Devon Energy Reports First-Quarter 2014 Results

  Devon Energy Reports First-Quarter 2014 Results

  *Delivered U.S. oil production growth of more than 50 percent year over
  *Increased operating cash flow by 41 percent year over year
  *Achieved excellent well results in Delaware Basin
  *Closed Eagle Ford acquisition and EnLink Midstream combination
  *Announced attractive monetization of Canadian conventional gas business
  *Increased dividend for the ninth time since 2004

Business Wire

OKLAHOMA CITY -- May 7, 2014

Devon Energy Corporation (NYSE:DVN) today reported net earnings of $324
million or $0.80 per common share ($0.79 per diluted share) for the quarter
ended March 31, 2014. This compares with a first-quarter 2013 net loss of $1.3
billion or $3.34 per common share ($3.34 per diluted share).

Adjusting for items securities analysts typically exclude from their published
estimates, the company earned $547 million or $1.34 per diluted share in the
first quarter. This represents a 103 percent increase in adjusted earnings
compared to the first quarter of 2013.

“Our disciplined focus on high-margin drilling opportunities led to
outstanding growth in oil production and enhanced profitability in the first
quarter,” said John Richels, president and chief executive officer.
“Additionally, we made meaningful progress high-grading our go-forward asset
portfolio by closing our Eagle Ford acquisition, completing the EnLink
Midstream combination, and attractively monetizing our conventional gas
business in Canada.”

Retained Assets Drive Strong Production Growth

Total production of oil, natural gas, and natural gas liquids averaged 691,000
oil-equivalent barrels (Boe) per day in the first quarter of 2014. Excluding
production associated with divestiture properties, top-line production from
Devon’s retained, go-forward asset base increased to 563,000 Boe per day in
the first quarter. This represents a 7 percent increase compared to the first
quarter of 2013. The company’s divestiture assets averaged 128,000 Boe per day
in the first quarter, of which 76 percent was natural gas.

The increase in first-quarter production was driven almost entirely by growth
in oil production from the company’s go-forward assets. Oil production from
these assets averaged 176,000 barrels per day, a 21 percent increase compared
to the first quarter of 2013. Led by the Permian Basin and Eagle Ford, the
most significant growth came from the company’s retained U.S. operations,
where oil production increased a substantial 56 percent year over year.
Reconciliations of retained and non-core asset production are provided later
in this release.

Key Operating Highlights

Permian Basin - Production averaged a record 91,000 Boe per day in the first
quarter. Oil production increased 36 percent compared to the first quarter of
2013 and was 9 percent higher than the previous quarter. In the first quarter,
light oil production accounted for 60 percent of Devon’s total Permian

The most significant contributor to the company’s Permian oil growth was once
again the Bone Spring oil play in the Delaware Basin. Devon added 35 new Bone
Spring wells to production in the first quarter, with initial 30-day rates
averaging nearly 700 Boe per day, of which 80 percent was light oil.

Also in the Delaware Basin, Devon commenced production on two high-rate oil
wells targeting the Delaware Sands in Lea County, New Mexico. Initial 30-day
production from each of these two wells averaged in excess of 1,000 Boe per
day, composed of nearly 90 percent light oil. The company has approximately
80,000 net acres prospective for the Delaware Sands within Southeast New

In the Southern Midland Basin, Devon delivered another quarter of strong
results from its oil development program in the Wolfcamp Shale. During the
first quarter, the company brought 26 Wolfcamp Shale wells online, increasing
average net production in this play to 10,000 Boe per day. Compared to the
first quarter of 2013, this represents production growth of 8,000 Boe per day.

Eagle Ford – Devon completed its acquisition of 82,000 net acres in DeWitt and
Lavaca counties on February 28, 2014. This acquisition secures Devon a premier
position in this world-class oil play, which is delivering some of the highest
rate-of-return drilling opportunities in North America. The company has at
least 1,200 undrilled locations with risked recoverable resource estimated at
400 million oil-equivalent barrels. Based on well performance seen to date,
Devon remains on track to average 70,000 to 80,000 Boe per day for its 10
months of ownership in 2014 and well in excess of 100,000 Boe per day in 2015.

For Devon’s first month of ownership in March, net production averaged 49,000
Boe per day. March production was temporarily constrained by gathering system
downtime and the timing of well tie-ins. With the acceleration of well tie-ins
at the end of March, the company’s Eagle Ford net daily production is
currently 64,000 Boe per day and is expected to average between 65,000 and
70,000 Boe per day in the second quarter.

Canadian Thermal Oil – Gross production from Devon’s Jackfish 1 and Jackfish 2
thermal oil projects averaged 62,000 barrels of oil per day in the first
quarter, a 9 percent increase compared to the year-ago period. After
accounting for royalties, net production from the company’s Jackfish complex
averaged 52,000 barrels per day in the quarter. First-quarter results were
highlighted by the excellent performance at Jackfish 1, where gross production
exceeded name-plate facility capacity averaging 37,000 barrels per day.

Construction of the company’s Jackfish 3 thermal oil project is 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 produce 105,000 barrels per day before royalties and generate
up to $1 billion of free cash flow annually for the company.

Anadarko Basin – First-quarter Anadarko Basin production averaged a record
85,000 Boe per day. Growth from Devon’s Cana-Woodford 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 45 percent of total production in the Anadarko Basin.

In early May, Devon further bolstered its Cana-Woodford Shale position by
acquiring an additional 50,000 net acres. These assets directly overlap the
company’s existing core Cana position and expand Devon’s exposure to other
western Oklahoma oil and gas plays. In aggregate, the company’s total
Cana-Woodford position is now approximately 300,000 net acres, with thousands
of undrilled locations in this high-quality, liquids-rich play.

Barnett Shale – Net production averaged 1.3 billion cubic feet of natural gas
equivalent per day in the first quarter of 2014. Barnett liquids production
increased to an average of 57,000 barrels per day, a 5 percent increase
compared to the first quarter of 2013.

Mississippian-Woodford Trend – In the first quarter, production from Devon’s
Mississippian-Woodford Trend averaged 19,000 Boe per day, of which 50 percent
was light oil. This represents a production growth rate of 35 percent compared
to the previous quarter. The company commenced production on 63 operated wells
within the Sinopec joint-venture area during the quarter, with overall well
results supporting type-curve expectations.

Rockies – Net production from the company’s retained Rockies assets averaged
20,000 Boe per day in the first quarter. Liquids production in the Rockies
increased 21 percent compared to the first quarter of last year and accounted
for nearly half of Devon’s product mix in the region. Devon’s drilling
activity for the quarter was highlighted by an Iberlin Ranch well targeting
the Frontier formation with initial 30-day production averaging 2,000 Boe per
day, including more than 1,700 barrels of oil per day. In addition, the
company commenced production on a well targeting the Parkman formation with
30-day production rates averaging in excess of 1,100 Boe per day, of which 96
percent was light oil.

Devon has 150,000 net acres in the Powder River Basin, prospective for
multiple formations including the Parkman, Turner, and Frontier. The company
has identified approximately 1,000 risked locations across the Powder River
Basin and expects its drilling inventory to increase as the company de-risks
this oil opportunity.

Upstream Revenue Increases 42 Percent; Cash Flow Rises

Revenue from oil, natural gas, and natural gas liquids sales totaled $2.6
billion in the first quarter, a 42 percent increase compared to the first
quarter of 2013. The significant growth in revenue was attributable to growth
in high-margin oil production combined with improved price realizations for
all products. First-quarter oil sales accounted for more than 50 percent of
Devon’s total upstream revenues.

Devon’s marketing and midstream operating profit reached $183 million in the
first quarter of 2014. This result represents a 47 percent increase year over
year. The increase in operating profit was attributable to higher commodity
prices and the consolidation of EnLink Midstream, which was effective March 7,

In the first quarter of 2014, the company maintained its low cost structure by
limiting pre-tax expenses to $1.8 billion, in line with previous guidance.
Excluding the costs associated with the consolidation of EnLink Midstream,
pre-tax unit costs were 8 percent higher than the first quarter of 2013. The
increase in unit costs was attributable to higher production taxes and higher
operating costs associated with the company’s rapidly growing high-margin oil
production. In addition, $22 million of non-recurring G&A expenses associated
with the EnLink and GeoSouthern transactions and a change in the timing of the
annual stock-based compensation grant resulted in an increase in first-quarter
G&A. Stock-based compensation grants were previously made in the fourth
quarter of each year. However, to better link stock-based compensation to the
year’s performance, the 2013 grant was delayed to the first quarter of 2014,
resulting in no grant during 2013.

Overall, the benefits of higher-margin oil production, improved price
realizations, and a low cost structure resulted in improved cash flow for the
company. In the first quarter of 2014, operating cash flow reached $1.4
billion, a 41 percent increase compared to the year-ago period.

Balance Sheet Remains Strong

At the end of the first quarter, Devon’s financial position remained
exceptionally strong with investment-grade credit ratings and cash balances of
$2.0 billion. At March 31, 2014, the company’s net debt totaled $13.5 billion,
of which $1.5 billion was attributable to the consolidation of EnLink
Midstream and is non-recourse to Devon.

In the first quarter, Devon drew $2.0 billion on its senior term loans.
Proceeds from the term loans and a portion of the company’s cash on hand
funded Devon’s Eagle Ford acquisition. Proceeds from the company’s ongoing
asset divestiture program will be utilized to reduce debt in the second

Also in the first quarter, the company announced a 9 percent increase to its
quarterly cash dividend from $0.22 per share to $0.24 per share. This was
Devon’s ninth dividend increase since 2004, highlighting the company’s
long-term commitment to returning cash to shareholders.

Divestiture Program Advances

Last November, Devon announced an initiative to monetize non-core assets in
both the U.S. and Canada, sharpening its focus on retained, high-growth
assets. The company took a significant step forward in the execution of this
divestiture process in early April of this year by completing the sale of its
Canadian conventional gas business for C$3.125 billion. After adjusting for
currency exchange and taxes associated with the sale and repatriation of the
funds to the U.S., the company’s net proceeds totaled US$2.7 billion.

The divestiture process for the company’s remaining non-core properties in the
U.S. is ongoing. Devon expects to open data rooms for these U.S. assets in the
second quarter and complete the divestiture program by year end.

EnLink Midstream Combination Complete

On March 7, 2014, EnLink Midstream was formed by combining substantially all
of Devon’s U.S. midstream assets with the assets of Crosstex Energy. EnLink
Midstream consists of two publicly traded entities: the master limited
partnership, EnLink Midstream Partners, LP, and a publicly traded general
partner entity, EnLink Midstream, LLC.

The common units of both EnLink Midstream Partners and EnLink Midstream trade
on the New York Stock Exchange under the symbols “ENLK” and “ENLC”,
respectively. Devon is the majority owner of EnLink Midstream with a 52
percent ownership interest in “ENLK” and a 70 percent ownership in “ENLC”.

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 and net debt are
non-GAAP financial measures referenced within this release. Reconciliations of
these non-GAAP measures are provided later in this release.

Conference Call to be Webcast Today

Devon will conduct a conference call webcast (with associated slides) today,
May 7, at 10:00 a.m. Central (11:00 a.m. Eastern). The webcast will feature
discussion of the company’s first-quarter results. To listen to the webcast,
including synchronized slides, visit Additionally, the
slides will be available via the website for printing or download
approximately 10 minutes prior to the webcast. A replay of the webcast will be
available on our website.

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 You
can also obtain this form from the SEC by calling 1-800-SEC-0330 or from the
SEC’s website at

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



PRODUCTION (net of royalties)    Quarter Ended
                                    March 31,
Average Daily Production:           2014       2013
Natural Gas (MMcf)
United States - Core                1,587.5       1,660.2
Canada - Core                       19.4          20.6
Non-Core                            585.2         743.2
Total Natural Gas                   2,192.1       2,424.0
Oil / Bitumen (MBbls)
United States - Core                97.5          62.7
Canada - Core                       78.0          82.8
Non-Core                            14.6          16.8
Total Oil / Bitumen                 190.1         162.3
Natural Gas Liquids (MBbls)
United States - Core                119.1         101.6
Non-Core                            16.3          18.9
Total Natural Gas Liquids           135.4         120.5
Oil Equivalent (MBoe)
United States - Core                481.3         441.0
Canada - Core                       81.2          86.2
Non-Core                            128.4         159.7
Total Oil Equivalent                690.9         686.9

                                    Quarter Ended March 31, 2014
                                    Avg.              Gross          Operated
                                    Production        Wells          Rigs at
                                    (MBOED)           Drilled        March 31,
Permian Basin                       91.4              92             24
Eagle Ford                          17.0 ^(1)         14             2
Canadian Heavy Oil                  81.2              30             3
Barnett Shale                       212.6             28             2
Anadarko Basin                      85.3              37             2
Mississippian-Woodford Trend        18.9              73             8
Rockies                             19.7              8              3
Other Assets                        36.4              -              -
Core & Emerging Assets -            562.5             282            44
Canadian Conventional               79.3              8              -
Rockies (Non-Core)                  25.1              -              1
Gulf Coast (Non-Core)               17.0              -              -
Mid-Continent (Non-Core)            7.0               -              -
Devon - Total                       690.9             290            45

^(1) First-quarter Eagle Ford production includes only the month of March. The
March average was 49.4 MBOED.



BENCHMARK PRICES                               Quarter Ended
(average prices)                                        March 31,
                                                        2014        2013
Natural Gas
($/Mcf) – Henry                                         $ 4.95         $ 3.34
Oil ($/Bbl) –
West Texas                                              $ 98.66        $ 94.45
REALIZED PRICES         Quarter Ended March 31, 2014
                        Oil /            Gas            NGLs           Total
                        (Per Bbl)        (Per           (Per           (Per
                                         Mcf)           Bbl)           Boe)
United States           $ 91.66          $ 4.33         $ 29.66        $ 39.44
Canada                  $ 61.76          $ 4.14         $ 51.80        $ 46.71
Realized price          $ 77.75          $ 4.30         $ 31.15        $ 41.13
without hedges
Cash settlements        $ (2.10)         $ (0.33)       $ (0.02)       $
Realized price,
including cash          $ 75.65          $ 3.97         $ 31.13        $ 39.52
                        Quarter Ended March 31, 2013
                        Oil /            Gas            NGLs           Total
                        (Per Bbl)        (Per           (Per           (Per
                                         Mcf)           Bbl)           Boe)
United States           $ 87.45          $ 2.81         $ 26.28        $ 28.32
Canada                  $ 40.68          $ 3.02         $ 47.33        $ 31.59
Realized price          $ 60.13          $ 2.85         $ 28.04        $ 29.18
without hedges
Cash settlements        $ 2.19           $ 0.24         $ 0.13         $ 1.39
Realized price,
including cash          $ 62.32          $ 3.09         $ 28.17        $ 30.57


(in millions, except per share amounts)             March 31,
                                                    2014         2013
Oil, gas and NGL sales                              $ 2,557         $ 1,804
Oil, gas and NGL derivatives                          (320  )         (320   )
Marketing and midstream revenues                     1,488         487    
Total operating revenues                             3,725         1,971  
Lease operating expenses                              598             525
Marketing and midstream operating expenses            1,305           363
General and administrative expenses                   211             150
Production and property taxes                         137             113
Depreciation, depletion and amortization              739             704
Asset impairments                                     -               1,913
Restructuring costs                                   37              38
Other operating items                                8             22     
Total operating expenses                             3,035         3,828  
Operating income (loss)                               690             (1,857 )
Net financing costs                                   112             103
Other nonoperating items                             18            2      
Earnings (loss) before income taxes                   560             (1,962 )
Income tax expense (benefit)                         231           (623   )
Net earnings (loss)                                   329             (1,339 )
Net earnings attributable to noncontrolling          5             -      
Net earnings (loss) attributable to Devon           $ 324          $ (1,339 )
Net earnings (loss) per share attributable to
Basic                                               $ 0.80          $ (3.34  )
Diluted                                             $ 0.79          $ (3.34  )
Weighted average common shares outstanding:
Basic                                                 407             406
Diluted                                               408             406

(in millions)
                     Quarter Ended March 31, 2014
                     Devon           EnLink        Eliminations
                     U.S. &          ^ (1)         ^(2)               Total
Oil, gas and         $ 2,557         $ -           $   -              $ 2,557
NGL sales
Oil, gas and
NGL                    (320  )         -               -                (320  )
Marketing and
midstream             1,063         723           (298  )         1,488 
operating             3,300         723           (298  )         3,725 
operating              598             -               -                598
Marketing and
midstream              1,023           580             (298  )          1,305
General and
administrative         194             17              -                211
Production and         133             4               -                137
property taxes
depletion and          691             48              -                739
Restructuring          37              -               -                37
operating             8             -             -              8     
operating             2,684         649           (298  )         3,035 
Operating              616             74              -                690
Net financing          107             5               -                112
nonoperating          21            (3  )          -              18    
before income          488             72              -                560
Income tax            207           24            -              231   
Net earnings           281             48              -                329
Net earnings
to                    -             5             -              5     
Net earnings
attributable         $ 281          $ 43         $   -             $ 324   
to Devon

^(1) In the formation of EnLink, Devon is considered the accounting acquirer.
Therefore, the EnLink operating results include the operating results for the
Devon midstream assets that were contributed to EnLink for the entire quarter.
However, EnLink's operating results only include the operating results for the
Crosstex assets that were contributed to EnLink beginning March 7, 2014, the
completion date of the transaction.
^(2) During the first quarter of 2014, Devon had $298 million of inter-segment
revenues and expenses related to EnLink that require elimination. Prior to the
formation of EnLink, Devon had $255 million of transactions that represented
inter-segment product purchases and sales. Subsequent to the formation of
EnLink, Devon had $43 million of transactions that represented inter-segment
fee-based revenues and expenses with EnLink.


(in millions)                                      Quarter Ended
                                                   March 31,
                                                   2014             2013
Cash flows from operating activities:
Net earnings (loss)                                $ 329            $ (1,339 )
Adjustments to reconcile earnings (loss) to
net cash
from operating activities:
Depreciation, depletion and amortization             739              704
Asset impairments                                    -                1,913
Deferred income tax expense (benefit)                208              (623   )
Derivatives and other financial instruments          307              305
Cash settlements on derivatives and                  (54    )         114
financial instruments
Other noncash charges                               108            83     
Net cash from operating activities before            1,637            1,157
balance sheet changes
Net change in working capital                        (152   )         (158   )
Change in long-term other assets                     (88    )         (6     )
Change in long-term other liabilities               13             9      
Net cash from operating activities                  1,410          1,002  
Cash flows from investing activities:
Acquisition of property and equipment                (5,935 )         -
Capital expenditures                                 (1,583 )         (1,926 )
Proceeds from property and equipment                 142              29
Purchases of short-term investments                  -                (871   )
Redemptions of short-term investments                -                1,988
Redemptions of long-term investments                 57               1
Other                                               37             (3     )
Net cash from investing activities                  (7,282 )        (782   )
Cash flows from financing activities:
Proceeds from borrowings of long-term debt,          3,346            -
net of issuance costs
Net short-term debt borrowings                       257              508
Long-term debt repayments                            (1,577 )         -
Proceeds from stock option exercises                 11               -
Dividends paid on common stock                       (90    )         (81    )
Excess tax benefits related to share-based           1                3
Distributions to noncontrolling interests            (100   )         -
Other                                               (4     )        -      
Net cash from financing activities                  1,844          430    
Effect of exchange rate changes on cash             (11    )        (12    )
Net change in cash and cash equivalents              (4,039 )         638
Cash and cash equivalents at beginning of           6,066          4,637  
Cash and cash equivalents at end of period         $ 2,027         $ 5,275  


(in millions)                                   March 31,         December 31,
                                                2014              2013
Current assets:
Cash and cash equivalents                       $ 2,027           $  6,066
Accounts receivable                               2,580              1,520
Other current assets                             413              419     
Total current assets                             5,020            8,005   
Property and equipment, at cost:
Oil and gas, based on full cost
Subject to amortization                           79,399             73,995
Not subject to amortization                      3,821            2,791   
Total oil and gas                                 83,220             76,786
Other                                            8,801            6,195   
Total property and equipment, at cost             92,021             82,981
Less accumulated depreciation, depletion         (54,592 )         (54,534 )
and amortization
Property and equipment, net                      37,429           28,447  
Goodwill                                          9,155              5,858
Other long-term assets                           1,161            567     
Total assets                                    $ 52,765         $  42,877  
Current liabilities:
Accounts payable                                $ 1,581           $  1,229
Revenues and royalties payable                    1,529              786
Short-term debt                                   3,773              4,066
Other current liabilities                        697              574     
Total current liabilities                        7,580            6,655   
Long-term debt                                    11,739             7,956
Asset retirement obligations                      2,218              2,140
Other long-term liabilities                       933                834
Deferred income taxes                             5,249              4,793
Stockholders' equity:
Common stock                                      41                 41
Additional paid-in capital                        3,836              3,780
Retained earnings                                 15,644             15,410
Accumulated other comprehensive earnings         973              1,268   
Total stockholders' equity attributable           20,494             20,499
to Devon
Noncontrolling interests                         4,552            -       
Total stockholders' equity                       25,046           20,499  
Total liabilities and stockholders'             $ 52,765         $  42,877  
Common shares outstanding                         408                406

(in millions)                                 Quarter Ended March 31, 2014
                                             U.S.        Canada       Total
  Exploration                                 $ 73        $  32        $ 105
  Development                                  833         278        1,111
  Exploration and development capital         $ 906       $  310       $ 1,216
  Capitalized G&A                                                        83
  Capitalized interest                                                   10
  Eagle Ford acquisition                                                 6,134
  Midstream capital ^(2)                                                 160
  Other capital                                                         10
Total Continuing Operations                                            $ 7,613

^(1)  Includes $112 million attributable to assets identified for
^(2)   Includes $82 million attributable to EnLink.


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 first-quarter 2014 earnings.

(in millions)
                                                  Quarter Ended March 31, 2014
                                                  Before-Tax         After-Tax
Net earnings attributable to Devon (GAAP)                            $  324
Fair value changes in financial instruments       242                   157
Gain on Canadian sale                             (13     )             (10  )
Restructuring costs                               37                    28
Deferred income taxes on the formation of         -                    48   
Adjusted earnings attributable to Devon                              $  547  
Diluted share count                                                     408
Adjusted diluted earnings per share                                  $  1.34 
attributable to Devon (Non-GAAP)

                           DEVON ENERGY CORPORATION


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.

(in millions)
                                         March 31,
                                         2014           2013
Total debt (GAAP)                        $ 15,512       $ 12,152
Cash and short-term investments           2,027         6,501
Net debt (Non-GAAP)                      $ 13,485       $ 5,651


Devon Energy Corporation
Investor Contacts
Scott Coody, 405-552-4735
Shea Snyder, 405-552-4782
Media Contact
Chip Minty, 405-228-8647
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