Attached files
| file | filename |
|---|---|
| EX-99.1 - EX-99.1 - DEVON ENERGY CORP/DE | d197325dex991.htm |
| 8-K - 8-K - DEVON ENERGY CORP/DE | d197325d8k.htm |
Exhibit 99.2
Devon Energy Second-Quarter 2021
Supplemental Tables
| TABLE OF CONTENTS: | PAGE: | |||
| Income Statement |
2 | |||
| Supplemental Information for Income Statement |
3 | |||
| Cash Flow Statement |
4 | |||
| Balance Sheet |
5 | |||
| Production by Asset |
6 | |||
| Capital and Well Activity by Asset |
7 | |||
| Realized Price by Asset |
8 | |||
| Per-Unit Cash Margin by Asset |
9 | |||
| Non-GAAP Core Earnings (Loss), Non-GAAP EBITDAX |
10 | |||
| Net Debt, Net Debt-to-EBITDAX, Free Cash Flow and Reinvestment Rate |
11 | |||
| Variable Dividend |
12 | |||
1
CONSOLIDATED STATEMENTS OF EARNINGS
| (in millions, except per share amounts) | 2021 | 2020 | ||||||||||||||||||
| Quarter 2 | Quarter 1 | Quarter 4 | Quarter 3 | Quarter 2 | ||||||||||||||||
| Oil, gas and NGL sales |
$ | 2,154 | $ | 1,757 | $ | 786 | $ | 678 | $ | 424 | ||||||||||
| Oil, gas and NGL derivatives (1) |
(703 | ) | (528 | ) | (117 | ) | (87 | ) | (361 | ) | ||||||||||
| Marketing and midstream revenues |
966 | 821 | 611 | 476 | 331 | |||||||||||||||
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| Total revenues |
2,417 | 2,050 | 1,280 | 1,067 | 394 | |||||||||||||||
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| Production expenses (2) |
513 | 458 | 271 | 271 | 263 | |||||||||||||||
| Exploration expenses |
3 | 3 | 4 | 39 | 12 | |||||||||||||||
| Marketing and midstream expenses |
965 | 842 | 618 | 478 | 339 | |||||||||||||||
| Depreciation, depletion and amortization |
536 | 467 | 301 | 299 | 299 | |||||||||||||||
| Asset impairments |
— | — | 27 | — | — | |||||||||||||||
| Asset dispositions |
(87 | ) | (32 | ) | (1 | ) | — | — | ||||||||||||
| General and administrative expenses |
94 | 107 | 82 | 75 | 79 | |||||||||||||||
| Financing costs, net (3) |
80 | 77 | 70 | 66 | 69 | |||||||||||||||
| Restructuring and transaction costs |
23 | 189 | 17 | 32 | — | |||||||||||||||
| Other, net |
(14 | ) | (29 | ) | 1 | — | 13 | |||||||||||||
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| Total expenses |
2,113 | 2,082 | 1,390 | 1,260 | 1,074 | |||||||||||||||
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| Earnings (loss) from continuing operations before income taxes |
304 | (32 | ) | (110 | ) | (193 | ) | (680 | ) | |||||||||||
| Income tax expense (benefit) |
43 | (248 | ) | (37 | ) | (90 | ) | (3 | ) | |||||||||||
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| Net earnings (loss) from continuing operations |
261 | 216 | (73 | ) | (103 | ) | (677 | ) | ||||||||||||
| Net earnings (loss) from discontinued operations, net of taxes |
— | — | (25 | ) | 13 | 9 | ||||||||||||||
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| Net earnings (loss) |
261 | 216 | (98 | ) | (90 | ) | (668 | ) | ||||||||||||
| Net earnings attributable to noncontrolling interests |
5 | 3 | 4 | 2 | 2 | |||||||||||||||
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| Net earnings (loss) attributable to Devon |
$ | 256 | $ | 213 | $ | (102 | ) | $ | (92 | ) | $ | (670 | ) | |||||||
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| Basic earnings (loss) per share: |
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| Continuing operations |
$ | 0.38 | $ | 0.33 | $ | (0.20 | ) | $ | (0.29 | ) | $ | (1.80 | ) | |||||||
| Discontinued operations |
— | — | (0.07 | ) | 0.04 | 0.02 | ||||||||||||||
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| Basic net earnings (loss) per share |
$ | 0.38 | $ | 0.33 | $ | (0.27 | ) | $ | (0.25 | ) | $ | (1.78 | ) | |||||||
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| Diluted earnings (loss) per share: |
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| Continuing operations |
$ | 0.38 | $ | 0.32 | $ | (0.20 | ) | $ | (0.29 | ) | $ | (1.80 | ) | |||||||
| Discontinued operations |
— | — | (0.07 | ) | 0.04 | 0.02 | ||||||||||||||
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| Diluted net earnings (loss) per share |
$ | 0.38 | $ | 0.32 | $ | (0.27 | ) | $ | (0.25 | ) | $ | (1.78 | ) | |||||||
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| Weighted average common shares outstanding: |
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| Basic |
677 | 654 | 383 | 383 | 383 | |||||||||||||||
| Diluted |
679 | 656 | 383 | 383 | 383 | |||||||||||||||
2
SUPPLEMENTAL INFORMATION FOR CONSLIDATED STATEMENTS OF EARNINGS
| (1) OIL, GAS AND NGL DERIVATIVES | 2021 | 2020 | ||||||||||||||||||
| (in millions) | Quarter 2 | Quarter 1 | Quarter 4 | Quarter 3 | Quarter 2 | |||||||||||||||
| Derivative cash settlements |
$ | (367 | ) | $ | (232 | ) | $ | (27 | ) | $ | 10 | $ | 232 | |||||||
| Derivative valuation changes |
(336 | ) | (296 | ) | (90 | ) | (97 | ) | (593 | ) | ||||||||||
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| Oil, gas and NGL derivatives |
$ | (703 | ) | $ | (528 | ) | $ | (117 | ) | $ | (87 | ) | $ | (361 | ) | |||||
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| (2) PRODUCTION EXPENSES | 2021 | 2020 | ||||||||||||||||||
| (in millions) | Quarter 2 | Quarter 1 | Quarter 4 | Quarter 3 | Quarter 2 | |||||||||||||||
| Lease operating expense |
$ | 210 | $ | 199 | $ | 91 | $ | 100 | $ | 108 | ||||||||||
| Gathering, processing & transportation |
147 | 129 | 130 | 125 | 123 | |||||||||||||||
| Production taxes |
143 | 117 | 47 | 42 | 25 | |||||||||||||||
| Property taxes |
13 | 13 | 3 | 4 | 7 | |||||||||||||||
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| Production expenses |
$ | 513 | $ | 458 | $ | 271 | $ | 271 | $ | 263 | ||||||||||
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| (3) FINANCING COSTS, NET | 2021 | 2020 | ||||||||||||||||||
| (in millions) | Quarter 2 | Quarter 1 | Quarter 4 | Quarter 3 | Quarter 2 | |||||||||||||||
| Interest on outstanding debt |
$ | 98 | $ | 105 | $ | 65 | $ | 65 | $ | 65 | ||||||||||
| Gain on early retirement of debt |
(10 | ) | (20 | ) | — | — | — | |||||||||||||
| Interest income |
— | (1 | ) | — | (5 | ) | (2 | ) | ||||||||||||
| Other |
(8 | ) | (7 | ) | 5 | 6 | 6 | |||||||||||||
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| Financing costs, net |
$ | 80 | $ | 77 | $ | 70 | $ | 66 | $ | 69 | ||||||||||
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3
CONSOLIDATED STATEMENTS OF CASH FLOWS
| (in millions) | 2021 | 2020 | ||||||||||||||||||
| Quarter 2 | Quarter 1 | Quarter 4 | Quarter 3 | Quarter 2 | ||||||||||||||||
| Cash flows from operating activities: |
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| Net earnings (loss) |
$ | 261 | $ | 216 | $ | (98 | ) | $ | (90 | ) | $ | (668 | ) | |||||||
| Adjustments to reconcile net loss to net cash from operating activities: |
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| Net (earnings) loss from discontinued operations, net of income taxes |
— | — | 25 | (13 | ) | (9 | ) | |||||||||||||
| Depreciation, depletion and amortization |
536 | 467 | 301 | 299 | 299 | |||||||||||||||
| Asset impairments |
— | — | 27 | — | — | |||||||||||||||
| Leasehold impairments |
1 | 1 | 3 | 36 | 3 | |||||||||||||||
| (Amortization) accretion of liabilities |
(7 | ) | (7 | ) | 8 | 8 | 8 | |||||||||||||
| Total losses on commodity derivatives |
703 | 528 | 117 | 87 | 361 | |||||||||||||||
| Cash settlements on commodity derivatives |
(367 | ) | (232 | ) | (27 | ) | 10 | 232 | ||||||||||||
| Gains on asset dispositions |
(87 | ) | (32 | ) | (1 | ) | — | — | ||||||||||||
| Deferred income tax expense (benefit) |
24 | (243 | ) | (17 | ) | — | — | |||||||||||||
| Share-based compensation |
20 | 41 | 18 | 31 | 19 | |||||||||||||||
| Early retirement of debt |
(10 | ) | (20 | ) | — | — | — | |||||||||||||
| Other |
2 | — | — | 1 | 4 | |||||||||||||||
| Changes in assets and liabilities, net |
17 | (127 | ) | 2 | 58 | (99 | ) | |||||||||||||
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| Net cash from operating activities - continuing operations |
1,093 | 592 | 358 | 427 | 150 | |||||||||||||||
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| Cash flows from investing activities: |
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| Capital expenditures |
(504 | ) | (499 | ) | (217 | ) | (204 | ) | (307 | ) | ||||||||||
| Acquisitions of property and equipment |
(5 | ) | — | (3 | ) | — | (1 | ) | ||||||||||||
| Divestitures of property and equipment |
49 | 15 | 5 | 1 | 3 | |||||||||||||||
| WPX acquired cash |
— | 344 | — | — | — | |||||||||||||||
| Distributions from equity method investments |
8 | 10 | — | — | — | |||||||||||||||
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| Net cash from investing activities - continuing operations |
(452 | ) | (130 | ) | (215 | ) | (203 | ) | (305 | ) | ||||||||||
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| Cash flows from financing activities: |
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| Repayments of long-term debt |
(710 | ) | (533 | ) | — | — | — | |||||||||||||
| Early retirement of debt |
(32 | ) | (27 | ) | — | — | — | |||||||||||||
| Dividends paid on common stock |
(229 | ) | (203 | ) | (138 | ) | (43 | ) | (42 | ) | ||||||||||
| Contributions from noncontrolling interests |
3 | — | 9 | 1 | 6 | |||||||||||||||
| Distributions to noncontrolling interests |
(5 | ) | (4 | ) | (4 | ) | (4 | ) | (3 | ) | ||||||||||
| Acquisition of noncontrolling interests |
— | (24 | ) | — | — | — | ||||||||||||||
| Shares exchanged for tax withholdings and other |
(9 | ) | (33 | ) | (1 | ) | — | — | ||||||||||||
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| Net cash from financing activities - continuing operations |
(982 | ) | (824 | ) | (134 | ) | (46 | ) | (39 | ) | ||||||||||
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| Effect of exchange rate changes on cash - continuing |
2 | 3 | — | — | — | |||||||||||||||
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| Net change in cash, cash equivalents and restricted cash of continuing operations |
(339 | ) | (359 | ) | 9 | 178 | (194 | ) | ||||||||||||
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| Cash flows from discontinued operations: |
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| Operating activities |
— | — | 19 | 45 | (43 | ) | ||||||||||||||
| Investing activities |
— | — | 310 | 1 | 171 | |||||||||||||||
| Effect of exchange rate changes on cash |
— | — | 2 | 4 | 8 | |||||||||||||||
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| Net change in cash, cash equivalents and restricted cash of discontinued operations |
— | — | 331 | 50 | 136 | |||||||||||||||
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| Net change in cash, cash equivalents and restricted cash |
(339 | ) | (359 | ) | 340 | 228 | (58 | ) | ||||||||||||
| Cash, cash equivalents and restricted cash at beginning of period |
1,878 | 2,237 | 1,897 | 1,669 | 1,727 | |||||||||||||||
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| Cash, cash equivalents and restricted cash at end of period |
$ | 1,539 | $ | 1,878 | $ | 2,237 | $ | 1,897 | $ | 1,669 | ||||||||||
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| Reconciliation of cash, cash equivalents and restricted cash: |
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| Cash and cash equivalents |
$ | 1,348 | $ | 1,683 | $ | 2,047 | $ | 1,707 | $ | 1,474 | ||||||||||
| Restricted cash |
191 | 195 | 190 | 190 | 195 | |||||||||||||||
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| Total cash, cash equivalents and restricted cash |
$ | 1,539 | $ | 1,878 | $ | 2,237 | $ | 1,897 | $ | 1,669 | ||||||||||
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4
CONSOLIDATED BALANCE SHEETS
| (in millions) | June 30, | December 31, | ||||||
| 2021 | 2020 | |||||||
| Current assets: |
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| Cash, cash equivalents and restricted cash |
$ | 1,539 | $ | 2,237 | ||||
| Accounts receivable |
1,185 | 601 | ||||||
| Income tax receivable |
40 | 174 | ||||||
| Other current assets |
312 | 248 | ||||||
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| Total current assets |
3,076 | 3,260 | ||||||
| Oil and gas property and equipment, based on successful efforts accounting, net |
13,727 | 4,436 | ||||||
| Other property and equipment, net |
1,462 | 957 | ||||||
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| Total property and equipment, net |
15,189 | 5,393 | ||||||
| Goodwill |
753 | 753 | ||||||
| Right-of-use assets |
252 | 223 | ||||||
| Investments |
398 | 12 | ||||||
| Other long-term assets |
397 | 271 | ||||||
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| Total assets |
$ | 20,065 | $ | 9,912 | ||||
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| Current liabilities: |
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| Accounts payable |
$ | 487 | $ | 242 | ||||
| Revenues and royalties payable |
1,030 | 662 | ||||||
| Other current liabilities |
1,555 | 536 | ||||||
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| Total current liabilities |
3,072 | 1,440 | ||||||
| Long-term debt |
6,502 | 4,298 | ||||||
| Lease liabilities |
258 | 246 | ||||||
| Asset retirement obligations |
450 | 358 | ||||||
| Other long-term liabilities |
1,248 | 551 | ||||||
| Stockholders’ equity: |
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| Common stock |
68 | 38 | ||||||
| Additional paid-in capital |
8,189 | 2,766 | ||||||
| Retained earnings |
243 | 208 | ||||||
| Accumulated other comprehensive loss |
(101 | ) | (127 | ) | ||||
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| Total stockholders’ equity attributable to Devon |
8,399 | 2,885 | ||||||
| Noncontrolling interests |
136 | 134 | ||||||
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| Total equity |
8,535 | 3,019 | ||||||
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| Total liabilities and equity |
$ | 20,065 | $ | 9,912 | ||||
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| Common shares outstanding |
677 | 382 | ||||||
5
PRODUCTION TREND
| 2021 | 2020 | |||||||||||||||||||
| Quarter 2 | Quarter 1 | Quarter 4 | Quarter 3 | Quarter 2 | ||||||||||||||||
| Oil (MBbls/d) |
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| Delaware Basin |
191 | 172 | 99 | 77 | 79 | |||||||||||||||
| Anadarko Basin |
17 | 13 | 16 | 19 | 21 | |||||||||||||||
| Williston Basin |
46 | 44 | — | — | — | |||||||||||||||
| Eagle Ford |
18 | 16 | 18 | 22 | 27 | |||||||||||||||
| Powder River Basin |
16 | 17 | 16 | 21 | 18 | |||||||||||||||
| Other |
3 | 6 | 7 | 7 | 8 | |||||||||||||||
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| Total |
291 | 268 | 156 | 146 | 153 | |||||||||||||||
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| Natural gas liquids (MBbls/d) |
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| Delaware Basin |
82 | 60 | 43 | 38 | 29 | |||||||||||||||
| Anadarko Basin |
26 | 21 | 25 | 30 | 25 | |||||||||||||||
| Williston Basin |
9 | 8 | — | — | — | |||||||||||||||
| Eagle Ford |
9 | 6 | 9 | 11 | 12 | |||||||||||||||
| Powder River Basin |
3 | 3 | 3 | 3 | 2 | |||||||||||||||
| Other |
— | 1 | — | 1 | 1 | |||||||||||||||
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| Total |
129 | 99 | 80 | 83 | 69 | |||||||||||||||
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| Gas (MMcf/d) |
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| Delaware Basin |
513 | 471 | 267 | 239 | 241 | |||||||||||||||
| Anadarko Basin |
225 | 200 | 233 | 242 | 262 | |||||||||||||||
| Williston Basin |
61 | 49 | — | — | — | |||||||||||||||
| Eagle Ford |
59 | 47 | 60 | 73 | 87 | |||||||||||||||
| Powder River Basin |
21 | 21 | 22 | 23 | 20 | |||||||||||||||
| Other |
2 | 3 | 2 | 3 | 4 | |||||||||||||||
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| Total |
881 | 791 | 584 | 580 | 614 | |||||||||||||||
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| Total oil equivalent (MBoe/d) |
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| Delaware Basin |
358 | 310 | 186 | 155 | 149 | |||||||||||||||
| Anadarko Basin |
80 | 68 | 81 | 89 | 90 | |||||||||||||||
| Williston Basin |
66 | 61 | — | — | — | |||||||||||||||
| Eagle Ford |
37 | 30 | 37 | 46 | 53 | |||||||||||||||
| Powder River Basin |
22 | 23 | 22 | 28 | 24 | |||||||||||||||
| Other |
4 | 7 | 7 | 8 | 9 | |||||||||||||||
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| Total |
567 | 499 | 333 | 326 | 325 | |||||||||||||||
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6
CAPITAL EXPENDITURES
| (in millions) | 2021 | 2020 | ||||||||||||||||||
| Quarter 2 | Quarter 1 | Quarter 4 | Quarter 3 | Quarter 2 | ||||||||||||||||
| Delaware Basin |
$ | 394 | $ | 355 | $ | 153 | $ | 179 | $ | 148 | ||||||||||
| Anadarko Basin |
11 | 13 | 3 | 1 | 3 | |||||||||||||||
| Williston Basin |
19 | 20 | — | — | — | |||||||||||||||
| Eagle Ford |
36 | 29 | 2 | 1 | 10 | |||||||||||||||
| Powder River Basin |
5 | 27 | 22 | 11 | 39 | |||||||||||||||
| Other |
2 | 3 | 3 | 3 | 3 | |||||||||||||||
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| Total upstream capital |
$ | 467 | $ | 447 | $ | 183 | $ | 195 | $ | 203 | ||||||||||
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| Midstream |
22 | 24 | 3 | 7 | 8 | |||||||||||||||
| Other |
20 | 16 | 3 | 5 | 3 | |||||||||||||||
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| Total capital |
$ | 509 | $ | 487 | $ | 189 | $ | 207 | $ | 214 | ||||||||||
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| SUPPLEMENTAL INFORMATION FOR UPSTREAM CAPITAL EXPENDITURES |
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| GROSS OPERATED SPUDS | 2021 | 2020 | ||||||||||||||||||
| Quarter 2 | Quarter 1 | Quarter 4 | Quarter 3 | Quarter 2 | ||||||||||||||||
| Delaware Basin |
55 | 60 | 21 | 35 | 27 | |||||||||||||||
| Anadarko Basin |
8 | 8 | — | — | — | |||||||||||||||
| Williston Basin |
— | 7 | — | — | — | |||||||||||||||
| Eagle Ford |
11 | 14 | — | — | — | |||||||||||||||
| Powder River Basin |
1 | — | 2 | — | — | |||||||||||||||
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| Total |
75 | 89 | 23 | 35 | 27 | |||||||||||||||
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|||||||||||
| GROSS OPERATED WELLS TIED-IN | 2021 | 2020 | ||||||||||||||||||
| Quarter 2 | Quarter 1 | Quarter 4 | Quarter 3 | Quarter 2 | ||||||||||||||||
| Delaware Basin |
88 | 52 | 23 | 32 | 22 | |||||||||||||||
| Anadarko Basin |
6 | — | — | — | — | |||||||||||||||
| Williston Basin |
13 | — | — | — | — | |||||||||||||||
| Eagle Ford |
9 | 12 | — | — | 13 | |||||||||||||||
| Powder River Basin |
— | 10 | 2 | 9 | 4 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total |
116 | 74 | 25 | 41 | 39 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| AVERAGE LATERAL LENGTH | 2021 | 2020 | ||||||||||||||||||
| (based on wells tied-in) | Quarter 2 | Quarter 1 | Quarter 4 | Quarter 3 | Quarter 2 | |||||||||||||||
| Delaware Basin |
10,000’ | 10,000’ | 9,800’ | 9,900’ | 9,100’ | |||||||||||||||
| Anadarko Basin |
9,600’ | — | — | — | — | |||||||||||||||
| Williston Basin |
10,000’ | — | — | — | — | |||||||||||||||
| Eagle Ford |
5,600’ | 4,400’ | — | — | 5,900’ | |||||||||||||||
| Powder River Basin |
— | 9,800’ | 13,600’ | 9,800’ | 8,100’ | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total |
9,600’ | 9,100’ | 10,100’ | 9,900’ | 7,900’ | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
7
REALIZED PRICING
| BENCHMARK PRICES | 2021 | 2020 | ||||||||||||||||||
| (average prices) | Quarter 2 | Quarter 1 | Quarter 4 | Quarter 3 | Quarter 2 | |||||||||||||||
| Oil ($/Bbl) - West Texas Intermediate (Cushing) |
$ | 66.04 | $ | 57.87 | $ | 42.65 | $ | 40.86 | $ | 28.42 | ||||||||||
| Natural Gas ($/Mcf) - Henry Hub |
$ | 2.83 | $ | 2.71 | $ | 2.67 | $ | 1.98 | $ | 1.71 | ||||||||||
| NGL ($/Bbl) - Mont Belvieu Blended |
$ | 28.54 | $ | 25.81 | $ | 20.01 | $ | 16.69 | $ | 12.57 | ||||||||||
| REALIZED PRICES |
2021 | 2020 | ||||||||||||||||||
| Quarter 2 | Quarter 1 | Quarter 4 | Quarter 3 | Quarter 2 | ||||||||||||||||
| Oil (Per Bbl) |
||||||||||||||||||||
| Delaware Basin |
$ | 63.93 | $ | 56.07 | $ | 40.67 | $ | 39.19 | $ | 22.70 | ||||||||||
| Anadarko Basin |
63.51 | 55.86 | 40.34 | 37.88 | 19.52 | |||||||||||||||
| Williston Basin |
62.00 | 52.74 | — | — | — | |||||||||||||||
| Eagle Ford |
64.04 | 54.90 | 37.83 | 33.68 | 15.30 | |||||||||||||||
| Powder River Basin |
62.36 | 53.77 | 36.42 | 35.39 | 24.03 | |||||||||||||||
| Other |
72.85 | 55.65 | 39.93 | 37.33 | 25.45 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Realized price without hedges |
63.63 | 55.28 | 39.84 | 37.56 | 21.25 | |||||||||||||||
| Cash settlements |
(13.29 | ) | (9.13 | ) | (1.83 | ) | 0.65 | 15.25 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Realized price, including cash settlements |
$ | 50.34 | $ | 46.15 | $ | 38.01 | $ | 38.21 | $ | 36.50 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Natural gas liquids (Per Bbl) |
||||||||||||||||||||
| Delaware Basin |
$ | 23.81 | $ | 26.25 | $ | 13.67 | $ | 11.49 | $ | 7.94 | ||||||||||
| Anadarko Basin |
25.55 | 23.14 | 15.65 | 12.68 | 9.31 | |||||||||||||||
| Williston Basin |
14.76 | 18.51 | — | — | — | |||||||||||||||
| Eagle Ford |
25.46 | 24.44 | 15.66 | 13.74 | 10.02 | |||||||||||||||
| Powder River Basin |
35.46 | 30.19 | 19.39 | 13.10 | 10.07 | |||||||||||||||
| Other |
41.19 | 31.86 | 24.24 | 21.74 | 10.19 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Realized price without hedges |
23.89 | 25.01 | 14.77 | 12.36 | 8.89 | |||||||||||||||
| Cash settlements |
(0.25 | ) | (0.20 | ) | (0.01 | ) | (0.30 | ) | 0.51 | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Realized price, including cash settlements |
$ | 23.64 | $ | 24.81 | $ | 14.76 | $ | 12.06 | $ | 9.40 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Gas (Per Mcf) |
||||||||||||||||||||
| Delaware Basin |
$ | 2.31 | $ | 3.19 | $ | 1.51 | $ | 1.11 | $ | 1.05 | ||||||||||
| Anadarko Basin |
3.15 | 2.49 | 2.29 | 1.66 | 1.31 | |||||||||||||||
| Williston Basin |
(1.60 | ) | (0.48 | ) | — | — | — | |||||||||||||
| Eagle Ford |
3.25 | 3.15 | 2.38 | 1.95 | 1.79 | |||||||||||||||
| Powder River Basin |
3.54 | 5.27 | 2.70 | 1.94 | 1.80 | |||||||||||||||
| Other |
2.74 | 2.57 | 2.87 | 1.52 | 1.32 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Realized price without hedges |
2.35 | 2.84 | 1.96 | 1.48 | 1.29 | |||||||||||||||
| Cash settlements |
(0.15 | ) | (0.15 | ) | 0.00 | 0.06 | 0.28 | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Realized price, including cash settlements |
$ | 2.20 | $ | 2.69 | $ | 1.96 | $ | 1.54 | $ | 1.57 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total oil equivalent (Per Boe) |
||||||||||||||||||||
| Delaware Basin |
$ | 42.84 | $ | 40.95 | $ | 26.94 | $ | 24.00 | $ | 15.39 | ||||||||||
| Anadarko Basin |
30.34 | 25.35 | 19.79 | 16.81 | 10.98 | |||||||||||||||
| Williston Basin |
43.98 | 40.79 | — | — | — | |||||||||||||||
| Eagle Ford |
42.84 | 38.90 | 25.97 | 22.78 | 12.90 | |||||||||||||||
| Powder River Basin |
52.55 | 47.58 | 31.08 | 29.83 | 20.80 | |||||||||||||||
| Other |
65.37 | 50.58 | 37.67 | 34.15 | 22.95 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Realized price without hedges |
41.75 | 39.14 | 25.63 | 22.60 | 14.37 | |||||||||||||||
| Cash settlements |
(7.11 | ) | (5.17 | ) | (0.86 | ) | 0.33 | 7.83 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Realized price, including cash settlements |
$ | 34.64 | $ | 33.97 | $ | 24.77 | $ | 22.93 | $ | 22.20 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
8
ASSET MARGINS
| BENCHMARK PRICES | 2021 | 2020 | ||||||||||||||||||
| (average prices) | Quarter 2 | Quarter 1 | Quarter 4 | Quarter 3 | Quarter 2 | |||||||||||||||
| Oil ($/Bbl) - West Texas Intermediate (Cushing) |
$ | 66.04 | $ | 57.87 | $ | 42.65 | $ | 40.86 | $ | 28.42 | ||||||||||
| Natural Gas ($/Mcf) - Henry Hub |
$ | 2.83 | $ | 2.71 | $ | 2.67 | $ | 1.98 | $ | 1.71 | ||||||||||
| NGL ($/Bbl) - Mont Belvieu Blended |
$ | 28.54 | $ | 25.81 | $ | 20.01 | $ | 16.69 | $ | 12.57 | ||||||||||
| PER-UNIT CASH MARGIN BY ASSET (per Boe) | 2021 | 2020 | ||||||||||||||||||
| Quarter 2 | Quarter 1 | Quarter 4 | Quarter 3 | Quarter 2 | ||||||||||||||||
| Delaware Basin |
||||||||||||||||||||
| Realized price |
$ | 42.84 | $ | 40.95 | $ | 26.94 | $ | 24.00 | $ | 15.39 | ||||||||||
| Lease operating expenses |
(3.91 | ) | (3.97 | ) | (2.38 | ) | (3.00 | ) | (3.56 | ) | ||||||||||
| Gathering, processing & transportation |
(2.06 | ) | (1.96 | ) | (2.40 | ) | (2.68 | ) | (2.88 | ) | ||||||||||
| Production & property taxes |
(3.08 | ) | (2.95 | ) | (2.08 | ) | (1.80 | ) | (1.14 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Field-level cash margin |
$ | 33.79 | $ | 32.07 | $ | 20.08 | $ | 16.52 | $ | 7.81 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Anadarko Basin |
||||||||||||||||||||
| Realized price |
$ | 30.34 | $ | 25.35 | $ | 19.79 | $ | 16.81 | $ | 10.98 | ||||||||||
| Lease operating expenses |
(2.96 | ) | (3.82 | ) | (2.57 | ) | (2.16 | ) | (2.42 | ) | ||||||||||
| Gathering, processing & transportation |
(6.06 | ) | (6.31 | ) | (8.39 | ) | (7.39 | ) | (6.57 | ) | ||||||||||
| Production & property taxes |
(1.46 | ) | (1.21 | ) | (0.55 | ) | (0.54 | ) | (0.32 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Field-level cash margin |
$ | 19.86 | $ | 14.01 | $ | 8.28 | $ | 6.72 | $ | 1.67 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Williston Basin |
||||||||||||||||||||
| Realized price |
$ | 43.98 | $ | 40.79 | $ | — | $ | — | $ | — | ||||||||||
| Lease operating expenses |
(4.87 | ) | (5.13 | ) | — | — | — | |||||||||||||
| Gathering, processing & transportation |
(1.86 | ) | (2.14 | ) | — | — | — | |||||||||||||
| Production & property taxes |
(4.27 | ) | (3.82 | ) | — | — | — | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Field-level cash margin |
$ | 32.98 | $ | 29.70 | $ | — | $ | — | $ | — | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Eagle Ford |
||||||||||||||||||||
| Realized price |
$ | 42.84 | $ | 38.90 | $ | 25.97 | $ | 22.78 | $ | 12.90 | ||||||||||
| Lease operating expenses |
(3.47 | ) | (3.89 | ) | (2.79 | ) | (2.47 | ) | (2.59 | ) | ||||||||||
| Gathering, processing & transportation |
(5.56 | ) | (6.73 | ) | (5.89 | ) | (4.73 | ) | (4.96 | ) | ||||||||||
| Production & property taxes |
(1.93 | ) | (1.71 | ) | (0.16 | ) | (0.92 | ) | (0.85 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Field-level cash margin |
$ | 31.88 | $ | 26.57 | $ | 17.13 | $ | 14.66 | $ | 4.50 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Powder River Basin |
||||||||||||||||||||
| Realized price |
$ | 52.55 | $ | 47.58 | $ | 31.08 | $ | 29.83 | $ | 20.80 | ||||||||||
| Lease operating expenses |
(6.65 | ) | (7.45 | ) | (5.47 | ) | (5.41 | ) | (6.60 | ) | ||||||||||
| Gathering, processing & transportation |
(3.02 | ) | (2.66 | ) | (3.01 | ) | (2.30 | ) | (2.71 | ) | ||||||||||
| Production & property taxes |
(6.10 | ) | (5.48 | ) | (3.91 | ) | (3.49 | ) | (2.40 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Field-level cash margin |
$ | 36.78 | $ | 31.99 | $ | 18.69 | $ | 18.63 | $ | 9.09 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Other |
||||||||||||||||||||
| Realized price |
$ | 65.37 | $ | 50.58 | $ | 37.67 | $ | 34.15 | $ | 22.95 | ||||||||||
| Lease operating expenses |
(16.69 | ) | (17.15 | ) | (15.35 | ) | (19.92 | ) | (17.40 | ) | ||||||||||
| Gathering, processing & transportation |
(0.58 | ) | (0.62 | ) | (0.59 | ) | (0.51 | ) | (0.34 | ) | ||||||||||
| Production & property taxes |
(5.25 | ) | (4.60 | ) | (3.38 | ) | (3.62 | ) | (5.11 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Field-level cash margin |
$ | 42.85 | $ | 28.21 | $ | 18.35 | $ | 10.10 | $ | 0.10 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Devon - Total |
||||||||||||||||||||
| Realized price |
$ | 41.75 | $ | 39.14 | $ | 25.63 | $ | 22.60 | $ | 14.37 | ||||||||||
| Lease operating expenses |
(4.06 | ) | (4.44 | ) | (2.97 | ) | (3.32 | ) | (3.69 | ) | ||||||||||
| Gathering, processing & transportation |
(2.85 | ) | (2.87 | ) | (4.23 | ) | (4.17 | ) | (4.16 | ) | ||||||||||
| Production & property taxes |
(3.05 | ) | (2.88 | ) | (1.66 | ) | (1.52 | ) | (1.07 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Field-level cash margin |
$ | 31.79 | $ | 28.95 | $ | 16.77 | $ | 13.59 | $ | 5.45 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
9
NON-GAAP MEASURES
(all monetary values in millions, except per share amounts)
This press release includes 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 this press release, including reconciliations to their most directly comparable GAAP measure.
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 (loss) and core earnings (loss) 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 2021 earnings.
| Quarter Ended June 30, 2021 | ||||||||||||||||
| Before-tax | After-tax | After Noncontrolling Interests |
Per Diluted Share |
|||||||||||||
| Total |
||||||||||||||||
| Earnings (GAAP) |
$ | 304 | $ | 261 | $ | 256 | $ | 0.38 | ||||||||
| Adjustments: |
||||||||||||||||
| Asset dispositions |
(87 | ) | (67 | ) | (67 | ) | (0.10 | ) | ||||||||
| Asset and exploration impairments |
1 | 1 | 1 | 0.00 | ||||||||||||
| Deferred tax asset valuation allowance |
— | (115 | ) | (115 | ) | (0.17 | ) | |||||||||
| Change in tax legislation |
— | 62 | 62 | 0.09 | ||||||||||||
| Fair value changes in financial instruments and foreign currency |
334 | 258 | 258 | 0.38 | ||||||||||||
| Restructuring and transaction costs |
23 | 21 | 21 | 0.03 | ||||||||||||
| Early retirement of debt |
(10 | ) | (8 | ) | (8 | ) | (0.01 | ) | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Core earnings (Non-GAAP) |
$ | 565 | $ | 413 | $ | 408 | $ | 0.60 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
EBITDAX
Devon believes EBITDAX provides information useful in assessing operating and financial performance across periods. Devon computes EBITDAX as net earnings from continuing operations before income tax expense; financing costs, net; exploration expenses; depreciation, depletion and amortization; asset impairments; asset disposition gains and losses; non-cash share-based compensation; non-cash valuation changes for derivatives and financial instruments; restructuring and transaction costs; accretion on discounted liabilities; and other items not related to normal operations. EBITDAX as defined by Devon may not be comparable to similarly titled measures used by other companies and should be considered in conjunction with net earnings from continuing operations.
| YTD ’21 | Q2 ’21 | Q1 ’21 | ||||||||||
| Net earnings (GAAP) |
$ | 477 | $ | 261 | $ | 216 | ||||||
| Financing costs, net |
157 | 80 | 77 | |||||||||
| Income tax expense (benefit) |
(205 | ) | 43 | (248 | ) | |||||||
| Exploration expenses |
6 | 3 | 3 | |||||||||
| Depreciation, depletion and amortization |
1,003 | 536 | 467 | |||||||||
| Asset dispositions |
(119 | ) | (87 | ) | (32 | ) | ||||||
| Share-based compensation |
40 | 20 | 20 | |||||||||
| Derivative and financial instrument non-cash valuation changes |
632 | 336 | 296 | |||||||||
| Restructuring and transaction costs |
212 | 23 | 189 | |||||||||
| Accretion on discounted liabilities and other |
(43 | ) | (14 | ) | (29 | ) | ||||||
|
|
|
|
|
|
|
|||||||
| EBITDAX (Non-GAAP) |
$ | 2,160 | $ | 1,201 | $ | 959 | ||||||
|
|
|
|
|
|
|
|||||||
| Annualized EBITDAX (Non-GAAP) |
$ | 4,320 | ||||||||||
10
NET DEBT
Devon defines net debt as debt less cash, cash equivalents and cash restricted for discontinued operations. 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.
| Quarter Ended June 30, 2021 |
||||
| Total debt (GAAP) |
$ | 6,502 | ||
| Less: |
||||
| Cash, cash equivalents and restricted cash |
(1,539 | ) | ||
|
|
|
|||
| Net debt (Non-GAAP) |
$ | 4,963 | ||
|
|
|
|||
NET DEBT-TO-EBITDAX
Devon defines net debt-to-EBITDAX as net debt divided by an annualized EBITDAX measure. Due to the merger with WPX closing in the first quarter of 2021, Devon has shown the first six months of 2021 EBITDAX annualized divided by net debt to show a more meaningful net debt-to-EBITDAX measure. Devon believes this ratio provides information useful to investors in assessing the company’s credit position and debt leverage.
| Quarter Ended June 30, 2021 |
||||
| Net debt (Non-GAAP) |
$ | 4,963 | ||
| EBITDAX (annualized 1H ’21) (Non-GAAP) |
$ | 4,320 | ||
|
|
|
|||
| Net debt-to-EBITDAX (Non-GAAP) |
1.1 | |||
|
|
|
|||
FREE CASH FLOW
Devon defines free cash flow as total operating cash flow less capital expenditures. Devon believes that free cash flow provides a useful measure of available cash generated by operating activities for other investing and financing activities.
| Quarter Ended June 30, 2021 |
Quarter Ended March 31, 2021 |
|||||||
| Total operating cash flow (GAAP) |
$ | 1,093 | $ | 592 | ||||
| Less capital expenditures: |
||||||||
| Capital expenditures |
(504 | ) | (499 | ) | ||||
|
|
|
|
|
|||||
| Free cash flow (Non-GAAP) |
$ | 589 | $ | 93 | ||||
|
|
|
|
|
|||||
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 June 30, 2021 |
||||
| Capital expenditures (accrued) |
$ | 509 | ||
| Operating cash flow |
$ | 1,093 | ||
|
|
|
|||
| Reinvestment rate (Non-GAAP) |
47 | % | ||
|
|
|
|||
11
VARIABLE DIVIDEND CALCULATION
Devon may pay a variable dividend up to 50 percent of its excess cash flow. Each quarter’s excess cash flow is computed as adjusted cash flow less capital expenditures and the fixed dividend.
| Quarter Ended June 30, 2021 |
||||
| Operating cash flow (GAAP) |
$ | 1,093 | ||
| Changes in assets and liabilities, net |
(17 | ) | ||
|
|
|
|||
| Cash from operations before balance sheet changes (Non-GAAP) |
1,076 | |||
| Cash restructuring and transaction costs (Non-GAAP) |
23 | |||
|
|
|
|||
| Adjusted cash flow (Non-GAAP) |
1,099 | |||
| Capital expenditures (Accrued) |
(509 | ) | ||
|
|
|
|||
| Adjusted free cash flow (Non-GAAP) |
590 | |||
| Fixed quarterly dividend ($0.11/share) |
(75 | ) | ||
|
|
|
|||
| Excess free cash flow (Non-GAAP) |
515 | |||
| 50% Pay out (Board Discretion: Up to 50%) |
50 | % | ||
|
|
|
|||
| Total variable dividend ($0.38/share) |
$ | 257 | ||
|
|
|
|||
12
THIRD-QUARTER AND FULL-YEAR 2021 GUIDANCE
| PRODUCTION GUIDANCE | ||||||||||||||||
| Quarter 3 | Full Year | |||||||||||||||
| Low | High | Low | High | |||||||||||||
| Oil (MBbls/d) |
290 | 300 | 280 | 290 | ||||||||||||
| Natural gas liquids (MBbls/d) |
130 | 140 | 120 | 130 | ||||||||||||
| Gas (MMcf/d) |
875 | 925 | 835 | 895 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total oil equivalent (MBoe/d) |
566 | 594 | 539 | 569 | ||||||||||||
|
|
|
|
|
|
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| CAPITAL EXPENDITURES GUIDANCE | ||||||||||||||||
| Quarter 3 | Full Year | |||||||||||||||
| (in millions) | Low | High | Low | High | ||||||||||||
| Upstream capital |
$ | 400 | $ | 450 | $ | 1,600 | $ | 1,800 | ||||||||
| Midstream capital |
5 | 15 | 80 | 100 | ||||||||||||
| Other capital |
15 | 25 | 40 | 80 | ||||||||||||
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| Total capital |
$ | 420 | $ | 490 | $ | 1,720 | $ | 1,980 | ||||||||
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| PRICE REALIZATIONS GUIDANCE | ||||||||||||||||
| Quarter 3 | Full Year | |||||||||||||||
| Low | High | Low | High | |||||||||||||
| Oil - % of WTI |
90 | % | 100 | % | 92 | % | 100 | % | ||||||||
| NGL - % of WTI |
35 | % | 45 | % | 35 | % | 45 | % | ||||||||
| Natural gas - % of Henry Hub |
75 | % | 85 | % | 80 | % | 90 | % | ||||||||
| OTHER GUIDANCE ITEMS | ||||||||||||||||
| Quarter 3 | Full Year | |||||||||||||||
| ($ millions, except Boe and %) | Low | High | Low | High | ||||||||||||
| Marketing & midstream operating profit |
$ | (5 | ) | $ | 5 | $ | (30 | ) | $ | (10 | ) | |||||
| LOE & GP&T per BOE |
$ | 6.75 | $ | 7.25 | $ | 7.00 | $ | 7.30 | ||||||||
| Production & property taxes as % of upstream sales |
7.0 | % | 8.0 | % | 7.0 | % | 8.0 | % | ||||||||
| Exploration expenses |
$ | — | $ | 5 | $ | 5 | $ | 15 | ||||||||
| Depreciation, depletion and amortization |
$ | 540 | $ | 590 | $ | 2,100 | $ | 2,150 | ||||||||
| General & administrative expenses |
$ | 90 | $ | 100 | $ | 380 | $ | 400 | ||||||||
| Cash financing costs, net |
$ | 90 | $ | 100 | $ | 395 | $ | 415 | ||||||||
| Other expenses |
$ | — | $ | 10 | $ | (20 | ) | $ | (40 | ) | ||||||
| Current income tax rate from continuing operations |
0 | % | 0 | % | 0 | % | 0 | % | ||||||||
| Deferred income tax rate from continuing operations |
20 | % | 30 | % | 20 | % | 30 | % | ||||||||
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| Total income tax rate from continuing operations |
20 | % | 30 | % | 20 | % | 30 | % | ||||||||
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CONTINGENT PAYMENTS FOR BARNETT SHALE DIVESTITURE (4-year period beginning in 2021)
| WTI Threshold | WTI Annual Earnout Amount | Henry Hub Threshold | Henry Hub Annual Earnout Amount |
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| $ | 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 | |||||||
2021 & 2022 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) |
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| Q3 2021 |
67,460 | $ | 41.45 | 53,250 | $ | 39.74 | $ | 49.74 | ||||||||||||
| Q4 2021 |
66,460 | $ | 41.24 | 48,250 | $ | 38.82 | $ | 48.82 | ||||||||||||
| Q1-Q4 2022 |
26,112 | $ | 43.75 | 20,233 | $ | 46.41 | $ | 56.41 | ||||||||||||
| Price Swaptions | Price Call Options | |||||||||||||||||||
| Period |
Volume (Bbls/d) | Weighted Average Price ($/Bbl) |
Volume (Bbls/d) | Weighted Average Price ($/Bbl) |
||||||||||||||||
| Q3 2021 |
— | $ | — | 5,000 | $ | 39.50 | ||||||||||||||
| Q4 2021 |
— | $ | — | 5,000 | $ | 39.50 | ||||||||||||||
| Q1-Q4 2022 |
10,000 | $ | 46.67 | — | $ | — | ||||||||||||||
Oil Basis Swaps
| Period |
Index |
Volume (Bbls/d) | Weighted Average Differential to WTI ($/Bbl) |
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| Q3-Q4 2021 |
Midland Sweet | 23,000 | $ | 0.84 | ||||||
| Q3-Q4 2021 |
BRENT/WTI Spread | 1,000 | $ | (8.00 | ) | |||||
| Q3-Q4 2021 |
Guernsey Light Sweet | 4,000 | $ | (1.49 | ) | |||||
| Q3-Q4 2021 |
NYMEX Roll | 13,000 | $ | 0.39 | ||||||
| Q1-Q4 2022 |
BRENT/WTI Spread | 1,000 | $ | (7.75 | ) | |||||
| Q1-Q4 2022 |
NYMEX Roll | 29,000 | $ | 0.45 | ||||||
| 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) |
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| Q3 2021 |
279,000 | $ | 2.64 | 228,000 | $ | 2.43 | $ | 2.93 | ||||||||||||
| Q4 2021 |
254,000 | $ | 2.63 | 133,000 | $ | 2.55 | $ | 3.05 | ||||||||||||
| Q1-Q4 2022 |
3,452 | $ | 2.85 | 120,644 | $ | 2.59 | $ | 3.09 | ||||||||||||
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| 2021 & 2022 HEDGING POSITIONS (continued) |
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| Price Swaptions | Price Call Options | |||||||||||||||||||
| Period |
Volume (MMBtu/d) | Weighted Average Price ($/MMBtu) |
Volume (MMBtu/d) | Weighted Average Price ($/MMBtu) |
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| Q3 2021 |
— | $ | — | 50,000 | $ | 2.68 | ||||||||||||||
| Q4 2021 |
— | $ | — | 50,000 | $ | 2.68 | ||||||||||||||
| Q1-Q4 2022 |
100,000 | $ | 2.70 | — | $ | — | ||||||||||||||
Natural Gas Basis Swaps
| Period |
Index |
Volume (MMBtu/d) | Weighted Average Differential to Henry Hub ($/MMBtu) |
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| Q3-Q4 2021 |
El Paso Natural Gas | 35,000 | $ | (0.92 | ) | |||||
| Q3-Q4 2021 |
WAHA | 80,000 | $ | (0.65 | ) | |||||
| Q1-Q4 2022 |
WAHA | 70,000 | $ | (0.57 | ) | |||||
NGL Commodity Hedges
| Price Swaps | ||||||||||
| Period |
Product |
Volume (Bbls/d) | Weighted Average Price ($/Bbl) |
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| Q3-Q4 2021 |
Natural Gasoline | 1,000 | $ | 47.57 | ||||||
| Q3-Q4 2021 |
Normal Butane | 1,000 | $ | 31.40 | ||||||
| Q3-Q4 2021 |
Propane | 1,000 | $ | 27.88 | ||||||
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 July 29, 2021.
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