EX-99.2

EX-99.2 3 d45994dex992.htm EX-99.2 EX-99.2

Exhibit 99.2

Devon Energy Third-Quarter 2025

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, Net Debt and Net Debt-to-EBITDAX		11

Free Cash Flow and Reinvestment Rate		12

CONSOLIDATED STATEMENTS OF EARNINGS


(in millions, except per share amounts)	2025									2024
	Quarter 3			Quarter 2			Quarter 1			Quarter 4			Quarter 3
Oil, gas and NGL sales	$	2,809		$	2,710		$	3,126		$	3,086		$	2,665
Oil, gas and NGL derivatives ⁽¹⁾		80			236			(98	)		(84	)		227
Marketing and midstream revenues		1,442			1,338			1,424			1,401			1,132

Total revenues		4,331			4,284			4,452			4,403			4,024

Production expenses ⁽²⁾		895			899			912			881			763
Exploration expenses		8			20			10			12			4
Marketing and midstream expenses		1,453			1,357			1,436			1,402			1,149
Depreciation, depletion and amortization		879			914			912			971			794
Asset impairments		—			—			254			—			—
Asset dispositions		(37	)		(307	)		2			(5	)		—
General and administrative expenses		114			113			130			155			117
Financing costs, net ⁽³⁾		109			116			123			123			88
Other, net		(2	)		11			27			24			45

Total expenses		3,419			3,123			3,806			3,563			2,960

Earnings before income taxes		912			1,161			646			840			1,064
Income tax expense ⁽⁴⁾		219			244			137			187			239

Net earnings		693			917			509			653			825
Net earnings attributable to noncontrolling interests		6			18			15			14			13

Net earnings attributable to Devon	$	687		$	899		$	494		$	639		$	812

Net earnings per share:
Basic net earnings per share	$	1.09		$	1.42		$	0.77		$	0.98		$	1.31
Diluted net earnings per share	$	1.09		$	1.41		$	0.77		$	0.98		$	1.30
Weighted average common shares outstanding:
Basic		628			635			643			650			622
Diluted		629			636			645			651			623

SUPPLEMENTAL INFORMATION FOR CONSOLIDATED STATEMENTS OF EARNINGS

(1) OIL, GAS AND NGL DERIVATIVES


(in millions)	2025							2024
	Quarter 3		Quarter 2		Quarter 1			Quarter 4			Quarter 3
Derivative cash settlements	$	50	$	67	$	(10	)	$	58		$	61
Derivative valuation changes		30		169		(88	)		(142	)		166

Oil, gas and NGL derivatives	$	80	$	236	$	(98	)	$	(84	)	$	227

(2) PRODUCTION EXPENSES


(in millions)	2025						2024
	Quarter 3		Quarter 2		Quarter 1		Quarter 4		Quarter 3
Lease operating expense	$	481	$	483	$	479	$	445	$	366
Gathering, processing & transportation		213		219		204		213		200
Production taxes		184		180		212		206		179
Property taxes		17		17		17		17		18

Production expenses	$	895	$	899	$	912	$	881	$	763

(3) FINANCING COSTS, NET


(in millions)	2025									2024
	Quarter 3			Quarter 2			Quarter 1			Quarter 4			Quarter 3
Interest based on debt outstanding	$	125		$	126		$	127		$	128		$	98
Interest income		(18	)		(14	)		(10	)		(16	)		(19	)
Other		2			4			6			11			9

Financing costs, net	$	109		$	116		$	123		$	123		$	88

(4) INCOME TAX EXPENSE


(in millions)	2025							2024
	Quarter 3			Quarter 2		Quarter 1		Quarter 4		Quarter 3
Current expense (benefit)	$	(44	)	$	226	$	96	$	119	$	75
Deferred expense		263			18		41		68		164

Income tax expense	$	219		$	244	$	137	$	187	$	239

CONSOLIDATED BALANCE SHEETS


(in millions)	2025									2024
	Quarter 3			Quarter 2			Quarter 1			Quarter 4			Quarter 3
Current assets:
Cash, cash equivalents and restricted cash	$	1,278		$	1,759		$	1,234		$	846		$	676
Accounts receivable		1,835			1,853			2,036			1,972			1,779
Inventory		361			327			332			294			293
Other current assets		393			384			303			315			484

Total current assets		3,867			4,323			3,905			3,427			3,232
Oil and gas property and equipment, based on successful efforts accounting, net		23,591			23,428			23,429			23,198			23,155
Other property and equipment, net		1,698			1,687			1,653			1,813			1,795

Total property and equipment, net		25,289			25,115			25,082			25,011			24,950
Goodwill		753			753			753			753			753
Right-of-use assets		247			185			127			303			317
Investments		679			640			713			727			718
Other long-term assets		386			374			348			268			293

Total assets	$	31,221		$	31,390		$	30,928		$	30,489		$	30,263

Current liabilities:
Accounts payable	$	934		$	885		$	923		$	806		$	995
Revenues and royalties payable		1,464			1,440			1,588			1,432			1,423
Short-term debt		998			485			485			485			—
Other current liabilities		646			727			622			586			488

Total current liabilities		4,042			3,537			3,618			3,309			2,906
Long-term debt		7,393			8,393			8,395			8,398			8,884
Lease liabilities		158			113			77			320			328
Asset retirement obligations		850			839			835			770			765
Other long-term liabilities		962			1,008			1,041			840			820
Deferred income taxes		2,466			2,208			2,189			2,148			2,082
Stockholders’ equity:
Common stock		63			64			64			65			66
Additional paid-in capital		5,618			5,864			6,096			6,387			6,662
Retained earnings		9,788			9,252			8,506			8,166			7,670
Accumulated other comprehensive loss		(119	)		(120	)		(121	)		(122	)		(121	)

Total stockholders’ equity attributable to Devon		15,350			15,060			14,545			14,496			14,277
Noncontrolling interests		—			232			228			208			201

Total equity		15,350			15,292			14,773			14,704			14,478

Total liabilities and equity	$	31,221		$	31,390		$	30,928		$	30,489		$	30,263

CONSOLIDATED STATEMENTS OF CASH FLOWS


(in millions)	2025									2024
	Quarter 3			Quarter 2			Quarter 1			Quarter 4			Quarter 3
Cash flows from operating activities:
Net earnings	$	693		$	917		$	509		$	653		$	825
Adjustments to reconcile net earnings to net cash from operating activities:
Depreciation, depletion and amortization		879			914			912			971			794
Asset impairments		—			—			254			—			—
Leasehold impairments		1			7			5			3			1
Accretion of liabilities		4			3			6			6			2
Total (gains) losses on commodity derivatives		(80	)		(236	)		98			84			(227	)
Cash settlements on commodity derivatives		50			67			(10	)		58			61
(Gains) losses on asset dispositions		(37	)		(307	)		2			(5	)		—
Deferred income tax expense		263			18			41			68			164
Share-based compensation		24			23			30			24			24
Other		(45	)		5			(22	)		4			3
Changes in assets and liabilities, net		(62	)		134			117			(202	)		16

Net cash from operating activities		1,690			1,545			1,942			1,664			1,663

Cash flows from investing activities:
Capital expenditures		(870	)		(956	)		(934	)		(926	)		(877	)
Acquisitions of property and equipment		(197	)		(16	)		(8	)		(116	)		(3,602	)
Divestitures of property and equipment and investments		38			372			133			6			—
Grayson Mill acquired cash		—			—			—			—			147
Distributions from investments		7			11			9			33			13
Contributions to investments and other		(2	)		(8	)		(2	)		(40	)		(30	)

Net cash from investing activities		(1,024	)		(597	)		(802	)		(1,043	)		(4,349	)

Cash flows from financing activities:
Borrowings of long-term debt, net of issuance costs		—			—			—			—			3,219
Repayments of long-term debt		(485	)		—			—			—			(472	)
Repurchases of common stock		(250	)		(249	)		(301	)		(301	)		(295	)
Dividends paid on common stock		(151	)		(156	)		(163	)		(143	)		(272	)
Contributions from noncontrolling interests		—			—			14			8			20
Distributions to noncontrolling interests		—			(14	)		(9	)		(15	)		(10	)
Acquisition of noncontrolling interests		(260	)		—			—			—			—
Repayment of finance lease		—			—			(274	)		—			—
Shares exchanged for tax withholdings and other		(1	)		(5	)		(19	)		1			2

Net cash from financing activities		(1,147	)		(424	)		(752	)		(450	)		2,192

Effect of exchange rate changes on cash		—			1			—			(1	)		1

Net change in cash, cash equivalents and restricted cash		(481	)		525			388			170			(493	)
Cash, cash equivalents and restricted cash at beginning of period		1,759			1,234			846			676			1,169

Cash, cash equivalents and restricted cash at end of period	$	1,278		$	1,759		$	1,234		$	846		$	676

Reconciliation of cash, cash equivalents and restricted cash:
Cash and cash equivalents	$	1,229		$	1,713		$	1,198		$	811		$	645
Restricted cash		49			46			36			35			31

Total cash, cash equivalents and restricted cash	$	1,278		$	1,759		$	1,234		$	846		$	676

PRODUCTION


	2025						2024
	Quarter 3		Quarter 2		Quarter 1		Quarter 4		Quarter 3
Oil (MBbls/d)
Delaware Basin		223		228		216		221		227
Rockies		111		104		112		110		48
Eagle Ford		41		39		45		49		44
Anadarko Basin		12		13		11		14		13
Other		3		3		4		4		3

Total		390		387		388		398		335

Natural gas liquids (MBbls/d)
Delaware Basin		134		133		118		127		134
Rockies		53		47		44		43		15
Eagle Ford		11		11		15		21		16
Anadarko Basin		30		31		26		30		29
Other		—		—		—		—		—

Total		228		222		203		221		194

Gas (MMcf/d)
Delaware Basin		834		823		744		755		764
Rockies		245		228		233		230		96
Eagle Ford		70		62		117		130		93
Anadarko Basin		261		274		252		255		241
Other		—		1		—		1		—

Total		1,410		1,388		1,346		1,371		1,194

Total oil equivalent (MBoe/d)
Delaware Basin		496		498		458		474		488
Rockies		205		189		195		191		79
Eagle Ford		63		60		79		92		75
Anadarko Basin		85		90		79		87		82
Other		4		4		4		4		4

Total		853		841		815		848		728

CAPITAL EXPENDITURES


(in millions)	2025						2024
	Quarter 3		Quarter 2		Quarter 1		Quarter 4		Quarter 3
Delaware Basin	$	457	$	472	$	493	$	448	$	495
Rockies		189		224		215		268		89
Eagle Ford		138		118		151		107		173
Anadarko Basin		25		44		46		44		56
Other		1		2		3		5		4

Total upstream capital	$	810	$	860	$	908	$	872	$	817

Carbon capital		28		30		22		12		26
Midstream and Corporate		21		42		34		42		35

Capital expenditures	$	859	$	932	$	964	$	926	$	878

Acquisitions ⁽¹⁾		197		16		8		116		38

Total capital	$	1,056	$	948	$	972	$	1,042	$	916

(1)	Q3 2024 excludes $5,045 million related to the Grayson Mill acquisition.

SUPPLEMENTAL INFORMATION FOR CAPITAL EXPENDITURES

GROSS OPERATED SPUDS


	2025						2024
	Quarter 3		Quarter 2		Quarter 1		Quarter 4		Quarter 3
Delaware Basin		60		57		73		67		75
Rockies		21		23		24		24		8
Eagle Ford		24		22		30		12		28
Anadarko Basin		10		11		5		2		9

Total		115		113		132		105		120

GROSS OPERATED WELLS TIED-IN


	2025						2024
	Quarter 3		Quarter 2		Quarter 1		Quarter 4		Quarter 3
Delaware Basin		61		57		79		55		55
Rockies		22		30		16		30		7
Eagle Ford		10		10		35		23		31
Anadarko Basin		9		13		6		20		15

Total		102		110		136		128		108

NET OPERATED WELLS TIED-IN


	2025						2024
	Quarter 3		Quarter 2		Quarter 1		Quarter 4		Quarter 3
Delaware Basin		40		46		54		50		39
Rockies		18		27		13		27		6
Eagle Ford		10		7		26		13		24
Anadarko Basin		5		5		2		8		6

Total		73		85		95		98		75

AVERAGE LATERAL LENGTH

(based on wells tied-in)

2025

2024

Quarter 3

Quarter 2

Quarter 1

Quarter 4

Quarter 3

Delaware Basin

11,100’

10,500’

10,300’

11,500’

10,500’

Rockies

13,000’

12,300’

12,200’

10,150’

14,500’

Eagle Ford

7,200’

8,200’

7,800’

7,700’

7,600’

Anadarko Basin

10,000’

12,500’

10,000’

11,000’

Total

10,300’

10,700’

9,900’

10,000’

REALIZED PRICING

BENCHMARK PRICES


(average prices)	2025									2024
	Quarter 3			Quarter 2			Quarter 1			Quarter 4			Quarter 3
Oil ($/Bbl) - West Texas Intermediate (Cushing)	$	64.92		$	63.95		$	71.50		$	70.32		$	75.20
Natural Gas ($/Mcf) - Henry Hub	$	3.07		$	3.44		$	3.65		$	2.79		$	2.15
NGL ($/Bbl) - Mont Belvieu Blended	$	24.25		$	25.58		$	29.65		$	27.80		$	25.20

REALIZED PRICES

	2025									2024
	Quarter 3			Quarter 2			Quarter 1			Quarter 4			Quarter 3
Oil (Per Bbl)
Delaware Basin	$	63.89		$	62.60		$	70.28		$	69.06		$	74.24
Rockies		61.14			59.05			66.40			65.67			70.39
Eagle Ford		64.87			63.14			69.85			69.25			74.92
Anadarko Basin		63.68			62.09			71.15			67.46			73.13

Realized price without hedges		63.21			61.70			69.13			68.11			73.74
Cash settlements		0.78			1.27			0.02			1.08			0.52

Realized price, including cash settlements	$	63.99		$	62.97		$	69.15		$	69.19		$	74.26

Natural gas liquids (Per Bbl)
Delaware Basin	$	18.25		$	19.10		$	22.76		$	21.79		$	19.21
Rockies		10.26			9.27			14.72			12.88			8.09
Eagle Ford		22.85			23.03			28.65			26.40			24.18
Anadarko Basin		20.94			22.41			26.91			25.45			22.35

Realized price without hedges		17.01			17.71			22.03			21.07			19.25
Cash settlements		0.17			0.11			(0.10	)		(0.06	)		0.11

Realized price, including cash settlements	$	17.18		$	17.82		$	21.93		$	21.01		$	19.36

Gas (Per Mcf)
Delaware Basin	$	1.50		$	1.34		$	2.47		$	1.01		$	0.04
Rockies		(0.42	)		(0.50	)		1.48			0.59			(0.85	)
Eagle Ford		2.78			3.01			3.36			2.31			1.80
Anadarko Basin		2.57			2.86			3.42			2.27			1.74

Realized price without hedges		1.43			1.41			2.55			1.30			0.45
Cash settlements		0.15			0.15			(0.07	)		0.16			0.39

Realized price, including cash settlements	$	1.58		$	1.56		$	2.48		$	1.46		$	0.84

Total oil equivalent (Per Boe)
Delaware Basin	$	36.18		$	35.92		$	43.00		$	39.66		$	39.85
Rockies		35.33			34.29			43.29			41.37			43.11
Eagle Ford		48.85			48.32			49.75			46.46			50.89
Anadarko Basin		23.97			25.28			29.96			26.54			24.69

Realized price without hedges		35.82			35.43			42.58			39.57			39.80
Cash settlements		0.64			0.87			(0.13	)		0.75			0.91

Realized price, including cash settlements	$	36.46		$	36.30		$	42.45		$	40.32		$	40.71

ASSET MARGINS

BENCHMARK PRICES


(average prices)	2025									2024
	Quarter 3			Quarter 2			Quarter 1			Quarter 4			Quarter 3
Oil ($/Bbl) - West Texas Intermediate (Cushing)	$	64.92		$	63.95		$	71.50		$	70.32		$	75.20
Natural Gas ($/Mcf) - Henry Hub	$	3.07		$	3.44		$	3.65		$	2.79		$	2.15
NGL ($/Bbl) - Mont Belvieu Blended	$	24.25		$	25.58		$	29.65		$	27.80		$	25.20

PER-UNIT CASH MARGIN BY ASSET (per Boe)

	2025									2024
	Quarter 3			Quarter 2			Quarter 1			Quarter 4			Quarter 3
Delaware Basin
Realized price	$	36.18		$	35.92		$	43.00		$	39.66		$	39.85
Lease operating expenses		(5.38	)		(5.54	)		(5.74	)		(4.93	)		(4.69	)
Gathering, processing & transportation		(2.94	)		(3.17	)		(3.00	)		(2.92	)		(2.79	)
Production & property taxes		(2.52	)		(2.63	)		(3.13	)		(2.91	)		(2.99	)

Field-level cash margin	$	25.34		$	24.58		$	31.13		$	28.90		$	29.38

Rockies
Realized price	$	35.33		$	34.29		$	43.29		$	41.37		$	43.11
Lease operating expenses		(8.27	)		(9.13	)		(9.31	)		(8.63	)		(10.83	)
Gathering, processing & transportation		(0.99	)		(0.86	)		(1.14	)		(1.22	)		(2.33	)
Production & property taxes		(3.04	)		(2.85	)		(3.83	)		(3.66	)		(4.56	)

Field-level cash margin	$	23.03		$	21.45		$	29.01		$	27.86		$	25.39

Eagle Ford
Realized price	$	48.85		$	48.32		$	49.75		$	46.46		$	50.89
Lease operating expenses		(7.83	)		(7.52	)		(6.65	)		(5.59	)		(6.57	)
Gathering, processing & transportation		(2.27	)		(1.94	)		(2.47	)		(2.21	)		(2.02	)
Production & property taxes		(2.89	)		(3.02	)		(2.65	)		(2.41	)		(2.79	)

Field-level cash margin	$	35.86		$	35.84		$	37.98		$	36.25		$	39.51

Anadarko Basin
Realized price	$	23.97		$	25.28		$	29.96		$	26.54		$	24.69
Lease operating expenses		(3.25	)		(2.98	)		(3.20	)		(2.72	)		(2.92	)
Gathering, processing & transportation		(5.98	)		(6.13	)		(6.01	)		(5.74	)		(5.78	)
Production & property taxes		(1.30	)		(1.32	)		(1.62	)		(1.20	)		(1.17	)

Field-level cash margin	$	13.44		$	14.85		$	19.13		$	16.88		$	14.82

Devon - Total
Realized price	$	35.82		$	35.43		$	42.58		$	39.57		$	39.80
Lease operating expenses		(6.14	)		(6.31	)		(6.53	)		(5.70	)		(5.46	)
Gathering, processing & transportation		(2.71	)		(2.86	)		(2.78	)		(2.74	)		(2.98	)
Production & property taxes		(2.56	)		(2.58	)		(3.11	)		(2.86	)		(2.95	)

Field-level cash margin	$	24.41		$	23.68		$	30.16		$	28.27		$	28.41

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 third-quarter 2025 and second-quarter 2025 earnings.


	Quarter Ended September 30, 2025
	Before-tax			After-tax			After NCI			Per Diluted Share
Total
Earnings (GAAP)	$	912		$	693		$	687		$	1.09
Adjustments:
Asset dispositions		(37	)		(28	)		(28	)		(0.04	)
Asset and exploration impairments		1			1			1			—
Change in tax laws		—			11			11			0.02
Fair value changes in financial instruments		(29	)		(22	)		(22	)		(0.04	)
Restructuring and transaction costs		9			7			7			0.01

Core earnings (Non-GAAP)	$	856		$	662		$	656		$	1.04


	Quarter Ended June 30, 2025
	Before-tax			After-tax			After NCI			Per Diluted Share
Total
Earnings (GAAP)	$	1,161		$	917		$	899		$	1.41
Adjustments:
Asset dispositions ⁽¹⁾		(307	)		(239	)		(239	)		(0.38	)
Asset and exploration impairments		4			2			2			0.01
Fair value changes in financial instruments		(172	)		(133	)		(133	)		(0.21	)
Restructuring and transaction costs		9			7			7			0.01

Core earnings (Non-GAAP)	$	695		$	554		$	536		$	0.84

(1)	The divestiture of our equity interest in Matterhorn drove our Q2 current tax higher, with approximately $100 million of current tax.

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 impairments; asset disposition gains and losses; non-cash share-based compensation; non-cash valuation changes for derivatives and financial instruments; accretion on discounted liabilities; and other items not related to core operations. EBITDAX as defined by Devon may not be comparable to similarly titled measures used by other companies.


	Q3 ‘25			Q2 ‘25			Q1 ‘25		Q4 ‘24			TTM			Q3 ‘24
Net earnings (GAAP)	$	693		$	917		$	509	$	653		$	2,772		$	825
Financing costs, net		109			116			123		123			471			88
Income tax expense		219			244			137		187			787			239
Exploration expenses		8			20			10		12			50			4
Depreciation, depletion and amortization		879			914			912		971			3,676			794
Asset impairments		—			—			254		—			254			—
Asset dispositions		(37	)		(307	)		2		(5	)		(347	)		—
Share-based compensation		21			22			24		24			91			24
Derivative & financial instrument non-cash val. changes		(30	)		(169	)		88		142			31			(166	)
Accretion on discounted liabilities and other		(2	)		11			27		24			60			45

EBITDAX (Non-GAAP)	$	1,860		$	1,768		$	2,086	$	2,131		$	7,845		$	1,853

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.


	2025									2024
	Quarter 3			Quarter 2			Quarter 1			Quarter 4			Quarter 3
Total debt (GAAP)	$	8,391		$	8,878		$	8,880		$	8,883		$	8,884
Less:
Cash, cash equivalents and restricted cash		(1,278	)		(1,759	)		(1,234	)		(846	)		(676	)

Net debt (Non-GAAP)	$	7,113		$	7,119		$	7,646		$	8,037		$	8,208

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.


	2025						2024
	Quarter 3		Quarter 2		Quarter 1		Quarter 4		Quarter 3
Net debt (Non-GAAP)	$	7,113	$	7,119	$	7,646	$	8,037	$	8,208
EBITDAX (Non-GAAP) ⁽¹⁾	$	7,845	$	7,838	$	8,034	$	7,739	$	7,496

Net debt-to-EBITDAX (Non-GAAP)		0.9		0.9		1.0		1.0		1.1

(1)	EBITDAX is an annualized measure using a trailing twelve-month calculation.

FREE CASH FLOW

Devon defines free cash flow as total operating cash flow less capital expenditures. Devon believes free cash flow provides a useful measure of available cash generated by operating activities for other investing and financing activities.


	2025									2024
	Quarter 3			Quarter 2			Quarter 1			Quarter 4			Quarter 3
Total operating cash flow (GAAP)	$	1,690		$	1,545		$	1,942		$	1,664		$	1,663
Less capital expenditures (Excluding acquisitions):		(870	)		(956	)		(934	)		(926	)		(877	)

Free cash flow (Non-GAAP)	$	820		$	589		$	1,008		$	738		$	786

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.


	2025									2024
	Quarter 3			Quarter 2			Quarter 1			Quarter 4			Quarter 3
Capital expenditures (Accrued) ⁽¹⁾	$	1,056		$	948		$	972		$	1,042		$	916
Operating cash flow	$	1,690		$	1,545		$	1,942		$	1,664		$	1,663

Reinvestment rate (Non-GAAP)		63	%		61	%		50	%		63	%		55	%

(1)	Q3 2024 excludes $5,045 million related to the Grayson Mill acquisition.

LOGO

FOURTH-QUARTER 2025 GUIDANCE

PRODUCTION GUIDANCE


	Quarter 4
	Low		High
Oil (MBbls/d)		383		388
Natural gas liquids (MBbls/d)		223		228
Gas (MMcf/d)		1,330		1,370

Total oil equivalent (MBoe/d)		828		844

CAPITAL EXPENDITURES GUIDANCE


	Quarter 4
(in millions)	Low		High
Upstream capital	$	850	$	890
Carbon capital		25		35
Midstream and other capital		15		25

Total capital	$	890	$	950

PRICE REALIZATIONS GUIDANCE


	Quarter 4
	Low			High
Oil - % of WTI		95	%		99	%
NGL - % of WTI		28	%		32	%
Natural gas - % of Henry Hub		30	%⁽¹⁾		40	%⁽¹⁾

(1)

Fourth-quarter gas realizations are expected to be impacted due to weak Permian pricing as a result of pipeline outages.

OTHER GUIDANCE ITEMS


	Quarter 4
($ millions, except Boe and %)	Low			High
Marketing and midstream operating profit	$	(20	)	$	(15	)
LOE and GP&T per BOE	$	8.70		$	9.00
Production and property taxes as % of upstream sales		7.0	%		7.8	%
Exploration expenses	$	5		$	10
Depreciation, depletion and amortization	$	850		$	900
General and administrative expenses	$	120		$	130
Financing costs, net	$	100		$	110
Other expenses	$	—		$	10

INCOME TAX GUIDANCE


	Quarter 4
(% of pre-tax earnings)	Low			High
Current income tax rate		7	%		9	%
Deferred income tax rate		17	%		19	%

Total income tax rate		~26%

LOGO

2025 & 2026 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)
Q4 2025		9,000	$	71.52		105,000	$	66.35	$	75.36


	Three Way Collars
Period	Volume (Bbls/d)		Weighted Average Floor Sold Price ($/Bbl)		Weighted Average Floor Purchased Price ($/Bbl)		Weighted Average Ceiling Price ($/Bbl)
Q4 2025		13,000	$	50.77	$	65.00	$	77.37
Q1-Q4 2026		84,471	$	50.21	$	60.35	$	72.64

Oil Basis Swaps


Period	Index	Volume (Bbls/d)		Weighted Average Differential to WTI ($/Bbl)
Q4 2025	Midland Sweet		63,000	$	1.00
Q4 2025	WTI/Brent		5,391	$	(3.64	)
Q4 2025	NYMEX Roll		13,000	$	1.05
Q1-Q4 2026	Midland Sweet		46,000	$	1.10
Q1-Q4 2027	Midland Sweet		14,000	$	1.04

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)
Q4 2025		245,000	$	3.51		170,000	$	3.00	$	3.80
Q1-Q4 2026		247,500	$	3.80		160,000	$	3.14	$	4.88

Natural Gas Basis Swaps


Period	Index	Volume (MMBtu/d)		Weighted Average Differential to Henry Hub ($/MMBtu)
Q4 2025	Houston Ship Channel		230,000	$	(0.35	)
Q4 2025	WAHA		200,000	$	(1.53	)
Q1–Q4 2026	Houston Ship Channel		50,000	$	(0.29	)
Q1–Q4 2026	WAHA		120,000	$	(1.79	)

NGL Commodity Hedges


		Price Swaps
Period	Product	Volume (Bbls/d)		Weighted Average Price ($/Bbl)
Q4 2025	Natural Gasoline		3,000	$	63.35
Q4 2025	Normal Butane		323	$	39.90
Q4 2025	Propane		3,000	$	32.29

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. Devon’s NGL derivatives settle against the average of the prompt month OPIS Mont Belvieu, Texas index. Commodity hedge positions are shown as of September 30, 2025.