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

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): May 5, 2015

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

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

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

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

 

Item 2.02	Results of Operations and Financial Condition	
Devon Energy Corporation hereby furnishes the information set forth in its news release dated May 5, 2015 announcing first quarter 2015 financial results, a copy of which is attached as Exhibit 99.1.
 
Item 9.01	Financial Statements and Exhibits	
(d) Exhibits
99.1    Devon Energy Corporation news release dated May 5, 2015.
 
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereto duly authorized.

DEVON ENERGY CORPORATION	
		
By:		/s/ Thomas L. Mitchell	
		Thomas L. Mitchell	
		Executive Vice President and	
		Chief Financial Officer	
Date: May 5, 2015
 
Page 3 of 3

Exhibit 99.1

		Devon Energy Corporation
333 West Sheridan Avenue
Oklahoma City, OK 73102-5015	

NEWS RELEASE
Devon Energy Reports First-Quarter 2015 Results
 
•	 	Exceeded production guidance for third consecutive quarter	
 
•	 	Achieved Company record 272,000 barrels of oil per day	
 
•	 	Reduced operating costs 9 percent year over year	
 
•	 	Completed accretive EnLink transactions	
 
•	 	Increased 2015 oil production growth outlook to a range of 25 to 35 percent	
 
•	 	Reduced 2015 capital spending 6 percent	
OKLAHOMA CITY - May 5, 2015 - Devon Energy Corp. (NYSE:DVN) today announced core earnings of $89 million, or $0.22 per diluted share, for the first quarter of 2015. The Company’s total cash inflows for the quarter reached $2.2 billion, consisting of $1.6 billion of operating cash flow and $569 million of proceeds received from the sale of EnLink common units.
“Devon delivered outstanding operational results in the first quarter as we continued to deliver superior execution across our repositioned asset portfolio,” said John Richels, president and CEO. “Our focused drilling activity has generated production growth that exceeded our guidance for the third consecutive quarter, our capital programs benefited from substantial service cost savings and we did an exceptional job controlling operating expenses.
“Additionally, the proceeds from the sale of EnLink units allow us to further strengthen our investment-grade balance sheet and enhance our liquidity position,” Richels said. “Combined with our recent sale of the Victoria Express Pipeline to EnLink, which closed early in the second quarter, we generated approximately $870 million of value for our shareholders at a substantial premium to Devon’s current trading multiple.”
On a reported basis, due to a non-cash, full-cost ceiling charge, Devon had a net loss of $3.6 billion for the first-quarter 2015. This compares with first-quarter 2014 reported net earnings of $324 million.
Production Exceeds Guidance for Third Consecutive Quarter
Total production from Devon’s retained asset base averaged 685,000 oil-equivalent barrels (Boe) per day during the first quarter of 2015. This result exceeded the top end of the Company’s guidance range by 12,000 Boe per day and represents a 22 percent increase compared to the first quarter of 2014. Liquids accounted for 60 percent of the Company’s production mix.
Devon delivered record oil production of 272,000 barrels per day in the first quarter. This result also exceeded the top end of the Company’s guidance range by 12,000 barrels per day and represents a 55 percent increase compared to the first quarter of 2014. The most significant growth came from the Company’s U.S. operations, where oil production increased a substantial 72 percent for the quarter year over year.
The strong growth in U.S. production was largely attributable to prolific well results from the Company’s world-class Eagle Ford assets. Net production in the Eagle Ford averaged 122,000 Boe per day in the first quarter, a 23 percent increase compared to the fourth quarter of 2014 and nearly a 140% increase in production compared to Devon’s first month of ownership in March 2014. In addition, the Company achieved another quarter of strong production growth in the Delaware Basin, where net production averaged 53,000 Boe per day, an increase of 15 percent compared to the fourth quarter of 2014.
Devon’s heavy-oil operations in Canada also delivered impressive production growth. In aggregate, net oil production from the Company’s heavy-oil projects increased to a record 104,000 barrels per day in the first quarter. Driven by the continued ramp-up of the Jackfish 3 facility, net oil production in Canada increased 33 percent compared to the first quarter of 2014.
 
Page 1 of 16

Devon Raises 2015 Production Outlook; Lowering E&P Capital Budget
Detailed forward-looking guidance for the second quarter and full-year 2015 is provided later in the release. A notable update from this revised outlook is Devon raising its total oil production growth to a range of 25 to 35 percent, a substantial increase from the Company’s previous full-year growth guidance of 20 to 25 percent. Due to the improving outlook for oil production, the Company has also raised its top-line production growth guidance in 2015 to a range of 5 to 10 percent.
In addition to higher production, Devon is also benefiting from lower capital requirements. The Company’s 2015 E&P capital program is now expected to range from $3.9 to $4.1 billion. This represents a $250 million reduction in capital spending compared to the Company’s previous guidance.
Operations Report
For additional details on Devon’s E&P operations, please refer to the Company’s first-quarter 2015 Operations Report at www.devonenergy.com . Highlights from the report include:
 
 	•	 	Eagle Ford delivers significant production growth	
 
 	•	 	Bone Spring and Powder River Basin type curves raised	
 
 	•	 	Jackfish 3 ramp-up drives growth in Canada	
 
 	•	 	Emerging Meramec potential expands	
Hedges Increase Upstream Revenue; Midstream Profit Rises
Revenue from oil, natural gas and natural gas liquids sales totaled $1.3 billion in the first quarter of 2015, with oil revenue increasing to 64 percent of total upstream revenues. This increased oil sales weighting was attributable to the Company’s substantial growth in both U.S. and Canadian oil production during the quarter.
Cash settlements related to the Company’s oil and natural gas hedges increased revenue by nearly $600 million, or approximately $10 per Boe, in the first quarter. At the end of March, Devon’s commodity hedges had a fair-market value of $1.6 billion.
The Company’s midstream operating profit reached $193 million in the first quarter. This result represents a 6 percent increase compared to the first quarter of 2014 and was right in line with guidance. The year-over-year increase in midstream operating profit was driven by continued growth from EnLink Midstream.
Cost Reduction Initiatives Delivering Strong Results
The Company has several cost reduction initiatives underway that positively impacted first-quarter results. Field-level operating costs, which includes both lease operating expenses (LOE) and production taxes, declined 9 percent to $10.73 per Boe compared to the first quarter of 2014.
The most significant operating cost savings came from LOE, which is the Company’s largest field-level cost. LOE declined 7 percent compared to the year-ago period to $8.97 per Boe and was 7 percent below the low end of Devon’s guidance range. These LOE cost savings were realized across all regions of the Company’s portfolio.
Based on year-to-date cost savings, Devon now expects the midpoint of its full-year 2015 LOE to decline to around $9.30 per Boe. Compared to previous guidance, this implies a full-year cash cost savings of around $170 million.
Production and property taxes were $108 million in the first quarter of 2015, a 21 percent decline year over year. The decline was driven by lower production taxes resulting from lower upstream revenue.
 
Page 2 of 16

General and administrative expenses (G&A) totaled $251 million in the first quarter of 2015, essentially flat compared to the fourth quarter of 2014. Of this first-quarter G&A expense, $41 million was attributable to non-cash related items. Excluding non-cash items, G&A declined 7 percent sequentially.
Excluding non-recurring items, Devon’s income tax rate was 36 percent of pre-tax earnings for the first quarter of 2015. Of this adjusted rate, the Company incurred a current tax rate of 8 percent, with a deferred tax rate of 28 percent for the quarter.
Accretive Midstream Transactions Strengthen Balance Sheet
Devon recently utilized its strategic investment in EnLink to further strengthen its financial position through a series of highly accretive transactions. In aggregate, the total value of these transactions for Devon was approximately $870 million.
The first of these transactions occurred on March 23, with the announced sale of its Victoria Express Pipeline in the Eagle Ford to EnLink Midstream Partners (NYSE: ENLK). Total consideration for this highly accretive transaction was approximately $215 million or about 10 times 2015 estimated EBITDA. This asset transaction closed on April 1, 2015, with cash proceeds received in the second quarter.
On March 24, Devon commenced a secondary offering of 22.8 million ENLK partnership units. This offering settled in late March, with the Company realizing total cash proceeds of $569 million. Subsequent to quarter end, underwriters fully exercised their option to purchase an additional 3.4 million ENLK partnership units from Devon. This resulted in an incremental $85 million of proceeds received in the second-quarter.
With investment-grade credit ratings and cash balances of $1.9 billion at the end of the first quarter, Devon’s financial position remains exceptionally strong. At March 31, the Company’s net debt, excluding non-recourse EnLink obligations, totaled $7.5 billion.
Non-GAAP Reconciliations
Pursuant to regulatory disclosure requirements, Devon is required to reconcile non-GAAP financial measures to the related GAAP information (GAAP refers to generally accepted accounting principles). Core earnings and net debt are non-GAAP financial measures referenced within this release. Reconciliations of these non-GAAP measures are provided later in this release.
Conference Call Webcast and Supplemental Earnings Materials
Please note that as soon as practicable today, Devon will post additional information, consisting of an operations report and management commentary with associated slides, to its website at www.devonenergy.com . The Company’s first-quarter 2015 conference call will be held at 10 a.m. Central (11 a.m. Eastern) on Wednesday, May 6, 2015, and will serve primarily as a forum for analyst and investor questions and answers.
Forward-Looking Statements
This press release includes “forward-looking statements” as defined by the Securities and Exchange Commission (SEC). Such statements include those concerning strategic plans, expectations and objectives for future operations, and are often identified by use of the words “forecasts”, “projections”, “estimates”, “plans”, “expectations”, “targets”, “opportunities”, “potential”, “outlook” and other similar terminology. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that the Company expects, believes or anticipates will or may occur in the future are forward-looking statements. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the Company. Statements regarding future drilling and production are subject to all of the risks and uncertainties normally incident to the exploration for and development and production of oil and gas. These risks include, but are not limited to, the volatility of oil, natural gas and NGL prices; uncertainties inherent in estimating oil, natural gas and NGL reserves; the extent to which we are successful in acquiring and discovering additional reserves; unforeseen changes in the rate of production from our oil and gas properties; uncertainties in future exploration and drilling
 
Page 3 of 16

results; uncertainties inherent in estimating the cost of drilling and completing wells; drilling risks; competition for leases, materials, people and capital; midstream capacity constraints and potential interruptions in production; risk related to our hedging activities; environmental risks; political changes; changes in laws or regulations; our limited control over third parties who operate our oil and gas properties; our ability to successfully complete mergers, acquisitions and divestitures; and other risks identified in our Form 10-K and our other filings with the SEC. Investors are cautioned that any such statements are not guarantees of future performance and that actual results or developments may differ materially from those projected in the forward-looking statements. The forward-looking statements in this press release are made as of the date of this press release, even if subsequently made available by Devon on its website or otherwise. Devon does not undertake any obligation to update the forward-looking statements as a result of new information, future events or otherwise.
The SEC permits oil and gas companies, in their filings with the SEC, to disclose only proved, probable and possible reserves that meet the SEC’s definitions for such terms, and price and cost sensitivities for such reserves, and prohibits disclosure of resources that do not constitute such reserves. This release may contain certain terms, such as resource potential and exploration target size. These estimates are by their nature more speculative than estimates of proved, probable and possible reserves and accordingly are subject to substantially greater risk of being actually realized. The SEC guidelines strictly prohibit us from including these estimates in filings with the SEC. U.S. investors are urged to consider closely the disclosure in our Form 10-K, available at www.devonenergy.com . You can also obtain this form from the SEC by calling 1-800-SEC-0330 or from the SEC’s website at www.sec.gov .
About Devon Energy
Devon Energy is a leading independent energy Company engaged in finding and producing oil and natural gas. Based in Oklahoma City and included in the S&P 500, Devon operates in several of the most prolific oil and natural gas plays in the U.S. and Canada with an emphasis on a balanced portfolio. The Company is the second-largest oil producer among North American onshore independents. For more information, please visit www.devonenergy.com .
Investor Contacts
Howard Thill, 405-552-3693
Scott Coody, 405-552-4735
Shea Snyder, 405-552-4782
Media Contact
John Porretto, 405-228-7506
 
Page 4 of 16

DEVON ENERGY CORPORATION
FINANCIAL AND OPERATIONAL INFORMATION
PRODUCTION NET OF ROYALTIES

 	  	Quarter Ended	 	
 	  	March 31,	 	
 	  	2015	 	  	2014	 	
			
Oil and bitumen (MBbls/d)	  				  				
United States	  	 	168	 	  	 	98	 	
Canada	  	 	104	 	  	 	78	 	
	  	 	 	 	  	 	 	 	
Retained assets		 	272	 		 	176	 	
Divested assets		 	—  	  		 	14	 	
	  	 	 	 	  	 	 	 	
Total		 	272	 		 	190	 	
	  	 	 	 	  	 	 	 	
Natural gas liquids (MBbls/d)									
United States		 	139	 		 	119	 	
Divested assets		 	—  	  		 	16	 	
	  	 	 	 	  	 	 	 	
Total		 	139	 		 	135	 	
	  	 	 	 	  	 	 	 	
Gas (MMcf/d)									
United States		 	1,617	 		 	1,587	 	
Canada		 	28	 		 	20	 	
	  	 	 	 	  	 	 	 	
Retained assets		 	1,645	 		 	1,607	 	
Divested assets		 	—  	  		 	585	 	
	  	 	 	 	  	 	 	 	
Total		 	1,645	 		 	2,192	 	
	  	 	 	 	  	 	 	 	
Oil equivalent (MBoe/d)									
United States		 	576	 		 	482	 	
Canada		 	109	 		 	81	 	
	  	 	 	 	  	 	 	 	
Retained assets		 	685	 		 	563	 	
Divested assets		 	—  	  		 	128	 	
	  	 	 	 	  	 	 	 	
Total		 	685	 		 	691	 	
	  	 	 	 	  	 	 	 	
KEY OPERATING STATISTICS BY REGION

 	  	Quarter Ended March 31, 2015	 	
 	  	Avg. Production
(MBoe/d)	 	  	Gross Wells Drilled	 	  	Operated Rigs at
March 31, 2015	 	
Eagle Ford	  	 	122	  	  	 	87	 	  	 	1	  	
Permian Basin	  	 	102	  	  	 	67	  	  	 	15	 	
Canadian Heavy Oil	  	 	109	 	  	 	21	  	  	 	2	  	
Anadarko Basin	  	 	88	  	  	 	24	  	  	 	8	 	
Barnett Shale	  	 	191	  	  	 	—  	  	  	 	—  	  	
Rockies	  	 	22	  	  	 	13	  	  	 	2	 	
Other assets	  	 	51	  	  	 	16	 	  	 	2	  	
	  	 	 	 	  	 	 	 	  	 	 	 	
Total		 	685	  		 	228	  		 	30	 	

Page 5 of 16

DEVON ENERGY CORPORATION
FINANCIAL AND OPERATIONAL INFORMATION
 
PRODUCTION TREND

 	  	2014	 	  	2014	 	  	2014	 	  	2014	 	  	2015	 	
 	  	Quarter 1	 	  	Quarter 2	 	  	Quarter 3	 	  	Quarter 4	 	  	Quarter 1	 	
Oil (MBbls/d)	  				  				  				  				  				
Eagle Ford	  	 	11	 	  	 	40	 	  	 	47	 	  	 	60	 	  	 	75	 	
Permian Basin	  	 	55	 	  	 	55	 	  	 	56	 	  	 	55	 	  	 	60	 	
Canadian Heavy Oil	  	 	78	 	  	 	77	 	  	 	80	 	  	 	93	 	  	 	104	 	
Anadarko Basin	  	 	9	 	  	 	11	 	  	 	10	 	  	 	10	 	  	 	9	 	
Barnett Shale	  	 	2	 	  	 	2	 	  	 	2	 	  	 	2	 	  	 	1	 	
Rockies	  	 	8	 	  	 	8	 	  	 	10	 	  	 	9	 	  	 	12	 	
Other assets	  	 	13	 	  	 	12	 	  	 	11	 	  	 	10	 	  	 	11	 	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Retained assets		 	176	 		 	205	 		 	216	 		 	239	 		 	272	 	
Divested assets		 	14	 		 	4	 		 	3	 		 	—  	  		 	—  	  	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total		 	190	 		 	209	 		 	219	 		 	239	 		 	272	 	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Natural gas liquids (MBbls/d)																					
Eagle Ford		 	3	 		 	11	 		 	14	 		 	18	 		 	23	 	
Permian Basin		 	16	 		 	18	 		 	19	 		 	20	 		 	19	 	
Anadarko Basin		 	29	 		 	31	 		 	34	 		 	34	 		 	30	 	
Barnett Shale		 	55	 		 	55	 		 	54	 		 	53	 		 	51	 	
Rockies		 	1	 		 	1	 		 	1	 		 	1	 		 	1	 	
Other assets		 	15	 		 	14	 		 	16	 		 	15	 		 	15	 	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Retained assets		 	119	 		 	130	 		 	138	 		 	141	 		 	139	 	
Divested assets		 	16	 		 	6	 		 	5	 		 	—  	  		 	—  	  	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total		 	135	 		 	136	 		 	143	 		 	141	 		 	139	 	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Gas (MMcf/d)																					
Eagle Ford		 	24	 		 	88	 		 	109	 		 	127	 		 	143	 	
Permian Basin		 	121	 		 	134	 		 	136	 		 	137	 		 	137	 	
Canadian Heavy Oil		 	20	 		 	23	 		 	26	 		 	23	 		 	28	 	
Anadarko Basin		 	281	 		 	309	 		 	323	 		 	329	 		 	297	 	
Barnett Shale		 	931	 		 	932	 		 	896	 		 	878	 		 	827	 	
Rockies		 	65	 		 	67	 		 	66	 		 	58	 		 	53	 	
Other assets		 	165	 		 	159	 		 	160	 		 	155	 		 	160	 	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Retained assets		 	1,607	 		 	1,712	 		 	1,716	 		 	1,707	 		 	1,645	 	
Divested assets		 	585	 		 	219	 		 	138	 		 	3	 		 	—  	  	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total		 	2,192	 		 	1,931	 		 	1,854	 		 	1,710	 		 	1,645	 	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Oil equivalent (MBoe/d)																					
Eagle Ford		 	18	 		 	65	 		 	79	 		 	99	 		 	122	 	
Permian Basin		 	91	 		 	95	 		 	98	 		 	98	 		 	102	 	
Canadian Heavy Oil		 	81	 		 	81	 		 	84	 		 	97	 		 	109	 	
Anadarko Basin		 	85	 		 	93	 		 	98	 		 	100	 		 	88	 	
Barnett Shale		 	213	 		 	212	 		 	205	 		 	201	 		 	191	 	
Rockies		 	20	 		 	21	 		 	22	 		 	19	 		 	22	 	
Other assets		 	55	 		 	53	 		 	54	 		 	50	 		 	51	 	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Retained assets		 	563	 		 	620	 		 	640	 		 	664	 		 	685	 	
Divested assets		 	128	 		 	47	 		 	31	 		 	1	 		 	—  	  	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total		 	691	 		 	667	 		 	671	 		 	665	 		 	685	 	

Page 6 of 16

DEVON ENERGY CORPORATION
FINANCIAL AND OPERATIONAL INFORMATION
 
BENCHMARK PRICES

 	  	Quarter Ended March 31,	 	
(average prices)	  	2015	 	  	2014	 	
Natural Gas ($/Mcf) - Henry Hub	  	$	2.99	 	  	$	4.95	 	
Oil ($/Bbl) - West Texas Intermediate (Cushing)	  	$	48.87	 	  	$	98.66	 	
REALIZED PRICES

 	  	Quarter Ended March 31, 2015	 	
 	  	Oil /Bitumen	 	  	NGL	 	  	Gas	 	  	Total	 	
 	  	(Per Bbl)	 	  	(Per Bbl)	 	  	(Per Mcf)	 	  	(Per Boe)	 	
United States	  	$	42.80	 	  	$	9.40	 	  	$	2.47	 	  	$	21.66	 	
Canada (1)	  	$	22.87	 	  	$	N/M	  	  	$	1.12	 	  	$	22.16	 	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Realized price without hedges		$	35.17	 		$	9.40	 		$	2.45	 		$	21.74	 	
Cash settlements		$	21.12	 		$	—  	  		$	0.51	 		$	9.62	 	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Realized price, including cash settlements		$	56.29	 		$	9.40	 		$	2.96	 		$	31.36	 	

																	
 	  	Quarter Ended March 31, 2014	 	
 	  	Oil /Bitumen	 	 	NGL	 	 	Gas	 	 	Total	 	
 	  	(Per Bbl)	 	 	(Per Bbl)	 	 	(Per Mcf)	 	 	(Per Boe)	 	
United States	  	$	91.66	 	 	$	29.66	 	 	$	4.33	 	 	$	39.44	 	
Canada (1)	  	$	61.76	 	 	$	51.80	 	 	$	4.14	 	 	$	46.71	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Realized price without hedges		$	77.75	 		$	31.15	 		$	4.30	 		$	41.13	 	
Cash settlements		$	(2.10	) 		$	(0.02	) 		$	(0.33	) 		$	(1.61	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Realized price, including cash settlements		$	75.65	 		$	31.13	 		$	3.97	 		$	39.52	 	

(1)	The reported Canadian gas volumes include volumes that are produced from certain of our leases and then transported to our Jackfish operations where the gas is used as fuel. However, the revenues and expenses related to this consumed gas are eliminated in our consolidated financials.	
 
Page 7 of 16

DEVON ENERGY CORPORATION
FINANCIAL AND OPERATIONAL INFORMATION
 
CONSOLIDATED STATEMENTS OF EARNINGS

 	  	Quarter Ended
March 31,	 	
(in millions, except per share amounts)	  	2015	 	 	2014	 	
Oil, gas and NGL sales	  	$	1,339	 	 	$	2,557	 	
Oil, gas and NGL derivatives	  	 	294	 	 	 	(320	) 	
Marketing and midstream revenues	  	 	1,632	 	 	 	1,488	 	
	  	 	 	 	 	 	 	 	
Total operating revenues		 	3,265	 		 	3,725	 	
	  	 	 	 	 	 	 	 	
Lease operating expenses		 	553	 		 	598	 	
Marketing and midstream operating expenses		 	1,439	 		 	1,305	 	
General and administrative expenses		 	251	 		 	211	 	
Production and property taxes		 	108	 		 	137	 	
Depreciation, depletion and amortization		 	930	 		 	739	 	
Asset impairments		 	5,460	 		 	—  	  	
Restructuring costs		 	—  	  		 	37	 	
Gains and losses on asset sales		 	—  	  		 	(15	) 	
Other operating items		 	19	 		 	23	 	
	  	 	 	 	 	 	 	 	
Total operating expenses		 	8,760	 		 	3,035	 	
	  	 	 	 	 	 	 	 	
Operating income (loss)		 	(5,495	) 		 	690	 	
Net financing costs		 	117	 		 	112	 	
Other nonoperating items		 	12	 		 	18	 	
	  	 	 	 	 	 	 	 	
Earnings (loss) before income taxes		 	(5,624	) 		 	560	 	
Income tax expense (benefit)		 	(2,035	) 		 	231	 	
	  	 	 	 	 	 	 	 	
Net earnings (loss)		 	(3,589	) 		 	329	 	
Net earnings attributable to noncontrolling interests		 	10	 		 	5	 	
	  	 	 	 	 	 	 	 	
Net earnings (loss) attributable to Devon		$	(3,599	) 		$	324	 	

Net earnings (loss) per share attributable to Devon:									
Basic		$	(8.88	) 		$	0.80	 	
Diluted		$	(8.88	) 		$	0.79	 	
			
Weighted average common shares outstanding:									
Basic		 	410	 		 	407	 	
Diluted		 	410	 		 	408	 	
 
Page 8 of 16

DEVON ENERGY CORPORATION
FINANCIAL AND OPERATIONAL INFORMATION
 
CONSOLIDATING STATEMENTS OF OPERATIONS

 	  	Quarter Ended March 31, 2015	 	
(in millions)	  	Devon U.S.
& Canada	 	 	EnLink	 	 	Eliminations	 	 	Total	 	
Oil, gas and NGL sales	  	$	1,339	 	 	$	—  	  	 	$	—  	  	 	$	1,339	 	
Oil, gas and NGL derivatives	  	 	294	 	 	 	—  	  	 	 	—  	  	 	 	294	 	
Marketing and midstream revenues	  	 	852	 	 	 	936	 	 	 	(156	) 	 	 	1,632	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total operating revenues		 	2,485	 		 	936	 		 	(156	) 		 	3,265	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Lease operating expenses		 	553	 		 	—  	  		 	—  	  		 	553	 	
Marketing and midstream operating expenses		 	852	 		 	743	 		 	(156	) 		 	1,439	 	
General and administrative expenses		 	209	 		 	42	 		 	—  	  		 	251	 	
Production and property taxes		 	97	 		 	11	 		 	—  	  		 	108	 	
Depreciation, depletion and amortization		 	840	 		 	90	 		 	—  	  		 	930	 	
Asset impairments		 	5,460	 		 	—  	  		 	—  	  		 	5,460	 	
Other operating items		 	19	 		 	—  	  		 	—  	  		 	19	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total operating expenses		 	8,030	 		 	886	 		 	(156	) 		 	8,760	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Operating income (loss)		 	(5,545	) 		 	50	 		 	—  	  		 	(5,495	) 	
Net financing costs		 	98	 		 	19	 		 	—  	  		 	117	 	
Other nonoperating items		 	16	 		 	(4	) 		 	—  	  		 	12	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Earnings (loss) before income taxes		 	(5,659	) 		 	35	 		 	—  	  		 	(5,624	) 	
Income tax expense (benefit)		 	(2,046	) 		 	11	 		 	—  	  		 	(2,035	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net earnings (loss)		 	(3,613	) 		 	24	 		 	—  	  		 	(3,589	) 	
Net earnings attributable to noncontrolling interests		 	—  	  		 	10	 		 	—  	  		 	10	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net earnings (loss) attributable to Devon		$	(3,613	) 		$	14	 		$	—  	  		$	(3,599	) 	

Page 9 of 16

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

 	  	Quarter
Ended March 31,	 	
(in millions)	  	2015	 	 	2014	 	
Cash flows from operating activities:	  				 				
Net earnings (loss)	  	$	(3,589	) 	 	$	329	 	
Adjustments to reconcile net earnings (loss) to net cash from operating activities:	  				 				
Depreciation, depletion and amortization	  	 	930	 	 	 	739	 	
Asset impairments	  	 	5,460	 	 	 	—  	  	
Gains and losses on asset sales	  	 	—  	  	 	 	(15	) 	
Deferred income tax expense (benefit)	  	 	(2,047	) 	 	 	208	 	
Derivatives and other financial instruments	  	 	(430	) 	 	 	307	 	
Cash settlements on derivatives and financial instruments	  	 	719	 	 	 	(54	) 	
Other noncash charges	  	 	225	 	 	 	123	 	
Net change in working capital	  	 	215	 	 	 	(152	) 	
Change in long-term other assets	  	 	141	 	 	 	(88	) 	
Change in long-term other liabilities	  	 	24	 	 	 	13	 	
	  	 	 	 	 	 	 	 	
Net cash from operating activities		 	1,648	 		 	1,410	 	

Cash flows from investing activities:									
Capital expenditures		 	(1,717	) 		 	(1,583	) 	
Acquisitions of property, equipment and businesses		 	(404	) 		 	(5,935	) 	
Divestitures of property and equipment		 	2	 		 	142	 	
Redemptions of long-term investments		 	—  	  		 	57	 	
Other		 	3	 		 	37	 	
	  	 	 	 	 	 	 	 	
Net cash from investing activities		 	(2,116	) 		 	(7,282	) 	

Cash flows from financing activities:									
Borrowings of long-term debt, net of issuance costs		 	957	 		 	3,346	 	
Net borrowings of short-term debt		 	15	 		 	257	 	
Repayments of long-term debt		 	(487	) 		 	(1,577	) 	
Stock option exercises		 	—  	 		 	11	 	
Sale of subsidiary units		 	569	 		 	—  	  	
Issuance of subsidiary units		 	2	 		 	—  	  	
Dividends paid on common stock		 	(99	) 		 	(90	) 	
Distributions to noncontrolling interests		 	(53	) 		 	(100	) 	
Other		 	(12	) 		 	(3	) 	
	  	 	 	 	 	 	 	 	
Net cash from financing activities		 	892	 		 	1,844	 	
	  	 	 	 	 	 	 	 	
Effect of exchange rate changes on cash		 	(46	) 		 	(11	) 	
	  	 	 	 	 	 	 	 	
Net change in cash and cash equivalents		 	378	 		 	(4,039	) 	
			
Cash and cash equivalents at beginning of period		 	1,480	 		 	6,066	 	

Cash and cash equivalents at end of period		$	1,858	 		$	2,027	 	

Page 10 of 16

DEVON ENERGY CORPORATION
FINANCIAL AND OPERATIONAL INFORMATION
 
CONSOLIDATED BALANCE SHEETS
									
(in millions)	  	March 31,
2015	 	 	December 31,
2014	 	
Current assets:	  				 				
Cash and cash equivalents	  	$	1,858	 	 	$	1,480	 	
Accounts receivable	  	 	1,663	 	 	 	1,959	 	
Derivatives, at fair value	  	 	1,706	 	 	 	1,993	 	
Income taxes receivable	  	 	—  	  	 	 	522	 	
Other current assets	  	 	579	 	 	 	544	 	
	  	 	 	 	 	 	 	 	
Total current assets		 	5,806	 		 	6,498	 	
	  	 	 	 	 	 	 	 	
Property and equipment, at cost:									
Oil and gas, based on full cost accounting:									
Subject to amortization		 	75,952	 		 	75,738	 	
Not subject to amortization		 	2,656	 		 	2,752	 	
	  	 	 	 	 	 	 	 	
Total oil and gas		 	78,608	 		 	78,490	 	
Midstream and other		 	10,109	 		 	9,695	 	
	  	 	 	 	 	 	 	 	
Total property and equipment, at cost		 	88,717	 		 	88,185	 	
Less accumulated depreciation, depletion and amortization		 	(57,262	) 		 	(51,889	) 	
	  	 	 	 	 	 	 	 	
Property and equipment, net		 	31,455	 		 	36,296	 	
	  	 	 	 	 	 	 	 	
Goodwill		 	6,328	 		 	6,303	 	
Other long-term assets		 	1,753	 		 	1,540	 	
	  	 	 	 	 	 	 	 	
Total assets		$	45,342	 		$	50,637	 	

Current liabilities:									
Accounts payable		$	1,335	 		$	1,400	 	
Revenues and royalties payable		 	1,054	 		 	1,193	 	
Short-term debt		 	1,448	 		 	1,432	 	
Deferred income taxes		 	638	 		 	730	 	
Other current liabilities		 	1,085	 		 	1,180	 	
	  	 	 	 	 	 	 	 	
Total current liabilities		 	5,560	 		 	5,935	 	
	  	 	 	 	 	 	 	 	
Long-term debt		 	10,301	 		 	9,830	 	
Asset retirement obligations		 	1,373	 		 	1,339	 	
Other long-term liabilities		 	922	 		 	948	 	
Deferred income taxes		 	4,167	 		 	6,244	 	
Stockholders’ equity:									
Common stock		 	41	 		 	41	 	
Additional paid-in capital		 	4,542	 		 	4,088	 	
Retained earnings		 	12,933	 		 	16,631	 	
Accumulated other comprehensive earnings		 	481	 		 	779	 	
	  	 	 	 	 	 	 	 	
Total stockholders’ equity attributable to Devon		 	17,997	 		 	21,539	 	
Noncontrolling interests		 	5,022	 		 	4,802	 	
	  	 	 	 	 	 	 	 	
Total stockholders’ equity		 	23,019	 		 	26,341	 	
	  	 	 	 	 	 	 	 	
Total liabilities and stockholders’ equity		$	45,342	 		$	50,637	 	
	  	 	 	 	 	 	 	 	
Common shares outstanding		 	411	  		 	409	  	
 
Page 11 of 16

DEVON ENERGY CORPORATION
FINANCIAL AND OPERATIONAL INFORMATION
 
CAPITAL EXPENDITURES
													
 	  	Quarter Ended March 31, 2015	 	
(in millions)	  	U.S.	 	  	Canada	 	  	Total	 	
Exploration / Appraisal	  	$	128	 	  	$	53	 	  	$	181	 	
Development	  	 	1,008	 	  	 	137	 	  	 	1,145	 	
	  	 	 	 	  	 	 	 	  	 	 	 	
Exploration and development capital		$	1,136	 		$	190	 		$	1,326	 	
Capitalized G&A										 	94	 	
Capitalized interest										 	13	 	
Acquisitions										 	92	 	
Devon midstream capital										 	41	 	
Other capital										 	27	 	
	  				  				  	 	 	 	
Total (1)										$	1,593	 	

(1)	Excludes $489 million attributable to EnLink.	
 
Page 12 of 16

DEVON ENERGY CORPORATION
FINANCIAL AND OPERATIONAL INFORMATION
 
NON-GAAP FINANCIAL MEASURES
The United States Securities and Exchange Commission has adopted disclosure requirements for public companies such as Devon concerning Non-GAAP financial measures (GAAP refers to generally accepted accounting principles). The Company must reconcile the Non-GAAP financial measure to related GAAP information.
CORE EARNINGS
(in millions)
Devon’s reported net earnings include items of income and expense that are typically excluded by securities analysts in their published estimates of the Company’s financial results. Accordingly, the company also uses the measures of core earnings and core earnings per diluted share. Devon believes these non-GAAP measures facilitate comparisons of its performance to earnings estimates published by securities analysts. Devon also believes these non-GAAP measures can facilitate comparisons of its performance between periods and to the performance of its peers. The following table summarizes the effects of these items on first-quarter 2015 earnings.

 	  	Quarter Ended March 31, 2015	 	
 	  	Before-Tax	 	  	After-Tax	 	
			
Net loss attributable to Devon (GAAP)	  				  	$	(3,599	) 	
Asset impairments	  	 	5,460	 	  	 	3,467	 	
Fair value changes in financial instruments and foreign currency	  	 	319	 	  	 	221	 	
	  				  	 	 	 	
Core earnings attributable to Devon (Non-GAAP)						$	89	 	
	  				  	 	 	 	
Diluted share count						 	413	 	
Core diluted earnings per share attributable to Devon (Non-GAAP)						$	0.22	 	
	  				  	 	 	 	
NET DEBT
(in millions)
Devon defines net debt as debt less cash and cash equivalents and net debt attributable to the consolidation of EnLink Midstream as presented in the following table. Devon believes that netting these sources of cash against debt and adjusting for EnLink net debt provides a clearer picture of the future demands on cash from Devon to repay debt.

 	  	March 31,	 	
 	  	2015	 	  	2014	 	
			
Total debt (GAAP)	  	$	11,749	 	  	$	15,512	 	
Cash and cash equivalents	  	 	(1,858	) 	  	 	(2,027	) 	
	  	 	 	 	  	 	 	 	
Consolidated net debt (Non-GAAP)		 	9,891	 		 	13,485	 	
Non-recourse EnLink obligations		 	(2,494	) 		 	(1,732	) 	
EnLink cash and cash equivalents		 	110	 		 	221	 	
	  	 	 	 	  	 	 	 	
Net debt (Non-GAAP)		$	7,507	 		$	11,974	 	

Page 13 of 16

DEVON ENERGY CORPORATION
FORWARD LOOKING GUIDANCE
PRODUCTION GUIDANCE

 	  	Quarter 2	 	 	Full Year	 	
 	  	Low	 	 	High	 	 	Low	 	 	High	 	
					
Oil and bitumen (MBbls/d)	  				 				 				 				
United States	  	 	165	 	 	 	170	 	 	 	160	 	 	 	170	 	
Canada	  	 	95	 	 	 	100	 	 	 	100	 	 	 	110	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total		 	260	 		 	270	 		 	260	 		 	280	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Natural gas liquids (MBbls/d)																	
United States		 	130	 		 	140	 		 	128	 		 	134	 	
Gas (MMcf/d)																	
United States		 	1,600	 		 	1,650	 		 	1,550	 		 	1,600	 	
Canada		 	20	 		 	20	 		 	20	 		 	20	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total		 	1,620	 		 	1,670	 		 	1,570	 		 	1,620	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Oil equivalent (MBoe/d)																	
United States		 	562	 		 	585	 		 	546	 		 	571	 	
Canada		 	98	 		 	103	 		 	103	 		 	113	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total		 	660	 		 	688	 		 	649	 		 	684	 	

PRICE REALIZATIONS GUIDANCE
 																	
 	  	Quarter 2	 	 	Full Year	 	
 	  	Low	 	 	High	 	 	Low	 	 	High	 	
					
Oil and bitumen - % of WTI	  				 				 				 				
United States	  	 	84	% 	 	 	94	% 	 	 	85	% 	 	 	95	% 	
Canada	  	 	52	% 	 	 	62	% 	 	 	49	% 	 	 	59	% 	
NGL - realized price	  	$	7	 	 	$	12	 	 	$	6	 	 	$	16	 	
Natural gas - % of Henry Hub	  	 	78	% 	 	 	88	% 	 	 	79	% 	 	 	89	% 	
 
Page 14 of 16

DEVON ENERGY CORPORATION
FORWARD LOOKING GUIDANCE
 
OTHER GUIDANCE ITEMS

 	  	Quarter 2	 	 	Full Year	 	
($ millions, except Boe)	  	Low	 	 	High	 	 	Low	 	 	High	 	
					
Marketing & midstream operating profit	  	$	185	 	 	$	215	 	 	$	860	 	 	$	920	 	
Lease operating expenses per Boe	  	$	9.00	 	 	$	9.60	 	 	$	9.00	 	 	$	9.60	 	
General & administrative expenses per Boe	  	$	3.60	 	 	$	3.90	 	 	$	3.75	 	 	$	4.25	 	
Production and property taxes as % of upstream sales	  	 	7.9	% 	 	 	8.9	% 	 	 	7.4	% 	 	 	8.4	% 	
Depreciation, depletion and amortization per Boe	  	$	13.50	 	 	$	14.50	 	 	$	13.75	 	 	$	14.75	 	
Other operating items	  	$	15	 	 	$	20	 	 	$	60	 	 	$	80	 	
Net financing costs	  	$	110	 	 	$	130	 	 	$	460	 	 	$	520	 	
Current income tax rate	  	 	4.0	% 	 	 	9.0	% 	 	 	4.0	% 	 	 	9.0	% 	
Deferred income tax rate	  	 	26.0	% 	 	 	31.0	% 	 	 	26.0	% 	 	 	31.0	% 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total income tax rate		 	30.0	% 		 	40.0	% 		 	30.0	% 		 	40.0	% 	

Net earnings attributable to noncontrolling interests		$	5	 		$	25	 		$	50	 		$	100	 	
					
CAPITAL EXPENDITURES GUIDANCE
 																	
 	  	Quarter 2	 	 	Full Year	 	
(in millions)	  	Low	 	 	High	 	 	Low	 	 	High	 	
					
Exploration and development	  	$	950	 	 	$	1,050	 	 	$	3,900	 	 	$	4,100	 	
Capitalized G&A and interest	  	 	100	 	 	 	120	 	 	 	400	 	 	 	500	 	
Midstream (1)	  	 	20	 	 	 	40	 	 	 	110	 	 	 	160	 	
Corporate and other	  	 	30	 	 	 	40	 	 	 	100	 	 	 	150	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Devon capital expenditures		$	1,100	 		$	1,250	 		$	4,510	 		$	4,910	 	

(1)	Excludes capital expenditures related to EnLink.	
 
Page 15 of 16

DEVON ENERGY CORPORATION
FORWARD LOOKING GUIDANCE
 
COMMODITY HEDGES

 	  	Oil Commodity Hedges	 	
 	  	Price Swaps	 	  	Price Collars	 	  	Call Options Sold	 	
Period	  	Volume
(Bbls/d)	 	  	Weighted
Average
Price ($/Bbl)	 	  	Volume
(Bbls/d)	 	  	Weighted
Average Floor
Price ($/Bbl)	 	  	Weighted
Average
Ceiling Price
($/Bbl)	 	  	Volume
(Bbls/d)	 	  	Weighted
Average Price
($/Bbl)	 	
Q2-Q4 2015	  	 	106,442	  	  	$	91.07	  	  	 	31,500	  	  	$	89.67	  	  	$	97.84	  	  	 	28,000	  	  	$	116.43	  	

 	  	Oil Basis Swaps	 	
Period	  	Index	  	Volume (Bbls/d)	 	  	Weighted Average Differential to
WTI ($/Bbl)	 	
Q2-Q4 2015	  	Western Canadian Select	  	 	36,320	  	  	$	(16.35	) 	

 	  	Natural Gas Commodity Hedges	 	
 	  	Price Swaps	 	  	Price Collars	 	  	Call Options Sold	 	
Period	  	Volume
(MMBtu/d)	 	  	Weighted
Average Price
($/MMBtu)	 	  	Volume
(MMBtu/d)	 	  	Weighted
Average Floor
Price
($/MMBtu)	 	  	Weighted
Average
Ceiling Price
($/MMBtu)	 	  	Volume
(MMBtu/d)	 	  	Weighted
Average Price
($/MMBtu)	 	
Q2-Q4 2015	  	 	250,000	  	  	$	4.32	  	  	 	391,964	  	  	$	3.74	  	  	$	4.04	  	  	 	550,000	  	  	$	5.09	  	
Devon’s oil derivatives settle against the average of the prompt month NYMEX West Texas Intermediate futures price. Devon’s natural gas derivatives settle against the Inside FERC first of the month Henry Hub index.
 
Page 16 of 16