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Asset Retirement Obligations
 9 Months Ended
Sep. 30, 2024
Asset Retirement Obligation Disclosure [Abstract]  
Asset Retirement Obligations
13.
Asset Retirement Obligations

The following table presents the changes in Devon’s asset retirement obligations.

 

 

 

Nine Months Ended September 30,

 

 

 

2024

 

 

2023

 

Asset retirement obligations as of beginning of period

 

$

665

 

 

$

529

 

Assumed Grayson Mill obligations

 

 

75

 

 

 

—

 

Liabilities incurred

 

 

21

 

 

 

104

 

Liabilities settled and divested

 

 

(25

)

 

 

(24

)

Revision of estimated obligation

 

 

35

 

 

 

27

 

Accretion expense on discounted obligation

 

 

28

 

 

 

21

 

Asset retirement obligations as of end of period

 

 

799

 

 

 

657

 

Less current portion

 

 

34

 

 

 

16

 

Asset retirement obligations, long-term

 

$

765

 

 

$

641

 

 

During the first nine months of 2024, Devon increased its asset retirement obligations by approximately $35 million primarily due to changes in current cost estimates and future retirement dates for its oil and gas assets. During the first nine months of 2023,

Devon increased its asset retirement obligations by approximately $27 million primarily due to inflation-driven increases in cost estimates.

 

Devon's asset retirement obligations recorded during the first nine months of 2023 included a potential obligation to decommission two California offshore oil and gas production platforms and related facilities pursuant to an order of the Department of the Interior, Bureau of Safety and Environmental Enforcement.