EXHIBIT 99.1
News Release		Devon Energy Corporation 20 North Broadway Oklahoma City, OK 73102-8260

Investor Contact		Zack Hager		405 552 4526
Media Contact		Chip Minty		405 228 8647

DEVON ENERGY’S SECOND-QUARTER 2008 NET EARNINGS INCREASE 44 PERCENT TO $1.3 BILLION

OKLAHOMA CITY — August 6, 2008 — Devon Energy Corporation (NYSE:DVN) today reported net earnings for the quarter ended June 30, 2008, of $1.3 billion, or $2.91 per common share ($2.88 per diluted common share). This is a 44 percent increase compared with Devon’s second-quarter 2007 net earnings of $904 million, or $2.02 per common share ($2.00 per diluted common share).

For the six months ended June 30, 2008, Devon reported net earnings of $2.1 billion, or $4.59 per common share ($4.55 per diluted common share). This compares with net earnings for the six months ended June 30, 2007, of $1.6 billion, or $3.48 per common share ($3.44 per diluted common share).

Earnings $3.39 per Share Excluding Items Not Estimated by Analysts

Second-quarter 2008 reported net earnings of $1.3 billion were affected by certain items securities analysts typically exclude from their published estimates. Excluding these adjusting items, Devon earned $1.5 billion or $3.39 per diluted common share.

The most significant of the adjusting items impacting continuing operations was a non-cash, unrealized loss on oil and natural gas derivative instruments of $912 million pre-tax ($584 million after tax). Also impacting continuing operations was $312 million of income tax expense attributable to the repatriation of cash from outside the United States and to a related income tax policy election.

The most significant adjusting item impacting discontinued operations was a $736 million pre-tax gain ($647 million after tax) on divestitures of assets in Africa. These and other adjusting items are discussed in more detail later in this news release.

Oil and Gas Sales Increase by 65 Percent

Sales of oil, natural gas and natural gas liquids from continuing operations increased 65 percent to $4 billion in the second quarter of 2008. The combined effects of increased oil and gas production and higher oil, natural gas and natural gas liquids prices led to the increase in sales.

Combined oil, natural gas and natural gas liquids production from continuing operations reached 58.5 million oil-equivalent barrels (Boe) in the second quarter of 2008. This was a four percent increase compared with the second quarter of 2007. The company produced 643 thousand Boe per day in the second quarter of 2008. This compares with production of 618 thousand Boe per day in the second quarter of 2007 and 640 thousand Boe per day in the first quarter of 2008. Devon has increased oil and natural gas production from retained properties for nine consecutive quarters.

U.S. Onshore and Canadian Operations Lead Quarterly Highlights

Devon drilled 494 wells in the second quarter of 2008, with an overall success rate of 98 percent. Following are recent operating highlights:

•		Devon’s second-quarter net exit-rate production from the Barnett Shale field in north Texas reached almost 1.1 billion cubic feet of natural gas equivalent per day. Devon is the largest producer in the field and brought 189 new Barnett Shale wells on line in the second quarter of 2008.
•		Devon plans to drill more than 650 wells in the Barnett Shale in 2008 and has set a net production target of 1.2 billion cubic feet of natural gas equivalent per day by year-end.
•		In east Texas and northwest Louisiana, Devon added to its lease position in the Haynesville Shale play, bringing its total Haynesville lease holdings to 483,000 net acres.
•		In the Groesbeck area in east Texas, Devon commenced production from three high-rate gas wells in the second quarter. Devon has 100-percent working interests in all three wells, with initial production rates averaging 16.2 million cubic feet of natural gas per day from each well.
•		The company drilled two long-lateral horizontal wells in the Woodford Shale in Coal County, Oklahoma, in the second quarter with excellent results. Initial production rates from the two wells were 7.1 million and 6.7 million cubic feet of natural gas per day. Devon’s working interests in the two wells are 66 percent and 73 percent, respectively.
•		In Canada, Devon’s wholly-owned Jackfish oil sands project reached a cumulative production milestone of one million barrels of oil in the second quarter of 2008. Second-quarter exit-rate production was about 14,500 barrels per day. Production is expected to reach plant capacity of 35,000 barrels per day in the first half of 2009.
•		Also in Canada in the second quarter, Devon increased its lease position in the Horn River Shale play in British Columbia to more than 100,000 net acres. The company is now planning its upcoming winter drilling program for the Horn River area.

African Divestitures Substantially Complete

Devon has now completed substantially all of its planned divestitures in Africa. In May, the company closed the $205.5 million sale of its assets in Gabon. In June, Devon closed the $2.2 billion sale of its assets in Equatorial Guinea. In aggregate, the sale prices of the combined African divestures exceeded $3 billion before taxes. The company expects to close the remaining approximately $250 million in transactions later in 2008.

In accordance with U.S. accounting standards, Devon has classified the assets, liabilities and results of its operations in Africa as discontinued operations for all accounting periods presented in this release. Included with this release is a table of revenues, expenses and production categories and amounts reclassified as discontinued operations for each period presented.

Marketing and Midstream Profit Rises with Product Prices

Marketing and midstream operating profit increased 71 percent to $204 million in the second quarter of 2008. For comparison, marketing and midstream operating profit was $119 million in the second quarter of 2007. The increase was attributable to higher throughput and higher natural gas and natural gas liquids prices.

Expenses Track Increased Production and Activity Levels

Expenses in most categories were generally in line with expectations in the second quarter of 2008. However, second-quarter general and administrative expenses (G&A) exceeded previous estimates at $180 million. This compares with $113 million in the second quarter of 2007. Higher employee-related costs were the largest contributor to the year-over-year increase. In addition, $27 million of the increase was a one-time charge attributable to a change in the company’s vesting policy for stock grants. Devon believes this modified benefits policy better reflects industry practices. Devon has also increased the size of its workforce to support expanding levels of investment in long cycle-time exploration and development projects.

Interest expense decreased in the second quarter of 2008 to $90 million, compared with interest expense of $107 million in the second quarter of 2007. The decrease reflects a decline in outstanding debt as the company repaid all of its commercial paper and credit facility balances during the second quarter of 2008.

Repatriation of International Cash Increases Current Income Tax Rate

Current income tax expense on earnings from continuing operations was $414 million in the second quarter of 2008. This amount included $295 million of U.S. income tax attributable to the repatriation of cash from outside the United States and related income tax policy elections. During the second quarter, the proceeds from Devon’s African divestitures combined with cash repatriated from foreign subsidiaries totaled approximately $3 billion.

Record Cash Flow and Debt Repayments Further Strengthen Balance Sheet

Cash flow before balance sheet changes reached a record $2.7 billion in the second quarter of 2008. This was a 48 percent increase compared with the second quarter of 2007. The company funded capital expenditures of $2 billion, including $1.7 billion of exploration and development capital, in the quarter. This resulted in free cash flow of approximately $700 million during the second quarter.

In addition to free cash flow of $700 million, Devon also received $2.4 billion of pre-tax proceeds from its African divestitures in the second quarter. Utilizing free cash flow, proceeds of the divestitures and cash on hand, the company deployed $2.6 billion to retire commercial paper and other short-term borrowings and to repurchase over two million shares of its common stock. In the first seven months of 2008, Devon repurchased 5.7 million shares of its common stock at a cost of $590 million.

Devon also redeemed its $150 million 6.49 percent Series A Cumulative Preferred Stock in the second quarter. Cash and short-term investments were $1.8 billion at June 30, 2008.

Net debt as a percentage of adjusted capitalization decreased to 11 percent at June 30, 2008. Reconciliations of cash flow before balance sheet changes, free cash flow, net debt and adjusted capitalization, which are non-GAAP measures, are provided in this release.

Accounting for Derivative Instruments

Devon accounts for derivative instruments using mark-to-market accounting. As a result, for each reporting period the company recognizes in earnings the unrealized changes in the fair values of its derivative instruments. A second-quarter unrealized loss on derivative instruments was the result of rising oil and natural gas prices during the quarter. The company could record unrealized gains or losses on oil and natural gas derivative instruments in subsequent quarters depending upon the direction of commodity prices.

Items Excluded from Published Earnings Estimates

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. These items and their effects upon reported earnings for the second quarter of 2008 were as follows:

Items affecting continuing operations-

•

A change in fair value of non-oil and gas derivative financial instruments increased second-quarter earnings by $40 million pre-tax ($25 million after tax).

•

An unrealized loss on oil and natural gas derivative financial instruments decreased second-quarter earnings by $912 million pre-tax ($584 million after tax).

•

Income tax expense related to the repatriation of cash from outside the United States and a related change in an income tax election decreased second-quarter after-tax earnings by $312 million.

•

A modification to the company’s stock compensation vesting policy decreased second-quarter earnings by $27 million pre-tax ($17 million after tax).

Items affecting discontinued operations-

•

Divestitures of assets in Africa resulted in a second-quarter 2008 gain of $736 million pre-tax ($647 million after tax).

•

The decisions to exit Africa generated other financial benefits that increased second-quarter earnings by $21 million pre-tax ($11 million after tax).

The following tables summarize the effects of these items on second-quarter earnings and income taxes.

Summary of Items Typically Excluded by Securities Analysts (in millions)
Quarter Ended June 30, 2008

Continuing Operations		Pre-tax																After tax				Cash Flow Before
		Earnings				Income Tax Effect												Earnings				Balance Sheet
		Effect				Current				Deferred				Total				Effect				Changes Effect
Change in fair value of non-oil and gas derivative instruments		$	40				—				15				15				25				—
Unrealized loss on oil and gas derivative financial instruments			(912	)			—				(328	)			(328	)			(584	)			—
Taxes on repatriation and tax policy elections			—				295				17				312				(312	)			(295	)
Stock compensation vesting			(27	)			—				(10	)			(10	)			(17	)			—
Totals		$	(899	)			295				(306	)			(11	)			(888	)			(295	)

Discontinued Operations		Pre-tax																After tax				Cash Flow Before
		Earnings				Income Tax Effect												Earnings				Balance Sheet
		Effect				Current				Deferred				Total				Effect				Changes Effect
Gain on sale of West African assets			736				518				(429	)			89				647				—
Financial benefits of decision to exit Africa			21				—				10				10				11				—
Totals		$	757				518				(419	)			99				658				—

In aggregate, these items decreased second-quarter 2008 net earnings by $230 million, or 52 cents per common share (51 cents per diluted share). These items and their associated tax effects decreased second-quarter 2008 cash flow before balance sheet changes by $295 million.

Conference Call to be Webcast Today

Devon will discuss its second-quarter 2008 financial and operating results in a conference call webcast today. The webcast will begin at 10 a.m. Central Time (11 a.m. Eastern Time). The webcast may be accessed from Devon’s internet home page at www.devonenergy.com.

This press release includes “forward-looking statements” as defined by the Securities and Exchange Commission. 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, inflation or lack of availability of goods and services, environmental risks, drilling risks and regulatory changes. 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 United States Securities and Exchange Commission permits oil and gas companies, in their filings with the SEC, to disclose only proved reserves that a company has demonstrated by actual production or conclusive formation tests to be economically and legally producible under existing economic and operating conditions. This release may contain certain terms, such as resource potential, reserve potential, probable reserves, possible reserves and exploration target size. The SEC guidelines strictly prohibit us from including these terms in filings with the SEC. U.S. investors are urged to consider closely the disclosure in our Form 10-K, File No. 001-32318, available from us at Devon Energy Corporation, Attn. Investor Relations, 20 North Broadway, Oklahoma City, OK 73102. You can also obtain this form from the SEC by calling 1-800-SEC-0330.

Devon Energy Corporation is an Oklahoma City-based independent energy company engaged in oil and gas exploration and production. Devon is the largest 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 royalties)		Quarter Ended								Six Months Ended
Excludes discontinued operations		June 30,								June 30,
		2008				2007				2008				2007
Total Period Production
Natural Gas (Bcf)
U.S. Onshore			162.3				135.9				314.8				263.6
U.S. Offshore			14.2				18.9				32.5				37.5
Total U.S.			176.5				154.8				347.3				301.1
Canada			53.0				57.0				104.7				112.3
International			0.4				0.5				1.0				0.8
Total Natural Gas			229.9				212.3				453.0				414.2
Oil (MMBbls)
U.S. Onshore			2.8				2.9				5.7				5.7
U.S. Offshore			1.8				2.0				3.6				3.7
Total U.S.			4.6				4.9				9.3				9.4
Canada			5.3				4.0				9.9				7.5
International			3.3				5.5				8.1				10.8
Total Oil			13.2				14.4				27.3				27.7
Natural Gas Liquids (MMBbls)
U.S. Onshore			5.8				5.1				11.6				9.9
U.S. Offshore			0.2				0.2				0.4				0.3
Total U.S.			6.0				5.3				12.0				10.2
Canada			1.0				1.1				1.9				2.2
International			—				—				—				—
Total Natural Gas Liquids			7.0				6.4				13.9				12.4
Oil Equivalent (MMBoe)
U.S. Onshore			35.7				30.7				69.7				59.5
U.S. Offshore			4.4				5.3				9.4				10.3
Total U.S.			40.1				36.0				79.1				69.8
Canada			15.1				14.6				29.4				28.4
International			3.3				5.6				8.3				10.9
Total Oil Equivalent			58.5				56.2				116.8				109.1
Average Daily Production
Natural Gas (MMcf)
U.S. Onshore			1,783.0				1,493.7				1,729.7				1,456.3
U.S. Offshore			156.1				207.6				178.7				207.0
Total U.S.			1,939.1				1,701.3				1,908.4				1,663.3
Canada			582.6				626.2				575.0				620.7
International			4.8				5.6				5.4				4.3
Total Natural Gas			2,526.5				2,333.1				2,488.8				2,288.3
Oil (MBbls)
U.S. Onshore			30.9				31.5				31.0				31.1
U.S. Offshore			19.9				22.0				19.9				20.5
Total U.S.			50.8				53.5				50.9				51.6
Canada			58.0				44.0				54.7				41.5
International			35.8				60.9				44.6				59.8
Total Oil			144.6				158.4				150.2				152.9
Natural Gas Liquids (MBbls)
U.S. Onshore			64.1				56.4				63.7				54.8
U.S. Offshore			2.1				2.2				2.0				1.8
Total U.S.			66.2				58.6				65.7				56.6
Canada			10.7				11.7				10.8				12.0
International			—				—				—				—
Total Natural Gas Liquids			76.9				70.3				76.5				68.6
Oil Equivalent (MBoe)
U.S. Onshore			392.2				336.9				382.9				328.7
U.S. Offshore			48.0				58.8				51.7				56.8
Total U.S.			440.2				395.7				434.6				385.5
Canada			165.8				160.1				161.3				157.0
International			36.6				61.8				45.6				60.5
Total Oil Equivalent			642.6				617.6				641.5				603.0

DEVON ENERGY CORPORATION
FINANCIAL AND OPERATIONAL INFORMATION

BENCHMARK PRICES		Quarter Ended								Six Months Ended
(average prices)		June 30,								June 30,
		2008				2007				2008				2007
Natural Gas ($/Mcf) — Henry Hub		$	10.94			$	7.55			$	9.49			$	7.16
Oil ($/Bbl) — West Texas Intermediate (Cushing)		$	124.28			$	65.08			$	110.98			$	61.71

REALIZED PRICES
(Excludes the effects of unrealized gains and losses from hedging)

Quarter Ended June 30, 2008		Oil				Gas				NGLs				Total
		(Per Bbl)				(Per Mcf)				(Per Bbl)				(Per Boe)
U.S. Onshore		$	120.69			$	9.40			$	50.56			$	60.51
U.S. Offshore		$	125.24			$	11.43			$	53.63			$	91.38
Total U.S.		$	122.47			$	9.56			$	50.66			$	63.88
Canada		$	94.35			$	9.76			$	75.10			$	72.14
International		$	119.87			$	11.00			$	—			$	118.70
Realized price without hedges		$	110.56			$	9.61			$	54.08			$	69.14
Cash settlements		$	(0.01	)		$	(1.32	)		$	—			$	(5.18	)
Realized price, including cash settlements		$	110.55			$	8.29			$	54.08			$	63.96

Quarter Ended June 30, 2007		Oil				Gas				NGLs				Total
		(Per Bbl)				(Per Mcf)				(Per Bbl)				(Per Boe)
U.S. Onshore		$	60.82			$	6.14			$	33.35			$	38.52
U.S. Offshore		$	65.35			$	7.82			$	31.14			$	53.24
Total U.S.		$	62.68			$	6.35			$	33.26			$	40.71
Canada		$	46.32			$	6.66			$	43.82			$	41.99
International		$	67.57			$	6.19			$	—			$	67.11
Realized price without hedges		$	60.01			$	6.43			$	35.03			$	43.68
Cash settlements		$	—			$	0.03			$	—			$	0.10
Realized price, including cash settlements		$	60.01			$	6.46			$	35.03			$	43.78

Six Months Ended June 30, 2008		Oil				Gas				NGLs				Total
		(Per Bbl)				(Per Mcf)				(Per Bbl)				(Per Boe)
U.S. Onshore		$	107.15			$	8.26			$	47.65			$	53.91
U.S. Offshore		$	112.07			$	9.94			$	51.77			$	79.52
Total U.S.		$	109.08			$	8.42			$	47.78			$	56.95
Canada		$	84.16			$	8.66			$	68.86			$	64.01
International		$	105.63			$	9.56			$	—			$	104.68
Realized price without hedges		$	98.98			$	8.48			$	50.76			$	62.12
Cash settlements		$	—			$	(0.69	)		$	—			$	(2.67	)
Realized price, including cash settlements		$	98.98			$	7.79			$	50.76			$	59.45

Six Months Ended June 30, 2007		Oil				Gas				NGLs				Total
		(Per Bbl)				(Per Mcf)				(Per Bbl)				(Per Boe)
U.S. Onshore		$	56.02			$	6.04			$	30.54			$	37.15
U.S. Offshore		$	60.16			$	7.51			$	30.52			$	50.05
Total U.S.		$	57.67			$	6.22			$	30.54			$	39.05
Canada		$	45.01			$	6.55			$	40.37			$	40.88
International		$	62.76			$	5.16			$	—			$	62.39
Realized price without hedges		$	56.22			$	6.31			$	32.26			$	41.87
Cash settlements		$	—			$	0.04			$	—			$	0.16
Realized price, including cash settlements		$	56.22			$	6.35			$	32.26			$	42.03

DEVON ENERGY CORPORATION
FINANCIAL AND OPERATIONAL INFORMATION

CONSOLIDATED STATEMENTS OF OPERATIONS		Quarter Ended								Six Months Ended
(in millions, except per share amounts)		June 30,								June 30,
		2008				2007				2008				2007
Revenues
Oil sales		$	1,455			$	865			$	2,705			$	1,556
Gas sales			2,210				1,366				3,840				2,612
NGL sales			379				224				707				401
Net (loss) gain on oil and gas derivative financial instruments			(1,215	)			14				(2,003	)			(6	)
Marketing and midstream revenues			719				460				1,274				839
Total revenues			3,548				2,929				6,523				5,402
Expenses and other income, net
Lease operating expenses			537				439				1,043				869
Production taxes			176				90				310				170
Marketing and midstream operating costs and expenses			515				341				897				611
Depreciation, depletion and amortization of oil and gas properties			762				645				1,499				1,232
Depreciation and amortization of non-oil and gas properties			62				49				119				95
Accretion of asset retirement obligation			22				18				44				36
General and administrative expenses			180				113				328				232
Interest expense			90				107				192				217
Change in fair value of non-oil and gas derivative financial instruments			(40	)			(10	)			(24	)			(9	)
Other income, net			(17	)			(17	)			(38	)			(43	)
Total expenses and other income, net			2,287				1,775				4,370				3,410
Earnings from continuing operations before income tax expense			1,261				1,154				2,153				1,992
Income tax expense
Current			414				174				517				363
Deferred			253				156				391				231
Total income tax expense			667				330				908				594
Earnings from continuing operations			594				824				1,245				1,398
Discontinued operations
Earnings from discontinued operations before income tax expense			851				128				1,040				265
Income tax expense			144				48				235				108
Earnings from discontinuing operations			707				80				805				157
Net earnings			1,301				904				2,050				1,555
Preferred stock dividends			3				3				5				5
Net earnings applicable to common stockholders		$	1,298			$	901			$	2,045			$	1,550
Basic net earnings per share
Earnings from continuing operations		$	1.33			$	1.84			$	2.79			$	3.13
Earnings from discontinued operations		$	1.58			$	0.18			$	1.80			$	0.35
Net earnings		$	2.91			$	2.02			$	4.59			$	3.48
Diluted net earnings per share
Earnings from continuing operations		$	1.31			$	1.82			$	2.76			$	3.09
Earnings from discontinued operations		$	1.57			$	0.18			$	1.79			$	0.35
Net earnings		$	2.88			$	2.00			$	4.55			$	3.44
Weighted average common shares outstanding
Basic			446				446				445				445
Diluted			450				450				450				450

DEVON ENERGY CORPORATION
FINANCIAL AND OPERATIONAL INFORMATION

CONSOLIDATED BALANCE SHEETS

(in millions)		June 30,				December 31,
		2008				2007
Assets						(Audited)
Current assets
Cash and cash equivalents		$	1,837			$	1,364
Short-term investments, at fair value			1				372
Accounts receivable			2,460				1,779
Deferred income taxes			775				44
Current assets held for sale			105				120
Other current assets			255				235
Total current assets			5,433				3,914
Property and equipment, at cost, based on the full cost method of accounting for oil and gas properties ($3,741 and $3,417 excluded from amortization in 2008 and 2007, respectively)			51,953				48,473
Less accumulated depreciation, depletion and amortization			21,769				20,394
Net property and equipment			30,184				28,079
Investment in Chevron Corporation common stock, at fair value			1,406				1,324
Goodwill			6,081				6,172
Long-term assets held for sale			84				1,512
Other long-term assets, including $126 million at fair value in 2008			592				455
Total Assets		$	43,780			$	41,456
Liabilities and Stockholders’ Equity
Current liabilities
Accounts payable — trade		$	1,525			$	1,360
Revenues and royalties due to others			966				578
Income taxes payable			306				97
Debentures exchangeable into shares of Chevron Corporation common stock			621				—
Other short-term debt			—				1,004
Derivative financial instruments, at fair value			2,125				—
Current portion of asset retirement obligation, at fair value			63				82
Current liabilities associated with assets held for sale			16				145
Accrued expenses and other current liabilities			410				391
Total current liabilities			6,032				3,657
Debentures exchangeable into shares of Chevron Corporation common stock			—				641
Other long-term debt			4,829				6,283
Derivative financial instruments, at fair value			83				488
Asset retirement obligation, at fair value			1,430				1,236
Long-term liabilities associated with assets held for sale			24				404
Other long-term liabilities			905				699
Deferred income taxes			7,044				6,042
Stockholders’ equity
Preferred stock			—				1
Common stock			44				44
Additional paid-in capital			6,591				6,743
Retained earnings			14,717				12,813
Accumulated other comprehensive income			2,131				2,405
Treasury stock			(50	)			—
Total Stockholders’ Equity			23,433				22,006
Total Liabilities and Stockholders’ Equity		$	43,780			$	41,456
Common Shares Outstanding			445				444

DEVON ENERGY CORPORATION
FINANCIAL AND OPERATIONAL INFORMATION

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in millions)		Six Months Ended June 30,
		2008				2007
Cash Flows From Operating Activities
Net earnings		$	2,050			$	1,555
Earnings from discontinued operations, net of tax			(805	)			(157	)
Adjustments to reconcile net earnings from continuing operations to net cash provided by operating activities:
Depreciation, depletion and amortization			1,618				1,327
Deferred income tax expense			391				231
Net unrealized loss on oil and gas derivative financial instruments			1,692				23
Other noncash charges			122				71
Changes in assets and liabilities:
(Increase) decrease in:
Accounts receivable			(604	)			32
Other current assets			(44	)			(27	)
Other long-term assets			(40	)			(46	)
Increase (decrease) in:
Accounts payable			120				64
Revenues and royalties due to others			348				(17	)
Income taxes payable			136				178
Other current liabilities			(99	)			(96	)
Other long-term liabilities			181				14
Cash provided by operating activities — continuing operations			5,066				3,152
Cash provided by operating activities — discontinued operations			120				197
Net cash provided by operating activities			5,186				3,349
Cash Flows From Investing Activities
Proceeds from sales of property and equipment			108				37
Capital expenditures			(3,867	)			(2,990	)
Purchases of short-term investments			(50	)			(589	)
Redemptions of short-term and long-term investments			295				848
Cash used in investing activities — continuing operations			(3,514	)			(2,694	)
Cash used in investing activities — discontinued operations			1,709				(115	)
Net cash used in investing activities			(1,805	)			(2,809	)
Cash Flows From Financing Activities
Credit facility repayments			(3,070	)			—
Credit facility borrowings			1,620				—
Net commercial paper repayments			(1,004	)			(183	)
Principal payments on debt			(47	)			—
Preferred stock redemption			(150	)			—
Proceeds from stock options exercises			104				60
Repurchases of common stock			(252	)			(10	)
Dividends paid on common and preferred stock			(146	)			(129	)
Excess tax benefits related to share-based compensation			55				17
Net cash used in financing activities			(2,890	)			(245	)
Effect of exchange rate changes on cash			(19	)			16
Net increase in cash and cash equivalents			472				311
Cash and cash equivalents at beginning of period (including assets held for sale)			1,373				756
Cash and cash equivalents at end of period (including assets held for sale)		$	1,845			$	1,067
Supplementary cash flow data:
Interest paid (net of capitalized interest)		$	189			$	202
Income taxes paid — continuing and discontinued operations		$	826			$	159

DEVON ENERGY CORPORATION
FINANCIAL AND OPERATIONAL INFORMATION

DRILLING ACTIVITY		Quarter Ended								Six Months Ended
		June 30,								June 30,
		2008				2007				2008				2007
Exploration Wells Drilled
U.S.			8				5				17				27
Canada			7				9				58				64
International			1				—				7				1
Total			16				14				82				92
Exploration Wells Success Rate
U.S.			88	%			100	%			71	%			81	%
Canada			86	%			67	%			95	%			95	%
International			0	%			—				0	%			0	%
Total			81	%			91	%			82	%			90	%
Development Wells Drilled
U.S.			405				360				777				624
Canada			61				54				259				306
International			12				6				22				9
Total			478				420				1,058				939
Development Wells Success Rate
U.S.			98	%			98	%			98	%			98	%
Canada			100	%			100	%			100	%			100	%
International			92	%			100	%			91	%			100	%
Total			98	%			99	%			98	%			99	%
Total Wells Drilled
U.S.			413				365				794				651
Canada			68				63				317				370
International			13				6				29				10
Total			494				434				1,140				1,031
Total Wells Success Rate
U.S.			98	%			98	%			98	%			98	%
Canada			99	%			95	%			99	%			99	%
International			85	%			100	%			69	%			90	%
Total			98	%			98	%			97	%			98	%

COMPANY OPERATED RIGS

		June 30,
		2008				2007
Number of Company Operated Rigs Running
U.S.			79				77
Canada			12				10
International			1				1
Total			92				88

CAPITAL EXPENDITURES (in millions)
Quarter Ended June 30, 2008

		U.S. Onshore				U.S. Offshore				Canada				International				Total
Capital Expenditures
Exploration		$	128				259				52				71			$	510
Development			956				112				101				56				1,225
Exploration and development capital		$	1,084				371				153				127			$	1,735
Capitalized G&A																			100
Capitalized interest																			22
Discontinued operations																			9
Midstream capital																			99
Other capital																			30
Total Capital Expenditures																		$	1,995

DEVON ENERGY CORPORATION
FINANCIAL AND OPERATIONAL INFORMATION

Six Months Ended June 30, 2008

		U.S. Onshore				U.S. Offshore				Canada				International				Total
Capital Expenditures
Exploration		$	181				404				183				142			$	910
Development			1,821				200				433				115				2,569
Exploration and development capital		$	2,002				604				616				257			$	3,479
Capitalized G&A																			199
Capitalized interest																			42
Discontinued operations																			23
Midstream capital																			198
Other capital																			46
Total Capital Expenditures																		$	3,987

DEVON ENERGY CORPORATION
FINANCIAL AND OPERATIONAL INFORMATION

PRODUCTION FROM DISCONTINUED OPERATIONS		Quarter Ended								Six Months Ended
		June 30,								June 30,
		2008				2007				2008				2007
Total Period Production
Oil (MMBbls)			1.1				3.2				3.2				6.3
Natural Gas (Bcf)			1.1				1.2				2.2				2.6
Total Oil Equivalent (MMBoe)			1.3				3.4				3.6				6.7

STATEMENTS OF DISCONTINUED OPERATIONS		Quarter Ended								Six Months Ended
(in millions)		June 30,								June 30,
		2008				2007				2008				2007
Revenues
Oil sales		$	122			$	205			$	318			$	375
Gas sales			5				4				9				8
Marketing and midstream revenues			—				6				5				7
Total revenues			127				215				332				390
Expenses and other income, net
Lease operating expenses			10				19				24				39
Marketing and midstream operating costs and expenses			2				2				3				3
Depreciation, depletion and amortization of oil and gas properties			—				2				—				18
Accretion of asset retirement obligation			—				1				1				2
Gain on sale of oil and gas properties			(736	)			—				(736	)			—
Reduction of carrying value of oil and gas properties			—				63				—				63
Total expenses and other income, net			(724	)			87				(708	)			125
Earnings before income tax expense			851				128				1,040				265
Income tax expense (benefit)
Current			574				71				641				115
Deferred			(430	)			(23	)			(406	)			(7	)
Total income tax expense			144				48				235				108
Earnings from discontinued operations		$	707			$	80			$	805			$	157

DEVON ENERGY CORPORATION
FINANCIAL AND OPERATIONAL INFORMATION

NON-GAAP FINANCIAL MEASURES

The United States Securities and Exchange Commission has adopted disclosure requirements for public companies such as Devon concerning Non-GAAP financial measures. (GAAP refers to generally accepted accounting principles.) The company must reconcile the Non-GAAP financial measure to related GAAP information.

Cash flow before balance sheet changes and free cash flow are Non-GAAP financial measures. Devon believes cash flow before balance sheet changes is relevant because it is a measure of cash available to fund the company’s capital expenditures, dividends and to service its debt. Devon believes free cash flow is relevant because it is a measure of cash available to service debt. Cash flow before balance sheet changes and free cash flow are used by certain securities analysts as a measure of Devon’s financial results.

RECONCILIATION TO GAAP INFORMATION		Quarter Ended								Six Months Ended
(in millions)		June 30,								June 30,
		2008				2007				2008				2007
Net Cash Provided By Operating Activities (GAAP)		$	2,931			$	1,832			$	5,186			$	3,349
Changes in assets and liabilities — continuing operations			(365	)			(59	)			2				(102	)
Changes in assets and liabilities — discontinued operations			124				43				61				37
Cash flow before balance sheet changes (Non-GAAP)		$	2,690			$	1,816			$	5,249			$	3,284
Less:
Capital expenditures			1,995				1,428				3,987				3,005
Free cash flow (Non-GAAP)		$	695			$	388			$	1,262			$	279

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 and short-term investments and debentures exchangeable into shares of Chevron Corporation common stock. Devon believes that because cash and short-term investments can be used to repay indebtedness, netting cash and short-term investments against debt provides a clearer picture of the future demands on cash to repay debt. Devon also believes that excluding debentures exchangeable into shares of Chevron Corporation common stock provides a clearer view of net debt. Devon owns 14.2 million shares of Chevron Corporation common stock. The majority of these shares are on deposit with an exchange agent for the possible exchange on the $621 million principal amount of exchangeable debentures.

RECONCILIATION TO GAAP INFORMATION
(in millions)
		June 30,
		2008				2007
Total debt (GAAP)		$	5,450			$	7,596
Adjustments:
Cash and short-term investments			(1,838	)			(1,357	)
Debentures exchangeable into Chevron stock			(621	)			(737	)
Net Debt (Non-GAAP)		$	2,991			$	5,502
Total debt		$	5,450			$	7,596
Stockholders’ equity			23,433				19,686
Total Capitalization (GAAP)		$	28,883			$	27,282
Net debt		$	2,991			$	5,502
Stockholders’ equity			23,433				19,686
Adjusted Capitalization (Non-GAAP)		$	26,424			$	25,188