Devon Energy (DVN) 10-K 25 Feb 10 2009 FY Annual report Financial data

Document and Entity Information

Document and Entity Information (USD $)
	12 Months Ended Dec. 31, 2009	Feb. 15, 2010	Jun. 30, 2009
Document and Entity Information
Document Type	10-K
Document Period End Date	2009-12-31
Amendment Flag	false
Entity Registrant Name	Devon Energy Corp/DE
Entity Central Index Key	0001090012
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Well-known Seasoned Issuer	Yes
Entity Common Stock, Shares Outstanding (in shares)		446,800,000
Entity Public Float			$24,000,000,000

Consolidated Balance Sheets

Consolidated Balance Sheets (USD $)
In Millions	Dec. 31, 2009	Dec. 31, 2008
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 million and $4,248 million 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, including $246 million and $199 million at fair value in 2009 and 2008, respectively	747	554
Total assets	29,686	31,908
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 obligations, at fair value	95	138
Current liabilities associated with assets held for sale	234	365
Other current liabilities, including $38 million at fair value in 2009	418	350
Total current liabilities	3,802	3,135
Long-term debt	5,847	5,661
Asset retirement obligations, at fair value	1,418	1,249
Liabilities associated with assets held for sale, including $109 million and $98 million at fair value in 2009 and 2008, respectively	213	166
Other long-term liabilities	937	1,023
Deferred income taxes	1,899	3,614
Stockholders' equity:
Common stock of $0.10 par value. Authorized 1.0 billion shares; issued 446.7 million and 443.7 million shares in 2009 and 2008, respectively	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
Commitments and contingencies (Note 10)
Total liabilities and stockholders' equity	$29,686	$31,908

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) (USD $)
In Millions, except Share data	12 Months Ended Dec. 31, 2009	12 Months Ended Dec. 31, 2008
Property and equipment, at cost, based on the full cost method of accounting for oil and gas properties excluded from amortization	$4,078	$4,248
Other long-term assets at fair value	246	199
Other current liabilities at fair value	38
Liabilities associated with assets held for sale at fair value	$109	$98
Common stock, par value (in dollars per share)	0.1	0.1
Common stock, shares authorized (in shares)	1,000,000,000	1,000,000,000
Common stock, shares issued (in shares)	446,700,000	443,700,000

Consolidated Statements of Oper

Consolidated Statements of Operations (USD $)
In Millions, except Per Share data	12 Months Ended Dec. 31, 2009	12 Months Ended Dec. 31, 2008	12 Months Ended Dec. 31, 2007
Revenues:
Oil, gas and NGL sales	$6,097	$11,720	$8,225
Net gain (loss) on oil and gas derivative financial instruments	384	(154)	14
Marketing and midstream revenues	1,534	2,292	1,736
Total revenues	8,015	13,858	9,975
Expenses and other income, net:
Lease operating expenses	1,670	1,851	1,532
Taxes other than income taxes	314	476	358
Marketing and midstream operating costs and expenses	1,022	1,611	1,217
Depreciation, depletion and amortization of oil and gas properties	1,832	2,948	2,412
Depreciation and amortization of non-oil and gas properties	276	255	201
Accretion of asset retirement obligations	91	80	70
General and administrative expenses	648	645	513
Restructuring costs	105	0	0
Interest expense	349	329	430
Change in fair value of other financial instruments	(106)	149	(34)
Reduction of carrying value of oil and gas properties	6,408	9,891	0
Other income, net	(68)	(217)	(51)
Total expenses and other income, net	12,541	18,018	6,648
Earnings (loss) from continuing operations before income taxes	(4,526)	(4,160)	3,327
Income tax expense (benefit):
Current	241	441	235
Deferred	(2,014)	(1,562)	607
Total income tax expense (benefit)	(1,773)	(1,121)	842
Earnings (loss) from continuing operations	(2,753)	(3,039)	2,485
Discontinued operations:
Earnings from discontinued operations before income taxes	322	1,258	1,593
Discontinued operations income tax expense	48	367	472
Earnings from discontinued operations	274	891	1,121
Net earnings (loss)	(2,479)	(2,148)	3,606
Preferred stock dividends	0	5	10
Net earnings (loss) applicable to common stockholders	($2,479)	($2,153)	$3,596
Basic net earnings (loss) per share:
Basic earnings (loss) from continuing operations per share (in dollars per share)	-6.2	-6.86	5.56
Basic earnings from discontinued operations per share (in dollars per share)	0.62	2.01	2.52
Basic net earnings (loss) per share (in dollars per share)	-5.58	-4.85	8.08
Diluted net earnings (loss) per share:
Diluted earnings (loss) from continuing operations per share (in dollars per share)	-6.2	-6.86	5.5
Diluted earnings from discontinued operations per share (in dollars per share)	0.62	2.01	2.5
Diluted net earnings (loss) per share (in dollars per share)	-5.58	-4.85	$8

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income (Loss) (USD $)
In Millions	12 Months Ended Dec. 31, 2009	12 Months Ended Dec. 31, 2008	12 Months Ended Dec. 31, 2007
Net earnings (loss)	($2,479)	($2,148)	$3,606
Foreign currency translation:
Change in cumulative translation adjustment	993	(1,960)	1,389
Foreign currency translation income tax benefit (expense)	(62)	79	(42)
Foreign currency translation total	931	(1,881)	1,347
Pension and postretirement benefit plans:
Net actuarial loss and prior service cost arising in current year	59	(239)	(90)
Recognition of net actuarial loss and prior service cost in net earnings (loss)	54	18	14
Curtailment of pension benefits	0	0	16
Pension and postretirement benefit plans income tax benefit (expense)	(42)	80	23
Pension and postretirement benefit plans total	71	(141)	(37)
Reclassification adjustment for realized gains included in net earnings	0	0	(1)
Other comprehensive earnings (loss), net of tax	1,002	(2,022)	1,309
Comprehensive income (loss)	($1,477)	($4,170)	$4,915

Consolidated Statements of Stoc

Consolidated Statements of Stockholders' Equity (USD $)
In Millions	Preferred Stock	Common Stock	Additional Paid-in Capital	Retained Earnings	Accumulated Other Comprehensive Income	Treasury Stock	Total
Stockholders' equity, beginning balance at Dec. 31, 2006	$1	$44	$6,840	$9,114	$1,444	($1)	$17,442
Common Stock, Shares, Beginning Balance at Dec. 31, 2006		444
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net earnings (loss)				3,606			3,606
Other comprehensive earnings (loss), net of tax					1,309		1,309
Other financial instruments				364	(364)		0
Uncertain income tax positions				(11)			(11)
Pension and postretirement benefit plans				(1)	16		15
Stock option exercises		1	90				91
Stock option exercises, shares		3
Restricted stock grants, net of cancellations		2
Common stock repurchased						(362)	(362)
Common stock repurchased, shares		(5)
Common stock retired		(1)	(362)			363	0
Common stock dividends				(249)			(249)
Preferred stock dividends				(10)			(10)
Share-based compensation			131				131
Share-based compensation tax benefits			44				44
Stockholders' equity, ending balance at Dec. 31, 2007	1	44	6,743	12,813	2,405	0	22,006
Common Stock, Shares, Ending Balance at Dec. 31, 2007		444
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net earnings (loss)				(2,148)			(2,148)
Other comprehensive earnings (loss), net of tax					(2,022)		(2,022)
Stock option exercises		1	123			(8)	116
Stock option exercises, shares		4
Restricted stock grants, net of cancellations		3
Common stock repurchased						(709)	(709)
Common stock repurchased, shares		(7)
Common stock retired		(1)	(716)			717	0
Redemption of preferred stock	(1)		(149)				(150)
Common stock dividends				(284)			(284)
Preferred stock dividends				(5)			(5)
Share-based compensation			196				196
Share-based compensation tax benefits			60				60
Stockholders' equity, ending balance at Dec. 31, 2008	0	44	6,257	10,376	383	0	17,060
Common Stock, Shares, Ending Balance at Dec. 31, 2008		444
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net earnings (loss)				(2,479)			(2,479)
Other comprehensive earnings (loss), net of tax					1,002		1,002
Stock option exercises		1	47			(5)	43
Stock option exercises, shares		1
Restricted stock grants, net of cancellations		2
Common stock repurchased						(40)	(40)
Common stock retired			(45)			45	0
Common stock dividends				(284)			(284)
Share-based compensation			260				260
Share-based compensation tax benefits			8				8
Stockholders' equity, ending balance at Dec. 31, 2009		$45	$6,527	$7,613	$1,385	$0	$15,570
Common Stock, Shares, Ending Balance at Dec. 31, 2009		447

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (USD $)
In Millions	12 Months Ended Dec. 31, 2009	12 Months Ended Dec. 31, 2008	12 Months Ended Dec. 31, 2007
Cash flows from operating activities:
Net earnings (loss)	($2,479)	($2,148)	$3,606
Net earnings from discontinued operations	(274)	(891)	(1,121)
Adjustments to reconcile earnings (loss) from continuing operations to net cash provided by operating activities:
Depreciation, depletion and amortization	2,108	3,203	2,613
Deferred income tax expense (benefit)	(2,014)	(1,562)	607
Reduction of carrying value of oil and gas properties	6,408	9,891	0
Net unrealized loss (gain) on oil and gas derivative financial instruments	121	(243)	26
Other noncash charges	222	410	150
Net decrease (increase) in working capital	149	(207)	(512)
Decrease (increase) in long-term other assets	(6)	(53)	(60)
Increase (decrease) in long-term other liabilities	(3)	48	(1)
Cash provided by operating activities - continuing operations	4,232	8,448	5,308
Cash provided by operating activities - discontinued operations	505	960	1,343
Net cash provided by operating activities	4,737	9,408	6,651
Cash flows from investing activities:
Proceeds from sales of property and equipment	34	117	76
Capital expenditures	(4,879)	(8,843)	(5,710)
Proceeds from exchange of Chevron Corporation common stock	0	280	0
Purchases of short-term investments	0	(50)	(934)
Sales of long-term and short-term investments	7	300	1,136
Other	(17)	0	0
Cash used in investing activities - continuing operations	(4,855)	(8,196)	(5,432)
Cash provided by (used in) investing activities - discontinued operations	(499)	1,323	(282)
Net cash used in investing activities	(5,354)	(6,873)	(5,714)
Cash flows from financing activities:
Proceeds from borrowings of long-term debt, net of issuance costs	1,187	0	0
Credit facility repayments	0	(3,191)	(757)
Credit facility borrowings	0	1,741	2,207
Net commercial paper borrowings (repayments)	426	1	(804)
Debt repayments	(178)	(1,031)	(567)
Redemption of preferred stock	0	(150)	0
Proceeds from stock option exercises	42	116	91
Repurchases of common stock	0	(665)	(326)
Dividends paid on common and preferred stock	(284)	(289)	(259)
Excess tax benefits related to share-based compensation	8	60	44
Net cash provided by (used in) financing activities	1,201	(3,408)	(371)
Effect of exchange rate changes on cash	43	(116)	51
Net increase (decrease) in cash and cash equivalents	627	(989)	617
Cash and cash equivalents at beginning of period (including cash related to assets held for sale)	384	1,373	756
Cash and cash equivalents at end of period (including cash related to assets held for sale)	$1,011	$384	$1,373

Summary of Significant Accounti

Summary of Significant Accounting Policies
	12 Months Ended Dec. 31, 2009 USD / shares
Summary of Significant Accounting Policies
1. Summary of Significant Accounting Policies	1. Summary of Significant Accounting Policies Accounting policies used by Devon Energy Corporation and subsidiaries (Devon) reflect industry practices and conform to accounting principles generally accepted in the United States of America. The more significant of such policies are discussed below. Nature of Business and Principles of Consolidation Devon is engaged primarily in oil and gas exploration, development and production, and the acquisition of properties. Such activities are concentrated in the following North American onshore geographic areas: the Mid-Continent area of the central and southern United States, principally in north and east Texas, as well as Oklahoma; the Permian Basin within Texas and New Mexico; the Rocky Mountains area of the United States stretching from the Canadian border into northern New Mexico; the onshore areas of the Gulf Coast, principally in south Texas and south Louisiana; and the provinces of Alberta, British Columbia and Saskatchewan in Canada. Devon also has offshore operations located in the Gulf of Mexico and certain countries outside North America, including Azerbaijan, Brazil and China. In November 2009, Devon announced plans to strategically reposition itself as a high-growth, North American onshore exploration and production company. As part of this strategic repositioning, Devon plans to bring forward the value of its offshore assets by divesting them. In 2008 and 2007 prior to these plans, Devon sold its assets in Egypt and West Africa. These divestiture activities are described more fully in Note 18. Devon also has marketing and midstream operations that perform various activities to support the oil and gas operations of Devon and unrelated third parties. Such activities include marketing gas, crude oil and NGLs, as well as constructing and operating pipelines, storage and treating facilities and natural gas processing plants. The accounts of Devon's controlled subsidiaries are included in the accompanying consolidated financial statements. All significant intercompany accounts and transactions have been eliminated in consolidation. Use of Estimates in the Preparation of Financial Statements The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual amounts could differ from these estimates, and changes in these estimates are recorded when known. Significant items subject to such estimates and assumptions include the following: estimates of proved reserves and related estimates of the present value of future net revenues; the carrying value of oil and gas properties; estimates of the fair value of reporting units and related assessment of goodwill for impairment; asset retirement obligations; income taxes; derivative financial instruments; obligations related to employee pe

Accounts Receivable

Accounts Receivable
	12 Months Ended Dec. 31, 2009 USD / shares
Accounts Receivable
2. Accounts Receivable	2. Accounts Receivable The components of accounts receivable include the following: December 31, 2009 2008 (In millions) Oil, gas and NGL revenues................................................................................ $ 752 $ 711 Joint interest billings............................................................................................ 151 241 Marketing and midstream revenues................................................................ 188 153 Production tax credits........................................................................................ 110 170 Other...................................................................................................................... 19 30 Gross accounts receivable............................................................................... 1,220 1,305 Allowance for doubtful accounts.................................................................... (12) (5) Net accounts receivable................................................................................... $ 1,208 $ 1,300

Derivative Financial Instrument

Derivative Financial Instruments
	12 Months Ended Dec. 31, 2009 USD / shares
Derivative Financial Instruments
3. Derivative Financial Instruments	3. Derivative Financial Instruments As discussed in Note 1, Devon periodically enters into commodity and interest rate derivative financial instruments. Also, during the first eight months of 2008 and all of 2007, Devon held an embedded option derivative related to the fair value of its debentures exchangeable into shares of Chevron common stock. The following table presents the fair values of derivative assets and liabilities included in the accompanying consolidated balance sheets. None of Devon's derivative instruments included in the table have been designated as hedging instruments. Balance Sheet Caption Asset Derivatives Liability Derivatives (In millions) December 31, 2009: Gas price swaps................ Derivative financial instruments, current.............................. $ 169 $ Gas basis swaps................ Derivative financial instruments, current.............................. 3 Oil price collars.................. Other current liabilities.............................................................. 38 Interest rate swaps........... Derivative financial instruments, current.............................. 39 Interest rate swaps........... Other long-term assets.............................................................. 131 Total derivatives.............................................................................................................................. $ 342 $ 38 December 31, 2008: Gas price collars................ Derivative financial instruments, current.............................. $ 255 $ Interest rate swaps........... Derivative financial instruments, current.............................. 27 Interest rate swaps........... Other long-term assets.............................................................. 77 Total derivatives.............................................................................................................................. $ 359 $ The following table presents the cash settlements and unrealized gains and losses on fair value changes included in the accompanying statements of operations associated with these derivative financial instruments. None of Devon's derivative instruments included in the table have been designated as hedging instruments. Statement of Operations Caption 2009 2008 2007 (In millions) Cash settlements: Gas price collars.............. Net gain (loss) on oil and gas derivative financial instruments.................................................................... $ 450 $ (221) $ 2 Gas price swaps.............. Net gain (loss) on oil and gas derivative financial instruments.................................................................... 55 (203) 38 Oil price collars................ Net gain (loss) on oil and gas derivative financial instruments.................................................................... 27 Interest rate sw

Other Current Assets

Other Current Assets
	12 Months Ended Dec. 31, 2009 USD / shares
Other Current Assets
4. Other Current Assets	4. Other Current Assets The components of other current assets include the following: December 31, 2009 2008 (In millions) Inventories........................................................................................................... $ 182 $ 142 Prepaid assets...................................................................................................... 33 36 Income taxes receivable.................................................................................... 53 333 Other...................................................................................................................... 2 4 Other current assets.......................................................................................... $ 270 $ 515

Property and Equipment

Property and Equipment
	12 Months Ended Dec. 31, 2009 USD / shares
Property and Equipment
5. Property and Equipment	5. Property and Equipment Property and equipment consists of the following: December 31, 2009 2008 (In millions) Oil and gas properties: Subject to amortization................................................................................... $ 52,352 $ 45,678 Not subject to amortization............................................................................ 4,078 4,248 Total.................................................................................................................... 56,430 49,926 Accumulated depreciation, depletion and amortization............................. (40,312) (30,260) Net oil and gas properties............................................................................. 16,118 19,666 Other property and equipment......................................................................... 4,045 3,465 Accumulated depreciation and amortization............................................... (1,396) (1,100) Net other property and equipment............................................................. 2,649 2,365 Property and equipment, net of accumulated depreciation, depletion and amortization............................................................................ $ 18,767 $ 22,031 In the first quarter of 2009 and the fourth quarter of 2008, Devon reduced the carrying values of its oil and gas properties due to full cost ceiling limitations. These reductions are discussed in Note 15. The following is a summary of Devon's oil and gas properties not subject to amortization as of December 31, 2009. The $4.1 billion total includes $2.1 billion related to Devons U.S. Offshore assets that are expected to be sold by the end of 2010. Evaluation of most of the remaining $2.0 billion of properties, and therefore the inclusion of their costs in amortized capital costs, is expected to be completed within three to seven years. Costs Incurred In 2009 2008 2007 Prior to 2007 Total (In millions) Acquisition costs...................................................................... $ 129 $ 1,567 $ 126 $ 780 $ 2,602 Exploration costs..................................................................... 223 303 56 174 756 Development costs.................................................................. 326 169 34 22 551 Capitalized interest.................................................................. 74 54 37 4 169 Total oil and gas properties not subject to amortization $ 752 $ 2,093 $ 253 $ 980 $ 4,078

Debt and Related Expenses

Debt and Related Expenses
	12 Months Ended Dec. 31, 2009 USD / shares
Debt and Related Expenses Disclosure
6. Debt and Related Expenses	6. Debt and Related Expenses A summary of Devon's debt is as follows: December 31, 2009 2008 (In millions) Commercial paper.............................................................................................. $ 1,432 $ 1,005 Other debentures and notes: 10.125% retired on November 15, 2009...................................................... 177 6.875% due September 30, 2011................................................................... 1,750 1,750 7.25% due October 1, 2011............................................................................ 350 350 5.625% due January 15, 2014....................................................................... 500 8.25% due July 1, 2018................................................................................... 125 125 6.30% due January 15, 2019.......................................................................... 700 7.50% due September 15, 2027..................................................................... 150 150 7.875% due September 30, 2031................................................................... 1,250 1,250 7.95% due April 15, 2032................................................................................ 1,000 1,000 Other.................................................................................................................... 10 10 Net premium on other debentures and notes............................................... 12 24 7,279 5,841 Less amount classified as short-term debt..................................................... 1,432 180 Long-term debt.................................................................................................... $ 5,847 $ 5,661 Debt maturities as of December 31, 2009, excluding premiums and discounts, are as follows (in millions): 2010...................................................................................................................... $ 1,432 2011...................................................................................................................... 2,100 2012...................................................................................................................... 10 2013...................................................................................................................... 2014...................................................................................................................... 500 2015 and thereafter............................................................................................ 3,225 Total.................................................................................................................... $ 7,267 Credit Lines Devon has a $2.65 billion syndicated, unsecured revolving line of credit (the Senior Credit Facility). The maturity date for $2.15 billion of the Senior Credit Facil

Asset Retirement Obligations

Asset Retirement Obligations
	12 Months Ended Dec. 31, 2009 USD / shares
Asset Retirement Obligations
7. Asset Retirement Obligations	7. Asset Retirement Obligations Following is a reconciliation of the asset retirement obligations for the years ended December 31, 2009 and 2008. Year Ended December 31, 2009 2008 (In millions) Asset retirement obligations as of beginning of year.................................... $ 1,387 $ 1,245 Liabilities incurred............................................................................................. 56 59 Liabilities settled................................................................................................ (123) (86) Revision of estimated obligation................................................................... 33 225 Liabilities assumed by others.......................................................................... (30) Accretion expense on discounted obligation............................................... 91 80 Foreign currency translation adjustment...................................................... 99 (136) Asset retirement obligations as of end of year.............................................. 1,513 1,387 Less current portion............................................................................................ 95 138 Asset retirement obligations, long-term........................................................... $ 1,418 $ 1,249 During 2009 and 2008, Devon recognized revisions to its asset retirement obligations totaling $33 million and $225 million, respectively. The primary factors causing the 2009 fair value increase were an overall increase in abandonment cost estimates, partially offset by an increase in the discount rate used to calculate the present value of the obligations. The primary factors causing the 2008 fair value increase were an overall increase in abandonment cost estimates and a decrease in the discount rate used to present value the obligations. In addition, higher abandonment cost estimates related to certain offshore platforms that were destroyed by Hurricane Ike resulted in an $82 million increase in 2008. See additional discussion regarding this revision in Note 10 Hurricane Contingencies.

Retirement Plans

Retirement Plans
	12 Months Ended Dec. 31, 2009 USD / shares
Retirement Plans
8. Retirement Plans	8. Retirement Plans Devon has various non-contributory defined benefit pension plans, including qualified plans (Qualified Plans) and nonqualified plans (Supplemental Plans). The Qualified Plans provide retirement benefits for U.S. and Canadian employees meeting certain age and service requirements. Benefits for the Qualified Plans are based on the employees' years of service and compensation and are funded from assets held in the plans' trusts. Devon's funding policy regarding the Qualified Plans is to contribute the amount of funds necessary for the Qualified Plans' assets to approximately equal the present value of benefits earned by the participants, as calculated in accordance with the provisions of the Pension Protection Act. As of December 31, 2009 and 2008, the fair values of the Qualified Plans' assets were $532 million and $430 million, respectively. The assets were $164 million less and $209 million less, respectively, than the related accumulated benefit obligation. The amount of contributions required during future periods will depend on investment returns from the plan assets during the same period as well as changes in long-term interest rates. The Supplemental Plans provide retirement benefits for certain employees whose benefits under the Qualified Plans are limited by income tax regulations. The Supplemental Plans' benefits are based on the employees' years of service and compensation. For certain Supplemental Plans, Devon has established trusts to fund these plans' benefit obligations. The total value of these trusts was $39 million and $50 million at December 31, 2009 and 2008, respectively, and is included in noncurrent other assets in the consolidated balance sheets. For the remaining Supplemental Plans for which trusts have not been established, benefits are funded from Devon's available cash and cash equivalents. Devon also has defined benefit postretirement plans (Postretirement Plans) that provide benefits for substantially all U.S. employees. The Postretirement Plans provide medical and, in some cases, life insurance benefits and are, depending on the type of plan, either contributory or non-contributory. Benefit obligations for the Postretirement Plans are estimated based on Devon's future cost-sharing intentions. Devon's funding policy for the Postretirement Plans is to fund the benefits as they become payable with available cash and cash equivalents. Benefit Obligations and Funded Status The following table presents the status of Devon's pension and other postretirement benefit plans for 2009 and 2008. The benefit obligation for pension plans represents the projected benefit obligation, while the benefit obligation for the postretirement benefit plans represents the accumulated benefit obligation. The accumulated benefit obligation differs from the projected benefit obligation in that the former includes no assumption about future compensation levels. The accumulated benefit obligation for pension plans at December 31, 2009 and 2008 was $873 million and $795 million, respectively. Devons benefit obligations and plan assets are measured each year as of December 31. Pension Benefits

Stockholders' Equity

Stockholders' Equity
	1/1/2009 - 12/31/2009 USD / shares
Stockholders' Equity Disclosure
9. Stockholders' Equity	9. Stockholders' Equity The authorized capital stock of Devon consists of 1 billion shares of common stock, par value $0.10 per share, and 4.5 million shares of preferred stock, par value $1.00 per share. The preferred stock may be issued in one or more series, and the terms and rights of such stock will be determined by the Board of Directors. Devon's Board of Directors has designated 2.9 million shares of the preferred stock as Series A Junior Participating Preferred Stock (the Series A Junior Preferred Stock). At December 31, 2009, there were no shares of Series A Junior Preferred Stock issued or outstanding. The Series A Junior Preferred Stock is entitled to receive cumulative quarterly dividends per share equal to the greater of $1.00 or 200 times the aggregate per share amount of all dividends (other than stock dividends) declared on common stock since the immediately preceding quarterly dividend payment date or, with respect to the first payment date, since the first issuance of Series A Junior Preferred Stock. Holders of the Series A Junior Preferred Stock are entitled to 200 votes per share (subject to adjustment to prevent dilution) on all matters submitted to a vote of the stockholders. The Series A Junior Preferred Stock is neither redeemable nor convertible. The Series A Junior Preferred Stock ranks prior to the common stock but junior to all other classes of Preferred Stock. Preferred Stock Redemption On June20, 2008, Devon redeemed all 1.5million outstanding shares of its 6.49% SeriesA cumulative preferred stock. Each share of preferred stock was redeemed for cash at a redemption price of $100 per share, plus accrued and unpaid dividends up to the redemption date. Stock Repurchases Devons Board of Directors previously approved an ongoing, annual stock repurchase program to minimize dilution resulting from restricted stock issued to, and options exercised by, employees. Also, Devons Board of Directors approved a program in 2007 to repurchase up to 50 million shares. This program was created as a potential use of the proceeds received from Devons West African property divestitures. Both of these plans expired on December 31, 2009, and no new plans have been authorized. Devon's Board of Directors also approved a separate 50 million share repurchase program in August 2005, which expired on December 31, 2007. During 2007 and 2008, Devon repurchased 10.6 million shares at a total cost of $1.0 billion, or an average of $93.76 per share, under its repurchase programs. No shares were repurchased in 2009. The following table summarizes Devon's repurchases under approved plans during 2008 and 2007 (amounts and shares in millions). 2008 2007 Repurchase Program Amount Shares Per Share Amount Shares Per Share Annual program...... $ 178 2.0 $ 87.83 $ $ 2007 program.......... 487 4.5 $ 109.25 326 4.1 $ 79.80 Totals...................... $ 665 6.5 $ 102.56 $ 326 4.1 $ 79.80 Dividends Devon paid common stock dividends of $284 million (or $0.64 per share), $

Commitments and Contingencies

Commitments and Contingencies
	12 Months Ended Dec. 31, 2009 USD / shares
Commitments and Contingencies Disclosure
10. Commitments and Contingencies	10. Commitments and Contingencies Devon is party to various legal actions arising in the normal course of business. Matters that are probable of unfavorable outcome to Devon and which can be reasonably estimated are accrued. Such accruals are based on information known about the matters, Devon's estimates of the outcomes of such matters and its experience in contesting, litigating and settling similar matters. None of the actions are believed by management to involve future amounts that would be material to Devon's financial position or results of operations after consideration of recorded accruals although actual amounts could differ materially from management's estimate. Environmental Matters Devon is subject to certain laws and regulations relating to environmental remediation activities associated with past operations, such as the Comprehensive Environmental Response, Compensation, and Liability Act and similar state statutes. In response to liabilities associated with these activities, loss accruals primarily consist of estimated uninsured costs associated with remediation. Devon's monetary exposure for environmental matters is not expected to be material. Royalty Matters Numerous natural gas producers and related parties, including Devon, have been named in various lawsuits alleging violation of the federal False Claims Act. The suits allege that the producers and related parties used below-market prices, improper deductions, improper measurement techniques and transactions with affiliates, which resulted in underpayment of royalties in connection with natural gas and NGLs produced and sold from federal and Indian owned or controlled lands. Devon does not currently believe that it is subject to material exposure with respect to such royalty matters. In 1995, the United States Congress passed the Deep Water Royalty Relief Act. The intent of this legislation was to encourage deep water exploration in the Gulf of Mexico by providing relief from the obligation to pay royalties on certain federal leases. Deep water leases issued in certain years by the Minerals Management Service (the MMS) have contained price thresholds, such that if the market prices for oil or gas exceeded the thresholds for a given year, royalty relief would not be granted for that year. In October 2007, a federal district court ruled in favor of a plaintiff who had challenged the legality of including price thresholds in deep water leases. Additionally, in January 2009 a federal appellate court upheld this district court ruling. This judgment was later appealed to the United States Supreme Court, which, in October 2009, declined to review the appellate court's ruling. The Supreme Court's decision ended the MMS's judicial course to enforce the price thresholds. Prior to September 30, 2009, Devon had $84 million accrued for potential royalties on various deep water leases. Based upon the Supreme Court's decision, Devon reduced to zero the $84 million loss contingency accrual in the third quarter of 2009. The $84 million expense reduction is included in other income in the accompanying 2009 consolidated statement of operations. Hurricane Contin

Fair Value Measurements

Fair Value Measurements
	12 Months Ended Dec. 31, 2009 USD / shares
Fair Value Measurements Disclosure
11. Fair Value Measurements	11. Fair Value Measurements Certain of Devon's assets and liabilities are reported at fair value in the accompanying balance sheets. Such assets and liabilities include amounts for both financial and nonfinancial instruments. The following tables provide fair value measurement information for such assets and liabilities as of December 31, 2009 and 2008. The carrying values of cash and cash equivalents, accounts receivable and accounts payable (including income taxes payable and accrued expenses) included in the accompanying consolidated balance sheets approximated fair value at December 31, 2009 and 2008. These assets and liabilities are not presented in the following tables. Information regarding the fair values of Devon's pension plan assets is provided in Note 8. As of December 31, 2009 Fair Value Measurements Using: Carrying Amount Total Fair Value Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (In millions) Financial assets (liabilities): Gas price swaps...................................... $ 169 $ 169 $ $ 169 $ Gas basis swaps..................................... $ 3 $ 3 $ $ 3 $ Oil price collars....................................... $ (38) $ (38) $ $ (38) $ Interest rate swaps................................. $ 170 $ 170 $ $ 170 $ Debt.......................................................... $ (7,279) $ (8,214) $ (1,432) $ (6,782) $ Long-term investments......................... $ 115 $ 115 $ $ $ 115 Asset retirement obligations (1)............... $ (1,622) $ (1,622) $ $ $ (1,622) As of December 31, 2008 Fair Value Measurements Using: Carrying Amount Total Fair Value Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (In millions) Financial assets (liabilities): Gas price collars..................................... $ 255 $ 255 $ $ 255 $ Interest rate swaps................................. $ 104 $ 104 $ $ 104 $ Debt.......................................................... $ (5,841) $ (6,106) $ (1,005) $ (5,101) $ Long-term investments......................... $ 122 $ 122 $ $ $ 122 Asset retirement obligations (1)............... $ (1,485) $ (1,485) $ $ $ (1,485) ____________________________ (1) Includes $109 million and $98 million of asset retirement obligations related to Devons discontinued operations at December 31, 2009 and 2008, respectively. The following methods and assumptions were used to estimate the fair values of the assets and liabilities in the tables above. Level 1 Fair Value Measurements Debt The fair value of Devon's variable-rate commercial paper borrowings is the carrying value. Leve

Share-Based Compensation

Share-Based Compensation
	12 Months Ended Dec. 31, 2009 USD / shares
Share-Based Compensation Disclosure
12. Share-Based Compensation	12. Share-Based Compensation On June 3, 2009, Devon's stockholders adopted the 2009 Long-Term Incentive Plan, which expires on June 2, 2019. This plan authorizes the Compensation Committee, which consists of non-management members of Devon's Board of Directors, to grant nonqualified and incentive stock options, restricted stock awards, Canadian restricted stock units, performance units, stock appreciation rights and cash-out rights to eligible employees. The plan also authorizes the grant of nonqualified stock options, restricted stock awards, restricted stock units and stock appreciation rights to directors. A total of 21.5 million shares of Devon common stock have been reserved for issuance pursuant to the plan. To calculate shares issued under the plan, options granted represent one share and other awards represent 1.84 shares. Devon also has stock option plans that were adopted in 2005, 2003 and 1997 under which stock options and restricted stock awards were issued to key management and professional employees. Options granted under these plans remain exercisable by the employees owning such options, but no new options or restricted stock awards will be granted under these plans. Devon also has stock options outstanding that were assumed as part of the acquisitions of Ocean, Mitchell Energy Development Corp. and Santa Fe Snyder. With the approval of Devon's Compensation Committee, Devon modified the share-based compensation arrangements for certain of Devons executives in the second quarter of 2008. The modified compensation arrangements provide that executives who meet certain years-of-service and age criteria can retire and continue vesting in outstanding share-based grants. As a condition to receiving the benefits of these modifications, the executives must agree not to use or disclose Devon's confidential information and not to solicit Devon's employees and customers. The executives are required to agree to these conditions at retirement and again in each subsequent year until all grants have vested. Although this modification does not accelerate the vesting of the executives' grants, it does accelerate the expense recognition as executives approach the years-of-service and age criteria. When the modification was made in the second quarter of 2008, certain executives had already met the years-of-service and age criteria. As a result, Devon recognized an additional $27 million of share-based compensation expense in the second quarter of 2008 related to this modification. This additional expense would have been recognized in future reporting periods if the modification had not been made and the executives continued their employment at Devon. The following table presents the effects of share-based compensation included in Devon's accompanying statement of operations for the years ended December 31, 2009, 2008 and 2007. 2009 2008 2007 (In millions) Gross general and administrative expense........................................................ $ 209 $ 212 $ 146 Share-based compensation expense capitalized pursuant to the full cost method of accounting for oil and gas properties

Restructuring Costs

Restructuring Costs
	12 Months Ended Dec. 31, 2009 USD / shares
Restructuring Costs Disclosure
13. Restructuring Costs	13. Restructuring Costs In the fourth quarter of 2009, Devon recognized $153 million of estimated employee severance costs associated with the planned divestitures of its offshore assets that was announced in November 2009. This amount was based on estimates of the number of employees that will ultimately be impacted by the divestitures, and includes $63 million related to accelerated vesting of share-based grants. Of the $153 million total, $105 million relates to Devon's U.S. Offshore operations and the remainder relates to its International discontinued operations. As of the date these financial statements were prepared, only one of the properties Devon intends to sell had actually been sold. Furthermore, the vast majority of employees will not be impacted by the divestitures until the properties are sold. Therefore, Devon's estimate of employee severance costs recognized in the fourth quarter of 2009 was based upon certain key estimates that could change as properties are sold. These estimates include the number of impacted employees, the number of employees offered comparable positions with the buyers and the date of separation for impacted employees.

Other Financial Instruments

Other Financial Instruments
	12 Months Ended Dec. 31, 2009 USD / shares
Other Financial Instruments
14. Other Financial Instruments	14. Other Financial Instruments Until October 31, 2008, Devon owned 14.2 million shares of Chevron common stock. These shares were held in connection with debt owed by Devon that contained an exchange option. The exchange option allowed the debt holders, prior to the debt's maturity of August 15, 2008, to exchange the debt for shares of Chevron common stock owned by Devon. However, Devon had the option to settle any exchanges with cash equal to the market value of Chevron common stock at the time of the exchange. Devon settled exchange requests during 2008 and 2007 by paying $1.0 billion during 2008 and $0.2 billion during 2007. On October 31, 2008, Devon transferred its 14.2 million shares of Chevron common stock to Chevron. In exchange, Devon received Chevron's interest in the Drunkard's Wash coalbed natural gas field in east-central Utah and $280 million in cash. The shares of Chevron common stock and the exchange option embedded in the debt were always recorded on Devons balance sheet at fair value. However, pursuant to accounting rules prior to January 1, 2007, only the change in fair value of the embedded option had historically been included in Devons results of operations. Conversely, the change in fair value of the Chevron common stock had not been included in Devon's results of operations, but instead had been recorded directly to stockholders' equity as part of accumulated other comprehensive income. Effective January 1, 2007, under new accounting rules, Devon elected to begin recognizing the change in fair value of the Chevron common stock in its results of operations. Accordingly, beginning with the first quarter of 2007, the change in fair value of the Chevron common stock owned by Devon, along with the change in fair value of the related exchange option, were both included in Devons results of operations. Also, as a result of this change, Devon reclassified $364 million of after-tax unrealized gains related to Devons investment in Chevron common stock from accumulated other comprehensive income to retained earnings in the first quarter of 2007. The following table presents the changes in fair value and cash settlements related to Devons other financial instruments, as well as its investment in Chevron Common Stock as presented in the accompanying consolidated statements of operations. Year Ended December 31, 2009 2008 2007 (In millions) (Gains) and losses from: Interest rate swaps fair value changes (See Note 3)................ $ (66) $ (104) $ (1) Interest rate swaps settlements (See Note 3)............................ (40) (1) Chevron common stock.................................................................. 363 (281) Option embedded in exchangeable debentures.......................... (109) 248 Total................................................................................................ $ (106) $ 149 $ (34)

Reduction of Carrying Value of

Reduction of Carrying Value of Oil and Gas Properties
	12 Months Ended Dec. 31, 2009 USD / shares
Reduction of Carrying Value of Oil and Gas Properties Disclosure
15. Reduction of Carrying Value of Oil and Gas Properties	15. Reduction of Carrying Value of Oil and Gas Properties During 2009 and 2008, Devon reduced the carrying values of certain of its oil and gas properties due to full cost ceiling limitations. A summary of these reductions and additional discussion is provided below. Year Ended December 31, 2009 2008 Gross Net of Taxes Gross Net of Taxes (In millions) United States...................................................................... $ 6,408 $ 4,085 $ 6,538 $ 4,168 Canada............................................................................... 3,353 2,488 Total................................................................................. $ 6,408 $ 4,085 $ 9,891 $ 6,656 The 2009 reduction was recognized in the first quarter and the 2008 reductions were recognized in the fourth quarter. The reductions resulted from significant decreases in each country's full cost ceiling compared to the immediately preceding quarter. The lower United States ceiling value in the first quarter of 2009 largely resulted from the effects of declining natural gas prices subsequent to December 31, 2008. The lower ceiling values in the fourth quarter of 2008 largely resulted from the effects of sharp declines in oil, gas and NGL prices compared to September 30, 2008.

Other Income

Other Income
	12 Months Ended Dec. 31, 2009 USD / shares
Other Income Disclosure
16. Other Income	16. Other Income The components of other income include the following: Year Ended December 31, 2009 2008 2007 (In millions) Interest and dividend income............................................. $ 8 $ 54 $ 48 Reduction of deep water royalties (see Note 10)............ 84 Hurricane insurance proceeds (see Note 10).................... 162 Other........................................................................................ (24) 1 3 Total................................................................................. $ 68 $ 217 $ 51

Income Taxes

Income Taxes
	12 Months Ended Dec. 31, 2009 USD / shares
Income Taxes Disclosure
17. Income Taxes	17. Income Taxes Income Tax (Benefit) Expense The (loss) earnings from continuing operations before income taxes and the components of income tax (benefit) expense for the years 2009, 2008 and 2007 were as follows: Year Ended December 31, 2009 2008 2007 (In millions) (Loss) earnings from continuing operations before income taxes: U.S.................................................................................................. $ (4,961) $ (2,190) $ 2,642 Canada.......................................................................................... 435 (1,970) 685 Total............................................................................................... $ (4,526) $ (4,160) $ 3,327 Current income tax expense: U.S. federal................................................................................... $ 45 $ 258 $ 83 Various states............................................................................... 18 31 17 Canada and various provinces................................................. 178 152 135 Total current tax expense.......................................................... 241 441 235 Deferred income tax (benefit) expense: U.S. federal................................................................................... (1,846) (875) 745 Various states............................................................................... (111) (65) 28 Canada and various provinces................................................. (57) (622) (166) Total deferred tax (benefit) expense........................................ (2,014) (1,562) 607 Total income tax (benefit) expense........................................... $ (1,773) $ (1,121) $ 842 The taxes on the results of discontinued operations presented in the accompanying consolidated statements of operations were all related to Devon's international operations outside North America. Total income tax (benefit) expense differed from the amounts computed by applying the U.S. federal income tax rate to (loss) earnings from continuing operations before income taxes as a result of the following: Year Ended December 31, 2009 2008 2007 (In millions) Expected income tax (benefit) expense based on U.S. statutory tax rate of 35%............................................................. $ (1,584) $ (1,456) $ 1,164 State income taxes......................................................................... (99) (29) 30 Taxation on Canadian operations.............................................. (31) 227 (10) Repatriations and tax policy election changes......................... 312 Canadian statutory rate reduction.............................................. (261) Other......................................................................

Discontinued Operations

Discontinued Operations
	12 Months Ended Dec. 31, 2009 USD / shares
Discontinued Operations Disclosure
18. Discontinued Operations	18. Discontinued Operations For the three-year period ended December 31, 2009, Devon's discontinued operations include amounts related to its assets in Azerbaijan, Brazil, China and other minor International properties that it is in the process of divesting. Additionally, during 2007 and 2008, Devon's discontinued operations included amounts related to its assets in Egypt and West Africa, including Equatorial Guinea, Cote d'Ivoire, Gabon and other countries in the region, until they were sold. Devon's African sales generated total proceeds of $3.0 billion. The following table presents the gains on the African divestiture transactions by year. Year Ended December 31, 2009 2008 2007 Gross Net of Taxes Gross Net of Taxes Gross Net of Taxes (In millions) Egypt........................................................................ $ $ $ $ $ 90 $ 90 Equatorial Guinea................................................. 619 544 Gabon...................................................................... 117 122 Cote dIvoire.......................................................... 17 17 83 95 Other........................................................................ 8 Total...................................................................... $ 17 $ 17 $ 819 $ 769 $ 90 $ 90 Revenues related to Devon's discontinued operations totaled $945 million, $1.7 billion and $2.2 billion during 2009, 2008 and 2007, respectively. Earnings from discontinued operations before income taxes totaled $322 million, $1.3 billion and $1.6 billion during 2009, 2008 and 2007, respectively. The following table presents the main classes of assets and liabilities associated with Devon's discontinued operations as of December 31, 2009 and 2008. December 31, 2009 2008 (In millions) Assets: Cash and cash equivalents............................................................ $ 365 $ 189 Accounts receivable........................................................................ 165 112 Other current assets......................................................................... 127 91 Current assets................................................................................. $ 657 $ 392 Property and equipment, net of accumulated depreciation, depletion and amortization......................................................... $ 1,099 $ 954 Goodwill............................................................................................ 68 68 Other long-term assets.................................................................... 83 106 Total long-term assets.................................................................. $ 1,250 $ 1,128 Liabilities: Accounts payable........................................................................... $ 158

Sheet1

(Loss) Earnings Per Share
	12 Months Ended Dec. 31, 2009 USD / shares
(Loss) Earnings Per Share Disclosure
19. (Loss) Earnings Per Share	19. (Loss) Earnings Per Share The following table reconciles earnings from continuing operations and common shares outstanding used in the calculations of basic and diluted (loss) earnings per share for 2009, 2008 and 2007. Because a net loss from continuing operations was incurred during 2009 and 2008, the dilutive shares produce an antidilutive net loss per share result. Therefore, the diluted loss per share from continuing operations reported in the accompanying 2009 and 2008 consolidated statements of operations are the same as the basic loss per share amounts. (Loss) Earnings Common Shares (Loss) Earnings per Share (In millions, except per share amounts) Year Ended December 31, 2009: Loss from continuing operations...................................................... $ (2,753) 444 Attributable to participating securities............................................. 31 (5) Basic and diluted loss per share........................................................ $ (2,722) 439 $ (6.20) Year Ended December 31, 2008: Loss from continuing operations...................................................... $ (3,039) 444 Attributable to participating securities............................................. 31 (5) Less preferred stock dividends.......................................................... (5) Basic and diluted loss per share........................................................ $ (3,013) 439 $ (6.86) Year Ended December 31, 2007: Earnings from continuing operations............................................... $ 2,485 445 Attributable to participating securities............................................. (23) (4) Less preferred stock dividends.......................................................... (10) Basic earnings per share..................................................................... 2,452 441 $ 5.56 Dilutive effect of potential common shares issuable upon the exercise of outstanding stock options.......................... 5 Diluted earnings per share.................................................................. $ 2,452 446 $ 5.50 Certain options to purchase shares of Devon's common stock were excluded from the dilution calculations because the options were antidilutive. These excluded options totaled 9 million, 5 million and 2 million in 2009, 2008 and 2007, respectively.

Segment Information

Segment Information
	12 Months Ended Dec. 31, 2009 USD / shares
Segment Information Disclosure
20. Segment Information	20. Segment Information Devon manages its operations through seven distinct operating segments, or divisions, which are defined primarily by geographic areas. For financial reporting purposes, Devon aggregates its United States divisions into one reporting segment due to the similar nature of the business. However, Devon's Canadian and International divisions are reported as separate reporting segments primarily due to significant differences in the respective regulatory environments. Devon's segments are all primarily engaged in oil and gas producing activities, and certain information regarding such activities for each segment is included in Note 22. Following is certain financial information regarding Devon's segments for 2009, 2008 and 2007. The revenues reported are all from external customers. U.S. Canada International Total (In millions) As of December 31, 2009: Current assets, including current assets held for sale.............. $ 1,449 $ 886 $ 657 $ 2,992 Property and equipment, net....................................................... 13,199 5,568 18,767 Goodwill.......................................................................................... 3,046 2,884 5,930 Other assets, including long-term assets held for sale............. 674 73 1,250 1,997 Total assets................................................................................ $ 18,368 $ 9,411 $ 1,907 $ 29,686 Current liabilities, including current liabilities held for sale.... $ 2,993 $ 575 $ 234 $ 3,802 Long-term debt.............................................................................. 2,866 2,981 5,847 Asset retirement obligations, long-term..................................... 754 664 1,418 Other liabilities, including long-term liabilities held for sale... 890 47 213 1,150 Deferred income taxes.................................................................. 860 1,039 1,899 Stockholders' equity...................................................................... 10,005 4,105 1,460 15,570 Total liabilities and stockholders' equity.............................. $ 18,368 $ 9,411 $ 1,907 $ 29,686 U.S. Canada Total (In millions) Year Ended December 31, 2009: Revenues: Oil, gas and NGL sales............................................................... $ 3,958 $ 2,139 $ 6,097 Net gain on oil and gas derivative financial instruments..... 382 2 384 Marketing and midstream revenues........................................ 1,498 36 1,534 Total revenues.......................................................................... 5,838 2,177 8,015 Expenses and other income, net: Lease operating expenses.......................................................... 997 673 1,670

Supplemental Information to Sta

Supplemental Information to Statements of Cash Flows
	12 Months Ended Dec. 31, 2009 USD / shares
Supplemental Information to Statements of Cash Flows Disclosure
21. Supplemental Information to Statements of Cash Flows	21. Supplemental Information to Statements of Cash Flows Additional information related to Devons 2009, 2008 and 2007 statements of cash flows are presented below: Year Ended December 31, 2009 2008 2007 (In millions) Net decrease (increase) in working capital: Decrease (increase) in accounts receivable.............................................. $ 142 $ 187 $ (286) Decrease (increase) in other current assets............................................... 212 (46) (31) (Decrease) increase in accounts payable................................................. (91) 159 45 Increase in revenues and royalties due to others.................................... 11 79 Decrease in income taxes payable............................................................ (48) (309) (80) Decrease in other current liabilities............................................................ (66) (209) (239) Net decreases (increase) in working capital.......................................... $ 149 $ (207) $ (512) Supplementary cash flow data: Interest paid (net of capitalized interest).................................................. $ 314 $ 336 $ 406 Income taxes paid (continuing and discontinued operations)............. $ 68 $ 1,436 $ 588 Noncash investing activity exchange of investment in Chevron common stock for oil and gas properties................................................. $ $ 610 $

Supplemental Information on Oil

Supplemental Information on Oil and Gas Operations (Unaudited)
	12 Months Ended Dec. 31, 2009 USD / shares
Supplemental Information on Oil and Gas Operations (Unaudited) Disclosure
22. Supplemental Information on Oil and Gas Operations (Unaudited)	22. Supplemental Information on Oil and Gas Operations (Unaudited) Supplemental unaudited information regarding Devon's oil and gas activities is presented in this note. The information is provided separately by country and continent. Additionally, the costs incurred and reserves information for the United States is segregated between Devon's onshore and offshore operations. Unless otherwise noted, this supplemental information excludes amounts for all periods presented related to Devon's discontinued operations. Costs Incurred The following tables reflect the costs incurred in oil and gas property acquisition, exploration, and development activities. Year Ended December 31, 2009 U.S. Onshore U.S. Offshore Total U.S. Canada North America Property acquisition costs: (In millions) Proved properties.......................................................... $ 17 $ $ 17 $ 18 $ 35 Unproved properties..................................................... 52 11 63 72 135 Exploration costs............................................................ 122 260 382 152 534 Development costs......................................................... 2,011 537 2,548 835 3,383 Costs incurred............................................................. $ 2,202 $ 808 $ 3,010 $ 1,077 $ 4,087 Year Ended December 31, 2008 U.S. Onshore U.S. Offshore Total U.S. Canada North America Property acquisition costs: (In millions) Proved properties.......................................................... $ 822 $ $ 822 $ $ 822 Unproved properties..................................................... 1,226 185 1,411 352 1,763 Exploration costs............................................................ 206 638 844 173 1,017 Development costs......................................................... 4,182 551 4,733 1,131 5,864 Costs incurred............................................................. $ 6,436 $ 1,374 $ 7,810 $ 1,656 $ 9,466 Year Ended December 31, 2007 U.S. Onshore U.S. Offshore Total U.S. Canada North America Property acquisition costs: (In millions) Proved properties.......................................................... $ 3 $ $ 3 $ 7 $ 10 Unproved properties..................................................... 77 79 156 49 205 Exploration costs............................................................ 195 374 569 211 780 Development costs......................................................... 3,183 359 3,542 1,098 4,640 Costs incurred............................................................. $ 3,458 $ 812 $ 4,270 $ 1,365

Supplemental Quarterly Financia

Supplemental Quarterly Financial Information (Unaudited)
	12 Months Ended Dec. 31, 2009 USD / shares
Supplemental Quarterly Financial Information (Unaudited) Disclosure
23. Supplemental Quarterly Financial Information (Unaudited)	23. Supplemental Quarterly Financial Information (Unaudited) Following is a summary of the unaudited interim results of operations for the years ended December 31, 2009 and 2008. 2009 First Quarter Second Quarter Third Quarter Fourth Quarter Full Year (In millions, except per share amounts) Revenues..................................................................... $ 1,900 $ 1,822 $ 1,848 $ 2,445 $ 8,015 (Loss) earnings from continuing operations.......... $ (3,882) $ 190 $ 382 557 $ (2,753) (Loss) earnings from discontinued operations...... (77) 124 117 110 274 Net (loss) earnings...................................................... $ (3,959) $ 314 $ 499 667 $ (2,479) Basic net (loss) earnings per common share: (Loss) earnings from continuing operations........ $ (8.74) $ 0.43 $ 0.86 $ 1.25 $ (6.20) (Loss) earnings from discontinued operations.... (0.18) 0.28 0.27 0.25 0.62 Net (loss) earnings.................................................... $ (8.92) $ 0.71 $ 1.13 $ 1.50 $ (5.58) Diluted net (loss) earnings per common share: (Loss) earnings from continuing operations........ $ (8.74) $ 0.42 $ 0.86 $ 1.25 $ (6.20) (Loss) earnings from discontinued operations.... (0.18) 0.28 0.26 0.24 0.62 Net (loss) earnings.................................................... $ (8.92) $ 0.70 $ 1.12 $ 1.49 $ (5.58) 2008 First Quarter Second Quarter Third Quarter Fourth Quarter Full Year (In millions, except per share amounts) Revenues..................................................................... $ 2,503 $ 3,152 $ 5,651 $ 2,552 $ 13,858 Earnings (loss) from continuing operations........... $ 415 $ 423 $ 2,393 (6,270) $ (3,039) Earnings (loss) from discontinued operations....... 334 878 225 (546) 891 Net earnings (loss)...................................................... $ 749 $ 1,301 $ 2,618 (6,816) $ (2,148) Basic net earnings (loss) per common share: Earnings (loss) from continuing operations......... $ 0.93 $ 0.94 $ 5.42 $ (14.19) $ (6.86) Earnings (loss) from discontinued operations..... 0.75 1.97 0.51 (1.23) 2.01 Net earnings (loss).................................................... $ 1.68 $ 2.91 $ 5.93 $ (15.42) $ (4.85) Diluted net earnings (loss) per common share: Earnings (loss) from continuing operations......... $ 0.92 $ 0.93 $ 5.37 $ (14.19) $ (6.86) Earnings (loss) from discontinued operations..... 0.74 1.95 0.51 (1.23) 2.01 Net earnings (loss)................................................