Devon Energy (DVN) 8-K Devon Energy Reports 2009 Financial Results, Record Production and Record Proved Reserves

Exhibit 99.1

News Release Devon Energy Corporation
20 North Broadway
Oklahoma City, OK 73102-8260

Investor Contact	Zack Hager	405 552 4526
Media Contact	Chip Minty	405 228 8647

DEVON ENERGY REPORTS 2009 FINANCIAL RESULTS, RECORD PRODUCTION AND RECORD PROVED RESERVES

OKLAHOMA CITY — February 17, 2010— Devon Energy Corporation (NYSE:DVN) today reported 2009 full-year and fourth-quarter financial results. The company also reported that its 2009 full-year oil and gas production from continuing operations reached an all-time high. In addition, Devon reported record-high proved oil and natural gas reserves at December 31, 2009. Production and changes to proved reserves are discussed in more detail later in this report.

For the year ended December 31, 2009, Devon reported a net loss of $2.5 billion, or $5.58 per common share ($5.58 per diluted common share). Devon’s 2009 financial results were impacted by certain items securities analysts typically exclude from their published estimates. The most significant of these items was a $4.2 billion after-tax reduction of the carrying value of oil and gas properties recorded in the first quarter of 2009. This was the result of a non-cash, full-cost ceiling adjustment. The charge resulted from application of the ceiling test as prescribed by the Securities and Exchange Commission for companies that follow the full-cost method of accounting.

Excluding the reduction of carrying value of oil and gas properties and other adjusting items, Devon earned $1.8 billion or $4.03 per diluted common share in 2009. The adjusting items are discussed in more detail later in this news release.

For the year ended December 31, 2008, Devon reported a net loss of $2.1 billion, or $4.85 per common share ($4.85 per diluted common share). The company’s 2008 financial results included a $7.1 billion non-cash, after-tax reduction in the carrying value of oil and gas properties.

Devon reported net earnings of $667 million, or $1.50 per common share ($1.49 per diluted common share), for the quarter ended December 31, 2009. Excluding adjusting items, the company earned $713 million, or $1.60 per diluted common share in the fourth quarter of 2009.

For the quarter ended December 31, 2008, Devon reported a net loss of $6.8 billion or, $15.42 per common share ($15.42 per diluted common share).

North American Onshore Proved Reserves at Record 2.6 Billion Boe;

Drill-Bit Reserve Additions More than Double Record Production

“2009 was a pivotal year for Devon as we began repositioning the company to focus entirely on our high-return, North American onshore natural gas and oil portfolio,” commented J. Larry Nichols, chairman and chief executive officer. “We grew North American onshore production by more than six percent in 2009 and replaced more than twice our production with the drill bit at very attractive costs. We expect to receive after-tax proceeds of $4.5 billion to $7.5 billion as we divest our offshore and international properties this year. This will further strengthen our rock-solid balance sheet and enable us to accelerate growth across our U.S. and Canadian asset base.”

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In accordance with accounting standards, Devon’s year-end reserve reporting pertains to the company’s continuing operations, which include its Gulf of Mexico properties. Following is a discussion of proved reserves pertaining only to Devon’s North American onshore assets.

Devon increased North American onshore estimated proved reserves by 20 percent to a record 2,641 million oil-equivalent barrels (Boe) at December 31, 2009. The company added 669 million Boe to its North American onshore proved reserves from all sources. Costs incurred applicable to North American onshore properties were $3.3 billion.

Successful drilling (extensions, discoveries and performance revisions) accounted for 492 million Boe of North American onshore proved reserve additions. The company invested $3.2 billion of associated drill-bit capital during the year. Revisions related to changes in oil, natural gas and natural gas liquids prices increased 2009 North American onshore proved reserves by 176 million Boe.

North American onshore oil and gas production increased more than six percent to 220 million Boe in 2009. The reserve life index (proved reserves divided by annual production) for the North American onshore properties is approximately 12 years.

Proved developed reserves of 1,869 million Boe at December 31, 2009, represented 71 percent of total North American onshore proved reserves. Proved undeveloped reserves were 29 percent of the total. Year-end North American onshore proved reserves included 653 million barrels of crude oil, 9.4 trillion cubic feet of natural gas and 419 million barrels of natural gas liquids.

Costs Incurred and Reserves Summary⁽¹⁾

	Year Ended December 31,
	North American Onshore
	2009		2008
Costs Incurred (in millions)	$	3,279	$	8,092
Total Reserves Additions (MMBoe)		669		139

(1) Detailed tables are also provided in this release.

Drill-bit Capital and Reserves Summary⁽¹⁾

	Year Ended December 31,
	North American Onshore
	2009		2008
Drill-bit Capital (in millions)	$	3,244	$	7,270
Reserves Data (MMBoe)
Extensions and discoveries		446		536
Revisions other than price		46		21
Drill-bit and performance reserve additions		492		557

(1) Detailed tables and non-GAAP reconciliations are also provided in this release.

Divestitures Make Way for North American Onshore Growth

The company plans to direct the proceeds of the divestitures of its Gulf of Mexico and international properties to its U.S. and Canadian onshore operations and to retire debt. In accordance with accounting standards, Devon has reclassified the assets, liabilities and results of its international operations as discontinued operations for all accounting periods presented in this release. Although revenues and expenses for prior periods were reclassified, there was no impact upon previously reported net earnings. Included with the financial information that follows are tables of revenues, expenses, production, proved reserves and costs incurred and the amounts reclassified as discontinued operations for each period presented.

In spite of Devon’s plans to divest its Gulf of Mexico assets, these properties do not qualify as discontinued operations under accounting standards. However, information is provided in this release

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that will enable the reader to isolate certain results of the company’s North American onshore operations.

Shale Gas Development and Jackfish Ramp-up Led 2009 Operating Highlights

Devon drilled 1,135 wells in 2009 applicable to its continuing operations with a 99 percent success rate. Following are operational highlights and updates for selected exploration and development projects:

• The company drilled 336 wells in the Barnett Shale field in north Texas in 2009, bringing its total producing wells in the field to almost 4,200 at year end. Devon exited 2009 with net Barnett Shale production at just over 1 billion cubic feet of natural gas equivalent per day. The company drilled its 2,000^th horizontal well in the field in early 2010 and is currently running 16 operated drilling rigs. Devon expects to drill 370 total Barnett Shale wells during the year.

• Devon drilled 47 successful wells in the Cana-Woodford Shale in western Oklahoma in 2009. During 2009 the company increased its net production from this important new shale-gas resource to an average of 39 million cubic feet of gas equivalent per day. Devon has increased its lease position in the Cana-Woodford Shale to 118,000 net acres and expects to drill approximately 85 wells in the field in 2010.

• The company drilled eight Haynesville Shale wells in the greater Carthage area of east Texas in 2009. These wells have significantly de-risked Devon’s 110,000 net Haynesville Shale acres in the Carthage area. The company expects to recover up to four trillion cubic feet equivalent of natural gas from its Carthage area Haynesville acreage.

• In Canada, Devon’s 100-percent owned Jackfish oil sands project in Alberta was operational throughout 2009. As measured by production per well and steam-oil ratio, Jackfish is one of Canada’s most commercially successful steam-assisted gravity drainage (SAGD) projects. In late 2009, Jackfish production reached 33,700 barrels of oil per day. The addition of four more producing wells is expected to push production to the facility’s capacity of 35,000 barrels per day in early 2010.

• Construction continued throughout 2009 on a second phase of the Jackfish SAGD project. Jackfish 2 is also sized to produce 35,000 barrels of oil per day and will commence operations in 2011. Devon expects to file a regulatory application for a third phase of the project in the third quarter of 2010.

• Offshore Brazil, Devon participated in two significant deepwater discoveries in 2009. The Devon-operated Itaipu exploratory discovery followed a successful appraisal of the 2008 Wahoo discovery. Both Itaipu and Wahoo are pre-salt prospects located in the Campos Basin. Devon plans to divest its Brazilian assets along with all of its other international properties in 2010. The Itaipu and Wahoo discoveries significantly enhance the value of the company’s international assets to prospective buyers.

Continuing Operations Show Strong Production Growth

Combined oil, gas and natural gas liquids production from continuing operations averaged 639 thousand Boe per day in 2009. This compares with 2008 average daily production of 610 thousand Boe per day.

Sharp declines in the average prices of oil, gas and natural gas liquids led to a 48 percent reduction in combined sales from continuing operations. Comparable sales for the years 2009 and 2008 were $6.1 billion and $11.7 billion, respectively. Furthermore, marketing and midstream operating profit decreased 25 percent to $512 million in 2009, reflecting lower prices for natural gas and natural gas liquids.

Cash Flow Totals $4.7 Billion

Cash flow before balance sheet changes decreased 50 percent to $4.7 billion in 2009. During the year Devon funded $5.1 billion of capital expenditures and paid $284 million in dividends utilizing cash flow and short-term borrowing. In spite of the increase in short-term borrowing, Devon’s balance sheet remains strong with a ratio of net debt to adjusted capitalization of 29 percent. Reconciliations of cash flow before balance sheet changes, net debt and adjusted capitalization, which are non-GAAP measures, are provided in this release.

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Items Excluded from Published Earnings Estimates

Devon’s reported net earnings include items of income and expense that are typically excluded by securities analysts in their published estimates of the company’s financial results. These items and their effects upon reported earnings for the full year and fourth quarter of 2009 were as follows:

Items affecting continuing operations:

• A change in the fair value of oil and natural gas derivative instruments decreased full-year earnings by $121 million pre-tax ($77 million after tax) and an unrealized gain increased fourth-quarter earnings by $48 million pre-tax ($31 million after tax).

• A change in fair value of other financial instruments increased full-year earnings by $66 million pre-tax ($42 million after tax) and increased fourth-quarter earnings by $81 million pre-tax ($52 million after tax).

• Severance and restructuring costs decreased full-year earnings by $128 million pre-tax ($82 million after tax) and decreased fourth-quarter earnings by $105 million pre-tax ($67 million after tax).

• A reduction of the carrying value of oil and gas properties decreased full-year earnings by $6.4 billion pre-tax ($4.1 billion after tax).

• U.S. income taxes on foreign earnings now expected to be repatriated to the U.S. decreased full-year and fourth-quarter earnings by $55 million.

• Income tax accrual adjustments increased full-year earnings by $59 million.

Items affecting discontinued operations:

• A post-closing adjustment from the divestiture of West African assets in 2008 resulted in a full-year gain of $16 million pre-tax ($16 million after tax).

• Severance and restructuring costs decreased full-year earnings by $57 million pre-tax ($37 million after tax) and decreased fourth-quarter earnings by $48 million pre-tax ($31 million after tax).

• A reduction of the carrying value of oil and gas properties decreased full-year earnings by $108 million pre-tax ($105 million after tax).

• Income tax benefits related to unsuccessful international drilling increased full-year earnings by $22 million.

• The decision to divest all international assets generated financial benefits that increased full-year and fourth-quarter earnings by $37 million pre-tax ($24 million after tax).

The following tables summarize the full-year and fourth-quarter effects of these items on 2009 earnings, income taxes and cash flow.

Summary of Items Typically Excluded by Securities Analysts (in millions)

Continuing Operations — Full Year 2009

	Pre-tax												After-tax			Cash Flow Before
	Earnings			Income Tax Effect									Earnings			Balance Sheet
	Effect			Current			Deferred			Total			Effect			Changes Effect
Change in fair value of oil and gas derivative instruments	$	(121	)		—			(44	)		(44	)		(77	)		—
Change in fair value of other financial instruments		66			—			24			24			42			—
Severance and restructuring costs		(128	)		(9	)		(37	)		(46	)		(82	)		(54	)
Reduction of the carrying value of oil and gas properties		(6,408	)		—			(2,323	)		(2,323	)		(4,085	)		—
U.S. income taxes on foreign earnings		—			—			55			55			(55	)		—
Income tax accrual adjustment		—			(9	)		(50	)		(59	)		59			9
Totals	$	(6,591	)		(18	)		(2,375	)		(2,393	)		(4,198	)		(45	)

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Discontinued Operations — Full Year 2009

	Pre-tax												After-tax			Cash Flow Before
	Earnings			Income Tax Effect									Earnings			Balance Sheet
	Effect			Current			Deferred			Total			Effect			Changes Effect
Post-closing adjustment on sale of West African assets	$	16			—			—			—			16			—
Severance and restructuring costs		(57	)		(2	)		(18	)		(20	)		(37	)		(15	)
Reduction of the carrying value of oil and gas assets		(108	)		—			(3	)		(3	)		(105	)		—
Income tax benefit on international drilling		—			(22	)		—			(22	)		22			22
Financial benefits of decision to divest assets		37			—			13			13			24			—
Totals	$	(112	)		(24	)		(8	)		(32	)		(80	)		7

In aggregate, these items decreased full-year 2009 net earnings by $4.3 billion, or $9.63 per common share ($9.61 per diluted share). These items and their associated tax effects decreased full-year 2009 cash flow before balance sheet changes by $38 million.

Summary of Items Typically Excluded by Securities Analysts (in millions)

Continuing Operations — Fourth Quarter 2009

	Pre-tax											After-tax			Cash Flow Before
	Earnings			Income Tax Effect								Earnings			Balance Sheet
	Effect			Current		Deferred			Total			Effect			Changes Effect
Change in fair value of oil and gas derivative instruments	$	48			—		17			17			31			—
Change in fair value of other financial instruments		81			—		29			29			52			—
Restructuring costs		(105	)		—		(38	)		(38	)		(67	)		(42	)
U.S. income taxes on foreign earnings		—			—		55			55			(55	)		—
Totals	$	24			—		63			63			(39	)		(42	)

Discontinued Operations — Fourth Quarter 2009

	Pre-tax											After-tax			Cash Flow Before
	Earnings			Income Tax Effect								Earnings			Balance Sheet
	Effect			Current		Deferred			Total			Effect			Changes Effect
Restructuring costs	$	(48	)		—		(17	)		(17	)		(31	)		(15	)
Financial benefits of decision to divest assets		37			—		13			13			24			—
Totals	$	(11	)		—		(4	)		(4	)		(7	)		(15	)

In aggregate, these items decreased fourth-quarter 2009 net earnings by $46 million, or 10 cents per common share (11 cents per diluted share). These items and their associated tax effects decreased fourth-quarter 2009 cash flow before balance sheet changes by $57 million.

Conference Call to be Webcast Today

Devon will discuss its 2009 financial and operating results in a conference call webcast today. The webcast will begin at 10 a.m. Central Time (11 a.m. Eastern Time). The webcast may be accessed from Devon’s internet home page at www.devonenergy.com.

This press release includes “forward-looking statements” as defined by the Securities and Exchange Commission. Such statements are those concerning strategic plans, expectations and objectives for future operations. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that the company expects, believes or anticipates will or may occur in the future are forward-looking statements. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the company. Statements regarding future drilling and production are subject to all of the risks and uncertainties normally incident to the exploration for and development and production of oil and gas. These risks include, but are not limited to the volatility of oil, natural gas and NGL prices; uncertainties inherent in estimating oil, natural gas and NGL reserves; drilling risks; environmental risks; and political or regulatory changes. Investors are cautioned that any such statements are not guarantees of future performance and that actual results or developments may differ materially from those projected in the forward-looking statements. The forward-looking statements in this press release are made as of the date of this press release, even if subsequently made available by Devon on its website or otherwise. Devon does not undertake any obligation to update the forward-looking statements as a result of new information, future events or otherwise.

Effective January 1, 2010, the United States Securities and Exchange Commission permits oil and gas companies, in their filings with the SEC, to disclose only proved, probable and possible reserves that meet the SEC’s definitions for such terms, and price and cost sensitivities for such reserves, and prohibits disclosure of resources that do not constitute

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such reserves. This release may contain certain terms, such as resource potential and exploration target size. These estimates are by their nature more speculative than estimates of proved, probable and possible reserves and accordingly are subject to substantially greater risk of being actually realized. The SEC guidelines strictly prohibit us from including these estimates in filings with the SEC. U.S. investors are urged to consider closely the disclosure in our Form 10-K for the fiscal year ended December 31, 2009, available from us at Devon Energy Corporation, Attn. Investor Relations, 20 North Broadway, Oklahoma City, OK 73102. You can also obtain this form from the SEC by calling 1-800-SEC-0330 or from the SEC’s website atwww.sec.gov.

Devon Energy Corporation is an Oklahoma City-based independent energy company engaged in oil and gas exploration and production. Devon is a leading U.S.-based independent oil and gas producer and is included in the S&P 500 Index. For more information about Devon, please visit our website at www.devonenergy.com.

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DEVON ENERGY CORPORATION
FINANCIAL AND OPERATIONAL INFORMATION

PRODUCTION (net of royalties)
Excludes discontinued operations

	Year Ended				Quarter Ended
	December 31,				December 31,
	2009		2008		2009		2008
Total Period Production
Natural Gas (Bcf)
U.S. Onshore		698.7		668.1		162.8		181.2
Canada		222.8		212.1		51.6		53.6
North American Onshore		921.5		880.2		214.4		234.8
U.S. Offshore		44.9		57.6		11.4		12.6
Total Natural Gas		966.4		937.8		225.8		247.4
Oil (MMBbls)
U.S. Onshore		11.6		11.3		2.9		3.0
Canada		25.3		21.6		6.6		6.2
North American Onshore		36.9		32.9		9.5		9.2
U.S. Offshore		5.0		5.9		1.3		1.0
Total Oil		41.9		38.8		10.8		10.2
Natural Gas Liquids (MMBbls)
U.S. Onshore		25.7		23.6		6.5		6.5
Canada		3.8		4.0		1.0		1.0
North American Onshore		29.5		27.6		7.5		7.5
U.S. Offshore		0.7		0.6		0.2		0.1
Total Natural Gas Liquids		30.2		28.2		7.7		7.6
Oil Equivalent (MMBoe)
U.S. Onshore		153.7		146.2		36.5		39.7
Canada		66.3		60.9		16.2		16.1
North American Onshore		220.0		207.1		52.7		55.8
U.S. Offshore		13.2		16.1		3.4		3.2
Total Oil Equivalent		233.2		223.2		56.1		59.0
Average Daily Production
Natural Gas (MMcf)
U.S. Onshore		1,914.3		1,825.5		1,769.7		1,969.6
Canada		610.5		579.4		560.5		582.7
North American Onshore		2,524.8		2,404.9		2,330.2		2,552.3
U.S. Offshore		123.0		157.3		123.8		136.3
Total Natural Gas		2,647.8		2,562.2		2,454.0		2,688.6
Oil (MBbls)
U.S. Onshore		31.6		30.7		31.3		32.1
Canada		69.3		59.0		72.0		67.4
North American Onshore		100.9		89.7		103.3		99.5
U.S. Offshore		13.8		16.2		13.7		11.3
Total Oil		114.7		105.9		117.0		110.8
Natural Gas Liquids (MBbls)
U.S. Onshore		70.4		64.6		71.1		71.2
Canada		10.4		10.9		10.2		10.9
North American Onshore		80.8		75.5		81.3		82.1
U.S. Offshore		2.0		1.5		2.2		1.1
Total Natural Gas Liquids		82.8		77.0		83.5		83.2
Oil Equivalent (MBoe)
U.S. Onshore		421.1		399.5		397.4		431.5
Canada		181.5		166.5		175.6		175.4
North American Onshore		602.6		566.0		573.0		606.9
U.S. Offshore		36.3		44.0		36.5		35.1
Total Oil Equivalent		638.9		610.0		609.5		642.0

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DEVON ENERGY CORPORATION
FINANCIAL AND OPERATIONAL INFORMATION

BENCHMARK PRICES
(average prices)

	Year Ended				Quarter Ended
	December 31,				December 31,
	2009		2008		2009		2008
Natural Gas ($/Mcf) — Henry Hub	$	3.99	$	9.04	$	4.16	$	6.95
Oil ($/Bbl) — West Texas Intermediate (Cushing)	$	61.82	$	99.75	$	76.00	$	58.51

REALIZED PRICES
(excludes the effects of unrealized gains and losses from hedging)

	Oil		Gas		NGLs		Total
Quarter Ended December 31, 2009	(Per Bbl)		(Per Mcf)		(Per Bbl)		(Per Boe)
U.S. Onshore	$	71.62	$	3.65	$	30.48	$	27.35
Canada	$	58.43	$	4.13	$	41.88	$	39.58
North American Onshore	$	62.43	$	3.77	$	31.92	$	31.10
U.S. Offshore	$	74.45	$	4.45	$	37.59	$	45.26
Realized price without hedges	$	63.84	$	3.80	$	32.07	$	31.95
Cash settlements	$	—	$	0.65	$	—	$	2.60
Realized price, including cash settlements	$	63.84	$	4.45	$	32.07	$	34.55

	Oil		Gas		NGLs		Total
Quarter Ended December 31, 2008	(Per Bbl)		(Per Mcf)		(Per Bbl)		(Per Boe)
U.S. Onshore	$	55.11	$	4.98	$	20.52	$	30.21
Canada	$	30.67	$	6.02	$	35.95	$	34.02
North American Onshore	$	38.56	$	5.22	$	22.57	$	31.31
U.S. Offshore	$	56.80	$	6.95	$	34.28	$	46.31
Realized price without hedges	$	40.42	$	5.30	$	22.73	$	32.13
Cash settlements	$	2.69	$	0.52	$	—	$	2.62
Realized price, including cash settlements	$	43.11	$	5.82	$	22.73	$	34.75

	Oil		Gas		NGLs		Total
Year Ended December 31, 2009	(Per Bbl)		(Per Mcf)		(Per Bbl)		(Per Boe)
U.S. Onshore	$	56.17	$	3.14	$	23.40	$	22.41
Canada	$	47.35	$	3.66	$	33.09	$	32.29
North American Onshore	$	50.11	$	3.27	$	24.65	$	25.38
U.S. Offshore	$	60.75	$	4.20	$	27.42	$	38.83
Realized price without hedges	$	51.39	$	3.31	$	24.71	$	26.15
Cash settlements	$	—	$	0.52	$	—	$	2.16
Realized price, including cash settlements	$	51.39	$	3.83	$	24.71	$	28.31

	Oil		Gas			NGLs		Total
Year Ended December 31, 2008	(Per Bbl)		(Per Mcf)			(Per Bbl)		(Per Boe)
U.S. Onshore	$	95.63	$	7.43		$	40.97	$	47.91
Canada	$	71.04	$	8.17		$	61.45	$	57.65
North American Onshore	$	79.45	$	7.61		$	43.94	$	50.78
U.S. Offshore	$	104.90	$	9.53		$	51.11	$	74.55
Realized price without hedges	$	83.35	$	7.73		$	44.08	$	52.49
Cash settlements	$	0.70	$	(0.46	)	$	—	$	(1.78	)
Realized price, including cash settlements	$	84.05	$	7.27		$	44.08	$	50.71

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DEVON ENERGY CORPORATION
FINANCIAL AND OPERATIONAL INFORMATION

CONSOLIDATED STATEMENTS OF OPERATIONS
(in millions, except per share amounts)

	Year Ended						Quarter Ended
	December 31,						December 31,
	2009			2008			2009			2008
Revenues
Oil, gas, and NGL sales	$	6,097		$	11,720		$	1,791		$	1,898
Net gain (loss) on oil and gas derivative financial instruments		384			(154	)		194			257
Marketing and midstream revenues		1,534			2,292			460			397
Total revenues		8,015			13,858			2,445			2,552
Expenses and other income, net
Lease operating expenses		1,670			1,851			404			486
Taxes other than income taxes		314			476			65			69
Marketing and midstream operating costs and expenses		1,022			1,611			327			272
Depreciation, depletion and amortization of oil and gas properties		1,832			2,948			418			840
Depreciation and amortization of non-oil and gas properties		276			255			68			70
Accretion of asset retirement obligation		91			80			23			18
General and administrative expenses		648			645			176			177
Restructuring costs		105			—			105			—
Interest expense		349			329			86			68
Change in fair value of other financial instruments		(106	)		149			(86	)		127
Reduction of carrying value of oil and gas properties		6,408			9,891			—			9,891
Other income, net		(68	)		(217	)		(7	)		(113	)
Total expenses and other income, net		12,541			18,018			1,579			11,905
(Loss) earnings from continuing operations before income tax expense		(4,526	)		(4,160	)		866			(9,353	)
Income tax (benefit) expense
Current		241			441			106			(136	)
Deferred		(2,014	)		(1,562	)		203			(2,947	)
Total income tax (benefit) expense		(1,773	)		(1,121	)		309			(3,083	)
(Loss) earnings from continuing operations		(2,753	)		(3,039	)		557			(6,270	)
Discontinued operations
Earnings (loss) from discontinued operations before income taxes		322			1,258			124			(570	)
Discontinued operations income tax expense (benefit)		48			367			14			(24	)
Earnings (loss) from discontinued operations		274			891			110			(546	)
Net (loss) earnings		(2,479	)		(2,148	)		667			(6,816	)
Preferred stock dividends		—			5			—			—
Net (loss) earnings applicable to common stockholders	$	(2,479	)	$	(2,153	)	$	667		$	(6,816	)
Basic net (loss) earnings per share
(Loss) earnings from continuing operations per share	$	(6.20	)	$	(6.86	)	$	1.25		$	(14.19	)
Earnings (loss) from discontinued operations per share		0.62			2.01			0.25			(1.23	)
Net (loss) earnings per share	$	(5.58	)	$	(4.85	)	$	1.50		$	(15.42	)
Diluted net earnings (loss) per share
(Loss) earnings from continuing operations per share	$	(6.20	)	$	(6.86	)	$	1.25		$	(14.19	)
Earnings (loss) from discontinued operations per share		0.62			2.01			0.24			(1.23	)
Net (loss) earnings per share	$	(5.58	)	$	(4.85	)	$	1.49		$	(15.42	)
Weighted average common shares outstanding
Basic		444			444			445			442
Diluted		446			447			447			444

Page 9 of 18

DEVON ENERGY CORPORATION
FINANCIAL AND OPERATIONAL INFORMATION

CONSOLIDATED BALANCE SHEETS
(in millions)

	December 31,
	2009		2008
Assets
Current assets
Cash and cash equivalents	$	646	$	195
Accounts receivable		1,208		1,300
Derivative financial instruments, at fair value		211		282
Current assets held for sale		657		392
Other current assets		270		515
Total current assets		2,992		2,684
Property and equipment, at cost, based on the full cost method of accounting for oil and gas properties ($4,078 and $4,248 excluded from amortization in 2009 and 2008, respectively)		60,475		53,391
Less accumulated depreciation, depletion and amortization		41,708		31,360
Property and equipment, net		18,767		22,031
Goodwill		5,930		5,511
Long-term assets held for sale		1,250		1,128
Other long-term assets		747		554
Total Assets	$	29,686	$	31,908
Liabilities and Stockholders’ Equity
Current liabilities
Accounts payable — trade	$	1,137	$	1,612
Revenues and royalties due to others		486		490
Short-term debt		1,432		180
Current portion of asset retirement obligation, at fair value		95		138
Current liabilities associated with assets held for sale		234		365
Other current liabilities		418		350
Total current liabilities		3,802		3,135
Long-term debt		5,847		5,661
Asset retirement obligation, at fair value		1,418		1,249
Liabilities associated with assets held for sale		213		166
Other long-term liabilities		937		1,023
Deferred income taxes		1,899		3,614
Stockholders’ equity
Common stock		45		44
Additional paid-in capital		6,527		6,257
Retained earnings		7,613		10,376
Accumulated other comprehensive income		1,385		383
Total Stockholders’ Equity		15,570		17,060
Total Liabilities and Stockholders’ Equity	$	29,686	$	31,908
Common Shares Outstanding		447		444

Page 10 of 18

DEVON ENERGY CORPORATION
FINANCIAL AND OPERATIONAL INFORMATION

CONSOLIDATED STATEMENTS OF CASH FLOWS
(in millions)

	Year Ended
	December 31,
	2009			2008
Cash Flows From Operating Activities
Net loss	$	(2,479	)	$	(2,148	)
Net earnings from discontinued operations		(274	)		(891	)
Adjustments to reconcile loss from continuing operations to net cash provided by operating activities:
Depreciation, depletion and amortization		2,108			3,203
Deferred income tax benefit		(2,014	)		(1,562	)
Reduction of carrying value of oil and gas properties		6,408			9,891
Net unrealized loss (gain) on oil and gas derivative financial instruments		121			(243	)
Other noncash charges		222			410
Net decrease (increase) in working capital		149			(207	)
Increase in long-term other assets		(6	)		(53	)
(Decrease) increase in long-term other liabilities		(3	)		48
Cash provided by operating activities — continuing operations		4,232			8,448
Cash provided by operating activities — discontinued operations		505			960
Net cash provided by operating activities		4,737			9,408
Cash Flows From Investing Activities
Proceeds from sales of property and equipment		34			117
Capital expenditures		(4,879	)		(8,843	)
Proceeds from exchange of investment in Chevron Corporation common stock		—			280
Purchases of short-term investments		—			(50	)
Sales of long-term investments		7			300
Other		(17	)		—
Cash used in investing activities — continuing operations		(4,855	)		(8,196	)
Cash (used in) provided by investing activities — discontinued operations		(499	)		1,323
Net cash used in investing activities		(5,354	)		(6,873	)
Cash Flows From Financing Activities
Proceeds from borrowings of long term debt, net of issuance costs		1,187	��		—
Credit facility repayments		—			(3,191	)
Credit facility borrowings		—			1,741
Net commercial paper borrowings		426			1
Debt repayments		(178	)		(1,031	)
Redemption of preferred stock		—			(150	)
Proceeds from stock option exercises		42			116
Repurchases of common stock		—			(665	)
Dividends paid on common and preferred stock		(284	)		(289	)
Excess tax benefits related to share-based compensation		8			60
Net cash provided by (used in) financing activities		1,201			(3,408	)
Effect of exchange rate changes on cash		43			(116	)
Net increase (decrease) in cash and cash equivalents		627			(989	)
Cash and cash equivalents at beginning of period (including assets held for sale)		384			1,373
Cash and cash equivalents at end of period (including assets held for sale)	$	1,011		$	384

Page 11 of 18

DEVON ENERGY CORPORATION
FINANCIAL AND OPERATIONAL INFORMATION

RESERVES RECONCILIATION

	Total												North American Onshore
	Oil			Gas			NGLs			Total			Oil			Gas			NGLs			Total
	(MMBbls)			(Bcf)			(MMBbls)			(MMBoe)			(MMBbls)			(Bcf)			(MMBbls)			(MMBoe)
As of December 31, 2008:
Proved developed		243			8,038			292			1,875			221			7,826			291			1,816
Proved undeveloped		58			1,841			60			424			46			1,663			59			382
Total proved		301			9,879			352			2,299			267			9,489			350			2,198
Revisions due to prices		302			(694	)		(9	)		177			300			(690	)		(9	)		176
Revisions other than price		(7	)		43			37			38			(8	)		105			36			46
Extensions and discoveries		133			1,518			71			458			131			1,454			71			446
Purchase of reserves		—			7			—			1			—			7			—			1
Production		(42	)		(966	)		(30	)		(233	)		(37	)		(921	)		(29	)		(220	)
Sale of reserves		(1	)		(30	)		—			(7	)		—			(29	)		—			(6	)
As of December 31, 2009:
Proved developed		289			7,845			326			1,922			268			7,660			325			1,869
Proved undeveloped		397			1,912			95			811			385			1,755			94			772
Total Proved		686			9,757			421			2,733			653			9,415			419			2,641

	U.S. Onshore												Canada
	Oil			Gas			NGLs			Total			Oil			Gas			NGLs			Total
	(MMBbls)			(Bcf)			(MMBbls)			(MMBoe)			(MMBbls)			(Bcf)			(MMBbls)			(MMBoe)
As of December 31, 2008:
Proved developed		111			6,469			260			1,449			110			1,357			31			367
Proved undeveloped		22			1,510			55			328			24			153			4			54
Total proved		133			7,979			315			1,777			134			1,510			35			421
Revisions due to prices		9			(661	)		(11	)		(113	)		291			(29	)		2			289
Revisions other than price		—			119			36			57			(8	)		(14	)		—			(11	)
Extensions and discoveries		9			1,387			70			311			122			67			1			135
Purchase of reserves		—			1			—			—			—			6			—			1
Production		(12	)		(698	)		(25	)		(154	)		(25	)		(223	)		(4	)		(66	)
Sale of reserves		—			—			—			—			—			(29	)		—			(6	)
As of December 31, 2009:
Proved developed		119			6,447			293			1,486			149			1,213			32			383
Proved undeveloped		20			1,680			92			392			365			75			2			380
Total Proved		139			8,127			385			1,878			514			1,288			34			763

	U.S. Offshore
	Oil			Gas			NGLs			Total
	(MMBbls)			(Bcf)			(MMBbls)			(MMBoe)
As of December 31, 2008:
Proved developed		22			212			1			59
Proved undeveloped		12			178			1			42
Total proved		34			390			2			101
Revisions due to prices		2			(4	)		—			1
Revisions other than price		1			(62	)		1			(8	)
Extensions and discoveries		2			64			—			12
Purchase of reserves		—			—			—			—
Production		(5	)		(45	)		(1	)		(13	)
Sale of reserves		(1	)		(1	)		—			(1	)
As of December 31, 2009:
Proved developed		21			185			1			53
Proved undeveloped		12			157			1			39
Total Proved		33			342			2			92

Page 12 of 18

DEVON ENERGY CORPORATION
FINANCIAL AND OPERATIONAL INFORMATION

COSTS INCURRED
(in millions)

	Total				North American Onshore
	Year Ended December 31,				Year Ended December 31,
	2009		2008		2009		2008
Property Acquisition Costs:
Total proved	$	35	$	822	$	35	$	822
Total unproved		135		1,763		124		1,578
Exploration and development costs		3,917		6,881		3,120		5,692
Costs Incurred	$	4,087	$	9,466	$	3,279	$	8,092

	U.S. Onshore				Canada
	Year Ended December 31,				Year Ended December 31,
	2009		2008		2009		2008
Property Acquisition Costs:
Total proved	$	17	$	822	$	18	$	—
Total unproved		52		1,226		72		352
Exploration and development costs		2,133		4,388		987		1,304
Costs Incurred	$	2,202	$	6,436	$	1,077	$	1,656

	U.S. Offshore
	Year Ended December 31,
	2009		2008
Property Acquisition Costs:
Total proved	$	—	$	—
Total unproved		11		185
Exploration and development costs		797		1,189
Costs Incurred	$	808	$	1,374

Devon capitalizes certain general and administrative expenses related to property acquisition, exploration and development activities. These capitalized expenses were $332 million and $337 million in 2009 and 2008, respectively. Devon also capitalizes certain interest expenses related to property acquisition, exploration and development activities. These capitalized expenses were $74 million and $71 million in 2009 and 2008, respectively. These capitalized general and administrative expenses and interest expenses are included in the costs shown in the preceding tables.

Page 13 of 18

DEVON ENERGY CORPORATION
FINANCIAL AND OPERATIONAL INFORMATION

DRILLING ACTIVITY

	Year Ended
	December 31,
	2009			2008
Exploration Wells Drilled
U.S. Onshore		11			22
Canada		42			90
North American Onshore		53			112
U.S. Offshore		1			6
Total		54			118
Exploration Wells Success Rate
U.S. Onshore		82	%		91	%
Canada		100	%		96	%
North American Onshore		96	%		95	%
U.S. Offshore		0	%		17	%
Total		94	%		91	%
Development Wells Drilled
U.S. Onshore		734			1,622
Canada		343			631
North American Onshore		1,077			2,253
U.S. Offshore		4			17
Total		1,081			2,270
Development Wells Success Rate
U.S. Onshore		100	%		98	%
Canada		100	%		99	%
North American Onshore		100	%		99	%
U.S. Offshore		50	%		94	%
Total		99	%		99	%
Total Wells Drilled
U.S. Onshore		745			1,644
Canada		385			721
North American Onshore		1,130			2,365
U.S. Offshore		5			23
Total		1,135			2,388
Total Wells Success Rate
U.S. Onshore		99	%		98	%
Canada		100	%		99	%
North American Onshore		99	%		98	%
U.S. Offshore		40	%		74	%
Total		99	%		98	%

COMPANY OPERATED RIGS

	Year Ended
	December 31,
	2009		2008
Number of Company Operated Rigs Running
U.S. Onshore		46		78
Canada		17		13
North American Onshore		63		91
U.S. Offshore		1		4
Total		64		95

Page 14 of 18

DEVON ENERGY CORPORATION
FINANCIAL AND OPERATIONAL INFORMATION

CAPITAL EXPENDITURES (in millions)
Quarter Ended December 31, 2009

	U.S. Onshore		Canada		U.S. Offshore		Total
Capital Expenditures
Exploration	$	82	$	139	$	29	$	250
Development		397		222		133		752
Exploration and development capital	$	479	$	361	$	162	$	1,002
Capitalized G&A								80
Capitalized interest								18
Discontinued operations								139
Midstream capital								98
Other capital								121
Total Capital Expenditures							$	1,458

CAPITAL EXPENDITURES (in millions)
Year Ended December 31, 2009

	U.S. Onshore		Canada		U.S. Offshore		Total
Capital Expenditures
Exploration	$	157	$	215	$	182	$	554
Development		1,835		819		534		3,188
Exploration and development capital	$	1,992	$	1,034	$	716	$	3,742
Capitalized G&A								332
Capitalized interest								74
Discontinued operations								446
Midstream capital								305
Other capital								197
Total Capital Expenditures							$	5,096

Page 15 of 18

DEVON ENERGY CORPORATION
FINANCIAL AND OPERATIONAL INFORMATION

PRODUCTION FROM DISCONTINUED OPERATIONS

	Year Ended				Quarter Ended
	December 31,				December 31,
	2009		2008		2009		2008
Production from Discontinued Operations
Oil (MMBbls)		15.7		17.4		4.1		3.4
Natural Gas (Bcf)		1.5		4.8		0.5		0.7
Total Oil Equivalent (MMBoe)		16.0		18.2		4.2		3.5

STATEMENTS OF DISCONTINUED OPERATIONS
(in millions)

	Year Ended						Quarter Ended
	December 31,						December 31,
	2009			2008			2009			2008
Revenues
Total operating revenues	$	945		$	1,702		$	299		$	158
Expenses and other income, net
Operating expenses		484			769			127			234
Restructuring costs		48			—			48			—
Reduction of carrying value of oil and gas properties		108			494			—			494
Gain on sale of oil and gas properties		(17	)		(819	)		—			—
Total expenses and other income, net		623			444			175			728
Earnings (loss) before income tax expense		322			1,258			124			(570	)
Income tax expense (benefit)
Current		44			755			24			(54	)
Deferred		4			(388	)		(10	)		30
Total income tax expense (benefit)		48			367			14			(24	)
Earnings (loss) from discontinued operations	$	274		$	891		$	110		$	(546	)

RESERVES DATA FOR DISCONTINUED OPERATIONS

	Oil			Gas			NGLs		Total
	(MMBbls)			(Bcf)			(MMBbls)		(MMBoe)
As of December 31, 2008:
Proved developed		58			6			—		59
Proved undeveloped		70			—			—		70
Total proved		128			6			—		129
Revisions due to prices		(6	)		—			—		(6	)
Revisions other than price		—			3			—		—
Extensions and discoveries		1			—			—		1
Production		(16	)		(1	)		—		(16	)
As of December 31, 2009:
Proved developed		54			8			—		55
Proved undeveloped		53			—			—		53
Total proved		107			8			—		108

COSTS INCURRED FOR DISCONTINUED OPERATIONS
(in millions)

	Year Ended December 31,
	2009		2008
Costs Incurred	$	450	$	617

Page 16 of 18

DEVON ENERGY CORPORATION
FINANCIAL AND OPERATIONAL INFORMATION

NON-GAAP FINANCIAL MEASURES

The United States Securities and Exchange Commission has adopted disclosure requirements for public companies such as Devon concerning Non-GAAP financial measures. (GAAP refers to generally accepted accounting principles.) The company must reconcile the Non-GAAP financial measure to related GAAP information. Cash flow before balance sheet changes is a Non-GAAP financial measure. Devon believes cash flow before balance sheet changes is relevant because it is a measure of cash available to fund the company’s capital expenditures, dividends and to service its debt. Cash flow before balance sheet changes is also used by certain securities analysts as a measure of Devon’s financial results.

RECONCILIATION TO GAAP INFORMATION
(in millions)

	Year Ended						Quarter Ended
	December 31,						December 31,
	2009			2008			2009			2008
Net Cash Provided By Operating Activities (GAAP)	$	4,737		$	9,408		$	1,445		$	1,227
Changes in assets and liabilities — continuing operations		(140	)		212			(74	)		496
Changes in assets and liabilities — discontinued operations		90			(6	)		15			13
Cash flow before balance sheet changes (Non-GAAP)	$	4,687		$	9,614		$	1,386		$	1,736

Devon believes that using net debt for the calculation of “net debt to adjusted capitalization” provides a better measure than using debt. Devon defines net debt as debt less cash and cash equivalents. Devon believes that because cash and cash equivalents can be used to repay indebtedness, netting cash and cash equivalents against debt provides a clearer picture of the future demands on cash to repay debt.

RECONCILIATION TO GAAP INFORMATION
(in millions)

	December 31,
	2009		2008
Total debt (GAAP)	$	7,279	$	5,841
Adjustments:
Cash and cash equivalents (inclduing cash from discontinued operations)		1,011		384
Net debt (Non-GAAP)	$	6,268	$	5,457
Total debt	$	7,279	$	5,841
Stockholders’ equity		15,570		17,060
Total capitalization (GAAP)	$	22,849	$	22,901
Net debt	$	6,268	$	5,457
Stockholders’ equity		15,570		17,060
Adjusted capitalization (Non-GAAP)	$	21,838	$	22,517

Page 17 of 18

DEVON ENERGY CORPORATION
FINANCIAL AND OPERATIONAL INFORMATION

Drill-bit capital is defined as costs incurred less proved acquisition costs, unproved acquisition costs resulting from business combinations and other significant similar transactions. Drill-bit capital is a Non-GAAP measure. Devon believes drill-bit capital is relevant because it provides additional insight into costs associated with current year exploration and development activities. It should be noted that the actual costs of reserves added through Devon’s drilling program will differ, sometimes significantly, from the direct comparison of capital spent and reserves added in any given period due to the timing of capital expenditures and reserve bookings. Certain securities analysts also use this methodology to measure Devon’s performance.

RECONCILIATION TO GAAP INFORMATION
(in millions)

	Total				North America Onshore
	Year Ended December 31,				Year Ended December 31,
	2009		2008		2009		2008
Costs Incurred (GAAP)	$	4,087	$	9,466	$	3,279	$	8,092
Less:
Proved acquisition costs		35		822		35		822
Drill-bit capital (Non-GAAP)	$	4,052	$	8,644	$	3,244	$	7,270

	U.S. Onshore				Canada
	Year Ended December 31,				Year Ended December 31,
	2009		2008		2009		2008
Costs Incurred (GAAP)	$	2,202	$	6,436	$	1,077	$	1,656
Less:
Proved acquisition costs		17		822		18		—
Drill-bit capital (Non-GAAP)	$	2,185	$	5,614	$	1,059	$	1,656

	U.S. Offshore
	Year Ended December 31,
	2009		2008
Costs Incurred (GAAP)	$	808	$	1,374
Less:
Proved acquisition costs		—		—
Drill-bit capital (Non-GAAP)	$	808	$	1,374

Page 18 of 18