Exhibit 99.2
Devon Energy Second-Quarter 2023
Supplemental Tables
TABLE OF CONTENTS: | PAGE: | |||
Consolidated Statements of Earnings | 2 | |||
Supplemental Information for Consolidated Statements of Earnings | 3 | |||
Consolidated Balance Sheets | 4 | |||
Consolidated Statements of Cash Flows | 5 | |||
Production | 6 | |||
Capital Expenditures and Supplemental Information for Capital Expenditures | 7 | |||
Realized Pricing | 8 | |||
Asset Margins | 9 | |||
Core Earnings | 10 | |||
EBITDAX, Net Debt, Net Debt-to-EBITDAX, and Free Cash Flow | 11 | |||
Reinvestment Rate and Variable Dividend | 12 |
1
CONSOLIDATED STATEMENTS OF EARNINGS
(in millions, except per share amounts) | 2023 | 2022 | ||||||||||||||||||
Quarter 2 | Quarter 1 | Quarter 4 | Quarter 3 | Quarter 2 | ||||||||||||||||
Oil, gas and NGL sales | $ | 2,493 | $ | 2,679 | $ | 3,139 | $ | 3,668 | $ | 4,100 | ||||||||||
Oil, gas and NGL derivatives (1) | (76 | ) | 64 | (53 | ) | 248 | (170 | ) | ||||||||||||
Marketing and midstream revenues | 1,037 | 1,080 | 1,213 | 1,516 | 1,696 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total revenues | 3,454 | 3,823 | 4,299 | 5,432 | 5,626 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Production expenses (2) | 719 | 693 | 715 | 735 | 729 | |||||||||||||||
Exploration expenses | 10 | 3 | 13 | 4 | 10 | |||||||||||||||
Marketing and midstream expenses | 1,051 | 1,105 | 1,231 | 1,525 | 1,700 | |||||||||||||||
Depreciation, depletion and amortization | 638 | 615 | 625 | 581 | 528 | |||||||||||||||
Asset dispositions | (41 | ) | — | (29 | ) | — | (14 | ) | ||||||||||||
General and administrative expenses | 92 | 106 | 122 | 95 | 84 | |||||||||||||||
Financing costs, net (3) | 78 | 72 | 73 | 67 | 84 | |||||||||||||||
Other, net | 10 | 5 | (4 | ) | (40 | ) | 10 | |||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total expenses | 2,557 | 2,599 | 2,746 | 2,967 | 3,131 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Earnings before income taxes | 897 | 1,224 | 1,553 | 2,465 | 2,495 | |||||||||||||||
Income tax expense (4) | 199 | 221 | 349 | 565 | 557 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net earnings | 698 | 1,003 | 1,204 | 1,900 | 1,938 | |||||||||||||||
Net earnings attributable to noncontrolling interests | 8 | 8 | 3 | 7 | 6 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net earnings attributable to Devon | $ | 690 | $ | 995 | $ | 1,201 | $ | 1,893 | $ | 1,932 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net earnings per share: | ||||||||||||||||||||
Basic net earnings per share | $ | 1.08 | $ | 1.53 | $ | 1.84 | $ | 2.89 | $ | 2.94 | ||||||||||
Diluted net earnings per share | $ | 1.07 | $ | 1.53 | $ | 1.83 | $ | 2.88 | $ | 2.93 | ||||||||||
Weighted average common shares outstanding: | ||||||||||||||||||||
Basic | 642 | 651 | 653 | 655 | 658 | |||||||||||||||
Diluted | 643 | 653 | 655 | 656 | 660 |
2
SUPPLEMENTAL INFORMATION FOR CONSOLIDATED STATEMENTS OF EARNINGS
(1) OIL, GAS AND NGL DERIVATIVES | ||||||||||||||||||||
(in millions) | 2023 | 2022 | ||||||||||||||||||
Quarter 2 | Quarter 1 | Quarter 4 | Quarter 3 | Quarter 2 | ||||||||||||||||
Derivative cash settlements | $ | 37 | $ | 13 | $ | (177 | ) | $ | (363 | ) | $ | (472 | ) | |||||||
Derivative valuation changes | (113 | ) | 51 | 124 | 611 | 302 | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Oil, gas and NGL derivatives | $ | (76 | ) | $ | 64 | $ | (53 | ) | $ | 248 | $ | (170 | ) | |||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
(2) PRODUCTION EXPENSES | ||||||||||||||||||||
(in millions) | 2023 | 2022 | ||||||||||||||||||
Quarter 2 | Quarter 1 | Quarter 4 | Quarter 3 | Quarter 2 | ||||||||||||||||
Lease operating expense | $ | 353 | $ | 327 | $ | 308 | $ | 284 | $ | 255 | ||||||||||
Gathering, processing & transportation | 177 | 166 | 178 | 177 | 177 | |||||||||||||||
Production taxes | 165 | 175 | 210 | 252 | 278 | |||||||||||||||
Property taxes | 24 | 25 | 19 | 22 | 19 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Production expenses | $ | 719 | $ | 693 | $ | 715 | $ | 735 | $ | 729 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
(3) FINANCING COSTS, NET | ||||||||||||||||||||
(in millions) | 2023 | 2022 | ||||||||||||||||||
Quarter 2 | Quarter 1 | Quarter 4 | Quarter 3 | Quarter 2 | ||||||||||||||||
Interest based on outstanding debt | $ | 96 | $ | 93 | $ | 93 | $ | 92 | $ | 93 | ||||||||||
Interest income | (15 | ) | (17 | ) | (16 | ) | (19 | ) | (2 | ) | ||||||||||
Other | (3 | ) | (4 | ) | (4 | ) | (6 | ) | (7 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Financing costs, net | $ | 78 | $ | 72 | $ | 73 | $ | 67 | $ | 84 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
(4) INCOME TAX EXPENSE | ||||||||||||||||||||
(in millions) | 2023 | 2022 | ||||||||||||||||||
Quarter 2 | Quarter 1 | Quarter 4 | Quarter 3 | Quarter 2 | ||||||||||||||||
Current expense | $ | 80 | $ | 141 | $ | 84 | $ | 120 | $ | 252 | ||||||||||
Deferred expense | 119 | 80 | 265 | 445 | 305 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Income tax expense | $ | 199 | $ | 221 | $ | 349 | $ | 565 | $ | 557 | ||||||||||
|
|
|
|
|
|
|
|
|
|
3
CONSOLIDATED BALANCE SHEETS
(in millions) | June 30, 2023 | December 31, 2022 | ||||||
Current assets: | ||||||||
Cash, cash equivalents and restricted cash | $ | 488 | $ | 1,454 | ||||
Accounts receivable | 1,519 | 1,767 | ||||||
Inventory | 201 | 201 | ||||||
Other current assets | 397 | 469 | ||||||
|
|
|
| |||||
Total current assets | 2,605 | 3,891 | ||||||
Oil and gas property and equipment, based on successful efforts accounting, net | 17,317 | 16,567 | ||||||
Other property and equipment, net | 1,446 | 1,539 | ||||||
|
|
|
| |||||
Total property and equipment, net | 18,763 | 18,106 | ||||||
Goodwill | 753 | 753 | ||||||
Right-of-use assets | 266 | 224 | ||||||
Investments | 675 | 440 | ||||||
Other long-term assets | 293 | 307 | ||||||
|
|
|
| |||||
Total assets | $ | 23,355 | $ | 23,721 | ||||
|
|
|
| |||||
Current liabilities: | ||||||||
Accounts payable | $ | 843 | $ | 859 | ||||
Revenues and royalties payable | 1,199 | 1,506 | ||||||
Short-term debt | 244 | 251 | ||||||
Other current liabilities | 383 | 489 | ||||||
|
|
|
| |||||
Total current liabilities | 2,669 | 3,105 | ||||||
Long-term debt | 6,169 | 6,189 | ||||||
Lease liabilities | 299 | 257 | ||||||
Asset retirement obligations | 548 | 511 | ||||||
Other long-term liabilities | 858 | 900 | ||||||
Deferred income taxes | 1,662 | 1,463 | ||||||
Stockholders’ equity: | ||||||||
Common stock | 64 | 65 | ||||||
Additional paid-in capital | 6,131 | 6,921 | ||||||
Retained earnings | 4,940 | 4,297 | ||||||
Accumulated other comprehensive loss | (114 | ) | (116 | ) | ||||
|
|
|
| |||||
Total stockholders’ equity attributable to Devon | 11,021 | 11,167 | ||||||
Noncontrolling interests | 129 | 129 | ||||||
|
|
|
| |||||
Total equity | 11,150 | 11,296 | ||||||
|
|
|
| |||||
Total liabilities and equity | $ | 23,355 | $ | 23,721 | ||||
|
|
|
| |||||
Common shares outstanding | 641 | 653 |
4
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in millions) | 2023 | 2022 | ||||||||||||||||||
Quarter 2 | Quarter 1 | Quarter 4 | Quarter 3 | Quarter 2 | ||||||||||||||||
Cash flows from operating activities: | ||||||||||||||||||||
Net earnings | $ | 698 | $ | 1,003 | $ | 1,204 | $ | 1,900 | $ | 1,938 | ||||||||||
Adjustments to reconcile net earnings to net cash from operating activities: | ||||||||||||||||||||
Depreciation, depletion and amortization | 638 | 615 | 625 | 581 | 528 | |||||||||||||||
Leasehold impairments | 3 | — | 2 | 2 | 7 | |||||||||||||||
Amortization of liabilities | (8 | ) | (7 | ) | (8 | ) | (8 | ) | (9 | ) | ||||||||||
Total (gains) losses on commodity derivatives | 76 | (64 | ) | 53 | (248 | ) | 170 | |||||||||||||
Cash settlements on commodity derivatives | 37 | 13 | (177 | ) | (363 | ) | (472 | ) | ||||||||||||
Gains on asset dispositions | (41 | ) | — | (29 | ) | — | (14 | ) | ||||||||||||
Deferred income tax expense | 119 | 80 | 265 | 445 | 305 | |||||||||||||||
Share-based compensation | 25 | 23 | 23 | 22 | 23 | |||||||||||||||
Other | (2 | ) | 2 | (1 | ) | 8 | 4 | |||||||||||||
Changes in assets and liabilities, net | (140 | ) | 12 | (46 | ) | (235 | ) | 198 | ||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net cash from operating activities | 1,405 | 1,677 | 1,911 | 2,104 | 2,678 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Cash flows from investing activities: | ||||||||||||||||||||
Capital expenditures | (1,079 | ) | (1,012 | ) | (804 | ) | (628 | ) | (573 | ) | ||||||||||
Acquisitions of property and equipment | (18 | ) | (13 | ) | (17 | ) | (2,465 | ) | (100 | ) | ||||||||||
Divestitures of property and equipment | 1 | 21 | — | 4 | 9 | |||||||||||||||
Distributions from investments | 9 | 8 | 9 | 7 | 15 | |||||||||||||||
Contributions to investments and other | (15 | ) | (37 | ) | (17 | ) | (16 | ) | (21 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net cash from investing activities | (1,102 | ) | (1,033 | ) | (829 | ) | (3,098 | ) | (670 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Cash flows from financing activities: | ||||||||||||||||||||
Repurchases of common stock | (228 | ) | (517 | ) | (57 | ) | (126 | ) | (324 | ) | ||||||||||
Dividends paid on common stock | (462 | ) | (596 | ) | (875 | ) | (1,007 | ) | (830 | ) | ||||||||||
Contributions from noncontrolling interests | 8 | — | — | — | — | |||||||||||||||
Distributions to noncontrolling interests | (13 | ) | (11 | ) | (8 | ) | (9 | ) | (5 | ) | ||||||||||
Shares exchanged for tax withholdings and other | (9 | ) | (87 | ) | — | (1 | ) | (12 | ) | |||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net cash from financing activities | (704 | ) | (1,211 | ) | (940 | ) | (1,143 | ) | (1,171 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Effect of exchange rate changes on cash | 2 | — | 2 | (10 | ) | (5 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net change in cash, cash equivalents and restricted cash | (399 | ) | (567 | ) | 144 | (2,147 | ) | 832 | ||||||||||||
Cash, cash equivalents and restricted cash at beginning of period | 887 | 1,454 | 1,310 | 3,457 | 2,625 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Cash, cash equivalents and restricted cash at end of period | $ | 488 | $ | 887 | $ | 1,454 | $ | 1,310 | $ | 3,457 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Reconciliation of cash, cash equivalents and restricted cash: | ||||||||||||||||||||
Cash and cash equivalents | $ | 372 | $ | 761 | $ | 1,314 | $ | 1,166 | $ | 3,300 | ||||||||||
Restricted cash | 116 | 126 | 140 | 144 | 157 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total cash, cash equivalents and restricted cash | $ | 488 | $ | 887 | $ | 1,454 | $ | 1,310 | $ | 3,457 | ||||||||||
|
|
|
|
|
|
|
|
|
|
5
PRODUCTION
2023 | 2022 | |||||||||||||||||||
Quarter 2 | Quarter 1 | Quarter 4 | Quarter 3 | Quarter 2 | ||||||||||||||||
Oil (MBbls/d) | ||||||||||||||||||||
Delaware Basin | 209 | 211 | 201 | 210 | 222 | |||||||||||||||
Eagle Ford | 45 | 40 | 42 | 19 | 19 | |||||||||||||||
Anadarko Basin | 15 | 15 | 15 | 13 | 14 | |||||||||||||||
Williston Basin | 36 | 36 | 37 | 35 | 27 | |||||||||||||||
Powder River Basin | 14 | 14 | 16 | 13 | 14 | |||||||||||||||
Other | 4 | 4 | 5 | 4 | 4 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total | 323 | 320 | 316 | 294 | 300 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Natural gas liquids (MBbls/d) | ||||||||||||||||||||
Delaware Basin | 105 | 97 | 101 | 108 | 111 | |||||||||||||||
Eagle Ford | 16 | 15 | 12 | 9 | 9 | |||||||||||||||
Anadarko Basin | 31 | 26 | 23 | 27 | 25 | |||||||||||||||
Williston Basin | 9 | 8 | 9 | 8 | 9 | |||||||||||||||
Powder River Basin | 2 | 2 | 3 | 2 | 2 | |||||||||||||||
Other | 1 | 1 | — | — | — | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total | 164 | 149 | 148 | 154 | 156 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Gas (MMcf/d) | ||||||||||||||||||||
Delaware Basin | 636 | 640 | 626 | 623 | 618 | |||||||||||||||
Eagle Ford | 86 | 82 | 84 | 63 | 60 | |||||||||||||||
Anadarko Basin | 254 | 237 | 238 | 224 | 212 | |||||||||||||||
Williston Basin | 59 | 54 | 64 | 71 | 52 | |||||||||||||||
Powder River Basin | 18 | 16 | 21 | 18 | 18 | |||||||||||||||
Other | 1 | 1 | 1 | 1 | 1 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total | 1,054 | 1,030 | 1,034 | 1,000 | 961 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total oil equivalent (MBoe/d) | ||||||||||||||||||||
Delaware Basin | 420 | 415 | 407 | 421 | 436 | |||||||||||||||
Eagle Ford | 74 | 68 | 68 | 39 | 38 | |||||||||||||||
Anadarko Basin | 89 | 81 | 77 | 77 | 74 | |||||||||||||||
Williston Basin | 56 | 53 | 57 | 55 | 45 | |||||||||||||||
Powder River Basin | 19 | 19 | 22 | 18 | 19 | |||||||||||||||
Other | 4 | 5 | 5 | 4 | 4 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total | 662 | 641 | 636 | 614 | 616 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
6
CAPITAL EXPENDITURES
(in millions) | 2023 | 2022 | ||||||||||||||||||
Quarter 2 | Quarter 1 | Quarter 4 | Quarter 3 | Quarter 2 | ||||||||||||||||
Delaware Basin | $ | 583 | $ | 572 | $ | 518 | $ | 444 | $ | 374 | ||||||||||
Eagle Ford | 179 | 188 | 160 | 38 | 37 | |||||||||||||||
Anadarko Basin | 67 | 66 | 59 | 55 | 42 | |||||||||||||||
Williston Basin | 89 | 73 | 90 | 57 | 21 | |||||||||||||||
Powder River Basin | 39 | 32 | 46 | 44 | 37 | |||||||||||||||
Other | 1 | 2 | 1 | 1 | 2 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total upstream capital | $ | 958 | $ | 933 | $ | 874 | $ | 639 | $ | 513 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Carbon capital | 30 | 27 | 20 | 27 | 22 | |||||||||||||||
Midstream and Corporate | 30 | 28 | 28 | 22 | 32 | |||||||||||||||
Acquisitions (1) | 18 | 13 | 13 | 2,534 | 13 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total capital | $ | 1,036 | $ | 1,001 | $ | 935 | $ | 3,222 | $ | 580 | ||||||||||
|
|
|
|
|
|
|
|
|
|
(1) | Q3 2022 includes $2,532 million related to Validus and RimRock acquisitions. |
SUPPLEMENTAL INFORMATION FOR CAPITAL EXPENDITURES
GROSS OPERATED SPUDS | ||||||||||||||||||||
2023 | 2022 | |||||||||||||||||||
Quarter 2 | Quarter 1 | Quarter 4 | Quarter 3 | Quarter 2 | ||||||||||||||||
Delaware Basin | 65 | 60 | 60 | 50 | 46 | |||||||||||||||
Eagle Ford | 18 | 23 | 31 | 7 | 4 | |||||||||||||||
Anadarko Basin | 9 | 19 | 8 | 13 | 14 | |||||||||||||||
Williston Basin | 8 | 6 | 9 | 10 | 5 | |||||||||||||||
Powder River Basin | 3 | 3 | 4 | 6 | 1 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total | 103 | 111 | 112 | 86 | 70 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
GROSS OPERATED WELLS TIED-IN | ||||||||||||||||||||
2023 | 2022 | |||||||||||||||||||
Quarter 2 | Quarter 1 | Quarter 4 | Quarter 3 | Quarter 2 | ||||||||||||||||
Delaware Basin | 76 | 42 | 55 | 59 | 52 | |||||||||||||||
Eagle Ford | 29 | 26 | 28 | 8 | 14 | |||||||||||||||
Anadarko Basin | 16 | 7 | 23 | 13 | 1 | |||||||||||||||
Williston Basin | 8 | 17 | 5 | 14 | — | |||||||||||||||
Powder River Basin | 2 | 5 | 3 | 9 | — | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total | 131 | 97 | 114 | 103 | 67 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
AVERAGE LATERAL LENGTH | ||||||||||||||||||||
(based on wells tied-in) | 2023 | 2022 | ||||||||||||||||||
Quarter 2 | Quarter 1 | Quarter 4 | Quarter 3 | Quarter 2 | ||||||||||||||||
Delaware Basin | 10,100’ | 9,900’ | 9,600’ | 10,900’ | 9,100’ | |||||||||||||||
Eagle Ford | 6,200’ | 6,700’ | 6,500’ | 7,800’ | 5,800’ | |||||||||||||||
Anadarko Basin | 9,100’ | 9,300’ | 8,700’ | 9,500’ | 10,100’ | |||||||||||||||
Williston Basin | 10,000’ | 11,500’ | 9,900’ | 10,500’ | — | |||||||||||||||
Powder River Basin | 15,000’ | 10,700’ | 9,600’ | 11,800’ | — | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total | 9,200’ | 9,300’ | 8,700’ | 10,500’ | 8,400’ | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
7
REALIZED PRICING
BENCHMARK PRICES
(average prices) | 2023 | 2022 | ||||||||||||||||||
Quarter 2 | Quarter 1 | Quarter 4 | Quarter 3 | Quarter 2 | ||||||||||||||||
Oil ($/Bbl) - West Texas Intermediate (Cushing) | $ | 73.76 | $ | 76.17 | $ | 82.53 | $ | 91.87 | $ | 108.70 | ||||||||||
Natural Gas ($/Mcf) - Henry Hub | $ | 2.09 | $ | 3.44 | $ | 6.26 | $ | 8.20 | $ | 7.17 | ||||||||||
NGL ($/Bbl) - Mont Belvieu Blended | $ | 23.99 | $ | 29.48 | $ | 30.46 | $ | 39.67 | $ | 46.44 | ||||||||||
REALIZED PRICES | ||||||||||||||||||||
2023 | 2022 | |||||||||||||||||||
Quarter 2 | Quarter 1 | Quarter 4 | Quarter 3 | Quarter 2 | ||||||||||||||||
Oil (Per Bbl) | ||||||||||||||||||||
Delaware Basin | $ | 71.86 | $ | 74.43 | $ | 82.48 | $ | 93.60 | $ | 109.05 | ||||||||||
Eagle Ford | 72.36 | 74.06 | 83.23 | 91.53 | 109.77 | |||||||||||||||
Anadarko Basin | 71.52 | 74.14 | 82.57 | 91.42 | 108.15 | |||||||||||||||
Williston Basin | 70.80 | 74.09 | 81.05 | 91.30 | 109.85 | |||||||||||||||
Powder River Basin | 70.75 | 74.30 | 81.29 | 91.33 | 104.75 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Realized price without hedges | 71.74 | 74.32 | 82.31 | 92.98 | 108.93 | |||||||||||||||
Cash settlements | — | (0.10 | ) | (4.87 | ) | (8.60 | ) | (13.13 | ) | |||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Realized price, including cash settlements | $ | 71.74 | $ | 74.22 | $ | 77.44 | $ | 84.38 | $ | 95.80 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Natural gas liquids (Per Bbl) | ||||||||||||||||||||
Delaware Basin | $ | 18.07 | $ | 23.72 | $ | 23.68 | $ | 34.37 | $ | 40.75 | ||||||||||
Eagle Ford | 20.22 | 26.18 | 29.06 | 35.55 | 41.98 | |||||||||||||||
Anadarko Basin | 19.42 | 27.88 | 29.58 | 35.52 | 41.64 | |||||||||||||||
Williston Basin | 2.52 | 8.97 | 7.97 | 25.41 | 23.88 | |||||||||||||||
Powder River Basin | 24.52 | 35.72 | 34.91 | 44.85 | 55.62 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Realized price without hedges | 17.79 | 24.12 | 24.32 | 34.44 | 40.28 | |||||||||||||||
Cash settlements | — | — | — | — | — | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Realized price, including cash settlements | $ | 17.79 | $ | 24.12 | $ | 24.32 | $ | 34.44 | $ | 40.28 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Gas (Per Mcf) | ||||||||||||||||||||
Delaware Basin | $ | 1.18 | $ | 1.90 | $ | 4.30 | $ | 7.06 | $ | 6.41 | ||||||||||
Eagle Ford | 1.80 | 2.99 | 5.02 | 7.53 | 7.10 | |||||||||||||||
Anadarko Basin | 1.72 | 3.14 | 5.37 | 8.89 | 7.11 | |||||||||||||||
Williston Basin | (0.85 | ) | 1.57 | 0.44 | 3.23 | 1.56 | ||||||||||||||
Powder River Basin | 2.41 | 4.25 | 5.57 | 8.23 | 7.93 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Realized price without hedges | 1.27 | 2.29 | 4.39 | 7.25 | 6.37 | |||||||||||||||
Cash settlements | 0.39 | 0.18 | (0.38 | ) | (1.42 | ) | (1.31 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Realized price, including cash settlements | $ | 1.66 | $ | 2.47 | $ | 4.01 | $ | 5.83 | $ | 5.06 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total oil equivalent (Per Boe) | ||||||||||||||||||||
Delaware Basin | $ | 42.05 | $ | 46.35 | $ | 53.34 | $ | 65.80 | $ | 75.02 | ||||||||||
Eagle Ford | 49.69 | 52.81 | 62.92 | 65.49 | 75.07 | |||||||||||||||
Anadarko Basin | 24.04 | 32.16 | 41.25 | 53.72 | 54.46 | |||||||||||||||
Williston Basin | 45.94 | 52.94 | 54.51 | 66.65 | 73.15 | |||||||||||||||
Powder River Basin | 56.33 | 63.01 | 67.59 | 78.58 | 89.84 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Realized price without hedges | 41.39 | 46.44 | 53.66 | 64.89 | 73.13 | |||||||||||||||
Cash settlements | 0.61 | 0.22 | (3.04 | ) | (6.41 | ) | (8.43 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Realized price, including cash settlements | $ | 42.00 | $ | 46.66 | $ | 50.62 | $ | 58.48 | $ | 64.70 | ||||||||||
|
|
|
|
|
|
|
|
|
|
8
ASSET MARGINS
BENCHMARK PRICES | ||||||||||||||||||||
(average prices) | 2023 | 2022 | ||||||||||||||||||
Quarter 2 | Quarter 1 | Quarter 4 | Quarter 3 | Quarter 2 | ||||||||||||||||
Oil ($/Bbl) - West Texas Intermediate (Cushing) | $ | 73.76 | $ | 76.17 | $ | 82.53 | $ | 91.87 | $ | 108.70 | ||||||||||
Natural Gas ($/Mcf) - Henry Hub | $ | 2.09 | $ | 3.44 | $ | 6.26 | $ | 8.20 | $ | 7.17 | ||||||||||
NGL ($/Bbl) - Mont Belvieu Blended | $ | 23.99 | $ | 29.48 | $ | 30.46 | $ | 39.67 | $ | 46.44 | ||||||||||
PER-UNIT CASH MARGIN BY ASSET (per Boe) | ||||||||||||||||||||
2023 | 2022 | |||||||||||||||||||
Quarter 2 | Quarter 1 | Quarter 4 | Quarter 3 | Quarter 2 | ||||||||||||||||
Delaware Basin | ||||||||||||||||||||
Realized price | $ | 42.05 | $ | 46.35 | $ | 53.34 | $ | 65.80 | $ | 75.02 | ||||||||||
Lease operating expenses | (4.96 | ) | (4.58 | ) | (4.55 | ) | (4.39 | ) | (3.98 | ) | ||||||||||
Gathering, processing & transportation | (2.63 | ) | (2.63 | ) | (2.52 | ) | (2.40 | ) | (2.37 | ) | ||||||||||
Production & property taxes | (3.18 | ) | (3.43 | ) | (3.89 | ) | (4.81 | ) | (5.35 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Field-level cash margin | $ | 31.28 | $ | 35.71 | $ | 42.38 | $ | 54.20 | $ | 63.32 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Eagle Ford | ||||||||||||||||||||
Realized price | $ | 49.69 | $ | 52.81 | $ | 62.92 | $ | 65.49 | $ | 75.07 | ||||||||||
Lease operating expenses | (6.18 | ) | (6.32 | ) | (5.63 | ) | (4.94 | ) | (4.98 | ) | ||||||||||
Gathering, processing & transportation | (1.67 | ) | (1.49 | ) | (3.08 | ) | (4.94 | ) | (6.39 | ) | ||||||||||
Production & property taxes | (2.97 | ) | (3.25 | ) | (2.97 | ) | (3.79 | ) | (3.99 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Field-level cash margin | $ | 38.87 | $ | 41.75 | $ | 51.24 | $ | 51.82 | $ | 59.71 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Anadarko Basin | ||||||||||||||||||||
Realized price | $ | 24.04 | $ | 32.16 | $ | 41.25 | $ | 53.72 | $ | 54.46 | ||||||||||
Lease operating expenses | (3.13 | ) | (3.41 | ) | (3.59 | ) | (3.46 | ) | (3.49 | ) | ||||||||||
Gathering, processing & transportation | (5.97 | ) | (5.93 | ) | (6.84 | ) | (6.91 | ) | (6.65 | ) | ||||||||||
Production & property taxes | (1.22 | ) | (1.73 | ) | (2.29 | ) | (3.26 | ) | (3.17 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Field-level cash margin | $ | 13.72 | $ | 21.09 | $ | 28.53 | $ | 40.09 | $ | 41.15 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Williston Basin | ||||||||||||||||||||
Realized price | $ | 45.94 | $ | 52.94 | $ | 54.51 | $ | 66.65 | $ | 73.15 | ||||||||||
Lease operating expenses | (13.43 | ) | (13.25 | ) | (9.93 | ) | (9.97 | ) | (9.40 | ) | ||||||||||
Gathering, processing & transportation | (2.29 | ) | (2.19 | ) | (1.92 | ) | (2.40 | ) | (2.44 | ) | ||||||||||
Production & property taxes | (4.68 | ) | (4.85 | ) | (5.64 | ) | (6.33 | ) | (6.75 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Field-level cash margin | $ | 25.54 | $ | 32.65 | $ | 37.02 | $ | 47.95 | $ | 54.56 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Powder River Basin | ||||||||||||||||||||
Realized price | $ | 56.33 | $ | 63.01 | $ | 67.59 | $ | 78.58 | $ | 89.84 | ||||||||||
Lease operating expenses | (10.03 | ) | (11.07 | ) | (7.15 | ) | (7.03 | ) | (7.04 | ) | ||||||||||
Gathering, processing & transportation | (2.97 | ) | (2.73 | ) | (2.98 | ) | (3.24 | ) | (3.50 | ) | ||||||||||
Production & property taxes | (6.79 | ) | (7.78 | ) | (8.13 | ) | (9.50 | ) | (10.89 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Field-level cash margin | $ | 36.54 | $ | 41.43 | $ | 49.33 | $ | 58.81 | $ | 68.41 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Devon - Total | ||||||||||||||||||||
Realized price | $ | 41.39 | $ | 46.44 | $ | 53.66 | $ | 64.89 | $ | 73.13 | ||||||||||
Lease operating expenses | (5.86 | ) | (5.67 | ) | (5.26 | ) | (5.02 | ) | (4.56 | ) | ||||||||||
Gathering, processing & transportation | (2.94 | ) | (2.88 | ) | (3.05 | ) | (3.13 | ) | (3.15 | ) | ||||||||||
Production & property taxes | (3.14 | ) | (3.47 | ) | (3.91 | ) | (4.84 | ) | (5.30 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Field-level cash margin | $ | 29.45 | $ | 34.42 | $ | 41.44 | $ | 51.90 | $ | 60.12 | ||||||||||
|
|
|
|
|
|
|
|
|
|
9
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 tables summarize the effects of these items on second- quarter and first-quarter 2023 earnings.
Quarter Ended June 30, 2023 | ||||||||||||||||
Before-tax | After-tax | After NCI | Per Diluted Share | |||||||||||||
Total | ||||||||||||||||
Earnings (GAAP) | $ | 897 | $ | 698 | $ | 690 | $ | 1.07 | ||||||||
Adjustments: | ||||||||||||||||
Asset dispositions | (41 | ) | (31 | ) | (31 | ) | (0.05 | ) | ||||||||
Asset and exploration impairments | 3 | 2 | 2 | 0.01 | ||||||||||||
Deferred tax asset valuation allowance | — | 10 | 10 | 0.02 | ||||||||||||
Fair value changes in financial instruments | 112 | 84 | 84 | 0.13 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Core earnings (Non-GAAP) | $ | 971 | $ | 763 | $ | 755 | $ | 1.18 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Quarter Ended March 31, 2023 | ||||||||||||||||
Before-tax | After-tax | After NCI | Per Diluted Share | |||||||||||||
Total | ||||||||||||||||
Earnings (GAAP) | $ | 1,224 | $ | 1,003 | $ | 995 | $ | 1.53 | ||||||||
Adjustments: | ||||||||||||||||
Deferred tax asset valuation allowance | — | (3 | ) | (3 | ) | (0.01 | ) | |||||||||
Fair value changes in financial instruments | (53 | ) | (40 | ) | (40 | ) | (0.06 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Core earnings (Non-GAAP) | $ | 1,171 | $ | 960 | $ | 952 | $ | 1.46 | ||||||||
|
|
|
|
|
|
|
|
10
EBITDAX
Devon believes EBITDAX provides information useful in assessing operating and financial performance across periods. Devon computes EBITDAX as net earnings before financing costs, net; income tax expense; exploration expenses; depreciation, depletion and amortization; asset disposition gains and losses; non-cash share-based compensation; non-cash valuation changes for derivatives and financial instruments; 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.
Q2 ‘23 | Q1 ‘23 | Q4 ‘22 | Q3 ‘22 | TTM | Q2 ‘22 | |||||||||||||||||||
Net earnings (GAAP) | $ | 698 | $ | 1,003 | $ | 1,204 | $ | 1,900 | $ | 4,805 | $ | 1,938 | ||||||||||||
Financing costs, net | 78 | 72 | 73 | 67 | 290 | 84 | ||||||||||||||||||
Income tax expense | 199 | 221 | 349 | 565 | 1,334 | 557 | ||||||||||||||||||
Exploration expenses | 10 | 3 | 13 | 4 | 30 | 10 | ||||||||||||||||||
Depreciation, depletion and amortization | 638 | 615 | 625 | 581 | 2,459 | 528 | ||||||||||||||||||
Asset dispositions | (41 | ) | — | (29 | ) | — | (70 | ) | (14 | ) | ||||||||||||||
Share-based compensation | 25 | 23 | 23 | 22 | 93 | 22 | ||||||||||||||||||
Derivative & financial instrument non-cash val. changes | 113 | (51 | ) | (122 | ) | (613 | ) | (673 | ) | (302 | ) | |||||||||||||
Accretion on discounted liabilities and other | 10 | 5 | (6 | ) | (38 | ) | (29 | ) | 10 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
EBITDAX (Non-GAAP) | $ | 1,730 | $ | 1,891 | $ | 2,130 | $ | 2,488 | $ | 8,239 | $ | 2,833 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
NET DEBT
Devon defines net debt as debt (includes short-term and long-term debt) less cash, cash equivalents and restricted cash. 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.
Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | ||||||||||||||||
Total debt (GAAP) | $ | 6,413 | $ | 6,422 | $ | 6,440 | $ | 6,451 | $ | 6,461 | ||||||||||
Less: | ||||||||||||||||||||
Cash, cash equivalents and restricted cash | (488 | ) | (887 | ) | (1,454 | ) | (1,310 | ) | (3,457 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net debt (Non-GAAP) | $ | 5,925 | $ | 5,535 | $ | 4,986 | $ | 5,141 | $ | 3,004 | ||||||||||
|
|
|
|
|
|
|
|
|
|
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.
Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | ||||||||||||||||
Net debt (Non-GAAP) | $ | 5,925 | $ | 5,535 | $ | 4,986 | $ | 5,141 | $ | 3,004 | ||||||||||
EBITDAX (Non-GAAP) (1) | $ | 8,239 | $ | 9,342 | $ | 9,586 | $ | 9,267 | $ | 8,413 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net debt-to-EBITDAX (Non-GAAP) | 0.7 | 0.6 | 0.5 | 0.6 | 0.4 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
(1) | EBITDAX is an annualized measure using a trailing twelve-month calculation. |
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 Jun. 30, 2023 | Quarter Ended Mar. 31, 2023 | Quarter Ended Dec. 31, 2022 | Quarter Ended Sep. 30, 2022 | Quarter Ended Jun. 30, 2022 | ||||||||||||||||
Total operating cash flow (GAAP) | $ | 1,405 | $ | 1,677 | $ | 1,911 | $ | 2,104 | $ | 2,678 | ||||||||||
Less capital expenditures: | (1,079 | ) | (1,012 | ) | (804 | ) | (628 | ) | (573 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Free cash flow (Non-GAAP) | $ | 326 | $ | 665 | $ | 1,107 | $ | 1,476 | $ | 2,105 | ||||||||||
|
|
|
|
|
|
|
|
|
|
11
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.
Quarter Ended Jun. 30, 2023 | Quarter Ended Mar. 31, 2023 | Year Ended Dec. 31, 2022 | ||||||||||
Capital expenditures (excludes acquisitions) | $ | 1,018 | $ | 988 | $ | 2,740 | ||||||
Operating cash flow | $ | 1,405 | $ | 1,677 | $ | 8,530 | ||||||
|
|
|
|
|
| |||||||
Reinvestment rate (Non-GAAP) | 72 | % | 59 | % | 32 | % | ||||||
|
|
|
|
|
|
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 Jun. 30, 2023 | ||||
Operating cash flow (GAAP) | $ | 1,405 | ||
Changes in assets and liabilities, net | 140 | |||
|
| |||
Adjusted cash flow (Non-GAAP) | 1,545 | |||
Capital expenditures (Accrued) | (1,036 | ) | ||
|
| |||
Adjusted free cash flow (Non-GAAP) | 509 | |||
Fixed quarterly dividend | (128 | ) | ||
|
| |||
Excess free cash flow (Non-GAAP) | $ | 381 | ||
~ 50% Pay out (Board Discretion: Up to 50%) | 50 | % | ||
|
| |||
Total variable dividend | $ | 186 | ||
|
|
12
THIRD-QUARTER AND FULL-YEAR 2023 GUIDANCE |
PRODUCTION GUIDANCE
Quarter 3 | Full Year | |||||||||||||||
Low | High | Low | High | |||||||||||||
Oil (MBbls/d) | 322 | 330 | 320 | 326 | ||||||||||||
Natural gas liquids (MBbls/d) | 164 | 170 | 156 | 162 | ||||||||||||
Gas (MMcf/d) | 1,030 | 1,080 | 1,000 | 1,050 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total oil equivalent (MBoe/d) | 658 | 680 | 643 | 663 | ||||||||||||
|
|
|
|
|
|
|
|
CAPITAL EXPENDITURES GUIDANCE
Quarter 3 | Full Year | |||||||||||||||
(in millions) | Low | High | Low | High | ||||||||||||
Upstream capital | $ | 800 | $ | 840 | $ | 3,440 | $ | 3,560 | ||||||||
Carbon capital | 25 | 35 | 80 | 120 | ||||||||||||
Midstream & other capital | 30 | 50 | 80 | 120 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total capital | $ | 855 | $ | 925 | $ | 3,600 | $ | 3,800 | ||||||||
|
|
|
|
|
|
|
|
PRICE REALIZATIONS GUIDANCE
Quarter 3 | 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 | % | 70 | % |
OTHER GUIDANCE ITEMS
Quarter 3 | Full Year | |||||||||||||||
($millions, except Boe and %) | Low | High | Low | High | ||||||||||||
Marketing & midstream operating profit | $ | (15 | ) | $ | (5 | ) | $ | (60 | ) | $ | (50 | ) | ||||
LOE & GP&T per BOE (1) | $ | 8.80 | $ | 9.00 | $ | 8.60 | $ | 9.00 | ||||||||
Production & property taxes as % of upstream sales | 7.0 | % | 8.0 | % | 7.0 | % | 8.0 | % | ||||||||
Exploration expenses | $ | — | $ | 5 | $ | 5 | $ | 15 | ||||||||
Depreciation, depletion and amortization | $ | 630 | $ | 670 | $ | 2,500 | $ | 2,600 | ||||||||
General & administrative expenses | $ | 95 | $ | 105 | $ | 390 | $ | 410 | ||||||||
Net financing costs, net | $ | 80 | $ | 90 | $ | 290 | $ | 310 | ||||||||
Other expenses | $ | — | $ | 5 | $ | — | $ | 20 |
(1) | LOE per BOE is expected to increase due to a recently executed water handling joint venture in the Delaware Basin. |
INCOME TAX GUIDANCE
Quarter 3 | Full Year | |||||||||||||||
(% of pre-tax earnings) | Low | High | Low | High | ||||||||||||
Current income tax rate | 11 | % | 13 | % | 10 | % | 12 | % | ||||||||
Deferred income tax rate | 9 | % | 11 | % | 10 | % | 12 | % | ||||||||
|
|
|
| |||||||||||||
Total income tax rate | ~22% | ~22% | ||||||||||||||
|
|
|
|
1
CONTINGENT PAYMENTS FOR BARNETT SHALE DIVESTITURE (2 more years through 2024) |
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) | |||||||||||
Q3 2023 | 13,293 | $ | 71.10 | 84,500 | $ | 69.41 | $ | 94.84 | ||||||||
Q4 2023 | 19,000 | $ | 72.09 | 81,000 | $ | 69.63 | $ | 94.29 | ||||||||
Q1-Q4 2024 | 4,724 | $ | 72.09 | 32,486 | $ | 60.15 | $ | 84.71 |
Oil Basis Swaps
Period | Index | Volume (Bbls/d) | Weighted Average Differential to WTI ($/Bbl) | |||||
Q3-Q4 2023 | Midland Sweet | 66,500 | $ | 1.11 | ||||
Q1-Q4 2024 | Midland Sweet | 61,500 | $ | 1.17 |
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 2023 | 108,000 | $ | 3.30 | 195,000 | $ | 3.61 | $ | 7.29 | ||||||||
Q4 2023 | 113,000 | $ | 3.31 | 147,000 | $ | 3.67 | $ | 7.62 | ||||||||
Q1-Q4 2024 | 99,426 | $ | 3.31 | 40,527 | $ | 3.78 | $ | 7.05 |
Natural Gas Basis Swaps
Period | Index | Volume (MMBtu/d) | Weighted Average Differential to Henry Hub ($/MMBtu) | |||||
Q3 - Q4 2023 | El Paso Permian | 145,000 | $ | (1.58 | ) | |||
Q3 - Q4 2023 | Houston Ship Channel | 140,000 | $ | (0.19 | ) | |||
Q3 - Q4 2023 | WAHA | 70,000 | $ | (0.51 | ) | |||
Q1-Q4 2024 | El Paso Permian | 34,863 | $ | (0.91 | ) | |||
Q1-Q4 2024 | Houston Ship Channel | 90,000 | $ | (0.25 | ) | |||
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 July 27, 2023.
2