EX-99.2

EX-99.2 3 d816697dex992.htm EX-99.2 EX-99.2

Exhibit 99.2

Devon Energy Second-Quarter 2024

Supplemental Tables


TABLE OF CONTENTS:	PAGE:

Consolidated Statements of Earnings		2

Supplemental Information for Consolidated Statements of Earnings		3

Consolidated Balance Sheets		4

Consolidated Statements of Cash Flows		5

Production		6

Capital Expenditures and Supplemental Information for Capital Expenditures		7

Realized Pricing		8

Asset Margins		9

Core Earnings and EBITDAX		10

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

CONSOLIDATED STATEMENTS OF EARNINGS


(in millions, except per share amounts)	2024					2023
	Quarter 2		Quarter 1			Quarter 4		Quarter 3			Quarter 2
Oil, gas and NGL sales	$	2,796	$	2,629		$	2,737	$	2,882		$	2,493
Oil, gas and NGL derivatives ⁽¹⁾		23		(145	)		324		(194	)		(76	)
Marketing and midstream revenues		1,098		1,112			1,084		1,148			1,037

Total revenues		3,917		3,596			4,145		3,836			3,454

Production expenses ⁽²⁾		788		751			759		757			719
Exploration expenses		3		9			4		3			10
Marketing and midstream expenses		1,108		1,133			1,093		1,160			1,051
Depreciation, depletion and amortization		768		722			650		651			638
Asset dispositions		15		1			11		—			(41	)
General and administrative expenses		114		114			111		99			92
Financing costs, net ⁽³⁾		76		76			77		81			78
Other, net		5		22			10		13			10

Total expenses		2,877		2,828			2,715		2,764			2,557

Earnings before income taxes		1,040		768			1,430		1,072			897
Income tax expense ⁽⁴⁾		185		159			269		152			199

Net earnings		855		609			1,161		920			698
Net earnings attributable to noncontrolling interests		11		13			9		10			8

Net earnings attributable to Devon	$	844	$	596		$	1,152	$	910		$	690

Net earnings per share:
Basic net earnings per share	$	1.35	$	0.95		$	1.81	$	1.43		$	1.08
Diluted net earnings per share	$	1.34	$	0.94		$	1.81	$	1.42		$	1.07
Weighted average common shares outstanding:
Basic		626		629			635		637			638
Diluted		628		632			638		639			639

SUPPLEMENTAL INFORMATION FOR CONSOLIDATED STATEMENTS OF EARNINGS

(1) OIL, GAS AND NGL DERIVATIVES


(in millions)	2024						2023
	Quarter 2			Quarter 1			Quarter 4		Quarter 3			Quarter 2
Derivative cash settlements	$	54		$	24		$	8	$	(11	)	$	37
Derivative valuation changes		(31	)		(169	)		316		(183	)		(113	)

Oil, gas and NGL derivatives	$	23		$	(145	)	$	324	$	(194	)	$	(76	)

(2) PRODUCTION EXPENSES


(in millions)	2024				2023
	Quarter 2		Quarter 1		Quarter 4		Quarter 3		Quarter 2
Lease operating expense	$	383	$	380	$	381	$	367	$	353
Gathering, processing & transportation		197		180		181		178		177
Production taxes		188		175		182		191		165
Property taxes		20		16		15		21		24

Production expenses	$	788	$	751	$	759	$	757	$	719

(3) FINANCING COSTS, NET


(in millions)	2024						2023
	Quarter 2			Quarter 1			Quarter 4			Quarter 3			Quarter 2
Interest based on outstanding debt	$	88		$	87		$	87		$	93		$	96
Interest income		(14	)		(13	)		(12	)		(11	)		(15	)
Other		2			2			2			(1	)		(3	)

Financing costs, net	$	76		$	76		$	77		$	81		$	78

(4) INCOME TAX EXPENSE


(in millions)	2024				2023
	Quarter 2		Quarter 1		Quarter 4		Quarter 3		Quarter 2
Current expense	$	146	$	119	$	105	$	139	$	80
Deferred expense		39		40		164		13		119

Income tax expense	$	185	$	159	$	269	$	152	$	199

CONSOLIDATED BALANCE SHEETS


(in millions)	2024						2023
	Quarter 2			Quarter 1			Quarter 4			Quarter 3			Quarter 2
Current assets:
Cash, cash equivalents and restricted cash	$	1,169		$	1,149		$	875		$	761		$	488
Accounts receivable		1,589			1,670			1,573			1,853			1,519
Inventory		258			234			249			233			201
Other current assets		343			345			460			365			397

Total current assets		3,359			3,398			3,157			3,212			2,605
Oil and gas property and equipment, based on successful efforts accounting, net		18,216			18,033			17,825			17,563			17,317
Other property and equipment, net		1,569			1,551			1,503			1,468			1,446

Total property and equipment, net		19,785			19,584			19,328			19,031			18,763
Goodwill		753			753			753			753			753
Right-of-use assets		297			276			267			261			266
Investments		704			713			666			671			675
Other long-term assets		264			254			319			313			293

Total assets	$	25,162		$	24,978		$	24,490		$	24,241		$	23,355

Current liabilities:
Accounts payable	$	754		$	879		$	760		$	812		$	843
Revenues and royalties payable		1,363			1,268			1,222			1,434			1,199
Short-term debt		475			479			483			487			244
Other current liabilities		424			640			484			597			383

Total current liabilities		3,016			3,266			2,949			3,330			2,669
Long-term debt		5,665			5,668			5,672			5,675			6,169
Lease liabilities		315			301			295			290			299
Asset retirement obligations		691			683			643			641			548
Other long-term liabilities		829			841			876			850			858
Deferred income taxes		1,917			1,878			1,838			1,676			1,662
Stockholders’ equity:
Common stock		63			63			64			64			64
Additional paid-in capital		5,478			5,718			5,939			6,153			6,131
Retained earnings		7,132			6,509			6,195			5,535			4,940
Accumulated other comprehensive loss		(122	)		(123	)		(124	)		(113	)		(114	)
Treasury stock		—			—			(13	)		—			—

Total stockholders’ equity attributable to Devon		12,551			12,167			12,061			11,639			11,021
Noncontrolling interests		178			174			156			140			129

Total equity		12,729			12,341			12,217			11,779			11,150

Total liabilities and equity	$	25,162		$	24,978		$	24,490		$	24,241		$	23,355

CONSOLIDATED STATEMENTS OF CASH FLOWS


(in millions)	2024						2023
	Quarter 2			Quarter 1			Quarter 4			Quarter 3			Quarter 2
Cash flows from operating activities:
Net earnings	$	855		$	609		$	1,161		$	920		$	698
Adjustments to reconcile net earnings to net cash from operating activities:
Depreciation, depletion and amortization		768			722			650			651			638
Leasehold impairments		1			—			1			1			3
Accretion (amortization) of liabilities		—			—			1			(2	)		(8	)
Total (gains) losses on commodity derivatives		(23	)		145			(324	)		194			76
Cash settlements on commodity derivatives		54			24			8			(11	)		37
(Gains) losses on asset dispositions		15			1			11			—			(41	)
Deferred income tax expense		39			40			164			13			119
Share-based compensation		27			24			23			22			25
Other		—			3			(3	)		(2	)		(2	)
Changes in assets and liabilities, net		(201	)		170			45			(61	)		(140	)

Net cash from operating activities		1,535			1,738			1,737			1,725			1,405

Cash flows from investing activities:
Capital expenditures		(948	)		(894	)		(910	)		(882	)		(1,079	)
Acquisitions of property and equipment		(82	)		(8	)		(10	)		(23	)		(18	)
Divestitures of property and equipment		1			17			3			1			1
Distributions from investments		11			11			8			7			9
Contributions to investments and other		(1	)		(47	)		(1	)		—			(15	)

Net cash from investing activities		(1,019	)		(921	)		(910	)		(897	)		(1,102	)

Cash flows from financing activities:
Repayments of long-term debt		—			—			—			(242	)		—
Repurchases of common stock		(256	)		(205	)		(234	)		—			(228	)
Dividends paid on common stock		(223	)		(299	)		(488	)		(312	)		(462	)
Contributions from noncontrolling interests		12			12			19			10			8
Distributions to noncontrolling interests		(19	)		(7	)		(12	)		(9	)		(13	)
Shares exchanged for tax withholdings and other		(9	)		(42	)		(1	)		—			(9	)

Net cash from financing activities		(495	)		(541	)		(716	)		(553	)		(704	)

Effect of exchange rate changes on cash		(1	)		(2	)		3			(2	)		2

Net change in cash, cash equivalents and restricted cash		20			274			114			273			(399	)
Cash, cash equivalents and restricted cash at beginning of period		1,149			875			761			488			887

Cash, cash equivalents and restricted cash at end of period	$	1,169		$	1,149		$	875		$	761		$	488

Reconciliation of cash, cash equivalents and restricted cash:
Cash and cash equivalents	$	1,140		$	1,126		$	853		$	654		$	372
Restricted cash		29			23			22			107			116

Total cash, cash equivalents and restricted cash	$	1,169		$	1,149		$	875		$	761		$	488

PRODUCTION


	2024				2023
	Quarter 2		Quarter 1		Quarter 4		Quarter 3		Quarter 2
Oil (MBbls/d)
Delaware Basin		221		208		208		215		209
Eagle Ford		46		43		43		40		45
Anadarko Basin		14		11		13		14		15
Williston Basin		37		40		36		35		36
Powder River Basin		13		13		13		13		14
Other		4		4		4		4		4

Total		335		319		317		321		323

Natural gas liquids (MBbls/d)
Delaware Basin		121		113		112		112		105
Eagle Ford		17		14		15		15		16
Anadarko Basin		30		26		29		27		31
Williston Basin		12		10		10		9		9
Powder River Basin		2		2		3		2		2
Other		—		—		—		1		1

Total		182		165		169		166		164

Gas (MMcf/d)
Delaware Basin		712		695		673		680		636
Eagle Ford		92		79		81		78		86
Anadarko Basin		244		223		225		235		254
Williston Basin		71		63		61		58		59
Powder River Basin		18		18		20		18		18
Other		—		1		1		1		1

Total		1,137		1,079		1,061		1,070		1,054

Total oil equivalent (MBoe/d)
Delaware Basin		461		437		433		440		420
Eagle Ford		79		70		72		68		74
Anadarko Basin		84		74		79		80		89
Williston Basin		61		61		55		54		56
Powder River Basin		18		18		19		19		19
Other		4		4		4		4		4

Total		707		664		662		665		662

CAPITAL EXPENDITURES


(in millions)	2024				2023
	Quarter 2		Quarter 1		Quarter 4		Quarter 3		Quarter 2
Delaware Basin	$	505	$	555	$	506	$	503	$	583
Eagle Ford		180		156		194		198		179
Anadarko Basin		56		59		51		13		67
Williston Basin		38		27		55		69		89
Powder River Basin		46		43		55		45		39
Other		3		2		3		2		1

Total upstream capital	$	828	$	842	$	864	$	830	$	958

Carbon capital		24		32		31		25		30
Midstream and Corporate		38		63		45		41		30

Capital expenditures (excluding acquisitions)	$	890	$	937	$	940	$	896	$	1,018

Acquisitions		81		8		11		23		18

SUPPLEMENTAL INFORMATION FOR CAPITAL EXPENDITURES

GROSS OPERATED SPUDS


	2024				2023
	Quarter 2		Quarter 1		Quarter 4		Quarter 3		Quarter 2
Delaware Basin		73		76		60		64		65
Eagle Ford		28		30		26		28		18
Anadarko Basin		13		4		17		10		9
Williston Basin		6		1		—		7		8
Powder River Basin		6		3		5		4		3

Total		126		114		108		113		103

GROSS OPERATED WELLS TIED-IN


	2024				2023
	Quarter 2		Quarter 1		Quarter 4		Quarter 3		Quarter 2
Delaware Basin		62		59		62		59		76
Eagle Ford		23		26		24		13		29
Anadarko Basin		26		5		4		—		16
Williston Basin		—		10		6		6		8
Powder River Basin		3		2		4		3		2

Total		114		102		100		81		131

NET OPERATED WELLS TIED-IN


	2024				2023
	Quarter 2		Quarter 1		Quarter 4		Quarter 3		Quarter 2
Delaware Basin		44		50		47		49		61
Eagle Ford		15		21		20		12		25
Anadarko Basin		14		2		1		—		7
Williston Basin		—		10		3		4		6
Powder River Basin		2		2		4		3		2

Total		75		85		75		68		101

AVERAGE LATERAL LENGTH

(based on wells tied-in)

2024

2023

Quarter 2

Quarter 1

Quarter 4

Quarter 3

Quarter 2

Delaware Basin

10,200’

10,300’

9,700’

10,100’

Eagle Ford

6,800’

6,700’

7,900’

5,000’

6,200’

Anadarko Basin

8,700’

10,000’

12,500’

—

9,100’

Williston Basin

—

9,600’

12,300’

10,000’

Powder River Basin

15,500’

9,600’

13,300’

15,000’

Total

9,300’

9,900’

9,300’

9,200’

REALIZED PRICING

BENCHMARK PRICES


(average prices)	2024						2023
	Quarter 2			Quarter 1			Quarter 4			Quarter 3			Quarter 2
Oil ($/Bbl) - West Texas Intermediate (Cushing)	$	80.62		$	77.01		$	78.48		$	82.06		$	73.76
Natural Gas ($/Mcf) - Henry Hub	$	1.89		$	2.25		$	2.88		$	2.54		$	2.09
NGL ($/Bbl) - Mont Belvieu Blended	$	26.33		$	27.51		$	25.52		$	26.62		$	23.99

REALIZED PRICES
	2024						2023
	Quarter 2			Quarter 1			Quarter 4			Quarter 3			Quarter 2
Oil (Per Bbl)
Delaware Basin	$	79.62		$	76.23		$	77.75		$	80.72		$	71.86
Eagle Ford		80.45			76.51			78.51			80.85			72.36
Anadarko Basin		78.36			74.91			77.09			79.86			71.52
Williston Basin		75.81			71.13			74.26			79.50			70.80
Powder River Basin		75.48			71.93			74.58			78.51			70.75

Realized price without hedges		79.10			75.40			77.32			80.48			71.74
Cash settlements		(0.15	)		(0.25	)		(0.34	)		(0.67	)		—

Realized price, including cash settlements	$	78.95		$	75.15		$	76.98		$	79.81		$	71.74

Natural gas liquids (Per Bbl)
Delaware Basin	$	19.59		$	20.55		$	19.93		$	20.76		$	18.07
Eagle Ford		23.07			23.67			22.67			23.70			20.22
Anadarko Basin		22.16			24.77			21.44			23.37			19.42
Williston Basin		5.49			6.27			2.95			4.09			2.52
Powder River Basin		30.75			32.91			28.80			29.63			24.52

Realized price without hedges		19.60			20.81			19.67			20.72			17.79
Cash settlements		0.11			(0.08	)		—			—			—

Realized price, including cash settlements	$	19.71		$	20.73		$	19.67		$	20.72		$	17.79

Gas (Per Mcf)
Delaware Basin	$	0.17		$	1.19		$	1.76		$	1.94		$	1.18
Eagle Ford		1.48			1.89			2.44			2.31			1.80
Anadarko Basin		1.70			1.92			2.38			2.17			1.72
Williston Basin		N/M			N/M			N/M			N/M			N/M
Powder River Basin		1.64			2.29			2.52			2.53			2.41

Realized price without hedges		0.55			1.30			1.83			1.92			1.27
Cash settlements		0.55			0.32			0.19			0.09			0.39

Realized price, including cash settlements	$	1.10		$	1.62		$	2.02		$	2.01		$	1.66

Total oil equivalent (Per Boe)
Delaware Basin	$	43.63		$	43.55		$	45.38		$	47.68		$	42.05
Eagle Ford		54.03			53.81			54.64			55.71			49.69
Anadarko Basin		25.53			25.48			26.96			27.88			24.04
Williston Basin		46.32			47.37			47.77			52.64			45.94
Powder River Basin		58.99			57.60			57.99			62.21			56.33

Realized price without hedges		43.44			43.52			44.93			47.10			41.39
Cash settlements		0.85			0.39			0.14			(0.18	)		0.61

Realized price, including cash settlements	$	44.29		$	43.91		$	45.07		$	46.92		$	42.00

ASSET MARGINS

BENCHMARK PRICES


(average prices)	2024						2023
	Quarter 2			Quarter 1			Quarter 4			Quarter 3			Quarter 2
Oil ($/Bbl) - West Texas Intermediate (Cushing)	$	80.62		$	77.01		$	78.48		$	82.06		$	73.76
Natural Gas ($/Mcf) - Henry Hub	$	1.89		$	2.25		$	2.88		$	2.54		$	2.09
NGL ($/Bbl) - Mont Belvieu Blended	$	26.33		$	27.51		$	25.52		$	26.62		$	23.99

PER-UNIT CASH MARGIN BY ASSET (per Boe)
	2024						2023
	Quarter 2			Quarter 1			Quarter 4			Quarter 3			Quarter 2
Delaware Basin
Realized price	$	43.63		$	43.55		$	45.38		$	47.68		$	42.05
Lease operating expenses		(5.31	)		(5.54	)		(5.46	)		(5.03	)		(4.96	)
Gathering, processing & transportation		(2.89	)		(2.79	)		(2.75	)		(2.63	)		(2.63	)
Production & property taxes		(3.31	)		(3.16	)		(3.24	)		(3.48	)		(3.18	)

Field-level cash margin	$	32.12		$	32.06		$	33.93		$	36.54		$	31.28

Eagle Ford
Realized price	$	54.03		$	53.81		$	54.64		$	55.71		$	49.69
Lease operating expenses		(7.03	)		(7.59	)		(7.05	)		(7.52	)		(6.18	)
Gathering, processing & transportation		(2.03	)		(1.67	)		(1.62	)		(1.63	)		(1.67	)
Production & property taxes		(2.82	)		(2.73	)		(2.95	)		(3.18	)		(2.97	)

Field-level cash margin	$	42.15		$	41.82		$	43.02		$	43.38		$	38.87

Anadarko Basin
Realized price	$	25.53		$	25.48		$	26.96		$	27.88		$	24.04
Lease operating expenses		(3.16	)		(3.33	)		(3.26	)		(3.43	)		(3.13	)
Gathering, processing & transportation		(5.70	)		(6.27	)		(5.98	)		(6.11	)		(5.97	)
Production & property taxes		(1.19	)		(1.24	)		(1.40	)		(1.36	)		(1.22	)

Field-level cash margin	$	15.48		$	14.64		$	16.32		$	16.98		$	13.72

Williston Basin
Realized price	$	46.32		$	47.37		$	47.77		$	52.64		$	45.94
Lease operating expenses		(10.71	)		(10.88	)		(13.07	)		(13.04	)		(13.43	)
Gathering, processing & transportation		(2.29	)		(2.03	)		(2.34	)		(2.31	)		(2.29	)
Production & property taxes		(4.70	)		(4.72	)		(4.78	)		(5.13	)		(4.68	)

Field-level cash margin	$	28.62		$	29.74		$	27.58		$	32.16		$	25.54

Powder River Basin
Realized price	$	58.99		$	57.60		$	57.99		$	62.21		$	56.33
Lease operating expenses		(9.49	)		(11.66	)		(8.65	)		(8.45	)		(10.03	)
Gathering, processing & transportation		(3.07	)		(3.03	)		(3.17	)		(3.02	)		(2.97	)
Production & property taxes		(6.99	)		(6.91	)		(6.75	)		(7.45	)		(6.79	)

Field-level cash margin	$	39.44		$	36.00		$	39.42		$	43.29		$	36.54

Devon - Total
Realized price	$	43.44		$	43.52		$	44.93		$	47.10		$	41.39
Lease operating expenses		(5.95	)		(6.29	)		(6.25	)		(6.00	)		(5.86	)
Gathering, processing & transportation		(3.07	)		(2.98	)		(2.97	)		(2.91	)		(2.94	)
Production & property taxes		(3.23	)		(3.16	)		(3.24	)		(3.46	)		(3.14	)

Field-level cash margin	$	31.19		$	31.09		$	32.47		$	34.73		$	29.45

NON-GAAP MEASURES

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

Devon’s earnings materials include non-GAAP financial measures. These non-GAAP measures are not alternatives to GAAP measures, and you should not consider these non-GAAP measures in isolation or as a substitute for analysis of our results as reported under GAAP. Below is additional disclosure regarding each of the non-GAAP measures used in the earnings materials, including reconciliations to their most directly comparable GAAP measure.

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

CORE EARNINGS

Devon’s reported net earnings include items of income and expense that are typically excluded by securities analysts in their published estimates of the company’s financial results. Accordingly, the company also uses the measures of core earnings and core earnings per share attributable to Devon. Devon believes these non-GAAP measures facilitate comparisons of its performance to earnings estimates published by securities analysts. Devon also believes these non-GAAP measures can facilitate comparisons of its performance between periods and to the performance of its peers. The following table summarizes the effects of these items on second-quarter 2024 earnings.


	Quarter Ended June 30, 2024
	Before-tax		After-tax		After NCI		Per Diluted Share
Total
Earnings (GAAP)	$	1,040	$	855	$	844	$	1.34
Adjustments:
Asset dispositions		15		11		11		0.02
Asset and exploration impairments		1		1		1		—
Deferred tax asset valuation allowance		—		4		4		0.01
Fair value changes in financial instruments		32		25		25		0.04

Core earnings (Non-GAAP)	$	1,088	$	896	$	885	$	1.41

EBITDAX

Devon believes EBITDAX provides information useful in assessing operating and financial performance across periods. Devon computes EBITDAX as net earnings before financing costs, net; income tax expense; exploration expenses; depreciation, depletion and amortization; asset disposition gains and losses; non-cash share-based compensation; non-cash valuation changes for derivatives and financial instruments; accretion on discounted liabilities; and other items not related to normal operations. EBITDAX as defined by Devon may not be comparable to similarly titled measures used by other companies.


	Q2 ‘24		Q1 ‘24		Q4 ‘23			Q3 ‘23		TTM		Q2 ‘23
Net earnings (GAAP)	$	855	$	609	$	1,161		$	920	$	3,545	$	698
Financing costs, net		76		76		77			81		310		78
Income tax expense		185		159		269			152		765		199
Exploration expenses		3		9		4			3		19		10
Depreciation, depletion and amortization		768		722		650			651		2,791		638
Asset dispositions		15		1		11			—		27		(41	)
Share-based compensation (G&A)		26		24		22			22		94		25
Derivative & financial instrument non-cash val. changes		31		169		(316	)		183		67		113
Accretion on discounted liabilities and other		5		22		10			13		50		10

EBITDAX (Non-GAAP)	$	1,964	$	1,791	$	1,888		$	2,025	$	7,668	$	1,730

NET DEBT

Devon defines net debt as debt (includes short-term and long-term debt) less cash, cash equivalents and restricted cash. Devon believes that netting these sources of cash against debt provides a clearer picture of the future demands on cash from Devon to repay debt.


	2024						2023
	Quarter 2			Quarter 1			Quarter 4			Quarter 3			Quarter 2
Total debt (GAAP)	$	6,140		$	6,147		$	6,155		$	6,162		$	6,413
Less:
Cash, cash equivalents and restricted cash		(1,169	)		(1,149	)		(875	)		(761	)		(488	)

Net debt (Non-GAAP)	$	4,971		$	4,998		$	5,280		$	5,401		$	5,925

NET DEBT-TO-EBITDAX

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


	2024				2023
	Quarter 2		Quarter 1		Quarter 4		Quarter 3		Quarter 2
Net debt (Non-GAAP)	$	4,971	$	4,998	$	5,280	$	5,401	$	5,925
EBITDAX (Non-GAAP) ⁽¹⁾	$	7,668	$	7,434	$	7,534	$	7,776	$	8,239

Net debt-to-EBITDAX (Non-GAAP)		0.6		0.7		0.7		0.7		0.7

(1)	EBITDAX is an annualized measure using a trailing twelve-month calculation.

FREE CASH FLOW

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


	2024						2023
	Quarter 2			Quarter 1			Quarter 4			Quarter 3			Quarter 2
Total operating cash flow (GAAP)	$	1,535		$	1,738		$	1,737		$	1,725		$	1,405
Less capital expenditures:		(948	)		(894	)		(910	)		(882	)		(1,079	)

Free cash flow (Non-GAAP)	$	587		$	844		$	827		$	843		$	326

ADJUSTED FREE CASH FLOW

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


	2024						2023
	Quarter 2			Quarter 1			Quarter 4			Quarter 3			Quarter 2
Total operating cash flow (GAAP)	$	1,535		$	1,738		$	1,737		$	1,725		$	1,405
Changes in assets and liabilities		201			(170	)		(45	)		61			140

Cash flow before balance sheet changes (Non-GAAP)		1,736			1,568			1,692			1,786			1,545
Capital expenditures (Accrued)		(971	)		(945	)		(951	)		(919	)		(1,036	)

Adjusted free cash flow (Non-GAAP)	$	765		$	623		$	741		$	867		$	509

REINVESTMENT RATE

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


	2024						2023
	Quarter 2			Quarter 1			Quarter 4			Quarter 3			Quarter 2
Capital expenditures (Accrued)	$	971		$	945		$	951		$	919		$	1,036
Operating cash flow	$	1,535		$	1,738		$	1,737		$	1,725		$	1,405

Reinvestment rate (Non-GAAP)		63	%		54	%		55	%		53	%		74	%


THIRD-QUARTER AND FULL-YEAR 2024 GUIDANCE

Note: Q3 and full-year 2024 guidance does not include the Grayson Mill acquisition that is expected to close by the end of Q3 2024.

PRODUCTION GUIDANCE



	Quarter 3				Full Year
	Low		High		Low		High
Oil (MBbls/d)		319		325		322		326
Natural gas liquids (MBbls/d)		171		177		172		175
Gas (MMcf/d)		1,080		1,130		1,095		1,120

Total oil equivalent (MBoe/d)		670		690		677		688

CAPITAL EXPENDITURES GUIDANCE



	Quarter 3				Full Year
(in millions)	Low		High		Low		High
Upstream capital	$	820	$	860	$	3,050	$	3,250
Carbon capital		20		30		100		150
Midstream & other capital		30		40		150		200

Total capital	$	870	$	930	$	3,300	$	3,600

PRICE REALIZATIONS GUIDANCE



	Quarter 3						Full Year
	Low			High			Low			High
Oil - % of WTI		95	%		100	%		95	%		100	%
NGL - % of WTI		20	%		30	%		20	%		30	%
Natural gas - % of Henry Hub⁽¹⁾		25	%		45	%		35	%		45	%

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

OTHER GUIDANCE ITEMS



	Quarter 3						Full Year
($ millions, except Boe and %)	Low			High			Low			High
Marketing & midstream operating profit	$	(15	)	$	(5	)	$	(50	)	$	(40	)
LOE & GP&T per BOE	$	9.30		$	9.60		$	9.20		$	9.40
Production & property taxes as % of upstream sales		7.0	%		8.0	%		7.0	%		8.0	%
Exploration expenses	$	—		$	5		$	15		$	25
Depreciation, depletion and amortization	$	730		$	770		$	2,950		$	3,025
General & administrative expenses	$	115		$	125		$	450		$	490
Net financing costs, net	$	70		$	80		$	290		$	310
Other expenses	$	—		$	10		$	30		$	40

INCOME TAX GUIDANCE



	Quarter 3						Full Year
(% of pre-tax earnings)	Low			High			Low			High
Current income tax rate		14	%		16	%		14	%		16	%
Deferred income tax rate		6	%		8	%		6	%		8	%

Total income tax rate		~22%						~22%


CONTINGENT PAYMENTS FOR BARNETT SHALE DIVESTITURE (through 2024)


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

2024 & 2025 HEDGING POSITIONS


Oil Commodity Hedges
	Price Swaps				Price Collars
Period	Volume (Bbls/d)		Weighted Average Price ($/Bbl)		Volume (Bbls/d)		Weighted Average Floor Price ($/Bbl)		Weighted Average Ceiling Price ($/Bbl)
Q3 2024		28,000	$	78.97		88,000	$	67.35	$	85.10
Q4 2024		28,000	$	78.97		78,000	$	68.29	$	84.96
Q1-Q4 2025		4,468	$	72.83		5,992	$	70.00	$	77.97

Oil Basis Swaps


Period	Index		Volume (Bbls/d)		Weighted Average Differential to WTI ($/Bbl)
Q3-Q4 2024		Midland Sweet		69,500	$	1.17
Q3-Q4 2024		NYMEX Roll		26,000	$	0.82
Q1-Q4 2025		Midland Sweet		63,000	$	1.00

Natural Gas Commodity Hedges - Henry Hub


	Price Swaps				Price Collars
Period	Volume (MMBtu/d)		Weighted Average Price ($/MMBtu)		Volume (MMBtu/d)		Weighted Average Floor Price ($/MMBtu)		Weighted Average Ceiling Price ($/MMBtu)
Q3 2024		306,000	$	3.19		15,000	$	3.00	$	3.65
Q4 2024		252,000	$	3.16		15,000	$	3.00	$	3.65
Q1-Q4 2025		200,537	$	3.34		15,000	$	3.00	$	3.65

Natural Gas Basis Swaps


Period	Index	Volume (MMBtu/d)		Weighted Average Differential to Henry Hub ($/MMBtu)
Q3-Q4 2024	El Paso Permian		10,000	$	(1.00	)
Q3-Q4 2024	Houston Ship Channel		160,000	$	(0.28	)
Q3-Q4 2024	WAHA		80,000	$	(0.74	)
Q1-Q4 2025	WAHA		10,000	$	(0.63	)
Q1-Q4 2025	Houston Ship Channel		40,000	$	(0.35	)


2024 & 2025 HEDGING POSITIONS (continued)

NGL Commodity Hedges


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

Devon’s oil derivatives settle against the average of the prompt month NYMEX West Texas Intermediate futures price. Devon’s natural gas derivatives settle against the Inside FERC first of the month Henry Hub index. Devon’s NGL derivatives settle against the average of the prompt month OPIS Mont Belvieu, Texas index. Commodity hedge positions are shown as of June 30, 2024.