Devon Energy : Q1 2024 Supplemental Tables

Devon Energy First-Quarter 2024
Supplemental Tables
TABLE OF CONTENTS:	PAGE:
Consolidated Statements of Earnings	2
Supplemental Information for Consolidated Statements of Earnings	3
Consolidated Balance Sheets	4
Consolidated Statements of Cash Flows	5
Production	6
Capital Expenditures and Supplemental Information for Capital Expenditures	7
Realized Pricing	8
Asset Margins	9
Core Earnings and EBITDAX	10
Net Debt, Net Debt-to-EBITDAX, Free Cash Flow, Adjusted Free Cash Flow and Reinvestment Rate	11

1

CONSOLIDATED STATEMENTS OF EARNINGS

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

2

SUPPLEMENTAL INFORMATION FOR CONSOLIDATED STATEMENTS OF EARNINGS

(1) OIL, GAS AND NGL DERIVATIVES		2024								2023
(in millions)
Derivative cash settlements		Quarter 1				Quarter 4		Quarter 3		Quarter 2		Quarter 1
$	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		2024								2023
(in millions)
Lease operating expense		Quarter 1				Quarter 4		Quarter 3		Quarter 2		Quarter 1
$	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		2024								2023
(in millions)
Interest based on outstanding debt		Quarter 1				Quarter 4		Quarter 3		Quarter 2		Quarter 1
$	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		2024								2023
(in millions)
Current expense		Quarter 1				Quarter 4		Quarter 3		Quarter 2		Quarter 1
$	119			$	105		$	139				$	80			$	141
Deferred expense		40					164			13					119				80
Income tax expense	$	159				$	269		$	152				$	199			$	221

3

CONSOLIDATED BALANCE SHEETS

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

4

CONSOLIDATED STATEMENTS OF CASH FLOWS

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

5

PRODUCTION

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

6

CAPITAL EXPENDITURES

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

SUPPLEMENTAL INFORMATION FOR CAPITAL EXPENDITURES

GROSS OPERATED SPUDS	2024										2023
Delaware Basin		Quarter 1					Quarter 4			Quarter 3	Quarter 2			Quarter 1
76				60				64						65				60
Eagle Ford	30				26				28						18				23
Anadarko Basin	4				17				10						9				19
Williston Basin	1						-	7						8				6
Powder River Basin	3				5				4						3				3
Total	114				108				113						103				111
GROSS OPERATED WELLS TIED-IN	2024										2023
Delaware Basin		Quarter 1					Quarter 4			Quarter 3	Quarter 2			Quarter 1
59				62				59						76				42
Eagle Ford	26				24				13						29				26
Anadarko Basin	5				4						-	16				7
Williston Basin	10				6				6						8				17
Powder River Basin	2				4				3						2				5
Total	102				100				81						131				97
NET OPERATED WELLS TIED-IN	2024										2023
Delaware Basin		Quarter 1					Quarter 4			Quarter 3	Quarter 2			Quarter 1
50				47				49						61				40
Eagle Ford	21				20				12						25				18
Anadarko Basin	2				1						-	7				3
Williston Basin	10				3				4						6				15
Powder River Basin	2				4				3						2				4
Total	85				75				68						101				80
AVERAGE LATERAL LENGTH	2024										2023
(based on wells tied-in)
Delaware Basin		Quarter 1				Quarter 4			Quarter 3	Quarter 2			Quarter 1
	10,300'				10,300'					9,700'					10,100'					9,900'
Eagle Ford		6,700'		7,900'			5,000'					6,200'			6,700'
Anadarko Basin		10,000'		12,500'					-	9,100'			9,300'
Williston Basin		9,600'		12,300'			12,300'					10,000'			11,500'
Powder River Basin		9,600'		9,600'			13,300'					15,000'			10,700'
Total		9,300'				9,900'					9,300'					9,200'					9,300'
							7

REALIZED PRICING

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

8

ASSET MARGINS

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

9

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

CORE EARNINGS

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

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

EBITDAX

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

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

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