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Segment Information
 9 Months Ended
Sep. 30, 2015
Segment Information [Abstract]  
Segment Information

19.    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. exploration and production operating segments into one reporting segment due to the similar nature of the businesses. However, Devon’s Canadian exploration and production 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 exploration and production activities.

 

EnLink, combined with the General Partner, is presented as a separate reporting segment. Devon considers EnLink’s operations distinct from the U.S. and Canadian operating segments. Additionally, EnLink has a management team that is primarily responsible for capital and resource allocation decisions. 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   

 

U.S.(1)

 

Canada

 

EnLink(1)

 

Eliminations

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Millions)

Three Months Ended September 30, 2015:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues from external customers

 

$
2,381 

 

$
221 

 

$
999 

 

$

 -

 

$
3,601 

Intersegment revenues

 

$

 -

 

$

 -

 

$
172 

 

$
(172)

 

$

 -

Depreciation, depletion and amortization

 

$
510 

 

$
134 

 

$
100 

 

$

 -

 

$
744 

Interest expense

 

$
96 

 

$
22 

 

$
31 

 

$
(11)

 

$
138 

Asset impairments

 

$
4,716 

 

$
336 

 

$
799 

 

$

 -

 

$
5,851 

Loss before income taxes

 

$
(4,464)

 

$
(401)

 

$
(758)

 

$

 -

 

$
(5,623)

Income tax expense (benefit)

 

$
(1,605)

 

$
(116)

 

$
7 

 

$

 -

 

$
(1,714)

Net loss

 

$
(2,859)

 

$
(285)

 

$
(765)

 

$

 -

 

$
(3,909)

Net loss attributable to noncontrolling interests

 

$

 -

 

$

 -

 

$
(402)

 

$

 -

 

$
(402)

Net loss attributable to Devon

 

$
(2,859)

 

$
(285)

 

$
(363)

 

$

 -

 

$
(3,507)

Capital expenditures

 

$
974 

 

$
108 

 

$
105 

 

$

 -

 

$
1,187 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended September 30, 2014:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues from external customers

 

$
4,197 

 

$
481 

 

$
658 

 

$

 -

 

$
5,336 

Intersegment revenues

 

$

 -

 

$

 -

 

$
199 

 

$
(199)

 

$

 -

Depreciation, depletion and amortization

 

$
654 

 

$
113 

 

$
75 

 

$

 -

 

$
842 

Interest expense

 

$
95 

 

$
20 

 

$
14 

 

$
(11)

 

$
118 

Earnings before income taxes

 

$
1,463 

 

$
109 

 

$
82 

 

$

 -

 

$
1,654 

Income tax expense

 

$
557 

 

$
38 

 

$
18 

 

$

 -

 

$
613 

Net earnings

 

$
906 

 

$
71 

 

$
64 

 

$

 -

 

$
1,041 

Net earnings attributable to noncontrolling interests

 

$

 -

 

$

 -

 

$
25 

 

$

 -

 

$
25 

Net earnings attributable to Devon

 

$
906 

 

$
71 

 

$
39 

 

$

 -

 

$
1,016 

Capital expenditures

 

$
1,211 

 

$
335 

 

$
209 

 

$

 -

 

$
1,755 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nine Months Ended September 30, 2015:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues from external customers

 

$
6,570 

 

$
802 

 

$
2,887 

 

$

 -

 

$
10,259 

Intersegment revenues

 

$

 -

 

$

 -

 

$
499 

 

$
(499)

 

$

 -

Depreciation, depletion and amortization

 

$
1,817 

 

$
382 

 

$
289 

 

$

 -

 

$
2,488 

Interest expense

 

$
271 

 

$
70 

 

$
76 

 

$
(34)

 

$
383 

Asset impairments

 

$
14,344 

 

$
336 

 

$
799 

 

$

 -

 

$
15,479 

Loss before income taxes

 

$
(14,450)

 

$
(609)

 

$
(667)

 

$

 -

 

$
(15,726)

Income tax expense (benefit)

 

$
(5,334)

 

$
(129)

 

$
28 

 

$

 -

 

$
(5,435)

Net loss

 

$
(9,116)

 

$
(480)

 

$
(695)

 

$

 -

 

$
(10,291)

Net earnings (loss) attributable to noncontrolling interests

 

$
1 

 

$

 -

 

$
(370)

 

$

 -

 

$
(369)

Net loss attributable to Devon

 

$
(9,117)

 

$
(480)

 

$
(325)

 

$

 -

 

$
(9,922)

Property and equipment, net

 

$
11,586 

 

$
5,623 

 

$
5,566 

 

$

 -

 

$
22,775 

Total assets

 

$
17,436 

 

$
6,754 

 

$
10,274 

 

$
(113)

 

$
34,351 

Capital expenditures

 

$
3,205 

 

$
478 

 

$
777 

 

$

 -

 

$
4,460 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nine Months Ended September 30, 2014:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues from external customers

 

$
10,065 

 

$
1,671 

 

$
1,835 

 

$

 -

 

$
13,571 

Intersegment revenues

 

$

 -

 

$

 -

 

$
672 

 

$
(672)

 

$

 -

Depreciation, depletion and amortization

 

$
1,791 

 

$
419 

 

$
199 

 

$

 -

 

$
2,409 

Interest expense

 

$
303 

 

$
61 

 

$
33 

 

$
(31)

 

$
366 

Earnings before income taxes

 

$
2,224 

 

$
1,310 

 

$
234 

 

$

 -

 

$
3,768 

Income tax expense

 

$
1,121 

 

$
517 

 

$
60 

 

$

 -

 

$
1,698 

Net earnings

 

$
1,103 

 

$
793 

 

$
174 

 

$

 -

 

$
2,070 

Net earnings attributable to noncontrolling interests

 

$
1 

 

$

 -

 

$
54 

 

$

 -

 

$
55 

Net earnings attributable to Devon

 

$
1,102 

 

$
793 

 

$
120 

 

$

 -

 

$
2,015 

Property and equipment, net

 

$
23,661 

 

$
6,882 

 

$
4,626 

 

$

 -

 

$
35,169 

Total assets

 

$
30,431 

 

$
10,895 

 

$
9,630 

 

$
(117)

 

$
50,839 

Capital expenditures

 

$
9,724 

 

$
1,055 

 

$
515 

 

$

 -

 

$
11,294 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended December 31, 2014:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Property and equipment, net

 

$
24,463 

 

$
6,790 

 

$
5,043 

 

$

 -

 

$
36,296 

Total assets

 

$
32,037 

 

$
8,517 

 

$
10,207 

 

$
(124)

 

$
50,637 

 ____________________________

(1)

Due to Devon’s control of EnLink through its control of the General Partner, the acquisition of VEX by EnLink from Devon in the second quarter of 2015 was considered a transfer of net assets between entities under common control, and EnLink was required to recast its financial statements as of September 30, 2015 to include the activities of such assets from the date of common control. Therefore, the results of VEX for prior periods have been moved from the U.S. segment to the EnLink segment.