DEVON ENERGY CORP/DE (DVN) · Material Event (8-K) SEC Filing

EX-99.1 2 d359332dex991.htm EX-99.1 EX-99.1 Exhibit 99.1 Devon Energy Corporation Three Memorial City Plaza 840 Gessner Road, Suite 1400 Houston, TX 77024 Devon Energy Reports Second-Quarter 2026 Results HOUSTON, TX August 4, 2026 Devon Energy Corporation (NYSE: DVN) today reports second-quarter 2026 results. Supplemental financial tables and forward-looking guidance are available on the company s website at www.devonenergy.com. KEY FINANCIAL, OPERATIONAL & STRATEGIC HIGHLIGHTS Transformative Merger Complete: Closed the merger with Coterra Energy on May 7, only 94 days after announcement, creating a premier large-cap operator Production Outperformance: Averaged 503,000 barrels of oil production per day in the second quarter, reaching the top-end of guidance Disciplined Capital Management: Invested $1,269 million of capital in the second quarter, 2 percent below midpoint guidance Robust Cash Generation: Operations generated $3.7 billion of operating cash flow (GAAP), adjusted operating cash flow of $2.9 billion and $1.7 billion of adjusted free cash flow during the second quarter, excluding the impact of after-tax restructuring costs Accelerated Shareholder Returns: Returned $1,063 million during the quarter through a combination of an increased quarterly dividend of $0.32 per share, renewed share repurchases and retirement of maturing debt Core Delaware Expansion: Acquired 16,300 net acres and approximately 400 top-tier locations, with favorable terms (87.5% NRI), in the heart of the Delaware Basin at the New Mexico federal lease sale Comprehensive Portfolio Review Underway: Conducting a rigorous, asset-by-asset evaluation focused on multiple factors including capital efficiency, free cash flow contribution and strategic fit, with the sole objective of maximizing shareholder value Synergy Capture on Track: On track to deliver at least $1.0 billion of annual pre-tax synergies on a run-rate basis by year-end 2027, with approximately $600 million expected to be captured during 2027 CEO COMMENTARY Devon s first quarter as a combined company demonstrated the full power of this platform, with results that outperformed across every major value driver, said Clay Gaspar, president and CEO. We delivered 503,000 barrels of oil per day at the top end of guidance, delivered capital expenditures 2 percent below expectations and generated $1.7 billion of adjusted free cash flow, all while moving at full speed on integration. These results reflect the talent and commitment of our newly combined teams, which have not missed a beat in the field. Since merger close, we have moved with speed and intention, Gaspar added. We returned more than $1 billion through our dividend, share repurchases and debt repayment, strengthened an already premier Delaware Basin position with a once-in-a-generation federal lease sale, and advanced synergy capture with more than 350 initiatives underway. Our confidence in delivering at least $1 billion in synergies continues to increase. Looking ahead, our priorities are clear: continuing integration and operational excellence, delivering on our synergy commitments, moving decisively through our portfolio review and returning meaningful capital to shareholders, Gaspar concluded. With the scale and quality of this portfolio, a fortress balance sheet, and a peer-leading free cash flow outlook, Devon is an energy powerhouse, built to deliver differentiated returns to our owners through all phases of the commodity cycle. FINANCIAL RESULTS Devon reported net earnings of $1.9 billion, or $2.03 per diluted share, in the second quarter of 2026. Adjusting for items analysts typically exclude from estimates, the company s core earnings were $1.5 billion, or $1.57 per diluted share. 1 Devon s operating cash flow totaled $3.7 billion in the second quarter, reflecting the results of combined operations following the May 7 closing of the Coterra merger. The company funded its capital requirements and had $1.7 billion in adjusted free cash flow for the quarter, excluding the impact of $174 million of after-tax restructuring costs during the quarter. During the quarter, Devon retired $250 million of senior notes, retired $250 million of its term loan, and funded its $2.6 billion New Mexico federal lease acquisition with cash on hand, in addition to funding its dividend and seven weeks of its base share repurchase program. At the end of the second quarter, Devon had a cash balance of $1.0 billion and an undrawn credit facility of $3.0 billion. Outstanding debt totaled $11.4 billion. In July, Devon retired the remaining $750 million of its term loan. The company has no outstanding maturities until the second quarter of 2027. RETURN OF CAPITAL Following the close of the merger with Coterra Energy, Devon s board of directors approved a 33 percent increase to the quarterly fixed dividend rate to $0.32 per share, consistent with the company s strategic priority of delivering value to shareholders through a sustainable, annually growing fixed dividend. The second-quarter dividend totaled $366 million and was paid on Jun. 30, 2026. For the third quarter, Devon declared a fixed quarterly cash dividend of $0.32 per share, payable on Sep. 30, 2026, to shareholders of record at the close of business on Sep. 15, 2026. The company also returned capital to shareholders through its new $8.0 billion share repurchase program, approved by the board in conjunction with the merger close. Upon close, Devon quickly resumed repurchase activity. During the last seven weeks of the second quarter, the company repurchased 4.3 million shares for $197 million, leaving $7.8 billion of remaining capacity on the authorization, which extends through mid-2029. OPERATING RESULTS Devon s operational activity in the second quarter averaged 34 operated drilling rigs and 10 completion crews. This level of activity resulted in 120 net operated wells being placed online, with an average lateral length of 10,800 feet. Capital expenditures totaled $1,269 million, or 2 percent below the guidance midpoint. This positive variance was primarily attributable to timing and effective cost management. During the quarter, Devon acquired 16,300 net acres in the heart of the Delaware Basin at the New Mexico federal lease sale for $2.6 billion, adding approximately 400 top-tier, 87.5% Net Revenue Interest locations, funded with cash on hand. Devon plans to begin development of the acquired acreage during 2027. Production averaged 1,359,000 Boe per day in the second quarter, reaching the top-end of guidance. Oil totaled 503,000 barrels per day in the quarter, which was at the top-end of the company s guidance. This positive result was driven by better-than-expected well performance, primarily in the Delaware Basin. For the second quarter, Devon s oil, gas and NGL sales totaled $5.1 billion. The company s realized price during the period, including commodity hedges, was $88.09 per barrel of oil, $22.70, per barrel of NGL, and $1.05 per Mcf of natural gas. Oil realizations were exceptionally strong, supported by robust crude benchmark pricing during the quarter, while natural gas realizations were depressed by regional Waha pricing driven by infrastructure constraints in the Delaware Basin. Production costs, including production and property taxes, averaged $11.27 per Boe in the second quarter. The largest component of production costs is lease operating expense, which totaled $5.06 per Boe in the quarter, below midpoint of annual guidance expectations. Underpinning these results is the rapid progress of the company s merger integration efforts. With more than 350 individual initiatives identified, Devon is on track to deliver at least $1.0 billion of annual pre-tax run-rate synergies by year-end 2027, with approximately $600 million expected to be captured during 2027. These actions, driven by shared best practices and technology, are strengthening margins and increasing capital efficiency across the combined portfolio. 2 2026 OUTLOOK After a strong second-quarter, the company is demonstrating the operational and financial performance which underpin its full-year 2026 guidance, which remains unchanged from June. In the third quarter of 2026, total production is expected to average between 1,660,000 and 1,690,000 Boe per day and oil production is expected to average between 550,000 and 560,000 barrels per day. Capital spending in the third quarter is expected to be between $1,400 million and $1,500 million. Additional details of Devon s forward-looking guidance are available on the company s website at www.devonenergy.com. CONFERENCE CALL WEBCAST AND SUPPLEMENTAL EARNINGS MATERIALS Also provided with today s release is the company s earnings presentation, available on the company s website at www.devonenergy.com. The company s second-quarter conference call will be held at 10:00 a.m. Central (11:00 a.m. Eastern) on August 5, 2026, and will serve primarily as a forum for analyst and investor questions and answers. ABOUT DEVON ENERGY Devon Energy is a leading oil and gas producer in the U.S. with a diversified multi-basin portfolio headlined by a world-class acreage position in the Delaware Basin. Devon s disciplined cash-return business model is designed to achieve strong returns, generate free cash flow and return capital to shareholders, while focusing on safe and sustainable operations. For more information, please visit www.devonenergy.com. Investor Contact Media Contact [email protected] Michelle Hindmarch 405-228-4450 405-552-7460 NON-GAAP DISCLOSURES This press release includes non-GAAP (generally accepted accounting principles) financial measures. Such 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 results as reported under GAAP. Reconciliations of these non-GAAP measures and other disclosures are provided within the supplemental financial tables that are available on the company s website. FORWARD-LOOKING STATEMENTS This press release includes forward-looking statements within the meaning of the federal securities laws. Such statements include those concerning strategic plans, our expectations and objectives for future operations, as well as other future events or conditions, and are often identified by use of the words and phrases expects, believes, will, would, could, continue, may, aims, likely to be, intends, forecasts, projections, estimates, plans, expectations, targets, opportunities, potential, anticipates, outlook and other similar terminology. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that Devon 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 our control. Consequently, actual future results could differ materially and adversely from our expectations due to a number of factors, including, but not limited to: the volatility of oil, gas and NGL prices, including from the impact of ongoing or escalating armed conflicts, wars and geopolitical instability and from changes in trade relations and policies, such as the imposition of new or increased tariffs or other trade protection measures by the U.S., China or other countries; uncertainties inherent in estimating oil, gas and NGL reserves; the extent to which we are successful in acquiring and discovering additional reserves; the uncertainties, costs and risks involved in our operations; risks related to our hedging activities; our limited control over third parties who operate some of our oil and gas properties and investments; midstream capacity constraints and potential interruptions in production, including from limits to the build out of midstream infrastructure; competition for assets, materials, people and capital, which can be exacerbated by supply chain disruptions, including as a result of tariffs or other changes in trade policy; regulatory restrictions, compliance costs and other risks relating to governmental regulation, including with respect to federal lands, environmental matters, water disposal and tax matters; climate change and risks related to regulatory, social and market efforts to address climate change; risks relating to our sustainability initiatives; claims, litigation, audits and other proceedings impacting our business, including with respect to historic and legacy operations; governmental interventions in energy markets; counterparty credit risks; risks relating to our indebtedness; cybersecurity risks; risks associated with artificial intelligence and other emerging technologies; the extent to which insurance covers any losses we may experience; risks related to shareholder activism; our ability to successfully complete mergers, acquisitions and divestitures; our ability to pay dividends and make share repurchases; risks related to the merger with Coterra, including the risk that we may not realize the anticipated synergies or other benefits of the merger or successfully integrate the two legacy businesses; and any of the other risks and uncertainties discussed in Devon s 2025 Annual Report on Form 10-K (the 2025 Form 10-K ) or other filings with the SEC. 3 The forward-looking statements included in this press release speak only as of the date of this press release, represent management s current reasonable expectations as of the date of this press release and are subject to the risks and uncertainties identified above as well as those described elsewhere in the 2025 Form 10-K and in other documents we file from time to time with the SEC. We cannot guarantee the accuracy of our forward-looking statements, and readers are urged to carefully review and consider the various disclosures made in the 2025 Form 10-K and in other documents we file from time to time with the SEC. All subsequent written and oral forward-looking statements attributable to Devon, or persons acting on its behalf, are expressly qualified in their entirety by the cautionary statements above. We do not undertake, and expressly disclaim, any duty to update or revise our forward-looking statements based on new information, future events or otherwise. 4

EX-99.2 3 d359332dex992.htm EX-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, Net Debt-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 normalized go-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-use assets 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 ) Repurchases 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) 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 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 DilutedShare 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 DilutedShare 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 Q2Annualized 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 Net debt-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: Devon 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 Total 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) WeightedAverage Price($/Bbl) Volume(Bbls/d) WeightedAverage FloorPrice ($/Bbl) WeightedAverage CeilingPrice ($/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) WeightedAverage FloorSold Price($/Bbl) WeightedAverage FloorPurchased Price($/Bbl) WeightedAverage CeilingPrice ($/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 AverageDifferential 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) WeightedAverage Price($/MMBtu) Volume(MMBtu/d) WeightedAverage FloorPrice ($/MMBtu) WeightedAverage CeilingPrice($/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 AverageDifferential to HenryHub ($/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 ) 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 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