Discontinued Operations

6 Months Ended

Jun. 30, 2021

Discontinued Operations And Disposal Groups [Abstract]

18.	Discontinued Operations

On October 1, 2020, Devon completed the sale of its Barnett Shale assets to BKV for proceeds, net of purchase price adjustments, of $490 million. Additionally, the agreement provides for contingent earnout payments to Devon of up to $260 million

based upon future commodity prices, with upside participation beginning at a $2.75 Henry Hub natural gas price or a $50 WTI oil price. The contingent payment period commenced on January 1, 2021 and has a term of four years.

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

	Three Months Ended June 30, 2020			Six Months Ended June 30, 2020
Oil, gas and NGL sales	$	77		$	169
Total revenues		77			169
Production expenses		74			148
Asset impairments ⁽¹⁾		—			179
Asset dispositions		(2	)		(2	)
General and administrative expenses		—			1
Financing costs, net		—			(2	)
Other, net		(4	)		(7	)
Total expenses		68			317
Earnings (loss) from discontinued operations before income taxes		9			(148	)
Income tax benefit		—			(32	)
Net earnings (loss) from discontinued operations, net of tax	$	9		$	(116	)

(1)

Devon recognized an $179 million asset impairment in the first quarter of 2020 related to the Barnett Shale assets primarily due to the difference between the net carrying value and the purchase price, net of estimated customary purchase price adjustments, which qualified as a level 2 fair value measurement.