Devon Energy (DVN) 8-K Devon Energy Reports 16 Percent Production Growth In Second Quarter 2007 As Net Earnings Climb to $2.00 Per Share

EXHIBIT 99.1

20 North Broadway
Oklahoma City, Oklahoma 73102-8260 Telephone: (405) 235-3611
Fax: (405) 552-4667

NEWS RELEASE

Investor contact:	Zack Hager
	(405) 552-4526
Media contact:	Brian Engel
	(405) 228-7750

DEVON ENERGY REPORTS 16 PERCENT PRODUCTION GROWTH IN SECOND
QUARTER 2007 AS NET EARNINGS CLIMB TO $2.00 PER SHARE

OKLAHOMA CITY — August 1, 2007— Devon Energy Corporation (NYSE:DVN) today reported net earnings of $904 million, or $2.02 per common share, ($2.00 per diluted common share), for the quarter ended June 30, 2007. In comparison, second-quarter 2006 net earnings were $859 million, or $1.94 per common share ($1.92 per diluted common share).

     For the six months ended June 30, 2007, the company reported net earnings of $1.6 billion, or $3.48 per common share ($3.44 per diluted common share). For the six months ended June 30, 2006, Devon earned $1.6 billion, or $3.52 per common share ($3.47 per diluted common share).

     Securities analysts typically exclude certain items from their published estimates. In aggregate, these items increased Devon’s second-quarter 2007 net earnings by $59 million, or 13 cents per diluted share. The adjusting items are discussed in detail later in this news release.

Fifth Consecutive Quarterly Production Increase Exceeds Expectations

     Devon increased oil and gas production from continuing operations in the second quarter of 2007 to 56.2 million oil-equivalent barrels (Boe). This is a 16 percent increase compared with second-quarter 2006 production. Devon has increased oil and gas production from retained properties for five consecutive quarters.

     Second-quarter production benefited from better than expected performance from several core properties including the Barnett Shale. Also contributing to the production increase were minor favorable royalty adjustments in Canada, the timing of oil sales in Azerbaijan and a delay in scheduled downtime at the Panyu field in China.

Record Barnett Shale Production Leads Operating Highlights

     Devon drilled 425 successful wells in the second quarter of 2007 with an overall success rate of 98 percent. Following are highlights of operations conducted in the second quarter of 2007.

Page 1 of 12

• Devon’s share of natural gas production from the Barnett Shale field in north Texas averaged 797 million cubic feet of gas equivalent per day in the second quarter of 2007. This was a new quarterly production record and 37 percent greater than the second quarter of 2006.

• The Independence Hub in the Gulf of Mexico was readied for production in the second quarter of 2007. The Merganser field, in which Devon has a 50 percent working interest, is expected to begin producing natural gas to the Independence Hub in August. Devon expects its net share of production from Merganser to be about 50 million cubic feet of gas per day.

• In May, the Ocean Endeavor deepwater drilling rig, which is under long-term contract to Devon, arrived in the Gulf of Mexico. In July, the Ocean Endeavor commenced drilling an exploratory well on the Chuck prospect. Chuck is the first well operated by Devon to target a Lower Tertiary objective. Chuck, in 6,500 feet of water, is expected to reach a total depth of about 31,500 feet in the fourth quarter of 2007. Devon has a 39.5 percent working interest in the Chuck prospect.

• In the offshore Polvo field in Brazil during the second quarter, Devon began drilling and completion of the first of 10 planned oil wells. Production from the first well commenced in late July. Additional wells will be drilled in 2007 and 2008. The company expects its net share of production from Polvo to reach about 26,000 barrels per day in 2008.

• In Canada in the second quarter, Devon was finalizing construction and commissioning of the Jackfish project in the Alberta oil sands. Steam injection at Jackfish commenced on July 16, 2007. The 100 percent Devon-owned project is sized to produce 35,000 barrels of oil per day when fully operational in late 2008.

• Also in Alberta, oil production from Devon’s Iron River and Manatokan fields helped the Lloydminster area average 33,000 barrels per day in the second quarter of 2007. This was 48% higher than the same period a year ago. Devon plans to drill nearly 400 wells in Lloydminster during 2007.

Increased Production Fuels 26 Percent Sales Growth

     Combined oil, gas and natural gas liquids production from continuing operations averaged 618 thousand Boe per day in the second quarter of 2007. This was a 16 percent increase in daily production from continuing operations compared with the second quarter in 2006. The production growth was concentrated in onshore fields in the United States and in Azerbaijan.

     Second-quarter combined daily production from continuing operations increased five percent compared with the first quarter of 2007. Devon now expects full-year 2007 production from continuing operations at the high end of a forecast range of 219 to 221 million Boe. This represents about a 10 percent increase when compared with 2006 annual production.

     Sales of oil, natural gas and natural gas liquids reached $2.5 billion in the second quarter of 2007. This was a 26 percent increase compared with the second quarter of 2006. The increase in sales was the result of greater production and increased realized prices for natural gas and natural gas liquids.

     The average realized price for natural gas increased 11 percent in the second quarter of 2007 to $6.50 per thousand cubic feet. This compares with $5.85 per thousand cubic feet in the second quarter of 2006. The company’s average realized oil price decreased four percent to $60.01 per barrel in the second quarter of 2007 compared with $62.38 per barrel in the year-ago

Page 2 of 12

period. Devon’s realized natural gas liquids price increased four percent to $35.03 per barrel from $33.83 per barrel in the second quarter of 2006.

     Second-quarter 2007 marketing and midstream operating profit was $119 million, compared with $105 million in the second quarter of 2006. The 13 percent increase resulted primarily from an increase in marketed gas volumes and higher natural gas and natural gas liquids prices.

Cost Increases Supported by Greater Production and Revenues

     Devon’s expenses in all categories are higher in 2007 than in 2006, but generally in line with expectations. The expense increases are being driven by industry-wide upward cost pressure and higher production and activity levels. Higher costs in the second quarter of 2007 were more than offset by higher revenues, leading to an increase in net earnings.

African Results Reported as Discontinued Operations

     Devon is in the process of divesting its assets and terminating operations in Egypt and West Africa. In accordance with accounting standards, Devon has reclassified the assets, liabilities and results of its operations in Egypt and West Africa 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 is a table of revenues, expenses and production categories and the amounts reclassified as discontinued operations for each period presented.

Cash Flow Before Balance Sheet Changes Reaches Record Levels

     Cash flow before balance sheet changes reached a record total of $1.8 billion in the second quarter of 2007. The company used cash flow and cash on hand to fund $1.4 billion of capital expenditures during the second quarter.

     At June 30, 2007, net debt had been reduced to 20 percent of adjusted capitalization, compared with 26 percent at June 30, 2006. Reconciliations of cash flow before balance sheet changes, net debt and adjusted capitalization, which are non-GAAP measures, are provided in this release.

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 second-quarter 2007 reported earnings were as follows:

• A change in fair value of financial instruments increased second-quarter 2007 earnings by $10 million pre-tax ($6 million after tax).

• An unrealized gain on natural gas derivative instruments increased second-quarter 2007 earnings by $9 million pre-tax ($6 million after tax).

• A reduction in the Canadian statutory income tax rate increased after-tax earnings by $30 million.

• The decisions to exit Egypt and West Africa generated financial benefits that increased second-quarter 2007 earnings by $57 million pre-tax ($30 million after tax).

Page 3 of 12

• A reduction in the carrying value of assets held for sale in West Africa reduced second-quarter earnings by $64 million pre-tax ($13 million after tax).

     The following table summarizes the effects of these items on second-quarter 2007 earnings and income taxes.

Summary of Items Typically Excluded by Securities Analysts — Second Quarter 2007
(in millions)

	Pretax											After-tax			Cash Flow Before
	Earnings			Income Tax Effect								Earnings			Balance Sheet
	Effect			Current		Deferred			Total			Effect			Changes Effect
Change in fair value of financial instruments	$	10			—		4			4			6			—
Unrealized gain on natural gas derivatives		9			—		3			3			6			—
Change in Canadian income tax rate		—			—		(30	)		(30	)		30			—
Financial benefits generated by decision to exit Africa		57			—		27			27			30			—
Reduction of carrying value in West Africa		(64	)		—		(51	)		(51	)		(13	)		—
Totals	$	12			—		(47	)		(47	)		59			—

     In aggregate, these items increased second-quarter 2007 net earnings by $59 million, or 13 cents per common share (13 cents per diluted share).

Conference Call to be Webcast Today

     Devon will discuss its second-quarter 2007 financial and operating results and changes to its full-year 2007 outlook 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 atwww.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, inflation or lack of availability of goods and services, environmental risks, drilling risks and 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 United States Securities and Exchange Commission permits oil and gas companies, in their filings with the SEC, to disclose only proved reserves that a company has demonstrated by actual production or conclusive formation tests to be economically and legally producible under existing economic and operating conditions. This release may contain certain terms, such as resource potential, reserve potential, probable reserves, possible reserves and exploration target size. The SEC guidelines strictly prohibit us from including these terms in filings with the SEC. U.S. investors are urged to consider closely the disclosure in ourForm 10-K, File No. 001-32318, 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.

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

Page 4 of 12

DEVON ENERGY CORPORATION
UNAUDITED FINANCIAL AND OPERATIONAL INFORMATION

PRODUCTION DATA(net of royalties)
All periods exclude discontinued operations from Egypt and West Africa

	Quarter Ended				Six Months Ended
	June 30,				June 30,
	2007		2006		2007		2006
Total Period Production
Natural Gas (Bcf)
U.S. Onshore		135.9		117.3		263.6		230.8
U.S. Offshore		18.9		18.6		37.5		35.0
Total U.S.		154.8		135.9		301.1		265.8
Canada		57.0		62.7		112.3		121.8
International		0.5		0.7		0.8		1.3
Total Natural Gas		212.3		199.3		414.2		388.9
Oil (MMBbls)
U.S. Onshore		2.9		2.8		5.7		5.6
U.S. Offshore		2.0		2.3		3.7		4.5
Total U.S.		4.9		5.1		9.4		10.1
Canada		4.0		3.1		7.5		6.3
International		5.5		1.5		10.8		3.2
Total Oil		14.4		9.7		27.7		19.6
Natural Gas Liquids (MMBbls)
U.S. Onshore		5.1		4.4		9.9		8.9
U.S. Offshore		0.2		0.1		0.3		0.2
Total U.S.		5.3		4.5		10.2		9.1
Canada		1.1		1.2		2.2		2.4
International		—		—		—		—
Total Natural Gas Liquids		6.4		5.7		12.4		11.5
Oil Equivalent (MMBoe)
U.S. Onshore		30.7		26.8		59.5		53.0
U.S. Offshore		5.3		5.4		10.3		10.5
Total U.S.		36.0		32.2		69.8		63.5
Canada		14.6		14.7		28.4		29.0
International		5.6		1.7		10.9		3.3
Total Oil Equivalent		56.2		48.6		109.1		95.8
Average Daily Production
Natural Gas (MMcf)
U.S. Onshore		1,493.7		1,288.7		1,456.3		1,275.0
U.S. Offshore		207.6		204.0		207.0		193.5
Total U.S.		1,701.3		1,492.7		1,663.3		1,468.5
Canada		626.2		689.0		620.7		672.8
International		5.6		7.2		4.3		7.1
Total Natural Gas		2,333.1		2,188.9		2,288.3		2,148.4
Oil (MBbls)
U.S. Onshore		31.5		30.8		31.1		31.0
U.S. Offshore		22.0		24.7		20.5		24.5
Total U.S.		53.5		55.5		51.6		55.5
Canada		44.0		33.6		41.5		34.7
International		60.9		16.9		59.8		17.4
Total Oil		158.4		106.0		152.9		107.6
Natural Gas Liquids (MBbls)
U.S. Onshore		56.4		48.5		54.8		49.1
U.S. Offshore		2.2		1.0		1.8		1.3
Total U.S.		58.6		49.5		56.6		50.4
Canada		11.7		13.2		12.0		13.4
International		—		—		—		—
Total Natural Gas Liquids		70.3		62.7		68.6		63.8
Oil Equivalent (MBoe)
U.S. Onshore		336.9		294.1		328.7		292.7
U.S. Offshore		58.8		59.8		56.8		58.0
Total U.S.		395.7		353.9		385.5		350.7
Canada		160.1		161.6		157.0		160.2
International		61.8		18.1		60.5		18.6
Total Oil Equivalent		617.6		533.6		603.0		529.5

Page 5 of 12

DEVON ENERGY CORPORATION
UNAUDITED FINANCIAL AND OPERATIONAL INFORMATION

REALIZED PRICE DATA
(average realized prices)

	Quarter Ended				Six Months Ended
	June 30,				June 30,
	2007		2006		2007		2006
Realized Prices
Natural Gas ($/Mcf)
U.S. Onshore	$	6.25	$	5.67	$	6.01	$	6.27
U.S. Offshore	$	7.82	$	7.39	$	7.51	$	7.80
Total U.S.	$	6.44	$	5.91	$	6.20	$	6.47
Canada	$	6.66	$	5.70	$	6.55	$	6.51
International	$	6.19	$	7.13	$	5.16	$	6.61
Total Natural Gas	$	6.50	$	5.85	$	6.29	$	6.49
Oil ($/Bbl)
U.S. Onshore	$	60.82	$	64.87	$	56.02	$	61.22
U.S. Offshore	$	65.35	$	67.51	$	60.16	$	63.87
Total U.S.	$	62.68	$	66.05	$	57.67	$	62.39
Canada	$	46.32	$	54.52	$	45.01	$	46.14
International	$	67.57	$	65.96	$	62.76	$	61.35
Total Oil	$	60.01	$	62.38	$	56.22	$	56.99
Natural Gas Liquids ($/Bbl)
U.S. Onshore	$	33.35	$	30.53	$	30.54	$	28.55
U.S. Offshore	$	31.14	$	47.05	$	30.52	$	41.06
Total U.S.	$	33.26	$	30.88	$	30.54	$	28.86
Canada	$	43.82	$	44.87	$	40.37	$	43.70
International	$	—	$	—	$	—	$	—
Total Natural Gas Liquids	$	35.03	$	33.83	$	32.26	$	31.98
Oil Equivalent ($/Boe)
U.S. Onshore	$	38.99	$	36.69	$	37.05	$	38.61
U.S. Offshore	$	53.24	$	53.98	$	50.05	$	53.90
Total U.S.	$	41.11	$	39.61	$	38.96	$	41.14
Canada	$	41.99	$	39.31	$	40.88	$	40.99
International	$	67.11	$	64.45	$	62.39	$	59.98
Total Oil Equivalent	$	43.94	$	40.36	$	41.81	$	41.76

BENCHMARK PRICES
(average prices)

	Quarter Ended				Six Months Ended
	June 30,				June 30,
	2007		2006		2007		2006
Benchmark Prices
Natural Gas ($/Mcf) — Henry Hub	$	7.55	$	6.80	$	7.16	$	7.91
Oil ($/Bbl) — West Texas Intermediate (Cushing)	$	65.08	$	70.64	$	61.71	$	67.03

PRICE DIFFERENTIALS, EXCLUDING EFFECTS OF HEDGES
(average floating price differentials from benchmark prices)

	Quarter Ended						Six Months Ended
	June 30,						June 30,
	2007			2006			2007			2006
Price Differentials
Natural Gas ($/Mcf)
U.S. Onshore	$	(1.39	)	$	(1.13	)	$	(1.11	)	$	(1.64	)
U.S. Offshore	$	0.27		$	0.59		$	0.35		$	(0.11	)
Total U.S.	$	(1.19	)	$	(0.89	)	$	(0.93	)	$	(1.44	)
Canada	$	(0.69	)	$	(0.99	)	$	(0.40	)	$	(1.22	)
International	$	(1.36	)	$	0.33		$	(2.00	)	$	(1.30	)
Total Natural Gas	$	(1.06	)	$	(0.92	)	$	(0.79	)	$	(1.37	)
Oil ($/Bbl)
U.S. Onshore	$	(4.26	)	$	(5.77	)	$	(5.69	)	$	(5.81	)
U.S. Offshore	$	0.27		$	(3.13	)	$	(1.55	)	$	(3.16	)
Total U.S.	$	(2.40	)	$	(4.59	)	$	(4.04	)	$	(4.64	)
Canada	$	(18.76	)	$	(16.12	)	$	(16.70	)	$	(20.89	)
International	$	2.49		$	(4.68	)	$	1.05		$	(5.68	)
Total Oil	$	(5.07	)	$	(8.26	)	$	(5.49	)	$	(10.04	)

Page 6 of 12

DEVON ENERGY CORPORATION
UNAUDITED FINANCIAL AND OPERATIONAL INFORMATION

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

	Quarter Ended							Six Months Ended
	June 30,							June 30,
	2007			2006				2007			2006
Revenues
Oil sales	$	865		$	602			$	1,556		$	1,110
Gas sales		1,380			1,165		��		2,606			2,523
Natural gas liquids sales		224			193				401			369
Marketing & midstream revenues		460			390				839			848
Total revenues		2,929			2,350				5,402			4,850
Expenses and other income, net
Lease operating expenses		439			342				869			673
Production taxes		90			86				170			169
Marketing & midstream operating costs and expenses		341			285				611			623
Depreciation, depletion and amortization of oil and gas properties		645			490				1,232			933
Depreciation and amortization of non-oil and gas properties		49			43				95			84
Accretion of asset retirement obligation		18			13				36			23
General & administrative expenses		113			90				232			180
Interest expense		107			102				217			203
Change in fair value of financial instruments		(10	)		47				(9	)		59
Reduction of carrying value of oil and gas properties		—			16				—			16
Other income, net		(17	)		(29	)			(43	)		(58	)
Total expenses and other income, net		1,775			1,485				3,410			2,905
Earnings from continuing operations before income tax expense		1,154			865				1,992			1,945
Income tax expense
Current		174			100				363			324
Deferred		156			2				231			142
Total income tax expense		330			102				594			466
Earnings from continuing operations		824			763				1,398			1,479
Discontinued operations
Earnings from discontinued operations before income tax expense		128			178				265			225
Income tax expense		48			82				108			145
Earnings from discontinuing operations		80			96				157			80
Net earnings		904			859				1,555			1,559
Preferred stock dividends		3			3				5			5
Net earnings applicable to common stockholders	$	901		$	856			$	1,550		$	1,554
Net earnings per weighted average common share outstanding
Basic	$	2.02		$	1.94			$	3.48		$	3.52
Diluted	$	2.00		$	1.92			$	3.44		$	3.47
Basic weighted average shares outstanding		446			440				445			441
Diluted weighted average shares outstanding		450			446				450			447

Page 7 of 12

DEVON ENERGY CORPORATION
UNAUDITED FINANCIAL AND OPERATIONAL INFORMATION

CONSOLIDATED BALANCE SHEETS
(in millions)

	June 30,		December 31,
	2007		2006
			(Audited)
Assets
Current assets
Cash and cash equivalents	$	1,042	$	692
Short-term investments, at fair value		315		574
Accounts receivable		1,375		1,324
Current assets held for sale		175		232
Other current assets		259		390
Total current assets		3,166		3,212
Property and equipment, at cost, based on the full cost method of accounting for oil and gas properties ($3,282 and $3,293 excluded from amortization in 2007 and 2006, respectively)		43,992		39,585
Less accumulated depreciation, depletion and amortization		18,338		16,429
Net property and equipment		25,654		23,156
Investment in Chevron Corporation common stock, at fair value		1,195		1,043
Goodwill		5,961		5,706
Assets held for sale		1,675		1,619
Other assets		380		327
Total Assets	$	38,031	$	35,063
Liabilities and Stockholders’ Equity
Current liabilities
Accounts payable — trade	$	1,139	$	1,154
Revenues and royalties due to others		509		522
Income taxes payable		171		82
Short-term debt		2,022		2,205
Accrued interest payable		119		114
Current portion of asset retirement obligation, at fair value		45		53
Current liabilities associated with assets held for sale		138		173
Accrued expenses and other current liabilities		273		342
Total current liabilities		4,416		4,645
Debentures exchangeable into shares of Chevron Corporation common stock		737		727
Other long-term debt		4,837		4,841
Financial instruments, at fair value		445		302
Asset retirement obligation, at fair value		1,214		804
Liabilities associated with assets held for sale		428		429
Other liabilities		666		583
Deferred income taxes		5,602		5,290
Stockholders’ equity
Preferred stock		1		1
Common stock		45		44
Additional paid-in capital		6,956		6,840
Retained earnings		10,893		9,114
Accumulated other comprehensive income		1,791		1,444
Treasury stock		—		(1	)
Stockholders’ Equity		19,686		17,442
Total Liabilities & Stockholders’ Equity	$	38,031	$	35,063
Common Shares Outstanding		446		444

Page 8 of 12

DEVON ENERGY CORPORATION
UNAUDITED FINANCIAL AND OPERATIONAL INFORMATION

CONSOLIDATED STATEMENTS OF CASH FLOWS
(in millions)

	Six Months Ended June 30,
	2007			2006
Cash Flows From Operating Activities
Net earnings	$	1,555		$	1,559
Earnings from discontinued operations, net of tax		(157	)		(80	)
Adjustments to reconcile net earnings from continuing operations to net cash provided by operating activities:
Depreciation, depletion and amortization		1,327			1,017
Deferred income tax expense		231			142
Net gain on sales of non-oil and gas property and equipment		(1	)		(5	)
Reduction of carrying value of oil and gas properties		—			16
Other non-cash charges		95			112
Changes in assets and liabilities:
(Increase) decrease in:
Accounts receivable		32			247
Other current assets		(27	)		(12	)
Long-term other assets		(46	)		9
Increase (decrease) in:
Accounts payable		47			(166	)
Income taxes payable		178			(123	)
Other current liabilities		(96	)		(108	)
Long-term other liabilities		14			(21	)
Cash provided by operating activities — continuing operations		3,152			2,587
Cash provided by operating activities — discontinued operations		197			231
Net cash provided by operating activities		3,349			2,818
Cash Flows From Investing Activities
Proceeds from sales of property and equipment		37			26
Capital expenditures, including acquisitions of businesses		(2,990	)		(4,584	)
Purchases of short-term investments		(589	)		(1,698	)
Sales of short-term investments		848			2,046
Cash used in investing activities — continuing operations		(2,694	)		(4,210	)
Cash used in investing activities — discontinued operations		(115	)		(131	)
Net cash used in investing activities		(2,809	)		(4,341	)
Cash Flows From Financing Activities
Net commercial paper (repayments) borrowings, net of issuance costs		(183	)		1,452
Principal payments on debt, including current maturities		—			(208	)
Proceeds from exercise of stock options		60			27
Repurchase of common stock		(10	)		(253	)
Excess tax benefits related to share-based compensation		17			7
Dividends paid on common stock		(124	)		(99	)
Dividends paid on preferred stock		(5	)		(5	)
Net cash (used in) provided by financing activities	$	(245	)	$	921
Effect of exchange rate changes on cash	$	16		$	26
Net increase (decrease) in cash and cash equivalents		311			(576	)
Cash and cash equivalents at beginning of period (including assets held for sale)		756			1,606
Cash and cash equivalents at end of period (including assets held for sale)	$	1,067		$	1,030
Supplementary cash flow data:
Interest paid (net of capitalized interest)	$	202		$	195
Income taxes paid	$	159		$	499

Page 9 of 12

DEVON ENERGY CORPORATION
UNAUDITED FINANCIAL AND OPERATIONAL INFORMATION

DRILLING ACTIVITY

	Quarter Ended						Six Months Ended
	June 30,						June 30,
	2007			2006			2007			2006
Exploration Wells Drilled
U.S.		5			18			27			39
Canada		9			30			64			96
International		—			2			1			2
Total		14			50			92			138
Exploration Wells Success Rate
U.S.		100	%		89	%		81	%		90	%
Canada		67	%		100	%		95	%		99	%
International		—			0	%		0	%		0	%
Total		79	%		92	%		90	%		95	%
Development Wells Drilled
U.S.		360			372			624			655
Canada		54			109			306			382
International		6			7			9			14
Total		420			488			939			1,051
Development Wells Success Rate
U.S.		98	%		98	%		98	%		98	%
Canada		100	%		100	%		100	%		99	%
International		100	%		100	%		100	%		100	%
Total		99	%		98	%		99	%		99	%
Total Wells Drilled
U.S.		365			390			651			694
Canada		63			139			370			478
International		6			9			10			16
Total		434			538			1,031			1,189
Total Wells Success Rate
U.S.		98	%		97	%		98	%		98	%
Canada		95	%		100	%		99	%		99	%
International		100	%		78	%		90	%		88	%
Total		98	%		98	%		98	%		99	%

COMPANY OPERATED RIGS

	June 30,
	2007		2006
Number of Company Operated Rigs Running
U.S.		77		60
Canada		10		11
International		1		—
Total		88		71

CAPITAL EXPENDITURES DATA(in millions)
Quarter Ended June 30, 2007

	U.S. Onshore		U.S. Offshore		Canada		International		Devon Total
Capital Expenditures
Exploration	$	57		48		25		12	$	142
Development		736		62		145		82		1,025
Exploration and development capital	$	793		110		170		94	$	1,167
Capitalized G&A										82
Capitalized interest										15
Discontinued operations										48
Property acquisitions										9
Midstream capital										69
Other capital										38
Total capital expenditures									$	1,428

Page 10 of 12

DEVON ENERGY CORPORATION
UNAUDITED FINANCIAL AND OPERATIONAL INFORMATION

CAPITAL EXPENDITURES DATA(in millions)
Six Months Ended June 30, 2007

	U.S. Onshore		U.S. Offshore		Canada		International		Devon Total
Capital Expenditures
Exploration	$	99		119		64		45	$	327
Development		1,374		122		520		141		2,157
Exploration and development capital	$	1,473		241		584		186	$	2,484
Capitalized G&A										146
Capitalized interest										30
Discontinued operations										107
Property acquisitions										12
Midstream capital										168
Other capital										58
Total capital expenditures									$	3,005

DETAIL OF RECLASSIFICATION FOR DISCONTINUED
OPERATIONS IN EGYPT AND WEST AFRICA

	Quarter Ended				Six Months Ended
	June 30,				June 30,
	2007		2006		2007		2006
Production from Discontinued Operations
Oil (MMBbls)		3.2		3.8		6.3		7.4
Natural Gas (Bcf)		1.2		1.6		2.6		3.2
Total Oil Equivalent (MMBoe)		3.4		4.1		6.7		7.9

STATEMENTS OF DISCONTINUED OPERATIONS DATA
(in millions)

	Quarter Ended						Six Months Ended
	June 30,						June 30,
	2007			2006			2007			2006
Revenues
Oil sales	$	205		$	255		$	375		$	462
Gas sales		4			5			8			11
Marketing & midstream revenues		6			7			7			11
Total revenues		215			267			390			484
Expenses and other income, net
Lease operating expenses		19			20			39			38
Marketing & midstream operating costs and expenses		2			3			3			4
Depreciation, depletion and amortization of oil and gas properties		2			66			18			130
Depreciation, depletion and amortization of non-oil and gas properties		—			—			—			1
Accretion of asset retirement obligation		1			—			2			1
Reduction of carrying value of assets held for sale		63			—			63			85
Total expenses and other income, net		87			89			125			259
Earnings before income tax expense		128			178			265			225
Income tax (benefit) expense
Current		71			98			115			177
Deferred		(23	)		(16	)		(7	)		(32	)
Total income tax expense		48			82			108			145
Earnings from discontinued operations	$	80		$	96		$	157		$	80

Non-GAAP Financial Measures

Page 11 of 12

DEVON ENERGY CORPORATION
UNAUDITED FINANCIAL AND OPERATIONAL INFORMATION

     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)

	Quarter Ended					Six Months Ended
	June 30,					June 30,
	2007			2006		2007			2006
Net Cash Provided By Operating Activities (GAAP)	$	1,832		$	1,296	$	3,349		$	2,818
Changes in assets and liabilities — continuing operations		(59	)		161		(102	)		174
Changes in assets and liabilities — discontinuing operations		43			76		37			33
Cash flow before balance sheet changes (Non-GAAP)	$	1,816		$	1,533	$	3,284		$	3,025

     Devon believes that using net debt, defined as debt less cash, short-term investments and the market value of Chevron common stock, for the calculation of “net debt to adjusted capitalization” provides a better measure than using debt. Devon believes that because cash and short-term investments can be used to repay indebtedness, netting cash and short-term investments against debt provides a clearer picture of the future demands on cash to repay debt. Included in Devon’s indebtedness are $737 million of debentures exchangeable into 14.2 million shares of Chevron common stock owned outright by Devon. As of June 30, 2007, the market value of the shares ($1.2 billion) exceeded the related debt obligation. Devon believes deducting the market value of the stock provides a clearer picture of future demands on cash to repay debt. This methodology is also utilized by various lenders, rating agencies and securities analysts as a measure of Devon’s indebtedness.

RECONCILIATION TO GAAP INFORMATION
(in millions)

	June 30,
	2007		2006
Total debt (GAAP)	$	7,596	$	8,054
Adjustments:
Cash and short-term investments		1,357		1,266
Market value of Chevron Corporation common stock		1,195		880
Net Debt (Non-GAAP)	$	5,044	$	5,908
Total Capitalization
Total debt	$	7,596	$	8,054
Stockholders’ equity		19,686		16,493
Total Capitalization (GAAP)	$	27,282	$	24,547
Adjusted Capitalization
Net debt	$	5,044	$	5,908
Stockholders’ equity		19,686		16,493
Adjusted Capitalization (Non-GAAP)	$	24,730	$	22,401

Page 12 of 12