Index
Devon Energy First-Quarter 2024
Supplemental Tables
Index
Financial Statements
Statements of Earnings and Supplemental Information 1
Balance Sheets 2
Statements of Cash Flows 3
Operating Information
Production 4
Capital Expenditures and Supplemental Information 5
Realized Pricing 6
Asset Margins 7
Non-GAAP Measures
Core Earnings 8
EBITDAX 9
Other Non-GAAP Measures 10
1) Statements of Earnings
CONSOLIDATED STATEMENTS OF EARNINGS
(in millions, except per share amounts) 2024 2023
Quarter 1 Quarter 4 Quarter 3 Quarter 2 Quarter 1
Oil, gas and NGL sales $ 2,629 $ 2,737 $ 2,882 $ 2,493 $ 2,679
Oil, gas and NGL derivatives (1) (145) 324 (194) (76) 64
Marketing and midstream revenues 1,112 1,084 1,148 1,037 1,080
Total revenues 3,596 4,145 3,836 3,454 3,823
Production expenses (2) 751 759 757 719 693
Exploration expenses 9 4 3 10 3
Marketing and midstream expenses 1,133 1,093 1,160 1,051 1,105
Depreciation, depletion and amortization 722 650 651 638 615
Asset dispositions 1 11 -0 (41) -0
General and administrative expenses 114 111 99 92 106
Financing costs, net (3) 76 77 81 78 72
Other, net 22 10 13 10 5
Total expenses 2,828 2,715 2,764 2,557 2,599
Earnings before income taxes 768 1,430 1,072 897 1,224
Income tax expense (4) 159 269 152 199 221
Net earnings 609 1,161 920 698 1,003
Net earnings attributable to noncontrolling interests 13 9 10 8 8
Net earnings attributable to Devon $ 596 $ 1,152 $ 910 $ 690 $ 995
Net earnings per share:
Basic net earnings per share $ 0.95 $ 1.81 $ 1.43 $ 1.08 $ 1.53
Diluted net earnings per share $ 0.94 $ 1.81 $ 1.42 $ 1.07 $ 1.53
Weighted average common shares outstanding:
Basic 629 635 637 638 645
Diluted 632 638 639 639 647
SUPPLEMENTAL INFORMATION FOR CONSOLIDATED STATEMENTS OF EARNINGS
(1) OIL, GAS AND NGL DERIVATIVES
(in millions) 2024 2023
Quarter 1 Quarter 4 Quarter 3 Quarter 2 Quarter 1
Derivative cash settlements $ 24 $ 8 $ (11) $ 37 $ 13
Derivative valuation changes (169) 316 (183) (113) 51
Oil, gas and NGL derivatives $ (145) $ 324 $ (194) $ (76) $ 64
(2) PRODUCTION EXPENSES
(in millions) 2024 2023
Quarter 1 Quarter 4 Quarter 3 Quarter 2 Quarter 1
Lease operating expense $ 380 $ 381 $ 367 $ 353 $ 327
Gathering, processing & transportation 180 181 178 177 166
Production taxes 175 182 191 165 175
Property taxes 16 15 21 24 25
Production expenses $ 751 $ 759 $ 757 $ 719 $ 693
(3) FINANCING COSTS, NET
(in millions) 2024 2023
Quarter 1 Quarter 4 Quarter 3 Quarter 2 Quarter 1
Interest based on outstanding debt $ 87 $ 87 $ 93 $ 96 $ 93
Interest income (13) (12) (11) (15) (17)
Other 2 2 (1) (3) (4)
Financing costs, net $ 76 $ 77 $ 81 $ 78 $ 72
(4) INCOME TAX EXPENSE
(in millions) 2024 2023
Quarter 1 Quarter 4 Quarter 3 Quarter 2 Quarter 1
Current expense $ 119 $ 105 $ 139 $ 80 $ 141
Deferred expense 40 164 13 119 80
Income tax expense $ 159 $ 269 $ 152 $ 199 $ 221
Supp. Info. for Earnings
SUPPLEMENTAL INFORMATION FOR CONSOLIDATED STATEMENTS OF EARNINGS
(1) OIL, GAS AND NGL DERIVATIVES
(in millions) 2023 2022
Quarter 4 Quarter 3 Quarter 2 Quarter 1 Quarter 4
Derivative cash settlements $ 7 $ (11) $ 37 $ 13 $ (177)
Derivative valuation changes 95 (183) (113)
Riddel, Lindsay: Riddel, Lindsay: 		51 124
Oil, gas and NGL derivatives $ 102 $ (194) $ (76) $ 64 $ (53)
(2) PRODUCTION EXPENSES
(in millions) 2023 2022
Quarter 4 Quarter 3 Quarter 2 Quarter 1 Quarter 4
Lease operating expense $ 190 $ 367 $ 353 $ 327 $ 308
Gathering, processing & transportation 146 178 177 166 178
Production taxes 279 191 165 175 210
Property taxes 26 21 24 25 19
Riddel, Lindsay: Riddel, Lindsay:
Production expenses $ 641 $ 757 $ 719 $ 693 $ 715
(3) FINANCING COSTS, NET
(in millions) 2023 2022
Quarter 4 Quarter 3 Quarter 2 Quarter 1 Quarter 4
Interest based on outstanding debt $ 29 $ 93 $ 96 $ 93 $ 93
Riddel, Lindsay: Riddel, Lindsay:
Interest income (6) (11) (15) (17) (16)
Other 2 (1) (3) (4) (4)
Financing costs, net $ 25 $ 81 $ 78 $ 72 $ 73
(4) INCOME TAX EXPENSE
(in millions) 2023 2022
Quarter 4 Quarter 3 Quarter 2 Quarter 1 Quarter 4
Current expense $ 77 $ 139 $ 80
Riddel, Lindsay: Riddel, Lindsay: 		$ 141
Riddel, Lindsay: Riddel, Lindsay: 		$ 84
Deferred expense 43 13 119 80 265
Income tax expense $ 120 $ 152 $ 199
Riddel, Lindsay: Riddel, Lindsay:
Riddel, Lindsay: Riddel, Lindsay:
Riddel, Lindsay: Riddel, Lindsay:
Riddel, Lindsay: Riddel, Lindsay: 		$ 221 $ 349
2) Balance Sheets
CONSOLIDATED BALANCE SHEETS
(in millions) 2024 2023
Quarter 1 Quarter 4 Quarter 3 Quarter 2 Quarter 1
Current assets:
Cash, cash equivalents and restricted cash $ 1,149 $ 875 $ 761 $ 488 $ 887
Accounts receivable 1,670 1,573 1,853 1,519 1,615
Inventory 234 249 233 201 212
Other current assets 345 460 365 397 475
Total current assets 3,398 3,157 3,212 2,605 3,189
Oil and gas property and equipment, based on successful efforts accounting, net 18,033 17,825 17,563 17,317 16,932
Other property and equipment, net 1,551 1,503 1,468 1,446 1,583
Total property and equipment, net 19,584 19,328 19,031 18,763 18,515
Goodwill 753 753 753 753 753
Right-of-use assets 276 267 261 266 219
Investments 713 666 671 675 469
Other long-term assets 254 319 313 293 275
Total assets $ 24,978 $ 24,490 $ 24,241 $ 23,355 $ 23,420
Current liabilities:
Accounts payable $ 879 $ 760 $ 812 $ 843 $ 935
Revenues and royalties payable 1,268 1,222 1,434 1,199 1,266
Short-term debt 479 483 487 244 247
Income tax payable 189 67 58 1 154
Other current liabilities 451 417 539 382 329
Total current liabilities 3,266 2,949 3,330 2,669 2,931
Long-term debt 5,668 5,672 5,675 6,169 6,175
Lease liabilities 301 295 290 299 256
Asset retirement obligations 683 643 641 548 546
Other long-term liabilities 841 876 850 858 866
Deferred income taxes 1,878 1,838 1,676 1,662 1,543
Stockholders' equity:
Common stock 63 64 64 64 64
Additional paid-in capital 5,718 5,939 6,153 6,131 6,344
Retained earnings 6,509 6,195 5,535 4,940 4,712
Accumulated other comprehensive loss (123) (124) (113) (114) (115)
Treasury stock - (13) - - (28)
Total stockholders' equity attributable to Devon 12,167 12,061 11,639 11,021 10,977
Noncontrolling interests 174 156 140 129 126
Total equity 12,341 12,217 11,779 11,150 11,103
Total liabilities and equity $ 24,978 $ 24,490 $ 24,241 $ 23,355 $ 23,420
3) Statements of Cash Flows
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in millions) 2024 2023
Quarter 1 Quarter 4 Quarter 3 Quarter 2 Quarter 1
Cash flows from operating activities:
Net earnings $ 609 $ 1,161 $ 920 $ 698 $ 1,003
Adjustments to reconcile net earnings to net cash from operating activities:
Depreciation, depletion and amortization 722 650 651 638 615
Leasehold impairments - 1 1 3 -
Accretion (amortization) of liabilities - 1 (2) (8) (7)
Total (gains) losses on commodity derivatives 145 (324) 194 76 (64)
Cash settlements on commodity derivatives 24 8 (11) 37 13
(Gains) losses on asset dispositions 1 11 - (41) -
Deferred income tax expense 40 164 13 119 80
Share-based compensation 24 23 22 25 23
Other 3 (3) (2) (2) 2
Changes in assets and liabilities, net 170 45 (61) (140) 12
Net cash from operating activities 1,738 1,737 1,725 1,405 1,677
Cash flows from investing activities:
Capital expenditures (894) (910) (882) (1,079) (1,012)
Acquisitions of property and equipment (8) (10) (23) (18) (13)
Divestitures of property and equipment 17 3 1 1 21
Distributions from investments 11 8 7 9 8
Contributions to investments and other (47) (1) - (15) (37)
Net cash from investing activities (921) (910) (897) (1,102) (1,033)
Cash flows from financing activities:
Repayments of long-term debt - - (242) - -
Repurchases of common stock (205) (234) - (228) (517)
Dividends paid on common stock (299) (488) (312) (462) (596)
Contributions from noncontrolling interests 12 19 10 8 -
Distributions to noncontrolling interests (7) (12) (9) (13) (11)
Shares exchanged for tax withholdings and other (42) (1) - (9) (87)
Net cash from financing activities (541) (716) (553) (704) (1,211)
Effect of exchange rate changes on cash (2) 3 (2) 2 -
Net change in cash, cash equivalents and restricted cash 274 114 273 (399) (567)
Cash, cash equivalents and restricted cash at beginning of period 875 761 488 887 1,454
Cash, cash equivalents and restricted cash at end of period $ 1,149 $ 875 $ 761 $ 488 $ 887
Reconciliation of cash, cash equivalents and restricted cash:
Cash and cash equivalents $ 1,126 $ 853 $ 654 $ 372 $ 761
Restricted cash 23 22 107 116 126
Total cash, cash equivalents and restricted cash $ 1,149 $ 875 $ 761 $ 488 $ 887
4) Production
PRODUCTION
2024 2023
Quarter 1 Quarter 4 Quarter 3 Quarter 2 Quarter 1
Oil (MBbls/d)
Delaware Basin 208 208 215 209 211
Eagle Ford 43 43 40 45 40
Anadarko Basin 11 13 14 15 15
Williston Basin 40 36 35 36 36
Powder River Basin 13 13 13 14 14
Other 4 4 4 4 4
Total 319 317 321 323 320
Natural gas liquids (MBbls/d)
Delaware Basin 113 112 112 105 97
Eagle Ford 14 15 15 16 15
Anadarko Basin 26 29 27 31 26
Williston Basin 10 10 9 9 8
Powder River Basin 2 3 2 2 2
Other -0 - 0 1 1 1.0
Total 165 169 166 164 149
Gas (MMcf/d)
Delaware Basin 695 673 680 636 640
Eagle Ford 79 81 78 86 82
Anadarko Basin 223 225 235 254 237
Williston Basin 63 61 58 59 54
Powder River Basin 18 20 18 18 16
Other 1 1 1 1 1
Total 1,079 1,061 1,070 1,054 1,030
Total oil equivalent (MBoe/d)
Delaware Basin 437 433 440 420 415
Eagle Ford 70 72 68 74 68
Anadarko Basin 74 79 80 89 81
Williston Basin 61 55 54 56 53
Powder River Basin 18 19 19 19 19
Other 4 4 4 4 5
Total 664 662 665 662 641
5) Capital Expenditures
CAPITAL EXPENDITURES
(in millions) 2024 2023
Quarter 1 Quarter 4 Quarter 3 Quarter 2 Quarter 1
Delaware Basin $ 555 $ 506 $ 503 $ 583 $ 572
Eagle Ford 156 194 198 179 188
Anadarko Basin 59 51 13 67 66
Williston Basin 27 55 69 89 73
Powder River Basin 43 55 45 39 32
Other 2 3 2 1 2
Total upstream capital $ 842 $ 864 $ 830 $ 958 $ 933
Carbon capital 32 31 25 30 27
Midstream and Corporate 63 45 41 30 28
Acquisitions 8 11 23 18 13
Total capital $ 945 $ 951 $ 919 $ 1,036 $ 1,001
GROSS OPERATED SPUDS
2024 2023
Quarter 1 Quarter 4 Quarter 3 Quarter 2 Quarter 1
Delaware Basin 76 60 64 65 60
Eagle Ford 30 26 28 18 23
Anadarko Basin 4 17 10 9 19
Williston Basin 1 -0 7 8 6
Powder River Basin 3 5 4 3 3
Total 114 108 113 103 111
GROSS OPERATED WELLS TIED-IN
2024 2023
Quarter 1 Quarter 4 Quarter 3 Quarter 2 Quarter 1
Delaware Basin 59 62 59 76 42
Eagle Ford 26 24 13 29 26
Anadarko Basin 5 4 -0 16 7
Williston Basin 10 6 6 8 17
Powder River Basin 2 4 3 2 5
Total 102 100 81 131 97
NET OPERATED WELLS TIED-IN
2024 2023
Quarter 1 Quarter 4 Quarter 3 Quarter 2 Quarter 1
Delaware Basin 50 47 49 61 40
Eagle Ford 21 20 12 25 18
Anadarko Basin 2 1 -0 7 3
Williston Basin 10 3 4 6 15
Powder River Basin 2 4 3 2 4
Total 85 75 68 101 80
AVERAGE LATERAL LENGTH
(based on wells tied-in) 2024 2023
Quarter 1 Quarter 4 Quarter 3 Quarter 2 Quarter 1
Delaware Basin 10,300' 10,300' 9,700' 10,100' 9,900'
Eagle Ford 6,700' 7,900' 5,000' 6,200' 6,700'
Anadarko Basin 10,000' 12,500' -0 9,100' 9,300'
Williston Basin 9,600' 12,300' 12,300' 10,000' 11,500'
Powder River Basin 9,600' 9,600' 13,300' 15,000' 10,700'
Total 9,300' 9,900' 9,300' 9,200' 9,300'
6) Realized Pricing
REALIZED PRICING
BENCHMARK PRICES
(average prices) 2024 2023
Quarter 1 Quarter 4 Quarter 3 Quarter 2 Quarter 1
Oil ($/Bbl) - West Texas Intermediate (Cushing) $ 77.01 $ 78.48 $ 82.06 $ 73.76 $ 76.17
Natural Gas ($/Mcf) - Henry Hub $ 2.25 $ 2.88 $ 2.54 $ 2.09 $ 3.44
NGL ($/Bbl) - Mont Belvieu Blended $ 27.51 $ 25.52 $ 26.62 $ 23.99 $ 29.48
REALIZED PRICES
2024 2023
Quarter 1 Quarter 4 Quarter 3 Quarter 2 Quarter 1
Oil (Per Bbl)
Delaware Basin $ 76.23 $ 77.75 $ 80.72 $ 71.86 $ 74.43
Eagle Ford 76.51 78.51 80.85 72.36 74.06
Anadarko Basin 74.91 77.09 79.86 71.52 74.14
Williston Basin 71.13 74.26 79.50 70.80 74.09
Powder River Basin 71.93 74.58 78.51 70.75 74.30
Realized price without hedges 75.40 77.32 80.48 71.74 74.32
Cash settlements (0.25) (0.34) (1) - 0 (0.10)
Realized price, including cash settlements $ 75.15 $ 76.98 $ 79.81 $ 71.74 $ 74.22
Natural gas liquids (Per Bbl)
Delaware Basin $ 20.55 $ 19.93 $ 20.76 $ 18.07 $ 23.72
Eagle Ford 23.67 22.67 23.70 20.22 26.18
Anadarko Basin 24.77 21.44 23.37 19.42 27.88
Williston Basin 6.27 2.95 4.09 2.52 8.97
Powder River Basin 32.91 28.80 29.63 24.52 35.72
Realized price without hedges 20.81 19.67 20.72 17.79 24.12
Cash settlements (0.08) -0 -0 -0 -0
Realized price, including cash settlements $ 20.73 $ 19.67 $ 20.72 $ 17.79 $ 24.12
Gas (Per Mcf)
Delaware Basin $ 1.19 $ 1.76 $ 1.94 $ 1.18 $ 1.90
Eagle Ford 1.89 2.44 2.31 1.80 2.99
Anadarko Basin 1.92 2.38 2.17 1.72 3.14
Williston Basin N/M N/M N/M N/M 1.57
Powder River Basin 2.29 2.52 2.53 2.41 4.25
Realized price without hedges 1.30 1.83 1.92 1.27 2.29
Cash settlements 0.32 0.19 0.09 0.39 0.18
Realized price, including cash settlements $ 1.62 $ 2.02 $ 2.01 $ 1.66 $ 2.47
Total oil equivalent (Per Boe)
Delaware Basin $ 43.55 $ 45.38 $ 47.68 $ 42.05 $ 46.35
Eagle Ford 53.81 54.64 55.71 49.69 52.81
Anadarko Basin 25.48 26.96 27.88 24.04 32.16
Williston Basin 47.37 47.77 52.64 45.94 52.94
Powder River Basin 57.60 57.99 62.21 56.33 63.01
Realized price without hedges 43.52 44.93 47.10 41.39 46.44
Cash settlements 0.39 0.14 (0.18) 0.61 0.22
Realized price, including cash settlements $ 43.91 $ 45.07 $ 46.92 $ 42.00 $ 46.66
7) Asset Margin
ASSET MARGINS
BENCHMARK PRICES
(average prices) 2024 2023
Quarter 1 Quarter 4 Quarter 3 Quarter 2 Quarter 1
Oil ($/Bbl) - West Texas Intermediate (Cushing) $ 77.01 $ 78.48 $ 82.06 $ 73.76 $ 76.17
Natural Gas ($/Mcf) - Henry Hub $ 2.25 $ 2.88 $ 2.54 $ 2.09 $ 3.44
NGL ($/Bbl) - Mont Belvieu Blended $ 27.51 $ 25.52 $ 26.62 $ 23.99 $ 29.48
PER-UNIT CASH MARGIN BY ASSET (per Boe)
2024 2023
Quarter 1 Quarter 4 Quarter 3 Quarter 2 Quarter 1
Delaware Basin
Realized price $ 43.55 $ 45.38 $ 47.68 $ 42.05 $ 46.35
Lease operating expenses (5.54) (5.46) (5.03) (4.96) (4.58)
Gathering, processing & transportation (2.79) (2.75) (2.63) (2.63) (2.63)
Production & property taxes (3.16) (3.24) (3.48) (3.18) (3.43)
Field-level cash margin $ 32.06 $ 33.93 $ 36.54 $ 31.28 $ 35.71
Eagle Ford
Realized price $ 53.81 $ 54.64 $ 55.71 $ 49.69 $ 52.81
Lease operating expenses (7.59) (7.05) (7.52) (6.18) (6.32)
Gathering, processing & transportation (1.67) (1.62) (1.63) (1.67) (1.49)
Production & property taxes (2.73) (2.95) (3.18) (2.97) (3.25)
Field-level cash margin $ 41.82 $ 43.02 $ 43.38 $ 38.87 $ 41.75
Anadarko Basin
Realized price $ 25.48 $ 26.96 $ 27.88 $ 24.04 $ 32.16
Lease operating expenses (3.33) (3.26) (3.43) (3.13) (3.41)
Gathering, processing & transportation (6.27) (5.98) (6.11) (5.97) (5.93)
Production & property taxes (1.24) (1.40) (1.36) (1.22) (1.73)
Field-level cash margin $ 14.64 $ 16.32 $ 16.98 $ 13.72 $ 21.09
Williston Basin
Realized price $ 47.37 $ 47.77 $ 52.64 $ 45.94 $ 52.94
Lease operating expenses (10.88) (13.07) (13.04) (13.43) (13.25)
Gathering, processing & transportation (2.03) (2.34) (2.31) (2.29) (2.19)
Production & property taxes (4.72) (4.78) (5.13) (4.68) (4.85)
Field-level cash margin $ 29.74 $ 27.58 $ 32.16 $ 25.54 $ 32.65
Powder River Basin
Realized price $ 57.60 $ 57.99 $ 62.21 $ 56.33 $ 63.01
Lease operating expenses (11.66) (8.65) (8.45) (10.03) (11.07)
Gathering, processing & transportation (3.03) (3.17) (3.02) (2.97) (2.73)
Production & property taxes (6.91) (6.75) (7.45) (6.79) (7.78)
Field-level cash margin $ 36.00 $ 39.42 $ 43.29 $ 36.54 $ 41.43
Other
Realized price $ 78.46 $ 78.46 $ 74.50 $ 65.42 $ 66.65
Lease operating expenses (11.75) (11.75) (28.81) (28.06) (24.35)
Gathering, processing & transportation (0.11) (0.11) (0.21) (0.30) (0.47)
Production & property taxes (4.83) (4.83) (5.26) (5.15) (6.67)
Field-level cash margin $ 61.78 $ 61.78 $ 40.21 $ 31.90 $ 35.16
Devon - Total
Realized price $ 43.52 $ 44.93 $ 47.10 $ 41.39 $ 46.44
Lease operating expenses (6.29) (6.25) (6.00) (5.86) (5.67)
Gathering, processing & transportation (2.98) (2.97) (2.91) (2.94) (2.88)
Production & property taxes (3.16) (3.24) (3.46) (3.14) (3.47)
Field-level cash margin $ 31.09 $ 32.47 $ 34.73 $ 29.45 $ 34.42
8) Core Earnings
CORE EARNINGS
Devon's reported net earnings include items of income and expense that are typically excluded by securities analysts in their published estimates of the company's financial results. Accordingly, the company also uses the measures of core earnings and core earnings per share attributable to Devon. Devon believes these non-GAAP measures facilitate comparisons of its performance to earnings estimates published by securities analysts. Devon also believes these non-GAAP measures can facilitate comparisons of its performance between periods and to the performance of its peers. The following table summarizes the effects of these items on first-quarter 2024 earnings.
Quarter Ended March 31, 2024
Before-tax After-tax After NCI Per Diluted Share
Total
Earnings (GAAP) $ 768 $ 609 $ 596 $ 0.94
Adjustments:
Asset dispositions 1 1 1 -
Deferred tax asset valuation allowance - (1) (1) -
Fair value changes in financial instruments 172 134 134 0.22
Core earnings (Non-GAAP) $ 941 $ 743 $ 730 $ 1.16
9) EBITDAX
EBITDAX
Devon believes EBITDAX provides information useful in assessing operating and financial performance across periods. Devon computes EBITDAX as net earnings before financing costs, net; income tax expense; exploration expenses; depreciation, depletion and amortization; asset disposition gains and losses; non-cash share-based compensation; non-cash valuation changes for derivatives and financial instruments; accretion on discounted liabilities; and other items not related to normal operations. EBITDAX as defined by Devon may not be comparable to similarly titled measures used by other companies.
FY '22 Q1 '24 Q4 '23 Q3 '23 Q2 '23 TTM Q1 '23
Net earnings (GAAP) $ 920 $ 609 $ 1,161 $ 920 $ 698 $ 3,388 $ 1,003
Net (earnings) loss from discontinued operations, net of tax ERROR:#REF! -0 -0 -0 -0 $ - 0 - 0
Net earnings (loss) from continuing operations (GAAP) ERROR:#REF! ERROR:#REF! ERROR:#REF! ERROR:#REF! ERROR:#REF! ERROR:#REF!
Financing costs, net 152 76 77 81 78 312 72
Income tax expense 3 159 269 152 199 779 221
Exploration expenses 651 9 4 3 10 26 3
Depreciation, depletion and amortization - 0 722 650 651 638 2,661 615
Asset impairments ERROR:#REF! ERROR:#REF! ERROR:#REF! ERROR:#REF! ERROR:#REF! ERROR:#REF! ERROR:#REF!
Asset dispositions - 0 1 11 -0 (41) (29) -0
Share-based compensation 93 24 22 22 25 93 23
Derivative & financial instrument non-cash val. changes (70) 169 (316) 183 113 149 (51)
Accretion on discounted liabilities and other 13 22 10 13 10 55 5
EBITDAX (Non-GAAP) ERROR:#REF! $ 1,791 $ 1,888 $ 2,025 $ 1,730 $ 7,434 $ 1,891
10) Other Non-GAAP
NET DEBT
Devon defines net debt as debt (includes short-term and long-term debt) less cash, cash equivalents and restricted cash. Devon believes that netting these sources of cash against debt provides a clearer picture of the future demands on cash from Devon to repay debt.
Mar. 31, 2024 Dec. 31, 2023 Sep. 30, 2023 Jun. 30, 2023 Mar. 31, 2023
Total debt (GAAP) $ 6,147 $ 6,155 $ 6,162 $ 6,413 $ 6,422
Less:
Cash, cash equivalents and restricted cash (1,149) (875) (761) (488) (887)
Net debt (Non-GAAP) $ 4,998 $ 5,280 $ 5,401 $ 5,925 $ 5,535
NET DEBT-TO-EBITDAX
Devon defines net debt-to-EBITDAX as net debt divided by an annualized EBITDAX measure. Devon believes this ratio provides information useful to investors in assessing the company's credit position and debt leverage.
Mar. 31, 2024 Dec. 31, 2023 Sep. 30, 2023 Jun. 30, 2023 Mar. 31, 2023
Net debt (Non-GAAP) $ 4,998 $ 5,280 $ 5,401 $ 5,925 $ 5,535
EBITDAX (Non-GAAP) (1) $ 7,434 $ 7,534 $ 7,776 $ 8,239 $ 9,342
Net debt-to-EBITDAX (Non-GAAP) 0.7 0.7 0.7 0.7 0.6
FREE CASH FLOW
Devon defines free cash flow as total operating cash flow less capital expenditures. Devon believes free cash flow provides a useful measure of available cash generated by operating activities for other investing and financing activities.
Quarter Ended Mar. 31, 2024 Quarter Ended Dec. 31, 2023 Quarter Ended Sep. 30, 2023 Quarter Ended Jun. 30, 2023 Quarter Ended Mar. 31, 2023
Total operating cash flow (GAAP) $ 1,738 $ 1,737 $ 1,725 $ 1,405 $ 1,677
Less capital expenditures: (894) (910) (822) (1,079) (1,012)
Free cash flow (Non-GAAP) $ 844 $ 827 $ 843 $ 326 $ 665
ADJUSTED FREE CASH FLOW
Devon is committed to returning approximately 70% of our adjusted free cash flow to shareholders through a fixed dividend, variable dividend and share repurchases. Adjusted free cash flow is calculated as total operating cash flow before balance sheet changes less accrued capital expenditures.
Quarter Ended Mar. 31, 2024
Total operating cash flow (GAAP) $ 1,738
Changes in assets and liabilities (170)
Cash flow before balance sheet changes (Non-GAAP) 1,568
Capital expenditures (Accrued) (945)
Adjusted free cash flow (Non-GAAP) $ 623
REINVESTMENT RATE
Devon defines reinvestment rate as accrued capital expenditures divided by operating cash flow. Devon believes this measure provides useful information to our investors as an indicator of the capital demands of our business relative to the cash flow generated from normal business operations.
Quarter Ended Mar. 31, 2024 Quarter Ended Dec. 31, 2023 Quarter Ended Sep. 30, 2023 Quarter Ended Jun. 30, 2023 Quarter Ended Mar. 31, 2023
Capital expenditures (Accrued) $ 945 $ 951 $ 919 $ 1,036 $ 1,001
Operating cash flow $ 1,738 $ 1,737 $ 1,725 $ 1,405 $ 1,677
Reinvestment rate (Non-GAAP) 54% 55% 53% 74% 60%
WPX Asset Margin
BENCHMARK PRICES
(average prices) 2020 2019
Quarter 4 Quarter 3 Quarter 2 Quarter 1 Quarter 4
Oil ($/Bbl) - West Texas Intermediate (Cushing) $ 42.65 $ 40.86 $ 28.42 $ 46.44 $ 57.02 $ 32.56
Natural Gas ($/Mcf) - Henry Hub $ 2.67 $ 1.98 $ 1.71 $ 1.95 $ 2.50
NGL ($/Bbl) - Mont Belvieu Blended $ 20.01 $ 16.69 $ 12.57 $ 14.39 $ 18.69 $ 41.37
PER-UNIT CASH MARGIN BY ASSET (per Boe)
2020 2019
Quarter 4 Quarter 3 Quarter 2 Quarter 1 Quarter 4 3Q 2019
Delaware Basin
Realized price $ 27.28 $ 25.20 $ 15.19 $ 26.14 $ 33.88 ERROR:#REF!
Lease operating expenses 4.46 4.93 5.06 5.53 5.98 $ 6.43
Gathering, processing & transportation 3.80 3.49 3.67 3.78 3.21 $ 3.11
Taxes other than Income 0.83 1.04 1.31 1.91 2.23 $ 2.02
Field-level cash margin $ 18.19 $ 15.74 $ 5.15 $ 14.92 $ 22.46 ERROR:#REF!
Williston Basin
Realized price $ 27.90 $ 26.76 $ 13.11 $ 30.73 $ 39.63 ERROR:#REF!
Lease operating expenses 4.52 4.34 4.50 5.70 5.68 $ 5.51
Gathering, processing & transportation 3.12 3.23 3.23 3.01 3.10 $ 3.08
Taxes other than Income 2.68 2.59 1.38 3.03 3.96 $ 4.01
Field-level cash margin $ 17.58 $ 16.60 $ 4.00 $ 18.99 $ 26.89 ERROR:#REF!
WPX - Total
Realized price $ 27.49 $ 25.71 $ 14.55 $ 27.99 $ 36.46 ERROR:#REF!
Lease operating expenses 4.48 4.73 4.89 5.60 5.85 $ 6.02
Gathering, processing & transportation 3.57 3.41 3.53 3.47 3.16 $ 3.10
Taxes other than Income 1.47 1.55 1.33 2.36 3.00 $ 2.90
Field-level cash margin $ 17.97 $ 16.02 $ 4.80 $ 16.56 $ 24.45 ERROR:#REF!
WPX Int.%
AVERAGE WORKING INTEREST
2020 2019
Quarter 4 Quarter 3 Quarter 2 Quarter 1 Quarter 4 3Q 2019
Delaware Basin 93% 97% 100% 87% 78% 90%
Williston Basin 58% 83% 94% 80% 66% 93%
Total 82% 89% 98% 84% 71% 92%
AVERAGE NRI
2020 2019
Quarter 4 Quarter 3 Quarter 2 Quarter 1 Quarter 4 3Q 2019
Delaware Basin 70% 75% 75% 66% 59% 69%
Williston Basin 45% 65% 74% 64% 52% 74%
Total 62% 70% 75% 65% 55% 72%
WPX Production
PRODUCTION
PRODUCTION TREND
2020 2019
Quarter 4 Quarter 3 Quarter 2 Quarter 1 Quarter 4 3Q 2019
Oil (MBbls/d)
Delaware Basin 84 71 77 60 48 47.2
Williston Basin 65 51 47 62 64 61.4
Total 149 122 124 122 112 108.6
Natural gas liquids (MBbls/d)
Delaware Basin 35 32 27 25 22 19.3
Williston Basin 11 9 8 9 8 7.7
Total 46 40 35 34 30 27
Gas (MMcf/d)
Delaware Basin 271 219 239 195 174 180.9
Williston Basin 66 51 48 49 50 46
Total 337 270 287 244 223 226.9
Total oil equivalent (MBoe/d)
Delaware Basin 164 139 144 117 99 96.7
Williston Basin 87 69 63 79 80 76.8
Total 251 208 207 197 179 173.4
WPX Prices
REALIZED PRICES
2020 2019
Quarter 4 Quarter 3 Quarter 2 Quarter 1 Quarter 4 3Q 2019
Oil (Per Bbl)
Delaware Basin $ 41.56 $ 39.81 $ 22.10 $ 43.14 $ 57.03 $ 55.96
Williston Basin 38.62 37.21 20.32 40.57 51.02 $ 52.35
Realized price without hedges 40.28 38.72 21.42 41.83 53.59 $ 53.92
Cash settlements 8.14 11.46 30.17 10.09 (0.43) $ (1.25)
Realized price, including cash settlements $ 48.42 $ 50.19 $ 51.59 $ 51.92 $ 53.16 $ 52.67
Natural gas liquids (Per Bbl)
Delaware Basin $ 15.63 $ 12.89 $ 8.61 $ 9.47 $ 14.07 $ 13.83
Williston Basin 6.98 5.35 0.58 2.98 4.72 $ 2.95
Realized price without hedges 13.56 11.22 6.74 7.73 11.53 $ 10.73
Cash settlements - 0 - 0 - 0 - 0 - 0
Realized price, including cash settlements $ 13.56 $ 11.22 $ 6.74 $ 7.73 $ 11.53 $ 10.73
Gas (Per Mcf)
Delaware Basin $ 1.63 $ 1.22 $ 1.06 $ 1.24 $ 1.79 $ 1.32
Williston Basin (2.31) (2.22) (2.74) (2.12) (2.35) $ (1.34)
Realized price without hedges 0.85 0.57 0.43 0.56 0.87 $ 0.77
Cash settlements (0.05) (0.20) (0.13) 0.20 0.67 $ 0.80
Realized price, including cash settlements $ 0.80 $ 0.37 $ 0.30 $ 0.76 $ 1.54 $ 1.57
Total oil equivalent (Per BOE)
Delaware Basin $ 27.28 $ 25.20 $ 15.19 $ 26.14 $ 33.88
Williston Basin 27.90 26.76 13.11 30.73 39.63
Realized price without hedges 27.49 25.71 14.55 27.99 36.46
Cash settlements 4.75 6.50 17.86 6.50 0.06
Realized price, including cash settlements $ 32.24 $ 32.21 $ 32.41 $ 34.49 $ 37.03
WPX Capex
UPSTREAM CAPITAL EXPENDITURES
(in millions) 2020 2019
Quarter 4 Quarter 3 Quarter 2 Quarter 1 Quarter 4
Delaware Basin $ 247 $ 186 $ 143 $ 191 $ 157
Williston Basin 36 60 34 115 110
Total Upstream Capital $ 283 $ 246 $ 177 $ 305 $ 267
GROSS OPERATED SPUDS
2020 2019
Quarter 4 Quarter 3 Quarter 2 Quarter 1 Quarter 4
Delaware Basin 24 23 28 33 21
Williston Basin 7 10 17 17 19
Total 31 33 45 50 40
GROSS OPERATED WELLS TIED-IN
2020 2019
Quarter 4 Quarter 3 Quarter 2 Quarter 1 Quarter 4
Delaware Basin 44 13 8 25 21
Williston Basin 20 16 4 17 25
Total 64 29 12 42 46
NET OPERATED WELLS TIED-IN
2020 2019
Quarter 4 Quarter 3 Quarter 2 Quarter 1 Quarter 4
Delaware Basin 31 10 6 17 12
Williston Basin 9 10 3 11 13
Total 40 20 9 27 25
AVERAGE LATERAL LENGTH
(based on wells tied-in) 2020 2019
Quarter 4 Quarter 3 Quarter 2 Quarter 1 Quarter 4
Delaware Basin 8,929' 9,342' 10,560' 8,237' 8,046'
Williston Basin 10,677' 11,880' 10,560' 10,871' 10,560'
Total 9,475' 10,742' 10,560' 9,303' 9,412'
Pro Forma
PRO FORMA KEY METRICS - Q4 2020
PRODUCTION
Q4 2020
Pro Forma Devon WPX
Oil (MBbls/d) 305 156 149
Natural gas liquids (MBbls/d) 126 80 46
Gas (MMcf/d) 921 584 337
Total oil equivalent (Mboe/d) 584 333
Moffat, Jacob: Moffat, Jacob: 		251
OTHER KEY METRICS
Q4 2020
($ millions, except Boe) Pro Forma Devon WPX
Oil, gas and NGL sales $ 1,421 $ 786 $ 635
Derivative cash settlements $ (7) $ (117) $ 110
LOE & GP&T per BOE $ 7.57 $ 7.21 $ 8.05
General & administrative expenses $ 144 $ 82 $ 62
Proved reserves (MMBoe) 1,434 752 682
PRODUCTION
FY 2020
Pro Forma Devon WPX
Oil (MBbls/d) 284 155 129
Natural gas liquids (MBbls/d) 117 78 39
Gas (MMcf/d) 888 603 285
Total oil equivalent (Mboe/d) 549 333 216
PRO FORMA KEY METRICS - FY 2020
FINANCIALS
FY 2020
($ millions, except Boe) Pro Forma Devon WPX
Oil, gas and NGL sales $ 4,597 $ 2,695 $ 1,902
Derivative cash settlements $ 1,005 $ 316 $ 689
LOE & GP&T (per Boe) $ 7.94 $ 7.66 $ 8.46
General & administrative expenses $ 544 $ 338 $ 206
EBITDAX $ 3,222 $ 1,591 $ 1,631
Operating cash flow $ 2,801 $ 1,464 $ 1,337
Cash capital expenditures (2,257) (1,153) (1,104)
Free cash flow $ 544 $ 311 $ 233
Total debt $ 7,555 $ 4,298 $ 3,257
Cash & cash equivalents (2,570) (2,237) (333)
Net Debt $ 4,985 $ 2,061 $ 2,924
RESERVES
FY 2020
Pro Forma Devon WPX
Proved reserves (MMBoe) 1,434 752 682
Proved oil reserves 676 282 394
Proved developed reserves (% of total) 76% 70%
Proved developed reserves adds (MMBoe) 416 104 312
Cost incurred ($MM) $ 3,842 $ 987 $ 2,855
VARIABLE DIVIDEND CALCULATION
Q4 2020
Pro Forma Devon WPX
Operating cash flow $ 773 $ 358 $ 415
Capital expenditures (Accrued) (510) (217) (293)
Adjusted free cash flow 263 141 122
Fixed quarterly dividend ($0.11/share) (42) (42) - 0
Excess free cash flow 221 99 122
50% Pay out (Board Discretion: Up to 50%) 50%
Total variable dividend $ 111
VARIABLE DIVIDEND CALCULATION
Q4 2020
(in millions) Pro Forma
Operating cash flow $ 773
Balance sheet changes 22
Cash from operations before balance sheet changes $ 795
Capital expenditures (Accrued) (486)
Adjusted free cash flow 309
Fixed quarterly dividend ($0.11/share) (42)
Excess free cash flow 267
50% Pay out (Board Discretion: Up to 50%) 50%
Total variable dividend $ 133
EBITDAX
(in millions) Q4 2020
Pro Forma Devon WPX
Net earnings (GAAP) $ 884 $ 1,003 $ (119)
Net (earnings) loss from discontinued operations, net of tax (4) - 0 (4)
Net earnings (loss) from continuing operations (GAAP) ERROR:#REF! ERROR:#REF!
Financing costs, net 120 72 48
Income tax expense 214 221 (7)
Exploration expenses 18 3 15
Depreciation, depletion and amortization 874 615 259
Asset impairments ERROR:#REF! ERROR:#REF! -0
Asset dispositions -0 -0 -0
Share-based compensation 33 23 10
Derivative & financial instrument non-cash val. changes 221 (51) 272
ERROR:#REF! ERROR:#REF! ERROR:#REF! 11
Accretion on discounted liabilities and other (17) 5 (22)
EBITDAX (Non-GAAP) $ 2,354 $ 1,891 $ 463
EBITDAX
(in millions) FY 2020
Pro Forma Devon WPX
Net earnings (GAAP) $ (3,739) $ (2,671) $ (1,068)
Net (earnings) loss from discontinued operations, net of tax 306 128 178
Net earnings (loss) from continuing operations (GAAP) $ - 0 0 ERROR:#REF!
Financing costs, net 463 270 193
Income tax expense (748) (547) (201)
Exploration expenses 283 167 116
Depreciation, depletion and amortization 2,285 1,300 985
Asset impairments 3,660 2,693 967
Asset dispositions (1) (1) -0
Share-based compensation 114 76 38
Derivative & financial instrument non-cash val. changes 527 161 366
ERROR:#REF! 90 49 41
Accretion on discounted liabilities and other (18) (34) 16
EBITDAX (Non-GAAP) $ 3,222 $ 1,591 $ 1,631
PRO FORMA NET DEBT
Q4 2020
(in millions) Pro Forma Devon WPX
Total debt $ 7,862 $ 4,298 $ 3,564
Cash &cash equivalents (2,593) (2,237) (356)
Net debt $ 5,269 $ 2,061 $ 3,208
PRO FORMA FREE CASH FLOW
Q4 2020
(in millions) Pro Forma Devon WPX
Operating cash flow $ 773 $ 358 $ 415
Cash capital expenditures (510) (217) (293)
Free cash flow $ 263 $ 141 $ 122

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Devon Energy Corporation published this content on 01 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 01 May 2024 20:14:27 UTC.