Discontinued Operations

9 Months Ended

Sep. 30, 2021

Discontinued Operations And Disposal Groups [Abstract]

17.	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 September 30, 2020			Nine Months Ended September 30, 2020
Oil, gas and NGL sales	$	94		$	263
Total revenues		94			263
Production expenses		66			214
Asset impairments ⁽¹⁾		3			182
Asset dispositions		—			(2	)
General and administrative expenses		2			3
Financing costs, net		(1	)		(3	)
Other, net		26			19
Total expenses		96			413
Loss from discontinued operations before income taxes		(2	)		(150	)
Income tax benefit		(15	)		(47	)
Net earnings (loss) from discontinued operations, net of tax	$	13		$	(103	)

(1)

Devon recognized $182 million of asset impairments in the first nine months 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.