Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Jun. 30, 2024 | Jul. 24, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Jun. 30, 2024 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q2 | |
Current Fiscal Year End Date | --12-31 | |
Entity Registrant Name | DEVON ENERGY CORP/DE | |
Entity Central Index Key | 0001090012 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Shell Company | false | |
Entity File Number | 001-32318 | |
Entity Tax Identification Number | 73-1567067 | |
Entity Incorporation, State or Country Code | DE | |
Entity Address, Address Line One | 333 West Sheridan Avenue | |
Entity Address, City or Town | Oklahoma City | |
Entity Address, State or Province | OK | |
Entity Address, Postal Zip Code | 73102-5015 | |
City Area Code | 405 | |
Local Phone Number | 235-3611 | |
Title of 12(b) Security | Common Stock, par value $0.10 per share | |
Trading Symbol | DVN | |
Security Exchange Name | NYSE | |
Entity Common Stock, Shares Outstanding | 626,200,000 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Earnings - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Oil, gas and NGL sales | $ 3,894 | $ 3,530 | $ 7,635 | $ 7,289 |
Oil, gas and NGL derivatives | 23 | (76) | (122) | (12) |
Total revenues | 3,917 | 3,454 | 7,513 | 7,277 |
Production expenses | 788 | 719 | 1,539 | 1,412 |
Exploration expenses | 3 | 10 | 12 | 13 |
Depreciation, depletion and amortization | 768 | 638 | 1,490 | 1,253 |
Asset dispositions | 15 | (41) | 16 | (41) |
General and administrative expenses | 114 | 92 | 228 | 198 |
Financing costs, net | 76 | 78 | 152 | 150 |
Other, net | 5 | 10 | 27 | 15 |
Total expenses | 2,877 | 2,557 | 5,705 | 5,156 |
Earnings before income taxes | 1,040 | 897 | 1,808 | 2,121 |
Income tax expense | 185 | 199 | 344 | 420 |
Net earnings | 855 | 698 | 1,464 | 1,701 |
Net earnings attributable to noncontrolling interests | 11 | 8 | 24 | 16 |
Net earnings attributable to Devon | $ 844 | $ 690 | $ 1,440 | $ 1,685 |
Net earnings per share: | ||||
Basic net earnings per share | $ 1.35 | $ 1.08 | $ 2.29 | $ 2.61 |
Diluted net earnings per share | $ 1.34 | $ 1.07 | $ 2.29 | $ 2.6 |
Comprehensive earnings: | ||||
Net earnings | $ 855 | $ 698 | $ 1,464 | $ 1,701 |
Other comprehensive earnings, net of tax: | ||||
Pension and postretirement plans | 1 | 1 | 2 | 2 |
Other comprehensive earnings, net of tax | 1 | 1 | 2 | 2 |
Comprehensive earnings: | 856 | 699 | 1,466 | 1,703 |
Comprehensive earnings attributable to noncontrolling interests | 11 | 8 | 24 | 16 |
Comprehensive earnings attributable to Devon | 845 | 691 | 1,442 | 1,687 |
Oil, Gas and NGL Sales [Member] | ||||
Oil, gas and NGL sales | 2,796 | 2,493 | 5,425 | 5,172 |
Marketing and Midstream Revenues [Member] | ||||
Oil, gas and NGL sales | 1,098 | 1,037 | 2,210 | 2,117 |
Marketing and Midstream Expenses [Member] | ||||
Expenses | $ 1,108 | $ 1,051 | $ 2,241 | $ 2,156 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 | |
ASSETS | |||
Cash, cash equivalents and restricted cash | $ 1,169 | $ 875 | |
Accounts receivable | 1,589 | 1,573 | |
Inventory | 258 | 249 | |
Other current assets | 343 | 460 | |
Total current assets | 3,359 | 3,157 | |
Oil and gas property and equipment, based on successful efforts accounting, net | 18,216 | 17,825 | |
Other property and equipment, net ($159 million and $136 million related to CDM in 2024 and 2023, respectively) | [1] | 1,569 | 1,503 |
Total property and equipment, net | 19,785 | 19,328 | |
Goodwill | 753 | 753 | |
Right-of-use assets | 297 | 267 | |
Investments | 704 | 666 | |
Other long-term assets | 264 | 319 | |
Total assets | 25,162 | 24,490 | |
LIABILITIES AND EQUITY | |||
Accounts payable | 754 | 760 | |
Revenues and royalties payable | 1,363 | 1,222 | |
Short-term debt | 475 | 483 | |
Other current liabilities | 424 | 484 | |
Total current liabilities | 3,016 | 2,949 | |
Long-term debt | 5,665 | 5,672 | |
Lease liabilities | 315 | 295 | |
Asset retirement obligations | 691 | 643 | |
Other long-term liabilities | 829 | 876 | |
Deferred income taxes | 1,917 | 1,838 | |
Stockholders' equity: | |||
Common stock, $0.10 par value. Authorized 1.0 billion shares; issued 628 million and 636 million shares in 2024 and 2023, respectively | 63 | 64 | |
Additional paid-in capital | 5,478 | 5,939 | |
Retained earnings | 7,132 | 6,195 | |
Accumulated other comprehensive loss | (122) | (124) | |
Treasury stock, at cost, 0.3 million shares in 2023 | 0 | (13) | |
Total stockholders’ equity attributable to Devon | 12,551 | 12,061 | |
Noncontrolling interests | 178 | 156 | |
Total equity | 12,729 | 12,217 | |
Total liabilities and equity | $ 25,162 | $ 24,490 | |
[1] $ 159 million and $ 136 million related to CDM in 2024 and 2023, respectively. |
Consolidated Balance Sheets(Par
Consolidated Balance Sheets(Parenthetical) - USD ($) shares in Millions, $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 | |
Other property and equipment, net | [1] | $ 1,569 | $ 1,503 |
Common stock, par value (in dollars per share) | $ 0.1 | $ 0.1 | |
Common stock, shares authorized (in shares) | 1,000 | 1,000 | |
Common stock, shares issued (in shares) | 628 | 636 | |
Treasury stock common shares | 0.3 | ||
CDM [Member] | |||
Other property and equipment, net | $ 159 | $ 136 | |
[1] $ 159 million and $ 136 million related to CDM in 2024 and 2023, respectively. |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Cash flows from operating activities: | ||||
Net earnings | $ 855 | $ 698 | $ 1,464 | $ 1,701 |
Adjustments to reconcile net earnings to net cash from operating activities: | ||||
Depreciation, depletion and amortization | 768 | 638 | 1,490 | 1,253 |
Leasehold impairments | 1 | 3 | 1 | 3 |
Amortization of liabilities | 0 | (8) | 0 | (15) |
Total (gains) losses on commodity derivatives | (23) | 76 | 122 | 12 |
Cash settlements on commodity derivatives | 54 | 37 | 78 | 50 |
(Gains) losses on asset dispositions | 15 | (41) | 16 | (41) |
Deferred income tax expense | 39 | 119 | 79 | 199 |
Share-based compensation | 27 | 25 | 51 | 48 |
Other | 0 | (2) | 3 | 0 |
Changes in assets and liabilities, net | (201) | (140) | (31) | (128) |
Net cash from operating activities | 1,535 | 1,405 | 3,273 | 3,082 |
Cash flows from investing activities: | ||||
Capital expenditures | (948) | (1,079) | (1,842) | (2,091) |
Acquisitions of property and equipment | (82) | (18) | (90) | (31) |
Divestitures of property and equipment | 1 | 1 | 18 | 22 |
Distributions from investments | 11 | 9 | 22 | 17 |
Contributions to investments and other | (1) | (15) | (48) | (52) |
Net cash from investing activities | (1,019) | (1,102) | (1,940) | (2,135) |
Cash flows from financing activities: | ||||
Repurchases of common stock | (256) | (228) | (461) | (745) |
Dividends paid on common stock | (223) | (462) | (522) | (1,058) |
Contributions from noncontrolling interests | 12 | 8 | 24 | 8 |
Distributions to noncontrolling interests | (19) | (13) | (26) | (24) |
Shares exchanged for tax withholdings and other | (9) | (9) | (51) | (96) |
Net cash from financing activities | (495) | (704) | (1,036) | (1,915) |
Effect of exchange rate changes on cash | (1) | 2 | (3) | 2 |
Net change in cash, cash equivalents and restricted cash | 20 | (399) | 294 | (966) |
Cash, cash equivalents and restricted cash at beginning of period | 1,149 | 887 | 875 | 1,454 |
Cash, cash equivalents and restricted cash at end of period | 1,169 | 488 | 1,169 | 488 |
Reconciliation of cash, cash equivalents and restricted cash: | ||||
Cash and cash equivalents | 1,140 | 372 | 1,140 | 372 |
Restricted cash | 29 | 116 | 29 | 116 |
Total cash, cash equivalents and restricted cash | $ 1,169 | $ 488 | $ 1,169 | $ 488 |
Consolidated Statements Of Equi
Consolidated Statements Of Equity - USD ($) shares in Millions, $ in Millions | Total | Common Stock [Member] | Additional Paid-In Capital [Member] | Retained Earnings [Member] | Other Comprehensive Earnings (Loss) [Member] | Treasury Stock [Member] | Noncontrolling Interests [Member] |
Balance at Dec. 31, 2022 | $ 11,296 | $ 65 | $ 6,921 | $ 4,297 | $ (116) | $ 129 | |
Balance, shares at Dec. 31, 2022 | 653 | ||||||
Net earnings | 1,701 | 1,685 | 16 | ||||
Other comprehensive earnings (loss), net of tax | 2 | 2 | |||||
Restricted stock grants, net of cancellations, shares | 2 | ||||||
Common stock repurchased | (839) | (6) | $ (833) | ||||
Common stock retired | $ (1) | (832) | 833 | ||||
Common stock retired, shares | (15) | ||||||
Common stock dividends | (1,042) | (1,042) | |||||
Share-based compensation | 48 | 48 | |||||
Share-based compensation, shares | 1 | ||||||
Contributions from noncontrolling interests | 8 | 8 | |||||
Distributions to noncontrolling interests | (24) | (24) | |||||
Balance at Jun. 30, 2023 | 11,150 | $ 64 | 6,131 | 4,940 | (114) | 129 | |
Balance, shares at Jun. 30, 2023 | 641 | ||||||
Balance at Mar. 31, 2023 | 11,103 | $ 64 | 6,344 | 4,712 | (115) | (28) | 126 |
Balance, shares at Mar. 31, 2023 | 645 | ||||||
Net earnings | 698 | 690 | 8 | ||||
Other comprehensive earnings (loss), net of tax | 1 | 1 | |||||
Common stock repurchased | (210) | (2) | (208) | ||||
Common stock retired | (236) | 236 | |||||
Common stock retired, shares | (4) | ||||||
Common stock dividends | (462) | (462) | |||||
Share-based compensation | 25 | 25 | |||||
Contributions from noncontrolling interests | 8 | 8 | |||||
Distributions to noncontrolling interests | (13) | (13) | |||||
Balance at Jun. 30, 2023 | 11,150 | $ 64 | 6,131 | 4,940 | (114) | 129 | |
Balance, shares at Jun. 30, 2023 | 641 | ||||||
Balance at Dec. 31, 2023 | 12,217 | $ 64 | 5,939 | 6,195 | (124) | (13) | 156 |
Balance, shares at Dec. 31, 2023 | 636 | ||||||
Net earnings | 1,464 | 1,440 | 24 | ||||
Other comprehensive earnings (loss), net of tax | 2 | 2 | |||||
Restricted stock grants, net of cancellations, shares | 2 | ||||||
Common stock repurchased | (500) | (4) | (496) | ||||
Common stock retired | $ (1) | (508) | 509 | ||||
Common stock retired, shares | (11) | ||||||
Common stock dividends | (503) | (503) | |||||
Share-based compensation | 51 | 51 | |||||
Share-based compensation, shares | 1 | ||||||
Contributions from noncontrolling interests | 24 | 24 | |||||
Distributions to noncontrolling interests | (26) | (26) | |||||
Balance at Jun. 30, 2024 | 12,729 | $ 63 | 5,478 | 7,132 | (122) | 0 | 178 |
Balance, shares at Jun. 30, 2024 | 628 | ||||||
Balance at Mar. 31, 2024 | 12,341 | $ 63 | 5,718 | 6,509 | (123) | 0 | 174 |
Balance, shares at Mar. 31, 2024 | 633 | ||||||
Net earnings | 855 | 844 | 11 | ||||
Other comprehensive earnings (loss), net of tax | 1 | 1 | |||||
Common stock repurchased | (267) | (3) | (264) | ||||
Common stock retired | (264) | 264 | |||||
Common stock retired, shares | (5) | ||||||
Common stock dividends | (221) | (221) | |||||
Share-based compensation | 27 | 27 | |||||
Contributions from noncontrolling interests | 12 | 12 | |||||
Distributions to noncontrolling interests | (19) | (19) | |||||
Balance at Jun. 30, 2024 | $ 12,729 | $ 63 | $ 5,478 | $ 7,132 | $ (122) | $ 0 | $ 178 |
Balance, shares at Jun. 30, 2024 | 628 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Pay vs Performance Disclosure | ||||
Net Income (Loss) | $ 844 | $ 690 | $ 1,440 | $ 1,685 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Jun. 30, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Rule 10b5-1 Arrangement Modified | false |
Non-Rule 10b5-1 Arrangement Modified | false |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2024 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | S ummary of Significant Accounting Policies The accompanying unaudited interim financial statements and notes of Devon have been prepared pursuant to the rules and regulations of the SEC. Pursuant to such rules and regulations, certain disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been omitted. The accompanying unaudited interim financial statements and notes should be read in conjunction with the financial statements and notes included in Devon’s 2023 Annual Report on Form 10-K . The accompanying unaudited interim financial statements in this report reflect all adjustments that are, in the opinion of management, necessary for a fair statement of Devon’s results of operations and cash flows for the three-month and six-month periods ended June 30, 2024 and 2023 and Devon’s financial position as of June 30, 2024. Variable Interest Entity CDM is a joint venture entity formed by Devon and an affiliate of QL Capital Partners, LP. CDM provides gathering, compression and dehydration services for natural gas production in the Cotton Draw area of the Delaware Basin. Devon holds a controlling interest in CDM and the portions of CDM’s net earnings and equity not attributable to Devon’s controlling interest are shown separately as noncontrolling interests in the accompanying consolidated statements of comprehensive earnings and consolidated balance sheets. CDM is considered a VIE to Devon. The assets of CDM cannot be used by Devon for general corporate purposes and are included in, and disclosed parenthetically, on Devon's consolidated balance sheets. The carrying amount of liabilities related to CDM for which the creditors do not have recourse to Devon's assets are also included in, and disclosed parenthetically, if material, on Devon's consolidated balance sheets. Investments The following table presents Devon's investments. Carrying Amount Investments % Interest June 30, 2024 December 31, 2023 Catalyst 50 % $ 291 $ 311 Water JV 30 % 218 216 Matterhorn 12.5 % 90 90 Fervo 12 % 56 — Other Various 49 49 Total $ 704 $ 666 Devon has an interest in Catalyst, which is a joint venture with an affiliate of Howard Energy Partners, LLC (“HEP”) and certain other investors, to develop oil gathering and natural gas processing infrastructure in the Stateline area of the Delaware Basin. Under the terms of the arrangement, Devon and a holding company owned by the other joint venture investors each have a 50 % voting interest in the joint venture legal entity, and HEP serves as the operator. Through 2038, Devon’s production from 50,000 net acres in the Stateline area of the Delaware Basin has been dedicated to Catalyst subject to fixed-fee oil gathering and natural gas processing agreements. Devon accounts for the investment in Catalyst as an equity method investment. Devon's investment in Catalyst is shown within investments on the consolidated balance sheets and Devon's share of Catalyst earnings are reflected as a component of other, net in the accompanying consolidated statements of comprehensive earnings. In the second quarter of 2023, Devon made an investment in the Water JV, a joint venture entity formed with an affiliate of WaterBridge NDB LLC (“WaterBridge”), for the purpose of providing increased capacity and flexibility in disposing of produced water in the Delaware Basin and Eagle Ford. Under terms of the arrangement, Devon contributed water infrastructure assets and committed to a water gathering and disposal dedication to the Water JV through 2038, in exchange for a 30 % voting interest in the joint venture legal entity. WaterBridge contributed water infrastructure assets to the Water JV, in exchange for a 70 % voting interest in the joint venture legal entity and will serve as the operator. In the second quarter of 2023, Devon recognized a $ 64 million gain in asset dispositions in the consolidated statements of comprehensive earnings, which represented the excess of the estimated fair value of Devon's interest in the Water JV over the carrying value of the water infrastructure assets Devon contributed to the Water JV. Devon accounts for the investment in the Water JV as an equity method investment. Devon's investment in the Water JV is shown within investments on the consolidated balance sheets and Devon's share of the Water JV earnings are reflected as a component of other, net in the accompanying consolidated statements of comprehensive earnings. Matterhorn is a joint venture entity and was formed for the purpose of constructing a natural gas pipeline that will transport natural gas from the Permian Basin to the Katy, Texas area. Devon's investment in Matterhorn does not give it the ability to exercise significant influence over Matterhorn. In the first quarter of 2024, Devon committed to invest approximately $ 100 million in Fervo, a company that generates energy from geothermal wells. As of June 30, 2024, Devon has funded approximately $ 55 million of the commitment and expects to fund the remaining $ 45 million commitment throughout 2024. The investment in Fervo allows Devon to exercise significant influence over Fervo, and the investment is accounted for under the equity method of accounting. Devon's investment in Fervo is shown within investments on the consolidated balance sheets and Devon's share of Fervo earnings are reflected as a component of other, net in the accompanying consolidated statements of comprehensive earnings. Disaggregation of Revenue The following table presents revenue from contracts with customers that are disaggregated based on the type of good or service. Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Oil $ 2,413 $ 2,106 $ 4,602 $ 4,249 Gas 57 122 185 335 NGL 326 265 638 588 Oil, gas and NGL sales 2,796 2,493 5,425 5,172 Oil 801 735 1,608 1,465 Gas 100 123 221 275 NGL 197 179 381 377 Marketing and midstream revenues 1,098 1,037 2,210 2,117 Total revenues from contracts with customers $ 3,894 $ 3,530 $ 7,635 $ 7,289 Recently Issued Accounting Standards Not Yet Adopted In December 2023, the FASB issued ASU 2023-09, Improvements to Income Tax Disclosures. ASU 2023-09 intends to provide investors with enhanced information about an entity’s income taxes by requiring disclosure of items such as disaggregation of the effective tax rate reconciliation as well as information regarding income taxes paid. This ASU is effective for annual reporting periods beginning after December 15, 2024, with early adoption permitted for annual financial statements that have not yet been issued. Devon is evaluating the impact this ASU will have on the disclosures that accompany its consolidated financial statements. In November 2023, the FASB issued ASU 2023-07, Improvements to Reportable Segments Disclosures. Under this ASU, the scope and frequency of segment disclosures is increased to provide investors with additional detail about information utilized by an entity’s “Chief Operating Decision Maker.” This ASU is effective for Devon beginning with our 2024 annual reporting and interim periods beginning in 2025. Devon is evaluating the impact this ASU will have on the disclosures that accompany its consolidated financial statements. |
Acquisition and Divestitures
Acquisition and Divestitures | 6 Months Ended |
Jun. 30, 2024 | |
Business Combinations [Abstract] | |
Acquisition and Divestitures | Acquisitions and Dive stitures Acquisition In July 2024, Devon announced it had entered into an agreement to acquire the Williston Basin business of Grayson Mill Energy. The purchase price for the transaction consists of $ 3.25 billion of cash and approximately 37 million shares of Devon common stock, in each case subject to various purchase price adjustments. Devon plans to fund the cash portion of the purchase price through cash on hand and debt, which we expect to include a combination of term loans and bond issuances. The transaction is expected to close by the end of the third quarter of 2024, subject to regulatory approvals and other customary closing conditions. Contingent Earnout Payments Devon is entitled to contingent earnout payments associated with the sale of its Barnett Shale assets in 2020 with upside participation beginning at a $ 2.75 Henry Hub natural gas price or a $ 50 WTI oil price. The contingent payment period commenced on January 1, 2021 and has a term of four years. Devon received $ 20 million in contingent earnout payments related to this transaction in the first quarter of 2024 and $ 65 million in the first quarter of 2023. Devon could also receive up to an additional $ 65 million in contingent earnout payments for the remaining performance period depending on future commodity prices. The valuation of the future contingent earnout payment included within other current assets in the June 30, 2024 consolidated balance sheet was approximately $ 20 million. This value was derived utilizing a Monte Carlo valuation model and qualifies as a level 3 fair value measurement. Devon also received $ 4 million in contingent earnout payments in the first quarter of 2023 related to the sale of non-core assets in the Rockies. |
Derivative Financial Instrument
Derivative Financial Instruments | 6 Months Ended |
Jun. 30, 2024 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | 3. Derivative Fin ancial Instruments Objectives and Strategies Devon enters into derivative financial instruments with respect to a portion of its oil, gas and NGL production to hedge future prices received. Additionally, Devon periodically enters into derivative financial instruments with respect to a portion of its oil, gas and NGL marketing activities. These commodity derivative financial instruments include financial price swaps, basis swaps and costless price collars. Devon also periodically enters into interest rate swaps to manage its exposure to interest rate volatility. As of June 30, 2024, Devon did not have any open interest rate contracts. Devon does not intend to hold or issue derivative financial instruments for speculative trading purposes and has elected not to designate any of its derivative instruments for hedge accounting treatment. Counterparty Credit Risk By using derivative financial instruments, Devon is exposed to credit risk. Credit risk is the failure of the counterparty to perform under the terms of the derivative contract. To mitigate this risk, the hedging instruments are placed with a number of counterparties whom Devon believes are acceptable credit risks. It is Devon’s policy to enter into derivative contracts only with investment-grade rated counterparties deemed by management to be competent and competitive market makers. Additionally, Devon’s derivative contracts generally contain provisions that provide for collateral payments if Devon’s or its counterparty’s credit rating falls below certain credit rating levels. As of June 30, 2024, Devon neither held cash collateral of its counterparties no r posted cash collateral to its counterparties. Commodity Derivatives As of June 30, 2024, Devon had the following open oil derivative positions. The first table presents Devon’s oil derivatives that settle against the average of the prompt month NYMEX WTI futures price. The second table presents Devon’s oil derivatives that settle against the respective indices noted within the table. Price Swaps Price Collars Period Volume Weighted Volume Weighted Weighted Q3-Q4 2024 28,000 $ 78.97 83,000 $ 67.80 $ 85.04 Q1-Q4 2025 4,468 $ 72.83 5,992 $ 70.00 $ 77.97 Oil Basis Swaps Period Index Volume Weighted Average Q3-Q4 2024 Midland Sweet 69,500 $ 1.17 Q3-Q4 2024 NYMEX Roll 26,000 $ 0.82 Q1-Q4 2025 Midland Sweet 63,000 $ 1.00 Q1-Q4 2026 Midland Sweet 18,000 $ 1.21 As of June 30, 2024, Devon had the following open natural gas derivative positions. The first table presents Devon’s natural gas derivatives that settle against the Inside FERC first of the month Henry Hub index. The second table presents Devon’s natural gas derivatives that settle against the respective indices noted within the table. Price Swaps Price Collars Period Volume (MMBtu/d) Weighted Average Price ($/MMBtu) Volume (MMBtu/d) Weighted Average Floor Price ($/MMBtu) Weighted Average Q3-Q4 2024 279,000 $ 3.18 15,000 $ 3.00 $ 3.65 Q1-Q4 2025 200,537 $ 3.34 15,000 $ 3.00 $ 3.65 Q1-Q4 2026 80,000 $ 3.90 — — — Natural Gas Basis Swaps Period Index Volume Weighted Average Q3-Q4 2024 El Paso Natural Gas 10,000 $ ( 1.00 ) Q3-Q4 2024 Houston Ship Channel 160,000 $ ( 0.28 ) Q3-Q4 2024 WAHA 80,000 $ ( 0.74 ) Q1-Q4 2025 Houston Ship Channel 40,000 $ ( 0.35 ) Q1-Q4 2025 WAHA 10,000 $ ( 0.63 ) Q1-Q4 2026 Houston Ship Channel 25,000 $ ( 0.25 ) As of June 30, 2024, Devon had the following open NGL derivative positions. Devon's NGL positions settle against the average of the prompt month OPIS Mont Belvieu, Texas index. Price Swaps Period Product Volume (Bbls/d) Weighted Average Price ($/Bbl) Q3-Q4 2024 Natural Gasoline 3,000 $ 69.11 Q3-Q4 2024 Normal Butane 3,350 $ 37.58 Q3-Q4 2024 Propane 5,250 $ 33.01 Financial Statement Presentation All derivative financial instruments are recognized at their current fair value as either assets or liabilities in the consolidated balance sheets. Amounts related to contracts allowed to be netted upon payment subject to a master netting arrangement with the same counterparty are reported on a net basis in the consolidated balance sheets. The table below presents a summary of these positions as of June 30, 2024 and December 31, 2023. June 30, 2024 December 31, 2023 Gross Fair Value Amounts Netted Net Fair Value Gross Fair Value Amounts Netted Net Fair Value Balance Sheet Classification Commodity derivatives: Short-term derivative asset $ 44 $ ( 15 ) $ 29 $ 213 $ ( 5 ) $ 208 Other current assets Long-term derivative asset 5 ( 3 ) 2 — — — Other long-term assets Short-term derivative liability ( 39 ) 15 ( 24 ) ( 7 ) 5 ( 2 ) Other current liabilities Long-term derivative liability ( 10 ) 3 ( 7 ) ( 7 ) — ( 7 ) Other long-term liabilities Total derivative asset $ — $ — $ — $ 199 $ — $ 199 |
Share-Based Compensation
Share-Based Compensation | 6 Months Ended |
Jun. 30, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Share-Based Compensation | 4. Share-Base d Compensation The table below presents the share-based compensation expense included in Devon’s accompanying consolidated statements of comprehensive earnings. Six Months Ended June 30, 2024 2023 G&A $ 50 $ 48 Exploration expenses 1 — Total $ 51 $ 48 Related income tax benefit $ 18 $ 27 Under its approved long-term incentive plan, Devon grants share-based awards to its employees. The following table presents a summary of Devon’s unvested restricted stock awards and units and performance share units granted under the plan. Restricted Stock Awards & Units Performance Share Units Awards/Units Weighted Units Weighted (Thousands, except fair value data) Unvested at 12/31/23 4,033 $ 42.10 1,547 $ 43.25 Granted 1,883 $ 42.46 858 $ 40.41 Vested ( 1,789 ) $ 34.84 ( 1,226 ) $ 18.08 Forfeited ( 58 ) $ 45.04 — $ — Unvested at 6/30/24 4,069 $ 45.42 1,179 (1) $ 67.38 (1) A maximum of 2.4 million common shares could be awarded based upon Devon’s final TSR ranking. The following table presents the assumptions related to the performance share units granted in 2024, as indicated in the previous summary table. The grants in the previous summary table also include the impacts of performance share units granted in a prior year that vested higher than 100 % of target due to Devon's TSR performance compared to our peers. 2024 Grant-date fair value $ 56.99 Risk-free interest rate 4.28 % Volatility factor 46.03 % Contractual term (years) 2.89 The following table presents a summary of the unrecognized compensation cost and the related weighted average recognition period associated with unvested awards and units as of June 30, 2024. Restricted Stock Performance Awards/Units Share Units Unrecognized compensation cost $ 128 $ 33 Weighted average period for recognition (years) 2.8 1.8 |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2024 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 5. Inco me Taxes The following table presents Devon’s total income tax expense and a reconciliation of its effective income tax rate to the U.S. statutory income tax rate. Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Earnings before income taxes $ 1,040 $ 897 $ 1,808 $ 2,121 Current income tax expense $ 146 $ 80 $ 265 $ 221 Deferred income tax expense 39 119 79 199 Total income tax expense $ 185 $ 199 $ 344 $ 420 U.S. statutory income tax rate 21 % 21 % 21 % 21 % State income taxes 1 % 1 % 1 % 1 % Income tax credits ( 4 %) — ( 3 %) ( 2 %) Effective income tax rate 18 % 22 % 19 % 20 % In the first six months of 2024 and 2023, Devon recognized income tax credits associated with its qualified research activities. |
Net Earnings Per Share
Net Earnings Per Share | 6 Months Ended |
Jun. 30, 2024 | |
Earnings Per Share [Abstract] | |
Net Earnings Per Share | Net Earnings Per Share The following table reconciles net earnings available to common shareholders and weighted-average common shares outstanding used in the calculations of basic and diluted net earnings per share. Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Net earnings available to common shareholders - basic and diluted $ 844 $ 687 $ 1,440 $ 1,674 Common shares: Average common shares outstanding - basic 626 638 628 641 Dilutive effect of potential common shares issuable 2 1 2 2 Average common shares outstanding - diluted 628 639 630 643 Net earnings per share available to common shareholders: Basic $ 1.35 $ 1.08 $ 2.29 $ 2.61 Diluted $ 1.34 $ 1.07 $ 2.29 $ 2.60 |
Other Comprehensive Earnings (L
Other Comprehensive Earnings (Loss) | 6 Months Ended |
Jun. 30, 2024 | |
Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Other Comprehensive Earnings (Loss) | Other Comprehensive Earnings (Loss) Components of other comprehensive earnings (loss) consist of the following: Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Pension and postretirement benefit plans: Beginning accumulated pension and postretirement benefits $ ( 123 ) $ ( 115 ) $ ( 124 ) $ ( 116 ) Recognition of net actuarial loss and prior service cost in earnings (1) 2 2 3 3 Income tax expense ( 1 ) ( 1 ) ( 1 ) ( 1 ) Accumulated other comprehensive loss, net of tax $ ( 122 ) $ ( 114 ) $ ( 122 ) $ ( 114 ) (1) Recognition of net actuarial loss and prior service cost are included in the computation of net periodic benefit cost, which is a component of other, net in the accompanying consolidated statements of comprehensive earnings. |
Supplemental Information to Sta
Supplemental Information to Statements of Cash Flows | 6 Months Ended |
Jun. 30, 2024 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Information to Statements of Cash Flows | Supplemental Information to Statements of Cash Flows Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Changes in assets and liabilities, net: Accounts receivable $ 81 $ 98 $ ( 15 ) $ 248 Other current assets ( 84 ) ( 12 ) ( 107 ) 4 Other long-term assets ( 16 ) ( 13 ) 33 18 Accounts payable and revenues and royalties payable 42 ( 65 ) 185 ( 230 ) Other current liabilities ( 224 ) ( 138 ) ( 108 ) ( 141 ) Other long-term liabilities — ( 10 ) ( 19 ) ( 27 ) Total $ ( 201 ) $ ( 140 ) $ ( 31 ) $ ( 128 ) Supplementary cash flow data: Interest paid $ 112 $ 88 $ 175 $ 189 Income taxes paid $ 388 $ 259 $ 384 $ 259 Devon's non-cash investing activities for the three and six months ended June 30, 2023, included approximately $ 150 million of contributions of other property and equipment for the formation of the Water JV. |
Accounts Receivable
Accounts Receivable | 6 Months Ended |
Jun. 30, 2024 | |
Accounts Receivable, after Allowance for Credit Loss [Abstract] | |
Accounts Receivable | Accounts Receivable Components of accounts receivable include the following: June 30, 2024 December 31, 2023 Oil, gas and NGL sales $ 941 $ 965 Joint interest billings 253 251 Marketing and midstream revenues 370 342 Other 32 22 Gross accounts receivable 1,596 1,580 Allowance for doubtful accounts ( 7 ) ( 7 ) Net accounts receivable $ 1,589 $ 1,573 |
Property, Plant and Equipment
Property, Plant and Equipment | 6 Months Ended |
Jun. 30, 2024 | |
Extractive Industries [Abstract] | |
Property, Plant and Equipment | Property, Plan t and Equipment The following table presents the aggregate capitalized costs related to Devon’s oil and gas and non-oil and gas activities. June 30, 2024 December 31, 2023 Property and equipment: Proved $ 48,402 $ 46,659 Unproved and properties under development 1,370 1,279 Total oil and gas 49,772 47,938 Less accumulated DD&A ( 31,556 ) ( 30,113 ) Oil and gas property and equipment, net 18,216 17,825 Other property and equipment 2,386 2,289 Less accumulated DD&A ( 817 ) ( 786 ) Other property and equipment, net (1) 1,569 1,503 Property and equipment, net $ 19,785 $ 19,328 (1) $ 159 million and $ 136 million related to CDM in 2024 and 2023, respectively. |
Debt And Related Expenses
Debt And Related Expenses | 6 Months Ended |
Jun. 30, 2024 | |
Debt Disclosure [Abstract] | |
Debt and Related Expenses | 11. Debt and Re lated Expenses See below for a summary of debt instruments and balances. The notes and debentures are senior, unsecured obligations of Devon. June 30, 2024 December 31, 2023 5.25 % due September 15, 2024 $ 472 $ 472 5.85 % due December 15, 2025 485 485 7.50 % due September 15, 2027 73 73 5.25 % due October 15, 2027 390 390 5.875 % due June 15, 2028 325 325 4.50 % due January 15, 2030 585 585 7.875 % due September 30, 2031 675 675 7.95 % due April 15, 2032 366 366 5.60 % due July 15, 2041 1,250 1,250 4.75 % due May 15, 2042 750 750 5.00 % due June 15, 2045 750 750 Net premium on debentures and notes 49 64 Debt issuance costs ( 30 ) ( 30 ) Total debt $ 6,140 $ 6,155 Less amount classified as short-term debt 475 483 Total long-term debt $ 5,665 $ 5,672 Retirement of Senior Notes On August 1, 2023, Devon repaid the $ 242 million of 8.25 % senior notes at maturity. Credit Lines In 2023, Devon amended and restated its 2018 Senior Credit Facility to provide for a new $ 3.0 billion revolving 2023 Senior Credit Facility. In the first quarter of 2024, Devon exercised its option to extend the 2023 Senior Credit Facility maturity date from March 24, 2028 to March 24, 2029 . Devon has the option to extend the March 24, 2029 maturity date by two additional one-year periods subject to lender consent. As of June 30, 2024, Devon had no outstanding borrowings under the 2023 Senior Credit Facility and had issued $ 3 million in outstanding letters of credit under this facility. The 2023 Senior Credit Facility contains only one material financial covenant. This covenant requires Devon’s ratio of total funded debt to total capitalization, as defined in the credit agreement, to be no greater than 65 %. Under the terms of the credit agreement, total capitalization is adjusted to add back non-cash financial write-downs such as impairments. As of June 30, 2024, Devon was in compliance with this covenant with a debt-to-capitalization ratio of 21.2 %. Net Financing Costs The following schedule includes the components of net financing costs. Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Interest based on debt outstanding $ 88 $ 96 $ 175 $ 189 Interest income ( 14 ) ( 15 ) ( 27 ) ( 32 ) Other 2 ( 3 ) 4 ( 7 ) Total net financing costs $ 76 $ 78 $ 152 $ 150 |
Leases
Leases | 6 Months Ended |
Jun. 30, 2024 | |
Leases [Abstract] | |
Leases | Le ases The following table presents Devon’s right-of-use assets and lease liabilities as of June 30, 2024 and December 31, 2023. June 30, 2024 December 31, 2023 Finance Operating Total Finance Operating Total Right-of-use assets $ 241 $ 56 $ 297 $ 246 $ 21 $ 267 Lease liabilities: Current lease liabilities (1) $ 21 $ 26 $ 47 $ 21 $ 12 $ 33 Long-term lease liabilities 285 30 315 286 9 295 Total lease liabilities (2) $ 306 $ 56 $ 362 $ 307 $ 21 $ 328 (1) Current lease liabilities are included in other current liabilities on the consolidated balance sheets . (2) Devon has entered into certain leases of equipment related to the exploration, development and production of oil and gas that had terms not yet commenced as of June 30, 2024 and are therefore excluded from the amounts shown above. Devon’s operating lease right-of-use assets relate to real estate, drilling rigs and other equipment related to the exploration, development and production of oil and gas. Devon’s financing lease right-of-use assets relate to real estate. |
Asset Retirement Obligations
Asset Retirement Obligations | 6 Months Ended |
Jun. 30, 2024 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Asset Retirement Obligations | 13. Asset Retir ement Obligations The following table presents the changes in Devon’s asset retirement obligations. Six Months Ended June 30, 2024 2023 Asset retirement obligations as of beginning of period $ 665 $ 529 Liabilities incurred 15 14 Liabilities settled and divested ( 16 ) ( 18 ) Revision of estimated obligation 35 27 Accretion expense on discounted obligation 18 14 Asset retirement obligations as of end of period 717 566 Less current portion 26 18 Asset retirement obligations, long-term $ 691 $ 548 During the first six months of 2024, Devon increased its asset retirement obligations by approximately $ 35 million primarily due to changes in current cost estimates and future retirement dates for its oil and gas assets. During the first six months of 2023, Devon increased its asset retirement obligations by approximately $ 27 million primarily due to inflation-driven increases in cost estimates. |
Stockholders' Equity
Stockholders' Equity | 6 Months Ended |
Jun. 30, 2024 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | 14. Stockhol ders’ Equity Share Repurchases In July 2024, Devon's Board of Directors authorized an expansion to the company's share repurchase program from $ 3.0 billion to $ 5.0 billion and extended the expiration date from December 31, 2024 to June 30, 2026 . The table below provides information regarding purchases of Devon’s common stock under the $ 5.0 billion share repurchase program (shares in thousands). Total Number of Dollar Value of Average Price Paid $5.0 Billion Plan 2021 13,983 $ 589 $ 42.15 2022 11,708 718 $ 61.36 2023: First quarter 10,090 545 $ 53.96 Second quarter 3,795 200 $ 52.70 Fourth quarter 5,465 247 $ 45.17 2023 Total 19,350 992 $ 51.23 2024: First quarter 4,428 193 $ 43.47 Second quarter 5,188 256 $ 49.40 2024 Total 9,616 449 $ 46.67 Total plan 54,657 $ 2,748 $ 50.28 Dividends Devon pays a quarterly dividend which is comprised of a fixed dividend and a variable dividend. The variable dividend is dependent on quarterly cash flows, among other factors. Devon has raised its fixed dividend multiple times over the past two calendar years and most recently raised it by 10% from $ 0.20 to $ 0.22 per share in the first quarter of 2024. The following table summarizes Devon’s fixed and variable dividends for the first six months of 2024 and 2023, respectively. Fixed Variable Total Rate Per Share 2024: First quarter $ 143 $ 156 $ 299 $ 0.44 Second quarter 138 85 223 $ 0.35 Total year-to-date $ 281 $ 241 $ 522 2023: First quarter $ 133 $ 463 $ 596 $ 0.89 Second quarter 128 334 462 $ 0.72 Total year-to-date $ 261 $ 797 $ 1,058 In August 2024, Devon announced a cash dividend in the amount of $ 0.44 per share payable in the third quarter of 2024 . The dividend consists of a $ 0.22 per share fixed quarterly dividend and a $ 0.22 per share variable quarterly dividend and will total approximately $ 276 million. Noncontrolling Interests The noncontrolling interests’ share of CDM’s net earnings and the contributions from and distributions to the noncontrolling interests are presented as components of equity. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Com mitments and Contingencies Devon is party to various legal actions arising in connection with its 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 likely involve future amounts that would be material to Devon’s financial position or results of operations after consideration of recorded accruals. Actual amounts could differ materially from management’s estimates. Royalty Matters Numerous oil and natural gas producers and related parties, including Devon, have been named in various lawsuits alleging royalty underpayments. Devon is currently named as a defendant in a number of such lawsuits, including some lawsuits in which the plaintiffs seek to certify classes of similarly situated plaintiffs. Among the allegations typically asserted in these suits are claims that Devon used below-market prices, made improper deductions, paid royalty proceeds in an untimely manner without including required interest, used improper measurement techniques and entered into gas purchase and processing arrangements with affiliates that resulted in underpayment of royalties in connection with oil, natural gas and NGLs produced and sold. Devon is also involved in governmental agency proceedings and royalty audits and is subject to related contracts and regulatory controls in the ordinary course of business, some that may lead to additional royalty claims. As of June 30, 2024, Devon has accrued approximately $ 35 million in other current liabilities pertaining to such royalty matters. Environmental and Climate Change Matters Devon’s business is subject to numerous federal, state, tribal and local laws and regulations governing the discharge of materials into the environment or otherwise relating to environmental protection. Failure to comply with these laws and regulations may result in the assessment of administrative, civil and criminal fines and penalties, as well as remediation costs. Although Devon believes that it is in substantial compliance with applicable environmental laws and regulations and that continued compliance with existing requirements will not have a material adverse impact on its business, there can be no assurance that this will continue in the future. Beginning in 2013, various parishes in Louisiana filed suit against numerous oil and gas companies, including Devon, alleging that the companies’ operations and activities in certain fields violated the State and Local Coastal Resource Management Act of 1978, as amended, and caused substantial environmental contamination, subsidence and other environmental damages to land and water bodies located in the coastal zone of Louisiana. The plaintiffs’ claims against Devon relate primarily to the operations of several of Devon’s corporate predecessors. The plaintiffs seek, among other things, payment of the costs necessary to clear, re-vegetate and otherwise restore the allegedly impacted areas. Although Devon cannot predict the ultimate outcome of these matters, Devon denies the allegations in these lawsuits and intends to vigorously defend against these claims. The State of Delaware and various municipalities and other governmental and private parties in California have filed legal proceedings against numerous oil and gas companies, including Devon, seeking relief to abate alleged impacts of climate change. These proceedings include far-reaching claims for monetary damages and injunctive relief. Although Devon cannot predict the ultimate outcome of these matters, Devon denies the allegations asserted in these lawsuits and intends to vigorously defend against these claims. Other Indemnifications and Legacy Matters Pursuant to various sale agreements relating to divested businesses and assets, Devon has indemnified various purchasers against liabilities that they may incur with respect to the businesses and assets acquired from Devon. Additionally, federal, state and other laws in areas of former operations may require previous operators (including corporate successors of previous operators) to perform or make payments in certain circumstances where the current operator may no longer be able to satisfy the applicable obligation. Such obligations may include plugging and abandoning wells, removing production facilities, undertaking other restorative actions or performing requirements under surface agreements in existence at the time of disposition. For example, a predecessor entity of a Devon subsidiary previously sold certain private, state and federal oil and gas leases covering properties in shallow waters off the coast of Louisiana in the Gulf of Mexico. These assets are generally referred to as the East Bay Field. The current operator of the East Bay Field has filed for protection under Chapter 11 of the U.S. Bankruptcy Code and may be unable to satisfy the eventual decommissioning obligations associated with the East Bay Field. Other companies in the chain of title of the East Bay Field have also sought bankruptcy protection and may be similarly unable to satisfy the eventual decommissioning obligations associated with the East Bay Field. Depending upon the outcome of these bankruptcy proceedings, amounts available under decommissioning bonds and a cash security account and other factors, Devon may be required to perform or fund certain decommissioning obligations associated with the East Bay Field under state and federal regulations applicable to predecessor operators. As a result of these factors and uncertainties, we are currently unable to provide an estimate of potential loss. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2024 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The following table provides carrying value and fair value measurement information for certain of Devon’s financial assets and liabilities. The carrying values of cash, accounts receivable, other current receivables, accounts payable, other current payables, accrued expenses and lease liabilities included in the accompanying consolidated balance sheets approximated fair value at June 30, 2024 and December 31, 2023, as applicable. Therefore, such financial assets and liabilities are not presented in the following table. Fair Value Measurements Using: Carrying Total Fair Level 1 Level 2 Level 3 Amount Value Inputs Inputs Inputs June 30, 2024 assets (liabilities): Cash equivalents $ 487 $ 487 $ 487 $ — $ — Commodity derivatives $ 31 $ 31 $ — $ 31 $ — Commodity derivatives $ ( 31 ) $ ( 31 ) $ — $ ( 31 ) $ — Debt $ ( 6,140 ) $ ( 5,932 ) $ — $ ( 5,932 ) $ — Contingent earnout payments $ 20 $ 20 $ — $ — $ 20 December 31, 2023 assets (liabilities): Cash equivalents $ 306 $ 306 $ 306 $ — $ — Commodity derivatives $ 208 $ 208 $ — $ 208 $ — Commodity derivatives $ ( 9 ) $ ( 9 ) $ — $ ( 9 ) $ — Debt $ ( 6,155 ) $ ( 6,090 ) $ — $ ( 6,090 ) $ — Contingent earnout payments $ 55 $ 55 $ — $ — $ 55 The following methods and assumptions were used to estimate the fair values in the table above. Level 1 Fair Value Measurements Cash equivalents – Amounts consist primarily of money market investments and the fair value approximates the carrying value. Level 2 Fair Value Measurements Commodity derivatives – The fair value of commodity derivatives is estimated using internal discounted cash flow calculations based upon forward curves and data obtained from independent third parties for contracts with similar terms or data obtained from counterparties to the agreements. Debt – Devon’s debt instruments do not consistently trade actively in an established market. The fair values of its debt are estimated based on rates available for debt with similar terms and maturity when active trading is not available. Level 3 Fair Value Measurements Contingent Earnout Payments – Devon has the right to receive contingent consideration related to the Barnett asset divestiture based on future oil and gas prices. These values were derived using a Monte Carlo valuation model and qualify as a level 3 fair value measurement. For additional information, see Note 2 . |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2024 | |
Accounting Policies [Abstract] | |
Variable Interest Entity | Variable Interest Entity CDM is a joint venture entity formed by Devon and an affiliate of QL Capital Partners, LP. CDM provides gathering, compression and dehydration services for natural gas production in the Cotton Draw area of the Delaware Basin. Devon holds a controlling interest in CDM and the portions of CDM’s net earnings and equity not attributable to Devon’s controlling interest are shown separately as noncontrolling interests in the accompanying consolidated statements of comprehensive earnings and consolidated balance sheets. CDM is considered a VIE to Devon. The assets of CDM cannot be used by Devon for general corporate purposes and are included in, and disclosed parenthetically, on Devon's consolidated balance sheets. The carrying amount of liabilities related to CDM for which the creditors do not have recourse to Devon's assets are also included in, and disclosed parenthetically, if material, on Devon's consolidated balance sheets. |
Investments | Investments The following table presents Devon's investments. Carrying Amount Investments % Interest June 30, 2024 December 31, 2023 Catalyst 50 % $ 291 $ 311 Water JV 30 % 218 216 Matterhorn 12.5 % 90 90 Fervo 12 % 56 — Other Various 49 49 Total $ 704 $ 666 Devon has an interest in Catalyst, which is a joint venture with an affiliate of Howard Energy Partners, LLC (“HEP”) and certain other investors, to develop oil gathering and natural gas processing infrastructure in the Stateline area of the Delaware Basin. Under the terms of the arrangement, Devon and a holding company owned by the other joint venture investors each have a 50 % voting interest in the joint venture legal entity, and HEP serves as the operator. Through 2038, Devon’s production from 50,000 net acres in the Stateline area of the Delaware Basin has been dedicated to Catalyst subject to fixed-fee oil gathering and natural gas processing agreements. Devon accounts for the investment in Catalyst as an equity method investment. Devon's investment in Catalyst is shown within investments on the consolidated balance sheets and Devon's share of Catalyst earnings are reflected as a component of other, net in the accompanying consolidated statements of comprehensive earnings. In the second quarter of 2023, Devon made an investment in the Water JV, a joint venture entity formed with an affiliate of WaterBridge NDB LLC (“WaterBridge”), for the purpose of providing increased capacity and flexibility in disposing of produced water in the Delaware Basin and Eagle Ford. Under terms of the arrangement, Devon contributed water infrastructure assets and committed to a water gathering and disposal dedication to the Water JV through 2038, in exchange for a 30 % voting interest in the joint venture legal entity. WaterBridge contributed water infrastructure assets to the Water JV, in exchange for a 70 % voting interest in the joint venture legal entity and will serve as the operator. In the second quarter of 2023, Devon recognized a $ 64 million gain in asset dispositions in the consolidated statements of comprehensive earnings, which represented the excess of the estimated fair value of Devon's interest in the Water JV over the carrying value of the water infrastructure assets Devon contributed to the Water JV. Devon accounts for the investment in the Water JV as an equity method investment. Devon's investment in the Water JV is shown within investments on the consolidated balance sheets and Devon's share of the Water JV earnings are reflected as a component of other, net in the accompanying consolidated statements of comprehensive earnings. Matterhorn is a joint venture entity and was formed for the purpose of constructing a natural gas pipeline that will transport natural gas from the Permian Basin to the Katy, Texas area. Devon's investment in Matterhorn does not give it the ability to exercise significant influence over Matterhorn. In the first quarter of 2024, Devon committed to invest approximately $ 100 million in Fervo, a company that generates energy from geothermal wells. As of June 30, 2024, Devon has funded approximately $ 55 million of the commitment and expects to fund the remaining $ 45 million commitment throughout 2024. The investment in Fervo allows Devon to exercise significant influence over Fervo, and the investment is accounted for under the equity method of accounting. Devon's investment in Fervo is shown within investments on the consolidated balance sheets and Devon's share of Fervo earnings are reflected as a component of other, net in the accompanying consolidated statements of comprehensive earnings. |
Disaggregation of Revenue | Disaggregation of Revenue The following table presents revenue from contracts with customers that are disaggregated based on the type of good or service. Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Oil $ 2,413 $ 2,106 $ 4,602 $ 4,249 Gas 57 122 185 335 NGL 326 265 638 588 Oil, gas and NGL sales 2,796 2,493 5,425 5,172 Oil 801 735 1,608 1,465 Gas 100 123 221 275 NGL 197 179 381 377 Marketing and midstream revenues 1,098 1,037 2,210 2,117 Total revenues from contracts with customers $ 3,894 $ 3,530 $ 7,635 $ 7,289 |
Recently Issued Accounting Standards Not Yet Adopted | Recently Issued Accounting Standards Not Yet Adopted In December 2023, the FASB issued ASU 2023-09, Improvements to Income Tax Disclosures. ASU 2023-09 intends to provide investors with enhanced information about an entity’s income taxes by requiring disclosure of items such as disaggregation of the effective tax rate reconciliation as well as information regarding income taxes paid. This ASU is effective for annual reporting periods beginning after December 15, 2024, with early adoption permitted for annual financial statements that have not yet been issued. Devon is evaluating the impact this ASU will have on the disclosures that accompany its consolidated financial statements. In November 2023, the FASB issued ASU 2023-07, Improvements to Reportable Segments Disclosures. Under this ASU, the scope and frequency of segment disclosures is increased to provide investors with additional detail about information utilized by an entity’s “Chief Operating Decision Maker.” This ASU is effective for Devon beginning with our 2024 annual reporting and interim periods beginning in 2025. Devon is evaluating the impact this ASU will have on the disclosures that accompany its consolidated financial statements. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Accounting Policies [Abstract] | |
Schedule of Components of Investment | The following table presents Devon's investments. Carrying Amount Investments % Interest June 30, 2024 December 31, 2023 Catalyst 50 % $ 291 $ 311 Water JV 30 % 218 216 Matterhorn 12.5 % 90 90 Fervo 12 % 56 — Other Various 49 49 Total $ 704 $ 666 |
Schedule of Revenue from Contracts with Customers | The following table presents revenue from contracts with customers that are disaggregated based on the type of good or service. Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Oil $ 2,413 $ 2,106 $ 4,602 $ 4,249 Gas 57 122 185 335 NGL 326 265 638 588 Oil, gas and NGL sales 2,796 2,493 5,425 5,172 Oil 801 735 1,608 1,465 Gas 100 123 221 275 NGL 197 179 381 377 Marketing and midstream revenues 1,098 1,037 2,210 2,117 Total revenues from contracts with customers $ 3,894 $ 3,530 $ 7,635 $ 7,289 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Open Derivative Positions | Commodity Derivatives As of June 30, 2024, Devon had the following open oil derivative positions. The first table presents Devon’s oil derivatives that settle against the average of the prompt month NYMEX WTI futures price. The second table presents Devon’s oil derivatives that settle against the respective indices noted within the table. Price Swaps Price Collars Period Volume Weighted Volume Weighted Weighted Q3-Q4 2024 28,000 $ 78.97 83,000 $ 67.80 $ 85.04 Q1-Q4 2025 4,468 $ 72.83 5,992 $ 70.00 $ 77.97 Oil Basis Swaps Period Index Volume Weighted Average Q3-Q4 2024 Midland Sweet 69,500 $ 1.17 Q3-Q4 2024 NYMEX Roll 26,000 $ 0.82 Q1-Q4 2025 Midland Sweet 63,000 $ 1.00 Q1-Q4 2026 Midland Sweet 18,000 $ 1.21 As of June 30, 2024, Devon had the following open natural gas derivative positions. The first table presents Devon’s natural gas derivatives that settle against the Inside FERC first of the month Henry Hub index. The second table presents Devon’s natural gas derivatives that settle against the respective indices noted within the table. Price Swaps Price Collars Period Volume (MMBtu/d) Weighted Average Price ($/MMBtu) Volume (MMBtu/d) Weighted Average Floor Price ($/MMBtu) Weighted Average Q3-Q4 2024 279,000 $ 3.18 15,000 $ 3.00 $ 3.65 Q1-Q4 2025 200,537 $ 3.34 15,000 $ 3.00 $ 3.65 Q1-Q4 2026 80,000 $ 3.90 — — — Natural Gas Basis Swaps Period Index Volume Weighted Average Q3-Q4 2024 El Paso Natural Gas 10,000 $ ( 1.00 ) Q3-Q4 2024 Houston Ship Channel 160,000 $ ( 0.28 ) Q3-Q4 2024 WAHA 80,000 $ ( 0.74 ) Q1-Q4 2025 Houston Ship Channel 40,000 $ ( 0.35 ) Q1-Q4 2025 WAHA 10,000 $ ( 0.63 ) Q1-Q4 2026 Houston Ship Channel 25,000 $ ( 0.25 ) As of June 30, 2024, Devon had the following open NGL derivative positions. Devon's NGL positions settle against the average of the prompt month OPIS Mont Belvieu, Texas index. Price Swaps Period Product Volume (Bbls/d) Weighted Average Price ($/Bbl) Q3-Q4 2024 Natural Gasoline 3,000 $ 69.11 Q3-Q4 2024 Normal Butane 3,350 $ 37.58 Q3-Q4 2024 Propane 5,250 $ 33.01 |
Schedule of Derivative Financial Instruments Included in the Consolidated Balance Sheets | The table below presents a summary of these positions as of June 30, 2024 and December 31, 2023. June 30, 2024 December 31, 2023 Gross Fair Value Amounts Netted Net Fair Value Gross Fair Value Amounts Netted Net Fair Value Balance Sheet Classification Commodity derivatives: Short-term derivative asset $ 44 $ ( 15 ) $ 29 $ 213 $ ( 5 ) $ 208 Other current assets Long-term derivative asset 5 ( 3 ) 2 — — — Other long-term assets Short-term derivative liability ( 39 ) 15 ( 24 ) ( 7 ) 5 ( 2 ) Other current liabilities Long-term derivative liability ( 10 ) 3 ( 7 ) ( 7 ) — ( 7 ) Other long-term liabilities Total derivative asset $ — $ — $ — $ 199 $ — $ 199 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule Of Share-Based Compensation Expense Included In The Consolidated Statements Of Comprehensive Earnings | The table below presents the share-based compensation expense included in Devon’s accompanying consolidated statements of comprehensive earnings. Six Months Ended June 30, 2024 2023 G&A $ 50 $ 48 Exploration expenses 1 — Total $ 51 $ 48 Related income tax benefit $ 18 $ 27 |
Summary Of Unvested Restricted Stock Awards, Performance-Based Restricted Stock Awards And Performance Share Units | The following table presents a summary of Devon’s unvested restricted stock awards and units and performance share units granted under the plan. Restricted Stock Awards & Units Performance Share Units Awards/Units Weighted Units Weighted (Thousands, except fair value data) Unvested at 12/31/23 4,033 $ 42.10 1,547 $ 43.25 Granted 1,883 $ 42.46 858 $ 40.41 Vested ( 1,789 ) $ 34.84 ( 1,226 ) $ 18.08 Forfeited ( 58 ) $ 45.04 — $ — Unvested at 6/30/24 4,069 $ 45.42 1,179 (1) $ 67.38 A maximum of 2.4 million common shares could be awarded based upon Devon’s final TSR ranking. |
Summary Of Performance Share Units Grant-Date Fair Values And Their Related Assumptions | The following table presents the assumptions related to the performance share units granted in 2024, as indicated in the previous summary table. The grants in the previous summary table also include the impacts of performance share units granted in a prior year that vested higher than 100 % of target due to Devon's TSR performance compared to our peers. 2024 Grant-date fair value $ 56.99 Risk-free interest rate 4.28 % Volatility factor 46.03 % Contractual term (years) 2.89 |
Summary of Unrecognized Compensation Cost And Weighted Average Period For Recognition | The following table presents a summary of the unrecognized compensation cost and the related weighted average recognition period associated with unvested awards and units as of June 30, 2024. Restricted Stock Performance Awards/Units Share Units Unrecognized compensation cost $ 128 $ 33 Weighted average period for recognition (years) 2.8 1.8 |
Income Taxes (Tables)
Income Taxes (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Income Tax Disclosure [Abstract] | |
Schedule of Effective Income Tax Rate Reconciliation | The following table presents Devon’s total income tax expense and a reconciliation of its effective income tax rate to the U.S. statutory income tax rate. Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Earnings before income taxes $ 1,040 $ 897 $ 1,808 $ 2,121 Current income tax expense $ 146 $ 80 $ 265 $ 221 Deferred income tax expense 39 119 79 199 Total income tax expense $ 185 $ 199 $ 344 $ 420 U.S. statutory income tax rate 21 % 21 % 21 % 21 % State income taxes 1 % 1 % 1 % 1 % Income tax credits ( 4 %) — ( 3 %) ( 2 %) Effective income tax rate 18 % 22 % 19 % 20 % |
Net Earnings Per Share (Tables)
Net Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Earnings Per Share [Abstract] | |
Net Earnings (Loss) Per Share Computations from Continuing Operations | The following table reconciles net earnings available to common shareholders and weighted-average common shares outstanding used in the calculations of basic and diluted net earnings per share. Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Net earnings available to common shareholders - basic and diluted $ 844 $ 687 $ 1,440 $ 1,674 Common shares: Average common shares outstanding - basic 626 638 628 641 Dilutive effect of potential common shares issuable 2 1 2 2 Average common shares outstanding - diluted 628 639 630 643 Net earnings per share available to common shareholders: Basic $ 1.35 $ 1.08 $ 2.29 $ 2.61 Diluted $ 1.34 $ 1.07 $ 2.29 $ 2.60 |
Other Comprehensive Earnings _2
Other Comprehensive Earnings (Loss) (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Components Of Other Comprehensive Earnings (Loss) | Components of other comprehensive earnings (loss) consist of the following: Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Pension and postretirement benefit plans: Beginning accumulated pension and postretirement benefits $ ( 123 ) $ ( 115 ) $ ( 124 ) $ ( 116 ) Recognition of net actuarial loss and prior service cost in earnings (1) 2 2 3 3 Income tax expense ( 1 ) ( 1 ) ( 1 ) ( 1 ) Accumulated other comprehensive loss, net of tax $ ( 122 ) $ ( 114 ) $ ( 122 ) $ ( 114 ) (1) Recognition of net actuarial loss and prior service cost are included in the computation of net periodic benefit cost, which is a component of other, net in the accompanying consolidated statements of comprehensive earnings. |
Supplemental Information to S_2
Supplemental Information to Statements of Cash Flows (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Supplemental Cash Flow Elements [Abstract] | |
Schedule of Supplemental Information to Statements of Cash Flows | Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Changes in assets and liabilities, net: Accounts receivable $ 81 $ 98 $ ( 15 ) $ 248 Other current assets ( 84 ) ( 12 ) ( 107 ) 4 Other long-term assets ( 16 ) ( 13 ) 33 18 Accounts payable and revenues and royalties payable 42 ( 65 ) 185 ( 230 ) Other current liabilities ( 224 ) ( 138 ) ( 108 ) ( 141 ) Other long-term liabilities — ( 10 ) ( 19 ) ( 27 ) Total $ ( 201 ) $ ( 140 ) $ ( 31 ) $ ( 128 ) Supplementary cash flow data: Interest paid $ 112 $ 88 $ 175 $ 189 Income taxes paid $ 388 $ 259 $ 384 $ 259 Devon's non-cash investing activities for the three and six months ended June 30, 2023, included approximately $ 150 million of contributions of other property and equipment for the formation of the Water JV. |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Accounts Receivable, after Allowance for Credit Loss [Abstract] | |
Schedule Of Components Of Accounts Receivable | Components of accounts receivable include the following: June 30, 2024 December 31, 2023 Oil, gas and NGL sales $ 941 $ 965 Joint interest billings 253 251 Marketing and midstream revenues 370 342 Other 32 22 Gross accounts receivable 1,596 1,580 Allowance for doubtful accounts ( 7 ) ( 7 ) Net accounts receivable $ 1,589 $ 1,573 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Extractive Industries [Abstract] | |
Table of Property and Equipment, net | The following table presents the aggregate capitalized costs related to Devon’s oil and gas and non-oil and gas activities. June 30, 2024 December 31, 2023 Property and equipment: Proved $ 48,402 $ 46,659 Unproved and properties under development 1,370 1,279 Total oil and gas 49,772 47,938 Less accumulated DD&A ( 31,556 ) ( 30,113 ) Oil and gas property and equipment, net 18,216 17,825 Other property and equipment 2,386 2,289 Less accumulated DD&A ( 817 ) ( 786 ) Other property and equipment, net (1) 1,569 1,503 Property and equipment, net $ 19,785 $ 19,328 (1) $ 159 million and $ 136 million related to CDM in 2024 and 2023, respectively. |
Debt And Related Expenses (Tabl
Debt And Related Expenses (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Debt Instrument [Line Items] | |
Schedule Of Debt Instruments and Balances | See below for a summary of debt instruments and balances. The notes and debentures are senior, unsecured obligations of Devon. June 30, 2024 December 31, 2023 5.25 % due September 15, 2024 $ 472 $ 472 5.85 % due December 15, 2025 485 485 7.50 % due September 15, 2027 73 73 5.25 % due October 15, 2027 390 390 5.875 % due June 15, 2028 325 325 4.50 % due January 15, 2030 585 585 7.875 % due September 30, 2031 675 675 7.95 % due April 15, 2032 366 366 5.60 % due July 15, 2041 1,250 1,250 4.75 % due May 15, 2042 750 750 5.00 % due June 15, 2045 750 750 Net premium on debentures and notes 49 64 Debt issuance costs ( 30 ) ( 30 ) Total debt $ 6,140 $ 6,155 Less amount classified as short-term debt 475 483 Total long-term debt $ 5,665 $ 5,672 |
Schedule Of Net Financing Cost Components | The following schedule includes the components of net financing costs. Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Interest based on debt outstanding $ 88 $ 96 $ 175 $ 189 Interest income ( 14 ) ( 15 ) ( 27 ) ( 32 ) Other 2 ( 3 ) 4 ( 7 ) Total net financing costs $ 76 $ 78 $ 152 $ 150 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Leases [Abstract] | |
Schedule of Right-of-use Assets and Lease Liabilities | The following table presents Devon’s right-of-use assets and lease liabilities as of June 30, 2024 and December 31, 2023. June 30, 2024 December 31, 2023 Finance Operating Total Finance Operating Total Right-of-use assets $ 241 $ 56 $ 297 $ 246 $ 21 $ 267 Lease liabilities: Current lease liabilities (1) $ 21 $ 26 $ 47 $ 21 $ 12 $ 33 Long-term lease liabilities 285 30 315 286 9 295 Total lease liabilities (2) $ 306 $ 56 $ 362 $ 307 $ 21 $ 328 (1) Current lease liabilities are included in other current liabilities on the consolidated balance sheets . (2) Devon has entered into certain leases of equipment related to the exploration, development and production of oil and gas that had terms not yet commenced as of June 30, 2024 and are therefore excluded from the amounts shown above. |
Asset Retirement Obligations (T
Asset Retirement Obligations (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Summary of Changes in Asset Retirement Obligations | The following table presents the changes in Devon’s asset retirement obligations. Six Months Ended June 30, 2024 2023 Asset retirement obligations as of beginning of period $ 665 $ 529 Liabilities incurred 15 14 Liabilities settled and divested ( 16 ) ( 18 ) Revision of estimated obligation 35 27 Accretion expense on discounted obligation 18 14 Asset retirement obligations as of end of period 717 566 Less current portion 26 18 Asset retirement obligations, long-term $ 691 $ 548 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Stockholders' Equity Note [Abstract] | |
Summary of Purchases of Common Stock | The table below provides information regarding purchases of Devon’s common stock under the $ 5.0 billion share repurchase program (shares in thousands). Total Number of Dollar Value of Average Price Paid $5.0 Billion Plan 2021 13,983 $ 589 $ 42.15 2022 11,708 718 $ 61.36 2023: First quarter 10,090 545 $ 53.96 Second quarter 3,795 200 $ 52.70 Fourth quarter 5,465 247 $ 45.17 2023 Total 19,350 992 $ 51.23 2024: First quarter 4,428 193 $ 43.47 Second quarter 5,188 256 $ 49.40 2024 Total 9,616 449 $ 46.67 Total plan 54,657 $ 2,748 $ 50.28 |
Schedule of Dividends Payable | The following table summarizes Devon’s fixed and variable dividends for the first six months of 2024 and 2023, respectively. Fixed Variable Total Rate Per Share 2024: First quarter $ 143 $ 156 $ 299 $ 0.44 Second quarter 138 85 223 $ 0.35 Total year-to-date $ 281 $ 241 $ 522 2023: First quarter $ 133 $ 463 $ 596 $ 0.89 Second quarter 128 334 462 $ 0.72 Total year-to-date $ 261 $ 797 $ 1,058 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Fair Value Disclosures [Abstract] | |
Schedule Of Carrying Value And Fair Value Measurement Information For Financial Assets And Liabilities | Therefore, such financial assets and liabilities are not presented in the following table. Fair Value Measurements Using: Carrying Total Fair Level 1 Level 2 Level 3 Amount Value Inputs Inputs Inputs June 30, 2024 assets (liabilities): Cash equivalents $ 487 $ 487 $ 487 $ — $ — Commodity derivatives $ 31 $ 31 $ — $ 31 $ — Commodity derivatives $ ( 31 ) $ ( 31 ) $ — $ ( 31 ) $ — Debt $ ( 6,140 ) $ ( 5,932 ) $ — $ ( 5,932 ) $ — Contingent earnout payments $ 20 $ 20 $ — $ — $ 20 December 31, 2023 assets (liabilities): Cash equivalents $ 306 $ 306 $ 306 $ — $ — Commodity derivatives $ 208 $ 208 $ — $ 208 $ — Commodity derivatives $ ( 9 ) $ ( 9 ) $ — $ ( 9 ) $ — Debt $ ( 6,155 ) $ ( 6,090 ) $ — $ ( 6,090 ) $ — Contingent earnout payments $ 55 $ 55 $ — $ — $ 55 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Narrative) (Details) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 USD ($) a | Jun. 30, 2023 USD ($) | Jun. 30, 2024 USD ($) a | Jun. 30, 2023 USD ($) | Mar. 31, 2024 USD ($) | |
Summary Of Significant Accounting Policies [Line Items] | |||||
Gain loss on disposition of assets | $ (15) | $ 41 | $ (16) | $ 41 | |
Devon Energy Corporation [Member] | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Voting interest in the joint venture legal entity | 30% | 30% | |||
Devon Energy Corporation [Member] | Waterbridge | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Voting interest in the joint venture legal entity | 70% | 70% | |||
Water JV [Member] | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Gain loss on disposition of assets | $ 64 | ||||
WPX and Howard Energy Partners [Member] | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Voting interest in the joint venture legal entity | 50% | 50% | |||
Catalyst [Member] | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Area of land | a | 50,000 | 50,000 | |||
Fervo [Member] | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Investment | $ 100 | ||||
Commitment amount funded | $ 55 | ||||
Committed to making additional investments | $ 45 | $ 45 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - (Schedule of Components of Investments) (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Summary Of Significant Accounting Policies [Line Items] | ||
Total Investments | $ 704 | $ 666 |
Catalyst [Member] | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Total Investments | $ 291 | 311 |
Percentage Of Interest In Investments | 50% | |
Water JV [Member] | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Total Investments | $ 218 | 216 |
Percentage Of Interest In Investments | 30% | |
Matterhorn [Member] | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Total Investments | $ 90 | 90 |
Percentage Of Interest In Investments | 12.50% | |
Fervo [Member] | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Total Investments | $ 56 | 0 |
Percentage Of Interest In Investments | 12% | |
Other [Member] | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Total Investments | $ 49 | $ 49 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies (Schedule of Revenue from Contracts with Customers) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Disaggregation Of Revenue [Line Items] | ||||
Total revenues from contracts with customers | $ 3,894 | $ 3,530 | $ 7,635 | $ 7,289 |
Oil, Gas and NGL Sales [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenues from contracts with customers | 2,796 | 2,493 | 5,425 | 5,172 |
Oil, Gas and NGL Sales [Member] | Oil [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenues from contracts with customers | 2,413 | 2,106 | 4,602 | 4,249 |
Oil, Gas and NGL Sales [Member] | Gas [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenues from contracts with customers | 57 | 122 | 185 | 335 |
Oil, Gas and NGL Sales [Member] | NGL [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenues from contracts with customers | 326 | 265 | 638 | 588 |
Marketing and Midstream Revenues [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenues from contracts with customers | 1,098 | 1,037 | 2,210 | 2,117 |
Marketing and Midstream Revenues [Member] | Oil [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenues from contracts with customers | 801 | 735 | 1,608 | 1,465 |
Marketing and Midstream Revenues [Member] | Gas [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenues from contracts with customers | 100 | 123 | 221 | 275 |
Marketing and Midstream Revenues [Member] | NGL [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenues from contracts with customers | $ 197 | $ 179 | $ 381 | $ 377 |
Acquisition and Divestitures (N
Acquisition and Divestitures (Narrative) (Details) shares in Millions, $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | |
Jul. 31, 2024 USD ($) shares | Mar. 31, 2023 USD ($) | Jun. 30, 2024 USD ($) $ / MMBTU $ / bbl shares | Dec. 31, 2023 shares | |
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations And Disposition [Line Items] | ||||
Potential additional contingent earnout payment | $ 65 | |||
Common stock, shares issued (in shares) | shares | 628 | 636 | ||
Other Current Assets [Member] | ||||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations And Disposition [Line Items] | ||||
Contingent earnout payments | $ 20 | |||
Barnett Shale [Member] | ||||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations And Disposition [Line Items] | ||||
Contingent earnout payments | $ 65 | $ 20 | ||
Henry Hub gas price for contingent earnout payment upside | $ / MMBTU | 2.75 | |||
WTI oil price for contingent earnout payment upside | $ / bbl | 50 | |||
Contingent earnout payment period | The contingent payment period commenced on January 1, 2021 and has a term of four years. | |||
Williston Acquisition [Member] | ||||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations And Disposition [Line Items] | ||||
Cash paid related to acquisition | $ 3,250 | |||
Williston Acquisition [Member] | Common Stock [Member] | ||||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations And Disposition [Line Items] | ||||
Common stock, shares issued (in shares) | shares | 37 | |||
Non Core Assets [Member] | ||||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations And Disposition [Line Items] | ||||
Contingent earnout payments | $ 4 |
Derivative Financial Instrume_3
Derivative Financial Instruments (Narrative) (Details) $ in Millions | Jun. 30, 2024 USD ($) |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Cash collateral posted | $ 0 |
Derivative Financial Instrume_4
Derivative Financial Instruments (Schedule Of Open Oil Derivative Positions) (Details) | 6 Months Ended |
Jun. 30, 2024 $ / bbl bbl | |
NYMEX West Texas Intermediate Price Collars Oil Q1 Q4 2025 [Member] | |
Derivatives, Fair Value [Line Items] | |
Volume Per Day (Bbls/d) | bbl | 5,992 |
Weighted Average Floor Price | 70 |
Weighted Average Ceiling Price | 77.97 |
Midland Sweet Q1 Q4 2026 [Member] | |
Derivatives, Fair Value [Line Items] | |
Volume Per Day (Bbls/d) | bbl | 18,000 |
Weighted Average Differential To WTI Price | 1.21 |
Midland Sweet Q1-Q4 2025 [Member] | |
Derivatives, Fair Value [Line Items] | |
Volume Per Day (Bbls/d) | bbl | 63,000 |
Weighted Average Differential To WTI Price | 1 |
Nymex west texas intermediate price collar soil Q3 Q4 2024 [member] | |
Derivatives, Fair Value [Line Items] | |
Volume Per Day (Bbls/d) | bbl | 83,000 |
Weighted Average Floor Price | 67.8 |
Weighted Average Ceiling Price | 85.04 |
Nymex West Texas Intermediate Price Swaps Oil Q1 Q4 2025 [Member] | |
Derivatives, Fair Value [Line Items] | |
Volume Per Day (Bbls/d) | bbl | 4,468 |
Weighted Average Price Swap | 72.83 |
Nymex Westtexas Intermediate Price Swaps Oil Q3 Q4 2024 | |
Derivatives, Fair Value [Line Items] | |
Volume Per Day (Bbls/d) | bbl | 28,000 |
Weighted Average Price Swap | 78.97 |
Midland sweet Q3 Q4 2024 [Member] | |
Derivatives, Fair Value [Line Items] | |
Volume Per Day (Bbls/d) | bbl | 69,500 |
Weighted Average Differential To WTI Price | 1.17 |
Nymexroll Q3 Q4 2024 [Member] | |
Derivatives, Fair Value [Line Items] | |
Volume Per Day (Bbls/d) | bbl | 26,000 |
Weighted Average Differential To WTI Price | 0.82 |
Derivative Financial Instrume_5
Derivative Financial Instruments (Schedule Of Open Natural Gas Derivative Positions) (Details) | 6 Months Ended |
Jun. 30, 2024 MMBTU $ / MMBTU $ / Customer | |
FercHenry Hub Price Swaps Natural Gas Q3 Q4 2024 [Member] | |
Derivatives, Fair Value [Line Items] | |
Volume Per Day (MMBtu/d) | MMBTU | 279,000 |
Weighted Average Price Swap | $ / MMBTU | 3.18 |
FercHenry Hub Prices Collars Natural Gas Q3 Q4 2024 [Member] | |
Derivatives, Fair Value [Line Items] | |
Volume Per Day (MMBtu/d) | MMBTU | 15,000 |
Weighted Average Floor Price | $ / MMBTU | 3 |
Weighted Average Ceiling Price | $ / MMBTU | 3.65 |
FERC Henry Hub Price Swaps Natural Gas Q1-Q4 2025 [Member] | |
Derivatives, Fair Value [Line Items] | |
Volume Per Day (MMBtu/d) | MMBTU | 200,537 |
Weighted Average Price Swap | $ / MMBTU | 3.34 |
FERC Henry Hub Price Swaps Natural Gas Q1-Q4 2026 [Member] | |
Derivatives, Fair Value [Line Items] | |
Volume Per Day (MMBtu/d) | MMBTU | 80,000 |
Weighted Average Price Swap | $ / MMBTU | 3.9 |
FERC Henry Hub Price Collars Natural Gas Q1-Q4 2025 [Member] | |
Derivatives, Fair Value [Line Items] | |
Volume Per Day (MMBtu/d) | MMBTU | 15,000 |
Weighted Average Floor Price | $ / Customer | 3 |
Weighted Average Ceiling Price | $ / Customer | 3.65 |
Elpaso Natural Gas Basis Swap Q3 Q4 2024 [Member] | |
Derivatives, Fair Value [Line Items] | |
Volume Per Day (MMBtu/d) | MMBTU | 10,000 |
Weighted Average Differential To Henry Hub | $ / MMBTU | (1) |
Houston Ship Channel Natural Gas Basis Swaps Q3 Q4 2024 [Member] | |
Derivatives, Fair Value [Line Items] | |
Volume Per Day (MMBtu/d) | MMBTU | 160,000 |
Weighted Average Differential To Henry Hub | $ / MMBTU | (0.28) |
Waha Natural Gas Basis Swaps Q3 Q4 2024 [Member] | |
Derivatives, Fair Value [Line Items] | |
Volume Per Day (MMBtu/d) | MMBTU | 80,000 |
Weighted Average Differential To Henry Hub | $ / MMBTU | (0.74) |
Houston Ship Channel Natural Gas Basis Swap Q1-Q4 2025 [Member] | |
Derivatives, Fair Value [Line Items] | |
Volume Per Day (MMBtu/d) | MMBTU | 40,000 |
Weighted Average Differential To Henry Hub | $ / MMBTU | (0.35) |
WAHA Natural Gas Basis Swaps Q1 Q4 2025 [Member] | |
Derivatives, Fair Value [Line Items] | |
Volume Per Day (MMBtu/d) | MMBTU | 10,000 |
Weighted Average Differential To Henry Hub | $ / MMBTU | (0.63) |
Houston Ship Channel Natural Gas Basis Swap Q1-Q4 2026 [Member] | |
Derivatives, Fair Value [Line Items] | |
Volume Per Day (MMBtu/d) | MMBTU | 25,000 |
Weighted Average Differential To Henry Hub | $ / MMBTU | (0.25) |
Derivative Financial Instrume_6
Derivative Financial Instruments (Schedule Of Open NGL Derivative Positions) (Details) | 6 Months Ended |
Jun. 30, 2024 $ / bbl bbl | |
Q3 Q4 2024 Natural Gasoline [Member] | |
Derivatives, Fair Value [Line Items] | |
Volume Per Day (Bbls/d) | bbl | 3,000 |
Weighted Average Price Swap | $ / bbl | 69.11 |
Q3 Q4 2024 Normal Butane [Member] | |
Derivatives, Fair Value [Line Items] | |
Volume Per Day (Bbls/d) | bbl | 3,350 |
Weighted Average Price Swap | $ / bbl | 37.58 |
Q3 Q4 Propane [Member] | |
Derivatives, Fair Value [Line Items] | |
Volume Per Day (Bbls/d) | bbl | 5,250 |
Weighted Average Price Swap | $ / bbl | 33.01 |
Derivative Financial Instrume_7
Derivative Financial Instruments (Schedule Of Derivative Financial Instruments Included In The Consolidated Balance Sheets) (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Derivatives Fair Value [Line Items] | ||
Gross Fair Value | $ 0 | $ 199 |
Amounts Netted | 0 | 0 |
Net Fair Value | 0 | 199 |
Short-term Derivative Asset [Member] | ||
Derivatives Fair Value [Line Items] | ||
Gross Fair Value | 44 | 213 |
Amounts Netted | (15) | (5) |
Net Fair Value | 29 | 208 |
Long-term Derivative Asset [Member] | ||
Derivatives Fair Value [Line Items] | ||
Gross Fair Value | 5 | 0 |
Amounts Netted | (3) | 0 |
Net Fair Value | 2 | 0 |
Short-term Derivative Liability [Member] | ||
Derivatives Fair Value [Line Items] | ||
Gross Fair Value | (39) | (7) |
Amounts Netted | 15 | 5 |
Net Fair Value | (24) | (2) |
Long-term Derivative Liability [Member] | ||
Derivatives Fair Value [Line Items] | ||
Gross Fair Value | (10) | (7) |
Amounts Netted | 3 | 0 |
Net Fair Value | $ (7) | $ (7) |
Share-Based Compensation (Addit
Share-Based Compensation (Additional Information) (Details) | 6 Months Ended |
Jun. 30, 2024 | |
Performance Shares [Member] | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Share-based Compensation Arrangement By Share-Based Payment Award Award Vesting Rights Percentage | 100% |
Share-Based Compensation (Sched
Share-Based Compensation (Schedule Of Share-Based Compensation Expense Included In The Consolidated Statements Of Comprehensive Earnings) (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Share-based compensation expense | $ 51 | $ 48 |
Related income tax benefit | 18 | 27 |
G&A [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Share-based compensation expense | 50 | 48 |
Exploration Expenses [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Share-based compensation expense | $ 1 | $ 0 |
Share-Based Compensation (Summa
Share-Based Compensation (Summary Of Unvested Restricted Stock Awards, Performance-Based Restricted Stock Awards And Performance Share Units) (Details) shares in Thousands | 6 Months Ended | |
Jun. 30, 2024 $ / shares shares | ||
Restricted Stock Awards [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Unvested at December 31, 2023 | shares | 4,033 | |
Granted, awards and units | shares | 1,883 | |
Vested, awards and units | shares | (1,789) | |
Forfeited, awards and units | shares | (58) | |
Unvested at March 31, 2024 | shares | 4,069 | |
Unvested weighted average grant-date fair value at December 31, 2023 | $ / shares | $ 42.1 | |
Granted, weighted average grant-date fair value | $ / shares | 42.46 | |
Vested, weighted average grant-date fair value | $ / shares | 34.84 | |
Forfeited, weighted average grant-date fair value | $ / shares | 45.04 | |
Unvested weighted average grant-date fair value at March 31, 2024 | $ / shares | $ 45.42 | |
Performance Share Units [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Unvested at December 31, 2023 | shares | 1,547 | |
Granted, awards and units | shares | 858 | |
Vested, awards and units | shares | (1,226) | |
Forfeited, awards and units | shares | 0 | |
Unvested at March 31, 2024 | shares | 1,179 | [1] |
Unvested weighted average grant-date fair value at December 31, 2023 | $ / shares | $ 43.25 | |
Granted, weighted average grant-date fair value | $ / shares | 40.41 | |
Vested, weighted average grant-date fair value | $ / shares | 18.08 | |
Forfeited, weighted average grant-date fair value | $ / shares | 0 | |
Unvested weighted average grant-date fair value at March 31, 2024 | $ / shares | $ 67.38 | |
[1] A maximum of 2.4 million common shares could be awarded based upon Devon’s final TSR ranking. |
Share-Based Compensation (Sum_2
Share-Based Compensation (Summary Of Unvested Restricted Stock Awards, Performance-Based Restricted Stock Awards And Performance Share Units) (Parenthetical) (Details) shares in Millions | 6 Months Ended |
Jun. 30, 2024 shares | |
Performance Share Units [Member] | Maximum [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Maximum common shares that could be awarded based upon total shareholder return | 2.4 |
Share-Based Compensation (Sum_3
Share-Based Compensation (Summary Of Performance Share Units Grant-Date Fair Values And Their Related Assumptions) (Details) - Including Performance Factor Shares Granted [Member] | 6 Months Ended |
Jun. 30, 2024 $ / shares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Grant-date fair value | $ 56.99 |
Risk-free interest rate | 4.28% |
Volatility factor | 46.03% |
Contractual term (years) | 2 years 10 months 20 days |
Share-Based Compensation (Sum_4
Share-Based Compensation (Summary of Unrecognized Compensation Cost And Weighted Average Period For Recognition) (Details) | 6 Months Ended |
Jun. 30, 2024 USD ($) | |
Restricted Stock Awards [Member] | |
Unrecognized Compensation And Weighted Average Recognition [Line Items] | |
Unrecognized compensation cost | $ 128 |
Weighted average period for recognition (years) | 2 years 9 months 18 days |
Performance Share Units [Member] | |
Unrecognized Compensation And Weighted Average Recognition [Line Items] | |
Unrecognized compensation cost | $ 33 |
Weighted average period for recognition (years) | 1 year 9 months 18 days |
Income Taxes (Schedule of Compo
Income Taxes (Schedule of Components of Income Tax Expense (Benefit)) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Income Tax Disclosure [Abstract] | ||||
Earnings before income taxes | $ 1,040 | $ 897 | $ 1,808 | $ 2,121 |
Current income tax expense | 146 | 80 | 265 | 221 |
Deferred income tax expense | 39 | 119 | 79 | 199 |
Total income tax expense | $ 185 | $ 199 | $ 344 | $ 420 |
Income Taxes (Schedule Of Effec
Income Taxes (Schedule Of Effective Income Tax Rate Reconciliation) (Details) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Income Tax Disclosure [Abstract] | ||||
U.S. statutory income tax rate | 21% | 21% | 21% | 21% |
State income taxes | 1% | 1% | 1% | 1% |
Income tax credits | (4.00%) | 0% | (3.00%) | (2.00%) |
Effective income tax rate | 18% | 22% | 19% | 20% |
Net Earnings Per Share (Net Ear
Net Earnings Per Share (Net Earnings (Loss) Per Share Computations from Continuing Operations) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Earnings Per Share [Abstract] | ||||
Net earnings available to common shareholders - basic | $ 844 | $ 687 | $ 1,440 | $ 1,674 |
Net earnings available to common shareholders - diluted | $ 844 | $ 687 | $ 1,440 | $ 1,674 |
Common shares: | ||||
Average common shares outstanding - basic | 626 | 638 | 628 | 641 |
Dilutive effect of potential common shares issuable | 2 | 1 | 2 | 2 |
Average common shares outstanding - diluted | 628 | 639 | 630 | 643 |
Net earnings per share available to common shareholders: | ||||
Basic | $ 1.35 | $ 1.08 | $ 2.29 | $ 2.61 |
Diluted | $ 1.34 | $ 1.07 | $ 2.29 | $ 2.6 |
Other Comprehensive Earnings _3
Other Comprehensive Earnings (Loss) (Components Of Other Comprehensive Earnings (Loss)) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | ||
Pension and postretirement benefit plans: | ||||||
Beginning accumulated pension and postretirement benefits | $ (123) | $ (115) | $ (124) | $ (116) | ||
Recognition of net actuarial loss and prior service cost in earnings | [1] | 2 | 2 | 3 | 3 | |
Income tax expense | (1) | (1) | (1) | (1) | ||
Accumulated other comprehensive loss, net of tax | $ (122) | $ (114) | $ (122) | $ (114) | $ (124) | |
[1] Recognition of net actuarial loss and prior service cost are included in the computation of net periodic benefit cost, which is a component of other, net in the accompanying consolidated statements of comprehensive earnings. |
Supplemental Information to S_3
Supplemental Information to Statements of Cash Flows (Schedule Of Supplemental Information To Statements Of Cash Flows) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Changes in assets and liabilities, net: | ||||
Accounts receivable | $ 81 | $ 98 | $ (15) | $ 248 |
Other current assets | (84) | (12) | (107) | 4 |
Other long-term assets | (16) | (13) | 33 | 18 |
Accounts payable and revenues and royalties payable | 42 | (65) | 185 | (230) |
Other current liabilities | (224) | (138) | (108) | (141) |
Other long-term liabilities | 0 | (10) | (19) | (27) |
Total | (201) | (140) | (31) | (128) |
Supplementary cash flow data: | ||||
Interest paid | 112 | 88 | 175 | 189 |
Income taxes paid | $ 388 | $ 259 | $ 384 | $ 259 |
Supplemental Information to S_4
Supplemental Information to Statements of Cash Flows (Narrative) (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Supplemental Cash Flow [Line Items] | ||
Other property and equipment | $ 2,386 | $ 2,289 |
Water JV [Member] | ||
Supplemental Cash Flow [Line Items] | ||
Other property and equipment | $ 150 |
Accounts Receivable (Schedule O
Accounts Receivable (Schedule Of Components Of Accounts Receivable) (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Joint interest billings | $ 253 | $ 251 |
Other | 32 | 22 |
Gross accounts receivable | 1,596 | 1,580 |
Allowance for doubtful accounts | (7) | (7) |
Net accounts receivable | 1,589 | 1,573 |
Oil, Gas and NGL Sales [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Gross accounts receivable | 941 | 965 |
Marketing and Midstream Revenues [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Gross accounts receivable | $ 370 | $ 342 |
Property, Plant and Equipment_2
Property, Plant and Equipment (Summary of Property and Equipment, net) (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 | |
Property and equipment: | |||
Proved | $ 48,402 | $ 46,659 | |
Unproved and properties under development | 1,370 | 1,279 | |
Total oil and gas | 49,772 | 47,938 | |
Less accumulated DD&A | (31,556) | (30,113) | |
Oil and gas property and equipment, net | 18,216 | 17,825 | |
Other property and equipment | 2,386 | 2,289 | |
Less accumulated DD&A | (817) | (786) | |
Other property and equipment, net | [1] | 1,569 | 1,503 |
Total property and equipment, net | $ 19,785 | $ 19,328 | |
[1] $ 159 million and $ 136 million related to CDM in 2024 and 2023, respectively. |
Property, Plant and Equipment_3
Property, Plant and Equipment (Summary of Property and Equipment, net) (Parenthetical) (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 | |
Property Plant And Equipment [Line Items] | |||
Other property and equipment, net | [1] | $ 1,569 | $ 1,503 |
CDM [Member] | |||
Property Plant And Equipment [Line Items] | |||
Other property and equipment, net | $ 159 | $ 136 | |
[1] $ 159 million and $ 136 million related to CDM in 2024 and 2023, respectively. |
Debt And Related Expenses (Sche
Debt And Related Expenses (Schedule Of Debt Instruments and Balances) (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2024 | Dec. 31, 2023 | |
Debt Instrument [Line Items] | ||
Net premium on debentures and notes | $ 49 | $ 64 |
Debt issuance costs | (30) | (30) |
Total debt | 6,140 | 6,155 |
Less amount classified as short-term debt | 475 | 483 |
Long-term debt | 5,665 | 5,672 |
5.25% due September 15, 2024 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | $ 472 | $ 472 |
Charge on early retirement of debt, cash retirement costs | 5.25% | 5.25% |
Debt, maturity date | Sep. 15, 2024 | |
5.85% due December 15, 2025 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | $ 485 | $ 485 |
Charge on early retirement of debt, cash retirement costs | 5.85% | 5.85% |
Debt, maturity date | Dec. 15, 2025 | |
7.50% due September 15, 2027 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | $ 73 | $ 73 |
Charge on early retirement of debt, cash retirement costs | 7.50% | 7.50% |
Debt, maturity date | Sep. 15, 2027 | |
5.25% due October 15, 2027 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | $ 390 | $ 390 |
Charge on early retirement of debt, cash retirement costs | 5.25% | 5.25% |
Debt, maturity date | Oct. 15, 2027 | |
5.875% due June 15, 2028 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | $ 325 | $ 325 |
Charge on early retirement of debt, cash retirement costs | 5.875% | 5.875% |
Debt, maturity date | Jun. 15, 2028 | |
4.50% due January 15, 2030 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | $ 585 | $ 585 |
Charge on early retirement of debt, cash retirement costs | 4.50% | 4.50% |
Debt, maturity date | Jan. 15, 2030 | |
7.875% due September 30, 2031 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | $ 675 | $ 675 |
Charge on early retirement of debt, cash retirement costs | 7.875% | 7.875% |
Debt, maturity date | Sep. 30, 2031 | |
7.95% due April 15, 2032 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | $ 366 | $ 366 |
Charge on early retirement of debt, cash retirement costs | 7.95% | 7.95% |
Debt, maturity date | Apr. 15, 2032 | |
5.60% due July 15, 2041 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | $ 1,250 | $ 1,250 |
Charge on early retirement of debt, cash retirement costs | 5.60% | 5.60% |
Debt, maturity date | Jul. 15, 2041 | |
4.75% due May 15, 2042 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | $ 750 | $ 750 |
Charge on early retirement of debt, cash retirement costs | 4.75% | 4.75% |
Debt, maturity date | May 15, 2042 | |
5.00% due June 15, 2045 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | $ 750 | $ 750 |
Charge on early retirement of debt, cash retirement costs | 5% | 5% |
Debt, maturity date | Jun. 15, 2045 |
Debt And Related Expenses (Narr
Debt And Related Expenses (Narrative) (Details) $ in Millions | 6 Months Ended | ||
Aug. 01, 2023 USD ($) | Jun. 30, 2024 USD ($) | Dec. 31, 2023 USD ($) | |
Debt Instrument [Line Items] | |||
Maturity date extension | In the first quarter of 2024, Devon exercised its option to extend the 2023 Senior Credit Facility maturity date from March 24, 2028 to March 24, 2029 | ||
Senior Credit Facility [Member] | |||
Debt Instrument [Line Items] | |||
Credit facility, borrowing capacity | $ 3,000 | ||
Outstanding credit facility borrowings | $ 0 | ||
Debt-to-capitalization ratio | 0.212 | ||
Outstanding letters of credit | $ 3 | ||
Senior Credit Facility [Member] | Maximum [Member] | |||
Debt Instrument [Line Items] | |||
Debt-to-capitalization ratio | 0.65 | ||
8.25% due August 1, 2023 [Member] | Senior Notes [Member] | |||
Debt Instrument [Line Items] | |||
Repayments of long-term debt | $ 242 | ||
Debt interest rate, stated percentage | 8.25% |
Debt And Related Expenses (Sc_2
Debt And Related Expenses (Schedule of Net Financing Cost Components) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Debt Disclosure [Abstract] | ||||
Interest based on debt outstanding | $ 88 | $ 96 | $ 175 | $ 189 |
Interest income | (14) | (15) | (27) | (32) |
Other | 2 | (3) | 4 | (7) |
Total net financing costs | $ 76 | $ 78 | $ 152 | $ 150 |
Leases (Schedule of Right-of-us
Leases (Schedule of Right-of-use Assets and Lease Liabilities) (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 | |
Leases [Abstract] | |||
Right-of-use assets, finance lease | $ 241 | $ 246 | |
Finance lease liabilities: | |||
Current lease liabilities, finance lease | [1] | 21 | 21 |
Long-term lease liabilities, finance lease | 285 | 286 | |
Total lease liabilities, finance lease | [2] | 306 | 307 |
Right-of-use assets, operating lease | 56 | 21 | |
Operating lease liabilities: | |||
Current lease liabilities, operating lease | [1] | 26 | 12 |
Long-term lease liabilities, operating lease | 30 | 9 | |
Total lease liabilities, operating lease | [2] | 56 | 21 |
Right-of-use assets | 297 | 267 | |
Lease liabilities: | |||
Current lease liabilities | [1] | 47 | 33 |
Long-term lease liabilities | 315 | 295 | |
Total lease liabilities | [2] | $ 362 | $ 328 |
[1] Current lease liabilities are included in other current liabilities on the consolidated balance sheets Devon has entered into certain leases of equipment related to the exploration, development and production of oil and gas that had terms not yet commenced as of June 30, 2024 and are therefore excluded from the amounts shown above. |
Asset Retirement Obligations (S
Asset Retirement Obligations (Summary of Changes in Asset Retirement Obligations) (Details) - USD ($) $ in Millions | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Asset Retirement Obligation Disclosure [Abstract] | |||
Asset retirement obligations as of beginning of period | $ 665 | $ 529 | |
Liabilities incurred | 15 | 14 | |
Liabilities settled and divested | (16) | (18) | |
Revision of estimated obligation | 35 | 27 | |
Accretion expense on discounted obligation | 18 | 14 | |
Asset retirement obligations as of end of period | 717 | 566 | |
Less current portion | 26 | 18 | |
Asset retirement obligations, long-term | $ 691 | $ 548 | $ 643 |
Asset Retirement Obligations (N
Asset Retirement Obligations (Narrative) (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Asset Acquisition [Line Items] | ||
Revision of estimated obligation | $ 35 | $ 27 |
Stockholders' Equity (Narrative
Stockholders' Equity (Narrative) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | ||||||
Jul. 31, 2024 | Jun. 30, 2024 | Mar. 31, 2024 | Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Aug. 31, 2024 | |
Stockholders Equity [Abstract] | ||||||||
Dividends rate per share | $ 0.35 | $ 0.44 | $ 0.72 | $ 0.89 | ||||
Fixed Dividend [Member] | ||||||||
Stockholders Equity [Abstract] | ||||||||
Dividends rate per share | $ 0.22 | $ 0.2 | ||||||
Subsequent Event | ||||||||
Stockholders Equity [Abstract] | ||||||||
Dividend payable, per share | $ 0.44 | |||||||
Dividend payable amount | $ 276 | |||||||
Dividends payable, year | 2024 | |||||||
Subsequent Event | Fixed Dividend [Member] | ||||||||
Stockholders Equity [Abstract] | ||||||||
Dividend payable, per share | $ 0.22 | |||||||
Subsequent Event | Variable Dividend [Member] | ||||||||
Stockholders Equity [Abstract] | ||||||||
Dividend payable, per share | $ 0.22 | |||||||
Share Repurchase Program [Member] | Subsequent Event | Maximum [Member] | ||||||||
Stockholders Equity [Abstract] | ||||||||
Repurchase of common stock | $ 5,000 | |||||||
Share Repurchase Program [Member] | Subsequent Event | Minimum [Member] | ||||||||
Stockholders Equity [Abstract] | ||||||||
Repurchase of common stock | $ 3,000 | |||||||
Five Billion Dollar Share Repurchase Program Open [Member] | ||||||||
Stockholders Equity [Abstract] | ||||||||
Repurchase of common stock | $ 5,000 | $ 5,000 | ||||||
Five Billion Dollar Share Repurchase Program Open [Member] | Subsequent Event | Maximum [Member] | ||||||||
Stockholders Equity [Abstract] | ||||||||
Repurchase program expiration date | Jun. 30, 2026 | |||||||
Five Billion Dollar Share Repurchase Program Open [Member] | Subsequent Event | Minimum [Member] | ||||||||
Stockholders Equity [Abstract] | ||||||||
Repurchase program expiration date | Dec. 31, 2024 |
Stockholders' Equity (Summary o
Stockholders' Equity (Summary of Purchases of Common Stock) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||||
Jun. 30, 2024 | Mar. 31, 2024 | Dec. 31, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2024 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
5.0 Billion Dollar Share Repurchase Program Closed [Member] | |||||||||
Stockholders Equity [Line Items] | |||||||||
Total Number of Shares Purchased | 5,188 | 4,428 | 5,465 | 3,795 | 10,090 | 9,616 | 19,350 | 11,708 | 13,983 |
Dollar Value of Shares Purchased | $ 256 | $ 193 | $ 247 | $ 200 | $ 545 | $ 449 | $ 992 | $ 718 | $ 589 |
Average Price Paid per Share | $ 49.4 | $ 43.47 | $ 45.17 | $ 52.7 | $ 53.96 | $ 46.67 | $ 51.23 | $ 61.36 | $ 42.15 |
Share Repurchase Program Open [Member] | |||||||||
Stockholders Equity [Line Items] | |||||||||
Total Number of Shares Purchased | 54,657 | ||||||||
Dollar Value of Shares Purchased | $ 2,748 | ||||||||
Average Price Paid per Share | $ 50.28 |
Stockholders' Equity (Summary_2
Stockholders' Equity (Summary Of Dividends Paid On Common Stock) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2024 | Mar. 31, 2024 | Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Stockholders Equity [Line Items] | ||||||
Dividends amount | $ 223 | $ 299 | $ 462 | $ 596 | ||
Dividends rate per share | $ 0.35 | $ 0.44 | $ 0.72 | $ 0.89 | ||
Total year to date | $ 522 | $ 1,058 | $ 522 | $ 1,058 | ||
Fixed Dividend [Member] | ||||||
Stockholders Equity [Line Items] | ||||||
Dividends amount | 138 | $ 143 | 128 | $ 133 | ||
Dividends rate per share | $ 0.22 | $ 0.2 | ||||
Total year to date | 281 | 261 | $ 281 | $ 261 | ||
Variable Dividend [Member] | ||||||
Stockholders Equity [Line Items] | ||||||
Dividends amount | 85 | $ 156 | 334 | $ 463 | ||
Total year to date | $ 241 | $ 797 | $ 241 | $ 797 |
Commitments and Contingencies (
Commitments and Contingencies (Narrative) (Details) $ in Millions | Jun. 30, 2024 USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Other accrued liabilities current | $ 35 |
Fair Value Measurements (Schedu
Fair Value Measurements (Schedule Of Carrying Value And Fair Value Measurement Information For Financial Assets And Liabilities) (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Carrying Amount [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | $ 487 | $ 306 |
Debt | (6,140) | (6,155) |
Contingent earnout payments | 20 | 55 |
Carrying Amount [Member] | Commodity Derivatives [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives, assets | 31 | 208 |
Derivatives, liabilities | (31) | (9) |
Total Fair Value [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 487 | 306 |
Debt | (5,932) | (6,090) |
Contingent earnout payments | 20 | 55 |
Total Fair Value [Member] | Commodity Derivatives [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives, assets | 31 | 208 |
Derivatives, liabilities | (31) | (9) |
Level 1 Inputs [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 487 | 306 |
Level 2 Inputs [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt | (5,932) | (6,090) |
Level 2 Inputs [Member] | Commodity Derivatives [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives, assets | 31 | 208 |
Derivatives, liabilities | (31) | (9) |
Level 3 Inputs [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Contingent earnout payments | $ 20 | $ 55 |