Devon Energy (DVN) 8-K Devon Energy Reports Second-Quarter 2020 Financial and Operational Results

Exhibit 99.3

Devon Energy Second-Quarter 2020

Supplemental Tables

TABLE OF CONTENTS:	PAGE:
Income Statement		2
Cash Flow Statement		3
Balance Sheet		4
Production by Asset		5
Capital and Well Activity by Asset		6
Realized Price by Asset		7
Per-Unit Cash Margin by Asset		8
Non-GAAP Core Earnings (Loss)		9
Non-GAAP EBITDAX, Net Debt and Net Debt-to-EBITDAX		10

CONSOLIDATED STATEMENTS OF EARNINGS
(in millions, except per share amounts)	2020						2019
	Quarter 2			Quarter 1			Quarter 4			Quarter 3			Quarter 2
Oil, gas and NGL sales	$	424		$	807		$	1,035		$	919		$	936
Oil, gas and NGL derivatives (1)		(361	)		720			(116	)		127			140
Marketing and midstream revenues		331			560			670			700			730
Total revenues		394			2,087			1,589			1,746			1,806
Production expenses (2)		263			318			324			294			296
Exploration expenses		12			112			29			18			7
Marketing and midstream expenses		339			578			665			684			713
Depreciation, depletion and amortization		299			401			382			381			374
Asset impairments		—			2,666			—			—			—
Asset dispositions		—			—			—			(1	)		(2	)
General and administrative expenses		79			102			119			107			114
Financing costs, net		69			65			64			60			66
Restructuring and transaction costs		—			—			11			10			12
Other expenses		13			(48	)		16			3			7
Total expenses		1,074			4,194			1,610			1,556			1,587
Earnings (loss) from continuing operations before income taxes		(680	)		(2,107	)		(21	)		190			219
Income tax expense (benefit)		(3	)		(417	)		(33	)		54			68
Net earnings (loss) from continuing operations		(677	)		(1,690	)		12			136			151
Net earnings (loss) from discontinued operations, net of taxes		9			(125	)		(652	)		(27	)		344
Net earnings (loss)		(668	)		(1,815	)		(640	)		109			495
Net earnings attributable to noncontrolling interests		2			1			2			—			—
Net earnings (loss) attributable to Devon	$	(670	)	$	(1,816	)	$	(642	)	$	109		$	495
Basic net earnings (loss) per share:
Continuing operations	$	(1.80	)	$	(4.48	)	$	0.03		$	0.34		$	0.37
Discontinued operations		0.02			(0.34	)		(1.73	)		(0.07	)		0.83
Basic net earnings (loss) per share	$	(1.78	)	$	(4.82	)	$	(1.70	)	$	0.27		$	1.20
Diluted net earnings (loss) per share:
Continuing operations	$	(1.80	)	$	(4.48	)	$	0.03		$	0.34		$	0.37
Discontinued operations		0.02			(0.34	)		(1.73	)		(0.07	)		0.82
Diluted net earnings (loss) per share	$	(1.78	)	$	(4.82	)	$	(1.70	)	$	0.27		$	1.19
Weighted average common shares outstanding:
Basic		383			383			383			397			415
Diluted		383			383			385			399			417

(1) OIL, GAS AND NGL DERIVATIVES
(in millions)	2020					2019
	Quarter 2			Quarter 1		Quarter 4			Quarter 3		Quarter 2
Derivative cash settlements	$	232		$	101	$	42		$	71	$	23
Derivative valuation changes		(593	)		619		(158	)		56		117
Oil, gas and NGL derivatives	$	(361	)	$	720	$	(116	)	$	127	$	140

(2) PRODUCTION EXPENSES
(in millions)	2020				2019
	Quarter 2		Quarter 1		Quarter 4		Quarter 3		Quarter 2
Lease operating expense	$	108	$	126	$	120	$	118	$	114
Gathering, processing & transportation		123		130		131		112		111
Production taxes		25		56		69		58		64
Property taxes		7		6		4		6		7
Production expenses	$	263	$	318	$	324	$	294	$	296

2

CONSOLIDATED STATEMENTS OF CASH FLOWS
(in millions)	2020						2019
	Quarter 2			Quarter 1			Quarter 4			Quarter 3			Quarter 2
Cash flows from operating activities:
Net earnings (loss)	$	(668	)	$	(1,815	)	$	(640	)	$	109		$	495
Adjustments to reconcile net earnings (loss) to net cash from operating activities:
Net (earnings) loss from discontinued operations, net of income taxes		(9	)		125			652			27			(344	)
Depreciation, depletion and amortization		299			401			382			381			374
Asset impairments		—			2,666			—			—			—
Leasehold impairments		3			110			3			13			1
Accretion on discounted liabilities		8			8			8			8			8
Total (gains) losses on commodity derivatives		361			(720	)		116			(127	)		(140	)
Cash settlements on commodity derivatives		232			101			41			71			23
Gains on asset dispositions		—			—			—			(1	)		(2	)
Deferred income tax expense (benefit)		—			(311	)		(27	)		52			65
Share-based compensation		19			20			23			23			25
Other		4			—			2			3			2
Changes in assets and liabilities, net		(99	)		(56	)		18			36			(75	)
Net cash from operating activities - continuing operations		150			529			578			595			432
Cash flows from investing activities:
Capital expenditures		(307	)		(425	)		(408	)		(526	)		(486	)
Acquisitions of property and equipment		(1	)		(4	)		(3	)		(5	)		(13	)
Divestitures of property and equipment		3			25			43			9			28
Net cash from investing activities - continuing operations		(305	)		(404	)		(368	)		(522	)		(471	)
Cash flows from financing activities:
Repayments of long-term debt		—			—			—			—			—
Repurchases of common stock		—			(38	)		(103	)		(560	)		(187	)
Dividends paid on common stock		(42	)		(34	)		(34	)		(35	)		(37	)
Contributions from noncontrolling interests		6			5			116			—			—
Distributions to noncontrolling interest		(3	)		(3	)		—			—			—
Shares exchanged for tax withholdings and other		—			(17	)		(2	)		(1	)		(3	)
Net cash from financing activities - continuing operations		(39	)		(87	)		(23	)		(596	)		(227	)
Net change in cash, cash equivalents and restricted cash of continuing operations		(194	)		38			187			(523	)		(266	)
Cash flows from discontinued operations:
Operating activities		(43	)		(131	)		(9	)		(94	)		191
Investing activities		171			(1	)		—			(5	)		2,536
Financing activities		—			—			—			(1,572	)		—
Effect of exchange rate changes on cash		8			(23	)		10			(3	)		37
Net change in cash, cash equivalents and restricted cash of discontinued operations		136			(155	)		1			(1,674	)		2,764
Net change in cash, cash equivalents and restricted cash		(58	)		(117	)		188			(2,197	)		2,498
Cash, cash equivalents and restricted cash at beginning of period		1,727			1,844			1,656			3,853			1,355
Cash, cash equivalents and restricted cash at end of period	$	1,669		$	1,727		$	1,844		$	1,656		$	3,853
Reconciliation of cash, cash equivalents and restricted cash:
Cash and cash equivalents	$	1,474		$	1,527		$	1,464		$	1,375		$	3,470
Cash restricted for discontinued operations		195			200			380			280			370
Restricted cash included in other current assets		—			—			—			1			13
Total cash, cash equivalents and restricted cash	$	1,669		$	1,727		$	1,844		$	1,656		$	3,853

3

CONSOLIDATED BALANCE SHEETS
(in millions)	June 30,			December 31,
	2020			2019
Current assets:
Cash and cash equivalents	$	1,474		$	1,464
Cash restricted for discontinued operations		195			380
Accounts receivable		515			832
Current assets associated with discontinued operations		748			896
Other current assets		446			279
Total current assets		3,378			3,851
Oil and gas property and equipment, based on successful efforts accounting, net		4,673			7,558
Other property and equipment, net		1,013			1,035
Total property and equipment, net		5,686			8,593
Goodwill		753			753
Right-of-use assets		231			243
Other long-term assets		227			196
Long-term assets associated with discontinued operations		82			81
Total assets	$	10,357		$	13,717
Current liabilities:
Accounts payable	$	309		$	428
Revenues and royalties payable		473			730
Current liabilities associated with discontinued operations		441			459
Other current liabilities		229			310
Total current liabilities		1,452			1,927
Long-term debt		4,296			4,294
Lease liabilities		245			244
Asset retirement obligations		391			380
Other long-term liabilities		458			426
Long-term liabilities associated with discontinued operations		162			185
Deferred income taxes		—			341
Stockholders’ equity:
Common stock		38			38
Additional paid-in capital		2,720			2,735
Retained earnings		586			3,148
Accumulated other comprehensive loss		(117	)		(119	)
Total stockholders’ equity attributable to Devon		3,227			5,802
Noncontrolling interests		126			118
Total equity		3,353			5,920
Total liabilities and equity	$	10,357		$	13,717
Common shares outstanding		383			382

4

PRODUCTION TREND
	2020				2019
	Quarter 2		Quarter 1		Quarter 4		Quarter 3		Quarter 2
Oil (MBbls/d)
Delaware Basin		79		84		84		70		67
Powder River Basin		18		21		20		18		15
Eagle Ford		27		26		23		22		23
Anadarko Basin		21		24		27		32		31
Other		8		8		9		9		8
Total		153		163		163		151		144
Natural gas liquids (MBbls/d)
Delaware Basin		29		37		32		28		27
Powder River Basin		2		3		2		2		2
Eagle Ford		12		9		9		11		12
Anadarko Basin		25		30		30		37		40
Other		1		1		1		1		1
Total		69		80		74		79		82
Gas (MMcf/d)
Delaware Basin		241		244		234		167		158
Powder River Basin		20		29		28		28		22
Eagle Ford		87		86		76		75		81
Anadarko Basin		262		272		295		317		313
Other		4		3		4		4		4
Total		614		634		637		591		578
Total oil equivalent (MBoe/d)
Delaware Basin		149		162		154		127		120
Powder River Basin		24		29		27		25		21
Eagle Ford		53		50		45		45		49
Anadarko Basin		90		98		107		121		124
Other		9		9		10		10		10
Total		325		348		343		328		324

	2020				2019
	Quarter 2		Quarter 1		Quarter 4		Quarter 3		Quarter 2
Barnett divest assets (discontinued operations)
Oil (MBbls/d)		—		—		—		—		1
Natural gas liquids (MBbls/d)		28		31		30		30		30
Gas (MMcf/d)		401		408		408		414		420
Total oil equivalent (MBoe/d)		95		99		98		100		100

5

UPSTREAM CAPITAL EXPENDITURES
(in millions)	2020				2019
	Quarter 2		Quarter 1		Quarter 4		Quarter 3		Quarter 2
Delaware Basin	$	148	$	220	$	170	$	262	$	235
Powder River Basin		39		90		89		89		87
Eagle Ford		10		70		65		90		53
Anadarko Basin		3		4		38		67		94
Other		3		7		12		12		12
Total upstream capital	$	203	$	391	$	374	$	520	$	481

GROSS OPERATED SPUDS

	2020				2019
	Quarter 2		Quarter 1		Quarter 4		Quarter 3		Quarter 2
Delaware Basin		27		38		24		38		23
Powder River Basin		—		12		19		14		17
Eagle Ford		—		10		25		18		31
Anadarko Basin		—		—		—		4		16
Total		27		60		68		74		87

GROSS OPERATED WELLS TIED-IN    

	2020				2019
	Quarter 2		Quarter 1		Quarter 4		Quarter 3		Quarter 2
Delaware Basin		22		32		36		34		28
Powder River Basin		4		14		19		18		6
Eagle Ford		13		30		21		—		9
Anadarko Basin		—		4		9		16		21
Total		39		80		85		68		64

NET OPERATED WELLS TIED-IN    

	2020				2019
	Quarter 2		Quarter 1		Quarter 4		Quarter 3		Quarter 2
Delaware Basin		18		25		25		30		24
Powder River Basin		4		10		15		13		5
Eagle Ford		7		14		11		—		4
Anadarko Basin		—		3		7		7		14
Total		29		52		58		50		47

AVERAGE LATERAL LENGTH    

(based on wells tied-in)	2020						2019
	Quarter 2			Quarter 1			Quarter 4			Quarter 3			Quarter 2
Delaware Basin		9,100	'		8,000	'		8,000	'		9,700	'		7,500	'
Powder River Basin		8,100	'		9,100	'		9,700	'		9,500	'		9,500	'
Eagle Ford		5,900	'		5,400	'		6,600	'		N/A			6,000	'
Anadarko Basin		—			9,800	'		11,200	'		9,600	'		9,000	'
Total		7,900	'		7,300	'		8,400	'		9,600	'		8,000	'

6

BENCHMARK PRICES
(average prices)	2020				2019
	Quarter 2		Quarter 1		Quarter 4		Quarter 3		Quarter 2
Oil ($/Bbl) - West Texas Intermediate (Cushing)	$	28.42	$	46.44	$	57.02	$	56.34	$	59.85
Natural Gas ($/Mcf) - Henry Hub	$	1.71	$	1.95	$	2.50	$	2.23	$	2.64
NGL ($/Bbl) - Mont Belvieu Blended	$	12.57	$	14.39	$	18.69	$	16.18	$	19.05

REALIZED PRICES
	2020				2019
	Quarter 2		Quarter 1		Quarter 4		Quarter 3		Quarter 2
Oil (Per Bbl)
Delaware Basin	$	22.70	$	45.18	$	56.23	$	53.85	$	55.54
Powder River Basin		24.03		41.14		52.02		52.50		56.79
Eagle Ford		15.30		44.90		55.11		57.77		61.60
Anadarko Basin		19.52		45.32		55.71		54.47		57.67
Other		25.45		44.53		55.14		54.02		55.31
Realized price without hedges		21.25		44.59		55.41		54.40		57.11
Cash settlements		15.25		5.14		1.48		2.18		(0.41	)
Realized price, including cash settlements	$	36.50	$	49.73	$	56.89	$	56.58	$	56.70
Natural gas liquids (Per Bbl)
Delaware Basin	$	7.94	$	8.36	$	13.30	$	10.27	$	13.77
Powder River Basin		10.07		15.86		17.36		15.01		17.74
Eagle Ford		10.02		14.77		18.84		13.77		15.84
Anadarko Basin		9.31		10.90		17.47		12.61		15.55
Other		10.19		15.82		13.62		12.76		10.69
Realized price without hedges		8.89		10.40		15.79		12.02		15.00
Cash settlements		0.51		0.61		1.75		2.55		1.40
Realized price, including cash settlements	$	9.40	$	11.01	$	17.54	$	14.57	$	16.40
Gas (Per Mcf)
Delaware Basin	$	1.05	$	0.58	$	1.22	$	0.90	$	(0.05	)
Powder River Basin		1.80		1.71		2.51		1.96		2.16
Eagle Ford		1.79		2.05		2.52		2.26		2.56
Anadarko Basin		1.31		1.45		1.81		1.54		1.74
Other		1.32		1.69		0.43		2.18		1.72
Realized price without hedges		1.29		1.21		1.70		1.47		1.38
Cash settlements		0.28		0.36		0.13		0.41		0.34
Realized price, including cash settlements	$	1.57	$	1.57	$	1.83	$	1.88	$	1.72
Total oil equivalent (Per Boe)
Delaware Basin	$	15.39	$	26.19	$	35.05	$	33.48	$	33.94
Powder River Basin		20.80		33.65		42.45		41.20		45.44
Eagle Ford		12.90		29.94		36.51		35.10		37.50
Anadarko Basin		10.98		18.14		24.28		22.07		23.96
Other		22.95		39.15		46.49		46.08		46.70
Realized price without hedges		14.37		25.43		32.82		30.47		31.79
Cash settlements		7.83		3.20		1.32		2.34		0.79
Realized price, including cash settlements	$	22.20	$	28.63	$	34.14	$	32.81	$	32.58

7

BENCHMARK PRICES
(average prices)	2020				2019
	Quarter 2		Quarter 1		Quarter 4		Quarter 3		Quarter 2
Oil ($/Bbl) - West Texas Intermediate (Cushing)	$	28.42	$	46.44	$	57.02	$	56.34	$	59.85
Natural Gas ($/Mcf) - Henry Hub	$	1.71	$	1.95	$	2.50	$	2.23	$	2.64
NGL ($/Bbl) - Mont Belvieu Blended	$	12.57	$	14.39	$	18.69	$	16.18	$	19.05

FIELD-LEVEL CASH MARGIN (per Boe)
	2020						2019
	Quarter 2			Quarter 1			Quarter 4			Quarter 3			Quarter 2
Delaware Basin
Realized price	$	15.39		$	26.19		$	35.05		$	33.48		$	33.94
Lease operating expenses		(3.56	)		(3.61	)		(3.36	)		(4.17	)		(4.33	)
Gathering, processing & transportation		(2.88	)		(2.71	)		(2.59	)		(2.20	)		(2.31	)
Production & property taxes		(1.14	)		(2.15	)		(2.80	)		(2.69	)		(2.84	)
Field-level cash margin	$	7.81		$	17.72		$	26.30		$	24.42		$	24.46
Powder River Basin
Realized price	$	20.80		$	33.65		$	42.45		$	41.20		$	45.44
Lease operating expenses		(6.60	)		(6.65	)		(5.00	)		(7.28	)		(6.95	)
Gathering, processing & transportation		(2.71	)		(2.32	)		(3.40	)		(2.07	)		(1.71	)
Production & property taxes		(2.40	)		(4.20	)		(5.19	)		(4.73	)		(4.99	)
Field-level cash margin	$	9.09		$	20.48		$	28.86		$	27.12		$	31.79
Eagle Ford
Realized price	$	12.90		$	29.94		$	36.51		$	35.10		$	37.50
Lease operating expenses		(2.59	)		(2.93	)		(4.52	)		(3.20	)		(2.85	)
Gathering, processing & transportation		(4.96	)		(5.96	)		(6.52	)		(5.93	)		(5.59	)
Production & property taxes		(0.85	)		(1.85	)		(1.75	)		(1.95	)		(2.43	)
Field-level cash margin	$	4.50		$	19.20		$	23.72		$	24.02		$	26.63
Anadarko Basin
Realized price	$	10.98		$	18.14		$	24.28		$	22.07		$	23.96
Lease operating expenses		(2.42	)		(2.79	)		(2.24	)		(2.08	)		(1.84	)
Gathering, processing & transportation		(6.57	)		(6.36	)		(5.98	)		(5.05	)		(5.10	)
Production & property taxes		(0.32	)		(0.77	)		(1.00	)		(0.86	)		(1.25	)
Field-level cash margin	$	1.67		$	8.22		$	15.06		$	14.08		$	15.77
Other
Realized price	$	22.95		$	39.15		$	46.49		$	46.08		$	46.70
Lease operating expenses		(17.40	)		(18.95	)		(20.04	)		(17.22	)		(22.29	)
Gathering, processing & transportation		(0.34	)		(0.31	)		(0.34	)		(0.45	)		(0.22	)
Production & property taxes		(5.11	)		(4.34	)		(3.78	)		(4.50	)		(5.26	)
Field-level cash margin	$	0.10		$	15.55		$	22.33		$	23.91		$	18.93
Devon - Total
Realized price	$	14.37		$	25.43		$	32.82		$	30.47		$	31.79
Lease operating expenses		(3.69	)		(3.96	)		(3.79	)		(3.90	)		(3.85	)
Gathering, processing & transportation		(4.16	)		(4.11	)		(4.16	)		(3.71	)		(3.78	)
Production & property taxes		(1.07	)		(1.95	)		(2.32	)		(2.13	)		(2.38	)
Field-level cash margin	$	5.45		$	15.41		$	22.55		$	20.73		$	21.78

8

NON-GAAP FINANCIAL MEASURES

(all monetary values in millions, except per share amounts)

The earnings materials include non-GAAP financial measures. These non-GAAP measures are not alternatives to GAAP measures, and you should not consider these non-GAAP measures in isolation or as a substitute for analysis of our results as reported under GAAP. Below is additional disclosure regarding each of the non-GAAP measures used in the earnings materials, including reconciliations to their most directly comparable GAAP measure. Additional information regarding our non-GAAP measures can also be found in our corresponding periodic report filed with the SEC.

CORE EARNINGS (LOSS)

Devon’s reported net earnings (loss) include items of income and expense that are typically excluded by securities analysts in their published estimates of the company’s financial results. Accordingly, the company also uses the measures of core earnings (loss) and core earnings (loss) per share attributable to Devon. Devon believes these non-GAAP measures facilitate comparisons of its performance to earnings estimates published by securities analysts. Devon also believes these non-GAAP measures can facilitate comparisons of its performance between periods and to the performance of its peers. The following table summarizes the effects of these items on second-quarter 2020 earnings.

	Quarter Ended June 30, 2020
	Before-tax			After-tax			After Noncontrolling Interests			Per Diluted Share
Continuing Operations
Loss (GAAP)	$	(680	)	$	(677	)	$	(679	)	$	(1.80	)
Adjustments:
Asset and exploration impairments		4			3			3			0.01
Deferred tax asset valuation allowance		—			149			149			0.39
Fair value changes in financial instruments		593			459			459			1.22
Core loss (Non-GAAP)	$	(83	)	$	(66	)	$	(68	)	$	(0.18	)
Discontinued Operations
Earnings (GAAP)	$	9		$	9		$	9		$	0.02
Adjustments:
Asset dispositions		(2	)		(1	)		(1	)		(0.00	)
Fair value changes in foreign currency and other		(5	)		(6	)		(6	)		(0.02	)
Core earnings (Non-GAAP)	$	2		$	2		$	2		$	0.00
Total
Loss (GAAP)	$	(671	)	$	(668	)	$	(670	)	$	(1.78	)
Adjustments:
Continuing Operations		597			611			611			1.62
Discontinued Operations		(7	)		(7	)		(7	)		(0.02	)
Core loss (Non-GAAP)	$	(81	)	$	(64	)	$	(66	)	$	(0.18	)

9

EBITDAX

Devon believes EBITDAX provides information useful in assessing operating and financial performance across periods. Devon computes EBITDAX as net earnings from continuing operations before income tax expense; financing costs, net; exploration expenses; depreciation, depletion and amortization; asset impairments; asset disposition gains and losses; non-cash share-based compensation; non-cash valuation changes for derivatives and financial instruments; restructuring and transaction costs; accretion on discounted liabilities; and other items not related to normal operations. EBITDAX as defined by Devon may not be comparable to similarly titled measures used by other companies and should be considered in conjunction with net earnings from continuing operations.

	Q2 ’20			Q1 ’20			Q4’19			Q3’19			TTM			Q2’19
Net earnings (loss) (GAAP)	$	(668	)	$	(1,815	)	$	(640	)	$	109		$	(3,014	)	$	495
Net (earnings) loss from discontinued operations, net of tax		(9	)		125			652			27			795			(344	)
Financing costs, net		69			65			64			60			258			66
Income tax expense (benefit)		(3	)		(417	)		(33	)		54			(399	)		68
Exploration expenses		12			112			29			18			171			7
Depreciation, depletion and amortization		299			401			382			381			1,463			374
Asset impairments		—			2,666			—			—			2,666			—
Asset dispositions		—			—			—			(1	)		(1	)		(2	)
Share-based compensation		19			20			19			20			78			21
Derivative and financial instrument non-cash valuation changes		593			(619	)		159			(57	)		76			(117	)
Restructuring and transaction costs		—			—			11			10			21			12
Accretion on discounted liabilities and other		13			(48	)		14			5			(16	)		8
EBITDAX (Non-GAAP)	$	325		$	490		$	657		$	626		$	2,098		$	588

NET DEBT

Devon defines net debt as debt less cash, cash equivalents and cash restricted for discontinued operations. Devon believes that netting these sources of cash against debt provides a clearer picture of the future demands on cash from Devon to repay debt.

	June 30, 2020
Total debt (GAAP)	$	4,296
Less:
Cash and cash equivalents		(1,474	)
Cash restricted for discontinued operations		(195	)
Net debt (Non-GAAP)	$	2,627

NET DEBT-TO-EBITDAX

Devon defines net debt-to-EBITDAX as net debt divided by trailing twelve months EBITDAX.

	June 30, 2020
Net debt (Non-GAAP)	$	2,627
EBITDAX (trailing 12 months) (Non-GAAP)		2,098
Net debt-to-EBITDAX (Non-GAAP)		1.3

10

GUIDANCE

THIRD-QUARTER AND FULL-YEAR 2020

PRODUCTION GUIDANCE    

	Quarter 3				Full Year
	Low		High		Low		High
Oil (MBbls/d)		138		143		148		152
Natural gas liquids (MBbls/d)		73		78		73		77
Gas (MMcf/d)		540		580		560		610
Total oil equivalent (MBoe/d)		301		318		314		331

PRICE REALIZATIONS GUIDANCE    

	Quarter 3						Full Year
	Low			High			Low			High
Oil - % of WTI		90	%		100	%		88	%		92	%
NGL - realized price	$	10.00		$	13.00		$	10.00		$	12.00
Natural gas - % of Henry Hub		70	%		80	%		70	%		75	%

CAPITAL EXPENDITURES GUIDANCE    

	Quarter 3				Full Year
(in millions)	Low		High		Low		High
Total upstream capital	$	175	$	225	$	950	$	1,000

OTHER GUIDANCE ITEMS    

	Quarter 3						Full Year
($ millions, except Boe and %)	Low			High			Low			High
Marketing & midstream operating profit	$	(10	)	$	—		$	(35	)	$	(25	)
LOE & GP&T per BOE(1)	$	8.05	(1)	$	8.25	(1)	$	7.95	(1)	$	8.15	(1)
Production & property taxes as % of upstream sales		7.4	%		7.6	%		7.4	%		7.6	%
Exploration expenses	$	—		$	5		$	10		$	20
Depreciation, depletion and amortization	$	265		$	305		$	1,225		$	1,325
General & administrative expenses	$	75		$	85		$	315		$	335
Restructuring expenses(2)	$	25	(2)	$	50	(2)	$	25	(2)	$	50	(2)
Financing costs, net	$	60		$	70		$	260		$	270
Other expenses	$	—		$	10		$	—		$	20
Current income tax rate from continuing operations		0	%		0	%		0	%		0	%
Deferred income tax rate from continuing operations		20	%		30	%		20	%		30	%
Total income tax rate from continuing operations		20	%		30	%		20	%		30	%

(1) In the third quarter 2020 and full-year 2020, Devon expects to incur approximately $20 million and $65 million of minimum volume commitments related to the Anadarko Basin. These commitments are expected to impact GP&T rates by approximately $0.55 per Boe in 2020. These commitments will expire at the end of 2020.

(2) Approximately one-third of the estimated restructuring expenses are non-cash.

1

Oil Commodity Hedges
	Price Swaps				Price Collars
Period	Volume (Bbls/d)		Weighted Average Price ($/Bbl)		Volume (Bbls/d)		Weighted Average Floor Price ($/Bbl)		Weighted Average Ceiling Price ($/Bbl)
Q3 2020		87,500	$	37.02		47,500	$	50.98	$	60.98
Q4 2020		88,000	$	36.28		39,500	$	50.93	$	60.93
Q1 2021		47,500	$	35.74		20,000	$	49.20	$	59.20
Q2 2021		46,500	$	35.22		21,000	$	42.46	$	52.46
Q3 2021		1,000	$	55.35		14,500	$	36.16	$	46.16
Q4 2021		—		—		9,500	$	29.56	$	39.56

Oil Basis Swaps

Period	Index	Volume (Bbls/d)		Weighted Average Differential to WTI ($/Bbl)
Q3 2020	Argus MEH		55,000	$	0.37
Q3 2020	Midland Sweet		32,000	$	(1.23	)
Q3 2020	NYMEX Roll		54,000	$	0.38
Q4 2020	Argus MEH		50,000	$	0.47
Q4 2020	Midland Sweet		32,000	$	(1.23	)
Q4 2020	NYMEX Roll		54,000	$	0.38
Q1-Q4 2021	Midland Sweet		7,000	$	1.27

Natural Gas Commodity Hedges - Henry Hub
	Price Swaps				Price Collars
Period	Volume (MMBtu/d)		Weighted Average Price ($/MMBtu)		Volume (MMBtu/d)		Weighted Average Floor Price ($/MMBtu)		Weighted Average Ceiling Price ($/MMBtu)
Q3 2020		63,300	$	2.72		255,000	$	1.83	$	2.32
Q4 2020		55,000	$	2.66		118,000	$	2.29	$	2.79
Q1 2021		25,000	$	2.69		143,000	$	2.31	$	2.81
Q2 2021		25,000	$	2.69		143,000	$	2.31	$	2.81
Q3 2021		25,000	$	2.69		143,000	$	2.31	$	2.81
Q4 2021		—		—		48,000	$	2.40	$	2.90

Natural Gas Basis Swaps

Period	Index	Volume (MMBtu/d)		Weighted Average Differential to Henry Hub ($/MMBtu)
Q3 2020	Panhandle Eastern Pipe Line		30,000	$	(0.47	)
Q3 2020	El Paso Natural Gas		65,000	$	(0.78	)
Q3 2020	Houston Ship Channel		30,000	$	(0.02	)
Q4 2020	Panhandle Eastern Pipe Line		30,000	$	(0.47	)
Q4 2020	El Paso Natural Gas		65,000	$	(0.78	)
Q4 2020	Houston Ship Channel		30,000	$	(0.02	)
Q1-Q4 2021	El Paso Natural Gas		35,000	$	(0.92	)

NGL Commodity Hedges

		Price Swaps
Period	Product	Volume (Bbls/d)		Weighted Average Price ($/Bbl)
Q3 2020	Ethane		15,000	$	5.62
Q3 2020	Natural Gasoline		1,000	$	44.84
Q3 2020	Normal Butane		1,500	$	23.56
Q3 2020	Propane		4,500	$	25.18
Q4 2020	Natural Gasoline		1,000	$	44.84
Q4 2020	Normal Butane		1,500	$	23.56
Q4 2020	Propane		4,500	$	25.18

Devon’s oil derivatives settle against the average of the prompt month NYMEX West Texas Intermediate futures price. Devon’s natural gas derivatives settle against the Inside FERC first of the month Henry Hub index. Devon’s NGL derivatives settle against the average of the prompt month OPIS Mont Belvieu, Texas index. Commodity hedge positions are shown as of July 31, 2020.

2