DEVON ENERGY CORP/DE, 10-Q filed on 8/1/2012
Quarterly Report
Document And Entity Information
In Millions, unless otherwise specified
6 Months Ended
Jun. 30, 2012
Jul. 18, 2012
Document And Entity Information [Abstract]
 
 
Document Type
10-Q 
 
Document Period End Date
Jun. 30, 2012 
 
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
2012 
 
Entity Filer Category
Large Accelerated Filer 
 
Document Fiscal Period Focus
Q2 
 
Entity Common Stock, Shares Outstanding
 
404.5 
Consolidated Comprehensive Statements Of Earnings (USD $)
In Millions, except Per Share data, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2012
Jun. 30, 2011
Jun. 30, 2012
Jun. 30, 2011
Revenues:
 
 
 
 
Oil, gas and NGL sales
$ 1,617 
$ 2,200 
$ 3,532 
$ 4,060 
Oil, gas and NGL derivatives
665 
416 
810 
248 
Marketing and midstream revenues
277 
604 
714 
1,059 
Total revenue
2,559 
3,220 
5,056 
5,367 
Expenses and other, net:
 
 
 
 
Lease operating expenses
513 
453 
1,027 
877 
Marketing and midstream operating costs and expenses
209 
456 
534 
789 
Depreciation, depletion and amortization
684 
550 
1,364 
1,056 
General and administrative expenses
176 
135 
344 
265 
Taxes other than income taxes
100 
120 
202 
228 
Interest expense
99 
85 
186 
166 
Restructuring costs
 
 
Other, net
44 
37 
54 
27 
Total expenses and other, net
1,825 
1,842 
3,711 
3,409 
Earnings from continuing operations before income taxes
734 
1,378 
1,345 
1,958 
Current income tax expense (benefit)
31 
36 
49 
(53)
Deferred income tax expense
226 
1,158 
405 
1,438 
Earnings from continuing operations
477 
184 
891 
573 
Earnings (loss) from discontinued operations, net of tax
 
2,559 
(21)
2,586 
Net earnings
477 
2,743 
870 
3,159 
Basic net earnings per share:
 
 
 
 
Basic earnings from continuing operations per share
$ 1.18 
$ 0.44 
$ 2.20 
$ 1.35 
Basic earnings (loss) from discontinued operations per share
 
$ 6.06 
$ (0.05)
$ 6.09 
Basic net earnings per share
$ 1.18 
$ 6.50 
$ 2.15 
$ 7.44 
Diluted net earnings per share:
 
 
 
 
Diluted earnings from continuing operations per share
$ 1.18 
$ 0.43 
$ 2.20 
$ 1.34 
Diluted earnings (loss) from discontinued operations per share
 
$ 6.05 
$ (0.05)
$ 6.07 
Diluted net earnings per share
$ 1.18 
$ 6.48 
$ 2.15 
$ 7.41 
Comprehensive earnings:
 
 
 
 
Net earnings
477 
2,743 
870 
3,159 
Other comprehensive earnings, net of tax:
 
 
 
 
Foreign currency translation
(171)
65 
(19)
250 
Pension and postretirement plans
11 
Other comprehensive earnings, net of tax
(166)
70 
(10)
261 
Comprehensive earnings
$ 311 
$ 2,813 
$ 860 
$ 3,420 
Consolidated Statements Of Cash Flows (USD $)
In Millions, unless otherwise specified
6 Months Ended
Jun. 30, 2012
Jun. 30, 2011
Cash flows from operating activities:
 
 
Net earnings
$ 870 
$ 3,159 
Loss (earnings) from discontinued operations, net of tax
21 
(2,586)
Adjustments to reconcile earnings from continuing operations to net cash from operating activities:
 
 
Depreciation, depletion and amortization
1,364 
1,056 
Deferred income tax expense
405 
1,438 
Unrealized change in fair value of financial instruments
(362)
(74)
Other noncash charges
114 
82 
Net decrease (increase) in working capital
22 
(89)
Decrease in long-term other assets
45 
Decrease in long-term other liabilities
(11)
(201)
Cash from operating activities - continuing operations
2,426 
2,830 
Cash from operating activities - discontinued operations
26 
(20)
Net cash from operating activities
2,452 
2,810 
Cash flows from investing activities:
 
 
Capital expenditures
(4,267)
(3,720)
Purchases of short-term investments
(1,471)
(4,520)
Redemptions of short-term investments
2,030 
1,298 
Proceeds from property and equipment divestitures
864 
Other
14 
(32)
Cash from investing activities - continuing operations
(2,830)
(6,969)
Cash from investing activities - discontinued operations
58 
3,170 
Net cash from investing activities
(2,772)
(3,799)
Cash flows from financing activities:
 
 
Proceeds from borrowings of long-term debt, net of issuance costs
2,465 
 
Net short-term (repayments) borrowings
(1,498)
2,340 
Credit facility borrowings
750 
 
Credit facility repayments
(750)
 
Proceeds from stock option exercises
22 
96 
Repurchases of common stock
 
(1,290)
Dividends paid on common stock
(162)
(140)
Excess tax benefits related to share-based compensation
12 
Net cash from financing activities
828 
1,018 
Effect of exchange rate changes on cash
38 
32 
Net increase in cash and cash equivalents
546 
61 
Cash and cash equivalents at beginning of period
5,555 
3,290 
Cash and cash equivalents at end of period
$ 6,101 
$ 3,351 
Consolidated Balance Sheets (USD $)
In Millions, unless otherwise specified
Jun. 30, 2012
Dec. 31, 2011
Current assets:
 
 
Cash and cash equivalents
$ 6,101 
$ 5,555 
Short-term investments
944 
1,503 
Accounts receivable
1,005 
1,379 
Other current assets
1,167 
868 
Total current assets
9,217 
9,305 
Oil and gas, based on full cost accounting:
 
 
Subject to amortization
64,965 
61,696 
Not subject to amortization
4,062 
3,982 
Total oil and gas
69,027 
65,678 
Other
5,545 
5,098 
Total property and equipment, at cost
74,572 
70,776 
Less accumulated depreciation, depletion and amortization
(47,331)
(46,002)
Property and equipment, net
27,241 1
24,774 
Goodwill
6,007 
6,013 
Other long-term assets
1,005 
1,025 
Total assets
43,470 
41,117 
Current liabilities:
 
 
Accounts payable
1,510 
1,471 
Revenues and royalties payable
591 
678 
Short-term debt
2,148 
3,811 
Other current liabilities
712 
778 
Total current liabilities
4,961 
6,738 
Long-term debt
8,455 
5,969 
Asset retirement obligations
1,942 
1,496 
Other long-term liabilities
799 
721 
Deferred income taxes
5,088 
4,763 
Stockholders' equity:
 
 
Common stock, $0.10 par value. Authorized 1.0 billion shares; issued 404.5 million and 404.1 million shares in 2012 and 2011, respectively
40 
40 
Additional paid-in capital
3,604 
3,507 
Retained earnings
17,016 
16,308 
Accumulated other comprehensive earnings
1,565 
1,575 
Total stockholders' equity
22,225 
21,430 
Commitments and contingencies (Note 17)
   
   
Total liabilities and stockholders' equity
$ 43,470 
$ 41,117 
Consolidated Balance Sheets (Parenthetical) (USD $)
Jun. 30, 2012
Dec. 31, 2011
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)
404,500,000 
404,100,000 
Consolidated Statements Of Stockholders' Equity (USD $)
In Millions
Common Stock [Member]
Additional Paid-In Capital [Member]
Retained Earnings [Member]
Accumulated Other Comprehensive Earnings [Member]
Treasury Stock [Member]
Total
Balance, at Dec. 31, 2010
$ 43 
$ 5,601 
$ 11,882 
$ 1,760 
$ (33)
$ 19,253 
Balance, shares, at Dec. 31, 2010
432 
 
 
 
 
 
Net earnings
 
 
3,159 
 
 
3,159 
Other comprehensive earnings, net of tax
 
 
 
261 
 
261 
Stock option exercises
 
96 
 
 
 
96 
Stock option exercises, shares
 
 
 
 
 
Common stock repurchased
 
 
 
 
(1,285)
(1,285)
Common stock retired
(1)
(1,292)
 
 
1,293 
 
Common stock retired, shares
(16)
 
 
 
 
 
Common stock dividends
 
 
(140)
 
 
(140)
Share-based compensation
 
72 
 
 
 
72 
Share-based compensation tax benefits
 
12 
 
 
 
12 
Balance, at Jun. 30, 2011
42 
4,489 
14,901 
2,021 
(25)
21,428 
Balance, shares, at Jun. 30, 2011
418 
 
 
 
 
 
Balance, at Dec. 31, 2011
40 
3,507 
16,308 
1,575 
 
21,430 
Balance, shares, at Dec. 31, 2011
404 
 
 
 
 
 
Net earnings
 
 
870 
 
 
870 
Other comprehensive earnings, net of tax
 
 
 
(10)
 
(10)
Stock option exercises
 
22 
 
 
 
22 
Stock option exercises, shares
 
 
 
 
 
Common stock repurchased
 
 
 
 
(1)
(1)
Common stock retired
 
(1)
 
 
 
Common stock dividends
 
 
(162)
 
 
(162)
Share-based compensation
 
75 
 
 
 
75 
Share-based compensation tax benefits
 
 
 
 
Balance, at Jun. 30, 2012
$ 40 
$ 3,604 
$ 17,016 
$ 1,565 
 
$ 22,225 
Balance, shares, at Jun. 30, 2012
405 
 
 
 
 
 
Summary Of Significant Accounting Policies
Summary Of Significant Accounting Policies

1.   Summary of Significant Accounting Policies 

 

The accompanying unaudited financial statements and notes of Devon Energy Corporation (“Devon”) have been prepared pursuant to the rules and regulations of the United States Securities and Exchange Commission. Pursuant to such rules and regulations, certain disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been omitted. The accompanying financial statements and notes should be read in conjunction with the accompanying financial statements and notes included in Devon's 2011 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 to a fair statement of Devon's financial position as of June 30, 2012 and Devon's results of operations and cash flows for the three-month and six-month periods ended June 30, 2012 and 2011.

 

Accounts Payable

 

Included in accounts payable at June 30, 2012, are liabilities of $99 million representing the amount by which checks issued, but not presented to Devon’s banks for collection, exceed balances in applicable bank accounts. Changes in these liabilities are reflected in cash flows from financing activities.

Derivative Financial Instruments
Derivative Financial Instruments

2.   Derivative Financial Instruments

 

Objectives and Strategies

 

Devon periodically enters into derivative financial instruments with respect to a portion of its oil, gas and NGL production. These instruments are used to manage the inherent uncertainty of future revenues due to commodity price volatility and typically include financial price swaps, basis swaps, costless price collars and call options.

 

Devon periodically enters into interest rate swaps to manage its exposure to interest rate volatility. Devon periodically enters into foreign exchange forward contracts to manage its exposure to fluctuations in exchange rates.

 

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

 

Counterparty Credit Risk

 

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

 

As of June 30, 2012, Devon holds $107 million cash collateral. Such amount represented the estimated fair value of certain derivative positions in excess of Devon’s credit guidelines. The collateral is reported in other current liabilities in the accompanying balance sheet.

 

Commodity Derivatives

 

As of June 30, 2012, Devon had the following open oil derivative positions. Devon’s oil derivatives settle against the average of the prompt month NYMEX West Texas Intermediate futures price.

 

 

 

 

 

 

 

 

 

 

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)

Q3-Q4 2012.

54,000

$105.90

74,000

$89.71

$123.09

19,500

$95.00

Q1-Q4 2013.

31,000

$104.13

45,000

$91.30

$116.23

6,000

$120.00

Q1-Q4 2014.

4,000

$100.49

2,000

$90.00

$111.13

6,000

$120.00

 

As of June 30, 2012, Devon had the following open natural gas derivative positions. Devon’s natural gas derivatives settle against the Inside FERC first of the month Henry Hub index.

 

 

 

 

 

 

 

 

 

 

 

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)

Q3-Q4 2012.

573,370

$4.04

991,685

$3.71

$4.40

487,500

$6.00

Q1-Q4 2013.

150,000

$4.50

Q1-Q4 2014.

150,000

$5.00

 

Interest Rate Derivatives

 

As of June 30, 2012, Devon had the following open interest rate derivative positions:

 

 

 

 

 

 

Notional

Fixed Rate

Received

Variable

Rate Paid

 

Expiration

(In millions)

 

 

 

$           100

1.90%

Federal funds rate

August 2012

3.88%

Federal funds rate

July 2013

3.65%

 

 

 

Foreign Exchange Derivatives

 

As of June 30, 2012, Devon had the following open foreign exchange rate derivative position:

 

 

 

 

 

 

Forward Contract

 

Currency

Contract Type

CAD

Notional

Fixed Rate

Received

 

Expiration

 

 

(In millions)

(CAD-USD)

 

Canadian Dollar

Sell

$           755

0.9708

September 2012

 

Financial Statement Presentation

 

The following table presents the cash settlements and unrealized gains and losses on fair value changes included in the accompanying comprehensive statements of earnings associated with derivative financial instruments. Cash settlements and unrealized gains and losses on fair value changes associated with Devon’s commodity derivatives are presented in the “Oil, gas and NGL derivatives” caption in the accompanying comprehensive statements of earnings. Cash settlements and unrealized gains and losses on fair value changes associated with Devon’s interest rate and foreign currency derivatives are presented in the “Other, net” caption in the accompanying comprehensive statements of earnings.

 

 

 

 

 

 

 

Three Months

Ended June 30,

Six Months

Ended June 30,

 

2012

2011

2012

2011

 

(In millions)

Cash settlements:

 

 

 

 

Commodity derivatives.............................................................................

$      267

$         59

$      425

$      145

Interest rate derivatives.............................................................................

          (11)

             5

            (1)

           21

Foreign currency derivatives.....................................................................

           20

         

             9

         

Total cash settlements.............................................................................

         276

           64

         433

         166

Unrealized gains (losses):

 

 

 

 

Commodity derivatives.............................................................................

         398

         357

         385

         103

Interest rate derivatives.............................................................................

            (5)

          (30)

          (15)

          (29)

Foreign currency derivatives.....................................................................

            (9)

          

            (8)

          

Total unrealized gains.............................................................................

         384

         327

         362

           74

Net gain recognized on comprehensive statements of earnings...........

$      660

$      391

$      795

$      240

 

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

 

 

 

 

 

 

Balance Sheet Caption

June 30, 2012

December 31, 2011

 

 

(In millions)

Asset derivatives:

 

 

 

Commodity derivatives...........

Other current assets..................................

$                    759

$                    611

Commodity derivatives...........

Other long-term assets.............................

                       209

                         17

Interest rate derivatives............ .........................................................

Other current assets..................................

                         28

                         30

Interest rate derivatives............ .........................................................

Other long-term assets.............................

                         22

Total asset derivatives......................................................................................

$                 1,005

$                    680

Liability derivatives:

 

 

 

Commodity derivatives...........

Other current liabilities.............................

$                       10

$                       82

Commodity derivatives...........

Other long-term liabilities........................

                         27

                        

Foreign exchange derivatives..

Other current liabilities.............................

                           8

                        

 Total liability derivatives.................................................................................

$                       45

$                       82

Restructuring Costs
Restructuring Costs

3.   Restructuring Costs 

 

In the fourth quarter of 2009, Devon announced plans to divest its offshore assets. As of June 30, 2012, Devon had divested all of its U.S. Offshore and International assets. Since inception of the plan, Devon has incurred $202 million of restructuring costs associated with these divestitures.

 

The schedule below summarizes restructuring costs presented in the accompanying comprehensive statements of earnings. Restructuring costs related to Devon’s discontinued operations totaled $(8) million and $(2) million in the second quarter and first six months of June 30, 2011. These costs primarily related to cash severance and share-based awards and are not included in the schedule below. There were no costs related to discontinued operations in the six months ended June 30, 2012.

 

 

 

 

 

 

 

Three Months

Ended June 30,

Six Months

Ended June 30,

 

2012

2011

2012

2011

 

(In millions)

Lease obligations...........................................................................................

$        

$           2

$        

$          (2)

Asset impairments.........................................................................................

          

             2

          

             2

Other................................................................................................................

          

             2

          

             1

Restructuring costs.....................................................................................

$        

$           6

$        

$           1

 

The schedule below summarizes Devon’s restructuring liabilities. Devon’s restructuring liabilities for cash severance related to its discontinued operations totaled $10 million at June 30, 2011 and are not included in the schedule below.

 

 

 

 

 

 

 

Other Current Liabilities

Other

Long-Term Liabilities

Total

 

(In millions)

Balance as of December 31, 2011.............................................................

$           29

$          16

$            45

Lease obligations settled............................................................................

              (9)

              (1)

             (10)

Cash severance settled...............................................................................

              (5)

            

               (5)

Balance as of June 30, 2012.......................................................................

$           15

$          15

$            30

 

 

 

 

Balance as of December 31, 2010.............................................................

$           31

$          51

$            82

Lease obligations settled............................................................................

              (1)

              (7)

               (8)

Cash severance settled...............................................................................

            (16)

            

             (16)

Other..............................................................................................................

             

              (1)

               (1)

Balance as of June 30, 2011.......................................................................

$           14

$          43

$            57

Other, Net
Other, Net

4.   Other, net 

 

The components of other, net in the accompanying comprehensive statements of earnings include the following:

 

 

 

 

 

 

 

Three Months

Ended June 30,

Six Months

Ended June 30,

 

2012

2011

2012

2011

 

(In millions)

Accretion of asset retirement obligations..................................................

$         28

$         23

$         55

$         46

Interest rate swaps – cash settlements......................................................

           11

            (5)

             1

          (21)

Interest rate swaps – unrealized fair value changes...............................

             5

           30

           15

           29

Interest income..............................................................................................

            (9)

            (4)

          (16)

            (6)

Other................................................................................................................

             9

            (7)

            (1)

          (21)

Other, net......................................................................................................

$         44

$         37

$         54

$         27

Earnings Per Share
Earnings Per Share

5.   Earnings Per Share

 

The following table reconciles earnings from continuing operations and common shares outstanding used in the calculations of basic and diluted earnings per share.

 

 

 

 

 

 

 

Earnings

Common Shares

Earnings

per Share

 

(In millions, except per share amounts)

Three Months Ended June 30, 2012:

                 

                

                

Earnings from continuing operations..............................................

$           477

             404

 

Attributable to participating securities............................................

 

Basic earnings per share....................................................................

             471

             400

$             1.18

Dilutive effect of potential common shares issuable...................

 

Diluted earnings per share.................................................................

$             1.18

 

 

 

 

Three Months Ended June 30, 2011:

                   

                   

                   

Earnings from continuing operations..............................................

$           184

             422

 

Attributable to participating securities............................................

 

Basic earnings per share....................................................................

             182

             417

$             0.44

Dilutive effect of potential common shares issuable...................

 

Diluted earnings per share.................................................................

$             0.43

 

 

 

 

Six Months Ended June 30, 2012:

                   

                   

                   

Earnings from continuing operations..............................................

$           891

             404

 

Attributable to participating securities............................................

 

Basic earnings per share....................................................................

             881

             400

$             2.20

Dilutive effect of potential common shares issuable...................

 

Diluted earnings per share.................................................................

$             2.20

 

 

 

 

Six Months Ended June 30, 2011:

                   

                   

                   

Earnings from continuing operations..............................................

$           573

             425

 

Attributable to participating securities............................................

 

Basic earnings per share....................................................................

             567

             420

$             1.35

Dilutive effect of potential common shares issuable...................

 

Diluted earnings per share.................................................................

$             1.34

 

Certain options to purchase shares of Devon's common stock are excluded from the dilution calculation because the options are antidilutive. During the three-month and six-month periods ended June 30, 2012, 8.9 million shares and 6.7 million shares, respectively, were excluded from the diluted earnings per share calculations. During the three-month and six-month periods ended June 30, 2011, 3.1 million shares were excluded from the diluted earnings per share calculations.

Other Comprehensive Earnings
Other Comprehensive Earnings

6.   Other Comprehensive Earnings

 

Components of other comprehensive earnings consist of the following:

 

 

 

 

 

 

 

Three Months

Ended June 30,

Six Months

Ended June 30,

 

2012

2011

2012

2011

 

(In millions)

Foreign currency translation:

 

 

 

 

Beginning accumulated foreign currency translation..........................

$   1,954

$   2,178

$   1,802

$   1,993

Change in cumulative translation adjustment......................................

       (179)

           67

          (20)

         262

Income tax expense...................................................................................

             8

            (2)

             1

          (12)

Ending accumulated foreign currency translation................................

     1,783

     2,243

     1,783

     2,243

Pension and postretirement benefit plans:

 

 

 

 

Beginning accumulated pension and postretirement benefits............

       (223)

       (227)

       (227)

       (233)

Recognition of net actuarial loss and prior service cost in earnings..

             7

             8

           13

           17

Income tax expense...................................................................................

            (2)

            (3)

            (4)

            (6)

Ending accumulated pension and postretirement benefits.................

       (218)

       (222)

       (218)

       (222)

Accumulated other comprehensive earnings, net of tax........................

$   1,565

$   2,021

$   1,565

$   2,021

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

7.   Supplemental Information to Statements of Cash Flows

 

 

 

 

 

Six Months Ended June 30,

 

2012

2011

 

(In millions)

Net change in working capital:

 

 

Decrease (increase) in accounts receivable..............................................

$                  384

$                 (100)

Increase in other current assets..................................................................

                   (191)

                      (41)

Increase in accounts payable.....................................................................

                       13

                         9

(Decrease) increase in revenues and royalties payable.........................

                   (139)

                     130

Decrease in other current liabilities............................................................

                      (45)

                      (87)

Net decrease (increase) in working capital..................................................

$                     22

 

 

 

Supplementary cash flow data – total operations:

 

 

Interest paid (net of capitalized interest)..................................................

$                  169

$                  160

Income taxes paid (received).....................................................................

$                     88

$                 (125)

Short-Term Investments
Short-Term Investments

8.   Short-Term Investments

 

The components of short-term investments include the following:

 

 

 

 

 

June 30, 2012

December 31, 2011

 

(In millions)

Canadian treasury, agency and provincial securities...............................

$                  644

$               1,155

U.S. treasuries...................................................................................................

                     300

                     201

Other..................................................................................................................

                      

                     147

Short-term investments...............................................................................

$                  944

$               1,503

Accounts Receivable
Accounts Receivable

9.   Accounts Receivable

 

The components of accounts receivable include the following:

 

 

 

 

 

June 30, 2012

December 31, 2011

 

(In millions)

Oil, gas and NGL sales....................................................................................

$                  668

$                  928

Joint interest billings........................................................................................

                     199

                     247

Marketing and midstream revenues............................................................

                     105

                     174

Other..................................................................................................................

                       47

                       39

Gross accounts receivable...........................................................................

                 1,019

                 1,388

Allowance for doubtful accounts.................................................................

                      (14)

                        (9)

Net accounts receivable..............................................................................

$               1,005

$               1,379

Other Current Assets
Other Current Assets

10. Other Current Assets 

 

The components of other current assets include the following: 

 

 

 

 

 

 

(In millions)

Derivative financial instruments..................................................................

$                  787

$                  641

Inventories........................................................................................................

                     220

                     102

Income taxes receivable................................................................................

                       40

                       35

Current assets held for sale............................................................................

                      

                       21

Other..................................................................................................................

                     120

                       69

Other current assets......................................................................................

$               1,167

$                  868

Property And Equipment
Property And Equipment

11. Property and Equipment

 

In April 2012, Devon closed its joint venture transaction with Sinopec International Petroleum Exploration & Production Corporation. Pursuant to the agreement, Sinopec paid approximately $900 million in cash and received a 33.3% interest in five of Devon’s new ventures exploration plays in the U.S. at closing of the transaction. Additionally, Sinopec is required to fund approximately $1.6 billion of Devon’s share of future exploration, development and drilling costs associated with these plays. Devon recognized the cash proceeds received at closing as a reduction to U.S. oil and gas property and equipment. No gain or loss was recognized.
Other Current Liabilities
Other Current Liablities

12. Other Current Liabilities

 

The components of other current liabilities include the following: 

 

 

 

 

 

June 30, 2012

December 31, 2011

 

(In millions)

Deferred income taxes payable....................................................................

$                  253

$                  172

Accrued interest...............................................................................................

                     142

                     131

Other..................................................................................................................

                     317

                     475

Other current liabilities.................................................................................

$                  712

$                  778

Debt
Debt

13. Debt 

 

Long-Term Debt

 

In May 2012, Devon issued $2.5 billion of senior notes that are unsecured and unsubordinated obligations of Devon. Devon used the net proceeds to repay outstanding commercial paper and credit facility borrowings. The schedule below summarizes the key terms of these notes ($ in millions).

 

 

 

 

 

 

1.875% due May 15, 2017............................................................................

$                  750

3.25% due May 15, 2022..............................................................................

                 1,000

4.75% due May 15, 2042..............................................................................

                     750

Discount and issuance costs..........................................................................

                      (35)

Net proceeds..................................................................................................

$               2,465

 

Commercial Paper

 

As of June 30, 2012, Devon had $2.1 billion of outstanding commercial paper at an average rate of 0.40 percent.

 

Credit Lines

 

On April 7, 2012, $0.46 billion of Devon’s Senior Credit Facility matured and was not extended. After the maturity, Devon maintains a $2.19 billion syndicated, unsecured revolving line of credit (the "Senior Credit Facility"). As of June 30, 2012, there were no borrowings under the Senior Credit Facility. 

 

The Senior Credit Facility contains only one material financial covenant. This covenant requires Devon’s ratio of total funded debt to total capitalization, as defined in the credit agreement, to be less than 65 percent. As of June 30, 2012, Devon was in compliance with this covenant with a debt-to-capitalization ratio of 23.8 percent.
Asset Retirement Obligations
Asset Retirement Obligations

14. Asset Retirement Obligations

 

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

 

 

 

 

 

Six Months Ended June 30,

 

2012

2011

 

(In millions)

Asset retirement obligations as of beginning of period.............................

$               1,563

$               1,497

Liabilities incurred........................................................................................

                       33

                       23

Liabilities settled...........................................................................................

                      (34)

                      (39)

Revision of estimated obligation...............................................................

                     399

                       16

Accretion expense on discounted obligation...........................................

                       55

                       46

Foreign currency translation adjustment.................................................

                      (10)

                       28

Asset retirement obligations as of end of period.......................................

                 2,006

                 1,571

Less current portion........................................................................................

                       64

                       72

Asset retirement obligations, long-term.......................................................

$               1,942

$               1,499

 

During the first quarter of 2012, Devon recognized revisions to its asset retirement obligations totaling $399 million. The primary factor contributing to this revision was an overall increase in abandonment cost estimates for certain of its production operations facilities.
Retirement Plans
Retirement Plans

15. Retirement Plans

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

 

 

 

 

 

 

 

 

 

 

 

Pension Benefits

Postretirement Benefits

 

Three Months

Ended June 30,

Six Months

Ended June 30,

Three Months

Ended June 30,

Six Months

Ended June 30,

 

2012

2011

2012

2011

2012

2011

2012

2011

 

(In millions)

 

 

 

 

 

 

 

 

 

Service cost......................................

$        10

$          9

$        21

$        18

$       

$          1

$       

$          1

Interest cost......................................

          15

          15

          30

          30

         

         

            1

            1

Expected return on plan assets.....

         (16)

         (11)

         (32)

         (21)

         

         

         

         

Amortization of prior service cost

            1

            1

            2

            2

         

           (1)

           (1)

           (1)

Net actuarial loss.............................

            6

            8

          12

          16

         

         

         

         

Net periodic benefit cost..............

$        16

$        22

$        33

$        45

$       

$       

$       

$          1

Stockholders' Equity
Stockholders' Equity

16. Stockholders' Equity 

 

In the second quarter of 2012, Devon’s stockholders adopted the 2012 amendment to the 2009 Long-Term Incentive Plan (“2009 Plan Amendment”), which expires June 2, 2019. The 2009 Plan Amendment increases the number of shares authorized for issuance from 21.5 million shares to 47 million shares. To calculate shares issued under the 2009 Long-Term Incentive Plan subsequent to the 2009 Plan Amendment, options and stock appreciation rights represent one share and other awards represent 2.38 shares.

 

Dividends

 

Devon paid common stock dividends of $162 million and $140 million in the first six months of 2012 and 2011, respectively. The quarterly cash dividend was $0.16 per share in the first quarter of 2011. Devon increased the dividend rate to $0.17 per share in the second quarter of 2011 and further increased the dividend rate to $0.20 per share in the first quarter of 2012.
Commitments And Contingencies
Commitments And Contingencies

17. Commitments and Contingencies

 

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

 

Royalty Matters

 

Numerous 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 natural gas and NGLs produced and sold. Devon’s largest exposure for such matters relates to royalties in the states of Oklahoma and New Mexico. 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.

 

Chief Redemption Matters

 

In 2006, Devon acquired Chief Holdings LLC (“Chief”) from the owners of Chief, including Trevor Rees-Jones, the majority owner of Chief. In 2008, a former owner of Chief filed a petition against Rees-Jones, as the former majority owner of Chief, and Devon, as Chief’s successor pursuant to the 2006 acquisition. The petition claimed, among other things, violations of the Texas Securities Act, fraud and breaches of Rees-Jones’ fiduciary responsibility to the former owner in connection with Chief’s 2004 redemption of the owner’s minority ownership stake in Chief.

 

On June 20, 2011, a court issued a judgment against Rees-Jones for $196 million, of which $133 million of the judgment was also issued against Devon. Both Rees-Jones and Devon are appealing the judgment. If the appeal is unsuccessful, Devon can and will seek full payment of the judgment and any related interest, costs and expenses from Rees-Jones pursuant to an existing indemnification agreement between Rees-Jones, certain other parties and Devon. Devon does not expect to have any net exposure as a result of the judgment. However, because Devon does not have a legal right of set off with respect to the judgment, Devon has recorded in the accompanying June 30, 2012 and December 31, 2011, balance sheets both a $133 million long-term liability relating to the judgment with an offsetting $133 million long-term receivable relating to its right to be indemnified by Rees-Jones and certain other parties pursuant to the indemnification agreement.

 

Other Matters

 

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

18. Fair Value Measurements

 

The following tables provide carrying value and fair value measurement information for certain of Devon’s financial assets and liabilities. The carrying values of cash, accounts receivable, other current receivables, accounts payable, other payables and accrued expenses included in the accompanying balance sheets approximated fair value at June 30, 2012 and December 31, 2011. Therefore, such financial assets and liabilities are not presented in the following tables.

 

 

 

 

 

 

 


 

 

 

Fair Value Measurements Using:

 

Carrying Amount

Total Fair Value

 Level 1

Inputs

Level 2

Inputs

Level 3

Inputs

 

(In millions)

June 30, 2012 assets (liabilities):

 

 

 

 

 

Cash equivalents.....................................

$        5,841

$        5,841

$           850

$        4,991

$             

Short-term investments..........................

$           944

$           944

$           300

$           644

$             

Long-term investments..........................

$              69

$              69

$             

$             

$              69

Commodity derivatives.........................

$           968

$           968

$             

$           968

$             

Commodity derivatives.........................

$            (37)

$            (37)

$             

$            (37)

$             

Interest rate derivatives.........................

$              37

$              37

$             

$              37

$             

Foreign exchange derivatives...............

$               (8)

$               (8)

$             

$               (8)

$             

Debt...........................................................

$    (10,603)

$    (12,260)

$             

$    (12,241)

$            (19)

 

 

 

 

 

 

 

December 31, 2011 assets (liabilities):

 

 

 

 

 

Cash equivalents.....................................

$        5,123

$        5,123

$           929

$        4,194

$             

Short-term investments..........................

$        1,503

$        1,503

$           201

$        1,302

$             

Long-term investments..........................

$              84

$              84

$             

$             

$              84

Commodity derivatives.........................

$           628

$           628

$             

$           628

$             

Commodity derivatives.........................

$            (82)

$            (82)

$             

$            (82)

$             

Interest rate derivatives.........................

$              52

$              52

$             

$              52

$             

Debt...........................................................

$       (9,780)

$    (11,380)

$             

$    (11,295)

$            (85)

 

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

 

Level 1 Fair Value Measurements

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

 

Level 2 Fair Value Measurements

 

Cash equivalents and short-term investments Amounts consist primarily of Canadian agency and provincial securities and commercial paper investments. The fair value is based upon quotes from brokers, which approximate the carrying value.

 

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

 

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

 

Level 3 Fair Value Measurements

 

Long-term investments — Devon’s long-term investments presented in the tables above consisted entirely of auction rate securities. Due to auction failures and the lack of an active market for Devon’s auction rate securities, quoted market prices for these securities were not available. Therefore, Devon used valuation techniques that rely on unobservable inputs to estimate the fair values of its long-term auction rate securities. These inputs were based on the AAA credit rating of the securities, the probability of full repayment of the securities considering the U.S. government guarantees substantially all of the underlying student loans, the collection of all accrued interest to date and continued receipts of principal at par. As a result of using these inputs, Devon concluded the estimated fair values of its long-term auction rate securities approximated the par values as of June 30, 2012 and December 31, 2011.

 

Debt — Devon's Level 3 debt consisted of a non-interest bearing promissory note. Due to the lack of an active market, quoted marked prices for this note, or similar notes, were not available. Therefore, Devon used valuation techniques that rely on unobservable inputs to estimate the fair value of its promissory note. The fair value of this debt is estimated using internal discounted cash flow calculations based upon estimated future payment schedules and a 3.125% interest rate.

 

Included below is a summary of the changes in Devon's Level 3 fair value measurements during the first six months of 2012 and 2011.

 

 

 

 

 

Six Months Ended June 30,

 

2012

2011

 

(In millions)

Long-term investments balance at beginning of period...........................

$                     84

$                     94

Redemptions of principal............................................................................

                      (15)

                        (1)

Long-term investments balance at end of period.....................................

$                     69

$                     93

 

 

 

 

 

Six Months Ended June 30,

 

2012

2011

 

(In millions)

Debt balance at beginning of period............................................................

$                   (85)

$                 (144)

Foreign exchange translation adjustment................................................

                        (1)

                        (4)

Accretion of promissory note.....................................................................

                      

                        (2)

Redemptions of principal............................................................................

                       67

                       46

Debt balance at end of period......................................................................

$                   (19)

$                 (104)

Discontinued Operations
Discontinued Operations

19. Discontinued Operations 

 

In March 2012, Devon received $71 million upon closing the divestiture of its operations in Angola, which completed Devon’s offshore divestiture program that was announced in November 2009. In aggregate, Devon’s U.S. and International offshore divestitures generated total proceeds of $10.1 billion, or approximately $8 billion after-tax, assuming repatriation of a substantial portion of the foreign proceeds under current U.S. tax law.

 

Revenues related to Devon’s discontinued operations totaled $43 million in the six months ended June 30, 2011. Devon did not have revenues related to its discontinued operations during the second quarter of 2011 or the first six months of 2012. Earnings (loss) from discontinued operations before income taxes totaled $(16) million in the six months ended June 30, 2012 and $2.6 billion for the second quarter and first six months of 2011, respectively. Devon did not have any earnings in the second quarter of 2012. Earnings (loss) from discontinued operations in 2012 and 2011 were primarily due to Devon’s International divestiture transactions.

 

The following table presents the main classes of assets and liabilities associated with Devon’s discontinued operations at December 31, 2011. Devon did not have assets or liabilities held for sale at June 30, 2012.

 

 

 

 

 

Balance Sheet Caption

 

 

(In millions)

  Other current assets...................

Other current assets..................................

$                      21

  Property and equipment, net... .........................................................

Other long-term assets.............................

$                    132

 

 

 

  Accounts payable......................

Other current liabilities.............................

$                      20

  Other current liabilities..............

Other current liabilities.............................

$                      28

Segment Information
Segment Information

20. Segment Information

 

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

 

 

 

 

 

 

U.S.

Canada

Total

 

(In millions)

Three Months Ended June 30, 2012:

 

Oil, gas and NGL sales...................................................................................

$     1,014

$         603

$     1,617

Oil, gas and NGL derivatives........................................................................

$         665

$          

$         665

Marketing and midstream revenues...........................................................

$         250

$           27

$         277

Depreciation, depletion and amortization.................................................

$         439

$         245

$         684

Interest expense..............................................................................................

$           84

$           15

$           99

Earnings from continuing operations before income taxes....................

$         727

$             7

$         734

Income tax expense (benefit)......................................................................

$         259

$            (2)

$         257

Earnings from continuing operations.........................................................

$         468

$             9

$         477

Capital expenditures......................................................................................

$     1,985

$         384

$     2,369

 

 

 

 

 

Three Months Ended June 30, 2011:

                

                 

            

Oil, gas and NGL sales...................................................................................

$     1,438

$         762

$     2,200

Oil, gas and NGL derivatives........................................................................

$         416

$          

$         416

Marketing and midstream revenues...........................................................

$         554

$           50

$         604

Depreciation, depletion and amortization.................................................

$         350

$         200

$         550

Interest expense..............................................................................................

$           40

$           45

$           85

Earnings from continuing operations before income taxes....................

$     1,148

$         230

$     1,378

Income tax expense......................................................................................

$     1,135

$           59

$     1,194

Earnings from continuing operations.........................................................

$           13

$         171

$         184

Capital expenditures......................................................................................

$     1,499

$         334

$     1,833

 

 

 

 

 

Six Months Ended June 30, 2012:

                

                 

            

Oil, gas and NGL sales...................................................................................

$     2,250

$     1,282

$     3,532

Oil, gas and NGL derivatives........................................................................

$         810

$          

$         810

Marketing and midstream revenues...........................................................

$         649

$           65

$         714

Depreciation, depletion and amortization.................................................

$         870

$         494

$     1,364

Interest expense..............................................................................................

$         155

$           31

$         186

Earnings from continuing operations before income taxes....................

$     1,260

$           85

$     1,345

Income tax expense......................................................................................

$         444

$           10

$         454

Earnings from continuing operations.........................................................

$         816

$           75

$         891

Property and equipment, net........................................................................

$   18,818

$     8,423

$   27,241

Total assets......................................................................................................

$   24,916

$   18,554

$   43,470

Capital expenditures (2)................................................................................

$     3,531

$     1,183

$     4,714

 

 

 

 

 

Six Months Ended June 30, 2011:

                

                 

            

Oil, gas and NGL sales...................................................................................

$     2,650

$     1,410

$     4,060

Oil, gas and NGL derivatives........................................................................

$         248

$          

$         248

Marketing and midstream revenues...........................................................

$         977

$           82

$     1,059

Depreciation, depletion and amortization.................................................

$         668

$         388

$     1,056

Interest expense..............................................................................................

$           77

$           89

$         166

Earnings from continuing operations before income taxes....................

$     1,586

$         372

$     1,958

Income tax expense......................................................................................

$     1,290

$           95

$     1,385

Earnings from continuing operations.........................................................

$         296

$         277

$         573

Property and equipment, net........................................................................

$   14,472

$     7,955

$   22,427

Total continuing assets (1)............................................................................

$   19,972

$   18,435

$   38,407

Capital expenditures......................................................................................

$     2,751

$         880

$     3,631

____________________________

(1)     Amounts in the table above do not include assets held for sale related to Devon’s discontinued operations, which totaled $130 million at June 30, 2011. There were no assets held for sale at June 30, 2012.

Capital expenditures for the first six months of 2012 presented above include the $399 million revision to Devon’s asset retirement obligations presented in Note 14. Of the $399 million, $110 million relates to the U.S. and $289 million relates to Canada.
Subsequent Event
Subsequent Events

21. Subsequent Event

 

In August 2012, Devon announced a transaction with Sumitomo Corporation that Devon expects to close in the third quarter of 2012. Under the agreement, Sumitomo will pay $1.365 billion, including $340 million at closing and $1.025 billion toward Devon’s share of future drilling costs, and will receive a 30% interest in the Cline and Midland-Wolfcamp shale plays.
Derivative Financial Instruments (Tables)

 

 

 

 

 

 

Three Months

Ended June 30,

Six Months

Ended June 30,

 

2012

2011

2012

2011

 

(In millions)

Cash settlements:

 

 

 

 

Commodity derivatives.............................................................................

$      267

$         59

$      425

$      145

Interest rate derivatives.............................................................................

          (11)

             5

            (1)

           21

Foreign currency derivatives.....................................................................

           20

         

             9

         

Total cash settlements.............................................................................

         276

           64

         433

         166

Unrealized gains (losses):

 

 

 

 

Commodity derivatives.............................................................................

         398

         357

         385

         103

Interest rate derivatives.............................................................................

            (5)

          (30)

          (15)

          (29)

Foreign currency derivatives.....................................................................

            (9)

          

            (8)

          

Total unrealized gains.............................................................................

         384

         327

         362

           74

Net gain recognized on comprehensive statements of earnings...........

$      660

$      391

$      795

$      240

 

 

 

 

 

Balance Sheet Caption

June 30, 2012

December 31, 2011

 

 

(In millions)

Asset derivatives:

 

 

 

Commodity derivatives...........

Other current assets..................................

$                    759

$                    611

Commodity derivatives...........

Other long-term assets.............................

                       209

                         17

Interest rate derivatives............ .........................................................

Other current assets..................................

                         28

                         30

Interest rate derivatives............ .........................................................

Other long-term assets.............................

                         22

Total asset derivatives......................................................................................

$                 1,005

$                    680

Liability derivatives:

 

 

 

Commodity derivatives...........

Other current liabilities.............................

$                       10

$                       82

Commodity derivatives...........

Other long-term liabilities........................

                         27

                        

Foreign exchange derivatives..

Other current liabilities.............................

                           8

                        

 Total liability derivatives.................................................................................

$                       45

$                       82

 

 

 

 

 

Forward Contract

 

Currency

Contract Type

CAD

Notional

Fixed Rate

Received

 

Expiration

 

 

(In millions)

(CAD-USD)

 

Canadian Dollar

Sell

$           755

0.9708

September 2012

 

 

 

 

 

Notional

Fixed Rate

Received

Variable

Rate Paid

 

Expiration

(In millions)

 

 

 

$           100

1.90%

Federal funds rate

August 2012

3.88%

Federal funds rate

July 2013

3.65%

 

 

 

 

 

 

 

 

 

 

 

 

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)

Q3-Q4 2012.

54,000

$105.90

74,000

$89.71

$123.09

19,500

$95.00

Q1-Q4 2013.

31,000

$104.13

45,000

$91.30

$116.23

6,000

$120.00

Q1-Q4 2014.

4,000

$100.49

2,000

$90.00

$111.13

6,000

$120.00

 

 

 

 

 

 

 

 

 

 

 

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)

Q3-Q4 2012.

573,370

$4.04

991,685

$3.71

$4.40

487,500

$6.00

Q1-Q4 2013.

150,000

$4.50

Q1-Q4 2014.

150,000

$5.00

Restructuring Costs (Tables)

 

 

 

 

 

 

Three Months

Ended June 30,

Six Months

Ended June 30,

 

2012

2011

2012

2011

 

(In millions)

Lease obligations...........................................................................................

$        

$           2

$        

$          (2)

Asset impairments.........................................................................................

          

             2

          

             2

Other................................................................................................................

          

             2

          

             1

Restructuring costs.....................................................................................

$        

$           6

$        

$           1

 

 

 

 

 

Other Current Liabilities

Other

Long-Term Liabilities

Total

 

(In millions)

Balance as of December 31, 2011.............................................................

$           29

$          16

$            45

Lease obligations settled............................................................................

              (9)

              (1)

             (10)

Cash severance settled...............................................................................

              (5)

            

               (5)

Balance as of June 30, 2012.......................................................................

$           15

$          15

$            30

 

 

 

 

Balance as of December 31, 2010.............................................................

$           31

$          51

$            82

Lease obligations settled............................................................................

              (1)

              (7)

               (8)

Cash severance settled...............................................................................

            (16)

            

             (16)

Other..............................................................................................................

             

              (1)

               (1)

Balance as of June 30, 2011.......................................................................

$           14

$          43

$            57

Other, Net (Tables)
Components Of Other, Net

 

 

 

 

 

 

Three Months

Ended June 30,

Six Months

Ended June 30,

 

2012

2011

2012

2011

 

(In millions)

Accretion of asset retirement obligations..................................................

$         28

$         23

$         55

$         46

Interest rate swaps – cash settlements......................................................

           11

            (5)

             1

          (21)

Interest rate swaps – unrealized fair value changes...............................

             5

           30

           15

           29

Interest income..............................................................................................

            (9)

            (4)

          (16)

            (6)

Other................................................................................................................

             9

            (7)

            (1)

          (21)

Other, net......................................................................................................

$         44

$         37

$         54

$         27

Earnings Per Share (Tables)
Earnings Per Share Computations

 

 

 

 

 

 

Earnings

Common Shares

Earnings

per Share

 

(In millions, except per share amounts)

Three Months Ended June 30, 2012:

                 

                

                

Earnings from continuing operations..............................................

$           477

             404

 

Attributable to participating securities............................................

 

Basic earnings per share....................................................................

             471

             400

$             1.18

Dilutive effect of potential common shares issuable...................

 

Diluted earnings per share.................................................................

$             1.18

 

 

 

 

Three Months Ended June 30, 2011:

                   

                   

                   

Earnings from continuing operations..............................................

$           184

             422

 

Attributable to participating securities............................................

 

Basic earnings per share....................................................................

             182

             417

$             0.44

Dilutive effect of potential common shares issuable...................

 

Diluted earnings per share.................................................................

$             0.43

 

 

 

 

Six Months Ended June 30, 2012:

                   

                   

                   

Earnings from continuing operations..............................................

$           891

             404

 

Attributable to participating securities............................................

 

Basic earnings per share....................................................................

             881

             400

$             2.20

Dilutive effect of potential common shares issuable...................

 

Diluted earnings per share.................................................................

$             2.20

 

 

 

 

Six Months Ended June 30, 2011:

                   

                   

                   

Earnings from continuing operations..............................................

$           573

             425

 

Attributable to participating securities............................................

 

Basic earnings per share....................................................................

             567

             420

$             1.35

Dilutive effect of potential common shares issuable...................

 

Diluted earnings per share.................................................................

$             1.34

Other Comprehensive Earnings (Tables)
Components Of Other Comprehensive Earnings

 

 

 

 

 

 

 

Three Months

Ended June 30,

Six Months

Ended June 30,

 

2012

2011

2012

2011

 

(In millions)

Foreign currency translation:

 

 

 

 

Beginning accumulated foreign currency translation..........................

$   1,954

$   2,178

$   1,802

$   1,993

Change in cumulative translation adjustment......................................

       (179)

           67

          (20)

         262

Income tax expense...................................................................................

             8

            (2)

             1

          (12)

Ending accumulated foreign currency translation................................

     1,783

     2,243

     1,783

     2,243

Pension and postretirement benefit plans:

 

 

 

 

Beginning accumulated pension and postretirement benefits............

       (223)

       (227)

       (227)

       (233)

Recognition of net actuarial loss and prior service cost in earnings..

             7

             8

           13

           17

Income tax expense...................................................................................

            (2)

            (3)

            (4)

            (6)

Ending accumulated pension and postretirement benefits.................

       (218)

       (222)

       (218)

       (222)

Accumulated other comprehensive earnings, net of tax........................

$   1,565

$   2,021

$   1,565

$   2,021

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

 

 

 

 

 

Six Months Ended June 30,

 

2012

2011

 

(In millions)

Net change in working capital:

 

 

Decrease (increase) in accounts receivable..............................................

$                  384

$                 (100)

Increase in other current assets..................................................................

                   (191)

                      (41)

Increase in accounts payable.....................................................................

                       13

                         9

(Decrease) increase in revenues and royalties payable.........................

                   (139)

                     130

Decrease in other current liabilities............................................................

                      (45)

                      (87)

Net decrease (increase) in working capital..................................................

$                     22

 

 

 

Supplementary cash flow data – total operations:

 

 

Interest paid (net of capitalized interest)..................................................

$                  169

$                  160

Income taxes paid (received).....................................................................

$                     88

$                 (125)

Short-Term Investments (Tables)
Components Of Short-Term Investments

 

 

 

 

June 30, 2012

December 31, 2011

 

(In millions)

Canadian treasury, agency and provincial securities...............................

$                  644

$               1,155

U.S. treasuries...................................................................................................

                     300

                     201

Other..................................................................................................................

                      

                     147

Short-term investments...............................................................................

$                  944

$               1,503

Accounts Receivable (Tables)
Schedule Of Components Of Accounts Receivable

 

 

 

 

 

June 30, 2012

December 31, 2011

 

(In millions)

Oil, gas and NGL sales....................................................................................

$                  668

$                  928

Joint interest billings........................................................................................

                     199

                     247

Marketing and midstream revenues............................................................

                     105

                     174

Other..................................................................................................................

                       47

                       39

Gross accounts receivable...........................................................................

                 1,019

                 1,388

Allowance for doubtful accounts.................................................................

                      (14)

                        (9)

Net accounts receivable..............................................................................

$               1,005

$               1,379

Other Current Assets (Tables)
Schedule Of Components Of Other Current Assets

 

 

 

 

 

(In millions)

Derivative financial instruments..................................................................

$                  787

$                  641

Inventories........................................................................................................

                     220

                     102

Income taxes receivable................................................................................

                       40

                       35

Current assets held for sale............................................................................

                      

                       21

Other..................................................................................................................

                     120

                       69

Other current assets......................................................................................

$               1,167

$                  868

Other Current Liabilities (Tables)
Other Current Liabilities

 

 

 

 

June 30, 2012

December 31, 2011

 

(In millions)

Deferred income taxes payable....................................................................

$                  253

$                  172

Accrued interest...............................................................................................

                     142

                     131

Other..................................................................................................................

                     317

                     475

Other current liabilities.................................................................................

$                  712

$                  778

Debt (Tables)
Schedule Of Long-term Debt Instruments

 

 

 

 

 

1.875% due May 15, 2017............................................................................

$                  750

3.25% due May 15, 2022..............................................................................

                 1,000

4.75% due May 15, 2042..............................................................................

                     750

Discount and issuance costs..........................................................................

                      (35)

Net proceeds..................................................................................................

$               2,465

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

 

 

 

 

Six Months Ended June 30,

 

2012

2011

 

(In millions)

Asset retirement obligations as of beginning of period.............................

$               1,563

$               1,497

Liabilities incurred........................................................................................

                       33

                       23

Liabilities settled...........................................................................................

                      (34)

                      (39)

Revision of estimated obligation...............................................................

                     399

                       16

Accretion expense on discounted obligation...........................................

                       55

                       46

Foreign currency translation adjustment.................................................

                      (10)

                       28

Asset retirement obligations as of end of period.......................................

                 2,006

                 1,571

Less current portion........................................................................................

                       64

                       72

Asset retirement obligations, long-term.......................................................

$               1,942

$               1,499

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

 

 

 

 

 

 

 

 

 

 

Pension Benefits

Postretirement Benefits

 

Three Months

Ended June 30,

Six Months

Ended June 30,

Three Months

Ended June 30,

Six Months

Ended June 30,

 

2012

2011

2012

2011

2012

2011

2012

2011

 

(In millions)

 

 

 

 

 

 

 

 

 

Service cost......................................

$        10

$          9

$        21

$        18

$       

$          1

$       

$          1

Interest cost......................................

          15

          15

          30

          30

         

         

            1

            1

Expected return on plan assets.....

         (16)

         (11)

         (32)

         (21)

         

         

         

         

Amortization of prior service cost

            1

            1

            2

            2

         

           (1)

           (1)

           (1)

Net actuarial loss.............................

            6

            8

          12

          16

         

         

         

         

Net periodic benefit cost..............

$        16

$        22

$        33

$        45

$       

$       

$       

$          1

Fair Value Measurements (Tables)

 

 

 

Fair Value Measurements Using:

 

Carrying Amount

Total Fair Value

 Level 1

Inputs

Level 2

Inputs

Level 3

Inputs

 

(In millions)

June 30, 2012 assets (liabilities):

 

 

 

 

 

Cash equivalents.....................................

$        5,841

$        5,841

$           850

$        4,991

$             

Short-term investments..........................

$           944

$           944

$           300

$           644

$             

Long-term investments..........................

$              69

$              69

$             

$             

$              69

Commodity derivatives.........................

$           968

$           968

$             

$           968

$             

Commodity derivatives.........................

$            (37)

$            (37)

$             

$            (37)

$             

Interest rate derivatives.........................

$              37

$              37

$             

$              37

$             

Foreign exchange derivatives...............

$               (8)

$               (8)

$             

$               (8)

$             

Debt...........................................................

$    (10,603)

$    (12,260)

$             

$    (12,241)

$            (19)

 

 

 

 

 

 

 

December 31, 2011 assets (liabilities):

 

 

 

 

 

Cash equivalents.....................................

$        5,123

$        5,123

$           929

$        4,194

$             

Short-term investments..........................

$        1,503

$        1,503

$           201

$        1,302

$             

Long-term investments..........................

$              84

$              84

$             

$             

$              84

Commodity derivatives.........................

$           628

$           628

$             

$           628

$             

Commodity derivatives.........................

$            (82)

$            (82)

$             

$            (82)

$             

Interest rate derivatives.........................

$              52

$              52

$             

$              52

$             

Debt...........................................................

$       (9,780)

$    (11,380)

$             

$    (11,295)

$            (85)

 

 

 

 

Six Months Ended June 30,

 

2012

2011

 

(In millions)

Long-term investments balance at beginning of period...........................

$                     84

$                     94

Redemptions of principal............................................................................

                      (15)

                        (1)

Long-term investments balance at end of period.....................................

$                     69

$                     93

 

 

 

 

Six Months Ended June 30,

 

2012

2011

 

(In millions)

Debt balance at beginning of period............................................................

$                   (85)

$                 (144)

Foreign exchange translation adjustment................................................

                        (1)

                        (4)

Accretion of promissory note.....................................................................

                      

                        (2)

Redemptions of principal............................................................................

                       67

                       46

Debt balance at end of period......................................................................

$                   (19)

$                 (104)

Discontinued Operations (Tables)
Schedule Of Discontinued Operations

 

 

 

 

Balance Sheet Caption

 

 

(In millions)

  Other current assets...................

Other current assets..................................

$                      21

  Property and equipment, net... .........................................................

Other long-term assets.............................

$                    132

 

 

 

  Accounts payable......................

Other current liabilities.............................

$                      20

  Other current liabilities..............

Other current liabilities.............................

$                      28

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

 

 

 

 

 

U.S.

Canada

Total

 

(In millions)

Three Months Ended June 30, 2012:

 

Oil, gas and NGL sales...................................................................................

$     1,014

$         603

$     1,617

Oil, gas and NGL derivatives........................................................................

$         665

$          

$         665

Marketing and midstream revenues...........................................................

$         250

$           27

$         277

Depreciation, depletion and amortization.................................................

$         439

$         245

$         684

Interest expense..............................................................................................

$           84

$           15

$           99

Earnings from continuing operations before income taxes....................

$         727

$             7

$         734

Income tax expense (benefit)......................................................................

$         259

$            (2)

$         257

Earnings from continuing operations.........................................................

$         468

$             9

$         477

Capital expenditures......................................................................................

$     1,985

$         384

$     2,369

 

 

 

 

 

Three Months Ended June 30, 2011:

                

                 

            

Oil, gas and NGL sales...................................................................................

$     1,438

$         762

$     2,200

Oil, gas and NGL derivatives........................................................................

$         416

$          

$         416

Marketing and midstream revenues...........................................................

$         554

$           50

$         604

Depreciation, depletion and amortization.................................................

$         350

$         200

$         550

Interest expense..............................................................................................

$           40

$           45

$           85

Earnings from continuing operations before income taxes....................

$     1,148

$         230

$     1,378

Income tax expense......................................................................................

$     1,135

$           59

$     1,194

Earnings from continuing operations.........................................................

$           13

$         171

$         184

Capital expenditures......................................................................................

$     1,499

$         334

$     1,833

 

 

 

 

 

Six Months Ended June 30, 2012:

                

                 

            

Oil, gas and NGL sales...................................................................................

$     2,250

$     1,282

$     3,532

Oil, gas and NGL derivatives........................................................................

$         810

$          

$         810

Marketing and midstream revenues...........................................................

$         649

$           65

$         714

Depreciation, depletion and amortization.................................................

$         870

$         494

$     1,364

Interest expense..............................................................................................

$         155

$           31

$         186

Earnings from continuing operations before income taxes....................

$     1,260

$           85

$     1,345

Income tax expense......................................................................................

$         444

$           10

$         454

Earnings from continuing operations.........................................................

$         816

$           75

$         891

Property and equipment, net........................................................................

$   18,818

$     8,423

$   27,241

Total assets......................................................................................................

$   24,916

$   18,554

$   43,470

Capital expenditures (2)................................................................................

$     3,531

$     1,183

$     4,714

 

 

 

 

 

Six Months Ended June 30, 2011:

                

                 

            

Oil, gas and NGL sales...................................................................................

$     2,650

$     1,410

$     4,060

Oil, gas and NGL derivatives........................................................................

$         248

$          

$         248

Marketing and midstream revenues...........................................................

$         977

$           82

$     1,059

Depreciation, depletion and amortization.................................................

$         668

$         388

$     1,056

Interest expense..............................................................................................

$           77

$           89

$         166

Earnings from continuing operations before income taxes....................

$     1,586

$         372

$     1,958

Income tax expense......................................................................................

$     1,290

$           95

$     1,385

Earnings from continuing operations.........................................................

$         296

$         277

$         573

Property and equipment, net........................................................................

$   14,472

$     7,955

$   22,427

Total continuing assets (1)............................................................................

$   19,972

$   18,435

$   38,407

Capital expenditures......................................................................................

$     2,751

$         880

$     3,631

____________________________

(1)     Amounts in the table above do not include assets held for sale related to Devon’s discontinued operations, which totaled $130 million at June 30, 2011. There were no assets held for sale at June 30, 2012.

Capital expenditures for the first six months of 2012 presented above include the $399 million revision to Devon’s asset retirement obligations presented in Note 14. Of the $399 million, $110 million relates to the U.S. and $289 million relates to Canada.
Summary Of Significant Accounting Policies (Details) (USD $)
In Millions, unless otherwise specified
6 Months Ended
Jun. 30, 2012
Summary Of Significant Accounting Policies [Abstract]
 
Checks issued, not presented
$ 99 
Derivative Financial Instruments (Narrative) (Details) (USD $)
In Millions, unless otherwise specified
Jun. 30, 2012
Derivative Financial Instruments [Abstract]
 
Cash collateral received
$ 107 
Derivative Financial Instruments (Schedule Of Open Commodity Derivative Positions) (Details)
Jun. 30, 2012
Q3-Q4 2012 [Member] |
Bbl [Member] |
Open Oil Derivative Positions [Member] |
Price Swaps [Member]
 
Derivative [Line Items]
 
Volume per day
54,000 
Weighted Average Price
105.90 
Q3-Q4 2012 [Member] |
Bbl [Member] |
Open Oil Derivative Positions [Member] |
Price Collars [Member]
 
Derivative [Line Items]
 
Volume per day
74,000 
Weighted Average Floor Price
89.71 
Weighted Average Ceiling Price
123.09 
Q3-Q4 2012 [Member] |
Bbl [Member] |
Open Oil Derivative Positions [Member] |
Call Options Sold [Member]
 
Derivative [Line Items]
 
Volume per day
19,500 
Weighted Average Price
95.00 
Q3-Q4 2012 [Member] |
MMBtu [Member] |
Open Natural Gas Derivative Positions [Member] |
Price Swaps [Member]
 
Derivative [Line Items]
 
Volume per day
573,370 
Weighted Average Price
4.04 
Q3-Q4 2012 [Member] |
MMBtu [Member] |
Open Natural Gas Derivative Positions [Member] |
Price Collars [Member]
 
Derivative [Line Items]
 
Volume per day
991,685 
Weighted Average Floor Price
3.71 
Weighted Average Ceiling Price
4.40 
Q3-Q4 2012 [Member] |
MMBtu [Member] |
Open Natural Gas Derivative Positions [Member] |
Call Options Sold [Member]
 
Derivative [Line Items]
 
Volume per day
487,500 
Weighted Average Price
6.00 
Q1-Q4 2013 [Member] |
Bbl [Member] |
Open Oil Derivative Positions [Member] |
Price Swaps [Member]
 
Derivative [Line Items]
 
Volume per day
31,000 
Weighted Average Price
104.13 
Q1-Q4 2013 [Member] |
Bbl [Member] |
Open Oil Derivative Positions [Member] |
Price Collars [Member]
 
Derivative [Line Items]
 
Volume per day
45,000 
Weighted Average Floor Price
91.30 
Weighted Average Ceiling Price
116.23 
Q1-Q4 2013 [Member] |
Bbl [Member] |
Open Oil Derivative Positions [Member] |
Call Options Sold [Member]
 
Derivative [Line Items]
 
Volume per day
6,000 
Weighted Average Price
120.00 
Q1-Q4 2013 [Member] |
MMBtu [Member] |
Open Natural Gas Derivative Positions [Member] |
Price Swaps [Member]
 
Derivative [Line Items]
 
Volume per day
150,000 
Weighted Average Price
4.50 
Q1-Q4 2014 [Member] |
Bbl [Member] |
Open Oil Derivative Positions [Member] |
Price Swaps [Member]
 
Derivative [Line Items]
 
Volume per day
4,000 
Weighted Average Price
100.49 
Q1-Q4 2014 [Member] |
Bbl [Member] |
Open Oil Derivative Positions [Member] |
Price Collars [Member]
 
Derivative [Line Items]
 
Volume per day
2,000 
Weighted Average Floor Price
90.00 
Weighted Average Ceiling Price
111.13 
Q1-Q4 2014 [Member] |
Bbl [Member] |
Open Oil Derivative Positions [Member] |
Call Options Sold [Member]
 
Derivative [Line Items]
 
Volume per day
6,000 
Weighted Average Price
120.00 
Q1-Q4 2014 [Member] |
MMBtu [Member] |
Open Natural Gas Derivative Positions [Member] |
Call Options Sold [Member]
 
Derivative [Line Items]
 
Volume per day
150,000 
Weighted Average Price
5.00 
Derivative Financial Instruments (Schedule Of Open Interest Rate Swap Derivative Positions) (Details) (USD $)
In Millions, unless otherwise specified
6 Months Ended
Jun. 30, 2012
Derivative [Line Items]
 
Notional
$ 850 
Fixed Rate Received
3.65% 
August 2012 [Member]
 
Derivative [Line Items]
 
Notional
100 
Fixed Rate Received
1.90% 
Variable Rate Paid
Federal funds rate 
Expiration
Aug. 01, 2012 
July 2013 [Member]
 
Derivative [Line Items]
 
Notional
$ 750 
Fixed Rate Received
3.88% 
Variable Rate Paid
Federal funds rate 
Expiration
Jul. 01, 2013 
Derivative Financial Instruments (Schedule Of Open Foreign Exchange Rate Derivative Positions) (Details) (September 2012 [Member], CAD $)
In Millions, unless otherwise specified
6 Months Ended
Jun. 30, 2012
September 2012 [Member]
 
Derivative [Line Items]
 
Contract Type
Sell 
CAD Notional
$ 755 
Fixed Rate Received
0.9708 
Expiration
Sep. 01, 2012 
Derivative Financial Instruments (Schedule Of Derivative Financial Instruments Included In The Consolidated Balance Sheets And Consolidated Comprehensive Statement Of Earnings) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2012
Jun. 30, 2011
Jun. 30, 2012
Jun. 30, 2011
Dec. 31, 2011
Derivatives, Fair Value [Line Items]
 
 
 
 
 
Fair value of derivative assets
$ 1,005 
 
$ 1,005 
 
$ 680 
Fair value of derivative liabilities
45 
 
45 
 
82 
Total cash settlements
276 
64 
433 
166 
 
Total unrealized gains (losses)
384 
327 
362 
74 
 
Net gain (loss) recognized on comprehensive statements of earnings
660 
391 
795 
240 
 
Commodity Derivatives [Member]
 
 
 
 
 
Derivatives, Fair Value [Line Items]
 
 
 
 
 
Total cash settlements
267 
59 
425 
145 
 
Total unrealized gains (losses)
398 
357 
385 
103 
 
Commodity Derivatives [Member] |
Other Current Assets [Member]
 
 
 
 
 
Derivatives, Fair Value [Line Items]
 
 
 
 
 
Fair value of derivative assets
759 
 
759 
 
611 
Commodity Derivatives [Member] |
Other Long-Term Assets [Member]
 
 
 
 
 
Derivatives, Fair Value [Line Items]
 
 
 
 
 
Fair value of derivative assets
209 
 
209 
 
17 
Commodity Derivatives [Member] |
Other Current Liabilities [Member]
 
 
 
 
 
Derivatives, Fair Value [Line Items]
 
 
 
 
 
Fair value of derivative liabilities
10 
 
10 
 
82 
Commodity Derivatives [Member] |
Other Long-Term Liabilities [Member]
 
 
 
 
 
Derivatives, Fair Value [Line Items]
 
 
 
 
 
Fair value of derivative liabilities
27 
 
27 
 
 
Interest Rate Derivatives [Member]
 
 
 
 
 
Derivatives, Fair Value [Line Items]
 
 
 
 
 
Total cash settlements
(11)
(1)
21 
 
Total unrealized gains (losses)
(5)
(30)
(15)
(29)
 
Interest Rate Derivatives [Member] |
Other Current Assets [Member]
 
 
 
 
 
Derivatives, Fair Value [Line Items]
 
 
 
 
 
Fair value of derivative assets
28 
 
28 
 
30 
Interest Rate Derivatives [Member] |
Other Long-Term Assets [Member]
 
 
 
 
 
Derivatives, Fair Value [Line Items]
 
 
 
 
 
Fair value of derivative assets
 
 
22 
Foreign Exchange Derivatives [Member]
 
 
 
 
 
Derivatives, Fair Value [Line Items]
 
 
 
 
 
Total cash settlements
20 
 
 
 
Total unrealized gains (losses)
(9)
 
(8)
 
 
Foreign Exchange Derivatives [Member] |
Other Current Liabilities [Member]
 
 
 
 
 
Derivatives, Fair Value [Line Items]
 
 
 
 
 
Fair value of derivative liabilities
$ 8 
 
$ 8 
 
 
Restructuring Costs (Narrative) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2011
Jun. 30, 2012
Jun. 30, 2011
Dec. 31, 2011
Dec. 31, 2010
Restructuring Cost and Reserve [Line Items]
 
 
 
 
 
Restructuring costs incurred to date associated with divestitures
 
$ 202 
 
 
 
Restructuring charges
 
 
 
Restructuring liabilities
57 
30 
57 
45 
82 
Discontinued Operations [Member]
 
 
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
 
 
Restructuring charges
(8)
 
(2)
 
 
Restructuring liabilities
$ 10 
 
$ 10 
 
 
Restructuring Costs (Schedule Of The Components Of Restructuring Costs Included In The Consolidated Statements Of Earnings) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2011
Jun. 30, 2011
Restructuring Cost and Reserve [Line Items]
 
 
Restructuring costs
$ 6 
$ 1 
Lease Obligations [Member]
 
 
Restructuring Cost and Reserve [Line Items]
 
 
Restructuring costs
(2)
Asset Impairments [Member]
 
 
Restructuring Cost and Reserve [Line Items]
 
 
Restructuring costs
Other [Member]
 
 
Restructuring Cost and Reserve [Line Items]
 
 
Restructuring costs
$ 2 
$ 1 
Restructuring Costs (Schedule Of The Activity And Balances Associated With Restructuring Liabilities) (Details) (USD $)
In Millions, unless otherwise specified
6 Months Ended 6 Months Ended 6 Months Ended 6 Months Ended
Jun. 30, 2011
Jun. 30, 2012
Dec. 31, 2011
Jun. 30, 2012
Lease Obligations [Member]
Jun. 30, 2011
Lease Obligations [Member]
Jun. 30, 2012
Cash Severance [Member]
Jun. 30, 2011
Cash Severance [Member]
Jun. 30, 2012
Other Current Liabilities [Member]
Dec. 31, 2011
Other Current Liabilities [Member]
Jun. 30, 2011
Other Current Liabilities [Member]
Dec. 31, 2010
Other Current Liabilities [Member]
Jun. 30, 2012
Other Current Liabilities [Member]
Lease Obligations [Member]
Jun. 30, 2011
Other Current Liabilities [Member]
Lease Obligations [Member]
Jun. 30, 2012
Other Current Liabilities [Member]
Cash Severance [Member]
Jun. 30, 2011
Other Current Liabilities [Member]
Cash Severance [Member]
Jun. 30, 2011
Other Long-Term Liabilities [Member]
Jun. 30, 2012
Other Long-Term Liabilities [Member]
Dec. 31, 2011
Other Long-Term Liabilities [Member]
Jun. 30, 2012
Other Long-Term Liabilities [Member]
Lease Obligations [Member]
Jun. 30, 2011
Other Long-Term Liabilities [Member]
Lease Obligations [Member]
Restructuring Cost and Reserve [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Beginning balance
$ 82 
$ 30 
$ 45 
 
 
 
 
$ 15 
$ 29 
$ 14 
$ 31 
 
 
 
 
$ 51 
$ 15 
$ 16 
 
 
Restructuring reserved settled with cash
 
 
 
(10)
(8)
(5)
(16)
 
 
 
 
(9)
(1)
(5)
(16)
 
 
 
(1)
(7)
Other
(1)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1)
 
 
 
 
Ending balance
$ 57 
$ 30 
$ 45 
 
 
 
 
$ 15 
$ 29 
$ 14 
$ 31 
 
 
 
 
$ 43 
$ 15 
$ 16 
 
 
Other, Net (Components Of Other, Net) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2012
Jun. 30, 2011
Jun. 30, 2012
Jun. 30, 2011
Accretion of asset retirement obligations
$ 28 
$ 23 
$ 55 
$ 46 
Total cash settlements
(276)
(64)
(433)
(166)
Total unrealized gains (losses)
(384)
(327)
(362)
(74)
Interest income
(9)
(4)
(16)
(6)
Other
(7)
(1)
(21)
Other, net
44 
37 
54 
27 
Interest Rate Derivatives [Member]
 
 
 
 
Total cash settlements
11 
(5)
(21)
Total unrealized gains (losses)
$ 5 
$ 30 
$ 15 
$ 29 
Earnings Per Share (Earnings Per Share Computations) (Details) (USD $)
In Millions, except Per Share data, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2012
Jun. 30, 2011
Jun. 30, 2012
Jun. 30, 2011
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items]
 
 
 
 
Earnings from continuing operations, Earnings
$ 477 
$ 184 
$ 891 
$ 573 
Basic earnings per share, Earnings per Share
$ 1.18 
$ 0.44 
$ 2.20 
$ 1.35 
Diluted earnings per share, Earnings per Share
$ 1.18 
$ 0.43 
$ 2.20 
$ 1.34 
Antidilutive securities excluded from computation of earnings per share, amount
8.9 
3.1 
6.7 
3.1 
Earnings [Member]
 
 
 
 
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items]
 
 
 
 
Earnings from continuing operations, Earnings
477 
184 
891 
573 
Attributable to participating securities, Earnings
(6)
(2)
(10)
(6)
Basic earnings per share, Earnings
471 
182 
881 
567 
Diluted earnings per share, Earnings
$ 471 
$ 182 
$ 881 
$ 567 
Common Stock [Member]
 
 
 
 
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items]
 
 
 
 
Earnings from continuing operations, Common Shares
404 
422 
404 
425 
Attributable to participating securities, Common Shares
(4)
(5)
(4)
(5)
Basic earnings per share, Common Shares
400 
417 
400 
420 
Dilutive effect of potential common shares issuable, Common Shares
 
Diluted earnings per share, Common Shares
400 
419 
401 
422 
Other Comprehensive Earnings (Components Of Other Comprehensive Earnings) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2012
Jun. 30, 2011
Jun. 30, 2012
Jun. 30, 2011
Dec. 31, 2011
Other Comprehensive Earnings [Abstract]
 
 
 
 
 
Beginning accumulated foreign currency translation
$ 1,954 
$ 2,178 
$ 1,802 
$ 1,993 
 
Change in cumulative translation adjustment
(179)
67 
(20)
262 
 
Income tax expense
(2)
(12)
 
Ending accumulated foreign currency translation
1,783 
2,243 
1,783 
2,243 
 
Beginning accumulated pension and postretirement benefits
(223)
(227)
(227)
(233)
 
Recognition of net actuarial loss and prior service cost in earnings
13 
17 
 
Income tax expense
(2)
(3)
(4)
(6)
 
Ending accumulated pension and postretirement benefits
(218)
(222)
(218)
(222)
 
Accumulated other comprehensive earnings, net of tax
$ 1,565 
$ 2,021 
$ 1,565 
$ 2,021 
$ 1,575 
Supplemental Information To Statements Of Cash Flows (Schedule Of Supplemental To Cash Flow Information) (Details) (USD $)
In Millions, unless otherwise specified
6 Months Ended
Jun. 30, 2012
Jun. 30, 2011
Net change in working capital:
 
 
Decrease (increase) in accounts receivable
$ 384 
$ (100)
Increase in other current assets
(191)
(41)
Increase in accounts payable
13 
(Decrease) increase in revenues and royalties payable
(139)
130 
Decrease in other current liabilities
(45)
(87)
Net decrease (increase) in working capital
22 
(89)
Supplementary cash flow data - total operations:
 
 
Interest paid (net of capitalized interest)
169 
160 
Income taxes paid (received)
$ 88 
$ (125)
Short-Term Investments (Components Of Short-Term Investments) (Details) (USD $)
In Millions, unless otherwise specified
Jun. 30, 2012
Dec. 31, 2011
Schedule of Investments [Line Items]
 
 
Short-term investments
$ 944 
$ 1,503 
Canadian Province And Government Securities [Member]
 
 
Schedule of Investments [Line Items]
 
 
Short-term investments
644 
1,155 
U.S. Treasuries [Member]
 
 
Schedule of Investments [Line Items]
 
 
Short-term investments
300 
201 
Other
 
 
Schedule of Investments [Line Items]
 
 
Short-term investments
 
$ 147 
Accounts Receivable (Schedule Of Components Of Accounts Receivable) (Details) (USD $)
In Millions, unless otherwise specified
Jun. 30, 2012
Dec. 31, 2011
Joint interest billings
$ 199 
$ 247 
Other
47 
39 
Gross accounts receivable
1,019 
1,388 
Allowance for doubtful accounts
(14)
(9)
Net accounts receivable
1,005 
1,379 
Oil, Gas And NGL Sales [Member]
 
 
Gross accounts receivable
668 
928 
Marketing And Midstream Revenues [Member]
 
 
Gross accounts receivable
$ 105 
$ 174 
Other Current Assets (Schedule Of Components Of Other Current Assets) (Details) (USD $)
In Millions, unless otherwise specified
Jun. 30, 2012
Dec. 31, 2011
Other Current Assets [Abstract]
 
 
Derivative financial instruments
$ 787 
$ 641 
Inventories
220 
102 
Income taxes receivable
40 
35 
Current assets held for sale
 
21 
Other
120 
69 
Other current assets
$ 1,167 
$ 868 
Property And Equipment (Details) (USD $)
1 Months Ended
Apr. 30, 2012
Property And Equipment [Abstract]
 
Proceeds from divestiture of interest in joint venture
$ 900,000,000 
Interest in new ventures
33.30% 
Number of joint ventures commited to in agreement
Funding commitment for future exploration, development and drilling costs associated with new joint ventures
$ 1,600,000,000 
Other Current Liabilities (Details) (USD $)
In Millions, unless otherwise specified
Jun. 30, 2012
Dec. 31, 2011
Other Current Liabilities [Abstract]
 
 
Deferred income taxes payable
$ 253 
$ 172 
Accrued interest
142 
131 
Other
317 
475 
Other current liabilities
$ 712 
$ 778 
Debt (Narrative) (Details) (USD $)
0 Months Ended 1 Months Ended
Apr. 7, 2012
May 31, 2012
Jun. 30, 2012
Principal amount of senior notes issued
 
$ 2,500,000,000 
 
Proceeds from senior notes
 
2,465,000,000 
 
Senior Credit Facility, borrowing capacity
 
 
2,190,000,000 
Outstanding Senior Credit Facility borrowings
 
 
Debt-to-capitalization ratio
 
 
0.238 
Outstanding commercial paper
 
 
2,100,000,000 
Average borrowing rate on commercial paper borrowings
 
 
0.40% 
Senior Credit Facility, amount matured and not extended
$ 460,000,000 
 
 
Maximum [Member] |
Maximum Debt To Capitalization Ratio Allowed By Covenants [Member]
 
 
 
Debt-to-capitalization ratio
 
 
0.65 
Debt (Schedule Of Long-term Debt Instruments) (Details) (USD $)
In Millions, unless otherwise specified
1 Months Ended
May 31, 2012
Proceeds from senior notes
$ 2,465 
Debt instrument unamortized discount and issuance costs
(35)
May 15, 2017 [Member] |
1.875% Senior Notes [Member]
 
Proceeds from senior notes
750 
Debt interest rate, stated percentage
1.875% 
Debt, maturity date
May 15, 2017 
May 15, 2022 [Member] |
3.25% Senior Notes [Member]
 
Proceeds from senior notes
1,000 
Debt interest rate, stated percentage
3.25% 
Debt, maturity date
May 15, 2022 
May 15, 2042 [Member] |
4.75% Senior Notes [Member]
 
Proceeds from senior notes
$ 750 
Debt interest rate, stated percentage
4.75% 
Debt, maturity date
May 15, 2042 
Asset Retirement Obligations (Summary Of Changes In Asset Retirement Obligations) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2012
Mar. 31, 2012
Jun. 30, 2011
Jun. 30, 2012
Jun. 30, 2011
Dec. 31, 2011
Asset Retirement Obligations [Abstract]
 
 
 
 
 
 
Asset retirement obligations as of beginning of period
 
$ 1,563 
 
$ 1,563 
$ 1,497 
 
Liabilities incurred
 
 
 
33 
23 
 
Liabilities settled
 
 
 
(34)
(39)
 
Revision of estimated obligation
 
399 
 
399 
16 
 
Accretion expense on discounted obligation
28 
 
23 
55 
46 
 
Foreign currency translation adjustment
 
 
 
(10)
28 
 
Asset retirement obligations as of end of period
2,006 
 
1,571 
2,006 
1,571 
 
Less current portion
64 
 
72 
64 
72 
 
Asset retirement obligations, long-term
$ 1,942 
 
$ 1,499 
$ 1,942 
$ 1,499 
$ 1,496 
Retirement Plans (Schedule Of Net Periodic Benefit Cost For Pension And Postretirement Benefit Plans) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2012
Jun. 30, 2011
Jun. 30, 2012
Jun. 30, 2011
Pension Benefits [Member]
 
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
 
Service cost
$ 10 
$ 9 
$ 21 
$ 18 
Interest cost
15 
15 
30 
30 
Expected return on plan assets
(16)
(11)
(32)
(21)
Amortization of prior service cost
Net actuarial loss
12 
16 
Net periodic benefit cost
16 
22 
33 
45 
Postretirement Benefits [Member]
 
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
 
Service cost
 
 
Interest cost
 
 
Amortization of prior service cost
 
(1)
(1)
(1)
Net periodic benefit cost
 
 
 
$ 1 
Stockholders' Equity (Details) (USD $)
In Millions, except Share data, unless otherwise specified
3 Months Ended 6 Months Ended
Mar. 31, 2012
Jun. 30, 2011
Mar. 31, 2011
Jun. 30, 2012
Jun. 30, 2011
Dec. 31, 2009
2009 Long Term Incentive Plan [Member]
Jun. 30, 2012
2009 Plan Amendment [Member]
Schedule of Capitalization, Equity [Line Items]
 
 
 
 
 
 
 
Plan expiration date
 
 
 
Jun. 02, 2019 
 
 
 
Shares authorized for issuance
 
 
 
 
 
21,500,000 
47,000,000 
Calculated shares issued subsequent to plan amendment, other awards
 
 
 
2.38 
 
 
 
Dividends paid on common stock
 
 
 
$ 162 
$ 140 
 
 
Dividends paid on common stock, per share
$ 0.20 
$ 0.17 
$ 0.16 
 
 
 
 
Commitments And Contingencies (Details) (USD $)
In Millions, unless otherwise specified
Jun. 30, 2012
Dec. 31, 2011
Jun. 11, 2011
Devon [Member]
Jun. 11, 2011
Trevor Rees-Jones [Member]
Issued court judgment
 
 
$ 133 
$ 196 
Recorded liability due to court judgment
133 
133 
 
 
Recorded receivable due to indemnification agreement
$ 133 
$ 133 
 
 
Fair Value Measurements (Schedule Of Carrying Value And Fair Value Measurement Information For Financial Assets And Liabilities) (Details) (USD $)
In Millions, unless otherwise specified
Jun. 30, 2012
Dec. 31, 2011
Jun. 30, 2011
Dec. 31, 2010
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
 
Derivatives, assets
$ 1,005 
$ 680 
 
 
Derivatives, liabilities
(45)
(82)
 
 
Debt
(19)
(85)
(104)
(144)
Carrying Amount [Member]
 
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
 
Cash equivalents
5,841 
5,123 
 
 
Debt
(10,603)
(9,780)
 
 
Total Fair Value [Member]
 
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
 
Cash equivalents
5,841 
5,123 
 
 
Debt
(12,260)
(11,380)
 
 
Level 1 Inputs [Member]
 
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
 
Cash equivalents
850 
929 
 
 
Level 2 Inputs [Member]
 
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
 
Cash equivalents
4,991 
4,194 
 
 
Debt
(12,241)
(11,295)
 
 
Level 3 Inputs [Member]
 
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
 
Debt
(19)
(85)
 
 
Short-Term Investments [Member] |
Carrying Amount [Member]
 
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
 
Investments
944 
1,503 
 
 
Short-Term Investments [Member] |
Total Fair Value [Member]
 
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
 
Investments
944 
1,503 
 
 
Short-Term Investments [Member] |
Level 1 Inputs [Member]
 
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
 
Investments
300 
201 
 
 
Short-Term Investments [Member] |
Level 2 Inputs [Member]
 
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
 
Investments
644 
1,302 
 
 
Long-Term Investments [Member]
 
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
 
Investments
69 
84 
93 
94 
Long-Term Investments [Member] |
Carrying Amount [Member]
 
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
 
Investments
69 
84 
 
 
Long-Term Investments [Member] |
Total Fair Value [Member]
 
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
 
Investments
69 
84 
 
 
Long-Term Investments [Member] |
Level 3 Inputs [Member]
 
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
 
Investments
69 
84 
 
 
Commodity Derivatives [Member] |
Carrying Amount [Member]
 
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
 
Derivatives, assets
968 
628 
 
 
Derivatives, liabilities
(37)
(82)
 
 
Commodity Derivatives [Member] |
Total Fair Value [Member]
 
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
 
Derivatives, assets
968 
628 
 
 
Derivatives, liabilities
(37)
(82)
 
 
Commodity Derivatives [Member] |
Level 2 Inputs [Member]
 
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
 
Derivatives, assets
968 
628 
 
 
Derivatives, liabilities
(37)
(82)
 
 
Interest Rate Derivatives [Member] |
Carrying Amount [Member]
 
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
 
Derivatives, assets
37 
52 
 
 
Interest Rate Derivatives [Member] |
Total Fair Value [Member]
 
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
 
Derivatives, assets
37 
52 
 
 
Interest Rate Derivatives [Member] |
Level 2 Inputs [Member]
 
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
 
Derivatives, assets
37 
52 
 
 
Foreign Exchange Derivatives [Member] |
Carrying Amount [Member]
 
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
 
Derivatives, liabilities
(8)
 
 
 
Foreign Exchange Derivatives [Member] |
Total Fair Value [Member]
 
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
 
Derivatives, liabilities
(8)
 
 
 
Foreign Exchange Derivatives [Member] |
Level 2 Inputs [Member]
 
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
 
Derivatives, liabilities
$ (8)
 
 
 
Fair Value Measurements (Summary Of Changes In Liabilities Level 3 Fair Value Measurements) (Details) (USD $)
In Millions, unless otherwise specified
6 Months Ended
Jun. 30, 2012
Jun. 30, 2011
Debt balance at beginning of period
$ (85)
$ (144)
Foreign exchange translation adjustment
(1)
(4)
Accretion of promissory note
 
(2)
Redemptions of principal
67 
46 
Debt balance at end of period
(19)
(104)
Debt Level 3 [Member]
 
 
Debt instrument, interest rate, effective percentage
3.125% 
 
Long-Term Investments [Member]
 
 
Long-term investments balance at beginning of period
84 
94 
Investments
69 
93 
Redemptions of principal
(15)
(1)
Long-term investments balance at end of period
$ 69 
$ 93 
Discontinued Operations (Narrative) (Details) (USD $)
3 Months Ended 6 Months Ended 32 Months Ended 1 Months Ended
Jun. 30, 2012
Jun. 30, 2011
Jun. 30, 2012
Jun. 30, 2011
Jun. 30, 2012
Pre-Tax [Member]
Jun. 30, 2012
After-Tax [Member]
Mar. 31, 2012
Angola [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
 
 
 
 
 
 
 
Proceeds on divestiture of assets
 
 
 
 
$ 10,100,000,000 
$ 8,000,000,000 
$ 71,000,000 
Revenues related to discontinued operations
 
43,000,000 
 
 
 
Earnings (loss) from discontinued operations before income taxes
$ 0 
$ 2,600,000,000 
$ (16,000,000)
$ 2,600,000,000 
 
 
 
Discontinued Operations (Schedule Of Main Classes Of Assets And Liabilities Associated With Discontinued Operations) (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2011
Discontinued Operations [Abstract]
 
Other current assets
$ 21 
Property and equipment, net
132 
Accounts payable
20 
Other current liabilities
$ 28 
Segment information (Condensed Statements Of Comprehensive Earnings And Balance Sheets Of Reportable Segments) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2012
Mar. 31, 2012
Jun. 30, 2011
Jun. 30, 2012
Jun. 30, 2011
Dec. 31, 2011
Segment Reporting Information [Line Items]
 
 
 
 
 
 
Oil, gas and NGL sales
$ 1,617 
 
$ 2,200 
$ 3,532 
$ 4,060 
 
Oil, gas and NGL derivatives
665 
 
416 
810 
248 
 
Marketing and midstream revenues
277 
 
604 
714 
1,059 
 
Depreciation, depletion and amortization
684 
 
550 
1,364 
1,056 
 
Interest expense
99 
 
85 
186 
166 
 
Earnings from continuing operations before income taxes
734 
 
1,378 
1,345 
1,958 
 
Income tax expense (benefit)
257 
 
1,194 
454 
1,385 
 
Earnings from continuing operations
477 
 
184 
891 
573 
 
Property and equipment, net
27,241 1
 
22,427 
27,241 1
22,427 
24,774 
Total continuing assets
43,470 
 
38,407 1
43,470 
38,407 1
41,117 
Capital expenditures
2,369 
 
1,833 
4,714 2
3,631 
 
Assets held for sale
 
130 
130 
 
Revision of estimated obligation
 
399 
 
399 
16 
 
U.S. [Member]
 
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
 
Oil, gas and NGL sales
1,014 
 
1,438 
2,250 
2,650 
 
Oil, gas and NGL derivatives
665 
 
416 
810 
248 
 
Marketing and midstream revenues
250 
 
554 
649 
977 
 
Depreciation, depletion and amortization
439 
 
350 
870 
668 
 
Interest expense
84 
 
40 
155 
77 
 
Earnings from continuing operations before income taxes
727 
 
1,148 
1,260 
1,586 
 
Income tax expense (benefit)
259 
 
1,135 
444 
1,290 
 
Earnings from continuing operations
468 
 
13 
816 
296 
 
Property and equipment, net
18,818 1
 
14,472 
18,818 1
14,472 
 
Total continuing assets
24,916 
 
19,972 1
24,916 
19,972 1
 
Capital expenditures
1,985 
 
1,499 
3,531 2
2,751 
 
Revision of estimated obligation
 
 
 
110 
 
 
Canada [Member]
 
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
 
Oil, gas and NGL sales
603 
 
762 
1,282 
1,410 
 
Marketing and midstream revenues
27 
 
50 
65 
82 
 
Depreciation, depletion and amortization
245 
 
200 
494 
388 
 
Interest expense
15 
 
45 
31 
89 
 
Earnings from continuing operations before income taxes
 
230 
85 
372 
 
Income tax expense (benefit)
(2)
 
59 
10 
95 
 
Earnings from continuing operations
 
171 
75 
277 
 
Property and equipment, net
8,423 1
 
7,955 
8,423 1
7,955 
 
Total continuing assets
18,554 
 
18,435 1
18,554 
18,435 1
 
Capital expenditures
384 
 
334 
1,183 2
880 
 
Revision of estimated obligation
 
 
 
$ 289 
 
 
Subsequent Event (Details) (Cline And Midland-Wolfcamp Shale Plays [Member], USD $)
In Millions, unless otherwise specified
1 Months Ended
Aug. 31, 2012
Subsequent Event [Line Items]
 
Subsequent Event, Date
August 2012 
Subsequent Event, Percentage of Interest Sold
30.00% 
Sold Interest And Future Drilling Costs [Member]
 
Subsequent Event [Line Items]
 
Subsequent Event, Cash Received
$ 1,365 
Sold Interest [Member]
 
Subsequent Event [Line Items]
 
Subsequent Event, Cash Received
340 
Future Drilling Costs [Member]
 
Subsequent Event [Line Items]
 
Subsequent Event, Cash Received
$ 1,025