|
OKLAHOMA CITY--(BUSINESS WIRE)--
Devon Energy Corp. (DVN) today announced core earnings of $89
million, or $0.22 per diluted share, for the first quarter of 2015. The
Company’s total cash inflows for the quarter reached $2.2 billion,
consisting of $1.6 billion of operating cash flow and $569 million of
proceeds received from the sale of EnLink common units.
“Devon delivered outstanding operational results in the first quarter as
we continued to deliver superior execution across our repositioned asset
portfolio,” said John Richels, president and CEO. “Our focused drilling
activity has generated production growth that exceeded our guidance for
the third consecutive quarter, our capital programs benefited from
substantial service cost savings and we did an exceptional job
controlling operating expenses.
“Additionally, the proceeds from the sale of EnLink units allow us to
further strengthen our investment-grade balance sheet and enhance our
liquidity position,” Richels said. “Combined with our recent sale of the
Victoria Express Pipeline to EnLink, which closed early in the second
quarter, we generated approximately $870 million of value for our
shareholders at a substantial premium to Devon’s current trading
multiple.”
On a reported basis, due to a non-cash, full-cost ceiling charge, Devon
had a net loss of $3.6 billion for the first-quarter 2015. This compares
with first-quarter 2014 reported net earnings of $324 million.
Production Exceeds Guidance for Third Consecutive Quarter
Total production from Devon’s retained asset base averaged 685,000
oil-equivalent barrels (Boe) per day during the first quarter of 2015.
This result exceeded the top end of the Company’s guidance range by
12,000 Boe per day and represents a 22 percent increase compared to the
first quarter of 2014. Liquids accounted for 60 percent of the Company’s
production mix.
Devon delivered record oil production of 272,000 barrels per day in the
first quarter. This result also exceeded the top end of the Company’s
guidance range by 12,000 barrels per day and represents a 55 percent
increase compared to the first quarter of 2014. The most significant
growth came from the Company’s U.S. operations, where oil production
increased a substantial 72 percent for the quarter year over year.
The strong growth in U.S. production was largely attributable to
prolific well results from the Company’s world-class Eagle Ford assets.
Net production in the Eagle Ford averaged 122,000 Boe per day in the
first quarter, a 23 percent increase compared to the fourth quarter of
2014 and nearly a 140% increase in production compared to Devon’s first
month of ownership in March 2014. In addition, the Company achieved
another quarter of strong production growth in the Delaware Basin, where
net production averaged 53,000 Boe per day, an increase of 15 percent
compared to the fourth quarter of 2014.
Devon’s heavy-oil operations in Canada also delivered impressive
production growth. In aggregate, net oil production from the Company’s
heavy-oil projects increased to a record 104,000 barrels per day in the
first quarter. Driven by the continued ramp-up of the Jackfish 3
facility, net oil production in Canada increased 33 percent compared to
the first quarter of 2014.
Devon Raises 2015 Production Outlook; Lowering E&P Capital Budget
Detailed forward-looking guidance for the second quarter and full-year
2015 is provided later in the release. A notable update from this
revised outlook is Devon raising its total oil production growth to a
range of 25 to 35 percent, a substantial increase from the Company’s
previous full-year growth guidance of 20 to 25 percent. Due to the
improving outlook for oil production, the Company has also raised its
top-line production growth guidance in 2015 to a range of 5 to 10
percent.
In addition to higher production, Devon is also benefiting from lower
capital requirements. The Company’s 2015 E&P capital program is now
expected to range from $3.9 to $4.1 billion. This represents a $250
million reduction in capital spending compared to the Company’s previous
guidance.
Operations Report
For additional details on Devon’s E&P operations, please refer to the
Company’s first-quarter 2015 Operations Report at www.devonenergy.com.
Highlights from the report include:
-
Eagle Ford delivers significant production growth
-
Bone Spring and Powder River Basin type curves raised
-
Jackfish 3 ramp-up drives growth in Canada
-
Emerging Meramec potential expands
Hedges Increase Upstream Revenue; Midstream Profit Rises
Revenue from oil, natural gas and natural gas liquids sales totaled $1.3
billion in the first quarter of 2015, with oil revenue increasing to 64
percent of total upstream revenues. This increased oil sales weighting
was attributable to the Company’s substantial growth in both U.S. and
Canadian oil production during the quarter.
Cash settlements related to the Company’s oil and natural gas hedges
increased revenue by nearly $600 million, or approximately $10 per Boe,
in the first quarter. At the end of March, Devon’s commodity hedges had
a fair-market value of $1.6 billion.
The Company’s midstream operating profit reached $193 million in the
first quarter. This result represents a 6 percent increase compared to
the first quarter of 2014 and was right in line with guidance. The
year-over-year increase in midstream operating profit was driven by
continued growth from EnLink Midstream.
Cost Reduction Initiatives Delivering Strong Results
The Company has several cost reduction initiatives underway that
positively impacted first-quarter results. Field-level operating costs,
which includes both lease operating expenses (LOE) and production taxes,
declined 9 percent to $10.73 per Boe compared to the first quarter of
2014.
The most significant operating cost savings came from LOE, which is the
Company’s largest field-level cost. LOE declined 7 percent compared to
the year-ago period to $8.97 per Boe and was 7 percent below the low end
of Devon’s guidance range. These LOE cost savings were realized across
all regions of the Company’s portfolio.
Based on year-to-date cost savings, Devon now expects the midpoint of
its full-year 2015 LOE to decline to around $9.30 per Boe. Compared to
previous guidance, this implies a full-year cash cost savings of around
$170 million.
Production and property taxes were $108 million in the first quarter of
2015, a 21 percent decline year over year. The decline was driven by
lower production taxes resulting from lower upstream revenue.
General and administrative expenses (G&A) totaled $251 million in the
first quarter of 2015, essentially flat compared to the fourth quarter
of 2014. Of this first-quarter G&A expense, $41 million was attributable
to non-cash related items. Excluding non-cash items, G&A declined 7
percent sequentially.
Excluding non-recurring items, Devon’s income tax rate was 36 percent of
pre-tax earnings for the first quarter of 2015. Of this adjusted rate,
the Company incurred a current tax rate of 8 percent, with a deferred
tax rate of 28 percent for the quarter.
Accretive Midstream Transactions Strengthen Balance Sheet
Devon recently utilized its strategic investment in EnLink to further
strengthen its financial position through a series of highly accretive
transactions. In aggregate, the total value of these transactions for
Devon was approximately $870 million.
The first of these transactions occurred on March 23, with the announced
sale of its Victoria Express Pipeline in the Eagle Ford to EnLink
Midstream Partners (ENLK). Total consideration for this highly
accretive transaction was approximately $215 million or about 10 times
2015 estimated EBITDA. This asset transaction closed on April 1, 2015,
with cash proceeds received in the second quarter.
On March 24, Devon commenced a secondary offering of 22.8 million ENLK
partnership units. This offering settled in late March, with the Company
realizing total cash proceeds of $569 million. Subsequent to quarter
end, underwriters fully exercised their option to purchase an additional
3.4 million ENLK partnership units from Devon. This resulted in an
incremental $85 million of proceeds received in the second-quarter.
With investment-grade credit ratings and cash balances of $1.9 billion
at the end of the first quarter, Devon’s financial position remains
exceptionally strong. At March 31, the Company’s net debt, excluding
non-recourse EnLink obligations, totaled $7.5 billion.
Non-GAAP Reconciliations
Pursuant to regulatory disclosure requirements, Devon is required to
reconcile non-GAAP financial measures to the related GAAP information
(GAAP refers to generally accepted accounting principles). Core earnings
and net debt are non-GAAP financial measures referenced within this
release. Reconciliations of these non-GAAP measures are provided later
in this release.
Conference Call Webcast and Supplemental Earnings Materials
Please note that as soon as practicable today, Devon will post
additional information, consisting of an operations report and
management commentary with associated slides, to its website at www.devonenergy.com.
The Company’s first-quarter 2015 conference call will be held at 10 a.m.
Central (11 a.m. Eastern) on Wednesday, May 6, 2015, and will serve
primarily as a forum for analyst and investor questions and answers.
Forward-Looking Statements
This press release includes "forward-looking statements" as defined
by the Securities and Exchange Commission (SEC). Such statements include
those concerning strategic plans, expectations and objectives for future
operations, and are often identified by use of the words “forecasts”,
“projections”, “estimates”, “plans”, “expectations”, “targets”,
“opportunities”, “potential”, “outlook” and other similar terminology.
All statements, other than statements of historical facts, included in
this press release that address activities, events or developments that
the Company expects, believes or anticipates will or may occur in the
future are forward-looking statements. Such statements are subject to a
number of assumptions, risks and uncertainties, many of which are beyond
the control of the Company. Statements regarding future drilling and
production are subject to all of the risks and uncertainties normally
incident to the exploration for and development and production of oil
and gas. These risks include, but are not limited to, the volatility of
oil, natural gas and NGL prices; uncertainties inherent in estimating
oil, natural gas and NGL reserves; the extent to which we are successful
in acquiring and discovering additional reserves; unforeseen changes in
the rate of production from our oil and gas properties; uncertainties in
future exploration and drilling results; uncertainties inherent in
estimating the cost of drilling and completing wells; drilling risks;
competition for leases, materials, people and capital; midstream
capacity constraints and potential interruptions in production; risk
related to our hedging activities; environmental risks; political
changes; changes in laws or regulations; our limited control over
third parties who operate our oil and gas properties; our ability to
successfully complete mergers, acquisitions and divestitures; and other
risks identified in our Form 10-K and our other filings with the SEC.
Investors are cautioned that any such statements are not guarantees of
future performance and that actual results or developments may differ
materially from those projected in the forward-looking statements. The
forward-looking statements in this press release are made as of the date
of this press release, even if subsequently made available by Devon on
its website or otherwise. Devon does not undertake any obligation to
update the forward-looking statements as a result of new information,
future events or otherwise.
The SEC permits oil and gas companies, in their filings with the SEC,
to disclose only proved, probable and possible reserves that meet the
SEC's definitions for such terms, and price and cost sensitivities for
such reserves, and prohibits disclosure of resources that do not
constitute such reserves. This release may contain certain terms, such
as resource potential and exploration target size. These estimates are
by their nature more speculative than estimates of proved, probable and
possible reserves and accordingly are subject to substantially greater
risk of being actually realized. The SEC guidelines strictly
prohibit us from including these estimates in filings with the SEC. U.S.
investors are urged to consider closely the disclosure in our Form 10-K,
available at www.devonenergy.com.
You can also obtain this form from the SEC by calling 1-800-SEC-0330 or
from the SEC’s website at www.sec.gov.
About Devon Energy
Devon Energy is a leading independent energy Company engaged in finding
and producing oil and natural gas. Based in Oklahoma City and included
in the S&P 500, Devon operates in several of the most prolific oil and
natural gas plays in the U.S. and Canada with an emphasis on a balanced
portfolio. The Company is the second-largest oil producer among North
American onshore independents. For more information, please visit www.devonenergy.com.
DEVON ENERGY CORPORATION FINANCIAL AND OPERATIONAL
INFORMATION
|
|
|
|
|
Quarter Ended
|
PRODUCTION NET OF ROYALTIES
|
|
|
|
March 31,
|
|
|
|
|
2015
|
|
|
|
2014
|
|
|
|
|
|
|
|
|
|
Oil and bitumen (MBbls/d)
|
|
|
|
|
|
|
|
|
United States
|
|
|
|
168
|
|
|
|
98
|
Canada
|
|
|
|
104
|
|
|
|
78
|
Retained assets
|
|
|
|
272
|
|
|
|
176
|
Divested assets
|
|
|
|
-
|
|
|
|
14
|
Total
|
|
|
|
272
|
|
|
|
190
|
Natural gas liquids (MBbls/d)
|
|
|
|
|
|
|
|
|
United States
|
|
|
|
139
|
|
|
|
119
|
Divested assets
|
|
|
|
-
|
|
|
|
16
|
Total
|
|
|
|
139
|
|
|
|
135
|
Gas (MMcf/d)
|
|
|
|
|
|
|
|
|
United States
|
|
|
|
1,617
|
|
|
|
1,587
|
Canada
|
|
|
|
28
|
|
|
|
20
|
Retained assets
|
|
|
|
1,645
|
|
|
|
1,607
|
Divested assets
|
|
|
|
-
|
|
|
|
585
|
Total
|
|
|
|
1,645
|
|
|
|
2,192
|
Oil equivalent (MBoe/d)
|
|
|
|
|
|
|
|
|
United States
|
|
|
|
576
|
|
|
|
482
|
Canada
|
|
|
|
109
|
|
|
|
81
|
Retained assets
|
|
|
|
685
|
|
|
|
563
|
Divested assets
|
|
|
|
-
|
|
|
|
128
|
Total
|
|
|
|
685
|
|
|
|
691
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
KEY OPERATING STATISTICS BY REGION
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended March 31, 2015
|
|
|
|
|
Avg. Production (MBoe/d)
|
|
|
|
Gross Wells Drilled
|
|
|
|
Operated Rigs at March 31, 2015
|
Eagle Ford
|
|
|
|
122
|
|
|
|
87
|
|
|
|
1
|
Permian Basin
|
|
|
|
102
|
|
|
|
67
|
|
|
|
15
|
Canadian Heavy Oil
|
|
|
|
109
|
|
|
|
21
|
|
|
|
2
|
Anadarko Basin
|
|
|
|
88
|
|
|
|
24
|
|
|
|
8
|
Barnett Shale
|
|
|
|
191
|
|
|
|
-
|
|
|
|
-
|
Rockies
|
|
|
|
22
|
|
|
|
13
|
|
|
|
2
|
Other assets
|
|
|
|
51
|
|
|
|
16
|
|
|
|
2
|
Total
|
|
|
|
685
|
|
|
|
228
|
|
|
|
30
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PRODUCTION TREND
|
|
|
|
2014
|
|
|
|
2014
|
|
|
|
2014
|
|
|
|
2014
|
|
|
|
2015
|
|
|
|
|
Quarter 1
|
|
|
|
Quarter 2
|
|
|
|
Quarter 3
|
|
|
|
Quarter 4
|
|
|
|
Quarter 1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Oil (MBbls/d)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Eagle Ford
|
|
|
|
11
|
|
|
|
40
|
|
|
|
47
|
|
|
|
60
|
|
|
|
75
|
Permian Basin
|
|
|
|
55
|
|
|
|
55
|
|
|
|
56
|
|
|
|
55
|
|
|
|
60
|
Canadian Heavy Oil
|
|
|
|
78
|
|
|
|
77
|
|
|
|
80
|
|
|
|
93
|
|
|
|
104
|
Anadarko Basin
|
|
|
|
9
|
|
|
|
11
|
|
|
|
10
|
|
|
|
10
|
|
|
|
9
|
Barnett Shale
|
|
|
|
2
|
|
|
|
2
|
|
|
|
2
|
|
|
|
2
|
|
|
|
1
|
Rockies
|
|
|
|
8
|
|
|
|
8
|
|
|
|
10
|
|
|
|
9
|
|
|
|
12
|
Other assets
|
|
|
|
13
|
|
|
|
12
|
|
|
|
11
|
|
|
|
10
|
|
|
|
11
|
Retained assets
|
|
|
|
176
|
|
|
|
205
|
|
|
|
216
|
|
|
|
239
|
|
|
|
272
|
Divested assets
|
|
|
|
14
|
|
|
|
4
|
|
|
|
3
|
|
|
|
-
|
|
|
|
-
|
Total
|
|
|
|
190
|
|
|
|
209
|
|
|
|
219
|
|
|
|
239
|
|
|
|
272
|
Natural gas liquids (MBbls/d)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Eagle Ford
|
|
|
|
3
|
|
|
|
11
|
|
|
|
14
|
|
|
|
18
|
|
|
|
23
|
Permian Basin
|
|
|
|
16
|
|
|
|
18
|
|
|
|
19
|
|
|
|
20
|
|
|
|
19
|
Anadarko Basin
|
|
|
|
29
|
|
|
|
31
|
|
|
|
34
|
|
|
|
34
|
|
|
|
30
|
Barnett Shale
|
|
|
|
55
|
|
|
|
55
|
|
|
|
54
|
|
|
|
53
|
|
|
|
51
|
Rockies
|
|
|
|
1
|
|
|
|
1
|
|
|
|
1
|
|
|
|
1
|
|
|
|
1
|
Other assets
|
|
|
|
15
|
|
|
|
14
|
|
|
|
16
|
|
|
|
15
|
|
|
|
15
|
Retained assets
|
|
|
|
119
|
|
|
|
130
|
|
|
|
138
|
|
|
|
141
|
|
|
|
139
|
Divested assets
|
|
|
|
16
|
|
|
|
6
|
|
|
|
5
|
|
|
|
-
|
|
|
|
-
|
Total
|
|
|
|
135
|
|
|
|
136
|
|
|
|
143
|
|
|
|
141
|
|
|
|
139
|
Gas (MMcf/d)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Eagle Ford
|
|
|
|
24
|
|
|
|
88
|
|
|
|
109
|
|
|
|
127
|
|
|
|
143
|
Permian Basin
|
|
|
|
121
|
|
|
|
134
|
|
|
|
136
|
|
|
|
137
|
|
|
|
137
|
Canadian Heavy Oil
|
|
|
|
20
|
|
|
|
23
|
|
|
|
26
|
|
|
|
23
|
|
|
|
28
|
Anadarko Basin
|
|
|
|
281
|
|
|
|
309
|
|
|
|
323
|
|
|
|
329
|
|
|
|
297
|
Barnett Shale
|
|
|
|
931
|
|
|
|
932
|
|
|
|
896
|
|
|
|
878
|
|
|
|
827
|
Rockies
|
|
|
|
65
|
|
|
|
67
|
|
|
|
66
|
|
|
|
58
|
|
|
|
53
|
Other assets
|
|
|
|
165
|
|
|
|
159
|
|
|
|
160
|
|
|
|
155
|
|
|
|
160
|
Retained assets
|
|
|
|
1,607
|
|
|
|
1,712
|
|
|
|
1,716
|
|
|
|
1,707
|
|
|
|
1,645
|
Divested assets
|
|
|
|
585
|
|
|
|
219
|
|
|
|
138
|
|
|
|
3
|
|
|
|
-
|
Total
|
|
|
|
2,192
|
|
|
|
1,931
|
|
|
|
1,854
|
|
|
|
1,710
|
|
|
|
1,645
|
Oil equivalent (MBoe/d)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Eagle Ford
|
|
|
|
18
|
|
|
|
65
|
|
|
|
79
|
|
|
|
99
|
|
|
|
122
|
Permian Basin
|
|
|
|
91
|
|
|
|
95
|
|
|
|
98
|
|
|
|
98
|
|
|
|
102
|
Canadian Heavy Oil
|
|
|
|
81
|
|
|
|
81
|
|
|
|
84
|
|
|
|
97
|
|
|
|
109
|
Anadarko Basin
|
|
|
|
85
|
|
|
|
93
|
|
|
|
98
|
|
|
|
100
|
|
|
|
88
|
Barnett Shale
|
|
|
|
213
|
|
|
|
212
|
|
|
|
205
|
|
|
|
201
|
|
|
|
191
|
Rockies
|
|
|
|
20
|
|
|
|
21
|
|
|
|
22
|
|
|
|
19
|
|
|
|
22
|
Other assets
|
|
|
|
55
|
|
|
|
53
|
|
|
|
54
|
|
|
|
50
|
|
|
|
51
|
Retained assets
|
|
|
|
563
|
|
|
|
620
|
|
|
|
640
|
|
|
|
664
|
|
|
|
685
|
Divested assets
|
|
|
|
128
|
|
|
|
47
|
|
|
|
31
|
|
|
|
1
|
|
|
|
-
|
Total
|
|
|
|
691
|
|
|
|
667
|
|
|
|
671
|
|
|
|
665
|
|
|
|
685
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BENCHMARK PRICES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(average prices)
|
|
|
|
Quarter Ended March 31,
|
|
|
|
|
|
|
|
|
2015
|
|
|
|
2014
|
|
|
|
|
|
|
|
|
Natural Gas ($/Mcf) - Henry Hub
|
|
|
|
$
|
2.99
|
|
|
|
|
$
|
4.95
|
|
|
|
|
|
|
|
|
|
Oil ($/Bbl) - West Texas Intermediate (Cushing)
|
|
|
|
$
|
48.87
|
|
|
|
|
$
|
98.66
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
REALIZED PRICES
|
|
|
|
Quarter Ended March 31, 2015
|
|
|
|
|
Oil /Bitumen
|
|
|
|
NGL
|
|
|
|
Gas
|
|
|
|
Total
|
|
|
|
|
(Per Bbl)
|
|
|
|
(Per Bbl)
|
|
|
|
(Per Mcf)
|
|
|
|
(Per Boe)
|
United States
|
|
|
|
$
|
42.80
|
|
|
|
|
$
|
9.40
|
|
|
|
|
$
|
2.47
|
|
|
|
|
$
|
21.66
|
|
Canada (1) |
|
|
|
$
|
22.87
|
|
|
|
|
$
|
N/M
|
|
|
|
$
|
1.12
|
|
|
|
|
$
|
22.16
|
|
Realized price without hedges
|
|
|
|
$
|
35.17
|
|
|
|
|
$
|
9.40
|
|
|
|
|
$
|
2.45
|
|
|
|
|
$
|
21.74
|
|
Cash settlements
|
|
|
|
$
|
21.12
|
|
|
|
|
$
|
-
|
|
|
|
|
$
|
0.51
|
|
|
|
|
$
|
9.62
|
|
Realized price, including cash settlements
|
|
|
|
$
|
56.29
|
|
|
|
|
$
|
9.40
|
|
|
|
|
$
|
2.96
|
|
|
|
|
$
|
31.36
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended March 31, 2014
|
|
|
|
|
Oil /Bitumen
|
|
|
|
NGL
|
|
|
|
Gas
|
|
|
|
Total
|
|
|
|
|
(Per Bbl)
|
|
|
|
(Per Bbl)
|
|
|
|
(Per Mcf)
|
|
|
|
(Per Boe)
|
United States
|
|
|
|
$
|
91.66
|
|
|
|
|
$
|
29.66
|
|
|
|
|
$
|
4.33
|
|
|
|
|
$
|
39.44
|
|
Canada (1) |
|
|
|
$
|
61.76
|
|
|
|
|
$
|
51.80
|
|
|
|
|
$
|
4.14
|
|
|
|
|
$
|
46.71
|
|
Realized price without hedges
|
|
|
|
$
|
77.75
|
|
|
|
|
$
|
31.15
|
|
|
|
|
$
|
4.30
|
|
|
|
|
$
|
41.13
|
|
Cash settlements
|
|
|
|
$
|
(2.10
|
)
|
|
|
|
$
|
(0.02
|
)
|
|
|
|
$
|
(0.33
|
)
|
|
|
|
$
|
(1.61
|
)
|
Realized price, including cash settlements
|
|
|
|
$
|
75.65
|
|
|
|
|
$
|
31.13
|
|
|
|
|
$
|
3.97
|
|
|
|
|
$
|
39.52
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) The reported Canadian gas volumes include volumes that are produced
from certain of our leases and then transported to our Jackfish
operations where the gas is used as fuel. However, the revenues and
expenses related to this consumed gas are eliminated in our consolidated
financials.
|
|
|
|
|
|
|
|
|
CONSOLIDATED STATEMENTS OF EARNINGS
|
|
|
|
|
|
|
|
|
(in millions, except per share amounts)
|
|
|
|
Quarter Ended
|
|
|
|
|
March 31,
|
|
|
|
|
2015
|
|
|
|
2014
|
Oil, gas and NGL sales
|
|
|
|
$
|
1,339
|
|
|
|
|
$
|
2,557
|
|
Oil, gas and NGL derivatives
|
|
|
|
|
294
|
|
|
|
|
|
(320
|
)
|
Marketing and midstream revenues
|
|
|
|
|
1,632
|
|
|
|
|
|
1,488
|
|
Total operating revenues
|
|
|
|
|
3,265
|
|
|
|
|
|
3,725
|
|
Lease operating expenses
|
|
|
|
|
553
|
|
|
|
|
|
598
|
|
Marketing and midstream operating expenses
|
|
|
|
|
1,439
|
|
|
|
|
|
1,305
|
|
General and administrative expenses
|
|
|
|
|
251
|
|
|
|
|
|
211
|
|
Production and property taxes
|
|
|
|
|
108
|
|
|
|
|
|
137
|
|
Depreciation, depletion and amortization
|
|
|
|
|
930
|
|
|
|
|
|
739
|
|
Asset impairments
|
|
|
|
|
5,460
|
|
|
|
|
|
-
|
|
Restructuring costs
|
|
|
|
|
-
|
|
|
|
|
|
37
|
|
Gains and losses on asset sales
|
|
|
|
|
-
|
|
|
|
|
|
(15
|
)
|
Other operating items
|
|
|
|
|
19
|
|
|
|
|
|
23
|
|
Total operating expenses
|
|
|
|
|
8,760
|
|
|
|
|
|
3,035
|
|
Operating income (loss)
|
|
|
|
|
(5,495
|
)
|
|
|
|
|
690
|
|
Net financing costs
|
|
|
|
|
117
|
|
|
|
|
|
112
|
|
Other nonoperating items
|
|
|
|
|
12
|
|
|
|
|
|
18
|
|
Earnings (loss) before income taxes
|
|
|
|
|
(5,624
|
)
|
|
|
|
|
560
|
|
Income tax expense (benefit)
|
|
|
|
|
(2,035
|
)
|
|
|
|
|
231
|
|
Net earnings (loss)
|
|
|
|
|
(3,589
|
)
|
|
|
|
|
329
|
|
Net earnings attributable to noncontrolling interests
|
|
|
|
|
10
|
|
|
|
|
|
5
|
|
Net earnings (loss) attributable to Devon
|
|
|
|
$
|
(3,599
|
)
|
|
|
|
$
|
324
|
|
|
|
|
|
|
|
|
|
|
Net earnings (loss) per share attributable to Devon:
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
$
|
(8.88
|
)
|
|
|
|
$
|
0.80
|
|
Diluted
|
|
|
|
$
|
(8.88
|
)
|
|
|
|
$
|
0.79
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares outstanding:
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
|
410
|
|
|
|
|
|
407
|
|
Diluted
|
|
|
|
|
410
|
|
|
|
|
|
408
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATING STATEMENTS OF OPERATIONS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended March 31, 2015
|
|
|
|
|
Devon U.S. & Canada
|
|
|
|
EnLink
|
|
|
|
Eliminations
|
|
|
|
Total
|
Oil, gas and NGL sales
|
|
|
|
$
|
1,339
|
|
|
|
|
$
|
-
|
|
|
|
|
$
|
-
|
|
|
|
|
$
|
1,339
|
|
Oil, gas and NGL derivatives
|
|
|
|
|
294
|
|
|
|
|
|
-
|
|
|
|
|
|
-
|
|
|
|
|
|
294
|
|
Marketing and midstream revenues
|
|
|
|
|
852
|
|
|
|
|
|
936
|
|
|
|
|
|
(156
|
)
|
|
|
|
|
1,632
|
|
Total operating revenues
|
|
|
|
|
2,485
|
|
|
|
|
|
936
|
|
|
|
|
|
(156
|
)
|
|
|
|
|
3,265
|
|
Lease operating expenses
|
|
|
|
|
553
|
|
|
|
|
|
-
|
|
|
|
|
|
-
|
|
|
|
|
|
553
|
|
Marketing and midstream operating expenses
|
|
|
|
|
852
|
|
|
|
|
|
743
|
|
|
|
|
|
(156
|
)
|
|
|
|
|
1,439
|
|
General and administrative expenses
|
|
|
|
|
209
|
|
|
|
|
|
42
|
|
|
|
|
|
-
|
|
|
|
|
|
251
|
|
Production and property taxes
|
|
|
|
|
97
|
|
|
|
|
|
11
|
|
|
|
|
|
-
|
|
|
|
|
|
108
|
|
Depreciation, depletion and amortization
|
|
|
|
|
840
|
|
|
|
|
|
90
|
|
|
|
|
|
-
|
|
|
|
|
|
930
|
|
Asset impairments
|
|
|
|
|
5,460
|
|
|
|
|
|
-
|
|
|
|
|
|
-
|
|
|
|
|
|
5,460
|
|
Other operating items
|
|
|
|
|
19
|
|
|
|
|
|
-
|
|
|
|
|
|
-
|
|
|
|
|
|
19
|
|
Total operating expenses
|
|
|
|
|
8,030
|
|
|
|
|
|
886
|
|
|
|
|
|
(156
|
)
|
|
|
|
|
8,760
|
|
Operating income (loss)
|
|
|
|
|
(5,545
|
)
|
|
|
|
|
50
|
|
|
|
|
|
-
|
|
|
|
|
|
(5,495
|
)
|
Net financing costs
|
|
|
|
|
98
|
|
|
|
|
|
19
|
|
|
|
|
|
-
|
|
|
|
|
|
117
|
|
Other nonoperating items
|
|
|
|
|
16
|
|
|
|
|
|
(4
|
)
|
|
|
|
|
-
|
|
|
|
|
|
12
|
|
Earnings (loss) before income taxes
|
|
|
|
|
(5,659
|
)
|
|
|
|
|
35
|
|
|
|
|
|
-
|
|
|
|
|
|
(5,624
|
)
|
Income tax expense (benefit)
|
|
|
|
|
(2,046
|
)
|
|
|
|
|
11
|
|
|
|
|
|
-
|
|
|
|
|
|
(2,035
|
)
|
Net earnings (loss)
|
|
|
|
|
(3,613
|
)
|
|
|
|
|
24
|
|
|
|
|
|
-
|
|
|
|
|
|
(3,589
|
)
|
Net earnings attributable to noncontrolling interests
|
|
|
|
|
-
|
|
|
|
|
|
10
|
|
|
|
|
|
-
|
|
|
|
|
|
10
|
|
Net earnings (loss) attributable to Devon
|
|
|
|
$
|
(3,613
|
)
|
|
|
|
$
|
14
|
|
|
|
|
$
|
-
|
|
|
|
|
$
|
(3,599
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
|
|
|
|
|
|
|
(in millions)
|
|
|
|
Quarter
|
|
|
|
|
Ended March 31,
|
|
|
|
|
2015
|
|
|
|
2014
|
Cash flows from operating activities:
|
|
|
|
|
|
|
|
|
Net earnings (loss)
|
|
|
|
$
|
(3,589
|
)
|
|
|
|
$
|
329
|
|
Adjustments to reconcile net earnings (loss)
|
|
|
|
|
|
|
|
|
to net cash from operating activities:
|
|
|
|
|
|
|
|
|
Depreciation, depletion and amortization
|
|
|
|
|
930
|
|
|
|
|
|
739
|
|
Asset impairments
|
|
|
|
|
5,460
|
|
|
|
|
|
-
|
|
Gains and losses on asset sales
|
|
|
|
|
-
|
|
|
|
|
|
(15
|
)
|
Deferred income tax expense (benefit)
|
|
|
|
|
(2,047
|
)
|
|
|
|
|
208
|
|
Derivatives and other financial instruments
|
|
|
|
|
(430
|
)
|
|
|
|
|
307
|
|
Cash settlements on derivatives and financial instruments
|
|
|
|
|
719
|
|
|
|
|
|
(54
|
)
|
Other noncash charges
|
|
|
|
|
225
|
|
|
|
|
|
123
|
|
Net change in working capital
|
|
|
|
|
215
|
|
|
|
|
|
(152
|
)
|
Change in long-term other assets
|
|
|
|
|
141
|
|
|
|
|
|
(88
|
)
|
Change in long-term other liabilities
|
|
|
|
|
24
|
|
|
|
|
|
13
|
|
Net cash from operating activities
|
|
|
|
|
1,648
|
|
|
|
|
|
1,410
|
|
|
|
|
|
|
|
|
|
|
Cash flows from investing activities:
|
|
|
|
|
|
|
|
|
Capital expenditures
|
|
|
|
|
(1,717
|
)
|
|
|
|
|
(1,583
|
)
|
Acquisitions of property, equipment and businesses
|
|
|
|
|
(404
|
)
|
|
|
|
|
(5,935
|
)
|
Divestitures of property and equipment
|
|
|
|
|
2
|
|
|
|
|
|
142
|
|
Redemptions of long-term investments
|
|
|
|
|
-
|
|
|
|
|
|
57
|
|
Other
|
|
|
|
|
3
|
|
|
|
|
|
37
|
|
Net cash from investing activities
|
|
|
|
|
(2,116
|
)
|
|
|
|
|
(7,282
|
)
|
|
|
|
|
|
|
|
|
|
Cash flows from financing activities:
|
|
|
|
|
|
|
|
|
Borrowings of long-term debt, net of issuance costs
|
|
|
|
|
957
|
|
|
|
|
|
3,346
|
|
Net borrowings of short-term debt
|
|
|
|
|
15
|
|
|
|
|
|
257
|
|
Repayments of long-term debt
|
|
|
|
|
(487
|
)
|
|
|
|
|
(1,577
|
)
|
Stock option exercises
|
|
|
|
|
-
|
|
|
|
|
|
11
|
|
Sale of subsidiary units
|
|
|
|
|
569
|
|
|
|
|
|
-
|
|
Issuance of subsidiary units
|
|
|
|
|
2
|
|
|
|
|
|
-
|
|
Dividends paid on common stock
|
|
|
|
|
(99
|
)
|
|
|
|
|
(90
|
)
|
Distributions to noncontrolling interests
|
|
|
|
|
(53
|
)
|
|
|
|
|
(100
|
)
|
Other
|
|
|
|
|
(12
|
)
|
|
|
|
|
(3
|
)
|
Net cash from financing activities
|
|
|
|
|
892
|
|
|
|
|
|
1,844
|
|
Effect of exchange rate changes on cash
|
|
|
|
|
(46
|
)
|
|
|
|
|
(11
|
)
|
Net change in cash and cash equivalents
|
|
|
|
|
378
|
|
|
|
|
|
(4,039
|
)
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents at beginning of period
|
|
|
|
|
1,480
|
|
|
|
|
|
6,066
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents at end of period
|
|
|
|
$
|
1,858
|
|
|
|
|
$
|
2,027
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED BALANCE SHEETS
|
|
|
|
|
|
|
|
|
(in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31,
|
|
|
|
December 31,
|
Current assets:
|
|
|
|
2015
|
|
|
|
2014
|
Cash and cash equivalents
|
|
|
|
$
|
1,858
|
|
|
|
|
$
|
1,480
|
|
Accounts receivable
|
|
|
|
|
1,663
|
|
|
|
|
|
1,959
|
|
Derivatives, at fair value
|
|
|
|
|
1,706
|
|
|
|
|
|
1,993
|
|
Income taxes receivable
|
|
|
|
|
-
|
|
|
|
|
|
522
|
|
Other current assets
|
|
|
|
|
579
|
|
|
|
|
|
544
|
|
Total current assets
|
|
|
|
|
5,806
|
|
|
|
|
|
6,498
|
|
Property and equipment, at cost:
|
|
|
|
|
|
|
|
|
Oil and gas, based on full cost accounting:
|
|
|
|
|
|
|
|
|
Subject to amortization
|
|
|
|
|
75,952
|
|
|
|
|
|
75,738
|
|
Not subject to amortization
|
|
|
|
|
2,656
|
|
|
|
|
|
2,752
|
|
Total oil and gas
|
|
|
|
|
78,608
|
|
|
|
|
|
78,490
|
|
Midstream and other
|
|
|
|
|
10,109
|
|
|
|
|
|
9,695
|
|
Total property and equipment, at cost
|
|
|
|
|
88,717
|
|
|
|
|
|
88,185
|
|
Less accumulated depreciation, depletion and amortization
|
|
|
|
|
(57,262
|
)
|
|
|
|
|
(51,889
|
)
|
Property and equipment, net
|
|
|
|
|
31,455
|
|
|
|
|
|
36,296
|
|
Goodwill
|
|
|
|
|
6,328
|
|
|
|
|
|
6,303
|
|
Other long-term assets
|
|
|
|
|
1,753
|
|
|
|
|
|
1,540
|
|
Total assets
|
|
|
|
$
|
45,342
|
|
|
|
|
$
|
50,637
|
|
|
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
|
|
Accounts payable
|
|
|
|
$
|
1,335
|
|
|
|
|
$
|
1,400
|
|
Revenues and royalties payable
|
|
|
|
|
1,054
|
|
|
|
|
|
1,193
|
|
Short-term debt
|
|
|
|
|
1,448
|
|
|
|
|
|
1,432
|
|
Deferred income taxes
|
|
|
|
|
638
|
|
|
|
|
|
730
|
|
Other current liabilities
|
|
|
|
|
1,085
|
|
|
|
|
|
1,180
|
|
Total current liabilities
|
|
|
|
|
5,560
|
|
|
|
|
|
5,935
|
|
Long-term debt
|
|
|
|
|
10,301
|
|
|
|
|
|
9,830
|
|
Asset retirement obligations
|
|
|
|
|
1,373
|
|
|
|
|
|
1,339
|
|
Other long-term liabilities
|
|
|
|
|
922
|
|
|
|
|
|
948
|
|
Deferred income taxes
|
|
|
|
|
4,167
|
|
|
|
|
|
6,244
|
|
Stockholders' equity:
|
|
|
|
|
|
|
|
|
Common stock
|
|
|
|
|
41
|
|
|
|
|
|
41
|
|
Additional paid-in capital
|
|
|
|
|
4,542
|
|
|
|
|
|
4,088
|
|
Retained earnings
|
|
|
|
|
12,933
|
|
|
|
|
|
16,631
|
|
Accumulated other comprehensive earnings
|
|
|
|
|
481
|
|
|
|
|
|
779
|
|
Total stockholders' equity attributable to Devon
|
|
|
|
|
17,997
|
|
|
|
|
|
21,539
|
|
Noncontrolling interests
|
|
|
|
|
5,022
|
|
|
|
|
|
4,802
|
|
Total stockholders' equity
|
|
|
|
|
23,019
|
|
|
|
|
|
26,341
|
|
Total liabilities and stockholders' equity
|
|
|
|
$
|
45,342
|
|
|
|
|
$
|
50,637
|
|
Common shares outstanding
|
|
|
|
|
411
|
|
|
|
|
|
409
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CAPITAL EXPENDITURES
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions)
|
|
|
|
Quarter Ended March 31, 2015
|
|
|
|
|
U.S.
|
|
|
|
Canada
|
|
|
|
Total
|
Exploration / Appraisal
|
|
|
|
$
|
128
|
|
|
|
$
|
53
|
|
|
|
$
|
181
|
Development
|
|
|
|
|
1,008
|
|
|
|
|
137
|
|
|
|
|
1,145
|
Exploration and development capital
|
|
|
|
$
|
1,136
|
|
|
|
$
|
190
|
|
|
|
$
|
1,326
|
Capitalized G&A
|
|
|
|
|
|
|
|
|
|
|
|
|
94
|
Capitalized interest
|
|
|
|
|
|
|
|
|
|
|
|
|
13
|
Acquisitions
|
|
|
|
|
|
|
|
|
|
|
|
|
92
|
Devon midstream capital
|
|
|
|
|
|
|
|
|
|
|
|
|
41
|
Other capital
|
|
|
|
|
|
|
|
|
|
|
|
|
27
|
Total (1) |
|
|
|
|
|
|
|
|
|
|
|
$
|
1,593
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Excludes $489 million attributable to EnLink.
|
|
NON-GAAP FINANCIAL MEASURES
The United States Securities and Exchange Commission has adopted
disclosure requirements for public companies such as Devon concerning
Non-GAAP financial measures (GAAP refers to generally accepted
accounting principles). The Company must reconcile the Non-GAAP
financial measure to related GAAP information.
CORE EARNINGS (in millions)
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 diluted
share. 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 2015 earnings.
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended March 31, 2015
|
|
|
|
|
Before-Tax
|
|
|
|
After-Tax
|
|
|
|
|
|
|
|
|
|
Net loss attributable to Devon (GAAP)
|
|
|
|
|
|
|
|
$
|
(3,599
|
)
|
Asset impairments
|
|
|
|
5,460
|
|
|
|
|
3,467
|
|
Fair value changes in financial instruments and foreign currency
|
|
|
|
319
|
|
|
|
|
221
|
|
Core earnings attributable to Devon (Non-GAAP)
|
|
|
|
|
|
|
|
$
|
89
|
|
Diluted share count
|
|
|
|
|
|
|
|
|
413
|
|
Core diluted earnings per share attributable to Devon (Non-GAAP)
|
|
|
|
|
|
|
|
$
|
0.22
|
|
|
|
|
|
|
|
|
|
|
NET DEBT (in millions)
Devon defines net debt as debt less cash and cash equivalents and net
debt attributable to the consolidation of EnLink Midstream as presented
in the following table. Devon believes that netting these sources of
cash against debt and adjusting for EnLink net debt provides a clearer
picture of the future demands on cash from Devon to repay debt.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31,
|
|
|
|
|
|
2015
|
|
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
Total debt (GAAP)
|
|
|
|
$
|
11,749
|
|
|
|
|
$
|
15,512
|
|
Cash and cash equivalents
|
|
|
|
|
(1,858
|
)
|
|
|
|
|
(2,027
|
)
|
Consolidated net debt (Non-GAAP)
|
|
|
|
|
9,891
|
|
|
|
|
|
13,485
|
|
Non-recourse EnLink obligations
|
|
|
|
|
(2,494
|
)
|
|
|
|
|
(1,732
|
)
|
EnLink cash and cash equivalents
|
|
|
|
|
110
|
|
|
|
|
|
221
|
|
Net debt (Non-GAAP)
|
|
|
|
$
|
7,507
|
|
|
|
|
$
|
11,974
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DEVON ENERGY CORPORATION FORWARD LOOKING GUIDANCE
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PRODUCTION GUIDANCE
|
|
|
|
Quarter 2
|
|
|
|
Full Year
|
|
|
|
|
Low
|
|
|
|
High
|
|
|
|
Low
|
|
|
|
High
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Oil and bitumen (MBbls/d)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
United States
|
|
|
|
165
|
|
|
|
170
|
|
|
|
160
|
|
|
|
170
|
Canada
|
|
|
|
95
|
|
|
|
100
|
|
|
|
100
|
|
|
|
110
|
Total
|
|
|
|
260
|
|
|
|
270
|
|
|
|
260
|
|
|
|
280
|
Natural gas liquids (MBbls/d)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
United States
|
|
|
|
130
|
|
|
|
140
|
|
|
|
128
|
|
|
|
134
|
Gas (MMcf/d)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
United States
|
|
|
|
1,600
|
|
|
|
1,650
|
|
|
|
1,550
|
|
|
|
1,600
|
Canada
|
|
|
|
20
|
|
|
|
20
|
|
|
|
20
|
|
|
|
20
|
Total
|
|
|
|
1,620
|
|
|
|
1,670
|
|
|
|
1,570
|
|
|
|
1,620
|
Oil equivalent (MBoe/d)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
United States
|
|
|
|
562
|
|
|
|
585
|
|
|
|
546
|
|
|
|
571
|
Canada
|
|
|
|
98
|
|
|
|
103
|
|
|
|
103
|
|
|
|
113
|
Total
|
|
|
|
660
|
|
|
|
688
|
|
|
|
649
|
|
|
|
684
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PRICE REALIZATIONS GUIDANCE
|
|
|
|
Quarter 2
|
|
|
|
Full Year
|
|
|
|
|
Low
|
|
|
|
High
|
|
|
|
Low
|
|
|
|
High
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Oil and bitumen - % of WTI
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
United States
|
|
|
|
|
84
|
%
|
|
|
|
|
94
|
%
|
|
|
|
|
85
|
%
|
|
|
|
|
95
|
%
|
Canada
|
|
|
|
|
52
|
%
|
|
|
|
|
62
|
%
|
|
|
|
|
49
|
%
|
|
|
|
|
59
|
%
|
NGL - realized price
|
|
|
|
$
|
7
|
|
|
|
|
$
|
12
|
|
|
|
|
$
|
6
|
|
|
|
|
$
|
16
|
|
Natural gas - % of Henry Hub
|
|
|
|
|
78
|
%
|
|
|
|
|
88
|
%
|
|
|
|
|
79
|
%
|
|
|
|
|
89
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OTHER GUIDANCE ITEMS
|
|
|
|
Quarter 2
|
|
|
|
Full Year
|
($ millions, except Boe)
|
|
|
|
Low
|
|
|
|
High
|
|
|
|
Low
|
|
|
|
High
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Marketing & midstream operating profit
|
|
|
|
$
|
185
|
|
|
|
|
$
|
215
|
|
|
|
|
$
|
860
|
|
|
|
|
$
|
920
|
|
Lease operating expenses per Boe
|
|
|
|
$
|
9.00
|
|
|
|
|
$
|
9.60
|
|
|
|
|
$
|
9.00
|
|
|
|
|
$
|
9.60
|
|
General & administrative expenses per Boe
|
|
|
|
$
|
3.60
|
|
|
|
|
$
|
3.90
|
|
|
|
|
$
|
3.75
|
|
|
|
|
$
|
4.25
|
|
Production and property taxes as % of upstream sales
|
|
|
|
|
7.9
|
%
|
|
|
|
|
8.9
|
%
|
|
|
|
|
7.4
|
%
|
|
|
|
|
8.4
|
%
|
Depreciation, depletion and amortization per Boe
|
|
|
|
$
|
13.50
|
|
|
|
|
$
|
14.50
|
|
|
|
|
$
|
13.75
|
|
|
|
|
$
|
14.75
|
|
Other operating items
|
|
|
|
$
|
15
|
|
|
|
|
$
|
20
|
|
|
|
|
$
|
60
|
|
|
|
|
$
|
80
|
|
Net financing costs
|
|
|
|
$
|
110
|
|
|
|
|
$
|
130
|
|
|
|
|
$
|
460
|
|
|
|
|
$
|
520
|
|
Current income tax rate
|
|
|
|
|
4.0
|
%
|
|
|
|
|
9.0
|
%
|
|
|
|
|
4.0
|
%
|
|
|
|
|
9.0
|
%
|
Deferred income tax rate
|
|
|
|
|
26.0
|
%
|
|
|
|
|
31.0
|
%
|
|
|
|
|
26.0
|
%
|
|
|
|
|
31.0
|
%
|
Total income tax rate
|
|
|
|
|
30.0
|
%
|
|
|
|
|
40.0
|
%
|
|
|
|
|
30.0
|
%
|
|
|
|
|
40.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings attributable to noncontrolling interests
|
|
|
|
$
|
5
|
|
|
|
|
$
|
25
|
|
|
|
|
$
|
50
|
|
|
|
|
$
|
100
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CAPITAL EXPENDITURES GUIDANCE
|
|
|
|
Quarter 2
|
|
|
|
Full Year
|
(in millions)
|
|
|
|
Low
|
|
|
|
High
|
|
|
|
Low
|
|
|
|
High
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exploration and development
|
|
|
|
$
|
950
|
|
|
|
$
|
1,050
|
|
|
|
$
|
3,900
|
|
|
|
$
|
4,100
|
Capitalized G&A and interest
|
|
|
|
|
100
|
|
|
|
|
120
|
|
|
|
|
400
|
|
|
|
|
500
|
Midstream (1) |
|
|
|
|
20
|
|
|
|
|
40
|
|
|
|
|
110
|
|
|
|
|
160
|
Corporate and other
|
|
|
|
|
30
|
|
|
|
|
40
|
|
|
|
|
100
|
|
|
|
|
150
|
Devon capital expenditures
|
|
|
|
$
|
1,100
|
|
|
|
$
|
1,250
|
|
|
|
$
|
4,510
|
|
|
|
$
|
4,910
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Excludes capital expenditures related to EnLink.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COMMODITY HEDGES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Oil Commodity Hedges
|
|
|
|
|
Price Swaps
|
|
|
|
Price Collars
|
|
|
|
Call Options Sold
|
Period
|
|
|
|
Volume (Bbls/d)
|
|
|
|
Weighted Average Price ($/Bbl)
|
|
|
|
Volume (Bbls/d)
|
|
|
|
Weighted Average Floor Price ($/Bbl)
|
|
|
|
Weighted Average Ceiling Price ($/Bbl)
|
|
|
|
Volume (Bbls/d)
|
|
|
|
Weighted Average Price ($/Bbl)
|
Q2-Q4 2015
|
|
|
|
106,442
|
|
|
|
$
|
|
91.07
|
|
|
|
31,500
|
|
|
|
$
|
|
89.67
|
|
|
|
$
|
|
97.84
|
|
|
|
28,000
|
|
|
|
$
|
|
116.43
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Oil Basis Swaps
|
Period
|
|
|
|
Index
|
|
|
|
Volume (Bbls/d)
|
|
|
|
Weighted Average Differential to WTI ($/Bbl)
|
Q2-Q4 2015
|
|
|
|
Western Canadian Select
|
|
|
|
36,320
|
|
|
|
$(16.35)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Natural Gas Commodity Hedges
|
|
|
|
|
Price Swaps
|
|
|
|
Price Collars
|
|
|
|
Call Options Sold
|
Period
|
|
|
|
Volume (MMBtu/d)
|
|
|
|
Weighted Average Price ($/MMBtu)
|
|
|
|
Volume (MMBtu/d)
|
|
|
|
Weighted Average Floor Price ($/MMBtu)
|
|
|
|
Weighted Average Ceiling Price ($/MMBtu)
|
|
|
|
Volume (MMBtu/d)
|
|
|
|
Weighted Average Price ($/MMBtu)
|
Q2-Q4 2015
|
|
|
|
250,000
|
|
|
|
$
|
4.32
|
|
|
|
391,964
|
|
|
|
$
|
3.74
|
|
|
|
$
|
4.04
|
|
|
|
550,000
|
|
|
|
$
|
5.09
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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.
|
|