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Income Taxes
 6 Months Ended
Jun. 30, 2023
Income Tax Disclosure [Abstract]  
Income Taxes

7. Income Taxes

The following table presents Devon’s total income tax expense and a reconciliation of its effective income tax rate to the U.S. statutory income tax rate.

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2023

 

 

2022

 

 

2023

 

 

2022

 

Earnings before income taxes

 

$

897

 

 

$

2,495

 

 

$

2,121

 

 

$

3,757

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current income tax expense

 

$

80

 

 

$

252

 

 

$

221

 

 

$

355

 

Deferred income tax expense

 

 

119

 

 

 

305

 

 

 

199

 

 

 

469

 

Total income tax expense

 

$

199

 

 

$

557

 

 

$

420

 

 

$

824

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. statutory income tax rate

 

 

21

%

 

 

21

%

 

 

21

%

 

 

21

%

State income taxes

 

 

1

%

 

 

1

%

 

 

1

%

 

 

1

%

Other

 

 

0

%

 

 

0

%

 

 

(2

%)

 

 

0

%

Effective income tax rate

 

 

22

%

 

 

22

%

 

 

20

%

 

 

22

%

 

On August 16, 2022, the IRA was signed into law and included various income tax related provisions with effective dates generally beginning in 2023. Among the enacted provisions are a 15% CAMT on AFSI and several new and expanded clean energy credits and incentives. Dependent upon future regulations, Devon believes it is subject to the CAMT as Devon has an average annual AFSI that exceeds $1 billion for the three-year period ended December 31, 2022.