Exhibit 99.2
Devon Energy Third-Quarter 2022
Supplemental Tables
TABLE OF CONTENTS: |
PAGE: |
|
|
Consolidated Statements of Earnings |
2 |
|
|
Supplemental Information for Consolidated Statements of Earnings |
3 |
|
|
Consolidated Statements of Cash Flows |
4 |
|
|
Consolidated Balance Sheets |
5 |
|
|
Production |
6 |
|
|
Capital Expenditures and Supplemental Information for Capital Expenditures |
7 |
|
|
Realized Pricing |
8 |
|
|
Asset Margins |
9 |
|
|
Core Earnings |
10 |
|
|
EBITDAX, Net Debt, Net Debt-to-EBITDAX and Free Cash Flow |
11 |
|
|
Reinvestment Rate and Variable Dividend |
12 |
1
CONSOLIDATED STATEMENTS OF EARNINGS
(in millions, except per share amounts) |
|
2022 |
|
|
2021 |
|
|
||||||||||||||
|
|
Quarter 3 |
|
|
Quarter 2 |
|
|
Quarter 1 |
|
|
Quarter 4 |
|
|
Quarter 3 |
|
|
|||||
Oil, gas and NGL sales |
|
$ |
3,668 |
|
|
$ |
4,100 |
|
|
$ |
3,175 |
|
|
$ |
2,985 |
|
|
$ |
2,635 |
|
|
Oil, gas and NGL derivatives (1) |
|
|
248 |
|
|
|
(170 |
) |
|
|
(683 |
) |
|
|
22 |
|
|
|
(335 |
) |
|
Marketing and midstream revenues |
|
|
1,516 |
|
|
|
1,696 |
|
|
|
1,320 |
|
|
|
1,266 |
|
|
|
1,166 |
|
|
Total revenues |
|
|
5,432 |
|
|
|
5,626 |
|
|
|
3,812 |
|
|
|
4,273 |
|
|
|
3,466 |
|
|
Production expenses (2) |
|
|
735 |
|
|
|
729 |
|
|
|
618 |
|
|
|
605 |
|
|
|
555 |
|
|
Exploration expenses |
|
|
4 |
|
|
|
10 |
|
|
|
2 |
|
|
|
5 |
|
|
|
3 |
|
|
Marketing and midstream expenses |
|
|
1,525 |
|
|
|
1,700 |
|
|
|
1,324 |
|
|
|
1,266 |
|
|
|
1,165 |
|
|
Depreciation, depletion and amortization |
|
|
581 |
|
|
|
528 |
|
|
|
489 |
|
|
|
577 |
|
|
|
578 |
|
|
Asset dispositions |
|
|
— |
|
|
|
(14 |
) |
|
|
(1 |
) |
|
|
(49 |
) |
|
|
— |
|
|
General and administrative expenses |
|
|
95 |
|
|
|
84 |
|
|
|
94 |
|
|
|
95 |
|
|
|
95 |
|
|
Financing costs, net (3) |
|
|
67 |
|
|
|
84 |
|
|
|
85 |
|
|
|
86 |
|
|
|
86 |
|
|
Restructuring and transaction costs |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
28 |
|
|
|
18 |
|
|
Other, net |
|
|
(40 |
) |
|
|
10 |
|
|
|
(61 |
) |
|
|
(2 |
) |
|
|
2 |
|
|
Total expenses |
|
|
2,967 |
|
|
|
3,131 |
|
|
|
2,550 |
|
|
|
2,611 |
|
|
|
2,502 |
|
|
Earnings before income taxes |
|
|
2,465 |
|
|
|
2,495 |
|
|
|
1,262 |
|
|
|
1,662 |
|
|
|
964 |
|
|
Income tax expense (4) |
|
|
565 |
|
|
|
557 |
|
|
|
267 |
|
|
|
150 |
|
|
|
120 |
|
|
Net earnings |
|
|
1,900 |
|
|
|
1,938 |
|
|
|
995 |
|
|
|
1,512 |
|
|
|
844 |
|
|
Net earnings attributable to noncontrolling interests |
|
|
7 |
|
|
|
6 |
|
|
|
6 |
|
|
|
6 |
|
|
|
6 |
|
|
Net earnings attributable to Devon |
|
$ |
1,893 |
|
|
$ |
1,932 |
|
|
$ |
989 |
|
|
$ |
1,506 |
|
|
$ |
838 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Net earnings per share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Basic net earnings per share |
|
$ |
2.89 |
|
|
$ |
2.94 |
|
|
$ |
1.48 |
|
|
$ |
2.24 |
|
|
$ |
1.24 |
|
|
Diluted net earnings per share |
|
$ |
2.88 |
|
|
$ |
2.93 |
|
|
$ |
1.48 |
|
|
$ |
2.23 |
|
|
$ |
1.24 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Weighted average common shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Basic |
|
|
655 |
|
|
|
658 |
|
|
|
663 |
|
|
|
671 |
|
|
|
677 |
|
|
Diluted |
|
|
656 |
|
|
|
660 |
|
|
|
665 |
|
|
|
673 |
|
|
|
679 |
|
|
2
SUPPLEMENTAL INFORMATION FOR CONSLIDATED STATEMENTS OF EARNINGS
(1) OIL, GAS AND NGL DERIVATIVES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
(in millions) |
|
2022 |
|
|
2021 |
|
|
||||||||||||||
|
|
Quarter 3 |
|
|
Quarter 2 |
|
|
Quarter 1 |
|
|
Quarter 4 |
|
|
Quarter 3 |
|
|
|||||
Derivative cash settlements |
|
$ |
(363 |
) |
|
$ |
(472 |
) |
|
$ |
(344 |
) |
|
$ |
(493 |
) |
|
$ |
(370 |
) |
|
Derivative valuation changes |
|
|
611 |
|
|
|
302 |
|
|
|
(339 |
) |
|
|
515 |
|
|
|
35 |
|
|
Oil, gas and NGL derivatives |
|
$ |
248 |
|
|
$ |
(170 |
) |
|
$ |
(683 |
) |
|
$ |
22 |
|
|
$ |
(335 |
) |
|
(2) PRODUCTION EXPENSES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
(in millions) |
|
2022 |
|
|
2021 |
|
|
||||||||||||||
|
|
Quarter 3 |
|
|
Quarter 2 |
|
|
Quarter 1 |
|
|
Quarter 4 |
|
|
Quarter 3 |
|
|
|||||
Lease operating expense |
|
$ |
284 |
|
|
$ |
255 |
|
|
$ |
224 |
|
|
$ |
235 |
|
|
$ |
215 |
|
|
Gathering, processing & transportation |
|
|
177 |
|
|
|
177 |
|
|
|
161 |
|
|
|
173 |
|
|
|
157 |
|
|
Production taxes |
|
|
252 |
|
|
|
278 |
|
|
|
214 |
|
|
|
197 |
|
|
|
176 |
|
|
Property taxes |
|
|
22 |
|
|
|
19 |
|
|
|
19 |
|
|
|
— |
|
|
|
7 |
|
|
Production expenses |
|
$ |
735 |
|
|
$ |
729 |
|
|
$ |
618 |
|
|
$ |
605 |
|
|
$ |
555 |
|
|
(3) FINANCING COSTS, NET |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
(in millions) |
|
2022 |
|
|
2021 |
|
|
||||||||||||||
|
|
Quarter 3 |
|
|
Quarter 2 |
|
|
Quarter 1 |
|
|
Quarter 4 |
|
|
Quarter 3 |
|
|
|||||
Interest based on outstanding debt |
|
$ |
92 |
|
|
$ |
93 |
|
|
$ |
92 |
|
|
$ |
92 |
|
|
$ |
93 |
|
|
Interest income |
|
|
(19 |
) |
|
|
(2 |
) |
|
|
(1 |
) |
|
|
— |
|
|
|
(1 |
) |
|
Other |
|
|
(6 |
) |
|
|
(7 |
) |
|
|
(6 |
) |
|
|
(6 |
) |
|
|
(6 |
) |
|
Financing costs, net |
|
$ |
67 |
|
|
$ |
84 |
|
|
$ |
85 |
|
|
$ |
86 |
|
|
$ |
86 |
|
|
(4) INCOME TAX EXPENSE |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
(in millions) |
|
2022 |
|
|
2021 |
|
||||||||||||||
|
|
Quarter 3 |
|
|
Quarter 2 |
|
|
Quarter 1 |
|
|
Quarter 4 |
|
|
Quarter 3 |
|
|||||
Current expense |
|
$ |
120 |
|
|
$ |
252 |
|
|
$ |
103 |
|
|
$ |
1 |
|
|
$ |
1 |
|
Deferred expense |
|
|
445 |
|
|
|
305 |
|
|
|
164 |
|
|
|
149 |
|
|
|
119 |
|
Income tax expense |
|
$ |
565 |
|
|
$ |
557 |
|
|
$ |
267 |
|
|
$ |
150 |
|
|
$ |
120 |
|
3
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in millions) |
|
2022 |
|
|
2021 |
|
|
||||||||||||||
|
|
Quarter 3 |
|
|
Quarter 2 |
|
|
Quarter 1 |
|
|
Quarter 4 |
|
|
Quarter 3 |
|
|
|||||
Cash flows from operating activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Net earnings |
|
$ |
1,900 |
|
|
$ |
1,938 |
|
|
$ |
995 |
|
|
$ |
1,512 |
|
|
$ |
844 |
|
|
Adjustments to reconcile net earnings to net cash from operating activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Depreciation, depletion and amortization |
|
|
581 |
|
|
|
528 |
|
|
|
489 |
|
|
|
577 |
|
|
|
578 |
|
|
Leasehold impairments |
|
|
2 |
|
|
|
7 |
|
|
|
1 |
|
|
|
1 |
|
|
|
1 |
|
|
Amortization of liabilities |
|
|
(8 |
) |
|
|
(9 |
) |
|
|
(6 |
) |
|
|
(6 |
) |
|
|
(7 |
) |
|
Total (gains) losses on commodity derivatives |
|
|
(248 |
) |
|
|
170 |
|
|
|
683 |
|
|
|
(22 |
) |
|
|
335 |
|
|
Cash settlements on commodity derivatives |
|
|
(363 |
) |
|
|
(472 |
) |
|
|
(344 |
) |
|
|
(493 |
) |
|
|
(370 |
) |
|
Gains on asset dispositions |
|
|
— |
|
|
|
(14 |
) |
|
|
(1 |
) |
|
|
(49 |
) |
|
|
— |
|
|
Deferred income tax expense |
|
|
445 |
|
|
|
305 |
|
|
|
164 |
|
|
|
149 |
|
|
|
119 |
|
|
Share-based compensation |
|
|
22 |
|
|
|
23 |
|
|
|
20 |
|
|
|
19 |
|
|
|
19 |
|
|
Early retirement of debt |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Other |
|
|
8 |
|
|
|
4 |
|
|
|
(21 |
) |
|
|
2 |
|
|
|
11 |
|
|
Changes in assets and liabilities, net |
|
|
(235 |
) |
|
|
198 |
|
|
|
(143 |
) |
|
|
(74 |
) |
|
|
68 |
|
|
Net cash from operating activities |
|
|
2,104 |
|
|
|
2,678 |
|
|
|
1,837 |
|
|
|
1,616 |
|
|
|
1,598 |
|
|
Cash flows from investing activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Capital expenditures |
|
|
(628 |
) |
|
|
(573 |
) |
|
|
(537 |
) |
|
|
(512 |
) |
|
|
(474 |
) |
|
Acquisitions of property and equipment |
|
|
(2,465 |
) |
|
|
(100 |
) |
|
|
(1 |
) |
|
|
(3 |
) |
|
|
(10 |
) |
|
Divestitures of property and equipment |
|
|
4 |
|
|
|
9 |
|
|
|
26 |
|
|
|
14 |
|
|
|
1 |
|
|
Distributions from investments |
|
|
7 |
|
|
|
15 |
|
|
|
8 |
|
|
|
8 |
|
|
|
9 |
|
|
Contributions to investments |
|
|
(16 |
) |
|
|
(21 |
) |
|
|
(22 |
) |
|
|
(25 |
) |
|
|
— |
|
|
Net cash from investing activities |
|
|
(3,098 |
) |
|
|
(670 |
) |
|
|
(526 |
) |
|
|
(518 |
) |
|
|
(474 |
) |
|
Cash flows from financing activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Repurchases of common stock |
|
|
(126 |
) |
|
|
(324 |
) |
|
|
(211 |
) |
|
|
(589 |
) |
|
|
— |
|
|
Dividends paid on common stock |
|
|
(1,007 |
) |
|
|
(830 |
) |
|
|
(667 |
) |
|
|
(554 |
) |
|
|
(329 |
) |
|
Contributions from noncontrolling interests |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1 |
|
|
Distributions to noncontrolling interests |
|
|
(9 |
) |
|
|
(5 |
) |
|
|
(8 |
) |
|
|
(6 |
) |
|
|
(6 |
) |
|
Shares exchanged for tax withholdings and other |
|
|
(1 |
) |
|
|
(12 |
) |
|
|
(73 |
) |
|
|
— |
|
|
|
(3 |
) |
|
Net cash from financing activities |
|
|
(1,143 |
) |
|
|
(1,171 |
) |
|
|
(959 |
) |
|
|
(1,149 |
) |
|
|
(337 |
) |
|
Effect of exchange rate changes on cash |
|
|
(10 |
) |
|
|
(5 |
) |
|
|
2 |
|
|
|
1 |
|
|
|
(5 |
) |
|
Net change in cash, cash equivalents and restricted cash |
|
|
(2,147 |
) |
|
|
832 |
|
|
|
354 |
|
|
|
(50 |
) |
|
|
782 |
|
|
Cash, cash equivalents and restricted cash at beginning of period |
|
|
3,457 |
|
|
|
2,625 |
|
|
|
2,271 |
|
|
|
2,321 |
|
|
|
1,539 |
|
|
Cash, cash equivalents and restricted cash at end of period |
|
$ |
1,310 |
|
|
$ |
3,457 |
|
|
$ |
2,625 |
|
|
$ |
2,271 |
|
|
$ |
2,321 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Reconciliation of cash, cash equivalents and restricted cash: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Cash and cash equivalents |
|
$ |
1,166 |
|
|
$ |
3,300 |
|
|
$ |
2,459 |
|
|
$ |
2,099 |
|
|
$ |
2,144 |
|
|
Restricted cash |
|
|
144 |
|
|
|
157 |
|
|
|
166 |
|
|
|
172 |
|
|
|
177 |
|
|
Total cash, cash equivalents and restricted cash |
|
$ |
1,310 |
|
|
$ |
3,457 |
|
|
$ |
2,625 |
|
|
$ |
2,271 |
|
|
$ |
2,321 |
|
|
4
CONSOLIDATED BALANCE SHEETS
(in millions) |
September 30, |
|
|
December 31, |
|
||
|
2022 |
|
|
2021 |
|
||
Current assets: |
|
|
|
|
|
||
Cash, cash equivalents and restricted cash |
$ |
1,310 |
|
|
$ |
2,271 |
|
Accounts receivable |
|
2,061 |
|
|
|
1,543 |
|
Other current assets |
|
638 |
|
|
|
435 |
|
Total current assets |
|
4,009 |
|
|
|
4,249 |
|
Oil and gas property and equipment, based on successful efforts accounting, net |
|
16,258 |
|
|
|
13,536 |
|
Other property and equipment, net |
|
1,535 |
|
|
|
1,472 |
|
Total property and equipment, net |
|
17,793 |
|
|
|
15,008 |
|
Goodwill |
|
753 |
|
|
|
753 |
|
Right-of-use assets |
|
232 |
|
|
|
235 |
|
Investments |
|
431 |
|
|
|
402 |
|
Other long-term assets |
|
339 |
|
|
|
378 |
|
Total assets |
$ |
23,557 |
|
|
$ |
21,025 |
|
|
|
|
|
|
|
||
Current liabilities: |
|
|
|
|
|
||
Accounts payable |
$ |
761 |
|
|
$ |
500 |
|
Revenues and royalties payable |
|
1,810 |
|
|
|
1,456 |
|
Short-term debt |
|
255 |
|
|
|
— |
|
Other current liabilities |
|
634 |
|
|
|
1,131 |
|
Total current liabilities |
|
3,460 |
|
|
|
3,087 |
|
Long-term debt |
|
6,196 |
|
|
|
6,482 |
|
Lease liabilities |
|
259 |
|
|
|
252 |
|
Asset retirement obligations |
|
498 |
|
|
|
468 |
|
Other long-term liabilities |
|
941 |
|
|
|
1,050 |
|
Deferred income taxes |
|
1,196 |
|
|
|
287 |
|
Stockholders' equity: |
|
|
|
|
|
||
Common stock |
|
65 |
|
|
|
66 |
|
Additional paid-in capital |
|
6,956 |
|
|
|
7,636 |
|
Retained earnings |
|
3,981 |
|
|
|
1,692 |
|
Accumulated other comprehensive loss |
|
(129 |
) |
|
|
(132 |
) |
Total stockholders’ equity attributable to Devon |
|
10,873 |
|
|
|
9,262 |
|
Noncontrolling interests |
|
134 |
|
|
|
137 |
|
Total equity |
|
11,007 |
|
|
|
9,399 |
|
Total liabilities and equity |
$ |
23,557 |
|
|
$ |
21,025 |
|
|
|
|
|
|
|
||
Common shares outstanding |
|
654 |
|
|
|
663 |
|
5
PRODUCTION
|
|
2022 |
|
|
2021 |
|
|
||||||||||||||
|
|
Quarter 3 |
|
|
Quarter 2 |
|
|
Quarter 1 |
|
|
Quarter 4 |
|
|
Quarter 3 |
|
|
|||||
Oil (MBbls/d) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Delaware Basin |
|
|
210 |
|
|
|
222 |
|
|
|
209 |
|
|
|
213 |
|
|
|
213 |
|
|
Anadarko Basin |
|
|
13 |
|
|
|
14 |
|
|
|
14 |
|
|
|
14 |
|
|
|
14 |
|
|
Williston Basin |
|
|
35 |
|
|
|
27 |
|
|
|
32 |
|
|
|
36 |
|
|
|
39 |
|
|
Eagle Ford |
|
|
19 |
|
|
|
19 |
|
|
|
17 |
|
|
|
19 |
|
|
|
20 |
|
|
Powder River Basin |
|
|
13 |
|
|
|
14 |
|
|
|
12 |
|
|
|
14 |
|
|
|
14 |
|
|
Other |
|
|
4 |
|
|
|
4 |
|
|
|
4 |
|
|
|
4 |
|
|
|
3 |
|
|
Total |
|
|
294 |
|
|
|
300 |
|
|
|
288 |
|
|
|
300 |
|
|
|
303 |
|
|
Natural gas liquids (MBbls/d) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Delaware Basin |
|
|
108 |
|
|
|
111 |
|
|
|
92 |
|
|
|
107 |
|
|
|
100 |
|
|
Anadarko Basin |
|
|
27 |
|
|
|
25 |
|
|
|
25 |
|
|
|
27 |
|
|
|
25 |
|
|
Williston Basin |
|
|
8 |
|
|
|
9 |
|
|
|
8 |
|
|
|
9 |
|
|
|
9 |
|
|
Eagle Ford |
|
|
9 |
|
|
|
9 |
|
|
|
9 |
|
|
|
9 |
|
|
|
11 |
|
|
Powder River Basin |
|
|
2 |
|
|
|
2 |
|
|
|
2 |
|
|
|
2 |
|
|
|
3 |
|
|
Other |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Total |
|
|
154 |
|
|
|
156 |
|
|
|
136 |
|
|
|
154 |
|
|
|
148 |
|
|
Gas (MMcf/d) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Delaware Basin |
|
|
623 |
|
|
|
618 |
|
|
|
561 |
|
|
|
577 |
|
|
|
578 |
|
|
Anadarko Basin |
|
|
224 |
|
|
|
212 |
|
|
|
210 |
|
|
|
222 |
|
|
|
219 |
|
|
Williston Basin |
|
|
71 |
|
|
|
52 |
|
|
|
54 |
|
|
|
64 |
|
|
|
59 |
|
|
Eagle Ford |
|
|
63 |
|
|
|
60 |
|
|
|
61 |
|
|
|
60 |
|
|
|
67 |
|
|
Powder River Basin |
|
|
18 |
|
|
|
18 |
|
|
|
19 |
|
|
|
19 |
|
|
|
19 |
|
|
Other |
|
|
1 |
|
|
|
1 |
|
|
|
1 |
|
|
|
1 |
|
|
|
1 |
|
|
Total |
|
|
1,000 |
|
|
|
961 |
|
|
|
906 |
|
|
|
943 |
|
|
|
943 |
|
|
Total oil equivalent (MBoe/d) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Delaware Basin |
|
|
421 |
|
|
|
436 |
|
|
|
394 |
|
|
|
416 |
|
|
|
409 |
|
|
Anadarko Basin |
|
|
77 |
|
|
|
74 |
|
|
|
75 |
|
|
|
78 |
|
|
|
75 |
|
|
Williston Basin |
|
|
55 |
|
|
|
45 |
|
|
|
48 |
|
|
|
55 |
|
|
|
58 |
|
|
Eagle Ford |
|
|
39 |
|
|
|
38 |
|
|
|
36 |
|
|
|
38 |
|
|
|
42 |
|
|
Powder River Basin |
|
|
18 |
|
|
|
19 |
|
|
|
18 |
|
|
|
19 |
|
|
|
20 |
|
|
Other |
|
|
4 |
|
|
|
4 |
|
|
|
4 |
|
|
|
5 |
|
|
|
4 |
|
|
Total |
|
|
614 |
|
|
|
616 |
|
|
|
575 |
|
|
|
611 |
|
|
|
608 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
6
CAPITAL EXPENDITURES
(in millions) |
|
2022 |
|
|
2021 |
|
|
||||||||||||||
|
|
Quarter 3 |
|
|
Quarter 2 |
|
|
Quarter 1 |
|
|
Quarter 4 |
|
|
Quarter 3 |
|
|
|||||
Delaware Basin |
|
$ |
444 |
|
|
$ |
374 |
|
|
$ |
413 |
|
|
$ |
392 |
|
|
$ |
363 |
|
|
Anadarko Basin |
|
|
55 |
|
|
|
42 |
|
|
|
16 |
|
|
|
19 |
|
|
|
15 |
|
|
Williston Basin |
|
|
57 |
|
|
|
21 |
|
|
|
17 |
|
|
|
25 |
|
|
|
13 |
|
|
Eagle Ford |
|
|
38 |
|
|
|
37 |
|
|
|
27 |
|
|
|
21 |
|
|
|
34 |
|
|
Powder River Basin |
|
|
44 |
|
|
|
37 |
|
|
|
27 |
|
|
|
27 |
|
|
|
15 |
|
|
Other |
|
|
1 |
|
|
|
2 |
|
|
|
1 |
|
|
|
2 |
|
|
|
2 |
|
|
Total upstream capital |
|
$ |
639 |
|
|
$ |
513 |
|
|
$ |
501 |
|
|
$ |
486 |
|
|
$ |
442 |
|
|
Environmental (1) |
|
|
27 |
|
|
|
22 |
|
|
|
16 |
|
|
|
— |
|
|
|
— |
|
|
Midstream and Corporate |
|
|
22 |
|
|
|
32 |
|
|
|
46 |
|
|
|
31 |
|
|
|
29 |
|
|
Acquisitions (2) |
|
|
2,534 |
|
|
|
13 |
|
|
|
1 |
|
|
|
4 |
|
|
|
10 |
|
|
Total capital |
|
$ |
3,222 |
|
|
$ |
580 |
|
|
$ |
564 |
|
|
$ |
521 |
|
|
$ |
481 |
|
|
SUPPLEMENTAL INFORMATION FOR CAPITAL EXPENDITURES
GROSS OPERATED SPUDS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
2022 |
|
|
2021 |
|
|
||||||||||||||
|
|
Quarter 3 |
|
|
Quarter 2 |
|
|
Quarter 1 |
|
|
Quarter 4 |
|
|
Quarter 3 |
|
|
|||||
Delaware Basin |
|
|
50 |
|
|
|
46 |
|
|
|
59 |
|
|
|
54 |
|
|
|
50 |
|
|
Anadarko Basin |
|
|
13 |
|
|
|
14 |
|
|
|
13 |
|
|
|
6 |
|
|
|
9 |
|
|
Williston Basin |
|
|
10 |
|
|
|
5 |
|
|
|
— |
|
|
|
9 |
|
|
|
— |
|
|
Eagle Ford |
|
|
7 |
|
|
|
4 |
|
|
|
11 |
|
|
|
9 |
|
|
|
10 |
|
|
Powder River Basin |
|
|
6 |
|
|
|
1 |
|
|
|
— |
|
|
|
4 |
|
|
|
9 |
|
|
Total |
|
|
86 |
|
|
|
70 |
|
|
|
83 |
|
|
|
82 |
|
|
|
78 |
|
|
GROSS OPERATED WELLS TIED-IN |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
2022 |
|
|
2021 |
|
|
||||||||||||||
|
|
Quarter 3 |
|
|
Quarter 2 |
|
|
Quarter 1 |
|
|
Quarter 4 |
|
|
Quarter 3 |
|
|
|||||
Delaware Basin |
|
|
59 |
|
|
|
52 |
|
|
|
52 |
|
|
|
65 |
|
|
|
52 |
|
|
Anadarko Basin |
|
|
13 |
|
|
|
1 |
|
|
|
— |
|
|
|
12 |
|
|
|
4 |
|
|
Williston Basin |
|
|
14 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
4 |
|
|
Eagle Ford |
|
|
8 |
|
|
|
14 |
|
|
|
8 |
|
|
|
7 |
|
|
|
19 |
|
|
Powder River Basin |
|
|
9 |
|
|
|
— |
|
|
|
4 |
|
|
|
2 |
|
|
|
2 |
|
|
Total |
|
|
103 |
|
|
|
67 |
|
|
|
64 |
|
|
|
86 |
|
|
|
81 |
|
|
AVERAGE LATERAL LENGTH |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
(based on wells tied-in) |
|
2022 |
|
|
2021 |
|
|||||||||||
|
|
Quarter 3 |
|
Quarter 2 |
|
|
Quarter 1 |
|
|
Quarter 4 |
|
|
Quarter 3 |
|
|||
Delaware Basin |
|
10,900' |
|
9,100' |
|
|
8,900' |
|
|
10,100' |
|
|
9,700' |
|
|||
Anadarko Basin |
|
9,500' |
|
10,100' |
|
|
|
— |
|
|
11,700' |
|
|
9,200' |
|
||
Williston Basin |
|
10,500' |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
9,600' |
|
Eagle Ford |
|
7,800' |
|
5,800' |
|
|
7,500' |
|
|
7,100' |
|
|
6,300' |
|
|||
Powder River Basin |
|
11,800' |
|
|
— |
|
|
10,400' |
|
|
9,600' |
|
|
10,500' |
|
||
Total |
|
10,500' |
|
8,400' |
|
|
8,800' |
|
|
10,100' |
|
|
8,900' |
|
|||
7
REALIZED PRICING
BENCHMARK PRICES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
(average prices) |
|
2022 |
|
|
2021 |
|
|
||||||||||||||
|
|
Quarter 3 |
|
|
Quarter 2 |
|
|
Quarter 1 |
|
|
Quarter 4 |
|
|
Quarter 3 |
|
|
|||||
Oil ($/Bbl) - West Texas Intermediate (Cushing) |
|
$ |
91.87 |
|
|
$ |
108.70 |
|
|
$ |
94.45 |
|
|
$ |
76.91 |
|
|
$ |
70.64 |
|
|
Natural Gas ($/Mcf) - Henry Hub |
|
$ |
8.20 |
|
|
$ |
7.17 |
|
|
$ |
4.96 |
|
|
$ |
5.84 |
|
|
$ |
4.02 |
|
|
NGL ($/Bbl) - Mont Belvieu Blended |
|
$ |
39.67 |
|
|
$ |
46.44 |
|
|
$ |
43.99 |
|
|
$ |
40.39 |
|
|
$ |
36.85 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
REALIZED PRICES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
2022 |
|
|
2021 |
|
|
||||||||||||||
|
|
Quarter 3 |
|
|
Quarter 2 |
|
|
Quarter 1 |
|
|
Quarter 4 |
|
|
Quarter 3 |
|
|
|||||
Oil (Per Bbl) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Delaware Basin |
|
$ |
93.60 |
|
|
$ |
109.05 |
|
|
$ |
93.12 |
|
|
$ |
75.67 |
|
|
$ |
68.44 |
|
|
Anadarko Basin |
|
|
91.42 |
|
|
|
108.15 |
|
|
|
92.70 |
|
|
|
76.07 |
|
|
|
69.11 |
|
|
Williston Basin |
|
|
91.30 |
|
|
|
109.85 |
|
|
|
90.87 |
|
|
|
74.02 |
|
|
|
66.60 |
|
|
Eagle Ford |
|
|
91.53 |
|
|
|
109.77 |
|
|
|
94.51 |
|
|
|
75.35 |
|
|
|
68.32 |
|
|
Powder River Basin |
|
|
91.33 |
|
|
|
104.75 |
|
|
|
92.69 |
|
|
|
72.86 |
|
|
|
65.81 |
|
|
Realized price without hedges |
|
|
92.98 |
|
|
|
108.93 |
|
|
|
92.94 |
|
|
|
75.36 |
|
|
|
68.19 |
|
|
Cash settlements |
|
|
(8.60 |
) |
|
|
(13.13 |
) |
|
|
(11.32 |
) |
|
|
(13.14 |
) |
|
|
(10.60 |
) |
|
Realized price, including cash settlements |
|
$ |
84.38 |
|
|
$ |
95.80 |
|
|
$ |
81.62 |
|
|
$ |
62.22 |
|
|
$ |
57.59 |
|
|
Natural gas liquids (Per Bbl) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Delaware Basin |
|
$ |
34.37 |
|
|
$ |
40.75 |
|
|
$ |
38.43 |
|
|
$ |
35.56 |
|
|
$ |
31.34 |
|
|
Anadarko Basin |
|
|
35.52 |
|
|
|
41.64 |
|
|
|
38.38 |
|
|
|
35.66 |
|
|
|
33.20 |
|
|
Williston Basin |
|
|
25.41 |
|
|
|
23.88 |
|
|
|
20.71 |
|
|
|
24.97 |
|
|
|
19.36 |
|
|
Eagle Ford |
|
|
35.55 |
|
|
|
41.98 |
|
|
|
39.68 |
|
|
|
38.17 |
|
|
|
32.80 |
|
|
Powder River Basin |
|
|
44.85 |
|
|
|
55.62 |
|
|
|
52.49 |
|
|
|
47.30 |
|
|
|
40.66 |
|
|
Realized price without hedges |
|
|
34.44 |
|
|
|
40.28 |
|
|
|
37.76 |
|
|
|
35.36 |
|
|
|
31.25 |
|
|
Cash settlements |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(0.54 |
) |
|
|
(0.45 |
) |
|
Realized price, including cash settlements |
|
$ |
34.44 |
|
|
$ |
40.28 |
|
|
$ |
37.76 |
|
|
$ |
34.82 |
|
|
$ |
30.80 |
|
|
Gas (Per Mcf) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Delaware Basin |
|
$ |
7.06 |
|
|
$ |
6.41 |
|
|
$ |
3.83 |
|
|
$ |
4.60 |
|
|
$ |
3.58 |
|
|
Anadarko Basin |
|
|
8.89 |
|
|
|
7.11 |
|
|
|
4.00 |
|
|
|
5.37 |
|
|
|
4.05 |
|
|
Williston Basin |
|
|
3.23 |
|
|
|
1.56 |
|
|
|
0.74 |
|
|
|
1.53 |
|
|
|
0.65 |
|
|
Eagle Ford |
|
|
7.53 |
|
|
|
7.10 |
|
|
|
4.91 |
|
|
|
5.76 |
|
|
|
4.08 |
|
|
Powder River Basin |
|
|
8.23 |
|
|
|
7.93 |
|
|
|
4.24 |
|
|
|
6.10 |
|
|
|
4.15 |
|
|
Realized price without hedges |
|
|
7.25 |
|
|
|
6.37 |
|
|
|
3.77 |
|
|
|
4.68 |
|
|
|
3.55 |
|
|
Cash settlements |
|
|
(1.42 |
) |
|
|
(1.31 |
) |
|
|
(0.62 |
) |
|
|
(1.42 |
) |
|
|
(0.78 |
) |
|
Realized price, including cash settlements |
|
$ |
5.83 |
|
|
$ |
5.06 |
|
|
$ |
3.15 |
|
|
$ |
3.26 |
|
|
$ |
2.77 |
|
|
Total oil equivalent (Per Boe) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Delaware Basin |
|
$ |
65.80 |
|
|
$ |
75.02 |
|
|
$ |
63.75 |
|
|
$ |
54.28 |
|
|
$ |
48.29 |
|
|
Anadarko Basin |
|
|
53.72 |
|
|
|
54.46 |
|
|
|
42.08 |
|
|
|
41.39 |
|
|
|
35.62 |
|
|
Williston Basin |
|
|
66.65 |
|
|
|
73.15 |
|
|
|
63.31 |
|
|
|
53.44 |
|
|
|
48.55 |
|
|
Eagle Ford |
|
|
65.49 |
|
|
|
75.07 |
|
|
|
62.74 |
|
|
|
56.06 |
|
|
|
47.40 |
|
|
Powder River Basin |
|
|
78.58 |
|
|
|
89.84 |
|
|
|
75.75 |
|
|
|
63.45 |
|
|
|
55.93 |
|
|
Realized price without hedges |
|
|
64.89 |
|
|
|
73.13 |
|
|
|
61.40 |
|
|
|
53.12 |
|
|
|
47.08 |
|
|
Cash settlements |
|
|
(6.41 |
) |
|
|
(8.43 |
) |
|
|
(6.65 |
) |
|
|
(8.78 |
) |
|
|
(6.60 |
) |
|
Realized price, including cash settlements |
|
$ |
58.48 |
|
|
$ |
64.70 |
|
|
$ |
54.75 |
|
|
$ |
44.34 |
|
|
$ |
40.48 |
|
|
8
ASSET MARGINS
BENCHMARK PRICES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
(average prices) |
|
2022 |
|
|
2021 |
|
||||||||||||||
|
|
Quarter 3 |
|
|
Quarter 2 |
|
|
Quarter 1 |
|
|
Quarter 4 |
|
|
Quarter 3 |
|
|||||
Oil ($/Bbl) - West Texas Intermediate (Cushing) |
|
$ |
91.87 |
|
|
$ |
108.70 |
|
|
$ |
94.45 |
|
|
$ |
76.91 |
|
|
$ |
70.64 |
|
Natural Gas ($/Mcf) - Henry Hub |
|
$ |
8.20 |
|
|
$ |
7.17 |
|
|
$ |
4.96 |
|
|
$ |
5.84 |
|
|
$ |
4.02 |
|
NGL ($/Bbl) - Mont Belvieu Blended |
|
$ |
39.67 |
|
|
$ |
46.44 |
|
|
$ |
43.99 |
|
|
$ |
40.39 |
|
|
$ |
36.85 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
PER-UNIT CASH MARGIN BY ASSET (per Boe) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
2022 |
|
|
2021 |
|
||||||||||||||
|
|
Quarter 3 |
|
|
Quarter 2 |
|
|
Quarter 1 |
|
|
Quarter 4 |
|
|
Quarter 3 |
|
|||||
Delaware Basin |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Realized price |
|
$ |
65.80 |
|
|
$ |
75.02 |
|
|
$ |
63.75 |
|
|
$ |
54.28 |
|
|
$ |
48.29 |
|
Lease operating expenses |
|
|
(4.39 |
) |
|
|
(3.98 |
) |
|
|
(3.79 |
) |
|
|
(4.02 |
) |
|
|
(3.52 |
) |
Gathering, processing & transportation |
|
|
(2.40 |
) |
|
|
(2.37 |
) |
|
|
(2.32 |
) |
|
|
(2.27 |
) |
|
|
(2.18 |
) |
Production & property taxes |
|
|
(4.81 |
) |
|
|
(5.35 |
) |
|
|
(4.65 |
) |
|
|
(3.40 |
) |
|
|
(3.31 |
) |
Field-level cash margin |
|
$ |
54.20 |
|
|
$ |
63.32 |
|
|
$ |
52.99 |
|
|
$ |
44.59 |
|
|
$ |
39.28 |
|
Anadarko Basin |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Realized price |
|
$ |
53.72 |
|
|
$ |
54.46 |
|
|
$ |
42.08 |
|
|
$ |
41.39 |
|
|
$ |
35.62 |
|
Lease operating expenses |
|
|
(3.46 |
) |
|
|
(3.49 |
) |
|
|
(2.75 |
) |
|
|
(2.70 |
) |
|
|
(2.58 |
) |
Gathering, processing & transportation |
|
|
(6.91 |
) |
|
|
(6.65 |
) |
|
|
(6.67 |
) |
|
|
(6.60 |
) |
|
|
(6.14 |
) |
Production & property taxes |
|
|
(3.26 |
) |
|
|
(3.17 |
) |
|
|
(2.35 |
) |
|
|
(2.44 |
) |
|
|
(1.70 |
) |
Field-level cash margin |
|
$ |
40.09 |
|
|
$ |
41.15 |
|
|
$ |
30.31 |
|
|
$ |
29.65 |
|
|
$ |
25.20 |
|
Williston Basin |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Realized price |
|
$ |
66.65 |
|
|
$ |
73.15 |
|
|
$ |
63.31 |
|
|
$ |
53.44 |
|
|
$ |
48.55 |
|
Lease operating expenses |
|
|
(9.97 |
) |
|
|
(9.40 |
) |
|
|
(7.67 |
) |
|
|
(5.76 |
) |
|
|
(5.83 |
) |
Gathering, processing & transportation |
|
|
(2.40 |
) |
|
|
(2.44 |
) |
|
|
(2.32 |
) |
|
|
(2.09 |
) |
|
|
(2.13 |
) |
Production & property taxes |
|
|
(6.33 |
) |
|
|
(6.75 |
) |
|
|
(5.67 |
) |
|
|
(4.64 |
) |
|
|
(4.47 |
) |
Field-level cash margin |
|
$ |
47.95 |
|
|
$ |
54.56 |
|
|
$ |
47.65 |
|
|
$ |
40.95 |
|
|
$ |
36.12 |
|
Eagle Ford |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Realized price |
|
$ |
65.49 |
|
|
$ |
75.07 |
|
|
$ |
62.74 |
|
|
$ |
56.06 |
|
|
$ |
47.40 |
|
Lease operating expenses |
|
|
(4.94 |
) |
|
|
(4.98 |
) |
|
|
(4.63 |
) |
|
|
(3.78 |
) |
|
|
(3.43 |
) |
Gathering, processing & transportation |
|
|
(4.94 |
) |
|
|
(6.39 |
) |
|
|
(5.67 |
) |
|
|
(6.65 |
) |
|
|
(4.17 |
) |
Production & property taxes |
|
|
(3.79 |
) |
|
|
(3.99 |
) |
|
|
(3.52 |
) |
|
|
(2.93 |
) |
|
|
(1.99 |
) |
Field-level cash margin |
|
$ |
51.82 |
|
|
$ |
59.71 |
|
|
$ |
48.92 |
|
|
$ |
42.70 |
|
|
$ |
37.81 |
|
Powder River Basin |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Realized price |
|
$ |
78.58 |
|
|
$ |
89.84 |
|
|
$ |
75.75 |
|
|
$ |
63.45 |
|
|
$ |
55.93 |
|
Lease operating expenses |
|
|
(7.03 |
) |
|
|
(7.04 |
) |
|
|
(9.01 |
) |
|
|
(7.49 |
) |
|
|
(8.09 |
) |
Gathering, processing & transportation |
|
|
(3.24 |
) |
|
|
(3.50 |
) |
|
|
(3.19 |
) |
|
|
(2.86 |
) |
|
|
(2.93 |
) |
Production & property taxes |
|
|
(9.50 |
) |
|
|
(10.89 |
) |
|
|
(9.23 |
) |
|
|
(7.49 |
) |
|
|
(6.73 |
) |
Field-level cash margin |
|
$ |
58.81 |
|
|
$ |
68.41 |
|
|
$ |
54.32 |
|
|
$ |
45.61 |
|
|
$ |
38.18 |
|
Devon - Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Realized price |
|
$ |
64.89 |
|
|
$ |
73.13 |
|
|
$ |
61.40 |
|
|
$ |
53.12 |
|
|
$ |
47.08 |
|
Lease operating expenses |
|
|
(5.02 |
) |
|
|
(4.56 |
) |
|
|
(4.33 |
) |
|
|
(4.18 |
) |
|
|
(3.85 |
) |
Gathering, processing & transportation |
|
|
(3.13 |
) |
|
|
(3.15 |
) |
|
|
(3.11 |
) |
|
|
(3.08 |
) |
|
|
(2.81 |
) |
Production & property taxes |
|
|
(4.84 |
) |
|
|
(5.30 |
) |
|
|
(4.51 |
) |
|
|
(3.49 |
) |
|
|
(3.25 |
) |
Field-level cash margin |
|
$ |
51.90 |
|
|
$ |
60.12 |
|
|
$ |
49.45 |
|
|
$ |
42.37 |
|
|
$ |
37.17 |
|
9
NON-GAAP MEASURES
(all monetary values in millions, except per share amounts)
Devon’s earnings materials include 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 the earnings materials, including reconciliations to their most directly comparable GAAP measure.
The earnings materials may include forward-looking non-GAAP measures. The company is unable to provide reconciliations of these forward-looking non-GAAP measures, because components of the calculations are inherently unpredictable, such as changes to current assets and liabilities, the timing of changes in capital accruals, unknown future events and estimating certain future GAAP measures. The inability to reliably quantify certain components of the calculation would significantly affect the usefulness and accuracy of a reconciliation.
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 third-quarter and second-quarter 2022 earnings.
|
|
Quarter Ended September 30, 2022 |
|
|||||||||||||
|
|
Before-tax |
|
|
After-tax |
|
|
After Noncontrolling Interests |
|
|
Per Diluted Share |
|
||||
Total |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Earnings (GAAP) |
|
$ |
2,465 |
|
|
$ |
1,900 |
|
|
$ |
1,893 |
|
|
$ |
2.88 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Asset and exploration impairments |
|
|
1 |
|
|
|
1 |
|
|
|
1 |
|
|
|
— |
|
Deferred tax asset valuation allowance |
|
|
— |
|
|
|
(1 |
) |
|
|
(1 |
) |
|
|
— |
|
Fair value changes in financial instruments |
|
|
(604 |
) |
|
|
(464 |
) |
|
|
(464 |
) |
|
|
(0.70 |
) |
Core earnings (Non-GAAP) |
|
$ |
1,862 |
|
|
$ |
1,436 |
|
|
$ |
1,429 |
|
|
$ |
2.18 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
Quarter Ended June 30, 2022 |
|
|||||||||||||
|
|
Before-tax |
|
|
After-tax |
|
|
After Noncontrolling Interests |
|
|
Per Diluted Share |
|
||||
Total |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Earnings (GAAP) |
|
$ |
2,495 |
|
|
$ |
1,938 |
|
|
$ |
1,932 |
|
|
$ |
2.93 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Asset dispositions |
|
|
(14 |
) |
|
|
(11 |
) |
|
|
(11 |
) |
|
|
(0.02 |
) |
Asset and exploration impairments |
|
|
8 |
|
|
|
6 |
|
|
|
6 |
|
|
|
0.01 |
|
Deferred tax asset valuation allowance |
|
|
— |
|
|
|
10 |
|
|
|
10 |
|
|
|
0.02 |
|
Fair value changes in financial instruments |
|
|
(299 |
) |
|
|
(230 |
) |
|
|
(230 |
) |
|
|
(0.35 |
) |
Core earnings (Non-GAAP) |
|
$ |
2,190 |
|
|
$ |
1,713 |
|
|
$ |
1,707 |
|
|
$ |
2.59 |
|
* The tax impact for the adjustments to core earnings in the tables above are all deferred.
10
EBITDAX
Devon believes EBITDAX provides information useful in assessing operating and financial performance across periods. Devon computes EBITDAX as net earnings 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.
|
|
Q3 '22 |
|
|
Q2 '22 |
|
|
Q1 '22 |
|
|
Q4 '21 |
|
|
TTM |
|
|
Q3 '21 |
|
|
Q2 '21 |
|
|
Q1 '21 |
|
||||||||
Net earnings (GAAP) |
|
$ |
1,900 |
|
|
$ |
1,938 |
|
|
$ |
995 |
|
|
$ |
1,512 |
|
|
$ |
6,345 |
|
|
$ |
844 |
|
|
$ |
261 |
|
|
$ |
216 |
|
Financing costs, net |
|
|
67 |
|
|
|
84 |
|
|
|
85 |
|
|
|
86 |
|
|
|
322 |
|
|
|
86 |
|
|
|
80 |
|
|
|
77 |
|
Income tax expense (benefit) |
|
|
565 |
|
|
|
557 |
|
|
|
267 |
|
|
|
150 |
|
|
|
1,539 |
|
|
|
120 |
|
|
|
43 |
|
|
|
(248 |
) |
Exploration expenses |
|
|
4 |
|
|
|
10 |
|
|
|
2 |
|
|
|
5 |
|
|
|
21 |
|
|
|
3 |
|
|
|
3 |
|
|
|
3 |
|
Depreciation, depletion and amortization |
|
|
581 |
|
|
|
528 |
|
|
|
489 |
|
|
|
577 |
|
|
|
2,175 |
|
|
|
578 |
|
|
|
536 |
|
|
|
467 |
|
Asset dispositions |
|
|
— |
|
|
|
(14 |
) |
|
|
(1 |
) |
|
|
(49 |
) |
|
|
(64 |
) |
|
|
— |
|
|
|
(87 |
) |
|
|
(32 |
) |
Share-based compensation |
|
|
22 |
|
|
|
22 |
|
|
|
20 |
|
|
|
19 |
|
|
|
83 |
|
|
|
18 |
|
|
|
20 |
|
|
|
20 |
|
Derivative & financial instrument non-cash val. changes |
|
|
(613 |
) |
|
|
(302 |
) |
|
|
339 |
|
|
|
(515 |
) |
|
|
(1,091 |
) |
|
|
(35 |
) |
|
|
336 |
|
|
|
296 |
|
Restructuring and transaction costs |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
28 |
|
|
|
28 |
|
|
|
18 |
|
|
|
23 |
|
|
|
189 |
|
Accretion on discounted liabilities and other |
|
|
(38 |
) |
|
|
10 |
|
|
|
(61 |
) |
|
|
(2 |
) |
|
|
(91 |
) |
|
|
2 |
|
|
|
(14 |
) |
|
|
(29 |
) |
EBITDAX (Non-GAAP) |
|
$ |
2,488 |
|
|
$ |
2,833 |
|
|
$ |
2,135 |
|
|
$ |
1,811 |
|
|
$ |
9,267 |
|
|
$ |
1,634 |
|
|
$ |
1,201 |
|
|
$ |
959 |
|
Annualized EBITDAX for first-quarter 2021 (Non-GAAP) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
3,836 |
|
|||||||
NET DEBT
Devon defines net debt as debt (includes short-term and long-term 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.
|
|
Sep. 30, 2022 |
|
|
Jun. 30, 2022 |
|
|
Mar. 31, 2022 |
|
|
Dec. 31, 2021 |
|
|
Sep. 30, 2021 |
|
|
Mar. 31, 2021 |
|
||||||
Total debt (GAAP) |
|
$ |
6,451 |
|
|
$ |
6,461 |
|
|
$ |
6,471 |
|
|
$ |
6,482 |
|
|
$ |
6,492 |
|
|
$ |
7,268 |
|
Less: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Cash, cash equivalents and restricted cash |
|
|
(1,310 |
) |
|
|
(3,457 |
) |
|
|
(2,625 |
) |
|
|
(2,271 |
) |
|
|
(2,321 |
) |
|
|
(1,878 |
) |
Net debt (Non-GAAP) |
|
$ |
5,141 |
|
|
$ |
3,004 |
|
|
$ |
3,846 |
|
|
$ |
4,211 |
|
|
$ |
4,171 |
|
|
$ |
5,390 |
|
NET DEBT-TO-EBITDAX
Devon defines net debt-to-EBITDAX as net debt divided by an annualized EBITDAX measure. Devon believes this ratio provides information useful to investors in assessing the company’s credit position and debt leverage.
|
|
Sep. 30, 2022 |
|
|
Jun. 30, 2022 |
|
|
Mar. 31, 2022 |
|
|
Dec. 31, 2021 |
|
|
Sep. 30, 2021 |
|
|
Mar. 31, 2021 |
|
||||||
Net debt (Non-GAAP) |
|
$ |
5,141 |
|
|
$ |
3,004 |
|
|
$ |
3,846 |
|
|
$ |
4,211 |
|
|
$ |
4,171 |
|
|
$ |
5,390 |
|
EBITDAX (Non-GAAP) (1) |
|
$ |
9,267 |
|
|
$ |
8,413 |
|
|
$ |
6,781 |
|
|
$ |
5,605 |
|
|
$ |
5,059 |
|
|
$ |
3,836 |
|
Net debt-to-EBITDAX (Non-GAAP) |
|
|
0.6 |
|
|
|
0.4 |
|
|
|
0.6 |
|
|
|
0.8 |
|
|
|
0.8 |
|
|
|
1.4 |
|
FREE CASH FLOW
Devon defines free cash flow as total operating cash flow less capital expenditures. Devon believes free cash flow provides a useful measure of available cash generated by operating activities for other investing and financing activities.
|
|
Quarter Ended |
|
|
Quarter Ended |
|
|
Quarter Ended |
|
|
Quarter Ended |
|
|
Quarter Ended |
|
|||||
Total operating cash flow (GAAP) |
|
$ |
2,104 |
|
|
$ |
2,678 |
|
|
$ |
1,837 |
|
|
$ |
1,616 |
|
|
$ |
1,598 |
|
Less capital expenditures: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Capital expenditures |
|
|
(628 |
) |
|
|
(573 |
) |
|
|
(537 |
) |
|
|
(512 |
) |
|
|
(474 |
) |
Free cash flow (Non-GAAP) |
|
$ |
1,476 |
|
|
$ |
2,105 |
|
|
$ |
1,300 |
|
|
$ |
1,104 |
|
|
$ |
1,124 |
|
|
|
Full Year 2021 |
|
|
Full Year 2020 |
|
||
Total operating cash flow (GAAP) |
|
$ |
4,899 |
|
|
$ |
1,464 |
|
Less capital expenditures: |
|
|
|
|
|
|
||
Capital expenditures |
|
|
(1,989 |
) |
|
|
(1,153 |
) |
Free cash flow (Non-GAAP) |
|
$ |
2,910 |
|
|
$ |
311 |
|
11
REINVESTMENT RATE
Devon defines reinvestment rate as accrued capital expenditures (excluding acquisitions) divided by operating cash flow. Devon believes this measure provides useful information to our investors as an indicator of the capital demands of our business relative to the cash flow generated from normal business operations.
|
|
Quarter Ended |
|
|
Quarter Ended |
|
|
Quarter Ended |
|
|
Quarter Ended |
|
||||
Capital expenditures (excludes acquisitions) |
|
$ |
688 |
|
|
$ |
567 |
|
|
$ |
563 |
|
|
$ |
517 |
|
Operating cash flow |
|
$ |
2,104 |
|
|
$ |
2,678 |
|
|
$ |
1,837 |
|
|
$ |
1,616 |
|
Reinvestment rate (Non-GAAP) |
|
|
33 |
% |
|
|
21 |
% |
|
|
31 |
% |
|
|
32 |
% |
VARIABLE DIVIDEND
Devon may pay a variable dividend of up to 50 percent of its excess cash flow. Each quarter’s excess cash flow is computed as adjusted cash flow less capital expenditures and the fixed dividend.
|
|
Quarter Ended |
|
|
Operating cash flow (GAAP) |
|
$ |
2,104 |
|
Changes in assets and liabilities, net |
|
|
235 |
|
Adjusted cash flow (Non-GAAP) |
|
|
2,339 |
|
Capital expenditures (Accrued) |
|
|
(690 |
) |
Adjusted free cash flow (Non-GAAP) |
|
|
1,649 |
|
Fixed quarterly dividend |
|
|
(117 |
) |
Excess free cash flow (Non-GAAP) |
|
|
1,532 |
|
~50% Pay out (Board Discretion: Up to 50%) |
|
|
50 |
% |
Total variable dividend |
|
$ |
763 |
|
12
FOURTH-QUARTER 2022 GUIDANCE
PRODUCTION GUIDANCE |
|
|
|
|
|
|
|
|
|
|
Quarter 4 |
|
|||||
|
|
Low |
|
|
High |
|
||
Oil (MBbls/d) |
|
|
319 |
|
|
|
326 |
|
Natural gas liquids (MBbls/d) |
|
|
154 |
|
|
|
161 |
|
Gas (MMcf/d) |
|
|
1,000 |
|
|
|
1,040 |
|
Total oil equivalent (MBoe/d) |
|
|
640 |
|
|
|
660 |
|
CAPITAL EXPENDITURES GUIDANCE |
|
|
|
|
|
|
|
|
|
|
Quarter 4 |
|
|||||
(in millions) |
|
Low |
|
|
High |
|
||
Upstream capital(1) |
|
$ |
810 |
|
|
$ |
860 |
|
Environmental capital |
|
|
15 |
|
|
|
25 |
|
Midstream & other capital |
|
|
20 |
|
|
|
30 |
|
Total capital |
|
$ |
845 |
|
|
$ |
915 |
|
(1) Outlook incorporates $120 million of incremental capital requirements related to recent bolt-on acquisitions in the Eagle Ford and Williston Basin.
PRICE REALIZATIONS GUIDANCE |
|
|
|
|
|
|
|
|
|
|
Quarter 4 |
|
|||||
|
|
Low |
|
|
High |
|
||
Oil - % of WTI |
|
|
95 |
% |
|
|
100 |
% |
NGL - % of WTI |
|
|
35 |
% |
|
|
40 |
% |
Natural gas - % of Henry Hub(2) |
|
|
70 |
% |
|
|
80 |
% |
(2) Gas realizations do not incorporate impact from gas basis swaps in the Delaware Basin.
OTHER GUIDANCE ITEMS |
|
|
|
|
|
|
|
|
|
|
Quarter 4 |
|
|||||
($ millions, except Boe and %) |
|
Low |
|
|
High |
|
||
Marketing & midstream operating profit |
|
$ |
(15) |
|
|
$ |
(5) |
|
LOE & GP&T per BOE |
|
$ |
8.20 |
|
|
$ |
8.60 |
|
Production & property taxes as % of upstream sales |
|
|
7.0% |
|
|
|
8.0% |
|
Exploration expenses |
|
$ |
— |
|
|
$ |
5 |
|
Depreciation, depletion and amortization |
|
$ |
610 |
|
|
$ |
670 |
|
General & administrative expenses |
|
$ |
90 |
|
|
$ |
100 |
|
Financing costs, net |
|
$ |
75 |
|
|
$ |
85 |
|
Other expenses |
|
$ |
— |
|
|
$ |
10 |
|
Note: Q4 DD&A is expected to increase compared to the prior quarter due to the closing of the Validus acquisition.
INCOME TAX GUIDANCE |
|
|
|
|
|
|
|
|
(% of pre-tax earnings) |
|
Quarter 4 |
|
|||||
Current income tax rate(3) |
|
|
8% |
|||||
Deferred income tax rate |
|
|
14% |
|
||||
Total income tax rate |
|
|
22% |
|
||||
(3) Assumes $90 WTI for Q4 2022.
1
CONTINGENT PAYMENTS FOR BARNETT SHALE DIVESTITURE (4-year period beginning in 2021)
|
WTI Threshold |
|
WTI Annual Earnout Amount |
|
Henry Hub Threshold |
|
Henry Hub Annual Earnout Amount |
|
|
||||
|
$ |
50.00 |
|
$ |
10,000,000 |
|
$ |
2.75 |
|
$ |
20,000,000 |
|
|
|
$ |
55.00 |
|
$ |
12,500,000 |
|
$ |
3.00 |
|
$ |
25,000,000 |
|
|
|
$ |
60.00 |
|
$ |
15,000,000 |
|
$ |
3.25 |
|
$ |
35,000,000 |
|
|
|
$ |
65.00 |
|
$ |
20,000,000 |
|
$ |
3.50 |
|
$ |
45,000,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2022 & 2023 HEDGING POSITIONS
Oil Commodity Hedges |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Price Swaps |
|
|
Price Collars |
|
||||||||||||||
Period |
|
Volume (Bbls/d) |
|
|
Weighted Average Price ($/Bbl) |
|
|
Volume (Bbls/d) |
|
|
Weighted Average Floor Price ($/Bbl) |
|
|
Weighted Average Ceiling Price ($/Bbl) |
|
|||||
Q4 2022 |
|
|
35,000 |
|
|
$ |
44.61 |
|
|
|
46,500 |
|
|
$ |
63.47 |
|
|
$ |
90.61 |
|
Q1-Q4 2023 |
|
|
— |
|
|
$ |
— |
|
|
|
86,207 |
|
|
$ |
69.03 |
|
|
$ |
94.66 |
|
Oil Basis Swaps |
|
|
|
|
|
|
|
|
|
|
Period |
|
Index |
|
Volume (Bbls/d) |
|
|
Weighted Average Differential to WTI ($/Bbl) |
|
||
Q4 2022 |
|
BRENT/WTI Spread |
|
|
1,000 |
|
|
$ |
(7.75) |
|
Q4 2022 |
|
NYMEX Roll |
|
|
29,000 |
|
|
$ |
0.45 |
|
Q1-Q4 2023 |
|
Midland Sweet |
|
|
12,296 |
|
|
$ |
0.52 |
|
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) |
|
|||||
Q4 2022 |
|
|
125,000 |
|
|
$ |
3.34 |
|
|
|
165,000 |
|
|
$ |
3.16 |
|
|
$ |
4.82 |
|
Q1-Q4 2023 |
|
|
8,658 |
|
|
$ |
5.24 |
|
|
|
147,436 |
|
|
$ |
3.67 |
|
|
$ |
8.87 |
|
Natural Gas Basis Swaps |
|
|
|
|
|
|
|
|
||
Period |
|
Index |
|
Volume (MMBtu/d) |
|
|
Weighted Average Differential to Henry Hub ($/MMBtu) |
|
||
Q4 2022 |
|
WAHA |
|
|
70,000 |
|
|
$ |
(0.57) |
|
Q4 2022 |
|
El Paso Permian |
|
|
50,000 |
|
|
$ |
(0.85) |
|
Q4 2022 |
|
Houston Ship Channel |
|
|
40,000 |
|
|
$ |
(0.15) |
|
Q1-Q4 2023 |
|
WAHA |
|
|
70,000 |
|
|
$ |
(0.51) |
|
Q1-Q4 2023 |
|
El Paso Permian |
|
|
140,041 |
|
|
$ |
(1.58) |
|
Q1-Q4 2023 |
|
Houston Ship Channel |
|
|
110,000 |
|
|
$ |
(0.16) |
|
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 end of the month NYMEX index. Commodity hedge positions are shown as of October 28, 2022.
2