Exhibit 99.3
SUPPLEMENTAL TABLES
FOURTH-QUARTER AND FULL-YEAR 2019
| TABLE OF CONTENTS: | PAGE: | |||
| Income Statement |
2 | |||
| Cash Flow Statement |
3 | |||
| Balance Sheet |
4 | |||
| Production by Asset |
5 | |||
| Capital, Costs Incurred and Reserves Reconciliation |
6 | |||
| Well Activity by Asset |
7 | |||
| Realized Price by Asset |
8 | |||
| Per-Unit Cash Margin by Asset |
9 | |||
| Non-GAAP Core Earnings |
10 | |||
| Non-GAAP EBITDAX, Net Debt and Free Cash Flow |
11 | |||
| CONSOLIDATED STATEMENTS OF EARNINGS |
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| (in millions, except per share amounts) | 2019 | 2018 | ||||||||||||||||||||||
| Quarter 4 | Quarter 3 | Quarter 2 | Quarter 1 | Full Year | Quarter 4 | |||||||||||||||||||
| Upstream revenues (1) |
$ | 919 | $ | 1,046 | $ | 1,076 | $ | 314 | $ | 3,355 | $ | 2,416 | ||||||||||||
| Marketing and midstream revenues |
670 | 700 | 730 | 765 | 2,865 | 1,114 | ||||||||||||||||||
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| Total revenues |
1,589 | 1,746 | 1,806 | 1,079 | 6,220 | 3,530 | ||||||||||||||||||
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| Production expenses (2) |
324 | 294 | 296 | 283 | 1,197 | 295 | ||||||||||||||||||
| Exploration expenses |
29 | 18 | 7 | 4 | 58 | 24 | ||||||||||||||||||
| Marketing and midstream expenses |
665 | 684 | 713 | 750 | 2,812 | 1,105 | ||||||||||||||||||
| Depreciation, depletion and amortization |
382 | 381 | 374 | 360 | 1,497 | 318 | ||||||||||||||||||
| Asset dispositions |
— | (1 | ) | (2 | ) | (45 | ) | (48 | ) | (242 | ) | |||||||||||||
| General and administrative expenses |
119 | 107 | 114 | 135 | 475 | 136 | ||||||||||||||||||
| Financing costs, net |
64 | 60 | 66 | 60 | 250 | 59 | ||||||||||||||||||
| Restructuring and transaction costs |
11 | 10 | 12 | 51 | 84 | 6 | ||||||||||||||||||
| Other expenses |
16 | 3 | 7 | (22 | ) | 4 | 30 | |||||||||||||||||
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| Total expenses |
1,610 | 1,556 | 1,587 | 1,576 | 6,329 | 1,731 | ||||||||||||||||||
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| Earnings (loss) from continuing operations before income taxes |
(21 | ) | 190 | 219 | (497 | ) | (109 | ) | 1,799 | |||||||||||||||
| Income tax expense (benefit) |
(33 | ) | 54 | 68 | (119 | ) | (30 | ) | 421 | |||||||||||||||
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| Net earnings (loss) from continuing operations |
12 | 136 | 151 | (378 | ) | (79 | ) | 1,378 | ||||||||||||||||
| Net earnings (loss) from discontinued operations, net of taxes |
(652 | ) | (27 | ) | 344 | 61 | (274 | ) | (229 | ) | ||||||||||||||
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| Net earnings (loss) |
(640 | ) | 109 | 495 | (317 | ) | (353 | ) | 1,149 | |||||||||||||||
| Net earnings attributable to noncontrolling interests |
2 | — | — | — | 2 | — | ||||||||||||||||||
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| Net earnings (loss) attributable to Devon |
$ | (642 | ) | $ | 109 | $ | 495 | $ | (317 | ) | $ | (355 | ) | $ | 1,149 | |||||||||
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| Basic net earnings (loss) per share: |
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| Continuing operations |
$ | 0.03 | $ | 0.34 | $ | 0.37 | $ | (0.89 | ) | $ | (0.21 | ) | $ | 3.00 | ||||||||||
| Discontinued operations |
(1.73 | ) | (0.07 | ) | 0.83 | 0.15 | (0.68 | ) | (0.50 | ) | ||||||||||||||
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| Basic net earnings (loss) per share |
$ | (1.70 | ) | $ | 0.27 | $ | 1.20 | $ | (0.74 | ) | $ | (0.89 | ) | $ | 2.50 | |||||||||
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| Diluted net earnings (loss) per share: |
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| Continuing operations |
$ | 0.03 | $ | 0.34 | $ | 0.37 | $ | (0.89 | ) | $ | (0.21 | ) | $ | 2.98 | ||||||||||
| Discontinued operations |
(1.73 | ) | (0.07 | ) | 0.82 | 0.15 | (0.68 | ) | (0.50 | ) | ||||||||||||||
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| Diluted net earnings (loss) per share |
$ | (1.70 | ) | $ | 0.27 | $ | 1.19 | $ | (0.74 | ) | $ | (0.89 | ) | $ | 2.48 | |||||||||
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| Weighted average common shares outstanding: |
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| Basic |
383 | 397 | 415 | 434 | 407 | 459 | ||||||||||||||||||
| Diluted |
385 | 399 | 417 | 434 | 407 | 462 | ||||||||||||||||||
| (1) UPSTREAM REVENUES | ||||||||||||||||||||||||
| (in millions) | 2019 | 2018 | ||||||||||||||||||||||
| Quarter 4 | Quarter 3 | Quarter 2 | Quarter 1 | Full Year | Quarter 4 | |||||||||||||||||||
| Oil, gas and NGL sales |
$ | 1,035 | $ | 919 | $ | 936 | $ | 919 | $ | 3,809 | $ | 983 | ||||||||||||
| Derivative cash settlements |
42 | 71 | 23 | 34 | 170 | (16 | ) | |||||||||||||||||
| Derivative valuation changes |
(158 | ) | 56 | 117 | (639 | ) | (624 | ) | 1,449 | |||||||||||||||
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| Upstream revenues |
$ | 919 | $ | 1,046 | $ | 1,076 | $ | 314 | $ | 3,355 | $ | 2,416 | ||||||||||||
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| (2) PRODUCTION EXPENSES | ||||||||||||||||||||||||
| (in millions) | 2019 | 2018 | ||||||||||||||||||||||
| Quarter 4 | Quarter 3 | Quarter 2 | Quarter 1 | Full Year | Quarter 4 | |||||||||||||||||||
| Lease operating expense |
$ | 120 | $ | 118 | $ | 114 | $ | 110 | $ | 462 | $ | 125 | ||||||||||||
| Gathering, processing & transportation |
131 | 112 | 111 | 109 | 463 | 105 | ||||||||||||||||||
| Production taxes |
69 | 58 | 64 | 60 | 251 | 61 | ||||||||||||||||||
| Property taxes |
4 | 6 | 7 | 4 | 21 | 4 | ||||||||||||||||||
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| Production expenses |
$ | 324 | $ | 294 | $ | 296 | $ | 283 | $ | 1,197 | $ | 295 | ||||||||||||
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2
CONSOLIDATED STATEMENTS OF CASH FLOWS
| (in millions)
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2019 | |||||||||||||||||||
| Quarter 4 | Quarter 3 | Quarter 2 | Quarter 1 | Full Year | ||||||||||||||||
| Cash flows from operating activities: |
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| Net earnings (loss) |
$ | (640 | ) | $ | 109 | $ | 495 | $ | (317 | ) | $ | (353 | ) | |||||||
| Reconciliation of net earnings (loss) to net cash from operating activities: |
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| Net (earnings) loss from discontinued operations, net of income taxes |
652 | 27 | (344 | ) | (61 | ) | 274 | |||||||||||||
| Depreciation, depletion and amortization |
382 | 381 | 374 | 360 | 1,497 | |||||||||||||||
| Leasehold impairments |
3 | 13 | 1 | 1 | 18 | |||||||||||||||
| Accretion on discounted liabilities |
8 | 8 | 8 | 9 | 33 | |||||||||||||||
| Total (gains) losses on commodity derivatives |
116 | (127 | ) | (140 | ) | 605 | 454 | |||||||||||||
| Cash settlements on commodity derivatives |
41 | 71 | 23 | 31 | 166 | |||||||||||||||
| Gains on asset dispositions |
— | (1 | ) | (2 | ) | (45 | ) | (48 | ) | |||||||||||
| Deferred income tax expense (benefit) |
(27 | ) | 52 | 65 | (115 | ) | (25 | ) | ||||||||||||
| Share-based compensation |
24 | 24 | 23 | 44 | 115 | |||||||||||||||
| Other |
2 | 2 | 4 | (14 | ) | (6 | ) | |||||||||||||
| Changes in assets and liabilities, net |
18 | 36 | (75 | ) | (61 | ) | (82 | ) | ||||||||||||
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| Net cash from operating activities - continuing operations |
579 | 595 | 432 | 437 | 2,043 | |||||||||||||||
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| Cash flows from investing activities: |
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| Capital expenditures |
(408 | ) | (526 | ) | (486 | ) | (490 | ) | (1,910 | ) | ||||||||||
| Acquisitions of property and equipment |
(3 | ) | (5 | ) | (13 | ) | (10 | ) | (31 | ) | ||||||||||
| Divestitures of property and equipment |
43 | 9 | 28 | 310 | 390 | |||||||||||||||
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| Net cash from investing activities - continuing operations |
(368 | ) | (522 | ) | (471 | ) | (190 | ) | (1,551 | ) | ||||||||||
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| Cash flows from financing activities: |
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| Repayments of long-term debt |
— | — | — | (162 | ) | (162 | ) | |||||||||||||
| Repurchases of common stock |
(103 | ) | (560 | ) | (187 | ) | (999 | ) | (1,849 | ) | ||||||||||
| Dividends paid on common stock |
(34 | ) | (35 | ) | (37 | ) | (34 | ) | (140 | ) | ||||||||||
| Contributions from noncontrolling interests |
116 | — | — | — | 116 | |||||||||||||||
| Shares exchanged for tax withholdings and other |
(3 | ) | (1 | ) | (3 | ) | (19 | ) | (26 | ) | ||||||||||
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| Net cash from financing activities - continuing operations |
(24 | ) | (596 | ) | (227 | ) | (1,214 | ) | (2,061 | ) | ||||||||||
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| Net change in cash, cash equivalents and restricted cash of continuing operations |
187 | (523 | ) | (266 | ) | (967 | ) | (1,569 | ) | |||||||||||
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| Cash flows from discontinued operations: |
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| Operating activities |
(8 | ) | (95 | ) | 190 | (59 | ) | 28 | ||||||||||||
| Investing activities |
— | (5 | ) | 2,536 | (59 | ) | 2,472 | |||||||||||||
| Financing activities |
— | (1,571 | ) | — | (7 | ) | (1,578 | ) | ||||||||||||
| Effect of exchange rate changes on cash |
9 | (3 | ) | 38 | 1 | 45 | ||||||||||||||
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| Net change in cash, cash equivalents and restricted cash of discontinued operations |
1 | (1,674 | ) | 2,764 | (124 | ) | 967 | |||||||||||||
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| Net change in cash, cash equivalents and restricted cash |
188 | (2,197 | ) | 2,498 | (1,091 | ) | (602 | ) | ||||||||||||
| Cash, cash equivalents and restricted cash at beginning of period |
1,656 | 3,853 | 1,355 | 2,446 | 2,446 | |||||||||||||||
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| Cash, cash equivalents and restricted cash at end of period |
$ | 1,844 | $ | 1,656 | $ | 3,853 | $ | 1,355 | $ | 1,844 | ||||||||||
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| Reconciliation of cash, cash equivalents and restricted cash: |
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| Cash and cash equivalents |
$ | 1,464 | $ | 1,375 | $ | 3,470 | $ | 1,327 | $ | 1,464 | ||||||||||
| Cash restricted for discontinued operations |
380 | 280 | 370 | — | 380 | |||||||||||||||
| Restricted cash included in other current assets |
— | 1 | 13 | 28 | — | |||||||||||||||
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| Total cash, cash equivalents and restricted cash |
$ | 1,844 | $ | 1,656 | $ | 3,853 | $ | 1,355 | $ | 1,844 | ||||||||||
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3
CONSOLIDATED BALANCE SHEETS
| (in millions)
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December 31, | December 31, | ||||||
| 2019 | 2018 | |||||||
| Current assets: |
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| Cash and cash equivalents |
$ | 1,464 | $ | 2,414 | ||||
| Cash restricted for discontinued operations |
380 | — | ||||||
| Accounts receivable |
832 | 812 | ||||||
| Current assets associated with discontinued operations |
896 | 331 | ||||||
| Other current assets |
279 | 880 | ||||||
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| Total current assets |
3,851 | 4,437 | ||||||
| Oil and gas property and equipment, based on successful efforts accounting, net |
7,558 | 7,430 | ||||||
| Other property and equipment, net |
1,035 | 1,032 | ||||||
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| Total property and equipment, net |
8,593 | 8,462 | ||||||
| Goodwill |
753 | 753 | ||||||
| Right-of-use assets |
243 | — | ||||||
| Other long-term assets |
196 | 276 | ||||||
| Long-term assets associated with discontinued operations |
81 | 5,638 | ||||||
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| Total assets |
$ | 13,717 | $ | 19,566 | ||||
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| Current liabilities: |
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| Accounts payable |
$ | 428 | $ | 530 | ||||
| Revenues and royalties payable |
730 | 722 | ||||||
| Short-term debt |
— | 162 | ||||||
| Current liabilities associated with discontinued operations |
459 | 492 | ||||||
| Other current liabilities |
310 | 320 | ||||||
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| Total current liabilities |
1,927 | 2,226 | ||||||
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| Long-term debt |
4,294 | 4,292 | ||||||
| Lease liabilities |
244 | — | ||||||
| Asset retirement obligations |
380 | 468 | ||||||
| Other long-term liabilities |
426 | 411 | ||||||
| Long-term liabilities associated with discontinued operations |
185 | 2,454 | ||||||
| Deferred income taxes |
341 | 529 | ||||||
| Stockholders’ equity: |
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| Common stock |
38 | 45 | ||||||
| Additional paid-in capital |
2,735 | 4,486 | ||||||
| Retained earnings |
3,148 | 3,650 | ||||||
| Accumulated other comprehensive earnings (loss) |
(119 | ) | 1,027 | |||||
| Treasury stock, at cost, 1.0 million shares in 2018 |
— | (22 | ) | |||||
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| Total stockholders’ equity attributable to Devon |
5,802 | 9,186 | ||||||
| Noncontrolling interests |
118 | — | ||||||
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| Total equity |
5,920 | 9,186 | ||||||
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| Total liabilities and equity |
$ | 13,717 | $ | 19,566 | ||||
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| Common shares outstanding |
382 | 450 | ||||||
4
PRODUCTION TREND
| 2019 | 2018 | |||||||||||||||||||
| Quarter 4 | Quarter 3 | Quarter 2 | Quarter 1 | Quarter 4 | ||||||||||||||||
| Oil (MBbls/d) |
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| Delaware Basin |
84 | 70 | 67 | 60 | 45 | |||||||||||||||
| STACK |
27 | 32 | 31 | 32 | 31 | |||||||||||||||
| Powder River Basin |
20 | 18 | 15 | 15 | 13 | |||||||||||||||
| Eagle Ford |
23 | 22 | 23 | 25 | 30 | |||||||||||||||
| Other |
6 | 6 | 6 | 6 | 6 | |||||||||||||||
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| New Devon |
160 | 148 | 142 | 138 | 125 | |||||||||||||||
| Divest assets |
3 | 3 | 2 | 3 | 7 | |||||||||||||||
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| Total |
163 | 151 | 144 | 141 | 132 | |||||||||||||||
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| Natural gas liquids (MBbls/d) |
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| Delaware Basin |
32 | 28 | 27 | 23 | 18 | |||||||||||||||
| STACK |
30 | 37 | 40 | 35 | 37 | |||||||||||||||
| Powder River Basin |
2 | 2 | 2 | 2 | 2 | |||||||||||||||
| Eagle Ford |
9 | 11 | 12 | 12 | 15 | |||||||||||||||
| Other |
1 | 1 | 1 | 1 | 1 | |||||||||||||||
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| New Devon |
74 | 79 | 82 | 73 | 73 | |||||||||||||||
| Divest assets |
— | — | — | 1 | 1 | |||||||||||||||
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| Total |
74 | 79 | 82 | 74 | 74 | |||||||||||||||
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| Gas (MMcf/d) |
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| Delaware Basin |
234 | 167 | 158 | 146 | 127 | |||||||||||||||
| STACK |
295 | 317 | 313 | 333 | 343 | |||||||||||||||
| Powder River Basin |
28 | 28 | 22 | 18 | 20 | |||||||||||||||
| Eagle Ford |
76 | 75 | 81 | 83 | 95 | |||||||||||||||
| Other |
1 | 1 | 1 | 1 | 2 | |||||||||||||||
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| New Devon |
634 | 588 | 575 | 581 | 587 | |||||||||||||||
| Divest assets |
3 | 3 | 3 | 7 | 14 | |||||||||||||||
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| Total |
637 | 591 | 578 | 588 | 601 | |||||||||||||||
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| Total oil equivalent (MBoe/d) |
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| Delaware Basin |
154 | 127 | 120 | 107 | 84 | |||||||||||||||
| STACK |
107 | 121 | 124 | 123 | 126 | |||||||||||||||
| Powder River Basin |
27 | 25 | 21 | 21 | 18 | |||||||||||||||
| Eagle Ford |
45 | 45 | 49 | 50 | 61 | |||||||||||||||
| Other |
7 | 7 | 7 | 7 | 6 | |||||||||||||||
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| New Devon |
340 | 325 | 321 | 308 | 295 | |||||||||||||||
| Divest assets |
3 | 3 | 3 | 5 | 11 | |||||||||||||||
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| Total |
343 | 328 | 324 | 313 | 306 | |||||||||||||||
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| 2019 | 2018 | |||||||||||||||||||
| Quarter 4 | Quarter 3 | Quarter 2 | Quarter 1 | Quarter 4 | ||||||||||||||||
| Barnett divest assets (discontinued operations) |
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| Oil (MBbls/d) |
— | — | 1 | 1 | 1 | |||||||||||||||
| Natural gas liquids (MBbls/d) |
30 | 30 | 30 | 30 | 31 | |||||||||||||||
| Gas (MMcf/d) |
408 | 414 | 420 | 432 | 443 | |||||||||||||||
| Total oil equivalent (MBoe/d) |
98 | 100 | 100 | 103 | 105 | |||||||||||||||
5
CAPITAL EXPENDITURES
| (in millions)
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2019 | 2018 | ||||||||||||||||||
| Quarter 4 | Quarter 3 | Quarter 2 | Quarter 1 | Quarter 4 | ||||||||||||||||
| Delaware Basin |
$ | 170 | $ | 262 | $ | 235 | $ | 240 | $ | 253 | ||||||||||
| STACK |
38 | 67 | 94 | 112 | 195 | |||||||||||||||
| Powder River Basin |
89 | 89 | 87 | 48 | 56 | |||||||||||||||
| Eagle Ford |
65 | 90 | 53 | 48 | 32 | |||||||||||||||
| Other |
11 | 11 | 9 | 9 | 6 | |||||||||||||||
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| New Devon upstream capital |
373 | 519 | 478 | 457 | 542 | |||||||||||||||
| Divest assets upstream capital - US |
1 | 1 | 3 | 3 | 3 | |||||||||||||||
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| Total upstream capital |
374 | 520 | 481 | 460 | 545 | |||||||||||||||
| Land and other acquisitions |
3 | 12 | 14 | 7 | 35 | |||||||||||||||
| Other |
14 | 30 | 22 | 6 | 6 | |||||||||||||||
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| Total capital |
$ | 391 | $ | 562 | $ | 517 | $ | 473 | $ | 586 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
COSTS INCURRED
(in millions)
| Year Ended December 31, | ||||||||
| 2019 | 2018 | |||||||
| Property acquisition costs: |
||||||||
| Proved properties |
$ | — | $ | 2 | ||||
| Unproved properties |
35 | 70 | ||||||
| Exploration costs |
312 | 679 | ||||||
| Development costs |
1,499 | 1,505 | ||||||
|
|
|
|
|
|||||
| Costs incurred |
$ | 1,846 | $ | 2,256 | ||||
|
|
|
|
|
|||||
RESERVES RECONCILIATION
| Oil (MMBbls) |
Gas (Bcf) |
NGL (MMBbls) |
Total (MMBoe) |
|||||||||||||
| As of December 31, 2018: |
||||||||||||||||
| Proved developed |
196 | 1,427 | 166 | 600 | ||||||||||||
| Proved undeveloped |
100 | 375 | 61 | 223 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total Proved |
296 | 1,802 | 227 | 823 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Revisions due to prices |
(7 | ) | (86 | ) | (6 | ) | (28 | ) | ||||||||
| Revisions other than price |
(13 | ) | (50 | ) | (9 | ) | (31 | ) | ||||||||
| Extensions and discoveries |
76 | 269 | 39 | 160 | ||||||||||||
| Purchase of reserves |
3 | 7 | 1 | 6 | ||||||||||||
| Production |
(55 | ) | (219 | ) | (28 | ) | (119 | ) | ||||||||
| Sale of reserves |
(24 | ) | (102 | ) | (13 | ) | (54 | ) | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| As of December 31, 2019: |
||||||||||||||||
| Proved developed |
198 | 1,344 | 167 | 589 | ||||||||||||
| Proved undeveloped |
78 | 277 | 44 | 168 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total Proved |
276 | 1,621 | 211 | 757 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
6
GROSS OPERATED SPUDS
| 2019 | 2018 | |||||||||||||||||||
| Quarter 4 | Quarter 3 | Quarter 2 | Quarter 1 | Quarter 4 | ||||||||||||||||
| Delaware Basin |
24 | 38 | 23 | 39 | 31 | |||||||||||||||
| STACK |
— | 4 | 16 | 18 | 17 | |||||||||||||||
| Powder River Basin |
19 | 14 | 17 | 9 | 12 | |||||||||||||||
| Eagle Ford |
25 | 18 | 31 | 12 | 5 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| New Devon |
68 | 74 | 87 | 78 | 65 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
GROSS OPERATED WELLS TIED-IN
| 2019 | 2018 | |||||||||||||||||||
| Quarter 4 | Quarter 3 | Quarter 2 | Quarter 1 | Quarter 4 | ||||||||||||||||
| Delaware Basin |
36 | 34 | 28 | 25 | 27 | |||||||||||||||
| STACK |
9 | 16 | 21 | 29 | 25 | |||||||||||||||
| Powder River Basin |
19 | 18 | 6 | 3 | 8 | |||||||||||||||
| Eagle Ford |
21 | — | 9 | 18 | 10 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| New Devon |
85 | 68 | 64 | 75 | 70 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
NET OPERATED WELLS TIED-IN
| 2019 | 2018 | |||||||||||||||||||
| Quarter 4 | Quarter 3 | Quarter 2 | Quarter 1 | Quarter 4 | ||||||||||||||||
| Delaware Basin |
25 | 30 | 24 | 18 | 21 | |||||||||||||||
| STACK |
7 | 7 | 14 | 20 | 18 | |||||||||||||||
| Powder River Basin |
15 | 6 | 12 | 2 | 6 | |||||||||||||||
| Eagle Ford |
11 | — | 4 | 9 | 5 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| New Devon |
58 | 43 | 54 | 49 | 50 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
AVERAGE LATERAL LENGTH
(based on wells tied-in)
| 2019 | 2018 | |||||||||||||||||||
| Quarter 4 | Quarter 3 | Quarter 2 | Quarter 1 | Quarter 4 | ||||||||||||||||
| Delaware Basin |
8,000’ | 9,700’ | 7,500’ | 8,500’ | 8,800’ | |||||||||||||||
| STACK |
11,200’ | 9,600’ | 9,000’ | 9,000’ | 8,400’ | |||||||||||||||
| Powder River Basin |
9,700’ | 9,500’ | 9,500’ | 10,000’ | 9,500’ | |||||||||||||||
| Eagle Ford |
6,600’ | N/A | 6,000’ | 6,000’ | 6,500’ | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| New Devon |
8,400’ | 9,600’ | 8,000’ | 8,000’ | 8,400’ | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
7
BENCHMARK PRICES
(average prices)
| 2019 | 2018 | |||||||||||||||||||
| Quarter 4 | Quarter 3 | Quarter 2 | Quarter 1 | Quarter 4 | ||||||||||||||||
| Oil ($/Bbl) - West Texas Intermediate (Cushing) |
$ | 57.02 | $ | 56.34 | $ | 59.85 | $ | 54.88 | $ | 58.80 | ||||||||||
| Natural Gas ($/Mcf) - Henry Hub |
$ | 2.50 | $ | 2.23 | $ | 2.64 | $ | 3.15 | $ | 3.65 | ||||||||||
| NGL ($/Bbl) - Mont Belvieu Blended |
$ | 18.69 | $ | 16.18 | $ | 19.05 | $ | 22.94 | $ | 26.30 | ||||||||||
REALIZED PRICES
| 2019 | 2018 | |||||||||||||||||||
| Quarter 4 | Quarter 3 | Quarter 2 | Quarter 1 | Quarter 4 | ||||||||||||||||
| Oil (Per Bbl) |
||||||||||||||||||||
| Delaware Basin |
$ | 56.23 | $ | 53.85 | $ | 55.54 | $ | 49.48 | $ | 49.04 | ||||||||||
| STACK |
55.71 | 54.47 | 57.67 | 52.82 | 58.83 | |||||||||||||||
| Powder River Basin |
52.02 | 52.50 | 56.79 | 49.21 | 55.62 | |||||||||||||||
| Eagle Ford |
55.11 | 57.77 | 61.60 | 59.45 | 65.46 | |||||||||||||||
| Other |
56.52 | 54.57 | 56.12 | 48.77 | 48.09 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| New Devon |
55.46 | 54.43 | 57.17 | 51.99 | 56.08 | |||||||||||||||
| U.S. divest assets |
52.21 | 52.79 | 53.01 | 45.60 | 49.94 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Realized price without hedges |
55.41 | 54.40 | 57.11 | 51.83 | 55.77 | |||||||||||||||
| Cash settlements |
1.48 | 2.18 | (0.41 | ) | 3.65 | 0.79 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Realized price, including cash settlements |
$ | 56.89 | $ | 56.58 | $ | 56.70 | $ | 55.48 | $ | 56.56 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Natural gas liquids (Per Bbl) |
||||||||||||||||||||
| Delaware Basin |
$ | 13.30 | $ | 10.27 | $ | 13.77 | $ | 17.64 | $ | 21.24 | ||||||||||
| STACK |
17.47 | 12.61 | 15.55 | 18.43 | 22.57 | |||||||||||||||
| Powder River Basin |
17.36 | 15.01 | 17.74 | 19.64 | 22.76 | |||||||||||||||
| Eagle Ford |
18.84 | 13.77 | 15.84 | 19.77 | 23.90 | |||||||||||||||
| Other |
14.49 | 12.79 | 9.80 | 11.94 | 16.26 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| New Devon |
15.81 | 12.02 | 15.00 | 18.33 | 22.42 | |||||||||||||||
| U.S. divest assets |
N/M | 12.50 | 20.40 | 21.36 | 17.12 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Realized price without hedges |
15.79 | 12.02 | 15.00 | 18.36 | 22.32 | |||||||||||||||
| Cash settlements |
1.75 | 2.55 | 1.40 | 0.67 | 0.25 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Realized price, including cash settlements |
$ | 17.54 | $ | 14.57 | $ | 16.40 | $ | 19.03 | $ | 22.57 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Gas (Per Mcf) |
||||||||||||||||||||
| Delaware Basin |
$ | 1.22 | $ | 0.90 | $ | (0.05 | ) | $ | 1.84 | $ | 1.68 | |||||||||
| STACK |
1.81 | 1.54 | 1.74 | 2.76 | 2.94 | |||||||||||||||
| Powder River Basin |
2.51 | 1.96 | 2.16 | 2.92 | 3.85 | |||||||||||||||
| Eagle Ford |
2.52 | 2.26 | 2.56 | 3.39 | 3.82 | |||||||||||||||
| Other |
0.88 | 0.99 | 0.21 | 1.10 | 1.28 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| New Devon |
1.71 | 1.47 | 1.37 | 2.62 | 2.84 | |||||||||||||||
| U.S. divest assets |
N/M | 2.56 | 2.33 | 2.30 | 2.01 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Realized price without hedges |
1.70 | 1.47 | 1.38 | 2.62 | 2.82 | |||||||||||||||
| Cash settlements |
0.13 | 0.41 | 0.34 | (0.31 | ) | (0.49 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Realized price, including cash settlements |
$ | 1.83 | $ | 1.88 | $ | 1.72 | $ | 2.31 | $ | 2.33 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total oil equivalent (Per Boe) |
||||||||||||||||||||
| Delaware Basin |
$ | 35.05 | $ | 33.48 | $ | 33.94 | $ | 33.92 | $ | 33.30 | ||||||||||
| STACK |
24.28 | 22.07 | 23.96 | 26.65 | 29.40 | |||||||||||||||
| Powder River Basin |
42.45 | 41.20 | 45.44 | 41.69 | 46.27 | |||||||||||||||
| Eagle Ford |
36.51 | 35.10 | 37.50 | 39.41 | 44.20 | |||||||||||||||
| Other |
47.99 | 46.41 | 47.43 | 42.03 | 41.53 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| New Devon |
32.72 | 30.32 | 31.68 | 32.60 | 34.85 | |||||||||||||||
| U.S. divest assets |
43.20 | 45.35 | 44.71 | 35.49 | 36.82 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Realized price without hedges |
32.82 | 30.47 | 31.79 | 32.65 | 34.92 | |||||||||||||||
| Cash settlements |
1.32 | 2.34 | 0.79 | 1.22 | (0.56 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Realized price, including cash settlements |
$ | 34.14 | $ | 32.81 | $ | 32.58 | $ | 33.87 | $ | 34.36 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
8
BENCHMARK PRICES
(average prices)
| 2019 | 2018 | |||||||||||||||||||
| Quarter 4 | Quarter 3 | Quarter 2 | Quarter 1 | Quarter 4 | ||||||||||||||||
| Oil ($/Bbl) - West Texas Intermediate (Cushing) |
$ | 57.02 | $ | 56.34 | $ | 59.85 | $ | 54.88 | $ | 58.80 | ||||||||||
| Natural Gas ($/Mcf) - Henry Hub |
$ | 2.50 | $ | 2.23 | $ | 2.64 | $ | 3.15 | $ | 3.65 | ||||||||||
| NGL ($/Bbl) - Mont Belvieu Blended |
$ | 18.69 | $ | 16.18 | $ | 19.05 | $ | 22.94 | $ | 26.30 | ||||||||||
FIELD-LEVEL CASH MARGIN (per Boe)
| 2019 | 2018 | |||||||||||||||||||
| Quarter 4 | Quarter 3 | Quarter 2 | Quarter 1 | Quarter 4 | ||||||||||||||||
| Delaware Basin |
||||||||||||||||||||
| Realized price |
$ | 35.05 | $ | 33.48 | $ | 33.94 | $ | 33.92 | $ | 33.30 | ||||||||||
| Lease operating expenses |
(3.36 | ) | (4.17 | ) | (4.33 | ) | (4.58 | ) | (6.03 | ) | ||||||||||
| Gathering, processing & transportation |
(2.59 | ) | (2.20 | ) | (2.31 | ) | (2.23 | ) | (2.06 | ) | ||||||||||
| Production & property taxes |
(2.80 | ) | (2.69 | ) | (2.84 | ) | (2.72 | ) | (2.73 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Field-level cash margin |
$ | 26.30 | $ | 24.42 | $ | 24.46 | $ | 24.39 | $ | 22.48 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| STACK |
||||||||||||||||||||
| Realized price |
$ | 24.28 | $ | 22.07 | $ | 23.96 | $ | 26.65 | $ | 29.40 | ||||||||||
| Lease operating expenses |
(2.24 | ) | (2.08 | ) | (1.84 | ) | (1.87 | ) | (1.84 | ) | ||||||||||
| Gathering, processing & transportation |
(5.98 | ) | (5.05 | ) | (5.10 | ) | (5.18 | ) | (4.62 | ) | ||||||||||
| Production & property taxes |
(1.00 | ) | (0.86 | ) | (1.25 | ) | (1.33 | ) | (1.30 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Field-level cash margin |
$ | 15.06 | $ | 14.08 | $ | 15.77 | $ | 18.27 | $ | 21.64 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Powder River Basin |
||||||||||||||||||||
| Realized price |
$ | 42.45 | $ | 41.20 | $ | 45.44 | $ | 41.69 | $ | 46.27 | ||||||||||
| Lease operating expenses |
(5.00 | ) | (7.28 | ) | (6.95 | ) | (8.00 | ) | (6.58 | ) | ||||||||||
| Gathering, processing & transportation |
(3.40 | ) | (2.07 | ) | (1.71 | ) | (1.70 | ) | (1.89 | ) | ||||||||||
| Production & property taxes |
(5.19 | ) | (4.73 | ) | (4.99 | ) | (4.97 | ) | (5.39 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Field-level cash margin |
$ | 28.86 | $ | 27.12 | $ | 31.79 | $ | 27.02 | $ | 32.41 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Eagle Ford |
||||||||||||||||||||
| Realized price |
$ | 36.51 | $ | 35.10 | $ | 37.50 | $ | 39.41 | $ | 44.20 | ||||||||||
| Lease operating expenses |
(4.52 | ) | (3.20 | ) | (2.85 | ) | (2.81 | ) | (2.69 | ) | ||||||||||
| Gathering, processing & transportation |
(6.52 | ) | (5.93 | ) | (5.59 | ) | (5.84 | ) | (5.72 | ) | ||||||||||
| Production & property taxes |
(1.75 | ) | (1.95 | ) | (2.43 | ) | (2.23 | ) | (2.44 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Field-level cash margin |
$ | 23.72 | $ | 24.02 | $ | 26.63 | $ | 28.53 | $ | 33.35 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Other |
||||||||||||||||||||
| Realized price |
$ | 47.99 | $ | 46.41 | $ | 47.43 | $ | 42.03 | $ | 41.53 | ||||||||||
| Lease operating expenses |
(15.63 | ) | (15.06 | ) | (20.34 | ) | (17.05 | ) | (17.29 | ) | ||||||||||
| Gathering, processing & transportation |
(0.22 | ) | (0.29 | ) | (0.09 | ) | (0.31 | ) | (0.22 | ) | ||||||||||
| Production & property taxes |
(2.55 | ) | (3.30 | ) | (4.33 | ) | (3.28 | ) | (3.73 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Field-level cash margin |
$ | 29.59 | $ | 27.76 | $ | 22.67 | $ | 21.39 | $ | 20.29 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| New Devon - Total |
||||||||||||||||||||
| Realized price |
$ | 32.72 | $ | 30.32 | $ | 31.68 | $ | 32.60 | $ | 34.85 | ||||||||||
| Lease operating expenses |
(3.55 | ) | (3.73 | ) | (3.66 | ) | (3.72 | ) | (3.85 | ) | ||||||||||
| Gathering, processing & transportation |
(4.19 | ) | (3.74 | ) | (3.80 | ) | (3.92 | ) | (3.85 | ) | ||||||||||
| Production & property taxes |
(2.28 | ) | (2.06 | ) | (2.34 | ) | (2.25 | ) | (2.25 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Field-level cash margin |
$ | 22.70 | $ | 20.79 | $ | 21.88 | $ | 22.71 | $ | 24.90 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
9
NON-GAAP FINANCIAL MEASURES
This press release includes 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 this press release, including reconciliations to their most directly comparable GAAP measure.
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 fourth-quarter 2019 earnings.
| Quarter Ended December 31, 2019 | ||||||||||||||||
| (in millions, except per share amounts) | Before-tax | After-tax | After Noncontrolling Interests |
Per Diluted Share |
||||||||||||
| Continuing Operations |
||||||||||||||||
| Net earnings (GAAP) |
$ | (21 | ) | $ | 12 | $ | 10 | $ | 0.03 | |||||||
| Adjustments: |
||||||||||||||||
| Asset and exploration impairments |
3 | 3 | 3 | 0.01 | ||||||||||||
| Deferred tax asset valuation allowance |
— | (2 | ) | (2 | ) | (0.01 | ) | |||||||||
| Fair value changes in financial instruments |
159 | 121 | 121 | 0.31 | ||||||||||||
| Restructuring and transaction costs |
11 | 8 | 8 | 0.02 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Core earnings (Non-GAAP) |
$ | 152 | $ | 142 | $ | 140 | $ | 0.36 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Discontinued Operations |
||||||||||||||||
| Net loss (GAAP) |
$ | (724 | ) | $ | (652 | ) | $ | (652 | ) | $ | (1.73 | ) | ||||
| Adjustments: |
||||||||||||||||
| Asset dispositions |
— | 54 | 54 | 0.14 | ||||||||||||
| Asset and exploration impairments |
748 | 586 | 586 | 1.55 | ||||||||||||
| Deferred tax asset valuation allowance |
— | 1 | 1 | 0.01 | ||||||||||||
| Foreign currency and other |
(5 | ) | (4 | ) | (4 | ) | (0.01 | ) | ||||||||
| Restructuring and transaction costs |
4 | 3 | 3 | 0.01 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Core loss (Non-GAAP) |
$ | 23 | $ | (12 | ) | $ | (12 | ) | $ | (0.03 | ) | |||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total |
||||||||||||||||
| Net loss (GAAP) |
$ | (745 | ) | $ | (640 | ) | $ | (642 | ) | $ | (1.70 | ) | ||||
| Adjustments: |
||||||||||||||||
| Continuing Operations |
173 | 130 | 130 | 0.33 | ||||||||||||
| Discontinued Operations |
747 | 640 | 640 | 1.70 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Core earnings (Non-GAAP) |
$ | 175 | $ | 130 | $ | 128 | $ | 0.33 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
10
EBITDAX
Devon believes EBITDAX provides information useful in assessing operating and financial performance across periods. Devon computes EBITDAX as net earnings from continuing operations before income tax expense; financing costs, net; exploration expenses; depreciation, depletion and amortization; asset impairments; asset disposition gains and losses; non-cash share-based compensation; non-cash valuation changes for derivatives and financial instruments; restructuring and transaction costs; 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 and should be considered in conjunction with net earnings from continuing operations.
| (in millions) | Q4’19 | Q3’19 | Q2’19 | Q1’19 | 2019 | |||||||||||||||
| Net earnings (loss) (GAAP) |
$ | (640 | ) | $ | 109 | $ | 495 | $ | (317 | ) | $ | (353 | ) | |||||||
| Net (earnings) loss from discontinued operations, net of tax |
652 | 27 | (344 | ) | (61 | ) | 274 | |||||||||||||
| Financing costs, net |
64 | 60 | 66 | 60 | 250 | |||||||||||||||
| Income tax expense (benefit) |
(33 | ) | 54 | 68 | (119 | ) | (30 | ) | ||||||||||||
| Exploration expenses |
29 | 18 | 7 | 4 | 58 | |||||||||||||||
| Depreciation, depletion and amortization |
382 | 381 | 374 | 360 | 1,497 | |||||||||||||||
| Asset dispositions |
— | (1 | ) | (2 | ) | (45 | ) | (48 | ) | |||||||||||
| Share-based compensation |
19 | 20 | 21 | 23 | 83 | |||||||||||||||
| Derivative and financial instrument non-cash valuation changes |
159 | (57 | ) | (117 | ) | 638 | 623 | |||||||||||||
| Restructuring and transaction costs |
11 | 10 | 12 | 51 | 84 | |||||||||||||||
| Accretion on discounted liabilities and other |
14 | 5 | 8 | (22 | ) | 5 | ||||||||||||||
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| EBITDAX (Non-GAAP) |
$ | 657 | $ | 626 | $ | 588 | $ | 572 | $ | 2,443 | ||||||||||
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NET DEBT
Devon defines net debt as debt less cash, cash equivalents and cash restricted for discontinued operations. 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.
| (in millions) | December 31, 2019 |
December 31, 2015 |
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| Total debt (GAAP) |
$ | 4,294 | $ | 13,032 | ||||
| Less: |
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| Cash and cash equivalents |
(1,464 | ) | (2,310 | ) | ||||
| Cash restricted for discontinued operations |
(380 | ) | — | |||||
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| Net debt (Non-GAAP) |
$ | 2,450 | $ | 10,722 | ||||
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FREE CASH FLOW
Devon defines free cash flow as total operating cash flow less capital expenditures. Devon believes that free cash flow provides a useful measure of available cash generated by operating activities for other investing and financing activities.
| (in millions) | Quarter Ended December 31, 2019 |
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| Total operating cash flow (GAAP) |
$ | 579 | ||
| Less capital expenditures: |
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| Capital expenditures |
(408 | ) | ||
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| Free cash flow (Non-GAAP) |
$ | 171 | ||
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11
GUIDANCE
FIRST-QUARTER AND FULL-YEAR 2020
PRODUCTION GUIDANCE
| Quarter 1 | Full Year | |||||||||||||||
| Low | High | Low | High | |||||||||||||
| Oil (MBbls/d) |
158 | 163 | 161 | 163 | ||||||||||||
| Natural gas liquids (MBbls/d) |
72 | 76 | 72 | 76 | ||||||||||||
| Gas (MMcf/d) |
590 | 620 | 570 | 600 | ||||||||||||
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| Total oil equivalent (MBoe/d) |
328 | 342 | 328 | 339 | ||||||||||||
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PRICE REALIZATIONS GUIDANCE
| Quarter 1 | Full Year | |||||||||||||||
| Low | High | Low | High | |||||||||||||
| Oil - % of WTI |
95 | % | 100 | % | 95 | % | 100 | % | ||||||||
| NGL - realized price |
$ | 13.00 | $ | 15.00 | $ | 13.00 | $ | 15.00 | ||||||||
| Natural gas - % of Henry Hub |
55 | % | 65 | % | 50 | % | 70 | % | ||||||||
OTHER GUIDANCE ITEMS
| Quarter 1 | Full Year | |||||||||||||||
| ($ millions, except Boe and %) | Low | High | Low | High | ||||||||||||
| Marketing & midstream operating profit |
$ | (5 | ) | $ | 5 | $ | (10 | ) | $ | 10 | ||||||
| LOE & GP&T per BOE(1) |
$ | 8.10 | (1) | $ | 8.30 | (1) | $ | 8.00 | (1) | $ | 8.20 | (1) | ||||
| Production & property taxes as % of upstream sales |
7.8 | % | 8.0 | % | 7.8 | % | 8.0 | % | ||||||||
| Exploration expenses |
$ | 5 | $ | 10 | $ | 15 | $ | 25 | ||||||||
| Depreciation, depletion and amortization |
$ | 400 | $ | 425 | $ | 1,600 | $ | 1,700 | ||||||||
| General & administrative expenses |
$ | 110 | $ | 120 | $ | 360 | $ | 400 | ||||||||
| Financing costs, net |
$ | 60 | $ | 70 | $ | 250 | $ | 270 | ||||||||
| Other expenses |
$ | 10 | $ | 20 | $ | 40 | $ | 50 | ||||||||
| Current income tax rate from continuing operations |
0 | % | 0 | % | 0 | % | 0 | % | ||||||||
| Deferred income tax rate from continuing operations |
20 | % | 30 | % | 20 | % | 30 | % | ||||||||
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| Total income tax rate from continuing operations |
20 | % | 30 | % | 20 | % | 30 | % | ||||||||
| (1) | In the first quarter 2020 and full-year 2020, Devon expects to incur approximately $15 million and $65 million of minimum volume commitments related to its STACK asset. These commitments are expected to impact GP&T rates by approximately $0.55 per Boe in 2020. These commitments will expire at the end of 2020. |
Note: In the first quarter of 2020, Devon expects to pay approximately $200 million for income taxes and other minor expenses related to its divested Canadian operations. These payments will be represented in discontinued operations.
| CAPITAL EXPENDITURES GUIDANCE |
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| Quarter 1 | Full Year | |||||||||||||||
| (in millions) |
Low | High | Low | High | ||||||||||||
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| Upstream capital |
$ | 420 | $ | 470 | $ | 1,700 | $ | 1,850 | ||||||||
| Other |
5 | 10 | 20 | 30 | ||||||||||||
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| Total |
$ | 425 | $ | 480 | $ | 1,720 | $ | 1,880 | ||||||||
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Oil Commodity Hedges
| Price Swaps |
Price Collars |
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| Period |
Volume (Bbls/d) |
Weighted Average Price ($/Bbl) |
Volume (Bbls/d) |
Weighted Average Floor Price ($/Bbl) |
Weighted Average Ceiling Price ($/Bbl) |
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| Q1-Q4 2020 |
14,750 | $ | 58.34 | 52,500 | $ | 51.69 | $ | 61.74 | ||||||||
| Q1-Q4 2021 |
1,750 | $ | 55.04 | 7,500 | $ | 50.07 | $ | 60.07 | ||||||||
Oil Basis Swaps
| Period |
Index |
Volume (Bbls/d) | Weighted Average Differential to WTI ($/Bbl) |
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| Q1-Q4 2020 |
Argus MEH | 10,000 | $ | 3.38 | ||||||
| Q1-Q4 2020 |
Midland Sweet | 3,000 | $ | 1.11 | ||||||
| Q1-Q4 2020 |
NYMEX Roll | 52,000 | $ | 0.37 | ||||||
| Q1-Q4 2021 |
Midland Sweet | 1,000 | $ | 1.25 | ||||||
Natural Gas Commodity Hedges - Henry Hub
| 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) |
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| Q1-Q4 2020 |
81,600 | $ | 2.77 | 50,250 | $ | 2.63 | $ | 2.96 | ||||||||
| Q1-Q4 2021 |
— | — | 7,500 | $ | 2.08 | $ | 2.58 | |||||||||
Natural Gas Basis Swaps
| Period |
Index |
Volume (MMBtu/d) | Weighted Average Differential to Henry Hub ($/MMBtu) |
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| Q1-Q4 2020 |
Panhandle Eastern Pipe Line | 30,000 | $ | (0.47 | ) | |||||
| Q1-Q4 2020 |
El Paso Natural Gas | 45,000 | $ | (0.70 | ) | |||||
| Q1-Q4 2020 |
Houston Ship Channel | 18,352 | $ | (0.01 | ) | |||||
NGL Commodity Hedges
| Price Swaps | ||||||||||
| Period |
Product |
Volume (Bbls/d) | Weighted Average Price ($/Bbl) |
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| Q1-Q4 2020 |
Natural Gasoline | 1,000 | $ | 44.84 | ||||||
| Q1-Q4 2020 |
Normal Butane | 1,500 | $ | 23.56 | ||||||
| Q1-Q4 2020 |
Propane | 4,500 | $ | 25.18 | ||||||
Devon’s oil derivatives settle against the average of the prompt month NYMEX West Texas Intermediate futures price. Devon’s natural gas derivatives settle against the Inside FERC first of the month Henry Hub index. Devon’s NGL derivatives settle against the average of the prompt month OPIS Mont Belvieu, Texas index. Commodity hedge positions are shown as of February 6, 2020.
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