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v3.23.2

Summary of Significant Accounting Policies (Policies) | 6 Months Ended
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Jun. 30, 2023
Accounting Policies [Abstract] |
Restricted Cash | Restricted Cash As of June 30, 2023, approximately $116 million of cash on the consolidated balance sheets is presented as restricted cash for obligations primarily related to an abandoned Canadian firm transportation agreement.
Variable Interest Entity | Variable Interest Entity CDM is a joint venture entity formed by Devon and an affiliate of QL Capital Partners, LP. CDM provides gathering, compression and dehydration services for natural gas production in the Cotton Draw area of the Delaware Basin. Devon holds a controlling interest in CDM and the portions of CDM’s net earnings and equity not attributable to Devon’s controlling interest are shown separately as noncontrolling interests in the accompanying consolidated statements of comprehensive earnings and consolidated balance sheets. CDM is considered a VIE to Devon. The assets of CDM cannot be used by Devon for general corporate purposes and are included in, and disclosed parenthetically, on Devon's consolidated balance sheets. The carrying amount of liabilities related to CDM for which the creditors do not have recourse to Devon's assets are also included in, and disclosed parenthetically, if material, on Devon's consolidated balance sheets.
Investments | Investments The following table presents Devon's investments.
|  |  |  | Carrying Amount |
Investments |  | % Interest |  | June 30, 2023 |  |  | December 31, 2022 |
Catalyst |  | 50% |  | $ | 324 |  |  | $ | 339 |
Water JV |  | 30% |  |  | 212 |  |  |  | — |
Matterhorn |  | 12.5% |  |  | 90 |  |  |  | 54 |
Other |  | Various |  |  | 49 |  |  |  | 47 |
Total |  |  |  | $ | 675 |  |  | $ | 440 |
Devon has an interest in Catalyst, which is a joint venture with an affiliate of Howard Energy Partners, LLC (“HEP”) and certain other investors, to develop oil gathering and natural gas processing infrastructure in the Stateline area of the Delaware Basin. Under the terms of the arrangement, Devon and a holding company owned by the other joint venture investors each have a 50% voting interest in the joint venture legal entity, and HEP serves as the operator. Through 2038, Devon’s production from 50,000 net acres in the Stateline area of the Delaware Basin has been dedicated to Catalyst subject to fixed-fee oil gathering and natural gas processing agreements. Devon accounts for the investment in Catalyst as an equity method investment. Devon's investment in Catalyst is shown within investments on the consolidated balance sheets and Devon's share of Catalyst earnings are reflected as a component of other, net in the accompanying consolidated statements of comprehensive earnings. In the second quarter of 2023, Devon made an investment in the Water JV, a joint venture entity formed with an affiliate of WaterBridge NDB LLC (“WaterBridge”), for the purpose of providing increased capacity and flexibility in disposing of produced water in the Delaware Basin and Eagle Ford. Under terms of the arrangement, Devon contributed water infrastructure assets and committed to a water gathering and disposal dedication to the Water JV through 2038, in exchange for a 30% voting interest in the joint venture legal entity. WaterBridge contributed water infrastructure assets to the Water JV, in exchange for a 70% voting interest in the joint venture legal entity and will serve as the operator. At closing of the Water JV, Devon recognized a $64 million gain in asset dispositions in the consolidated statements of comprehensive earnings, which represented the excess of the estimated fair value of Devon's interest in the Water JV over the carrying value of the water infrastructure assets Devon contributed to the Water JV. Devon accounts for the investment in the Water JV as an equity method investment. Devon's investment in the Water JV is shown within investments on the consolidated balance sheets and Devon's share of the Water JV earnings are reflected as a component of other, net in the accompanying consolidated statements of comprehensive earnings. During 2023 and 2022, Devon made investments in Matterhorn. Matterhorn is a joint venture entity and was formed for the purpose of constructing a natural gas pipeline that will transport natural gas from the Permian Basin to the Katy, Texas area. Devon's investment in Matterhorn does not give it the ability to exercise significant influence over Matterhorn.
Disaggregation of Revenue | Disaggregation of Revenue The following table presents revenue from contracts with customers that are disaggregated based on the type of good or service.
|  | Three Months Ended June 30, |  |  | Six Months Ended June 30, |
|  | 2023 |  |  | 2022 |  |  | 2023 |  |  | 2022 |
Oil |  | $ | 2,106 |  |  | $ | 2,970 |  |  | $ | 4,249 |  |  | $ | 5,376 |
Gas |  |  | 122 |  |  |  | 557 |  |  |  | 335 |  |  |  | 864 |
NGL |  |  | 265 |  |  |  | 573 |  |  |  | 588 |  |  |  | 1,035 |
Oil, gas and NGL sales |  |  | 2,493 |  |  |  | 4,100 |  |  |  | 5,172 |  |  |  | 7,275 |
Oil |  |  | 735 |  |  |  | 952 |  |  |  | 1,465 |  |  |  | 1,728 |
Gas |  |  | 123 |  |  |  | 322 |  |  |  | 275 |  |  |  | 531 |
NGL |  |  | 179 |  |  |  | 422 |  |  |  | 377 |  |  |  | 757 |
Marketing and midstream revenues |  |  | 1,037 |  |  |  | 1,696 |  |  |  | 2,117 |  |  |  | 3,016 |
Total revenues from contracts with customers |  | $ | 3,530 |  |  | $ | 5,796 |  |  | $ | 7,289 |  |  | $ | 10,291 |

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