EX-99.2

Exhibit 99.2

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Devon Energy Fourth-Quarter 2021

Supplemental Tables


TABLE OF CONTENTS:	PAGE:
Income Statement		2

Supplemental Information for Income Statement		3

Cash Flow Statement		4

Balance Sheet		5

Production by Asset		6

Capital, Costs Incurred and Reserves Reconciliation		7

Well Activity by Asset		8

Realized Price by Asset		9

Per-Unit Cash Margin by Asset		10

Non-GAAP Core Earnings (Loss)		11

Return on Capital Employed and Non-GAAP EBITDAX		12

Net Debt, Net Debt-to-EBITDAX, Free Cash Flow and Reinvestment Rate		13

Variable Dividend		14

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CONSOLIDATED STATEMENTS OF EARNINGS


(in millions, except per share amounts)	2021												2020
	Quarter 4			Quarter 3			Quarter 2			Quarter 1			Quarter 4
Oil, gas and NGL sales	$	2,985		$	2,635		$	2,154		$	1,757		$	786
Oil, gas and NGL derivatives ⁽¹⁾		22			(335	)		(703	)		(528	)		(117	)
Marketing and midstream revenues		1,266			1,166			966			821			611

Total revenues		4,273			3,466			2,417			2,050			1,280

Production expenses ⁽²⁾		605			555			513			458			271
Exploration expenses		5			3			3			3			4
Marketing and midstream expenses		1,266			1,165			965			842			618
Depreciation, depletion and amortization		577			578			536			467			301
Asset impairments		—			—			—			—			27
Asset dispositions		(49	)		—			(87	)		(32	)		(1	)
General and administrative expenses		95			95			94			107			82
Financing costs, net ⁽³⁾		86			86			80			77			70
Restructuring and transaction costs		28			18			23			189			17
Other, net		(2	)		2			(14	)		(29	)		1

Total expenses		2,611			2,502			2,113			2,082			1,390

Earnings (loss) from continuing operations before income taxes		1,662			964			304			(32	)		(110	)
Income tax expense (benefit)		150			120			43			(248	)		(37	)

Net earnings (loss) from continuing operations		1,512			844			261			216			(73	)
Net loss from discontinued operations, net of taxes		—			—			—			—			(25	)

Net earnings (loss)		1,512			844			261			216			(98	)
Net earnings attributable to noncontrolling interests		6			6			5			3			4

Net earnings (loss) attributable to Devon	$	1,506		$	838		$	256		$	213		$	(102	)

Basic net earnings (loss) per share:
Continuing operations	$	2.24		$	1.24		$	0.38		$	0.33		$	(0.20	)
Discontinued operations		—			—			—			—			(0.07	)

Basic net earnings (loss) per share	$	2.24		$	1.24		$	0.38		$	0.33		$	(0.27	)

Diluted net earnings (loss) per share:
Continuing operations	$	2.23		$	1.24		$	0.38		$	0.32		$	(0.20	)
Discontinued operations		—			—			—			—			(0.07	)

Diluted net earnings (loss) per share	$	2.23		$	1.24		$	0.38		$	0.32		$	(0.27	)

Weighted average common shares outstanding:
Basic		671			677			677			654			383
Diluted		673			679			679			656			383

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SUPPLEMENTAL INFORMATION FOR CONSLIDATED STATEMENTS OF EARNINGS


(1) OIL, GAS AND NGL DERIVATIVES

(in millions)	2021												2020
	Quarter 4			Quarter 3			Quarter 2			Quarter 1			Quarter 4
Derivative cash settlements	$	(493	)	$	(370	)	$	(367	)	$	(232	)	$	(27	)
Derivative valuation changes		515			35			(336	)		(296	)		(90	)

Oil, gas and NGL derivatives	$	22		$	(335	)	$	(703	)	$	(528	)	$	(117	)


(2) PRODUCTION EXPENSES

(in millions)	2021								2020
	Quarter 4		Quarter 3		Quarter 2		Quarter 1		Quarter 4
Lease operating expense	$	235	$	215	$	210	$	199	$	91
Gathering, processing & transportation		173		157		147		129		130
Production taxes		197		176		143		117		47
Property taxes		—		7		13		13		3

Production expenses	$	605	$	555	$	513	$	458	$	271


(3) FINANCING COSTS, NET

(in millions)	2021												2020
	Quarter 4			Quarter 3			Quarter 2			Quarter 1			Quarter 4
Interest based on outstanding debt	$	92		$	93		$	98		$	105		$	65
Gain on early retirement of debt		—			—			(10	)		(20	)		—
Interest income		—			(1	)		—			(1	)		—
Other		(6	)		(6	)		(8	)		(7	)		5

Financing costs, net	$	86		$	86		$	80		$	77		$	70

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CONSOLIDATED STATEMENTS OF CASH FLOWS


(in millions)	2021												2020
	Quarter 4			Quarter 3			Quarter 2			Quarter 1			Quarter 4
Cash flows from operating activities:
Net earnings (loss)	$	1,512		$	844		$	261		$	216		$	(98	)
Adjustments to reconcile net earnings (loss) to net cash from operating activities:
Net loss from discontinued operations, net of income taxes		—			—			—			—			25
Depreciation, depletion and amortization		577			578			536			467			301
Asset impairments		—			—			—			—			27
Leasehold impairments		1			1			1			1			3
(Amortization) accretion of liabilities		(6	)		(7	)		(7	)		(7	)		8
Total (gains) losses on commodity derivatives		(22	)		335			703			528			117
Cash settlements on commodity derivatives		(493	)		(370	)		(367	)		(232	)		(27	)
Gains on asset dispositions		(49	)		—			(87	)		(32	)		(1	)
Deferred income tax expense (benefit)		149			119			24			(243	)		(17	)
Share-based compensation		19			19			20			41			18
Early retirement of debt		—			—			(10	)		(20	)		—
Other		2			11			2			—			—
Changes in assets and liabilities, net		(74	)		68			17			(127	)		2

Net cash from operating activities – continuing operations		1,616			1,598			1,093			592			358

Cash flows from investing activities:
Capital expenditures		(512	)		(474	)		(504	)		(499	)		(217	)
Acquisitions of property and equipment		(3	)		(10	)		(5	)		—			(3	)
Divestitures of property and equipment		14			1			49			15			5
WPX acquired cash		—			—			—			344			—
Distributions from equity method investments		8			9			8			10			—
Contributions to equity method investments		(25	)		—			—			—			—

Net cash from investing activities – continuing operations		(518	)		(474	)		(452	)		(130	)		(215	)

Cash flows from financing activities:
Repayments of long-term debt		—			—			(710	)		(533	)		—
Early retirement of debt		—			—			(32	)		(27	)		—
Repurchases of common stock		(589	)		—			—			—			—
Dividends paid on common stock		(554	)		(329	)		(229	)		(203	)		(138	)
Contributions from noncontrolling interests		—			1			3			—			9
Distributions to noncontrolling interests		(6	)		(6	)		(5	)		(4	)		(4	)
Acquisition of noncontrolling interests		—			—			—			(24	)		—
Shares exchanged for tax withholdings and other		—			(3	)		(9	)		(33	)		(1	)

Net cash from financing activities – continuing operations		(1,149	)		(337	)		(982	)		(824	)		(134	)

Effect of exchange rate changes on cash – continuing		1			(5	)		2			3			—

Net change in cash, cash equivalents and restricted cash of continuing operations		(50	)		782			(339	)		(359	)		9

Cash flows from discontinued operations:
Operating activities		—			—			—			—			19
Investing activities		—			—			—			—			310
Effect of exchange rate changes on cash		—			—			—			—			2

Net change in cash, cash equivalents and restricted cash of discontinued operations		—			—			—			—			331

Net change in cash, cash equivalents and restricted cash		(50	)		782			(339	)		(359	)		340
Cash, cash equivalents and restricted cash at beginning of period		2,321			1,539			1,878			2,237			1,897

Cash, cash equivalents and restricted cash at end of period	$	2,271		$	2,321		$	1,539		$	1,878		$	2,237

Reconciliation of cash, cash equivalents and restricted cash:
Cash and cash equivalents	$	2,099		$	2,144		$	1,348		$	1,683		$	2,047
Restricted cash		172			177			191			195			190

Total cash, cash equivalents and restricted cash	$	2,271		$	2,321		$	1,539		$	1,878		$	2,237

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CONSOLIDATED BALANCE SHEETS


(in millions)	December 31,			December 31,
	2021			2020
Current assets:
Cash, cash equivalents and restricted cash	$	2,271		$	2,237
Accounts receivable		1,543			601
Income tax receivable		83			174
Other current assets		352			248

Total current assets		4,249			3,260
Oil and gas property and equipment, based on successful efforts accounting, net		13,536			4,436
Other property and equipment, net		1,472			957

Total property and equipment, net		15,008			5,393
Goodwill		753			753
Right-of-use assets		235			223
Investments		402			12
Other long-term assets		378			271

Total assets	$	21,025		$	9,912

Current liabilities:
Accounts payable	$	500		$	242
Revenues and royalties payable		1,456			662
Other current liabilities		1,131			536

Total current liabilities		3,087			1,440
Long-term debt		6,482			4,298
Lease liabilities		252			246
Asset retirement obligations		468			358
Other long-term liabilities		1,050			551
Deferred income taxes		287			—
Stockholders’ equity:
Common stock		66			38
Additional paid-in capital		7,636			2,766
Retained earnings		1,692			208
Accumulated other comprehensive loss		(132	)		(127	)

Total stockholders’ equity attributable to Devon		9,262			2,885
Noncontrolling interests		137			134

Total equity		9,399			3,019

Total liabilities and equity	$	21,025		$	9,912

Common shares outstanding		663			382

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PRODUCTION TREND


	2021								2020
	Quarter 4		Quarter 3		Quarter 2		Quarter 1		Quarter 4
Oil (MBbls/d)
Delaware Basin		213		213		191		172		99
Anadarko Basin		14		14		17		13		16
Williston Basin		36		39		46		44		—
Eagle Ford		19		20		18		16		18
Powder River Basin		14		14		16		17		16
Other		4		3		3		6		7

Total		300		303		291		268		156

Natural gas liquids (MBbls/d)
Delaware Basin		107		100		82		60		43
Anadarko Basin		27		25		26		21		25
Williston Basin		9		9		9		8		—
Eagle Ford		9		11		9		6		9
Powder River Basin		2		3		3		3		3
Other		—		—		—		1		—

Total		154		148		129		99		80

Gas (MMcf/d)
Delaware Basin		577		578		513		471		267
Anadarko Basin		222		219		225		200		233
Williston Basin		64		59		61		49		—
Eagle Ford		60		67		59		47		60
Powder River Basin		19		19		21		21		22
Other		1		1		2		3		2

Total		943		943		881		791		584

Total oil equivalent (MBoe/d)
Delaware Basin		416		409		358		310		186
Anadarko Basin		78		75		80		68		81
Williston Basin		55		58		66		61		—
Eagle Ford		38		42		37		30		37
Powder River Basin		19		20		22		23		22
Other		5		4		4		7		7

Total		611		608		567		499		333

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CAPITAL EXPENDITURES


(in millions)	2021								2020
	Quarter 4		Quarter 3		Quarter 2		Quarter 1		Quarter 4
Delaware Basin	$	392	$	363	$	394	$	355	$	153
Anadarko Basin		19		15		11		13		3
Williston Basin		25		13		19		20		—
Eagle Ford		21		34		36		29		2
Powder River Basin		27		15		5		27		22
Other		2		2		2		3		3

Total upstream capital	$	486	$	442	$	467	$	447	$	183

Midstream		14		11		22		24		3
Other		21		28		20		16		3

Total capital	$	521	$	481	$	509	$	487	$	189

COSTS INCURRED AND RESERVES RECONCILIATION


COSTS INCURRED

	Year Ended December 31,
(in millions)	2021		2020
Property acquisition costs:
Proved properties	$	7,017	$	—
Unproved properties		2,381		8
Exploration costs		212		159
Development costs		1,643		820

Costs incurred	$	11,253	$	987


RESERVES RECONCILIATION

	Oil (MMBbls)			Gas (Bcf)			NGL (MMBbls)			Total (MMBoe)
As of December 31, 2020:
Proved developed		194			1,244			173			574
Proved undeveloped		88			268			45			178

Total Proved		282			1,512			218			752

Revisions due to prices		55			382			36			155
Revisions other than price		(23	)		11			64			43
Extensions and discoveries		112			348			58			228
Purchase of reserves		393			961			110			663
Production		(106	)		(325	)		(48	)		(209	)
Sale of reserves		(4	)		(11	)		(1	)		(7	)

As of December 31, 2021:
Proved developed		544			2,361			348			1,285
Proved undeveloped		165			517			89			340

Total Proved		709			2,878			437			1,625

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SUPPLEMENTAL INFORMATION FOR UPSTREAM CAPITAL EXPENDITURES


GROSS OPERATED SPUDS

	2021								2020
	Quarter 4		Quarter 3		Quarter 2		Quarter 1		Quarter 4
Delaware Basin		54		50		55		60		21
Anadarko Basin		6		9		8		8		—
Williston Basin		9		—		—		7		—
Eagle Ford		9		10		11		14		—
Powder River Basin		4		9		1		—		2

Total		82		78		75		89		23


GROSS OPERATED WELLS TIED-IN

	2021								2020
	Quarter 4		Quarter 3		Quarter 2		Quarter 1		Quarter 4
Delaware Basin		65		52		88		52		23
Anadarko Basin		12		4		6		—		—
Williston Basin		—		4		13		—		—
Eagle Ford		7		19		9		12		—
Powder River Basin		2		2		—		10		2

Total		86		81		116		74		25


AVERAGE LATERAL LENGTH

(based on wells tied-in)	2021								2020
	Quarter 4		Quarter 3		Quarter 2		Quarter 1		Quarter 4
Delaware Basin		10,100’		9,700’		10,000’		10,000’		9,800’
Anadarko Basin		11,700’		9,200’		9,600’		—		—
Williston Basin		—		9,600’		10,000’		—		—
Eagle Ford		7,100’		6,300’		5,600’		4,400’		—
Powder River Basin		9,600’		10,500’		—		9,800’		13,600’

Total		10,100’		8,900’		9,600’		9,100’		10,100’

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REALIZED PRICING

BENCHMARK PRICES



(average prices)	2021												2020
	Quarter 4			Quarter 3			Quarter 2			Quarter 1			Quarter 4
Oil ($/Bbl) – West Texas Intermediate (Cushing)	$	76.91		$	70.64		$	66.04		$	57.87		$	42.65
Natural Gas ($/Mcf) – Henry Hub	$	5.84		$	4.02		$	2.83		$	2.71		$	2.67
NGL ($/Bbl) – Mont Belvieu Blended	$	40.39		$	36.85		$	28.54		$	25.81		$	20.01

REALIZED PRICES

	2021												2020
	Quarter 4			Quarter 3			Quarter 2			Quarter 1			Quarter 4
Oil (Per Bbl)
Delaware Basin	$	75.67		$	68.44		$	63.93		$	56.07		$	40.67
Anadarko Basin		76.07			69.11			63.51			55.86			40.34
Williston Basin		74.02			66.60			62.00			52.74			—
Eagle Ford		75.35			68.32			64.04			54.90			37.83
Powder River Basin		72.86			65.81			62.36			53.77			36.42
Other		76.57			75.68			72.85			55.65			39.93

Realized price without hedges		75.36			68.19			63.63			55.28			39.84
Cash settlements		(13.14	)		(10.60	)		(13.29	)		(9.13	)		(1.83	)

Realized price, including cash settlements	$	62.22		$	57.59		$	50.34		$	46.15		$	38.01

Natural gas liquids (Per Bbl)
Delaware Basin	$	35.56		$	31.34		$	23.81		$	26.25		$	13.67
Anadarko Basin		35.66			33.20			25.55			23.14			15.65
Williston Basin		24.97			19.36			14.76			18.51			—
Eagle Ford		38.17			32.80			25.46			24.44			15.66
Powder River Basin		47.30			40.66			35.46			30.19			19.39
Other		66.22			54.51			41.19			31.86			24.24

Realized price without hedges		35.36			31.25			23.89			25.01			14.77
Cash settlements		(0.54	)		(0.45	)		(0.25	)		(0.20	)		(0.01	)

Realized price, including cash settlements	$	34.82		$	30.80		$	23.64		$	24.81		$	14.76

Gas (Per Mcf)
Delaware Basin	$	4.60		$	3.58		$	2.31		$	3.19		$	1.51
Anadarko Basin		5.37			4.05			3.15			2.49			2.29
Williston Basin		1.53			0.65			(1.60	)		(0.48	)		—
Eagle Ford		5.76			4.08			3.25			3.15			2.38
Powder River Basin		6.10			4.15			3.54			5.27			2.70
Other		4.11			2.60			2.74			2.57			2.87

Realized price without hedges		4.68			3.55			2.35			2.84			1.96
Cash settlements		(1.42	)		(0.78	)		(0.15	)		(0.15	)		0.00

Realized price, including cash settlements	$	3.26		$	2.77		$	2.20		$	2.69		$	1.96

Total oil equivalent (Per Boe)
Delaware Basin	$	54.28		$	48.29		$	42.84		$	40.95		$	26.94
Anadarko Basin		41.39			35.62			30.34			25.35			19.79
Williston Basin		53.44			48.55			43.98			40.79			—
Eagle Ford		56.06			47.40			42.84			38.90			25.97
Powder River Basin		63.45			55.93			52.55			47.58			31.08
Other		73.63			70.49			65.37			50.58			37.67

Realized price without hedges		53.12			47.08			41.75			39.14			25.63
Cash settlements		(8.78	)		(6.60	)		(7.11	)		(5.17	)		(0.86	)

Realized price, including cash settlements	$	44.34		$	40.48		$	34.64		$	33.97		$	24.77

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ASSET MARGINS

BENCHMARK PRICES



(average prices)	2021												2020
	Quarter 4			Quarter 3			Quarter 2			Quarter 1			Quarter 4
Oil ($/Bbl) – West Texas Intermediate (Cushing)	$	76.91		$	70.64		$	66.04		$	57.87		$	42.65
Natural Gas ($/Mcf) – Henry Hub	$	5.84		$	4.02		$	2.83		$	2.71		$	2.67
NGL ($/Bbl) – Mont Belvieu Blended	$	40.39		$	36.85		$	28.54		$	25.81		$	20.01

PER-UNIT CASH MARGIN BY ASSET (per Boe)

	2021												2020
	Quarter 4			Quarter 3			Quarter 2			Quarter 1			Quarter 4
Delaware Basin
Realized price	$	54.28		$	48.29		$	42.84		$	40.95		$	26.94
Lease operating expenses		(4.02	)		(3.52	)		(3.91	)		(3.97	)		(2.38	)
Gathering, processing & transportation		(2.27	)		(2.18	)		(2.06	)		(1.96	)		(2.40	)
Production & property taxes		(3.40	)		(3.31	)		(3.08	)		(2.95	)		(2.08	)

Field-level cash margin	$	44.59		$	39.28		$	33.79		$	32.07		$	20.08

Anadarko Basin
Realized price	$	41.39		$	35.62		$	30.34		$	25.35		$	19.79
Lease operating expenses		(2.70	)		(2.58	)		(2.96	)		(3.82	)		(2.57	)
Gathering, processing & transportation		(6.60	)		(6.14	)		(6.06	)		(6.31	)		(8.39	)
Production & property taxes		(2.44	)		(1.70	)		(1.46	)		(1.21	)		(0.55	)

Field-level cash margin	$	29.65		$	25.20		$	19.86		$	14.01		$	8.28

Williston Basin
Realized price	$	53.44		$	48.55		$	43.98		$	40.79		$	—
Lease operating expenses		(5.76	)		(5.83	)		(4.87	)		(5.13	)		—
Gathering, processing & transportation		(2.09	)		(2.13	)		(1.86	)		(2.14	)		—
Production & property taxes		(4.64	)		(4.47	)		(4.27	)		(3.82	)		—

Field-level cash margin	$	40.95		$	36.12		$	32.98		$	29.70		$	—

Eagle Ford
Realized price	$	56.06		$	47.40		$	42.84		$	38.90		$	25.97
Lease operating expenses		(3.78	)		(3.43	)		(3.47	)		(3.89	)		(2.79	)
Gathering, processing & transportation		(6.65	)		(4.17	)		(5.56	)		(6.73	)		(5.89	)
Production & property taxes		(2.93	)		(1.99	)		(1.93	)		(1.71	)		(0.16	)

Field-level cash margin	$	42.70		$	37.81		$	31.88		$	26.57		$	17.13

Powder River Basin
Realized price	$	63.45		$	55.93		$	52.55		$	47.58		$	31.08
Lease operating expenses		(7.49	)		(8.09	)		(6.65	)		(7.45	)		(5.47	)
Gathering, processing & transportation		(2.86	)		(2.93	)		(3.02	)		(2.66	)		(3.01	)
Production & property taxes		(7.49	)		(6.73	)		(6.10	)		(5.48	)		(3.91	)

Field-level cash margin	$	45.61		$	38.18		$	36.78		$	31.99		$	18.69

Other
Realized price	$	73.63		$	70.49		$	65.37		$	50.58		$	37.67
Lease operating expenses		(13.34	)		(16.42	)		(16.69	)		(17.15	)		(15.35	)
Gathering, processing & transportation		(0.31	)		(0.35	)		(0.58	)		(0.62	)		(0.59	)
Production & property taxes		(4.84	)		(4.19	)		(5.25	)		(4.60	)		(3.38	)

Field-level cash margin	$	55.14		$	49.53		$	42.85		$	28.21		$	18.35

Devon – Total
Realized price	$	53.12		$	47.08		$	41.75		$	39.14		$	25.63
Lease operating expenses		(4.18	)		(3.85	)		(4.06	)		(4.44	)		(2.97	)
Gathering, processing & transportation		(3.08	)		(2.81	)		(2.85	)		(2.87	)		(4.23	)
Production & property taxes		(3.49	)		(3.25	)		(3.05	)		(2.88	)		(1.66	)

Field-level cash margin	$	42.37		$	37.17		$	31.79		$	28.95		$	16.77

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NON-GAAP MEASURES

(all monetary values in millions, except per share amounts)

Devon’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 (loss) and core earnings (loss) 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 full year and fourth-quarter 2021 earnings.


	Year Ended December 31, 2021												Quarter Ended December 31, 2021
	Before- tax			After- tax			After Noncontrolling Interests			Per Diluted Share			Before- tax			After- tax			After Noncontrolling Interests			Per Diluted Share
Total
Earnings (GAAP)	$	2,898		$	2,833		$	2,813		$	4.19		$	1,662		$	1,512		$	1,506		$	2.23
Adjustments:
Asset dispositions		(168	)		(129	)		(129	)		(0.19	)		(49	)		(38	)		(38	)		(0.06	)
Asset and exploration impairments		6			5			5			0.01			3			3			3			—
Deferred tax asset valuation allowance		—			(639	)		(639	)		(0.95	)		—			(160	)		(160	)		(0.23	)
Change in tax legislation		—			60			60			0.09			—			(2	)		(2	)		—
Fair value changes in financial instruments		82			63			63			0.09			(515	)		(397	)		(397	)		(0.59	)
Restructuring and transaction costs		258			224			224			0.33			28			23			23			0.04
Early retirement of debt		(30	)		(23	)		(23	)		(0.04	)		—			—			—			—

Core earnings (Non-GAAP)	$	3,046		$	2,394		$	2,374		$	3.53		$	1,129		$	941		$	935		$	1.39

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RETURN ON CAPITAL EMPLOYED

Devon defines return on capital employed as pre-interest core earnings divided by average capital employed. Devon believes return on capital employed provides a useful measure of how efficiently the company is using its capital to generate profits. Average capital employed is the average of the capital employed as of the beginning and ending of the relevant period, with capital employed calculated as debt plus stockholders’ equity attributable to Devon less cash and cash equivalents. The beginning balance of capital employed is calculated pro forma for the WPX merger, which closed on January 7, 2021.


	Year Ended
	December 31, 2021
Earnings (GAAP)	$	2,813
Non-GAAP adjustments ⁽¹⁾		(439	)

Core earnings (Non-GAAP)		2,374
Net financing costs (GAAP)		329
Less gain on early retirement of debt		30

Adjusted net financing costs (Non-GAAP)		359
Less tax impact (21%)		(77	)

After-tax adjusted net financing costs (Non-GAAP)		282

Pre-interest core earnings (Non-GAAP)	$	2,656

Beginning balance:
Devon legacy	$	4,298
Assumed in merger		3,562

Gross debt		7,860
Devon legacy		2,885
Equity consideration in merger		5,432

Stockholders’ equity		8,317
Devon legacy		(2,237	)
Acquired in merger		(344	)

Less cash		(2,581	)

Beginning capital employed	$	13,596

Ending balance:
Gross debt	$	6,482
Stockholders’ equity		9,262
Less cash		(2,271	)

Ending capital employed	$	13,473

Average capital employed	$	13,535

ROCE		20	%

(1)	Non-GAAP adjustments detail can be found in the core earnings table on previous page.

EBITDAX

Devon believes EBITDAX provides information useful in assessing operating and financial performance across periods. Devon computes EBITDAX as net earnings from continuing operations before income tax expense; financing costs, net; exploration expenses; depreciation, depletion and amortization; asset impairments; asset disposition gains and losses; non-cash share-based compensation; non-cash valuation changes for derivatives and financial instruments; restructuring and transaction costs; 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 and should be considered in conjunction with net earnings from continuing operations.


	FY ‘21			Q4 ‘21			Q3 ‘21			Q2 ‘21			Q1 ‘21
Net earnings (GAAP)	$	2,833		$	1,512		$	844		$	261		$	216
Financing costs, net		329			86			86			80			77
Income tax expense (benefit)		65			150			120			43			(248	)
Exploration expenses		14			5			3			3			3
Depreciation, depletion and amortization		2,158			577			578			536			467
Asset dispositions		(168	)		(49	)		—			(87	)		(32	)
Share-based compensation		77			19			18			20			20
Derivative and financial instrument non-cash valuation changes		82			(515	)		(35	)		336			296
Restructuring and transaction costs		258			28			18			23			189
Accretion on discounted liabilities and other		(43	)		(2	)		2			(14	)		(29	)

EBITDAX (Non-GAAP)	$	5,605		$	1,811		$	1,634		$	1,201		$	959

Annualized EBITDAX for first-quarter (Non-GAAP)													$	3,836

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NET DEBT

Devon defines net debt as debt less cash, cash equivalents and cash restricted for discontinued operations. 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.


	December 31, 2021			September 30, 2021			June 30, 2021			March 31, 2021
Total debt (GAAP)	$	6,482		$	6,492		$	6,502		$	7,268
Less:
Cash, cash equivalents and restricted cash		(2,271	)		(2,321	)		(1,539	)		(1,878	)

Net debt (Non-GAAP)	$	4,211		$	4,171		$	4,963		$	5,390

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.


	December 31, 2021		March 31, 2021
Net debt (Non-GAAP)	$	4,211	$	5,390
2021 EBITDAX (Non-GAAP) ⁽¹⁾	$	5,605	$	3,836

Net debt-to-EBITDAX (Non-GAAP)		0.8		1.4

(1)	The first quarter EBITDAX is an annualized measure. See the EBITDAX table on the previous page for details.

FREE CASH FLOW AND ADJUSTED FREE CASH FLOW

Devon defines free cash flow as total operating cash flow less capital expenditures, and Devon defines adjusted free cash flow as free cash flow less cash restructuring and transaction costs. Devon believes that free cash flow and adjusted free cash flow provide a useful measure of available cash generated by operating activities for other investing and financing activities.


	Quarter Ended Dec. 31, 2021			Quarter Ended Sep. 30, 2021			Quarter Ended Jun. 30, 2021			Quarter Ended Mar. 31, 2021			Quarter Ended Dec. 31, 2020
Total operating cash flow (GAAP)	$	1,616		$	1,598		$	1,093		$	592		$	358
Less capital expenditures:
Capital expenditures		(512	)		(474	)		(504	)		(499	)		(217	)

Free cash flow (Non-GAAP)		1,104			1,124			589			93			141
Cash restructuring and transaction costs (Non-GAAP)		28			14			23			167			17

Adjusted free cash flow (Non-GAAP)	$	1,132		$	1,138		$	612		$	260		$	158

REINVESTMENT RATE

Devon defines reinvestment rate as accrued capital expenditures divided by operating cash flow. Devon believes this measure 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.


	Quarter Ended December 31, 2021
Capital expenditures (accrued)	$	521
Operating cash flow	$	1,616

Reinvestment rate (Non-GAAP)		32	%

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VARIABLE DIVIDEND CALCULATION

Devon may pay a variable dividend up to 50 percent of its excess cash flow. Each quarter’s excess cash flow is computed as adjusted cash flow less capital expenditures and the fixed dividend.


	Quarter Ended December 31, 2021
Operating cash flow (GAAP)	$	1,616
Changes in assets and liabilities, net		74

Cash from operations before balance sheet changes (Non-GAAP)		1,690
Cash restructuring and transaction costs (Non-GAAP)		28

Adjusted cash flow (Non-GAAP)		1,718
Capital expenditures (Accrued)		(521	)

Adjusted free cash flow (Non-GAAP)		1,197
Fixed quarterly dividend ($0.11/share)		(73	)

Excess free cash flow (Non-GAAP)	$	1,124
~50% Pay out (Board Discretion: Up to 50%)		~50	%

Total variable dividend	$	557

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FIRST-QUARTER AND FULL-YEAR 2022 GUIDANCE

PRODUCTION GUIDANCE⁽¹⁾


	Quarter 1 ⁽¹⁾				Full Year
	Low		High		Low		High
Oil (MBbls/d)		280		290		285		295
Natural gas liquids (MBbls/d)		133		137		138		148
Gas (MMcf/d)		880		920		880		940

Total oil equivalent (MBoe/d)		560		580		570		600

(1)

Production in the first quarter of 2022 is estimated to be reduced by 3 percent or 15,000 Boe per day due to the impact of severe winter weather.

CAPITAL EXPENDITURES GUIDANCE


	Quarter 1				Full Year
(in millions)	Low		High		Low		High
Upstream capital	$	475	$	515	$	1,900	$	2,200
Environmental capital		25		35		80		120
Midstream & other capital		40		60		80		120

Total capital	$	540	$	610	$	2,060	$	2,440

PRICE REALIZATIONS GUIDANCE


	Quarter 1						Full Year
	Low			High			Low			High
Oil - % of WTI		92	%		100	%		92	%		100	%
NGL - % of WTI		35	%		45	%		35	%		45	%
Natural gas - % of Henry Hub		80	%		90	%		80	%		90	%

OTHER GUIDANCE ITEMS


	Quarter 1						Full Year
($ millions, except Boe and %)	Low			High			Low			High
Marketing & midstream operating profit	$	(10	)	$	10		$	(30	)	$	—
LOE & GP&T per BOE	$	7.50		$	7.90		$	7.25		$	7.75
Production & property taxes as % of upstream sales		7.0	%		8.0	%		7.0	%		8.0	%
Exploration expenses	$	—		$	5		$	5		$	15
Depreciation, depletion and amortization	$	475		$	525		$	2,050		$	2,150
General & administrative expenses	$	85		$	95		$	330		$	350
Net financing costs, net	$	80		$	90		$	335		$	345
Other expenses	$	—		$	10		$	—		$	40
Total income tax rate⁽²⁾		20	%		25	%		20	%		25	%

(2)

Assumes a mid-single digit current tax rate for the first quarter and full-year 2022.

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CONTINGENT PAYMENTS FOR BARNETT SHALE DIVESTITURE (4-year period beginning in 2021)


WTI Threshold		WTI Annual Earnout Amount		Henry Hub Threshold		Henry Hub Annual Earnout Amount
$	50.00	$	10,000,000	$	2.75	$	20,000,000
$	55.00	$	12,500,000	$	3.00	$	25,000,000
$	60.00	$	15,000,000	$	3.25	$	35,000,000
$	65.00	$	20,000,000	$	3.50	$	45,000,000

2022 & 2023 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)
Q1 2022		38,500	$	44.40		32,250	$	44.43	$	54.43
Q2 2022		36,000	$	44.63		36,000	$	49.59	$	65.18
Q3 2022		35,000	$	44.61		38,500	$	55.19	$	70.90
Q4 2022		35,000	$	44.61		24,000	$	59.42	$	78.60
Q1-Q4 2023		—	$	—		2,589	$	56.92	$	86.09

Oil Basis Swaps


Period	Index	Volume (Bbls/d)		Weighted Average Differential to WTI ($/Bbl)
Q1-Q4 2022	BRENT/WTI Spread		1,000	$	(7.75	)
Q1-Q4 2022	NYMEX Roll		29,000	$	0.45

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)
Q1 2022		114,000	$	2.72		173,000	$	2.58	$	3.08
Q2 2022		110,000	$	2.79		221,000	$	2.84	$	3.70
Q3 2022		110,000	$	2.79		184,000	$	2.87	$	3.81
Q4 2022		110,000	$	2.79		128,000	$	3.05	$	4.18
Q1-Q4 2023		4,959	$	3.65		34,967	$	3.32	$	4.85

Natural Gas Basis Swaps


Period	Index	Volume (MMBtu/d)		Weighted Average Differential to Henry Hub ($/MMBtu)
Q1-Q4 2022	WAHA		70,000	$	(0.57	)
Q1-Q4 2023	WAHA		70,000	$	(0.51	)

Devon’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. Commodity hedge positions are shown as of February 11, 2022.