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Leases (Tables)

12 Months Ended

Dec. 31, 2024

Schedule of Right-of-use Assets and Lease Liabilities

The following table presents Devon’s right-of-use assets and lease liabilities.


	December 31, 2024						December 31, 2023
	Finance		Operating		Total		Finance		Operating		Total
Right-of-use assets	$	248	$	55	$	303	$	246	$	21	$	267
Lease liabilities:
Current lease liabilities (1)	$	25	$	28	$	53	$	21	$	12	$	33
Long-term lease liabilities		293		27		320		286		9		295
Total lease liabilities (2)	$	318	$	55	$	373	$	307	$	21	$	328

(1)

Current lease liabilities are included in other current liabilities on the consolidated balance sheets.

(2)

Devon has entered into certain leases of equipment related to the exploration, development and production of oil and gas that had terms not yet commenced as of December 31, 2024 and are therefore excluded from the amounts shown above.

Schedule of Total Lease Cost

he following table presents Devon’s total lease cost.


		Year Ended December 31,
		2024			2023			2022
Operating lease cost	Property and equipment; LOE; G&A	$	28		$	13		$	22
Short-term lease cost (1)	Property and equipment; LOE; G&A		234			193			140
Financing lease cost:
Amortization of right-of-use assets	DD&A		11			9			8
Interest on lease liabilities	Net financing costs		19			15			11
Variable lease cost	G&A		—			5			—
Lease income	G&A		(10	)		(10	)		(8	)
Net lease cost		$	282		$	225		$	173

(1)

Short-term lease cost excludes leases with terms of one month or less.

Schedule of Additional Lease Information

The following table presents Devon’s additional lease information.


	Year Ended December 31,
	2024						2023
	Finance			Operating			Finance			Operating
Cash outflows for lease liabilities:
Operating cash flows	$	22		$	27		$	15		$	13
Investing cash flows	$	—		$	1		$	—		$	1
Right-of-use assets obtained in exchange for new lease liabilities	$	14		$	59		$	—		$	13
Weighted average remaining lease term (years)		8.2			2.1			9.4			2.2
Weighted average discount rate		6.2	%		5.3	%		6.1	%		4.9	%

Maturities of Lease Liabilities

The following table presents Devon’s maturity analysis as of December 31, 2024 for leases expiring in each of the next 5 years and thereafter.


	Finance			Operating			Total
2025	$	25		$	30		$	55
2026		25			24			49
2027		25			4			29
2028		24			—			24
2029		22			—			22
Thereafter(1)		349			—			349
Total lease payments		470			58			528
Less: interest		(152	)		(3	)		(155	)
Present value of lease liabilities	$	318		$	55		$	373

(1)

Devon has one real estate lease that contains a residual value guarantee. Under the lease terms, the residual value guarantee stipulates that if the lessor were to sell the leased property and receive sale proceeds less than 90% of the lease liability at the time of sale, Devon would be required to make a shortfall payment to the lessor for the difference.

Schedule of Expected Lease Income

Devon rents or subleases certain real estate to third parties. The following table presents Devon’s expected lease income as of December 31, 2024 for each of the next 5 years and thereafter.


	Operating
	Lease Income
2025	$	14
2026		15
2027		16
2028		16
2029		15
Thereafter		67
Total	$	143