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

Exhibit 99.2

Devon Energy Third-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 3		Quarter 2		Quarter 1			Quarter 4		Quarter 3
Oil, gas and NGL sales	$	2,665	$	2,796	$	2,629		$	2,737	$	2,882
Oil, gas and NGL derivatives (1)		227		23		(145	)		324		(194	)
Marketing and midstream revenues		1,132		1,098		1,112			1,084		1,148
Total revenues		4,024		3,917		3,596			4,145		3,836
Production expenses (2)		763		788		751			759		757
Exploration expenses		4		3		9			4		3
Marketing and midstream expenses		1,149		1,108		1,133			1,093		1,160
Depreciation, depletion and amortization		794		768		722			650		651
Asset dispositions		—		15		1			11		—
General and administrative expenses		117		114		114			111		99
Financing costs, net (3)		88		76		76			77		81
Restructuring and transaction costs		8		—		—			—		—
Other, net		37		5		22			10		13
Total expenses		2,960		2,877		2,828			2,715		2,764
Earnings before income taxes		1,064		1,040		768			1,430		1,072
Income tax expense (4)		239		185		159			269		152
Net earnings		825		855		609			1,161		920
Net earnings attributable to noncontrolling interests		13		11		13			9		10
Net earnings attributable to Devon	$	812	$	844	$	596		$	1,152	$	910
Net earnings per share:
Basic net earnings per share	$	1.31	$	1.35	$	0.95		$	1.81	$	1.43
Diluted net earnings per share	$	1.30	$	1.34	$	0.94		$	1.81	$	1.42
Weighted average common shares outstanding:
Basic		622		626		629			635		637
Diluted		623		628		632			638		639

2

SUPPLEMENTAL INFORMATION FOR CONSOLIDATED STATEMENTS OF EARNINGS

(1) OIL, GAS AND NGL DERIVATIVES
(in millions)	2024									2023
	Quarter 3			Quarter 2			Quarter 1			Quarter 4			Quarter 3
Derivative cash settlements	$	61		$	54		$	24		$	8		$	(11	)
Derivative valuation changes		166			(31	)		(169	)		316			(183	)
Oil, gas and NGL derivatives	$	227		$	23		$	(145	)	$	324		$	(194	)
(2) PRODUCTION EXPENSES
(in millions)	2024									2023
	Quarter 3			Quarter 2			Quarter 1			Quarter 4			Quarter 3
Lease operating expense	$	366		$	383		$	380		$	381		$	367
Gathering, processing & transportation		200			197			180			181			178
Production taxes		179			188			175			182			191
Property taxes		18			20			16			15			21
Production expenses	$	763		$	788		$	751		$	759		$	757
(3) FINANCING COSTS, NET
(in millions)	2024									2023
	Quarter 3			Quarter 2			Quarter 1			Quarter 4			Quarter 3
Interest based on outstanding debt	$	98		$	88		$	87		$	87		$	93
Interest income		(19	)		(14	)		(13	)		(12	)		(11	)
Other		9			2			2			2			(1	)
Financing costs, net	$	88		$	76		$	76		$	77		$	81
(4) INCOME TAX EXPENSE
(in millions)	2024									2023
	Quarter 3			Quarter 2			Quarter 1			Quarter 4			Quarter 3
Current expense	$	75		$	146		$	119		$	105		$	139
Deferred expense		164			39			40			164			13
Income tax expense	$	239		$	185		$	159		$	269		$	152

3

CONSOLIDATED BALANCE SHEETS

(in millions)	2024									2023
	Quarter 3			Quarter 2			Quarter 1			Quarter 4			Quarter 3
Current assets:
Cash, cash equivalents and restricted cash	$	676		$	1,169		$	1,149		$	875		$	761
Accounts receivable		1,779			1,589			1,670			1,573			1,853
Inventory		293			258			234			249			233
Other current assets		484			343			345			460			365
Total current assets		3,232			3,359			3,398			3,157			3,212
Oil and gas property and equipment, based on successful efforts accounting, net		23,155			18,216			18,033			17,825			17,563
Other property and equipment, net		1,795			1,569			1,551			1,503			1,468
Total property and equipment, net		24,950			19,785			19,584			19,328			19,031
Goodwill		753			753			753			753			753
Right-of-use assets		317			297			276			267			261
Investments		718			704			713			666			671
Other long-term assets		293			264			254			319			313
Total assets	$	30,263		$	25,162		$	24,978		$	24,490		$	24,241
Current liabilities:
Accounts payable	$	995		$	754		$	879		$	760		$	812
Revenues and royalties payable		1,423			1,363			1,268			1,222			1,434
Short-term debt		—			475			479			483			487
Other current liabilities		488			424			640			484			597
Total current liabilities		2,906			3,016			3,266			2,949			3,330
Long-term debt		8,884			5,665			5,668			5,672			5,675
Lease liabilities		328			315			301			295			290
Asset retirement obligations		765			691			683			643			641
Other long-term liabilities		820			829			841			876			850
Deferred income taxes		2,082			1,917			1,878			1,838			1,676
Stockholders’ equity:
Common stock		66			63			63			64			64
Additional paid-in capital		6,662			5,478			5,718			5,939			6,153
Retained earnings		7,670			7,132			6,509			6,195			5,535
Accumulated other comprehensive loss		(121	)		(122	)		(123	)		(124	)		(113	)
Treasury stock		—			—			—			(13	)		—
Total stockholders’ equity attributable to Devon		14,277			12,551			12,167			12,061			11,639
Noncontrolling interests		201			178			174			156			140
Total equity		14,478			12,729			12,341			12,217			11,779
Total liabilities and equity	$	30,263		$	25,162		$	24,978		$	24,490		$	24,241

4

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in millions)	2024									2023
	Quarter 3			Quarter 2			Quarter 1			Quarter 4			Quarter 3
Cash flows from operating activities:
Net earnings	$	825		$	855		$	609		$	1,161		$	920
Adjustments to reconcile net earnings to net cash from operating activities:
Depreciation, depletion and amortization		794			768			722			650			651
Leasehold impairments		1			1			—			1			1
Accretion (amortization) of liabilities		2			—			—			1			(2	)
Total (gains) losses on commodity derivatives		(227	)		(23	)		145			(324	)		194
Cash settlements on commodity derivatives		61			54			24			8			(11	)
Losses on asset dispositions		—			15			1			11			—
Deferred income tax expense		164			39			40			164			13
Share-based compensation		24			27			24			23			22
Other		3			—			3			(3	)		(2	)
Changes in assets and liabilities, net		16			(201	)		170			45			(61	)
Net cash from operating activities		1,663			1,535			1,738			1,737			1,725
Cash flows from investing activities:
Capital expenditures		(877	)		(948	)		(894	)		(910	)		(882	)
Acquisitions of property and equipment		(3,602	)		(82	)		(8	)		(10	)		(23	)
Divestitures of property and equipment		—			1			17			3			1
Grayson Mill acquired cash		147			—			—			—			—
Distributions from investments		13			11			11			8			7
Contributions to investments and other		(30	)		(1	)		(47	)		(1	)		—
Net cash from investing activities		(4,349	)		(1,019	)		(921	)		(910	)		(897	)
Cash flows from financing activities:
Borrowings of long-term debt, net of issuance costs		3,219			—			—			—			—
Repayments of long-term debt		(472	)		—			—			—			(242	)
Repurchases of common stock		(295	)		(256	)		(205	)		(234	)		—
Dividends paid on common stock		(272	)		(223	)		(299	)		(488	)		(312	)
Contributions from noncontrolling interests		20			12			12			19			10
Distributions to noncontrolling interests		(10	)		(19	)		(7	)		(12	)		(9	)
Shares exchanged for tax withholdings and other		2			(9	)		(42	)		(1	)		—
Net cash from financing activities		2,192			(495	)		(541	)		(716	)		(553	)
Effect of exchange rate changes on cash		1			(1	)		(2	)		3			(2	)
Net change in cash, cash equivalents and restricted cash		(493	)		20			274			114			273
Cash, cash equivalents and restricted cash at beginning of period		1,169			1,149			875			761			488
Cash, cash equivalents and restricted cash at end of period	$	676		$	1,169		$	1,149		$	875		$	761
Reconciliation of cash, cash equivalents and restricted cash:
Cash and cash equivalents	$	645		$	1,140		$	1,126		$	853		$	654
Restricted cash		31			29			23			22			107
Total cash, cash equivalents and restricted cash	$	676		$	1,169		$	1,149		$	875		$	761

5

PRODUCTION

	2024						2023
	Quarter 3		Quarter 2		Quarter 1		Quarter 4		Quarter 3
Oil (MBbls/d)
Delaware Basin		227		221		208		208		215
Eagle Ford		44		46		43		43		40
Anadarko Basin		13		14		11		13		14
Williston Basin (1)		34		37		40		36		35
Powder River Basin (1)		14		13		13		13		13
Other		3		4		4		4		4
Total		335		335		319		317		321
Natural gas liquids (MBbls/d)
Delaware Basin		134		121		113		112		112
Eagle Ford		16		17		14		15		15
Anadarko Basin		29		30		26		29		27
Williston Basin (1)		13		12		10		10		9
Powder River Basin (1)		2		2		2		3		2
Other		—		—		—		—		1
Total		194		182		165		169		166
Gas (MMcf/d)
Delaware Basin		764		712		695		673		680
Eagle Ford		93		92		79		81		78
Anadarko Basin		241		244		223		225		235
Williston Basin (1)		77		71		63		61		58
Powder River Basin (1)		19		18		18		20		18
Other		—		—		1		1		1
Total		1,194		1,137		1,079		1,061		1,070
Total oil equivalent (MBoe/d)
Delaware Basin		488		461		437		433		440
Eagle Ford		75		79		70		72		68
Anadarko Basin		82		84		74		79		80
Williston Basin (1)		60		61		61		55		54
Powder River Basin (1)		19		18		18		19		19
Other		4		4		4		4		4
Total		728		707		664		662		665

(1) Beginning with Q4 2024, the Williston Basin and Powder River Basin will be combined and presented as Rockies.

6

CAPITAL EXPENDITURES

(in millions)	2024						2023
	Quarter 3		Quarter 2		Quarter 1		Quarter 4		Quarter 3
Delaware Basin	$	495	$	505	$	555	$	506	$	503
Eagle Ford		173		180		156		194		198
Anadarko Basin		56		56		59		51		13
Williston Basin		38		38		27		55		69
Powder River Basin		51		46		43		55		45
Other		4		3		2		3		2
Total upstream capital	$	817	$	828	$	842	$	864	$	830
Carbon capital		26		24		32		31		25
Midstream and Corporate		35		38		63		45		41
Capital expenditures (excluding acquisitions)	$	878	$	890	$	937	$	940	$	896
Acquisitions (1)		38		81		8		11		23
Total capital	$	916	$	971	$	945	$	951	$	918
(1)   Q3 2024 excludes $5,045 million related to the Grayson Mill acquisition.
SUPPLEMENTAL INFORMATION FOR CAPITAL EXPENDITURES
GROSS OPERATED SPUDS
	2024						2023
	Quarter 3		Quarter 2		Quarter 1		Quarter 4		Quarter 3
Delaware Basin		75		73		76		60		64
Eagle Ford		28		28		30		26		28
Anadarko Basin		9		13		4		17		10
Williston Basin		3		6		1		—		7
Powder River Basin		5		6		3		5		4
Total		120		126		114		108		113
GROSS OPERATED WELLS TIED-IN
	2024						2023
	Quarter 3		Quarter 2		Quarter 1		Quarter 4		Quarter 3
Delaware Basin		55		62		59		62		59
Eagle Ford		31		23		26		24		13
Anadarko Basin		15		26		5		4		—
Williston Basin		—		—		10		6		6
Powder River Basin		7		3		2		4		3
Total		108		114		102		100		81
NET OPERATED WELLS TIED-IN
	2024						2023
	Quarter 3		Quarter 2		Quarter 1		Quarter 4		Quarter 3
Delaware Basin		39		44		50		47		49
Eagle Ford		24		15		21		20		12
Anadarko Basin		6		14		2		1		—
Williston Basin		—		—		10		3		4
Powder River Basin		6		2		2		4		3
Total		75		75		85		75		68
AVERAGE LATERAL LENGTH
(based on wells tied-in)	2024						2023
	Quarter 3		Quarter 2		Quarter 1		Quarter 4		Quarter 3
Delaware Basin		10,500’		10,200’		10,300’		10,300’		9,700’
Eagle Ford		7,600’		6,800’		6,700’		7,900’		5,000’
Anadarko Basin		11,000’		8,700’		10,000’		12,500’		—
Williston Basin		—		—		9,600’		12,300’		12,300’
Powder River Basin		14,500’		15,500’		9,600’		9,600’		13,300’
Total		10,000’		9,300’		9,300’		9,900’		9,300’

7

REALIZED PRICING

BENCHMARK PRICES
(average prices)	2024								2023
	Quarter 3		Quarter 2			Quarter 1			Quarter 4			Quarter 3
Oil ($/Bbl) - West Texas Intermediate (Cushing)	$	75.20	$	80.62		$	77.01		$	78.48		$	82.06
Natural Gas ($/Mcf) - Henry Hub	$	2.15	$	1.89		$	2.25		$	2.88		$	2.54
NGL ($/Bbl) - Mont Belvieu Blended	$	25.20	$	26.33		$	27.51		$	25.52		$	26.62
REALIZED PRICES
	2024								2023
	Quarter 3		Quarter 2			Quarter 1			Quarter 4			Quarter 3
Oil (Per Bbl)
Delaware Basin	$	74.24	$	79.62		$	76.23		$	77.75		$	80.72
Eagle Ford		74.92		80.45			76.51			78.51			80.85
Anadarko Basin		73.13		78.36			74.91			77.09			79.86
Williston Basin		69.86		75.81			71.13			74.26			79.50
Powder River Basin		71.73		75.48			71.93			74.58			78.51
Realized price without hedges		73.74		79.10			75.40			77.32			80.48
Cash settlements		0.52		(0.15	)		(0.25	)		(0.34	)		(0.67	)
Realized price, including cash settlements	$	74.26	$	78.95		$	75.15		$	76.98		$	79.81
Natural gas liquids (Per Bbl)
Delaware Basin	$	19.21	$	19.59		$	20.55		$	19.93		$	20.76
Eagle Ford		24.18		23.07			23.67			22.67			23.70
Anadarko Basin		22.35		22.16			24.77			21.44			23.37
Williston Basin		4.76		5.49			6.27			2.95			4.09
Powder River Basin		27.30		30.75			32.91			28.80			29.63
Realized price without hedges		19.25		19.60			20.81			19.67			20.72
Cash settlements		0.11		0.11			(0.08	)		—			—
Realized price, including cash settlements	$	19.36	$	19.71		$	20.73		$	19.67		$	20.72
Gas (Per Mcf)
Delaware Basin	$	0.04	$	0.17		$	1.19		$	1.76		$	1.94
Eagle Ford		1.80		1.48			1.89			2.44			2.31
Anadarko Basin		1.74		1.70			1.92			2.38			2.17
Williston Basin		N/M		N/M			N/M			N/M			N/M
Powder River Basin		1.83		1.64			2.29			2.52			2.53
Realized price without hedges		0.45		0.55			1.30			1.83			1.92
Cash settlements		0.39		0.55			0.32			0.19			0.09
Realized price, including cash settlements	$	0.84	$	1.10		$	1.62		$	2.02		$	2.01
Total oil equivalent (Per Boe)
Delaware Basin	$	39.85	$	43.63		$	43.55		$	45.38		$	47.68
Eagle Ford		50.89		54.03			53.81			54.64			55.71
Anadarko Basin		24.69		25.53			25.48			26.96			27.88
Williston Basin		38.96		46.32			47.37			47.77			52.64
Powder River Basin		56.34		58.99			57.60			57.99			62.21
Realized price without hedges		39.80		43.44			43.52			44.93			47.10
Cash settlements		0.91		0.85			0.39			0.14			(0.18	)
Realized price, including cash settlements	$	40.71	$	44.29		$	43.91		$	45.07		$	46.92

8

ASSET MARGINS

BENCHMARK PRICES
(average prices)	2024									2023
	Quarter 3			Quarter 2			Quarter 1			Quarter 4			Quarter 3
Oil ($/Bbl) - West Texas Intermediate (Cushing)	$	75.20		$	80.62		$	77.01		$	78.48		$	82.06
Natural Gas ($/Mcf) - Henry Hub	$	2.15		$	1.89		$	2.25		$	2.88		$	2.54
NGL ($/Bbl) - Mont Belvieu Blended	$	25.20		$	26.33		$	27.51		$	25.52		$	26.62
PER-UNIT CASH MARGIN BY ASSET (per Boe)
	2024									2023
	Quarter 3			Quarter 2			Quarter 1			Quarter 4			Quarter 3
Delaware Basin
Realized price	$	39.85		$	43.63		$	43.55		$	45.38		$	47.68
Lease operating expenses		(4.69	)		(5.31	)		(5.54	)		(5.46	)		(5.03	)
Gathering, processing & transportation		(2.79	)		(2.89	)		(2.79	)		(2.75	)		(2.63	)
Production & property taxes		(2.99	)		(3.31	)		(3.16	)		(3.24	)		(3.48	)
Field-level cash margin	$	29.38		$	32.12		$	32.06		$	33.93		$	36.54
Eagle Ford
Realized price	$	50.89		$	54.03		$	53.81		$	54.64		$	55.71
Lease operating expenses		(6.57	)		(7.03	)		(7.59	)		(7.05	)		(7.52	)
Gathering, processing & transportation		(2.02	)		(2.03	)		(1.67	)		(1.62	)		(1.63	)
Production & property taxes		(2.79	)		(2.82	)		(2.73	)		(2.95	)		(3.18	)
Field-level cash margin	$	39.51		$	42.15		$	41.82		$	43.02		$	43.38
Anadarko Basin
Realized price	$	24.69		$	25.53		$	25.48		$	26.96		$	27.88
Lease operating expenses		(2.92	)		(3.16	)		(3.33	)		(3.26	)		(3.43	)
Gathering, processing & transportation		(5.78	)		(5.70	)		(6.27	)		(5.98	)		(6.11	)
Production & property taxes		(1.17	)		(1.19	)		(1.24	)		(1.40	)		(1.36	)
Field-level cash margin	$	14.82		$	15.48		$	14.64		$	16.32		$	16.98
Williston Basin
Realized price	$	38.96		$	46.32		$	47.37		$	47.77		$	52.64
Lease operating expenses		(11.81	)		(10.71	)		(10.88	)		(13.07	)		(13.04	)
Gathering, processing & transportation		(2.13	)		(2.29	)		(2.03	)		(2.34	)		(2.31	)
Production & property taxes		(3.86	)		(4.70	)		(4.72	)		(4.78	)		(5.13	)
Field-level cash margin	$	21.16		$	28.62		$	29.74		$	27.58		$	32.16
Powder River Basin
Realized price	$	56.34		$	58.99		$	57.60		$	57.99		$	62.21
Lease operating expenses		(7.71	)		(9.49	)		(11.66	)		(8.65	)		(8.45	)
Gathering, processing & transportation		(2.96	)		(3.07	)		(3.03	)		(3.17	)		(3.02	)
Production & property taxes		(6.79	)		(6.99	)		(6.91	)		(6.75	)		(7.45	)
Field-level cash margin	$	38.88		$	39.44		$	36.00		$	39.42		$	43.29
Devon - Total
Realized price	$	39.80		$	43.44		$	43.52		$	44.93		$	47.10
Lease operating expenses		(5.46	)		(5.95	)		(6.29	)		(6.25	)		(6.00	)
Gathering, processing & transportation		(2.98	)		(3.07	)		(2.98	)		(2.97	)		(2.91	)
Production & property taxes		(2.95	)		(3.23	)		(3.16	)		(3.24	)		(3.46	)
Field-level cash margin	$	28.41		$	31.19		$	31.09		$	32.47		$	34.73

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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 second-quarter and third-quarter 2024 earnings.

	Quarter Ended September 30, 2024
	Before-tax			After-tax			After NCI			Per Diluted Share
Total
Earnings (GAAP)	$	1,064		$	825		$	812		$	1.30
Adjustments:
Asset and exploration impairments		1			1			1			—
Deferred tax asset valuation allowance		—			(7	)		(7	)		(0.01	)
Fair value changes in financial instruments		(167	)		(129	)		(129	)		(0.20	)
Restructuring and transaction costs		8			6			6			0.01
Core earnings (Non-GAAP)	$	906		$	696		$	683		$	1.10
	Quarter Ended June 30, 2024
	Before-tax			After-tax			After NCI			Per Diluted Share
Total
Earnings (GAAP)	$	1,040		$	855		$	844		$	1.34
Adjustments:
Asset dispositions		15			11			11			0.02
Asset and exploration impairments		1			1			1			—
Deferred tax asset valuation allowance		—			4			4			0.01
Fair value changes in financial instruments		32			25			25			0.04
Core earnings (Non-GAAP)	$	1,088		$	896		$	885		$	1.41

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; 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.

	Q3 ‘24			Q2 ‘24		Q1 ‘24		Q4 ‘23			TTM			Q3 ‘23
Net earnings (GAAP)	$	825		$	855	$	609	$	1,161		$	3,450		$	920
Financing costs, net		88			76		76		77			317			81
Income tax expense		239			185		159		269			852			152
Exploration expenses		4			3		9		4			20			3
Depreciation, depletion and amortization		794			768		722		650			2,934			651
Asset dispositions		—			15		1		11			27			—
Share-based compensation		24			26		24		22			96			22
Derivative & financial instrument non-cash val. changes		(166	)		31		169		(316	)		(282	)		183
Restructuring and transaction costs		8			—		—		—			8			—
Accretion on discounted liabilities and other		37			5		22		10			74			13
EBITDAX (Non-GAAP)	$	1,853		$	1,964	$	1,791	$	1,888		$	7,496		$	2,025

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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.

	2024									2023
	Quarter 3			Quarter 2			Quarter 1			Quarter 4			Quarter 3
Total debt (GAAP)	$	8,884		$	6,140		$	6,147		$	6,155		$	6,162
Less:
Cash, cash equivalents and restricted cash		(676	)		(1,169	)		(1,149	)		(875	)		(761	)
Net debt (Non-GAAP)	$	8,208		$	4,971		$	4,998		$	5,280		$	5,401
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.
	2024									2023
	Quarter 3			Quarter 2			Quarter 1			Quarter 4			Quarter 3
Net debt (Non-GAAP)	$	8,208		$	4,971		$	4,998		$	5,280		$	5,401
EBITDAX (Non-GAAP) (1)	$	7,496		$	7,668		$	7,434		$	7,534		$	7,776
Net debt-to-EBITDAX (Non-GAAP)		1.1			0.6			0.7			0.7			0.7
(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.
	2024									2023
	Quarter 3			Quarter 2			Quarter 1			Quarter 4			Quarter 3
Total operating cash flow (GAAP)	$	1,663		$	1,535		$	1,738		$	1,737		$	1,725
Less capital expenditures:		(877	)		(948	)		(894	)		(910	)		(882	)
Free cash flow (Non-GAAP)	$	786		$	587		$	844		$	827		$	843
ADJUSTED FREE CASH FLOW
Devon is committed to returning cash flow to shareholders through dividends and share repurchases. Adjusted free cash flow is calculated as total operating cash flow before balance sheet changes less accrued capital expenditures.
	2024									2023
	Quarter 3			Quarter 2			Quarter 1			Quarter 4			Quarter 3
Total operating cash flow (GAAP)	$	1,663		$	1,535		$	1,738		$	1,737		$	1,725
Changes in assets and liabilities		(16	)		201			(170	)		(45	)		61
Cash flow before balance sheet changes (Non-GAAP)		1,647			1,736			1,568			1,692			1,786
Capital expenditures (Accrued) (1)		(916	)		(971	)		(945	)		(951	)		(919	)
Adjusted free cash flow (Non-GAAP)	$	731		$	765		$	623		$	741		$	867
(1)   Q3 2024 excludes $5,045 million related to the Grayson Mill acquisition.
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.
	2024									2023
	Quarter 3			Quarter 2			Quarter 1			Quarter 4			Quarter 3
Capital expenditures (Accrued) (1)	$	916		$	971		$	945		$	951		$	919
Operating cash flow	$	1,663		$	1,535		$	1,738		$	1,737		$	1,725
Reinvestment rate (Non-GAAP)		55	%		63	%		54	%		55	%		53	%

(1) Q3 2024 excludes $5,045 million related to the Grayson Mill acquisition.

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FOURTH-QUARTER 2024 GUIDANCE

PRODUCTION GUIDANCE

	Quarter 4
	Low			High
Oil (MBbls/d)		382			388
Natural gas liquids (MBbls/d)		214			219
Gas (MMcf/d)		1,290			1,340
Total oil equivalent (MBoe/d)		811			830
CAPITAL EXPENDITURES GUIDANCE
	Quarter 4
(in millions)	Low			High
Upstream capital	$	870		$	920
Carbon capital		20			30
Midstream and other capital		25			35
Total capital	$	915		$	985
PRICE REALIZATIONS GUIDANCE
	Quarter 4
	Low			High
Oil - % of WTI		95	%		100	%
NGL - % of WTI		20	%		30	%
Natural gas - % of Henry Hub		20	%		30	%
OTHER GUIDANCE ITEMS
	Quarter 4
($ millions, except Boe and %)	Low			High
Marketing and midstream operating profit	$	(20	)	$	(10	)
LOE and GP&T per BOE	$	9.20		$	9.60
Production and property taxes as % of upstream sales		7.0	%		8.0	%
Exploration expenses	$	5		$	15
Depreciation, depletion and amortization	$	950		$	1,000
General and administrative expenses	$	125		$	135
Financing costs, net	$	120		$	130
Other expenses	$	—		$	5
INCOME TAX GUIDANCE
	Quarter 4
(% of pre-tax earnings)	Low			High
Current income tax rate		11	%		13	%
Deferred income tax rate		9	%		11	%
Total income tax rate		~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)
Q4 2024		33,000	$	78.38		98,000	$	68.64	$	83.73
Q1-Q4 2025		8,468	$	71.90		26,992	$	70.00	$	76.58

Oil Basis Swaps

Period	Index	Volume (Bbls/d)		Weighted Average Differential to WTI ($/Bbl)
Q4 2024	Midland Sweet		69,500	$	1.17
Q4 2024	NYMEX Roll		26,000	$	0.82
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)
Q4 2024		252,000	$	3.16		15,000	$	3.00	$	3.65
Q1-Q4 2025		220,537	$	3.34		55,000	$	3.00	$	3.69

Natural Gas Basis Swaps

Period	Index	Volume (MMBtu/d)		Weighted Average Differential to Henry Hub ($/MMBtu)
Q4 2024	El Paso Permian		10,000	$	(1.00	)
Q4 2024	Houston Ship Channel		160,000	$	(0.28	)
Q4 2024	WAHA		80,000	$	(0.74	)
Q1–Q4 2025	WAHA		50,000	$	(1.04	)
Q1–Q4 2025	Houston Ship Channel		170,000	$	(0.36	)

NGL Commodity Hedges

		Price Swaps
Period	Product	Volume (Bbls/d)		Weighted Average Price ($/Bbl)
Q4 2024	Natural Gasoline		3,000	$	69.11
Q4 2024	Normal Butane		3,350	$	37.58
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 first of the month Henry Hub index. Devon’s NGL derivatives settle against the average of the prompt month OPIS Mont Belvieu, Texas index. Commodity hedge positions are shown as of September 30, 2024.

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