EX-99.23d359332dex992.htmEX-99.2 EX-99.2
Exhibit 99.2
Devon Energy Second-Quarter 2026
Supplemental Tables
TABLE OF CONTENTS:
PAGE:
Consolidated Statements of Earnings
2
Supplemental Information for Consolidated Statements of Earnings
3
Consolidated Balance Sheets
4
Consolidated Statements of Cash Flows
5
Production
6
Capital Expenditures and Supplemental Information for Capital Expenditures
7
Realized Pricing
8
Asset Margins
9
Core Earnings
10
EBITDAX
11
Net Debt, NetDebt-to-EBITDAX, Free Cash Flow and Reinvestment Rate
12
1
CONSOLIDATED STATEMENTS OF EARNINGS
(in millions, except per share amounts)
2026
2025
Quarter 2
Quarter 1
Quarter 4
Quarter 3
Quarter 2
Oil, gas and NGL sales
$
5,106
$
2,977
$
2,578
$
2,809
$
2,710
Oil, gas and NGL derivatives (1)
414
(701
)
184
80
236
Marketing and midstream revenues
1,897
1,531
1,359
1,442
1,338
Total revenues
7,417
3,807
4,121
4,331
4,284
Production expenses (2)
1,393
894
861
895
899
Exploration expenses
16
25
5
8
20
Marketing and midstream expenses
1,874
1,547
1,389
1,453
1,357
Depreciation, depletion and amortization
1,416
904
890
879
914
Asset dispositions
(25
)
1
(1
)
(37
)
(307
)
General and administrative expenses
175
125
135
114
113
Financing costs, net (3)
125
109
107
109
116
Restructuring and transaction costs
246
19
—
9
9
Other, net
(187
)
17
(12
)
(11
)
2
Total expenses
5,033
3,641
3,374
3,419
3,123
Earnings before income taxes
2,384
166
747
912
1,161
Income tax expense (4)
473
46
185
219
244
Net earnings
1,911
120
562
693
917
Net earnings attributable to noncontrolling interests
—
—
—
6
18
Net earnings attributable to Devon
$
1,911
$
120
$
562
$
687
$
899
Net earnings per share:
Basic net earnings per share
$
2.04
$
0.19
$
0.91
$
1.09
$
1.42
Diluted net earnings per share
$
2.03
$
0.19
$
0.90
$
1.09
$
1.41
Weighted average common shares outstanding:
Basic
937
616
621
628
635
Diluted
940
618
622
629
636
2
SUPPLEMENTAL INFORMATION FOR CONSOLIDATED STATEMENTS OF EARNINGS
(1) OIL, GAS AND NGL DERIVATIVES
(in millions)
2026
2025
Quarter 2
Quarter 1
Quarter 4
Quarter 3
Quarter 2
Derivative cash settlements
$
(116
)
$
(57
)
$
125
$
50
$
67
Derivative valuation changes
530
(644
)
59
30
169
Oil, gas and NGL derivatives
$
414
$
(701
)
$
184
$
80
$
236
(2) PRODUCTION EXPENSES
(in millions)
2026
2025
Quarter 2
Quarter 1
Quarter 4
Quarter 3
Quarter 2
Lease operating expense
$
626
$
486
$
479
$
481
$
483
Gathering, processing & transportation
391
191
195
213
219
Production taxes
357
205
172
184
180
Property taxes
19
12
15
17
17
Production expenses
$
1,393
$
894
$
861
$
895
$
899
(3) FINANCING COSTS, NET
(in millions)
2026
2025
Quarter 2
Quarter 1
Quarter 4
Quarter 3
Quarter 2
Interest based on debt outstanding
$
144
$
118
$
119
$
125
$
126
Interest income
(22
)
(14
)
(14
)
(18
)
(14
)
Other
3
5
2
2
4
Financing costs, net
$
125
$
109
$
107
$
109
$
116
(4) INCOME TAX EXPENSE
(in millions)
2026
2025
Quarter 2
Quarter 1
Quarter 4
Quarter 3
Quarter 2
Current expense (benefit)
$
378
$
(188
)
$
23
$
(44
)
$
226
Deferred expense
95
234
162
263
18
Income tax expense (1)
$
473
$
46
$
185
$
219
$
244
(1)
Devon recognized a one-time current tax benefit of approximately
$218 million in Q1 2026 related to new tax guidance under the One Big Beautiful Bill Act. With that benefit pulled into Q1 and higher oil pricing, Q2’s 2026 current tax rate reflects a normalizedgo-forward run-rate.
3
CONSOLIDATED BALANCE SHEETS
(in millions)
2026
2025
Quarter 2
Quarter 1
Quarter 4
Quarter 3
Quarter 2
Current assets:
Cash, cash equivalents and restricted cash
$
1,009
$
1,815
$
1,434
$
1,278
$
1,759
Accounts receivable
3,162
2,250
1,792
1,835
1,853
Inventory
356
319
336
361
327
Other current assets
522
378
444
393
384
Total current assets
5,049
4,762
4,006
3,867
4,323
Oil and gas property and equipment, based on successful efforts accounting, net
60,899
23,912
23,731
23,591
23,428
Other property and equipment, net
2,199
1,686
1,688
1,698
1,687
Total property and equipment, net
63,098
25,598
25,419
25,289
25,115
Goodwill
753
753
753
753
753
Right-of-useassets
509
312
299
247
185
Investments
992
715
727
679
640
Other long-term assets
492
403
395
386
374
Total assets
$
70,893
$
32,543
$
31,599
$
31,221
$
31,390
Current liabilities:
Accounts payable
$
1,626
$
975
$
790
$
934
$
885
Revenues and royalties payable
2,451
1,678
1,491
1,464
1,440
Short-term debt
1,497
999
998
998
485
Income taxes payable
414
—
152
126
190
Other current liabilities
1,052
1,082
655
520
537
Total current liabilities
7,040
4,734
4,086
4,042
3,537
Long-term debt
9,891
7,387
7,391
7,393
8,393
Lease liabilities
356
206
197
158
113
Asset retirement obligations
1,169
986
863
850
839
Other long-term liabilities
1,043
940
907
962
1,008
Deferred income taxes
9,647
2,862
2,627
2,466
2,208
Stockholders’ equity:
Common stock
115
62
62
63
64
Additional paid-in capital
30,045
5,316
5,388
5,618
5,864
Retained earnings
11,712
10,171
10,200
9,788
9,252
Accumulated other comprehensive loss
(120
)
(121
)
(122
)
(119
)
(120
)
Treasury stock
(5
)
—
—
—
—
Total stockholders’ equity attributable to Devon
41,747
15,428
15,528
15,350
15,060
Noncontrolling interests
—
—
—
—
232
Total equity
41,747
15,428
15,528
15,350
15,292
Total liabilities and equity
$
70,893
$
32,543
$
31,599
$
31,221
$
31,390
4
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in millions)
2026
2025
Quarter 2
Quarter 1
Quarter 4
Quarter 3
Quarter 2
Cash flows from operating activities:
Net earnings
$
1,911
$
120
$
562
$
693
$
917
Adjustments to reconcile net earnings to net cash from operating activities:
Depreciation, depletion and amortization
1,416
904
890
879
914
Leasehold impairments
9
3
(2
)
1
7
Accretion of liabilities
7
4
3
4
3
Total (gains) losses on commodity derivatives
(414
)
701
(184
)
(80
)
(236
)
Cash settlements on commodity derivatives
(116
)
(57
)
125
50
67
(Gains) losses on asset dispositions
(25
)
1
(1
)
(37
)
(307
)
Deferred income tax expense
95
234
162
263
18
Share-based compensation
71
22
22
24
23
Other
(204
)
22
(5
)
(45
)
5
Changes in assets and liabilities, net
924
(299
)
(38
)
(62
)
134
Net cash from operating activities
3,674
1,655
1,534
1,690
1,545
Cash flows from investing activities:
Cash acquired in Merger
581
—
—
—
—
Capital expenditures
(1,318
)
(839
)
(832
)
(870
)
(956
)
Acquisitions of property and equipment
(2,729
)
(190
)
(101
)
(197
)
(16
)
Divestitures of property and equipment and investments
88
2
2
38
372
Distributions from investments
13
9
11
7
11
Contributions to investments and other
(10
)
(2
)
(50
)
(2
)
(8
)
Net cash from investing activities
(3,375
)
(1,020
)
(970
)
(1,024
)
(597
)
Cash flows from financing activities:
Repayments of long-term debt
(500
)
—
—
(485
)
—
T1Repurchases of common stock
(197
)
(69
)
(250
)
(250
)
(249
)
Dividends paid on common stock
(366
)
(155
)
(149
)
(151
)
(156
)
Distributions to noncontrolling interests
—
—
—
—
(14
)
Acquisition of noncontrolling interests
—
—
—
(260
)
—
Repayment of finance leases
(2
)
(3
)
(8
)
—
—
Shares exchanged for tax withholdings and other
(44
)
(27
)
—
(1
)
(5
)
Net cash from financing activities
(1,109
)
(254
)
(407
)
(1,147
)
(424
)
Effect of exchange rate changes on cash
4
—
(1
)
—
1
Net change in cash, cash equivalents and restricted cash
(806
)
381
156
(481
)
525
Cash, cash equivalents and restricted cash at beginning of period
1,815
1,434
1,278
1,759
1,234
Cash, cash equivalents and restricted cash at end of period
$
1,009
$
1,815
$
1,434
$
1,278
$
1,759
Reconciliation of cash, cash equivalents and restricted cash:
Cash and cash equivalents
$
950
$
1,763
$
1,384
$
1,229
$
1,713
Restricted cash
59
52
50
49
46
Total cash, cash equivalents and restricted cash
$
1,009
$
1,815
$
1,434
$
1,278
$
1,759
5
PRODUCTION
2026
2025
Quarter 2
Quarter 1
Quarter 4
Quarter 3
Quarter 2
Oil (MBbls/d)
Permian
329
225
234
223
228
Rockies
105
103
102
111
104
Eagle Ford
48
43
39
41
39
Anadarko
17
12
12
12
13
Marcellus
—
—
—
—
—
Other
4
4
3
3
3
Total
503
387
390
390
387
Natural gas liquids (MBbls/d)
Permian
206
137
146
134
133
Rockies
47
46
51
53
47
Eagle Ford
15
11
10
11
11
Anadarko
45
24
24
30
31
Marcellus
—
—
—
—
—
Other
1
—
—
—
—
Total
314
218
231
228
222
Gas (MMcf/d)
Permian
1,274
831
848
834
823
Rockies
237
230
234
245
228
Eagle Ford
85
76
56
70
62
Anadarko
396
235
246
261
274
Marcellus
1,258
—
—
—
—
Other
2
1
1
—
1
Total
3,252
1,373
1,385
1,410
1,388
Total oil equivalent (MBoe/d)
Permian
748
501
521
496
498
Rockies
192
187
192
205
189
Eagle Ford
77
66
57
63
60
Anadarko
128
75
77
85
90
Marcellus
210
—
—
—
—
Other
4
4
4
4
4
Total
1,359
833
851
853
841
6
CAPITAL EXPENDITURES
(in millions)
2026
2025
Quarter 2
Quarter 1
Quarter 4
Quarter 3
Quarter 2
Permian
$
731
$
451
$
454
$
465
$
482
Rockies
196
218
231
191
228
Eagle Ford
97
120
137
141
122
Anadarko
129
38
32
25
45
Marcellus
70
—
—
—
—
Other
3
1
2
1
2
Total upstream capital
$
1,226
$
828
$
856
$
823
$
879
Midstream and Corporate
43
20
27
36
53
Capital expenditures
$
1,269
$
848
$
883
$
859
$
932
Acquisitions
2,729
151
141
197
16
Total capital
$
3,998
$
999
$
1,024
$
1,056
$
948
SUPPLEMENTAL INFORMATION FOR CAPITAL EXPENDITURES
GROSS OPERATED SPUDS
2026
2025
Quarter 2
Quarter 1
Quarter 4
Quarter 3
Quarter 2
Permian
103
57
48
60
57
Rockies
26
27
26
21
23
Eagle Ford
7
12
18
24
22
Anadarko
11
7
8
10
11
Marcellus
3
—
—
—
—
Total
150
103
100
115
113
GROSS OPERATED WELLS TIED-IN
2026
2025
Quarter 2
Quarter 1
Quarter 4
Quarter 3
Quarter 2
Permian
88
53
45
61
57
Rockies
31
33
17
22
30
Eagle Ford
14
24
23
10
10
Anadarko
13
—
10
9
13
Marcellus
11
—
—
—
—
Total
157
110
95
102
110
NET OPERATED WELLS TIED-IN
2026
2025
Quarter 2
Quarter 1
Quarter 4
Quarter 3
Quarter 2
Permian
67
49
35
40
46
Rockies
21
27
14
18
27
Eagle Ford
14
23
19
10
7
Anadarko
7
—
4
5
5
Marcellus
11
—
—
—
—
Total
120
99
72
73
85
AVERAGE LATERAL LENGTH
(based on wells tied-in)
2026
2025
Quarter 2
Quarter 1
Quarter 4
Quarter 3
Quarter 2
Permian
10,600’
11,000’
11,800’
11,100’
10,500’
Rockies
11,500’
12,500’
11,600’
13,000’
12,300’
Eagle Ford
8,900’
7,000’
5,900’
7,200’
8,200’
Anadarko
10,000’
—
10,100’
10,000’
10,000’
Marcellus
14,000’
—
—
—
—
Total
10,800’
10,500’
10,200’
10,300’
10,300’
7
REALIZED PRICING
BENCHMARK PRICES
(average prices)
2026
2025
Quarter 2
Quarter 1
Quarter 4
Quarter 3
Quarter 2
Oil ($/Bbl) - West Texas Intermediate (Cushing)
$
92.47
$
72.10
$
59.09
$
64.92
$
63.95
Natural Gas ($/Mcf) - Henry Hub
$
2.90
$
5.05
$
3.55
$
3.07
$
3.44
NGL ($/Bbl) - Mont Belvieu Blended
$
29.23
$
24.86
$
23.67
$
24.25
$
25.58
REALIZED PRICES
2026
2025
Quarter 2
Quarter 1
Quarter 4
Quarter 3
Quarter 2
Oil (Per Bbl)
Permian
$
96.08
$
70.89
$
57.94
$
63.89
$
62.60
Rockies
92.01
67.14
54.99
61.14
59.05
Eagle Ford
95.89
68.98
58.18
64.87
63.14
Anadarko
94.92
70.24
57.46
63.68
62.09
Marcellus
—
—
—
—
—
Realized price without hedges
95.10
69.66
57.19
63.21
61.70
Cash settlements
(7.01
)
(1.72
)
2.47
0.78
1.27
Realized price, including cash settlements
$
88.09
$
67.94
$
59.66
$
63.99
$
62.97
Natural gas liquids (Per Bbl)
Permian
$
23.29
$
19.60
$
18.42
$
18.25
$
19.10
Rockies
15.11
7.83
9.02
10.26
9.27
Eagle Ford
27.44
24.54
22.28
22.85
23.03
Anadarko
26.17
23.23
21.50
20.94
22.41
Marcellus
—
—
—
—
—
Realized price without hedges
22.70
17.80
16.86
17.01
17.71
Cash settlements
—
—
0.23
0.17
0.11
Realized price, including cash settlements
$
22.70
$
17.80
$
17.09
$
17.18
$
17.82
Gas (Per Mcf)
Permian
$
(2.03
)
$
0.73
$
0.96
$
1.50
$
1.34
Rockies
(0.64
)
1.80
0.33
(0.42
)
(0.50
)
Eagle Ford
2.36
4.01
3.14
2.78
3.01
Anadarko
2.40
4.03
3.13
2.57
2.86
Marcellus
2.17
—
—
—
—
Realized price without hedges
0.35
1.66
1.33
1.43
1.41
Cash settlements
0.70
0.02
0.25
0.15
0.15
Realized price, including cash settlements
$
1.05
$
1.68
$
1.58
$
1.58
$
1.56
Total oil equivalent (Per Boe)
Permian
$
45.28
$
38.44
$
32.72
$
36.18
$
35.92
Rockies
53.31
41.18
32.04
35.33
34.29
Eagle Ford
67.86
53.11
45.82
48.85
48.32
Anadarko
29.02
31.29
25.62
23.97
25.28
Marcellus
13.02
—
—
—
—
Realized price without hedges
41.30
39.70
32.92
35.82
35.43
Cash settlements
(0.94
)
(0.76
)
1.60
0.64
0.87
Realized price, including cash settlements
$
40.36
$
38.94
$
34.52
$
36.46
$
36.30
8
ASSET MARGINS
BENCHMARK PRICES
(average prices)
2026
2025
Quarter 2
Quarter 1
Quarter 4
Quarter 3
Quarter 2
Oil ($/Bbl) - West Texas Intermediate (Cushing)
$
92.47
$
72.10
$
59.09
$
64.92
$
63.95
Natural Gas ($/Mcf) - Henry Hub
$
2.90
$
5.05
$
3.55
$
3.07
$
3.44
NGL ($/Bbl) - Mont Belvieu Blended
$
29.23
$
24.86
$
23.67
$
24.25
$
25.58
PER-UNIT CASH MARGIN
BY ASSET (per Boe)
2026
2025
Quarter 2
Quarter 1
Quarter 4
Quarter 3
Quarter 2
Permian
Realized price
$
45.28
$
38.44
$
32.72
$
36.18
$
35.92
Lease operating expenses
(5.39
)
(5.19
)
(5.11
)
(5.38
)
(5.54
)
Gathering, processing & transportation
(2.81
)
(2.57
)
(2.57
)
(2.94
)
(3.17
)
Production & property taxes
(3.69
)
(2.91
)
(2.44
)
(2.52
)
(2.63
)
Field-level cash margin
$
33.39
$
27.77
$
22.60
$
25.34
$
24.58
Rockies
Realized price
$
53.31
$
41.18
$
32.04
$
35.33
$
34.29
Lease operating expenses
(8.87
)
(10.02
)
(9.05
)
(8.27
)
(9.13
)
Gathering, processing & transportation
(1.03
)
(1.04
)
(1.03
)
(0.99
)
(0.86
)
Production & property taxes
(4.43
)
(3.32
)
(2.64
)
(3.04
)
(2.85
)
Field-level cash margin
$
38.98
$
26.80
$
19.32
$
23.03
$
21.45
Eagle Ford
Realized price
$
67.86
$
53.11
$
45.82
$
48.85
$
48.32
Lease operating expenses
(6.72
)
(7.98
)
(7.90
)
(7.83
)
(7.52
)
Gathering, processing & transportation
(2.34
)
(2.14
)
(1.98
)
(2.27
)
(1.94
)
Production & property taxes
(3.41
)
(2.81
)
(2.43
)
(2.89
)
(3.02
)
Field-level cash margin
$
55.39
$
40.18
$
33.51
$
35.86
$
35.84
Anadarko
Realized price
$
29.02
$
31.29
$
25.62
$
23.97
$
25.28
Lease operating expenses
(3.18
)
(3.76
)
(3.19
)
(3.25
)
(2.98
)
Gathering, processing & transportation
(5.45
)
(6.64
)
(6.19
)
(5.98
)
(6.13
)
Production & property taxes
(1.55
)
(1.71
)
(1.22
)
(1.30
)
(1.32
)
Field-level cash margin
$
18.84
$
19.18
$
15.02
$
13.44
$
14.85
Marcellus
Realized price
$
13.02
—
—
—
—
Lease operating expenses
(0.59
)
—
—
—
—
Gathering, processing & transportation
(5.36
)
—
—
—
—
Production & property taxes
(0.18
)
—
—
—
—
Field-level cash margin
$
6.89
—
—
—
—
Devon - Total
Realized price
$
41.30
$
39.70
$
32.92
$
35.82
$
35.43
Lease operating expenses
(5.06
)
(6.48
)
(6.11
)
(6.14
)
(6.31
)
Gathering, processing & transportation
(3.16
)
(2.54
)
(2.49
)
(2.71
)
(2.86
)
Production & property taxes
(3.05
)
(2.90
)
(2.39
)
(2.56
)
(2.58
)
Field-level cash margin
$
30.03
$
27.78
$
21.93
$
24.41
$
23.68
9
NON-GAAP MEASURES
(all monetary values in millions, except
per share amounts)
T2Devon’s earnings materials include non-GAAP financial measures. These non-GAAP measures are not alternatives to GAAP measures, and you should not consider these non-GAAP measures in isolation or as a substitute for analysis of our results as
reported under GAAP. Below is additional disclosure regarding each of the non-GAAP measures used in the earnings materials, including reconciliations to their most directly comparable GAAP measure.
The earnings materials may include forward-looking non-GAAP measures. The company is unable to provide reconciliations
of these forward-looking non-GAAP measures, because components of the calculations are inherently unpredictable, such as changes to current assets and liabilities, the timing of changes in capital accruals,
unknown future events and estimating certain future GAAP measures. The inability to reliably quantify certain components of the calculation would significantly affect the usefulness and accuracy of a reconciliation.
CORE EARNINGS
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. Accordingly, the company also uses the measures of core earnings and core earnings per
share attributable to Devon. Devon believes these non-GAAP measures facilitate comparisons of its performance to earnings estimates published by securities analysts. Devon also believes these non-GAAP measures can facilitate comparisons of its performance between periods and to the performance of its peers. The following table summarizes the effects of these items on second-quarter 2026 and first-quarter
2026 earnings.
Quarter Ended June 30, 2026
Before-tax
After-tax
After NCI
Per Diluted
Share
Total
Earnings (GAAP)
$
2,384
$
1,911
$
1,911
$
2.03
Adjustments:
Asset dispositions
(25
)
(20
)
(20
)
(0.02
)
Asset and exploration impairments
8
6
6
0.01
Deferred tax asset valuation allowance
—
(56
)
(56
)
(0.06
)
Fair value changes in financial instruments
(528
)
(408
)
(408
)
(0.43
)
Restructuring and transaction costs
246
201
201
0.21
Gain on equity investment
(201
)
(155
)
(155
)
(0.17
)
Core earnings (Non-GAAP)
$
1,884
$
1,479
$
1,479
$
1.57
Quarter Ended March 31, 2026
Before-tax
After-tax
After NCI
Per Diluted
Share
Total
Earnings (GAAP)
$
166
$
120
$
120
$
0.19
Adjustments:
Asset dispositions
1
1
1
—
Asset and exploration impairments
2
2
2
0.01
Fair value changes in financial instruments
644
499
499
0.81
Restructuring and transaction costs
19
19
19
0.03
Core earnings (Non-GAAP)
$
832
$
641
$
641
$
1.04
10
EBITDAX
Devon believes EBITDAX provides information useful in assessing operating and financial performance across periods. Devon computes EBITDAX as net earnings
before financing costs, net; income tax expense; exploration expenses; depreciation, depletion and amortization; asset disposition gains and losses; non-cash share-based compensation; non-cash valuation changes for derivatives and financial instruments; restructuring and transaction costs; gain on equity investments; accretion on discounted liabilities; and other items not related to normal
operations. EBITDAX as defined by Devon may not be comparable to similarly titled measures used by other companies.
Q2 ‘26
Q1 ‘26
Q4 ‘25
Q3 ‘25
Q2
Annualized
Q2 ‘25
Net earnings (GAAP)
$
1,911
$
120
$
562
$
693
$
7,644
$
917
Financing costs, net
125
109
107
109
500
116
Income tax expense
473
46
185
219
1,892
244
Exploration expenses
16
25
5
8
64
20
Depreciation, depletion and amortization
1,416
904
890
879
5,664
914
Asset dispositions
(25
)
1
(1
)
(37
)
(100
)
(307
)
Share-based compensation
33
22
22
21
132
22
Derivative & financial instrument non-cash val.
changes
(530
)
644
(59
)
(30
)
(2,120
)
(169
)
Restructuring and transaction costs
246
19
—
9
984
9
Gain on equity investment
(201
)
—
—
—
(804
)
—
Accretion on discounted liabilities and other
14
17
(12
)
(11
)
56
2
EBITDAX (Non-GAAP)
$
3,478
$
1,907
$
1,699
$
1,860
$
13,912
$
1,768
11
NET DEBT
Devon defines net debt as debt (includes short-term and long-term debt) less cash, cash equivalents and restricted cash. Devon believes that netting these
sources of cash against debt provides a clearer picture of the future demands on cash from Devon to repay debt.
2026
2025
Quarter 2
Quarter 1
Quarter 4
Quarter 3
Total debt (GAAP)
$
11,388
$
8,386
$
8,389
$
8,391
Less:
Cash, cash equivalents and restricted cash
(1,009
)
(1,815
)
(1,434
)
(1,278
)
Net debt (Non-GAAP)
$
10,379
$
6,571
$
6,955
$
7,113
NET DEBT-TO-EBITDAX
Devon defines net debt-to-EBITDAX as net debt divided by an annualized EBITDAX
measure. Devon believes this ratio provides information useful to investors in assessing the company’s credit position and debt leverage.
2026
2025
Quarter 2
Quarter 1
Quarter 4
Quarter 3
Net debt (Non-GAAP)
$
10,379
$
6,571
$
6,955
$
7,113
EBITDAX (Non-GAAP) (1)
$
8,944
$
7,234
$
7,413
$
7,845
Netdebt-to-EBITDAX (Non-GAAP)
1.2
0.9
0.9
0.9
(1)
EBITDAX is an annualized measure using a trailing twelve-month calculation.
ADJUSTED FREE CASH FLOW
Devon defines adjusted free cash
flow as total operating cash flow before balance sheet changes adjusted for after-tax restructuring costs and accrued capital expenditures. Devon believes adjusted free cash flow provides a useful measure of
available cash generated by operating activities for other investing and financing activities.
2026
2025
2024
Quarter 2
Quarter 1
Full Year
Full Year
Total operating cash flow (GAAP)
$
3,674
$
1,655
$
6,711
$
6,600
Changes in assets and liabilities, net
(924
)
299
(151
)
217
Cash from operations before balance sheet changes(Non-GAAP)
2,750
1,954
6,560
6,817
Cash restructuring and transaction costs, net of tax(Non-GAAP) (1)
174
19
26
9
Adjusted operating cash flow (Non-GAAP)
2,924
1,973
6,586
6,826
Capital expenditures (Accrued) (2)
(1,269
)
(848
)
(3,638
)
(3,631
)
Adjusted free cash flow (Non-GAAP)
$
1,655
$
1,125
$
2,948
$
3,195
(1)
Cash restructuring and transaction costs is net of the associated current tax benefit, after taking into
account permanently non-deductible transaction costs.
(2)
Excludes acquisition capital. Q2 2026, Q1 2026, full-year 2025 and full-year 2024 exclude acquisition costs of
$2,729 million, $151 million, $362 million and $243 million, respectively.
REINVESTMENT RATE
Devon defines reinvestment rate as accrued capital expenditures (excluding acquisitions) divided by adjusted operating cash flow. Adjusted operating cash
flow is our total operating cash flow before balance sheet changes adjusted for after-tax restructuring costs; the reconciliation calculation of adjusted operating cash flow is provided above under
“Adjusted Free Cash Flow.” Devon believes reinvestment rate provides useful information to our investors as an indicator of the capital demands of our business relative to the cash flow generated from normal business operations.
2026
2025
2024
Quarter 2
Quarter 1
Full Year
Full Year
Capital expenditures (Accrued) (1)
$
1,269
$
848
$
3,638
$
3,631
Adjusted operating cash flow (Non-GAAP)
$
2,924
$
1,973
$
6,586
$
6,826
Reinvestment rate (Non-GAAP)
43
%
43
%
55
%
53
%
(1)
Excludes acquisition capital. Q2 2026, Q1 2026, full-year 2025 and full-year 2024 exclude acquisition costs of
$2,729 million, $151 million, $362 million and $243 million, respectively.
12
THIRD-QUARTER AND FULL-YEAR 2026 GUIDANCE
Note:T3Devon’s full-year 2026 guidance reflects standalone Devon operations plus Coterra beginning on May 7, 2026.
PRODUCTION GUIDANCE
Quarter 3
Full Year
Low
High
Low
High
Oil (MBbls/d)
550
560
495
505
Natural gas liquids (MBbls/d)
375
385
319
326
Gas (MMcf/d)
4,450
4,500
3,300
3,400
Total oil equivalent (MBoe/d)
1,660
1,690
1,364
1,398
CAPITAL EXPENDITURES GUIDANCE
Quarter 3
Full Year
(in millions)
Low
High
Low
High
Permian
$2,900
Rockies
$875
Eagle Ford
$475
Anadarko
$275
Marcellus
$225
Upstream capital
$
1,375
$
1,450
$
4,675
$
4,825
Midstream and other capital
25
50
125
175
T4Total capital
$
1,400
$
1,500
$
4,800
$
5,000
PRICE REALIZATIONS GUIDANCE
Quarter 3
Full Year
Low
High
Low
High
Oil - % of WTI
98
%
102
%
98
%
100
%
NGL - % of WTI
25
%
30
%
24
%
26
%
Natural gas - % of Henry Hub
50
%
60
%
40
%
50
%
OTHER GUIDANCE ITEMS
Quarter 3
Full Year
($ millions, except Boe and %)
Low
High
Low
High
LOE per BOE
$
4.60
$
4.90
$
5.00
$
5.20
GP&T per BOE
$
3.40
$
3.50
$
3.00
$
3.20
Production and property taxes as % of upstream sales
6.5
%
7.5
%
6.5
%
7.5
%
Exploration expenses
$
5
$
15
$
70
$
90
Depreciation, depletion and amortization per BOE
$
10.75
$
11.25
$
11.00
$
11.50
General and administrative expenses per BOE
$
1.25
$
1.35
$
1.35
$
1.45
Financing costs, net
$
145
$
155
$
495
$
515
INCOME TAX GUIDANCE
Quarter 3
Full Year
(% of pre-tax earnings)
Low
High
Low
High
Current income tax rate
15
%
17
%
11
%
13
%
Effective income tax rate
21
%
23
%
20
%
22
%
1
2026 & 2027 HEDGING POSITIONS
Oil Commodity Hedges
Price Swaps
Price Collars
Period
Volume (Bbls/d)
Weighted
Average Price
($/Bbl)
Volume
(Bbls/d)
Weighted
Average Floor
Price ($/Bbl)
Weighted
Average Ceiling
Price ($/Bbl)
Q3-Q4 2026
10,000
$
66.13
84,500
$
56.25
$
73.11
Q1-Q4 2027
—
$
—
38,466
$
59.04
$
85.41
Three Way Collars
Period
Volume (Bbls/d)
Weighted
Average Floor
Sold Price
($/Bbl)
Weighted
Average Floor
Purchased Price
($/Bbl)
Weighted
Average Ceiling
Price ($/Bbl)
Q3-Q4 2026
113,000
$
49.36
$
59.36
$
72.36
Q1-Q4 2027
57,397
$
47.25
$
57.25
$
73.14
Oil Basis Swaps
Period
Index
Volume (Bbls/d)
Weighted Average
Differential to WTI
($/Bbl)
Q3-Q4 2026
WTI/NYMEX
83,500
$
0.95
Q3-Q4 2026
Midland Sweet
46,000
$
1.10
Q3-Q4 2026
WTI/Brent
8,000
$
(5.66
)
Q3-Q4 2026
NYMEX Roll
95,000
$
1.74
Q1-Q4 2027
WTI/NYMEX
32,466
$
1.04
Q1-Q4 2027
Magellan East Houston
27,000
$
1.85
Q1-Q4 2027
Midland Sweet
48,000
$
1.02
Natural Gas Commodity Hedges - Henry Hub
Price Swaps
Price Collars
Period
Volume (MMBtu/d)
Weighted
Average Price
($/MMBtu)
Volume
(MMBtu/d)
Weighted
Average Floor
Price ($/MMBtu)
Weighted
Average Ceiling
Price
($/MMBtu)
Q3-Q4 2026
247,500
$
3.80
1,130,000
$
3.36
$
5.47
Q1-Q4 2027
—
$
—
490,000
$
3.17
$
5.33
Natural Gas Basis Swaps
Period
Index
Volume (MMBtu/d)
Weighted Average
Differential to Henry
Hub ($/MMBtu)
Q3-Q4 2026
Houston Ship Channel
50,000
$
(0.29
)
Q3-Q4 2026
Transco Leidy
250,000
$
(0.78
)
Q3-Q4 2026
Transco Zone 6 Non-NY
250,000
$
(0.16
)
Q3-Q4 2026
WAHA
350,000
$
(1.86
)
Q1-Q4 2027
Transco Leidy
47,500
$
(0.65
)
Q1-Q4 2027
Transco Zone 6 Non-NY
150,000
$
0.35
Q1-Q4 2027
WAHA
135,041
$
(1.30
)
T5Devon’s oil derivatives settle against the average of the prompt month NYMEX West Texas Intermediate futures price.
Devon’s natural gas derivatives settle against the Inside FERC first of the month Henry Hub index and the end of month NYMEX index. Devon’s NGL derivatives settle against the average of the prompt month OPIS Mont Belvieu, Texas index.
Commodity hedge positions are shown as of June 30, 2026.
2
Mentions · how they’re counted
| Category | Underlined | Word counter | Model’s count |
|---|---|---|---|
| AI AI, artificial intelligence, generative AI, machine learning, large language model, LLM | 0 | 0 | 0 |
| Layoffs layoffs, RIF, headcount reduction, workforce optimization, restructuring | 9 | — | 0 |
| Recession recession, downturn, contraction, slowdown | 0 | 0 | 0 |
| Tariffs tariff, trade war, trade barriers, trade restrictions, trade policy | 0 | 0 | 0 |
| Buybacks share repurchase, buyback program | 0 | — | 1 |
Underlines use the same word lists the scores use. AI, recession and tariffs follow Palanor’s word counter, so those counts match it exactly on the same text. Layoffs and buybacks use the terms the model was given. The model’s count is an estimate by meaning, not by string, so it can differ from the underlines.
Not placed in the text
These quotes are stored with a score, but no passage here matches them closely enough to highlight. Rather than point at the wrong passage, they are listed as stored.
Theme · Production growth
“Total oil equivalent (MBoe/d) 1,359”
Source: SEC EDGAR · public domain · Highlights by Palanor