Document And Entity Information
Document And Entity Information - shares shares in Millions | 9 Months Ended | |
Sep. 30, 2021 | Oct. 20, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2021 | |
Amendment Flag | false | |
Trading Symbol | DVN | |
Entity Registrant Name | DEVON ENERGY CORP/DE | |
Entity Central Index Key | 0001090012 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2021 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Document Fiscal Period Focus | Q3 | |
Entity Common Stock, Shares Outstanding | 677 | |
Entity Current Reporting Status | Yes | |
Entity Shell Company | false | |
Entity File Number | 001-32318 | |
Entity Tax Identification Number | 73-1567067 | |
Entity Address, Address Line One | 333 West Sheridan Avenue | |
Entity Address, City or Town | Oklahoma City | |
Entity Address, State or Province | OK | |
Entity Address, Postal Zip Code | 73102-5015 | |
City Area Code | 405 | |
Local Phone Number | 235-3611 | |
Entity Interactive Data Current | Yes | |
Title of 12(b) Security | Common Stock, par value $0.10 per share | |
Security Exchange Name | NYSE | |
Entity Incorporation, State or Country Code | DE | |
Document Quarterly Report | true | |
Document Transition Report | false |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Earnings - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Revenues from contracts with customers | $ 3,801 | $ 1,154 | $ 9,499 | $ 3,276 |
Oil, gas and NGL derivatives | (335) | (87) | (1,566) | 272 |
Total revenues | 3,466 | 1,067 | 7,933 | 3,548 |
Production expenses | 555 | 271 | 1,526 | 852 |
Exploration expenses | 3 | 39 | 9 | 163 |
Depreciation, depletion and amortization | 578 | 299 | 1,581 | 999 |
Asset impairments | 2,666 | |||
Asset dispositions | (119) | |||
General and administrative expenses | 95 | 75 | 296 | 256 |
Financing costs, net | 86 | 66 | 243 | 200 |
Restructuring and transaction costs | 18 | 32 | 230 | 32 |
Other, net | 2 | (41) | (35) | |
Total expenses | 2,502 | 1,260 | 6,697 | 6,528 |
Earnings (loss) from continuing operations before income taxes | 964 | (193) | 1,236 | (2,980) |
Income tax expense (benefit) | 120 | (90) | (85) | (510) |
Net earnings (loss) from continuing operations | 844 | (103) | 1,321 | (2,470) |
Net earnings (loss) from discontinued operations, net of income taxes | 13 | (103) | ||
Net earnings (loss) | 844 | (90) | 1,321 | (2,573) |
Net earnings attributable to noncontrolling interests | 6 | 2 | 14 | 5 |
Net earnings (loss) attributable to Devon | $ 838 | $ (92) | $ 1,307 | $ (2,578) |
Basic net earnings (loss) per share: | ||||
Basic earnings (loss) from continuing operations per share | $ 1.24 | $ (0.29) | $ 1.95 | $ (6.58) |
Basic earnings (loss) from discontinued operations per share | 0.04 | (0.27) | ||
Basic net earnings (loss) per share | 1.24 | (0.25) | 1.95 | (6.85) |
Diluted net earnings (loss) per share: | ||||
Diluted earnings (loss) from continuing operations per share | 1.24 | (0.29) | 1.95 | (6.58) |
Diluted earnings (loss) from discontinued operations per share | 0.04 | (0.27) | ||
Diluted net earnings (loss) per share | $ 1.24 | $ (0.25) | $ 1.95 | $ (6.85) |
Comprehensive earnings (loss): | ||||
Net earnings (loss) | $ 844 | $ (90) | $ 1,321 | $ (2,573) |
Other comprehensive earnings, net of tax: | ||||
Pension and postretirement plans | 1 | 1 | 27 | 3 |
Other comprehensive earnings, net of tax | 1 | 1 | 27 | 3 |
Comprehensive earnings (loss): | 845 | (89) | 1,348 | (2,570) |
Comprehensive earnings attributable to noncontrolling interests | 6 | 2 | 14 | 5 |
Comprehensive earnings (loss) attributable to Devon | 839 | (91) | 1,334 | (2,575) |
Oil, Gas and NGL Sales [Member] | ||||
Revenues from contracts with customers | 2,635 | 678 | 6,546 | 1,909 |
Marketing and Midstream Revenues [Member] | ||||
Revenues from contracts with customers | 1,166 | 476 | 2,953 | 1,367 |
Marketing and Midstream Expenses [Member] | ||||
Expenses | $ 1,165 | $ 478 | $ 2,972 | $ 1,395 |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Cash flows from operating activities: | ||||
Net earnings (loss) | $ 844 | $ (90) | $ 1,321 | $ (2,573) |
Adjustments to reconcile net earnings (loss) to net cash from operating activities: | ||||
Net (earnings) loss from discontinued operations, net of income taxes | (13) | 103 | ||
Depreciation, depletion and amortization | 578 | 299 | 1,581 | 999 |
Asset impairments | 2,666 | |||
Leasehold impairments | 1 | 36 | 3 | 149 |
(Amortization) accretion of liabilities | (7) | 8 | (21) | 24 |
Total (gains) losses on commodity derivatives | 335 | 87 | 1,566 | (272) |
Cash settlements on commodity derivatives | (370) | 10 | (969) | 343 |
Gains on asset dispositions | (119) | |||
Deferred income tax expense (benefit) | 119 | (100) | (311) | |
Share-based compensation | 19 | 31 | 80 | 70 |
Early retirement of debt | (30) | |||
Other | 11 | 1 | 13 | 5 |
Changes in assets and liabilities, net | 68 | 58 | (42) | (97) |
Net cash from operating activities - continuing operations | 1,598 | 427 | 3,283 | 1,106 |
Cash flows from investing activities: | ||||
Capital expenditures | (474) | (204) | (1,477) | (936) |
Acquisitions of property and equipment | (10) | (15) | (5) | |
Divestitures of property and equipment | 1 | 1 | 65 | 29 |
WPX acquired cash | 344 | |||
Distributions from equity method investments | 9 | 27 | ||
Net cash from investing activities - continuing operations | (474) | (203) | (1,056) | (912) |
Cash flows from financing activities: | ||||
Repayments of long-term debt | (1,243) | |||
Early retirement of debt | (59) | |||
Repurchases of common stock | (38) | |||
Dividends paid on common stock | (329) | (43) | (761) | (119) |
Contributions from noncontrolling interests | 1 | 1 | 4 | 12 |
Distributions to noncontrolling interests | (6) | (4) | (15) | (10) |
Acquisition of noncontrolling interests | (24) | |||
Shares exchanged for tax withholdings and other | (3) | (45) | (17) | |
Net cash from financing activities - continuing operations | (337) | (46) | (2,143) | (172) |
Effect of exchange rate changes on cash - continuing operations | (5) | |||
Net change in cash, cash equivalents and restricted cash of continuing operations | 782 | 178 | 84 | 22 |
Cash flows from discontinued operations: | ||||
Operating activities | 0 | 45 | 0 | (129) |
Investing activities | 0 | 1 | 0 | 171 |
Financing activities | 0 | 0 | 0 | 0 |
Effect of exchange rate changes on cash | 0 | 4 | 0 | (11) |
Net change in cash, cash equivalents and restricted cash of discontinued operations | 0 | 50 | 0 | 31 |
Net change in cash, cash equivalents and restricted cash | 782 | 228 | 84 | 53 |
Cash, cash equivalents and restricted cash at beginning of period | 1,539 | 1,669 | 2,237 | 1,844 |
Cash, cash equivalents and restricted cash at end of period | 2,321 | 1,897 | 2,321 | 1,897 |
Reconciliation of cash, cash equivalents and restricted cash: | ||||
Cash and cash equivalents | 2,144 | 1,707 | 2,144 | 1,707 |
Restricted cash | 177 | 190 | 177 | 190 |
Cash, cash equivalents and restricted cash at end of period | $ 2,321 | $ 1,897 | $ 2,321 | $ 1,897 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 | |
ASSETS | |||
Cash, cash equivalents and restricted cash | $ 2,321 | $ 2,237 | |
Accounts receivable | 1,517 | 601 | |
Income taxes receivable | 80 | 174 | |
Other current assets | 309 | 248 | |
Total current assets | 4,227 | 3,260 | |
Oil and gas property and equipment, based on successful efforts accounting, net | 13,613 | 4,436 | |
Other property and equipment, net ($106 million and $102 million related to CDM in 2021 and 2020, respectively) | [1] | 1,465 | 957 |
Total property and equipment, net | 15,078 | 5,393 | |
Goodwill | 753 | 753 | |
Right-of-use assets | 244 | 223 | |
Investments | 388 | 12 | |
Other long-term assets | 367 | 271 | |
Total assets | 21,057 | 9,912 | |
LIABILITIES AND EQUITY | |||
Accounts payable | 537 | 242 | |
Revenues and royalties payable | 1,443 | 662 | |
Other current liabilities | 1,525 | 536 | |
Total current liabilities | 3,505 | 1,440 | |
Long-term debt | 6,492 | 4,298 | |
Lease liabilities | 256 | 246 | |
Asset retirement obligations | 462 | 358 | |
Other long-term liabilities | 1,281 | 551 | |
Stockholders' equity: | |||
Common stock, $0.10 par value. Authorized 1.0 billion shares; issued 677 million and 382 million shares in 2021 and 2020, respectively | 68 | 38 | |
Additional paid-in capital | 8,206 | 2,766 | |
Retained earnings | 750 | 208 | |
Accumulated other comprehensive loss | (100) | (127) | |
Total stockholders’ equity attributable to Devon | 8,924 | 2,885 | |
Noncontrolling interests | 137 | 134 | |
Total equity | 9,061 | 3,019 | |
Total liabilities and equity | $ 21,057 | $ 9,912 | |
[1] | $106 million and $102 million related to CDM in 2021 and 2020, respectively. |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 | |
Other property and equipment, net | [1] | $ 1,465 | $ 957 |
Common stock, par value (in dollars per share) | $ 0.10 | $ 0.10 | |
Common stock, shares authorized (in shares) | 1,000,000,000 | 1,000,000,000 | |
Common stock, shares issued (in shares) | 677,000,000 | 382,000,000 | |
CDM [Member] | |||
Other property and equipment, net | $ 106 | $ 102 | |
[1] | $106 million and $102 million related to CDM in 2021 and 2020, respectively. |
Consolidated Statements Of Equi
Consolidated Statements Of Equity - USD ($) shares in Millions, $ in Millions | Total | Common Stock [Member] | Additional Paid-In Capital [Member] | Retained Earnings [Member] | Other Comprehensive Earnings (Loss) [Member] | Treasury Stock [Member] | Noncontrolling Interests [Member] |
Balance at Dec. 31, 2019 | $ 5,920 | $ 38 | $ 2,735 | $ 3,148 | $ (119) | $ 118 | |
Balance, shares at Dec. 31, 2019 | 382 | ||||||
Net earnings (loss) | (2,573) | (2,578) | 5 | ||||
Other comprehensive earnings (loss), net of tax | 3 | 3 | |||||
Restricted stock grants, net of cancellations, shares | 3 | ||||||
Common stock repurchased | (55) | $ (55) | |||||
Common stock retired | (55) | 55 | |||||
Common stock retired, shares | (3) | ||||||
Common stock dividends | (219) | (219) | |||||
Share-based compensation | 70 | 70 | |||||
Share-based compensation, shares | 1 | ||||||
Contributions from noncontrolling interests | 12 | 12 | |||||
Distributions to noncontrolling interests | (10) | (10) | |||||
Balance at Sep. 30, 2020 | 3,148 | $ 38 | 2,750 | 351 | (116) | 125 | |
Balance, shares at Sep. 30, 2020 | 383 | ||||||
Balance at Jun. 30, 2020 | 3,353 | $ 38 | 2,720 | 586 | (117) | 126 | |
Balance, shares at Jun. 30, 2020 | 383 | ||||||
Net earnings (loss) | (90) | (92) | 2 | ||||
Other comprehensive earnings (loss), net of tax | 1 | 1 | |||||
Common stock repurchased | (1) | (1) | |||||
Common stock retired | (1) | 1 | |||||
Common stock dividends | (143) | (143) | |||||
Share-based compensation | 31 | 31 | |||||
Contributions from noncontrolling interests | 1 | 1 | |||||
Distributions to noncontrolling interests | (4) | (4) | |||||
Balance at Sep. 30, 2020 | 3,148 | $ 38 | 2,750 | 351 | (116) | 125 | |
Balance, shares at Sep. 30, 2020 | 383 | ||||||
Balance at Dec. 31, 2020 | 3,019 | $ 38 | 2,766 | 208 | (127) | 134 | |
Balance, shares at Dec. 31, 2020 | 382 | ||||||
Net earnings (loss) | 1,321 | 1,307 | 14 | ||||
Other comprehensive earnings (loss), net of tax | 27 | 27 | |||||
Restricted stock grants, net of cancellations, value | (1) | $ 1 | (2) | ||||
Restricted stock grants, net of cancellations, shares | 6 | ||||||
Common stock repurchased | (41) | (41) | |||||
Common stock retired | (41) | 41 | |||||
Common stock retired, shares | (2) | ||||||
Common stock dividends | (765) | (765) | |||||
Common stock issued | 5,432 | $ 29 | 5,403 | ||||
Common stock issued, Shares | 290 | ||||||
Share-based compensation | 80 | 80 | |||||
Share-based compensation, shares | 1 | ||||||
Contributions from noncontrolling interests | 3 | 3 | |||||
Distributions to noncontrolling interests | (14) | (14) | |||||
Balance at Sep. 30, 2021 | 9,061 | $ 68 | 8,206 | 750 | (100) | 137 | |
Balance, shares at Sep. 30, 2021 | 677 | ||||||
Balance at Jun. 30, 2021 | 8,535 | $ 68 | 8,189 | 243 | (101) | 136 | |
Balance, shares at Jun. 30, 2021 | 677 | ||||||
Net earnings (loss) | 844 | 838 | 6 | ||||
Other comprehensive earnings (loss), net of tax | 1 | 1 | |||||
Restricted stock grants, net of cancellations, value | (1) | (1) | |||||
Common stock repurchased | (1) | (1) | |||||
Common stock retired | (1) | $ 1 | |||||
Common stock dividends | (331) | (331) | |||||
Share-based compensation | 19 | 19 | |||||
Contributions from noncontrolling interests | 1 | 1 | |||||
Distributions to noncontrolling interests | (6) | (6) | |||||
Balance at Sep. 30, 2021 | $ 9,061 | $ 68 | $ 8,206 | $ 750 | $ (100) | $ 137 | |
Balance, shares at Sep. 30, 2021 | 677 |
Summary Of Significant Accounti
Summary Of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Summary Of Significant Accounting Policies | DEVON ENERGY CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) 1. Summary of Significant Accounting Policies The accompanying unaudited interim financial statements and notes of Devon have been prepared pursuant to the rules and regulations of the SEC. Pursuant to such rules and regulations, certain disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been omitted. The accompanying unaudited interim financial statements and notes should be read in conjunction with the financial statements and notes included in Devon’s 2020 Annual Report on Form 10-K . The accompanying unaudited interim financial statements in this report reflect all adjustments that are, in the opinion of management, necessary for a fair statement of Devon’s results of operations and cash flows for the three-month and nine-month periods ended September 30, 2021 and 2020 and Devon’s financial position as of September 30, 2021. Devon and WPX completed an all-stock merger of equals on January 7, 2021 See Note 2 for further discussion. As further discussed in Note 17 , Devon closed on the sale of its Barnett Shale assets in October 2020 As of September 30, 2021, classified 10 Variable Interest Entity Cotton Draw Midstream, L.L.C. (“CDM”) is a joint venture entity formed by Devon and an affiliate of QL Capital Partners, LP. CDM provides gathering, compression and dehydration services for natural gas production in the Cotton Draw area of the Delaware Basin. Devon holds a controlling interest in CDM and the portions of Investments In conjunction with the Merger, Devon acquired an interest in Catalyst which is a joint venture established between WPX and Howard Energy Partners (“HEP”) to develop oil gathering and natural gas processing infrastructure in the Stateline area of the Delaware Basin. Under the terms of the arrangement, Devon and HEP each have a 50 percent voting interest in the joint venture legal entity, and HEP serves as the operator. Through 2038, Devon’s production from 50,000 net acres in the Stateline area of the Delaware Basin has been dedicated to Catalyst subject to fixed-fee oil gathering and natural gas processing agreements. The agreements do not include any minimum volume commitments. Devon accounts for the investment in Catalyst as an equity method investment. Devon’s investment in Catalyst is shown within investments on the consolidated balance sheet and Devon’s share of Catalyst earnings are reflected as a component of other, net in the accompanying consolidated statements of comprehensive earnings. Disaggregation of Revenue The following table presents revenue from contracts with customers that are disaggregated based on the type of good or service. Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Oil $ 1,900 $ 504 $ 4,917 $ 1,462 Gas 309 79 699 221 NGL 426 95 930 226 Oil, gas and NGL sales 2,635 678 6,546 1,909 Oil 649 233 1,758 702 Gas 196 100 477 275 NGL 321 143 718 390 Marketing and midstream revenues 1,166 476 2,953 1,367 Total revenues from contracts with customers $ 3,801 $ 1,154 $ 9,499 $ 3,276 |
Acquisition and Divestitures
Acquisition and Divestitures | 9 Months Ended |
Sep. 30, 2021 | |
Business Combinations [Abstract] | |
Acquisition and Divestitures | 2. WPX Merger On January 7, 2021 Purchase Price Allocation The transaction has been accounted for using the acquisition method of accounting, with Devon being treated as the accounting acquirer. Under the acquisition method of accounting, the assets and liabilities of WPX and its subsidiaries have been recorded at their respective fair values as of the date of completion of the Merger and added to Devon’s. The preliminary purchase price assessment remains an ongoing process and is subject to change for up to one year subsequent to the closing date of the Merger. Determining the fair value of the assets and liabilities of WPX requires judgment and certain assumptions to be made, the most significant of these being related to the valuation of WPX’s oil and gas properties. The inputs and assumptions related to the oil and gas properties are categorized as level 3 in the fair value hierarchy. The following table represents the preliminary allocation of the total purchase price of WPX to the identifiable assets acquired and the liabilities assumed based on the fair values as of the acquisition date. Preliminary Purchase Price Allocation as of September 30, 2021 Consideration: WPX Common Stock outstanding 561.2 Exchange Ratio 0.5165 Devon common stock issued 289.9 Devon closing price on January 7, 2021 $ 18.57 Total common equity consideration 5,383 Share-based replacement awards 49 Total consideration $ 5,432 Assets acquired: Cash, cash equivalents and restricted cash $ 344 Accounts receivable 425 Other current assets 49 Right-of-use assets 38 Proved oil and gas property and equipment 7,017 Unproved and properties under development 2,362 Other property and equipment 485 Investments 400 Other long-term assets 43 Total assets acquired $ 11,163 Liabilities assumed: Accounts payable $ 346 Revenue and royalties payable 223 Other current liabilities 454 Debt 3,562 Lease liabilities 38 Asset retirement obligations 94 Deferred income taxes 249 Other long-term liabilities 765 Total liabilities assumed 5,731 Net assets acquired $ 5,432 WPX Revenues and Earnings The following table represents WPX’s revenues and earnings included in Devon’s consolidated statements of comprehensive earnings subsequent to the closing date of the Merger. Three Months Ended September 30, Nine Months Ended September 30, 2021 2021 Total revenues $ 1,564 $ 3,977 Net earnings $ 414 $ 969 Pro Forma Financial Information Due to the Merger closing on January 7, 2021, all activity in the first nine months of 2021 except for the first six days of January is included in Devon’s consolidated statements of comprehensive earnings for the nine months ended September 30, 2021. The following unaudited pro forma financial information for the three and nine months ended September 30, 2020 is based on our historical consolidated financial statements adjusted to reflect as if the Merger had occurred on January 1, 2020. The information below reflects pro forma adjustments to conform WPX’s historical financial information to Devon’s financial statement presentation. The unaudited pro forma financial information is not necessarily indicative of what would have occurred if the Merger had been completed as of the beginning of the periods presented, nor is it indicative of future results. Three Months Ended September 30, Nine Months Ended September 30, Continuing operations: 2020 2020 Total revenues $ 1,540 $ 5,452 Net loss $ (281 ) $ (3,247 ) Basic net loss per share $ (0.42 ) $ (4.87 ) Divestitures In the first quarter of 2021, Devon completed the sale of non-core assets in the Rockies for proceeds of $ 9 gain related to the sale. The transaction includes contingent earnout payments of up to $8 million. As of December 31, 2020, the associated assets and liabilities were classified as assets held for sale and included in other current assets and other current liabilities, respectively. In the fourth quarter of 2020, Devon completed the sale of its Barnett Shale assets to BKV for proceeds, net of purchase price adjustments, of $490 million. The agreement with BKV also provides for contingent earnout payments to Devon of up to $260 million based upon future commodity prices, with upside participation beginning at a $2.75 Henry Hub natural gas price or a $50 WTI oil price. The contingent payment period commenced on January 1, 2021 and has a term of four years. The valuation of the future contingent earnout payments included within other current assets and other long-term assets in the September 30, 2021 consolidated balance sheet was $46 million and $85 million, respectively. During the first nine months of 2021, Devon recorded a $65 million increase to the fair value within asset dispositions on the The value was derived utilizing a Monte Carlo valuation model and qualifies as a level 3 fair value measurement. Additional information can be found in Note 17 . |
Derivative Financial Instrument
Derivative Financial Instruments | 9 Months Ended |
Sep. 30, 2021 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | 3. Derivative Fin Objectives and Strategies Devon enters into derivative financial instruments with respect to a portion of its oil, gas and NGL production to hedge future prices received. Additionally, Devon periodically enters into derivative financial instruments with respect to a portion of its oil, gas and NGL marketing activities. These commodity derivative financial instruments include financial price swaps, price swaptions, basis swaps, costless price collars and call options. Devon periodically enters into interest rate swaps to manage its exposure to interest rate volatility. As of September 30, 2021, Devon did not have any open interest rate swap contracts. Devon does not intend to hold or issue derivative financial instruments for speculative trading purposes and has elected not to designate any of its derivative instruments for hedge accounting treatment. Counterparty Credit Risk By using derivative financial instruments, Devon is exposed to credit risk. Credit risk is the failure of the counterparty to perform under the terms of the derivative contract. To mitigate this risk, the hedging instruments are placed with a number of counterparties whom Devon believes are acceptable credit risks. It is Devon’s policy to enter into derivative contracts only with investment-grade rated counterparties deemed by management to be competent and competitive market makers. Additionally, Devon’s derivative contracts generally contain provisions that provide for collateral payments if Devon’s or its counterparty’s credit rating falls below certain credit rating levels. As of September 30, 2021, Devon neither held cash collateral of its counterparties nor posted cash collateral to its counterparties. Commodity Derivatives As of September 30, 2021, Devon had the following open oil derivative positions. The first table presents Devon’s oil derivatives that settle against the average of the prompt month NYMEX WTI futures price. The second table presents Devon’s oil derivatives that settle against the respective indices noted within the table Price Swaps Price Swaptions Price Collars Call Options Sold Period Volume (Bbls/d) Weighted Average Price ($/Bbl) Volume (Bbls/d) Weighted Average Price ($/Bbl) Volume (Bbls/d) Weighted Average Floor Price ($/Bbl) Weighted Average Ceiling Price ($/Bbl) Volume (Bbls/d) Weighted Average Price ($/Bbl) Q4 2021 66,460 $ 41.24 — $ — 48,250 $ 38.82 $ 48.82 5,000 $ 39.50 Q1-Q4 2022 26,112 $ 43.75 10,000 $ 46.67 20,233 $ 46.41 $ 56.41 — $ — Oil Basis Swaps Period Index Volume (Bbls/d) Weighted Average Differential to WTI ($/Bbl) Q4 2021 Midland Sweet 23,000 $ 0.84 Q4 2021 Guernsey Light Sweet 4,000 $ (1.49 ) Q4 2021 BRENT 1,000 $ (8.00 ) Q4 2021 NYMEX Roll 13,000 $ 0.39 Q1-Q4 2022 BRENT 1,000 $ (7.75 ) Q1-Q4 2022 NYMEX Roll 29,000 $ 0.45 As of September 30, 2021, Devon had the following open natural gas derivative positions. The first table presents Devon’s natural gas derivatives that settle against the Inside FERC first of the month Henry Hub index and the end of month NYMEX index. The second table presents Devon’s natural gas derivatives that settle against the respective indices noted within the table. Price Swaps (1) Price Swaptions (2) Price Collars (2) Call Options Sold (2) Period Volume (MMBtu/d) Weighted Average Price ($/MMBtu) Volume (MMBtu/d) Weighted Average Price ($/MMBtu) Volume (MMBtu/d) Weighted Average Floor Price ($/MMBtu) Weighted Average Ceiling Price ($/MMBtu) Volume (MMBtu/d) Weighted Average Price ($/MMBtu) Q4 2021 254,000 $ 2.63 — $ — 133,000 $ 2.55 $ 3.05 50,000 $ 2.68 Q1-Q4 2022 3,452 $ 2.85 100,000 $ 2.70 145,507 $ 2.69 $ 3.40 — $ — Q1-Q4 2023 — $ — — $ — 10,603 $ 3.11 $ 4.56 — $ — (1) Related to the 2021 open positions, 14,000 MMBtu/d settle against the Inside FERC first of month Henry Hub index at an average price of $2.85 and 240,000 MMBtu/d settle against the end of month NYMEX index at an average price of $2.62. All 2022 open positions settle against the Inside FERC first of month Henry Hub index. (2) Price swaptions and call options settle against end of month NYMEX index. Price collars settle against the Inside FERC first of month Henry Hub Index. Natural Gas Basis Swaps Period Index Volume (MMBtu/d) Weighted Average Differential to Henry Hub ($/MMBtu) Q4 2021 El Paso Natural Gas 35,000 $ (0.92 ) Q4 2021 WAHA 80,000 $ (0.65 ) Q1-Q4 2022 WAHA 70,000 $ (0.57 ) Q1-Q4 2023 WAHA 70,000 $ (0.51 ) Q1-Q4 2024 WAHA 40,000 $ (0.51 ) As of September 30, 2021, Devon had the following open NGL derivative positions. Devon’s NGL positions settle against the average of the prompt month OPIS Mont Belvieu, Texas index. Price Swaps Period Product Volume (Bbls/d) Weighted Average Price ($/Bbl) Q4 2021 Natural Gasoline 1,000 $ 47.57 Q4 2021 Normal Butane 1,000 $ 31.40 Q4 2021 Propane 1,000 $ 27.88 Financial Statement Presentation All derivative financial instruments are recognized at their current fair value as either assets or liabilities in the consolidated balance sheets. Amounts related to contracts allowed to be netted upon payment subject to a master netting arrangement with the same counterparty are reported on a net basis in the consolidated balance sheets. The tables below present a summary of these positions as of September 30, 2021 and December 31, 2020. September 30, 2021 December 31, 2020 Gross Fair Value Amounts Netted Net Fair Value Gross Fair Value Amounts Netted Net Fair Value Balance Sheet Classification Commodity derivatives: Short-term derivative asset $ 3 $ (1 ) $ 2 $ 23 $ (18 ) $ 5 Other current assets Long-term derivative asset — — — 1 — 1 Other long-term assets Short-term derivative liability (984 ) 1 (983 ) (161 ) 18 (143 ) Other current liabilities Long-term derivative liability (103 ) — (103 ) (5 ) — (5 ) Other long-term liabilities Total derivative liability $ (1,084 ) $ — $ (1,084 ) $ (142 ) $ — $ (142 ) |
Share-Based Compensation
Share-Based Compensation | 9 Months Ended |
Sep. 30, 2021 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Share-Based Compensation | 4. Share-Base The table below presents the share-based compensation expense included in Devon’s accompanying consolidated statements of comprehensive earnings. The vesting for certain share-based awards was accelerated in conjunction with the reduction of workforce described in Note 6 and is included in restructuring and transaction costs in the accompanying . Nine Months Ended September 30, 2021 2020 G&A $ 58 $ 58 Exploration expenses 1 1 Restructuring and transaction costs 21 11 Total $ 80 $ 70 Related income tax benefit $ 8 $ — Under its approved long-term incentive plan, Devon grants share-based awards to certain employees. The following table presents a summary of Devon’s unvested restricted stock awards and units, performance-based restricted stock awards and performance share units granted under the plan. Performance-Based Performance Restricted Stock Awards & Units Restricted Stock Awards Share Units Awards/Units Weighted Average Grant-Date Fair Value Awards Weighted Average Grant-Date Fair Value Units Weighted Average Grant-Date Fair Value (Thousands, except fair value data) Unvested at 12/31/20 5,316 $ 25.82 44 $ 44.70 1,994 $ 31.89 Granted 7,711 (1 ) $ 19.69 — $ — 861 $ 18.08 Vested (5,006 ) $ 22.35 (44 ) $ 44.70 (754 ) $ 37.40 Forfeited (126 ) $ 23.21 — $ — (25 ) $ 36.04 Unvested at 9/30/21 7,895 $ 22.08 — $ — 2,076 (2 ) $ 24.12 (1) Due to the closing of the Merger, each share of WPX common stock was automatically converted into the right to receive 0.5165 of a share of Devon common stock. As a result, approximately 4.9 million awards relate to the conversion of WPX equity awards to Devon equity awards. ( 2 ) A maximum of 4.2 million common shares could be awarded based upon Devon’s final TSR ranking. The following table presents the assumptions related to the performance share units granted in 2021, as indicated in the previous summary table. 2021 Grant-date fair value $ 18.08 Risk-free interest rate 0.18% Volatility factor 67.8% Contractual term (years) 2.89 The following table presents a summary of the unrecognized compensation cost and the related weighted average recognition period associated with unvested awards and units as of September 30, 2021. Restricted Stock Performance Awards/Units Share Units Unrecognized compensation cost $ 97 $ 15 Weighted average period for recognition (years) 2.5 1.9 |
Asset Impairments
Asset Impairments | 9 Months Ended |
Sep. 30, 2021 | |
Asset Impairment Charges [Abstract] | |
Asset Impairments | 5. Asset The following table presents a summary of Devon’s asset impairments. Unproved impairments shown below are included in exploration expenses in the consolidated statements of comprehensive earnings. Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Proved oil and gas assets $ — $ — $ — $ 2,664 Other assets — — — 2 Total asset impairments $ — $ — $ — $ 2,666 Unproved impairments $ 1 $ 36 $ 3 $ 149 Proved Oil and Gas and Other Asset Due to the reduced demand from the COVID-19 pandemic causing an unprecedented downturn in the price of oil and reductions in near-term capital investment, Devon recognized approximately $2.7 billion of proved asset impairments during the first quarter of 2020. These impairments related to the Anadarko Basin and Rockies fields in which the Unproved Due to the downturn in the commodity price environment and reduced near-term investment as discussed above, Devon also recognized $149 million of unproved impairments during the first nine months of 2020, primarily in the Rockies field. |
Restructuring and Transaction C
Restructuring and Transaction Costs | 9 Months Ended |
Sep. 30, 2021 | |
Restructuring And Related Activities [Abstract] | |
Restructuring and Transaction Costs | 6. Restructuring and The following table summarizes Devon’s restructuring and transaction costs. Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Restructuring costs $ 16 $ 32 $ 182 $ 32 Transaction costs 2 — 48 — Total costs $ 18 $ 32 $ 230 $ 32 In conjunction with the Merger closing, Devon recognized $182 million of restructuring expenses during the first nine months of 2021 related to employee severance and termination benefits, settlements and curtailments from defined retirement benefits and contract terminations. Of these expenses, $65 million related to non-cash charges which primarily consisted of settlements and curtailments of defined retirement benefits of $40 million and the accelerated vesting of share-based grants of $21 million. Additionally, in conjunction primarily with the Merger closing, Devon recognized $48 million of transaction costs primarily comprised of bank, legal and accounting fees. In the third quarter of 2020, Devon recognized $32 million of restructuring expenses. Of these expenses, $11 million resulted from the accelerated vesting of share-based grants, which are non-cash charges. The following table summarizes Devon’s restructuring liabilities. Other Other Current Long-term Liabilities Liabilities Total Balance as of December 31, 2020 $ 35 $ 137 $ 172 Changes related to 2021 merger integration 27 — 27 Changes related to prior years' restructurings (8 ) (18 ) (26 ) Balance as of September 30, 2021 $ 54 $ 119 $ 173 Balance as of December 31, 2019 $ 20 $ 1 $ 21 Changes related to prior years' restructurings (3 ) — (3 ) Balance as of September 30, 2020 $ 17 $ 1 $ 18 |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 7. Inco The following table presents Devon’s total income tax expense (benefit) and a reconciliation of its effective income tax rate to the U.S. statutory income tax rate. Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Earnings (loss) from continuing operations before income taxes $ 964 $ (193 ) $ 1,236 $ (2,980 ) Current income tax expense (benefit) $ 1 $ (90 ) $ 15 $ (199 ) Deferred income tax expense (benefit) 119 — (100 ) (311 ) Total income tax expense (benefit) $ 120 $ (90 ) $ (85 ) $ (510 ) U.S. statutory income tax rate 21 % 21 % 21 % 21 % State income taxes 0 % 0 % 0 % 1 % Unrecognized tax benefits 0 % 18 % 0 % 0 % Deferred tax asset valuation allowance (9 %) 4 % (33 %) (7 %) Other 0 % 4 % 5 % 2 % Effective income tax rate 12 % 47 % (7 %) 17 % The deferred income tax benefit recognized in the first nine months of 2021 primarily relates to the Merger and a reduced valuation allowance due to increased earnings. As shown in Note 2 , Devon recognized $249 million of deferred tax liabilities to account for the Merger. The recognition of these deferred tax liabilities caused a decrease to Devon’s net deferred tax assets and a corresponding decrease to the valuation allowance Devon has recognized on its U.S. Federal deferred tax assets. Additionally, improved commodity prices and post-merger operating performance are causing reductions to Devon’s net operating losses, which also cause corresponding decreases to the associated deferred tax assets and valuation allowance. As of September 30, 2021, Devon continued to maintain a valuation allowance against certain U.S. deferred tax assets. Devon continues to assess its valuation allowance position every quarter. Subject to any additional objective negative evidence or the addition of subjective evidence such as forecasted income, Devon may continue to adjust the valuation allowance on its deferred tax assets in future periods. In the fourth quarter of 2020, Devon recorded a deferred tax asset representing the deductible outside basis difference in its investment in a consolidated subsidiary. In the second quarter of 2021, Devon realized this deferred tax asset, increasing its U.S. federal net operating loss carryforwards by $1.8 billion. |
Net Earnings (Loss) Per Share f
Net Earnings (Loss) Per Share from Continuing Operations | 9 Months Ended |
Sep. 30, 2021 | |
Earnings Per Share [Abstract] | |
Net Earnings (Loss) Per Share from Continuing Operations | 8. Net Earnings (Loss) Per Share from Continuing Operations The following table reconciles net earnings (loss) from continuing operations and weighted-average common shares outstanding used in the calculations of basic and diluted net earnings (loss) per share from continuing operations. Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Net earnings (loss) from continuing operations: Net earnings (loss) from continuing operations $ 838 $ (105 ) $ 1,307 $ (2,475 ) Attributable to participating securities (6 ) (2 ) (11 ) (3 ) Basic and diluted earnings (loss) from continuing operations $ 832 $ (107 ) $ 1,296 $ (2,478 ) Common shares: Common shares outstanding - total 677 383 670 383 Attributable to participating securities (6 ) (6 ) (6 ) (6 ) Common shares outstanding - basic 671 377 664 377 Dilutive effect of potential common shares issuable 2 — 2 — Common shares outstanding - diluted 673 377 666 377 Net earnings (loss) per share from continuing operations: Basic $ 1.24 $ (0.29 ) $ 1.95 $ (6.58 ) Diluted $ 1.24 $ (0.29 ) $ 1.95 $ (6.58 ) |
Other Comprehensive Earnings (L
Other Comprehensive Earnings (Loss) | 9 Months Ended |
Sep. 30, 2021 | |
Other Comprehensive Income Loss Net Of Tax Period Increase Decrease [Abstract] | |
Other Comprehensive Earnings (Loss) | 9. Components of other comprehensive earnings (loss) consist of the following: Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Pension and postretirement benefit plans: Beginning accumulated pension and postretirement benefits $ (101 ) $ (117 ) $ (127 ) $ (119 ) Recognition of net actuarial loss and prior service cost in earnings (1) 1 1 2 4 Settlement of pension benefits (2) — — 18 — Income tax expense — — — (1 ) Other (3) — — 7 — Accumulated other comprehensive loss, net of tax $ (100 ) $ (116 ) $ (100 ) $ (116 ) (1) Recognition of net actuarial loss and prior service cost are included in the computation of net periodic benefit cost, which is a component of other, net in the accompanying consolidated statements of comprehensive earnings. (2) The Merger triggered settlement payments to certain plan participants, and the expense associated with this settlement is recognized as a component of restructuring and transaction costs in the accompanying consolidated statements of comprehensive earnings. (3) Other includes a remeasurement of the pension obligation due to the Merger, which was partially offset by a change in mortality assumption. |
Supplemental Information To Sta
Supplemental Information To Statements Of Cash Flows | 9 Months Ended |
Sep. 30, 2021 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Information To Statements Of Cash Flows | 10. Supplemental Information to Statements of Cash Flows Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Changes in assets and liabilities, net: Accounts receivable $ (332 ) $ 21 $ (495 ) $ 339 Income tax receivable (40 ) — 94 (112 ) Other current assets 21 18 (36 ) 10 Other long-term assets 14 (9 ) (9 ) (33 ) Accounts payable and revenues and royalties payable 469 100 557 (160 ) Other current liabilities (49 ) 15 (30 ) (82 ) Other long-term liabilities (15 ) (87 ) (123 ) (59 ) Total $ 68 $ 58 $ (42 ) $ (97 ) Supplementary cash flow data - total operations: Interest paid $ 100 $ 64 $ 319 $ 194 Income taxes paid (refunded) $ (4 ) $ (2 ) $ (116 ) $ 170 As of September 30, 2021, Devon had approximately $200 million of accrued capital expenditures included in total property and equipment, net and accounts payable on the consolidated balance sheets. As of December 31, 2020 (pre-merger), Devon had approximately $100 million of accrued capital expenditures in total property and equipment, net and accounts payable on the consolidated balance sheets. As of January 7, 2021 (date of Merger closing), Devon assumed approximately $150 million of accrued capital expenditures included in accounts payable. |
Accounts Receivable
Accounts Receivable | 9 Months Ended |
Sep. 30, 2021 | |
Accounts Receivable Net [Abstract] | |
Accounts Receivable | 11. Accounts Receivable Components of accounts receivable include the following: September 30, 2021 December 31, 2020 Oil, gas and NGL sales $ 986 $ 335 Joint interest billings 150 57 Marketing and midstream revenues 371 195 Other 22 25 Gross accounts receivable 1,529 612 Allowance for doubtful accounts (12 ) (11 ) Net accounts receivable $ 1,517 $ 601 |
Property, Plant and Equipment
Property, Plant and Equipment | 9 Months Ended |
Sep. 30, 2021 | |
Extractive Industries [Abstract] | |
Property, Plant and Equipment | 12. Property, Plan The following table presents the aggregate capitalized costs related to Devon’s oil and gas and non-oil and gas activities. September 30, 2021 December 31, 2020 Property and equipment: Proved $ 36,489 $ 27,589 Unproved and properties under development 2,169 392 Total oil and gas 38,658 27,981 Less accumulated DD&A (25,045 ) (23,545 ) Oil and gas property and equipment, net 13,613 4,436 Other property and equipment 2,113 1,737 Less accumulated DD&A (648 ) (780 ) Other property and equipment, net (1) 1,465 957 Property and equipment, net $ 15,078 $ 5,393 (1) $106 million and $102 million related to CDM in 2021 and 2020, respectively. |
Debt And Related Expenses
Debt And Related Expenses | 9 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
Debt and Related Expenses | 13. Debt and Related Expenses See below for a summary of debt instruments and balances. The notes and debentures are senior, unsecured obligations of Devon. September 30, 2021 December 31, 2020 8.25% due August 1, 2023 (1) $ 242 $ — 5.25% due September 15, 2024 (1) 472 — 5.85% due December 15, 2025 485 485 7.50% due September 15, 2027 73 73 5.25% due October 15, 2027 (1) 390 — 5.875% due June 15, 2028 (1) 325 — 4.50% due January 15, 2030 (1) 585 — 7.875% due September 30, 2031 675 675 7.95% due April 15, 2032 366 366 5.60% due July 15, 2041 1,250 1,250 4.75% due May 15, 2042 750 750 5.00% due June 15, 2045 750 750 Net premium (discount) on debentures and notes 160 (20 ) Debt issuance costs (31 ) (31 ) Total long-term debt $ 6,492 $ 4,298 (1) These instruments were assumed by Devon in January 2021 in conjunction with the Merger. Subsequent to debt retirements and the obligor exchange transaction completed during the first nine months of 2021, approximately $51 million of these instruments remain the unsecured and unsubordinated obligation of WPX, a wholly-owned subsidiary of Devon. Debt maturities as of September 30, 2021, excluding debt issuance costs, premiums and discounts, are as follows: Total 2022 $ — 2023 242 2024 472 2025 485 2026 — Thereafter 5,164 Total $ 6,363 The following schedule includes the summary of the WPX debt Devon assumed upon closing of the Merger on January 7, 2021. Face Value Fair Value Optional Redemption (1) 6.00% due January 15, 2022 $ 43 $ 44 8.25% due August 1, 2023 242 281 June 1, 2023 5.25% due September 15, 2024 472 530 June 15, 2024 5.75% due June 1, 2026 500 529 June 1, 2021 5.25% due October 15, 2027 600 646 October 15, 2022 5.875% due June 15, 2028 500 554 June 15, 2023 4.50% due January 15, 2030 900 978 January 15, 2025 $ 3,257 $ 3,562 (1) At any time prior to these dates, Devon has or had the option to redeem (i) some or all of the notes at a specified "make whole" premium and (ii) a portion of certain of the notes at applicable redemption prices, in each case as described in the indenture documents governing the notes to be redeemed. On or after these dates, Devon has or had the option to redeem the notes, in whole or in part, at the applicable redemption prices set forth in the indenture documents, plus accrued and unpaid interest thereon to the redemption date as more fully described in such documents. Retirement of Senior Notes In the first nine months of 2021, Devon redeemed $43 million of the 6.00% senior notes due 2022, $175 million of the 5.875% senior notes due 2028, $315 million of the 4.50% senior notes due 2030, $210 million of the 5.25% senior notes due 2027 and $500 million of the 5.75% senior notes due 2026. In the first nine months of 2021, Devon recognized $30 million of gains on early retirement of debt, consisting of $89 million of non-cash premium accelerations, partially offset by $59 million of cash retirement costs. The gain on early retirement is included in financing costs, net in the consolidated statements of comprehensive earnings. Credit Lines Devon has a $3.0 billion Senior Credit Facility. As of September 30, 2021, Devon had no outstanding borrowings under the Senior Credit Facility and had issued $2 million in outstanding letters of credit under this facility. The Senior Credit Facility contains only one material financial covenant. This covenant requires Devon’s ratio of total funded debt to total capitalization, as defined in the credit agreement, to be no greater than 65%. Under the terms of the credit agreement, total capitalization is adjusted to add back non-cash financial write-downs such as impairments. As of September 30, 2021, Devon was in compliance with this covenant with a debt-to-capitalization ratio of 25.1%. Net Financing Costs The following schedule includes the components of net financing costs. Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Interest based on debt outstanding $ 93 $ 65 $ 296 $ 195 Gain on early retirement of debt — — (30 ) — Interest income (1 ) (5 ) (2 ) (12 ) Other (6 ) 6 (21 ) 17 Total net financing costs $ 86 $ 66 $ 243 $ 200 |
Leases
Leases | 9 Months Ended |
Sep. 30, 2021 | |
Leases [Abstract] | |
Leases | 14. Le The following table presents Devon’s right-of-use assets and lease liabilities as of September 30, 2021 and December 31, 2020. September 30, 2021 December 31, 2020 Finance Operating Total Finance Operating Total Right-of-use assets $ 214 $ 30 $ 244 $ 220 $ 3 $ 223 Lease liabilities: Current lease liabilities (1) $ 8 $ 20 $ 28 $ 8 $ 1 $ 9 Long-term lease liabilities 246 10 256 244 2 246 Total lease liabilities $ 254 $ 30 $ 284 $ 252 $ 3 $ 255 (1) Devon’s right-of-use operating lease assets are for certain leases related to real estate, drilling rigs and other equipment related to the exploration, development and production of oil and gas. Devon’s right-of-use financing lease assets are related to real estate. |
Asset Retirement Obligations
Asset Retirement Obligations | 9 Months Ended |
Sep. 30, 2021 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Asset Retirement Obligations | 15. Asset Retirement Obligations The following table presents the changes in Devon’s asset retirement obligations. Nine Months Ended September 30, 2021 2020 Asset retirement obligations as of beginning of period $ 369 $ 398 Assumed WPX obligations 98 — Liabilities incurred 28 15 Liabilities settled and divested (52 ) (24 ) Revision of estimated obligation 11 4 Accretion expense on discounted obligation 21 15 Asset retirement obligations as of end of period 475 408 Less current portion 13 10 Asset retirement obligations, long-term $ 462 $ 398 |
Stockholders' Equity
Stockholders' Equity | 9 Months Ended |
Sep. 30, 2021 | |
Stockholders Equity Note [Abstract] | |
Stockholders' Equity | 1 6 . Stockholders’ Equity WPX Merger On January 7, 2021, Devon and WPX completed an all-stock merger of equals. On the closing date of the Merger, each share of WPX common stock was automatically converted into the right to receive of a share of Devon common stock. Consequently, Devon issued approximately Share Repurchases The table below provides information regarding purchases of Devon’s common stock that were made in 2020 under a share repurchase program that expired at the end of 2020 (shares in thousands). Total Number of Shares Purchased Dollar Value of Shares Purchased Average Price Paid per Share First quarter 2020 2,243 $ 38 $ 16.85 Total 2,243 $ 38 $ 16.85 In November 2021, Devon authorized a share repurchase program to buy up to $1.0 billion of common stock. This program expires December 31, 2022. Dividends Upon completion of the Merger, Devon continued its commitment to pay a quarterly dividend at a fixed rate and instituted a variable quarterly dividend, which is dependent on quarterly cash flows, among other factors. The following table summarizes Devon’s fixed and variable dividends for the first nine months of 2021 and 2020, respectively. Fixed Variable Total Rate Per Share 2021: First quarter $ 76 $ 127 $ 203 $ 0.30 Second quarter 75 154 229 $ 0.34 Third quarter 74 255 329 $ 0.49 Total year-to-date $ 225 $ 536 $ 761 2020: First quarter $ 34 $ — $ 34 $ 0.09 Second quarter 42 — 42 $ 0.11 Third quarter 43 — 43 $ 0.11 Total year-to-date $ 119 $ — $ 119 In November 2021, Devon announced a cash dividend in the amount of $0.84 per share payable in the fourth quarter of 2021. The dividend consists of a fixed quarterly dividend in the amount of approximately $74 million (or $0.11 per share) and a variable quarterly dividend in the amount of approximately $494 million (or $0.73 per share). Noncontrolling Interests The noncontrolling interests’ share of CDM’s net earnings and the contributions from and distributions to the noncontrolling interests are presented as components of equity. |
Discontinued Operations
Discontinued Operations | 9 Months Ended |
Sep. 30, 2021 | |
Discontinued Operations And Disposal Groups [Abstract] | |
Discontinued Operations | 1 7 . Discontinued Operations On October 1, 2020, Devon completed the sale of its Barnett Shale assets to BKV for proceeds, net of purchase price adjustments, of $490 million. Additionally, the agreement provides for contingent earnout payments to Devon of up to $260 million based upon future commodity prices, with upside participation beginning at a $2.75 Henry Hub natural gas price or a $50 WTI oil price. The contingent payment period commenced on January 1, 2021 and has a term of four years. The following table presents the amounts reported in the consolidated statements of comprehensive earnings as discontinued operations. Three Months Ended September 30, 2020 Nine Months Ended September 30, 2020 Oil, gas and NGL sales $ 94 $ 263 Total revenues 94 263 Production expenses 66 214 Asset impairments (1) 3 182 Asset dispositions — (2 ) General and administrative expenses 2 3 Financing costs, net (1 ) (3 ) Other, net 26 19 Total expenses 96 413 Loss from discontinued operations before income taxes (2 ) (150 ) Income tax benefit (15 ) (47 ) Net earnings (loss) from discontinued operations, net of tax $ 13 $ (103 ) (1) Devon recognized $182 million of asset impairments in the first nine months of 2020 related to the Barnett Shale assets primarily due to the difference between the net carrying value and the purchase price, net of estimated customary purchase price adjustments, which qualified as a level 2 fair value measurement. |
Commitments And Contingencies
Commitments And Contingencies | 9 Months Ended |
Sep. 30, 2021 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments And Contingencies | 1 8 . Commitments and Contingencies Devon is party to various legal proceedings and other matters that may result in future payment obligations or other adverse consequences to its business. Matters that are probable of an unfavorable outcome to Devon and which any related potential payment obligation or other liability can be reasonably estimated are accrued. Such accruals are based on information known about the matters, Devon’s estimates of the outcomes of such matters and its experience in contesting, litigating and settling similar matters. While management does not believe any current matter is likely to involve future amounts that would be material to Devon’s financial position or results of operations after consideration of recorded accruals, the ultimate outcome of such matters and the amounts involved could differ materially from management’s estimates . Royalty Matters Numerous oil and natural gas producers and related parties, including Devon, have been named in various lawsuits alleging royalty underpayments. Devon is currently defending against a number of such lawsuits, either as a named defendant in the action or pursuant to indemnity obligations for the benefit of a third party. Plaintiffs in some of these lawsuits are seeking class certification. Among the allegations typically asserted in these suits are claims that Devon used below-market prices, made improper deductions, failed to “enhance” the value of gas through processing, used improper measurement techniques, entered into purchase and midstream arrangements with affiliates that resulted in underpayment of royalties or otherwise failed to prudently market oil, natural gas and NGLs produced and sold and pay royalties on the highest obtainable price. Devon is also involved in governmental agency proceedings and royalty audits and is subject to related contracts and regulatory controls in the ordinary course of business, some that may lead to additional royalty claims. Devon does not currently believe that it is subject to material exposure with respect to such royalty matters. Environmental and Climate Change Matters Devon’s business is subject to numerous federal, state, local and Native American tribal laws and regulations governing the discharge of materials into the environment or otherwise relating to environmental protection. Failure to comply with these laws and regulations may result in the assessment of administrative, civil and criminal fines and penalties, as well as remediation costs. Although Devon believes that it is in substantial compliance with applicable environmental laws and regulations and that continued compliance with existing requirements will not have a material adverse impact on its business, there can be no assurance that this will continue in the future. Beginning in 2013, various parishes in Louisiana filed suit against numerous oil and gas companies, including Devon, alleging that the companies’ operations and The State of Delaware and various municipalities and other governmental and private parties in California have filed legal proceedings against numerous oil and gas companies, including Devon, seeking relief to abate alleged impacts of climate change. These proceedings include far-reaching claims for monetary damages and injunctive relief. Although Devon cannot predict the ultimate outcome of these matters, Williams’ Former Power Business Matter Direct and indirect purchasers of natural gas in various states filed individual and class action lawsuits against The Williams Companies, Inc. (“Williams”) and other parties alleging the manipulation of published gas price indices and seeking unspecified amounts of damages. WPX and certain of its subsidiaries, which were then affiliates of Williams, were also named as defendants in these actions. Devon cannot reasonably estimate a range of potential exposure at this time for these matters. In connection with its spin-off from Williams in 2011, WPX entered into a separation and distribution agreement with Williams, pursuant to which Williams agreed to indemnify and hold WPX and its subsidiaries harmless from any losses arising out of these matters. Other Indemnifications and Legacy Matters Pursuant to various sale agreements relating to divested businesses and assets, Devon has indemnified various purchasers against liabilities that they may incur with respect to the businesses and assets acquired from Devon. Additionally, federal, state and other laws in areas of former operations may require previous operators (including corporate successors of previous operators) to perform or make payments in certain circumstances where the current operator may no longer be able to satisfy the applicable obligation. Such obligations may include plugging and abandoning wells, removing production facilities or performing requirements under surface agreements in existence at the time of disposition. In November 2020, the Department of the Interior, Bureau of Safety and Environmental Enforcement, ordered several oil and gas operators, including Devon, to perform decommissioning and reclamation activities related to two California offshore oil and gas production platforms and related facilities. The current operator and owner of the platforms contends that it does not have the financial ability to perform these obligations and relinquished the related federal lease in October 2020. In response to the apparent insolvency of the current operator, the government has ordered the former operators and alleged former lease record title owners to decommission the platforms. The government contends that an alleged corporate predecessor of Devon owned a partial interest in the subject lease and platforms. Although Devon cannot predict the ultimate outcome of this matter, Devon denies any obligation to decommission the subject platforms, has appealed the order, and believes any decommissioning obligation related to the subject platforms should be assumed by others. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 19 . Fair Value Measurements The following table provides carrying value and fair value measurement information for certain of Devon’s financial assets and liabilities. The carrying values of cash, accounts receivable, other current receivables, accounts payable, other current payables, accrued expenses and lease liabilities included in the accompanying consolidated balance sheets approximated fair value at September 30, 2021 and December 31, 2020, as applicable. Therefore, such financial assets and liabilities are not presented in the following table . Additionally, information regarding the fair values of oil and gas assets is provided in Note 5 . Fair Value Measurements Using: Carrying Total Fair Level 1 Level 2 Level 3 Amount Value Inputs Inputs Inputs September 30, 2021 assets (liabilities): Cash equivalents $ 1,321 $ 1,321 $ 1,321 $ — $ — Commodity derivatives $ 2 $ 2 $ — $ 2 $ — Commodity derivatives $ (1,086 ) $ (1,086 ) $ — $ (1,086 ) $ — Debt $ (6,492 ) $ (7,629 ) $ — $ (7,629 ) $ — Contingent earnout payments $ 135 $ 135 $ — $ — $ 135 December 31, 2020 assets (liabilities): Cash equivalents $ 1,436 $ 1,436 $ 1,436 $ — $ — Commodity derivatives $ 6 $ 6 $ — $ 6 $ — Commodity derivatives $ (148 ) $ (148 ) $ — $ (148 ) $ — Debt $ (4,298 ) $ (5,365 ) $ — $ (5,365 ) $ — Contingent earnout payments $ 66 $ 66 $ — $ — $ 66 The following methods and assumptions were used to estimate the fair values in the table above. Level 1 Fair Value Measurements Cash equivalents – Amounts consist primarily of money market investments and the fair value approximates the carrying value. Level 2 Fair Value Measurements Commodity derivatives – The fair value of commodity derivatives is estimated using internal discounted cash flow calculations based upon forward curves and data obtained from independent third parties for contracts with similar terms or data obtained from counterparties to the agreements. Debt – Devon’s debt instruments do not consistently trade actively in an established market. The fair values of its debt are estimated based on rates available for debt with similar terms and maturity when active trading is not available. Level 3 Fair Value Measurements Contingent Earnout Payments – Devon has the right to receive contingent consideration related to the Barnett and non-core Rockies asset divestitures based on future oil and gas prices. These values were derived using a Monte Carlo valuation model and qualify as a level 3 fair value measurement. For additional information, see Note 2 . |
Summary Of Significant Accoun_2
Summary Of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Variable Interest Entity | Variable Interest Entity Cotton Draw Midstream, L.L.C. (“CDM”) is a joint venture entity formed by Devon and an affiliate of QL Capital Partners, LP. CDM provides gathering, compression and dehydration services for natural gas production in the Cotton Draw area of the Delaware Basin. Devon holds a controlling interest in CDM and the portions of |
Investments | Investments |
Commitments And Contingencies | Devon is party to various legal proceedings and other matters that may result in future payment obligations or other adverse consequences to its business. Matters that are probable of an unfavorable outcome to Devon and which any related potential payment obligation or other liability can be reasonably estimated are accrued. Such accruals are based on information known about the matters, Devon’s estimates of the outcomes of such matters and its experience in contesting, litigating and settling similar matters. While management does not believe any current matter is likely to involve future amounts that would be material to Devon’s financial position or results of operations after consideration of recorded accruals, the ultimate outcome of such matters and the amounts involved could differ materially from management’s estimates . |
Summary Of Significant Accoun_3
Summary Of Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Schedule of Revenue from Contracts with Customers | The following table presents revenue from contracts with customers that are disaggregated based on the type of good or service. Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Oil $ 1,900 $ 504 $ 4,917 $ 1,462 Gas 309 79 699 221 NGL 426 95 930 226 Oil, gas and NGL sales 2,635 678 6,546 1,909 Oil 649 233 1,758 702 Gas 196 100 477 275 NGL 321 143 718 390 Marketing and midstream revenues 1,166 476 2,953 1,367 Total revenues from contracts with customers $ 3,801 $ 1,154 $ 9,499 $ 3,276 |
Acquisitions and Divestitures (
Acquisitions and Divestitures (Tables) - Devon and WPX Agreement [Member] | 9 Months Ended |
Sep. 30, 2021 | |
Business Acquisition [Line Items] | |
Schedule of Preliminary Allocation of the Total Purchase Price | The following table represents the preliminary allocation of the total purchase price of WPX to the identifiable assets acquired and the liabilities assumed based on the fair values as of the acquisition date. Preliminary Purchase Price Allocation as of September 30, 2021 Consideration: WPX Common Stock outstanding 561.2 Exchange Ratio 0.5165 Devon common stock issued 289.9 Devon closing price on January 7, 2021 $ 18.57 Total common equity consideration 5,383 Share-based replacement awards 49 Total consideration $ 5,432 Assets acquired: Cash, cash equivalents and restricted cash $ 344 Accounts receivable 425 Other current assets 49 Right-of-use assets 38 Proved oil and gas property and equipment 7,017 Unproved and properties under development 2,362 Other property and equipment 485 Investments 400 Other long-term assets 43 Total assets acquired $ 11,163 Liabilities assumed: Accounts payable $ 346 Revenue and royalties payable 223 Other current liabilities 454 Debt 3,562 Lease liabilities 38 Asset retirement obligations 94 Deferred income taxes 249 Other long-term liabilities 765 Total liabilities assumed 5,731 Net assets acquired $ 5,432 |
Schedule of WPX Revenues And Earnings Included In Devon's Consolidated Comprehensive Statements of Earnings | The following table represents WPX’s revenues and earnings included in Devon’s consolidated statements of comprehensive earnings subsequent to the closing date of the Merger. Three Months Ended September 30, Nine Months Ended September 30, 2021 2021 Total revenues $ 1,564 $ 3,977 Net earnings $ 414 $ 969 |
Schedule of Pro Forma Adjustments to Confirm Acquisition | The unaudited pro forma financial information is not necessarily indicative of what would have occurred if the Merger had been completed as of the beginning of the periods presented, nor is it indicative of future results. Three Months Ended September 30, Nine Months Ended September 30, Continuing operations: 2020 2020 Total revenues $ 1,540 $ 5,452 Net loss $ (281 ) $ (3,247 ) Basic net loss per share $ (0.42 ) $ (4.87 ) |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Schedule Of Open Derivative Positions | Price Swaps Price Swaptions Price Collars Call Options Sold Period Volume (Bbls/d) Weighted Average Price ($/Bbl) Volume (Bbls/d) Weighted Average Price ($/Bbl) Volume (Bbls/d) Weighted Average Floor Price ($/Bbl) Weighted Average Ceiling Price ($/Bbl) Volume (Bbls/d) Weighted Average Price ($/Bbl) Q4 2021 66,460 $ 41.24 — $ — 48,250 $ 38.82 $ 48.82 5,000 $ 39.50 Q1-Q4 2022 26,112 $ 43.75 10,000 $ 46.67 20,233 $ 46.41 $ 56.41 — $ — Oil Basis Swaps Period Index Volume (Bbls/d) Weighted Average Differential to WTI ($/Bbl) Q4 2021 Midland Sweet 23,000 $ 0.84 Q4 2021 Guernsey Light Sweet 4,000 $ (1.49 ) Q4 2021 BRENT 1,000 $ (8.00 ) Q4 2021 NYMEX Roll 13,000 $ 0.39 Q1-Q4 2022 BRENT 1,000 $ (7.75 ) Q1-Q4 2022 NYMEX Roll 29,000 $ 0.45 Price Swaps (1) Price Swaptions (2) Price Collars (2) Call Options Sold (2) Period Volume (MMBtu/d) Weighted Average Price ($/MMBtu) Volume (MMBtu/d) Weighted Average Price ($/MMBtu) Volume (MMBtu/d) Weighted Average Floor Price ($/MMBtu) Weighted Average Ceiling Price ($/MMBtu) Volume (MMBtu/d) Weighted Average Price ($/MMBtu) Q4 2021 254,000 $ 2.63 — $ — 133,000 $ 2.55 $ 3.05 50,000 $ 2.68 Q1-Q4 2022 3,452 $ 2.85 100,000 $ 2.70 145,507 $ 2.69 $ 3.40 — $ — Q1-Q4 2023 — $ — — $ — 10,603 $ 3.11 $ 4.56 — $ — (1) Related to the 2021 open positions, 14,000 MMBtu/d settle against the Inside FERC first of month Henry Hub index at an average price of $2.85 and 240,000 MMBtu/d settle against the end of month NYMEX index at an average price of $2.62. All 2022 open positions settle against the Inside FERC first of month Henry Hub index. (2) Price swaptions and call options settle against end of month NYMEX index. Price collars settle against the Inside FERC first of month Henry Hub Index. Natural Gas Basis Swaps Period Index Volume (MMBtu/d) Weighted Average Differential to Henry Hub ($/MMBtu) Q4 2021 El Paso Natural Gas 35,000 $ (0.92 ) Q4 2021 WAHA 80,000 $ (0.65 ) Q1-Q4 2022 WAHA 70,000 $ (0.57 ) Q1-Q4 2023 WAHA 70,000 $ (0.51 ) Q1-Q4 2024 WAHA 40,000 $ (0.51 ) Price Swaps Period Product Volume (Bbls/d) Weighted Average Price ($/Bbl) Q4 2021 Natural Gasoline 1,000 $ 47.57 Q4 2021 Normal Butane 1,000 $ 31.40 Q4 2021 Propane 1,000 $ 27.88 |
Schedule Of Derivative Financial Instruments Included In The Consolidated Balance Sheets | All derivative financial instruments are recognized at their current fair value as either assets or liabilities in the consolidated balance sheets. Amounts related to contracts allowed to be netted upon payment subject to a master netting arrangement with the same counterparty are reported on a net basis in the consolidated balance sheets. The tables below present a summary of these positions as of September 30, 2021 and December 31, 2020. September 30, 2021 December 31, 2020 Gross Fair Value Amounts Netted Net Fair Value Gross Fair Value Amounts Netted Net Fair Value Balance Sheet Classification Commodity derivatives: Short-term derivative asset $ 3 $ (1 ) $ 2 $ 23 $ (18 ) $ 5 Other current assets Long-term derivative asset — — — 1 — 1 Other long-term assets Short-term derivative liability (984 ) 1 (983 ) (161 ) 18 (143 ) Other current liabilities Long-term derivative liability (103 ) — (103 ) (5 ) — (5 ) Other long-term liabilities Total derivative liability $ (1,084 ) $ — $ (1,084 ) $ (142 ) $ — $ (142 ) |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Schedule Of Share-Based Compensation Expense Included In The Consolidated Statements Of Comprehensive Earnings | Nine Months Ended September 30, 2021 2020 G&A $ 58 $ 58 Exploration expenses 1 1 Restructuring and transaction costs 21 11 Total $ 80 $ 70 Related income tax benefit $ 8 $ — |
Summary Of Unvested Restricted Stock Awards, Performance-Based Restricted Stock Awards And Performance Share Units | Performance-Based Performance Restricted Stock Awards & Units Restricted Stock Awards Share Units Awards/Units Weighted Average Grant-Date Fair Value Awards Weighted Average Grant-Date Fair Value Units Weighted Average Grant-Date Fair Value (Thousands, except fair value data) Unvested at 12/31/20 5,316 $ 25.82 44 $ 44.70 1,994 $ 31.89 Granted 7,711 (1 ) $ 19.69 — $ — 861 $ 18.08 Vested (5,006 ) $ 22.35 (44 ) $ 44.70 (754 ) $ 37.40 Forfeited (126 ) $ 23.21 — $ — (25 ) $ 36.04 Unvested at 9/30/21 7,895 $ 22.08 — $ — 2,076 (2 ) $ 24.12 (1) Due to the closing of the Merger, each share of WPX common stock was automatically converted into the right to receive 0.5165 of a share of Devon common stock. As a result, approximately 4.9 million awards relate to the conversion of WPX equity awards to Devon equity awards. ( 2 ) A maximum of 4.2 million common shares could be awarded based upon Devon’s final TSR ranking. |
Summary Of Performance Share Units Grant-Date Fair Values And Their Related Assumptions | 2021 Grant-date fair value $ 18.08 Risk-free interest rate 0.18% Volatility factor 67.8% Contractual term (years) 2.89 |
Summary of Unrecognized Compensation Cost And Weighted Average Period For Recognition | Restricted Stock Performance Awards/Units Share Units Unrecognized compensation cost $ 97 $ 15 Weighted average period for recognition (years) 2.5 1.9 |
Asset Impairments (Tables)
Asset Impairments (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Asset Impairment Charges [Abstract] | |
Summary of Asset Impairments | The following table presents a summary of Devon’s asset impairments. Unproved impairments shown below are included in exploration expenses in the consolidated statements of comprehensive earnings. Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Proved oil and gas assets $ — $ — $ — $ 2,664 Other assets — — — 2 Total asset impairments $ — $ — $ — $ 2,666 Unproved impairments $ 1 $ 36 $ 3 $ 149 |
Restructuring and Transaction_2
Restructuring and Transaction Costs (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Restructuring And Related Activities [Abstract] | |
Schedule Of Restructuring And Transaction Costs | The following table summarizes Devon’s restructuring and transaction costs. Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Restructuring costs $ 16 $ 32 $ 182 $ 32 Transaction costs 2 — 48 — Total costs $ 18 $ 32 $ 230 $ 32 |
Schedule Of The Activity And Balances Associated With Restructuring Liabilities | The following table summarizes Devon’s restructuring liabilities. Other Other Current Long-term Liabilities Liabilities Total Balance as of December 31, 2020 $ 35 $ 137 $ 172 Changes related to 2021 merger integration 27 — 27 Changes related to prior years' restructurings (8 ) (18 ) (26 ) Balance as of September 30, 2021 $ 54 $ 119 $ 173 Balance as of December 31, 2019 $ 20 $ 1 $ 21 Changes related to prior years' restructurings (3 ) — (3 ) Balance as of September 30, 2020 $ 17 $ 1 $ 18 |
Income Taxes (Tables)
Income Taxes (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) | The following table presents Devon’s total income tax expense (benefit) and a reconciliation of its effective income tax rate to the U.S. statutory income tax rate. Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Earnings (loss) from continuing operations before income taxes $ 964 $ (193 ) $ 1,236 $ (2,980 ) Current income tax expense (benefit) $ 1 $ (90 ) $ 15 $ (199 ) Deferred income tax expense (benefit) 119 — (100 ) (311 ) Total income tax expense (benefit) $ 120 $ (90 ) $ (85 ) $ (510 ) |
Schedule Of Effective Income Tax Rate Reconciliation | U.S. statutory income tax rate 21 % 21 % 21 % 21 % State income taxes 0 % 0 % 0 % 1 % Unrecognized tax benefits 0 % 18 % 0 % 0 % Deferred tax asset valuation allowance (9 %) 4 % (33 %) (7 %) Other 0 % 4 % 5 % 2 % Effective income tax rate 12 % 47 % (7 %) 17 % |
Net Earnings (Loss) Per Share_2
Net Earnings (Loss) Per Share from Continuing Operations (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Earnings Per Share [Abstract] | |
Net Earnings (Loss) Per Share Computations from Continuing Operations | Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Net earnings (loss) from continuing operations: Net earnings (loss) from continuing operations $ 838 $ (105 ) $ 1,307 $ (2,475 ) Attributable to participating securities (6 ) (2 ) (11 ) (3 ) Basic and diluted earnings (loss) from continuing operations $ 832 $ (107 ) $ 1,296 $ (2,478 ) Common shares: Common shares outstanding - total 677 383 670 383 Attributable to participating securities (6 ) (6 ) (6 ) (6 ) Common shares outstanding - basic 671 377 664 377 Dilutive effect of potential common shares issuable 2 — 2 — Common shares outstanding - diluted 673 377 666 377 Net earnings (loss) per share from continuing operations: Basic $ 1.24 $ (0.29 ) $ 1.95 $ (6.58 ) Diluted $ 1.24 $ (0.29 ) $ 1.95 $ (6.58 ) |
Other Comprehensive Earnings _2
Other Comprehensive Earnings (Loss) (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Other Comprehensive Income Loss Net Of Tax Period Increase Decrease [Abstract] | |
Components Of Other Comprehensive Earnings (Loss) | Components of other comprehensive earnings (loss) consist of the following: Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Pension and postretirement benefit plans: Beginning accumulated pension and postretirement benefits $ (101 ) $ (117 ) $ (127 ) $ (119 ) Recognition of net actuarial loss and prior service cost in earnings (1) 1 1 2 4 Settlement of pension benefits (2) — — 18 — Income tax expense — — — (1 ) Other (3) — — 7 — Accumulated other comprehensive loss, net of tax $ (100 ) $ (116 ) $ (100 ) $ (116 ) (1) Recognition of net actuarial loss and prior service cost are included in the computation of net periodic benefit cost, which is a component of other, net in the accompanying consolidated statements of comprehensive earnings. (2) The Merger triggered settlement payments to certain plan participants, and the expense associated with this settlement is recognized as a component of restructuring and transaction costs in the accompanying consolidated statements of comprehensive earnings. (3) Other includes a remeasurement of the pension obligation due to the Merger, which was partially offset by a change in mortality assumption. |
Supplemental Information To S_2
Supplemental Information To Statements Of Cash Flows (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Supplemental Cash Flow Elements [Abstract] | |
Schedule Of Supplemental Information To Statements Of Cash Flows | Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Changes in assets and liabilities, net: Accounts receivable $ (332 ) $ 21 $ (495 ) $ 339 Income tax receivable (40 ) — 94 (112 ) Other current assets 21 18 (36 ) 10 Other long-term assets 14 (9 ) (9 ) (33 ) Accounts payable and revenues and royalties payable 469 100 557 (160 ) Other current liabilities (49 ) 15 (30 ) (82 ) Other long-term liabilities (15 ) (87 ) (123 ) (59 ) Total $ 68 $ 58 $ (42 ) $ (97 ) Supplementary cash flow data - total operations: Interest paid $ 100 $ 64 $ 319 $ 194 Income taxes paid (refunded) $ (4 ) $ (2 ) $ (116 ) $ 170 |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Accounts Receivable Net [Abstract] | |
Schedule Of Components Of Accounts Receivable | Components of accounts receivable include the following: September 30, 2021 December 31, 2020 Oil, gas and NGL sales $ 986 $ 335 Joint interest billings 150 57 Marketing and midstream revenues 371 195 Other 22 25 Gross accounts receivable 1,529 612 Allowance for doubtful accounts (12 ) (11 ) Net accounts receivable $ 1,517 $ 601 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Extractive Industries [Abstract] | |
Table of Property and Equipment, net | The following table presents the aggregate capitalized costs related to Devon’s oil and gas and non-oil and gas activities. September 30, 2021 December 31, 2020 Property and equipment: Proved $ 36,489 $ 27,589 Unproved and properties under development 2,169 392 Total oil and gas 38,658 27,981 Less accumulated DD&A (25,045 ) (23,545 ) Oil and gas property and equipment, net 13,613 4,436 Other property and equipment 2,113 1,737 Less accumulated DD&A (648 ) (780 ) Other property and equipment, net (1) 1,465 957 Property and equipment, net $ 15,078 $ 5,393 (1) $106 million and $102 million related to CDM in 2021 and 2020, respectively. |
Debt And Related Expenses (Tabl
Debt And Related Expenses (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Debt Instrument [Line Items] | |
Schedule Of Debt Instruments and Balances | See below for a summary of debt instruments and balances. The notes and debentures are senior, unsecured obligations of Devon. September 30, 2021 December 31, 2020 8.25% due August 1, 2023 (1) $ 242 $ — 5.25% due September 15, 2024 (1) 472 — 5.85% due December 15, 2025 485 485 7.50% due September 15, 2027 73 73 5.25% due October 15, 2027 (1) 390 — 5.875% due June 15, 2028 (1) 325 — 4.50% due January 15, 2030 (1) 585 — 7.875% due September 30, 2031 675 675 7.95% due April 15, 2032 366 366 5.60% due July 15, 2041 1,250 1,250 4.75% due May 15, 2042 750 750 5.00% due June 15, 2045 750 750 Net premium (discount) on debentures and notes 160 (20 ) Debt issuance costs (31 ) (31 ) Total long-term debt $ 6,492 $ 4,298 (1) These instruments were assumed by Devon in January 2021 in conjunction with the Merger. Subsequent to debt retirements and the obligor exchange transaction completed during the first nine months of 2021, approximately $51 million of these instruments remain the unsecured and unsubordinated obligation of WPX, a wholly-owned subsidiary of Devon. |
Schedule Of Debt Maturities | Debt maturities as of September 30, 2021, excluding debt issuance costs, premiums and discounts, are as follows: Total 2022 $ — 2023 242 2024 472 2025 485 2026 — Thereafter 5,164 Total $ 6,363 |
Schedule Of Net Financing Cost Components | The following schedule includes the components of net financing costs. Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Interest based on debt outstanding $ 93 $ 65 $ 296 $ 195 Gain on early retirement of debt — — (30 ) — Interest income (1 ) (5 ) (2 ) (12 ) Other (6 ) 6 (21 ) 17 Total net financing costs $ 86 $ 66 $ 243 $ 200 |
WPX | |
Debt Instrument [Line Items] | |
Schedule Of Debt Instruments and Balances | The following schedule includes the summary of the WPX debt Devon assumed upon closing of the Merger on January 7, 2021. Face Value Fair Value Optional Redemption (1) 6.00% due January 15, 2022 $ 43 $ 44 8.25% due August 1, 2023 242 281 June 1, 2023 5.25% due September 15, 2024 472 530 June 15, 2024 5.75% due June 1, 2026 500 529 June 1, 2021 5.25% due October 15, 2027 600 646 October 15, 2022 5.875% due June 15, 2028 500 554 June 15, 2023 4.50% due January 15, 2030 900 978 January 15, 2025 $ 3,257 $ 3,562 (1) At any time prior to these dates, Devon has or had the option to redeem (i) some or all of the notes at a specified "make whole" premium and (ii) a portion of certain of the notes at applicable redemption prices, in each case as described in the indenture documents governing the notes to be redeemed. On or after these dates, Devon has or had the option to redeem the notes, in whole or in part, at the applicable redemption prices set forth in the indenture documents, plus accrued and unpaid interest thereon to the redemption date as more fully described in such documents. |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Leases [Abstract] | |
Schedule of Right-of-use Assets and Lease Liabilities | The following table presents Devon’s right-of-use assets and lease liabilities as of September 30, 2021 and December 31, 2020. September 30, 2021 December 31, 2020 Finance Operating Total Finance Operating Total Right-of-use assets $ 214 $ 30 $ 244 $ 220 $ 3 $ 223 Lease liabilities: Current lease liabilities (1) $ 8 $ 20 $ 28 $ 8 $ 1 $ 9 Long-term lease liabilities 246 10 256 244 2 246 Total lease liabilities $ 254 $ 30 $ 284 $ 252 $ 3 $ 255 (1) |
Asset Retirement Obligations (T
Asset Retirement Obligations (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Summary Of Changes In Asset Retirement Obligations | The following table presents the changes in Devon’s asset retirement obligations. Nine Months Ended September 30, 2021 2020 Asset retirement obligations as of beginning of period $ 369 $ 398 Assumed WPX obligations 98 — Liabilities incurred 28 15 Liabilities settled and divested (52 ) (24 ) Revision of estimated obligation 11 4 Accretion expense on discounted obligation 21 15 Asset retirement obligations as of end of period 475 408 Less current portion 13 10 Asset retirement obligations, long-term $ 462 $ 398 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Stockholders Equity Note [Abstract] | |
Summary of Purchases of Common Stock | The table below provides information regarding purchases of Devon’s common stock that were made in 2020 under a share repurchase program that expired at the end of 2020 (shares in thousands). Total Number of Shares Purchased Dollar Value of Shares Purchased Average Price Paid per Share First quarter 2020 2,243 $ 38 $ 16.85 Total 2,243 $ 38 $ 16.85 |
Schedule of Dividends Payable | The following table summarizes Devon’s fixed and variable dividends for the first nine months of 2021 and 2020, respectively. Fixed Variable Total Rate Per Share 2021: First quarter $ 76 $ 127 $ 203 $ 0.30 Second quarter 75 154 229 $ 0.34 Third quarter 74 255 329 $ 0.49 Total year-to-date $ 225 $ 536 $ 761 2020: First quarter $ 34 $ — $ 34 $ 0.09 Second quarter 42 — 42 $ 0.11 Third quarter 43 — 43 $ 0.11 Total year-to-date $ 119 $ — $ 119 |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Discontinued Operations And Disposal Groups [Abstract] | |
Summary of Amounts Reported as Discontinued Operations in the Consolidated Comprehensive Statements of Earnings and Carrying Amounts of Assets and Liabilities Classified as Held for Sale on the Consolidated Balance Sheets | The following table presents the amounts reported in the consolidated statements of comprehensive earnings as discontinued operations. Three Months Ended September 30, 2020 Nine Months Ended September 30, 2020 Oil, gas and NGL sales $ 94 $ 263 Total revenues 94 263 Production expenses 66 214 Asset impairments (1) 3 182 Asset dispositions — (2 ) General and administrative expenses 2 3 Financing costs, net (1 ) (3 ) Other, net 26 19 Total expenses 96 413 Loss from discontinued operations before income taxes (2 ) (150 ) Income tax benefit (15 ) (47 ) Net earnings (loss) from discontinued operations, net of tax $ 13 $ (103 ) (1) Devon recognized $182 million of asset impairments in the first nine months of 2020 related to the Barnett Shale assets primarily due to the difference between the net carrying value and the purchase price, net of estimated customary purchase price adjustments, which qualified as a level 2 fair value measurement. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Schedule Of Carrying Value And Fair Value Measurement Information For Financial Assets And Liabilities | Fair Value Measurements Using: Carrying Total Fair Level 1 Level 2 Level 3 Amount Value Inputs Inputs Inputs September 30, 2021 assets (liabilities): Cash equivalents $ 1,321 $ 1,321 $ 1,321 $ — $ — Commodity derivatives $ 2 $ 2 $ — $ 2 $ — Commodity derivatives $ (1,086 ) $ (1,086 ) $ — $ (1,086 ) $ — Debt $ (6,492 ) $ (7,629 ) $ — $ (7,629 ) $ — Contingent earnout payments $ 135 $ 135 $ — $ — $ 135 December 31, 2020 assets (liabilities): Cash equivalents $ 1,436 $ 1,436 $ 1,436 $ — $ — Commodity derivatives $ 6 $ 6 $ — $ 6 $ — Commodity derivatives $ (148 ) $ (148 ) $ — $ (148 ) $ — Debt $ (4,298 ) $ (5,365 ) $ — $ (5,365 ) $ — Contingent earnout payments $ 66 $ 66 $ — $ — $ 66 |
Summary Of Significant Accoun_4
Summary Of Significant Accounting Policies (Narrative) (Details) $ in Millions | Jan. 07, 2021 | Sep. 30, 2021USD ($)a | Sep. 30, 2021USD ($)a | Sep. 30, 2020USD ($) |
Summary Of Significant Accounting Policies [Line Items] | ||||
Conversion of common stock into right to recieve per share | 0.5165 | 0.5165 | ||
Restricted cash | $ 177 | $ 177 | $ 190 | |
Barnett Shale [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Restricted cash | 165 | $ 165 | ||
Cash payments for divestitures | $ 10 | |||
Devon and WPX Agreement [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Date of agreement | Jan. 7, 2021 | Jan. 7, 2021 | ||
Conversion of common stock into right to recieve per share | 0.5165 | |||
WPX and Howard Energy Partners [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Voting interest in the join venture legal entity | 50.00% | 50.00% | ||
Catalyst [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Area of land | a | 50,000 | 50,000 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Schedule of Revenue from Contracts with Customers) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Disaggregation Of Revenue [Line Items] | ||||
Total revenues from contracts with customers | $ 3,801 | $ 1,154 | $ 9,499 | $ 3,276 |
Oil, Gas and NGL Sales [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenues from contracts with customers | 2,635 | 678 | 6,546 | 1,909 |
Oil, Gas and NGL Sales [Member] | Oil [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenues from contracts with customers | 1,900 | 504 | 4,917 | 1,462 |
Oil, Gas and NGL Sales [Member] | Gas [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenues from contracts with customers | 309 | 79 | 699 | 221 |
Oil, Gas and NGL Sales [Member] | NGL [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenues from contracts with customers | 426 | 95 | 930 | 226 |
Marketing and Midstream Revenues [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenues from contracts with customers | 1,166 | 476 | 2,953 | 1,367 |
Marketing and Midstream Revenues [Member] | Oil [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenues from contracts with customers | 649 | 233 | 1,758 | 702 |
Marketing and Midstream Revenues [Member] | Gas [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenues from contracts with customers | 196 | 100 | 477 | 275 |
Marketing and Midstream Revenues [Member] | NGL [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenues from contracts with customers | $ 321 | $ 143 | $ 718 | $ 390 |
Acquisition and Divestitures (N
Acquisition and Divestitures (Narrative) (Details) $ in Millions | Jan. 07, 2021 | Mar. 31, 2021USD ($)MMBoe | Dec. 31, 2020USD ($)$ / MMBTU$ / bbl | Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($) | Dec. 31, 2024 |
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations And Disposition [Line Items] | ||||||
Conversion of common stock into right to recieve per share | 0.5165 | 0.5165 | ||||
Common Stock Shares Issued | $ 38 | $ 68 | ||||
Gain on asset dispositions | $ 2 | |||||
Gain loss on disposition of assets | 119 | |||||
BKV [Member] | Barnett Shale [Member] | ||||||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations And Disposition [Line Items] | ||||||
Divestitures of property and equipment | 490 | |||||
Contingent earnout payments | $ 260 | |||||
Henry Hub gas price for contingent earnout payment upside | $ / MMBTU | 2.75 | |||||
WTI oil price for contingent earnout payment upside | $ / bbl | 50 | |||||
Gain loss on disposition of assets | 65 | |||||
BKV [Member] | Barnett Shale [Member] | Other Current Assets [Member] | ||||||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations And Disposition [Line Items] | ||||||
Contingent earnout payments | 46 | |||||
BKV [Member] | Barnett Shale [Member] | Other Noncurrent Assets [Member] | ||||||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations And Disposition [Line Items] | ||||||
Contingent earnout payments | $ 85 | |||||
BKV [Member] | Barnett Shale [Member] | Scenario Forecast [Member] | ||||||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations And Disposition [Line Items] | ||||||
Contingent earnout payment period | The contingent payment period commenced on January 1, 2021 and has a term of four years. | |||||
Non Core Assets [Member] | ||||||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations And Disposition [Line Items] | ||||||
Divestitures of property and equipment | $ 9 | |||||
Gain on asset dispositions | 35 | |||||
Contingent earnout payments | $ 8 | |||||
Total estimated proved reserves | MMBoe | 3 | |||||
Devon and WPX Agreement [Member] | ||||||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations And Disposition [Line Items] | ||||||
Date of agreement | Jan. 7, 2021 | Jan. 7, 2021 | ||||
Conversion of common stock into right to recieve per share | 0.5165 | |||||
Common Stock Shares Issued | $ 5,400 |
Acquisition and Divestitures (S
Acquisition and Divestitures (Schedule of Preliminary Allocation of the Total Purchase Price) (Details) $ / shares in Units, $ in Millions | Jan. 07, 2021shares | Sep. 30, 2021USD ($)$ / sharesshares | Dec. 31, 2020shares |
Consideration: | |||
Conversion of common stock into right to recieve per share | 0.5165 | 0.5165 | |
Common stock, shares issued (in shares) | shares | 677,000,000 | 382,000,000 | |
Total common equity consideration | $ 5,383 | ||
Share-based replacement awards | 49 | ||
Total consideration | 5,432 | ||
Assets acquired: | |||
Cash, cash equivalents and restricted cash | 344 | ||
Accounts receivable | 425 | ||
Other current assets | 49 | ||
Right-of-use assets | 38 | ||
Proved oil and gas property and equipment | 7,017 | ||
Unproved and properties under development | 2,362 | ||
Other property and equipment | 485 | ||
Investments | 400 | ||
Other long-term assets | 43 | ||
Total assets acquired | 11,163 | ||
Liabilities assumed: | |||
Accounts payable | 346 | ||
Revenue and royalties payable | 223 | ||
Other current liabilities | 454 | ||
Debt | 3,562 | ||
Lease liabilities | 38 | ||
Asset retirement obligations | 94 | ||
Deferred income taxes | 249 | ||
Other long-term liabilities | 765 | ||
Total liabilities assumed | 5,731 | ||
Net assets acquired | $ 5,432 | ||
WPX | |||
Consideration: | |||
WPX Common Stock outstanding | shares | 561,200,000 | ||
Devon and WPX Agreement [Member] | |||
Consideration: | |||
Conversion of common stock into right to recieve per share | 0.5165 | ||
Common stock, shares issued (in shares) | shares | 290,000,000 | 289,900,000 | |
Devon closing price on January 7, 2021 | $ / shares | $ 18.57 |
Acquisition and Divestitures _2
Acquisition and Divestitures (Schedule of WPX Revenue and Earnings Included In Devon's Consolidated Comprehensive Statements Of Earnings) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Business Acquisition [Line Items] | ||||
Total revenues | $ 3,466 | $ 1,067 | $ 7,933 | $ 3,548 |
Net earnings (loss) | 844 | $ (90) | 1,321 | $ (2,573) |
WPX | ||||
Business Acquisition [Line Items] | ||||
Total revenues | 1,564 | 3,977 | ||
Net earnings (loss) | $ 414 | $ 969 |
Acquisition and Divestitures _3
Acquisition and Divestitures (Schedule of Pro Forma Adjustments to Confirm Acquisition) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Business Acquisition [Line Items] | ||||
Total revenues | $ 3,466 | $ 1,067 | $ 7,933 | $ 3,548 |
Net earnings (loss) | $ 844 | $ (90) | $ 1,321 | $ (2,573) |
Basic net loss per share | $ 1.24 | $ (0.25) | $ 1.95 | $ (6.85) |
Devon and WPX Agreement [Member] | Pro Forma [Member] | ||||
Business Acquisition [Line Items] | ||||
Total revenues | $ 1,540 | $ 5,452 | ||
Net earnings (loss) | $ (281) | $ (3,247) | ||
Basic net loss per share | $ (0.42) | $ (4.87) |
Derivative Financial Instrume_3
Derivative Financial Instruments (Narrative) (Details) | Sep. 30, 2021USD ($) |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Cash collateral held | $ 0 |
Cash collateral posted | $ 0 |
Derivative Financial Instrume_4
Derivative Financial Instruments (Schedule Of Open Oil Derivative Positions) (Details) | 9 Months Ended |
Sep. 30, 2021$ / bblbbl | |
NYMEX West Texas Intermediate Price Swaps Oil Q4 2021 [Member] | |
Derivatives, Fair Value [Line Items] | |
Volume Per Day (Bbls/d) | bbl | 66,460 |
Weighted Average Price Swap | 41.24 |
NYMEX West Texas Intermediate Price Swaps Oil Q1-Q4 2022 [Member] | |
Derivatives, Fair Value [Line Items] | |
Volume Per Day (Bbls/d) | bbl | 26,112 |
Weighted Average Price Swap | 43.75 |
NYMEX West Texas Intermediate Price Swaptions Oil Q1-Q4 2022 [Member] | |
Derivatives, Fair Value [Line Items] | |
Volume Per Day (Bbls/d) | bbl | 10,000 |
Weighted Average Price Swap | 46.67 |
NYMEX West Texas Intermediate Price Collars Oil Q4 2021 [Member] | |
Derivatives, Fair Value [Line Items] | |
Volume Per Day (Bbls/d) | bbl | 48,250 |
Weighted Average Floor Price | 38.82 |
Weighted Average Ceiling Price | 48.82 |
NYMEX West Texas Intermediate Price Collars Oil Q1-Q4 2022 [Member] | |
Derivatives, Fair Value [Line Items] | |
Volume Per Day (Bbls/d) | bbl | 20,233 |
Weighted Average Floor Price | 46.41 |
Weighted Average Ceiling Price | 56.41 |
NYMEX West Texas Intermediate Call Options Sold Oil Q4 2021 [Member] | |
Derivatives, Fair Value [Line Items] | |
Volume Per Day (Bbls/d) | bbl | 5,000 |
Weighted Average Price Swap | 39.50 |
Midland Sweet Basis Swaps Oil Q4 2021 [Member] | |
Derivatives, Fair Value [Line Items] | |
Volume Per Day (Bbls/d) | bbl | 23,000 |
Oil Basis Swaps | 0.84 |
BRENT Basis Swaps Oil Q1-Q4 2022 [Member] | |
Derivatives, Fair Value [Line Items] | |
Volume Per Day (Bbls/d) | bbl | 1,000 |
Oil Basis Swaps | (7.75) |
Guernsey Light Basis Sweet Basic Swaps Oil Q4 2021 [Member] | |
Derivatives, Fair Value [Line Items] | |
Volume Per Day (Bbls/d) | bbl | 4,000 |
Oil Basis Swaps | (1.49) |
NYMEX Roll Basis Swaps Oil Q1-Q4 2022 [Member] | |
Derivatives, Fair Value [Line Items] | |
Volume Per Day (Bbls/d) | bbl | 29,000 |
Oil Basis Swaps | 0.45 |
BRENT Basis Swaps Oil Q4 2021 [Member] | |
Derivatives, Fair Value [Line Items] | |
Volume Per Day (Bbls/d) | bbl | 1,000 |
Oil Basis Swaps | (8) |
NYMEX Roll Basis Swaps Oil Q4 2021 [Member] | |
Derivatives, Fair Value [Line Items] | |
Volume Per Day (Bbls/d) | bbl | 13,000 |
Oil Basis Swaps | 0.39 |
Derivative Financial Instrume_5
Derivative Financial Instruments (Schedule Of Open Natural Gas Derivative Positions) (Details) | 9 Months Ended | |
Sep. 30, 2021MMBTU$ / MMBTU | ||
FERC Henry Hub Price Swaps Natural Gas Q4 2021 [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Volume Per Day (MMBtu/d) | MMBTU | 254,000 | [1] |
Weighted Average Price Swap | 2.63 | [1] |
FERC Henry Hub Price Swaps Natural Gas Q1-Q4 2022 [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Volume Per Day (MMBtu/d) | MMBTU | 3,452 | [1] |
Weighted Average Price Swap | 2.85 | [1] |
FERC Henry Hub Price Swaptions Natural Gas Q1-Q4 2022 [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Volume Per Day (MMBtu/d) | MMBTU | 100,000 | [2] |
Weighted Average Price Swap | 2.70 | [2] |
FERC Henry Hub Price Collars Natural Gas Q4 2021 [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Volume Per Day (MMBtu/d) | MMBTU | 133,000 | [2] |
Weighted Average Floor Price | 2.55 | [2] |
Weighted Average Ceiling Price | 3.05 | [2] |
FERC Henry Hub Price Collars Natural Gas Q1-Q4 2022 [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Volume Per Day (MMBtu/d) | MMBTU | 145,507 | [2] |
Weighted Average Floor Price | 2.69 | [2] |
Weighted Average Ceiling Price | 3.40 | [2] |
FERC Henry Hub Price Collars Natural Gas Q1-Q4 2023 [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Volume Per Day (MMBtu/d) | MMBTU | 10,603 | [2] |
Weighted Average Floor Price | 3.11 | [2] |
Weighted Average Ceiling Price | 4.56 | [2] |
FERC Henry Hub Call Options Sold Natural Gas Q4 2021 [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Volume Per Day (MMBtu/d) | MMBTU | 50,000 | [2] |
Weighted Average Price Swap | 2.68 | [2] |
El Paso Natural Gas Basis Swaps Q4 2021 [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Volume Per Day (MMBtu/d) | MMBTU | 35,000 | |
Weighted Average Differential To Henry Hub | (0.92) | |
WAHA Natural Gas Basis Swaps Q4 2021 [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Volume Per Day (MMBtu/d) | MMBTU | 80,000 | |
Weighted Average Differential To Henry Hub | (0.65) | |
WAHA Natural Gas Basis Swaps Q1-Q4 2022 [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Volume Per Day (MMBtu/d) | MMBTU | 70,000 | |
Weighted Average Differential To Henry Hub | (0.57) | |
WAHA Natural Gas Basis Swaps Q1-Q4 2023 [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Volume Per Day (MMBtu/d) | MMBTU | 70,000 | |
Weighted Average Differential To Henry Hub | (0.51) | |
WAHA Natural Gas Basis Swaps Q1-Q4 2024 [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Volume Per Day (MMBtu/d) | MMBTU | 40,000 | |
Weighted Average Differential To Henry Hub | (0.51) | |
[1] | Related to the 2021 open positions, 14,000 MMBtu/d settle against the Inside FERC first of month Henry Hub index at an average price of $2.85 and 240,000 MMBtu/d settle against the end of month NYMEX index at an average price of $2.62. All 2022 open positions settle against the Inside FERC first of month Henry Hub index. | |
[2] | Price swaptions and call options settle against end of month NYMEX index. Price collars settle against the Inside FERC first of month Henry Hub Index. |
Derivative Financial Instrume_6
Derivative Financial Instruments (Schedule Of Open Natural Gas Derivative Positions) (Parenthetical) (Details) | 9 Months Ended |
Sep. 30, 2021$ / MMBTUbbl | |
FERC Henry Hub Natural Gas [Member] | |
Derivatives, Fair Value [Line Items] | |
Volume Per Day (Bbls/d) | bbl | 14,000 |
Weighted Average Price Swap | $ / MMBTU | 2.85 |
NYMEX West Texas Intermediate [Member] | |
Derivatives, Fair Value [Line Items] | |
Volume Per Day (Bbls/d) | bbl | 240,000 |
Weighted Average Price Swap | $ / MMBTU | 2.62 |
Derivative Financial Instrume_7
Derivative Financial Instruments (Schedule Of Open NGL Derivative Positions) (Details) | 9 Months Ended |
Sep. 30, 2021$ / bblbbl | |
OPIS Mont Belvieu Texas Natural Gasoline Price Swaps NGL Q4 2021 [Member] | |
Derivatives, Fair Value [Line Items] | |
Volume Per Day (Bbls/d) | bbl | 1,000 |
Weighted Average Price Swap | $ / bbl | 47.57 |
OPIS Mont Belvieu Texas Normal Butane Price Swaps NGL Q4 2021 [Member] | |
Derivatives, Fair Value [Line Items] | |
Volume Per Day (Bbls/d) | bbl | 1,000 |
Weighted Average Price Swap | $ / bbl | 31.40 |
OPIS Mont Belvieu Texas Propane Price Swaps NGL Q4 2021 [Member] | |
Derivatives, Fair Value [Line Items] | |
Volume Per Day (Bbls/d) | bbl | 1,000 |
Weighted Average Price Swap | $ / bbl | 27.88 |
Derivative Financial Instrume_8
Derivative Financial Instruments (Schedule Of Derivative Financial Instruments Included In The Consolidated Balance Sheets) (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2021 | Dec. 31, 2020 | |
Derivatives Fair Value [Line Items] | ||
Gross Fair Value | $ (1,084) | $ (142) |
Net Fair Value | (1,084) | (142) |
Short-term Derivative Asset [Member] | ||
Derivatives Fair Value [Line Items] | ||
Gross Fair Value | 3 | 23 |
Amounts Netted | (1) | (18) |
Net Fair Value | $ 2 | 5 |
Balance Sheet Classification | Other current assets | |
Long-term Derivative Asset [Member] | ||
Derivatives Fair Value [Line Items] | ||
Gross Fair Value | 1 | |
Net Fair Value | 1 | |
Balance Sheet Classification | Other long-term assets | |
Short-term Derivative Liability [Member] | ||
Derivatives Fair Value [Line Items] | ||
Gross Fair Value | $ (984) | (161) |
Amounts Netted | 1 | 18 |
Net Fair Value | $ (983) | (143) |
Balance Sheet Classification | Other current liabilities | |
Long-term Derivative Liability [Member] | ||
Derivatives Fair Value [Line Items] | ||
Gross Fair Value | $ (103) | (5) |
Net Fair Value | $ (103) | $ (5) |
Balance Sheet Classification | Other long-term liabilities |
Share-Based Compensation (Sched
Share-Based Compensation (Schedule Of Share-Based Compensation Expense Included In The Consolidated Statements Of Comprehensive Earnings) (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Share-based compensation expense | $ 80 | $ 70 |
Related income tax benefit | 8 | |
G&A [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Share-based compensation expense | 58 | 58 |
Exploration Expenses [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Share-based compensation expense | 1 | 1 |
Restructuring and Transaction Costs [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Restructuring and transaction costs | $ 21 | $ 11 |
Share-Based Compensation (Summa
Share-Based Compensation (Summary Of Unvested Restricted Stock Awards, Performance-Based Restricted Stock Awards And Performance Share Units) (Details) shares in Thousands | 9 Months Ended | |
Sep. 30, 2021$ / sharesshares | ||
Restricted Stock Awards [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Unvested at December 31, 2020 | shares | 5,316 | |
Granted, awards and units | shares | 7,711 | [1] |
Vested, awards and units | shares | (5,006) | |
Forfeited, awards and units | shares | (126) | |
Unvested at September 30, 2021 share | shares | 7,895 | |
Unvested weighted average grant-date fair value at December 31, 2020 | $ / shares | $ 25.82 | |
Granted, weighted average grant-date fair value | $ / shares | 19.69 | |
Vested, weighted average grant-date fair value | $ / shares | 22.35 | |
Forfeited, weighted average grant-date fair value | $ / shares | 23.21 | |
Unvested weighted average grant-date fair value at September 30, 2021 | $ / shares | $ 22.08 | |
Performance-Based Restricted Stock Awards [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Unvested at December 31, 2020 | shares | 44 | |
Vested, awards and units | shares | (44) | |
Unvested weighted average grant-date fair value at December 31, 2020 | $ / shares | $ 44.70 | |
Vested, weighted average grant-date fair value | $ / shares | $ 44.70 | |
Performance Share Units [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Unvested at December 31, 2020 | shares | 1,994 | |
Granted, awards and units | shares | 861 | |
Vested, awards and units | shares | (754) | |
Forfeited, awards and units | shares | (25) | |
Unvested at September 30, 2021 share | shares | 2,076 | [2] |
Unvested weighted average grant-date fair value at December 31, 2020 | $ / shares | $ 31.89 | |
Granted, weighted average grant-date fair value | $ / shares | 18.08 | |
Vested, weighted average grant-date fair value | $ / shares | 37.40 | |
Forfeited, weighted average grant-date fair value | $ / shares | 36.04 | |
Unvested weighted average grant-date fair value at September 30, 2021 | $ / shares | $ 24.12 | |
[1] | Due to the closing of the Merger, each share of WPX common stock was automatically converted into the right to receive 0.5165 of a share of Devon common stock. As a result, approximately 4.9 million awards relate to the conversion of WPX equity awards to Devon equity awards. | |
[2] | A maximum of 4.2 million common shares could be awarded based upon Devon’s final TSR ranking. |
Share-Based Compensation (Sum_2
Share-Based Compensation (Summary Of Unvested Restricted Stock Awards, Performance-Based Restricted Stock Awards And Performance Share Units) (Parenthetical) (Details) shares in Millions | Jan. 07, 2021shares | Sep. 30, 2021shares |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Conversion of common stock into right to recieve per share | 0.5165 | 0.5165 |
Performance Share Units [Member] | Maximum [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Maximum common shares that could be awarded based upon total shareholder return | 4.2 | |
Devon and WPX Agreement [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Conversion of common stock into right to recieve per share | 0.5165 | |
Conversion of WPX equity awards to Devon equity awards | 4.9 |
Share-Based Compensation (Sum_3
Share-Based Compensation (Summary Of Performance Share Units Grant-Date Fair Values And Their Related Assumptions) (Details) - Performance Share Units [Member] | 9 Months Ended |
Sep. 30, 2021$ / shares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Grant-date fair value | $ 18.08 |
Risk-free interest rate | 0.18% |
Volatility factor | 67.80% |
Contractual term (years) | 2 years 10 months 20 days |
Share-Based Compensation (Sum_4
Share-Based Compensation (Summary of Unrecognized Compensation Cost And Weighted Average Period For Recognition) (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2021USD ($) | |
Restricted Stock Awards [Member] | |
Unrecognized Compensation And Weighted Average Recognition [Line Items] | |
Unrecognized compensation cost | $ 97 |
Weighted average period for recognition (years) | 2 years 6 months |
Performance Share Units [Member] | |
Unrecognized Compensation And Weighted Average Recognition [Line Items] | |
Unrecognized compensation cost | $ 15 |
Weighted average period for recognition (years) | 1 year 10 months 24 days |
Asset Impairments (Summary of A
Asset Impairments (Summary of Asset Impairments) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Impaired Long Lived Assets Held And Used [Line Items] | ||||
Asset impairment charges | $ 2,666 | |||
Unproved impairments | $ 3 | $ 39 | $ 9 | 163 |
Proved Oil and Gas Assets [Member] | ||||
Impaired Long Lived Assets Held And Used [Line Items] | ||||
Asset impairment charges | 2,664 | |||
Other Assets [Member] | ||||
Impaired Long Lived Assets Held And Used [Line Items] | ||||
Asset impairment charges | 2 | |||
Unproved Impairments [Member] | ||||
Impaired Long Lived Assets Held And Used [Line Items] | ||||
Unproved impairments | $ 1 | $ 36 | $ 3 | $ 149 |
Asset Impairments (Narrative) (
Asset Impairments (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Impaired Long Lived Assets Held And Used [Line Items] | |||||
Asset impairments | $ 2,666 | ||||
Exploration expenses | $ 3 | $ 39 | $ 9 | 163 | |
Proved Asset Impairments [Member] | |||||
Impaired Long Lived Assets Held And Used [Line Items] | |||||
Asset impairments | $ 2,700 | ||||
Product Line Fill Impairments [Member] | |||||
Impaired Long Lived Assets Held And Used [Line Items] | |||||
Asset impairments | $ 2 | ||||
Unproved Impairments [Member] | |||||
Impaired Long Lived Assets Held And Used [Line Items] | |||||
Exploration expenses | $ 1 | $ 36 | $ 3 | $ 149 |
Restructuring and Transaction_3
Restructuring and Transaction Costs - (Schedule Of Restructuring And Transaction Costs) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Restructuring Cost And Reserve [Line Items] | ||||
Restructuring costs | $ 18 | $ 32 | $ 230 | $ 32 |
Other Restructuring [Member] | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Restructuring costs | 16 | $ 32 | 182 | $ 32 |
Transaction Costs [Member] | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Restructuring costs | $ 2 | $ 48 |
Restructuring and Transaction_4
Restructuring and Transaction Costs (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Restructuring Cost And Reserve [Line Items] | ||||
Restructuring and transaction costs | $ 18 | $ 32 | $ 230 | $ 32 |
Reduction of workforce [Member] | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Restructuring and transaction costs | 32 | 182 | ||
Noncash restructuring costs | $ 11 | 21 | ||
Reduction Of Workforce [Member] | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Noncash restructuring costs | 65 | |||
Reduction Of Workforce [Member] | Defined Benefit Settlements [Member] | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Restructuring and transaction costs | 40 | |||
Transaction Costs [Member] | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Underwriting, bank, legal and accounting fees | $ 48 | $ 48 |
Restructuring and Transaction_5
Restructuring and Transaction Costs (Schedule Of The Activity And Balances Associated With Restructuring Liabilities) (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Restructuring Cost And Reserve [Line Items] | ||
Beginning balance | $ 172 | $ 21 |
Ending balance | 173 | 18 |
Merger Integration [Member] | ||
Restructuring Cost And Reserve [Line Items] | ||
Merger integration | 27 | |
Prior years' restructurings [Member] | ||
Restructuring Cost And Reserve [Line Items] | ||
Restructuring reserve activity | (26) | (3) |
Other Current Liabilities [Member] | ||
Restructuring Cost And Reserve [Line Items] | ||
Beginning balance | 35 | 20 |
Ending balance | 54 | 17 |
Other Current Liabilities [Member] | Merger Integration [Member] | ||
Restructuring Cost And Reserve [Line Items] | ||
Merger integration | 27 | |
Other Current Liabilities [Member] | Prior years' restructurings [Member] | ||
Restructuring Cost And Reserve [Line Items] | ||
Restructuring reserve activity | (8) | (3) |
Other Long-Term Liabilities [Member] | ||
Restructuring Cost And Reserve [Line Items] | ||
Beginning balance | 137 | 1 |
Ending balance | 119 | $ 1 |
Other Long-Term Liabilities [Member] | Prior years' restructurings [Member] | ||
Restructuring Cost And Reserve [Line Items] | ||
Restructuring reserve activity | $ (18) |
Income Taxes (Schedule of Compo
Income Taxes (Schedule of Components of Income Tax Expense (Benefit)) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | ||||
Earnings (loss) from continuing operations before income taxes | $ 964 | $ (193) | $ 1,236 | $ (2,980) |
Current income tax expense (benefit) | 1 | (90) | 15 | (199) |
Deferred income tax expense (benefit) | 119 | (100) | (311) | |
Total income tax expense (benefit) | $ 120 | $ (90) | $ (85) | $ (510) |
Income Taxes (Schedule Of Effec
Income Taxes (Schedule Of Effective Income Tax Rate Reconciliation) (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | ||||
U.S. statutory income tax rate | 21.00% | 21.00% | 21.00% | 21.00% |
State income taxes | 0.00% | 0.00% | 0.00% | 1.00% |
Unrecognized tax benefits | 0.00% | 18.00% | 0.00% | 0.00% |
Deferred tax asset valuation allowance | (9.00%) | 4.00% | (33.00%) | (7.00%) |
Other | 0.00% | 4.00% | 5.00% | 2.00% |
Effective income tax rate | 12.00% | 47.00% | (7.00%) | 17.00% |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) $ in Millions | Sep. 30, 2021USD ($) |
Income Tax [Line Items] | |
Deferred income taxes | $ 249 |
U.S Federal [Member] | |
Income Tax [Line Items] | |
Operating Loss Carryforwards | 1,800 |
WPX Merger [Member] | |
Income Tax [Line Items] | |
Deferred income taxes | $ 249 |
Net Earnings (Loss) Per Share_3
Net Earnings (Loss) Per Share from Continuing Operations (Net Earnings (Loss) Per Share Computations from Continuing Operations) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Net earnings (loss) from continuing operations: | ||||
Net earnings (loss) from continuing operations | $ 838 | $ (105) | $ 1,307 | $ (2,475) |
Attributable to participating securities | (6) | (2) | (11) | (3) |
Basic and diluted earnings (loss) from continuing operations | $ 832 | $ (107) | $ 1,296 | $ (2,478) |
Common shares: | ||||
Common shares outstanding - total | 677 | 383 | 670 | 383 |
Attributable to participating securities | (6) | (6) | (6) | (6) |
Common shares outstanding - basic | 671 | 377 | 664 | 377 |
Dilutive effect of potential common shares issuable | 2 | 2 | ||
Common shares outstanding - diluted | 673 | 377 | 666 | 377 |
Net earnings (loss) per share from continuing operations: | ||||
Basic | $ 1.24 | $ (0.29) | $ 1.95 | $ (6.58) |
Diluted | $ 1.24 | $ (0.29) | $ 1.95 | $ (6.58) |
Other Comprehensive Earnings _3
Other Comprehensive Earnings (Loss) (Components Of Other Comprehensive Earnings (Loss)) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | ||
Pension and postretirement benefit plans: | |||||
Beginning accumulated pension and postretirement benefits | $ (101) | $ (117) | $ (127) | $ (119) | |
Recognition of net actuarial loss and prior service cost in earnings | [1] | 1 | 1 | 2 | 4 |
Settlement of pension benefits | [2] | 18 | |||
Income tax expense | (1) | ||||
Other | [3] | 7 | |||
Accumulated other comprehensive loss, net of tax | $ (100) | $ (116) | $ (100) | $ (116) | |
[1] | Recognition of net actuarial loss and prior service cost are included in the computation of net periodic benefit cost, which is a component of other, net in the accompanying consolidated statements of comprehensive earnings. | ||||
[2] | The Merger triggered settlement payments to certain plan participants, and the expense associated with this settlement is recognized as a component of restructuring and transaction costs in the accompanying consolidated statements of comprehensive earnings | ||||
[3] | Other includes a remeasurement of the pension obligation due to the Merger, which was partially offset by a change in mortality assumption. |
Supplemental Information To S_3
Supplemental Information To Statements Of Cash Flows (Schedule Of Supplemental Information To Statements Of Cash Flows) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Changes in assets and liabilities, net: | ||||
Accounts receivable | $ (332) | $ 21 | $ (495) | $ 339 |
Income tax receivable | (40) | 94 | (112) | |
Other current assets | 21 | 18 | (36) | 10 |
Other long-term assets | 14 | (9) | (9) | (33) |
Accounts payable and revenues and royalties payable | 469 | 100 | 557 | (160) |
Other current liabilities | (49) | 15 | (30) | (82) |
Other long-term liabilities | (15) | (87) | (123) | (59) |
Total | 68 | 58 | (42) | (97) |
Supplementary cash flow data - total operations: | ||||
Interest paid | 100 | 64 | 319 | 194 |
Income taxes paid (refunded) | $ (4) | $ (2) | $ (116) | $ 170 |
Supplemental Information To S_4
Supplemental Information To Statements Of Cash Flows (Narrative) (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Jan. 07, 2021 | Dec. 31, 2020 |
Total Property And Equipment Net And Accounts Payable Member | |||
Supplemental Cash Flow [Line Items] | |||
Accrued capital expenditures | $ 200 | $ 100 | |
Accounts Payable Member | WPX | |||
Supplemental Cash Flow [Line Items] | |||
Accrued capital expenditures | $ 150 |
Accounts Receivable (Schedule O
Accounts Receivable (Schedule Of Components Of Accounts Receivable) (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Joint interest billings | $ 150 | $ 57 |
Other | 22 | 25 |
Gross accounts receivable | 1,529 | 612 |
Allowance for doubtful accounts | (12) | (11) |
Net accounts receivable | 1,517 | 601 |
Oil, Gas and NGL Sales [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Gross accounts receivable | 986 | 335 |
Marketing and Midstream Revenues [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Gross accounts receivable | $ 371 | $ 195 |
Property, Plant and Equipment_2
Property, Plant and Equipment (Summary of Property and Equipment, net) (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 | |
Property and equipment: | |||
Proved | $ 36,489 | $ 27,589 | |
Unproved and properties under development | 2,169 | 392 | |
Total oil and gas | 38,658 | 27,981 | |
Less accumulated DD&A | (25,045) | (23,545) | |
Oil and gas property and equipment, net | 13,613 | 4,436 | |
Other property and equipment | 2,113 | 1,737 | |
Less accumulated DD&A | (648) | (780) | |
Other property and equipment, net | [1] | 1,465 | 957 |
Total property and equipment, net | $ 15,078 | $ 5,393 | |
[1] | $106 million and $102 million related to CDM in 2021 and 2020, respectively. |
Property, Plant and Equipment_3
Property, Plant and Equipment (Summary of Property and Equipment, net) (Parenthetical) (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 | |
Property Plant And Equipment [Line Items] | |||
Other property and equipment, net | [1] | $ 1,465 | $ 957 |
CDM [Member] | |||
Property Plant And Equipment [Line Items] | |||
Other property and equipment, net | $ 106 | $ 102 | |
[1] | $106 million and $102 million related to CDM in 2021 and 2020, respectively. |
Debt And Related Expenses (Sche
Debt And Related Expenses (Schedule Of Debt Instruments and Balances) (Details) - USD ($) $ in Millions | 9 Months Ended | ||
Sep. 30, 2021 | Dec. 31, 2020 | ||
Debt Instrument [Line Items] | |||
Long-term debt, gross | $ 6,363 | ||
Net premium (discount) on debentures and notes | 160 | $ (20) | |
Debt issuance costs | (31) | (31) | |
Long-term debt | 6,492 | $ 4,298 | |
8.25% due August 1, 2023 [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | [1] | $ 242 | |
Debt interest rate, stated percentage | 8.25% | 8.25% | |
Debt, maturity date | Aug. 1, 2023 | ||
5.25% due September 15, 2024 [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | [1] | $ 472 | |
Debt interest rate, stated percentage | 5.25% | 5.25% | |
Debt, maturity date | Sep. 15, 2024 | ||
5.85% due December 15, 2025 [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | $ 485 | $ 485 | |
Debt interest rate, stated percentage | 5.85% | 5.85% | |
Debt, maturity date | Dec. 15, 2025 | ||
7.50% due September 15, 2027 [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | $ 73 | $ 73 | |
Debt interest rate, stated percentage | 7.50% | 7.50% | |
Debt, maturity date | Sep. 15, 2027 | ||
5.25% due October 15, 2027 [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | [1] | $ 390 | |
Debt interest rate, stated percentage | 5.25% | 5.25% | |
Debt, maturity date | Oct. 15, 2027 | ||
5.875% due June 15, 2028 [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | [1] | $ 325 | |
Debt interest rate, stated percentage | 5.875% | 5.875% | |
Debt, maturity date | Jun. 15, 2028 | ||
4.50% due January 15, 2030 [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | [1] | $ 585 | |
Debt interest rate, stated percentage | 4.50% | 4.50% | |
Debt, maturity date | Jan. 15, 2030 | ||
7.875% due September 30, 2031 [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | $ 675 | $ 675 | |
Debt interest rate, stated percentage | 7.875% | 7.875% | |
Debt, maturity date | Sep. 30, 2031 | ||
7.95% due April 15, 2032 [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | $ 366 | $ 366 | |
Debt interest rate, stated percentage | 7.95% | 7.95% | |
Debt, maturity date | Apr. 15, 2032 | ||
5.60% due July 15, 2041 [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | $ 1,250 | $ 1,250 | |
Debt interest rate, stated percentage | 5.60% | 5.60% | |
Debt, maturity date | Jul. 15, 2041 | ||
4.75% due May 15, 2042 [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | $ 750 | $ 750 | |
Debt interest rate, stated percentage | 4.75% | 4.75% | |
Debt, maturity date | May 15, 2042 | ||
5.00% due June 15, 2045 [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | $ 750 | $ 750 | |
Debt interest rate, stated percentage | 5.00% | 5.00% | |
Debt, maturity date | Jun. 15, 2045 | ||
[1] | These instruments were assumed by Devon in January 2021 in conjunction with the Merger. Subsequent to debt retirements and the obligor exchange transaction completed during the first nine months of 2021, approximately $51 million of these instruments remain the unsecured and unsubordinated obligation of WPX, a wholly-owned subsidiary of Devon |
Debt And Related Expenses (Sc_2
Debt And Related Expenses (Schedule Of Debt Instruments and Balances) (Parenthetical) (Details) $ in Millions | Sep. 30, 2021USD ($) |
Debt Instrument [Line Items] | |
Long-term debt, gross | $ 6,363 |
WPX | |
Debt Instrument [Line Items] | |
Long-term debt, gross | $ 51 |
Debt And Related Expenses (Sc_3
Debt And Related Expenses (Schedule Of Debt Maturities) (Details) $ in Millions | Sep. 30, 2021USD ($) |
Debt Disclosure [Abstract] | |
2023 | $ 242 |
2024 | 472 |
2025 | 485 |
Thereafter | 5,164 |
Total | $ 6,363 |
Debt And Related Expenses (Sc_4
Debt And Related Expenses (Schedule of WPX Debt assumed with the Merger) (Details) - WPX $ in Millions | 9 Months Ended | |
Sep. 30, 2021USD ($) | ||
Debt Instrument [Line Items] | ||
Face Value | $ 3,257 | |
Fair Value | 3,562 | |
6.00% due January 15, 2022 [Member] | ||
Debt Instrument [Line Items] | ||
Face Value | 43 | |
Fair Value | 44 | |
8.25% due August 1, 2023 [Member] | ||
Debt Instrument [Line Items] | ||
Face Value | 242 | |
Fair Value | $ 281 | |
Optional Redemption | Jun. 1, 2023 | [1] |
5.25% due September 15, 2024 [Member] | ||
Debt Instrument [Line Items] | ||
Face Value | $ 472 | |
Fair Value | $ 530 | |
Optional Redemption | Jun. 15, 2024 | [1] |
5.75% due June 1, 2026 [Member] | ||
Debt Instrument [Line Items] | ||
Face Value | $ 500 | |
Fair Value | $ 529 | |
Optional Redemption | Jun. 1, 2021 | [1] |
5.25% due October 15, 2027 [Member] | ||
Debt Instrument [Line Items] | ||
Face Value | $ 600 | |
Fair Value | $ 646 | |
Optional Redemption | Oct. 15, 2022 | [1] |
5.875% due June 15, 2028 [Member] | ||
Debt Instrument [Line Items] | ||
Face Value | $ 500 | |
Fair Value | $ 554 | |
Optional Redemption | Jun. 15, 2023 | [1] |
4.50% due January 15, 2030 [Member] | ||
Debt Instrument [Line Items] | ||
Face Value | $ 900 | |
Fair Value | $ 978 | |
Optional Redemption | Jan. 15, 2025 | [1] |
[1] | At any time prior to these dates, Devon has or had the option to redeem (i) some or all of the notes at a specified "make whole" premium and (ii) a portion of certain of the notes at applicable redemption prices, in each case as described in the indenture documents governing the notes to be redeemed. On or after these dates, Devon has or had the option to redeem the notes, in whole or in part, at the applicable redemption prices set forth in the indenture documents, plus accrued and unpaid interest thereon to the redemption date as more fully described in such documents. |
Debt And Related Expenses (Narr
Debt And Related Expenses (Narrative) (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2021USD ($) | |
Debt Instrument [Line Items] | |
Repayments of long-term debt | $ 1,243 |
Early retirement of debt | 30 |
Charge on early retirement of debt, cash retirement costs | 59 |
Senior Credit Facility [Member] | |
Debt Instrument [Line Items] | |
Credit Facility, borrowing capacity | 3,000 |
Outstanding credit facility borrowings | $ 0 |
Debt-to-capitalization ratio | 0.65 |
Outstanding letters of credit | $ 2 |
Senior Credit Facility [Member] | Maximum [Member] | |
Debt Instrument [Line Items] | |
Debt-to-capitalization ratio | 0.251 |
Senior Notes [Member] | |
Debt Instrument [Line Items] | |
Early retirement of debt | $ 30 |
Charge on early retirement of debt, cash retirement costs | 59 |
Charge on early retirement of debt, noncash charges | 89 |
6.00% Due 2022 [Member] | Senior Notes [Member] | |
Debt Instrument [Line Items] | |
Repayments of long-term debt | $ 43 |
Debt interest rate, stated percentage | 6.00% |
5.875% Due 2028 [Member] | Senior Notes [Member] | |
Debt Instrument [Line Items] | |
Repayments of long-term debt | $ 175 |
Debt interest rate, stated percentage | 5.875% |
4.5% Due 2030 [Member] | Senior Notes [Member] | |
Debt Instrument [Line Items] | |
Repayments of long-term debt | $ 315 |
Debt interest rate, stated percentage | 4.50% |
5.25% Due 2027 [Member] | Senior Notes [Member] | |
Debt Instrument [Line Items] | |
Repayments of long-term debt | $ 210 |
Debt interest rate, stated percentage | 5.25% |
5.75% due June 1, 2026 [Member] | Senior Notes [Member] | |
Debt Instrument [Line Items] | |
Repayments of long-term debt | $ 500 |
Debt interest rate, stated percentage | 5.75% |
Debt And Related Expenses (Sc_5
Debt And Related Expenses (Schedule of Net Financing Cost Components) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Debt Disclosure [Abstract] | ||||
Interest based on debt outstanding | $ 93 | $ 65 | $ 296 | $ 195 |
Gain on early retirement of debt | (30) | |||
Interest income | (1) | (5) | (2) | (12) |
Other | (6) | 6 | (21) | 17 |
Total net financing costs | $ 86 | $ 66 | $ 243 | $ 200 |
Leases (Schedule of Right-of-us
Leases (Schedule of Right-of-use Assets and Lease Liabilities) (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 | |
Leases [Abstract] | |||
Right-of-use assets, finance lease | $ 214 | $ 220 | |
Finance lease liabilities: | |||
Current lease liabilities, finance lease | [1] | 8 | 8 |
Long-term lease liabilities, finance lease | 246 | 244 | |
Total lease liabilities, finance lease | 254 | 252 | |
Right-of-use assets, operating lease | 30 | 3 | |
Operating lease liabilities: | |||
Current lease liabilities, operating lease | [1] | 20 | 1 |
Long-term lease liabilities, operating lease | 10 | 2 | |
Total lease liabilities, operating lease | 30 | 3 | |
Right-of-use assets | 244 | 223 | |
Lease liabilities: | |||
Current lease liabilities | [1] | 28 | 9 |
Long-term lease liabilities | 256 | 246 | |
Total lease liabilities | $ 284 | $ 255 | |
[1] | Current lease liabilities are included in other current liabilities on the consolidated balance sheets. |
Asset Retirement Obligations (S
Asset Retirement Obligations (Summary Of Changes In Asset Retirement Obligations) (Details) - USD ($) $ in Millions | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Asset Retirement Obligation Disclosure [Abstract] | |||
Asset retirement obligations as of beginning of period | $ 369 | $ 398 | |
Assumed WPX obligations | 98 | ||
Liabilities incurred | 28 | 15 | |
Liabilities settled and divested | (52) | (24) | |
Revision of estimated obligation | 11 | 4 | |
Accretion expense on discounted obligation | 21 | 15 | |
Asset retirement obligations as of end of period | 475 | 408 | |
Less current portion | 13 | 10 | |
Asset retirement obligations, long-term | $ 462 | $ 398 | $ 358 |
Stockholders' Equity (Narrative
Stockholders' Equity (Narrative) (Details) $ / shares in Units, $ in Millions | Nov. 02, 2021USD ($)$ / shares | Jan. 07, 2021shares | Sep. 30, 2021$ / sharesshares | Jun. 30, 2021$ / shares | Mar. 31, 2021$ / shares | Sep. 30, 2020$ / shares | Jun. 30, 2020$ / shares | Mar. 31, 2020$ / shares | Sep. 30, 2021shares | Dec. 31, 2020shares |
Stockholders Equity [Abstract] | ||||||||||
Conversion of common stock into right to recieve per share | 0.5165 | 0.5165 | ||||||||
Common stock, shares issued (in shares) | shares | 677,000,000 | 677,000,000 | 382,000,000 | |||||||
Dividends rate per share | $ 0.49 | $ 0.34 | $ 0.30 | $ 0.11 | $ 0.11 | $ 0.09 | ||||
Subsequent Event | ||||||||||
Stockholders Equity [Abstract] | ||||||||||
Repurchase of common stock | $ | $ 1,000 | |||||||||
Repurchase program expiration date | Dec. 31, 2022 | |||||||||
Dividend payable, per share | $ 0.84 | |||||||||
Dividends payable, year | 2021 | |||||||||
Subsequent Event | Fixed Dividend [Member] | ||||||||||
Stockholders Equity [Abstract] | ||||||||||
Dividend payable amount | $ | $ 74 | |||||||||
Dividends rate per share | $ 0.11 | |||||||||
Subsequent Event | Variable Dividend [Member] | ||||||||||
Stockholders Equity [Abstract] | ||||||||||
Dividend payable, per share | $ 0.73 | |||||||||
Dividend payable amount | $ | $ 494 | |||||||||
Devon and WPX Agreement [Member] | ||||||||||
Stockholders Equity [Abstract] | ||||||||||
Conversion of common stock into right to recieve per share | 0.5165 | |||||||||
Common stock, shares issued (in shares) | shares | 290,000,000 | 289,900,000 | 289,900,000 |
Stockholders' Equity (Summary o
Stockholders' Equity (Summary of Purchases of Common Stock) (Details) $ / shares in Units, shares in Thousands, $ in Millions | 3 Months Ended |
Mar. 31, 2020USD ($)$ / sharesshares | |
Stockholders Equity [Line Items] | |
Total Number of Shares Purchased | shares | 2,243 |
Dollar Value of Shares Purchased | $ | $ 38 |
Average Price Paid per Share | $ / shares | $ 16.85 |
First Quarter 2020 Share Repurchase Program [Member] | |
Stockholders Equity [Line Items] | |
Total Number of Shares Purchased | shares | 2,243 |
Dollar Value of Shares Purchased | $ | $ 38 |
Average Price Paid per Share | $ / shares | $ 16.85 |
Stockholders' Equity (Summary_2
Stockholders' Equity (Summary Of Dividends Paid On Common Stock) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Stockholders Equity [Line Items] | ||||||||
Dividends amount | $ 329 | $ 229 | $ 203 | $ 43 | $ 42 | $ 34 | $ 761 | $ 119 |
Dividends rate per share | $ 0.49 | $ 0.34 | $ 0.30 | $ 0.11 | $ 0.11 | $ 0.09 | ||
Fixed Dividend [Member] | ||||||||
Stockholders Equity [Line Items] | ||||||||
Dividends amount | $ 74 | $ 75 | $ 76 | $ 43 | $ 42 | $ 34 | 225 | $ 119 |
Variable Dividend [Member] | ||||||||
Stockholders Equity [Line Items] | ||||||||
Dividends amount | $ 255 | $ 154 | $ 127 | $ 536 |
Discontinued Operations (Narrat
Discontinued Operations (Narrative) (Details) - BKV [Member] - Barnett Shale [Member] $ in Millions | Oct. 01, 2020USD ($)$ / MMBTU$ / bbl | Sep. 30, 2021 | Dec. 31, 2024USD ($) |
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | |||
Proceeds from the sale of business | $ 490 | ||
Henry Hub gas price for contingent earnout payment upside | $ / MMBTU | 2.75 | ||
WTI oil price for contingent earnout payment upside | $ / bbl | 50 | ||
Contingent earnout payment period | The contingent payment period commenced on January 1, 2021 and has a term of four years. | ||
Scenario Forecast [Member] | Maximum [Member] | |||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | |||
Contingent earnout payments | $ 260 |
Discontinued Operations (Amount
Discontinued Operations (Amounts Reported as Discontinued Operations in the Consolidated Statements of Comprehensive Earnings) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2020 | ||
Discontinued Operations And Disposal Groups [Abstract] | |||
Oil, gas and NGL sales | $ 94 | $ 263 | |
Total revenues | 94 | 263 | |
Production expenses | 66 | 214 | |
Asset impairment charges | [1] | 3 | 182 |
Asset dispositions | (2) | ||
General and administrative expenses | 2 | 3 | |
Financing costs, net | (1) | (3) | |
Other, net | 26 | 19 | |
Total expenses | 96 | 413 | |
Loss from discontinued operations before income taxes | (2) | (150) | |
Income tax expense (benefit) | (15) | (47) | |
Net earnings (loss) from discontinued operations, net of tax | $ 13 | $ (103) | |
[1] | Devon recognized $182 million of asset impairments in the first nine months of 2020 related to the Barnett Shale assets primarily due to the difference between the net carrying value and the purchase price, net of estimated customary purchase price adjustments, which qualified as a level 2 fair value measurement. |
Discontinued Operations (Amou_2
Discontinued Operations (Amounts Reported as Discontinued Operations in the Consolidated Statements of Comprehensive Earnings) Parenthetical (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2020 | ||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | |||
Asset impairments | [1] | $ 3 | $ 182 |
Barnett Shale [Member] | |||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | |||
Asset impairments | $ 182 | ||
[1] | Devon recognized $182 million of asset impairments in the first nine months of 2020 related to the Barnett Shale assets primarily due to the difference between the net carrying value and the purchase price, net of estimated customary purchase price adjustments, which qualified as a level 2 fair value measurement. |
Fair Value Measurements (Schedu
Fair Value Measurements (Schedule Of Carrying Value And Fair Value Measurement Information For Financial Assets And Liabilities) (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Carrying Amount [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | $ 1,321 | $ 1,436 |
Debt | (6,492) | (4,298) |
Contingent earnout payments | 135 | 66 |
Carrying Amount [Member] | Commodity Derivatives [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives, assets | 2 | 6 |
Derivatives, liabilities | (1,086) | (148) |
Total Fair Value [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 1,321 | 1,436 |
Debt | (7,629) | (5,365) |
Contingent earnout payments | 135 | 66 |
Total Fair Value [Member] | Commodity Derivatives [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives, assets | 2 | 6 |
Derivatives, liabilities | (1,086) | (148) |
Level 1 Inputs [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 1,321 | 1,436 |
Level 2 Inputs [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt | (7,629) | (5,365) |
Level 2 Inputs [Member] | Commodity Derivatives [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives, assets | 2 | 6 |
Derivatives, liabilities | (1,086) | (148) |
Level 3 Inputs [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Contingent earnout payments | $ 135 | $ 66 |