segments [Member] | NGL [Member] | U.S. [Member]    
Disaggregation Of Revenue [Line Items]    
Total revenues from contracts with customers 174 198
Marketing Revenues [Member]    
Disaggregation Of Revenue [Line Items]    
Total revenues from contracts with customers 791 879
Marketing Revenues [Member] | Oil [Member]    
Disaggregation Of Revenue [Line Items]    
Total revenues from contracts with customers 382 548
Marketing Revenues [Member] | Gas [Member]    
Disaggregation Of Revenue [Line Items]    
Total revenues from contracts with customers 218 155
Marketing Revenues [Member] | NGL [Member]    
Disaggregation Of Revenue [Line Items]    
Total revenues from contracts with customers 191 176
Marketing Revenues [Member] | Operating Segments [Member] | U.S. [Member]    
Disaggregation Of Revenue [Line Items]    
Total revenues from contracts with customers 765 862
Marketing Revenues [Member] | Operating Segments [Member] | Canada [Member]    
Disaggregation Of Revenue [Line Items]    
Total revenues from contracts with customers 26 17
Marketing Revenues [Member] | Operating Segments [Member] | Oil [Member] | U.S. [Member]    
Disaggregation Of Revenue [Line Items]    
Total revenues from contracts with customers 356 531
Marketing Revenues [Member] | Operating Segments [Member] | Oil [Member] | Canada [Member]    
Disaggregation Of Revenue [Line Items]    
Total revenues from contracts with customers 26 17
Marketing Revenues [Member] | Operating Segments [Member] | Gas [Member] | U.S. [Member]    
Disaggregation Of Revenue [Line Items]    
Total revenues from contracts with customers 218 155
Marketing Revenues [Member] | Operating Segments [Member] | NGL [Member] | U.S. [Member]    
Disaggregation Of Revenue [Line Items]    
Total revenues from contracts with customers $ 191 $ 176
v3.19.1
Segment Information (Schedule of Selected Financial Information for Reporting Segments) (Parenthetical) (Details) - USD ($)
$ in Millions
Dec. 31, 2018
Mar. 31, 2018
Segment Reporting [Abstract]    
Total assets related to discontinued operations $ 197 $ 10,600