Devon Energy Reports Fourth-Quarter and Full-Year 2013 Results

  Devon Energy Reports Fourth-Quarter and Full-Year 2013 Results

  *Achieved record fourth-quarter oil production exceeding company guidance
  *Delivered 32 percent growth in fourth-quarter U.S. oil production
  *Increased fourth-quarter operating cash flow by 26 percent
  *Repatriated $4.3 billion of foreign cash during 2013
  *Increased proved oil reserves to highest level in company history

Business Wire

OKLAHOMA CITY -- February 19, 2014

Devon Energy Corporation (NYSE:DVN) today reported net earnings of $207
million or $0.51 per common share ($0.51 per diluted share) for the quarter
ended December 31, 2013. This compares with a fourth-quarter 2012 net loss of
$357 million or $0.89 per common share ($0.89 per diluted share).

Adjusting for items securities analysts typically exclude from their published
estimates, the company earned $447 million or $1.10 per diluted share in the
fourth quarter. This represents a 49 percent increase in adjusted earnings
compared to the fourth quarter of 2012.

Operating cash flow in the fourth quarter of 2013 totaled $1.4 billion, a 26
percent increase compared to the year-ago period. For the year ended December
31, 2013, Devon generated operating cash flow of $5.4 billion. Including $419
million of cash received from asset sales, the company’s total cash inflows
reached $5.9 billion for 2013.

“2013 was a year of strong execution and exciting change for Devon,” said John
Richels, president and chief executive officer. “Our drilling programs not
only drove impressive oil production growth, but also expanded margins and
improved operating cash flow. Additionally, we high-graded our portfolio
through an accretive Eagle Ford Shale acquisition, an innovative midstream
combination, and initiated an asset divestiture program. These actions provide
a platform for Devon to achieve attractive high-margin growth in 2014 and for
many years to come.”

Key Operating Highlights

Permian Basin – Production averaged a record 86,000 oil-equivalent barrels
(Boe) per day in the fourth quarter, a 29 percent increase compared to the
fourth quarter of 2012. Light oil production accounted for approximately 60
percent of Devon’s total Permian production.

The Bone Spring oil play in the Delaware Basin was a significant contributor
to the company’s growth in the Permian. Devon added 21 new Bone Spring wells
to production in the fourth quarter, with initial 30-day rates averaging 800
Boe per day, of which 70 percent was light oil. These outstanding initial
production rates exceeded the company’s Bone Spring type curve by about 40
percent.

Also in the Delaware Basin, Devon commenced production on its first horizontal
Wolfcamp well in Ward County, Texas. Initial 30-day production from the
Martinsville 120-4H averaged 950 Boe per day, including 800 barrels of light
oil per day. The company has identified more than 100,000 net acres
prospective for the Wolfcamp within its Delaware Basin position and will
continue to derisk this emerging oil opportunity in 2014.

In the Southern Midland Basin, Devon delivered strong results from its oil
development program in the Wolfcamp Shale. During the fourth quarter, the
company brought 24 Wolfcamp Shale wells online with initial 30-day rates
averaging 410 Boe per day.

Canadian Thermal Oil – Gross production from Devon’s Jackfish 1 and Jackfish 2
thermal oil projects averaged 58,000 barrels of oil per day in the fourth
quarter, or 53,000 barrels per day after royalties. This represents a 16
percent increase in net production compared to the third quarter of 2013. The
growth in fourth-quarter production was attributable to the resumption of
operations at Jackfish 2 after scheduled maintenance downtime during the third
quarter.

Construction of the company’s Jackfish 3 thermal oil project is now nearly
complete. Plant startup at Jackfish 3 is expected in the third quarter of this
year. At peak production, Devon’s three 100 percent-owned Jackfish projects
are expected to generate nearly $1 billion of free cash flow annually for the
company.

Barnett Shale – Net production averaged 1.4 billion cubic feet of natural gas
equivalent per day in 2013. Barnett liquids production increased to an average
of 57,000 barrels per day in 2013, a 17 percent increase compared to 2012.

Anadarko Basin – Fourth-quarter Anadarko Basin production averaged a record
85,000 Boe per day. Growth from Devon’s Cana-Woodford Shale and Granite Wash
plays drove a 10 percent year-over-year increase in net production. With
drilling focused in the most liquids-prone acreage, oil and natural gas
liquids production increased to more than 40 percent of total production in
the Anadarko Basin.

Mississippian-Woodford Trend – Net production from Devon’s emerging
Mississippian-Woodford Trend averaged 16,000 Boe per day in December,
representing a 47 percent increase from the September average and exceeding
the company’s projected exit rate.

Record Oil Production Driven by Permian Basin

Devon delivered strong oil production growth in the fourth quarter of 2013.
Companywide oil production set a new quarterly record averaging 177,000
barrels per day, exceeding the top end of the company’s guidance range. This
represents a 17 percent increase in oil production compared to the fourth
quarter of 2012 and a 7 percent increase over the third quarter of 2013. Led
by the Permian Basin, the most significant growth came from the company’s U.S.
operations, where oil production increased 32 percent year over year. Total
production increased to an average of 696,000 Boe per day in the fourth
quarter of 2013, surpassing the midpoint of the company’s previous forecast by
6,000 Boe per day.

In November, the company announced an initiative to monetize non-core assets
in both the U.S. and Canada, sharpening its focus on high-growth retained
properties. The assets identified for divestiture averaged 144,000 Boe per day
in the fourth quarter, of which almost 80 percent was natural gas. Excluding
production associated with these non-core assets, top-line production in the
fourth quarter from Devon’s retained asset base increased 7 percent compared
to the fourth quarter of 2012. Reconciliations of retained and non-core asset
production are provided later in this release.

Upstream Revenue Increases 19 Percent; Cash Margins Expand

Revenue from oil, natural gas and natural gas liquids sales totaled $8.5
billion in 2013, a 19 percent increase compared to 2012. The significant
growth in revenue was attributable to higher oil production and improved
natural gas realizations. In 2013, oil sales accounted for more than 50
percent of Devon’s total upstream revenues.

Devon’s marketing and midstream operating profit reached $513 million in 2013.
This result represents a 25 percent increase compared to the previous year.
The increase in operating profit was attributable to higher natural gas prices
and strong cost management.

The company’s pre-tax cash costs totaled $14.96 per Boe in 2013, a 4 percent
increase compared to 2012. The higher unit cost is attributable to Devon’s
dramatic increase in oil production. In general, oil wells have higher
operating costs than gas wells, but also have higher margins in the current
commodity price environment. In the fourth quarter, the company’s cash margin
per Boe increased 15 percent year over year, reflecting the benefits of the
increase in higher-margin oil production.

Foreign Cash Repatriated; Balance Sheet Remains Strong

During the fourth quarter, Devon repatriated $2.3 billion of foreign cash to
the U.S. For the full-year 2013, the company repatriated $4.3 billion of
foreign cash to the U.S. at an estimated effective tax rate of 4 percent. At
December 31, 2013, the company’s cash balances totaled $6.1 billion, and its
investment-grade balance sheet had a net debt to adjusted capitalization ratio
of only 23 percent.

In December, Devon issued $2.25 billion of senior notes through a combination
of two-, three- and five-year offerings and entered into an undrawn $2 billion
senior term loan facility. Proceeds from the senior notes, the term loan
facility, and a portion of the company’s cash on hand will fund Devon’s
recently announced Eagle Ford acquisition.

Oil Reserves Climb to Record Levels

At December 31, 2013, Devon increased its proved oil reserves to a record 837
million barrels. During the year, the company’s oil-focused drilling program
added 112 million barrels of oil reserves through successful drilling
(extensions, discoveries and revisions other than price). This represents a
replacement rate of approximately 180 percent of the oil produced during 2013.

In aggregate, Devon’s estimated proved reserves of oil, natural gas and
natural gas liquids were 3.0 billion oil-equivalent barrels at year end.
Extensions and discoveries through successful drilling, combined with price
revisions related to higher natural gas prices, increased proved reserves by
355 million Boe compared to year-end 2012. Divestitures and revisions other
than price decreased proved reserves by 103 million Boe in 2013. Revisions
other than price were primarily attributable to proved undeveloped
gas-weighted locations no longer expected to be drilled given the commodity
price environment.

Overall, the company’s reserve life index (proved reserves divided by annual
production) remained at approximately 12 years, and its proved undeveloped
reserves accounted for only 24 percent of proved reserves. Proved reserves
associated with assets identified for divestiture totaled 381 million Boe at
December 31, 2013, of which approximately 70 percent were natural gas.

Eagle Ford and EnLink Midstream Update

In November, Devon announced the acquisition of GeoSouthern Energy’s assets in
the Eagle Ford oil play. The acquired Eagle Ford acreage includes 82,000 net
acres located in DeWitt and Lavaca counties. This acreage is located in the
best part of the Eagle Ford, consistently yielding some of the highest initial
production rates and estimated ultimate recoveries in the entire play.

The Eagle Ford transaction is on track to close by the end of the first
quarter of 2014. Net production is expected to grow at a compound annual
growth rate of 25 percent over the next several years, reaching a peak
production rate of approximately 140,000 Boe per day. Devon’s development
program in 2014 is self-funding and expected to generate significant free cash
flow beginning in 2015. The risked recoverable resource associated with this
position is estimated at 400 million barrels of oil equivalent, of which more
than 60 percent is classified as proved reserves.

Also in 2013, Devon announced the strategic combination of its U.S. midstream
assets with Crosstex to form EnLink Midstream. EnLink Midstream will consist
of two publicly traded entities: the master limited partnership, EnLink
Midstream Partners LP, and a publicly traded general partner entity, EnLink
Midstream LLC. This transaction is expected to close in the first quarter of
2014. The common units of both EnLink Midstream Partners LP and EnLink
Midstream LLC will trade on the New York Stock Exchange under the symbols
“ENLK” and “ENLC”, respectively.

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 later in this
release.

Conference Call to be Webcast Today

Devon will discuss its fourth-quarter and full-year 2013 financial and
operating results in a conference call webcast today. The webcast will begin
at 10 a.m. Central (11 a.m. Eastern ) 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 changes;
changes in laws or regulations; our limited control over third parties who
operate our oil and gas properties; our ability to successfully complete
mergers, acquisitions and divestitures; and other risks identified in our Form
10-K and our other filings with the SEC. Investors are cautioned that any such
statements are not guarantees of future performance and that actual results or
developments may differ materially from those projected in the forward-looking
statements. The forward-looking statements in this press release are made as
of the date of this press release, even if subsequently made available by
Devon on its website or otherwise. Devon does not undertake any obligation to
update the forward-looking statements as a result of new information, future
events or otherwise.

The SEC permits oil and gas companies, in their filings with the SEC, to
disclose only proved, probable and possible reserves that meet the SEC's
definitions for such terms, and price and cost sensitivities for such
reserves, and prohibits disclosure of resources that do not constitute such
reserves.This release may contain certain terms, such as resource potential
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               Year Ended
royalties)
                            December 31,                December 31,
Total Period                 2013       2012          2013       2012
Production:
Natural Gas (Bcf)
   United States             174.3         186.7         708.7         751.9
   Canada                    39.9          43.3          164.9         186.1
   Total Natural Gas         214.2         230.0         873.6         938.0
Oil / Bitumen (MMBbls)
  United States             7.9           6.0           28.3          21.5
  Canada                    8.4           7.9           33.1          32.0
   Total Oil / Bitumen       16.3          13.9          61.4          53.5
Natural Gas Liquids
(MMBbls)
  United States             11.3          9.3           42.3          36.1
  Canada                    0.8           0.9           3.6           3.8
   Total Natural Gas         12.1          10.2          45.9          39.9
   Liquids
Oil Equivalent (MMBoe)
  United States             48.2          46.4          188.8         182.9
  Canada                    15.9          16.0          64.1          66.8
   Total Oil                 64.1          62.4          252.9         249.7
   Equivalent
                                                                       
                                                                       
                             Quarter Ended               Year Ended
                             December 31,                December 31,
Average Daily                2013          2012          2013          2012
Production:
Natural Gas (MMcf)
   United States             1,894.7       2,029.0       1,941.8       2,054.5
   Canada                    433.3         471.2         451.6         508.3
   Total Natural Gas         2,328.0       2,500.2       2,393.4       2,562.8
Oil / Bitumen (MBbls)
   United States             85.3          64.8          77.7          58.7
   Canada                    91.4          86.2          90.6          87.4
   Total Oil / Bitumen       176.7         151.0         168.3         146.1
Natural Gas Liquids
(MBbls)
   United States             122.4         101.4         116.0         98.6
   Canada                    9.1           9.5           9.7           10.5
   Total Natural Gas         131.5         110.9         125.7         109.1
   Liquids
Oil Equivalent (MBoe)
   United States             523.4         504.4         517.3         499.7
   Canada                    172.8         174.2         175.6         182.6
   Total Oil                 696.2         678.6         692.9         682.3
   Equivalent

                                                           
                                                                     
                                                                     
DEVON ENERGY CORPORATION

FINANCIAL AND OPERATIONAL INFORMATION
                                                                     
KEY OPERATING STATISTICS BY
REGION
                                  Quarter Ended December 31, 2013
                                  Avg.                Gross          Operated
                                  Production          Wells          Rigs at
                                  (MBOED)             Drilled        December
                                                                     31, 2013
Permian Basin                     85.7                73             24
Canadian Heavy Oil                84.5                58             2
Barnett Shale                     223.9               31             5
Anadarko Basin                    85.3                22             11
Mississippian-Woodford            14.1                88             15
Trend
Rockies                           21.2                8              3
Other Assets                      37.3                5              -
Core & Emerging Assets -          552.0               285            60
Total
Canadian Conventional             88.2                31             4
(Non-Core)
Rockies (None-Core)               29.7                -              2
Gulf Coast (Non-Core)             18.6                3              1
Mid-Continent (Non-Core)          7.7                 -              -
Devon - Total                     696.2               319            67
                                                                     
                                                                     
                                  Year Ended December 31, 2013
                                  Avg.                Gross
                                  Production          Wells
                                  (MBOED)             Drilled
Permian Basin                     78.0                348
Canadian Heavy Oil                83.1                186
Barnett Shale                     227.7               172
Anadarko Basin                    81.7                184
Mississippian-Woodford            7.9                 232
Trend
Rockies                           21.5                37
Other Assets                      39.6                5
Core & Emerging Assets -          539.5               1,164
Total
Canadian Conventional             92.5                82
(Non-Core)
Rockies (None-Core)               32.1                13
Gulf Coast (Non-Core)             20.4                16
Mid-Continent (Non-Core)          8.4                 -
Devon - Total                     692.9               1,275

                                                        
                                                                     
                                                                     
DEVON ENERGY CORPORATION

FINANCIAL AND OPERATIONAL INFORMATION
                                                                     
BENCHMARK             Quarter Ended                   Year Ended
PRICES
(average              December 31,                    December 31,
prices)
                      2013            2012            2013           2012
Natural Gas
($/Mcf) – Henry       $  3.60         $  3.41         $ 3.65         $  2.79
Hub
Oil ($/Bbl) –
West Texas            $  97.53        $  88.16        $ 98.02        $  94.21
Intermediate
(Cushing)
                                                                     
                                                                     
REALIZED PRICES       Quarter Ended December 31, 2013
                      Oil /           Gas             NGLs           Total
                      Bitumen
                      (Per Bbl)       (Per Mcf)       (Per Bbl)      (Per Boe)
United States         $  96.04        $  3.01         $ 27.51        $  32.96
Canada                $  48.50        $  3.07         $ 45.00       $  35.74
Realized price        $  71.45        $  3.02         $ 28.73        $  33.65
without hedges
Cash                  $  3.33         $  0.23         $ (0.19 )      $  1.59
settlements
Realized price,
including cash        $  74.78        $  3.25         $ 28.54       $  35.24
settlements
                                                                     
                                                                     
                      Quarter Ended December 31, 2012
                      Oil /           Gas             NGLs           Total
                      Bitumen
                      (Per Bbl)       (Per Mcf)       (Per Bbl)      (Per Boe)
United States         $  83.18        $  2.93         $ 26.12        $  27.72
Canada                $  52.31        $  3.26         $ 47.64       $  37.28
Realized price        $  65.56        $  2.99         $ 27.96        $  30.17
without hedges
Cash                  $  8.76         $  0.34         $ 0.07        $  3.24
settlements
Realized price,
including cash        $  74.32        $  3.33         $ 28.03       $  33.41
settlements
                                                                     
                                                                     
                      Year Ended December 31, 2013
                      Oil /           Gas             NGLs           Total
                      Bitumen
                      (Per Bbl)       (Per Mcf)       (Per Bbl)      (Per Boe)
United States         $  94.52        $  3.10         $ 25.75        $  31.59
Canada                $  57.18        $  3.05         $ 46.17       $  39.91
Realized price        $  74.41        $  3.09         $ 27.33        $  33.70
without hedges
Cash                  $  0.90         $  0.16         $ 0.01        $  0.77
settlements
Realized price,
including cash        $  75.31        $  3.25         $ 27.34       $  34.47
settlements
                                                                     
                                                                     
                      Year Ended December 31, 2012
                      Oil /           Gas             NGLs           Total
                      Bitumen
                      (Per Bbl)       (Per Mcf)       (Per Bbl)      (Per Boe)
United States         $  88.68        $  2.32         $ 28.49        $  25.59
Canada                $  57.01        $  2.49         $ 48.63       $  37.01
Realized price        $  69.73        $  2.36         $ 30.42        $  28.65
without hedges
Cash                  $  4.84         $  0.65         $ 0.04        $  3.48
settlements
Realized price,
including cash        $  74.57        $  3.01         $ 30.46       $  32.13
settlements

                                                           
                                                                     
                                                                     
DEVON ENERGY CORPORATION

FINANCIAL AND OPERATIONAL INFORMATION
                                                                     
CONSOLIDATED
STATEMENTS OF        Quarter Ended                   Year Ended
OPERATIONS
(in millions,
except per           December 31,                    December 31,
share amounts)
                     2013         2012            2013            2012
Revenues:
Oil, gas and         $ 2,155         $ 1,883         $ 8,522         $ 7,153
NGL sales
Oil, gas and
NGL                    (96   )         178             (191   )        693
derivatives
Marketing and
midstream             565           519           2,066         1,655 
revenues
Total
operating             2,624         2,580         10,397        9,501 
revenues
Expenses and
other:
Lease
operating              584             534             2,268           2,074
expenses
Marketing and
midstream              425             399             1,553           1,246
operating
expenses
General and
administrative         157             198             617             692
expenses
Production and         108             108             461             414
property taxes
Depreciation,
depletion and          711             731             2,780           2,811
amortization
Asset                  16              896             1,976           2,024
impairments
Other
operating             28            39            121           92    
items
Total
operating             2,029         2,905         9,776         9,353 
expenses
Operating              595             (325  )         621             148
income
Net financing          111             98              417             370
costs
Restructuring          4               74              54              74
costs
Other
nonoperating          4             4             1             21    
items
Earnings
(loss) from
continuing             475             (501  )         149             (317  )
operations
before income
taxes
Income tax
expense               268           (144  )        169           (132  )
(benefit)
Earnings
(loss) from            207             (357  )         (20    )        (185  )
continuing
operations
Earnings
(loss) from
discontinued          -             -             -             (21   )
operations,
net of tax
Net earnings         $ 207          $ (357  )       $ (20    )      $ (206  )
(loss)
                                                                     
Basic net
earnings
(loss) per
share
Basic earnings
(loss) from
continuing           $ 0.51          $ (0.89 )       $ (0.06  )      $ (0.47 )
operations per
share
Basic loss
from
discontinued          -             -             -             (0.05 )
operations per
share
Basic net
earnings             $ 0.51         $ (0.89 )       $ (0.06  )      $ (0.52 )
(loss) per
share
                                                                     
Diluted net
earnings
(loss) per
share
Diluted
earnings
(loss) from          $ 0.51          $ (0.89 )       $ (0.06  )      $ (0.47 )
continuing
operations per
share
Diluted loss
from
discontinued          -             -             -             (0.05 )
operations per
share
Diluted net
earnings             $ 0.51         $ (0.89 )       $ (0.06  )      $ (0.52 )
(loss) per
share
                                                                     
Weighted
average common
shares
outstanding:
Basic                  406             405             406             404
Diluted                407             405             406             404

                                                                
                                                                             
                                                                             
DEVON ENERGY CORPORATION

FINANCIAL AND OPERATIONAL INFORMATION
                                                                             
CONSOLIDATED
STATEMENTS OF CASH
FLOWS
(in millions)             Quarter Ended                     Year Ended
                       December 31,                      December 31,
                          2013             2012             2013             2012
Cash flows from
operating
activities:
      Net earnings        $ 207            $ (357   )       $ (20    )       $ (206   )
      (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         711              731              2,780            2,811
      amortization
      Asset                 16               896              1,976            2,024
      impairments
      Deferred
      income tax            278              (188   )         97               (184   )
      expense
      (benefit)
      Derivatives
      and other             70               (185   )         135              (660   )
      financial
      instruments
      Cash
      settlements
      on                    130              217              277              865
      derivatives
      and financial
      instruments
      Other noncash        112            104            318            240    
      charges
      Net cash from
      operating
      activities            1,524            1,218            5,563            4,911
      before
      balance sheet
      changes
      Net change in
      working               (194   )         (98    )         (298   )         (50    )
      capital
      Change in
      long-term             38               (14    )         10               (36    )
      other assets
      Change in
      long-term            69             37             161            105    
      other
      liabilities
      Cash from
      operating
      activities -          1,437            1,143            5,436            4,930
      continuing
      operations
      Cash from
      operating
      activities -         -              -              -              26     
      discontinued
      operations
      Net cash from
      operating            1,437          1,143          5,436          4,956  
      activities
                                                                             
Cash flows from
investing
activities:
      Capital               (1,539 )         (1,997 )         (6,758 )         (8,225 )
      expenditures
      Proceeds from
      property and          103              71               419              1,468
      equipment
      divestitures
      Purchases of
      short-term            -                (1,137 )         (1,076 )         (4,106 )
      investments
      Redemptions
      of short-term         -                958              3,419            3,266
      investments
      Other                (86    )        (4     )        (3     )        14     
      Cash from
      investing
      activities -          (1,522 )         (2,109 )         (3,999 )         (7,583 )
      continuing
      operations
      Cash from
      investing
      activities -         -              (1     )        -              57     
      discontinued
      operations
      Net cash from
      investing            (1,522 )        (2,110 )        (3,999 )        (7,526 )
      activities
                                                                             
Cash flows from
financing
activities:
      Proceeds from
      borrowings of
      long-term             2,233            (7     )         2,233            2,458
      debt, net of
      issuance
      costs
      Net
      short-term
      debt                  (295   )         361              (1,872 )         (537   )
      borrowings
      (repayments)
      Credit
      facility              -                -                -                750
      borrowings
      Credit
      facility              -                -                -                (750   )
      repayments
      Proceeds from
      stock option          2                2                3                27
      exercises
      Dividends
      paid on               (89    )         (82    )         (348   )         (324   )
      common stock
      Excess tax
      benefits
      related to           (1     )        -              4              5      
      share-based
      compensation
      Net cash from
      financing            1,850          274            20             1,629  
      activities
Effect of exchange
rate changes on            (19    )        (8     )        (28    )        23     
cash
Net change in cash
and cash                    1,746            (701   )         1,429            (918   )
equivalents
                                                                             
Cash and cash
equivalents at             4,320          5,338          4,637          5,555  
beginning of period
Cash and cash
equivalents at end        $ 6,066         $ 4,637         $ 6,066         $ 4,637  
of period

                                                           
                                                                  
                                                                  
DEVON ENERGY CORPORATION

FINANCIAL AND OPERATIONAL INFORMATION
                                                                  
CONSOLIDATED BALANCE SHEETS
(in millions)                                  December 31,       December 31,
                                            2013               2012
Current assets:
            Cash and cash equivalents          $  6,066           $  4,637
            Short-term investments                -                  2,343
            Accounts receivable                   1,520              1,245
            Other current assets                 419              746     
            Total current assets                 8,005            8,971   
Property and equipment, at cost:
            Oil and gas, based on full
            cost accounting:
            Subject to amortization               73,995             69,410
            Not subject to amortization          2,791            3,308   
            Total oil and gas                     76,786             72,718
            Other                                6,195            5,630   
Total property and equipment, at cost             82,981             78,348
Less accumulated depreciation, depletion         (54,534 )         (51,032 )
and amortization
            Property and equipment, net          28,447           27,316  
Goodwill                                          5,858              6,079
Other long-term assets                           567              960     
Total assets                                   $  42,877         $  43,326  
                                                                  
Current liabilities:
            Accounts payable                   $  1,229           $  1,451
            Revenues and royalties                786                750
            payable
            Short-term debt                       4,066              3,189
            Other current liabilities            574              613     
            Total current liabilities            6,655            6,003   
Long-term debt                                    7,956              8,455
Asset retirement obligations                      2,140              1,996
Other long-term liabilities                       834                901
Deferred income taxes                             4,793              4,693
Stockholders' equity:
            Common stock                          41                 41
            Additional paid-in capital            3,780              3,688
            Retained earnings                     15,410             15,778
            Accumulated other                    1,268            1,771   
            comprehensive earnings
Total stockholders' equity                       20,499           21,278  
Total liabilities and stockholders'            $  42,877         $  43,326  
equity
Common shares outstanding                         406                406

                                                             
                                                                       
                                                                       
DEVON ENERGY CORPORATION

FINANCIAL AND OPERATIONAL INFORMATION
                                                                       
CAPITAL EXPENDITURES
(in millions)                        Quarter Ended December 31, 2013
                                    United States       Canada        Total
   Exploration                       $    158            $ 13          $ 171
   Development                           816             296          1,112
   Exploration and development       $    974            $ 309         $ 1,283
   capital ^(1)
   Capitalized G&A                                                       96
   Capitalized interest                                                  12
   Midstream capital ^(2)                                                174
   Other capital                                                        51
Total Operations                                                       $ 1,616
                                                                       
^(1) Includes $124 million attributable to assets identified for divestiture.
^(2) Includes $42 million attributable to assets that will reside within
EnLink Midstream.
                                                                       
                                                                       
                                     Year Ended December 31, 2013
                                     United States       Canada        Total
   Exploration                       $    626            $ 128         $ 754
   Development                           3,541           1,114        4,655
   Exploration and development       $    4,167          $ 1,242       $ 5,409
   capital ^(1)
   Capitalized G&A                                                       368
   Capitalized interest                                                  42
   Midstream capital ^(2)                                                703
   Other capital                                                        121
Total Operations                                                       $ 6,643
                                                                       
^(1) Includes $483 million attributable to assets identified for divestiture.
^(2) Includes $215 million attributable to assets that will reside within
EnLink Midstream.

                                           
                                                  
                                                  
DEVON ENERGY CORPORATION

FINANCIAL AND OPERATIONAL INFORMATION
                                                  
COSTS INCURRED
(in millions)                     Total
                               Year Ended December 31,
                                    2013          2012
Property acquisition costs:
        Proved properties         $  22           $ 73
        Unproved properties          216            1,167
Exploration costs                    595            666
Development costs                   5,089         6,099
Costs Incurred                    $  5,922        $ 8,005
                                                  
                                  United States
                                  Year Ended December 31,
                                    2013          2012
Property acquisition costs:
        Proved properties         $  19           $ 2
        Unproved properties          213            1,135
Exploration costs                    443            351
Development costs                   3,838         4,408
Costs Incurred                    $  4,513        $ 5,896
                                                  
                                  Canada
                                  Year Ended December 31,
                                    2013          2012
Property acquisition costs:
        Proved properties         $  3            $ 71
        Unproved properties          3              32
Exploration costs                    152            315
Development costs                   1,251         1,691
Costs Incurred                    $  1,409        $ 2,109

                                                          


DEVON ENERGY CORPORATION

FINANCIAL AND OPERATIONAL INFORMATION
                                                                       
RESERVES
RECONCILIATION
                        Total
                           Oil /          Gas           NGLs           Total
                           Bitumen
                           (MMBbls)    (Bcf)      (MMBbls)    (MMBoe)
As of December 31,                                         
2012:
        Proved             327            8,070         451            2,123
        developed
        Proved             471        1,376     140        840   
        undeveloped
Total Proved               798        9,446     591        2,963 
Revisions due to           (11   )        566           11             94
prices
Revisions other than       (2    )        (232  )       (47   )        (88   )
price
Extensions and             114            490           65             261
discoveries
Purchase of reserves       1              1             -              1
Production                 (62   )        (874  )       (45   )        (253  )
Sale of reserves           (1    )        (89   )       -              (15   )
As of December 31,                                         
2013:
        Proved             361            8,459         491            2,262
        developed
        Proved             476        849       84         701   
        undeveloped
Total Proved               837        9,308     575        2,963 
                                                                       
                           
                           United States
                           Oil            Gas           NGLs           Total
                           (MMBbls)    (Bcf)      (MMBbls)    (MMBoe)
As of December 31,                                         
2012:
        Proved             166            7,391         431            1,829
        developed
        Proved             39         1,371     140        407   
        undeveloped
Total Proved               205        8,762     571        2,236 
Revisions due to           1              405           8              76
prices
Revisions other than       (18   )        (299  )       (50   )        (117  )
price
Extensions and             69             471           64             212
discoveries
Purchase of reserves       1              1             -              1
Production                 (28   )        (709  )       (41   )        (189  )
Sale of reserves           (1    )        (81   )       -              (14   )
As of December 31,                                         
2013:
        Proved             194            7,707         468            1,947
        developed
        Proved             35         843       84         258   
        undeveloped
Total Proved               229        8,550     552        2,205 
                                                                       
                                                                       
                           Canada
                           Oil /          Gas           NGLs           Total
                           Bitumen
                           (MMBbls)    (Bcf)      (MMBbls)    (MMBoe)
As of December 31,                                         
2012:
        Proved             161            679           20             294
        developed
        Proved             432        5         -          433   
        undeveloped
Total Proved               593        684       20         727   
Revisions due to           (12   )        161           3              18
prices
Revisions other than       16             67            3              29
price
Extensions and             45             19            1              49
discoveries
Purchase of reserves       -              -             -              -
Production                 (34   )        (165  )       (4    )        (64   )
Sale of reserves           -              (8    )       -              (1    )
As of December 31,                                         
2013:
        Proved             167            752           23             315
        developed
        Proved             441        6         -          443   
        undeveloped
Total Proved               608        758       23         758   
                                                                             

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 fourth-quarter 2013 earnings.

                                                            
RECONCILIATION TO GAAP INFORMATION
(in millions)
                                               Quarter Ended December 31, 2013
                                               Before-Tax           After-Tax
Net earnings (GAAP)                                                 $    207
Derivatives and other financial                105                       67
instruments
Cash settlements on derivatives and            101                       64
financial instruments
Cash repatriation                              -                         97
Asset impairments                              16                        10
Restructuring costs                            4                        2
Adjusted earnings (Non-GAAP)                                        $    447
Diluted share count                                                      407
Adjusted diluted earnings per share                                 $    1.10
(Non-GAAP)
                                                                         
                                                                         

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)
                                         December 31,
                                          2013          2012
Total debt (GAAP)                        $ 12,022       $ 11,644
Adjustments:
Cash and short-term investments           6,066         6,980
Net debt (Non-GAAP)                      $ 5,956        $ 4,664
                                                        
Total debt                               $ 12,022       $ 11,644
Stockholders' equity                      20,499        21,278
Total capitalization (GAAP)              $ 32,521       $ 32,922
                                                        
Net debt                                 $ 5,956        $ 4,664
Stockholders' equity                      20,499        21,278
Adjusted capitalization (Non-GAAP)       $ 26,455       $ 25,942

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.