Devon Energy (DVN) 8-K Devon Energy Reports First-Quarter 2024 Results and Declares Quarterly Dividend

Exhibit 99.2

Devon Energy First-Quarter 2024

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 and EBITDAX		10
Net Debt, Net Debt-to-EBITDAX, Free Cash Flow, Adjusted Free Cash Flow and Reinvestment Rate		11

1

CONSOLIDATED STATEMENTS OF EARNINGS

(in millions, except per share amounts)	2024			2023
	Quarter 1			Quarter 4		Quarter 3			Quarter 2			Quarter 1
Oil, gas and NGL sales	$	2,629		$	2,737	$	2,882		$	2,493		$	2,679
Oil, gas and NGL derivatives (1)		(145	)		324		(194	)		(76	)		64
Marketing and midstream revenues		1,112			1,084		1,148			1,037			1,080
Total revenues		3,596			4,145		3,836			3,454			3,823
Production expenses (2)		751			759		757			719			693
Exploration expenses		9			4		3			10			3
Marketing and midstream expenses		1,133			1,093		1,160			1,051			1,105
Depreciation, depletion and amortization		722			650		651			638			615
Asset dispositions		1			11		—			(41	)		—
General and administrative expenses		114			111		99			92			106
Financing costs, net (3)		76			77		81			78			72
Other, net		22			10		13			10			5
Total expenses		2,828			2,715		2,764			2,557			2,599
Earnings before income taxes		768			1,430		1,072			897			1,224
Income tax expense (4)		159			269		152			199			221
Net earnings		609			1,161		920			698			1,003
Net earnings attributable to noncontrolling interests		13			9		10			8			8
Net earnings attributable to Devon	$	596		$	1,152	$	910		$	690		$	995
Net earnings per share:
Basic net earnings per share	$	0.95		$	1.81	$	1.43		$	1.08		$	1.53
Diluted net earnings per share	$	0.94		$	1.81	$	1.42		$	1.07		$	1.53
Weighted average common shares outstanding:
Basic		629			635		637			638			645
Diluted		632			638		639			639			647

2

SUPPLEMENTAL INFORMATION FOR CONSOLIDATED STATEMENTS OF EARNINGS

(1) OIL, GAS AND NGL DERIVATIVES

(in millions)	2024			2023
	Quarter 1			Quarter 4		Quarter 3			Quarter 2			Quarter 1
Derivative cash settlements	$	24		$	8	$	(11	)	$	37		$	13
Derivative valuation changes		(169	)		316		(183	)		(113	)		51
Oil, gas and NGL derivatives	$	(145	)	$	324	$	(194	)	$	(76	)	$	64

(2) PRODUCTION EXPENSES

(in millions)	2024		2023
	Quarter 1		Quarter 4		Quarter 3		Quarter 2		Quarter 1
Lease operating expense	$	380	$	381	$	367	$	353	$	327
Gathering, processing & transportation		180		181		178		177		166
Production taxes		175		182		191		165		175
Property taxes		16		15		21		24		25
Production expenses	$	751	$	759	$	757	$	719	$	693

(3) FINANCING COSTS, NET

(in millions)	2024			2023
	Quarter 1			Quarter 4			Quarter 3			Quarter 2			Quarter 1
Interest based on outstanding debt	$	87		$	87		$	93		$	96		$	93
Interest income		(13	)		(12	)		(11	)		(15	)		(17	)
Other		2			2			(1	)		(3	)		(4	)
Financing costs, net	$	76		$	77		$	81		$	78		$	72

(4) INCOME TAX EXPENSE

(in millions)	2024		2023
	Quarter 1		Quarter 4		Quarter 3		Quarter 2		Quarter 1
Current expense	$	119	$	105	$	139	$	80	$	141
Deferred expense		40		164		13		119		80
Income tax expense	$	159	$	269	$	152	$	199	$	221

3

CONSOLIDATED BALANCE SHEETS

(in millions)	2024			2023
	Quarter 1			Quarter 4			Quarter 3			Quarter 2			Quarter 1
Current assets:
Cash, cash equivalents and restricted cash	$	1,149		$	875		$	761		$	488		$	887
Accounts receivable		1,670			1,573			1,853			1,519			1,615
Inventory		234			249			233			201			212
Other current assets		345			460			365			397			475
Total current assets		3,398			3,157			3,212			2,605			3,189
Oil and gas property and equipment, based on successful efforts accounting, net		18,033			17,825			17,563			17,317			16,932
Other property and equipment, net		1,551			1,503			1,468			1,446			1,583
Total property and equipment, net		19,584			19,328			19,031			18,763			18,515
Goodwill		753			753			753			753			753
Right-of-use assets		276			267			261			266			219
Investments		713			666			671			675			469
Other long-term assets		254			319			313			293			275
Total assets	$	24,978		$	24,490		$	24,241		$	23,355		$	23,420
Current liabilities:
Accounts payable	$	879		$	760		$	812		$	843		$	935
Revenues and royalties payable		1,268			1,222			1,434			1,199			1,266
Short-term debt		479			483			487			244			247
Income taxes payable		189			67			58			1			154
Other current liabilities		451			417			539			382			329
Total current liabilities		3,266			2,949			3,330			2,669			2,931
Long-term debt		5,668			5,672			5,675			6,169			6,175
Lease liabilities		301			295			290			299			256
Asset retirement obligations		683			643			641			548			546
Other long-term liabilities		841			876			850			858			866
Deferred income taxes		1,878			1,838			1,676			1,662			1,543
Stockholders’ equity:
Common stock		63			64			64			64			64
Additional paid-in capital		5,718			5,939			6,153			6,131			6,344
Retained earnings		6,509			6,195			5,535			4,940			4,712
Accumulated other comprehensive loss		(123	)		(124	)		(113	)		(114	)		(115	)
Treasury stock		—			(13	)		—			—			(28	)
Total stockholders’ equity attributable to Devon		12,167			12,061			11,639			11,021			10,977
Noncontrolling interests		174			156			140			129			126
Total equity		12,341			12,217			11,779			11,150			11,103
Total liabilities and equity	$	24,978		$	24,490		$	24,241		$	23,355		$	23,420

4

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in millions)	2024			2023
	Quarter 1			Quarter 4			Quarter 3			Quarter 2			Quarter 1
Cash flows from operating activities:
Net earnings	$	609		$	1,161		$	920		$	698		$	1,003
Adjustments to reconcile net earnings to net cash from operating activities:
Depreciation, depletion and amortization		722			650			651			638			615
Leasehold impairments		—			1			1			3			—
Accretion (amortization) of liabilities		—			1			(2	)		(8	)		(7	)
Total (gains) losses on commodity derivatives		145			(324	)		194			76			(64	)
Cash settlements on commodity derivatives		24			8			(11	)		37			13
(Gains) losses on asset dispositions		1			11			—			(41	)		—
Deferred income tax expense		40			164			13			119			80
Share-based compensation		24			23			22			25			23
Other		3			(3	)		(2	)		(2	)		2
Changes in assets and liabilities, net		170			45			(61	)		(140	)		12
Net cash from operating activities		1,738			1,737			1,725			1,405			1,677
Cash flows from investing activities:
Capital expenditures		(894	)		(910	)		(882	)		(1,079	)		(1,012	)
Acquisitions of property and equipment		(8	)		(10	)		(23	)		(18	)		(13	)
Divestitures of property and equipment		17			3			1			1			21
Distributions from investments		11			8			7			9			8
Contributions to investments and other		(47	)		(1	)		—			(15	)		(37	)
Net cash from investing activities		(921	)		(910	)		(897	)		(1,102	)		(1,033	)
Cash flows from financing activities:
Repayments of long-term debt		—			—			(242	)		—			—
Repurchases of common stock		(205	)		(234	)		—			(228	)		(517	)
Dividends paid on common stock		(299	)		(488	)		(312	)		(462	)		(596	)
Contributions from noncontrolling interests		12			19			10			8			—
Distributions to noncontrolling interests		(7	)		(12	)		(9	)		(13	)		(11	)
Shares exchanged for tax withholdings and other		(42	)		(1	)		—			(9	)		(87	)
Net cash from financing activities		(541	)		(716	)		(553	)		(704	)		(1,211	)
Effect of exchange rate changes on cash		(2	)		3			(2	)		2			—
Net change in cash, cash equivalents and restricted cash		274			114			273			(399	)		(567	)
Cash, cash equivalents and restricted cash at beginning of period		875			761			488			887			1,454
Cash, cash equivalents and restricted cash at end of period	$	1,149		$	875		$	761		$	488		$	887
Reconciliation of cash, cash equivalents and restricted cash:
Cash and cash equivalents	$	1,126		$	853		$	654		$	372		$	761
Restricted cash		23			22			107			116			126
Total cash, cash equivalents and restricted cash	$	1,149		$	875		$	761		$	488		$	887

5

PRODUCTION

	2024		2023
	Quarter 1		Quarter 4		Quarter 3		Quarter 2		Quarter 1
Oil (MBbls/d)
Delaware Basin		208		208		215		209		211
Eagle Ford		43		43		40		45		40
Anadarko Basin		11		13		14		15		15
Williston Basin		40		36		35		36		36
Powder River Basin		13		13		13		14		14
Other		4		4		4		4		4
Total		319		317		321		323		320
Natural gas liquids (MBbls/d)
Delaware Basin		113		112		112		105		97
Eagle Ford		14		15		15		16		15
Anadarko Basin		26		29		27		31		26
Williston Basin		10		10		9		9		8
Powder River Basin		2		3		2		2		2
Other		—		—		1		1		1
Total		165		169		166		164		149
Gas (MMcf/d)
Delaware Basin		695		673		680		636		640
Eagle Ford		79		81		78		86		82
Anadarko Basin		223		225		235		254		237
Williston Basin		63		61		58		59		54
Powder River Basin		18		20		18		18		16
Other		1		1		1		1		1
Total		1,079		1,061		1,070		1,054		1,030
Total oil equivalent (MBoe/d)
Delaware Basin		437		433		440		420		415
Eagle Ford		70		72		68		74		68
Anadarko Basin		74		79		80		89		81
Williston Basin		61		55		54		56		53
Powder River Basin		18		19		19		19		19
Other		4		4		4		4		5
Total		664		662		665		662		641

6

CAPITAL EXPENDITURES

(in millions)	2024		2023
	Quarter 1		Quarter 4		Quarter 3		Quarter 2		Quarter 1
Delaware Basin	$	555	$	506	$	503	$	583	$	572
Eagle Ford		156		194		198		179		188
Anadarko Basin		59		51		13		67		66
Williston Basin		27		55		69		89		73
Powder River Basin		43		55		45		39		32
Other		2		3		2		1		2
Total upstream capital	$	842	$	864	$	830	$	958	$	933
Carbon capital		32		31		25		30		27
Midstream and Corporate		63		45		41		30		28
Acquisitions		8		11		23		18		13
Total capital	$	945	$	951	$	919	$	1,036	$	1,001

SUPPLEMENTAL INFORMATION FOR CAPITAL EXPENDITURES

GROSS OPERATED SPUDS

	2024		2023
	Quarter 1		Quarter 4		Quarter 3		Quarter 2		Quarter 1
Delaware Basin		76		60		64		65		60
Eagle Ford		30		26		28		18		23
Anadarko Basin		4		17		10		9		19
Williston Basin		1		—		7		8		6
Powder River Basin		3		5		4		3		3
Total		114		108		113		103		111

GROSS OPERATED WELLS TIED-IN

	2024		2023
	Quarter 1		Quarter 4		Quarter 3		Quarter 2		Quarter 1
Delaware Basin		59		62		59		76		42
Eagle Ford		26		24		13		29		26
Anadarko Basin		5		4		—		16		7
Williston Basin		10		6		6		8		17
Powder River Basin		2		4		3		2		5
Total		102		100		81		131		97

NET OPERATED WELLS TIED-IN

	2024		2023
	Quarter 1		Quarter 4		Quarter 3		Quarter 2		Quarter 1
Delaware Basin		50		47		49		61		40
Eagle Ford		21		20		12		25		18
Anadarko Basin		2		1		—		7		3
Williston Basin		10		3		4		6		15
Powder River Basin		2		4		3		2		4
Total		85		75		68		101		80

AVERAGE LATERAL LENGTH

(based on wells tied-in)	2024		2023
	Quarter 1		Quarter 4		Quarter 3		Quarter 2		Quarter 1
Delaware Basin		10,300’		10,300’		9,700’		10,100’		9,900’
Eagle Ford		6,700’		7,900’		5,000’		6,200’		6,700’
Anadarko Basin		10,000’		12,500’		—		9,100’		9,300’
Williston Basin		9,600’		12,300’		12,300’		10,000’		11,500’
Powder River Basin		9,600’		9,600’		13,300’		15,000’		10,700’
Total		9,300’		9,900’		9,300’		9,200’		9,300’

7

REALIZED PRICING

BENCHMARK PRICES
(average prices)	2024			2023
	Quarter 1			Quarter 4			Quarter 3			Quarter 2		Quarter 1
Oil ($/Bbl) - West Texas Intermediate (Cushing)	$	77.01		$	78.48		$	82.06		$	73.76	$	76.17
Natural Gas ($/Mcf) - Henry Hub	$	2.25		$	2.88		$	2.54		$	2.09	$	3.44
NGL ($/Bbl) - Mont Belvieu Blended	$	27.51		$	25.52		$	26.62		$	23.99	$	29.48
REALIZED PRICES
	2024			2023
	Quarter 1			Quarter 4			Quarter 3			Quarter 2		Quarter 1
Oil (Per Bbl)
Delaware Basin	$	76.23		$	77.75		$	80.72		$	71.86	$	74.43
Eagle Ford		76.51			78.51			80.85			72.36		74.06
Anadarko Basin		74.91			77.09			79.86			71.52		74.14
Williston Basin		71.13			74.26			79.50			70.80		74.09
Powder River Basin		71.93			74.58			78.51			70.75		74.30
Realized price without hedges		75.40			77.32			80.48			71.74		74.32
Cash settlements		(0.25	)		(0.34	)		(0.67	)		—		(0.10	)
Realized price, including cash settlements	$	75.15		$	76.98		$	79.81		$	71.74	$	74.22
Natural gas liquids (Per Bbl)
Delaware Basin	$	20.55		$	19.93		$	20.76		$	18.07	$	23.72
Eagle Ford		23.67			22.67			23.70			20.22		26.18
Anadarko Basin		24.77			21.44			23.37			19.42		27.88
Williston Basin		6.27			2.95			4.09			2.52		8.97
Powder River Basin		32.91			28.80			29.63			24.52		35.72
Realized price without hedges		20.81			19.67			20.72			17.79		24.12
Cash settlements		(0.08	)		—			—			—		—
Realized price, including cash settlements	$	20.73		$	19.67		$	20.72		$	17.79	$	24.12
Gas (Per Mcf)
Delaware Basin	$	1.19		$	1.76		$	1.94		$	1.18	$	1.90
Eagle Ford		1.89			2.44			2.31			1.80		2.99
Anadarko Basin		1.92			2.38			2.17			1.72		3.14
Williston Basin		N/M			N/M			N/M			N/M		1.57
Powder River Basin		2.29			2.52			2.53			2.41		4.25
Realized price without hedges		1.30			1.83			1.92			1.27		2.29
Cash settlements		0.32			0.19			0.09			0.39		0.18
Realized price, including cash settlements	$	1.62		$	2.02		$	2.01		$	1.66	$	2.47
Total oil equivalent (Per Boe)
Delaware Basin	$	43.55		$	45.38		$	47.68		$	42.05	$	46.35
Eagle Ford		53.81			54.64			55.71			49.69		52.81
Anadarko Basin		25.48			26.96			27.88			24.04		32.16
Williston Basin		47.37			47.77			52.64			45.94		52.94
Powder River Basin		57.60			57.99			62.21			56.33		63.01
Realized price without hedges		43.52			44.93			47.10			41.39		46.44
Cash settlements		0.39			0.14			(0.18	)		0.61		0.22
Realized price, including cash settlements	$	43.91		$	45.07		$	46.92		$	42.00	$	46.66

8

ASSET MARGINS

BENCHMARK PRICES

(average prices)	2024		2023
	Quarter 1		Quarter 4		Quarter 3		Quarter 2		Quarter 1
Oil ($/Bbl) - West Texas Intermediate (Cushing)	$	77.01	$	78.48	$	82.06	$	73.76	$	76.17
Natural Gas ($/Mcf) - Henry Hub	$	2.25	$	2.88	$	2.54	$	2.09	$	3.44
NGL ($/Bbl) - Mont Belvieu Blended	$	27.51	$	25.52	$	26.62	$	23.99	$	29.48

PER-UNIT CASH MARGIN BY ASSET (per Boe)

	2024			2023
	Quarter 1			Quarter 4			Quarter 3			Quarter 2			Quarter 1
Delaware Basin
Realized price	$	43.55		$	45.38		$	47.68		$	42.05		$	46.35
Lease operating expenses		(5.54	)		(5.46	)		(5.03	)		(4.96	)		(4.58	)
Gathering, processing & transportation		(2.79	)		(2.75	)		(2.63	)		(2.63	)		(2.63	)
Production & property taxes		(3.16	)		(3.24	)		(3.48	)		(3.18	)		(3.43	)
Field-level cash margin	$	32.06		$	33.93		$	36.54		$	31.28		$	35.71
Eagle Ford
Realized price	$	53.81		$	54.64		$	55.71		$	49.69		$	52.81
Lease operating expenses		(7.59	)		(7.05	)		(7.52	)		(6.18	)		(6.32	)
Gathering, processing & transportation		(1.67	)		(1.62	)		(1.63	)		(1.67	)		(1.49	)
Production & property taxes		(2.73	)		(2.95	)		(3.18	)		(2.97	)		(3.25	)
Field-level cash margin	$	41.82		$	43.02		$	43.38		$	38.87		$	41.75
Anadarko Basin
Realized price	$	25.48		$	26.96		$	27.88		$	24.04		$	32.16
Lease operating expenses		(3.33	)		(3.26	)		(3.43	)		(3.13	)		(3.41	)
Gathering, processing & transportation		(6.27	)		(5.98	)		(6.11	)		(5.97	)		(5.93	)
Production & property taxes		(1.24	)		(1.40	)		(1.36	)		(1.22	)		(1.73	)
Field-level cash margin	$	14.64		$	16.32		$	16.98		$	13.72		$	21.09
Williston Basin
Realized price	$	47.37		$	47.77		$	52.64		$	45.94		$	52.94
Lease operating expenses		(10.88	)		(13.07	)		(13.04	)		(13.43	)		(13.25	)
Gathering, processing & transportation		(2.03	)		(2.34	)		(2.31	)		(2.29	)		(2.19	)
Production & property taxes		(4.72	)		(4.78	)		(5.13	)		(4.68	)		(4.85	)
Field-level cash margin	$	29.74		$	27.58		$	32.16		$	25.54		$	32.65
Powder River Basin
Realized price	$	57.60		$	57.99		$	62.21		$	56.33		$	63.01
Lease operating expenses		(11.66	)		(8.65	)		(8.45	)		(10.03	)		(11.07	)
Gathering, processing & transportation		(3.03	)		(3.17	)		(3.02	)		(2.97	)		(2.73	)
Production & property taxes		(6.91	)		(6.75	)		(7.45	)		(6.79	)		(7.78	)
Field-level cash margin	$	36.00		$	39.42		$	43.29		$	36.54		$	41.43
Devon - Total
Realized price	$	43.52		$	44.93		$	47.10		$	41.39		$	46.44
Lease operating expenses		(6.29	)		(6.25	)		(6.00	)		(5.86	)		(5.67	)
Gathering, processing & transportation		(2.98	)		(2.97	)		(2.91	)		(2.94	)		(2.88	)
Production & property taxes		(3.16	)		(3.24	)		(3.46	)		(3.14	)		(3.47	)
Field-level cash margin	$	31.09		$	32.47		$	34.73		$	29.45		$	34.42

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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 first-quarter 2024 earnings.

	Quarter Ended March 31, 2024
	Before-tax		After-tax			After NCI			Per Diluted Share
Total
Earnings (GAAP)	$	768	$	609		$	596		$	0.94
Adjustments:
Asset dispositions		1		1			1			—
Deferred tax asset valuation allowance		—		(1	)		(1	)		—
Fair value changes in financial instruments		172		134			134			0.22
Core earnings (Non-GAAP)	$	941	$	743		$	730		$	1.16

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.

	Q1 ‘24		Q4 ‘23			Q3 ‘23		Q2 ‘23			TTM			Q1 ‘23
Net earnings (GAAP)	$	609	$	1,161		$	920	$	698		$	3,388		$	1,003
Financing costs, net		76		77			81		78			312			72
Income tax expense		159		269			152		199			779			221
Exploration expenses		9		4			3		10			26			3
Depreciation, depletion and amortization		722		650			651		638			2,661			615
Asset dispositions		1		11			—		(41	)		(29	)		—
Share-based compensation		24		22			22		25			93			23
Derivative & financial instrument non-cash val. changes		169		(316	)		183		113			149			(51	)
Accretion on discounted liabilities and other		22		10			13		10			55			5
EBITDAX (Non-GAAP)	$	1,791	$	1,888		$	2,025	$	1,730		$	7,434		$	1,891

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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.

	Mar. 31, 2024			Dec. 31, 2023			Sep. 30, 2023			Jun. 30, 2023			Mar. 31, 2023
Total debt (GAAP)	$	6,147		$	6,155		$	6,162		$	6,413		$	6,422
Less:
Cash, cash equivalents and restricted cash		(1,149	)		(875	)		(761	)		(488	)		(887	)
Net debt (Non-GAAP)	$	4,998		$	5,280		$	5,401		$	5,925		$	5,535

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. 

	Mar. 31, 2024		Dec. 31, 2023		Sep. 30, 2023		Jun. 30, 2023		Mar. 31, 2023
Net debt (Non-GAAP)	$	4,998	$	5,280	$	5,401	$	5,925	$	5,535
EBITDAX (Non-GAAP) (1)	$	7,434	$	7,534	$	7,776	$	8,239	$	9,342
Net debt-to-EBITDAX (Non-GAAP)		0.7		0.7		0.7		0.7		0.6

(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 Mar. 31, 2024			Quarter Ended Dec. 31, 2023			Quarter Ended Sep. 30, 2023			Quarter Ended Jun. 30, 2023			Quarter Ended Mar. 31, 2023
Total operating cash flow (GAAP)	$	1,738		$	1,737		$	1,725		$	1,405		$	1,677
Less capital expenditures:		(894	)		(910	)		(882	)		(1,079	)		(1,012	)
Free cash flow (Non-GAAP)	$	844		$	827		$	843		$	326		$	665

ADJUSTED FREE CASH FLOW

Devon is committed to returning approximately 70% of our adjusted free cash flow to shareholders through a fixed dividend, variable dividend and share repurchases. Adjusted free cash flow is calculated as total operating cash flow before balance sheet changes less accrued capital expenditures.

	Quarter Ended Mar. 31, 2024
Total operating cash flow (GAAP)	$	1,738
Changes in assets and liabilities		(170	)
Cash flow before balance sheet changes (Non-GAAP)		1,568
Capital expenditures (Accrued)		(945	)
Adjusted free cash flow (Non-GAAP)	$	623

REINVESTMENT RATE

Devon defines reinvestment rate as accrued capital expenditures 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 Mar. 31, 2024			Quarter Ended Dec. 31, 2023			Quarter Ended Sep. 30, 2023			Quarter Ended Jun. 30, 2023			Quarter Ended Mar. 31, 2023
Capital expenditures (Accrued)	$	945		$	951		$	919		$	1,036		$	1,001
Operating cash flow	$	1,738		$	1,737		$	1,725		$	1,405		$	1,677
Reinvestment rate (Non-GAAP)		54	%		55	%		53	%		74	%		60	%

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SECOND-QUARTER AND FULL-YEAR 2024 GUIDANCE  

PRODUCTION GUIDANCE

	Quarter 2				Full Year
	Low		High		Low		High
Oil (MBbls/d)		321		327		316		322
Natural gas liquids (MBbls/d)		168		174		164		170
Gas (MMcf/d)		1,085		1,135		1,050		1,100
Total oil equivalent (MBoe/d)		670		690		655		675

CAPITAL EXPENDITURES GUIDANCE

	Quarter 2				Full Year
(in millions)	Low		High		Low		High
Upstream capital	$	850	$	900	$	3,050	$	3,250
Carbon capital		30		40		125		175
Midstream & other capital		35		45		125		175
Total capital	$	915	$	985	$	3,300	$	3,600

PRICE REALIZATIONS GUIDANCE

	Quarter 2						Full Year
	Low			High			Low			High
Oil - % of WTI		95	%		100	%		95	%		100	%
NGL - % of WTI		20	%		30	%		20	%		30	%
Natural gas - % of Henry Hub(1)		20	%		40	%		50	%		60	%

(1) Realizations do not include impact from natural gas basis swaps.

OTHER GUIDANCE ITEMS

	Quarter 2						Full Year
($ millions, except Boe and %)	Low			High			Low			High
Marketing & midstream operating profit	$	(15	)	$	(5	)	$	(50	)	$	(40	)
LOE & GP&T per BOE	$	9.20		$	9.40		$	9.20		$	9.40
Production & property taxes as % of upstream sales		7.4	%		8.0	%		7.4	%		8.0	%
Exploration expenses	$	—		$	5		$	15		$	25
Depreciation, depletion and amortization	$	730		$	770		$	2,850		$	2,950
General & administrative expenses	$	105		$	115		$	410		$	450
Net financing costs, net	$	75		$	85		$	310		$	330
Other expenses	$	—		$	10		$	30		$	40

INCOME TAX GUIDANCE

	Quarter 2						Full Year
(% of pre-tax earnings)	Low			High			Low			High
Current income tax rate		14	%		16	%		14	%		16	%
Deferred income tax rate		6	%		8	%		6	%		8	%
Total income tax rate		~22%						~22%

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CONTINGENT PAYMENTS FOR BARNETT SHALE DIVESTITURE (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

2024 & 2025 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)
Q2 2024		26,341	$	79.01		67,022	$	65.98	$	84.78
Q3 2024		28,000	$	78.97		79,000	$	66.92	$	84.61
Q4 2024		28,000	$	78.97		69,000	$	67.93	$	84.38
Q1-Q4 2025		3,468	$	72.75		992	$	70.00	$	77.40

Oil Basis Swaps

Period	Index	Volume (Bbls/d)		Weighted Average Differential to WTI ($/Bbl)
Q2 2024	Midland Sweet		62,500	$	1.17
Q3-Q4 2024	Midland Sweet		69,500	$	1.17
Q1-Q4 2025	Midland Sweet		63,000	$	1.00

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)
Q2 2024		263,000	$	3.21		56,000	$	3.91	$	6.19
Q3 2024		263,000	$	3.21		—	$	—	$	—
Q4 2024		209,000	$	3.18		—	$	—	$	—
Q1-Q4 2025		75,537	$	3.04		—	$	—	$	—

Natural Gas Basis Swaps

Period	Index	Volume (MMBtu/d)	Weighted Average Differential to Henry Hub ($/MMBtu)
Q2 2024	El Paso Permian	60,000	$	(0.90	)
Q3–Q4 2024	El Paso Permian	10,000	$	(1.00	)
Q2–Q4 2024	Houston Ship Channel	110,000	$	(0.24	)
Q2 2024	WAHA	70,000	$	(0.66	)
Q3–Q4 2024	WAHA	60,000	$	(0.58	)
Q1–Q4 2025	WAHA	10,000	$	(0.63	)

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2024 & 2025 HEDGING POSITIONS (continued)  

NGL Commodity Hedges

		Price Swaps
Period	Product	Volume (Bbls/d)	Weighted Average Price ($/Bbl)
Q2-Q4 2024	Natural Gasoline	3,000	$	69.11
Q2-Q4 2024	Normal Butane	3,350	$	37.58
Q2 2024	Propane	4,591	$	32.87
Q3-Q4 2024	Propane	5,250	$	33.01

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. Devon’s NGL derivatives settle against the average of the prompt month OPIS Mont Belvieu, Texas index. Commodity hedge positions are shown as of March 31, 2024.

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