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Income Taxes (Tables)

12 Months Ended

Dec. 31, 2022

Income Tax Disclosure [Abstract]

Schedule Of Income Tax Expense (Benefit)

The following table presents Devon’s income tax components.

		Year Ended December 31,
		2022				2021				2020
Current income tax expense (benefit):
U.S. federal		$	501			$	10			$	(219	)
Various states			65				9				—
Canada			(7	)			(3	)			—
Total current income tax expense (benefit)			559				16				(219	)
Deferred income tax expense (benefit):
U.S. federal			1,090				18				(304	)
Various states			82				22				(24	)
Canada			7				9				—
Total deferred income tax expense (benefit)			1,179				49				(328	)
Total income tax expense (benefit)		$	1,738			$	65			$	(547	)

Schedule Of Effective Income Tax Rate Reconciliation

Total income tax expense differed from the amounts computed by applying the U.S. federal income tax rate to earnings (loss) from continuing operations before income taxes as a result of the following:

		Year Ended December 31,
		2022				2021				2020
Earnings (loss) from continuing operations before income taxes		$	7,775			$	2,898			$	(3,090	)
U.S. statutory income tax rate			21	%			21	%			21	%
Change in tax legislation			0	%			0	%			4	%
State income taxes			1	%			1	%			1	%
Other			0	%			2	%			(1	%)
Deferred tax asset valuation allowance			0	%			(22	%)			(7	%)
Effective income tax rate			22	%			2	%			18	%

Schedule Of Deferred Tax Assets And Liabilities

The following table presents the tax effects of temporary differences that gave rise to Devon’s deferred tax assets and liabilities.

		December 31,
		2022				2021
Deferred tax assets:
Net operating loss carryforwards		$	526			$	1,075
Capital loss carryforwards			523				559
Accrued liabilities			209				262
Fair value of derivative financial instruments			—				129
Asset retirement obligation			119				109
Other, including tax credits			14				138
Total deferred tax assets before valuation allowance			1,391				2,272
Less: valuation allowance			(814	)			(893	)
Net deferred tax assets			577				1,379
Deferred tax liabilities:
Property and equipment			(1,969	)			(1,630	)
Fair value of derivative financial instruments			(33	)			—
Other			(38	)			(29	)
Total deferred tax liabilities			(2,040	)			(1,659	)
Net deferred tax asset (liability)		$	(1,463	)		$	(280	)

Schedule Of Changes In Unrecognized Tax Benefits

The following table presents changes in Devon’s unrecognized tax benefits.

		December 31,
		2022				2021
		(Millions)
Balance at beginning of year		$	36			$	23
Tax positions taken in prior periods			51				5
Assumed WPX tax positions taken in prior periods			—				8
Settlements			(14	)			—
Balance at end of year		$	73			$	36

Summary Of The Tax Years By Jurisdiction That Remain Subject To Examination By Taxing Authorities

Jurisdiction		Tax Years Open
U.S. federal		2015-2022
Various U.S. states		2018-2022
Canada		2006-2022

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Tabular disclosure of the components of income tax expense attributable to continuing operations for each year presented including, but not limited to: current tax expense (benefit), deferred tax expense (benefit), investment tax credits, government grants, the benefits of operating loss carryforwards, tax expense that results from allocating certain tax benefits either directly to contributed capital or to reduce goodwill or other noncurrent intangible assets of an acquired entity, adjustments of a deferred tax liability or asset for enacted changes in tax laws or rates or a change in the tax status of the entity, and adjustments of the beginning-of-the-year balances of a valuation allowance because of a change in circumstances that causes a change in judgment about the realizability of the related deferred tax asset in future years.

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Tabular disclosure of the reconciliation using percentage or dollar amounts of the reported amount of income tax expense attributable to continuing operations for the year to the amount of income tax expense that would result from applying domestic federal statutory tax rates to pretax income from continuing operations.

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