DEVON ENERGY CORP/DE, 10-Q filed on 11/5/2014
Quarterly Report
Document And Entity Information
In Millions, unless otherwise specified
9 Months Ended
Sep. 30, 2014
Oct. 22, 2014
Document And Entity Information [Abstract]
 
 
Document Type
10-Q 
 
Document Period End Date
Sep. 30, 2014 
 
Amendment Flag
false 
 
Entity Registrant Name
DEVON ENERGY CORP/DE 
 
Entity Central Index Key
0001090012 
 
Current Fiscal Year End Date
--12-31 
 
Document Fiscal Year Focus
2014 
 
Entity Filer Category
Large Accelerated Filer 
 
Document Fiscal Period Focus
Q3 
 
Entity Common Stock, Shares Outstanding
 
409.1 
Consolidated Comprehensive Statements Of Earnings (USD $)
In Millions, except Per Share data, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2014
Sep. 30, 2013
Sep. 30, 2014
Sep. 30, 2013
Consolidated Comprehensive Statements Of Earnings [Abstract]
 
 
 
 
Oil, gas and NGL sales
$ 2,588 
$ 2,341 
$ 7,824 
$ 6,367 
Oil, gas and NGL derivatives
748 
(141)
29 
(95)
Marketing and midstream revenues
2,000 
514 
5,718 
1,501 
Total operating revenues
5,336 
2,714 
13,571 
7,773 
Lease operating expenses
584 
600 
1,764 
1,684 
Marketing and midstream operating expenses
1,781 
383 
5,092 
1,128 
General and administrative expenses
195 
143 
595 
460 
Production and property taxes
140 
115 
427 
353 
Depreciation, depletion and amortization
842 
691 
2,409 
2,069 
Asset impairments
 
 
1,960 
Restructuring costs
44 
50 
Gains and losses on asset sales
 
11 
(1,072)
11 
Other operating items
18 
27 
74 
82 
Total operating expenses
3,562 
1,981 
9,333 
7,797 
Operating income (loss)
1,774 
733 
4,238 
(24)
Net financing costs
116 
100 
359 
306 
Other nonoperating items
(6)
111 
(4)
Earnings (loss) before income taxes
1,654 
639 
3,768 
(326)
Income tax expense (benefit)
613 
210 
1,698 
(99)
Net earnings (loss)
1,041 
429 
2,070 
(227)
Net earnings attributable to noncontrolling interests
25 
 
55 
 
Net earnings (loss) attributable to Devon
1,016 
429 
2,015 
(227)
Net earnings (loss) per share attributable to Devon:
 
 
 
 
Basic
$ 2.48 
$ 1.06 
$ 4.94 
$ (0.57)
Diluted
$ 2.47 
$ 1.05 
$ 4.91 
$ (0.57)
Comprehensive earnings (loss):
 
 
 
 
Net earnings (loss)
1,041 
429 
2,070 
(227)
Other comprehensive earnings (loss), net of tax:
 
 
 
 
Foreign currency translation
(279)
173 
(285)
(281)
Pension and postretirement plans
10 
12 
Other comprehensive earnings (loss), net of tax
(277)
176 
(275)
(269)
Comprehensive earnings (loss)
764 
605 
1,795 
(496)
Comprehensive earnings attributable to noncontrolling interests
25 
 
55 
 
Comprehensive earnings (loss) attributable to Devon
$ 739 
$ 605 
$ 1,740 
$ (496)
Consolidated Statements Of Cash Flows (USD $)
In Millions, unless otherwise specified
9 Months Ended
Sep. 30, 2014
Sep. 30, 2013
Cash flows from operating activities:
 
 
Net earnings (loss)
$ 2,070 
$ (227)
Adjustments to reconcile net earnings (loss) to net cash from operating activities:
 
 
Depreciation, depletion and amortization
2,409 
2,069 
Gains and losses on asset sales
(1,072)
11 
Asset impairments
 
1,960 
Deferred income tax expense (benefit)
800 
(181)
Derivatives and other financial instruments
(43)
65 
Cash settlements on derivatives and financial instruments
(201)
147 
Other noncash charges
357 
195 
Net change in working capital
766 
(104)
Change in long-term other assets
(115)
(28)
Change in long-term other liabilities
47 
92 
Net cash from operating activities
5,018 
3,999 
Cash flows from investing activities:
 
 
Acquisitions of property, equipment and businesses
(6,255)
 
Capital expenditures
(5,013)
(5,219)
Proceeds from property and equipment divestitures
5,202 
316 
Purchases of short-term investments
 
(1,076)
Redemptions of short-term investments
 
3,419 
Redemptions of long-term investments
57 
 
Other
87 
83 
Net cash from investing activities
(5,922)
(2,477)
Cash flows from financing activities:
 
 
Proceeds from borrowings of long-term debt, net of issuance costs
4,158 
 
Net short-term debt repayments
(1,318)
(1,577)
Long-term debt repayments
(4,265)
 
Proceeds from stock option exercises
92 
Proceeds from issuance of subsidiary units
72 
 
Dividends paid on common stock
(287)
(259)
Distributions to noncontrolling interests
(187)
 
Other
(4)
Net cash from financing activities
(1,739)
(1,830)
Effect of exchange rate changes on cash
(15)
(9)
Net change in cash and cash equivalents
(2,658)
(317)
Cash and cash equivalents at beginning of period
6,066 
4,637 
Cash and cash equivalents at end of period
$ 3,408 
$ 4,320 
Consolidated Balance Sheets (USD $)
In Millions, unless otherwise specified
Sep. 30, 2014
Dec. 31, 2013
Current assets:
 
 
Cash and cash equivalents
$ 3,408 
$ 6,066 
Accounts receivable
2,009 
1,520 
Other current assets
556 
419 
Total current assets
5,973 
8,005 
Oil and gas, based on full-cost accounting:
 
 
Subject to amortization
73,733 
73,995 
Not subject to amortization
3,642 
2,791 
Total oil and gas
77,375 
76,786 
Other
9,204 
6,195 
Total property and equipment, at cost
86,579 
82,981 
Less accumulated depreciation, depletion and amortization
(51,410)
(54,534)
Property and equipment, net
35,169 
28,447 
Goodwill
8,310 
5,858 
Other long-term assets
1,387 
567 
Total assets
50,839 
42,877 
Current liabilities:
 
 
Accounts payable
1,344 
1,229 
Revenues and royalties payable
1,455 
786 
Short-term debt
1,898 1
4,066 1
Income taxes payable
651 
Other current liabilities
646 
573 
Total current liabilities
5,994 
6,655 
Long-term debt
10,161 
7,956 
Asset retirement obligations
1,348 
2,140 
Other long-term liabilities
926 
834 
Deferred income taxes
5,642 
4,793 
Stockholders' equity:
 
 
Common stock, $0.10 par value. Authorized 1.0 billion shares; issued 409 million and 406 million shares in 2014 and 2013, respectively
41 
41 
Additional paid-in capital
4,004 
3,780 
Retained earnings
17,138 
15,410 
Accumulated other comprehensive earnings
993 
1,268 
Total stockholders' equity attributable to Devon
22,176 
20,499 
Noncontrolling interests
4,592 
 
Total stockholders' equity
26,768 
20,499 
Commitments and contingencies (Note 17)
   
   
Total liabilities and stockholders' equity
$ 50,839 
$ 42,877 
[1] Short-term debt as of September 30, 2014 consists of $1.9 billion of senior notes that Devon intends to redeem in the fourth quarter of 2014 prior to their scheduled maturity date. The redemption includes the 2.4% $500 million senior note due 2016, the 1.2% $650 million senior note due 2016 and the 1.875% $750 million senior note due 2017 plus unpaid interest and a make-whole premium. The debt will be repaid with funds received as part of the divestiture program discussed in Note 2.Short-term debt as of December 31, 2013 consists of $2.25 billion of senior notes issued in conjunction with the GeoSouthern acquisition, $1.3 billion of commercial paper and $500 million of senior notes due January 15, 2014. Subsequent to the close of the GeoSouthern acquisition the $2.25 billion of senior notes were reclassified to long-term debt.
Consolidated Balance Sheets (Parenthetical) (USD $)
Sep. 30, 2014
Dec. 31, 2013
Consolidated Balance Sheets [Abstract]
 
 
Common stock, par value (in dollars per share)
$ 0.10 
$ 0.10 
Common stock, shares authorized (in shares)
1,000,000,000 
1,000,000,000 
Common stock, shares issued (in shares)
409,000,000 
406,000,000 
Consolidated Statements Of Stockholders' Equity (USD $)
In Millions
Common Stock [Member]
Additional Paid-In Capital [Member]
Retained Earnings [Member]
Accumulated Other Comprehensive Earnings [Member]
Treasury Stock [Member]
Noncontrolling Interests [Member]
Total
Balance, at Dec. 31, 2012
$ 41 
$ 3,688 
$ 15,778 
$ 1,771 
 
 
$ 21,278 
Balance, shares, at Dec. 31, 2012
406.0 
 
 
 
 
 
 
Net earnings (loss)
 
 
(227)
 
 
 
(227)
Other comprehensive loss, net of tax
 
 
 
(269)
 
 
(269)
Stock option exercises
 
 
 
 
 
Common stock repurchased
 
 
 
 
(9)
 
(9)
Common stock retired
 
(9)
 
 
 
 
Common stock dividends
 
 
(259)
 
 
 
(259)
Share-based compensation
 
92 
 
 
 
 
92 
Share-based compensation tax benefits
 
 
 
 
 
Balance, at Sep. 30, 2013
41 
3,777 
15,292 
1,502 
 
 
20,612 
Balance, shares, at Sep. 30, 2013
406.0 
 
 
 
 
 
 
Balance, at Dec. 31, 2013
41 
3,780 
15,410 
1,268 
 
 
20,499 
Balance, shares, at Dec. 31, 2013
406.0 
 
 
 
 
 
 
Net earnings (loss)
 
 
2,015 
 
 
55 
2,070 
Other comprehensive loss, net of tax
 
 
 
(275)
 
 
(275)
Stock option exercises
 
92 
 
 
 
 
92 
Stock option exercises, shares
 
 
 
 
 
 
Restricted stock grants, net of cancellations, shares
 
 
 
 
 
 
Common stock repurchased
 
 
 
 
(6)
 
(6)
Common stock retired
 
(6)
 
 
 
 
Common stock dividends
 
 
(287)
 
 
 
(287)
Share-based compensation
 
120 
 
 
 
 
120 
Share-based compensation tax benefits
 
 
 
 
 
Acquistion of noncontrolling interests
 
 
 
 
 
4,664 
4,664 
Subsidiary equity transactions
 
17 
 
 
 
55 
72 
Distributions to noncontrolling interests
 
 
 
 
 
(187)
(187)
Other
 
 
 
 
 
Balance, at Sep. 30, 2014
$ 41 
$ 4,004 
$ 17,138 
$ 993 
 
$ 4,592 
$ 26,768 
Balance, shares, at Sep. 30, 2014
409.0 
 
 
 
 
 
 
Summary Of Significant Accounting Policies
Summary Of Significant Accounting Policies

1.     Summary of Significant Accounting Policies 

 

The accompanying unaudited financial statements and notes of Devon Energy Corporation (“Devon”) have been prepared pursuant to the rules and regulations of the United States Securities and Exchange Commission. Pursuant to such rules and regulations, certain disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“U.S.”) have been omitted. The accompanying financial statements and notes should be read in conjunction with the financial statements and notes included in Devon's 2013 Annual Report on Form 10-K.  

 

The accompanying unaudited interim financial statements furnished in this report reflect all adjustments that are, in the opinion of management, necessary for a fair statement of Devon's results of operations and cash flows for the three-month and nine-month periods ended September 30, 2014 and 2013 and Devon's financial position as of September 30, 2014.

 

Basis of Presentation

 

The accompanying consolidated financial statements include the accounts of Devon and entities in which it holds a controlling interest. All intercompany transactions have been eliminated. Undivided interests in oil and natural gas exploration and production joint ventures are consolidated on a proportionate basis. Investments in non-controlled entities, over which Devon has the ability to exercise significant influence over operating and financial policies, are accounted for using the equity method. In applying the equity method of accounting, the investments are initially recognized at cost and subsequently adjusted for Devon’s proportionate share of earnings, losses and distributions. Investments accounted for using the equity method and cost method are reported as a component of other long-term assets.

 

As discussed more fully in Note 2, on March 7, 2014, Devon completed a business combination whereby Devon controls both EnLink Midstream Partners, LP (the “Partnership”) and its general partner entity, EnLink Midstream, LLC (“EnLink”). Devon controls both the Partnership’s and EnLink’s operations; therefore, the Partnership’s and EnLink’s accounts are included in Devon’s accompanying consolidated financial statements subsequent to the completion of the transaction. The portions of the Partnership’s and EnLink’s net earnings and stockholders’ equity not attributable to Devon’s controlling interest are shown separately as noncontrolling interests in the accompanying consolidated comprehensive statements of earnings and consolidated balance sheets.

 

Intangible Assets

 

EnLink’s long-term assets include intangible assets, consisting of customer relationships. These assets are amortized on a straight-line basis over the expected periods of benefits, which range from ten to twenty years.

 

Recently Issued Accounting Standards Not Yet Adopted

 

In May 2014, the FASB issued Accounting Standards Update 2014-09, Revenue from Contracts with Customers (Topic 606). The update provides guidance concerning the recognition and measurement of revenue from contracts with customers.  Its objective is to increase the usefulness of information in the financial statements regarding the nature, timing and uncertainty of revenues. The update is effective for Devon beginning on January 1, 2017. The standard permits the use of either the retrospective or cumulative effect transition method. Devon has not yet selected a transition method and is evaluating the impact this standard will have on its consolidated financial statements and related disclosures.

 

Acquisitions And Divestitures
Acquisitions And Divestitures

2.    Acquisitions and Divestitures

 

Formation of EnLink Midstream, LLC and EnLink Midstream Partners, LP

On March 7, 2014, Devon, Crosstex Energy, Inc. and Crosstex Energy, LP (together with Crosstex Energy, Inc., “Crosstex”) completed a business combination to combine substantially all of Devon’s U.S. midstream assets with Crosstex’s assets to form a new midstream business. The new business consists of the Partnership and EnLink, a master limited partnership and a general partner entity, respectively, which are both publicly traded entities. 

 

In exchange for a controlling interest in both EnLink and the Partnership, Devon contributed its equity interest in a newly formed Devon subsidiary, EnLink Midstream Holdings, LP (“EnLink Holdings”) and $100 million in cash. EnLink Holdings owns Devon’s midstream assets in the Barnett Shale in north Texas and the Cana and Arkoma Woodford Shales in Oklahoma, as well as Devon’s economic interest in Gulf Coast Fractionators in Mt. Belvieu, Texas. The Partnership and EnLink each own 50 percent of EnLink Holdings.

 

The ownership of EnLink is approximately:

 

 

 

 

 

 

 

70% - Devon

 

 

 

 

 

 

 

30% - Public unitholders

The ownership of the Partnership is approximately:

 

 

 

 

 

 

 

52% - Devon

 

 

 

 

 

 

 

41% - Public unitholders

 

 

 

 

 

 

 

7% - EnLink

 

This business combination was accounted for using the acquisition method of accounting. Under the acquisition method of accounting, EnLink Holdings was the accounting acquirer because its parent company, Devon, obtained control of EnLink and the Partnership as a result of the business combination. Consequently, EnLink Holdings’ assets and liabilities retained their carrying values. Additionally, the Crosstex assets acquired and liabilities assumed by the Partnership and EnLink in the business combination, as well as EnLink’s noncontrolling interest in the Partnership, were recorded at their fair values which were measured as of the acquisition date, March 7, 2014. The excess of the purchase price over the estimated fair values of Crosstex’s net assets acquired was recorded as goodwill.   

 

The following table summarizes the purchase price (in millions, except unit price).

 

 

 

 

 

 

 

Crosstex Energy, Inc. outstanding common shares:

 

 

 

 

Held by public shareholders

 

 

48.0 

 

Restricted shares

 

 

0.4 

 

Total subject to conversion

 

 

48.4 

 

Exchange ratio

 

 

1.0 

x

Converted shares

 

 

48.4 

 

Crosstex Energy, Inc. common share price (1)

 

$

37.60 

 

Crosstex Energy, Inc. consideration

 

$

1,823 

 

Fair value of noncontrolling interests in E2 (2) 

 

$

12 

 

Total Crosstex Energy, Inc. consideration and fair value of noncontrolling interests

 

$

1,835 

 

Partnership outstanding units:

 

 

 

 

Common units held by public unitholders

 

 

75.1 

 

Preferred units held by third party (3)

 

 

17.1 

 

Restricted units

 

 

0.4 

 

Total

 

 

92.6 

 

Partnership common unit price (4)

 

$

30.51 

 

Partnership common units value

 

$

2,825 

 

Partnership outstanding unit options value

 

$

 

Total fair value of noncontrolling interests in the Partnership (4)

 

$

2,829 

 

Total consideration and fair value of noncontrolling interests

 

$

4,664 

 

__________________________

 

(1) The final purchase price is based on the fair value of Crosstex Energy Inc.’s common shares as of the closing date, March 7, 2014.

(2) Represents the value of noncontrolling interests related to EnLink’s equity investment in E2 Energy Services, LLC and E2 Appalachian Compression, LLC (collectively “E2”).

(3) The Partnership converted the preferred units to common units in February 2014.

(4) The final purchase price is based on the fair value of the Partnership’s common shares as of the closing date, March 7, 2014.

 

The preliminary allocation of the purchase price is as follows (in millions):

 

 

 

 

 

 

Assets acquired:

 

 

 

Current assets

 

$

438 

Property, plant and equipment, net

 

 

2,438 

Intangible assets

 

 

547 

Equity investment

 

 

222 

Goodwill (1)

 

 

3,292 

Other long term assets

 

 

Liabilities assumed:

 

 

 

Current liabilities

 

 

(516)

Long-term debt

 

 

(1,454)

Deferred income taxes

 

 

(203)

Other long-term liabilities

 

 

(101)

Total consideration and fair value of noncontrolling interests

 

$

4,664 

__________________________

(1)  Goodwill is the excess of the consideration transferred over the net assets recognized and represents the future economic benefits arising from other assets acquired that could not be individually identified and separately recognized. Goodwill is not amortized and is not deductible for tax purposes. 

 

GeoSouthern Energy Acquisition

 

On November 20, 2013, Devon entered into a Purchase and Sale Agreement with GeoSouthern Energy Corporation (“GeoSouthern”) and a wholly owned subsidiary of GeoSouthern to acquire GeoSouthern’s interests in certain affiliates (the “Acquired Companies”) that own certain oil and gas properties, leasehold mineral interest and related assets located in the Eagle Ford Shale. On February 28, 2014, the GeoSouthern acquisition closed, and GeoSouthern transferred the Acquired Companies to Devon in exchange for the aggregate purchase price of approximately $6.0 billion. Devon funded the acquisition price with cash on hand and debt financing. In connection with the GeoSouthern acquisition, Devon acquired approximately 82,000 net acres located in DeWitt and Lavaca counties in south Texas. The transaction was accounted for using the acquisition method, which requires, among other things, that assets acquired and liabilities assumed be recognized at their fair values as of the acquisition date. The following table summarizes the preliminary allocation of the purchase price to the assets acquired and liabilities assumed in the transaction (in millions).

 

 

 

 

 

 

Cash and cash equivalents

 

$

95 

Other current assets

 

 

256 

Proved properties

 

 

5,029 

Unproved properties

 

 

1,008 

Midstream assets

 

 

85 

Current liabilities

 

 

(437)

Long-term liabilities

 

 

(6)

Net assets acquired

 

$

6,030 

 

EnLink and GeoSouthern Operating Results

 

The following table presents EnLink’s (acquired Crosstex operations) and GeoSouthern’s operating revenues and net earnings included in Devon’s consolidated statements of earnings subsequent to the transactions described above.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended September 30, 2014

 

Nine Months Ended September 30, 2014

 

 

GeoSouthern

 

EnLink

 

GeoSouthern

 

EnLink

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(In millions)

 

(In millions)

Total operating revenues

 

$

634 

 

$

700 

 

$

1,374 

 

$

1,670 

Total operating expenses

 

 

322 

 

 

692 

 

 

708 

 

 

1,654 

Operating income

 

$

312 

 

$

 

$

666 

 

$

16 

 

Pro Forma Financial Information

 

The following unaudited pro forma financial information has been prepared assuming both the EnLink formation and the GeoSouthern acquisition occurred on January 1, 2013. The pro forma information is not intended to reflect the actual results of operations that would have occurred if the business combination and acquisition had been completed at the dates indicated. In addition, they do not project Devon’s results of operations for any future period.

 

 

 

 

 

 

 

 

 

 

 

Nine Months Ended September 30,

 

 

2014

 

2013

 

 

 

 

 

 

 

 

 

(In millions)

Total operating revenues

 

$

14,218 

 

$

9,603 

 

 

 

 

 

 

 

Net earnings (loss)

 

$

2,109 

 

$

(192)

Noncontrolling interests

 

$

68 

 

$

32 

Net earnings (loss) attributable to Devon

 

$

2,041 

 

$

(224)

Net earnings (loss) per common share attributable to Devon

 

$

4.98 

 

$

(0.55)

 

Partnership Acquisitions and Dropdowns 

 

Effective November 1, 2014, the Partnership acquired Gulf Coast natural pipeline assets predominantly located in southern Louisiana for $235 million, subject to certain adjustments. Furthermore, in October 2014, the Partnership acquired equity interests in E2 Appalachian Compression, LLC and E2 Energy Services, LLC (together “E2”) from EnLink. The total consideration for the transaction was approximately $193 million, including a $163 million cash payment and 1.0 million Partnership units valued at $30 million based on the fair value of the Partnership’s units as of the closing date of the transaction.

 

Non-Core Asset Divestitures

 

In November 2013, Devon announced plans to divest certain non-core properties located throughout Canada and the U.S.

 

Canada

 

In the first quarter of 2014, Devon completed minor divestiture transactions for $142 million ($155 million Canadian dollars). In the second quarter of 2014, Devon sold conventional assets to Canadian Natural Resources Limited for $2.8 billion ($3.125 billion Canadian dollars).

 

Under full-cost accounting rules, sales or dispositions of oil and gas properties are generally accounted for as adjustments to capitalized costs, with no recognition of gain or loss. However, if not recognizing a gain or loss on the disposition would otherwise significantly alter the relationship between a cost center’s capitalized costs and proved reserves, then a gain or loss must be recognized. The Canadian divestitures significantly altered such relationship. Therefore, Devon recognized gains totaling $1.1 billion ($0.6 billion after-tax) in 2014 associated with these transactions.  These gains are included as a separate item in the accompanying consolidated comprehensive statements of earnings.

 

Included in the gain calculation noted above were asset retirement obligations of approximately $700 million assumed by the purchaser as well as the derecognition of approximately $700 million of goodwill allocated to the sold assets.

 

In conjunction with the divestitures noted above, Devon repatriated approximately $2.8 billion of proceeds to the U.S. in the second quarter of 2014.  The proceeds were used to repay $0.7 billion of commercial paper and the $2.0 billion term loans that were drawn in the first quarter of 2014 to fund a portion of the GeoSouthern acquisition. Between collecting the divestiture proceeds and repatriating funds to the U.S., Devon recognized an $84 million foreign currency exchange loss and a $29 million foreign currency derivative loss. These losses are included in other nonoperating items in the accompanying consolidated comprehensive statements of earnings.

 

U.S.

 

On August 29, 2014, Devon sold its U.S. non-core assets to LINN Energy for $2.3 billion ($1.7 billion after-tax proceeds). Additionally, approximately $200 million of asset retirement obligations were assumed by LINN Energy. No gain or loss was recognized on the sale. 

 

Derivative Financial Instruments
Derivative Financial Instruments

3.     Derivative Financial Instruments

 

Objectives and Strategies

 

Devon periodically enters into derivative financial instruments with respect to a portion of its oil, gas and NGL production. These instruments are used to manage the inherent uncertainty of future revenues due to commodity price volatility and typically include financial price swaps, basis swaps, costless price collars and call options. Devon periodically enters into interest rate swaps to manage its exposure to interest rate volatility. Devon periodically enters into foreign exchange forward contracts to manage its exposure to fluctuations in exchange rates. Additionally, EnLink manages its exposure to fluctuations in commodity prices by hedging the impact of market fluctuations.

 

Devon does not intend to hold or issue derivative financial instruments for speculative trading purposes and has elected not to designate any of its derivative instruments for hedge accounting treatment.

 

Counterparty Credit Risk

 

By using derivative financial instruments, Devon is exposed to credit risk. Credit risk is the failure of the counterparty to perform under the terms of the derivative contract. To mitigate this risk, the hedging instruments are placed with a number of counterparties whom Devon believes are acceptable credit risks. It is Devon's policy to enter into derivative contracts only with investment grade rated counterparties deemed by management to be competent and competitive market makers. Additionally, Devon's derivative contracts contain provisions that provide for collateral payments, depending on levels of exposure and the credit rating of the counterparty.

 

As of September 30, 2014, Devon held $31 million of cash collateral which represented the estimated fair value of certain derivative positions in excess of Devon’s credit guidelines. The collateral is reported in other current liabilities in the accompanying balance sheet.

 

Commodity Derivatives

 

As of September 30, 2014, Devon had the following open oil derivative positions. The first table presents Devon’s oil derivatives that settle against the average of the prompt month NYMEX West Texas Intermediate futures price. The second table presents Devon’s oil derivatives that settle against the Western Canadian Select index.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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)

Q4 2014 

 

75,000

 

$

94.14

 

64,750

 

$

89.33

 

$

100.00

 

42,000

 

$

116.43

Q1-Q4 2015

 

106,736

 

$

91.22

 

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)

Q4 2014

 

Western Canadian Select

 

50,000

 

$

(17.40)

Q1-Q4 2015 

 

Western Canadian Select

 

14,890

 

$

(18.92)

 

As of September 30, 2014, Devon had the following open natural gas derivative positions. The first table presents Devon’s natural gas derivatives that settle against the Inside FERC first of the month Henry Hub index. The second table presents Devon’s natural gas derivatives that settle against the AECO and PEPL indices.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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)

Q4 2014 

 

800,000

 

$

4.42

 

460,000

 

$

4.03

 

$

4.51

 

500,000

 

$

5.00

Q1-Q4 2015

 

210,000

 

$

4.38

 

260,000

 

$

4.05

 

$

4.36

 

550,000

 

$

5.09

Q1-Q4 2016

 

 

$

 

 

$

 

$

 

400,000

 

$

5.00

 

 

 

 

 

 

 

 

 

 

 

 

 

Natural Gas Basis Swaps

Period

 

Index

 

Volume (MMBtu/d)

 

Weighted Average Differential to Henry Hub ($/MMBtu)

Q4 2014

 

AECO

 

94,781

 

$

(0.52)

Q1-Q4 2015

 

PEPL

 

100,000

 

$

(0.28)

 

 

Interest Rate Derivatives

 

    As of September 30, 2014, Devon had the following open interest rate derivative positions:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Notional

 

Rate Received

 

Rate Paid

 

Expiration

(In millions)

 

 

 

 

 

 

$

100

 

Three Month LIBOR

 

0.92%

 

December 2016

$

100

 

1.76%

 

Three Month LIBOR

 

January 2019

 

 

Foreign Currency Derivatives

 

As of September 30, 2014, Devon had the following open foreign currency derivative positions:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Forward Contract

Currency

 

Contract Type

 

CAD Notional

 

Weighted Average Fixed Rate Received

 

Expiration

 

 

 

 

(In millions)

 

(CAD-USD)

 

 

Canadian Dollar

 

Sell

 

$

1,312 

 

0.899

 

December 2014

 

Financial Statement Presentation

 

The following table presents the net gains and losses recognized in the accompanying comprehensive statements of earnings associated with derivative financial instruments.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Comprehensive Statements of

 

Three Months Ended
September 30,

 

Nine Months Ended
September 30,

 

 

Earnings Caption

 

2014

 

2013

 

2014

 

2013

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(In millions)

Commodity derivatives

 

Oil, gas and NGL derivatives

 

$

748 

 

$

(141)

 

$

29 

 

$

(95)

EnLink commodity derivatives

 

Marketing and midstream revenues

 

 

 

 

 —

 

 

(2)

 

 

 —

Interest rate derivatives

 

Other nonoperating items

 

 

 —

 

 

 

 

 

 

Foreign currency derivatives

 

Other nonoperating items

 

 

55 

 

 

(28)

 

 

15 

 

 

29 

Net gains (losses) recognized in comprehensive statements of earnings

 

$

804 

 

$

(168)

 

$

43 

 

$

(65)

 

 

The following table presents the derivative fair values included in the accompanying balance sheets.

   

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance Sheet Caption

 

September 30, 2014

 

December 31, 2013

 

 

 

 

 

 

 

 

 

 

 

 

 

(In millions)

Asset derivatives:

 

 

 

 

 

 

 

 

Commodity derivatives

 

Other current assets

 

$

231 

 

$

75 

Commodity derivatives

 

Other long-term assets

 

 

66 

 

 

28 

EnLink commodity derivatives

 

Other current assets

 

 

 

 

 —

Interest rate derivatives

 

Other current assets

 

 

 

 

 —

Foreign currency derivatives

 

Other current assets

 

 

11 

 

 

 —

Total asset derivatives

 

 

 

$

310 

 

$

103 

Liability derivatives:

 

 

 

 

 

 

 

 

Commodity derivatives

 

Other current liabilities

 

$

30 

 

$

58 

Commodity derivatives

 

Other long-term liabilities

 

 

50 

 

 

62 

EnLink commodity derivatives

 

Other current liabilities

 

 

 

 

 —

EnLink commodity derivatives

 

Other long-term liabilities

 

 

 

 

 —

Interest rate derivatives

 

Other current liabilities

 

 

 

 

 —

Interest rate derivatives

 

Other long-term liabilities

 

 

 

 

 —

Foreign currency derivatives

 

Other current liabilities

 

 

 —

 

 

Total liability derivatives

 

 

 

$

84 

 

$

121 

 

 

Share-Based Compensation
Share-Based Compensation

4.     Share-Based Compensation

 

The following table presents the effects of share-based compensation included in Devon’s accompanying comprehensive statements of earnings. Devon’s gross general and administrative expense for the first nine months of 2014 includes $11 million of unit-based compensation related to grants made under EnLink’s long-term incentive plans.

 

The vesting for certain share-based awards was accelerated in the first quarter of 2014 in conjunction with the divestiture of Devon’s Canadian conventional assets. The associated expense for these accelerated awards is included in restructuring costs in the accompanying comprehensive statements of earnings. See Note 6 for further details.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nine Months Ended September 30,

 

 

2014

 

2013

 

 

 

 

 

 

 

 

 

(In millions)

Gross general and administrative expense

 

$

155 

 

$

118 

Share-based compensation expense capitalized pursuant to the

 

 

 

 

 

 

 full-cost method of accounting for oil and gas properties

 

$

40 

 

$

44 

Related income tax benefit

 

$

20 

 

$

17 

 

Under its 2009 Long-Term Incentive Plan, as amended, Devon granted share-based awards to certain employees in the first nine months of 2014. The following sections include information related to these awards.

 

Restricted Stock Awards and Units

 

The following table presents a summary of Devon's unvested restricted stock awards and units.

 

 

 

 

 

 

 

 

 

 

 

Restricted Stock Award & Units

 

Weighted Average Grant-Date Fair Value

 

 

 

(In thousands)

 

 

 

Unvested at December 31, 2013

 

 

3,292 

 

$

59.76 

 Granted

 

 

3,412 

 

$

63.53 

 Vested

 

 

(558)

 

$

60.65 

 Forfeited

 

 

(607)

 

$

60.96 

Unvested at September 30, 2014

 

 

5,539 

 

$

61.73 

 

 

 

 

 

 

 

 

As of September 30, 2014, Devon's unrecognized compensation cost related to unvested restricted stock awards and units was $225 million. Such cost is expected to be recognized over a weighted-average period of 2.4 years.

 

Performance Based Restricted Stock Awards

 

The following table presents a summary of Devon's performance based restricted stock awards.

 

 

 

 

 

 

 

 

 

 

 

Performance Restricted Stock Awards

 

Weighted Average Grant-Date Fair Value

 

 

 

(In thousands)

 

 

 

Unvested at December 31, 2013

 

 

316 

 

$

56.25 

 Granted

 

 

234 

 

$

61.33 

 Vested

 

 

(75)

 

$

53.45 

Unvested at September 30, 2014

 

 

475 

 

$

59.20 

 

As of September 30, 2014, Devon's unrecognized compensation cost related to these awards was $7 million. Such cost is expected to be recognized over a weighted-average period of 1.4 years.

 

Performance Share Units  

 

The following table presents a summary of the grant-date fair values of performance share units granted in 2014 and the related assumptions.

 

 

 

 

 

 

 

 

 

2014

 

 

 

 

 

 

 

 

Grant-date fair value

$

70.18 

-

$

81.05 

 

Risk-free interest rate

 

 

 

 

0.54% 

 

Volatility factor

 

 

 

 

28.8% 

 

Contractual term (in years)

 

 

 

 

2.89 

 

 

 

 

The following table presents a summary of Devon’s performance share units.

 

 

 

 

 

 

 

 

 

 

 

Performance Share Units

 

Weighted Average Grant-Date Fair Value

 

 

 

(In thousands)

 

 

 

Unvested at December 31, 2013

 

 

925 

 

$

66.64 

 Granted

 

 

708 

 

$

77.77 

 Forfeited

 

 

(147)

 

$

77.25 

Unvested at September 30, 2014 (1)

 

 

1,486 

 

$

70.89 

____________________________

(1)

A maximum of 3.0 million common shares could be awarded based upon Devon’s final total shareholder return ranking.

 

As of September 30, 2014, Devon's unrecognized compensation cost related to unvested units was $40 million. Such cost is expected to be recognized over a weighted-average period of 1.6 years.

 

Asset Impairments
Asset Impairments

5.     Asset Impairments

 

In the first nine months of 2013, Devon recognized asset impairments related to its oil and gas property and equipment as presented below.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nine Months Ended September 30, 2013

 

Gross

 

Net of Taxes

 

 

 

 

 

 

 

 

(In millions)

U.S. oil and gas assets

$

1,110 

 

$

707 

Canada oil and gas assets

 

843 

 

 

632 

Midstream assets

 

 

 

Total asset impairments

$

1,960 

 

$

1,343 

 

Oil and Gas Impairments 

 

 Under the full-cost method of accounting, capitalized costs of oil and gas properties, net of accumulated DD&A and deferred income taxes, may not exceed the full-cost “ceiling” at the end of each quarter. The ceiling is calculated separately for each country and is based on the present value of estimated future net cash flows from proved oil and gas reserves, discounted at 10 percent per annum, net of related tax effects. Estimated future net cash flows are calculated using end-of-period costs and an unweighted arithmetic average of commodity prices in effect on the first day of each of the previous 12 months.  

 

The oil and gas impairments resulted primarily from declines in the U.S. and Canada full-cost ceilings. The lower ceiling values resulted primarily from decreases in the 12-month average trailing prices for oil, bitumen and NGLs, which reduced proved reserve values.

 

Midstream Impairments 

 

 In the third quarter of 2013, Devon determined that the carrying amounts of certain midstream facilities located in south and east Texas were not recoverable from estimated future cash flows due to declining natural gas production. Consequently, the assets were written down to their estimated fair values, which were determined using discounted cash flow models. The fair value of Devon’s midstream assets is considered a Level 3 fair value measurement.

 

Restructuring Costs
Restructuring Costs

6.     Restructuring Costs

 

Canadian Divestitures

 

In the first nine months of 2014, Devon recognized $44 million of employee related and other costs associated with its Canadian non-core asset divestitures. Approximately $15 million of the employee related costs resulted from accelerated vesting of share-based grants, which are non-cash charges.

 

Office Consolidation

 

In October 2012, Devon announced plans to consolidate its U.S. personnel into a single operations group centrally located at the company’s headquarters in Oklahoma City. As of December 31, 2013, Devon had completed this initiative and incurred $134 million of restructuring costs associated with the office consolidation.

 

Financial Statement Presentation

 

The schedule below summarizes restructuring costs presented in the accompanying comprehensive statements of earnings related to the Canadian divestitures and office consolidation.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months

 

Nine Months

 

Ended September 30,

 

Ended September 30,

 

2014

 

2013

 

2014

 

2013

 

 

 

 

 

 

 

 

 

 

 

 

 

(In millions)

Canada divestitures:

 

 

 

 

 

 

 

 

 

 

 

Employee related and other costs

$

 

$

 —

 

$

44 

 

$

 —

Office consolidation:

 

 

 

 

 

 

 

 

 

 

 

Lease obligations and other

 

 —

  

 

  

 

 —

  

 

50 

Restructuring costs

$

  

$

  

$

44 

  

$

50 

 

 

The schedule below summarizes Devon’s restructuring liabilities. 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other

 

Other

 

 

 

 

 

Current

 

Long-Term

 

 

 

 

 

Liabilities

 

Liabilities

 

Total

 

 

 

 

 

 

 

 

 

 

 

  

(In millions)

Balance as of December 31, 2013

  

$

27 

 

$

18 

 

$

45 

Changes due to Canadian divestitures

  

 

 

 

 

 

Changes due to office consolidation

  

 

(22)

 

 

(1)

 

 

(23)

Changes due to offshore divestiture

 

 

(2)

 

 

(1)

 

 

(3)

Balance as September 30, 2014

 

$

 

$

18 

 

$

23 

 

 

 

 

 

 

 

 

 

 

Balance as of December 31, 2012

  

$

52 

 

$

 

$

61 

Changes due to office consolidation

 

 

(16)

 

 

11 

 

 

(5)

Changes due to offshore divestiture

  

 

(2)

 

 

(1)

 

 

(3)

Balance as of September 30, 2013

  

$

34 

  

$

19 

  

$

53 

 

Income Taxes
Income Taxes

7.     Income Taxes

 

The following table presents Devon’s total income tax expense (benefit) and a reconciliation of its effective income tax rate to the U.S. statutory income tax rate.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

 

 

 

2014

 

2013

 

2014

 

2013

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total income tax expense (benefit) (in millions)

 

$

613 

 

$

210 

 

$

1,698 

 

$

(99)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. statutory income tax rate

 

 

35% 

 

 

35% 

 

 

35% 

 

 

(35%)

 

Repatriations

 

 

 —

 

 

 —

 

 

7% 

 

 

 —

 

State income taxes

 

 

2% 

 

 

1% 

 

 

1% 

 

 

(3%)

 

Taxation on Canadian operations

 

 

 —

 

 

(5%)

 

 

1% 

 

 

9% 

 

Taxes on EnLink formation

 

 

 —

 

 

 —

 

 

1% 

 

 

 —

 

Other

 

 

 —

 

 

2% 

 

 

 —

 

 

(1%)

 

Effective income tax rate

 

 

37% 

 

 

33% 

 

 

45% 

 

 

(30%)

 

 

In the third quarter of 2014, Devon completed its U.S. non-core asset divestiture program. In conjunction with the divestiture closing, Devon recognized $543 million of current income tax expense. The current tax expense was entirely offset by the recognition of deferred tax benefits.

 

In the second quarter of 2014, Devon recognized $247 million of additional income tax expense related to the $2.8 billion of repatriations to the U.S. Prior to the repatriation, Devon had recognized a $143 million deferred income tax liability associated with the planned repatriation. When the repatriation was made, Devon retained a larger property basis in Canada than was previously estimated, resulting in the incremental tax in the second quarter.

 

In the first quarter of 2014, Devon recorded a $48 million deferred tax liability in conjunction with the formation of EnLink, which impacted the effective tax rate as reflected in the table above.

 

In the second quarter of 2013, Devon repatriated to the U.S. $2.0 billion of cash from its foreign subsidiaries. In conjunction with the repatriation, Devon recognized approximately $100 million of current income tax expense. The current expense was entirely offset by the recognition of deferred income tax benefits, which included the reduction of the deferred tax liability previously recognized for unremitted foreign earnings deemed not to be indefinitely reinvested.

 

Earnings (Loss) Per Share Attributable To Devon
Earnings (Loss) Per Share

8.     Earnings (Loss) Per Share Attributable to Devon

 

The following table reconciles net earnings (loss) attributable to Devon and common shares outstanding used in the calculations of basic and diluted earnings per share.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  

 

 

 

Common

 

Earnings (loss)

 

 

Earnings (loss)

 

Shares

 

per  Share

 

 

 

 

 

 

 

 

 

 

 

  

(In millions, except per share amounts)

 

  

 

 

 

 

 

 

 

 

Three Months Ended September 30, 2014:

  

 

 

 

 

 

 

 

 

Net earnings attributable to Devon

  

$

1,016 

 

 

409 

 

 

 

Attributable to participating securities

  

 

(11)

 

 

(4)

 

 

 

Basic earnings per share

  

 

1,005 

 

 

405 

 

$

2.48 

Dilutive effect of potential common shares issuable

  

 

 -

 

 

 

 

 

Diluted earnings per share

  

$

1,005 

 

 

407 

 

$

2.47 

 

  

 

 

 

 

 

 

 

 

Three Months Ended September 30, 2013:

  

 

 

 

 

 

 

 

 

Net earnings attributable to Devon

  

$

429 

 

 

406 

 

 

 

Attributable to participating securities

  

 

(4)

 

 

(4)

 

 

 

Basic earnings per share

  

 

425 

 

 

402 

 

$

1.06 

Dilutive effect of potential common shares issuable

  

 

 -

 

 

 

 

 

Diluted earnings per share

  

$

425 

 

 

403 

 

$

1.05 

 

  

 

 

 

 

 

 

 

 

Nine Months Ended September 30, 2014:

  

 

 

 

 

 

 

 

 

Net earnings attributable to Devon

  

$

2,015 

 

 

408 

 

 

 

Attributable to participating securities

  

 

(20)

 

 

(4)

 

 

 

Basic earnings per share

  

 

1,995 

 

 

404 

 

$

4.94 

Dilutive effect of potential common shares issuable

  

 

 -

 

 

 

 

 

Diluted earnings per share

  

$

1,995 

 

 

406 

 

$

4.91 

 

  

 

 

 

 

 

 

 

 

Nine Months Ended September 30, 2013:

  

 

 

 

 

 

 

 

 

Net loss attributable to Devon

  

$

(227)

 

 

406 

 

 

 

Attributable to participating securities

  

 

(2)

 

 

(4)

 

 

 

Basic loss per share

  

 

(229)

 

 

402 

 

$

(0.57)

Dilutive effect of potential common shares issuable

  

 

 -

 

 

 -

 

 

 

Diluted loss per share

  

$

(229)

 

 

402 

 

$

(0.57)

 

Certain options to purchase shares of Devon's common stock are excluded from the dilution calculation because the options are antidilutive. During the three-month and nine-month periods ended September 30, 2014, 1.1 million shares and 3.2 million shares, respectively, were excluded from the diluted earnings per share calculations. During the three-month and nine-month periods ended September 30, 2013, 7.5 million shares and 7.6 million shares, respectively, were excluded from the diluted earnings per share calculations. 

 

Other Comprehensive Earnings
Other Comprehensive Earnings

9.     Other Comprehensive Earnings 

 

Components of other comprehensive earnings consist of the following:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Nine Months Ended

 

 

September 30,

 

September 30,

 

 

2014

 

2013

 

2014

 

2013

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(In millions)

Foreign currency translation:

 

 

 

 

 

 

 

 

 

 

 

 

Beginning accumulated foreign currency translation

 

$

1,442 

 

$

1,542 

 

$

1,448 

 

$

1,996 

Change in cumulative translation adjustment

 

 

(299)

 

 

182 

 

 

(306)

 

 

(294)

Income tax benefit (expense)

 

 

20 

 

 

(9)

 

 

21 

 

 

13 

Ending accumulated foreign currency translation

 

 

1,163 

 

 

1,715 

 

 

1,163 

 

 

1,715 

Pension and postretirement benefit plans:

 

 

 

 

 

 

 

 

 

 

 

 

Beginning accumulated pension and postretirement benefits

 

 

(172)

 

 

(216)

 

 

(180)

 

 

(225)

Recognition of net actuarial loss and prior service cost in earnings (1)

 

 

 

 

 

 

15 

 

 

18 

Income tax expense

 

 

(2)

 

 

(3)

 

 

(5)

 

 

(6)

Ending accumulated pension and postretirement benefits

 

 

(170)

 

 

(213)

 

 

(170)

 

 

(213)

Accumulated other comprehensive earnings, net of tax

 

$

993 

 

$

1,502 

 

$

993 

 

$

1,502 

__________________________

(1)  These accumulated other comprehensive earnings components are included in the computation of net periodic benefit cost, which is a component of general and administrative expenses on the accompanying comprehensive statements of earnings (see Note 15 for additional details).

  

Supplemental Information To Statements Of Cash Flows
Supplemental Information To Statements Of Cash Flows

 

 

10.     Supplemental Information to Statements of Cash Flows

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nine Months Ended September 30,

 

 

2014

 

2013

 

 

 

 

 

 

 

 

 

(In millions)

Net change in working capital accounts:

 

 

 

 

 

 

Accounts receivable

 

$

(25)

 

$

(287)

Other current assets

 

 

(120)

 

 

72 

Accounts payable

 

 

(118)

 

 

127 

Income taxes payable

 

 

704 

 

 

Revenues and royalties payable

 

 

381 

 

 

56 

Other current liabilities

 

 

(56)

 

 

(79)

Net change in working capital

 

$

766 

 

$

(104)

 

 

 

 

 

 

 

Interest paid (net of capitalized interest)

 

$

355 

 

$

342 

Income taxes paid (received)

 

$

214 

 

$

(2)

 

    On March 7, 2014, Devon completed a business combination to form EnLink. With the exception of a $100 million cash payment to noncontrolling interests, the business combination was a non-monetary transaction. See Note 2 for additional details.

 

 

Accounts Receivable
Accounts Receivable

11.    Accounts Receivable

 

The components of accounts receivable include the following:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

September 30, 2014

 

December 31, 2013

 

 

 

 

 

 

 

(In millions)

Oil, gas and NGL sales

$

899 

 

$

851 

Joint interest billings

 

393 

 

 

447 

Marketing and midstream revenues

 

674 

 

 

172 

Other

 

54 

 

 

61 

Gross accounts receivable

 

2,020 

 

 

1,531 

Allowance for doubtful accounts

 

(11)

 

 

(11)

Net accounts receivable

$

2,009 

 

$

1,520 

 

Goodwill
Goodwill

12.    Goodwill 

 

The table below provides a summary of Devon’s goodwill, by assigned reporting unit.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

September 30, 2014

 

December 31, 2013

 

 

 

 

 

 

 

 

 

(In millions)

U.S.

 

$

2,618 

 

$

2,618 

Canada

 

 

1,997 

 

 

2,838 

EnLink

 

 

3,695 

 

 

402 

Total

 

$

8,310 

 

$

5,858 

 

 The changes to Devon’s goodwill during the first nine months of 2014 relate to both EnLink and Canada. Included in the assets Devon contributed to EnLink Holdings was $402 million of goodwill. The additional EnLink goodwill of $3.3 billion represents the goodwill recognized on the EnLink transaction described in Note 2.

 

The decrease in Devon’s Canadian goodwill was primarily due to goodwill that was derecognized upon the asset divestitures described in Note 2.

 

Debt
Debt

13.    Debt  

 

 

 

 

 

 

 

 

 

 

 

 

 

September 30, 2014

 

December 31, 2013

 

 

 

 

 

 

 

(In millions)

Devon debt

 

 

 

 

 

Commercial paper

$

 -

 

$

1,317 

5.625% due January 15, 2014

 

 -

 

 

500 

Floating rate due December 15, 2015

 

500 

 

 

500 

2.40% due July 15, 2016

 

500 

 

 

500 

Floating rate due December 15, 2016

 

350 

 

 

350 

1.20% due December 15, 2016

 

650 

 

 

650 

1.875% due May 15, 2017

 

750 

 

 

750 

8.25% due July 1, 2018

 

125 

 

 

125 

2.25% due December 15, 2018

 

750 

 

 

750 

6.30% due January 15, 2019

 

700 

 

 

700 

4.00% due July 15, 2021

 

500 

 

 

500 

3.25% due May 15, 2022

 

1,000 

 

 

1,000 

7.50% due September 15, 2027

 

150 

 

 

150 

7.875% due September 30, 2031

 

1,250 

 

 

1,250 

7.95% due April 15, 2032

 

1,000 

 

 

1,000 

5.60% due July 15, 2041

 

1,250 

 

 

1,250 

4.75% due May 15, 2042

 

750 

 

 

750 

Net discount on debentures and notes

 

(20)

 

 

(20)

Total Devon debt

 

10,205 

 

 

12,022 

EnLink debt

 

 

 

 

 

  Credit facilities

 

451 

 

 

 -

  Other borrowings

 

27 

 

 

 -

2.70% due April 1, 2019

 

400 

 

 

 -

7.125% due June 1, 2022

 

163 

 

 

 -

4.40% due April 1, 2024

 

450 

 

 

 -

5.60% due April 1, 2044

 

350 

 

 

 -

Net premium on debentures and notes

 

13 

 

 

 -

Total EnLink debt

 

1,854 

 

 

 -

Total debt

 

12,059 

 

 

12,022 

Less amount classified as short-term debt (1)

 

1,898 

 

 

4,066 

Total long-term debt

$

10,161 

 

$

7,956 

___________________

(1)

Short-term debt as of September 30, 2014 consists of $1.9 billion of senior notes that Devon intends to redeem in the fourth quarter of 2014 prior to their scheduled maturity date. The redemption includes the 2.4% $500 million senior note due 2016, the 1.2% $650 million senior note due 2016 and the 1.875% $750 million senior note due 2017 plus unpaid interest and a make-whole premium. The debt will be repaid with funds received as part of the divestiture program discussed in Note 2.

 

Short-term debt as of December 31, 2013 consists of $2.25 billion of senior notes issued in conjunction with the GeoSouthern acquisition, $1.3 billion of commercial paper and $500 million of senior notes due January 15, 2014. Subsequent to the close of the GeoSouthern acquisition the $2.25 billion of senior notes were reclassified to long-term debt.

 

Commercial Paper

 

During the nine months ended September 30, 2014, Devon has reduced commercial paper borrowings by $1.3 billion primarily utilizing divestiture proceeds. As of September 30, 2014, Devon had no outstanding commercial paper borrowings.

 

Credit Lines

 

Devon has a $3.0 billion syndicated, unsecured revolving line of credit (the "Senior Credit Facility"). As of September 30, 2014, there were no borrowings under the Senior Credit Facility. The Senior Credit Facility contains only one material financial covenant. This covenant requires Devon’s ratio of total funded debt to total capitalization, as defined in the credit agreement, to be no greater than 65 percent. As of September 30, 2014, Devon was in compliance with this covenant with a debt-to-capitalization ratio of 22.7 percent.

 

Term Loans

 

In December 2013, in conjunction with the GeoSouthern acquisition, Devon entered into a term loan agreement with a group of major financial institutions. In February 2014, Devon drew $2.0 billion of term loans to finance, in part, the GeoSouthern acquisition and to pay transaction costs. The term loans were repaid on June 30, 2014 with the Canadian divestiture proceeds that were repatriated to the U.S.

 

EnLink Debt

 

The table below summarizes the fair value of EnLink’s debt as of March 7, 2014, the formation date of EnLink. The premiums are being amortized using the effective interest method. EnLink’s debt is non-recourse to Devon.

 

 

 

 

 

 

 

March 7, 2014 Fair Value
of Debt

 

Effective
Rate of Debt

 

(In millions)

 

 

8.875% due February 15, 2018 (principal of $725 million) (1)

$

760 

 

7.7%

7.125% due June 1, 2022 (principal of $197 million)

 

226 

 

5.3%

Credit facilities

 

468 

 

 

  Total long-term debt

$

1,454 

 

 

___________________

(1)

The 2018 senior notes were redeemed on April 18, 2014.

 

The Partnership has a $1.0 billion unsecured revolving credit facility, which includes a $500 million letter of credit subfacility. As of September 30, 2014, there were $14.0 million in outstanding letters of credit and $371.0 million outstanding borrowings under the $1.0 billion credit facility, leaving $615.0 million available for future borrowing.

 

The $1.0 billion credit facility will mature on the fifth anniversary of the initial funding date, which was March 7, 2014, unless EnLink requests, and the requisite lenders agree, to extend it pursuant to its terms. The credit facility contains certain financial, operational and legal covenants.  Among other things, these covenants include maintaining a ratio of consolidated indebtedness to EnLink’s consolidated EBITDA (as defined in the credit facility, which definition includes projected EnLink EBITDA from certain capital expansion projects) of no more than 5.0 to 1.0. If EnLink consummates one or more acquisitions in which the aggregate purchase price is $50 million or more, the maximum allowed ratio of consolidated indebtedness to EnLink’s consolidated EBITDA will increase to 5.5 to 1.0 for the quarter of the acquisition and the three following quarters.

 

EnLink also has a $250 million revolving credit facility, which includes a $125 million letter of credit subfacility, as well as an additional credit agreement in association with E2 Energy Services LLC under which EnLink can borrow up to $30 million. As of September 30, 2014, EnLink’s outstanding borrowings under the $250 million credit facility were $81 million and $26 million in association with the E2 Energy Services LLC credit agreement. Additionally, as of September 30, 2014, E2 Services had certain promissory notes outstanding related to its vehicle fleet in the amount of $0.4 million due in increments through July 2017.

 

The $250 million credit facility will mature on March 7, 2019. The credit facility contains certain financial, operational and legal covenants. The financial covenants will be tested on a quarterly basis, based on the rolling four-quarter period that ends on the last day of each fiscal quarter, and include (i) maintaining a maximum consolidated leverage ratio (as defined in the credit facility, but generally computed as the ratio of consolidated funded indebtedness to consolidated earnings before interest, taxes, depreciation, amortization and certain other non-cash charges) of 4.00 to 1.00, provided that the maximum consolidated leverage ratio is 4.50 to 1.00 during an acquisition period (as defined in the credit facility) and (ii) maintaining a minimum consolidated interest coverage ratio (as defined in the credit facility, but generally computed as the ratio of consolidated earnings before interest, taxes, depreciation, amortization and certain other non-cash charges to consolidated interest charges) of 2.50 to 1.00 at all times prior to the occurrence of an investment grade event (as defined in the credit facility).

 

Asset Retirement Obligations
Asset Retirement Obligations

14.    Asset Retirement Obligations

 

The schedule below summarizes changes in Devon’s asset retirement obligations.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nine Months Ended September 30,

 

 

2014

 

2013

 

 

 

 

 

 

 

 

 

 

(In millions)

 

Asset retirement obligations as of beginning of period

$

2,228 

 

$

2,095 

 

Liabilities incurred

 

79 

 

 

88 

 

Liabilities settled

 

(38)

 

 

(46)

 

Revision of estimated obligation

 

75 

 

 

104 

 

Liabilities assumed by others

 

(949)

 

 

(15)

 

Accretion expense on discounted obligation

 

70 

 

 

86 

 

Foreign currency translation adjustment

 

(55)

 

 

(44)

 

Asset retirement obligations as of end of period

 

1,410 

 

 

2,268 

 

Less current portion

 

62 

 

 

107 

 

Asset retirement obligations, long-term

$

1,348 

 

$

2,161 

 

     

     During the first nine months of 2014, Devon reduced its asset retirement obligations $949 million for those obligations that were assumed by the purchasers of Devon’s Canadian and U.S. non-core oil and gas properties.

 

Retirement Plans
Retirement Plans

15.    Retirement Plans

 

The following table presents the components of net periodic benefit cost for Devon’s pension and postretirement benefit plans.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pension Benefits

 

Postretirement Benefits

 

 

Three Months Ended

 

Nine Months Ended

 

Three Months Ended

 

Nine Months Ended

 

 

September 30,

 

September 30,

 

September 30,

 

September 30,

 

 

2014

 

2013

 

2014

 

2013

 

2014

 

2013

 

2014

 

2013

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(In millions)

Service cost

 

$

 

$

 

$

22 

 

$

27 

 

$

 —

 

$

 —

 

$

 —

 

$

 —

Interest cost

 

 

14 

 

 

13 

 

 

41 

 

 

39 

 

 

 —

 

 

 —

 

 

 —

 

 

Expected return on plan assets

 

 

(13)

 

 

(16)

 

 

(40)

 

 

(47)

 

 

 —

 

 

 —

 

 

 —

 

 

 —

Amortization of prior service cost (1)

 

 

 

 

 

 

 

 

 

 

(1)

 

 

 —

 

 

(1)

 

 

 —

Net actuarial loss (gain) (1)

 

 

 

 

 

 

14 

 

 

16 

 

 

 —

 

 

 —

 

 

(1)

 

 

(1)

Net periodic benefit cost (2)

 

$

13 

 

$

12 

 

$

40 

 

$

38 

 

$

(1)

 

$

 —

 

$

(2)

 

$

 —

__________________________

(1)  These net periodic benefit costs were reclassified out of other comprehensive earnings in the current period.

(2)  Net periodic benefit cost is a component of general and administrative expenses on the accompanying comprehensive statements of earnings.

 

 

Stockholders' Equity
Stockholders' Equity

16.    Stockholders' Equity

 

Dividends

 

Devon paid common stock dividends of $287 million and $259 million in the first nine months of 2014 and 2013, respectively. The quarterly cash dividend was $0.20 per share in the first quarter of 2013. Devon increased the dividend rate to $0.22 per share in the second quarter of 2013 and to $0.24 per share in the second quarter of 2014.   

 

Subsidiary equity transactions 

 

In May 2014, the Partnership entered into an Equity Distribution Agreement (the “EDA”) with BMO Capital Markets Corp. (“BMO”). Pursuant to the terms of the EDA, the Partnership may from time to time through BMO, as its sales agent, sell common units representing limited partner interests having an aggregate offering price of up to $75 million.

 

Through September 30, 2014, the Partnership sold an aggregate of 2.4 million common units under the EDA, generating net proceeds of approximately $72 million. The Partnership used the net proceeds for general partnership purposes, including working capital, capital expenditures and repayments of indebtedness.

 

Distributions to noncontrolling interests

 

In conjunction with the formation of EnLink in the first quarter of 2014, Devon made a payment of $100 million to noncontrolling interests. Further, EnLink distributed $87 million to its non-Devon unitholders during the first nine months of 2014. 

 

Commitments And Contingencies
Commitments And Contingencies

17.    Commitments and Contingencies

 

Devon is party to various legal actions arising in the normal course of business. Matters that are probable of unfavorable outcome to Devon and which can be reasonably estimated are accrued. Such accruals are based on information known about the matters, Devon's estimates of the outcomes of such matters and its experience in contesting, litigating and settling similar matters. None of the actions are believed by management to involve future amounts that would be material to Devon's financial position or results of operations after consideration of recorded accruals. Actual amounts could differ materially from management's estimates.

 

Royalty Matters

 

Numerous oil and natural gas producers and related parties, including Devon, have been named in various lawsuits alleging royalty underpayments. The suits allege that the producers and related parties used below-market prices, made improper deductions, used improper measurement techniques and entered into gas purchase and processing arrangements with affiliates that resulted in underpayment of royalties in connection with oil, natural gas and NGLs produced and sold. Devon does not currently believe that it is subject to material exposure with respect to such royalty matters.

 

Environmental Matters

 

Devon is subject to certain laws and regulations relating to environmental remediation activities associated with past operations, such as the Comprehensive Environmental Response, Compensation, and Liability Act and similar state statutes. In response to liabilities associated with these activities, loss accruals primarily consist of estimated uninsured remediation costs. Devon's monetary exposure for environmental matters is not expected to be material.

 

Other Matters

 

Devon is involved in other various routine legal proceedings incidental to its business. However, to Devon's knowledge, there were no other material pending legal proceedings to which Devon is a party or to which any of its property is subject.

 

Fair Value Measurements
Fair Value Measurements

18.    Fair Value Measurements

 

The following tables provide carrying value and fair value measurement information for certain of Devon’s financial assets and liabilities. The carrying values of cash, accounts receivable, other current receivables, accounts payable, other current payables and accrued expenses included in the accompanying balance sheets approximated fair value at September 30, 2014 and December 31, 2013. Therefore, such financial assets and liabilities are not presented in the following tables.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fair Value Measurements Using:

 

 

Carrying

 

Total Fair

 

Level 1

 

Level 2

 

Level 3

 

 

Amount

 

Value

 

Inputs

 

Inputs

 

Inputs

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(In millions)

September 30, 2014 assets (liabilities):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash equivalents

 

$

2,876 

 

$

2,876 

 

$

1,745 

 

$

1,131 

 

$

 —

Commodity derivatives

 

$

297 

 

$

297 

 

$

 —

 

$

297 

 

$

 —

Commodity derivatives

 

$

(80)

 

$

(80)

 

$

 —

 

$

(80)

 

$

 —

EnLink commodity derivatives

 

$

 

$

 

$

 —

 

$

 

$

 —

EnLink commodity derivatives

 

$

(2)

 

$

(2)

 

$

 —

 

$

(2)

 

$

 —

Interest rate derivatives

 

$

 

$

 

$

 —

 

$

 

$

 —

Interest rate derivatives

 

$

(2)

 

$

(2)

 

$

 —

 

$

(2)

 

$

 —

Foreign currency derivatives

 

$

11 

 

$

11 

 

$

 —

 

$

11 

 

$

 —

Debt

 

$

(12,059)

 

$

(13,410)

 

$

 —

 

$

(13,410)

 

$

 —

Capital lease obligations

 

$

(21)

 

$

(21)

 

$

 —

 

$

(21)

 

$

 —

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2013 assets (liabilities):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash equivalents

 

$

5,305 

 

$

5,305 

 

$

4,191 

 

$

1,114 

 

$

 —

Long-term investments

 

$

62 

 

$

62 

 

$

 —

 

$

 —

 

$

62 

Commodity derivatives

 

$

103 

 

$

103 

 

$

 —

 

$

103 

 

$

 —

Commodity derivatives

 

$

(120)

 

$

(120)

 

$

 —

 

$

(120)

 

$

 —

Foreign currency derivatives

 

$

(1)

 

$

(1)

 

$

 —

 

$

(1)

 

$

 —

Debt

 

$

(12,022)

 

$

(12,908)

 

$

 —

 

$

(12,908)

 

$

 —

 

The following methods and assumptions were used to estimate the fair values in the tables above.

 

Level 1 Fair Value Measurements

Cash equivalents —  Amounts consist primarily of U.S. and Canadian treasury securities and money market investments. The fair value approximates the carrying value.

 

Level 2 Fair Value Measurements

 

Cash equivalents —  Amounts consist primarily of Canadian agency and provincial securities and commercial paper investments. The fair value approximates the carrying value.

 

Commodity, interest rate and foreign currency derivatives — The fair values of commodity, interest rate and foreign currency derivatives are estimated using internal discounted cash flow calculations based upon forward curves and data obtained from independent third parties for contracts with similar terms or data obtained from counterparties to the agreements.

 

Debt — Devon's debt instruments do not actively trade in an established market. The fair values of its debt are estimated based on rates available for debt with similar terms and maturity. The fair value of Devon’s commercial paper and EnLink’s credit facility is the carrying value.

 

Capital lease obligations —  The fair value was calculated using inputs from third-party banks.

 

Level 3 Fair Value Measurements

 

Long-term investments — Devon’s long-term investments as of December 31, 2013 consisted entirely of auction rate securities. In the first quarter of 2014, Devon redeemed all these securities for approximately $57 million, or $5 million below their carrying value. 

  

Segment Information
Segment Information

19.    Segment Information

 

Devon manages its operations through distinct operating segments, which are defined primarily by geographic areas. For financial reporting purposes, Devon aggregates its U.S. operating segments into one reporting segment due to the similar nature of the businesses. However, Devon's Canadian operating segment is reported as a separate reporting segment primarily due to the significant differences between the U.S. and Canadian regulatory environments. Devon’s U.S. and Canadian segments are both primarily engaged in oil and gas exploration and production activities.

 

With the formation of EnLink in the first quarter of 2014, Devon considers EnLink to be an operating segment that is distinct from its existing operating segments. EnLink’s operations consist of midstream assets and operations located across the U.S. Additionally, EnLink has a management team that is primarily responsible for capital and resource allocation decisions. Therefore, EnLink is presented as a separate reporting segment. For the reporting periods prior to the formation of EnLink, Devon has reclassified, from its U.S. segment to the EnLink segment, all asset-level amounts related to the midstream assets that it contributed to EnLink Holdings. 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   

 

U.S.

 

Canada

 

EnLink

 

Eliminations

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(In millions)

Three Months Ended September 30, 2014:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues from external customers

 

$

4,199 

 

$

481 

 

$

656 

 

$

 —

 

$

5,336 

Intersegment revenues

 

$

 —

 

$

 —

 

$

199 

 

$

(199)

 

$

 —

Depreciation, depletion and amortization

 

$

655 

 

$

113 

 

$

74 

 

$

 —

 

$

842 

Interest expense

 

$

95 

 

$

20 

 

$

14 

 

$

(11)

 

$

118 

Earnings (loss) before income taxes

 

$

1,461 

 

$

109 

 

$

84 

 

$

 —

 

$

1,654 

Income tax expense (benefit)

 

$

557 

 

$

38 

 

$

18 

 

$

 —

 

$

613 

Net earnings (loss)

 

$

904 

 

$

71 

 

$

66 

 

$

 —

 

$

1,041 

Net earnings attributable to noncontrolling interests

 

$

 —

 

$

 —

 

$

25 

 

$

 —

 

$

25 

Net earnings (loss) attributable to Devon

 

$

904 

 

$

71 

 

$

41 

 

$

 —

 

$

1,016 

Capital expenditures

 

$

1,213 

 

$

335 

 

$

207 

 

$

 —

 

$

1,755 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended September 30, 2013:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues from external customers

 

$

1,687 

 

$

791 

 

$

236 

 

$

 —

 

$

2,714 

Intersegment revenues

 

$

 —

 

$

 —

 

$

342 

 

$

(342)

 

$

 —

Depreciation, depletion and amortization

 

$

444 

 

$

199 

 

$

48 

 

$

 —

 

$

691 

Interest expense

 

$

94 

 

$

20 

 

$

 —

 

$

(10)

 

$

104 

Asset impairments

 

$

 

$

 —

 

$

 —

 

$

 —

 

$

Earnings (loss) before income taxes

 

$

366 

 

$

219 

 

$

54 

 

$

 —

 

$

639 

Income tax expense (benefit)

 

$

141 

 

$

50 

 

$

19 

 

$

 —

 

$

210 

Net earnings (loss)

 

$

225 

 

$

169 

 

$

35 

 

$

 —

 

$

429 

Capital expenditures

 

$

1,219 

 

$

437 

 

$

37 

 

$

 —

 

$

1,693 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nine Months Ended September 30, 2014:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues from external customers

 

$

10,067 

 

$

1,671 

 

$

1,833 

 

$

 —

 

$

13,571 

Intersegment revenues

 

$

 —

 

$

 —

 

$

672 

 

$

(672)

 

$

 —

Depreciation, depletion and amortization

 

$

1,794 

 

$

419 

 

$

196 

 

$

 —

 

$

2,409 

Interest expense

 

$

303 

 

$

61 

 

$

33 

 

$

(31)

 

$

366 

Earnings (loss) before income taxes

 

$

2,219 

 

$

1,310 

 

$

239 

 

$

 —

 

$

3,768 

Income tax expense (benefit)

 

$

1,121 

 

$

517 

 

$

60 

 

$

 —

 

$

1,698 

Net earnings (loss)

 

$

1,098 

 

$

793 

 

$

179 

 

$

 —

 

$

2,070 

Net earnings attributable to noncontrolling interests

 

$

 

$

 —

 

$

54 

 

$

 —

 

$

55 

Net earnings (loss) attributable to Devon

 

$

1,097 

 

$

793 

 

$

125 

 

$

 —

 

$

2,015 

Property and equipment, net

 

$

23,764 

 

$

6,882 

 

$

4,523 

 

$

 —

 

$

35,169 

Total assets

 

$

30,533 

 

$

10,895 

 

$

9,528 

 

$

(117)

 

$

50,839 

Capital expenditures

 

$

9,748 

 

$

1,055 

 

$

491 

 

$

 —

 

$

11,294 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nine Months Ended September 30, 2013:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues from external customers

 

$

5,033 

 

$

2,052 

 

$

688 

 

$

 —

 

$

7,773 

Intersegment revenues

 

$

 —

 

$

 —

 

$

1,005 

 

$

(1,005)

 

$

 —

Depreciation, depletion and amortization

 

$

1,287 

 

$

643 

 

$

139 

 

$

 —

 

$

2,069 

Interest expense

 

$

284 

 

$

62 

 

$

 —

 

$

(24)

 

$

322 

Asset impairments

 

$

1,117 

 

$

843 

 

$

 —

 

$

 —

 

$

1,960 

Earnings (loss) before income taxes

 

$

96 

 

$

(559)

 

$

137 

 

$

 —

 

$

(326)

Income tax expense (benefit)

 

$

10 

 

$

(158)

 

$

49 

 

$

 —

 

$

(99)

Net earnings (loss)

 

$

86 

 

$

(401)

 

$

88 

 

$

 —

 

$

(227)

Capital expenditures

 

$

3,477 

 

$

1,377 

 

$

173 

 

$

 —

 

$

5,027 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2013:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Property and equipment, net

 

$

18,201 

 

$

8,478 

 

$

1,768 

 

$

 —

 

$

28,447 

Total assets

 

$

27,080 

 

$

13,560 

 

$

2,237 

 

$

 —

 

$

42,877 

  

Summary Of Significant Accounting Policies (Policies)

Basis of Presentation

 

The accompanying consolidated financial statements include the accounts of Devon and entities in which it holds a controlling interest. All intercompany transactions have been eliminated. Undivided interests in oil and natural gas exploration and production joint ventures are consolidated on a proportionate basis. Investments in non-controlled entities, over which Devon has the ability to exercise significant influence over operating and financial policies, are accounted for using the equity method. In applying the equity method of accounting, the investments are initially recognized at cost and subsequently adjusted for Devon’s proportionate share of earnings, losses and distributions. Investments accounted for using the equity method and cost method are reported as a component of other long-term assets.

 

As discussed more fully in Note 2, on March 7, 2014, Devon completed a business combination whereby Devon controls both EnLink Midstream Partners, LP (the “Partnership”) and its general partner entity, EnLink Midstream, LLC (“EnLink”). Devon controls both the Partnership’s and EnLink’s operations; therefore, the Partnership’s and EnLink’s accounts are included in Devon’s accompanying consolidated financial statements subsequent to the completion of the transaction. The portions of the Partnership’s and EnLink’s net earnings and stockholders’ equity not attributable to Devon’s controlling interest are shown separately as noncontrolling interests in the accompanying consolidated comprehensive statements of earnings and consolidated balance sheets.

Intangible Assets

 

EnLink’s long-term assets include intangible assets, consisting of customer relationships. These assets are amortized on a straight-line basis over the expected periods of benefits, which range from ten to twenty years.

Recently Issued Accounting Standards Not Yet Adopted

 

In May 2014, the FASB issued Accounting Standards Update 2014-09, Revenue from Contracts with Customers (Topic 606). The update provides guidance concerning the recognition and measurement of revenue from contracts with customers.  Its objective is to increase the usefulness of information in the financial statements regarding the nature, timing and uncertainty of revenues. The update is effective for Devon beginning on January 1, 2017. The standard permits the use of either the retrospective or cumulative effect transition method. Devon has not yet selected a transition method and is evaluating the impact this standard will have on its consolidated financial statements and related disclosures.

Acquisitions And Divestitures (Tables)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended September 30, 2014

 

Nine Months Ended September 30, 2014

 

 

GeoSouthern

 

EnLink

 

GeoSouthern

 

EnLink

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(In millions)

 

(In millions)

Total operating revenues

 

$

634 

 

$

700 

 

$

1,374 

 

$

1,670 

Total operating expenses

 

 

322 

 

 

692 

 

 

708 

 

 

1,654 

Operating income

 

$

312 

 

$

 

$

666 

 

$

16 

 

 

 

 

 

 

 

 

 

 

Nine Months Ended September 30,

 

 

2014

 

2013

 

 

 

 

 

 

 

 

 

(In millions)

Total operating revenues

 

$

14,218 

 

$

9,603 

 

 

 

 

 

 

 

Net earnings (loss)

 

$

2,109 

 

$

(192)

Noncontrolling interests

 

$

68 

 

$

32 

Net earnings (loss) attributable to Devon

 

$

2,041 

 

$

(224)

Net earnings (loss) per common share attributable to Devon

 

$

4.98 

 

$

(0.55)

 

 

 

 

 

 

Crosstex Energy, Inc. outstanding common shares:

 

 

 

 

Held by public shareholders

 

 

48.0 

 

Restricted shares

 

 

0.4 

 

Total subject to conversion

 

 

48.4 

 

Exchange ratio

 

 

1.0 

x

Converted shares

 

 

48.4 

 

Crosstex Energy, Inc. common share price (1)

 

$

37.60 

 

Crosstex Energy, Inc. consideration

 

$

1,823 

 

Fair value of noncontrolling interests in E2 (2) 

 

$

12 

 

Total Crosstex Energy, Inc. consideration and fair value of noncontrolling interests

 

$

1,835 

 

Partnership outstanding units:

 

 

 

 

Common units held by public unitholders

 

 

75.1 

 

Preferred units held by third party (3)

 

 

17.1 

 

Restricted units

 

 

0.4 

 

Total

 

 

92.6 

 

Partnership common unit price (4)

 

$

30.51 

 

Partnership common units value

 

$

2,825 

 

Partnership outstanding unit options value

 

$

 

Total fair value of noncontrolling interests in the Partnership (4)

 

$

2,829 

 

Total consideration and fair value of noncontrolling interests

 

$

4,664 

 

__________________________

 

(1) The final purchase price is based on the fair value of Crosstex Energy Inc.’s common shares as of the closing date, March 7, 2014.

(2) Represents the value of noncontrolling interests related to EnLink’s equity investment in E2 Energy Services, LLC and E2 Appalachian Compression, LLC (collectively “E2”).

(3) The Partnership converted the preferred units to common units in February 2014.

(4) The final purchase price is based on the fair value of the Partnership’s common shares as of the closing date, March 7, 2014.

 

 

 

 

Assets acquired:

 

 

 

Current assets

 

$

438 

Property, plant and equipment, net

 

 

2,438 

Intangible assets

 

 

547 

Equity investment

 

 

222 

Goodwill (1)

 

 

3,292 

Other long term assets

 

 

Liabilities assumed:

 

 

 

Current liabilities

 

 

(516)

Long-term debt

 

 

(1,454)

Deferred income taxes

 

 

(203)

Other long-term liabilities

 

 

(101)

Total consideration and fair value of noncontrolling interests

 

$

4,664 

__________________________

(1)  Goodwill is the excess of the consideration transferred over the net assets recognized and represents the future economic benefits arising from other assets acquired that could not be individually identified and separately recognized. Goodwill is not amortized and is not deductible for tax purposes. 

 

 

 

 

Cash and cash equivalents

 

$

95 

Other current assets

 

 

256 

Proved properties

 

 

5,029 

Unproved properties

 

 

1,008 

Midstream assets

 

 

85 

Current liabilities

 

 

(437)

Long-term liabilities

 

 

(6)

Net assets acquired

 

$

6,030 

 

Derivative Financial Instruments (Tables)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Comprehensive Statements of

 

Three Months Ended
September 30,

 

Nine Months Ended
September 30,

 

 

Earnings Caption

 

2014

 

2013

 

2014

 

2013

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(In millions)

Commodity derivatives

 

Oil, gas and NGL derivatives

 

$

748 

 

$

(141)

 

$

29 

 

$

(95)

EnLink commodity derivatives

 

Marketing and midstream revenues

 

 

 

 

 —

 

 

(2)

 

 

 —

Interest rate derivatives

 

Other nonoperating items

 

 

 —

 

 

 

 

 

 

Foreign currency derivatives

 

Other nonoperating items

 

 

55 

 

 

(28)

 

 

15 

 

 

29 

Net gains (losses) recognized in comprehensive statements of earnings

 

$

804 

 

$

(168)

 

$

43 

 

$

(65)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance Sheet Caption

 

September 30, 2014

 

December 31, 2013

 

 

 

 

 

 

 

 

 

 

 

 

 

(In millions)

Asset derivatives:

 

 

 

 

 

 

 

 

Commodity derivatives

 

Other current assets

 

$

231 

 

$

75 

Commodity derivatives

 

Other long-term assets

 

 

66 

 

 

28 

EnLink commodity derivatives

 

Other current assets

 

 

 

 

 —

Interest rate derivatives

 

Other current assets

 

 

 

 

 —

Foreign currency derivatives

 

Other current assets

 

 

11 

 

 

 —

Total asset derivatives

 

 

 

$

310 

 

$

103 

Liability derivatives:

 

 

 

 

 

 

 

 

Commodity derivatives

 

Other current liabilities

 

$

30 

 

$

58 

Commodity derivatives

 

Other long-term liabilities

 

 

50 

 

 

62 

EnLink commodity derivatives

 

Other current liabilities

 

 

 

 

 —

EnLink commodity derivatives

 

Other long-term liabilities

 

 

 

 

 —

Interest rate derivatives

 

Other current liabilities

 

 

 

 

 —

Interest rate derivatives

 

Other long-term liabilities

 

 

 

 

 —

Foreign currency derivatives

 

Other current liabilities

 

 

 —

 

 

Total liability derivatives

 

 

 

$

84 

 

$

121 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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)

Q4 2014 

 

75,000

 

$

94.14

 

64,750

 

$

89.33

 

$

100.00

 

42,000

 

$

116.43

Q1-Q4 2015

 

106,736

 

$

91.22

 

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)

Q4 2014

 

Western Canadian Select

 

50,000

 

$

(17.40)

Q1-Q4 2015 

 

Western Canadian Select

 

14,890

 

$

(18.92)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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)

Q4 2014 

 

800,000

 

$

4.42

 

460,000

 

$

4.03

 

$

4.51

 

500,000

 

$

5.00

Q1-Q4 2015

 

210,000

 

$

4.38

 

260,000

 

$

4.05

 

$

4.36

 

550,000

 

$

5.09

Q1-Q4 2016

 

 

$

 

 

$

 

$

 

400,000

 

$

5.00

 

 

 

 

 

 

 

 

 

 

 

 

 

Natural Gas Basis Swaps

Period

 

Index

 

Volume (MMBtu/d)

 

Weighted Average Differential to Henry Hub ($/MMBtu)

Q4 2014

 

AECO

 

94,781

 

$

(0.52)

Q1-Q4 2015

 

PEPL

 

100,000

 

$

(0.28)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Notional

 

Rate Received

 

Rate Paid

 

Expiration

(In millions)

 

 

 

 

 

 

$

100

 

Three Month LIBOR

 

0.92%

 

December 2016

$

100

 

1.76%

 

Three Month LIBOR

 

January 2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Forward Contract

Currency

 

Contract Type

 

CAD Notional

 

Weighted Average Fixed Rate Received

 

Expiration

 

 

 

 

(In millions)

 

(CAD-USD)

 

 

Canadian Dollar

 

Sell

 

$

1,312 

 

0.899

 

December 2014

 

Share-Based Compensation (Tables)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nine Months Ended September 30,

 

 

2014

 

2013

 

 

 

 

 

 

 

 

 

(In millions)

Gross general and administrative expense

 

$

155 

 

$

118 

Share-based compensation expense capitalized pursuant to the

 

 

 

 

 

 

 full-cost method of accounting for oil and gas properties

 

$

40 

 

$

44 

Related income tax benefit

 

$

20 

 

$

17 

 

 

 

 

 

 

 

 

 

 

 

Restricted Stock Award & Units

 

Weighted Average Grant-Date Fair Value

 

 

 

(In thousands)

 

 

 

Unvested at December 31, 2013

 

 

3,292 

 

$

59.76 

 Granted

 

 

3,412 

 

$

63.53 

 Vested

 

 

(558)

 

$

60.65 

 Forfeited

 

 

(607)

 

$

60.96 

Unvested at September 30, 2014

 

 

5,539 

 

$

61.73 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Performance Restricted Stock Awards

 

Weighted Average Grant-Date Fair Value

 

 

 

(In thousands)

 

 

 

Unvested at December 31, 2013

 

 

316 

 

$

56.25 

 Granted

 

 

234 

 

$

61.33 

 Vested

 

 

(75)

 

$

53.45 

Unvested at September 30, 2014

 

 

475 

 

$

59.20 

 

 

 

 

 

 

 

 

 

2014

 

 

 

 

 

 

 

 

Grant-date fair value

$

70.18 

-

$

81.05 

 

Risk-free interest rate

 

 

 

 

0.54% 

 

Volatility factor

 

 

 

 

28.8% 

 

Contractual term (in years)

 

 

 

 

2.89 

 

 

 

 

 

 

 

 

 

 

 

 

Performance Share Units

 

Weighted Average Grant-Date Fair Value

 

 

 

(In thousands)

 

 

 

Unvested at December 31, 2013

 

 

925 

 

$

66.64 

 Granted

 

 

708 

 

$

77.77 

 Forfeited

 

 

(147)

 

$

77.25 

Unvested at September 30, 2014 (1)

 

 

1,486 

 

$

70.89 

____________________________

(1)

A maximum of 3.0 million common shares could be awarded based upon Devon’s final total shareholder return ranking.

Asset Impairments (Tables)
Schedule Of Impaired Oil And Gas Properties And Equipment

 

 

 

 

 

 

 

 

 

 

 

 

 

Nine Months Ended September 30, 2013

 

Gross

 

Net of Taxes

 

 

 

 

 

 

 

 

(In millions)

U.S. oil and gas assets

$

1,110 

 

$

707 

Canada oil and gas assets

 

843 

 

 

632 

Midstream assets

 

 

 

Total asset impairments

$

1,960 

 

$

1,343 

 

Restructuring Costs (Tables)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months

 

Nine Months

 

Ended September 30,

 

Ended September 30,

 

2014

 

2013

 

2014

 

2013

 

 

 

 

 

 

 

 

 

 

 

 

 

(In millions)

Canada divestitures:

 

 

 

 

 

 

 

 

 

 

 

Employee related and other costs

$

 

$

 —

 

$

44 

 

$

 —

Office consolidation:

 

 

 

 

 

 

 

 

 

 

 

Lease obligations and other

 

 —

  

 

  

 

 —

  

 

50 

Restructuring costs

$

  

$

  

$

44 

  

$

50 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other

 

Other

 

 

 

 

 

Current

 

Long-Term

 

 

 

 

 

Liabilities

 

Liabilities

 

Total

 

 

 

 

 

 

 

 

 

 

 

  

(In millions)

Balance as of December 31, 2013

  

$

27 

 

$

18 

 

$

45 

Changes due to Canadian divestitures

  

 

 

 

 

 

Changes due to office consolidation

  

 

(22)

 

 

(1)

 

 

(23)

Changes due to offshore divestiture

 

 

(2)

 

 

(1)

 

 

(3)

Balance as September 30, 2014

 

$

 

$

18 

 

$

23 

 

 

 

 

 

 

 

 

 

 

Balance as of December 31, 2012

  

$

52 

 

$

 

$

61 

Changes due to office consolidation

 

 

(16)

 

 

11 

 

 

(5)

Changes due to offshore divestiture

  

 

(2)

 

 

(1)

 

 

(3)

Balance as of September 30, 2013

  

$

34 

  

$

19 

  

$

53 

 

Income Taxes (Tables)
Schedule Of Effective Income Tax Reconciliation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

 

 

 

2014

 

2013

 

2014

 

2013

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total income tax expense (benefit) (in millions)

 

$

613 

 

$

210 

 

$

1,698 

 

$

(99)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. statutory income tax rate

 

 

35% 

 

 

35% 

 

 

35% 

 

 

(35%)

 

Repatriations

 

 

 —

 

 

 —

 

 

7% 

 

 

 —

 

State income taxes

 

 

2% 

 

 

1% 

 

 

1% 

 

 

(3%)

 

Taxation on Canadian operations

 

 

 —

 

 

(5%)

 

 

1% 

 

 

9% 

 

Taxes on EnLink formation

 

 

 —

 

 

 —

 

 

1% 

 

 

 —

 

Other

 

 

 —

 

 

2% 

 

 

 —

 

 

(1%)

 

Effective income tax rate

 

 

37% 

 

 

33% 

 

 

45% 

 

 

(30%)

 

 

Earnings (Loss) Per Share Attributable To Devon (Tables)
Earnings (Loss) Per Share Computations

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  

 

 

 

Common

 

Earnings (loss)

 

 

Earnings (loss)

 

Shares

 

per  Share

 

 

 

 

 

 

 

 

 

 

 

  

(In millions, except per share amounts)

 

  

 

 

 

 

 

 

 

 

Three Months Ended September 30, 2014:

  

 

 

 

 

 

 

 

 

Net earnings attributable to Devon

  

$

1,016 

 

 

409 

 

 

 

Attributable to participating securities

  

 

(11)

 

 

(4)

 

 

 

Basic earnings per share

  

 

1,005 

 

 

405 

 

$

2.48 

Dilutive effect of potential common shares issuable

  

 

 -

 

 

 

 

 

Diluted earnings per share

  

$

1,005 

 

 

407 

 

$

2.47 

 

  

 

 

 

 

 

 

 

 

Three Months Ended September 30, 2013:

  

 

 

 

 

 

 

 

 

Net earnings attributable to Devon

  

$

429 

 

 

406 

 

 

 

Attributable to participating securities

  

 

(4)

 

 

(4)

 

 

 

Basic earnings per share

  

 

425 

 

 

402 

 

$

1.06 

Dilutive effect of potential common shares issuable

  

 

 -

 

 

 

 

 

Diluted earnings per share

  

$

425 

 

 

403 

 

$

1.05 

 

  

 

 

 

 

 

 

 

 

Nine Months Ended September 30, 2014:

  

 

 

 

 

 

 

 

 

Net earnings attributable to Devon

  

$

2,015 

 

 

408 

 

 

 

Attributable to participating securities

  

 

(20)

 

 

(4)

 

 

 

Basic earnings per share

  

 

1,995 

 

 

404 

 

$

4.94 

Dilutive effect of potential common shares issuable

  

 

 -

 

 

 

 

 

Diluted earnings per share

  

$

1,995 

 

 

406 

 

$

4.91 

 

  

 

 

 

 

 

 

 

 

Nine Months Ended September 30, 2013:

  

 

 

 

 

 

 

 

 

Net loss attributable to Devon

  

$

(227)

 

 

406 

 

 

 

Attributable to participating securities

  

 

(2)

 

 

(4)

 

 

 

Basic loss per share

  

 

(229)

 

 

402 

 

$

(0.57)

Dilutive effect of potential common shares issuable

  

 

 -

 

 

 -

 

 

 

Diluted loss per share

  

$

(229)

 

 

402 

 

$

(0.57)

 

Other Comprehensive Earnings (Tables)
Components Of Other Comprehensive Earnings

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Nine Months Ended

 

 

September 30,

 

September 30,

 

 

2014

 

2013

 

2014

 

2013

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(In millions)

Foreign currency translation:

 

 

 

 

 

 

 

 

 

 

 

 

Beginning accumulated foreign currency translation

 

$

1,442 

 

$

1,542 

 

$

1,448 

 

$

1,996 

Change in cumulative translation adjustment

 

 

(299)

 

 

182 

 

 

(306)

 

 

(294)

Income tax benefit (expense)

 

 

20 

 

 

(9)

 

 

21 

 

 

13 

Ending accumulated foreign currency translation

 

 

1,163 

 

 

1,715 

 

 

1,163 

 

 

1,715 

Pension and postretirement benefit plans:

 

 

 

 

 

 

 

 

 

 

 

 

Beginning accumulated pension and postretirement benefits

 

 

(172)

 

 

(216)

 

 

(180)

 

 

(225)

Recognition of net actuarial loss and prior service cost in earnings (1)

 

 

 

 

 

 

15 

 

 

18 

Income tax expense

 

 

(2)

 

 

(3)

 

 

(5)

 

 

(6)

Ending accumulated pension and postretirement benefits

 

 

(170)

 

 

(213)

 

 

(170)

 

 

(213)

Accumulated other comprehensive earnings, net of tax

 

$

993 

 

$

1,502 

 

$

993 

 

$

1,502 

__________________________

(1)  These accumulated other comprehensive earnings components are included in the computation of net periodic benefit cost, which is a component of general and administrative expenses on the accompanying comprehensive statements of earnings (see Note 15 for additional details)

Supplemental Information To Statements Of Cash Flows (Tables)
Schedule Of Supplemental To Cash Flow Information

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nine Months Ended September 30,

 

 

2014

 

2013

 

 

 

 

 

 

 

 

 

(In millions)

Net change in working capital accounts:

 

 

 

 

 

 

Accounts receivable

 

$

(25)

 

$

(287)

Other current assets

 

 

(120)

 

 

72 

Accounts payable

 

 

(118)

 

 

127 

Income taxes payable

 

 

704 

 

 

Revenues and royalties payable

 

 

381 

 

 

56 

Other current liabilities

 

 

(56)

 

 

(79)

Net change in working capital

 

$

766 

 

$

(104)

 

 

 

 

 

 

 

Interest paid (net of capitalized interest)

 

$

355 

 

$

342 

Income taxes paid (received)

 

$

214 

 

$

(2)

 

Accounts Receivable (Tables)
Schedule Of Components Of Accounts Receivable

 

 

 

 

 

 

 

 

 

 

 

 

 

September 30, 2014

 

December 31, 2013

 

 

 

 

 

 

 

(In millions)

Oil, gas and NGL sales

$

899 

 

$

851 

Joint interest billings

 

393 

 

 

447 

Marketing and midstream revenues

 

674 

 

 

172 

Other

 

54 

 

 

61 

Gross accounts receivable

 

2,020 

 

 

1,531 

Allowance for doubtful accounts

 

(11)

 

 

(11)

Net accounts receivable

$

2,009 

 

$

1,520 

 

Goodwill (Tables)
Schedule Of Goodwill By Reporting Segment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

September 30, 2014

 

December 31, 2013

 

 

 

 

 

 

 

 

 

(In millions)

U.S.

 

$

2,618 

 

$

2,618 

Canada

 

 

1,997 

 

 

2,838 

EnLink

 

 

3,695 

 

 

402 

Total

 

$

8,310 

 

$

5,858 

 

Debt (Tables)

 

 

 

 

 

 

 

 

 

 

 

 

 

September 30, 2014

 

December 31, 2013

 

 

 

 

 

 

 

(In millions)

Devon debt

 

 

 

 

 

Commercial paper

$

 -

 

$

1,317 

5.625% due January 15, 2014

 

 -

 

 

500 

Floating rate due December 15, 2015

 

500 

 

 

500 

2.40% due July 15, 2016

 

500 

 

 

500 

Floating rate due December 15, 2016

 

350 

 

 

350 

1.20% due December 15, 2016

 

650 

 

 

650 

1.875% due May 15, 2017

 

750 

 

 

750 

8.25% due July 1, 2018

 

125 

 

 

125 

2.25% due December 15, 2018

 

750 

 

 

750 

6.30% due January 15, 2019

 

700 

 

 

700 

4.00% due July 15, 2021

 

500 

 

 

500 

3.25% due May 15, 2022

 

1,000 

 

 

1,000 

7.50% due September 15, 2027

 

150 

 

 

150 

7.875% due September 30, 2031

 

1,250 

 

 

1,250 

7.95% due April 15, 2032

 

1,000 

 

 

1,000 

5.60% due July 15, 2041

 

1,250 

 

 

1,250 

4.75% due May 15, 2042

 

750 

 

 

750 

Net discount on debentures and notes

 

(20)

 

 

(20)

Total Devon debt

 

10,205 

 

 

12,022 

EnLink debt

 

 

 

 

 

  Credit facilities

 

451 

 

 

 -

  Other borrowings

 

27 

 

 

 -

2.70% due April 1, 2019

 

400 

 

 

 -

7.125% due June 1, 2022

 

163 

 

 

 -

4.40% due April 1, 2024

 

450 

 

 

 -

5.60% due April 1, 2044

 

350 

 

 

 -

Net premium on debentures and notes

 

13 

 

 

 -

Total EnLink debt

 

1,854 

 

 

 -

Total debt

 

12,059 

 

 

12,022 

Less amount classified as short-term debt (1)

 

1,898 

 

 

4,066 

Total long-term debt

$

10,161 

 

$

7,956 

___________________

(1)

Short-term debt as of September 30, 2014 consists of $1.9 billion of senior notes that Devon intends to redeem in the fourth quarter of 2014 prior to their scheduled maturity date. The redemption includes the 2.4% $500 million senior note due 2016, the 1.2% $650 million senior note due 2016 and the 1.875% $750 million senior note due 2017 plus unpaid interest and a make-whole premium. The debt will be repaid with funds received as part of the divestiture program discussed in Note 2.

 

Short-term debt as of December 31, 2013 consists of $2.25 billion of senior notes issued in conjunction with the GeoSouthern acquisition, $1.3 billion of commercial paper and $500 million of senior notes due January 15, 2014. Subsequent to the close of the GeoSouthern acquisition the $2.25 billion of senior notes were reclassified to long-term debt.

 

March 7, 2014 Fair Value
of Debt

 

Effective
Rate of Debt

 

(In millions)

 

 

8.875% due February 15, 2018 (principal of $725 million) (1)

$

760 

 

7.7%

7.125% due June 1, 2022 (principal of $197 million)

 

226 

 

5.3%

Credit facilities

 

468 

 

 

  Total long-term debt

$

1,454 

 

 

___________________

(1)

The 2018 senior notes were redeemed on April 18, 2014.

Asset Retirement Obligations (Tables)
Summary Of Changes In Asset Retirement Obligations

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nine Months Ended September 30,

 

 

2014

 

2013

 

 

 

 

 

 

 

 

 

 

(In millions)

 

Asset retirement obligations as of beginning of period

$

2,228 

 

$

2,095 

 

Liabilities incurred

 

79 

 

 

88 

 

Liabilities settled

 

(38)

 

 

(46)

 

Revision of estimated obligation

 

75 

 

 

104 

 

Liabilities assumed by others

 

(949)

 

 

(15)

 

Accretion expense on discounted obligation

 

70 

 

 

86 

 

Foreign currency translation adjustment

 

(55)

 

 

(44)

 

Asset retirement obligations as of end of period

 

1,410 

 

 

2,268 

 

Less current portion

 

62 

 

 

107 

 

Asset retirement obligations, long-term

$

1,348 

 

$

2,161 

 

 

Retirement Plans (Tables)
Schedule Of Net Periodic Benefit Cost For Pension And Postretirement Benefit Plans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pension Benefits

 

Postretirement Benefits

 

 

Three Months Ended

 

Nine Months Ended

 

Three Months Ended

 

Nine Months Ended

 

 

September 30,

 

September 30,

 

September 30,

 

September 30,

 

 

2014

 

2013

 

2014

 

2013

 

2014

 

2013

 

2014

 

2013

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(In millions)

Service cost

 

$

 

$

 

$

22 

 

$

27 

 

$

 —

 

$

 —

 

$

 —

 

$

 —

Interest cost

 

 

14 

 

 

13 

 

 

41 

 

 

39 

 

 

 —

 

 

 —

 

 

 —

 

 

Expected return on plan assets

 

 

(13)

 

 

(16)

 

 

(40)

 

 

(47)

 

 

 —

 

 

 —

 

 

 —

 

 

 —

Amortization of prior service cost (1)

 

 

 

 

 

 

 

 

 

 

(1)

 

 

 —

 

 

(1)

 

 

 —

Net actuarial loss (gain) (1)

 

 

 

 

 

 

14 

 

 

16 

 

 

 —

 

 

 —

 

 

(1)

 

 

(1)

Net periodic benefit cost (2)

 

$

13 

 

$

12 

 

$

40 

 

$

38 

 

$

(1)

 

$

 —

 

$

(2)

 

$

 —

__________________________

(1)  These net periodic benefit costs were reclassified out of other comprehensive earnings in the current period.

(2)  Net periodic benefit cost is a component of general and administrative expenses on the accompanying comprehensive statements of earnings

Fair Value Measurements (Tables)
Schedule Of Carrying Value And Fair Value Measurement Information For Financial Assets And Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fair Value Measurements Using:

 

 

Carrying

 

Total Fair

 

Level 1

 

Level 2

 

Level 3

 

 

Amount

 

Value

 

Inputs

 

Inputs

 

Inputs

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(In millions)

September 30, 2014 assets (liabilities):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash equivalents

 

$

2,876 

 

$

2,876 

 

$

1,745 

 

$

1,131 

 

$

 —

Commodity derivatives

 

$

297 

 

$

297 

 

$

 —

 

$

297 

 

$

 —

Commodity derivatives

 

$

(80)

 

$

(80)

 

$

 —

 

$

(80)

 

$

 —

EnLink commodity derivatives

 

$

 

$

 

$

 —

 

$

 

$

 —

EnLink commodity derivatives

 

$

(2)

 

$

(2)

 

$

 —

 

$

(2)

 

$

 —

Interest rate derivatives

 

$

 

$

 

$

 —

 

$

 

$

 —

Interest rate derivatives

 

$

(2)

 

$

(2)

 

$

 —

 

$

(2)

 

$

 —

Foreign currency derivatives

 

$

11 

 

$

11 

 

$

 —

 

$

11 

 

$

 —

Debt

 

$

(12,059)

 

$

(13,410)

 

$

 —

 

$

(13,410)

 

$

 —

Capital lease obligations

 

$

(21)

 

$

(21)

 

$

 —

 

$

(21)

 

$

 —

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2013 assets (liabilities):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash equivalents

 

$

5,305 

 

$

5,305 

 

$

4,191 

 

$

1,114 

 

$

 —

Long-term investments

 

$

62 

 

$

62 

 

$

 —

 

$

 —

 

$

62 

Commodity derivatives

 

$

103 

 

$

103 

 

$

 —

 

$

103 

 

$

 —

Commodity derivatives

 

$

(120)

 

$

(120)

 

$

 —

 

$

(120)

 

$

 —

Foreign currency derivatives

 

$

(1)

 

$

(1)

 

$

 —

 

$

(1)

 

$

 —

Debt

 

$

(12,022)

 

$

(12,908)

 

$

 —

 

$

(12,908)

 

$

 —

 

Segment Information (Tables)
Condensed Statements Of Comprehensive Earnings And Balance Sheets Of Reportable Segments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   

 

U.S.

 

Canada

 

EnLink

 

Eliminations

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(In millions)

Three Months Ended September 30, 2014:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues from external customers

 

$

4,199 

 

$

481 

 

$

656 

 

$

 —

 

$

5,336 

Intersegment revenues

 

$

 —

 

$

 —

 

$

199 

 

$

(199)

 

$

 —

Depreciation, depletion and amortization

 

$

655 

 

$

113 

 

$

74 

 

$

 —

 

$

842 

Interest expense

 

$

95 

 

$

20 

 

$

14 

 

$

(11)

 

$

118 

Earnings (loss) before income taxes

 

$

1,461 

 

$

109 

 

$

84 

 

$

 —

 

$

1,654 

Income tax expense (benefit)

 

$

557 

 

$

38 

 

$

18 

 

$

 —

 

$

613 

Net earnings (loss)

 

$

904 

 

$

71 

 

$

66 

 

$

 —

 

$

1,041 

Net earnings attributable to noncontrolling interests

 

$

 —

 

$

 —

 

$

25 

 

$

 —

 

$

25 

Net earnings (loss) attributable to Devon

 

$

904 

 

$

71 

 

$

41 

 

$

 —

 

$

1,016 

Capital expenditures

 

$

1,213 

 

$

335 

 

$

207 

 

$

 —

 

$

1,755 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended September 30, 2013:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues from external customers

 

$

1,687 

 

$

791 

 

$

236 

 

$

 —

 

$

2,714 

Intersegment revenues

 

$

 —

 

$

 —

 

$

342 

 

$

(342)

 

$

 —

Depreciation, depletion and amortization

 

$

444 

 

$

199 

 

$

48 

 

$

 —

 

$

691 

Interest expense

 

$

94 

 

$

20 

 

$

 —

 

$

(10)

 

$

104 

Asset impairments

 

$

 

$

 —

 

$

 —

 

$

 —

 

$

Earnings (loss) before income taxes

 

$

366 

 

$

219 

 

$

54 

 

$

 —

 

$

639 

Income tax expense (benefit)

 

$

141 

 

$

50 

 

$

19 

 

$

 —

 

$

210 

Net earnings (loss)

 

$

225 

 

$

169 

 

$

35 

 

$

 —

 

$

429 

Capital expenditures

 

$

1,219 

 

$

437 

 

$

37 

 

$

 —

 

$

1,693 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nine Months Ended September 30, 2014:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues from external customers

 

$

10,067 

 

$

1,671 

 

$

1,833 

 

$

 —

 

$

13,571 

Intersegment revenues

 

$

 —

 

$

 —

 

$

672 

 

$

(672)

 

$

 —

Depreciation, depletion and amortization

 

$

1,794 

 

$

419 

 

$

196 

 

$

 —

 

$

2,409 

Interest expense

 

$

303 

 

$

61 

 

$

33 

 

$

(31)

 

$

366 

Earnings (loss) before income taxes

 

$

2,219 

 

$

1,310 

 

$

239 

 

$

 —

 

$

3,768 

Income tax expense (benefit)

 

$

1,121 

 

$

517 

 

$

60 

 

$

 —

 

$

1,698 

Net earnings (loss)

 

$

1,098 

 

$

793 

 

$

179 

 

$

 —

 

$

2,070 

Net earnings attributable to noncontrolling interests

 

$

 

$

 —

 

$

54 

 

$

 —

 

$

55 

Net earnings (loss) attributable to Devon

 

$

1,097 

 

$

793 

 

$

125 

 

$

 —

 

$

2,015 

Property and equipment, net

 

$

23,764 

 

$

6,882 

 

$

4,523 

 

$

 —

 

$

35,169 

Total assets

 

$

30,533 

 

$

10,895 

 

$

9,528 

 

$

(117)

 

$

50,839 

Capital expenditures

 

$

9,748 

 

$

1,055 

 

$

491 

 

$

 —

 

$

11,294 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nine Months Ended September 30, 2013:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues from external customers

 

$

5,033 

 

$

2,052 

 

$

688 

 

$

 —

 

$

7,773 

Intersegment revenues

 

$

 —

 

$

 —

 

$

1,005 

 

$

(1,005)

 

$

 —

Depreciation, depletion and amortization

 

$

1,287 

 

$

643 

 

$

139 

 

$

 —

 

$

2,069 

Interest expense

 

$

284 

 

$

62 

 

$

 —

 

$

(24)

 

$

322 

Asset impairments

 

$

1,117 

 

$

843 

 

$

 —

 

$

 —

 

$

1,960 

Earnings (loss) before income taxes

 

$

96 

 

$

(559)

 

$

137 

 

$

 —

 

$

(326)

Income tax expense (benefit)

 

$

10 

 

$

(158)

 

$

49 

 

$

 —

 

$

(99)

Net earnings (loss)

 

$

86 

 

$

(401)

 

$

88 

 

$

 —

 

$

(227)

Capital expenditures

 

$

3,477 

 

$

1,377 

 

$

173 

 

$

 —

 

$

5,027 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2013:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Property and equipment, net

 

$

18,201 

 

$

8,478 

 

$

1,768 

 

$

 —

 

$

28,447 

Total assets

 

$

27,080 

 

$

13,560 

 

$

2,237 

 

$

 —

 

$

42,877 

 

Acquisitions And Divestitures (Narrative) (Details)
Share data in Millions, unless otherwise specified
3 Months Ended 9 Months Ended 3 Months Ended 9 Months Ended 0 Months Ended 9 Months Ended 0 Months Ended 9 Months Ended 0 Months Ended 3 Months Ended 0 Months Ended 1 Months Ended 3 Months Ended 0 Months Ended 3 Months Ended
Jun. 30, 2014
USD ($)
Sep. 30, 2013
USD ($)
Jun. 30, 2013
USD ($)
Sep. 30, 2014
USD ($)
Sep. 30, 2013
USD ($)
Jun. 30, 2014
Foreign Currency Derivatives [Member]
USD ($)
Jun. 30, 2014
Canadian Conventional Assets Divestiture [Member]
USD ($)
Jun. 30, 2014
Canadian Conventional Assets Divestiture [Member]
CAD ($)
Mar. 31, 2014
Canadian Conventional Assets Divestiture [Member]
USD ($)
Mar. 31, 2014
Canadian Conventional Assets Divestiture [Member]
CAD ($)
Sep. 30, 2014
Canadian Conventional Assets Divestiture [Member]
USD ($)
Aug. 29, 2014
LINN Energy [Member]
USD ($)
Sep. 30, 2014
LINN Energy [Member]
USD ($)
Sep. 30, 2014
EnLink And Partnership [Member]
Feb. 28, 2014
GeoSouthern Intermediate Holdings, LLC [Member]
USD ($)
acre
Sep. 30, 2014
GeoSouthern Intermediate Holdings, LLC [Member]
Mar. 7, 2014
Partnership [Member]
EnLink And Partnership [Member]
USD ($)
Sep. 30, 2014
Partnership [Member]
Gulf Coast Natural Gas Pipeline [Member]
Nov. 2, 2014
Partnership [Member]
Gulf Coast Natural Gas Pipeline [Member]
Forecast [Member]
USD ($)
Oct. 31, 2014
Partnership [Member]
Appalachian Compression, LLC and E2 Energy Services, LLC [Member]
Subsequent Event [Member]
USD ($)
Sep. 30, 2014
Partnership [Member]
Appalachian Compression, LLC and E2 Energy Services, LLC [Member]
Subsequent Event [Member]
Sep. 30, 2014
Partnership [Member]
Sep. 30, 2014
Partnership [Member]
Public Unitholders [Member]
Sep. 30, 2014
Partnership [Member]
EnLink [Member]
Mar. 7, 2014
EnLink [Member]
USD ($)
Sep. 30, 2014
EnLink [Member]
Sep. 30, 2014
EnLink [Member]
Public Unitholders [Member]
Sep. 30, 2014
EnLink [Member]
Sep. 30, 2014
EnLink [Member]
Partnership [Member]
Jun. 30, 2014
Term Loan [Member]
USD ($)
Business Acquisition [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash payment to acquire interest
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 163,000,000 
 
 
 
 
$ 100,000,000 
 
 
 
 
 
Ownership percentage
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
52.00% 
41.00% 
7.00% 
 
70.00% 
30.00% 
50.00% 
50.00% 
 
Close date of acquisition
 
 
 
 
 
 
 
 
 
 
 
 
 
Mar. 07, 2014 
 
Feb. 28, 2014 
 
Nov. 01, 2014 
 
 
Oct. 01, 2014 
 
 
 
 
 
 
 
 
 
Date of acquisition agreement
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Nov. 20, 2013 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Aggregate purchase price
 
 
 
 
 
 
 
 
 
 
 
 
 
 
6,000,000,000 
 
 
 
235,000,000 
193,000,000 
 
 
 
 
 
 
 
 
 
 
Partnership common units value
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2,825,000,000 
 
 
30,000,000 
 
 
 
 
 
 
 
 
 
 
Units issued for acquisition
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1.0 
 
 
 
 
 
 
 
 
 
 
Number of acres acquired
 
 
 
 
 
 
 
 
 
 
 
 
 
 
82,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Gains and losses on asset sales
 
(11,000,000)
 
1,072,000,000 
(11,000,000)
 
 
 
 
 
1,100,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Gains and losses on assets sales after tax
 
 
 
 
 
 
 
 
 
 
600,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Decrease in goodwill for sale of assets
 
 
 
 
 
 
 
 
 
 
(700,000,000)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Foreign currency exchange loss
(84,000,000)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loss on derivative
 
 
 
 
 
29,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Foreign earnings repatriated
2,800,000,000 
 
2,000,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Proceeds from property and equipment divestitures
 
 
 
5,202,000,000 
316,000,000 
 
2,800,000,000 
3,125,000,000 
142,000,000 
155,000,000 
 
2,300,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Proceeds after tax from property and equipment divestitures
 
 
 
 
 
 
 
 
 
 
 
1,700,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Asset retirement obligation transferred
 
 
 
949,000,000 
15,000,000 
 
 
 
 
 
700,000,000 
200,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Repayment of commercial paper
700,000,000 
 
 
1,300,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Long term debt repayment
 
 
 
$ 4,265,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 2,000,000,000 
Acquisitions And Divestitures (Schedule Of Purchase Price Allocation For EnLink) (Details) (USD $)
In Millions, unless otherwise specified
Sep. 30, 2014
Dec. 31, 2013
Mar. 7, 2014
EnLink [Member]
Assets acquired:
 
 
 
Current assets
 
 
$ 438 
Property, plant and equipment, net
 
 
2,438 
Intangible assets
 
 
547 
Equity investment
 
 
222 
Goodwill
8,310 
5,858 
3,292 1
Other long-term assets
 
 
Liabilities assumed:
 
 
 
Current liabilities
 
 
(516)
Long-term debt
 
 
(1,454)
Deferred income taxes
 
 
(203)
Other long-term liabilities
 
 
(101)
Total consideration and fair value of noncontrolling interests
 
 
$ 4,664 
Acquisitions And Divestitures (Schedule Of Purchase Price Allocation For GeoSouthern Intermediate Holdings) (Details) (GeoSouthern Intermediate Holdings, LLC [Member], USD $)
In Millions, unless otherwise specified
Feb. 28, 2014
GeoSouthern Intermediate Holdings, LLC [Member]
 
Business Acquisition [Line Items]
 
Cash and cash equivalents
$ 95 
Other current assets
256 
Proved properties
5,029 
Unproved properties
1,008 
Midstream assets
85 
Current liabilities
(437)
Long-term liabilities
(6)
Net assets acquired
$ 6,030 
Derivative Financial Instruments (Narrative) (Details) (USD $)
In Millions, unless otherwise specified
Sep. 30, 2014
Derivative Financial Instruments [Abstract]
 
Derivative collateral
$ 31 
Derivative Financial Instruments (Schedule Of Open Oil Derivative Positions) (Details)
9 Months Ended
Sep. 30, 2014
bbl
NYMEX West Texas Intermediate Price Swaps Oil Q4 2014 [Member]
 
Derivatives, Fair Value [Line Items]
 
Volume Per Day (Bbls/d)
75,000 
Weighted Average Price Swap
94.14 
NYMEX West Texas Intermediate Price Collars Oil Q4 2014 [Member]
 
Derivatives, Fair Value [Line Items]
 
Volume Per Day (Bbls/d)
64,750 
Weighted Average Floor Price
89.33 
Weighted Average Ceiling Price
100.00 
NYMEX West Texas Intermediate Call Options Sold Oil Q4 2014 [Member]
 
Derivatives, Fair Value [Line Items]
 
Volume Per Day (Bbls/d)
42,000 
Weighted Average Call Option Sold Price
116.43 
NYMEX West Texas Intermediate Price Swaps Oil Q1 - Q4 2015 [Member]
 
Derivatives, Fair Value [Line Items]
 
Volume Per Day (Bbls/d)
106,736 
Weighted Average Price Swap
91.22 
NYMEX West Texas Intermediate Price Collars Oil Q1 - Q4 2015 [Member]
 
Derivatives, Fair Value [Line Items]
 
Volume Per Day (Bbls/d)
31,500 
Weighted Average Floor Price
89.67 
Weighted Average Ceiling Price
97.84 
NYMEX West Texas Intermediate Call Options Sold Oil Q1 - Q4 2015 [Member]
 
Derivatives, Fair Value [Line Items]
 
Volume Per Day (Bbls/d)
28,000 
Weighted Average Call Option Sold Price
116.43 
NYMEX West Texas Intermediate Call Options Sold Oil Q1 - Q4 2016 [Member]
 
Derivatives, Fair Value [Line Items]
 
Volume Per Day (Bbls/d)
18,500 
Weighted Average Call Option Sold Price
103.11 
Western Canadian Select Basis Swaps Oil Q4 2014 [Member]
 
Derivatives, Fair Value [Line Items]
 
Volume Per Day (Bbls/d)
50,000 
Weighted Average Differential To WTI
(17.40)
Western Canadian Select Basis Swaps Oil Q1 - Q4 2015 [Member]
 
Derivatives, Fair Value [Line Items]
 
Volume Per Day (Bbls/d)
14,890 
Weighted Average Differential To WTI
(18.92)
Derivative Financial Instruments (Schedule Of Open Natural Gas Derivative Positions) (Details)
9 Months Ended
Sep. 30, 2014
MMBTU
FERC Henry Hub Price Swaps Natural Gas Q4 2014 [Member]
 
Derivatives, Fair Value [Line Items]
 
Volume Per Day (MMBtu/d)
800,000 
Weighted Average Price Swap
4.42 
FERC Henry Hub Price Collars Natural Gas Q4 2014 [Member]
 
Derivatives, Fair Value [Line Items]
 
Volume Per Day (MMBtu/d)
460,000 
Weighted Average Floor Price
4.03 
Weighted Average Ceiling Price
4.51 
FERC Henry Hub Call Options Sold Natural Gas Q4 2014 [Member]
 
Derivatives, Fair Value [Line Items]
 
Volume Per Day (MMBtu/d)
500,000 
Weighted Average Call Option Sold Price
5.00 
FERC Henry Hub Price Swaps Natural Gas Q1- Q4 2015 [Member]
 
Derivatives, Fair Value [Line Items]
 
Volume Per Day (MMBtu/d)
210,000 
Weighted Average Price Swap
4.38 
FERC Henry Hub Price Collars Natural Gas Q1- Q4 2015 [Member]
 
Derivatives, Fair Value [Line Items]
 
Volume Per Day (MMBtu/d)
260,000 
Weighted Average Floor Price
4.05 
Weighted Average Ceiling Price
4.36 
FERC Henry Hub Call Options Sold Natural Gas Q1- Q4 2015 [Member]
 
Derivatives, Fair Value [Line Items]
 
Volume Per Day (MMBtu/d)
550,000 
Weighted Average Call Option Sold Price
5.09 
FERC Henry Hub Call Options Sold Natural Gas Q1- Q4 2016 [Member]
 
Derivatives, Fair Value [Line Items]
 
Volume Per Day (MMBtu/d)
400,000 
Weighted Average Call Option Sold Price
5.00 
AECO Basis Swaps Natural Gas Q4 2014 [Member]
 
Derivatives, Fair Value [Line Items]
 
Volume Per Day (MMBtu/d)
94,781 
Weighted Average Differential To Henry Hub
(0.52)
PEPL Basis Swaps Natural Gas Q1 - Q4 2015 [Member]
 
Derivatives, Fair Value [Line Items]
 
Volume Per Day (MMBtu/d)
100,000 
Weighted Average Differential To Henry Hub
(0.28)
Derivative Financial Instruments (Schedule Of Open Interest Rate Swap Derivative Positions) (Details) (USD $)
In Millions, unless otherwise specified
9 Months Ended
Sep. 30, 2014
Interest Rate Contract Expiration December 2016 [Member]
 
Derivative [Line Items]
 
Notional
$ 100 
Rate Received
Three Month LIBOR 
Rate Paid
0.92% 
Expiration
Dec. 01, 2016 
Interest Rate Contract Expiration January 2019 [Member]
 
Derivative [Line Items]
 
Notional
$ 100 
Rate Received
1.76% 
Rate Paid
Three Month LIBOR 
Expiration
Jan. 01, 2019 
Derivative Financial Instruments (Schedule Of Open Foreign Exchange Rate Derivative Positions) (Details) (Forward Contract Expiration December 2014 [Member], CAD $)
In Millions, unless otherwise specified
9 Months Ended
Sep. 30, 2014
Forward Contract Expiration December 2014 [Member]
 
Derivative [Line Items]
 
Currency
Canadian Dollar 
Contract Type
Sell 
CAD Notional
$ 1,312 
Weighted Average Fixed Rate Received
0.899 
Expiration
Dec. 01, 2014 
Derivative Financial Instruments (Schedule Of Derivative Financial Instruments Included In The Consolidated Comprehensive Statement Of Earnings) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2014
Sep. 30, 2013
Sep. 30, 2014
Sep. 30, 2013
Derivatives, Fair Value [Line Items]
 
 
 
 
Net gain (losses) recognized in comprehensive statements of earnings
$ 804 
$ (168)
$ 43 
$ (65)
Commodity Derivatives [Member]
 
 
 
 
Derivatives, Fair Value [Line Items]
 
 
 
 
Net gain (losses) recognized in comprehensive statements of earnings
748 
(141)
29 
(95)
Interest Rate Derivatives [Member]
 
 
 
 
Derivatives, Fair Value [Line Items]
 
 
 
 
Net gain (losses) recognized in comprehensive statements of earnings
 
Foreign Currency Derivatives [Member]
 
 
 
 
Derivatives, Fair Value [Line Items]
 
 
 
 
Net gain (losses) recognized in comprehensive statements of earnings
55 
(28)
15 
29 
EnLink [Member] |
Commodity Derivatives [Member]
 
 
 
 
Derivatives, Fair Value [Line Items]
 
 
 
 
Net gain (losses) recognized in comprehensive statements of earnings
$ 1 
 
$ (2)
 
Derivative Financial Instruments (Schedule Of Derivative Financial Instruments Included In The Consolidated Balance Sheets) (Details) (USD $)
In Millions, unless otherwise specified
Sep. 30, 2014
Dec. 31, 2013
Derivatives, Fair Value [Line Items]
 
 
Fair value of derivative assets
$ 310 
$ 103 
Fair value of derivative liabilities
84 
121 
Commodity Derivatives [Member] |
Other Current Assets [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Fair value of derivative assets
231 
75 
Commodity Derivatives [Member] |
Other Long-Term Assets [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Fair value of derivative assets
66 
28 
Commodity Derivatives [Member] |
Other Current Liabilities [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Fair value of derivative liabilities
30 
58 
Commodity Derivatives [Member] |
Other Long-Term Liabilities [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Fair value of derivative liabilities
50 
62 
Interest Rate Derivatives [Member] |
Other Current Assets [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Fair value of derivative assets
 
Interest Rate Derivatives [Member] |
Other Current Liabilities [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Fair value of derivative liabilities
 
Interest Rate Derivatives [Member] |
Other Long-Term Liabilities [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Fair value of derivative liabilities
 
Foreign Currency Derivatives [Member] |
Other Current Assets [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Fair value of derivative assets
11 
 
Foreign Currency Derivatives [Member] |
Other Current Liabilities [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Fair value of derivative liabilities
 
EnLink [Member] |
Commodity Derivatives [Member] |
Other Current Assets [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Fair value of derivative assets
 
EnLink [Member] |
Commodity Derivatives [Member] |
Other Current Liabilities [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Fair value of derivative liabilities
 
EnLink [Member] |
Commodity Derivatives [Member] |
Other Long-Term Liabilities [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Fair value of derivative liabilities
$ 1 
 
Share-Based Compensation (Narrative) (Details) (USD $)
In Millions, unless otherwise specified
9 Months Ended
Sep. 30, 2014
Sep. 30, 2013
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
Unit-based compensation
$ 155 
$ 118 
Restricted Stock Awards And Units [Member]
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
Unrecognized compensation cost related to unvested awards, units and stock options
225 
 
Weighted average period for recognition of cost of unvested awards, units and stock options
2 years 4 months 24 days 
 
Performance-Based Restricted Stock Awards [Member]
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
Unrecognized compensation cost related to unvested awards, units and stock options
 
Weighted average period for recognition of cost of unvested awards, units and stock options
1 year 4 months 24 days 
 
Performance Share Units [Member]
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
Unrecognized compensation cost related to unvested awards, units and stock options
40 
 
Weighted average period for recognition of cost of unvested awards, units and stock options
1 year 7 months 6 days 
 
EnLink [Member]
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
Unit-based compensation
$ 11 
 
Share-Based Compensation (Schedule Of The Effects Of Share Based Compensation Included In The Consolidated Comprehensive Statement Of Earnings) (Details) (USD $)
In Millions, unless otherwise specified
9 Months Ended
Sep. 30, 2014
Sep. 30, 2013
Share-based Compensation [Abstract]
 
 
Gross general and administrative expense
$ 155 
$ 118 
Share-based compensation expense capitalized pursuant to the full-cost method of accounting for oil and gas properties
40 
44 
Related income tax benefit
$ 20 
$ 17 
Share-Based Compensation (Summary Of Unvested Restricted Stock Awards And Units, Including Changes During The Year) (Details) (Restricted Stock Awards And Units [Member], USD $)
In Thousands, except Per Share data, unless otherwise specified
9 Months Ended
Sep. 30, 2014
Restricted Stock Awards And Units [Member]
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
Unvested at December 31, 2013
3,292 
Granted, awards and units
3,412 
Vested, awards and units
(558)
Forfeited, awards and units
(607)
Unvested at September 30, 2014
5,539 
Unvested weighted average grant-date fair value at December 31, 2013
$ 59.76 
Granted, weighted average grant-date fair value
$ 63.53 
Vested, weighted average grant-date fair value
$ 60.65 
Forfeited, weighted average grant-date fair value
$ 60.96 
Unvested weighted average grant-date fair value at September 30, 2014
$ 61.73 
Share-Based Compensation (Summary Of Performance-Based Restricted Stock Awards) (Details) (Performance-Based Restricted Stock Awards [Member], USD $)
In Thousands, except Per Share data, unless otherwise specified
9 Months Ended
Sep. 30, 2014
Performance-Based Restricted Stock Awards [Member]
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
Unvested at December 31, 2013
316 
Granted, awards
234 
Vested, awards
(75)
Unvested at September 30, 2014
475 
Unvested weighted average grant-date fair value at December 31, 2013
$ 56.25 
Granted, weighted average grant-date fair value
$ 61.33 
Vested, weighted average grant-date fair value
$ 53.45 
Unvested weighted average grant-date fair value at September 30, 2014
$ 59.20 
Share-Based Compensation (Summary Of The Grant Date Fair Values Of Performance Share Units) (Details) (Performance Share Units [Member], USD $)
9 Months Ended
Sep. 30, 2014
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
Granted, grant-date fair value
$ 77.77 
Risk-free interest rate
0.54% 
Volatility factor
28.80% 
Contractual term (in years)
2 years 10 months 21 days 
Minimum [Member]
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
Granted, grant-date fair value
$ 70.18 
Maximum [Member]
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
Granted, grant-date fair value
$ 81.05 
Share-Based Compensation (Summary Of Performance Share Units) (Details) (Performance Share Units [Member], USD $)
9 Months Ended
Sep. 30, 2014
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
Unvested at December 31, 2013
925,000 
Granted, units
708,000 
Forfeited, units
(147,000)
Unvested at September 30, 2014
1,486,000 1
Unvested weighted average grant-date fair value at December 31, 2013
$ 66.64 
Granted, weighted average grant-date fair value
$ 77.77 
Forfeited, weighted average grant-date fair value
$ 77.25 
Unvested weighted average grant-date fair value at September 30, 2014
$ 70.89 1
Maximum [Member]
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
Granted, weighted average grant-date fair value
$ 81.05 
Maximum [Member] |
Forecast [Member]
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
Maximum common shares awarded based upon total shareholder return
3,000,000 
Asset Impairments (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2013
Sep. 30, 2013
Impaired Long-Lived Assets Held and Used [Line Items]
 
 
Asset impairment charges, gross
$ 7 
$ 1,960 
Asset impairment charges, net of taxes
 
1,343 
U.S. Oil And Gas Assets [Member]
 
 
Impaired Long-Lived Assets Held and Used [Line Items]
 
 
Asset impairment charges, gross
 
1,110 
Asset impairment charges, net of taxes
 
707 
Canada Oil And Gas Assets [Member]
 
 
Impaired Long-Lived Assets Held and Used [Line Items]
 
 
Asset impairment charges, gross
 
843 
Asset impairment charges, net of taxes
 
632 
Midstream Assets [Member]
 
 
Impaired Long-Lived Assets Held and Used [Line Items]
 
 
Asset impairment charges, gross
 
Asset impairment charges, net of taxes
 
$ 4 
Restructuring Costs (Narrative) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended 3 Months Ended 9 Months Ended
Sep. 30, 2014
Sep. 30, 2013
Sep. 30, 2014
Sep. 30, 2013
Dec. 31, 2013
Office Consolidation [Member]
Sep. 30, 2014
Employee Related And Other Costs [Member]
Canada Divestiture [Member]
Sep. 30, 2014
Employee Related And Other Costs [Member]
Canada Divestiture [Member]
Sep. 30, 2014
Accelerated Vesting Of Share-Based Grants For Employees [Member]
Canada Divestiture [Member]
Restructuring Cost and Reserve [Line Items]
 
 
 
 
 
 
 
 
Restructuring charges
$ 2 
$ 4 
$ 44 
$ 50 
 
$ 2 
$ 44 
$ 15 
Restructuring costs incurred to date
 
 
 
 
$ 134 
 
 
 
Restructuring Costs (Schedule Of The Components Of Restructuring Costs Included In The Consolidated Statements Of Earnings) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2014
Sep. 30, 2013
Sep. 30, 2014
Sep. 30, 2013
Restructuring Cost and Reserve [Line Items]
 
 
 
 
Restructuring costs
$ 2 
$ 4 
$ 44 
$ 50 
Employee Related And Other Costs [Member] |
Canada Divestiture [Member]
 
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
 
Restructuring costs
 
44 
 
Lease Obligations And Other [Member] |
Office Consolidation [Member]
 
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
 
Restructuring costs
 
$ 4 
 
$ 50 
Restructuring Costs (Schedule Of The Activity And Balances Associated With Restructuring Liabilities) (Details) (USD $)
In Millions, unless otherwise specified
9 Months Ended
Sep. 30, 2014
Dec. 31, 2013
Sep. 30, 2013
Dec. 31, 2012
Sep. 30, 2014
Other Current Liabilities [Member]
Dec. 31, 2013
Other Current Liabilities [Member]
Sep. 30, 2013
Other Current Liabilities [Member]
Dec. 31, 2012
Other Current Liabilities [Member]
Sep. 30, 2014
Other Long-Term Liabilities [Member]
Dec. 31, 2013
Other Long-Term Liabilities [Member]
Sep. 30, 2013
Other Long-Term Liabilities [Member]
Dec. 31, 2012
Other Long-Term Liabilities [Member]
Sep. 30, 2014
Canada Divestiture [Member]
Sep. 30, 2014
Canada Divestiture [Member]
Other Current Liabilities [Member]
Sep. 30, 2014
Canada Divestiture [Member]
Other Long-Term Liabilities [Member]
Sep. 30, 2014
Office Consolidation [Member]
Sep. 30, 2013
Office Consolidation [Member]
Sep. 30, 2014
Office Consolidation [Member]
Other Current Liabilities [Member]
Sep. 30, 2013
Office Consolidation [Member]
Other Current Liabilities [Member]
Sep. 30, 2014
Office Consolidation [Member]
Other Long-Term Liabilities [Member]
Sep. 30, 2013
Office Consolidation [Member]
Other Long-Term Liabilities [Member]
Sep. 30, 2014
Offshore Divestiture [Member]
Sep. 30, 2013
Offshore Divestiture [Member]
Sep. 30, 2014
Offshore Divestiture [Member]
Other Current Liabilities [Member]
Sep. 30, 2013
Offshore Divestiture [Member]
Other Current Liabilities [Member]
Sep. 30, 2014
Offshore Divestiture [Member]
Other Long-Term Liabilities [Member]
Sep. 30, 2013
Offshore Divestiture [Member]
Other Long-Term Liabilities [Member]
Restructuring Cost and Reserve [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Beginning balance
$ 23 
$ 45 
$ 53 
$ 61 
$ 5 
$ 27 
$ 34 
$ 52 
$ 18 
$ 18 
$ 19 
$ 9 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Restructuring reserve activity
 
 
 
 
 
 
 
 
 
 
 
 
(23)
(5)
(22)
(16)
(1)
11 
(3)
(3)
(2)
(2)
(1)
(1)
Ending balance
$ 23 
$ 45 
$ 53 
$ 61 
$ 5 
$ 27 
$ 34 
$ 52 
$ 18 
$ 18 
$ 19 
$ 9 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income Taxes (Narrative) (Details) (USD $)
3 Months Ended 9 Months Ended
Sep. 30, 2014
Jun. 30, 2014
Sep. 30, 2013
Jun. 30, 2013
Sep. 30, 2014
Sep. 30, 2013
Mar. 31, 2014
Income Tax [Line Items]
 
 
 
 
 
 
 
Current income tax expense (benefit)
 
 
 
$ 100,000,000 
 
 
 
Foreign earnings repatriated
 
2,800,000,000 
 
2,000,000,000 
 
 
 
Deferred tax liabilities, taxes on unremitted foreign earnings
 
143,000,000 
 
 
 
 
 
Deferred tax liability on formation of EnLink
 
 
 
 
 
 
48,000,000 
Income tax expense (benefit)
613,000,000 
 
210,000,000 
 
1,698,000,000 
(99,000,000)
 
Repatriated Foreign Earnings [Member]
 
 
 
 
 
 
 
Income Tax [Line Items]
 
 
 
 
 
 
 
Income tax expense (benefit)
 
247,000,000 
 
 
 
 
 
U.S. Non-Core Asset Divestiture [Member]
 
 
 
 
 
 
 
Income Tax [Line Items]
 
 
 
 
 
 
 
Current income tax expense (benefit)
$ 543,000,000 
 
 
 
 
 
 
Income Taxes (Schedule Of Effective Income Tax Reconciliation) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2014
Sep. 30, 2013
Sep. 30, 2014
Sep. 30, 2013
Income Taxes [Abstract]
 
 
 
 
Total income tax expense (benefit)
$ 613 
$ 210 
$ 1,698 
$ (99)
U.S. statutory income tax rate
35.00% 
35.00% 
35.00% 
(35.00%)
Repatriations
 
 
7.00% 
 
State income taxes
2.00% 
1.00% 
1.00% 
(3.00%)
Taxation on Canadian operations
 
(5.00%)
1.00% 
9.00% 
Taxes on EnLink formation
 
 
1.00% 
 
Other
 
2.00% 
 
(1.00%)
Effective income tax rate
37.00% 
33.00% 
45.00% 
(30.00%)
Earnings (Loss) Per Share Attributable To Devon (Earnings Per Share Computations) (Details) (USD $)
In Millions, except Per Share data, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2014
Sep. 30, 2013
Sep. 30, 2014
Sep. 30, 2013
Net earnings (loss) per share attributable to Devon:
 
 
 
 
Net earnings (loss) attributable to Devon
$ 1,016 
$ 429 
$ 2,015 
$ (227)
Net earnings (loss) attributable to Devon, Common Shares
409 
406 
408 
406 
Attributable to participating securities, Earnings (loss)
(11)
(4)
(20)
(2)
Attributable to participating securities, Common Shares
(4)
(4)
(4)
(4)
Basic earnings (loss) per share, Earnings (loss)
1,005 
425 
1,995 
(229)
Basic earnings (loss) per share, Common Shares
405 
402 
404 
402 
Basic earnings (loss) per share, Earnings (loss) per Share
$ 2.48 
$ 1.06 
$ 4.94 
$ (0.57)
Dilutive effect of potential common shares issuable, Common Shares
 
Diluted earnings (loss) per share, Earnings (loss)
$ 1,005 
$ 425 
$ 1,995 
$ (229)
Diluted earnings (loss) per share, Common Shares
407 
403 
406 
402 
Diluted earnings (loss) per share, Earnings (loss) Per Share
$ 2.47 
$ 1.05 
$ 4.91 
$ (0.57)
Antidilutive securities excluded from computation of earnings per share, amount
1.1 
7.5 
3.2 
7.6 
Other Comprehensive Earnings (Components Of Other Comprehensive Earnings) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2014
Sep. 30, 2013
Sep. 30, 2014
Sep. 30, 2013
Dec. 31, 2013
Foreign currency translation:
 
 
 
 
 
Beginning accumulated foreign currency translation
$ 1,442 
$ 1,542 
$ 1,448 
$ 1,996 
 
Change in cumulative translation adjustment
(299)
182 
(306)
(294)
 
Income tax benefit (expense)
20 
(9)
21 
13 
 
Ending accumulated foreign currency translation
1,163 
1,715 
1,163 
1,715 
 
Pension and postretirement benefit plans:
 
 
 
 
 
Beginning accumulated pension and postretirement benefits
(172)
(216)
(180)
(225)
 
Recognition of net actuarial loss and prior service cost in earnings
1
1
15 1
18 1
 
Income tax expense
(2)
(3)
(5)
(6)
 
Ending accumulated pension and postretirement benefits
(170)
(213)
(170)
(213)
 
Accumulated other comprehensive earnings, net of tax
$ 993 
$ 1,502 
$ 993 
$ 1,502 
$ 1,268 
Supplemental Information To Cash Flows (Schedule Of Supplemental To Cash Flow Information) (Details) (USD $)
In Millions, unless otherwise specified
9 Months Ended 0 Months Ended
Sep. 30, 2014
Sep. 30, 2013
Mar. 7, 2014
EnLink [Member]
Net change in working capital accounts:
 
 
 
Accounts receivable
$ (25)
$ (287)
 
Other current assets
(120)
72 
 
Accounts payable
(118)
127 
 
Income taxes payable
704 
 
Revenues and royalties payable
381 
56 
 
Other current liabilities
(56)
(79)
 
Net change in working capital
766 
(104)
 
Interest paid (net of capitalized interest)
355 
342 
 
Income taxes paid (received)
214 
(2)
 
Cash payment to acquire interest
 
 
$ 100 
Accounts Receivable (Schedule Of Components Of Accounts Receivable) (Details) (USD $)
In Millions, unless otherwise specified
Sep. 30, 2014
Dec. 31, 2013
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Joint interest billings
$ 393 
$ 447 
Other
54 
61 
Gross accounts receivable
2,020 
1,531 
Allowance for doubtful accounts
(11)
(11)
Net accounts receivable
2,009 
1,520 
Oil, Gas And NGL Sales [Member]
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Gross accounts receivable
899 
851 
Marketing And Midstream Revenues [Member]
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Gross accounts receivable
$ 674 
$ 172 
Goodwill (Narrative) (Details) (USD $)
9 Months Ended
Sep. 30, 2014
Dec. 31, 2013
Goodwill [Line Items]
 
 
Goodwill
$ 8,310,000,000 
$ 5,858,000,000 
EnLink [Member]
 
 
Goodwill [Line Items]
 
 
Goodwill
3,695,000,000 
402,000,000 
Increase in goodwill due to contribution to EnLink
$ 3,300,000,000 
 
Goodwill (Schedule Of Goodwill By Reporting Segment) (Details) (USD $)
In Millions, unless otherwise specified
Sep. 30, 2014
Dec. 31, 2013
Goodwill [Line Items]
 
 
Goodwill
$ 8,310 
$ 5,858 
United States [Member]
 
 
Goodwill [Line Items]
 
 
Goodwill
2,618 
2,618 
Canada [Member]
 
 
Goodwill [Line Items]
 
 
Goodwill
1,997 
2,838 
EnLink [Member]
 
 
Goodwill [Line Items]
 
 
Goodwill
$ 3,695 
$ 402 
Debt (Narrative) (Details) (USD $)
3 Months Ended 9 Months Ended 0 Months Ended 0 Months Ended 9 Months Ended 9 Months Ended 9 Months Ended
Jun. 30, 2014
Sep. 30, 2014
Dec. 31, 2013
Sep. 30, 2014
Senior Credit Facility [Member]
Sep. 30, 2014
Maximum [Member]
Senior Credit Facility [Member]
Feb. 28, 2014
GeoSouthern Intermediate Holdings, LLC [Member]
Feb. 28, 2014
GeoSouthern Intermediate Holdings, LLC [Member]
Term Loan [Member]
Sep. 30, 2014
E2 Energy Services LLC [Member]
Mar. 7, 2014
EnLink [Member]
Sep. 30, 2014
EnLink [Member]
Unsecured Revolving Credit Facility [Member]
Sep. 30, 2014
EnLink [Member]
Unsecured Letter Of Credit Subfacility [Member]
Sep. 30, 2014
EnLink [Member]
Credit Facilities [Member]
Sep. 30, 2014
EnLink [Member]
Letter Of Credit Subfacility [Member]
Sep. 30, 2014
EnLink [Member]
Minimum [Member]
Credit Facilities [Member]
item
Sep. 30, 2014
EnLink [Member]
Maximum [Member]
Unsecured Revolving Credit Facility [Member]
item
Sep. 30, 2014
EnLink [Member]
Maximum [Member]
Unsecured Revolving Credit Facility [Member]
Acquisition Period [Member]
item
Sep. 30, 2014
EnLink [Member]
Maximum [Member]
Credit Facilities [Member]
item
Sep. 30, 2014
EnLink [Member]
Maximum [Member]
Credit Facilities [Member]
Acquisition Period [Member]
item
Sep. 30, 2014
EnLink [Member]
E2 Energy Services LLC [Member]
Addtional Credit Agreement [Member]
Debt Instrument [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Outstanding commercial paper
 
$ 0 
$ 1,317,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Repayment of commercial paper
700,000,000 
1,300,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Credit Facility, borrowing capacity
 
 
 
3,000,000,000 
 
 
 
 
 
1,000,000,000 
500,000,000 
250,000,000 
125,000,000 
 
 
 
 
 
30,000,000 
Credit Facility, remaining borrowing capacity
 
 
 
 
 
 
 
 
 
615,000,000 
 
 
 
 
 
 
 
 
 
Outstanding Credit Facility borrowings
 
 
 
 
 
 
 
 
371,000,000 
14,000,000 
81,000,000 
 
 
 
 
 
 
26,000,000 
Covenant description
 
 
 
 
 
 
 
 
 
The credit facility contains certain financial, operational and legal covenants. Among other things, these covenants include maintaining a ratio of consolidated indebtedness to EnLink's consolidated EBITDA (as defined in the credit facility, which definition includes projected EnLink EBITDA from certain capital expansion projects) of no more than 5.0 to 1.0. If EnLink consummates one or more acquisitions in which the aggregate purchase price is $50 million or more, the maximum allowed ratio of consolidated indebtedness to EnLink's consolidated EBITDA will increase to 5.5 to 1.0 for the quarter of the acquisition and the three following quarters. 
 
The financial covenants will be tested on a quarterly basis, based on the rolling four-quarter period that ends on the last day of each fiscal quarter, and include (i) maintaining a maximum consolidated leverage ratio (as defined in the credit facility, but generally computed as the ratio of consolidated funded indebtedness to consolidated earnings before interest, taxes, depreciation, amortization and certain other non-cash charges) of 4.00 to 1.00, provided that the maximum consolidated leverage ratio is 4.50 to 1.00 during an acquisition period (as defined in the credit facility) and (ii) maintaining a minimum consolidated interest coverage ratio (as defined in the credit facility, but generally computed as the ratio of consolidated earnings before interest, taxes, depreciation, amortization and certain other non-cash charges to consolidated interest charges) of 2.50 to 1.00 at all times prior to the occurrence of an investment grade event (as defined in the credit facility). 
 
 
 
 
 
 
 
Debt-to-capitalization ratio
 
 
 
0.227 
0.65 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Ratio of consolidated indebtness
 
 
 
 
 
 
 
 
 
 
 
 
 
 
5.0 
5.5 
 
 
 
Aggregate purchase price of acquisitions
 
 
 
 
 
6,000,000,000 
 
 
 
50,000,000 
 
 
 
 
 
 
 
 
 
Promissory note for vehicle fleet
 
 
 
 
 
 
 
400,000 
 
 
 
 
 
 
 
 
 
 
 
Consolidated leverage ratio
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
4.00 
4.50 
 
Ratio of consolidated earnings to consolidated interest charges
 
 
 
 
 
 
 
 
 
 
 
 
 
2.50 
 
 
 
 
 
Debt instrument, face amount
 
 
 
 
 
 
2,000,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
Debt, maturity date
 
 
 
 
 
 
 
 
 
Mar. 07, 2019 
 
Mar. 07, 2019 
 
 
 
 
 
 
 
Fair value of debt assumed
 
 
 
 
 
 
 
 
$ 1,454,000,000 
 
 
 
 
 
 
 
 
 
 
Debt (Schedule Of Debt Instruments) (Details) (USD $)
In Millions, unless otherwise specified
9 Months Ended 12 Months Ended
Sep. 30, 2014
Dec. 31, 2013
Debt Instrument [Line Items]
 
 
Commercial paper
$ 0 
$ 1,317 
Net discount on debentures and notes
(20)
(20)
Total debt
12,059 
12,022 
Less amount classified as short-term debt
1,898 1
4,066 1
Long-term debt
10,161 
7,956 
5.625% Due January 15, 2014 [Member]
 
 
Debt Instrument [Line Items]
 
 
Debt interest rate, stated percentage
5.625% 
5.625% 
Debt, maturity date
Jan. 15, 2014 
Jan. 15, 2014 
Short-term debt
 
500 
Floating Rate Due December 15, 2015 [Member]
 
 
Debt Instrument [Line Items]
 
 
Debt, maturity date
Dec. 15, 2015 
Dec. 15, 2015 
Short-term debt
 
500 
Long term debt, gross
500 
 
2.40% Due July 15, 2016 [Member]
 
 
Debt Instrument [Line Items]
 
 
Debt interest rate, stated percentage
2.40% 
2.40% 
Debt, maturity date
Jul. 15, 2016 
Jul. 15, 2016 
Short-term debt
500 
 
Long term debt, gross
 
500 
Floating Rate Due December 15, 2016 [Member]
 
 
Debt Instrument [Line Items]
 
 
Debt, maturity date
Dec. 15, 2016 
Dec. 15, 2016 
Short-term debt
 
350 
Long term debt, gross
350 
 
1.20% Due December 15, 2016 [Member]
 
 
Debt Instrument [Line Items]
 
 
Debt interest rate, stated percentage
1.20% 
1.20% 
Debt, maturity date
Dec. 15, 2016 
Dec. 15, 2016 
Short-term debt
650 
650 
1.875% due May 15, 2017 [Member]
 
 
Debt Instrument [Line Items]
 
 
Debt interest rate, stated percentage
1.875% 
1.875% 
Debt, maturity date
May 15, 2017 
May 15, 2017 
Short-term debt
750 
 
Long term debt, gross
 
750 
8.25% Due July 1, 2018 [Member]
 
 
Debt Instrument [Line Items]
 
 
Debt interest rate, stated percentage
8.25% 
8.25% 
Debt, maturity date
Jul. 01, 2018 
Jul. 01, 2018 
Long term debt, gross
125 
125 
2.25% Due December 15, 2018 [Member]
 
 
Debt Instrument [Line Items]
 
 
Debt interest rate, stated percentage
2.25% 
2.25% 
Debt, maturity date
Dec. 15, 2018 
Dec. 15, 2018 
Short-term debt
 
750 
Long term debt, gross
750 
 
6.30% Due January 15, 2019 [Member]
 
 
Debt Instrument [Line Items]
 
 
Debt interest rate, stated percentage
6.30% 
6.30% 
Debt, maturity date
Jan. 15, 2019 
Jan. 15, 2019 
Long term debt, gross
700 
700 
4.00% Due July 15, 2021 [Member]
 
 
Debt Instrument [Line Items]
 
 
Debt interest rate, stated percentage
4.00% 
4.00% 
Debt, maturity date
Jul. 15, 2021 
Jul. 15, 2021 
Long term debt, gross
500 
500 
3.25% due May 15, 2022 [Member]
 
 
Debt Instrument [Line Items]
 
 
Debt interest rate, stated percentage
3.25% 
3.25% 
Debt, maturity date
May 15, 2022 
May 15, 2022 
Long term debt, gross
1,000 
1,000 
7.50% Due September 15, 2027 [Member]
 
 
Debt Instrument [Line Items]
 
 
Debt interest rate, stated percentage
7.50% 
7.50% 
Debt, maturity date
Sep. 15, 2027 
Sep. 15, 2027 
Long term debt, gross
150 
150 
7.875% Due September 30, 2031 [Member]
 
 
Debt Instrument [Line Items]
 
 
Debt interest rate, stated percentage
7.875% 
7.875% 
Debt, maturity date
Sep. 30, 2031 
Sep. 30, 2031 
Long term debt, gross
1,250 
1,250 
7.95% due April 15, 2032 [Member]
 
 
Debt Instrument [Line Items]
 
 
Debt interest rate, stated percentage
7.95% 
7.95% 
Debt, maturity date
Apr. 15, 2032 
Apr. 15, 2032 
Long term debt, gross
1,000 
1,000 
5.60% due July 15, 2041 [Member]
 
 
Debt Instrument [Line Items]
 
 
Debt interest rate, stated percentage
5.60% 
5.60% 
Debt, maturity date
Jul. 15, 2041 
Jul. 15, 2041 
Long term debt, gross
1,250 
1,250 
4.75% due May 15, 2042 [Member]
 
 
Debt Instrument [Line Items]
 
 
Debt interest rate, stated percentage
4.75% 
4.75% 
Debt, maturity date
May 15, 2042 
May 15, 2042 
Long term debt, gross
750 
750 
Senior Notes For Acquisition of GeoSouthern [Member]
 
 
Debt Instrument [Line Items]
 
 
Long term debt, gross
2,250 
 
Devon Debt [Member]
 
 
Debt Instrument [Line Items]
 
 
Total debt
10,205 
12,022 
GeoSouthern Intermediate Holdings, LLC [Member]
 
 
Debt Instrument [Line Items]
 
 
Short-term debt
 
2,250 
EnLink [Member]
 
 
Debt Instrument [Line Items]
 
 
Net premium on debentures and notes
13 
 
Total debt
1,854 
 
EnLink [Member] |
Credit Facilities [Member]
 
 
Debt Instrument [Line Items]
 
 
Long term debt, gross
451 
 
EnLink [Member] |
Other Borrowings [Member]
 
 
Debt Instrument [Line Items]
 
 
Long term debt, gross
27 
 
EnLink [Member] |
2.70% Due April 1, 2019 [Member]
 
 
Debt Instrument [Line Items]
 
 
Debt interest rate, stated percentage
2.70% 
 
Debt, maturity date
Apr. 01, 2019 
 
Long term debt, gross
400 
 
EnLink [Member] |
7.125% Due June 1, 2022 [Member]
 
 
Debt Instrument [Line Items]
 
 
Debt interest rate, stated percentage
7.125% 
 
Debt, maturity date
Jun. 01, 2022 
 
Long term debt, gross
163 
 
EnLink [Member] |
4.40% Due April 1, 2024 [Member]
 
 
Debt Instrument [Line Items]
 
 
Debt interest rate, stated percentage
4.40% 
 
Debt, maturity date
Apr. 01, 2024 
 
Long term debt, gross
450 
 
EnLink [Member] |
5.60% due April 1, 2044 [Member]
 
 
Debt Instrument [Line Items]
 
 
Debt interest rate, stated percentage
5.60% 
 
Debt, maturity date
Apr. 01, 2044 
 
Long term debt, gross
$ 350 
 
[1] Short-term debt as of September 30, 2014 consists of $1.9 billion of senior notes that Devon intends to redeem in the fourth quarter of 2014 prior to their scheduled maturity date. The redemption includes the 2.4% $500 million senior note due 2016, the 1.2% $650 million senior note due 2016 and the 1.875% $750 million senior note due 2017 plus unpaid interest and a make-whole premium. The debt will be repaid with funds received as part of the divestiture program discussed in Note 2.Short-term debt as of December 31, 2013 consists of $2.25 billion of senior notes issued in conjunction with the GeoSouthern acquisition, $1.3 billion of commercial paper and $500 million of senior notes due January 15, 2014. Subsequent to the close of the GeoSouthern acquisition the $2.25 billion of senior notes were reclassified to long-term debt.
Asset Retirement Obligations (Summary Of Changes In Asset Retirement Obligations) (Details) (USD $)
In Millions, unless otherwise specified
9 Months Ended
Sep. 30, 2014
Sep. 30, 2013
Dec. 31, 2013
Asset Retirement Obligations [Abstract]
 
 
 
Asset retirement obligations as of beginning of period
$ 2,228 
$ 2,095 
 
Liabilities incurred
79 
88 
 
Liabilities settled
(38)
(46)
 
Revision of estimated obligation
75 
104 
 
Liabilities assumed by others
(949)
(15)
 
Accretion expense on discounted obligation
70 
86 
 
Foreign currency translation adjustment
(55)
(44)
 
Asset retirement obligations as of end of period
1,410 
2,268 
 
Less current portion
62 
107 
 
Asset retirement obligations, long-term
$ 1,348 
$ 2,161 
$ 2,140 
Retirement Plans (Schedule Of Net Periodic Benefit Cost For Pension And Postretirement Benefit Plans) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2014
Sep. 30, 2013
Sep. 30, 2014
Sep. 30, 2013
Pension Benefits [Member]
 
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
 
Service cost
$ 7 
$ 9 
$ 22 
$ 27 
Interest cost
14 
13 
41 
39 
Expected return on plan assets
(13)
(16)
(40)
(47)
Amortization of prior service cost
1
1
1
1
Net actuarial loss (gain)
1
1
14 1
16 1
Net periodic benefit cost
13 2
12 2
40 2
38 2
Postretirement Benefits [Member]
 
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
 
Interest cost
 
 
 
Amortization of prior service cost
(1)1
 
(1)1
 
Net actuarial loss (gain)
 
 
(1)1
(1)1
Net periodic benefit cost
$ (1)2
 
$ (2)2
 
Stockholders' Equity (Details) (USD $)
In Millions, except Per Share data, unless otherwise specified
3 Months Ended 9 Months Ended 0 Months Ended 9 Months Ended
Jun. 30, 2014
Jun. 30, 2013
Mar. 31, 2013
Sep. 30, 2014
Sep. 30, 2013
Sep. 30, 2014
Partnership [Member]
Forecast [Member]
Maximum [Member]
Mar. 7, 2014
EnLink [Member]
Sep. 30, 2014
EnLink [Member]
Stockholders Equity [Line Items]
 
 
 
 
 
 
 
 
Payments of ordinary dividends
 
 
 
$ 287 
$ 259 
 
 
 
Dividends paid per share
$ 0.24 
$ 0.22 
$ 0.20 
 
 
 
 
 
Aggregate offering price
 
 
 
 
 
75.0 
 
 
Common units sold
 
 
 
2.4 
 
 
 
 
Proceeds from issuance of subsidiary units
 
 
 
72 
 
 
 
 
Cash payment to acquire interest
 
 
 
 
 
 
100 
 
Distribution to unitholders other than Devon
 
 
 
 
 
 
 
$ 87 
Fair Value Measurements (Schedule Of Carrying Value And Fair Value Measurement Information For Financial Assets And Liabilities) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Mar. 31, 2014
Sep. 30, 2014
Dec. 31, 2013
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
Derivatives, assets
 
$ 310 
$ 103 
Derivatives, liabilities
 
(84)
(121)
Redemptions of Auction Rate Securities
57 
57 
 
Auction Rate Securities redeemed lower than carrying value
 
 
Carrying Amount [Member]
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
Cash equivalents
 
2,876 
5,305 
Debt
 
(12,059)
(12,022)
Capital lease obligations
 
(21)
 
Total Fair Value [Member]
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
Cash equivalents
 
2,876 
5,305 
Debt
 
(13,410)
(12,908)
Capital lease obligations
 
(21)
 
Level 1 Inputs [Member]
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
Cash equivalents
 
1,745 
4,191 
Level 2 Inputs [Member]
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
Cash equivalents
 
1,131 
1,114 
Debt
 
(13,410)
(12,908)
Capital lease obligations
 
(21)
 
Long-Term Investments [Member] |
Carrying Amount [Member]
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
Investments
 
 
62 
Long-Term Investments [Member] |
Total Fair Value [Member]
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
Investments
 
 
62 
Long-Term Investments [Member] |
Level 3 Inputs [Member]
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
Investments
 
 
62 
Commodity Derivatives [Member] |
Carrying Amount [Member]
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
Derivatives, assets
 
297 
103 
Derivatives, liabilities
 
(80)
(120)
Commodity Derivatives [Member] |
Total Fair Value [Member]
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
Derivatives, assets
 
297 
103 
Derivatives, liabilities
 
(80)
(120)
Commodity Derivatives [Member] |
Level 2 Inputs [Member]
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
Derivatives, assets
 
297 
103 
Derivatives, liabilities
 
(80)
(120)
Interest Rate Derivatives [Member] |
Carrying Amount [Member]
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
Derivatives, assets
 
 
Derivatives, liabilities
 
(2)
 
Interest Rate Derivatives [Member] |
Total Fair Value [Member]
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
Derivatives, assets
 
 
Derivatives, liabilities
 
(2)
 
Interest Rate Derivatives [Member] |
Level 2 Inputs [Member]
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
Derivatives, assets
 
 
Derivatives, liabilities
 
(2)
 
Foreign Currency Derivatives [Member] |
Carrying Amount [Member]
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
Derivatives, assets
 
11 
 
Derivatives, liabilities
 
 
(1)
Foreign Currency Derivatives [Member] |
Total Fair Value [Member]
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
Derivatives, assets
 
11 
 
Derivatives, liabilities
 
 
(1)
Foreign Currency Derivatives [Member] |
Level 2 Inputs [Member]
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
Derivatives, assets
 
11 
 
Derivatives, liabilities
 
 
(1)
EnLink [Member] |
Commodity Derivatives [Member] |
Carrying Amount [Member]
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
Derivatives, assets
 
 
Derivatives, liabilities
 
(2)
 
EnLink [Member] |
Commodity Derivatives [Member] |
Total Fair Value [Member]
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
Derivatives, assets
 
 
Derivatives, liabilities
 
(2)
 
EnLink [Member] |
Commodity Derivatives [Member] |
Level 2 Inputs [Member]
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
Derivatives, assets
 
 
Derivatives, liabilities
 
$ (2)
 
Segment information (Condensed Statements Of Comprehensive Earnings And Balance Sheets Of Reportable Segments) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2014
Sep. 30, 2013
Sep. 30, 2014
Sep. 30, 2013
Dec. 31, 2013
Segment Reporting Information [Line Items]
 
 
 
 
 
Oil, gas and NGL sales
$ 2,588 
$ 2,341 
$ 7,824 
$ 6,367 
 
Oil, gas and NGL derivatives
748 
(141)
29 
(95)
 
Marketing and midstream revenues
2,000 
514 
5,718 
1,501 
 
Revenues from external customers
5,336 
2,714 
13,571 
7,773 
 
Depreciation, depletion and amortization
842 
691 
2,409 
2,069 
 
Interest expense
118 
104 
366 
322 
 
Asset impairments
 
 
1,960 
 
Earnings (loss) before income taxes
1,654 
639 
3,768 
(326)
 
Income tax expense (benefit)
613 
210 
1,698 
(99)
 
Net earnings (loss)
1,041 
429 
2,070 
(227)
 
Net earnings (loss) attributable to noncontrolling interests
25 
 
55 
 
 
Net earnings (loss) attributable to Devon
1,016 
429 
2,015 
(227)
 
Property and equipment, net
35,169 
 
35,169 
 
28,447 
Total assets
50,839 
 
50,839 
 
42,877 
Capital expenditures
1,755 
1,693 
11,294 
5,027 
 
Eliminations [Member]
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
Interest expense
(11)
(10)
(31)
(24)
 
Total assets
(117)
 
(117)
 
 
Eliminations [Member] |
Intersegment [Member]
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
Revenues from external customers
(199)
(342)
(672)
(1,005)
 
United States [Member]
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
Number of reportable segments
 
 
 
 
Revenues from external customers
4,199 
1,687 
10,067 
5,033 
 
Depreciation, depletion and amortization
655 
444 
1,794 
1,287 
 
Interest expense
95 
94 
303 
284 
 
Asset impairments
 
 
1,117 
 
Earnings (loss) before income taxes
1,461 
366 
2,219 
96 
 
Income tax expense (benefit)
557 
141 
1,121 
10 
 
Net earnings (loss)
904 
225 
1,098 
86 
 
Net earnings (loss) attributable to noncontrolling interests
 
 
 
 
Net earnings (loss) attributable to Devon
904 
 
1,097 
 
 
Property and equipment, net
23,764 
 
23,764 
 
18,201 
Total assets
30,533 
 
30,533 
 
27,080 
Capital expenditures
1,213 
1,219 
9,748 
3,477 
 
Canada [Member]
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
Revenues from external customers
481 
791 
1,671 
2,052 
 
Depreciation, depletion and amortization
113 
199 
419 
643 
 
Interest expense
20 
20 
61 
62 
 
Asset impairments
 
 
 
843 
 
Earnings (loss) before income taxes
109 
219 
1,310 
(559)
 
Income tax expense (benefit)
38 
50 
517 
(158)
 
Net earnings (loss)
71 
169 
793 
(401)
 
Net earnings (loss) attributable to Devon
71 
 
793 
 
 
Property and equipment, net
6,882 
 
6,882 
 
8,478 
Total assets
10,895 
 
10,895 
 
13,560 
Capital expenditures
335 
437 
1,055 
1,377 
 
EnLink [Member]
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
Revenues from external customers
656 
236 
1,833 
688 
 
Depreciation, depletion and amortization
74 
48 
196 
139 
 
Interest expense
14 
 
33 
 
 
Earnings (loss) before income taxes
84 
54 
239 
137 
 
Income tax expense (benefit)
18 
19 
60 
49 
 
Net earnings (loss)
66 
35 
179 
88 
 
Net earnings (loss) attributable to noncontrolling interests
25 
 
54 
 
 
Net earnings (loss) attributable to Devon
41 
 
125 
 
 
Property and equipment, net
4,523 
 
4,523 
 
1,768 
Total assets
9,528 
 
9,528 
 
2,237 
Capital expenditures
207 
37 
491 
173 
 
EnLink [Member] |
Intersegment [Member]
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
Revenues from external customers
$ 199 
$ 342 
$ 672 
$ 1,005