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

Form 11-K

 
þ 	ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934	
For the fiscal year ended December 31, 2010
or
 
¨ 	TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934	
Commission File Number 001-32318

 
A.	Full title of the plan and the address of the plan, if different from that of the issuer named below:	
Devon Energy Corporation Incentive Savings Plan

 
B.	Name of the issuer of the securities held pursuant to the plan and the address of its principal executive office:	
Devon Energy Corporation
20 North Broadway
Oklahoma City, Ok 73102-8260

 

Table of Contents
 DEVON ENERGY CORPORATION INCENTIVE SAVINGS PLAN
FORM 11-K
TABLE OF CONTENTS

Report of Independent Registered Public Accounting Firm	  	 	3	  	
		
Financial Statements	  				
Statements of Net Assets Available for Benefits at December 31, 2010 and 2009	  	 	4	  	
Statement of Changes in Net Assets Available for Benefits for the Year Ended December 31, 2010	  	 	5	  	
Notes to Financial Statements	  	 	6	  	
		
Supplemental Schedule	  				
Schedule H, Line 4i – Schedule of Assets (Held at End of Year) at December 31, 2010	  	 	15	  	
		
Signatures	  	 	20	  	
 
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 Report of Independent Registered Public Accounting Firm
Plan Administrator
Devon Energy Corporation Incentive Savings Plan
We have audited the accompanying statements of net assets available for benefits of Devon Energy Corporation Incentive Savings Plan as of December 31, 2010 and 2009, and the related statement of changes in net assets available for benefits for the year ended December 31, 2010. These financial statements are the responsibility of the Plan’s management. Our responsibility is to express an opinion on these financial statements based on our audits.
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. The Plan is not required to have, nor were we engaged to perform an audit of its internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Plan’s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in all material respects, the net assets available for benefits of Devon Energy Corporation Incentive Savings Plan as of December 31, 2010 and 2009, and the changes in net assets available for benefits for the year ended December 31, 2010, in conformity with accounting principles generally accepted in the United States of America.
Our audits were conducted for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental schedule of assets (held at end of year) as of December 31, 2010 is presented for the purpose of additional analysis and is not a required part of the basic financial statements but is supplemental information required by the Department of Labor’s Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974. The supplemental schedule has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole.
/s/ GRANT THORNTON LLP
Oklahoma City, Oklahoma
January 26, 2012
 
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 DEVON ENERGY CORPORATION INCENTIVE SAVINGS PLAN
STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS
DECEMBER 31, 2010 AND 2009

 	  	2010	 	  	2009	 	
ASSETS	  				  				
Investments, at fair value	  	$	613,531,972	  	  	$	568,007,748	  	
Accrued interest and dividends receivable	  	 	861,801	  	  	 	1,733,196	  	
Employer contributions receivable	  	 	14,984,484	  	  	 	15,579,759	  	
Notes receivable from participants	  	 	10,000,959	  	  	 	10,973,491	  	
	  	 	 	 	  	 	 	 	
Total assets	  	 	639,379,216	  	  	 	596,294,194	  	
	  	 	 	 	  	 	 	 	
LIABILITIES	  				  				
Other liabilities	  	 	2,826,276	  	  	 	584,964	  	
	  	 	 	 	  	 	 	 	
Total liabilities	  	 	2,826,276	  	  	 	584,964	  	
	  	 	 	 	  	 	 	 	
Net assets reflecting all investments at fair value	  	 	636,552,940	  	  	 	595,709,230	  	
			
Adjustment from fair value to contract value for fully benefit-responsive investment contracts held by a collective trust	  	 	543,173	  	  	 	1,427,579	  	
	  	 	 	 	  	 	 	 	
NET ASSETS AVAILABLE FOR BENEFITS	  	$	637,096,113	  	  	$	597,136,809	  	

 
 
See accompanying notes to financial statements
 
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 DEVON ENERGY CORPORATION INCENTIVE SAVINGS PLAN
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
YEAR ENDED DECEMBER 31, 2010

Additions:	  				
Investment income:	  				
Net appreciation in fair value of investments	  	$	45,307,731	  	
Dividends	  	 	10,096,886	  	
Interest	  	 	170,855	  	
	  	 	 	 	
Net investment income	  	 	55,575,472	  	
		
Interest income on notes receivable from participants	  	 	580,228	  	
		
Contributions:	  				
Participant, including rollovers	  	 	31,202,309	  	
Employer	  	 	31,278,296	  	
	  	 	 	 	
Total contributions	  	 	62,480,605	  	
	  	 	 	 	
Total additions	  	 	118,636,305	  	
	  	 	 	 	
Deductions:	  				
Distributions to participants	  	 	77,247,131	  	
Administrative expenses	  	 	1,429,870	  	
	  	 	 	 	
Total deductions	  	 	78,677,001	  	
	  	 	 	 	
Net increase in net assets available for benefits	  	 	39,959,304	  	
		
Net assets available for benefits:	  				
Beginning of year	  	 	597,136,809	  	
	  	 	 	 	
End of year	  	$	637,096,113	  	

 
See accompanying notes to financial statements
 
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 DEVON ENERGY CORPORATION INCENTIVE SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
NOTE A - DESCRIPTION OF PLAN
The following description of the Plan is provided for general information purposes only. Participants should refer to the plan agreement and respective amendments for a more complete description of the Plan’s provisions.
 
 	1.	General	
The Plan is a multiple employer defined contribution plan covering substantially all United States employees of each of Devon Energy Corporation (Devon) and Thunder Creek Gas Services, LLC and is subject to the provisions of the Employee Retirement Income Security Act of 1974, as amended (ERISA). Employees are eligible to participate in the Plan as soon as administratively possible following the completion of one hour of service. There is no minimum age requirement for the employees to be eligible.
Fidelity Management Trust Company (the Trustee) is the Trustee of the Plan.
The plan administrator is a committee (Benefits Committee) of employees of Devon appointed by, and serving at the direction of Devon. The Benefits Committee has the sole responsibility for the administration of the Plan, except with respect to duties related to the selection and monitoring of investment options in the Plan. The selection and monitoring of investment options, along with related functions, is the responsibility of a separate committee (Investments Committee) of employees that is also appointed by, and serving at the direction of Devon. Devon’s Board of Directors, or a committee thereof, has the sole responsibility for appointing and removing the Trustee of the Plan. Under the terms of an agreement between the Trustee and the Plan, the Trustee administers the trust for the Plan, including receiving, investing and holding plan assets and paying benefits to participants in accordance with instructions from the plan administrator.
 
 	2.	Contributions	
Participants elect to contribute from 1% to 50% of their compensation, as defined in the Plan, to the Plan subject to limitations under the Internal Revenue Code (IRC). Amounts contributed are excluded from the participant’s taxable income for the year of contribution. Participants who have attained age 50 before the end of the Plan year are eligible to make catch-up contributions. Participants may also contribute amounts representing distributions from other qualified defined benefit or defined contribution plans (Rollover Contributions). Participant Rollover Contributions were approximately $1,032,000 for the year ended December 31, 2010.
Participants may receive an employer match on their contribution to the Plan in an amount determined annually by Devon. The amount of the matching contribution may vary according to the participant’s years of service and whether the participant is eligible for enhanced contributions. Participants employed subsequent to October 1, 2007 and participants who opted out of a separate defined benefit plan sponsored by Devon are eligible for enhanced contributions. For the year ended December 31, 2010, for all participants with at least five years of service, Devon contributed amounts equal to 100% of each participant’s contributions to the Plan, with the matching contribution being limited to the lesser of 6% of the participant’s compensation, or $14,700. For participants with less than five years of service, Devon’s matching contribution was limited to the lesser of 3% of the participant’s compensation, or $7,350 (except that participants who were employed prior to October 1, 2007 and elected to continue to participate in a separate defined benefit plan were not eligible for enhanced contributions and received the higher matching contribution described in the preceding sentence even if they had less than five years of service).
Participants eligible for enhanced contributions also receive additional, nondiscretionary contributions by Devon calculated as a percentage of their compensation, as defined in the Plan. In 2010, the enhanced contribution percentage ranged from 8% to 16%, depending upon a participant’s years of service.
 
 	3.	Participant Accounts	
Each participant’s account is credited with the participant’s contribution, Devon’s contribution and allocations of earnings or losses on the investments selected by the participant, and charged with an allocation of administrative expenses. Allocations are based on participant earnings on account balances, as defined. The benefit to which a participant is entitled is the benefit that can be provided from the participant’s vested account.
 
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DEVON ENERGY CORPORATION INCENTIVE SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS – CONTINUED
 
 	4.	Investments	
Participants direct their account balances to be invested in a number of investment options. Participants may change their investment options on a daily basis. Investment options of the Plan as of December 31, 2010 consist of the following:
Large Cap Blend - This domestic equity collective investment trust seeks to provide long-term growth of capital. The trust primarily invests in a diversified portfolio of large and medium-sized US companies and seeks to outperform its benchmark, the S&P 500 Index, within defined risk and return parameters. The fund manager uses a systematic investment process that selects stocks by examining a number of investment criteria, including value-related fundamentals, earning quality and management and market sentiment. Blackrock, Inc. serves as the investment manager.
Large Cap Growth - This domestic equity investment portfolio seeks to provide long-term growth of capital. It seeks to achieve its investment objective by normally investing at least 80% of its net assets (plus borrowings made for investment purposes) in common stocks of companies in the Russell 1000 Growth Index with market capitalizations of at least $100 million. Cadence Capital Management LLC serves as the investment manager.
Large Cap Value - This domestic equity investment portfolio seeks undervalued large and mid-sized companies with identifiable catalysts that have the potential to improve profitability and appreciate over time. The research team performs extensive bottom-up research on companies and industries focusing on qualitative factors such as restructuring, management strength, shareholder orientation and the ability to capitalize on improving industry fundamentals. In addition, a broad range of quantitative valuation screens are applied-price-to-cash flow, price-to-book, price-to-earnings and quality of earnings. NWQ Investment Management Company serves as the investment manager.
Small/Mid Cap Value - This domestic equity investment portfolio seeks to provide long-term capital appreciation by investing primarily in selected small and mid-sized U.S. companies believed to be priced below their perceived intrinsic value. Thompson, Siegel & Walmsley LLC serves as the investment manager.
Small/Mid Cap Growth - This domestic equity investment portfolio seeks to provide long-term growth of capital. It primarily invests in small to medium sized companies utilizing fundamental analysis. It focuses on investing in high-quality companies with potential for long-term growth. It does not specialize in any given industry and participates in all growth sectors in the economy. Next Century Growth Investors LLC serves as the investment manager.
Artisan International Fund - This investment seeks long-term capital growth. The fund invests primarily in developed markets but also may invest in emerging and less developed markets. Under normal market conditions, the fund substantially fully invests in common stocks and similar securities, and invests at least 65% of net assets at market value at the time of purchase in securities of non-U.S. companies. There are no restrictions on the size of the companies in which the fund may invest.
International Value - This collective investment trusts seeks to provide long-term growth of capital. The trust invests in the stocks of large companies based outside of the United States. The portfolio management team uses a disciplined value approach, applying in-depth global research to carefully select companies they believe to be priced below their long-term earnings power, usually because they are out of favor or in industries that are out of favor. Alliance Bernstein serves as the investment manager.
PIMCO Total Return Fund - This fund seeks maximum total return. It normally invests at least 65% of total assets in a diversified portfolio of fixed-income instruments of varying maturities, which may be represented by forwards or derivatives such as options, futures contracts, or swap agreements. It invests primarily in investment-grade debt securities, but may invest up to 10% of total assets in high-yield securities (“junk bonds”). The fund may invest in derivative instruments, such as options, futures contracts or swap agreements, or in mortgage- or asset-backed securities. Pacific Investment Management Company serves as the investment manager.
 
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DEVON ENERGY CORPORATION INCENTIVE SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS – CONTINUED
 
SEI Stable Asset Fund - This commingled fund seeks preservation of principal and to earn current income while tracking interest rates over the intermediate term. The fund invests in a diversified portfolio of stable value contracts, including wrap contracts issued by insurance companies, banks, and other financial institutions. Dwight Asset Management Company serves as the investment manager.
Target Date Income Fund - This fund seeks to preserve capital during retirement. The portfolio invests in a diverse mix of underlying funds in the Plan, as well as a Real Estate Investment Trust (REIT) and Treasury Inflation Protected Security (TIPS), based on advanced asset allocation methods from Wellington Management Company, LLP. This asset allocation mix becomes more conservative over time.
Target Date Fund 2005, Target Date Fund 2010, Target Date Fund 2015, Target Date Fund 2020, Target Date Fund 2025, Target Date Fund 2030, Target Date Fund 2035, Target Date Fund 2040, Target Date Fund 2045, Target Date Fund 2050 – These target date funds seek to provide growth and a level of risk appropriate for a particular retirement date, while preserving capital during retirement. The respective portfolios invest in a diverse mix of underlying funds in the Plan, as well as a REIT and TIPS, based on advanced asset allocation methods from Wellington Management Company, LLP. For each of these funds, the asset allocation mix becomes more conservative over time, until it is approximately the same as the Target Date Income Fund. At that time, the funds will combine, and shareholders of these funds will become shareholders of the Target Date Income Fund.
Devon Energy Stock - This is a unitized stock fund that invests primarily in the stock of Devon Energy Corporation, as well as short-term investments. A participant may only elect to direct the investment of his or her own contributions to the Plan into this investment option and may not elect to invest more than 15% of his or her contributions. To the extent that a participant’s contributions that are directed for investment in this option are subject to a matching contribution, the matching contribution also will be invested in this investment option. Dividends received are reinvested in Devon common stock.
Brokerage Link - This is a self-directed brokerage account that allows participants to invest in a wide variety of securities. Participants can elect to invest their assets in individual securities or mutual funds by establishing a brokerage account with the Trustee.
 
 	5.	Vesting	
Participants are vested immediately in their contributions, plus actual earnings or losses thereon. For each year of service up to four years, a participant becomes 25% vested in employer contributions to their account and the earnings or losses generated thereon. A participant will become vested upon a change of control, as defined in the Plan, of Devon or if the participant dies, becomes totally disabled or reaches age 65 while employed by Devon or another participating employer.
 
 	6.	Notes Receivable from Participants	
Participants may borrow from their fund accounts up to 50% of their vested balance, but such loan may not be less than $1,000 or greater than $50,000. A participant may not have more than two loans outstanding at any time. The loans are secured by the balance in the participant’s account. The loans bear interest at a fixed rate, which approximates the rate generally charged for consumer loans secured by certificates of deposit or marketable securities. The interest rates ranged from 4.25% to 9.25% at December 31, 2010. The terms of the loans may not exceed five years, except for loans used to purchase a primary residence, in which case the loan term generally will not exceed 15 years. Maturity dates ranged from January 2011 to April 2020 at December 31, 2010. Principal and interest is repaid through biweekly payroll deductions from the participants’ wages.
 
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DEVON ENERGY CORPORATION INCENTIVE SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS – CONTINUED
 
 	7.	Payment of Benefits	
While still employed, a participant who is age 59  1 / 2 or older may withdraw all or part of the vested interest in his or her account at any time. A participant who is still employed also may withdraw his or her Rollover Contributions regardless of age. In addition, a participant who is still employed and who has taken all other withdrawals and loans available under the Plan may also request a withdrawal in an amount necessary to satisfy an immediate and heavy financial need.
On termination of service due to death, disability or upon retirement, a participant (or a beneficiary in the case of death) may elect to receive either a lump-sum amount equal to the value of the participant’s vested interest in his or her account or equal installments (monthly, quarterly, semi-annually or annually) for any period less than the life expectancy of the participant and his or her beneficiary. For termination of service for other reasons, a participant may receive the value of the vested interest in his or her account as a lump-sum distribution. Depending on the value of the participant’s vested interest in his or her account at the time of his or her termination of service, the value of the participant’s vested interest may be automatically paid in a lump-sum distribution, paid in a direct rollover or automatically rolled over to an individual retirement account or annuity established in the participant’s (or beneficiary’s) name.
 
 	8.	Forfeited Accounts	
Upon termination of employment of participants who are not fully vested in Devon’s contributions, the nonvested portion is forfeited and used to reduce Devon’s future contributions. Employer contributions were reduced by $1,047,000 in 2010. As of December 31, 2010 and 2009, there were approximately $1,098,000 and $1,042,000, respectively, of forfeitures available to reduce future employer contributions.
NOTE B - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The following are the significant accounting policies followed by the Plan in preparing the accompanying financial statements:
 
 	1.	Basis of Presentation	
The financial statements have been prepared on the accrual basis of accounting in conformity with accounting principles generally accepted in the United States of America.
 
 	2.	Use of Estimates	
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management and the plan administrator to make estimates and assumptions that affect the reported amounts of assets, liabilities and changes therein, and disclosure of contingent assets and liabilities. Actual results could differ from those estimates.
 
 	3.	Investment Valuation and Income Recognition	
The Plan’s investments are stated at fair value. Fair value is the price that would be received to sell an asset in an orderly transaction between market participants at the measurement date. See Note C for discussion of fair value measurements.
Realized gains or losses are calculated based on proceeds from the sale of investments and the fair value of the investments at the beginning of the plan year or at time of purchase if acquired during the current plan year. Unrealized appreciation or depreciation of the investments is calculated based on the fair value of the investments at the end of the plan year and the fair value of the investments at the beginning of the plan year or at time of purchase if acquired during the current plan year. Purchases and sales of securities are recorded on a trade-date basis. Interest income is recorded on the accrual basis. Dividends are recorded on the ex-dividend date.
 
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DEVON ENERGY CORPORATION INCENTIVE SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS – CONTINUED
 
Investment contracts held by a defined-contribution plan are required to be reported at fair value. However, contract value is the relevant measurement attribute for that portion of the net assets available for benefits of a defined-contribution plan attributable to fully benefit-responsive investment contracts because contract value is the amount participants would receive if they were to initiate permitted transactions under the terms of the plan. The Statements of Net Assets Available for Benefits presents the fair value of the investment contracts as well as the adjustment of the fully benefit-responsive investment contracts from fair value to contract value. The Statement of Changes in Net Assets Available for Benefits is prepared on a contract value basis.
 
 	4.	Notes Receivable From Participants	
Notes receivable from participants are measured at their unpaid principal balance plus any accrued but unpaid interest. Delinquent participant loans are reclassified as distributions based upon the terms of the plan document.
 
 	5.	Payment of Benefits	
Benefits are recorded when paid.
 
 	6.	Administrative	
Trustee, audit and certain other administrative fees for 2010 were paid by Devon on behalf of the Plan.
 
 	7.	Recent Accounting Pronouncements Adopted	
In September 2010, the Financial Accounting Standards Board (“FASB”) issued new accounting guidance, Plan Accounting - Defined Contribution Pension Plans (Topic 962): Reporting Loans to Participants by Defined Contribution Pension Plans, which provides guidance on how loans to participants should be classified and measured by defined contribution plans. That guidance requires participant loans to be classified as notes receivable from participants, which are segregated from plan investments and measured at their unpaid principal balance plus any accrued but unpaid interest. The Plan adopted this new guidance in its December 31, 2010, financial statements and has reclassified participant loans of $10,973,491 as of December 31, 2009, from investments to notes receivable from participants. Net assets of the Plan were not affected by the adoption of the new guidance.
NOTE C - FAIR VALUE MEASUREMENTS
Fair value measurements are classified according to a hierarchy that prioritizes the inputs underlying the valuation techniques. This hierarchy consists of three broad levels. Level 1 inputs on the hierarchy consist of unadjusted quoted prices in active markets for identical assets and liabilities and have the highest priority. Level 2 measurements are based on inputs other than quoted prices that are generally observable for the asset or liability. Common examples of Level 2 inputs include quoted prices for similar assets and liabilities in active markets or quoted prices for identical assets and liabilities in markets not considered to be active. Level 3 measurements have the lowest priority and are based upon inputs that are not observable from objective sources. The Plan had no Level 3 fair value measurements as of December 31, 2010 and 2009.
The asset’s or liability’s fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Valuation techniques used need to maximize the use of observable inputs and minimize the use of unobservable inputs.
Following is a description of the valuation methodologies used for assets measured at fair value. There have been no changes in the methodologies used at December 31, 2010 and 2009.
Mutual funds and money market funds - Valued at the net asset value (“NAV”) of shares held by the Plan.
Collective trust funds - Value based on the fair value of the collective trust’s underlying investments using information reported by the investment advisor.
 
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DEVON ENERGY CORPORATION INCENTIVE SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS – CONTINUED
 
Common stock - Valued at the closing price reported on the active market on which the security is traded.
The methods described above may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, although these valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different estimate of fair value at the reporting date.
The following tables set forth by level the Plan’s investments at fair value as of December 31:

 	  	2010	 	
 	  	Level 1	 	  	Level 2	 	  	Total	 	
Mutual funds	  				  				  				
Growth funds	  	$	58,583,003	  	  	$	—  	  	  	$	58,583,003	  	
Fixed income funds	  	 	82,854,976	  	  	 	—  	  	  	 	82,854,976	  	
Value funds	  	 	1,721,263	  	  	 	—  	  	  	 	1,721,263	  	
Balanced funds	  	 	9,597,936	  	  	 	—  	  	  	 	9,597,936	  	
Target date funds	  	 	558,884	  	  	 	—  	  	  	 	558,884	  	
Short-term investments	  	 	149,991	  	  	 	—  	  	  	 	149,991	  	
Energy funds	  	 	1,540,898	  	  	 	—  	  	  	 	1,540,898	  	
Technology funds	  	 	118,545	  	  	 	—  	  	  	 	118,545	  	
Real estate funds	  	 	344,946	  	  	 	—  	  	  	 	344,946	  	
International funds	  	 	710,644	  	  	 	—  	  	  	 	710,644	  	
Commodity funds	  	 	3,216,800	  	  	 	—  	  	  	 	3,216,800	  	
Other funds	  	 	1,281,083	  	  	 	—  	  	  	 	1,281,083	  	
	  	 	 	 	  	 	 	 	  	 	 	 	
	  	 	160,678,969	  	  	 	—  	  	  	 	160,678,969	  	
				
Common stocks	  				  				  				
Employer stock	  	 	98,847,937	  	  	 	—  	  	  	 	98,847,937	  	
Domestic large cap value	  	 	60,582,670	  	  	 	—  	  	  	 	60,582,670	  	
Domestic large cap growth	  	 	46,264,608	  	  	 	—  	  	  	 	46,264,608	  	
Domestic small cap value	  	 	35,965,786	  	  	 	—  	  	  	 	35,965,786	  	
Domestic small cap growth	  	 	25,041,525	  	  	 	—  	  	  	 	25,041,525	  	
Other	  	 	224,350	  	  	 	—  	  	  	 	224,350	  	
	  	 	 	 	  	 	 	 	  	 	 	 	
	  	 	266,926,876	  	  	 	—  	  	  	 	266,926,876	  	
				
Money market funds	  	 	56,224,721	  	  	 	—  	  	  	 	56,224,721	  	
Collective trust funds	  				  				  				
Domestic large cap blend	  	 	—  	  	  	 	63,708,372	  	  	 	63,708,372	  	
Stable value	  	 	—  	  	  	 	33,365,497	  	  	 	33,365,497	  	
International value	  	 	—  	  	  	 	30,207,963	  	  	 	30,207,963	  	
Real estate investment trust	  	 	—  	  	  	 	2,419,574	  	  	 	2,419,574	  	
	  	 	 	 	  	 	 	 	  	 	 	 	
	  	 	—  	  	  	 	129,701,406	  	  	 	129,701,406	  	
	  	 	 	 	  	 	 	 	  	 	 	 	
Total investments at fair value	  	$	483,830,566	  	  	$	129,701,406	  	  	$	613,531,972	  	

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DEVON ENERGY CORPORATION INCENTIVE SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS – CONTINUED

													
 	  	2009	 	
 	  	Level 1	 	  	Level 2	 	  	Total	 	
Mutual funds	  				  				  				
Growth funds	  	$	56,154,011	  	  	$	—  	  	  	$	56,154,011	  	
Fixed income funds	  	 	73,428,961	  	  	 	—  	  	  	 	73,428,961	  	
Value funds	  	 	1,074,546	  	  	 	—  	  	  	 	1,074,546	  	
Balanced funds	  	 	7,854,153	  	  	 	—  	  	  	 	7,854,153	  	
Target date funds	  	 	505,143	  	  	 	—  	  	  	 	505,143	  	
Short-term investments	  	 	563,764	  	  	 	—  	  	  	 	563,764	  	
Energy funds	  	 	2,435,784	  	  	 	—  	  	  	 	2,435,784	  	
Technology funds	  	 	662,172	  	  	 	—  	  	  	 	662,172	  	
Real estate funds	  	 	459,979	  	  	 	—  	  	  	 	459,979	  	
International funds	  	 	814,606	  	  	 	—  	  	  	 	814,606	  	
Other funds	  	 	1,951,339	  	  	 	—  	  	  	 	1,951,339	  	
	  	 	 	 	  	 	 	 	  	 	 	 	
	  	 	145,904,458	  	  	 	—  	  	  	 	145,904,458	  	
				
Common stocks	  				  				  				
Employer stock	  	 	105,212,604	  	  	 	—  	  	  	 	105,212,604	  	
Domestic large cap value	  	 	54,371,740	  	  	 	—  	  	  	 	54,371,740	  	
Domestic large cap growth	  	 	40,259,064	  	  	 	—  	  	  	 	40,259,064	  	
Domestic small cap value	  	 	30,268,305	  	  	 	—  	  	  	 	30,268,305	  	
Domestic small cap growth	  	 	16,196,946	  	  	 	—  	  	  	 	16,196,946	  	
Other	  	 	46,264	  	  	 	—  	  	  	 	46,264	  	
	  	 	 	 	  	 	 	 	  	 	 	 	
	  	 	246,354,923	  	  	 	—  	  	  	 	246,354,923	  	
				
Money market funds	  	 	61,731,160	  	  	 	—  	  	  	 	61,731,160	  	
Collective trust funds	  				  				  				
Domestic large cap blend	  	 	—  	  	  	 	56,965,727	  	  	 	56,965,727	  	
Stable value	  	 	—  	  	  	 	29,403,640	  	  	 	29,403,640	  	
International value	  	 	—  	  	  	 	25,845,474	  	  	 	25,845,474	  	
Real estate investment trust	  	 	—  	  	  	 	1,802,366	  	  	 	1,802,366	  	
	  	 	 	 	  	 	 	 	  	 	 	 	
	  	 	—  	  	  	 	114,017,207	  	  	 	114,017,207	  	

Total investments at fair value	  	$	453,990,541	  	  	$	114,017,207	  	  	$	568,007,748	  	
	  	 	 	 	  	 	 	 	  	 	 	 	
During the year ended December 31, 2010, there were no transfers between level 1 or level 2 fair value measurements.
NOTE D - STABLE VALUE FUND
The SEI Stable Asset Fund (the “Fund”) is a collective trust fund sponsored by SEI Trust Company. The beneficial interest of each participant is represented by units. Units are issued and redeemed daily at the Fund’s constant NAV of $1 per unit. Distribution to the Fund’s unit holders are declared daily from the net investment income and automatically reinvested in the Fund on a monthly basis. It is the policy of the Fund to use its best efforts to maintain a stable net asset value of $1 per unit, although, there is no guarantee that the Fund will be able to maintain this value.
Participants may direct the withdrawal or transfer of all or a portion of their investment in the Fund at contract value. Contract value represents contributions made to the Fund, plus earnings, less participant withdrawals and administrative expenses. The Fund imposes certain restrictions on the Plan, and the Fund itself may be subject to circumstances that impact its ability to transact at contract value. Plan management believes that the occurrence of events that would cause the Fund to transact at less than contract value is not probable.
 
12

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DEVON ENERGY CORPORATION INCENTIVE SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS – CONTINUED
 
NOTE E - PLAN TERMINATION
Although Devon has not expressed any intent to terminate the Plan, it may do so at any time. Benefits owed to participants are not actuarially determined and the aggregate vested benefits are limited to the Plan’s net assets available for plan benefits. In the event of termination, participants will become 100% vested in their accounts.
NOTE F - PLAN INVESTMENT ASSETS
Following is a schedule of the Plan’s investments that exceed 5% of the Plan’s net assets at December 31, 2010 and 2009, and the fair value of such investments:

 	  	2010	 	  	2009	 	
 	  	Number of
shares or
units	 	  	Fair value	 	  	Number of
shares or
units	 	  	Fair value	 	
Vanguard Prime Money Market Fund	  	 	43,732,826	  	  	$	43,732,826	  	  	 	53,316,239	  	  	$	53,316,239	  	
Pimco Total Return Fund	  	 	5,977,552	  	  	 	64,856,442	  	  	 	5,490,618	  	  	 	59,386,340	  	
Artisan International Fund	  	 	2,578,393	  	  	 	55,951,134	  	  	 	2,566,365	  	  	 	52,853,337	  	
Black Rock, Inc. Large Cap Blend	  	 	3,648,819	  	  	 	63,708,372	  	  	 	2,411,758	  	  	 	56,965,727	  	
Devon Energy Corporation Common Stock	  	 	1,259,049	  	  	 	98,847,937	  	  	 	1,431,464	  	  	 	105,212,604	  	
SEI Stable Asset Fund	  	 	33,365,497	  	  	 	33,365,497	  	  	 	30,831,219	  	  	 	30,831,219	  	
During 2010, the Plan’s investments (including gains and losses on investments bought and sold, as well as held during the year) appreciated in value as follows:

Mutual funds	  	$	5,437,632	  	
Common collective trusts	  	 	9,287,711	  	
Common stocks	  	 	30,582,388	  	
	  	 	 	 	
	  	$	45,307,731	  	
	  	 	 	 	
NOTE G - RELATED PARTY TRANSACTIONS
Certain plan investments are shares of mutual funds managed by Fidelity Management & Research Company, which is an affiliate of the Trustee. Therefore, these transactions qualify as party-in-interest transactions.
NOTE H - TAX STATUS
The Internal Revenue Service has determined and informed Devon by a letter dated April 16, 2010, that the Plan and related trusts are designed in accordance with applicable sections of the Internal Revenue Code (IRC). Prior to April 16, 2010, the Plan operated under a determination letter dated August 1, 2002. Although the Plan has been amended since receiving the determination letter, plan administrator believes that the Plan is designed and is currently being operated in compliance with the applicable provisions of the Internal Revenue Code.
Accounting principles generally accepted in the United States of America require plan management to evaluate tax positions taken by the Plan and recognize a tax liability (or asset) if the Plan has taken an uncertain position that more likely than not would not be sustained upon examination by the Internal Revenue Service. The plan administrator has analyzed the tax positions taken by the Plan, and has concluded that as of December 31, 2010, there are no uncertain positions taken or expected to be taken that would require recognition of a liability (or asset) or disclosure in the financial statements. The Plan is subject to routine audits by taxing jurisdictions. There are currently routine Internal Revenue Service (IRS) audits for the tax periods of 2008 and 2009 in progress. The plan administrator believes it is no longer subject to income tax examinations for years prior to 2008. The plan administrator has responded to IRS requests for information in a timely manner and the IRS had made no adverse findings regarding the operation of the Plan.
 
13

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DEVON ENERGY CORPORATION INCENTIVE SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS – CONTINUED
 
NOTE I - RISK AND UNCERTAINTIES
In general, the investments provided by the Plan are exposed to various risks, such as interest rate, credit and overall market volatility risks. Because of the risks associated with investment securities, it is reasonably possible that changes in the values of investment securities will occur in the near term and that such change could materially affect the participants’ account balances and the amounts reported in the statements of  net assets available for benefits.
NOTE J - RECONCILIATION OF FINANCIAL STATEMENT TO FORM 5500
The following is a reconciliation of net assets available for benefits per the financial statements at December 31, 2010 and 2009 to Form 5500.

 	  	2010	 	 	2009	 	
Net assets available for benefits per the financial statements	  	$	637,096,113	  	 	$	597,136,809	  	
			
Adjustment from contract value to fair value for interest in collective trust relating to fully benefit-responsive investment contracts	  	 	(543,173	) 	 	 	(1,427,579	) 	
	  	 	 	 	 	 	 	 	
Net assets available for benefits per Form 5500	  	$	636,552,940	  	 	$	595,709,230	  	
	  	 	 	 	 	 	 	 	
The following is a reconciliation of investment income per the financial statements for the year ended December 31, 2010 to Form 5500:

Net investment income per financial statements	  	$	55,575,472	  	
		
Interest income on notes receivable from participants	  	 	580,228	  	
		
Adjustment from contract value to fair value for interest in collective trust relating to fully benefit-responsive investment contracts	  	 	884,406	  	

Net investment income per Form 5500	  	$	57,040,106	  	

14

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 DEVON ENERGY CORPORATION INCENTIVE SAVINGS PLAN
SCHEDULE H, LINE 4i-SCHEDULE OF ASSETS (HELD AT END OF YEAR)
DECEMBER 31, 2010

Identity of issue, borrower, lessor or similar party	  	Description of investment	  	Number of
shares or units	 	  	Current Value	 	
Devon Energy Corporation**	  	Common stock	  	 	1,259,049	  	  	$	98,847,937	  	
				
Cash equivalent fund:	  		  				  				
The Vanguard Group	  	Vanguard Prime Money Market Fund	  	 	43,732,826	  	  	 	43,732,826	  	
				
Interest-bearing cash	  	Money-market accounts	  				  	 	12,491,895	  	
				
Mutual Funds and Common Collective Trust:	  		  				  				
PIMCO Funds	  	PIMCO Total Return Fund	  	 	5,977,552	  	  	 	64,856,442	  	
Dwight Asset Management	  	SEI Stable Asset Fund	  	 	33,365,497	  	  	 	33,365,497	  	
Artisan Partners Group LP	  	Artisan International Fund	  	 	2,578,393	  	  	 	55,951,134	  	
Blackrock, Inc.	  	Large Cap Blend	  	 	3,648,819	  	  	 	63,708,372	  	
Alliance Bernstein	  	International Value	  	 	4,284,817	  	  	 	30,207,963	  	
Invesco	  	Invesco Equity Real Estate Securities Trust	  	 	34,428	  	  	 	2,419,574	  	
Western Asset	  	Inflation Indexed Plus Bond Portfolio	  	 	1,481,029	  	  	 	16,158,030	  	
				
Equity Investments:	  		  				  				
ABBOTT LABORATORIES	  	Common stock	  	 	22,230	  	  	 	1,065,039	  	
ACME PACKET INC	  	Common stock	  	 	11,583	  	  	 	615,752	  	
AEROPOSTALE INC	  	Common stock	  	 	23,000	  	  	 	566,720	  	
AGILENT TECHNOLOGIES INC	  	Common stock	  	 	25,430	  	  	 	1,053,565	  	
ALASKA AIR GROUP INC	  	Common stock	  	 	3,400	  	  	 	192,746	  	
ALEXION PHARMACEUTICALS INC	  	Common stock	  	 	3,205	  	  	 	258,163	  	
ALLERGAN INC	  	Common stock	  	 	15,950	  	  	 	1,095,287	  	
ALLIANT ENERGY CORPORATION	  	Common stock	  	 	20,600	  	  	 	757,462	  	
ALPHA NAT RES INC	  	Common stock	  	 	20,610	  	  	 	1,237,218	  	
AMAZON.COM INC	  	Common stock	  	 	6,350	  	  	 	1,143,000	  	
AMEDISYS INC	  	Common stock	  	 	8,900	  	  	 	298,150	  	
AMERICAN EXPRESS CO	  	Common stock	  	 	27,890	  	  	 	1,197,039	  	
AMERICAN TOWER CORP CL A	  	Common stock	  	 	21,530	  	  	 	1,111,809	  	
AMGEN INC	  	Common stock	  	 	44,800	  	  	 	2,459,520	  	
ANGLOGOLD ASHANTI LTD SPON ADR	  	Common stock	  	 	43,313	  	  	 	2,132,299	  	
ANSYS INC	  	Common stock	  	 	10,585	  	  	 	551,161	  	
AON CORP	  	Common stock	  	 	43,900	  	  	 	2,019,839	  	
APACHE CORP	  	Common stock	  	 	24,700	  	  	 	2,944,981	  	
APPLE INC	  	Common stock	  	 	5,870	  	  	 	1,893,427	  	
ARCH CAPITAL GROUP LTD	  	Common stock	  	 	2,000	  	  	 	176,100	  	
ARRIS GROUP INC	  	Common stock	  	 	42,200	  	  	 	473,484	  	
ARUBA NETWORKS INC	  	Common stock	  	 	14,395	  	  	 	300,568	  	
ASPEN INSURANCE HLDGS LTD	  	Common stock	  	 	22,500	  	  	 	643,950	  	
ATHEROS COMMUNICATIONS INC	  	Common stock	  	 	8,320	  	  	 	298,854	  	
ATMEL CORP	  	Common stock	  	 	31,737	  	  	 	391,000	  	
BARRICK GOLD CORP	  	Common stock	  	 	61,500	  	  	 	3,270,570	  	
BJ’S RESTAURANTS INC	  	Common stock	  	 	10,050	  	  	 	356,072	  	
BORGWARNER INC	  	Common stock	  	 	6,615	  	  	 	478,661	  	
BROADCOM CORPCL A	  	Common stock	  	 	23,220	  	  	 	1,011,231	  	
BUCKLE INC (THE)	  	Common stock	  	 	9,200	  	  	 	347,484	  	
CA INC	  	Common stock	  	 	122,000	  	  	 	2,981,680	  	
CANADIAN NATL RESOURCES LTD	  	Common stock	  	 	36,800	  	  	 	1,634,656	  	
CARDINAL HEALTH INC	  	Common stock	  	 	31,080	  	  	 	1,190,675	  	
CARDTRONICS INC	  	Common stock	  	 	15,000	  	  	 	265,500	  	
CARTERS INC	  	Common stock	  	 	14,900	  	  	 	439,699	  	
 
15

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DEVON ENERGY CORPORATION INCENTIVE SAVINGS PLAN
SCHEDULE H, LINE 4i-SCHEDULE OF ASSETS (HELD AT END OF YEAR) – CONTINUED
DECEMBER 31, 2010

Identity of issue, borrower, lessor or similar party	  	Description of investment	  	Number of
shares or units	 	  	Current Value	 	
CATALYST HEALTH SOLUTIONS	  	Common stock	  	 	9,370	  	  	 	435,611	  	
CB RICHARD ELLIS GROUP INC A	  	Common stock	  	 	8,900	  	  	 	182,272	  	
CENTERPOINT ENERGY INC	  	Common stock	  	 	64,200	  	  	 	1,009,224	  	
CEPHALON INC	  	Common stock	  	 	8,600	  	  	 	530,792	  	
CHART INDUSTRIES INC	  	Common stock	  	 	8,100	  	  	 	273,618	  	
CHICAGO BRIDGE & IRON (NY REG)	  	Common stock	  	 	23,602	  	  	 	776,506	  	
CHIPOTLE MEXICAN GRILL INC	  	Common stock	  	 	2,959	  	  	 	629,261	  	
CHURCHILL DOWNS INC	  	Common stock	  	 	2,700	  	  	 	117,180	  	
CIENA CORP	  	Common stock	  	 	13,835	  	  	 	291,227	  	
CISCO SYSTEMS INC	  	Common stock	  	 	42,810	  	  	 	866,046	  	
CITIGROUP INC	  	Common stock	  	 	339,700	  	  	 	1,606,781	  	
CITRIX SYSTEMS INC	  	Common stock	  	 	17,510	  	  	 	1,197,859	  	
CLEARWATER PAPER CORP	  	Common stock	  	 	4,200	  	  	 	328,860	  	
CMS ENERGY CORP	  	Common stock	  	 	54,900	  	  	 	1,021,140	  	
COMSCORE INC	  	Common stock	  	 	10,665	  	  	 	237,936	  	
COMTECH TELECOMMUNICATIONS NEW	  	Common stock	  	 	8,600	  	  	 	238,478	  	
CONCUR TECHNOLOGIES INC	  	Common stock	  	 	12,480	  	  	 	648,086	  	
CORINTHIAN COLLEGES INC	  	Common stock	  	 	23,000	  	  	 	119,830	  	
CROWN HOLDINGS INC	  	Common stock	  	 	13,700	  	  	 	457,306	  	
CVS CAREMARK CORP	  	Common stock	  	 	17,800	  	  	 	618,906	  	
CYPRESS SEMICONDUCTOR CORP	  	Common stock	  	 	38,680	  	  	 	718,674	  	
DECKERS OUTDOOR CORP	  	Common stock	  	 	2,200	  	  	 	175,428	  	
DIRECTV CL A	  	Common stock	  	 	25,480	  	  	 	1,017,416	  	
DRESSER RAND GROUP INC	  	Common stock	  	 	10,700	  	  	 	455,713	  	
DUPONT (EI) DE NEMOURS & CO	  	Common stock	  	 	19,290	  	  	 	962,185	  	
EBAY INC	  	Common stock	  	 	37,360	  	  	 	1,039,729	  	
ECHOSTAR CORP CL A	  	Common stock	  	 	15,900	  	  	 	397,023	  	
EMC CORP	  	Common stock	  	 	43,090	  	  	 	986,761	  	
EMCOR GROUP INC	  	Common stock	  	 	15,800	  	  	 	457,884	  	
EMERGENCY MEDICAL SVCS CL A	  	Common stock	  	 	8,700	  	  	 	562,107	  	
EMERSON ELEC CO	  	Common stock	  	 	21,280	  	  	 	1,216,578	  	
ENDO PHARMACEUTICALS HLDGS INC	  	Common stock	  	 	12,100	  	  	 	432,091	  	
ENERSYS INC	  	Common stock	  	 	8,400	  	  	 	269,808	  	
EQT CORPORATION	  	Common stock	  	 	23,500	  	  	 	1,053,740	  	
EQUINIX INC	  	Common stock	  	 	6,175	  	  	 	501,781	  	
ESTERLINE TECHNOLOGIES CORP	  	Common stock	  	 	2,600	  	  	 	178,334	  	
EXLSERVICE HOLDINGS INC	  	Common stock	  	 	11,985	  	  	 	257,438	  	
EXXON MOBIL CORP	  	Common stock	  	 	16,470	  	  	 	1,204,286	  	
FAMILY DOLLAR STORES INC	  	Common stock	  	 	23,470	  	  	 	1,166,694	  	
FORD MOTOR CO	  	Common stock	  	 	66,910	  	  	 	1,123,419	  	
FORTINET INC	  	Common stock	  	 	18,680	  	  	 	604,298	  	
FOSTER WHEELER AG	  	Common stock	  	 	13,300	  	  	 	459,116	  	
FREEPORT MCMORAN COPPER & GOLD	  	Common stock	  	 	4,060	  	  	 	487,565	  	
FTI CONSULTING INC	  	Common stock	  	 	10,200	  	  	 	380,256	  	
GAMESTOP CORP CL A	  	Common stock	  	 	24,300	  	  	 	555,984	  	
GENERAL MOTORS CO	  	Common stock	  	 	26,100	  	  	 	962,046	  	
GENTEX CORP	  	Common stock	  	 	22,566	  	  	 	667,051	  	
GENWORTH FINANCIAL INC A	  	Common stock	  	 	126,500	  	  	 	1,662,210	  	
GLOBAL CASH ACCESS HLDGS INC	  	Common stock	  	 	16,700	  	  	 	53,273	  	
GOLDMAN SACHS GROUP INC	  	Common stock	  	 	3,800	  	  	 	639,008	  	
GOOGLE INC A	  	Common stock	  	 	1,800	  	  	 	1,069,146	  	
GREEN MTN COFFEE ROASTERS INC	  	Common stock	  	 	22,165	  	  	 	728,342	  	
 
16

Table of Contents
DEVON ENERGY CORPORATION INCENTIVE SAVINGS PLAN
SCHEDULE H, LINE 4i-SCHEDULE OF ASSETS (HELD AT END OF YEAR) – CONTINUED
DECEMBER 31, 2010

Identity of issue, borrower, lessor or similar party	  	Description of investment	  	Number of
shares or units	 	  	Current Value	 	
HAEMONETICS CORP MASS	  	Common stock	  	 	4,300	  	  	 	271,674	  	
HALLIBURTON CO	  	Common stock	  	 	14,800	  	  	 	604,284	  	
HANOVER INSURANCE GROUP INC	  	Common stock	  	 	11,400	  	  	 	532,608	  	
HARTFORD FINL SVCS GROUP INC	  	Common stock	  	 	35,200	  	  	 	932,448	  	
HCC INSURANCE HOLDINGS INC	  	Common stock	  	 	28,500	  	  	 	824,790	  	
HERSHEY CO (THE)	  	Common stock	  	 	22,500	  	  	 	1,060,875	  	
HESS CORP	  	Common stock	  	 	11,800	  	  	 	903,172	  	
HHGREGG INC	  	Common stock	  	 	20,770	  	  	 	435,132	  	
HIGHER ONE HLDGS INC	  	Common stock	  	 	12,526	  	  	 	253,401	  	
HITTITE MICROWAVE CORP	  	Common stock	  	 	11,781	  	  	 	719,112	  	
HMS HOLDINGS CORP	  	Common stock	  	 	5,660	  	  	 	366,598	  	
HUNT J B TRANSPORT SERVICES IN	  	Common stock	  	 	16,785	  	  	 	684,996	  	
IDACORP INC	  	Common stock	  	 	12,500	  	  	 	462,250	  	
IGATE CORPORATION	  	Common stock	  	 	11,665	  	  	 	229,917	  	
ILLUMINA INC	  	Common stock	  	 	11,836	  	  	 	749,692	  	
IMPAX LABORATORIES INC	  	Common stock	  	 	27,200	  	  	 	546,992	  	
INGERSOLL RAND CO LTD CL A	  	Common stock	  	 	28,200	  	  	 	1,327,938	  	
INTEL CORP	  	Common stock	  	 	54,340	  	  	 	1,142,770	  	
INTERDIGITAL INC	  	Common stock	  	 	9,600	  	  	 	399,744	  	
J2 GLOBAL COMMUNICATIONS INC	  	Common stock	  	 	19,300	  	  	 	558,735	  	
JOY GLOBAL INC	  	Common stock	  	 	13,350	  	  	 	1,158,113	  	
JOY GLOBAL INC	  	Common stock	  	 	8,819	  	  	 	765,048	  	
JPMORGAN CHASE & CO	  	Common stock	  	 	27,200	  	  	 	1,153,824	  	
KANSAS CITY SOUTHERN	  	Common stock	  	 	10,295	  	  	 	492,719	  	
KEMET CORP	  	Common stock	  	 	33,600	  	  	 	489,888	  	
KIMBERLY CLARK CORP	  	Common stock	  	 	12,700	  	  	 	800,608	  	
KNIGHT TRANSPORTATION INC	  	Common stock	  	 	10,440	  	  	 	198,360	  	
KROGER CO	  	Common stock	  	 	40,400	  	  	 	903,344	  	
LENDER PROCESSING SVCS INC	  	Common stock	  	 	15,800	  	  	 	466,416	  	
LINCOLN NATIONAL CORP	  	Common stock	  	 	31,100	  	  	 	864,891	  	
LOCKHEED MARTIN CORP	  	Common stock	  	 	21,600	  	  	 	1,510,056	  	
LOEWS CORP	  	Common stock	  	 	56,700	  	  	 	2,206,197	  	
LULULEMON ATHLETICA INC	  	Common stock	  	 	9,265	  	  	 	633,911	  	
MANTECH INTL CORP CL A	  	Common stock	  	 	9,400	  	  	 	388,502	  	
MARKEL CORP	  	Common stock	  	 	1,300	  	  	 	491,569	  	
MCDONALDS CORP	  	Common stock	  	 	14,390	  	  	 	1,104,576	  	
MEDICIS PHARMACEUTICAL CL A	  	Common stock	  	 	14,100	  	  	 	377,739	  	
MEDNAX INC	  	Common stock	  	 	4,500	  	  	 	302,805	  	
MERCK & CO INC NEW	  	Common stock	  	 	25,100	  	  	 	904,604	  	
METLIFE INC	  	Common stock	  	 	27,370	  	  	 	1,216,323	  	
METLIFE INC	  	Common stock	  	 	45,100	  	  	 	2,004,244	  	
MFA FINANCIAL INC	  	Common stock	  	 	112,200	  	  	 	915,552	  	
MICROSOFT CORP	  	Common stock	  	 	42,450	  	  	 	1,185,204	  	
MICROSOFT CORP	  	Common stock	  	 	40,650	  	  	 	1,134,948	  	
MONSTER WORLDWIDE INC	  	Common stock	  	 	29,642	  	  	 	700,440	  	
MOSAIC CO	  	Common stock	  	 	9,550	  	  	 	729,238	  	
MOTOROLA INC	  	Common stock	  	 	193,500	  	  	 	1,755,045	  	
NET 1 UEPS TECHNOLOGIES INC	  	Common stock	  	 	15,200	  	  	 	186,352	  	
NETLOGIC MICROSYSTEMS INC	  	Common stock	  	 	21,923	  	  	 	688,601	  	
NISOURCE INC	  	Common stock	  	 	28,100	  	  	 	495,122	  	
NOBLE ENERGY INC	  	Common stock	  	 	14,000	  	  	 	1,205,120	  	
NORTHERN OIL AND GAS INC	  	Common stock	  	 	20,767	  	  	 	565,070	  	
 
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DEVON ENERGY CORPORATION INCENTIVE SAVINGS PLAN
SCHEDULE H, LINE 4i-SCHEDULE OF ASSETS (HELD AT END OF YEAR) – CONTINUED
DECEMBER 31, 2010

Identity of issue, borrower, lessor or similar party	  	Description of investment	  	Number of
shares or units	 	  	Current Value	 	
NRG ENERGY INC	  	Common stock	  	 	36,700	  	  	 	717,118	  	
NVR INC	  	Common stock	  	 	336	  	  	 	232,183	  	
OCCIDENTAL PETROLEUM CORP	  	Common stock	  	 	14,900	  	  	 	1,461,690	  	
OCWEN FINANCIAL CORP	  	Common stock	  	 	28,900	  	  	 	275,706	  	
OGE ENERGY CORP	  	Common stock	  	 	19,700	  	  	 	897,138	  	
OMNICARE INC	  	Common stock	  	 	11,400	  	  	 	289,446	  	
OPENTABLE INC	  	Common stock	  	 	3,135	  	  	 	220,955	  	
ORACLE CORP	  	Common stock	  	 	37,920	  	  	 	1,186,896	  	
ORIENTAL FINANCIAL GROUP INC	  	Common stock	  	 	22,900	  	  	 	286,021	  	
ORION MARINE GROUP INC	  	Common stock	  	 	19,500	  	  	 	226,200	  	
OSHKOSH CORP	  	Common stock	  	 	18,900	  	  	 	666,036	  	
PARTNERRE LTD	  	Common stock	  	 	6,000	  	  	 	482,100	  	
PDL BIOPHARMA INC	  	Common stock	  	 	30,000	  	  	 	186,900	  	
PEGASYSTEMS INC	  	Common stock	  	 	7,563	  	  	 	277,033	  	
PFIZER INC	  	Common stock	  	 	152,400	  	  	 	2,668,524	  	
PHILIP MORRIS INTL INC	  	Common stock	  	 	18,840	  	  	 	1,102,705	  	
PHILIP MORRIS INTL INC	  	Common stock	  	 	20,600	  	  	 	1,205,718	  	
PINNACLE WEST CAPITAL CORP	  	Common stock	  	 	22,600	  	  	 	936,770	  	
PITNEY-BOWES INC	  	Common stock	  	 	48,400	  	  	 	1,170,312	  	
PLANTRONICS INC	  	Common stock	  	 	7,300	  	  	 	271,706	  	
POLYPORE INTERNATIONAL INC	  	Common stock	  	 	8,610	  	  	 	350,685	  	
PORTFOLIO RECOVERY ASSOC INC	  	Common stock	  	 	2,986	  	  	 	224,547	  	
POWER-ONE INC	  	Common stock	  	 	35,000	  	  	 	357,000	  	
QUALCOMM INC	  	Common stock	  	 	23,930	  	  	 	1,184,296	  	
QUESTCOR PHARMACEUTICALS INC	  	Common stock	  	 	18,400	  	  	 	271,032	  	
RALCORP HOLDINGS	  	Common stock	  	 	11,900	  	  	 	773,619	  	
RAYONIER INC REIT	  	Common stock	  	 	12,400	  	  	 	651,248	  	
RAYTHEON CO	  	Common stock	  	 	16,000	  	  	 	741,440	  	
REALPAGE INC	  	Common stock	  	 	26,646	  	  	 	824,161	  	
REGAL ENTERTAINMENT GROUP CL A	  	Common stock	  	 	39,000	  	  	 	457,860	  	
RENAISSANCERE HLDGS LTD	  	Common stock	  	 	7,300	  	  	 	464,937	  	
RENT A CTR INC	  	Common stock	  	 	11,900	  	  	 	384,132	  	
RIVERBED TECHNOLOGY INC	  	Common stock	  	 	14,618	  	  	 	514,115	  	
RTI INTERNATIONAL METALS INC	  	Common stock	  	 	7,035	  	  	 	189,804	  	
RUE21 INC	  	Common stock	  	 	15,310	  	  	 	448,736	  	
SALIX PHARMACEUTICALS LTD	  	Common stock	  	 	15,485	  	  	 	727,176	  	
SANOFI AVENTIS SPON ADR	  	Common stock	  	 	64,000	  	  	 	2,062,720	  	
SCHLUMBERGER LTD	  	Common stock	  	 	8,540	  	  	 	713,090	  	
SENSIENT TECHNOLOGIES CORP	  	Common stock	  	 	7,600	  	  	 	279,148	  	
SKYWORKS SOLUTIONS INC	  	Common stock	  	 	6,900	  	  	 	197,547	  	
SKYWORKS SOLUTIONS INC	  	Common stock	  	 	10,315	  	  	 	295,318	  	
SM ENERGY CO	  	Common stock	  	 	16,910	  	  	 	996,506	  	
SPX CORP	  	Common stock	  	 	16,370	  	  	 	1,170,291	  	
STARBUCKS CORP	  	Common stock	  	 	37,020	  	  	 	1,189,453	  	
STURM RUGER & CO INC	  	Common stock	  	 	11,200	  	  	 	171,248	  	
SXC HEALTH SOLUTIONS CORP	  	Common stock	  	 	16,720	  	  	 	716,619	  	
TALISMAN ENERGY INC (CANA)	  	Common stock	  	 	53,200	  	  	 	1,180,508	  	
TEKELEC	  	Common stock	  	 	30,600	  	  	 	364,446	  	
TELLABS INC	  	Common stock	  	 	33,300	  	  	 	225,774	  	
TESSERA TECHNOLOGIES INC	  	Common stock	  	 	27,000	  	  	 	598,050	  	
TIME WARNER INC	  	Common stock	  	 	38,800	  	  	 	1,248,196	  	
TJX COMPANIES INC NEW	  	Common stock	  	 	24,170	  	  	 	1,072,906	  	
 
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DEVON ENERGY CORPORATION INCENTIVE SAVINGS PLAN
SCHEDULE H, LINE 4i-SCHEDULE OF ASSETS (HELD AT END OF YEAR) – CONTINUED
DECEMBER 31, 2010

Identity of issue, borrower, lessor or similar party	  	Description of investment	  	Number of
shares or units	 	  	Current Value	 	
TOTAL SYS SVCS INC	  	Common stock	  	 	33,100	  	  	 	509,078	  	
TRUE RELIGION APPAREL INC	  	Common stock	  	 	13,100	  	  	 	291,606	  	
TUTOR PERINI CORP	  	Common stock	  	 	18,000	  	  	 	385,380	  	
ULTIMATE SOFTWARE GROUP INC	  	Common stock	  	 	10,459	  	  	 	508,621	  	
UNION PACIFIC CORP	  	Common stock	  	 	12,500	  	  	 	1,158,250	  	
UNISYS CORP NEW	  	Common stock	  	 	10,900	  	  	 	282,201	  	
UNITED ONLINE INC	  	Common stock	  	 	27,900	  	  	 	184,140	  	
UNITED PARCEL SERVICE INC CL B	  	Common stock	  	 	18,140	  	  	 	1,316,601	  	
UNITED THERAPEUTICS CORP DEL	  	Common stock	  	 	6,142	  	  	 	388,297	  	
UNUM GROUP	  	Common stock	  	 	64,400	  	  	 	1,559,768	  	
URBAN OUTFITTERS	  	Common stock	  	 	5,550	  	  	 	198,746	  	
USEC INC	  	Common stock	  	 	33,900	  	  	 	204,078	  	
VALASSIS COMMUNICATIONS INC	  	Common stock	  	 	11,300	  	  	 	365,555	  	
VALEANT PHARMACEUTICALS INTL	  	Common stock	  	 	12,800	  	  	 	362,112	  	
VALUECLICK INC	  	Common stock	  	 	15,900	  	  	 	254,877	  	
VENOCO INC	  	Common stock	  	 	17,900	  	  	 	330,255	  	
VERIFONE SYSTEMS INC	  	Common stock	  	 	12,559	  	  	 	484,275	  	
VIACOM INC CL B	  	Common stock	  	 	69,500	  	  	 	2,752,898	  	
VOLCANO CORP	  	Common stock	  	 	8,380	  	  	 	228,858	  	
WABCO HOLDINGS INC	  	Common stock	  	 	11,554	  	  	 	703,985	  	
WAL MART STORES INC	  	Common stock	  	 	20,980	  	  	 	1,131,451	  	
WATERS CORP	  	Common stock	  	 	14,710	  	  	 	1,143,114	  	
WEBMD HEALTH CORPORATION	  	Common stock	  	 	5,444	  	  	 	277,971	  	
WELLS FARGO & CO	  	Common stock	  	 	48,800	  	  	 	1,512,312	  	
WESTAR ENERGY INC	  	Common stock	  	 	33,800	  	  	 	850,408	  	
WHITE MOUNTAINS INS GROUP LTD	  	Common stock	  	 	1,400	  	  	 	469,840	  	
WHITING PETROLEUM CORP	  	Common stock	  	 	2,400	  	  	 	281,256	  	
WHOLE FOODS MARKET INC	  	Common stock	  	 	21,160	  	  	 	1,070,484	  	
WILEY (JOHN) & SONS INC CL A	  	Common stock	  	 	4,500	  	  	 	203,580	  	
WILLIS GROUP HOLDINGS PLC	  	Common stock	  	 	16,200	  	  	 	561,006	  	
WRIGHT EXPRESS CORP	  	Common stock	  	 	4,100	  	  	 	188,600	  	
				
Brokerage Link**	  	Participant directed accounts including certain Fidelity investment funds	  				  	 	23,937,713	  	
				
Notes receivable from participants**	  	Installment loans due from participants with maturity dates ranging from January 2011 to April 2020 and interest rates ranging from 4.25% to 9.25%.	  				  	 	10,000,959	  	
	  		  				  	 	 	 	
	  		  				  	$	623,532,931	  	

**Represents party in interest to the Plan.	  		  				  				
 
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 SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the Plan Administrator of the Plan has duly caused this annual report to be signed on its behalf by the undersigned thereunto duly authorized.

	 		 	Devon Energy Incentive Savings Plan	
			
Date:      January 26, 2012	 	 	 	  /s/   Frank W. Rudolph 	
	 		 	Frank W. Rudolph	
	 		 	Executive Vice President Human Resources	
 
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