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.