Devon Energy Reports Third-Quarter 2013 Results

  Devon Energy Reports Third-Quarter 2013 Results

  *Delivered 38 percent growth in U.S. oil production
  *Increased cash flow by 18 percent
  *Improved Canadian thermal oil realizations
  *Achieved positive well results in emerging oil plays
  *Exceeded company guidance for midstream operating profit

Business Wire

OKLAHOMA CITY -- November 6, 2013

Devon Energy Corporation (NYSE:DVN) today reported net earnings of $429
million or $1.06 per common share ($1.05 per diluted share) for the quarter
ended September 30, 2013. This compares with a third-quarter 2012 net loss of
$719 million or $1.80 per common share ($1.80 per diluted share).

Adjusting for items securities analysts typically exclude from their published
estimates, the company earned $526 million or $1.29 per diluted share in the
third quarter. This represents a 47 percent increase in adjusted earnings
compared to the third quarter of 2012.

Strong Oil Growth Driven by U.S. Operations

Devon continued to deliver strong oil production growth in the third quarter.
In aggregate, oil production averaged 165,000 barrels per day, a 16 percent
increase compared to the third quarter of 2012. The most significant growth
came from the company’s U.S. operations, where third-quarter oil production
increased 38 percent year over year. This dramatic increase in U.S. oil
production is largely attributable to growth from Devon’s Permian Basin and
Mississippian-Woodford Trend projects.

Total production of oil, natural gas and natural gas liquids averaged 691,000
oil-equivalent barrels (Boe) per day in the third quarter, exceeding the
mid-point of the company’s guidance range by approximately 3,000 barrels per
day. The company’s highest margin products, oil and natural gas liquids, now
account for 43 percent of total production.

“Devon delivered another quarter of solid results, both operationally and
financially,” said John Richels, president and chief executive officer. “Once
again we significantly increased light oil production in the U.S., reflecting
our continued success in the Permian Basin and emerging oil plays.
Additionally, Devon’s disciplined pursuit of high-margin production has
improved cash margins by 16 percent year over year to our highest level in the
past eight quarters.”

Key Operating Highlights

Permian Basin - Production averaged a record 82,000 Boe per day in the third
quarter. Oil production increased 29 percent compared to the third quarter of
2012 and accounts for 60 percent of Devon’s total Permian production.

The most significant contributor to the company’s Permian oil growth was the
Bone Spring play in the Delaware Basin. Devon added 24 new Bone Spring wells
to production in the third quarter, with initial 30-day rates averaging 690
Boe per day, of which 72 percent was oil. These wells exceeded Devon’s type
curve in the Bone Spring by 20 percent.

Also driving oil growth in the Permian was another strong performance from
Devon’s Wolfcamp Shale position in the Southern Midland Basin. Devon brought
26 Wolfcamp Shale wells online during the third quarter, with initial 30-day
rates averaging 400 Boe per day, of which 73 percent was oil.

Canadian Thermal Oil - In the third quarter, the significant improvement in
Western Canadian Select benchmark pricing increased price realizations at
Devon’s Jackfish thermal oil projects by 37 percent compared to the previous
quarter to $74.03 per barrel.

Net production from Devon’s Jackfish 1 and Jackfish 2 thermal oil projects
averaged 46,000 barrels of oil per day in the third quarter. This level of
production was achieved in spite of higher post-payout royalty rates at
Jackfish 1 and scheduled facility maintenance downtime at Jackfish 2.

Construction of the company’s third Jackfish thermal oil project is now
approximately 80 percent complete. Plant startup at Jackfish 3 is expected in
the third quarter of 2014.

Mississippian-Woodford Trend - Net production from Devon’s
Mississippian-Woodford Trend averaged 10,700 Boe per day in September,
representing a 68 percent increase from the second-quarter exit rate. Devon
commenced production on 49 operated wells in this emerging light-oil play
during the third quarter, with overall well results in line with target
economics. Third-quarter activity was highlighted by results in the Woodford
Oil Shale. Devon brought 10 Woodford wells online within its joint-venture
acreage with initial 30-day production rates averaging 535 Boe per day,
exceeding the company’s type curve expectations.

The company has 650,000 net acres in the greater Mississippian-Woodford Trend,
prospective for both carbonate and shale opportunities. A subset of this
acreage, approximately 200,000 net acres, resides within the company’s joint
venture with Sinopec where Devon is benefitting from drilling carries that
fund 80 percent of the well costs.

Rockies - Net oil production from the Rockies increased 34 percent compared to
the third quarter of 2012 to 11,000 barrels per day. The company completed 9
oil wells in the Rockies during the third quarter. The most notable results
were in the Powder River Basin where Devon commenced production on two
Frontier wells. Initial 30-day rates from these two Frontier wells averaged
740 Boe per day, of which more than 85 percent was light oil. Devon has
identified 600 risked locations across the Powder River Basin and expects its
drilling inventory to increase as the company de-risks this oil opportunity.

Cana-Woodford Shale - Third-quarter production averaged a record 57,000 Boe
per day. Devon established production from 39 operated wells in the quarter.
The average 30-day initial production rate from these 39 wells was 950 Boe per
day, exceeding the company’s type curve by nearly 15 percent.

Third-quarter oil and liquids production increased 58 percent compared to the
prior-year quarter to 21,000 barrels per day, comprising nearly 40 percent of
total Cana-Woodford production. The strong growth in liquids-rich production
helped increase Cana-Woodford operating margins by 39 percent year over year.

Barnett Shale - Net production averaged 1.4 billion cubic feet of natural gas
equivalent per day during the third quarter. Liquids production increased to
58,000 barrels per day, a 15 percent increase compared to the third quarter of
2012.

Upstream Revenue Increases 35 Percent; Midstream Profit Rises

Revenue from oil, natural gas and natural gas liquids sales totaled $2.3
billion in the third quarter, a 35 percent increase from the third quarter of
2012. The significant growth in revenue was attributable to improved natural
gas and oil price realizations combined with higher oil production. In the
third quarter, oil sales increased to nearly 60 percent of Devon’s total
upstream revenues.

Devon’s marketing and midstream operating profit reached $137 million in the
third quarter. This result exceeded the company’s guidance and represents a 25
percent increase compared to the year-ago quarter. The increase in operating
profit was attributable to higher throughput at the company’s newly expanded
Cana-Woodford and Barnett Shale processing facilities, higher natural gas
prices and strong cost controls.

The company’s pre-tax expenses totaled $1.7 billion in the third quarter of
2013. On a unit-of-production basis, pre-tax expenses were 5 percent higher
than the third quarter of 2012. The higher expenses were due to scheduled
facility maintenance costs at Devon’s Jackfish 2 thermal oil project and
higher activity levels in oil-driven projects. In general, oil wells have
higher operating costs than gas wells, but also have higher margins in the
current commodity price environment. The company’s third-quarter cash margins
increased 16 percent year over year, reflecting the benefits of the increase
in higher margin oil production.

Operating Cash Flow Increases 18 Percent

Operating cash flow reached $1.6 billion in the third quarter of 2013, an 18
percent increase compared to the year-ago period. Combined with $282 million
of cash payments from the closing of minor asset sales during the quarter,
Devon’s third-quarter cash inflows totaled $1.9 billion. These sources of cash
allowed the company to comfortably fund its $1.7 billion capital program in
the third quarter.

Devon maintained its strong balance sheet and liquidity position during the
quarter. At September 30, 2013, the company held cash balances totaling $4.3
billion, and Devon’s net debt to adjusted capitalization ratio was 22 percent.

Midstream MLP Update

In October, Devon announced the signing of definitive agreements to combine
substantially all of its U.S. midstream assets with Crosstex’s assets to form
a new midstream business. The new business will consist of two publicly traded
entities: a master limited partnership and a general partner entity
(collectively the “New Company”). A name for the New Company will be announced
prior to the closing of the transaction.

The transaction combines Devon’s large Texas and Oklahoma midstream platform
with Crosstex’s positions in the Barnett Shale, Permian Basin, Eagle Ford,
Haynesville, Gulf Coast, Utica and Marcellus. The combination creates a
geographically diverse portfolio of midstream assets, a broad range of
predominately fee-based services, and an increasing focus on liquids-based
growth projects.

The New Company’s investment-grade credit profile will enable it to secure and
execute sizeable organic development and acquisition opportunities across the
midstream value chain. These characteristics position the new business to
deliver attractive long-term growth. This transaction is expected to close in
the first quarter of 2014.

Non-GAAP Reconciliations

Pursuant to regulatory disclosure requirements, Devon is required to reconcile
non-GAAP financial measures to the related GAAP information (GAAP refers to
generally accepted accounting principles). Adjusted earnings, net debt, and
adjusted capitalization are non-GAAP financial measures referenced within this
release. Reconciliations of these non-GAAP measures are provided beginning on
page 11.

Conference Call to be Webcast Today

Devon will discuss its third-quarter 2013 financial and operating results in a
conference call webcast today. The webcast will begin at 10 a.m. Central Time
(11 a.m. Eastern Time) and may be accessed from Devon’s home page at
www.devonenergy.com.

This press release includes "forward-looking statements" as defined by the
Securities and Exchange Commission (SEC). Such statements are those concerning
strategic plans, expectations and objectives for future operations. All
statements, other than statements of historical facts, included in this press
release that address activities, events or developments that the company
expects, believes or anticipates will or may occur in the future are
forward-looking statements. Such statements are subject to a number of
assumptions, risks and uncertainties, many of which are beyond the control of
the company. Statements regarding future drilling and production are subject
to all of the risks and uncertainties normally incident to the exploration for
and development and production of oil and gas. These risks include, but are
not limited to, the volatility of oil, natural gas and NGL prices;
uncertainties inherent in estimating oil, natural gas and NGL reserves; the
extent to which we are successful in acquiring and discovering additional
reserves; unforeseen changes in the rate of production from our oil and gas
properties; uncertainties in future exploration and drilling results;
uncertainties inherent in estimating the cost of drilling and completing
wells; drilling risks; competition for leases, materials, people and capital;
midstream capacity constraints and potential interruptions in production; risk
related to our hedging activities; environmental risks; political or
regulatory changes; and our limited control over third parties who operate our
oil and gas properties. Investors are cautioned that any such statements are
not guarantees of future performance and that actual results or developments
may differ materially from those projected in the forward-looking statements.
The forward-looking statements in this press release are made as of the date
of this press release, even if subsequently made available by Devon on its
website or otherwise. Devon does not undertake any obligation to update the
forward-looking statements as a result of new information, future events or
otherwise.

The SEC permits oil and gas companies, in their filings with the SEC, to
disclose only proved, probable and possible reserves that meet the SEC's
definitions for such terms, and price and cost sensitivities for such
reserves, and prohibits disclosure of resources that do not constitute such
reserves.This release may contain certain terms, such as resource potential
andexploration target size.These estimates are by their nature more
speculative than estimates of proved, probable and possible reserves and
accordingly are subject to substantially greater risk of being actually
realized. The SEC guidelines strictly prohibit us from including these
estimates in filings with the SEC. U.S. investors are urged to consider
closely the disclosure in our Form 10-K, available at www.devonenergy.com. You
can also obtain this form from the SEC by calling 1-800-SEC-0330 or from the
SEC’s website at www.sec.gov.

Devon Energy Corporation is an Oklahoma City-based independent energy company
engaged in oil and gas exploration and production. Devon is a leading
U.S.-based independent oil and gas producer and is included in the S&P 500
Index. For more information about Devon, please visit our website at
www.devonenergy.com.

                                                  
                                                         
DEVON ENERGY CORPORATION
FINANCIAL AND OPERATIONAL INFORMATION
                                                         
PRODUCTION (net of           Quarter Ended               Nine Months Ended
royalties)
                             September 30,               September 30,
Total Period                 2013       2012          2013       2012
Production:
Natural Gas (Bcf)
United States                178.0         190.2         534.4         565.3
Canada                       41.2          44.8          125.0         142.7
Total Natural Gas            219.2         235.0         659.4         708.0
Oil / Bitumen (MMBbls)
United States                7.5           5.4           20.5          15.5
Canada                       7.7           7.7           24.7          24.1
Total Oil / Bitumen          15.2          13.1          45.2          39.6
Natural Gas Liquids
(MMBbls)
United States                10.9          9.3           31.1          26.7
Canada                       0.9           0.8           2.7           3.0
Total Natural Gas            11.8          10.1          33.8          29.7
Liquids
Oil Equivalent (MMBoe)
United States                48.1          46.4          140.6         136.5
Canada                       15.4          16.0          48.2          50.8
Total Oil Equivalent         63.5          62.4          188.8         187.3
                                                                       
                                                                       
                             Quarter Ended               Nine Months Ended
                             September 30,               September 30,
Average Daily                2013          2012          2013          2012
Production:
Natural Gas (MMcf)
United States                1,934.8       2,067.1       1,957.6       2,063.0
Canada                       448.0         487.2         457.9         520.8
Total Natural Gas            2,382.8       2,554.3       2,415.5       2,583.8
Oil / Bitumen (MBbls)
United States                81.4          58.9          75.1          56.6
Canada                       83.5          83.6          90.4          87.8
Total Oil / Bitumen          164.9         142.5         165.5         144.4
Natural Gas Liquids
(MBbls)
United States                118.7         100.8         113.8         97.7
Canada                       10.0          9.2           9.9           10.8
Total Natural Gas            128.7         110.0         123.7         108.5
Liquids
Oil Equivalent (MBoe)
United States                522.6         504.2         515.2         498.1
Canada                       168.2         174.0         176.6         185.4
Total Oil Equivalent         690.8         678.2         691.8         683.5
                                                                       

                                                
DEVON ENERGY CORPORATION
FINANCIAL AND OPERATIONAL INFORMATION
                                                       
BENCHMARK           Quarter Ended                      Nine Months Ended
PRICES
(average            September 30,                      September 30,
prices)
                    2013             2012           2013       2012
Natural Gas
($/Mcf) –           $  3.58             $  2.80        $ 3.67        $ 2.58
Henry Hub
Oil ($/Bbl) –
West Texas          $  105.94           $  92.32       $ 98.18       $ 96.23
Intermediate
(Cushing)
                                                                     
                                                                     
REALIZED            Quarter Ended September 30, 2013
PRICES
                    Oil / Bitumen       Gas            NGLs          Total
                    (Per Bbl)           (Per           (Per          (Per Boe)
                                        Mcf)           Bbl)
United States       $  101.40           $  3.08        $ 24.36       $ 32.72
Canada              $  79.88           $  2.67        $ 48.48       $ 49.65 
Realized
price without       $  90.51            $  3.00        $ 26.23       $ 36.84
hedges
Cash                $  (4.00   )        $  0.24        $ 0.02        $ (0.12 )
settlements
Realized
price,
including           $  86.51           $  3.24        $ 26.25       $ 36.72 
cash
settlements
                                                                     
                                                                     
                    Quarter Ended September 30, 2012
                    Oil / Bitumen       Gas            NGLs          Total
                    (Per Bbl)           (Per           (Per          (Per Boe)
                                        Mcf)           Bbl)
United States       $  84.84            $  2.37        $ 25.07       $ 24.64
Canada              $  58.75           $  2.31        $ 46.41       $ 37.14 
Realized
price without       $  69.53            $  2.36        $ 26.86       $ 27.85
hedges
Cash                $  6.58            $  0.66        $ 0.03        $ 3.89  
settlements
Realized
price,
including           $  76.11           $  3.02        $ 26.89       $ 31.74 
cash
settlements
                                                                     
                                                                     
                    Nine Months Ended September 30, 2013
                    Oil / Bitumen       Gas            NGLs          Total
                    (Per Bbl)           (Per           (Per          (Per Boe)
                                        Mcf)           Bbl)
United States       $  93.94            $  3.13        $ 25.12       $ 31.12
Canada              $  60.14           $  3.05        $ 46.54       $ 41.29 
Realized
price without       $  75.48            $  3.11        $ 26.83       $ 33.71
hedges
Cash                $  0.02            $  0.14        $ 0.08        $ 0.50  
settlements
Realized
price,
including           $  75.50           $  3.25        $ 26.91       $ 34.21 
cash
settlements
                                                                     
                                                                     
                    Nine Months Ended September 30, 2012
                    Oil / Bitumen       Gas            NGLs          Total
                    (Per Bbl)           (Per           (Per          (Per Boe)
                                        Mcf)           Bbl)
United States       $  90.79            $  2.12        $ 29.31       $ 24.86
Canada              $  58.56           $  2.26        $ 48.92       $ 36.93 
Realized
price without       $  71.19            $  2.15        $ 31.27       $ 28.14
hedges
Cash                $  3.47            $  0.75        $ 0.02        $ 3.56  
settlements
Realized
price,
including           $  74.66           $  2.90        $ 31.29       $ 31.70 
cash
settlements
                                                                             

                                               
DEVON ENERGY CORPORATION
FINANCIAL AND OPERATIONAL INFORMATION
                                                      
CONSOLIDATED
STATEMENTS OF        Quarter Ended                    Nine Months Ended
OPERATIONS
(in millions,
except per           September 30,                    September 30,
share amounts)
                     2013         2012             2013         2012
Revenues:
Oil, gas and         $ 2,341         $ 1,738          $ 6,367         $ 5,270
NGL sales
Oil, gas and
NGL                    (141  )         (295   )         (95   )         515
derivatives
Marketing and
midstream             520           422            1,511         1,136 
revenues
Total revenues        2,720         1,865          7,783         6,921 
Expenses and
other, net:
Lease
operating              600             513              1,684           1,540
expenses
Marketing and
midstream
operating              383             313              1,128           847
costs and
expenses
Depreciation,
depletion and          691             716              2,069           2,080
amortization
General and
administrative         143             150              460             494
expenses
Taxes other
than income            115             104              353             306
taxes
Interest               104             110              322             296
expense
Restructuring          4               -                50              -
costs
Asset                  7               1,128            1,960           1,128
impairments
Other, net            34            (8     )        83            46    
Total expenses        2,081         3,026          8,109         6,737 
and other, net
Earnings
(loss) from
continuing             639             (1,161 )         (326  )         184
operations
before income
taxes
Current income
tax expense            (50   )         (41    )         82              8
(benefit)
Deferred
income tax            260           (401   )        (181  )        4     
expense
(benefit)
Earnings
(loss) from            429             (719   )         (227  )         172
continuing
operations
Loss from
discontinued          -             -              -             (21   )
operations,
net of tax
Net earnings         $ 429          $ (719   )       $ (227  )       $ 151   
(loss)
                                                                      
Basic net
earnings
(loss) per
share:
Basic earnings
(loss) from
continuing           $ 1.06          $ (1.80  )       $ (0.57 )       $ 0.42
operations per
share
Basic loss
from
discontinued          -             -              -             (0.05 )
operations per
share
Basic net
earnings             $ 1.06         $ (1.80  )       $ (0.57 )       $ 0.37  
(loss) per
share
                                                                      
Diluted net
earnings
(loss) per
share:
Diluted
earnings
(loss) from          $ 1.05          $ (1.80  )       $ (0.57 )       $ 0.42
continuing
operations per
share
Diluted loss
from
discontinued          -             -              -             (0.05 )
operations per
share
Diluted net
earnings             $ 1.05         $ (1.80  )       $ (0.57 )       $ 0.37  
(loss) per
share
                                                                      
Weighted
average common
shares
outstanding:
Basic                  406             405              406             404
Diluted                407             405              407             405
                                                                              

                                                          
DEVON ENERGY CORPORATION
FINANCIAL AND OPERATIONAL INFORMATION
                                                                       
CONSOLIDATED
STATEMENTS OF
CASH FLOWS
(in millions)       Quarter Ended                     Nine Months Ended
                    September 30,                     September 30,
                    2013             2012             2013             2012
Cash flows
from
operating
activities:
Net earnings        $ 429            $ (719   )       $ (227   )       $ 151
(loss)
Loss from
discontinued          -                -                -                21
operations,
net of tax
Adjustments
to reconcile
earnings
(loss) from
continuing
operations to
net cash from
operating
activities:
Depreciation,
depletion and         691              716              2,069            2,080
amortization
Asset                 7                1,128            1,960            1,128
impairments
Deferred
income tax            260              (401   )         (181   )         4
expense
(benefit)
Unrealized
change in
fair value of         166              535              212              173
financial
instruments
Other noncash        30             22             206            136    
charges
Net cash from
operating
activities            1,583            1,281            4,039            3,693
before
balance sheet
changes
Net decrease
(increase) in         24               34               (104   )         48
working
capital
Decrease in
long-term             (50    )         (25    )         (28    )         (22    )
other assets
Increase
(decrease) in
long-term            44             71             92             68     
other
liabilities
Cash from
operating
activities -          1,601            1,361            3,999            3,787
continuing
operations
Cash from
operating
activities -         -              -              -              26     
discontinued
operations
Net cash from
operating            1,601          1,361          3,999          3,813  
activities
                                                                       
Cash flows
from
investing
activities:
Capital               (1,650 )         (1,961 )         (5,219 )         (6,228 )
expenditures
Proceeds from
property and          282              533              316              1,397
equipment
divestitures
Purchases of
short-term            -                (1,498 )         (1,076 )         (2,969 )
investments
Redemptions
of short-term         869              278              3,419            2,308
investments
Other                1              4              83             18     
Cash from
investing
activities -          (498   )         (2,644 )         (2,477 )         (5,474 )
continuing
operations
Cash from
investing
activities -         -              -              -              58     
discontinued
operations
Net cash from
investing            (498   )        (2,644 )        (2,477 )        (5,416 )
activities
                                                                       
Cash flows
from
financing
activities:
Proceeds from
borrowings of
long-term             -                -                -                2,465
debt, net of
issuance
costs
Net
short-term
debt                  (82    )         600              (1,577 )         (898   )
borrowings
(repayments)
Credit
facility              -                -                -                750
borrowings
Credit
facility              -                -                -                (750   )
repayments
Proceeds from
stock option          -                3                1                25
exercises
Dividends
paid on               (89    )         (80    )         (259   )         (242   )
common stock
Excess tax
benefits
related to           -              4              5              5      
share-based
compensation
Net cash from
financing            (171   )        527            (1,830 )        1,355  
activities
Effect of
exchange rate        25             (7     )        (9     )        31     
changes on
cash
Net change in
cash and cash         957              (763   )         (317   )         (217   )
equivalents
                                                                       
Cash and cash
equivalents          3,363          6,101          4,637          5,555  
at beginning
of period
Cash and cash
equivalents         $ 4,320         $ 5,338         $ 4,320         $ 5,338  
at end of
period
                                                                                

                                                           
DEVON ENERGY CORPORATION
FINANCIAL AND OPERATIONAL INFORMATION
                                                                  
CONSOLIDATED BALANCE SHEETS
(in millions)                                 September 30,       December 31,
                                              2013                2012
Current assets:
Cash and cash equivalents                     $  4,320            $  4,637
Short-term investments                           -                   2,343
Accounts receivable                              1,520               1,245
Other current assets                            475               746     
Total current assets                            6,315             8,971   
Property and equipment, at cost:
Oil and gas, based on full cost
accounting:
Subject to amortization                          73,009              69,410
Not subject to amortization                     3,319             3,308   
Total oil and gas                                76,328              72,718
Other                                           6,050             5,630   
Total property and equipment, at cost            82,378              78,348
Less accumulated depreciation,                  (54,416  )         (51,032 )
depletion and amortization
Property and equipment, net                     27,962            27,316  
Goodwill                                         5,954               6,079
Other long-term assets                          615               960     
Total assets                                  $  40,846          $  43,326  
                                                                  
Current liabilities:
Accounts payable                              $  1,269            $  1,451
Revenues and royalties payable                   807                 750
Short-term debt                                  2,112               3,189
Other current liabilities                       594               613     
Total current liabilities                       4,782             6,003   
Long-term debt                                   7,956               8,455
Asset retirement obligations                     2,161               1,996
Other long-term liabilities                      830                 901
Deferred income taxes                            4,505               4,693
Stockholders' equity:
Common stock                                     41                  41
Additional paid-in capital                       3,777               3,688
Retained earnings                                15,292              15,778
Accumulated other comprehensive                 1,502             1,771   
earnings
Total stockholders' equity                      20,612            21,278  
Total liabilities and stockholders'           $  40,846          $  43,326  
equity
Common shares outstanding                        406                 406
                                                                             


DEVON ENERGY CORPORATION
FINANCIAL AND OPERATIONAL INFORMATION


COMPANY OPERATED RIGS                                 
                                               As of September 30,
                                               2013           2012
Number of Company Operated Rigs Running:
United States                                  60             65
Canada                                         4              4
Total                                          64             69
                                                              

KEY OPERATING STATISTICS                                    
BY REGION
                                Quarter Ended September 30, 2013
                                Avg.              Operated Rigs       Gross
                                Production        at                  Wells
                                (MBOED)           September 30,       Drilled
                                                  2013
Barnett Shale                   226.3             5                   44
Canadian Thermal Oil            45.6              1                   1
Cana-Woodford Shale             57.0              10                  59
Granite Wash                    21.0              3                   30
Gulf Coast / East Texas         52.9              -                   -
Lloydminster                    28.6              2                   50
Mississippian                   8.8               15                  66
Permian Basin                   82.0              23                  100
Rocky Mountains                 54.3              4                   18
Other                           114.3             1                   16
Total                           690.8             64                  384
                                                                      

CAPITAL EXPENDITURES                                         
(in millions)                         Quarter Ended September 30, 2013
                                      United States       Canada       Total
Exploration                           $    191            $  37        $ 228
Development                               924              225        1,149
Exploration and development           $    1,115          $  262       $ 1,377
capital
Capitalized G&A                                                          88
Capitalized interest                                                     11
Midstream capital                                                        182
Other capital                                                           35
Total Operations                                                       $ 1,693
                                                                       
                                      Nine Months Ended September 30, 2013
                                      United States       Canada       Total
Exploration                           $    468            $  115       $ 583
Development                               2,725            818        3,543
Exploration and development           $    3,193          $  933       $ 4,126
capital
Capitalized G&A                                                          271
Capitalized interest                                                     30
Midstream capital                                                        529
Other capital                                                           71
Total Operations                                                       $ 5,027
                                                                         


DEVON ENERGY CORPORATION
FINANCIAL AND OPERATIONAL INFORMATION


NON-GAAP FINANCIAL MEASURES

The United States Securities and Exchange Commission has adopted disclosure
requirements for public companies such as Devon concerning Non-GAAP financial
measures. (GAAP refers to generally accepted accounting principles). The
company must reconcile the Non-GAAP financial measure to related GAAP
information. Devon's reported net earnings include items of income and expense
that are typically excluded by securities analysts in their published
estimates of the company's financial results. The following tables summarize
the effects of these items on third-quarter 2013 earnings.

RECONCILIATION TO GAAP INFORMATION                          
(in millions)
                                              Quarter Ended September 30, 2013
                                              Before-Tax            After-Tax
Net earnings (GAAP)                                                 $  429
Oil, gas and NGL derivatives                  134                      84
Interest rate and other financial             10                       6
instruments
Asset impairments                             7                        4
Restructuring costs                           4                       3     
Adjusted earnings (Non-GAAP)                                        $  526   
Diluted share count                                                    407
Adjusted diluted earnings per share                                 $  1.29  
(Non-GAAP)
                                                                    
                                              Quarter Ended September 30, 2012
                                              Before-Tax            After-Tax
Net earnings (GAAP)                                                 $  (719  )
Oil, gas and NGL derivatives                  538                      349
Interest rate and other financial             9                        6
instruments
Asset impairments                             1,128                   719   
Adjusted earnings (Non-GAAP)                                        $  355   
Diluted share count                                                    405
Adjusted diluted earnings per share                                 $  0.88  
(Non-GAAP)
                                                                             


DEVON ENERGY CORPORATION
FINANCIAL AND OPERATIONAL INFORMATION


NON-GAAP FINANCIAL MEASURES

Devon believes that using net debt for the calculation of “net debt to
adjusted capitalization” provides a better measure than using debt. Devon
defines net debt as debt less cash, cash equivalents and short-term
investments. Devon believes that netting these sources of cash against debt
provides a clearer picture of the future demands on cash to repay debt.

RECONCILIATION TO GAAP INFORMATION               
(in millions)
                                         September 30,
                                         2013           2012
Total debt (GAAP)                        $ 10,068       $ 11,235
Adjustments:
Cash and short-term investments           4,320         7,502
Net debt (Non-GAAP)                      $ 5,748        $ 3,733
                                                        
Total debt                               $ 10,068       $ 11,235
Stockholders' equity                      20,612        21,781
Total capitalization (GAAP)              $ 30,680       $ 33,016
                                                        
Net debt                                 $ 5,748        $ 3,733
Stockholders' equity                      20,612        21,781
Adjusted capitalization (Non-GAAP)       $ 26,360       $ 25,514

Contact:

Devon Energy Corporation
Investor Contacts
Scott Coody, 405-552-4735
or
Shea Snyder, 405-552-4782
or
Media Contact
Chip Minty, 405-228-8647
 
Press spacebar to pause and continue. Press esc to stop.