DEVON ENERGY CORP/DE, 10-Q filed on 5/4/2016
Quarterly Report
Document And Entity Information
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2016
Apr. 20, 2016
Document And Entity Information [Abstract]
 
 
Document Type
10-Q 
 
Document Period End Date
Mar. 31, 2016 
 
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
2016 
 
Entity Filer Category
Large Accelerated Filer 
 
Document Fiscal Period Focus
Q1 
 
Entity Common Stock, Shares Outstanding
 
524.0 
Consolidated Comprehensive Statements Of Earnings (USD $)
In Millions, except Per Share data, unless otherwise specified
3 Months Ended
Mar. 31, 2016
Mar. 31, 2015
Consolidated Comprehensive Statements Of Earnings [Abstract]
 
 
Oil, gas and NGL sales
$ 825 
$ 1,339 
Oil, gas and NGL derivatives
33 
294 
Marketing and midstream revenues
1,268 
1,632 
Total operating revenues
2,126 
3,265 
Lease operating expenses
444 
553 
Marketing and midstream operating expenses
1,066 
1,439 
General and administrative expenses
194 
251 
Production and property taxes
78 
108 
Depreciation, depletion and amortization
542 
930 
Asset impairments
3,035 
5,460 
Restructuring and transaction costs
247 
 
Other operating items
20 
19 
Total operating expenses
5,626 
8,760 
Operating loss
(3,500)
(5,495)
Net financing costs
164 
117 
Other nonoperating items
21 
12 
Loss before income taxes
(3,685)
(5,624)
Income tax benefit
(217)
(2,035)
Net loss
(3,468)
(3,589)
Net earnings (loss) attributable to noncontrolling interests
(412)
10 
Net loss attributable to Devon
(3,056)
(3,599)
Net loss per share attributable to Devon:
 
 
Basic
$ (6.44)
$ (8.88)
Diluted
$ (6.44)
$ (8.88)
Comprehensive loss:
 
 
Net loss
(3,468)
(3,589)
Other comprehensive earnings (loss), net of tax:
 
 
Foreign currency translation
23 
(302)
Pension and postretirement plans
Other comprehensive earnings (loss), net of tax
27 
(298)
Comprehensive loss
(3,441)
(3,887)
Comprehensive earnings (loss) attributable to noncontrolling interests
(412)
10 
Comprehensive loss attributable to Devon
$ (3,029)
$ (3,897)
Consolidated Statements Of Cash Flows (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2016
Mar. 31, 2015
Cash flows from operating activities:
 
 
Net loss
$ (3,468)
$ (3,589)
Adjustments to reconcile net loss to net cash from operating activities:
 
 
Depreciation, depletion and amortization
542 
930 
Asset impairments
3,035 
5,460 
Deferred income tax benefit
(207)
(2,047)
Derivatives and other financial instruments
194 
(430)
Cash settlements on derivatives and financial instruments
(104)
719 
Other noncash charges
(67)
225 
Net change in working capital
198 
215 
Change in long-term other assets
53 
141 
Change in long-term other liabilities
(27)
24 
Net cash from operating activities
149 
1,648 
Cash flows from investing activities:
 
 
Capital expenditures
(749)
(1,717)
Acquisitions of property, equipment and businesses
(1,627)
(404)
Divestitures of property and equipment
18 
Other
(1)
Net cash from investing activities
(2,359)
(2,116)
Cash flows from financing activities:
 
 
Borrowings of long-term debt, net of issuance costs
396 
957 
Repayments of long-term debt
(259)
(487)
Net short-term debt borrowings (repayments)
(626)
15 
Issuance of common stock
1,469 
 
Sale of subsidiary units
   
569 
Issuance of subsidiary units
727 
Dividends paid on common stock
(125)
(99)
Distributions to noncontrolling interests
(73)
(53)
Other
 
(12)
Net cash from financing activities
1,509 
892 
Effect of exchange rate changes on cash
26 
(46)
Net change in cash and cash equivalents
(675)
378 
Cash and cash equivalents at beginning of period
2,310 
1,480 
Cash and cash equivalents at end of period
$ 1,635 
$ 1,858 
Consolidated Balance Sheets (USD $)
In Millions, unless otherwise specified
Mar. 31, 2016
Dec. 31, 2015
Current assets:
 
 
Cash and cash equivalents
$ 1,635 
$ 2,310 
Accounts receivable
1,023 
1,105 
Derivatives, at fair value
54 
43 
Income taxes receivable
24 
147 
Other current assets
214 
416 
Total current assets
2,950 
4,021 
Oil and gas, based on full cost accounting:
 
 
Subject to amortization
79,907 
78,190 
Not subject to amortization
3,901 
2,584 
Total oil and gas
83,808 
80,774 
Midstream and other
10,979 
10,380 
Total property and equipment, at cost
94,787 
91,154 
Less accumulated depreciation, depletion and amortization
(75,523)
(72,086)
Property and equipment, net
19,264 
19,068 
Goodwill
4,159 
5,032 
Other long-term assets
2,264 
1,330 
Total assets
28,637 
29,451 
Current liabilities:
 
 
Accounts payable
640 
906 
Revenues and royalties payable
705 
763 
Short-term debt
350 1
976 1
Other current liabilities
905 
650 
Total current liabilities
2,600 
3,295 
Long-term debt
12,195 
12,056 
Asset retirement obligations
1,491 
1,370 
Other long-term liabilities
1,112 
853 
Deferred income taxes
731 
888 
Stockholders' equity:
 
 
Common stock, $0.10 par value. Authorized 1.0 billion shares; issued 524 million and 418 million shares in 2016 and 2015, respectively
52 
42 
Additional paid-in capital
7,501 
4,996 
Retained earnings (accumulated deficit)
(1,400)
1,781 
Accumulated other comprehensive earnings
257 
230 
Total stockholders' equity attributable to Devon
6,410 
7,049 
Noncontrolling interests
4,098 
3,940 
Total stockholders' equity
10,508 
10,989 
Commitments and contingencies (Note 19)
   
   
Total liabilities and stockholders' equity
$ 28,637 
$ 29,451 
Consolidated Balance Sheets (Parenthetical) (USD $)
Mar. 31, 2016
Dec. 31, 2015
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)
524,000,000 
418,000,000 
Consolidated Statements Of Stockholders' Equity (USD $)
In Millions
Common Stock [Member]
Additional Paid-In Capital [Member]
Retained Earnings (Accumulated Deficit) [Member]
Accumulated Other Comprehensive Earnings [Member]
Treasury Stock [Member]
Noncontrolling Interests [Member]
Total
Balance, at Dec. 31, 2014
$ 41 
$ 4,088 
$ 16,631 
$ 779 
 
$ 4,802 
$ 26,341 
Balance, shares, at Dec. 31, 2014
409 
 
 
 
 
 
 
Net earnings (loss)
 
 
(3,599)
 
 
10 
(3,589)
Other comprehensive earnings (loss), net of tax
 
 
 
(298)
 
 
(298)
Restricted stock grants, net of cancellations, shares
 
 
 
 
 
 
Common stock repurchased
 
 
 
 
(18)
 
(18)
Common stock retired
 
(18)
 
 
18 
 
 
Common stock dividends
 
 
(99)
 
 
 
(99)
Share-based compensation
 
48 
 
 
 
 
48 
Share-based compensation tax benefits
 
 
 
 
 
Subsidiary equity transactions
 
423 
 
 
 
263 
686 
Distributions to noncontrolling interests
 
 
 
 
 
(53)
(53)
Balance, at Mar. 31, 2015
41 
4,542 
12,933 
481 
 
5,022 
23,019 
Balance, shares, at Mar. 31, 2015
411 
 
 
 
 
 
 
Balance, at Dec. 31, 2015
42 
4,996 
1,781 
230 
 
3,940 
10,989 
Balance, shares, at Dec. 31, 2015
418 
 
 
 
 
 
 
Net earnings (loss)
 
 
(3,056)
 
 
(412)
(3,468)
Other comprehensive earnings (loss), net of tax
 
 
 
27 
 
 
27 
Restricted stock grants, net of cancellations, shares
 
 
 
 
 
 
Common stock repurchased
 
 
 
 
(12)
 
(12)
Common stock retired
 
(12)
 
 
12 
 
 
Common stock dividends
 
 
(125)
 
 
 
(125)
Common stock issued
10 
2,117 
 
 
 
 
2,127 
Common stock issued, shares
103 
 
 
 
 
 
 
Share-based compensation
 
99 
 
 
 
 
99 
Subsidiary equity transactions
 
301 
 
 
 
643 
944 
Distributions to noncontrolling interests
 
 
 
 
 
(73)
(73)
Balance, at Mar. 31, 2016
$ 52 
$ 7,501 
$ (1,400)
$ 257 
 
$ 4,098 
$ 10,508 
Balance, shares, at Mar. 31, 2016
524 
 
 
 
 
 
 
Summary Of Significant Accounting Policies
Summary Of Significant Accounting Policies

1.     Summary of Significant Accounting Policies

 

The accompanying unaudited interim financial statements and notes of Devon have been prepared pursuant to the rules and regulations of the SEC. Pursuant to such rules and regulations, certain disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the U.S. have been omitted. The accompanying unaudited interim financial statements and notes should be read in conjunction with the financial statements and notes included in Devon’s 2015 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 periods ended March 31, 2016 and 2015, as applicable, and Devon’s financial position as of March 31, 2016.  



Recently Issued Accounting Standards



The FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606). This ASU will supersede the revenue recognition requirements in Topic 605, Revenue Recognition and industry-specific guidance in Subtopic 932-605, Extractive Activities – Oil and Gas – Revenue Recognition. This ASU 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 effective date for ASU 2014-09 was delayed through the issuance of ASU 2015-14, Revenue from Contracts with Customers – Deferral of the Effective Date, to annual and interim periods beginning in 2018, with early adoption permitted in 2017. The ASU is required to be adopted using either the retrospective transition method, which requires restating previously reported results or the cumulative effect (modified retrospective) transition method, which utilizes a cumulative-effort adjustment to retained earnings in the period of adoption to account for prior period effects rather than restating previously reported results. Devon intends to use the cumulative effect transition method and is evaluating the impact this ASU will have on its consolidated financial statements and related disclosures. Devon does not plan on early adopting.

     

    The FASB issued ASU 2016-02, Leases (Topic 842). This ASU will supersede the lease requirements in Topic 840, Leases. Its objective is to increase transparency and comparability among organizations. This ASU provides guidance requiring lessees to recognize most leases on their balance sheet. Lessor accounting does not significantly change from Topic 840, except for some changes made to align with Topic 606. This ASU is effective for Devon beginning January 1, 2019 and will be applied using a modified retrospective transition method, which requires applying the new guidance to leases that exist or are entered into after the beginning of the earliest period in the financial statements. Early adoption is permitted. Devon is evaluating the impact this ASU will have on its consolidated financial statements and related disclosures and does not plan on early adopting.



The FASB issued ASU 2016-09, Compensation – Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. Its objective is to simplify several aspects of the accounting for share-based payments, including accounting for income taxes when awards vest or are settled, statutory withholding and accounting for forfeitures. Classification of these aspects on the statement of cash flows is also addressed. This ASU is effective for Devon beginning January 1, 2017. Devon is evaluating the impact this ASU will have on its consolidated financial statements and related disclosures and does not plan on early adopting.



Acquisitions And Divestitures
Acquisitions And Divestitures

2.    Acquisitions and Divestitures

 

Devon Acquisitions 



    On January 7, 2016, Devon acquired approximately 80,000 net acres and assets in the STACK play for approximately $1.5 billion, subject to certain adjustments. Devon funded the acquisition with approximately $830 million of cash and $659 million of common equity shares. A preliminary allocation of the purchase price at March 31, 2016 was approximately $1.3 billion to unproved properties and approximately $200 million to proved properties.

   

EnLink Acquisitions



    On January 7, 2016, EnLink acquired Anadarko Basin gathering and processing midstream assets, along with dedicated acreage service rights and service contracts, for approximately $1.5 billion, subject to certain adjustments. EnLink funded the acquisition with approximately $215 million of General Partner common units and approximately $800 million of cash, primarily funded with the issuance of EnLink preferred units. The remaining $500 million of the purchase price is to be paid within one year with the option to defer $250 million of the final payment 24 months from the close date. The first $250 million of undiscounted  future installment payment is reported in other current liabilities in the accompanying consolidated balance sheets with the remaining $250 million payment reported in other long-term liabilities. The accretion of the discount is reported within net financing costs in the accompanying consolidated comprehensive statement of earnings. A preliminary allocation of the purchase price at March 31, 2016 was $1.0 billion to intangible assets and $420 million to property and equipment.



Devon Asset Divestitures



    In February 2016, Devon announced a program to divest certain non-core assets. On April 15, 2016, Devon reached an agreement to sell its Mississippian assets for $200 million, subject to certain adjustments. The transaction is expected to close in the second quarter of 2016.



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 to hedge future prices received. Additionally, Devon and EnLink periodically enter into derivative financial instruments with respect to a portion of their oil, gas and NGL marketing activities. These commodity derivative financial instruments 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 and foreign exchange forward contracts to manage its exposure to fluctuations in the U.S. and Canadian dollar exchange rates.



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.



As of December 31, 2015, Devon’s other current assets in the accompanying consolidated balance sheet included $236 million of accrued settlements that it received in January 2016.



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 generally contain provisions that provide for collateral payments, if Devon or its counterparty’s credit rating falls below certain credit rating levels.



As of March 31, 2016 and December 31, 2015, Devon held $5 million and $75 million, respectively, 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 consolidated balance sheets. 

 

Commodity Derivatives

 

As of March 31, 2016, 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 WTI futures price. The second table presents Devon’s oil derivatives that settle against the respective indices noted within the table.



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

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 2016

 

30,000

 

$

39.24

 

73,000

 

$

33.85

 

$

41.59

 

18,500

 

$

73.18

Q3 2016

 

-

 

$

-

 

37,000

 

$

40.05

 

$

45.05

 

18,500

 

$

73.18

Q4 2016

 

-

 

$

-

 

-

 

$

-

 

$

-

 

18,500

 

$

73.18









 

 

 

 

 

 

 



 

 

 

 

 

 

 



 

Oil Basis Swaps

Period

 

Index

 

Volume (Bbls/d)

 

Weighted Average Differential to WTI ($/Bbl)

Q2-Q4 2016 

 

Western Canadian Select

 

37,985

 

$

(13.36)

Q2-Q4 2016 

 

West Texas Sour

 

5,000

 

$

(0.53)

Q2-Q4 2016 

 

Midland Sweet

 

13,000

 

$

0.25 



As of March 31, 2016, 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 respective indices noted within the table.







 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

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 2016

 

481,400

 

$

2.73

 

4,945

 

$

1.77

 

$

2.02

 

400,000

 

$

2.80

Q3 2016

 

-

 

$

-

 

-

 

$

-

 

$

-

 

400,000

 

$

2.80

Q4 2016

 

-

 

$

-

 

-

 

$

-

 

$

-

 

400,000

 

$

2.80







 

 

 

 

 

 

 



 

Natural Gas Basis Swaps

Period

 

Index

 

Volume (MMBtu/d)

 

Weighted Average Differential to Henry Hub ($/MMBtu)

Q2-Q4 2016

 

Panhandle Eastern Pipe Line

 

175,000

 

$

(0.34)

Q2-Q4 2016

 

El Paso Natural Gas

 

125,000

 

$

(0.12)

Q2-Q4 2016

 

Houston Ship Channel

 

30,000

 

$

0.11

Q2-Q4 2016

 

Transco Zone 4

 

70,000

 

$

0.01

Q1-Q4 2017

 

Panhandle Eastern Pipe Line

 

150,000

 

$

(0.34)

Q1-Q4 2017

 

El Paso Natural Gas

 

60,000

 

$

(0.13)

Q1-Q4 2017

 

Houston Ship Channel

 

35,000

 

$

0.06

Q1-Q4 2017

 

Transco Zone 4

 

205,000

 

$

0.03





    As of March 31, 2016,  EnLink had the following open derivative positions associated with gas processing and fractionation. EnLink’s NGL derivative positions settle by purity product against the average of the prompt month OPIS Mont Belvieu, Texas index.



 

 

 

 

 

 

 

 

 

 

 

Period

 

Product

 

Volume (Total)

 

 

Weighted Average Price Paid

 

 

Weighted Average Price Received

Q2 2016-Q4 2016

 

Ethane

 

415

MBbls

 

$

0.29/gal

 

 

Index

Q2 2016-Q1 2017

 

Propane

 

744

MBbls

 

 

Index

 

$

0.74/gal



Interest Rate Derivatives

 

    As of March 31, 2016, Devon had the following open interest rate derivative positions:





 

 

 

 

 

 

 



 

 

 

 

 

 

 

Notional

 

Rate Received

 

Rate Paid

 

Expiration

(Millions)

 

 

 

 

 

 

$

100

 

Three Month LIBOR

 

0.92%

 

December 2016

$

100

 

1.76%

 

Three Month LIBOR

 

January 2019

$

750

 

Three Month LIBOR

 

2.98%

 

December 2048 (1)

____________________________

(1) Mandatory settlement in December 2018.



Foreign Currency Derivatives

 

As of March 31, 2016, Devon had the following open foreign currency derivative position:

 



 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

Forward Contract

Currency

 

Contract Type

 

CAD Notional

 

Weighted Average Fixed Rate Received

 

Expiration



 

 

 

(Millions)

 

(CAD-USD)

 

 

Canadian Dollar

 

Sell

 

$

1,676 

 

0.753

 

June 2016





Financial Statement Presentation

 

The following table presents the net gains and losses by derivative financial instrument type followed by the corresponding individual consolidated comprehensive statements of earnings caption.







 

 

 

 

 

 

 



 

Three Months Ended March 31,

 



 

2016

 

2015

 



 

 

 

 

 

 

 

Commodity derivatives:

 

(Millions)

 

Oil, gas and NGL derivatives

 

$

33 

 

$

294 

 

Marketing and midstream revenues

 

 

 -

 

 

 

Interest rate derivatives:

 

 

 

 

 

 

 

Other nonoperating items

 

 

(72)

 

 

 

Foreign currency derivatives:

 

 

 

 

 

 

 

Other nonoperating items

 

 

(155)

 

 

133 

 

Net gains (losses) recognized

 

$

(194)

 

$

430 

 





    The following table presents the derivative fair values by derivative financial instrument type followed by the corresponding individual consolidated balance sheet caption.

 





 

 

 

 

 

 



 

March 31, 2016

 

December 31, 2015



 

 

 

 

 

 



 

(Millions)

Commodity derivative assets:

 

 

 

 

 

 

Derivatives, at fair value

 

$

53 

 

$

34 

Other long-term assets

 

 

 

 

Interest rate derivative assets:

 

 

 

 

 

 

Derivatives, at fair value

 

 

 

 

Other long-term assets

 

 

 

 

Foreign currency derivative assets:

 

 

 

 

 

 

Derivatives, at fair value

 

 

 -

 

 

Total derivative assets

 

$

56 

 

$

45 



 

 

 

 

 

 

Commodity derivative liabilities:

 

 

 

 

 

 

Other current liabilities

 

$

26 

 

$

14 

Other long-term liabilities

 

 

 

 

Interest rate derivative liabilities:

 

 

 

 

 

 

Other long-term liabilities

 

 

95 

 

 

22 

Foreign currency derivative liabilities:

 

 

 

 

 

 

Other current liabilities

 

 

26 

 

 

 Total derivative liabilities

 

$

149 

 

$

48 



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 consolidated comprehensive statements of earnings. Gross G&A expense for the first three months of 2016 and 2015 includes $6 million and $12 million, respectively, 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 2016 in conjunction with the reduction of workforce described in Note 6.  For the three months ended March 31, 2016, approximately $67 million of associated expense for these accelerated awards is included in restructuring and transaction costs in the accompanying consolidated comprehensive statements of earnings. 







 

 

 

 

 

 



 

 

 

 

 

 



 

Three Months Ended March 31,



 

2016

 

2015



 

 

 

 

 

 



 

(Millions)

Gross G&A for share-based compensation

 

$

45 

 

$

68 

Share-based compensation expense capitalized pursuant to the

 

 

 

 

 

 

  full cost method of accounting for oil and gas properties

 

$

12 

 

$

15 

Related income tax benefit

 

$

 

$

14 





Under its approved long-term incentive plan, Devon granted share-based awards to certain employees in the first three months of 2016. The following table presents a summary of Devon’s unvested restricted stock awards and units, performance-based restricted stock awards and performance share units granted under the plan.













 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

Restricted Stock

 

Performance-Based

 

Performance



 

Awards and Units

 

Restricted Stock Awards

 

Share Units



 

Awards and Units

 

 

 

Weighted Average Grant-Date Fair Value

 

Awards

 

 

 

Weighted Average Grant-Date Fair Value

 

Units

 

 

 

Weighted Average Grant-Date Fair Value



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

(Thousands, except fair value data)

Unvested at 12/31/15

 

4,738 

 

 

$

62.49 

 

434 

 

 

$

60.48 

 

1,859 

 

 

$

76.17 

Granted

 

4,261 

 

 

$

19.31 

 

330 

 

 

$

19.22 

 

1,388 

 

 

$

10.41 

Vested

 

(1,167)

 

 

$

62.55 

 

(102)

 

 

$

62.55 

 

(602)

 

 

$

63.37 

Forfeited

 

(74)

 

 

$

60.24 

 

 -

 

 

$

 -

 

(7)

 

 

$

81.67 

Unvested at 3/31/16

 

7,758 

 

 

$

38.79 

 

662 

 

 

$

39.57 

 

2,638 

 

(1)

$

46.52 

____________________________

(1) A maximum of 5.3 million common shares could be awarded based upon Devon’s final TSR ranking relative to Devon’s peer group established under applicable award agreements.    



The following table presents the assumptions related to the performance share units granted in 2016, as indicated in the previous summary table.

 





 

 

 

 

 



2016



 

 

 

 

 

Grant-date fair value

$

9.24 

-

$

10.61 

Risk-free interest rate

0.94% 

Volatility factor

37.7% 

Contractual term (years)

2.83 



    The following table presents a summary of the unrecognized compensation cost and the related weighted average recognition period associated with unvested awards and units as of March 31, 2016.











 

 

 

 

 

 

 

 

 



 

 

 

Performance-Based

 

 

 



 

Restricted Stock

 

Restricted Stock

 

Performance



 

Awards and Units

 

Awards

 

Share Units

Unrecognized compensation cost (millions)

 

$

180 

 

$

10 

 

$

40 

Weighted average period for recognition (years)

 

 

2.7 

 

 

2.8 

 

 

1.9 



EnLink Share-Based Awards



    The following table presents a summary of the unrecognized compensation cost and the related weighted average recognition period associated with the General Partner’s and EnLink’s unvested restricted incentive units and performance units as of March 31, 2016.







 

 

 

 

 

 

 

 

 

 

 

 



 

General Partner

 

EnLink



 

Restricted

 

Performance

 

Restricted

 

Performance



 

Incentive Units

 

Units

 

Incentive Units

 

Units

Unrecognized compensation cost (millions)

 

$

22 

 

$

 

$

22 

 

$

Weighted average period for recognition (years)

 

 

1.9 

 

 

2.2 

 

 

1.9 

 

 

2.2 



 

Asset Impairments
Asset Impairments

5.     Asset Impairments



The following table presents the asset impairments recognized by Devon in the first three months of 2016 and 2015, respectively.





 

 

 

 

 

 

 



 

 

 

 

 

 

 



 

Three Months Ended March 31,

 

 

 

2016

 

2015

 



 

 

 

 

 

 

 



 

(Millions)

 

U.S. oil and gas assets

 

$

1,608 

 

$

5,458 

 

Canada oil and gas assets

 

 

554 

 

 

 -

 

EnLink goodwill

 

 

873 

 

 

 -

 

Other assets

 

 

 -

 

 

 

Total asset impairments

 

$

3,035 

 

$

5,460 

 





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% 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 from declines in the U.S. and Canada full cost ceilings.  The lower ceiling values resulted primarily from significant decreases in the 12-month average trailing prices for oil, bitumen, gas and NGLs, which significantly reduced proved reserves values and, to a lesser degree, proved reserves.  

 

EnLink Goodwill Impairments 



    In the first quarter of 2016, Devon recognized goodwill impairments related to EnLink’s business. Additional information regarding the impairments is discussed in Note 13.

 

Restructuring And Transaction Costs
Restructuring And Transaction Costs

6.     Restructuring and Transaction Costs



Reduction in Workforce



    In the first quarter of 2016, Devon recognized $234 million of employee-related costs associated with a reduction in workforce that was made in response to the depressed commodity price environment. Of these employee-related costs, approximately $67 million resulted from accelerated vesting of share-based grants, which are noncash charges. Additionally, approximately $30 million resulted from estimated defined benefit settlements. These cash and noncash charges included estimates for employees released from service in the first quarter of 2016, as well as amounts based on the number of employees expected to be impacted by our non-core asset divestitures.  Devon expects to complete these divestitures in 2016. 



Transaction Costs



In the first quarter of 2016, Devon and EnLink recognized $13 million of transaction costs primarily associated with the closing of the acquisitions discussed in Note 2.





Financial Statement Presentation



    The following table summarizes Devon’s restructuring liabilities.  







 

 

 

 

 

 

 

 

 



 

Other

 

Other

 

 

 



 

Current

 

Long-term

 

 

 



 

Liabilities

 

Liabilities

 

Total



 

 

 

 

 

 

 

 

 



  

(Millions)

Balance as of December 31, 2015

  

$

13 

 

$

63 

 

$

76 

Changes due to 2016 workforce reductions

 

 

149 

 

 

 -

 

 

149 

Changes related to prior years’ restructurings

 

 

 

 

(2)

 

 

 -

Balance as of March 31, 2016

  

$

164 

  

$

61 

  

$

225 



 

 

 

 

 

 

 

 

 

Balance as of December 31, 2014

  

$

13 

 

$

 

$

20 

Changes related to prior years’ restructurings

 

 

(1)

 

 

(1)

 

 

(2)

Balance as of March 31, 2015

 

$

12 

 

$

 

$

18 



 

 

 

 

 

 

 

 

 



Income Taxes
Income Taxes

7.     Income Taxes



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





 

 

 

 

 

 

 



 

 

 

 

 

 

 



 

Three Months Ended March 31,

 



 

2016

 

2015

 



 

 

 

 

 

 

 

Total income tax benefit (millions)

 

$

(217)

 

$

(2,035)

 



 

 

 

 

 

 

 

U.S. statutory income tax rate

 

 

(35%)

 

 

(35%)

 

Deferred tax asset valuation allowance

 

 

22% 

 

 

0% 

 

Non-deductible goodwill impairment

 

 

8% 

 

 

0% 

 

Taxation on Canadian operations

 

 

2% 

 

 

0% 

 

State income taxes

 

 

(1%)

 

 

(1%)

 

Other

 

 

(2%)

 

 

0% 

 

Effective income tax rate

 

 

(6%)

 

 

(36%)

 



    Devon estimates its annual effective income tax rate in recording its quarterly provision for income taxes in the various jurisdictions in which it operates. Statutory tax rate changes and other significant or unusual items are recognized as discrete items in the quarter in which they occur.



At December 31, 2015, Devon recorded a 100% valuation, or $967 million, allowance against the U.S. deferred tax assets that largely resulted from the full cost impairments recognized during 2015. In the first quarter of 2016, Devon provided an additional $808 million deferred tax valuation allowance to reflect its continued financial losses incurred largely by the additional full cost impairment.



In the first quarter of 2016, EnLink recorded a goodwill impairment of approximately $873 million. This impairment is not deductible for purposes of calculating income tax and therefore has an impact on the effective tax rate.



    Devon and its subsidiaries are subject to U.S. federal income tax as well as income or capital taxes in various state and foreign jurisdictions. Devon’s tax reserves are related to tax years that may be subject to examination by the relevant taxing authority. Devon is under audit in the U.S. and various foreign jurisdictions as part of its normal course of business.

Net Loss Per Share Attributable To Devon
Net Loss Per Share Attributable To Devon

8.     Net Loss Per Share Attributable to Devon



The following table reconciles net loss attributable to Devon and weighted-average common shares outstanding used in the calculations of basic and diluted net loss per share.





 

 

 

 

 

 



  

Three Months Ended



 

March 31,



 

2016

 

2015



 

 

 

 

 

 



  

(Millions, except per share amounts)

Net loss:

 

 

 

 

 

 

Net loss attributable to Devon

 

$

(3,056)

 

$

(3,599)

Attributable to participating securities

 

 

 -

 

 

(1)

Basic and diluted loss

 

$

(3,056)

 

$

(3,600)

Common shares:

 

 

 

 

 

 

Common shares outstanding - total

 

 

479 

 

 

410 

Attributable to participating securities

 

 

(5)

 

 

(4)

Common shares outstanding - basic

 

 

474 

 

 

406 

Dilutive effect of potential common shares issuable

 

 

 -

 

 

 -

Common shares outstanding - diluted

 

 

474 

 

 

406 



 

 

 

 

 

 

Net loss per share attributable to Devon:

 

 

 

 

 

 

Basic

 

$

(6.44)

 

$

(8.88)

Diluted

 

$

(6.44)

 

$

(8.88)

Antidilutive options (1)

 

 

 

 

____________________________

(1)

Amounts represent options to purchase shares of Devon’s common stock that are excluded from the diluted net loss per share calculations because the options are antidilutive.

  

Other Comprehensive Earnings
Other Comprehensive Earnings

9.     Other Comprehensive Earnings 



Components of other comprehensive earnings consist of the following:





 

 

 

 

 

 



 

 



 

Three Months Ended March 31,



 

2016

 

2015



 

 

 

 

 

 



 

(Millions)

Foreign currency translation:

 

 

 

 

 

 

Beginning accumulated foreign currency translation

 

$

424 

 

$

983 

Change in cumulative translation adjustment

 

 

51 

 

 

(337)

Income tax benefit (expense)

 

 

(28)

 

 

35 

Ending accumulated foreign currency translation

 

 

447 

 

 

681 

Pension and postretirement benefit plans:

 

 

 

 

 

 

Beginning accumulated pension and postretirement benefits

 

 

(194)

 

 

(204)

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

 

 

 

 

Income tax expense

 

 

(2)

 

 

(2)

Ending accumulated pension and postretirement benefits

 

 

(190)

 

 

(200)

Accumulated other comprehensive earnings, net of tax

 

$

257 

 

$

481 

__________________________

(1)  These accumulated other comprehensive earnings components are included in the computation of net periodic benefit cost, which is a component of G&A on the accompanying consolidated comprehensive statements of earnings. See Note 16 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

 



 

 

 

 

 

 



 

Three Months Ended March 31,



 

2016

 

2015



 

 

 

 

 

 



 

(Millions)

Net change in working capital accounts, net of assets and liabilities assumed:

 

 

 

 

 

 

Accounts receivable

 

$

146 

 

$

404 

Other current assets

 

 

366 

 

 

332 

Accounts payable

 

 

(121)

 

 

(15)

Revenues and royalties payable

 

 

(101)

 

 

(236)

Other current liabilities

 

 

(92)

 

 

(270)

Net change in working capital

 

$

198 

 

$

215 



 

 

 

 

 

 

Interest paid (net of capitalized interest)

 

$

115 

 

$

118 

Income taxes paid (received)

 

$

(128)

 

$

(414)



    Devon’s acquisition of certain STACK assets during the first three months of 2016 included the noncash issuance of Devon common stock. See Note 2 for additional details.



    EnLink’s acquisition of Anadarko Basin gathering and processing midstream assets during the first quarter of 2016 included noncash issuance of General Partner common units. See Note 2 for additional details. During the first three months of 2015, EnLink’s acquisitions included $360 million of noncash equity issuance.

Accounts Receivable
Accounts Receivable

11.    Accounts Receivable

 

Components of accounts receivable include the following:





 

 

 

 

 

 



 

 

 

 

 

 



 

March 31, 2016

 

December 31, 2015



 

 

 

 

 

 



 

(Millions)

Oil, gas and NGL sales

 

$

350 

 

$

362 

Joint interest billings

 

 

152 

 

 

211 

Marketing and midstream revenues

 

 

477 

 

 

520 

Other

 

 

62 

 

 

30 

Gross accounts receivable

 

 

1,041 

 

 

1,123 

Allowance for doubtful accounts

 

 

(18)

 

 

(18)

Net accounts receivable

 

$

1,023 

 

$

1,105 

 

Other Current Liabilities
Other Current Liabilities

12.    Other Current Liabilities



    Components of other current liabilities include the following:



 

 

 

 

 



March 31, 2016

 

December 31, 2015



 

 

 

 

 



(Millions)



 

 

 

 

 

Installment payment - see Note 2

$

229 

 

$

 -

Accrued interest payable

 

179 

 

 

149 

Restructuring liabilities

 

164 

 

 

13 

Other

 

333 

 

 

488 

  Other current liabilities

$

905 

 

$

650 



Goodwill And Other Intangible Assets
Goodwill And Other Intangible Assets

13.    Goodwill and Other Intangible Assets

 

Goodwill



   

    Devon performs an annual impairment test of goodwill at October 31, or more frequently if events or changes in circumstances indicate that the carrying value of a reporting unit may not be recoverable. Sustained weakness in the overall energy sector driven by low commodity prices, together with a decline in EnLink’s unit price, caused a change in circumstances warranting an interim impairment test of EnLink’s reporting units. In the first quarter of 2016, EnLink recorded a noncash goodwill impairment of $873 million. This consisted of a full impairment charge of $93 million related to its Crude and Condensate reporting unit and partial impairment to its Texas and General Partner reporting units of $473 million and $307 million, respectively.



Other Intangible Assets



The following table presents other intangible assets reported in other long-term assets in the accompanying consolidated balance sheets. See Note 2 for discussion of changes in other intangible assets resulting from EnLink acquisitions during the first three months of 2016.







 

 

 

 

 

 



 

March 31, 2016

 

December 31, 2015



 

 

 

 

 

 



 

(Millions)



 

 

 

 

 

 

Customer relationships

 

$

1,779 

 

$

745 

Accumulated amortization

 

 

(82)

 

 

(55)

  Net intangibles

 

$

1,697 

 

$

690 









The weighted-average amortization period for other intangible assets is 14 years. Amortization expense for intangibles was approximately $28 million and $12 million for the three months ended March 31, 2016 and 2015, respectively. The remaining aggregate amortization expense is estimated to be $115 million each of the next five years. 

 

Debt
Debt

14.    Debt 



    A summary of debt is as follows:







 

 

 

 

 

 



 

March 31, 2016

 

December 31, 2015



 

 

 

 

 

 



 

(Millions)

Devon debt

 

 

 

 

 

 

Commercial paper

 

$

 -

 

$

626 

Debentures and notes

 

 

9,425 

 

 

9,425 

Net discount on debentures and notes

 

 

(28)

 

 

(28)

Debt issuance costs

 

 

(56)

 

 

(57)

Total Devon debt

 

 

9,341 

 

 

9,966 

EnLink debt

 

 

 

 

 

 

   Credit facilities

 

 

552 

 

 

414 

Debentures and notes

 

 

2,663 

 

 

2,663 

Net premium on debentures and notes

 

 

12 

 

 

13 

Debt issuance costs

 

 

(23)

 

 

(24)

Total EnLink debt

 

 

3,204 

 

 

3,066 

Total debt

 

 

12,545 

 

 

13,032 

Less amount classified as short-term debt (1)

 

 

350 

 

 

976 

Total long-term debt

 

$

12,195 

 

$

12,056 

____________________________

(1)

Short-term debt as of March 31, 2016 consists of $350 million of floating rate due on December 15, 2016. Short-term debt as of December 31, 2015 consists of $626 million of commercial paper and $350 million floating rate due on December 15, 2016.



As of January 1, 2016, Devon adopted ASU 2015-03, Interest – Imputation of Interest (Topic 835): Simplifying the Presentation of Debt Issuance Costs. This ASU requires debt issuance costs related to a recognized debt liability to be presented on the balance sheet as a direct deduction from the carrying amount of that debt liability rather than as an asset. As a result of the adoption, Devon reclassified unamortized debt issuance costs of $81 million as of December 31, 2015 from other long-term assets to a reduction of long-term debt on the consolidated balance sheets.



Commercial Paper



During the three months ended March 31, 2016, Devon reduced commercial paper borrowings by $626 million. As of March 31, 2016, Devon had no outstanding commercial paper borrowings.

 

Credit Lines

 

Devon has a $3.0 billion Senior Credit Facility. As of March 31, 2016, there were $43 million in outstanding letters of credit and 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%.  Under the terms of the credit agreement, total capitalization is adjusted to add back noncash financial write-downs such as full cost ceiling impairments or goodwill impairments. As of March 31, 2016, Devon was in compliance with this covenant with a debt-to-capitalization ratio of 22.6%.



EnLink Debt



All of EnLink’s and the General Partner’s debt is non-recourse to Devon.



EnLink has a $1.5 billion unsecured revolving credit facility. As of March 31, 2016, there were $11 million in outstanding letters of credit and $543 million in outstanding borrowings at an average rate of 2.23%  under the $1.5 billion credit facility.  The General Partner has a $250 million secured revolving credit facility. As of March 31, 2016, the General Partner had $9 million in outstanding borrowings at an average rate of 4.25%. EnLink and the General Partner were in compliance with all financial covenants in their respective credit facilities as of March 31, 2016.

 

Asset Retirement Obligations
Asset Retirement Obligations

15.    Asset Retirement Obligations

 

The following table presents the changes in Devon’s asset retirement obligations.







 

 

 

 

 

 



 

 

 

 

 

 



 

Three Months Ended March 31,



 

2016

 

2015



 

 

 

 

 

 



 

(Millions)

Asset retirement obligations as of beginning of period

 

$

1,414 

 

$

1,399 

Liabilities incurred and assumed through acquisitions

 

 

12 

 

 

23 

Liabilities settled and divested

 

 

(17)

 

 

(25)

Revision of estimated obligation

 

 

77 

 

 

62 

Accretion expense on discounted obligation

 

 

19 

 

 

19 

Foreign currency translation adjustment

 

 

29 

 

 

(53)

Asset retirement obligations as of end of period

 

 

1,534 

 

 

1,425 

Less current portion

 

 

43 

 

 

52 

Asset retirement obligations, long-term

 

$

1,491 

 

$

1,373 

 

Retirement Plans
Retirement Plans

16.    Retirement Plans



    The following table presents the components of net periodic benefit cost for Devon’s pension benefit plans. There was no net periodic benefit cost for postretirement benefit plans for all periods presented below.





 

 

 

 

 

 

 



 

 

 

 

 

 

 



 

Pension Benefits

 



 

Three Months Ended

 



 

March 31,

 

 

 

2016

 

2015

 



 

 

 

 

 

 

 



 

(Millions)

 

Service cost

 

$

 

$

 

Interest cost

 

 

12 

 

 

13 

 

Expected return on plan assets

 

 

(13)

 

 

(15)

 

Amortization of prior service cost (1)

 

 

 

 

 

Net actuarial loss (1)

 

 

 

 

 

Net periodic benefit cost (2)

 

$

11 

 

$

12 

 

__________________________

(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 G&A in the accompanying consolidated comprehensive statements of earnings.

 

 

Stockholders' Equity
Stockholders' Equity

17.    Stockholders’ Equity



Common Stock Issued

 

    In January 2016, Devon issued approximately 23 million shares of common stock in conjunction with the STACK asset acquisition discussed in Note 2.



    In February 2016, Devon issued 79 million shares of common stock to the public, inclusive of 10 million shares sold as part of the underwriters’ option. Net proceeds from the offering were $1.5 billion.  



Dividends

 

    Devon paid common stock dividends of $125 million and $99 million in the first three months of 2016 and 2015, respectively. In the first quarter of 2016, Devon announced a decrease in the quarterly cash dividend rate from $0.24 per share to $0.06 per share beginning in the second quarter of 2016.   



 

Noncontrolling Interests
Noncontrolling interests

18.    Noncontrolling Interests



Subsidiary Equity Transactions



As a result of EnLink’s transactions discussed in Note 2, Devon’s ownership interest in EnLink decreased from 28% at December 31, 2015 to 25% at March 31, 2016, excluding the interest held by the General Partner. Additionally, Devon’s ownership in the General Partner decreased from 70% to 64% during the same time period as a result of the transaction discussed in Note 2. The net gains and losses and related income taxes resulting from these transactions have been recorded as an adjustment to equity, with the change in ownership reflected as an adjustment to noncontrolling interests.



In March 2015, Devon conducted an underwritten secondary public offering of 23 million common units representing limited partner interests in EnLink, raising net proceeds of $569 million.



Distributions to Noncontrolling Interests



    EnLink and the General Partner distributed $73 million and $53 million to non-Devon unitholders during the first three months of 2016 and 2015, respectively.



Commitments And Contingencies
Commitments And Contingencies

19.    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 is also involved in governmental agency proceedings and is subject to related contracts and regulatory controls in the ordinary course of business, some that may lead to additional royalty claims. 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

20.    Fair Value Measurements

 

The following table provides 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 consolidated balance sheets approximated fair value at March 31, 2016 and December 31, 2015. Therefore, such financial assets and liabilities are not presented in the following table. Additionally, information regarding the fair values of oil and gas assets, goodwill and other intangible assets is provided in Note 5 and Note 13.







 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

Fair Value Measurements Using:



 

Carrying

 

Total Fair

 

Level 1

 

Level 2

 

Level 3



 

Amount

 

Value

 

Inputs

 

Inputs

 

Inputs



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

(Millions)

March 31, 2016 assets (liabilities):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash equivalents

 

$

1,121 

 

$

1,121 

 

$

1,026 

 

$

95 

 

$

 -

Commodity derivatives

 

$

54 

 

$

54 

 

$

 -

 

$

54 

 

$

 -

Commodity derivatives

 

$

(28)

 

$

(28)

 

$

 -

 

$

(28)

 

$

 -

Interest rate derivatives

 

$

 

$

 

$

 -

 

$

 

$

 -

Interest rate derivatives

 

$

(95)

 

$

(95)

 

$

 -

 

$

(95)

 

$

 -

Foreign currency derivatives

 

$

(26)

 

$

(26)

 

$

 -

 

$

(26)

 

$

 -

Debt

 

$

(12,545)

 

$

(11,217)

 

$

 -

 

$

(11,217)

 

$

 -

Capital lease obligations

 

$

(13)

 

$

(13)

 

$

 -

 

$

(13)

 

$

 -



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2015 assets (liabilities):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash equivalents

 

$

1,871 

 

$

1,871 

 

$

1,471 

 

$

400 

 

$

 -

Commodity derivatives

 

$

35 

 

$

35 

 

$

 -

 

$

35 

 

$

 -

Commodity derivatives

 

$

(18)

 

$

(18)

 

$

 -

 

$

(18)

 

$

 -

Interest rate derivatives

 

$

 

$

 

$

 -

 

$

 

$

 -

Interest rate derivatives

 

$

(22)

 

$

(22)

 

$

 -

 

$

(22)

 

$

 -

Foreign currency derivatives

 

$

 

$

 

$

 -

 

$

 

$

 -

Foreign currency derivatives

 

$

(8)

 

$

(8)

 

$

 -

 

$

(8)

 

$

 -

Debt

 

$

(13,032)

 

$

(11,927)

 

$

 -

 

$

(11,927)

 

$

 -

Capital lease obligations

 

$

(17)

 

$

(16)

 

$

 -

 

$

(16)

 

$

 -

 

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



Level 1 Fair Value Measurements

Cash equivalents —  Amounts consist primarily of money market investments. The fair value approximates the carrying value.

 

Level 2 Fair Value Measurements

 

Cash equivalents —  Amounts consist primarily of commercial paper and Canadian agency and provincial securities 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 values of commercial paper and credit facility balances are the carrying values.



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

 

 

Segment Information
Segment Information

21.    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 exploration and production 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.



Devon considers EnLink, combined with the General Partner, to be an operating segment that is distinct from the U.S. and Canadian 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. 





 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    

 

U.S.

 

Canada

 

EnLink

 

Eliminations

 

Total



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

(Millions)

Three Months Ended March 31, 2016:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues from external customers

 

$

1,302 

 

$

117 

 

$

707 

 

$

 -

 

$

2,126 

Intersegment revenues

 

$

 -

 

$

 -

 

$

183 

 

$

(183)

 

$

 -

Depreciation, depletion and amortization

 

$

311 

 

$

109 

 

$

122 

 

$

 -

 

$

542 

Interest expense

 

$

107 

 

$

34 

 

$

44 

 

$

(20)

 

$

165 

Asset impairments

 

$

1,608 

 

$

554 

 

$

873 

 

$

 -

 

$

3,035 

Restructuring and transaction costs

 

$

236 

 

$

 

$

 

$

 -

 

$

247 

Loss before income taxes

 

$

(2,065)

 

$

(749)

 

$

(871)

 

$

 -

 

$

(3,685)

Income tax benefit

 

$

(5)

 

$

(208)

 

$

(4)

 

$

 -

 

$

(217)

Net loss

 

$

(2,060)

 

$

(541)

 

$

(867)

 

$

 -

 

$

(3,468)

Net loss attributable to noncontrolling interests

 

$

 -

 

$

 -

 

$

(412)

 

$

 -

 

$

(412)

Net loss attributable to Devon

 

$

(2,060)

 

$

(541)

 

$

(455)

 

$

 -

 

$

(3,056)

Property and equipment, net

 

$

8,901 

 

$

4,246 

 

$

6,117 

 

$

 -

 

$

19,264 

Total assets

 

$

13,717 

 

$

4,933 

 

$

10,066 

 

$

(79)

 

$

28,637 

Capital expenditures, including acquisitions

 

$

1,893 

 

$

81 

 

$

545 

 

$

 -

 

$

2,519 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended March 31, 2015:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues from external customers

 

$

2,260 

 

$

221 

 

$

784 

 

$

 -

 

$

3,265 

Intersegment revenues

 

$

 -

 

$

 -

 

$

156 

 

$

(156)

 

$

 -

Depreciation, depletion and amortization

 

$

712 

 

$

127 

 

$

91 

 

$

 -

 

$

930 

Interest expense

 

$

87 

 

$

25 

 

$

19 

 

$

(12)

 

$

119 

Asset impairments

 

$

5,460 

 

$

 -

 

$

 -

 

$

 -

 

$

5,460 

Earnings (loss) before income taxes

 

$

(5,488)

 

$

(172)

 

$

36 

 

$

 -

 

$

(5,624)

Income tax expense (benefit)

 

$

(1,993)

 

$

(53)

 

$

11 

 

$

 -

 

$

(2,035)

Net earnings (loss)

 

$

(3,495)

 

$

(119)

 

$

25 

 

$

 -

 

$

(3,589)

Net earnings attributable to noncontrolling interests

 

$

 -

 

$

 -

 

$

10 

 

$

 -

 

$

10 

Net earnings (loss) attributable to Devon

 

$

(3,495)

 

$

(119)

 

$

15 

 

$

 -

 

$

(3,599)

Property and equipment, net

 

$

19,718 

 

$

6,281 

 

$

5,456 

 

$

 -

 

$

31,455 

Total assets

 

$

26,751 

 

$

7,618 

 

$

11,007 

 

$

(102)

 

$

45,274 

Capital expenditures, including acquisitions

 

$

1,344 

 

$

224 

 

$

514 

 

$

 -

 

$

2,082 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



Summary Of Significant Accounting Policies (Policies)

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.

Recently Issued Accounting Standards



The FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606). This ASU will supersede the revenue recognition requirements in Topic 605, Revenue Recognition and industry-specific guidance in Subtopic 932-605, Extractive Activities – Oil and Gas – Revenue Recognition. This ASU 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 effective date for ASU 2014-09 was delayed through the issuance of ASU 2015-14, Revenue from Contracts with Customers – Deferral of the Effective Date, to annual and interim periods beginning in 2018, with early adoption permitted in 2017. The ASU is required to be adopted using either the retrospective transition method, which requires restating previously reported results or the cumulative effect (modified retrospective) transition method, which utilizes a cumulative-effort adjustment to retained earnings in the period of adoption to account for prior period effects rather than restating previously reported results. Devon intends to use the cumulative effect transition method and is evaluating the impact this ASU will have on its consolidated financial statements and related disclosures. Devon does not plan on early adopting.

   

    The FASB issued ASU 2016-02, Leases (Topic 842). This ASU will supersede the lease requirements in Topic 840, Leases. Its objective is to increase transparency and comparability among organizations. This ASU provides guidance requiring lessees to recognize most leases on their balance sheet. Lessor accounting does not significantly change from Topic 840, except for some changes made to align with Topic 606. This ASU is effective for Devon beginning January 1, 2019 and will be applied using a modified retrospective transition method, which requires applying the new guidance to leases that exist or are entered into after the beginning of the earliest period in the financial statements. Early adoption is permitted. Devon is evaluating the impact this ASU will have on its consolidated financial statements and related disclosures and does not plan on early adopting.



The FASB issued ASU 2016-09, Compensation – Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. Its objective is to simplify several aspects of the accounting for share-based payments, including accounting for income taxes when awards vest or are settled, statutory withholding and accounting for forfeitures. Classification of these aspects on the statement of cash flows is also addressed. This ASU is effective for Devon beginning January 1, 2017. Devon is evaluating the impact this ASU will have on its consolidated financial statements and related disclosures and does not plan on early adopting.





As of January 1, 2016, Devon adopted ASU 2015-03, Interest – Imputation of Interest (Topic 835): Simplifying the Presentation of Debt Issuance Costs. This ASU requires debt issuance costs related to a recognized debt liability to be presented on the balance sheet as a direct deduction from the carrying amount of that debt liability rather than as an asset. As a result of the adoption, Devon reclassified unamortized debt issuance costs of $81 million as of December 31, 2015 from other long-term assets to a reduction of long-term debt on the consolidated balance sheets.



Commitment And Contingencies Policies (Policies)
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.

Derivative Financial Instruments (Tables)

The following table presents the net gains and losses by derivative financial instrument type followed by the corresponding individual consolidated comprehensive statements of earnings caption.







 

 

 

 

 

 

 



 

Three Months Ended March 31,

 



 

2016

 

2015

 



 

 

 

 

 

 

 

Commodity derivatives:

 

(Millions)

 

Oil, gas and NGL derivatives

 

$

33 

 

$

294 

 

Marketing and midstream revenues

 

 

 -

 

 

 

Interest rate derivatives:

 

 

 

 

 

 

 

Other nonoperating items

 

 

(72)

 

 

 

Foreign currency derivatives:

 

 

 

 

 

 

 

Other nonoperating items

 

 

(155)

 

 

133 

 

Net gains (losses) recognized

 

$

(194)

 

$

430 

 





    The following table presents the derivative fair values by derivative financial instrument type followed by the corresponding individual consolidated balance sheet caption.

 





 

 

 

 

 

 



 

March 31, 2016

 

December 31, 2015



 

 

 

 

 

 



 

(Millions)

Commodity derivative assets:

 

 

 

 

 

 

Derivatives, at fair value

 

$

53 

 

$

34 

Other long-term assets

 

 

 

 

Interest rate derivative assets:

 

 

 

 

 

 

Derivatives, at fair value

 

 

 

 

Other long-term assets

 

 

 

 

Foreign currency derivative assets:

 

 

 

 

 

 

Derivatives, at fair value

 

 

 -

 

 

Total derivative assets

 

$

56 

 

$

45 



 

 

 

 

 

 

Commodity derivative liabilities:

 

 

 

 

 

 

Other current liabilities

 

$

26 

 

$

14 

Other long-term liabilities

 

 

 

 

Interest rate derivative liabilities:

 

 

 

 

 

 

Other long-term liabilities

 

 

95 

 

 

22 

Foreign currency derivative liabilities:

 

 

 

 

 

 

Other current liabilities

 

 

26 

 

 

 Total derivative liabilities

 

$

149 

 

$

48 





 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

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 2016

 

30,000

 

$

39.24

 

73,000

 

$

33.85

 

$

41.59

 

18,500

 

$

73.18

Q3 2016

 

-

 

$

-

 

37,000

 

$

40.05

 

$

45.05

 

18,500

 

$

73.18

Q4 2016

 

-

 

$

-

 

-

 

$

-

 

$

-

 

18,500

 

$

73.18









 

 

 

 

 

 

 



 

 

 

 

 

 

 



 

Oil Basis Swaps

Period

 

Index

 

Volume (Bbls/d)

 

Weighted Average Differential to WTI ($/Bbl)

Q2-Q4 2016 

 

Western Canadian Select

 

37,985

 

$

(13.36)

Q2-Q4 2016 

 

West Texas Sour

 

5,000

 

$

(0.53)

Q2-Q4 2016 

 

Midland Sweet

 

13,000

 

$

0.25 







 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

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 2016

 

481,400

 

$

2.73

 

4,945

 

$

1.77

 

$

2.02

 

400,000

 

$

2.80

Q3 2016

 

-

 

$

-

 

-

 

$

-

 

$

-

 

400,000

 

$

2.80

Q4 2016

 

-

 

$

-

 

-

 

$

-

 

$

-

 

400,000

 

$

2.80







 

 

 

 

 

 

 



 

Natural Gas Basis Swaps

Period

 

Index

 

Volume (MMBtu/d)

 

Weighted Average Differential to Henry Hub ($/MMBtu)

Q2-Q4 2016

 

Panhandle Eastern Pipe Line

 

175,000

 

$

(0.34)

Q2-Q4 2016

 

El Paso Natural Gas

 

125,000

 

$

(0.12)

Q2-Q4 2016

 

Houston Ship Channel

 

30,000

 

$

0.11

Q2-Q4 2016

 

Transco Zone 4

 

70,000

 

$

0.01

Q1-Q4 2017

 

Panhandle Eastern Pipe Line

 

150,000

 

$

(0.34)

Q1-Q4 2017

 

El Paso Natural Gas

 

60,000

 

$

(0.13)

Q1-Q4 2017

 

Houston Ship Channel

 

35,000

 

$

0.06

Q1-Q4 2017

 

Transco Zone 4

 

205,000

 

$

0.03





 

 

 

 

 

 

 

 

 

 

 

Period

 

Product

 

Volume (Total)

 

 

Weighted Average Price Paid

 

 

Weighted Average Price Received

Q2 2016-Q4 2016

 

Ethane

 

415

MBbls

 

$

0.29/gal

 

 

Index

Q2 2016-Q1 2017

 

Propane

 

744

MBbls

 

 

Index

 

$

0.74/gal







 

 

 

 

 

 

 



 

 

 

 

 

 

 

Notional

 

Rate Received

 

Rate Paid

 

Expiration

(Millions)

 

 

 

 

 

 

$

100

 

Three Month LIBOR

 

0.92%

 

December 2016

$

100

 

1.76%

 

Three Month LIBOR

 

January 2019

$

750

 

Three Month LIBOR

 

2.98%

 

December 2048 (1)

____________________________

(1) Mandatory settlement in December 2018.



 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

Forward Contract

Currency

 

Contract Type

 

CAD Notional

 

Weighted Average Fixed Rate Received

 

Expiration



 

 

 

(Millions)

 

(CAD-USD)

 

 

Canadian Dollar

 

Sell

 

$

1,676 

 

0.753

 

June 2016



Share-Based Compensation (Tables)



 

 

 

 

 

 



 

 

 

 

 

 



 

Three Months Ended March 31,



 

2016

 

2015



 

 

 

 

 

 



 

(Millions)

Gross G&A for share-based compensation

 

$

45 

 

$

68 

Share-based compensation expense capitalized pursuant to the

 

 

 

 

 

 

  full cost method of accounting for oil and gas properties

 

$

12 

 

$

15 

Related income tax benefit

 

$

 

$

14 





 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

Restricted Stock

 

Performance-Based

 

Performance



 

Awards and Units

 

Restricted Stock Awards

 

Share Units



 

Awards and Units

 

 

 

Weighted Average Grant-Date Fair Value

 

Awards

 

 

 

Weighted Average Grant-Date Fair Value

 

Units

 

 

 

Weighted Average Grant-Date Fair Value



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

(Thousands, except fair value data)

Unvested at 12/31/15

 

4,738 

 

 

$

62.49 

 

434 

 

 

$

60.48 

 

1,859 

 

 

$

76.17 

Granted

 

4,261 

 

 

$

19.31 

 

330 

 

 

$

19.22 

 

1,388 

 

 

$

10.41 

Vested

 

(1,167)

 

 

$

62.55 

 

(102)

 

 

$

62.55 

 

(602)

 

 

$

63.37 

Forfeited

 

(74)

 

 

$

60.24 

 

 -

 

 

$

 -

 

(7)

 

 

$

81.67 

Unvested at 3/31/16

 

7,758 

 

 

$

38.79 

 

662 

 

 

$

39.57 

 

2,638 

 

(1)

$

46.52 

____________________________

(1) A maximum of 5.3 million common shares could be awarded based upon Devon’s final TSR ranking relative to Devon’s peer group established under applicable award agreements.    



 

 

 

 

 



2016



 

 

 

 

 

Grant-date fair value

$

9.24 

-

$

10.61 

Risk-free interest rate

0.94% 

Volatility factor

37.7% 

Contractual term (years)

2.83 





 

 

 

 

 

 

 

 

 



 

 

 

Performance-Based

 

 

 



 

Restricted Stock

 

Restricted Stock

 

Performance



 

Awards and Units

 

Awards

 

Share Units

Unrecognized compensation cost (millions)

 

$

180 

 

$

10 

 

$

40 

Weighted average period for recognition (years)

 

 

2.7 

 

 

2.8 

 

 

1.9 





 

 

 

 

 

 

 

 

 

 

 

 



 

General Partner

 

EnLink



 

Restricted

 

Performance

 

Restricted

 

Performance



 

Incentive Units

 

Units

 

Incentive Units

 

Units

Unrecognized compensation cost (millions)

 

$

22 

 

$

 

$

22 

 

$

Weighted average period for recognition (years)

 

 

1.9 

 

 

2.2 

 

 

1.9 

 

 

2.2 



Asset Impairments (Tables)
Schedule Of Asset Impairments



 

 

 

 

 

 

 



 

 

 

 

 

 

 



 

Three Months Ended March 31,

 

 

 

2016

 

2015

 



 

 

 

 

 

 

 



 

(Millions)

 

U.S. oil and gas assets

 

$

1,608 

 

$

5,458 

 

Canada oil and gas assets

 

 

554 

 

 

 -

 

EnLink goodwill

 

 

873 

 

 

 -

 

Other assets

 

 

 -

 

 

 

Total asset impairments

 

$

3,035 

 

$

5,460 

 



Restructuring And Transaction Costs (Tables)
Schedule Of The Activity And Balances Associated With Restructuring Liabilities



 

 

 

 

 

 

 

 

 



 

Other

 

Other

 

 

 



 

Current

 

Long-term

 

 

 



 

Liabilities

 

Liabilities

 

Total



 

 

 

 

 

 

 

 

 



  

(Millions)

Balance as of December 31, 2015

  

$

13 

 

$

63 

 

$

76 

Changes due to 2016 workforce reductions

 

 

149 

 

 

 -

 

 

149 

Changes related to prior years’ restructurings

 

 

 

 

(2)

 

 

 -

Balance as of March 31, 2016

  

$

164 

  

$

61 

  

$

225 



 

 

 

 

 

 

 

 

 

Balance as of December 31, 2014

  

$

13 

 

$

 

$

20 

Changes related to prior years’ restructurings

 

 

(1)

 

 

(1)

 

 

(2)

Balance as of March 31, 2015

 

$

12 

 

$

 

$

18 



 

 

 

 

 

 

 

 

 



Income Taxes (Tables)
Schedule Of Effective Income Tax Rate Reconciliation



 

 

 

 

 

 

 



 

 

 

 

 

 

 



 

Three Months Ended March 31,

 



 

2016

 

2015

 



 

 

 

 

 

 

 

Total income tax benefit (millions)

 

$

(217)

 

$

(2,035)

 



 

 

 

 

 

 

 

U.S. statutory income tax rate

 

 

(35%)

 

 

(35%)

 

Deferred tax asset valuation allowance

 

 

22% 

 

 

0% 

 

Non-deductible goodwill impairment

 

 

8% 

 

 

0% 

 

Taxation on Canadian operations

 

 

2% 

 

 

0% 

 

State income taxes

 

 

(1%)

 

 

(1%)

 

Other

 

 

(2%)

 

 

0% 

 

Effective income tax rate

 

 

(6%)

 

 

(36%)

 



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



 

 

 

 

 

 



  

Three Months Ended



 

March 31,



 

2016

 

2015



 

 

 

 

 

 



  

(Millions, except per share amounts)

Net loss:

 

 

 

 

 

 

Net loss attributable to Devon

 

$

(3,056)

 

$

(3,599)

Attributable to participating securities

 

 

 -

 

 

(1)

Basic and diluted loss

 

$

(3,056)

 

$

(3,600)

Common shares:

 

 

 

 

 

 

Common shares outstanding - total

 

 

479 

 

 

410 

Attributable to participating securities

 

 

(5)

 

 

(4)

Common shares outstanding - basic

 

 

474 

 

 

406 

Dilutive effect of potential common shares issuable

 

 

 -

 

 

 -

Common shares outstanding - diluted

 

 

474 

 

 

406 



 

 

 

 

 

 

Net loss per share attributable to Devon:

 

 

 

 

 

 

Basic

 

$

(6.44)

 

$

(8.88)

Diluted

 

$

(6.44)

 

$

(8.88)

Antidilutive options (1)

 

 

 

 

____________________________

(1)

Amounts represent options to purchase shares of Devon’s common stock that are excluded from the diluted net loss per share calculations because the options are antidilutive.

  

Other Comprehensive Earnings (Tables)
Components Of Other Comprehensive Earnings



 

 

 

 

 

 



 

 



 

Three Months Ended March 31,



 

2016

 

2015



 

 

 

 

 

 



 

(Millions)

Foreign currency translation:

 

 

 

 

 

 

Beginning accumulated foreign currency translation

 

$

424 

 

$

983 

Change in cumulative translation adjustment

 

 

51 

 

 

(337)

Income tax benefit (expense)

 

 

(28)

 

 

35 

Ending accumulated foreign currency translation

 

 

447 

 

 

681 

Pension and postretirement benefit plans:

 

 

 

 

 

 

Beginning accumulated pension and postretirement benefits

 

 

(194)

 

 

(204)

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

 

 

 

 

Income tax expense

 

 

(2)

 

 

(2)

Ending accumulated pension and postretirement benefits

 

 

(190)

 

 

(200)

Accumulated other comprehensive earnings, net of tax

 

$

257 

 

$

481 

__________________________

(1)  These accumulated other comprehensive earnings components are included in the computation of net periodic benefit cost, which is a component of G&A on the accompanying consolidated comprehensive statements of earnings. See Note 16 for additional details.

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



 

 

 

 

 

 



 

 

 

 

 

 



 

Three Months Ended March 31,



 

2016

 

2015



 

 

 

 

 

 



 

(Millions)

Net change in working capital accounts, net of assets and liabilities assumed:

 

 

 

 

 

 

Accounts receivable

 

$

146 

 

$

404 

Other current assets

 

 

366 

 

 

332 

Accounts payable

 

 

(121)

 

 

(15)

Revenues and royalties payable

 

 

(101)

 

 

(236)

Other current liabilities

 

 

(92)

 

 

(270)

Net change in working capital

 

$

198 

 

$

215 



 

 

 

 

 

 

Interest paid (net of capitalized interest)

 

$

115 

 

$

118 

Income taxes paid (received)

 

$

(128)

 

$

(414)



Accounts Receivable (Tables)
Schedule Of Components Of Accounts Receivable



 

 

 

 

 

 



 

 

 

 

 

 



 

March 31, 2016

 

December 31, 2015



 

 

 

 

 

 



 

(Millions)

Oil, gas and NGL sales

 

$

350 

 

$

362 

Joint interest billings

 

 

152 

 

 

211 

Marketing and midstream revenues

 

 

477 

 

 

520 

Other

 

 

62 

 

 

30 

Gross accounts receivable

 

 

1,041 

 

 

1,123 

Allowance for doubtful accounts

 

 

(18)

 

 

(18)

Net accounts receivable

 

$

1,023 

 

$

1,105 



Other Current Liabilities (Tables)
Schedule Of Other Current Liabilities



 

 

 

 

 



March 31, 2016

 

December 31, 2015



 

 

 

 

 



(Millions)



 

 

 

 

 

Installment payment - see Note 2

$

229 

 

$

 -

Accrued interest payable

 

179 

 

 

149 

Restructuring liabilities

 

164 

 

 

13 

Other

 

333 

 

 

488 

  Other current liabilities

$

905 

 

$

650 



Goodwill And Other Intangible Assets (Tables)
Schedule Of Other Intangible Assets



 

 

 

 

 

 



 

March 31, 2016

 

December 31, 2015



 

 

 

 

 

 



 

(Millions)



 

 

 

 

 

 

Customer relationships

 

$

1,779 

 

$

745 

Accumulated amortization

 

 

(82)

 

 

(55)

  Net intangibles

 

$

1,697 

 

$

690 



Debt (Tables)
Schedule Of Debt Instruments





 

 

 

 

 

 



 

March 31, 2016

 

December 31, 2015



 

 

 

 

 

 



 

(Millions)

Devon debt

 

 

 

 

 

 

Commercial paper

 

$

 -

 

$

626 

Debentures and notes

 

 

9,425 

 

 

9,425 

Net discount on debentures and notes

 

 

(28)

 

 

(28)

Debt issuance costs

 

 

(56)

 

 

(57)

Total Devon debt

 

 

9,341 

 

 

9,966 

EnLink debt

 

 

 

 

 

 

   Credit facilities

 

 

552 

 

 

414 

Debentures and notes

 

 

2,663 

 

 

2,663 

Net premium on debentures and notes

 

 

12 

 

 

13 

Debt issuance costs

 

 

(23)

 

 

(24)

Total EnLink debt

 

 

3,204 

 

 

3,066 

Total debt

 

 

12,545 

 

 

13,032 

Less amount classified as short-term debt (1)

 

 

350 

 

 

976 

Total long-term debt

 

$

12,195 

 

$

12,056 

____________________________

(1)

Short-term debt as of March 31, 2016 consists of $350 million of floating rate due on December 15, 2016. Short-term debt as of December 31, 2015 consists of $626 million of commercial paper and $350 million floating rate due on December 15, 2016.

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



 

 

 

 

 

 



 

 

 

 

 

 



 

Three Months Ended March 31,



 

2016

 

2015



 

 

 

 

 

 



 

(Millions)

Asset retirement obligations as of beginning of period

 

$

1,414 

 

$

1,399 

Liabilities incurred and assumed through acquisitions

 

 

12 

 

 

23 

Liabilities settled and divested

 

 

(17)

 

 

(25)

Revision of estimated obligation

 

 

77 

 

 

62 

Accretion expense on discounted obligation

 

 

19 

 

 

19 

Foreign currency translation adjustment

 

 

29 

 

 

(53)

Asset retirement obligations as of end of period

 

 

1,534 

 

 

1,425 

Less current portion

 

 

43 

 

 

52 

Asset retirement obligations, long-term

 

$

1,491 

 

$

1,373 



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



 

 

 

 

 

 

 



 

 

 

 

 

 

 



 

Pension Benefits

 



 

Three Months Ended

 



 

March 31,

 

 

 

2016

 

2015

 



 

 

 

 

 

 

 



 

(Millions)

 

Service cost

 

$

 

$

 

Interest cost

 

 

12 

 

 

13 

 

Expected return on plan assets

 

 

(13)

 

 

(15)

 

Amortization of prior service cost (1)

 

 

 

 

 

Net actuarial loss (1)

 

 

 

 

 

Net periodic benefit cost (2)

 

$

11 

 

$

12 

 

__________________________

(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 G&A in the accompanying consolidated 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



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

(Millions)

March 31, 2016 assets (liabilities):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash equivalents

 

$

1,121 

 

$

1,121 

 

$

1,026 

 

$

95 

 

$

 -

Commodity derivatives

 

$

54 

 

$

54 

 

$

 -

 

$

54 

 

$

 -

Commodity derivatives

 

$

(28)

 

$

(28)

 

$

 -

 

$

(28)

 

$

 -

Interest rate derivatives

 

$

 

$

 

$

 -

 

$

 

$

 -

Interest rate derivatives

 

$

(95)

 

$

(95)

 

$

 -

 

$

(95)

 

$

 -

Foreign currency derivatives

 

$

(26)

 

$

(26)

 

$

 -

 

$

(26)

 

$

 -

Debt

 

$

(12,545)

 

$

(11,217)

 

$

 -

 

$

(11,217)

 

$

 -

Capital lease obligations

 

$

(13)

 

$

(13)

 

$

 -

 

$

(13)

 

$

 -



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2015 assets (liabilities):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash equivalents

 

$

1,871 

 

$

1,871 

 

$

1,471 

 

$

400 

 

$

 -

Commodity derivatives

 

$

35 

 

$

35 

 

$

 -

 

$

35 

 

$

 -

Commodity derivatives

 

$

(18)

 

$

(18)

 

$

 -

 

$

(18)

 

$

 -

Interest rate derivatives

 

$

 

$

 

$

 -

 

$

 

$

 -

Interest rate derivatives

 

$

(22)

 

$

(22)

 

$

 -

 

$

(22)

 

$

 -

Foreign currency derivatives

 

$

 

$

 

$

 -

 

$

 

$

 -

Foreign currency derivatives

 

$

(8)

 

$

(8)

 

$

 -

 

$

(8)

 

$

 -

Debt

 

$

(13,032)

 

$

(11,927)

 

$

 -

 

$

(11,927)

 

$

 -

Capital lease obligations

 

$

(17)

 

$

(16)

 

$

 -

 

$

(16)

 

$

 -



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



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    

 

U.S.

 

Canada

 

EnLink

 

Eliminations

 

Total



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

(Millions)

Three Months Ended March 31, 2016:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues from external customers

 

$

1,302 

 

$

117 

 

$

707 

 

$

 -

 

$

2,126 

Intersegment revenues

 

$

 -

 

$

 -

 

$

183 

 

$

(183)

 

$

 -

Depreciation, depletion and amortization

 

$

311 

 

$

109 

 

$

122 

 

$

 -

 

$

542 

Interest expense

 

$

107 

 

$

34 

 

$

44 

 

$

(20)

 

$

165 

Asset impairments

 

$

1,608 

 

$

554 

 

$

873 

 

$

 -

 

$

3,035 

Restructuring and transaction costs

 

$

236 

 

$

 

$

 

$

 -

 

$

247 

Loss before income taxes

 

$

(2,065)

 

$

(749)

 

$

(871)

 

$

 -

 

$

(3,685)

Income tax benefit

 

$

(5)

 

$

(208)

 

$

(4)

 

$

 -

 

$

(217)

Net loss

 

$

(2,060)

 

$

(541)

 

$

(867)

 

$

 -

 

$

(3,468)

Net loss attributable to noncontrolling interests

 

$

 -

 

$

 -

 

$

(412)

 

$

 -

 

$

(412)

Net loss attributable to Devon

 

$

(2,060)

 

$

(541)

 

$

(455)

 

$

 -

 

$

(3,056)

Property and equipment, net

 

$

8,901 

 

$

4,246 

 

$

6,117 

 

$

 -

 

$

19,264 

Total assets

 

$

13,717 

 

$

4,933 

 

$

10,066 

 

$

(79)

 

$

28,637 

Capital expenditures, including acquisitions

 

$

1,893 

 

$

81 

 

$

545 

 

$

 -

 

$

2,519 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended March 31, 2015:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues from external customers

 

$

2,260 

 

$

221 

 

$

784 

 

$

 -

 

$

3,265 

Intersegment revenues

 

$

 -

 

$

 -

 

$

156 

 

$

(156)

 

$

 -

Depreciation, depletion and amortization

 

$

712 

 

$

127 

 

$

91 

 

$

 -

 

$

930 

Interest expense

 

$

87 

 

$

25 

 

$

19 

 

$

(12)

 

$

119 

Asset impairments

 

$

5,460 

 

$

 -

 

$

 -

 

$

 -

 

$

5,460 

Earnings (loss) before income taxes

 

$

(5,488)

 

$

(172)

 

$

36 

 

$

 -

 

$

(5,624)

Income tax expense (benefit)

 

$

(1,993)

 

$

(53)

 

$

11 

 

$

 -

 

$

(2,035)

Net earnings (loss)

 

$

(3,495)

 

$

(119)

 

$

25 

 

$

 -

 

$

(3,589)

Net earnings attributable to noncontrolling interests

 

$

 -

 

$

 -

 

$

10 

 

$

 -

 

$

10 

Net earnings (loss) attributable to Devon

 

$

(3,495)

 

$

(119)

 

$

15 

 

$

 -

 

$

(3,599)

Property and equipment, net

 

$

19,718 

 

$

6,281 

 

$

5,456 

 

$

 -

 

$

31,455 

Total assets

 

$

26,751 

 

$

7,618 

 

$

11,007 

 

$

(102)

 

$

45,274 

Capital expenditures, including acquisitions

 

$

1,344 

 

$

224 

 

$

514 

 

$

 -

 

$

2,082 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



Acquisitions And Divestitures (Narrative) (Details) (USD $)
3 Months Ended 0 Months Ended 0 Months Ended 3 Months Ended 0 Months Ended 0 Months Ended 0 Months Ended
Mar. 31, 2016
Mar. 31, 2015
Mar. 31, 2016
Installment Payment, Current [Member]
Apr. 15, 2016
Subsequent Event [Member]
Mississippian Assets [Member]
Forecast [Member]
Mar. 31, 2016
STACK [Member]
Jan. 7, 2016
STACK [Member]
Mar. 31, 2016
STACK [Member]
Jan. 7, 2016
STACK [Member]
acre
Jan. 7, 2016
STACK [Member]
Common Stock [Member]
Equity Issued in Business Combination [Member]
Mar. 31, 2015
EnLink [Member]
Equity Issued in Business Combination [Member]
Mar. 31, 2016
EnLink [Member]
Anadarko Basin [Member]
Jan. 7, 2016
EnLink [Member]
Anadarko Basin [Member]
Mar. 31, 2016
EnLink [Member]
Anadarko Basin [Member]
Jan. 7, 2016
EnLink [Member]
Anadarko Basin [Member]
Jan. 7, 2016
EnLink [Member]
Anadarko Basin [Member]
Installment Payment, Noncurrent [Member]
Jan. 7, 2016
EnLink [Member]
Anadarko Basin [Member]
Installment Payment, Noncurrent [Member]
Mar. 31, 2016
EnLink [Member]
Anadarko Basin [Member]
Installment Payment, Current [Member]
Undiscounted [Member]
Jan. 7, 2016
General Partner [Member]
Anadarko Basin [Member]
Common Stock [Member]
Equity Issued in Business Combination [Member]
Business Acquisition [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Close date of acquisition
 
 
 
 
Jan. 07, 2016 
 
 
 
 
 
Jan. 07, 2016 
 
 
 
 
 
 
 
Number of net acres acquired
 
 
 
 
 
 
 
80,000 
 
 
 
 
 
 
 
 
 
 
Aggregate purchase price
 
 
 
 
 
$ 1,500,000,000 
 
 
 
 
 
$ 1,500,000,000 
 
 
 
 
 
 
Unproved properties
 
 
 
 
 
 
1,300,000,000 
 
 
 
 
 
 
 
 
 
 
 
Proved properties
 
 
 
 
 
 
200,000,000 
 
 
 
 
 
 
 
 
 
 
 
Equity units value
 
 
 
 
 
 
 
 
659,000,000 
360,000,000 
 
 
 
 
 
 
 
215,000,000 
Cash payment to acquire interest
 
 
 
 
 
830,000,000 
 
 
 
 
 
800,000,000 
 
 
 
 
 
 
Amount committed to pay
 
 
 
 
 
 
 
 
 
 
 
 
 
500,000,000 
 
 
 
 
Deferred installment payment
 
 
 
 
 
 
 
 
 
 
 
 
250,000,000 
 
 
250,000,000 
 
 
Installment payment
 
 
229,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
250,000,000 
 
Commitment to pay cash due date
 
 
 
 
 
 
 
 
 
 
 
1 year 
 
 
24 months 
 
 
 
Intangible assets
 
 
 
 
 
 
 
 
 
 
 
 
1,000,000,000 
 
 
 
 
 
Property and equipment
 
 
 
 
 
 
 
 
 
 
 
 
420,000,000 
 
 
 
 
 
Proceeds from property and equipment divestitures
$ 18,000,000 
$ 2,000,000 
 
$ 200,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Derivative Financial Instruments (Narrative) (Details) (USD $)
In Millions, unless otherwise specified
Mar. 31, 2016
Dec. 31, 2015
Derivative [Line Items]
 
 
Other receivables
$ 62 
$ 30 
Derivative collateral held
75 
Accrued Derivative Settlements [Member]
 
 
Derivative [Line Items]
 
 
Other receivables
 
$ 236 
Derivative Financial Instruments (Schedule Of Open Oil Derivative Positions) (Details)
3 Months Ended
Mar. 31, 2016
bbl
NYMEX West Texas Intermediate Price Swaps Oil Q2 2016 [Member]
 
Derivatives, Fair Value [Line Items]
 
Volume Per Day (Bbls/d)
30,000 
Weighted Average Price Swap
39.24 
NYMEX West Texas Intermediate Price Collars Oil Q2 2016 [Member]
 
Derivatives, Fair Value [Line Items]
 
Volume Per Day (Bbls/d)
73,000 
Weighted Average Floor Price
33.85 
Weighted Average Ceiling Price
41.59 
NYMEX West Texas Intermediate Price Collars Oil Q3 2016 [Member]
 
Derivatives, Fair Value [Line Items]
 
Volume Per Day (Bbls/d)
37,000 
Weighted Average Floor Price
40.05 
Weighted Average Ceiling Price
45.05 
NYMEX West Texas Intermediate Call Options Sold Oil Q2 2016 [Member]
 
Derivatives, Fair Value [Line Items]
 
Volume Per Day (Bbls/d)
18,500 
Weighted Average Call Option Sold Price
73.18 
NYMEX West Texas Intermediate Call Options Sold Oil Q3 2016 [Member]
 
Derivatives, Fair Value [Line Items]
 
Volume Per Day (Bbls/d)
18,500 
Weighted Average Call Option Sold Price
73.18 
NYMEX West Texas Intermediate Call Options Sold Oil Q4 2016 [Member]
 
Derivatives, Fair Value [Line Items]
 
Volume Per Day (Bbls/d)
18,500 
Weighted Average Call Option Sold Price
73.18 
Western Canadian Select Basis Swaps Oil Q2-Q4 2016 [Member]
 
Derivatives, Fair Value [Line Items]
 
Volume Per Day (Bbls/d)
37,985 
Weighted Average Differential To WTI
(13.36)
West Texas Sour Basis Swaps Oil Q2-Q4 2016 [Member]
 
Derivatives, Fair Value [Line Items]
 
Volume Per Day (Bbls/d)
5,000 
Weighted Average Differential To WTI
(0.53)
Midland Sweet Basis Swaps Oil Q2-Q4 2016 [Member]
 
Derivatives, Fair Value [Line Items]
 
Volume Per Day (Bbls/d)
13,000 
Weighted Average Differential To WTI
0.25 
Derivative Financial Instruments (Schedule Of Open Natural Gas Derivative Positions) (Details)
3 Months Ended
Mar. 31, 2016
MMBTU
FERC Henry Hub Price Swaps Natural Gas Q2 2016 [Member]
 
Derivatives, Fair Value [Line Items]
 
Volume Per Day (MMBtu/d)
481,400 
Weighted Average Price Swap
2.73 
FERC Henry Hub Price Collars Natural Gas Q2 2016 [Member]
 
Derivatives, Fair Value [Line Items]
 
Volume Per Day (MMBtu/d)
4,945 
Weighted Average Floor Price
1.77 
Weighted Average Ceiling Price
2.02 
FERC Henry Hub Call Options Sold Natural Gas Q2 2016 [Member]
 
Derivatives, Fair Value [Line Items]
 
Volume Per Day (MMBtu/d)
400,000 
Weighted Average Call Option Sold Price
2.80 
FERC Henry Hub Call Options Sold Natural Gas Q3 2016 [Member]
 
Derivatives, Fair Value [Line Items]
 
Volume Per Day (MMBtu/d)
400,000 
Weighted Average Call Option Sold Price
2.80 
FERC Henry Hub Call Options Sold Natural Gas Q4 2016 [Member]
 
Derivatives, Fair Value [Line Items]
 
Volume Per Day (MMBtu/d)
400,000 
Weighted Average Call Option Sold Price
2.80 
PEPL Basis Swaps Natural Gas Q2-Q4 2016 [Member]
 
Derivatives, Fair Value [Line Items]
 
Volume Per Day (MMBtu/d)
175,000 
Weighted Average Differential To Henry Hub
(0.34)
El Paso Natural Gas Basis Swaps Q2-Q4 2016 [Member]
 
Derivatives, Fair Value [Line Items]
 
Volume Per Day (MMBtu/d)
125,000 
Weighted Average Differential To Henry Hub
(0.12)
Houston Ship Channel Natural Gas Basis Swaps Q2-Q4 2016 [Member]
 
Derivatives, Fair Value [Line Items]
 
Volume Per Day (MMBtu/d)
30,000 
Weighted Average Differential To Henry Hub
0.11 
Transco Zone 4 Natural Gas Basis Swaps Q2-Q4 2016 [Member]
 
Derivatives, Fair Value [Line Items]
 
Volume Per Day (MMBtu/d)
70,000 
Weighted Average Differential To Henry Hub
0.01 
PEPL Basis Swaps Natural Gas Q1-Q4 2017 [Member]
 
Derivatives, Fair Value [Line Items]
 
Volume Per Day (MMBtu/d)
150,000 
Weighted Average Differential To Henry Hub
(0.34)
El Paso Natural Gas Basis Swaps Q1-Q4 2017 [Member]
 
Derivatives, Fair Value [Line Items]
 
Volume Per Day (MMBtu/d)
60,000 
Weighted Average Differential To Henry Hub
(0.13)
Houston Ship Channel Natural Gas Basis Swaps Q1-Q4 2017 [Member]
 
Derivatives, Fair Value [Line Items]
 
Volume Per Day (MMBtu/d)
35,000 
Weighted Average Differential To Henry Hub
0.06 
Transco Zone 4 Natural Gas Basis Swaps Q1-Q4 2017 [Member]
 
Derivatives, Fair Value [Line Items]
 
Volume Per Day (MMBtu/d)
205,000 
Weighted Average Differential To Henry Hub
0.03 
Derivative Financial Instruments (Schedule Of Open Interest Rate Swap Derivative Positions) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2016
Interest Rate Contract 0.92% Expiration December 2016 [Member]
 
Derivative [Line Items]
 
Notional
$ 100 
Rate Received
Three Month LIBOR 
Rate Paid, percent
0.92% 
Expiration
Dec. 31, 2016 
Interest Rate Contract 1.76% Expiration January 2019 [Member]
 
Derivative [Line Items]
 
Notional
100 
Rate Received, percent
1.76% 
Rate Paid
Three Month LIBOR 
Expiration
Jan. 31, 2019 
Interest Rate Contract 2.98% Expiration December 2048 [Member]
 
Derivative [Line Items]
 
Notional
$ 750 
Rate Received
Three Month LIBOR 
Rate Paid, percent
2.98% 
Expiration
Dec. 31, 2018 
Reference period end date
Dec. 31, 2048 1
Derivative Financial Instruments (Schedule Of Open Foreign Exchange Rate Derivative Positions) (Details) (Forward Contract Expiration June 2016 [Member], CAD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2016
Forward Contract Expiration June 2016 [Member]
 
Derivative [Line Items]
 
Currency
Canadian Dollar 
CAD Notional
$ 1,676 
Weighted Average Fixed Rate Received
0.753 
Expiration
Jun. 30, 2016 
Derivative Financial Instruments (Schedule Of Derivative Financial Instruments Included In The Consolidated Comprehensive Statements Of Earnings) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2016
Mar. 31, 2015
Derivatives, Fair Value [Line Items]
 
 
Net gains (losses) recognized in consolidated comprehensive statements of earnings
$ (194)
$ 430 
Commodity Derivatives [Member] |
Oil, Gas And NGL Derivatives [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Net gains (losses) recognized in consolidated comprehensive statements of earnings
33 
294 
Commodity Derivatives [Member] |
Marketing And Midstream Revenues [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Net gains (losses) recognized in consolidated comprehensive statements of earnings
 
Interest Rate Derivatives [Member] |
Other Nonoperating Items [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Net gains (losses) recognized in consolidated comprehensive statements of earnings
(72)
Foreign Currency Derivatives [Member] |
Other Nonoperating Items [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Net gains (losses) recognized in consolidated comprehensive statements of earnings
$ (155)
$ 133 
Derivative Financial Instruments (Schedule Of Derivative Financial Instruments Included In The Consolidated Balance Sheets) (Details) (USD $)
In Millions, unless otherwise specified
Mar. 31, 2016
Dec. 31, 2015
Derivatives, Fair Value [Line Items]
 
 
Fair value of derivative assets
$ 56 
$ 45 
Fair value of derivative liabilities
149 
48 
Commodity Derivatives [Member] |
Derivatives, At Fair Value [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Fair value of derivative assets
53 
34 
Commodity Derivatives [Member] |
Other Long-Term Assets [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Fair value of derivative assets
Commodity Derivatives [Member] |
Other Current Liabilities [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Fair value of derivative liabilities
26 
14 
Commodity Derivatives [Member] |
Other Long-Term Liabilities [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Fair value of derivative liabilities
Interest Rate Derivatives [Member] |
Derivatives, At Fair Value [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Fair value of derivative assets
Interest Rate Derivatives [Member] |
Other Long-Term Assets [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Fair value of derivative assets
Interest Rate Derivatives [Member] |
Other Long-Term Liabilities [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Fair value of derivative liabilities
95 
22 
Foreign Currency Derivatives [Member] |
Derivatives, At Fair Value [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Fair value of derivative assets
 
Foreign Currency Derivatives [Member] |
Other Current Liabilities [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Fair value of derivative liabilities
$ 26 
$ 8 
Share-Based Compensation (Narrative) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2016
Mar. 31, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
Unit-based compensation
$ 45 
$ 68 
Restructuring and transaction costs
247 
 
EnLink [Member]
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
Unit-based compensation
12 
Accelerated Vesting Of Share-Based Grants For Employees [Member] |
Reduction Of Workforce [Member]
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
Restructuring and transaction costs
$ 67 
 
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
3 Months Ended
Mar. 31, 2016
Mar. 31, 2015
Share-based Compensation [Abstract]
 
 
Gross G&A for share-based compensation
$ 45 
$ 68 
Share-based compensation expense capitalized pursuant to the full cost method of accounting for oil and gas properties
12 
15 
Related income tax benefit
$ 9 
$ 14 
Share-Based Compensation (Summary Of Unvested Restricted Stock Awards and Units, Performance-Based Restricted Stock Awards And Performance Share Units) (Details) (USD $)
3 Months Ended
Mar. 31, 2016
Restricted Stock Awards And Units [Member]
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
Unvested at December 31, 2015
4,738,000 
Granted, awards and units
4,261,000 
Vested, awards and units
(1,167,000)
Forfeited, awards and units
(74,000)
Unvested at March 31, 2016
7,758,000 
Unvested weighted average grant-date fair value at December 31, 2015
$ 62.49 
Granted, weighted average grant-date fair value
$ 19.31 
Vested, weighted average grant-date fair value
$ 62.55 
Forfeited, weighted average grant-date fair value
$ 60.24 
Unvested weighted average grant-date fair value at March 31, 2016
$ 38.79 
Performance-Based Restricted Stock Awards [Member]
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
Unvested at December 31, 2015
434,000 
Granted, awards and units
330,000 
Vested, awards and units
(102,000)
Forfeited, awards and units
   
Unvested at March 31, 2016
662,000 
Unvested weighted average grant-date fair value at December 31, 2015
$ 60.48 
Granted, weighted average grant-date fair value
$ 19.22 
Vested, weighted average grant-date fair value
$ 62.55 
Forfeited, weighted average grant-date fair value
   
Unvested weighted average grant-date fair value at March 31, 2016
$ 39.57 
Performance Share Units [Member]
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
Unvested at December 31, 2015
1,859,000 
Granted, awards and units
1,388,000 
Vested, awards and units
(602,000)
Forfeited, awards and units
(7,000)
Unvested at March 31, 2016
2,638,000 1
Unvested weighted average grant-date fair value at December 31, 2015
$ 76.17 
Granted, weighted average grant-date fair value
$ 10.41 
Vested, weighted average grant-date fair value
$ 63.37 
Forfeited, weighted average grant-date fair value
$ 81.67 
Unvested weighted average grant-date fair value at March 31, 2016
$ 46.52 
Maximum [Member] |
Performance Share Units [Member]
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
Granted, weighted average grant-date fair value
$ 10.61 
Maximum common shares that could be awarded based upon total shareholder return
5,300,000 
Share-Based Compensation (Summary of Unrecognized Compensation Cost And Weighted Average Period For Recognition) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2016
Restricted Stock Awards And Units [Member]
 
Unrecognized Compensation And Weighted Average Recognition [Line Items]
 
Unrecognized compensation cost (millions)
$ 180 
Weighted average period for recognition (years)
2 years 8 months 12 days 
Performance-Based Restricted Stock Awards [Member]
 
Unrecognized Compensation And Weighted Average Recognition [Line Items]
 
Unrecognized compensation cost (millions)
10 
Weighted average period for recognition (years)
2 years 9 months 18 days 
Performance Share Units [Member]
 
Unrecognized Compensation And Weighted Average Recognition [Line Items]
 
Unrecognized compensation cost (millions)
$ 40 
Weighted average period for recognition (years)
1 year 10 months 24 days 
Asset Impairments (Schedule of Asset Impairments) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2016
Mar. 31, 2015
Impaired Long-Lived Assets Held and Used [Line Items]
 
 
Asset impairment charges
$ 3,035 
$ 5,460 
U.S. Oil And Gas Assets [Member]
 
 
Impaired Long-Lived Assets Held and Used [Line Items]
 
 
Asset impairment charges
1,608 
5,458 
Canada Oil And Gas Assets [Member]
 
 
Impaired Long-Lived Assets Held and Used [Line Items]
 
 
Asset impairment charges
554 
 
Other Assets [Member]
 
 
Impaired Long-Lived Assets Held and Used [Line Items]
 
 
Asset impairment charges
 
General Partner And EnLink [Member]
 
 
Impaired Long-Lived Assets Held and Used [Line Items]
 
 
Goodwill, impairment loss
$ 873 
 
Restructuring and Transaction Costs (Narrative) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2016
Restructuring Cost and Reserve [Line Items]
 
Restructuring and transaction costs
$ 247 
Employee Related Costs [Member] |
Reduction Of Workforce [Member]
 
Restructuring Cost and Reserve [Line Items]
 
Restructuring and transaction costs
234 
Accelerated Vesting Of Share-Based Grants For Employees [Member] |
Reduction Of Workforce [Member]
 
Restructuring Cost and Reserve [Line Items]
 
Restructuring and transaction costs
67 
Transaction Costs For Acquisition Closings [Member]
 
Restructuring Cost and Reserve [Line Items]
 
Restructuring and transaction costs
13 
Estimated Defined Benefit Settlements [Member] |
Reduction Of Workforce [Member]
 
Restructuring Cost and Reserve [Line Items]
 
Restructuring and transaction costs
$ 30 
Restructuring And Transaction Costs (Schedule Of The Activity And Balances Associated With Restructuring Liabilities) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2016
Dec. 31, 2015
Mar. 31, 2015
Dec. 31, 2014
Mar. 31, 2016
Other Current Liabilities [Member]
Dec. 31, 2015
Other Current Liabilities [Member]
Mar. 31, 2015
Other Current Liabilities [Member]
Dec. 31, 2014
Other Current Liabilities [Member]
Mar. 31, 2016
Other Long-Term Liabilities [Member]
Dec. 31, 2015
Other Long-Term Liabilities [Member]
Mar. 31, 2015
Other Long-Term Liabilities [Member]
Dec. 31, 2014
Other Long-Term Liabilities [Member]
Mar. 31, 2016
Reduction Of Workforce [Member]
Mar. 31, 2016
Reduction Of Workforce [Member]
Other Current Liabilities [Member]
Mar. 31, 2016
Reduction Of Workforce [Member]
Other Long-Term Liabilities [Member]
Mar. 31, 2016
Prior Years' Restructurings [Member]
Mar. 31, 2015
Prior Years' Restructurings [Member]
Mar. 31, 2016
Prior Years' Restructurings [Member]
Other Current Liabilities [Member]
Mar. 31, 2015
Prior Years' Restructurings [Member]
Other Current Liabilities [Member]
Mar. 31, 2016
Prior Years' Restructurings [Member]
Other Long-Term Liabilities [Member]
Mar. 31, 2015
Prior Years' Restructurings [Member]
Other Long-Term Liabilities [Member]
Restructuring Cost and Reserve [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Beginning balance
$ 225 
$ 76 
$ 18 
$ 20 
$ 164 
$ 13 
$ 12 
$ 13 
$ 61 
$ 63 
$ 6 
$ 7 
 
 
 
 
 
 
 
 
 
Restructuring reserve activity
 
 
 
 
 
 
 
 
 
 
 
 
149 
149 
   
   
(2)
(1)
(2)
(1)
Ending balance
$ 225 
$ 76 
$ 18 
$ 20 
$ 164 
$ 13 
$ 12 
$ 13 
$ 61 
$ 63 
$ 6 
$ 7 
 
 
 
 
 
 
 
 
 
Income Taxes (Narrative) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended 3 Months Ended
Dec. 31, 2015
Mar. 31, 2016
Mar. 31, 2016
General Partner And EnLink [Member]
Income Tax [Line Items]
 
 
 
Goodwill impairments
 
 
$ 873 
Deferred tax assets, valuation allowance
$ 967 
$ 808 
 
Valuation allowance against U.S. deferred tax assets, percent
100.00% 
 
 
Income Taxes (Schedule Of Effective Income Tax Rate Reconciliation) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2016
Mar. 31, 2015
Income Taxes [Abstract]
 
 
Total income tax benefit
$ (217)
$ (2,035)
U.S. statutory income tax rate
(35.00%)
(35.00%)
Deferred tax asset valuation allowance
22.00% 
0.00% 
Non-deductible goodwill impairment
8.00% 
0.00% 
Taxation on Canadian operations
2.00% 
0.00% 
State income taxes
(1.00%)
(1.00%)
Other
(2.00%)
0.00% 
Effective income tax rate
(6.00%)
(36.00%)
Net Loss Per Share Attributable To Devon (Earnings Per Share Computations) (Details) (USD $)
In Millions, except Per Share data, unless otherwise specified
3 Months Ended
Mar. 31, 2016
Mar. 31, 2015
Net loss:
 
 
Net loss attributable to Devon
$ (3,056)
$ (3,599)
Attributable to participating securities
 
(1)
Basic and diluted loss
$ (3,056)
$ (3,600)
Common shares:
 
 
Common shares outstanding - total
479 
410 
Attributable to participating securities
(5)
(4)
Common shares outstanding - basic
474 
406 
Common shares outstanding - diluted
474 
406 
Net loss per share attributable to Devon:
 
 
Basic
$ (6.44)
$ (8.88)
Diluted
$ (6.44)
$ (8.88)
Antidilutive options
1
1
Other Comprehensive Earnings (Components Of Other Comprehensive Earnings) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2016
Mar. 31, 2015
Dec. 31, 2015
Foreign currency translation:
 
 
 
Beginning accumulated foreign currency translation
$ 424 
$ 983 
 
Change in cumulative translation adjustment
51 
(337)
 
Income tax benefit (expense)
(28)
35 
 
Ending accumulated foreign currency translation
447 
681 
 
Pension and postretirement benefit plans:
 
 
 
Beginning accumulated pension and postretirement benefits
(194)
(204)
 
Recognition of net actuarial loss and prior service cost in earnings
1
1
 
Income tax expense
(2)
(2)
 
Ending accumulated pension and postretirement benefits
(190)
(200)
 
Accumulated other comprehensive earnings, net of tax
$ 257 
$ 481 
$ 230 
Supplemental Information To Statements Of Cash Flows (Narrative) (Details) (Equity Issued in Business Combination [Member], USD $)
In Millions, unless otherwise specified
3 Months Ended 0 Months Ended
Mar. 31, 2015
EnLink [Member]
Jan. 7, 2016
STACK [Member]
Common Stock [Member]
Supplemental Cash Flow [Line Items]
 
 
Noncash common stock issuance in acquisition, value
$ 360 
$ 659 
Supplemental Information To Statements Of Cash Flows (Schedule Of Supplemental Information To Statements Of Cash Flows) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2016
Mar. 31, 2015
Net change in working capital accounts, net of assets and liabilities assumed:
 
 
Accounts receivable
$ 146 
$ 404 
Other current assets
366 
332 
Accounts payable
(121)
(15)
Revenues and royalties payable
(101)
(236)
Other current liabilities
(92)
(270)
Net change in working capital
198 
215 
Interest paid (net of capitalized interest)
115 
118 
Income taxes paid (received)
$ (128)
$ (414)
Accounts Receivable (Schedule Of Components Of Accounts Receivable) (Details) (USD $)
In Millions, unless otherwise specified
Mar. 31, 2016
Dec. 31, 2015
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Joint interest billings
$ 152 
$ 211 
Other
62 
30 
Gross accounts receivable
1,041 
1,123 
Allowance for doubtful accounts
(18)
(18)
Net accounts receivable
1,023 
1,105 
Oil, Gas And NGL Sales [Member]
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Gross accounts receivable
350 
362 
Marketing And Midstream Revenues [Member]
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Gross accounts receivable
$ 477 
$ 520 
Other Current Liabilities (Schedule Of Other Current Liabilities) (Details) (USD $)
In Millions, unless otherwise specified
Mar. 31, 2016
Dec. 31, 2015
Other Current Liabilities [Line Items]
 
 
Accrued interest payable
$ 179 
$ 149 
Restructuring liabilities
164 
13 
Other
333 
488 
Other current liabilities
905 
650 
Installment Payment, Current [Member]
 
 
Other Current Liabilities [Line Items]
 
 
Installment payment - See Note 2
$ 229 
 
Goodwill And Other Intangible Assets (Narrative) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2016
Mar. 31, 2015
Goodwill [Line Items]
 
 
Weighted average amortization period
14 years 
 
Amortization expense of intangible assets
$ 28 
$ 12 
Amortization Expense, Next Five Years
115 
 
General Partner And EnLink [Member]
 
 
Goodwill [Line Items]
 
 
Goodwill impairments
873 
 
Crude And Condensate [Member] |
General Partner And EnLink [Member]
 
 
Goodwill [Line Items]
 
 
Goodwill impairments
93 
 
Texas [Member] |
General Partner And EnLink [Member]
 
 
Goodwill [Line Items]
 
 
Goodwill impairments
473 
 
General Partner [Member] |
General Partner And EnLink [Member]
 
 
Goodwill [Line Items]
 
 
Goodwill impairments
$ 307 
 
Goodwill And Other Intangible Assets (Schedule Of Other Intangible Assets) (Details) (USD $)
In Millions, unless otherwise specified
Mar. 31, 2016
Dec. 31, 2015
Goodwill And Other Intangible Assets [Abstract]
 
 
Customer relationships
$ 1,779 
$ 745 
Accumulated amortization
(82)
(55)
Net intangibles
$ 1,697 
$ 690 
Debt (Narrative) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2016
Dec. 31, 2015
Debt Instrument [Line Items]
 
 
Debt issuance costs
$ 56 
$ 57 
Repayment of commercial paper
626 
 
Commercial paper
626 
Senior Credit Facility [Member]
 
 
Debt Instrument [Line Items]
 
 
Credit Facility, borrowing capacity
3,000 
 
Outstanding credit facility borrowings
 
Debt-to-capitalization ratio
0.226 
 
Letters of Credit [Member]
 
 
Debt Instrument [Line Items]
 
 
Outstanding credit facility borrowings
43 
 
EnLink [Member]
 
 
Debt Instrument [Line Items]
 
 
Debt issuance costs
23 
24 
Outstanding credit facility borrowings
552 
414 
EnLink [Member] |
Unsecured Revolving Credit Facility [Member]
 
 
Debt Instrument [Line Items]
 
 
Credit Facility, borrowing capacity
1,500 
 
Outstanding credit facility borrowings
543 
 
Line of credit average interest rate during period
2.23% 
 
EnLink [Member] |
Unsecured Letter Of Credit Subfacility [Member]
 
 
Debt Instrument [Line Items]
 
 
Outstanding credit facility borrowings
11 
 
General Partner [Member] |
Revolving Credit Facility [Member]
 
 
Debt Instrument [Line Items]
 
 
Credit Facility, borrowing capacity
250 
 
Outstanding credit facility borrowings
 
Line of credit average interest rate during period
4.25% 
 
Maximum [Member] |
Senior Credit Facility [Member]
 
 
Debt Instrument [Line Items]
 
 
Debt-to-capitalization ratio
0.65 
 
Accounting Standards Update 2015-03 [Member]
 
 
Debt Instrument [Line Items]
 
 
Debt issuance costs
 
$ 81 
Debt (Schedule Of Debt Instruments) (Details) (USD $)
In Millions, unless otherwise specified
Mar. 31, 2016
Dec. 31, 2015
Debt Instrument [Line Items]
 
 
Commercial paper
$ 0 
$ 626 
Debentures and notes
9,425 
9,425 
Net (discount) premium on debentures and notes
(28)
(28)
Debt issuance costs
(56)
(57)
Total debt
12,545 
13,032 
Less amount classified as short-term debt
350 1
976 1
Total long-term debt
12,195 
12,056 
Floating Rate Due December 15, 2016 [Member]
 
 
Debt Instrument [Line Items]
 
 
Short-term debt
350 
350 
Devon [Member]
 
 
Debt Instrument [Line Items]
 
 
Total debt
9,341 
9,966 
EnLink [Member]
 
 
Debt Instrument [Line Items]
 
 
Credit facilities
552 
414 
Debentures and notes
2,663 
2,663 
Net (discount) premium on debentures and notes
12 
13 
Debt issuance costs
(23)
(24)
Total debt
$ 3,204 
$ 3,066 
Asset Retirement Obligations (Summary Of Changes In Asset Retirement Obligations) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2016
Mar. 31, 2015
Dec. 31, 2015
Asset Retirement Obligations [Abstract]
 
 
 
Asset retirement obligations as of beginning of period
$ 1,414 
$ 1,399 
 
Liabilities incurred and assumed through acquisitions
12 
23 
 
Liabilities settled and divested
(17)
(25)
 
Revision of estimated obligation
77 
62 
 
Accretion expense on discounted obligation
19 
19 
 
Foreign currency translation adjustment
29 
(53)
 
Asset retirement obligations as of end of period
1,534 
1,425 
 
Less current portion
43 
52 
 
Asset retirement obligations, long-term
$ 1,491 
$ 1,373 
$ 1,370 
Retirement Plans (Schedule Of Net Periodic Benefit Cost For Pension And Postretirement Benefit Plans) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2016
Mar. 31, 2015
Pension Benefits [Member]
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Service cost
$ 6 
$ 8 
Interest cost
12 
13 
Expected return on plan assets
(13)
(15)
Amortization of prior service cost
1
1
Net actuarial loss
1
1
Net periodic benefit cost
11 2
12 2
Postretirement Benefits [Member]
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Net periodic benefit cost
$ 0 
$ 0 
Stockholders' Equity (Narrative) (Details) (USD $)
In Millions, except Per Share data, unless otherwise specified
3 Months Ended 3 Months Ended 1 Months Ended 1 Months Ended
Mar. 31, 2016
Mar. 31, 2015
Dec. 31, 2015
Jun. 30, 2016
Forecast [Member]
Feb. 29, 2016
Common Stock Offering [Member]
Feb. 29, 2016
Common Stock Offering [Member]
Underwriters [Member]
Jan. 31, 2016
Equity Issued in Business Combination [Member]
Common Stock [Member]
STACK [Member]
Stockholders Equity [Line Items]
 
 
 
 
 
 
 
Units issued for acquisition
 
 
 
 
 
 
23 
Common stock, shares issued
524.0 
 
418.0 
 
79.0 
10.0 
 
Net proceeds from offering
$ 1,469 
 
 
 
$ 1,500 
 
 
Payments of ordinary dividends
$ 125 
$ 99 
 
 
 
 
 
Dividends paid per share
$ 0.24 
 
 
$ 0.06 
 
 
 
Noncontrolling Interests (Narrative) (Details) (USD $)
In Millions, unless otherwise specified
1 Months Ended 3 Months Ended 3 Months Ended
Mar. 31, 2015
Mar. 31, 2016
Mar. 31, 2015
Mar. 31, 2016
General Partner [Member]
Dec. 31, 2015
General Partner [Member]
Mar. 31, 2016
General Partner And EnLink [Member]
Mar. 31, 2015
General Partner And EnLink [Member]
Mar. 31, 2016
EnLink [Member]
Dec. 31, 2015
EnLink [Member]
Noncontrolling Interest [Line Items]
 
 
 
 
 
 
 
 
 
Number of units sold to public for interests in EnLink
23 
 
 
 
 
 
 
 
 
Sale of investment in EnLink
$ 569 
    
$ 569 
 
 
 
 
 
 
Ownership interest by Devon
 
 
 
64.00% 
70.00% 
 
 
25.00% 
28.00% 
Distributions to unitholders other than Devon
 
$ 73 
$ 53 
 
 
$ 73 
$ 53 
 
 
Fair Value Measurements (Schedule Of Carrying Value And Fair Value Measurement Information For Financial Assets And Liabilities) (Details) (USD $)
In Millions, unless otherwise specified
Mar. 31, 2016
Dec. 31, 2015
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Derivatives, assets
$ 56 
$ 45 
Derivatives, liabilities
(149)
(48)
Carrying Amount [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Cash equivalents
1,121 
1,871 
Debt
(12,545)
(13,032)
Capital lease obligations
(13)
(17)
Total Fair Value [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Cash equivalents
1,121 
1,871 
Debt
(11,217)
(11,927)
Capital lease obligations
(13)
(16)
Level 1 Inputs [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Cash equivalents
1,026 
1,471 
Level 2 Inputs [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Cash equivalents
95 
400 
Debt
(11,217)
(11,927)
Capital lease obligations
(13)
(16)
Commodity Derivatives [Member] |
Carrying Amount [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Derivatives, assets
54 
35 
Derivatives, liabilities
(28)
(18)
Commodity Derivatives [Member] |
Total Fair Value [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Derivatives, assets
54 
35 
Derivatives, liabilities
(28)
(18)
Commodity Derivatives [Member] |
Level 2 Inputs [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Derivatives, assets
54 
35 
Derivatives, liabilities
(28)
(18)
Interest Rate Derivatives [Member] |
Carrying Amount [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Derivatives, assets
Derivatives, liabilities
(95)
(22)
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
(95)
(22)
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
(95)
(22)
Foreign Currency Derivatives [Member] |
Carrying Amount [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Derivatives, assets
 
Derivatives, liabilities
(26)
(8)
Foreign Currency Derivatives [Member] |
Total Fair Value [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Derivatives, assets
 
Derivatives, liabilities
(26)
(8)
Foreign Currency Derivatives [Member] |
Level 2 Inputs [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Derivatives, assets
 
Derivatives, liabilities
$ (26)
$ (8)
Segment information (Condensed Statements Of Comprehensive Earnings And Balance Sheets Of Reportable Segments) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2016
Mar. 31, 2015
Dec. 31, 2015
Segment Reporting Information [Line Items]
 
 
 
Revenues from external customers
$ 2,126 
$ 3,265 
 
Depreciation, depletion and amortization
542 
930 
 
Interest expense
165 
119 
 
Asset impairments
3,035 
5,460 
 
Restructuring and transaction costs
247 
 
 
Earnings (loss) before income taxes
(3,685)
(5,624)
 
Income tax expense (benefit)
(217)
(2,035)
 
Net earnings (loss)
(3,468)
(3,589)
 
Net earnings (loss) attributable to noncontrolling interests
(412)
10 
 
Net earnings (loss) attributable to Devon
(3,056)
(3,599)
 
Property and equipment, net
19,264 
31,455 
19,068 
Total assets
28,637 
45,274 
29,451 
Capital expenditures, including acquisitions
2,519 
2,082 
 
Eliminations [Member]
 
 
 
Segment Reporting Information [Line Items]
 
 
 
Interest expense
(20)
(12)
 
Total assets
(79)
(102)
 
Eliminations [Member] |
Intersegment [Member]
 
 
 
Segment Reporting Information [Line Items]
 
 
 
Revenues from external customers
(183)
(156)
 
United States [Member]
 
 
 
Segment Reporting Information [Line Items]
 
 
 
Number of reportable segments
 
 
United States [Member] |
Operating Segments [Member]
 
 
 
Segment Reporting Information [Line Items]
 
 
 
Revenues from external customers
1,302 
2,260 
 
Depreciation, depletion and amortization
311 
712 
 
Interest expense
107 
87 
 
Asset impairments
1,608 
5,460 
 
Restructuring and transaction costs
236 
 
 
Earnings (loss) before income taxes
(2,065)
(5,488)
 
Income tax expense (benefit)
(5)
(1,993)
 
Net earnings (loss)
(2,060)
(3,495)
 
Net earnings (loss) attributable to Devon
(2,060)
(3,495)
 
Property and equipment, net
8,901 
19,718 
 
Total assets
13,717 
26,751 
 
Capital expenditures, including acquisitions
1,893 
1,344 
 
Canada [Member] |
Operating Segments [Member]
 
 
 
Segment Reporting Information [Line Items]
 
 
 
Revenues from external customers
117 
221 
 
Depreciation, depletion and amortization
109 
127 
 
Interest expense
34 
25 
 
Asset impairments
554 
 
 
Restructuring and transaction costs
 
 
Earnings (loss) before income taxes
(749)
(172)
 
Income tax expense (benefit)
(208)
(53)
 
Net earnings (loss)
(541)
(119)
 
Net earnings (loss) attributable to Devon
(541)
(119)
 
Property and equipment, net
4,246 
6,281 
 
Total assets
4,933 
7,618 
 
Capital expenditures, including acquisitions
81 
224 
 
General Partner And EnLink [Member] |
Operating Segments [Member]
 
 
 
Segment Reporting Information [Line Items]
 
 
 
Revenues from external customers
707 
784 
 
Depreciation, depletion and amortization
122 
91 
 
Interest expense
44 
19 
 
Asset impairments
873 
 
 
Restructuring and transaction costs
 
 
Earnings (loss) before income taxes
(871)
36 
 
Income tax expense (benefit)
(4)
11 
 
Net earnings (loss)
(867)
25 
 
Net earnings (loss) attributable to noncontrolling interests
(412)
10 
 
Net earnings (loss) attributable to Devon
(455)
15 
 
Property and equipment, net
6,117 
5,456 
 
Total assets
10,066 
11,007 
 
Capital expenditures, including acquisitions
545 
514 
 
General Partner And EnLink [Member] |
Operating Segments [Member] |
Intersegment [Member]
 
 
 
Segment Reporting Information [Line Items]
 
 
 
Revenues from external customers
$ 183 
$ 156