DEVON ENERGY CORPDE
For the period ended Jun 30, 2024. Filed Aug 7, 2024.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2024 · Filed Aug 7, 2024
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-03-31; filed 2024-05-02.
0000950170-24-051757
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsExecutive OverviewCurrent report: 10-Q
Period ended 2024-06-30; filed 2024-08-07.
0000950170-24-092424
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsExecutive OverviewThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 14 previous paragraphs and 13 current paragraphs.
3 unchanged; 10 reworded; 0 added; 1 removed; 0 previous and 0 current paragraphs rearranged.
Tables are not compared: 0 previous and 0 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Removed paragraphs (1)
Previous report
Increased our fixed dividend 10% to $0.22 per share.
Reworded paragraphs (10)
Previous wording
The following discussion and analysis addresses material changes in our results of operations for the three-month period ended March 31, 2024 compared to previous periods, and in our financial condition and liquidity since December 31, 2023. For information regarding our critical accounting policies and estimates, see our 2023 Annual Report on Form 10-K under “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations.”
Current wording
The following discussion and analysis addresses material changes in our results of operations for the three-month and six-month periods ended June 30, 2024 compared to previous periods, and in our financial condition and liquidity since December 31, 2023. For information regarding our critical accounting policies and estimates, see our 2023 Annual Report on Form 10-K under “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations.”
Previous wording
We are a leading independent oil and natural gas exploration and production company whose operations are focused onshore in the United States. Our operations are currently focused in five core areas: the Delaware Basin, Eagle Ford, Anadarko Basin, Williston Basin and Powder River Basin. Our asset base is underpinned by premium acreage in the economic core of the Delaware Basin and our diverse, top-tier resource plays provide a deep inventory of opportunities for years to come.
Current wording
We are a leading independent oil and natural gas exploration and production company whose operations are focused onshore in the United States. Our operations are currently focused in five core areas: the Delaware Basin, Eagle Ford, Anadarko Basin, Williston Basin and Powder River Basin. Our asset base is underpinned by premium acreage in the economic core of the Delaware Basin and our diverse, top-tier resource plays, providing a deep inventory of opportunities for years to come.
Previous wording
We remain focused on building economic value by executing on our strategic priorities of moderating production growth, emphasizing capital and operational efficiencies, optimizing reinvestment rates to maximize free cash flow, maintaining low leverage, delivering cash returns to our shareholders and pursuing ESG excellence. Our recent performance highlights for these priorities include the following items for the first quarter of 2024:
Current wording
In July 2024, Devon announced it had entered into an agreement to acquire the Williston Basin business of Grayson Mill Energy. The purchase price for the transaction consists of $3.25 billion of cash and approximately 37 million shares of Devon common stock, in each case subject to various purchase price adjustments. The transaction is expected to close by the end of the third quarter of 2024 and increase our volumes in 2025 by approximately 100 MBoe/d, with approximately 55% being oil. The acquisition will allow us to efficiently expand our oil production and operating scale, creating immediate and long-term, sustainable value to shareholders over time. As evidenced by this recent acquisition, we remain focused on building economic value by executing on our strategic priorities of moderating production growth, emphasizing capital and operational efficiencies, optimizing reinvestment rates to maximize free cash flow, maintaining low leverage, delivering cash returns to our shareholders and pursuing ESG excellence. Our recent performance highlights for these priorities include the following items for the second quarter of 2024:
Previous wording
Oil production totaled 319 MBbls/d, exceeding our plan by 4%.
Current wording
Oil production totaled 335 MBbls/d, exceeding our plan by 3%.
Previous wording
As of March 31, 2024, completed approximately 83% of our authorized $3.0 billion share repurchase program, with approximately 49.5 million of our common shares repurchased for approximately $2.5 billion, or $50.37 per share since inception of the plan.
Current wording
Expanded share repurchase program to $5.0 billion and have repurchased approximately 54.7 million of our common shares for approximately $2.7 billion, or $50.28 per share since inception of the plan.
Previous wording
Exited with $4.1 billion of liquidity, including $1.1 billion of cash.
Current wording
Exited with $4.2 billion of liquidity, including $1.2 billion of cash.
Previous wording
Generated $1.7 billion of operating cash flow and $6.6 billion for the past twelve trailing months.
Current wording
Generated $1.5 billion of operating cash flow and $6.7 billion for the past twelve trailing months.
Previous wording
Including variable dividends, paid dividends of $299 million and have declared approximately $221 million of dividends to be paid in the second quarter of 2024.
Current wording
Including variable dividends, paid dividends of $223 million and have declared approximately $276 million of dividends to be paid in the third quarter of 2024.
Previous wording
Earnings attributable to Devon were $596 million, or $0.94 per diluted share.
Current wording
Earnings attributable to Devon were $844 million, or $1.34 per diluted share.
Previous wording
Core earnings (Non-GAAP) were $730 million, or $1.16 per diluted share.
Current wording
Core earnings (Non-GAAP) were $885 million, or $1.41 per diluted share.