UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): February 17, 2015

DEVON ENERGY CORPORATION
(Exact Name of Registrant as Specified in its Charter)

 
					
DELAWARE	 	001-32318	 	73-1567067	
(State or Other Jurisdiction of
Incorporation or Organization)	 	(Commission
File Number)	 	(IRS Employer
Identification Number)	

333 W. SHERIDAN AVE., OKLAHOMA CITY, OK	 	73102	
(Address of Principal Executive Offices)	 	(Zip Code)	
Registrant’s telephone number, including area code: (405) 235-3611

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
 
 	¨	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)	
 
 	¨	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)	
 
 	¨	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))	
 
 	¨	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))	

 

Item 2.02	Results of Operations and Financial Condition	
Devon Energy Corporation hereby furnishes the information set forth in its news release dated February 17, 2015 announcing fourth quarter and full-year 2014 financial results, a copy of which is attached as Exhibit 99.1.
 
Item 9.01	Financial Statements and Exhibits	
(d) Exhibits

99.1		Devon Energy Corporation news release dated February 17, 2015.	
 
Page 2 of 3

SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereto duly authorized.

DEVON ENERGY CORPORATION	
		
By:		/s/ Thomas L. Mitchell	
		Thomas L. Mitchell	
		Executive Vice President and	
		Chief Financial Officer	
Date: February 17, 2015
 
Page 3 of 3

EXHIBIT 99.1

		Devon Energy Corporation	
		333 West Sheridan Avenue	
		Oklahoma City, OK 73102-5015	
NEWS RELEASE
Devon Energy Reports Fourth-Quarter and Full-Year 2014 Results; Provides 2015 Capital and Production Outlook
 
 	•	 	Achieved record Q4 oil production exceeding company guidance	
 
 	•	 	Generated U.S. oil production growth of 82 percent in Q4 year over year	
 
 	•	 	Increased proved oil reserves to highest level in company history	
 
 	•	 	Maintained excellent financial strength and liquidity	
 
 	•	 	Reiterated 2015 oil production growth outlook of 20 to 25 percent	
 
 	•	 	Decreased 2015 E&P capital budget by 20 percent	
OKLAHOMA CITY – Feb. 17, 2015 – Devon Energy Corporation (NYSE:DVN) today reported net earnings for the full-year 2014 of $1.6 billion, or $3.93 per common share ($3.91 per diluted share). This compares to a net loss of $20 million in 2013, or $0.06 per common share ($0.06 per diluted share).
Devon generated cash flow from operations of $6.0 billion in 2014, a 10 percent increase compared to 2013. Including $5.1 billion of cash received from the sale of non-core assets, the company’s total cash inflows for the year exceeded $11 billion.
For the fourth quarter of 2014, Devon’s core earnings totaled $343 million, or $0.84 per common share ($0.83 per diluted share). The company reported a net loss of $408 million, or $1.01 per common share ($1.01 per diluted share) in the fourth quarter.
“Devon delivered another exceptional performance in the fourth quarter, rounding out an outstanding year for the company, including a significant repositioning of the portfolio,” said John Richels, president and CEO. “Production from our top-tier asset portfolio exceeded guidance for all products, proved oil reserves reached a record level and our midstream business increased profitability to an all-time high.
“We expect to sustain operational momentum in 2015 with the significant improvements we have seen in our completion designs and a capital program focused on development drilling,” said Richels. “With strong results from our enhanced completions and a focus on core development areas, we expect growth in oil production to be between 20 and 25 percent in 2015, even with a projected reduction of approximately 20 percent in E&P capital spending compared to 2014.”
Repositioned Portfolio Exceeds Production Expectations
Total production from Devon’s retained assets averaged 664,000 oil-equivalent barrels (Boe) per day during the fourth quarter of 2014. This result exceeded the company’s guidance range by 9,000 Boe per day and represents a 20 percent increase compared to the fourth quarter of 2013. This high-margin growth increased liquids production to 57 percent of the company’s retained asset mix in the fourth quarter.
Devon also delivered record oil production of 239,000 barrels per day in the fourth quarter. This result exceeded the top end of the company’s guidance range and represents a 48 percent increase compared to the fourth quarter of 2013. The most significant growth came from the company’s U.S. operations, where oil production increased a substantial 82 percent for the quarter year over year.
The strong growth in U.S. oil production during the quarter was largely attributable to prolific well results from the company’s world-class Eagle Ford assets. Net production in the Eagle Ford averaged 98,000 Boe per day in the fourth quarter, a 100 percent increase compared to Devon’s first month of ownership in March 2014. The company also achieved another quarter of strong production growth in

the Permian Basin. Led by outstanding results from Devon’s Delaware Basin assets, total Permian Basin production increased to 98,000 Boe per day in the fourth quarter, a 14 percent increase compared to the year-ago period.
In Canada, net oil production from the company’s heavy-oil projects increased to a record high of 93,000 barrels per day in the fourth quarter. This strong result exceeded the top end of Devon’s guidance range by 5,000 barrels per day and represents a 15 percent increase in production compared to the fourth quarter of 2013. This growth was driven by the continued ramp-up of the company’s newest heavy-oil facility, Jackfish 3, which exited the year averaging 13,000 barrels per day.
Reserves from Retained Assets Grow; Oil Reserves Climb to Record Levels
Devon’s estimated proved reserves totaled 2.8 billion oil-equivalent barrels on Dec. 31, 2014, a 7 percent increase in reserves compared to the company’s retained asset portfolio in 2013. At year-end, proved oil reserves reached a record 895 million barrels.
The most significant reserve growth came from Devon’s U.S. operations, where oil reserves from retained properties increased 65 percent year over year to 351 million barrels. The substantial growth in U.S. oil reserves is largely attributable to the company’s Eagle Ford acquisition and its Delaware Basin operations. During the year, the company’s U.S. drilling programs added 94 million barrels of light-oil reserves through successful drilling (extensions and discoveries). This represents a replacement rate of approximately 200 percent of the light oil produced during 2014.
Overall, the company’s reserve life index (proved reserves divided by annual production from retained properties) remained at approximately 12 years, and its proved undeveloped reserves accounted for only 25 percent of proved reserves.
Operations Report
For additional details on Devon’s core and emerging assets, please refer to the company’s fourth-quarter 2014 Operations Report at www.devonenergy.com . Highlights from the operations report include:
 
 	•	 	Prolific Q4 results, increasing type curve for Eagle Ford	
 
 	•	 	Improved completion design delivers excellent results in Delaware Basin	
 
 	•	 	Ramp-up exceeds expectations at Jackfish 3	
 
 	•	 	High-rate development wells from Cana-Woodford	
Upstream Revenue Increases 16 Percent; Midstream Profit Rises
Revenue from oil, natural gas and natural gas liquids sales totaled $9.9 billion in 2014, a 16 percent increase compared to 2013. The growth in revenue was attributable to the company’s significant increase in U.S. light-oil production. This high-margin growth increased oil sales to 60 percent of Devon’s total upstream revenues during the year.
In the fourth quarter, upstream revenue was $2.1 billion, a 3 percent decrease compared to the fourth quarter of 2013. Cash settlements related to the company’s oil and natural gas hedges increased revenue by $4.23 per Boe in the fourth quarter of 2014, partially offsetting lower realized oil and natural gas liquids prices. At Dec. 31, 2014, Devon’s attractive commodity hedges had a fair market value of nearly $2.0 billion.
The company’s marketing and midstream business also delivered excellent results in 2014, with operating profits reaching an all-time high of $852 million, a 66 percent increase compared to 2013. The year-over-year increase in operating profit was largely driven by growth from EnLink Midstream.
 
Page 2 of 21

Cash Operating Costs Decline
The company’s successful cost containment efforts resulted in lease operating expenses (LOE), the largest cash cost, of $9.29 per Boe in the fourth quarter. LOE was 5 percent below the low end of Devon’s guidance range and 2 percent lower than the third quarter of 2014. The company’s significant scale in core plays coupled with a consistent focus on efficient operations continues to position Devon as a low-cost producer.
Production and property taxes were $108 million in the quarter, essentially flat compared to the fourth quarter of 2013. Compared to the previous quarter, lower commodity prices drove a decline in production and property taxes of 23 percent.
Net financing costs totaled $167 million in the fourth quarter of 2014, an increase of 50 percent compared to the year-ago quarter. The higher financing costs were due to a $48 million charge attributable to the early redemption of $1.9 billion in senior notes.
General and administrative expenses totaled $252 million in the fourth quarter of 2014. This compares with $157 million in the fourth quarter of 2013. The year-over-year increase resulted from the consolidation of EnLink Midstream and higher employee-related costs.
Depreciation, depletion and amortization expense (DD&A) amounted to $14.89 per Boe in the fourth quarter. For the full-year, DD&A was $13.51 per Boe and compares to a rate of $10.99 in 2013. The increase in DD&A rate was primarily attributable to the company’s Eagle Ford acquisition and EnLink Midstream transaction.
Devon incurred a $1.9 billion non-cash impairment of goodwill in the fourth quarter of 2014. The goodwill was recorded more than a decade ago and was related to an acquisition comprised almost entirely of conventional gas assets in Canada that Devon no longer owns. This non-cash impairment was related to the recent drop in oil prices.
Full-year 2014 income tax expense was $2.4 billion, or 58 percent of pre-tax earnings. This unusually high tax rate resulted principally from the goodwill impairment charge that lowered pre-tax earnings but did not impact the company’s full-year tax obligations. Excluding this impairment charge and other non-recurring items, Devon’s income tax rate was 35 percent of adjusted pre-tax earnings for the full year.
Balance Sheet and Liquidity Remain Strong
Devon’s financial position remains exceptionally strong with investment-grade credit ratings and cash balances of $1.5 billion at the end of the fourth quarter. During the quarter, the company redeemed $1.9 billion in senior notes, completing the debt repayment plan associated with its portfolio transformation. At Dec. 31, the company’s net debt, excluding non-recourse EnLink obligations, totaled $7.8 billion.
2015 Outlook: Production Guidance Unchanged; E&P Capital Reduced 20 Percent
Detailed forward-looking guidance for the first quarter and full year of 2015 is provided later in the release. A notable component of this outlook is Devon’s 2015 E&P capital budget of $4.1 to $4.4 billion. This level of investment implies around a 20 percent decline in E&P spending compared to 2014 and is designed to better balance capital expenditures with expected cash inflows.
Even with reduced E&P capital investment in 2015, the company’s production growth outlook remains unchanged. With significant improvements in completion design and a capital program focused on development drilling, Devon expects to deliver oil production growth of 20 to 25 percent year over year on a retained property basis. This production outlook is driven by balanced oil growth in both the U.S. and Canada.
 
Page 3 of 21

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 general 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 fourth-quarter 2014 conference call will be held at 10 a.m. Central (11 a.m. Eastern) on Wednesday, Feb. 18, 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 are those concerning strategic plans, expectations and objectives for future operations. 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 .
 
Page 4 of 21

About Devon Energy
Devon Energy Corp. (NYSE: DVN) 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 .
Investor Contacts
Howard Thill, 405-552-3693
Scott Coody, 405-552-4735
Shea Snyder, 405-552-4782
Media Contact
John Porretto, 405-228-7506
 
Page 5 of 21

DEVON ENERGY CORPORATION
FINANCIAL AND OPERATIONAL INFORMATION
PRODUCTION NET OF ROYALTIES

 	  	Quarter Ended
December 31,	 	  	Year Ended
December 31,	 	
 	  	2014	 	  	2013	 	  	2014	 	  	2013	 	
Oil / Bitumen (MBbls/d)	  				  				  				  				
United States	  	 	146	 	  	 	80	 	  	 	127	 	  	 	73	 	
Canada	  	 	93	 	  	 	81	 	  	 	82	 	  	 	79	 	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Retained assets		 	239	 		 	161	 		 	209	 		 	152	 	
Divested assets		 	—  	  		 	16	 		 	5	 		 	16	 	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total Oil / Bitumen		 	239	 		 	177	 		 	214	 		 	168	 	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Natural Gas (MMcf/d)																	
United States		 	1,684	 		 	1,639	 		 	1,662	 		 	1,658	 	
Canada		 	23	 		 	28	 		 	23	 		 	28	 	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Retained assets		 	1,707	 		 	1,667	 		 	1,685	 		 	1,686	 	
Divested assets		 	3	 		 	661	 		 	235	 		 	707	 	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total Natural Gas		 	1,710	 		 	2,328	 		 	1,920	 		 	2,393	 	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Natural Gas Liquids (MBbls/d)																	
United States		 	141	 		 	114	 		 	132	 		 	107	 	
Divested assets		 	—  	  		 	18	 		 	7	 		 	19	 	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total Natural Gas Liquids		 	141	 		 	132	 		 	139	 		 	126	 	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Oil Equivalent (Mboe/d)																	
United States		 	567	 		 	467	 		 	536	 		 	456	 	
Canada		 	97	 		 	86	 		 	86	 		 	85	 	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Retained assets		 	664	 		 	553	 		 	622	 		 	541	 	
Divested assets		 	1	 		 	143	 		 	51	 		 	152	 	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total Oil Equivalent		 	665	 		 	696	 		 	673	 		 	693	 	

Page 6 of 21

DEVON ENERGY CORPORATION
FINANCIAL AND OPERATIONAL INFORMATION
 
KEY OPERATING STATISTICS BY REGION

 	  	Quarter Ended December 31, 2014	 	
 	  	Avg. Production
(MBoe/d)	 	  	Gross Wells
Drilled	 	  	Operated Rigs at
December 31, 2014	 	
Permian Basin	  	 	98	 	  	 	80	 	  	 	18	 	
Eagle Ford	  	 	98	 	  	 	78	 	  	 	3	 	
Canadian Heavy Oil	  	 	97	 	  	 	78	 	  	 	11	 	
Barnett Shale	  	 	201	 	  	 	14	 	  	 	—  	  	
Anadarko Basin	  	 	100	 	  	 	30	 	  	 	5	 	
Mississippian-Woodford Trend	  	 	20	 	  	 	53	 	  	 	2	 	
Rockies	  	 	19	 	  	 	9	 	  	 	4	 	
Other Assets	  	 	31	 	  	 	4	 	  	 	—  	  	
	  	 	 	 	  	 	 	 	  	 	 	 	
Retained Assets - Total		 	664	 		 	346	 		 	43	 	
Divested assets		 	1	 		 	—  	  		 	—  	  	
	  	 	 	 	  	 	 	 	  	 	 	 	
Devon - Total		 	665	 		 	346	 		 	43	 	

									
 	  	Year Ended December 31, 2014	 	
 	  	Avg. Production
(MBoe/d)	 	  	Gross Wells
Drilled	 	
Permian Basin	  	 	96	 	  	 	324	  	
Eagle Ford	  	 	65	 	  	 	242	  	
Canadian Heavy Oil	  	 	86	 	  	 	205	  	
Barnett Shale	  	 	208	 	  	 	84	  	
Anadarko Basin	  	 	94	 	  	 	130	  	
Mississippian-Woodford Trend	  	 	20	 	  	 	236	  	
Rockies	  	 	20	 	  	 	40	  	
Other Assets	  	 	33	 	  	 	5	  	
	  	 	 	 	  	 	 	 	
Retained Assets - Total		 	622	 		 	1,266	  	
Divested assets		 	51	 		 	—  	  	
	  	 	 	 	  	 	 	 	
Devon - Total		 	673	 		 	1,266	  	

Page 7 of 21

DEVON ENERGY CORPORATION
FINANCIAL AND OPERATIONAL INFORMATION
 
PRODUCTION TREND

 	  	2013	 	  	2014	 	
 	  	Quarter 4	 	  	Quarter 1	 	  	Quarter 2	 	  	Quarter 3	 	  	Quarter 4	 	
Oil (MBbls/d)	  				  				  				  				  				
Permian Basin	  	 	50	 	  	 	55	 	  	 	55	 	  	 	56	 	  	 	55	 	
Eagle Ford	  	 	—  	  	  	 	11	 	  	 	40	 	  	 	46	 	  	 	60	 	
Canadian Heavy Oil	  	 	81	 	  	 	78	 	  	 	77	 	  	 	80	 	  	 	93	 	
Barnett Shale	  	 	2	 	  	 	2	 	  	 	2	 	  	 	2	 	  	 	2	 	
Anadarko Basin	  	 	9	 	  	 	9	 	  	 	11	 	  	 	10	 	  	 	10	 	
Mississippian-Woodford Trend	  	 	8	 	  	 	10	 	  	 	9	 	  	 	10	 	  	 	9	 	
Rockies	  	 	8	 	  	 	8	 	  	 	8	 	  	 	10	 	  	 	9	 	
Other assets	  	 	3	 	  	 	2	 	  	 	3	 	  	 	2	 	  	 	1	 	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Retained assets		 	161	 		 	175	 		 	205	 		 	216	 		 	239	 	
Divested assets		 	16	 		 	15	 		 	4	 		 	3	 		 	—  	  	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total		 	177	 		 	190	 		 	209	 		 	219	 		 	239	 	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Gas (MMcf/d)																					
Permian Basin		 	116	 		 	121	 		 	134	 		 	136	 		 	137	 	
Eagle Ford		 	—  	  		 	22	 		 	86	 		 	107	 		 	126	 	
Canadian Heavy Oil		 	28	 		 	19	 		 	23	 		 	26	 		 	23	 	
Barnett Shale		 	995	 		 	931	 		 	932	 		 	896	 		 	878	 	
Anadarko Basin		 	294	 		 	281	 		 	309	 		 	323	 		 	329	 	
Mississippian-Woodford Trend		 	19	 		 	28	 		 	28	 		 	32	 		 	31	 	
Rockies		 	75	 		 	65	 		 	67	 		 	66	 		 	58	 	
Other assets		 	140	 		 	140	 		 	135	 		 	130	 		 	125	 	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Retained assets		 	1,667	 		 	1,607	 		 	1,714	 		 	1,716	 		 	1,707	 	
Divested assets		 	661	 		 	585	 		 	217	 		 	138	 		 	3	 	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total		 	2,328	 		 	2,192	 		 	1,931	 		 	1,854	 		 	1,710	 	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
NGL (MBbls/d)																					
Permian Basin		 	16	 		 	16	 		 	18	 		 	19	 		 	20	 	
Eagle Ford		 	—  	  		 	3	 		 	10	 		 	14	 		 	18	 	
Canadian Heavy Oil		 	—  	  		 	—  	  		 	—  	  		 	—  	  		 	—  	  	
Barnett Shale		 	56	 		 	55	 		 	55	 		 	54	 		 	53	 	
Anadarko Basin		 	27	 		 	29	 		 	31	 		 	34	 		 	34	 	
Mississippian-Woodford Trend		 	3	 		 	5	 		 	5	 		 	6	 		 	6	 	
Rockies		 	1	 		 	1	 		 	1	 		 	1	 		 	1	 	
Other assets		 	11	 		 	10	 		 	10	 		 	10	 		 	9	 	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Retained assets		 	114	 		 	119	 		 	130	 		 	138	 		 	141	 	
Divested assets		 	18	 		 	16	 		 	6	 		 	5	 		 	—  	  	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total		 	132	 		 	135	 		 	136	 		 	143	 		 	141	 	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Combined (MBoe/d)																					
Permian Basin		 	86	 		 	91	 		 	95	 		 	98	 		 	98	 	
Eagle Ford		 	—  	  		 	17	 		 	65	 		 	78	 		 	98	 	
Canadian Heavy Oil		 	86	 		 	81	 		 	81	 		 	84	 		 	97	 	
Barnett Shale		 	224	 		 	213	 		 	212	 		 	205	 		 	201	 	
Anadarko Basin		 	85	 		 	85	 		 	93	 		 	98	 		 	100	 	
Mississippian-Woodford Trend		 	14	 		 	19	 		 	18	 		 	21	 		 	20	 	
Rockies		 	21	 		 	20	 		 	21	 		 	22	 		 	19	 	
Other assets		 	37	 		 	37	 		 	35	 		 	34	 		 	31	 	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Retained assets		 	553	 		 	563	 		 	620	 		 	640	 		 	664	 	
Divested assets		 	143	 		 	128	 		 	47	 		 	31	 		 	1	 	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total		 	696	 		 	691	 		 	667	 		 	671	 		 	665	 	

Page 8 of 21

DEVON ENERGY CORPORATION
FINANCIAL AND OPERATIONAL INFORMATION
 
BENCHMARK PRICES

 	  	Quarter 4	 	 	December YTD	 	
(average prices)	  	FY2014	 	  	FY2013	 	 	FY2014	 	 	FY2013	 	
Natural Gas ($/Mcf) - Henry Hub	  	$	4.04	 	  	$	3.60	 	 	$	4.43	 	 	$	3.65	 	
Oil ($/Bbl) - West Texas Intermediate (Cushing)	  	$	73.05	 	  	$	97.53	 	 	$	93.01	 	 	$	98.02	 	
					
REALIZED PRICES	  				  				 				 				
		
 	  	Quarter Ended December 31, 2014	 	
 	  	Oil /Bitumen
(Per Bbl)	 	  	Gas
(Per Mcf)	 	 	NGL
(Per Bbl)	 	 	Total
(Per Boe)	 	
United States	  	$	68.19	 	  	$	3.53	 	 	$	17.79	 	 	$	32.45	 	
Canada (1)	  	$	45.71	 	  	$	0.87	 	 	$	54.32	 	 	$	44.01	 	
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	
Realized price without hedges		$	59.46	 		$	3.49	 		$	17.75	 		$	34.14	 	
Cash settlements		$	10.34	 		$	0.20	 		$	0.04	 		$	4.23	 	
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	
Realized price, including cash settlements		$	69.80	 		$	3.69	 		$	17.79	 		$	38.37	 	

 	  	Quarter Ended December 31, 2013	 	
 	  	Oil /Bitumen
(Per Bbl)	 	  	Gas
(Per Mcf)	 	 	NGL
(Per Bbl)	 	 	Total
(Per Boe)	 	
United States	  	$	96.04	 	  	$	3.01	 	 	$	27.51	 	 	$	32.96	 	
Canada (1)	  	$	48.50	 	  	$	3.07	 	 	$	45.00	 	 	$	35.74	 	
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	
Realized price without hedges		$	71.45	 		$	3.02	 		$	28.73	 		$	33.65	 	
Cash settlements		$	3.33	 		$	0.23	 		$	(0.19	) 		$	1.59	 	
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	
Realized price, including cash settlements		$	74.78	 		$	3.25	 		$	28.54	 		$	35.24	 	

 	  	Year Ended December 31, 2014	 	
 	  	Oil
(Per Bbl)	 	  	Gas
(Per Mcf)	 	 	NGL
(Per Bbl)	 	 	Total
(Per Boe)	 	
United States	  	$	85.64	 	  	$	3.92	 	 	$	24.46	 	 	$	37.96	 	
Canada (1)	  	$	60.05	 	  	$	3.64	 	 	$	50.52	 	 	$	53.11	 	
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	
Realized price without hedges		$	75.55	 		$	3.90	 		$	24.89	 		$	40.33	 	
Cash settlements		$	1.16	 		$	(0.05	) 		$	0.02	 		$	0.22	 	
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	
Realized price, including cash settlements		$	76.71	 		$	3.85	 		$	24.91	 		$	40.55	 	

 	  	Year Ended December 31, 2013	 	
 	  	Oil
(Per Bbl)	 	  	Gas
(Per Mcf)	 	 	NGL
(Per Bbl)	 	 	Total
(Per Boe)	 	
United States	  	$	94.52	 	  	$	3.10	 	 	$	25.75	 	 	$	31.59	 	
Canada (1)	  	$	57.18	 	  	$	3.05	 	 	$	46.17	 	 	$	39.91	 	
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	
Realized price without hedges		$	74.41	 		$	3.09	 		$	27.33	 		$	33.70	 	
Cash settlements		$	0.90	 		$	0.16	 		$	0.01	 		$	0.77	 	
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	
Realized price, including cash settlements		$	75.31	 		$	3.25	 		$	27.34	 		$	34.47	 	

(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.	
 
Page 9 of 21

DEVON ENERGY CORPORATION
FINANCIAL AND OPERATIONAL INFORMATION
 
CONSOLIDATED STATEMENTS OF OPERATIONS

 	  	Quarter Ended
December 31,	 	 	Year Ended
December 31,	 	
(in millions, except per share amounts)	  	2014	 	 	2013	 	 	2014	 	 	2013	 	
Oil, gas and NGL sales	  	$	2,086	 	 	$	2,155	 	 	$	9,910	 	 	$	8,522	 	
Oil, gas and NGL derivatives	  	 	1,960	 	 	 	(96	) 	 	 	1,989	 	 	 	(191	) 	
Marketing and midstream revenues	  	 	1,949	 	 	 	565	 	 	 	7,667	 	 	 	2,066	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total operating revenues		 	5,995	 		 	2,624	 		 	19,566	 		 	10,397	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Lease operating expenses		 	568	 		 	584	 		 	2,332	 		 	2,268	 	
Marketing and midstream operating expenses		 	1,723	 		 	425	 		 	6,815	 		 	1,553	 	
General and administrative expenses		 	252	 		 	157	 		 	847	 		 	617	 	
Production and property taxes		 	108	 		 	108	 		 	535	 		 	461	 	
Depreciation, depletion and amortization		 	910	 		 	711	 		 	3,319	 		 	2,780	 	
Asset impairments		 	1,953	 		 	16	 		 	1,953	 		 	1,976	 	
Restructuring costs		 	2	 		 	4	 		 	46	 		 	54	 	
Gains and losses on asset sales		 	—  	  		 	(2	) 		 	(1,072	) 		 	9	 	
Other operating items		 	19	 		 	30	 		 	93	 		 	112	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total operating expenses		 	5,535	 		 	2,033	 		 	14,868	 		 	9,830	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Operating income		 	460	 		 	591	 		 	4,698	 		 	567	 	
Net financing costs		 	167	 		 	111	 		 	526	 		 	417	 	
Other nonoperating items		 	2	 		 	5	 		 	113	 		 	1	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Earnings from continuing operations before income taxes		 	291	 		 	475	 		 	4,059	 		 	149	 	
Income tax expense		 	670	 		 	268	 		 	2,368	 		 	169	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net earnings (loss)		 	(379	) 		 	207	 		 	1,691	 		 	(20	) 	
Net earnings attributable to noncontrolling interests		 	29	 		 	—  	  		 	84	 		 	—  	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net earnings (loss) attributable to Devon		$	(408	) 		$	207	 		$	1,607	 		$	(20	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net earnings (loss) per share attributable to Devon:																	
Basic earnings (loss) from discontinued operations per share		$	(1.01	) 		$	0.51	 		$	3.93	 		$	(0.06	) 	
Diluted earnings (loss) from continuing operations per share		$	(1.01	) 		$	0.51	 		$	3.91	 		$	(0.06	) 	
Weighted average common shares outstanding:																	
Basic		 	409	 		 	406	 		 	409	 		 	406	 	
Diluted		 	409	 		 	407	 		 	411	 		 	406	 	
 
Page 10 of 21

DEVON ENERGY CORPORATION
FINANCIAL AND OPERATIONAL INFORMATION
 
CONSOLIDATED STATEMENTS OF OPERATIONS

 	  	Quarter Ended December 31, 2014	 	
(in millions)	  	Devon U.S. &
Canada	 	 	EnLink	 	 	Eliminations	 	 	Total	 	
Oil, gas and NGL sales	  	$	2,086	 	 	$	—  	  	 	$	—  	  	 	$	2,086	 	
Oil, gas and NGL derivatives	  	 	1,960	 	 	 	—  	  	 	 	—  	  	 	 	1,960	 	
Marketing and midstream revenues	  	 	1,141	 	 	 	995	 	 	 	(187	) 	 	 	1,949	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total operating revenues		 	5,187	 		 	995	 		 	(187	) 		 	5,995	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Lease operating expenses		 	568	 		 	—  	  		 	—  	  		 	568	 	
Marketing and midstream expenses		 	1,139	 		 	771	 		 	(187	) 		 	1,723	 	
General and administrative expenses		 	222	 		 	30	 		 	—  	  		 	252	 	
Production and property taxes		 	100	 		 	8	 		 	—  	  		 	108	 	
Depreciation, depletion and amortization		 	826	 		 	84	 		 	—  	  		 	910	 	
Asset impairments		 	1,953	 		 	—  	  		 	—  	  		 	1,953	 	
Restructuring costs		 	2	 		 	—  	  		 	—  	  		 	2	 	
Other operating items		 	19	 		 	—  	  		 	—  	  		 	19	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total operating expenses		 	4,829	 		 	893	 		 	(187	) 		 	5,535	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Operating income		 	358	 		 	102	 		 	—  	  		 	460	 	
Net financing costs		 	147	 		 	20	 		 	—  	  		 	167	 	
Other nonoperating items		 	9	 		 	(7	) 		 	—  	  		 	2	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Earnings before income taxes		 	202	 		 	89	 		 	—  	  		 	291	 	
Income tax expense		 	654	 		 	16	 		 	—  	  		 	670	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net earnings (loss)		 	(452	) 		 	73	 		 	—  	  		 	(379	) 	
Net earnings attributable to noncontrolling interests		 	—  	  		 	29	 		 	—  	  		 	29	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net earnings (loss) attributable to Devon		$	(452	) 		$	44	 		$	—  	  		$	(408	) 	

Page 11 of 21

DEVON ENERGY CORPORATION
FINANCIAL AND OPERATIONAL INFORMATION
 
CONSOLIDATED STATEMENTS OF CASH FLOWS

 	  	Quarter Ended
December 31,	 	 	Year Ended
December 31,	 	
(in millions)	  	2014	 	 	2013	 	 	2014	 	 	2013	 	
Cash flows from operating activities:	  				 				 				 				
Net earnings (loss)	  	$	(379	) 	 	$	207	 	 	$	1,691	 	 	$	(20	) 	
Adjustments to reconcile earnings (loss) from continuing operations to net cash from operating activities:	  				 				 				 				
Depreciation, depletion and amortization	  	 	910	 	 	 	711	 	 	 	3,319	 	 	 	2,780	 	
Asset impairments	  	 	1,953	 	 	 	16	 	 	 	1,953	 	 	 	1,976	 	
Gains and losses on asset sales	  	 	—  	  	 	 	(2	) 	 	 	(1,072	) 	 	 	9	 	
Deferred income tax expense	  	 	1,091	 	 	 	278	 	 	 	1,891	 	 	 	97	 	
Derivatives and other financial instruments	  	 	(2,027	) 	 	 	70	 	 	 	(2,070	) 	 	 	135	 	
Cash settlements on derivatives and financial instruments	  	 	305	 	 	 	130	 	 	 	104	 	 	 	277	 	
Other noncash charges	  	 	100	 	 	 	114	 	 	 	457	 	 	 	309	 	
Net change in working capital	  	 	(716	) 	 	 	(194	) 	 	 	50	 	 	 	(298	) 	
Change in long-term other assets	  	 	(306	) 	 	 	38	 	 	 	(421	) 	 	 	10	 	
Change in long-term other liabilities	  	 	32	 	 	 	69	 	 	 	79	 	 	 	161	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net cash from operating activities		 	963	 		 	1,437	 		 	5,981	 		 	5,436	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Cash flows from investing activities:																	
Capital expenditures		 	(1,975	) 		 	(1,539	) 		 	(6,988	) 		 	(6,758	) 	
Acquisitions of property, equipment and businesses		 	(207	) 		 	—  	  		 	(6,462	) 		 	—  	  	
Proceeds from property and equipment divestitures		 	(82	) 		 	103	 		 	5,120	 		 	419	 	
Purchases of short-term investments		 	—  	  		 	—  	  		 	—  	  		 	(1,076	) 	
Redemptions of short-term investments		 	—  	  		 	—  	  		 	—  	  		 	3,419	 	
Redemptions of long-term investments		 	—  	  		 	—  	  		 	57	 		 	—  	  	
Other		 	2	 		 	(86	) 		 	89	 		 	(3	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net cash from investing activities		 	(2,262	) 		 	(1,522	) 		 	(8,184	) 		 	(3,999	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Cash flows from financing activities:																	
Proceeds from borrowings of long-term debt, net of issuance costs		 	1,182	 		 	2,233	 		 	5,340	 		 	2,233	 	
Net short-term debt borrowings (repayments)		 	933	 		 	(295	) 		 	(385	) 		 	(1,872	) 	
Long-term debt repayments		 	(2,924	) 		 	—  	  		 	(7,189	) 		 	—  	  	
Proceeds from stock option exercises		 	1	 		 	2	 		 	93	 		 	3	 	
Proceeds from issuance of subsidiary units		 	338	 		 	—  	  		 	410	 		 	—  	  	
Dividends paid on common stock		 	(99	) 		 	(89	) 		 	(386	) 		 	(348	) 	
Distributions to noncontrolling interests		 	(48	) 		 	—  	  		 	(235	) 		 	—  	  	
Other		 	2	 		 	(1	) 		 	(2	) 		 	4	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net cash from financing activities		 	(615	) 		 	1,850	 		 	(2,354	) 		 	20	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Effect of exchange rate changes on cash		 	(14	) 		 	(19	) 		 	(29	) 		 	(28	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net change in cash and cash equivalents		 	(1,928	) 		 	1,746	 		 	(4,586	) 		 	1,429	 	
Cash and cash equivalents at beginning of period		 	3,408	 		 	4,320	 		 	6,066	 		 	4,637	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Cash and cash equivalents at end of period		$	1,480	 		$	6,066	 		$	1,480	 		$	6,066	 	

Page 12 of 21

DEVON ENERGY CORPORATION
FINANCIAL AND OPERATIONAL INFORMATION
 
CONSOLIDATED BALANCE SHEETS

(in millions)	  	December 31,
2014	 	 	December 31,
2013	 	
Current assets:	  				 				
Cash and cash equivalents	  	$	1,480	 	 	$	6,066	 	
Accounts receivable	  	 	1,959	 	 	 	1,520	 	
Derivatives, at fair value	  	 	1,993	 	 	 	75	 	
Income taxes receivable	  	 	522	 	 	 	89	 	
Other current assets	  	 	544	 	 	 	255	 	
	  	 	 	 	 	 	 	 	
Total current assets		 	6,498	 		 	8,005	 	
	  	 	 	 	 	 	 	 	
Property and equipment, at cost:									
Oil and gas, based on full cost accounting:									
Subject to amortization		 	75,738	 		 	73,995	 	
Not subject to amortization		 	2,752	 		 	2,791	 	
	  	 	 	 	 	 	 	 	
Total oil and gas		 	78,490	 		 	76,786	 	
Midstream and other		 	9,695	 		 	6,195	 	
	  	 	 	 	 	 	 	 	
Total property and equipment, at cost		 	88,185	 		 	82,981	 	
Less accumulated depreciation, depletion and amortization		 	(51,889	) 		 	(54,534	) 	
	  	 	 	 	 	 	 	 	
Property and equipment, net		 	36,296	 		 	28,447	 	
	  	 	 	 	 	 	 	 	
Goodwill		 	6,303	 		 	5,858	 	
Other long-term assets		 	1,540	 		 	567	 	
	  	 	 	 	 	 	 	 	
Total assets		$	50,637	 		$	42,877	 	
	  	 	 	 	 	 	 	 	
Current liabilities:									
Accounts payable		 	1,400	 		 	1,229	 	
Revenues and royalties payable		 	1,193	 		 	786	 	
Short-term debt		 	1,432	 		 	4,066	 	
Deferred income taxes		 	730	 		 	19	 	
Other current liabilities		 	1,180	 		 	555	 	
	  	 	 	 	 	 	 	 	
Total current liabilities		 	5,935	 		 	6,655	 	
	  	 	 	 	 	 	 	 	
Long-term debt		 	9,830	 		 	7,956	 	
Asset retirement obligations		 	1,339	 		 	2,140	 	
Other long-term liabilities		 	948	 		 	834	 	
Deferred income taxes		 	6,244	 		 	4,793	 	
Stockholders’ equity:									
Common Stock		 	41	 		 	41	 	
Additional paid-in capital		 	4,088	 		 	3,780	 	
Retained earnings		 	16,631	 		 	15,410	 	
Accumulated other comprehensive earnings		 	779	 		 	1,268	 	
	  	 	 	 	 	 	 	 	
Total stockholders’ equity attributable to Devon		 	21,539	 		 	20,499	 	
Noncontrolling interests		 	4,802	 		 	—  	  	
	  	 	 	 	 	 	 	 	
Total stockholders’ equity		 	26,341	 		 	20,499	 	
	  	 	 	 	 	 	 	 	
Total liabilities and stockholders’ equity		$	50,637	 		$	42,877	 	
	  	 	 	 	 	 	 	 	
Common shares outstanding		 	409	  		 	406	  	
 
Page 13 of 21

DEVON ENERGY CORPORATION
FINANCIAL AND OPERATIONAL INFORMATION
 
CAPITAL EXPENDITURES

 	  	Quarter Ended December 31, 2014	 	
(in millions)	  	U.S.	 	  	Canada	 	  	Total	 	
Exploration	  	$	105	 	  	$	6	 	  	$	111	 	
Development	  	 	1,243	 	  	 	224	 	  	 	1,467	 	
	  	 	 	 	  	 	 	 	  	 	 	 	
Exploration and development capital		$	1,348	 		$	230	 		$	1,578	 	
Capitalized G&A										 	108	 	
Capitalized interest										 	13	 	
Acquisitions										 	10	 	
Devon midstream capital										 	37	 	
Other capital										 	40	 	
	  				  				  	 	 	 	
Total (1)										$	1,786	 	

(1)	Excludes $479 million attributable to EnLink.	

 	  	Year Ended December 31, 2014	 	
 	  	U.S.	 	  	Canada	 	  	Total	 	
Exploration	  	$	292	 	  	$	40	 	  	$	332	 	
Development	  	 	4,115	 	  	 	908	 	  	 	5,023	 	
	  	 	 	 	  	 	 	 	  	 	 	 	
Exploration and development capital		$	4,407	 		$	948	 		$	5,355	 	
Capitalized G&A										 	376	 	
Capitalized interest										 	45	 	
Eagle Ford, Cana and other acquisitions										 	6,376	 	
Devon midstream capital										 	312	 	
Other capital										 	125	 	
	  				  				  	 	 	 	
Total (1)										$	12,589	 	

(1)	Excludes $970 million attributable to EnLink.	
 
Page 14 of 21

DEVON ENERGY CORPORATION
FINANCIAL AND OPERATIONAL INFORMATION
 
COSTS INCURRED

 	  	Total	 	
 	  	Year Ended December 31,	 	
(in millions)	  	2014	 	  	2013	 	
Property acquisition costs:	  				  				
Proved properties	  	$	5,210	 	  	$	22	 	
Unproved properties	  	 	1,177	 	  	 	216	 	
Exploration costs	  	 	322	 	  	 	595	 	
Development costs	  	 	5,463	 	  	 	5,089	 	
	  	 	 	 	  	 	 	 	
Costs Incurred		$	12,172	 		$	5,922	 	

 	  	United States	 	
 	  	Year Ended December 31,	 	
 	  	2014	 	  	2013	 	
Property acquisition costs:	  				  				
Proved properties	  	$	5,210	 	  	$	19	 	
Unproved properties	  	 	1,176	 	  	 	213	 	
Exploration costs	  	 	270	 	  	 	443	 	
Development costs	  	 	4,400	 	  	 	3,838	 	
	  	 	 	 	  	 	 	 	
Costs Incurred		$	11,056	 		$	4,513	 	

 	  	Canada	 	
 	  	Year Ended December 31,	 	
 	  	2014	 	  	2013	 	
Property acquisition costs:	  				  				
Proved properties	  	$	—  	  	  	$	3	 	
Unproved properties	  	 	1	 	  	 	3	 	
Exploration costs	  	 	52	 	  	 	152	 	
Development costs	  	 	1,063	 	  	 	1,251	 	
	  	 	 	 	  	 	 	 	
Costs Incurred		$	1,116	 		$	1,409	 	

Page 15 of 21

DEVON ENERGY CORPORATION
FINANCIAL AND OPERATIONAL INFORMATION
 
RESERVES RECONCILIATION

 	  	Total	 	
 	  	Oil / Bitumen
(MMBbls)	 	 	Gas
(Bcf)	 	 	NGL
(MMBbls)	 	 	Total
(MMBoe)	 	
As of December 31, 2013:	  				 				 				 				
Proved developed	  	 	361	 	 	 	8,459	 	 	 	491	 	 	 	2,262	 	
Proved undeveloped	  	 	476	 	 	 	849	 	 	 	84	 	 	 	701	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total Proved		 	837	 		 	9,308	 		 	575	 		 	2,963	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Revisions due to prices		 	(38	) 		 	236	 		 	8	 		 	9	 	
Revisions other than price		 	(19	) 		 	(295	) 		 	2	 		 	(65	) 	
Extensions and discoveries		 	107	 		 	343	 		 	47	 		 	211	 	
Purchase of reserves		 	132	 		 	457	 		 	57	 		 	265	 	
Production		 	(78	) 		 	(701	) 		 	(51	) 		 	(246	) 	
Sale of reserves		 	(46	) 		 	(1,661	) 		 	(60	) 		 	(383	) 	
As of December 31, 2014:																	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Proved developed		 	415	 		 	6,984	 		 	486	 		 	2,065	 	
Proved undeveloped		 	480	 		 	703	 		 	92	 		 	689	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total Proved		 	895	 		 	7,687	 		 	578	 		 	2,754	 	

 	  	United States	 	
 	  	Oil / Bitumen
(MMBbls)	 	 	Gas
(Bcf)	 	 	NGL
(MMBbls)	 	 	Total
(MMBoe)	 	
As of December 31, 2013:	  				 				 				 				
Proved developed	  	 	194	 	 	 	7,707	 	 	 	468	 	 	 	1,947	 	
Proved undeveloped	  	 	35	 	 	 	843	 	 	 	84	 	 	 	258	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total Proved		 	229	 		 	8,550	 		 	552	 		 	2,205	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Revisions due to prices		 	(1	) 		 	191	 		 	7	 		 	38	 	
Revisions other than price		 	(38	) 		 	(299	) 		 	2	 		 	(86	) 	
Extensions and discoveries		 	94	 		 	335	 		 	47	 		 	197	 	
Purchase of reserves		 	132	 		 	457	 		 	57	 		 	265	 	
Production		 	(48	) 		 	(660	) 		 	(50	) 		 	(207	) 	
Sale of reserves		 	(17	) 		 	(923	) 		 	(37	) 		 	(207	) 	
As of December 31, 2014:																	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Proved developed		 	255	 		 	6,948	 		 	486	 		 	1,900	 	
Proved undeveloped		 	96	 		 	703	 		 	92	 		 	305	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total Proved		 	351	 		 	7,651	 		 	578	 		 	2,205	 	

 	  	Canada	 	
 	  	Oil / Bitumen
(MMBbls)	 	 	Gas
(Bcf)	 	 	NGL
(MMBbls)	 	 	Total
(MMBoe)	 	
As of December 31, 2013:	  				 				 				 				
Proved developed	  	 	167	 	 	 	752	 	 	 	23	 	 	 	315	 	
Proved undeveloped	  	 	441	 	 	 	6	 	 	 	—  	  	 	 	443	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total Proved		 	608	 		 	758	 		 	23	 		 	758	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Revisions due to prices		 	(37	) 		 	45	 		 	1	 		 	(29	) 	
Revisions other than price		 	19	 		 	4	 		 	—  	  		 	21	 	
Extensions and discoveries		 	13	 		 	8	 		 	—  	  		 	14	 	
Purchase of reserves		 	—  	  		 	—  	  		 	—  	  		 	—  	  	
Production		 	(30	) 		 	(41	) 		 	(1	) 		 	(39	) 	
Sale of reserves		 	(29	) 		 	(738	) 		 	(23	) 		 	(176	) 	
As of December 31, 2014:																	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Proved developed		 	160	 		 	36	 		 	—  	  		 	165	 	
Proved undeveloped		 	384	 		 	—  	  		 	—  	  		 	384	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total Proved		 	544	 		 	36	 		 	—  	  		 	549	 	

Page 16 of 21

DEVON ENERGY CORPORATION
FINANCIAL AND OPERATIONAL INFORMATION
 
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 analyst in their published estimates of the company’s financial results. 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 tables summarize the effects of these items on fourth-quarter and total-year 2014 earnings.

 	  	Quarter Ended December 31, 2014	 	
 	  	Before-Tax	 	  	After-Tax	 	
Net loss attributable to Devon (GAAP)	  				  	$	(408	) 	
Asset impairments	  	 	1,953	 	  	 	1,948	 	
Fair value changes in financial instruments and foreign currency	  	 	(1,721	) 	  	 	(1,086	) 	
Gain on asset sales and related repatriation	  	 	—  	  	  	 	(143	) 	
Early retirement of debt	  	 	48	 	  	 	31	 	
Restructuring costs	  	 	2	 	  	 	1	 	
	  				  	 	 	 	
Core earnings attributable to Devon (Non-GAAP)						$	343	 	
	  				  	 	 	 	
Diluted share count						 	411	 	
Core diluted earnings per share attributable to Devon (Non-GAAP)						$	0.83	 	

									
 	  	Year Ended December 31, 2014	 	
 	  	Before-Tax	 	  	After-Tax	 	
Net earnings attributable to Devon (GAAP)	  				  	$	1,607	 	
Asset impairments	  	 	1,953	 	  	 	1,948	 	
Fair value changes in financial instruments and foreign currency	  	 	(1,945	) 	  	 	(1,231	) 	
Gain on asset sales and related repatriation	  	 	(955	) 	  	 	(421	) 	
Investment in EnLink deferred income tax	  	 	—  	  	  	 	48	 	
Restructuring costs	  	 	46	 	  	 	35	 	
Early retirement of debt	  	 	48	 	  	 	31	 	
	  				  	 	 	 	
Core earnings attributable to Devon (Non-GAAP)						$	2,017	 	
	  				  	 	 	 	
Diluted share count						 	411	 	
Core diluted earnings per share attributable to Devon (Non-GAAP)						$	4.91	 	

Page 17 of 21

DEVON ENERGY CORPORATION
FINANCIAL AND OPERATIONAL INFORMATION
 
NET DEBT
(in millions)
Devon defines net debt as debt less cash and cash equivalents as presented in the following table. Devon believes that netting these sources of cash against debt provides a clearer picture of the future demands on cash to repay debt.

 	  	December 31,	 	
 	  	2014	 	  	2013	 	
Total debt (GAAP)	  	$	11,262	 	  	$	12,022	 	
Adjustments:	  				  				
Cash and cash equivalents	  	 	1,480	 	  	 	6,066	 	
	  	 	 	 	  	 	 	 	
Net debt (Non-GAAP)		$	9,782	 		$	5,956	 	

Page 18 of 21

DEVON ENERGY CORPORATION
FORWARD LOOKING GUIDANCE
 
PRODUCTION GUIDANCE

 	  	Quarter 1	 	  	Full Year	 	
 	  	Low	 	  	High	 	  	Low	 	  	High	 	
Oil and bitumen (MBbls/d)	  				  				  				  				
United States	  	 	150	 	  	 	155	 	  	 	150	 	  	 	155	 	
Canada	  	 	100	 	  	 	105	 	  	 	100	 	  	 	105	 	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total		 	250	 		 	260	 		 	250	 		 	260	 	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Natural 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	 	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Natural gas liquids (MBbls/d)																	
United States		 	130	 		 	135	 		 	126	 		 	132	 	
Total Boe (MBoe/d)																	
United States		 	547	 		 	565	 		 	534	 		 	554	 	
Canada		 	103	 		 	108	 		 	103	 		 	108	 	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total		 	650	 		 	673	 		 	637	 		 	662	 	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
PRICE REALIZATIONS GUIDANCE

 	  	Quarter 1	 	 	Full Year	 	
 	  	Low	 	 	High	 	 	Low	 	 	High	 	
Oil and bitumen - % of WTI	  				 				 				 				
United States	  	 	83	% 	 	 	93	% 	 	 	85	% 	 	 	95	% 	
Canada	  	 	46	% 	 	 	56	% 	 	 	55	% 	 	 	65	% 	
Natural gas - % of Henry Hub	  	 	83	% 	 	 	93	% 	 	 	83	% 	 	 	93	% 	
NGL - realized price	  	$	9	 	 	$	14	 	 	$	8	 	 	$	18	 	
 
Page 19 of 21

DEVON ENERGY CORPORATION
FORWARD LOOKING GUIDANCE
 
OTHER GUIDANCE ITEMS

 	  	Quarter 1	 	 	Full Year	 	
($ millions, except Boe)	  	Low	 	 	High	 	 	Low	 	 	High	 	
Marketing & midstream operating profit	  	$	180	 	 	$	210	 	 	$	860	 	 	$	920	 	
Lease operating expenses per Boe	  	$	9.60	 	 	$	10.20	 	 	$	9.70	 	 	$	10.30	 	
General & administrative expenses per Boe	  	$	4.00	 	 	$	4.30	 	 	$	3.75	 	 	$	4.25	 	
Production and property taxes as % of upstream sales	  	 	7.1	% 	 	 	8.1	% 	 	 	6.7	% 	 	 	7.7	% 	
Depreciation, depletion and amortization per Boe	  	$	14.75	 	 	$	15.75	 	 	$	15.25	 	 	$	16.25	 	
Other operating items	  	$	20	  	 	$	25	  	 	$	80	  	 	$	100	  	
Net financing costs	  	$	110	 	 	$	130	 	 	$	440	 	 	$	500	 	
Current income tax rate	  	 	5.0	% 	 	 	10.0	% 	 	 	5.0	% 	 	 	10.0	% 	
Deferred income tax rate	  	 	25.0	% 	 	 	30.0	% 	 	 	25.0	% 	 	 	30.0	% 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total income tax rate		 	30.0	% 		 	40.0	% 		 	30.0	% 		 	40.0	% 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net earnings attributable to noncontrolling interests		$	—  	  		$	20	 		$	50	 		$	100	 	
CAPITAL EXPENDITURES GUIDANCE

 	  	Quarter 1	 	  	Full Year	 	
(in millions)	  	Low	 	  	High	 	  	Low	 	  	High	 	
Exploration and development	  	$	1,300	 	  	$	1,400	 	  	$	4,100	 	  	$	4,400	 	
Capitalized G&A and interest	  	 	100	 	  	 	120	 	  	 	400	 	  	 	500	 	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total oil and gas		 	1,400	 		 	1,520	 		 	4,500	 		 	4,900	 	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Midstream (1)		 	50	 		 	70	 		 	110	 		 	160	 	
Corporate and other		 	30	 		 	40	 		 	100	 		 	150	 	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Devon capital expenditures		$	1,480	 		$	1,630	 		$	4,710	 		$	5,210	 	

(1)	Excludes capital expenditures related to EnLink.	
 
Page 20 of 21

DEVON ENERGY CORPORATION
FORWARD LOOKING GUIDANCE
 
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)	 	
Q1-Q4 2015	  	 	107,203	  	  	$	91.07	  	  	 	31,500	  	  	$	89.67	  	  	$	97.84	  	  	 	28,000	  	  	$	116.43	  	
Q1-Q4 2016	  	 	—  	  	  	$	—  	  	  	 	—  	  	  	$	—  	  	  	$	—  	  	  	 	18,500	  	  	$	103.11	  	

 	  	Oil Basis Swaps	 	
Period	  	Index	 	  	Volume (Bbls/d)	 	  	Weighted Average Differential to
WTI ($/Bbl)	 	
Q1-Q4 2015	  	 	Western Canadian Select	  	  	 	31,682	  	  	$	(17.42	) 	

 	  	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)	 	
Q1-Q4 2015	  	 	250,000	  	  	$	4.32	  	  	 	328,452	  	  	$	4.05	  	  	$	4.36	  	  	 	550,000	  	  	$	5.09	  	
Q1-Q4 2016	  	 	—  	  	  	$	—  	  	  	 	—  	  	  	$	—  	  	  	$	—  	  	  	 	400,000	  	  	$	5.00	  	
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.
 
Page 21 of 21