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Derivative Financial Instruments
 12 Months Ended
Dec. 31, 2021
Derivative Instruments And Hedging Activities Disclosure [Abstract]  
Derivative Financial Instruments

3.

Derivative Financial Instruments

Commodity Derivatives

As of December 31, 2021, Devon had the following open oil derivative positions. The first table presents Devon’s oil derivatives that settle against the average of the prompt month NYMEX WTI futures price. The second table presents Devon’s oil derivatives that settle against the respective indices noted within the table.

 

 

 

Price Swaps

 

 

Price Swaptions

 

 

Price Collars

 

 

Period

 

Volume

(Bbls/d)

 

 

Weighted

Average

Price ($/Bbl)

 

 

Volume

(Bbls/d)

 

 

Weighted

Average

Price ($/Bbl)

 

 

Volume

(Bbls/d)

 

 

Weighted

Average Floor

Price ($/Bbl)

 

 

Weighted

Average

Ceiling Price

($/Bbl)

 

 

Q1-Q4 2022

 

 

26,112

 

 

$

43.75

 

 

 

10,000

 

 

$

46.67

 

 

 

28,160

 

 

$

51.44

 

 

$

61.78

 

 

Q1-Q4 2023

 

 

—

 

 

$

—

 

 

 

—

 

 

$

—

 

 

 

1,110

 

 

$

60.58

 

 

$

70.58

 

 

 

 

 

Oil Basis Swaps

 

Period

 

Index

 

Volume

(Bbls/d)

 

 

Weighted Average

Differential to WTI

($/Bbl)

 

Q1-Q4 2022

 

BRENT

 

 

1,000

 

 

$

(7.75

)

Q1-Q4 2022

 

NYMEX Roll

 

 

29,000

 

 

$

0.45

 

 

As of December 31, 2021, Devon had the following open natural gas derivative positions. The first table presents Devon’s natural gas derivatives that settle against the Inside FERC first of the month Henry Hub index and the end of month NYMEX index. The second table presents Devon’s natural gas derivatives that settle against the respective indices noted within the table.

 

 

 

Price Swaps (1)

 

 

Price Collars (2)

 

Period

 

Volume (MMBtu/d)

 

 

Weighted Average Price ($/MMBtu)

 

 

Volume (MMBtu/d)

 

 

Weighted Average Floor Price ($/MMBtu)

 

 

Weighted Average

Ceiling Price ($/MMBtu)

 

Q1-Q4 2022

 

 

110,986

 

 

$

2.77

 

 

 

164,342

 

 

$

2.78

 

 

$

3.55

 

Q1-Q4 2023

 

 

4,959

 

 

$

3.65

 

 

 

23,000

 

 

$

3.32

 

 

$

4.63

 

 

(1)

Related to the 2022 open positions, 10,986 MMBtu/d settle against the Inside FERC first of month Henry Hub index at an average price of $3.40 and 100,000 MMBtu/d settle against the end of month NYMEX index at an average price of $2.70. All 2023 open positions settle against the Inside FERC first of month Henry Hub index.

 

(2)

Price Collars settle against the Inside FERC first of month Henry Hub.

 

 

Natural Gas Basis Swaps

 

Period

 

Index

 

Volume

(MMBtu/d)

 

 

Weighted Average

Differential to

Henry Hub

($/MMBtu)

 

Q1-Q4 2022

 

WAHA

 

 

70,000

 

 

$

(0.57

)

Q1-Q4 2023

 

WAHA

 

 

70,000

 

 

$

(0.51

)

Q1-Q4 2024

 

WAHA

 

 

40,000

 

 

$

(0.51

)

 

As of December 31, 2021, Devon did not have any open NGL derivative positions.

Financial Statement Presentation

 

All derivative financial instruments are recognized at their current fair value as either assets or liabilities in the consolidated balance sheets. Amounts related to contracts allowed to be netted upon payment subject to a master netting arrangement with the same counterparty are reported on a net basis in the consolidated balance sheets. The table below presents a summary of these positions as of December 31, 2021 and 2020.

 

 

December 31, 2021

 

 

December 31, 2020

 

 

 

 

Gross Fair Value

 

 

Amounts Netted

 

 

Net Fair Value

 

 

Gross Fair Value

 

 

Amounts Netted

 

 

Net Fair Value

 

 

Balance Sheet Classification

Commodity derivatives:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Short-term derivative asset

$

6

 

 

$

(4

)

 

$

2

 

 

$

23

 

 

$

(18

)

 

$

5

 

 

Other current assets

Long-term derivative asset

 

6

 

 

 

—

 

 

 

6

 

 

 

1

 

 

 

—

 

 

 

1

 

 

Other long-term assets

Short-term derivative liability

 

(579

)

 

 

4

 

 

 

(575

)

 

 

(161

)

 

 

18

 

 

 

(143

)

 

Other current liabilities

Long-term derivative liability

 

(2

)

 

 

—

 

 

 

(2

)

 

 

(5

)

 

 

—

 

 

 

(5

)

 

Other long-term liabilities

Total derivative liability

$

(569

)

 

$

—

 

 

$

(569

)

 

$

(142

)

 

$

—

 

 

$

(142

)