Devon Energy Third-Quarter 2023

Supplemental Tables

TABLE OF CONTENTS:

PAGE:

Consolidated Statements of Earnings

2

Supplemental Information for Consolidated Statements of Earnings

3

Consolidated Balance Sheets

4

Consolidated Statements of Cash Flows

5

Production

6

Capital Expenditures and Supplemental Information for Capital Expenditures

7

Realized Pricing

8

Asset Margins

9

Core Earnings and EBITDAX

10

Net Debt, Net Debt-to-EBITDAXand Free Cash Flow

11

Reinvestment Rate and Variable Dividend

12

1

CONSOLIDATED STATEMENTS OF EARNINGS

(in millions, except per share amounts)

2023

2022

Oil, gas and NGL sales

Quarter 3

Quarter 2

Quarter 1

Quarter 4

Quarter 3

$

2,882

$

2,493

$

2,679

$

3,139

$

3,668

Oil, gas and NGL derivatives (1)

(194)

(76)

64

(53)

248

Marketing and midstream revenues

1,148

1,037

1,080

1,213

1,516

Total revenues

5,432

3,836

3,454

3,823

4,299

Production expenses (2)

757

719

693

715

735

Exploration expenses

3

10

3

13

4

Marketing and midstream expenses

1,160

1,051

1,105

1,231

1,525

Depreciation, depletion and amortization

651

638

615

625

581

Asset dispositions

-

(41)

-

(29)

-

General and administrative expenses

99

92

106

122

95

Financing costs, net (3)

81

78

72

73

67

Other, net

13

10

5

(4)

(40)

Total expenses

2,764

2,557

2,599

2,746

2,967

Earnings before income taxes

2,465

1,072

897

1,224

1,553

Income tax expense (4)

152

199

221

349

565

Net earnings

920

698

1,003

1,204

1,900

Net earnings attributable to noncontrolling interests

10

8

8

3

7

Net earnings attributable to Devon

$

910

$

690

$

995

$

1,201

$

1,893

Net earnings per share:

Basic net earnings per share

$

1.43

$

1.08

$

1.53

$

1.84

$

2.89

Diluted net earnings per share

$

1.42

$

1.07

$

1.53

$

1.83

$

2.88

Weighted average common shares outstanding:

Basic

637

638

645

647

649

Diluted

639

639

647

649

651

2

SUPPLEMENTAL INFORMATION FOR CONSOLIDATED STATEMENTS OF EARNINGS

(1) OIL, GAS AND NGL DERIVATIVES

2023

2022

(in millions)

Derivative cash settlements

Quarter 3

Quarter 2

Quarter 1

Quarter 4

Quarter 3

$

(11)

$

37

$

13

$

(177)

$

(363)

Derivative valuation changes

(183)

(113)

51

124

611

Oil, gas and NGL derivatives

$

(194)

$

(76)

$

64

$

(53)

$

248

(2) PRODUCTION EXPENSES

2023

2022

(in millions)

Lease operating expense

Quarter 3

Quarter 2

Quarter 1

Quarter 4

Quarter 3

$

367

$

353

$

327

$

308

$

284

Gathering, processing & transportation

178

177

166

178

177

Production taxes

191

165

175

210

252

Property taxes

21

24

25

19

22

Production expenses

$

757

$

719

$

693

$

715

$

735

(3) FINANCING COSTS, NET

2023

2022

(in millions)

Interest based on outstanding debt

Quarter 3

Quarter 2

Quarter 1

Quarter 4

Quarter 3

$

93

$

96

$

93

$

93

$

92

Interest income

(11)

(15)

(17)

(16)

(19)

Other

(1)

(3)

(4)

(4)

(6)

Financing costs, net

$

81

$

78

$

72

$

73

$

67

(4) INCOME TAX EXPENSE

2023

2022

(in millions)

Current expense

Quarter 3

Quarter 2

Quarter 1

Quarter 4

Quarter 3

$

139

$

80

$

141

$

84

$

120

Deferred expense

13

119

80

265

445

Income tax expense

$

152

$

199

$

221

$

349

$

565

3

CONSOLIDATED BALANCE SHEETS

(in millions)

September 30,

December 31,

Current assets:

2023

2022

Cash, cash equivalents and restricted cash

$

761

$

1,454

Accounts receivable

1,853

1,767

Inventory

233

201

Other current assets

365

469

Total current assets

3,212

3,891

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

17,563

16,567

Other property and equipment, net

1,468

1,539

Total property and equipment, net

19,031

18,106

Goodwill

753

753

Right-of-use assets

261

224

Investments

671

440

Other long-term assets

313

307

Total assets

$

24,241

$

23,721

Current liabilities:

Accounts payable

$

812

$

859

Revenues and royalties payable

1,434

1,506

Short-term debt

487

251

Other current liabilities

597

489

Total current liabilities

3,330

3,105

Long-term debt

5,675

6,189

Lease liabilities

290

257

Asset retirement obligations

641

511

Other long-term liabilities

850

900

Deferred income taxes

1,676

1,463

Stockholders' equity:

Common stock

64

65

Additional paid-in capital

6,153

6,921

Retained earnings

5,535

4,297

Accumulated other comprehensive loss

(113)

(116)

Total stockholders' equity attributable to Devon

11,639

11,167

Noncontrolling interests

140

129

Total equity

11,779

11,296

Total liabilities and equity

$

24,241

$

23,721

Common shares outstanding

641

653

4

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in millions)

2023

2022

Cash flows from operating activities:

Quarter 3

Quarter 2

Quarter 1

Quarter 4

Quarter 3

Net earnings

$

920

$

698

$

1,003

$

1,204

$

1,900

Adjustments to reconcile net earnings to net cash from operating activities:

Depreciation, depletion and amortization

651

638

615

625

581

Leasehold impairments

1

3

-

2

2

Amortization of liabilities

(2)

(8)

(7)

(8)

(8)

Total (gains) losses on commodity derivatives

194

76

(64)

53

(248)

Cash settlements on commodity derivatives

(11)

37

13

(177)

(363)

Gains on asset dispositions

-

(41)

-

(29)

-

Deferred income tax expense

13

119

80

265

445

Share-based compensation

22

25

23

23

22

Other

(2)

(2)

2

(1)

8

Changes in assets and liabilities, net

(61)

(140)

12

(46)

(235)

Net cash from operating activities

1,725

1,405

1,677

1,911

2,104

Cash flows from investing activities:

Capital expenditures

(882)

(1,079)

(1,012)

(804)

(628)

Acquisitions of property and equipment

(23)

(18)

(13)

(17)

(2,465)

Divestitures of property and equipment

1

1

21

-

4

Distributions from investments

7

9

8

9

7

Contributions to investments and other

-

(15)

(37)

(17)

(16)

Net cash from investing activities

(897)

(1,102)

(1,033)

(829)

(3,098)

Cash flows from financing activities:

Repayments of long-term debt

(242)

-

-

-

-

Repurchases of common stock

-

(228)

(517)

(57)

(126)

Dividends paid on common stock

(312)

(462)

(596)

(875)

(1,007)

Contributions from noncontrolling interests

10

8

-

-

-

Distributions to noncontrolling interests

(9)

(13)

(11)

(8)

(9)

Shares exchanged for tax withholdings and other

-

(9)

(87)

-

(1)

Net cash from financing activities

)

(553)

(704)

(1,211)

(940)

(1,143

Effect of exchange rate changes on cash

(2)

2

-

2

(10)

Net change in cash, cash equivalents and restricted cash

273

(399)

(567)

144

(2,147)

Cash, cash equivalents and restricted cash at beginning of period

488

887

1,454

1,310

3,457

Cash, cash equivalents and restricted cash at end of period

$

761

$

488

$

887

$

1,454

$

1,310

Reconciliation of cash, cash equivalents and restricted cash:

Cash and cash equivalents

$

654

$

372

$

761

$

1,314

$

1,166

Restricted cash

107

116

126

140

144

Total cash, cash equivalents and restricted cash

$

761

$

488

$

887

$

1,454

$

1,310

5

PRODUCTION

2023

2022

Oil (MBbls/d)

Quarter 3

Quarter 2

Quarter 1

Quarter 4

Quarter 3

Delaware Basin

215

209

211

201

210

Eagle Ford

40

45

40

42

19

Anadarko Basin

14

15

15

15

13

Williston Basin

35

36

36

37

35

Powder River Basin

13

14

14

16

13

Other

4

4

4

5

4

Total

321

323

320

316

294

Natural gas liquids (MBbls/d)

Delaware Basin

112

105

97

101

108

Eagle Ford

15

16

15

12

9

Anadarko Basin

27

31

26

23

27

Williston Basin

9

9

8

9

8

Powder River Basin

2

2

2

3

2

Other

1

1

1

-

-

Total

166

164

149

148

154

Gas (MMcf/d)

Delaware Basin

680

636

640

626

623

Eagle Ford

78

86

82

84

63

Anadarko Basin

235

254

237

238

224

Williston Basin

58

59

54

64

71

Powder River Basin

18

18

16

21

18

Other

1

1

1

1

1

Total

1,070

1,054

1,030

1,034

1,000

Total oil equivalent (MBoe/d)

Delaware Basin

440

420

415

407

421

Eagle Ford

68

74

68

68

39

Anadarko Basin

80

89

81

77

77

Williston Basin

54

56

53

57

55

Powder River Basin

19

19

19

22

18

Other

4

4

5

5

4

Total

665

662

641

636

614

6

CAPITAL EXPENDITURES

(in millions)

2023

2022

Delaware Basin

Quarter 3

Quarter 2

Quarter 1

Quarter 4

Quarter 3

$

503

$

583

$

572

$

518

$

444

Eagle Ford

198

179

188

160

38

Anadarko Basin

13

67

66

59

55

Williston Basin

69

89

73

90

57

Powder River Basin

45

39

32

46

44

Other

2

1

2

1

1

Total upstream capital

$

830

$

958

$

933

$

874

$

639

Carbon capital

25

30

27

20

27

Midstream and Corporate

41

30

28

28

22

Acquisitions (1)

23

18

13

13

2,534

Total capital

$

919

$

1,036

$

1,001

$

935

$

3,222

  1. Q3 2022 includes $2,532 million related to Validus and RimRock acquisitions.

SUPPLEMENTAL INFORMATION FOR CAPITAL EXPENDITURES

GROSS OPERATED SPUDS

2023

2022

Delaware Basin

Quarter 3

Quarter 2

Quarter 1

Quarter 4

Quarter 3

64

65

60

60

50

Eagle Ford

28

18

23

31

7

Anadarko Basin

10

9

19

8

13

Williston Basin

7

8

6

9

10

Powder River Basin

4

3

3

4

6

Total

113

103

111

112

86

GROSS OPERATED WELLS TIED-IN

2023

2022

Delaware Basin

Quarter 3

Quarter 2

Quarter 1

Quarter 4

Quarter 3

59

76

42

55

59

Eagle Ford

13

29

26

28

8

Anadarko Basin

-

16

7

23

13

Williston Basin

6

8

17

5

14

Powder River Basin

3

2

5

3

9

Total

81

131

97

114

103

AVERAGE LATERAL LENGTH

2023

2022

(based on wells tied-in)

Delaware Basin

Quarter 3

Quarter 2

Quarter 1

Quarter 4

Quarter 3

9,700'

10,100'

9,900'

9,600'

10,900'

Eagle Ford

5,000'

6,200'

6,700'

6,500'

7,800'

Anadarko Basin

-

9,100'

9,300'

8,700'

9,500'

Williston Basin

12,300'

10,000'

11,500'

9,900'

10,500'

Powder River Basin

13,300'

15,000'

10,700'

9,600'

11,800'

Total

9,300'

9,200'

9,300'

8,700'

10,500'

7

REALIZED PRICING

BENCHMARK PRICES

2023

2022

(average prices)

Oil ($/Bbl) - West Texas Intermediate (Cushing)

Quarter 3

Quarter 2

Quarter 1

Quarter 4

Quarter 3

$

82.06

$

73.76

$

76.17

$

82.53

$

91.87

Natural Gas ($/Mcf) - Henry Hub

$

2.54

$

2.09

$

3.44

$

6.26

$

8.20

NGL ($/Bbl) - Mont Belvieu Blended

$

26.62

$

23.99

$

29.48

$

30.46

$

39.67

REALIZED PRICES

2023

2022

Oil (Per Bbl)

Quarter 3

Quarter 2

Quarter 1

Quarter 4

Quarter 3

Delaware Basin

$

80.72

$

71.86

$

74.43

$

82.48

$

93.60

Eagle Ford

80.85

72.36

74.06

83.23

91.53

Anadarko Basin

79.86

71.52

74.14

82.57

91.42

Williston Basin

79.50

70.80

74.09

81.05

91.30

Powder River Basin

78.51

70.75

74.30

81.29

91.33

Realized price without hedges

80.48

71.74

74.32

82.31

92.98

Cash settlements

(0.67)

-

(0.10)

(4.87)

(8.60)

Realized price, including cash settlements

$

79.81

$

71.74

$

74.22

$

77.44

$

84.38

Natural gas liquids (Per Bbl)

Delaware Basin

$

20.76

$

18.07

$

23.72

$

23.68

$

34.37

Eagle Ford

23.70

20.22

26.18

29.06

35.55

Anadarko Basin

23.37

19.42

27.88

29.58

35.52

Williston Basin

4.09

2.52

8.97

7.97

25.41

Powder River Basin

29.63

24.52

35.72

34.91

44.85

Realized price without hedges

20.72

17.79

24.12

24.32

34.44

Cash settlements

-

-

-

-

-

Realized price, including cash settlements

$

20.72

$

17.79

$

24.12

$

24.32

$

34.44

Gas (Per Mcf)

Delaware Basin

$

1.94

$

1.18

$

1.90

$

4.30

$

7.06

Eagle Ford

2.31

1.80

2.99

5.02

7.53

Anadarko Basin

2.17

1.72

3.14

5.37

8.89

Williston Basin

N/M

N/M

1.57

0.44

3.23

Powder River Basin

2.53

2.41

4.25

5.57

8.23

Realized price without hedges

1.92

1.27

2.29

4.39

7.25

Cash settlements

0.09

0.39

0.18

(0.38)

(1.42)

Realized price, including cash settlements

$

2.01

$

1.66

$

2.47

$

4.01

$

5.83

Total oil equivalent (Per Boe)

Delaware Basin

$

47.68

$

42.05

$

46.35

$

53.34

$

65.80

Eagle Ford

55.71

49.69

52.81

62.92

65.49

Anadarko Basin

27.88

24.04

32.16

41.25

53.72

Williston Basin

52.64

45.94

52.94

54.51

66.65

Powder River Basin

62.21

56.33

63.01

67.59

78.58

Realized price without hedges

47.10

41.39

46.44

53.66

64.89

Cash settlements

(0.18)

0.61

0.22

(3.04)

(6.41)

Realized price, including cash settlements

$

46.92

$

42.00

$

46.66

$

50.62

$

58.48

8

ASSET MARGINS

BENCHMARK PRICES

2023

2022

(average prices)

Oil ($/Bbl) - West Texas Intermediate (Cushing)

Quarter 3

Quarter 2

Quarter 1

Quarter 4

Quarter 3

$

82.06

$

73.76

$

76.17

$

82.53

$

91.87

Natural Gas ($/Mcf) - Henry Hub

$

2.54

$

2.09

$

3.44

$

6.26

$

8.20

NGL ($/Bbl) - Mont Belvieu Blended

$

26.62

$

23.99

$

29.48

$

30.46

$

39.67

PER-UNIT CASH MARGIN BY ASSET (per Boe)

2023

2022

Delaware Basin

Quarter 3

Quarter 2

Quarter 1

Quarter 4

Quarter 3

Realized price

$

47.68

$

42.05

$

46.35

$

53.34

$

65.80

Lease operating expenses

(5.03)

(4.96)

(4.58)

(4.55)

(4.39)

Gathering, processing & transportation

(2.63)

(2.63)

(2.63)

(2.52)

(2.40)

Production & property taxes

(3.48)

(3.18)

(3.43)

(3.89)

(4.81)

Field-level cash margin

$

36.54

$

31.28

$

35.71

$

42.38

$

54.20

Eagle Ford

Realized price

$

55.71

$

49.69

$

52.81

$

62.92

$

65.49

Lease operating expenses

(7.52)

(6.18)

(6.32)

(5.63)

(4.94)

Gathering, processing & transportation

(1.63)

(1.67)

(1.49)

(3.08)

(4.94)

Production & property taxes

(3.18)

(2.97)

(3.25)

(2.97)

(3.79)

Field-level cash margin

$

43.38

$

38.87

$

41.75

$

51.24

$

51.82

Anadarko Basin

Realized price

$

27.88

$

24.04

$

32.16

$

41.25

$

53.72

Lease operating expenses

(3.43)

(3.13)

(3.41)

(3.59)

(3.46)

Gathering, processing & transportation

(6.11)

(5.97)

(5.93)

(6.84)

(6.91)

Production & property taxes

(1.36)

(1.22)

(1.73)

(2.29)

(3.26)

Field-level cash margin

$

16.98

$

13.72

$

21.09

$

28.53

$

40.09

Williston Basin

Realized price

$

52.64

$

45.94

$

52.94

$

54.51

$

66.65

Lease operating expenses

(13.04)

(13.43)

(13.25)

(9.93)

(9.97)

Gathering, processing & transportation

(2.31)

(2.29)

(2.19)

(1.92)

(2.40)

Production & property taxes

(5.13)

(4.68)

(4.85)

(5.64)

(6.33)

Field-level cash margin

$

32.16

$

25.54

$

32.65

$

37.02

$

47.95

Powder River Basin

Realized price

$

62.21

$

56.33

$

63.01

$

67.59

$

78.58

Lease operating expenses

(8.45)

(10.03)

(11.07)

(7.15)

(7.03)

Gathering, processing & transportation

(3.02)

(2.97)

(2.73)

(2.98)

(3.24)

Production & property taxes

(7.45)

(6.79)

(7.78)

(8.13)

(9.50)

Field-level cash margin

$

43.29

$

36.54

$

41.43

$

49.33

$

58.81

Devon - Total

Realized price

$

47.10

$

41.39

$

46.44

$

53.66

$

64.89

Lease operating expenses

(6.00)

(5.86)

(5.67)

(5.26)

(5.02)

Gathering, processing & transportation

(2.91)

(2.94)

(2.88)

(3.05)

(3.13)

Production & property taxes

(3.46)

(3.14)

(3.47)

(3.91)

(4.84)

Field-level cash margin

$

34.73

$

29.45

$

34.42

$

41.44

$

51.90

9

NON-GAAP MEASURES

(all monetary values in millions, except per share amounts)

Devon's earnings materials include non-GAAP financial measures. These non-GAAP measures are not alternatives to GAAP measures, and you should not consider these non-GAAP measures in isolation or as a substitute for analysis of our results as reported under GAAP. Below is additional disclosure regarding each of the non- GAAP measures used in the earnings materials, including reconciliations to their most directly comparable GAAP measure.

The earnings materials may include forward-lookingnon-GAAP measures. The company is unable to provide reconciliations of these forward-lookingnon-GAAP measures, because components of the calculations are inherently unpredictable, such as changes to current assets and liabilities, the timing of changes in capital accruals, unknown future events and estimating certain future GAAP measures. The inability to reliably quantify certain components of the calculation would significantly affect the usefulness and accuracy of a reconciliation.

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 third- quarter 2023 earnings.

Quarter Ended September 30, 2023

Per Diluted

Total

Before-tax

After-tax

After NCI

Share

Earnings (GAAP)

$

1,072

$

920

$

910

$

1.42

Adjustments:

Deferred tax asset valuation allowance

-

3

3

-

Fair value changes in financial instruments

186

145

145

0.23

Core earnings (Non-GAAP)

$

1,258

$

1,068

$

1,058

$

1.65

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.

Net earnings (GAAP)

Q3 '23

Q2 '23

Q1 '23

Q4 '22

TTM

Q3 '22

$

920

$

698

$

1,003

$

1,204

$

3,825

$

1,900

Financing costs, net

81

78

72

73

304

67

Income tax expense

152

199

221

349

921

565

Exploration expenses

3

10

3

13

29

4

Depreciation, depletion and amortization

651

638

615

625

2,529

581

Asset dispositions

-

(41)

-

(29)

(70)

-

Share-based compensation

22

25

23

23

93

22

Derivative & financial instrument non-cash val. changes

183

113

(51)

(122)

123

(613)

Accretion on discounted liabilities and other

13

10

5

(6)

22

(38)

EBITDAX (Non-GAAP)

$

2,025

$

1,730

$

1,891

$

2,130

$

7,776

$

2,488

10

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Disclaimer

Devon Energy Corporation published this content on 07 November 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 07 November 2023 21:18:29 UTC.