Table of Contents
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 report): August 6, 2003
DEVON ENERGY CORPORATION
(Exact Name of Registrant as Specified in its Charter)
 	 	 	 	 	
DELAWARE	 	000-30176	 	73-1567067	
(State or Other Jurisdiction of
Incorporation or Organization)	 	(Commission File Number)	 	(IRS Employer
Identification Number)	
 	 	 	
20 NORTH BROADWAY, OKLAHOMA CITY, OK	 	73102	
(Address of Principal Executive Offices)	 	(Zip Code)	
Registrant’s telephone number, including area code: (405) 235-3611

TABLE OF CONTENTS

									
	Item 7. Financial Statements and Exhibits	
	Item 12. Results of Operations and Financial Condition	
SIGNATURES	
EX-99 Press Release	

Table of Contents
Item 7. Financial Statements and Exhibits
      (c)  Exhibits

 	99	 	Devon Energy Corporation Press Release dated August 6, 2003.	
Item 12. Results of Operations and Financial Condition
     Devon Energy Corporation hereby furnishes the information set forth in its Press Release, dated August 6, 2003, announcing second quarter results, a copy of which is attached as Exhibit 99. 
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/ DANNY J. HEATLY	
 	 	 	 		
 	 	 	 	Danny J. Heatly	
 	 	 	 	Vice President — Accounting	
Date: August 6, 2003

 
EXHIBIT 99

NEWS RELEASE

Investor contact:	 	Zack Hager	
 	 	(405) 552-4526	
 	 	 	
Media contact:	 	Brian Engel	
 	 	(405) 228-7750	
DEVON ENERGY REPORTS MID-YEAR 2003 RESULTS; RECORD SECOND QUARTER
PRODUCTION, EARNINGS AND EARNINGS PER SHARE
OKLAHOMA CITY — August 6, 2003 - Devon Energy Corporation (AMEX: DVN, TSE: NSX) today reported record high second quarter oil and gas production, net earnings and earnings per share. Net earnings for the quarter ended June 30, 2003, were $356 million, or $1.67 per common share ($1.62 per diluted common share). In the second quarter of 2002, Devon reported a net loss of $104 million, or 68 cents per common share (68 cents per diluted common share).
     For the six months ended June 30, 2003, the company reported net earnings of $792 million, or $4.27 per common share ($4.11 per diluted common share). This compares to a net loss of $42 million, or 31 cents per common share (31 cents per diluted common share) for the six months ended June 30, 2002.
Second Quarter Production and Sales Soar with Ocean Merger
     Combined production of oil, gas and natural gas liquids reached 56 million barrels of oil equivalent (MMBoe) in the second quarter of 2003. This is an all-time quarterly production record and a 13 percent increase over the 50 MMBoe the company produced a year ago. Devon’s April 25, 2003, merger with Ocean Energy drove the production increase, more than offsetting the impact of property divestitures. The company divested approximately $1.4 billion of non-core oil and gas producing properties in 2002.
     Sales of oil, gas and natural gas liquids increased 67 percent over the second quarter of 2002 to a record $1.5 billion. The increase was attributable to higher production volumes and higher product prices. Devon’s second quarter average realized natural gas price increased 64 percent to $4.67 per thousand cubic feet in 2003. The average price realized for second quarter oil production increased 13 percent to $25.42 per barrel in 2003. Devon’s average price realized for natural gas liquids increased 31 percent to $17.88 per barrel in the second quarter of 2003.
     Marketing and midstream revenue also increased in the second quarter, primarily due to higher natural gas and natural gas liquids prices. Marketing and midstream revenue climbed 26 percent to $335 million in the most recent quarter.

 

Operating Costs and Expenses Mirror Growth
     Total operating costs and expenses, excluding a 2002 non-cash reduction of carrying value of oil and gas properties, increased 37 percent to $1.1 billion in the second quarter of 2003. The increases reflect Devon’s larger size and scope of operations following the merger with Ocean Energy. Marketing and midstream costs also increased due primarily to higher natural gas prices.
     The overall increase in second quarter 2003 general and administrative (G&A) expenses includes $20 million attributable to two items. The first was $12 million due to a change in the value of investments in certain compensation plans. This expense was partially offset by a related $7 million increase in other income. The second item was the one-time, $8 million cost of closing Devon’s office in The Woodlands, Texas. The company is consolidating its Houston-area operations into a single downtown location.
     Partially offsetting these expense increases was a decrease in interest expense. Interest expense decreased 12 percent to $130 million.
     Income tax expense was $233 million in the second quarter of 2003. This was a result of significantly higher pre-tax earnings in the period.
Cash Flow Before Balance Sheet Changes Doubles
     Cash flow before balance sheet changes climbed 101 percent to $890 million in the second quarter of 2003. As a result, Devon fully funded its second quarter capital expenditure requirements, repaid over $300 million of debt and increased cash on hand by $90 million. A reconciliation of cash flow before balance sheet changes is included in this news release.
Items Excluded from Published Estimates
     Devon’s reported net earnings include items of income and expense that are excluded by certain securities analysts in their published estimates of the company’s financial results. In the second quarter of 2003, such items and their effects upon reported earnings were as follows:

•	 	General and administrative expenses attributable to closing Devon’s office in The Woodlands, Texas, and to merger costs combined to decrease pre-tax earnings by $15 million ($10 million after tax).	
 		
•	 	Effects of changes in foreign currency exchange rates increased pre-tax net earnings by $29 million ($23 million after tax). This is primarily related to U.S. dollar denominated debt in Canada.	
 		
•	 	A change in fair value of financial instruments not associated with hedges decreased pre-tax net earnings by $1 million ($0.4 million after tax).	
In aggregate, these items increased net earnings by six cents per common share (six cents per diluted common share).
Ocean Energy Merger Pro Forma Information
     Devon’s 2003 merger with Ocean Energy, Inc., created the largest U.S.-based independent oil and gas producer. The merger was accounted for as a purchase of Ocean by

 

Devon on April 25. Therefore, Ocean’s operations were included in Devon’s second quarter 2003 results from April 25 through June 30, only. However, for comparative purposes, certain pro forma second quarter 2003 financial information is provided in this release. The pro forma information is presented as if Devon and Ocean had been merged on April 1, 2003.
Conference Call to be Webcast Today
     Devon will discuss its second quarter 2003 financial and operating results in a conference call webcast today. The webcast will begin at 10 a.m. Central Time (11 a.m. Eastern Time). The webcast may be accessed from Devon’s internet home page at www.devonenergy.com
This press release includes “forward-looking statements” as defined by the Securities and Exchange Commission. Such statements are those concerning the 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. These statements are based on certain assumptions made by the company based on its experience and perception of historical trends, current conditions, expected future developments and other factors it believes are appropriate in the circumstances. 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 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, inflation or lack of availability of goods and services, environmental risks, drilling risks and regulatory changes. 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.
     Devon Energy Corporation is an Oklahoma City-based independent energy company engaged in oil and gas exploration, production and property acquisitions. Devon is the largest U.S.-based independent oil and gas producer and is included in the S&P 500 Index. For more information about Devon, please visit our website at www.devonenergy.com.

 
DEVON ENERGY CORPORATION
UNAUDITED FINANCIAL INFORMATION

 	 	 	 	 	Quarter Ended June 30,	 	Six Months Ended June 30,	
PRODUCTION DATA	 		 		
(net of royalties)	 	2003	 	2002	 	2003 Pro Forma	 	2003	 	2002	
	 		 		 		 		 		
Total Period Production	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	Gas (Bcf)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	U.S.	 	 	147.8	 	 	 	126.7	 	 	 	157.7	 	 	 	265.6	 	 	 	247.0	 	
 	 	Canada	 	 	66.6	 	 	 	71.4	 	 	 	66.6	 	 	 	129.6	 	 	 	144.3	 	
 	 	Other International	 	 	1.3	 	 	 	—	 	 	 	2.0	 	 	 	1.3	 	 	 	—	 	
 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	 	 	Total Gas	 	 	215.7	 	 	 	198.1	 	 	 	226.3	 	 	 	396.5	 	 	 	391.3	 	
 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	Oil (MMBbls)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	U.S.	 	 	8.0	 	 	 	6.6	 	 	 	8.9	 	 	 	13.4	 	 	 	13.3	 	
 	 	Canada	 	 	3.2	 	 	 	4.0	 	 	 	3.2	 	 	 	6.6	 	 	 	8.7	 	
 	 	Other International	 	 	3.7	 	 	 	0.5	 	 	 	4.8	 	 	 	4.0	 	 	 	1.0	 	
 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	 	 	Total Oil	 	 	14.9	 	 	 	11.1	 	 	 	16.9	 	 	 	24.0	 	 	 	23.0	 	
 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	Natural Gas Liquids (MMBbls)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	U.S.	 	 	3.9	 	 	 	4.0	 	 	 	4.0	 	 	 	7.6	 	 	 	6.9	 	
 	 	Canada	 	 	1.2	 	 	 	1.3	 	 	 	1.2	 	 	 	2.5	 	 	 	2.9	 	
 	 	Other International	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	
 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	 	 	Total Natural Gas Liquids	 	 	5.1	 	 	 	5.3	 	 	 	5.2	 	 	 	10.1	 	 	 	9.8	 	
 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
Average Daily Production	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	Gas (MMcf)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	U.S.	 	 	1,624.2	 	 	 	1,392.3	 	 	 	1,733.0	 	 	 	1,467.7	 	 	 	1,364.8	 	
 	 	Canada	 	 	731.3	 	 	 	784.3	 	 	 	731.3	 	 	 	715.6	 	 	 	797.1	 	
 	 	Other International	 	 	14.8	 	 	 	—	 	 	 	22.4	 	 	 	7.5	 	 	 	—	 	
 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	 	 	Total Gas	 	 	2,370.3	 	 	 	2,176.6	 	 	 	2,486.7	 	 	 	2,190.8	 	 	 	2,161.9	 	
 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	Oil (MBbls)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	U.S.	 	 	87.7	 	 	 	72.9	 	 	 	97.5	 	 	 	74.2	 	 	 	73.7	 	
 	 	Canada	 	 	35.3	 	 	 	44.0	 	 	 	35.3	 	 	 	36.4	 	 	 	48.2	 	
 	 	Other International	 	 	40.6	 	 	 	4.8	 	 	 	52.3	 	 	 	22.0	 	 	 	5.1	 	
 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	 	 	Total Oil	 	 	163.6	 	 	 	121.7	 	 	 	185.1	 	 	 	132.6	 	 	 	127.0	 	
 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	Natural Gas Liquids (MBbls)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	U.S.	 	 	42.7	 	 	 	43.4	 	 	 	43.5	 	 	 	42.2	 	 	 	37.9	 	
 	 	Canada	 	 	13.5	 	 	 	14.5	 	 	 	13.5	 	 	 	13.9	 	 	 	16.0	 	
 	 	Other International	 	 	0.4	 	 	 	—	 	 	 	0.5	 	 	 	0.2	 	 	 	—	 	
 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	 	 	Total Natural Gas Liquids	 	 	56.6	 	 	 	57.9	 	 	 	57.5	 	 	 	56.3	 	 	 	53.9	 	
 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
Note: Pro forma information provided in the above and the following financial tables shows the pro forma effect of Devon’s merger with Ocean Energy as if the companies were combined on April 1, 2003. The merger occurred on April 25, 2003.

 
DEVON ENERGY CORPORATION
UNAUDITED FINANCIAL INFORMATION

 	 	 	 	Quarter Ended June 30,	 	Six Months Ended June 30,	
PRICE DATA	 		 		
Average Realized Prices (US$)	 	2003	 	2002	 	2003	 	2002	
	 		 		 		 		
Gas ($/Mcf)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	U.S.	 	$	4.68	 	 	$	2.97	 	 	$	4.70	 	 	$	2.75	 	
 	Canada	 	$	4.67	 	 	$	2.60	 	 	$	4.85	 	 	$	2.41	 	
 	Other International	 	$	3.45	 	 	 	—	 	 	$	3.45	 	 	 	—	 	
 	 	 	 		 	 	 		 	 	 		 	 	 		 	
 	 	All Gas	 	$	4.67	 	 	$	2.84	 	 	$	4.74	 	 	$	2.63	 	
Oil ($/Bbl)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	U.S.	 	$	27.42	 	 	$	22.32	 	 	$	28.46	 	 	$	20.81	 	
 	Canada	 	$	23.88	 	 	$	22.51	 	 	$	24.39	 	 	$	19.77	 	
 	Other International	 	$	22.45	 	 	$	23.40	 	 	$	23.00	 	 	$	21.88	 	
 	 	 	 		 	 	 		 	 	 		 	 	 		 	
 	 	All Oil	 	$	25.42	 	 	$	22.43	 	 	$	26.44	 	 	$	20.45	 	
Natural Gas Liquids ($/Bbl)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	U.S.	 	$	16.55	 	 	$	12.91	 	 	$	18.12	 	 	$	12.52	 	
 	Canada	 	$	21.98	 	 	$	15.72	 	 	$	23.67	 	 	$	14.03	 	
 	Other International	 	$	21.30	 	 	 	—	 	 	$	21.30	 	 	 	—	 	
 	 	 	 		 	 	 		 	 	 		 	 	 		 	
 	 	All Natural Gas Liquids	 	$	17.88	 	 	$	13.61	 	 	$	19.50	 	 	$	12.97	 	

 
DEVON ENERGY CORPORATION
UNAUDITED FINANCIAL INFORMATION

 	 	 	 	 	Quarter Ended June 30,	 	Six Months Ended June 30,	
 	 	 	 	 		 		
 	 	 	 	 	 	 	 	 	 	 	 	 	Pro Forma	 	 	 	 	 	 	 	 	
STATEMENT OF OPERATIONS DATA (US$)	 	 	 	 	 	 	 	 	 		 	 	 	 	 	 	 	 	
(in millions, except per share data)	 	2003	 	2002	 	2003	 	2003	 	2002	
	 		 		 		 		 		
Revenues:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	Oil sales	 	$	379	 	 	$	248	 	 	$	426	 	 	$	635	 	 	$	470	 	
 	Gas sales	 	 	1,007	 	 	 	562	 	 	 	1,056	 	 	 	1,881	 	 	 	1,028	 	
 	Natural gas liquids sales	 	 	92	 	 	 	72	 	 	 	94	 	 	 	199	 	 	 	127	 	
 	Marketing & midstream revenues	 	 	335	 	 	 	267	 	 	 	335	 	 	 	769	 	 	 	427	 	
 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	 	 	Total revenues	 	 	1,813	 	 	 	1,149	 	 	 	1,911	 	 	 	3,484	 	 	 	2,052	 	
Operating Costs and Expenses:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	Lease operating expenses	 	 	223	 	 	 	162	 	 	 	239	 	 	 	388	 	 	 	316	 	
 	Transportation costs	 	 	51	 	 	 	38	 	 	 	54	 	 	 	92	 	 	 	76	 	
 	Production taxes	 	 	51	 	 	 	33	 	 	 	53	 	 	 	98	 	 	 	55	 	
 	Marketing & midstream costs and expenses	 	 	277	 	 	 	222	 	 	 	277	 	 	 	633	 	 	 	347	 	
 	Depreciation, depletion and amortization of property & equipment	 	 	427	 	 	 	323	 	 	 	460	 	 	 	723	 	 	 	634	 	
 	Accretion of asset retirement obligation	 	 	9	 	 	 	—	 	 	 	9	 	 	 	16	 	 	 	—	 	
 	General & administrative expenses	 	 	93	 	 	 	54	 	 	 	100	 	 	 	142	 	 	 	104	 	
 	Expenses related to mergers	 	 	7	 	 	 	—	 	 	 	7	 	 	 	7	 	 	 	—	 	
 	Reduction of carrying value of oil & gas properties	 	 	—	 	 	 	651	 	 	 	—	 	 	 	—	 	 	 	651	 	
 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	 	Total operating costs and expenses	 	 	1,138	 	 	 	1,483	 	 	 	1,199	 	 	 	2,099	 	 	 	2,183	 	
Earnings (loss) from operations	 	 	675	 	 	 	(334	)	 	 	712	 	 	 	1,385	 	 	 	(131	)	
Other Income (Expenses):	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	Interest expense	 	 	(130	)	 	 	(148	)	 	 	(132	)	 	 	(260	)	 	 	(272	)	
 	Dividends on subsidiary’s preferred stock	 	 	(1	)	 	 	—	 	 	 	(1	)	 	 	(1	)	 	 	—	 	
 	Effects of changes in foreign currency rates	 	 	29	 	 	 	18	 	 	 	29	 	 	 	51	 	 	 	17	 	
 	Change in fair value of financial instruments	 	 	(1	)	 	 	24	 	 	 	(1	)	 	 	9	 	 	 	7	 	
 	Other income	 	 	17	 	 	 	6	 	 	 	17	 	 	 	25	 	 	 	21	 	
 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	 	Net other expenses	 	 	(86	)	 	 	(100	)	 	 	(88	)	 	 	(176	)	 	 	(227	)	
Earnings (loss) from continuing operations before income taxes and before cumulative effect of change in accounting principle	 	 	589	 	 	 	(434	)	 	 	624	 	 	 	1,209	 	 	 	(358	)	
Income tax expense (benefit):	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	Current	 	 	89	 	 	 	77	 	 	 	92	 	 	 	124	 	 	 	86	 	
 	Deferred	 	 	144	 	 	 	(305	)	 	 	154	 	 	 	309	 	 	 	(296	)	
 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	 	 	Total income tax expense (benefit)	 	 	233	 	 	 	(228	)	 	 	246	 	 	 	433	 	 	 	(210	)	
Earnings (loss) from continuing operations and before cumulative effect of change in accounting principle	 	 	356	 	 	 	(206	)	 	 	378	 	 	 	776	 	 	 	(148	)	
Discontinued Operations:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	Results of discontinued operations	 	 	—	 	 	 	104	 	 	 	—	 	 	 	—	 	 	 	112	 	
 	Income tax expense	 	 	—	 	 	 	2	 	 	 	—	 	 	 	—	 	 	 	6	 	
 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	 	 	Net results of discontinued operations	 	 	—	 	 	 	102	 	 	 	—	 	 	 	—	 	 	 	106	 	
Earnings (loss) before cumulative effect of change in accounting principle	 	 	356	 	 	 	(104	)	 	 	378	 	 	 	776	 	 	 	(42	)	
 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
Cumulative effect of change of accounting principle	 	 	—	 	 	 	—	 	 	 	—	 	 	 	16	 	 	 	-	 	
 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
Net Earnings (loss)	 	 	356	 	 	 	(104	)	 	 	378	 	 	 	792	 	 	 	(42	)	
Dividends on preferred stock	 	 	3	 	 	 	3	 	 	 	3	 	 	 	5	 	 	 	5	 	
 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
Net earnings (loss) applicable to common stockholders	 	$	353	 	 	$	(107	)	 	$	375	 	 	$	787	 	 	$	(47	)	
 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
Net earnings (loss) per average common share outstanding:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	Basic	 	$	1.67	 	 	$	(0.68	)	 	$	1.63	 	 	$	4.27	 	 	$	(0.31	)	
 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	Diluted	 	$	1.62	 	 	$	(0.68	)	 	$	1.58	 	 	$	4.11	 	 	$	(0.31	)	
 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
Weighted average shares outstanding:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	Basic	 	 	212	 	 	 	157	 	 	 	231	 	 	 	184	 	 	 	153	 	
 	Diluted	 	 	221	 	 	 	163	 	 	 	240	 	 	 	193	 	 	 	159	 	

 
DEVON ENERGY CORPORATION
UNAUDITED FINANCIAL INFORMATION

 	 	 	June 30,	 	Dec. 31,	
BALANCE SHEET DATA (US$ in millions)	 	2003	 	2002	
	 		 		
Total Assets	 	$	25,611	 	 	$	16,225	 	
 	Cash and cash equivalents	 	 	724	 	 	 	292	 	
 	Other current assets	 	 	1,115	 	 	 	772	 	
 	 	 		 	 	 		 	
 	Total current assets	 	 	1,839	 	 	 	1,064	 	
 	Property and equipment (net)	 	 	17,592	 	 	 	10,852	 	
 	Investment in ChevronTexaco Corporation common stock	 	 	512	 	 	 	472	 	
 	Goodwill, net of amortization	 	 	5,324	 	 	 	3,555	 	
 	Other assets	 	 	344	 	 	 	282	 	
Total Liabilities	 	$	15,959	 	 	$	11,572	 	
 	Current liabilities	 	 	2,210	 	 	 	1,042	 	
 	Other liabilities	 	 	419	 	 	 	341	 	
 	Debentures exchangeable into shares of ChevronTexaco Corporation common stock	 	 	669	 	 	 	662	 	
 	Senior convertible debentures	 	 	396	 	 	 	388	 	
 	Other long-term debt	 	 	7,434	 	 	 	6,512	 	
 	Deferred revenue	 	 	88	 	 	 	—	 	
 	Deferred income taxes	 	 	4,076	 	 	 	2,627	 	
 	Asset retirement obligation, long-term	 	 	612	 	 	 	—	 	
 	Preferred stock of subsidiary	 	 	55	 	 	 	—	 	
Stockholders’ Equity	 	$	9,652	 	 	$	4,653	 	
Total Liabilities & Stockholders’ Equity	 	$	25,611	 	 	$	16,225	 	
Common Shares Outstanding	 	 	232	 	 	 	157	 	
 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	Six Months Ended June 30,	
 	 	 	 	 		
STATEMENT OF CASH FLOWS DATA (US$ in millions)	 	2003	 	2002	
	 		 		
Cash Flows From Operating Activities	 	 	 	 	 	 	 	 	
 	 	Earnings (loss) from continuing operations	 	$	776	 	 	$	(148	)	
 	 	Depreciation, depletion and amortization of property and equipment	 	 	723	 	 	 	634	 	
 	 	Deferred income taxes	 	 	309	 	 	 	(296	)	
 	 	Reduction of carrying value of oil & gas properties	 	 	—	 	 	 	651	 	
 	 	Other	 	 	(50	)	 	 	(20	)	
 	 	Changes in assets and liabilities net of effects of acquisitions of businesses	 	 	8	 	 	 	34	 	
 	 	 	 	 		 	 	 		 	
 	 	 	Net cash provided by continuing operations	 	$	1,766	 	 	$	855	 	
 	Net cash provided by discontinued operations	 	 	—	 	 	 	33	 	
 	 	 	Net cash provided by operating activities	 	$	1,766	 	 	$	888	 	
Cash Flows From Investing Activities	 	 		 	 	 		 	
 	 	Proceeds from sales of property and equipment	 	 	31		 	 	1,036		
 	 	Capital expenditures	 	 	(1,100	)	 	 	(2,578	)	
 	 	Other	 	 	12	 	 	 	—	 	
 	 	 	 	 		 	 	 		 	
 	 	 	Net cash used in investing activities	 	$	(1,057	)	 	$	(1,542	)	
Cash Flows From Financing Activities	 	 	 	 	 	 	 	 	
 	 	 	Net cash (used in) provided by financing activities	 	$	(313	)	 	$	887	 	

 

DEVON ENERGY CORPORATION
UNAUDITED FINANCIAL INFORMATION
Non-GAAP Financial Measure
     The United States Securities and Exchange Commission has recently adopted new disclosure requirements for public companies such as Devon. One provision of these disclosure requirements concerns references to Non-GAAP financial measures. (GAAP refers to United States generally accepted accounting principles.) Non-GAAP financial measures may be provided if the company explains the relevance of the information. The company must also reconcile the Non-GAAP financial measure to related GAAP information. Cash flow before balance sheet changes is a Non-GAAP financial measure provided by Devon in this earnings release. Devon believes cash flow before balance sheet changes is relevant because it is a measure of cash available to fund the company’s capital expenditures and to service its debt. Cash flow before balance sheet changes is also important to certain financial analysts who provide estimates of Devon’s quarterly financial results to investors. 

Reconciliation to GAAP Information	 	Quarter Ended	 	Quarter Ended	
($ Millions)	 	June 30, 2003	 	June 30, 2002	
	 		 		
Net cash provided by operating activities	 	$	939	 	 	$	520	 	
Changes in assets and liabilities, net of effects of acquisitions of businesses	 	 	(49	)	 	 	(77	)	
Cash flow before balance sheet changes	 	$	890	 	 	$	443