Devon Energy (DVN) 8-K Devon Energy Reports Fourth-Quarter and Full-Year 2022 Results; Declares Quarterly Dividend and Raises Fixed Dividend by 11 Percent in 2023

Exhibit 99.2

Devon Energy Fourth-Quarter 2022

Supplemental Tables

TABLE OF CONTENTS:	PAGE:
Consolidated Statements of Earnings		2
Supplemental Information for Consolidated Statements of Earnings		3
Consolidated Statements of Cash Flows		4
Consolidated Balance Sheets		5
Production		6
Capital Expenditures, Costs Incurred and Reserves Reconciliation		7
Supplemental Information for Capital Expenditures		8
Realized Pricing		9
Asset Margins		10
Core Earnings		11
Return on Capital Employed and EBITDAX		12
Net Debt, Net Debt-to-EBITDAX, Field-Level Cash Margin and Free Cash Flow		13
Reinvestment Rate and Variable Dividend		14

1

CONSOLIDATED STATEMENTS OF EARNINGS

(in millions, except per share amounts)	2022												2021
	Quarter 4			Quarter 3			Quarter 2			Quarter 1			Quarter 4
Oil, gas and NGL sales	$	3,139		$	3,668		$	4,100		$	3,175		$	2,985
Oil, gas and NGL derivatives (1)		(53	)		248			(170	)		(683	)		22
Marketing and midstream revenues		1,213			1,516			1,696			1,320			1,266
Total revenues		4,299			5,432			5,626			3,812			4,273
Production expenses (2)		715			735			729			618			605
Exploration expenses		13			4			10			2			5
Marketing and midstream expenses		1,231			1,525			1,700			1,324			1,266
Depreciation, depletion and amortization		625			581			528			489			577
Asset dispositions		(29	)		—			(14	)		(1	)		(49	)
General and administrative expenses		122			95			84			94			95
Financing costs, net (3)		73			67			84			85			86
Restructuring and transaction costs		—			—			—			—			28
Other, net		(4	)		(40	)		10			(61	)		(2	)
Total expenses		2,746			2,967			3,131			2,550			2,611
Earnings before income taxes		1,553			2,465			2,495			1,262			1,662
Income tax expense (4)		349			565			557			267			150
Net earnings		1,204			1,900			1,938			995			1,512
Net earnings attributable to noncontrolling interests		3			7			6			6			6
Net earnings attributable to Devon	$	1,201		$	1,893		$	1,932		$	989		$	1,506
Net earnings per share:
Basic net earnings per share	$	1.84		$	2.89		$	2.94		$	1.48		$	2.24
Diluted net earnings per share	$	1.83		$	2.88		$	2.93		$	1.48		$	2.23
Weighted average common shares outstanding:
Basic		653			655			658			663			671
Diluted		655			656			660			665			673

2

SUPPLEMENTAL INFORMATION FOR CONSOLIDATED STATEMENTS OF EARNINGS

(1) OIL, GAS AND NGL DERIVATIVES

(in millions)	2022												2021
	Quarter 4			Quarter 3			Quarter 2			Quarter 1			Quarter 4
Derivative cash settlements	$	(177	)	$	(363	)	$	(472	)	$	(344	)	$	(493	)
Derivative valuation changes		124			611			302			(339	)		515
Oil, gas and NGL derivatives	$	(53	)	$	248		$	(170	)	$	(683	)	$	22

(2) PRODUCTION EXPENSES

(in millions)	2022								2021
	Quarter 4		Quarter 3		Quarter 2		Quarter 1		Quarter 4
Lease operating expense	$	308	$	284	$	255	$	224	$	235
Gathering, processing & transportation		178		177		177		161		173
Production taxes		210		252		278		214		197
Property taxes		19		22		19		19		—
Production expenses	$	715	$	735	$	729	$	618	$	605

(3) FINANCING COSTS, NET

(in millions)	2022												2021
	Quarter 4			Quarter 3			Quarter 2			Quarter 1			Quarter 4
Interest based on outstanding debt	$	93		$	92		$	93		$	92		$	92
Interest income		(16	)		(19	)		(2	)		(1	)		—
Other		(4	)		(6	)		(7	)		(6	)		(6	)
Financing costs, net	$	73		$	67		$	84		$	85		$	86

(4) INCOME TAX EXPENSE

(in millions)	2022								2021
	Quarter 4		Quarter 3		Quarter 2		Quarter 1		Quarter 4
Current expense	$	84	$	120	$	252	$	103	$	1
Deferred expense		265		445		305		164		149
Income tax expense	$	349	$	565	$	557	$	267	$	150

3

CONSOLIDATED STATEMENTS OF CASH FLOWS

	2022												2021
(in millions)	Quarter 4			Quarter 3			Quarter 2			Quarter 1			Quarter 4
Cash flows from operating activities:
Net earnings	$	1,204		$	1,900		$	1,938		$	995		$	1,512
Adjustments to reconcile net earnings to net cash from operating activities:
Depreciation, depletion and amortization		625			581			528			489			577
Leasehold impairments		2			2			7			1			1
Amortization of liabilities		(8	)		(8	)		(9	)		(6	)		(6	)
Total (gains) losses on commodity derivatives		53			(248	)		170			683			(22	)
Cash settlements on commodity derivatives		(177	)		(363	)		(472	)		(344	)		(493	)
Gains on asset dispositions		(29	)		—			(14	)		(1	)		(49	)
Deferred income tax expense		265			445			305			164			149
Share-based compensation		23			22			23			20			19
Other		(1	)		8			4			(21	)		2
Changes in assets and liabilities, net		(46	)		(235	)		198			(143	)		(74	)
Net cash from operating activities		1,911			2,104			2,678			1,837			1,616
Cash flows from investing activities:
Capital expenditures		(804	)		(628	)		(573	)		(537	)		(512	)
Acquisitions of property and equipment		(17	)		(2,465	)		(100	)		(1	)		(3	)
Divestitures of property and equipment		—			4			9			26			14
Distributions from investments		9			7			15			8			8
Contributions to investments		(17	)		(16	)		(21	)		(22	)		(25	)
Net cash from investing activities		(829	)		(3,098	)		(670	)		(526	)		(518	)
Cash flows from financing activities:
Repurchases of common stock		(57	)		(126	)		(324	)		(211	)		(589	)
Dividends paid on common stock		(875	)		(1,007	)		(830	)		(667	)		(554	)
Distributions to noncontrolling interests		(8	)		(9	)		(5	)		(8	)		(6	)
Shares exchanged for tax withholdings and other		—			(1	)		(12	)		(73	)		—
Net cash from financing activities		(940	)		(1,143	)		(1,171	)		(959	)		(1,149	)
Effect of exchange rate changes on cash		2			(10	)		(5	)		2			1
Net change in cash, cash equivalents and restricted cash		144			(2,147	)		832			354			(50	)
Cash, cash equivalents and restricted cash at beginning of period		1,310			3,457			2,625			2,271			2,321
Cash, cash equivalents and restricted cash at end of period	$	1,454		$	1,310		$	3,457		$	2,625		$	2,271
Reconciliation of cash, cash equivalents and restricted cash:
Cash and cash equivalents	$	1,314		$	1,166		$	3,300		$	2,459		$	2,099
Restricted cash		140			144			157			166			172
Total cash, cash equivalents and restricted cash	$	1,454		$	1,310		$	3,457		$	2,625		$	2,271

4

CONSOLIDATED BALANCE SHEETS

(in millions)	December 31, 2022			December 31, 2021
Current assets:
Cash, cash equivalents and restricted cash	$	1,454		$	2,271
Accounts receivable		1,767			1,543
Inventory		201			114
Other current assets		469			321
Total current assets		3,891			4,249
Oil and gas property and equipment, based on successful efforts accounting, net		16,567			13,536
Other property and equipment, net		1,539			1,472
Total property and equipment, net		18,106			15,008
Goodwill		753			753
Right-of-use assets		224			235
Investments		440			402
Other long-term assets		307			378
Total assets	$	23,721		$	21,025
Current liabilities:
Accounts payable	$	859		$	500
Revenues and royalties payable		1,506			1,456
Short-term debt		251			—
Other current liabilities		489			1,131
Total current liabilities		3,105			3,087
Long-term debt		6,189			6,482
Lease liabilities		257			252
Asset retirement obligations		511			468
Other long-term liabilities		900			1,050
Deferred income taxes		1,463			287
Stockholders’ equity:
Common stock		65			66
Additional paid-in capital		6,921			7,636
Retained earnings		4,297			1,692
Accumulated other comprehensive loss		(116	)		(132	)
Total stockholders’ equity attributable to Devon		11,167			9,262
Noncontrolling interests		129			137
Total equity		11,296			9,399
Total liabilities and equity	$	23,721		$	21,025
Common shares outstanding		653			663

5

PRODUCTION

	2022								2021
	Quarter 4		Quarter 3		Quarter 2		Quarter 1		Quarter 4
Oil (MBbls/d)
Delaware Basin		201		210		222		209		213
Anadarko Basin		15		13		14		14		14
Williston Basin		37		35		27		32		36
Eagle Ford		42		19		19		17		19
Powder River Basin		16		13		14		12		14
Other		5		4		4		4		4
Total		316		294		300		288		300
Natural gas liquids (MBbls/d)
Delaware Basin		101		108		111		92		107
Anadarko Basin		23		27		25		25		27
Williston Basin		9		8		9		8		9
Eagle Ford		12		9		9		9		9
Powder River Basin		3		2		2		2		2
Other		—		—		—		—		—
Total		148		154		156		136		154
Gas (MMcf/d)
Delaware Basin		626		623		618		561		577
Anadarko Basin		238		224		212		210		222
Williston Basin		64		71		52		54		64
Eagle Ford		84		63		60		61		60
Powder River Basin		21		18		18		19		19
Other		1		1		1		1		1
Total		1,034		1,000		961		906		943
Total oil equivalent (MBoe/d)
Delaware Basin		407		421		436		394		416
Anadarko Basin		77		77		74		75		78
Williston Basin		57		55		45		48		55
Eagle Ford		68		39		38		36		38
Powder River Basin		22		18		19		18		19
Other		5		4		4		4		5
Total		636		614		616		575		611

6

CAPITAL EXPENDITURES

	2022								2021
(in millions)	Quarter 4		Quarter 3		Quarter 2		Quarter 1		Quarter 4
Delaware Basin	$	518	$	444	$	374	$	413	$	392
Anadarko Basin		59		55		42		16		19
Williston Basin		90		57		21		17		25
Eagle Ford		160		38		37		27		21
Powder River Basin		46		44		37		27		27
Other		1		1		2		1		2
Total upstream capital	$	874	$	639	$	513	$	501	$	486
Environmental (1)		20		27		22		16		—
Midstream and Corporate		28		22		32		46		31
Acquisitions (2)		13		2,534		13		1		4
Total capital	$	935	$	3,222	$	580	$	564	$	521

(1) Devon began tracking environmental capital separately in 2022.

(2) Q3 2022 includes $2,532 million related to Validus and RimRock acquisitions.

COSTS INCURRED AND RESERVES RECONCILIATION

COSTS INCURRED

	Year Ended December 31,
(in millions)	2022		2021
Property acquisition costs:
Proved properties	$	1,760	$	7,017
Unproved properties		803		2,381
Exploration costs		472		212
Development costs		2,132		1,643
Costs incurred	$	5,167	$	11,253

RESERVES RECONCILIATION

	Oil (MMBbls)			Gas (Bcf)			NGL (MMBbls)			Total (MMBoe)
As of December 31, 2021:
Proved developed		544			2,361			348			1,285
Proved undeveloped		165			517			89			340
Total Proved		709			2,878			437			1,625
Revisions due to prices		15			61			8			34
Revisions other than price		(55	)		13			3			(49	)
Extensions and discoveries		127			449			76			278
Purchase of reserves		106			137			24			153
Production		(109	)		(356	)		(54	)		(223	)
Sale of reserves		—			(7	)		(1	)		(3	)
As of December 31, 2022:
Proved developed		596			2,595			391			1,419
Proved undeveloped		197			580			102			396
Total Proved		793			3,175			493			1,815

7

SUPPLEMENTAL INFORMATION FOR CAPITAL EXPENDITURES

GROSS OPERATED SPUDS

	2022								2021
	Quarter 4		Quarter 3		Quarter 2		Quarter 1		Quarter 4
Delaware Basin		60		50		46		59		54
Anadarko Basin		8		13		14		13		6
Williston Basin		9		10		5		—		9
Eagle Ford		31		7		4		11		9
Powder River Basin		4		6		1		—		4
Total		112		86		70		83		82

GROSS OPERATED WELLS TIED-IN

	2022								2021
	Quarter 4		Quarter 3		Quarter 2		Quarter 1		Quarter 4
Delaware Basin		55		59		52		52		65
Anadarko Basin		23		13		1		—		12
Williston Basin		5		14		—		—		—
Eagle Ford		28		8		14		8		7
Powder River Basin		3		9		—		4		2
Total		114		103		67		64		86

AVERAGE LATERAL LENGTH

(based on wells tied-in)

	2022								2021
	Quarter 4		Quarter 3		Quarter 2		Quarter 1		Quarter 4
Delaware Basin		9,600’		10,900’		9,100’		8,900’		10,100’
Anadarko Basin		8,700’		9,500’		10,100’		—		11,700’
Williston Basin		9,900’		10,500’		—		—		—
Eagle Ford		6,500’		7,800’		5,800’		7,500’		7,100’
Powder River Basin		9,600’		11,800’		—		10,400’		9,600’
Total		8,700’		10,500’		8,400’		8,800’		10,100’

8

REALIZED PRICING

BENCHMARK PRICES

(average prices)

	2022								2021
	Quarter 4		Quarter 3		Quarter 2		Quarter 1		Quarter 4
Oil ($/Bbl)—West Texas Intermediate (Cushing)	$	82.53	$	91.87	$	108.70	$	94.45	$	76.91
Natural Gas ($/Mcf)—Henry Hub	$	6.26	$	8.20	$	7.17	$	4.96	$	5.84
NGL ($/Bbl)—Mont Belvieu Blended	$	30.46	$	39.67	$	46.44	$	43.99	$	40.39

REALIZED PRICES

	2022												2021
	Quarter 4			Quarter 3			Quarter 2			Quarter 1			Quarter 4
Oil (Per Bbl)
Delaware Basin	$	82.48		$	93.60		$	109.05		$	93.12		$	75.67
Anadarko Basin		82.57			91.42			108.15			92.70			76.07
Williston Basin		81.05			91.30			109.85			90.87			74.02
Eagle Ford		83.23			91.53			109.77			94.51			75.35
Powder River Basin		81.29			91.33			104.75			92.69			72.86
Realized price without hedges		82.31			92.98			108.93			92.94			75.36
Cash settlements		(4.87	)		(8.60	)		(13.13	)		(11.32	)		(13.14	)
Realized price, including cash settlements	$	77.44		$	84.38		$	95.80		$	81.62		$	62.22
Natural gas liquids (Per Bbl)
Delaware Basin	$	23.68		$	34.37		$	40.75		$	38.43		$	35.56
Anadarko Basin		29.58			35.52			41.64			38.38			35.66
Williston Basin		7.97			25.41			23.88			20.71			24.97
Eagle Ford		29.06			35.55			41.98			39.68			38.17
Powder River Basin		34.91			44.85			55.62			52.49			47.30
Realized price without hedges		24.32			34.44			40.28			37.76			35.36
Cash settlements		—			—			—			—			(0.54	)
Realized price, including cash settlements	$	24.32		$	34.44		$	40.28		$	37.76		$	34.82
Gas (Per Mcf)
Delaware Basin	$	4.30		$	7.06		$	6.41		$	3.83		$	4.60
Anadarko Basin		5.37			8.89			7.11			4.00			5.37
Williston Basin		0.44			3.23			1.56			0.74			1.53
Eagle Ford		5.02			7.53			7.10			4.91			5.76
Powder River Basin		5.57			8.23			7.93			4.24			6.10
Realized price without hedges		4.39			7.25			6.37			3.77			4.68
Cash settlements		(0.38	)		(1.42	)		(1.31	)		(0.62	)		(1.42	)
Realized price, including cash settlements	$	4.01		$	5.83		$	5.06		$	3.15		$	3.26
Total oil equivalent (Per Boe)
Delaware Basin	$	53.34		$	65.80		$	75.02		$	63.75		$	54.28
Anadarko Basin		41.25			53.72			54.46			42.08			41.39
Williston Basin		54.51			66.65			73.15			63.31			53.44
Eagle Ford		62.92			65.49			75.07			62.74			56.06
Powder River Basin		67.59			78.58			89.84			75.75			63.45
Realized price without hedges		53.66			64.89			73.13			61.40			53.12
Cash settlements		(3.04	)		(6.41	)		(8.43	)		(6.65	)		(8.78	)
Realized price, including cash settlements	$	50.62		$	58.48		$	64.70		$	54.75		$	44.34

9

ASSET MARGINS

BENCHMARK PRICES

(average prices)

	2022								2021
	Quarter 4		Quarter 3		Quarter 2		Quarter 1		Quarter 4
Oil ($/Bbl)—West Texas Intermediate (Cushing)	$	82.53	$	91.87	$	108.70	$	94.45	$	76.91
Natural Gas ($/Mcf)—Henry Hub	$	6.26	$	8.20	$	7.17	$	4.96	$	5.84
NGL ($/Bbl)—Mont Belvieu Blended	$	30.46	$	39.67	$	46.44	$	43.99	$	40.39

PER-UNIT CASH MARGIN BY ASSET (per Boe)

	2022												2021
	Quarter 4			Quarter 3			Quarter 2			Quarter 1			Quarter 4
Delaware Basin
Realized price	$	53.34		$	65.80		$	75.02		$	63.75		$	54.28
Lease operating expenses		(4.55	)		(4.39	)		(3.98	)		(3.79	)		(4.02	)
Gathering, processing & transportation		(2.52	)		(2.40	)		(2.37	)		(2.32	)		(2.27	)
Production & property taxes		(3.89	)		(4.81	)		(5.35	)		(4.65	)		(3.40	)
Field-level cash margin	$	42.38		$	54.20		$	63.32		$	52.99		$	44.59
Anadarko Basin
Realized price	$	41.25		$	53.72		$	54.46		$	42.08		$	41.39
Lease operating expenses		(3.59	)		(3.46	)		(3.49	)		(2.75	)		(2.70	)
Gathering, processing & transportation		(6.84	)		(6.91	)		(6.65	)		(6.67	)		(6.60	)
Production & property taxes		(2.29	)		(3.26	)		(3.17	)		(2.35	)		(2.44	)
Field-level cash margin	$	28.53		$	40.09		$	41.15		$	30.31		$	29.65
Williston Basin
Realized price	$	54.51		$	66.65		$	73.15		$	63.31		$	53.44
Lease operating expenses		(9.93	)		(9.97	)		(9.40	)		(7.67	)		(5.76	)
Gathering, processing & transportation		(1.92	)		(2.40	)		(2.44	)		(2.32	)		(2.09	)
Production & property taxes		(5.64	)		(6.33	)		(6.75	)		(5.67	)		(4.64	)
Field-level cash margin	$	37.02		$	47.95		$	54.56		$	47.65		$	40.95
Eagle Ford
Realized price	$	62.92		$	65.49		$	75.07		$	62.74		$	56.06
Lease operating expenses		(5.63	)		(4.94	)		(4.98	)		(4.63	)		(3.78	)
Gathering, processing & transportation		(3.08	)		(4.94	)		(6.39	)		(5.67	)		(6.65	)
Production & property taxes		(2.97	)		(3.79	)		(3.99	)		(3.52	)		(2.93	)
Field-level cash margin	$	51.24		$	51.82		$	59.71		$	48.92		$	42.70
Powder River Basin
Realized price	$	67.59		$	78.58		$	89.84		$	75.75		$	63.45
Lease operating expenses		(7.15	)		(7.03	)		(7.04	)		(9.01	)		(7.49	)
Gathering, processing & transportation		(2.98	)		(3.24	)		(3.50	)		(3.19	)		(2.86	)
Production & property taxes		(8.13	)		(9.50	)		(10.89	)		(9.23	)		(7.49	)
Field-level cash margin	$	49.33		$	58.81		$	68.41		$	54.32		$	45.61
Devon—Total
Realized price	$	53.66		$	64.89		$	73.13		$	61.40		$	53.12
Lease operating expenses		(5.26	)		(5.02	)		(4.56	)		(4.33	)		(4.18	)
Gathering, processing & transportation		(3.05	)		(3.13	)		(3.15	)		(3.11	)		(3.08	)
Production & property taxes		(3.91	)		(4.84	)		(5.30	)		(4.51	)		(3.49	)
Field-level cash margin	$	41.44		$	51.90		$	60.12		$	49.45		$	42.37

10

NON-GAAP MEASURES

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

Devon’s 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.

The earnings materials may include forward-looking non-GAAP measures. The company is unable to provide reconciliations of these forward-looking non-GAAP measures, because components of the calculations are inherently unpredictable, such as changes to current assets and liabilities, the timing of changes in capital accruals, unknown future events and estimating certain future GAAP measures. The inability to reliably quantify certain components of the calculation would significantly affect the usefulness and accuracy of a reconciliation.

CORE EARNINGS

Devon’s reported net earnings include items of income and expense that are typically excluded by securities analysts in their published estimates of the company’s financial results. Accordingly, the company also uses the measures of core earnings and core earnings 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 full year and fourth-quarter 2022 earnings.

	Year Ended December 31, 2022												Quarter Ended December 31, 2022
	Before- tax			After- tax			After NCI			Per Diluted Share			Before- tax			After- tax			After NCI			Per Diluted Share
Total
Earnings (GAAP)	$	7,775		$	6,037		$	6,015		$	9.12		$	1,553		$	1,204		$	1,201		$	1.83
Adjustments:
Asset dispositions		(44	)		(34	)		(34	)		(0.05	)		(29	)		(22	)		(22	)		(0.02	)
Asset and exploration impairments		13			10			10			0.02			4			3			3			—
Deferred tax asset valuation allowance		—			17			17			0.03			—			2			2			—
Fair value changes in financial instruments		(690	)		(532	)		(532	)		(0.81	)		(125	)		(99	)		(99	)		(0.15	)
Core earnings (Non-GAAP)	$	7,054		$	5,498		$	5,476		$	8.31		$	1,403		$	1,088		$	1,085		$	1.66

* The tax impact for the adjustments to core earnings in the tables above are all deferred.

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RETURN ON CAPITAL EMPLOYED

Devon defines return on capital employed as pre-interest core earnings divided by averaged capital employed. Devon believes return on capital employed provides a useful measure of how efficiently the company is using its capital to generate profits. Average capital employed is the average of the capital employed as of the beginning and ending of the relevant period, with capital employed calculated as debt plus stockholders’ equity attributable to Devon less cash and cash equivalents.

	Year Ended December 31, 2022
Earnings (GAAP)	$	6,015
Non-GAAP adjustments		(539	)
Core earnings (Non-GAAP)		5,476
Net financing costs (GAAP)		309
Less tax impact (22%)		(69	)
Pre-interest core earnings (Non-GAAP)	$	5,716
Beginning balance:
Gross debt	$	6,482
Stockholders’ equity		9,262
Less cash		(2,271	)
Beginning capital employed	$	13,473
Ending balance:
Gross debt	$	6,440
Stockholders’ equity		11,167
Less cash		(1,454	)
Ending capital employed	$	16,153
Average capital employed	$	14,813
ROCE		39	%

EBITDAX

Devon believes EBITDAX provides information useful in assessing operating and financial performance across periods. Devon computes EBITDAX as net earnings 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.

	FY ‘22			Q4 ‘22			Q3 ‘22			Q2 ‘22			Q1 ‘22			Q4 ‘21			Q3 ‘21			Q2 ‘21			Q1 ‘21
Net earnings (GAAP)	$	6,037		$	1,204		$	1,900		$	1,938		$	995		$	1,512		$	844		$	261		$	216
Financing costs, net		309			73			67			84			85			86			86			80			77
Income tax expense (benefit)		1,738			349			565			557			267			150			120			43			(248	)
Exploration expenses		29			13			4			10			2			5			3			3			3
Depreciation, depletion and amortization		2,223			625			581			528			489			577			578			536			467
Asset dispositions		(44	)		(29	)		—			(14	)		(1	)		(49	)		—			(87	)		(32	)
Share-based compensation		87			22			22			22			20			19			18			20			20
Derivative & financial instrument non-cash val. changes		(698	)		(122	)		(613	)		(302	)		339			(515	)		(35	)		336			296
Restructuring and transaction costs		—			—			—			—			—			28			18			23			189
Accretion on discounted liabilities and other		(95	)		(6	)		(38	)		10			(61	)		(2	)		2			(14	)		(29	)
EBITDAX (Non-GAAP)	$	9,586		$	2,130		$	2,488		$	2,833		$	2,135		$	1,811		$	1,634		$	1,201		$	959

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NET DEBT

Devon defines net debt as debt (includes short-term and long-term 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.

	Dec. 31, 2022			Sep. 30, 2022			Jun. 30, 2022			Mar. 31, 2022			Dec. 31, 2021			Sep. 30, 2021
Total debt (GAAP)	$	6,440		$	6,451		$	6,461		$	6,471		$	6,482		$	6,492
Less:
Cash, cash equivalents and restricted cash		(1,454	)		(1,310	)		(3,457	)		(2,625	)		(2,271	)		(2,321	)
Net debt (Non-GAAP)	$	4,986		$	5,141		$	3,004		$	3,846		$	4,211		$	4,171

NET DEBT-TO-EBITDAX

Devon defines net debt-to-EBITDAX as net debt divided by an annualized EBITDAX measure. Devon believes this ratio provides information useful to investors in assessing the company’s credit position and debt leverage.

	Dec. 31, 2022		Sep. 30, 2022		Jun. 30, 2022		Mar. 31, 2022		Dec. 31, 2021		Sep. 30, 2021
Net debt (Non-GAAP)	$	4,986	$	5,141	$	3,004	$	3,846	$	4,211	$	4,171
EBITDAX (Non-GAAP) (1)	$	9,586	$	9,267	$	8,413	$	6,781	$	5,605	$	5,059
Net debt-to-EBITDAX (Non-GAAP)		0.5		0.6		0.4		0.6		0.8		0.8

(1) EBITDAX is an annualized measure using a trailing twelve-month calculation. Due to the merger with WPX closing in the first quarter of 2021, third quarter 2021 EBITDAX was calculated using annualized September YTD 2021 results.

FIELD-LEVEL CASH MARGIN

Devon defines field-level cash margin as oil, gas and NGL revenues less production expenses. Devon believes field-level cash margin provides a useful measure of value generated for shareholders.

	Full Year 2022			Six Months Ended Dec. 31, 2021			Six Months Ended Jun. 30, 2021			Full Year 2020
Realized price	$	63.20		$	50.10		$	40.54		$	22.10
Production expenses		(12.55	)		(10.33	)		(10.06	)		(9.21	)
Field-level cash margin	$	50.65		$	39.77		$	30.48		$	12.89

FREE CASH FLOW

Devon defines free cash flow as total operating cash flow less capital expenditures. Devon believes free cash flow provides a useful measure of available cash generated by operating activities for other investing and financing activities.

	Quarter Ended Dec. 31, 2022			Quarter Ended Sep. 30, 2022			Quarter Ended Jun. 30, 2022			Quarter Ended Mar. 31, 2022			Quarter Ended Dec. 31, 2021
Total operating cash flow (GAAP)	$	1,911		$	2,104		$	2,678		$	1,837		$	1,616
Less capital expenditures:
Capital expenditures		(804	)		(628	)		(573	)		(537	)		(512	)
Free cash flow (Non-GAAP)	$	1,107		$	1,476		$	2,105		$	1,300		$	1,104

	Full Year 2022			Full Year 2021
Total operating cash flow (GAAP)	$	8,530		$	4,899
Less capital expenditures:
Capital expenditures		(2,542	)		(1,989	)
Free cash flow (Non-GAAP)	$	5,988		$	2,910

13

REINVESTMENT RATE

Devon defines reinvestment rate as accrued capital expenditures (excluding acquisitions) divided by operating cash flow. Devon believes this measure provides useful information to our investors as an indicator of the capital demands of our business relative to the cash flow generated from normal business operations.

	Year Ended Dec. 31, 2022			Year Ended Dec. 31, 2021
Capital expenditures (excludes acquisitions)	$	2,740		$	1,998
Operating cash flow	$	8,530		$	4,899
Reinvestment rate (Non-GAAP)		32	%		41	%

VARIABLE DIVIDEND

Devon may pay a variable dividend of up to 50 percent of its excess cash flow. Each quarter’s excess cash flow is computed as adjusted cash flow less capital expenditures and the fixed dividend.

	Quarter Ended December 31, 2022
Operating cash flow (GAAP)	$	1,911
Changes in assets and liabilities, net		46
Adjusted cash flow (Non-GAAP)		1,957
Capital expenditures (Accrued)		(935	)
Adjusted free cash flow (Non-GAAP)		1,022
Fixed quarterly dividend		(117	)
Excess free cash flow (Non-GAAP)	$	905
~50% Pay out (Board Discretion: Up to 50%)		50	%
Total variable dividend	$	449

14

FIRST-QUARTER AND FULL-YEAR 2023 GUIDANCE

PRODUCTION GUIDANCE

	Quarter 1 (1)				Full Year
	Low		High		Low		High
Oil (MBbls/d)		315		321		320		326
Natural gas liquids (MBbls/d)		143		149		156		162
Gas (MMcf/d)		1,000		1,050		1,000		1,050
Total oil equivalent (MBoe/d) (1)		625		645		643		663

(1) First-quarter volumes are temporarily impacted by:

• Infrastructure outages in the Delaware Basin (~10,000 Boe per day)

• Timing of wells placed online (90 wells in Q1; ~400 for full-year 2023)

• Ethane rejection (~10,000 Boe per day)

CAPITAL EXPENDITURES GUIDANCE

	Quarter 1 (2)				Full Year
(in millions)	Low		High		Low		High
Upstream capital (2)	$	900	$	940	$	3,440	$	3,560
Environmental capital		25		35		80		120
Midstream & other capital		25		35		80		120
Total capital	$	950	$	1,010	$	3,600	$	3,800

(2) Upstream capital is expected to be higher in the first half of 2023 due to a temporary fourth frac crew added in the Delaware Basin. Activity from this incremental frac crew is expected to be completed around mid-year, resulting in lower capital spending over the second half of 2023.

PRICE REALIZATIONS GUIDANCE

	Quarter 1						Full Year
	Low			High			Low			High
Oil - % of WTI		95	%		100	%		95	%		100	%
NGL - % of WTI		25	%		35	%		25	%		35	%
Natural gas - % of Henry Hub		60	%		70	%		60	%		75	%

OTHER GUIDANCE ITEMS

	Quarter 1						Full Year
($ millions, except Boe and %)	Low			High			Low			High
Marketing & midstream operating profit	$	(30	)	$	(20	)	$	(60	)	$	(50	)
LOE & GP&T per BOE	$	8.60		$	9.00		$	8.30		$	8.80
Production & property taxes as % of upstream sales		7.0	%		8.0	%		7.0	%		8.0	%
Exploration expenses	$	—		$	5		$	5		$	15
Depreciation, depletion and amortization	$	600		$	640		$	2,500		$	2,600
General & administrative expenses	$	100		$	110		$	390		$	410
Net financing costs, net	$	70		$	80		$	290		$	310
Other expenses	$	—		$	5		$	—		$	20

INCOME TAX GUIDANCE

(% of pre-tax earnings)	Quarter 1			Full Year
Current income tax rate		15	%		15	%
Deferred income tax rate		7	%		7	%
Total income tax rate		22	%		22	%

1

CONTINGENT PAYMENTS FOR BARNETT SHALE DIVESTITURE (4-year period beginning in 2021)

WTI Threshold		WTI Annual Earnout Amount		Henry Hub Threshold		Henry Hub Annual Earnout Amount
$	50.00	$	10,000,000	$	2.75	$	20,000,000
$	55.00	$	12,500,000	$	3.00	$	25,000,000
$	60.00	$	15,000,000	$	3.25	$	35,000,000
$	65.00	$	20,000,000	$	3.50	$	45,000,000

2023 & 2024 HEDGING POSITIONS

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)
Q1 2023		—	$	—		95,000	$	67.82	$	94.68
Q2 2023		—	$	—		84,500	$	69.41	$	94.84
Q3 2023		—	$	—		84,500	$	69.41	$	94.84
Q4 2023		—	$	—		81,000	$	69.63	$	94.29

Oil Basis Swaps

Period	Index	Volume (Bbls/d)		Weighted Average Differential to WTI ($/Bbl)
Q1 2023	Midland Sweet		6,311	$	0.69
Q2 2023	Midland Sweet		25,000	$	0.90
Q3 2023	Midland Sweet		45,000	$	0.98
Q4 2023	Midland Sweet		45,000	$	0.98
Q1-Q4 2024	Midland Sweet		29,500	$	1.14

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)
Q1 2023		35,000	$	5.99		237,000	$	4.16	$	10.68
Q2 2023		20,000	$	3.60		220,000	$	3.60	$	7.00
Q3 2023		10,000	$	3.55		195,000	$	3.61	$	7.29
Q4 2023		10,000	$	3.55		147,000	$	3.67	$	7.62
Q1-Q4 2024		7,486	$	3.55		40,527	$	3.78	$	7.05

Natural Gas Basis Swaps

Period	Index	Volume (MMBtu/d)		Weighted Average Differential to Henry Hub ($/MMBtu)
Q1 - Q2 2023	El Paso Permian		135,000	$	(1.59	)
Q3 - Q4 2023	El Paso Permian		145,000	$	(1.58	)
Q1 2023	Houston Ship Channel		120,000	$	(0.17	)
Q2 - Q4 2023	Houston Ship Channel		130,000	$	(0.19	)
Q1-Q4 2023	WAHA		70,000	$	(0.51	)
Q1-Q4 2024	El Paso Permian		10,000	$	(1.00	)
Q1-Q4 2024	Houston Ship Channel		10,000	$	(0.37	)
Q1-Q4 2024	WAHA		44,973	$	(0.58	)

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 end of the month NYMEX index. Commodity hedge positions are shown as of February 8, 2023.

2