Devon Energy : First Quarter 2024 Supplemental Tables
May 01, 2024 at 04:15 pm EDT
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Devon Energy First-Quarter 2024
Supplemental Tables
Index
Financial Statements
Statements of Earnings and Supplemental Information
1
Balance Sheets
2
Statements of Cash Flows
3
Operating Information
Production
4
Capital Expenditures and Supplemental Information
5
Realized Pricing
6
Asset Margins
7
Non-GAAP Measures
Core Earnings
8
EBITDAX
9
Other Non-GAAP Measures
10
1) Statements of Earnings
CONSOLIDATED STATEMENTS OF EARNINGS
(in millions, except per share amounts)
2024
2023
Quarter 1
Quarter 4
Quarter 3
Quarter 2
Quarter 1
Oil, gas and NGL sales
$ 2,629
$ 2,737
$ 2,882
$ 2,493
$ 2,679
Oil, gas and NGL derivatives (1)
(145)
324
(194)
(76)
64
Marketing and midstream revenues
1,112
1,084
1,148
1,037
1,080
Total revenues
3,596
4,145
3,836
3,454
3,823
Production expenses (2)
751
759
757
719
693
Exploration expenses
9
4
3
10
3
Marketing and midstream expenses
1,133
1,093
1,160
1,051
1,105
Depreciation, depletion and amortization
722
650
651
638
615
Asset dispositions
1
11
-0
(41)
-0
General and administrative expenses
114
111
99
92
106
Financing costs, net (3)
76
77
81
78
72
Other, net
22
10
13
10
5
Total expenses
2,828
2,715
2,764
2,557
2,599
Earnings before income taxes
768
1,430
1,072
897
1,224
Income tax expense (4)
159
269
152
199
221
Net earnings
609
1,161
920
698
1,003
Net earnings attributable to noncontrolling interests
13
9
10
8
8
Net earnings attributable to Devon
$ 596
$ 1,152
$ 910
$ 690
$ 995
Net earnings per share:
Basic net earnings per share
$ 0.95
$ 1.81
$ 1.43
$ 1.08
$ 1.53
Diluted net earnings per share
$ 0.94
$ 1.81
$ 1.42
$ 1.07
$ 1.53
Weighted average common shares outstanding:
Basic
629
635
637
638
645
Diluted
632
638
639
639
647
SUPPLEMENTAL INFORMATION FOR CONSOLIDATED STATEMENTS OF EARNINGS
(1) OIL, GAS AND NGL DERIVATIVES
(in millions)
2024
2023
Quarter 1
Quarter 4
Quarter 3
Quarter 2
Quarter 1
Derivative cash settlements
$ 24
$ 8
$ (11)
$ 37
$ 13
Derivative valuation changes
(169)
316
(183)
(113)
51
Oil, gas and NGL derivatives
$ (145)
$ 324
$ (194)
$ (76)
$ 64
(2) PRODUCTION EXPENSES
(in millions)
2024
2023
Quarter 1
Quarter 4
Quarter 3
Quarter 2
Quarter 1
Lease operating expense
$ 380
$ 381
$ 367
$ 353
$ 327
Gathering, processing & transportation
180
181
178
177
166
Production taxes
175
182
191
165
175
Property taxes
16
15
21
24
25
Production expenses
$ 751
$ 759
$ 757
$ 719
$ 693
(3) FINANCING COSTS, NET
(in millions)
2024
2023
Quarter 1
Quarter 4
Quarter 3
Quarter 2
Quarter 1
Interest based on outstanding debt
$ 87
$ 87
$ 93
$ 96
$ 93
Interest income
(13)
(12)
(11)
(15)
(17)
Other
2
2
(1)
(3)
(4)
Financing costs, net
$ 76
$ 77
$ 81
$ 78
$ 72
(4) INCOME TAX EXPENSE
(in millions)
2024
2023
Quarter 1
Quarter 4
Quarter 3
Quarter 2
Quarter 1
Current expense
$ 119
$ 105
$ 139
$ 80
$ 141
Deferred expense
40
164
13
119
80
Income tax expense
$ 159
$ 269
$ 152
$ 199
$ 221
Supp. Info. for Earnings
SUPPLEMENTAL INFORMATION FOR CONSOLIDATED STATEMENTS OF EARNINGS
(1) OIL, GAS AND NGL DERIVATIVES
(in millions)
2023
2022
Quarter 4
Quarter 3
Quarter 2
Quarter 1
Quarter 4
Derivative cash settlements
$ 7
$ (11)
$ 37
$ 13
$ (177)
Derivative valuation changes
95
(183)
(113)
Riddel, Lindsay: Riddel, Lindsay:
51
124
Oil, gas and NGL derivatives
$ 102
$ (194)
$ (76)
$ 64
$ (53)
(2) PRODUCTION EXPENSES
(in millions)
2023
2022
Quarter 4
Quarter 3
Quarter 2
Quarter 1
Quarter 4
Lease operating expense
$ 190
$ 367
$ 353
$ 327
$ 308
Gathering, processing & transportation
146
178
177
166
178
Production taxes
279
191
165
175
210
Property taxes
26
21
24
25
19
Riddel, Lindsay: Riddel, Lindsay:
Production expenses
$ 641
$ 757
$ 719
$ 693
$ 715
(3) FINANCING COSTS, NET
(in millions)
2023
2022
Quarter 4
Quarter 3
Quarter 2
Quarter 1
Quarter 4
Interest based on outstanding debt
$ 29
$ 93
$ 96
$ 93
$ 93
Riddel, Lindsay: Riddel, Lindsay:
Interest income
(6)
(11)
(15)
(17)
(16)
Other
2
(1)
(3)
(4)
(4)
Financing costs, net
$ 25
$ 81
$ 78
$ 72
$ 73
(4) INCOME TAX EXPENSE
(in millions)
2023
2022
Quarter 4
Quarter 3
Quarter 2
Quarter 1
Quarter 4
Current expense
$ 77
$ 139
$ 80
Riddel, Lindsay: Riddel, Lindsay:
$ 141
Riddel, Lindsay: Riddel, Lindsay:
$ 84
Deferred expense
43
13
119
80
265
Income tax expense
$ 120
$ 152
$ 199
Riddel, Lindsay: Riddel, Lindsay:
Riddel, Lindsay: Riddel, Lindsay:
Riddel, Lindsay: Riddel, Lindsay:
Riddel, Lindsay: Riddel, Lindsay:
$ 221
$ 349
2) Balance Sheets
CONSOLIDATED BALANCE SHEETS
(in millions)
2024
2023
Quarter 1
Quarter 4
Quarter 3
Quarter 2
Quarter 1
Current assets:
Cash, cash equivalents and restricted cash
$ 1,149
$ 875
$ 761
$ 488
$ 887
Accounts receivable
1,670
1,573
1,853
1,519
1,615
Inventory
234
249
233
201
212
Other current assets
345
460
365
397
475
Total current assets
3,398
3,157
3,212
2,605
3,189
Oil and gas property and equipment, based on successful efforts accounting, net
18,033
17,825
17,563
17,317
16,932
Other property and equipment, net
1,551
1,503
1,468
1,446
1,583
Total property and equipment, net
19,584
19,328
19,031
18,763
18,515
Goodwill
753
753
753
753
753
Right-of-use assets
276
267
261
266
219
Investments
713
666
671
675
469
Other long-term assets
254
319
313
293
275
Total assets
$ 24,978
$ 24,490
$ 24,241
$ 23,355
$ 23,420
Current liabilities:
Accounts payable
$ 879
$ 760
$ 812
$ 843
$ 935
Revenues and royalties payable
1,268
1,222
1,434
1,199
1,266
Short-term debt
479
483
487
244
247
Income tax payable
189
67
58
1
154
Other current liabilities
451
417
539
382
329
Total current liabilities
3,266
2,949
3,330
2,669
2,931
Long-term debt
5,668
5,672
5,675
6,169
6,175
Lease liabilities
301
295
290
299
256
Asset retirement obligations
683
643
641
548
546
Other long-term liabilities
841
876
850
858
866
Deferred income taxes
1,878
1,838
1,676
1,662
1,543
Stockholders' equity:
Common stock
63
64
64
64
64
Additional paid-in capital
5,718
5,939
6,153
6,131
6,344
Retained earnings
6,509
6,195
5,535
4,940
4,712
Accumulated other comprehensive loss
(123)
(124)
(113)
(114)
(115)
Treasury stock
-
(13)
-
-
(28)
Total stockholders' equity attributable to Devon
12,167
12,061
11,639
11,021
10,977
Noncontrolling interests
174
156
140
129
126
Total equity
12,341
12,217
11,779
11,150
11,103
Total liabilities and equity
$ 24,978
$ 24,490
$ 24,241
$ 23,355
$ 23,420
3) Statements of Cash Flows
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in millions)
2024
2023
Quarter 1
Quarter 4
Quarter 3
Quarter 2
Quarter 1
Cash flows from operating activities:
Net earnings
$ 609
$ 1,161
$ 920
$ 698
$ 1,003
Adjustments to reconcile net earnings to net cash from operating activities:
Depreciation, depletion and amortization
722
650
651
638
615
Leasehold impairments
-
1
1
3
-
Accretion (amortization) of liabilities
-
1
(2)
(8)
(7)
Total (gains) losses on commodity derivatives
145
(324)
194
76
(64)
Cash settlements on commodity derivatives
24
8
(11)
37
13
(Gains) losses on asset dispositions
1
11
-
(41)
-
Deferred income tax expense
40
164
13
119
80
Share-based compensation
24
23
22
25
23
Other
3
(3)
(2)
(2)
2
Changes in assets and liabilities, net
170
45
(61)
(140)
12
Net cash from operating activities
1,738
1,737
1,725
1,405
1,677
Cash flows from investing activities:
Capital expenditures
(894)
(910)
(882)
(1,079)
(1,012)
Acquisitions of property and equipment
(8)
(10)
(23)
(18)
(13)
Divestitures of property and equipment
17
3
1
1
21
Distributions from investments
11
8
7
9
8
Contributions to investments and other
(47)
(1)
-
(15)
(37)
Net cash from investing activities
(921)
(910)
(897)
(1,102)
(1,033)
Cash flows from financing activities:
Repayments of long-term debt
-
-
(242)
-
-
Repurchases of common stock
(205)
(234)
-
(228)
(517)
Dividends paid on common stock
(299)
(488)
(312)
(462)
(596)
Contributions from noncontrolling interests
12
19
10
8
-
Distributions to noncontrolling interests
(7)
(12)
(9)
(13)
(11)
Shares exchanged for tax withholdings and other
(42)
(1)
-
(9)
(87)
Net cash from financing activities
(541)
(716)
(553)
(704)
(1,211)
Effect of exchange rate changes on cash
(2)
3
(2)
2
-
Net change in cash, cash equivalents and restricted cash
274
114
273
(399)
(567)
Cash, cash equivalents and restricted cash at beginning of period
875
761
488
887
1,454
Cash, cash equivalents and restricted cash at end of period
$ 1,149
$ 875
$ 761
$ 488
$ 887
Reconciliation of cash, cash equivalents and restricted cash:
Cash and cash equivalents
$ 1,126
$ 853
$ 654
$ 372
$ 761
Restricted cash
23
22
107
116
126
Total cash, cash equivalents and restricted cash
$ 1,149
$ 875
$ 761
$ 488
$ 887
4) Production
PRODUCTION
2024
2023
Quarter 1
Quarter 4
Quarter 3
Quarter 2
Quarter 1
Oil (MBbls/d)
Delaware Basin
208
208
215
209
211
Eagle Ford
43
43
40
45
40
Anadarko Basin
11
13
14
15
15
Williston Basin
40
36
35
36
36
Powder River Basin
13
13
13
14
14
Other
4
4
4
4
4
Total
319
317
321
323
320
Natural gas liquids (MBbls/d)
Delaware Basin
113
112
112
105
97
Eagle Ford
14
15
15
16
15
Anadarko Basin
26
29
27
31
26
Williston Basin
10
10
9
9
8
Powder River Basin
2
3
2
2
2
Other
-0
- 0
1
1
1.0
Total
165
169
166
164
149
Gas (MMcf/d)
Delaware Basin
695
673
680
636
640
Eagle Ford
79
81
78
86
82
Anadarko Basin
223
225
235
254
237
Williston Basin
63
61
58
59
54
Powder River Basin
18
20
18
18
16
Other
1
1
1
1
1
Total
1,079
1,061
1,070
1,054
1,030
Total oil equivalent (MBoe/d)
Delaware Basin
437
433
440
420
415
Eagle Ford
70
72
68
74
68
Anadarko Basin
74
79
80
89
81
Williston Basin
61
55
54
56
53
Powder River Basin
18
19
19
19
19
Other
4
4
4
4
5
Total
664
662
665
662
641
5) Capital Expenditures
CAPITAL EXPENDITURES
(in millions)
2024
2023
Quarter 1
Quarter 4
Quarter 3
Quarter 2
Quarter 1
Delaware Basin
$ 555
$ 506
$ 503
$ 583
$ 572
Eagle Ford
156
194
198
179
188
Anadarko Basin
59
51
13
67
66
Williston Basin
27
55
69
89
73
Powder River Basin
43
55
45
39
32
Other
2
3
2
1
2
Total upstream capital
$ 842
$ 864
$ 830
$ 958
$ 933
Carbon capital
32
31
25
30
27
Midstream and Corporate
63
45
41
30
28
Acquisitions
8
11
23
18
13
Total capital
$ 945
$ 951
$ 919
$ 1,036
$ 1,001
GROSS OPERATED SPUDS
2024
2023
Quarter 1
Quarter 4
Quarter 3
Quarter 2
Quarter 1
Delaware Basin
76
60
64
65
60
Eagle Ford
30
26
28
18
23
Anadarko Basin
4
17
10
9
19
Williston Basin
1
-0
7
8
6
Powder River Basin
3
5
4
3
3
Total
114
108
113
103
111
GROSS OPERATED WELLS TIED-IN
2024
2023
Quarter 1
Quarter 4
Quarter 3
Quarter 2
Quarter 1
Delaware Basin
59
62
59
76
42
Eagle Ford
26
24
13
29
26
Anadarko Basin
5
4
-0
16
7
Williston Basin
10
6
6
8
17
Powder River Basin
2
4
3
2
5
Total
102
100
81
131
97
NET OPERATED WELLS TIED-IN
2024
2023
Quarter 1
Quarter 4
Quarter 3
Quarter 2
Quarter 1
Delaware Basin
50
47
49
61
40
Eagle Ford
21
20
12
25
18
Anadarko Basin
2
1
-0
7
3
Williston Basin
10
3
4
6
15
Powder River Basin
2
4
3
2
4
Total
85
75
68
101
80
AVERAGE LATERAL LENGTH
(based on wells tied-in)
2024
2023
Quarter 1
Quarter 4
Quarter 3
Quarter 2
Quarter 1
Delaware Basin
10,300'
10,300'
9,700'
10,100'
9,900'
Eagle Ford
6,700'
7,900'
5,000'
6,200'
6,700'
Anadarko Basin
10,000'
12,500'
-0
9,100'
9,300'
Williston Basin
9,600'
12,300'
12,300'
10,000'
11,500'
Powder River Basin
9,600'
9,600'
13,300'
15,000'
10,700'
Total
9,300'
9,900'
9,300'
9,200'
9,300'
6) Realized Pricing
REALIZED PRICING
BENCHMARK PRICES
(average prices)
2024
2023
Quarter 1
Quarter 4
Quarter 3
Quarter 2
Quarter 1
Oil ($/Bbl) - West Texas Intermediate (Cushing)
$ 77.01
$ 78.48
$ 82.06
$ 73.76
$ 76.17
Natural Gas ($/Mcf) - Henry Hub
$ 2.25
$ 2.88
$ 2.54
$ 2.09
$ 3.44
NGL ($/Bbl) - Mont Belvieu Blended
$ 27.51
$ 25.52
$ 26.62
$ 23.99
$ 29.48
REALIZED PRICES
2024
2023
Quarter 1
Quarter 4
Quarter 3
Quarter 2
Quarter 1
Oil (Per Bbl)
Delaware Basin
$ 76.23
$ 77.75
$ 80.72
$ 71.86
$ 74.43
Eagle Ford
76.51
78.51
80.85
72.36
74.06
Anadarko Basin
74.91
77.09
79.86
71.52
74.14
Williston Basin
71.13
74.26
79.50
70.80
74.09
Powder River Basin
71.93
74.58
78.51
70.75
74.30
Realized price without hedges
75.40
77.32
80.48
71.74
74.32
Cash settlements
(0.25)
(0.34)
(1)
- 0
(0.10)
Realized price, including cash settlements
$ 75.15
$ 76.98
$ 79.81
$ 71.74
$ 74.22
Natural gas liquids (Per Bbl)
Delaware Basin
$ 20.55
$ 19.93
$ 20.76
$ 18.07
$ 23.72
Eagle Ford
23.67
22.67
23.70
20.22
26.18
Anadarko Basin
24.77
21.44
23.37
19.42
27.88
Williston Basin
6.27
2.95
4.09
2.52
8.97
Powder River Basin
32.91
28.80
29.63
24.52
35.72
Realized price without hedges
20.81
19.67
20.72
17.79
24.12
Cash settlements
(0.08)
-0
-0
-0
-0
Realized price, including cash settlements
$ 20.73
$ 19.67
$ 20.72
$ 17.79
$ 24.12
Gas (Per Mcf)
Delaware Basin
$ 1.19
$ 1.76
$ 1.94
$ 1.18
$ 1.90
Eagle Ford
1.89
2.44
2.31
1.80
2.99
Anadarko Basin
1.92
2.38
2.17
1.72
3.14
Williston Basin
N/M
N/M
N/M
N/M
1.57
Powder River Basin
2.29
2.52
2.53
2.41
4.25
Realized price without hedges
1.30
1.83
1.92
1.27
2.29
Cash settlements
0.32
0.19
0.09
0.39
0.18
Realized price, including cash settlements
$ 1.62
$ 2.02
$ 2.01
$ 1.66
$ 2.47
Total oil equivalent (Per Boe)
Delaware Basin
$ 43.55
$ 45.38
$ 47.68
$ 42.05
$ 46.35
Eagle Ford
53.81
54.64
55.71
49.69
52.81
Anadarko Basin
25.48
26.96
27.88
24.04
32.16
Williston Basin
47.37
47.77
52.64
45.94
52.94
Powder River Basin
57.60
57.99
62.21
56.33
63.01
Realized price without hedges
43.52
44.93
47.10
41.39
46.44
Cash settlements
0.39
0.14
(0.18)
0.61
0.22
Realized price, including cash settlements
$ 43.91
$ 45.07
$ 46.92
$ 42.00
$ 46.66
7) Asset Margin
ASSET MARGINS
BENCHMARK PRICES
(average prices)
2024
2023
Quarter 1
Quarter 4
Quarter 3
Quarter 2
Quarter 1
Oil ($/Bbl) - West Texas Intermediate (Cushing)
$ 77.01
$ 78.48
$ 82.06
$ 73.76
$ 76.17
Natural Gas ($/Mcf) - Henry Hub
$ 2.25
$ 2.88
$ 2.54
$ 2.09
$ 3.44
NGL ($/Bbl) - Mont Belvieu Blended
$ 27.51
$ 25.52
$ 26.62
$ 23.99
$ 29.48
PER-UNIT CASH MARGIN BY ASSET (per Boe)
2024
2023
Quarter 1
Quarter 4
Quarter 3
Quarter 2
Quarter 1
Delaware Basin
Realized price
$ 43.55
$ 45.38
$ 47.68
$ 42.05
$ 46.35
Lease operating expenses
(5.54)
(5.46)
(5.03)
(4.96)
(4.58)
Gathering, processing & transportation
(2.79)
(2.75)
(2.63)
(2.63)
(2.63)
Production & property taxes
(3.16)
(3.24)
(3.48)
(3.18)
(3.43)
Field-level cash margin
$ 32.06
$ 33.93
$ 36.54
$ 31.28
$ 35.71
Eagle Ford
Realized price
$ 53.81
$ 54.64
$ 55.71
$ 49.69
$ 52.81
Lease operating expenses
(7.59)
(7.05)
(7.52)
(6.18)
(6.32)
Gathering, processing & transportation
(1.67)
(1.62)
(1.63)
(1.67)
(1.49)
Production & property taxes
(2.73)
(2.95)
(3.18)
(2.97)
(3.25)
Field-level cash margin
$ 41.82
$ 43.02
$ 43.38
$ 38.87
$ 41.75
Anadarko Basin
Realized price
$ 25.48
$ 26.96
$ 27.88
$ 24.04
$ 32.16
Lease operating expenses
(3.33)
(3.26)
(3.43)
(3.13)
(3.41)
Gathering, processing & transportation
(6.27)
(5.98)
(6.11)
(5.97)
(5.93)
Production & property taxes
(1.24)
(1.40)
(1.36)
(1.22)
(1.73)
Field-level cash margin
$ 14.64
$ 16.32
$ 16.98
$ 13.72
$ 21.09
Williston Basin
Realized price
$ 47.37
$ 47.77
$ 52.64
$ 45.94
$ 52.94
Lease operating expenses
(10.88)
(13.07)
(13.04)
(13.43)
(13.25)
Gathering, processing & transportation
(2.03)
(2.34)
(2.31)
(2.29)
(2.19)
Production & property taxes
(4.72)
(4.78)
(5.13)
(4.68)
(4.85)
Field-level cash margin
$ 29.74
$ 27.58
$ 32.16
$ 25.54
$ 32.65
Powder River Basin
Realized price
$ 57.60
$ 57.99
$ 62.21
$ 56.33
$ 63.01
Lease operating expenses
(11.66)
(8.65)
(8.45)
(10.03)
(11.07)
Gathering, processing & transportation
(3.03)
(3.17)
(3.02)
(2.97)
(2.73)
Production & property taxes
(6.91)
(6.75)
(7.45)
(6.79)
(7.78)
Field-level cash margin
$ 36.00
$ 39.42
$ 43.29
$ 36.54
$ 41.43
Other
Realized price
$ 78.46
$ 78.46
$ 74.50
$ 65.42
$ 66.65
Lease operating expenses
(11.75)
(11.75)
(28.81)
(28.06)
(24.35)
Gathering, processing & transportation
(0.11)
(0.11)
(0.21)
(0.30)
(0.47)
Production & property taxes
(4.83)
(4.83)
(5.26)
(5.15)
(6.67)
Field-level cash margin
$ 61.78
$ 61.78
$ 40.21
$ 31.90
$ 35.16
Devon - Total
Realized price
$ 43.52
$ 44.93
$ 47.10
$ 41.39
$ 46.44
Lease operating expenses
(6.29)
(6.25)
(6.00)
(5.86)
(5.67)
Gathering, processing & transportation
(2.98)
(2.97)
(2.91)
(2.94)
(2.88)
Production & property taxes
(3.16)
(3.24)
(3.46)
(3.14)
(3.47)
Field-level cash margin
$ 31.09
$ 32.47
$ 34.73
$ 29.45
$ 34.42
8) Core Earnings
CORE EARNINGS
Devon's reported net earnings include items of income and expense that are typically excluded by securities analysts in their published estimates of the company's financial results. Accordingly, the company also uses the measures of core earnings and core earnings per share attributable to Devon. Devon believes these non-GAAP measures facilitate comparisons of its performance to earnings estimates published by securities analysts. Devon also believes these non-GAAP measures can facilitate comparisons of its performance between periods and to the performance of its peers. The following table summarizes the effects of these items on first-quarter 2024 earnings.
Quarter Ended March 31, 2024
Before-tax
After-tax
After NCI
Per Diluted Share
Total
Earnings (GAAP)
$ 768
$ 609
$ 596
$ 0.94
Adjustments:
Asset dispositions
1
1
1
-
Deferred tax asset valuation allowance
-
(1)
(1)
-
Fair value changes in financial instruments
172
134
134
0.22
Core earnings (Non-GAAP)
$ 941
$ 743
$ 730
$ 1.16
9) EBITDAX
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.
FY '22
Q1 '24
Q4 '23
Q3 '23
Q2 '23
TTM
Q1 '23
Net earnings (GAAP)
$ 920
$ 609
$ 1,161
$ 920
$ 698
$ 3,388
$ 1,003
Net (earnings) loss from discontinued operations, net of tax
ERROR:#REF!
-0
-0
-0
-0
$ - 0
- 0
Net earnings (loss) from continuing operations (GAAP)
ERROR:#REF!
ERROR:#REF!
ERROR:#REF!
ERROR:#REF!
ERROR:#REF!
ERROR:#REF!
Financing costs, net
152
76
77
81
78
312
72
Income tax expense
3
159
269
152
199
779
221
Exploration expenses
651
9
4
3
10
26
3
Depreciation, depletion and amortization
- 0
722
650
651
638
2,661
615
Asset impairments
ERROR:#REF!
ERROR:#REF!
ERROR:#REF!
ERROR:#REF!
ERROR:#REF!
ERROR:#REF!
ERROR:#REF!
Asset dispositions
- 0
1
11
-0
(41)
(29)
-0
Share-based compensation
93
24
22
22
25
93
23
Derivative & financial instrument non-cash val. changes
(70)
169
(316)
183
113
149
(51)
Accretion on discounted liabilities and other
13
22
10
13
10
55
5
EBITDAX (Non-GAAP)
ERROR:#REF!
$ 1,791
$ 1,888
$ 2,025
$ 1,730
$ 7,434
$ 1,891
10) Other Non-GAAP
NET DEBT
Devon defines net debt as debt (includes short-term and long-term debt) less cash, cash equivalents and restricted cash. Devon believes that netting these sources of cash against debt provides a clearer picture of the future demands on cash from Devon to repay debt.
Mar. 31, 2024
Dec. 31, 2023
Sep. 30, 2023
Jun. 30, 2023
Mar. 31, 2023
Total debt (GAAP)
$ 6,147
$ 6,155
$ 6,162
$ 6,413
$ 6,422
Less:
Cash, cash equivalents and restricted cash
(1,149)
(875)
(761)
(488)
(887)
Net debt (Non-GAAP)
$ 4,998
$ 5,280
$ 5,401
$ 5,925
$ 5,535
NET DEBT-TO-EBITDAX
Devon defines net debt-to-EBITDAX as net debt divided by an annualized EBITDAX measure. Devon believes this ratio provides information useful to investors in assessing the company's credit position and debt leverage.
Mar. 31, 2024
Dec. 31, 2023
Sep. 30, 2023
Jun. 30, 2023
Mar. 31, 2023
Net debt (Non-GAAP)
$ 4,998
$ 5,280
$ 5,401
$ 5,925
$ 5,535
EBITDAX (Non-GAAP) (1)
$ 7,434
$ 7,534
$ 7,776
$ 8,239
$ 9,342
Net debt-to-EBITDAX (Non-GAAP)
0.7
0.7
0.7
0.7
0.6
FREE CASH FLOW
Devon defines free cash flow as total operating cash flow less capital expenditures. Devon believes free cash flow provides a useful measure of available cash generated by operating activities for other investing and financing activities.
Quarter Ended Mar. 31, 2024
Quarter Ended Dec. 31, 2023
Quarter Ended Sep. 30, 2023
Quarter Ended Jun. 30, 2023
Quarter Ended Mar. 31, 2023
Total operating cash flow (GAAP)
$ 1,738
$ 1,737
$ 1,725
$ 1,405
$ 1,677
Less capital expenditures:
(894)
(910)
(822)
(1,079)
(1,012)
Free cash flow (Non-GAAP)
$ 844
$ 827
$ 843
$ 326
$ 665
ADJUSTED FREE CASH FLOW
Devon is committed to returning approximately 70% of our adjusted free cash flow to shareholders through a fixed dividend, variable dividend and share repurchases. Adjusted free cash flow is calculated as total operating cash flow before balance sheet changes less accrued capital expenditures.
Quarter Ended Mar. 31, 2024
Total operating cash flow (GAAP)
$ 1,738
Changes in assets and liabilities
(170)
Cash flow before balance sheet changes (Non-GAAP)
1,568
Capital expenditures (Accrued)
(945)
Adjusted free cash flow (Non-GAAP)
$ 623
REINVESTMENT RATE
Devon defines reinvestment rate as accrued capital expenditures divided by operating cash flow. Devon believes this measure provides useful information to our investors as an indicator of the capital demands of our business relative to the cash flow generated from normal business operations.
Quarter Ended Mar. 31, 2024
Quarter Ended Dec. 31, 2023
Quarter Ended Sep. 30, 2023
Quarter Ended Jun. 30, 2023
Quarter Ended Mar. 31, 2023
Capital expenditures (Accrued)
$ 945
$ 951
$ 919
$ 1,036
$ 1,001
Operating cash flow
$ 1,738
$ 1,737
$ 1,725
$ 1,405
$ 1,677
Reinvestment rate (Non-GAAP)
54%
55%
53%
74%
60%
WPX Asset Margin
BENCHMARK PRICES
(average prices)
2020
2019
Quarter 4
Quarter 3
Quarter 2
Quarter 1
Quarter 4
Oil ($/Bbl) - West Texas Intermediate (Cushing)
$ 42.65
$ 40.86
$ 28.42
$ 46.44
$ 57.02
$ 32.56
Natural Gas ($/Mcf) - Henry Hub
$ 2.67
$ 1.98
$ 1.71
$ 1.95
$ 2.50
NGL ($/Bbl) - Mont Belvieu Blended
$ 20.01
$ 16.69
$ 12.57
$ 14.39
$ 18.69
$ 41.37
PER-UNIT CASH MARGIN BY ASSET (per Boe)
2020
2019
Quarter 4
Quarter 3
Quarter 2
Quarter 1
Quarter 4
3Q 2019
Delaware Basin
Realized price
$ 27.28
$ 25.20
$ 15.19
$ 26.14
$ 33.88
ERROR:#REF!
Lease operating expenses
4.46
4.93
5.06
5.53
5.98
$ 6.43
Gathering, processing & transportation
3.80
3.49
3.67
3.78
3.21
$ 3.11
Taxes other than Income
0.83
1.04
1.31
1.91
2.23
$ 2.02
Field-level cash margin
$ 18.19
$ 15.74
$ 5.15
$ 14.92
$ 22.46
ERROR:#REF!
Williston Basin
Realized price
$ 27.90
$ 26.76
$ 13.11
$ 30.73
$ 39.63
ERROR:#REF!
Lease operating expenses
4.52
4.34
4.50
5.70
5.68
$ 5.51
Gathering, processing & transportation
3.12
3.23
3.23
3.01
3.10
$ 3.08
Taxes other than Income
2.68
2.59
1.38
3.03
3.96
$ 4.01
Field-level cash margin
$ 17.58
$ 16.60
$ 4.00
$ 18.99
$ 26.89
ERROR:#REF!
WPX - Total
Realized price
$ 27.49
$ 25.71
$ 14.55
$ 27.99
$ 36.46
ERROR:#REF!
Lease operating expenses
4.48
4.73
4.89
5.60
5.85
$ 6.02
Gathering, processing & transportation
3.57
3.41
3.53
3.47
3.16
$ 3.10
Taxes other than Income
1.47
1.55
1.33
2.36
3.00
$ 2.90
Field-level cash margin
$ 17.97
$ 16.02
$ 4.80
$ 16.56
$ 24.45
ERROR:#REF!
WPX Int.%
AVERAGE WORKING INTEREST
2020
2019
Quarter 4
Quarter 3
Quarter 2
Quarter 1
Quarter 4
3Q 2019
Delaware Basin
93%
97%
100%
87%
78%
90%
Williston Basin
58%
83%
94%
80%
66%
93%
Total
82%
89%
98%
84%
71%
92%
AVERAGE NRI
2020
2019
Quarter 4
Quarter 3
Quarter 2
Quarter 1
Quarter 4
3Q 2019
Delaware Basin
70%
75%
75%
66%
59%
69%
Williston Basin
45%
65%
74%
64%
52%
74%
Total
62%
70%
75%
65%
55%
72%
WPX Production
PRODUCTION
PRODUCTION TREND
2020
2019
Quarter 4
Quarter 3
Quarter 2
Quarter 1
Quarter 4
3Q 2019
Oil (MBbls/d)
Delaware Basin
84
71
77
60
48
47.2
Williston Basin
65
51
47
62
64
61.4
Total
149
122
124
122
112
108.6
Natural gas liquids (MBbls/d)
Delaware Basin
35
32
27
25
22
19.3
Williston Basin
11
9
8
9
8
7.7
Total
46
40
35
34
30
27
Gas (MMcf/d)
Delaware Basin
271
219
239
195
174
180.9
Williston Basin
66
51
48
49
50
46
Total
337
270
287
244
223
226.9
Total oil equivalent (MBoe/d)
Delaware Basin
164
139
144
117
99
96.7
Williston Basin
87
69
63
79
80
76.8
Total
251
208
207
197
179
173.4
WPX Prices
REALIZED PRICES
2020
2019
Quarter 4
Quarter 3
Quarter 2
Quarter 1
Quarter 4
3Q 2019
Oil (Per Bbl)
Delaware Basin
$ 41.56
$ 39.81
$ 22.10
$ 43.14
$ 57.03
$ 55.96
Williston Basin
38.62
37.21
20.32
40.57
51.02
$ 52.35
Realized price without hedges
40.28
38.72
21.42
41.83
53.59
$ 53.92
Cash settlements
8.14
11.46
30.17
10.09
(0.43)
$ (1.25)
Realized price, including cash settlements
$ 48.42
$ 50.19
$ 51.59
$ 51.92
$ 53.16
$ 52.67
Natural gas liquids (Per Bbl)
Delaware Basin
$ 15.63
$ 12.89
$ 8.61
$ 9.47
$ 14.07
$ 13.83
Williston Basin
6.98
5.35
0.58
2.98
4.72
$ 2.95
Realized price without hedges
13.56
11.22
6.74
7.73
11.53
$ 10.73
Cash settlements
- 0
- 0
- 0
- 0
- 0
Realized price, including cash settlements
$ 13.56
$ 11.22
$ 6.74
$ 7.73
$ 11.53
$ 10.73
Gas (Per Mcf)
Delaware Basin
$ 1.63
$ 1.22
$ 1.06
$ 1.24
$ 1.79
$ 1.32
Williston Basin
(2.31)
(2.22)
(2.74)
(2.12)
(2.35)
$ (1.34)
Realized price without hedges
0.85
0.57
0.43
0.56
0.87
$ 0.77
Cash settlements
(0.05)
(0.20)
(0.13)
0.20
0.67
$ 0.80
Realized price, including cash settlements
$ 0.80
$ 0.37
$ 0.30
$ 0.76
$ 1.54
$ 1.57
Total oil equivalent (Per BOE)
Delaware Basin
$ 27.28
$ 25.20
$ 15.19
$ 26.14
$ 33.88
Williston Basin
27.90
26.76
13.11
30.73
39.63
Realized price without hedges
27.49
25.71
14.55
27.99
36.46
Cash settlements
4.75
6.50
17.86
6.50
0.06
Realized price, including cash settlements
$ 32.24
$ 32.21
$ 32.41
$ 34.49
$ 37.03
WPX Capex
UPSTREAM CAPITAL EXPENDITURES
(in millions)
2020
2019
Quarter 4
Quarter 3
Quarter 2
Quarter 1
Quarter 4
Delaware Basin
$ 247
$ 186
$ 143
$ 191
$ 157
Williston Basin
36
60
34
115
110
Total Upstream Capital
$ 283
$ 246
$ 177
$ 305
$ 267
GROSS OPERATED SPUDS
2020
2019
Quarter 4
Quarter 3
Quarter 2
Quarter 1
Quarter 4
Delaware Basin
24
23
28
33
21
Williston Basin
7
10
17
17
19
Total
31
33
45
50
40
GROSS OPERATED WELLS TIED-IN
2020
2019
Quarter 4
Quarter 3
Quarter 2
Quarter 1
Quarter 4
Delaware Basin
44
13
8
25
21
Williston Basin
20
16
4
17
25
Total
64
29
12
42
46
NET OPERATED WELLS TIED-IN
2020
2019
Quarter 4
Quarter 3
Quarter 2
Quarter 1
Quarter 4
Delaware Basin
31
10
6
17
12
Williston Basin
9
10
3
11
13
Total
40
20
9
27
25
AVERAGE LATERAL LENGTH
(based on wells tied-in)
2020
2019
Quarter 4
Quarter 3
Quarter 2
Quarter 1
Quarter 4
Delaware Basin
8,929'
9,342'
10,560'
8,237'
8,046'
Williston Basin
10,677'
11,880'
10,560'
10,871'
10,560'
Total
9,475'
10,742'
10,560'
9,303'
9,412'
Pro Forma
PRO FORMA KEY METRICS - Q4 2020
PRODUCTION
Q4 2020
Pro Forma
Devon
WPX
Oil (MBbls/d)
305
156
149
Natural gas liquids (MBbls/d)
126
80
46
Gas (MMcf/d)
921
584
337
Total oil equivalent (Mboe/d)
584
333
Moffat, Jacob: Moffat, Jacob:
251
OTHER KEY METRICS
Q4 2020
($ millions, except Boe)
Pro Forma
Devon
WPX
Oil, gas and NGL sales
$ 1,421
$ 786
$ 635
Derivative cash settlements
$ (7)
$ (117)
$ 110
LOE & GP&T per BOE
$ 7.57
$ 7.21
$ 8.05
General & administrative expenses
$ 144
$ 82
$ 62
Proved reserves (MMBoe)
1,434
752
682
PRODUCTION
FY 2020
Pro Forma
Devon
WPX
Oil (MBbls/d)
284
155
129
Natural gas liquids (MBbls/d)
117
78
39
Gas (MMcf/d)
888
603
285
Total oil equivalent (Mboe/d)
549
333
216
PRO FORMA KEY METRICS - FY 2020
FINANCIALS
FY 2020
($ millions, except Boe)
Pro Forma
Devon
WPX
Oil, gas and NGL sales
$ 4,597
$ 2,695
$ 1,902
Derivative cash settlements
$ 1,005
$ 316
$ 689
LOE & GP&T (per Boe)
$ 7.94
$ 7.66
$ 8.46
General & administrative expenses
$ 544
$ 338
$ 206
EBITDAX
$ 3,222
$ 1,591
$ 1,631
Operating cash flow
$ 2,801
$ 1,464
$ 1,337
Cash capital expenditures
(2,257)
(1,153)
(1,104)
Free cash flow
$ 544
$ 311
$ 233
Total debt
$ 7,555
$ 4,298
$ 3,257
Cash & cash equivalents
(2,570)
(2,237)
(333)
Net Debt
$ 4,985
$ 2,061
$ 2,924
RESERVES
FY 2020
Pro Forma
Devon
WPX
Proved reserves (MMBoe)
1,434
752
682
Proved oil reserves
676
282
394
Proved developed reserves (% of total)
76%
70%
Proved developed reserves adds (MMBoe)
416
104
312
Cost incurred ($MM)
$ 3,842
$ 987
$ 2,855
VARIABLE DIVIDEND CALCULATION
Q4 2020
Pro Forma
Devon
WPX
Operating cash flow
$ 773
$ 358
$ 415
Capital expenditures (Accrued)
(510)
(217)
(293)
Adjusted free cash flow
263
141
122
Fixed quarterly dividend ($0.11/share)
(42)
(42)
- 0
Excess free cash flow
221
99
122
50% Pay out (Board Discretion: Up to 50%)
50%
Total variable dividend
$ 111
VARIABLE DIVIDEND CALCULATION
Q4 2020
(in millions)
Pro Forma
Operating cash flow
$ 773
Balance sheet changes
22
Cash from operations before balance sheet changes
$ 795
Capital expenditures (Accrued)
(486)
Adjusted free cash flow
309
Fixed quarterly dividend ($0.11/share)
(42)
Excess free cash flow
267
50% Pay out (Board Discretion: Up to 50%)
50%
Total variable dividend
$ 133
EBITDAX
(in millions)
Q4 2020
Pro Forma
Devon
WPX
Net earnings (GAAP)
$ 884
$ 1,003
$ (119)
Net (earnings) loss from discontinued operations, net of tax
(4)
- 0
(4)
Net earnings (loss) from continuing operations (GAAP)
ERROR:#REF!
ERROR:#REF!
Financing costs, net
120
72
48
Income tax expense
214
221
(7)
Exploration expenses
18
3
15
Depreciation, depletion and amortization
874
615
259
Asset impairments
ERROR:#REF!
ERROR:#REF!
-0
Asset dispositions
-0
-0
-0
Share-based compensation
33
23
10
Derivative & financial instrument non-cash val. changes
221
(51)
272
ERROR:#REF!
ERROR:#REF!
ERROR:#REF!
11
Accretion on discounted liabilities and other
(17)
5
(22)
EBITDAX (Non-GAAP)
$ 2,354
$ 1,891
$ 463
EBITDAX
(in millions)
FY 2020
Pro Forma
Devon
WPX
Net earnings (GAAP)
$ (3,739)
$ (2,671)
$ (1,068)
Net (earnings) loss from discontinued operations, net of tax
306
128
178
Net earnings (loss) from continuing operations (GAAP)
$ - 0
0
ERROR:#REF!
Financing costs, net
463
270
193
Income tax expense
(748)
(547)
(201)
Exploration expenses
283
167
116
Depreciation, depletion and amortization
2,285
1,300
985
Asset impairments
3,660
2,693
967
Asset dispositions
(1)
(1)
-0
Share-based compensation
114
76
38
Derivative & financial instrument non-cash val. changes
527
161
366
ERROR:#REF!
90
49
41
Accretion on discounted liabilities and other
(18)
(34)
16
EBITDAX (Non-GAAP)
$ 3,222
$ 1,591
$ 1,631
PRO FORMA NET DEBT
Q4 2020
(in millions)
Pro Forma
Devon
WPX
Total debt
$ 7,862
$ 4,298
$ 3,564
Cash &cash equivalents
(2,593)
(2,237)
(356)
Net debt
$ 5,269
$ 2,061
$ 3,208
PRO FORMA FREE CASH FLOW
Q4 2020
(in millions)
Pro Forma
Devon
WPX
Operating cash flow
$ 773
$ 358
$ 415
Cash capital expenditures
(510)
(217)
(293)
Free cash flow
$ 263
$ 141
$ 122
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Disclaimer
Devon Energy Corporation published this content on
01 May 2024 and is solely responsible for the information contained therein. Distributed by
Public, unedited and unaltered, on
01 May 2024 20:14:27 UTC.
Devon Energy Corporation specializes in oil and natural gas exploration and production. The activity is organized around two areas:
- production and sale of oil, natural gas and liquefied natural gas;
- oil and gas services: primarily construction of pipelines, storage facilities, and hydrocarbon processing and transformation services.