DVN Devon Energy Corp

• Exceeded production guidance for third consecutive quarter
• Achieved Company record 272,000 barrels of oil per day
• Reduced operating costs 9 percent year over year
• Completed accretive EnLink transactions
• Increased 2015 oil production growth outlook to a range of 25 to 35 percent
• Reduced 2015 capital spending 6 percent

Devon Energy Corp. (NYSE:DVN) today announced core earnings of $89 million, or $0.22 per diluted share, for the first quarter of 2015. The Company’s total cash inflows for the quarter reached $2.2 billion, consisting of $1.6 billion of operating cash flow and $569 million of proceeds received from the sale of EnLink common units.

“Devon delivered outstanding operational results in the first quarter as we continued to deliver superior execution across our repositioned asset portfolio,” said John Richels, president and CEO. “Our focused drilling activity has generated production growth that exceeded our guidance for the third consecutive quarter, our capital programs benefited from substantial service cost savings and we did an exceptional job controlling operating expenses.

“Additionally, the proceeds from the sale of EnLink units allow us to further strengthen our investment-grade balance sheet and enhance our liquidity position,” Richels said. “Combined with our recent sale of the Victoria Express Pipeline to EnLink, which closed early in the second quarter, we generated approximately $870 million of value for our shareholders at a substantial premium to Devon’s current trading multiple.”

On a reported basis, due to a non-cash, full-cost ceiling charge, Devon had a net loss of $3.6 billion for the first-quarter 2015. This compares with first-quarter 2014 reported net earnings of $324 million.

Production Exceeds Guidance for Third Consecutive Quarter

Total production from Devon’s retained asset base averaged 685,000 oil-equivalent barrels (Boe) per day during the first quarter of 2015. This result exceeded the top end of the Company’s guidance range by 12,000 Boe per day and represents a 22 percent increase compared to the first quarter of 2014. Liquids accounted for 60 percent of the Company’s production mix.

Devon delivered record oil production of 272,000 barrels per day in the first quarter. This result also exceeded the top end of the Company’s guidance range by 12,000 barrels per day and represents a 55 percent increase compared to the first quarter of 2014. The most significant growth came from the Company’s U.S. operations, where oil production increased a substantial 72 percent for the quarter year over year.

The strong growth in U.S. production was largely attributable to prolific well results from the Company’s world-class Eagle Ford assets. Net production in the Eagle Ford averaged 122,000 Boe per day in the first quarter, a 23 percent increase compared to the fourth quarter of 2014 and nearly a 140% increase in production compared to Devon’s first month of ownership in March 2014. In addition, the Company achieved another quarter of strong production growth in the Delaware Basin, where net production averaged 53,000 Boe per day, an increase of 15 percent compared to the fourth quarter of 2014.

Devon’s heavy-oil operations in Canada also delivered impressive production growth. In aggregate, net oil production from the Company’s heavy-oil projects increased to a record 104,000 barrels per day in the first quarter. Driven by the continued ramp-up of the Jackfish 3 facility, net oil production in Canada increased 33 percent compared to the first quarter of 2014.

Devon Raises 2015 Production Outlook; Lowering E&P Capital Budget

Detailed forward-looking guidance for the second quarter and full-year 2015 is provided later in the release. A notable update from this revised outlook is Devon raising its total oil production growth to a range of 25 to 35 percent, a substantial increase from the Company’s previous full-year growth guidance of 20 to 25 percent. Due to the improving outlook for oil production, the Company has also raised its top-line production growth guidance in 2015 to a range of 5 to 10 percent.

In addition to higher production, Devon is also benefiting from lower capital requirements. The Company’s 2015 E&P capital program is now expected to range from $3.9 to $4.1 billion. This represents a $250 million reduction in capital spending compared to the Company’s previous guidance.

Operations Report

For additional details on Devon’s E&P operations, please refer to the Company’s first-quarter 2015 Operations Report at www.devonenergy.com. Highlights from the report include:

• Eagle Ford delivers significant production growth
• Bone Spring and Powder River Basin type curves raised
• Jackfish 3 ramp-up drives growth in Canada
• Emerging Meramec potential expands

Hedges Increase Upstream Revenue; Midstream Profit Rises

Revenue from oil, natural gas and natural gas liquids sales totaled $1.3 billion in the first quarter of 2015, with oil revenue increasing to 64 percent of total upstream revenues. This increased oil sales weighting was attributable to the Company’s substantial growth in both U.S. and Canadian oil production during the quarter.

Cash settlements related to the Company’s oil and natural gas hedges increased revenue by nearly $600 million, or approximately $10 per Boe, in the first quarter. At the end of March, Devon’s commodity hedges had a fair-market value of $1.6 billion.

The Company’s midstream operating profit reached $193 million in the first quarter. This result represents a 6 percent increase compared to the first quarter of 2014 and was right in line with guidance. The year-over-year increase in midstream operating profit was driven by continued growth from EnLink Midstream.

Cost Reduction Initiatives Delivering Strong Results

The Company has several cost reduction initiatives underway that positively impacted first-quarter results. Field-level operating costs, which includes both lease operating expenses (LOE) and production taxes, declined 9 percent to $10.73 per Boe compared to the first quarter of 2014.

The most significant operating cost savings came from LOE, which is the Company’s largest field-level cost. LOE declined 7 percent compared to the year-ago period to $8.97 per Boe and was 7 percent below the low end of Devon’s guidance range. These LOE cost savings were realized across all regions of the Company’s portfolio.

Based on year-to-date cost savings, Devon now expects the midpoint of its full-year 2015 LOE to decline to around $9.30 per Boe. Compared to previous guidance, this implies a full-year cash cost savings of around $170 million.

Production and property taxes were $108 million in the first quarter of 2015, a 21 percent decline year over year. The decline was driven by lower production taxes resulting from lower upstream revenue.

General and administrative expenses (G&A) totaled $251 million in the first quarter of 2015, essentially flat compared to the fourth quarter of 2014. Of this first-quarter G&A expense, $41 million was attributable to non-cash related items. Excluding non-cash items, G&A declined 7 percent sequentially.

Excluding non-recurring items, Devon’s income tax rate was 36 percent of pre-tax earnings for the first quarter of 2015. Of this adjusted rate, the Company incurred a current tax rate of 8 percent, with a deferred tax rate of 28 percent for the quarter.

Accretive Midstream Transactions Strengthen Balance Sheet

Devon recently utilized its strategic investment in EnLink to further strengthen its financial position through a series of highly accretive transactions. In aggregate, the total value of these transactions for Devon was approximately $870 million.

The first of these transactions occurred on March 23, with the announced sale of its Victoria Express Pipeline in the Eagle Ford to EnLink Midstream Partners (NYSE: ENLK). Total consideration for this highly accretive transaction was approximately $215 million or about 10 times 2015 estimated EBITDA. This asset transaction closed on April 1, 2015, with cash proceeds received in the second quarter.

On March 24, Devon commenced a secondary offering of 22.8 million ENLK partnership units. This offering settled in late March, with the Company realizing total cash proceeds of $569 million. Subsequent to quarter end, underwriters fully exercised their option to purchase an additional 3.4 million ENLK partnership units from Devon. This resulted in an incremental $85 million of proceeds received in the second-quarter.

With investment-grade credit ratings and cash balances of $1.9 billion at the end of the first quarter, Devon’s financial position remains exceptionally strong. At March 31, the Company’s net debt, excluding non-recourse EnLink obligations, totaled $7.5 billion.

Non-GAAP Reconciliations

Pursuant to regulatory disclosure requirements, Devon is required to reconcile non-GAAP financial measures to the related GAAP information (GAAP refers to generally accepted accounting principles). Core earnings and net debt are non-GAAP financial measures referenced within this release. Reconciliations of these non-GAAP measures are provided later in this release.

Conference Call Webcast and Supplemental Earnings Materials

Please note that as soon as practicable today, Devon will post additional information, consisting of an operations report and management commentary with associated slides, to its website at www.devonenergy.com. The Company’s first-quarter 2015 conference call will be held at 10 a.m. Central (11 a.m. Eastern) on Wednesday, May 6, 2015, and will serve primarily as a forum for analyst and investor questions and answers.

Forward-Looking Statements

This press release includes "forward-looking statements" as defined by the Securities and Exchange Commission (SEC). Such statements include those concerning strategic plans, expectations and objectives for future operations, and are often identified by use of the words “forecasts”, “projections”, “estimates”, “plans”, “expectations”, “targets”, “opportunities”, “potential”, “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 the Company expects, believes or anticipates will or may occur in the future are forward-looking statements. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the Company. Statements regarding future drilling and production are subject to all of the risks and uncertainties normally incident to the exploration for and development and production of oil and gas. These risks include, but are not limited to, the volatility of oil, natural gas and NGL prices; uncertainties inherent in estimating oil, natural gas and NGL reserves; the extent to which we are successful in acquiring and discovering additional reserves; unforeseen changes in the rate of production from our oil and gas properties; uncertainties in future exploration and drilling results; uncertainties inherent in estimating the cost of drilling and completing wells; drilling risks; competition for leases, materials, people and capital; midstream capacity constraints and potential interruptions in production; risk related to our hedging activities; environmental risks; political changes; changes in laws or regulations; our limited control over third parties who operate our oil and gas properties; our ability to successfully complete mergers, acquisitions and divestitures; and other risks identified in our Form 10-K and our other filings with the SEC. Investors are cautioned that any such statements are not guarantees of future performance and that actual results or developments may differ materially from those projected in the forward-looking statements. The forward-looking statements in this press release are made as of the date of this press release, even if subsequently made available by Devon on its website or otherwise. Devon does not undertake any obligation to update the forward-looking statements as a result of new information, future events or otherwise.

The SEC permits oil and gas companies, in their filings with the SEC, to disclose only proved, probable and possible reserves that meet the SEC's definitions for such terms, and price and cost sensitivities for such reserves, and prohibits disclosure of resources that do not constitute such reserves. This release may contain certain terms, such as resource potential and exploration target size. These estimates are by their nature more speculative than estimates of proved, probable and possible reserves and accordingly are subject to substantially greater risk of being actually realized. The SEC guidelines strictly prohibit us from including these estimates in filings with the SEC. U.S. investors are urged to consider closely the disclosure in our Form 10-K, available at www.devonenergy.com. You can also obtain this form from the SEC by calling 1-800-SEC-0330 or from the SEC’s website at www.sec.gov.

About Devon Energy

Devon Energy is a leading independent energy Company engaged in finding and producing oil and natural gas. Based in Oklahoma City and included in the S&P 500, Devon operates in several of the most prolific oil and natural gas plays in the U.S. and Canada with an emphasis on a balanced portfolio. The Company is the second-largest oil producer among North American onshore independents. For more information, please visit www.devonenergy.com.

DEVON ENERGY CORPORATIONFINANCIAL AND OPERATIONAL INFORMATION

 

      Quarter Ended PRODUCTION NET OF ROYALTIES March 31, 2015       2014   Oil and bitumen (MBbls/d) United States 168 98 Canada 104 78 Retained assets 272 176 Divested assets - 14 Total 272 190 Natural gas liquids (MBbls/d) United States 139 119 Divested assets - 16 Total 139 135 Gas (MMcf/d) United States 1,617 1,587 Canada 28 20

Retained assets

1,645 1,607 Divested assets - 585 Total 1,645 2,192 Oil equivalent (MBoe/d) United States 576 482 Canada 109 81 Retained assets 685 563 Divested assets - 128 Total 685 691                     KEY OPERATING STATISTICS BY REGION Quarter Ended March 31, 2015

Avg. Production(MBoe/d)

Gross Wells Drilled

Operated Rigs atMarch 31, 2015

Eagle Ford 122 87 1 Permian Basin 102 67 15 Canadian Heavy Oil 109 21 2 Anadarko Basin 88 24 8 Barnett Shale 191 - - Rockies 22 13 2 Other assets 51 16 2 Total 685 228 30                                 PRODUCTION TREND 2014 2014 2014 2014 2015 Quarter 1 Quarter 2 Quarter 3 Quarter 4 Quarter 1   Oil (MBbls/d) Eagle Ford 11 40 47 60 75 Permian Basin 55 55 56 55 60 Canadian Heavy Oil 78 77 80 93 104 Anadarko Basin 9 11 10 10 9 Barnett Shale 2 2 2 2 1 Rockies 8 8 10 9 12 Other assets 13 12 11 10 11 Retained assets 176 205 216 239 272 Divested assets 14 4 3 - - Total 190 209 219 239 272 Natural gas liquids (MBbls/d) Eagle Ford 3 11 14 18 23 Permian Basin 16 18 19 20 19 Anadarko Basin 29 31 34 34 30 Barnett Shale 55 55 54 53 51 Rockies 1 1 1 1 1 Other assets 15 14 16 15 15 Retained assets 119 130 138 141 139 Divested assets 16 6 5 - - Total 135 136 143 141 139 Gas (MMcf/d) Eagle Ford 24 88 109 127 143 Permian Basin 121 134 136 137 137 Canadian Heavy Oil 20 23 26 23 28 Anadarko Basin 281 309 323 329 297 Barnett Shale 931 932 896 878 827 Rockies 65 67 66 58 53 Other assets 165 159 160 155 160 Retained assets 1,607 1,712 1,716 1,707 1,645 Divested assets 585 219 138 3 - Total 2,192 1,931 1,854 1,710 1,645 Oil equivalent (MBoe/d) Eagle Ford 18 65 79 99 122 Permian Basin 91 95 98 98 102 Canadian Heavy Oil 81 81 84 97 109 Anadarko Basin 85 93 98 100 88 Barnett Shale 213 212 205 201 191 Rockies 20 21 22 19 22 Other assets 55 53 54 50 51 Retained assets 563 620 640 664 685 Divested assets 128 47 31 1 - Total 691 667 671 665 685                           BENCHMARK PRICES (average prices) Quarter Ended March 31, 2015 2014 Natural Gas ($/Mcf) - Henry Hub $ 2.99 $ 4.95 Oil ($/Bbl) - West Texas Intermediate (Cushing) $ 48.87 $ 98.66   REALIZED PRICES Quarter Ended March 31, 2015 Oil /Bitumen NGL Gas Total (Per Bbl) (Per Bbl) (Per Mcf) (Per Boe) United States $ 42.80 $ 9.40 $ 2.47 $ 21.66 Canada (1) $ 22.87  

$

N/M

$ 1.12   $ 22.16   Realized price without hedges $ 35.17 $ 9.40 $ 2.45 $ 21.74 Cash settlements $ 21.12   $ -   $ 0.51   $ 9.62   Realized price, including cash settlements $ 56.29   $ 9.40   $ 2.96   $ 31.36     Quarter Ended March 31, 2014 Oil /Bitumen NGL Gas Total (Per Bbl) (Per Bbl) (Per Mcf) (Per Boe) United States $ 91.66 $ 29.66 $ 4.33 $ 39.44 Canada (1) $ 61.76   $ 51.80   $ 4.14   $ 46.71   Realized price without hedges $ 77.75 $ 31.15 $ 4.30 $ 41.13 Cash settlements $ (2.10 ) $ (0.02 ) $ (0.33 ) $ (1.61 ) Realized price, including cash settlements $ 75.65   $ 31.13   $ 3.97   $ 39.52    

(1) The reported Canadian gas volumes include volumes that are produced from certain of our leases and then transported to our Jackfish operations where the gas is used as fuel. However, the revenues and expenses related to this consumed gas are eliminated in our consolidated financials.

            CONSOLIDATED STATEMENTS OF EARNINGS (in millions, except per share amounts) Quarter Ended March 31, 2015 2014 Oil, gas and NGL sales $ 1,339 $ 2,557 Oil, gas and NGL derivatives 294 (320 ) Marketing and midstream revenues   1,632     1,488   Total operating revenues   3,265     3,725   Lease operating expenses 553 598 Marketing and midstream operating expenses 1,439 1,305 General and administrative expenses 251 211 Production and property taxes 108 137 Depreciation, depletion and amortization 930 739 Asset impairments 5,460 - Restructuring costs - 37 Gains and losses on asset sales - (15 ) Other operating items   19     23   Total operating expenses   8,760     3,035   Operating income (loss) (5,495 ) 690 Net financing costs 117 112 Other nonoperating items   12     18   Earnings (loss) before income taxes (5,624 ) 560 Income tax expense (benefit)   (2,035 )   231   Net earnings (loss) (3,589 ) 329 Net earnings attributable to noncontrolling interests   10     5   Net earnings (loss) attributable to Devon $ (3,599 ) $ 324     Net earnings (loss) per share attributable to Devon: Basic $ (8.88 ) $ 0.80 Diluted $ (8.88 ) $ 0.79   Weighted average common shares outstanding: Basic 410 407 Diluted 410 408                           CONSOLIDATING STATEMENTS OF OPERATIONS (in millions) Quarter Ended March 31, 2015

Devon U.S.& Canada

EnLink Eliminations Total Oil, gas and NGL sales $ 1,339 $ - $ - $ 1,339 Oil, gas and NGL derivatives 294 - - 294 Marketing and midstream revenues   852     936     (156 )   1,632   Total operating revenues   2,485     936     (156 )   3,265   Lease operating expenses 553 - - 553 Marketing and midstream operating expenses 852 743 (156 ) 1,439 General and administrative expenses 209 42 - 251 Production and property taxes 97 11 - 108 Depreciation, depletion and amortization 840 90 - 930 Asset impairments 5,460 - - 5,460 Other operating items   19     -     -     19   Total operating expenses   8,030     886     (156 )   8,760   Operating income (loss) (5,545 ) 50 - (5,495 ) Net financing costs 98 19 - 117 Other nonoperating items   16     (4 )   -     12   Earnings (loss) before income taxes (5,659 ) 35 - (5,624 ) Income tax expense (benefit)   (2,046 )   11     -     (2,035 ) Net earnings (loss) (3,613 ) 24 - (3,589 ) Net earnings attributable to noncontrolling interests   -     10     -     10   Net earnings (loss) attributable to Devon $ (3,613 ) $ 14   $ -   $ (3,599 )               CONSOLIDATED STATEMENTS OF CASH FLOWS (in millions) Quarter Ended March 31, 2015 2014 Cash flows from operating activities: Net earnings (loss) $ (3,589 ) $ 329 Adjustments to reconcile net earnings (loss) to net cash from operating activities: Depreciation, depletion and amortization 930 739 Asset impairments 5,460 - Gains and losses on asset sales - (15 ) Deferred income tax expense (benefit) (2,047 ) 208 Derivatives and other financial instruments (430 ) 307 Cash settlements on derivatives and financial instruments 719 (54 ) Other noncash charges 225 123 Net change in working capital 215 (152 ) Change in long-term other assets 141 (88 ) Change in long-term other liabilities   24     13   Net cash from operating activities   1,648     1,410     Cash flows from investing activities: Capital expenditures (1,717 ) (1,583 ) Acquisitions of property, equipment and businesses (404 ) (5,935 ) Divestitures of property and equipment 2 142 Redemptions of long-term investments - 57 Other   3     37   Net cash from investing activities   (2,116 )   (7,282 )   Cash flows from financing activities: Borrowings of long-term debt, net of issuance costs 957 3,346 Net borrowings of short-term debt 15 257 Repayments of long-term debt (487 ) (1,577 ) Stock option exercises - 11 Sale of subsidiary units 569 - Issuance of subsidiary units 2 - Dividends paid on common stock (99 ) (90 ) Distributions to noncontrolling interests (53 ) (100 ) Other   (12 )   (3 ) Net cash from financing activities   892     1,844   Effect of exchange rate changes on cash   (46 )   (11 ) Net change in cash and cash equivalents 378 (4,039 )   Cash and cash equivalents at beginning of period   1,480     6,066     Cash and cash equivalents at end of period $ 1,858   $ 2,027                 CONSOLIDATED BALANCE SHEETS (in millions) March 31, December 31, Current assets: 2015 2014 Cash and cash equivalents $ 1,858 $ 1,480 Accounts receivable 1,663 1,959 Derivatives, at fair value 1,706 1,993 Income taxes receivable - 522 Other current assets   579     544   Total current assets   5,806     6,498   Property and equipment, at cost: Oil and gas, based on full cost accounting: Subject to amortization 75,952 75,738 Not subject to amortization   2,656     2,752   Total oil and gas 78,608 78,490 Midstream and other   10,109     9,695   Total property and equipment, at cost 88,717 88,185 Less accumulated depreciation, depletion and amortization   (57,262 )   (51,889 ) Property and equipment, net   31,455     36,296   Goodwill 6,328 6,303 Other long-term assets   1,753     1,540   Total assets $ 45,342   $ 50,637     Current liabilities: Accounts payable $ 1,335 $ 1,400 Revenues and royalties payable 1,054 1,193 Short-term debt 1,448 1,432 Deferred income taxes 638 730 Other current liabilities   1,085     1,180   Total current liabilities   5,560     5,935   Long-term debt 10,301 9,830 Asset retirement obligations 1,373 1,339 Other long-term liabilities 922 948 Deferred income taxes 4,167 6,244 Stockholders' equity: Common stock 41 41 Additional paid-in capital 4,542 4,088 Retained earnings 12,933 16,631 Accumulated other comprehensive earnings   481     779   Total stockholders' equity attributable to Devon 17,997 21,539 Noncontrolling interests   5,022     4,802   Total stockholders' equity   23,019     26,341   Total liabilities and stockholders' equity $ 45,342   $ 50,637   Common shares outstanding 411 409                     CAPITAL EXPENDITURES (in millions) Quarter Ended March 31, 2015 U.S. Canada Total Exploration / Appraisal $ 128 $ 53 $ 181 Development   1,008   137   1,145 Exploration and development capital $ 1,136 $ 190 $ 1,326 Capitalized G&A 94 Capitalized interest 13 Acquisitions 92 Devon midstream capital 41 Other capital   27 Total (1) $ 1,593   (1) Excludes $489 million attributable to EnLink.  

NON-GAAP FINANCIAL MEASURES

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

CORE EARNINGS(in millions)

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 diluted share. 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 first-quarter 2015 earnings.

            Quarter Ended March 31, 2015 Before-Tax After-Tax   Net loss attributable to Devon (GAAP) $ (3,599 ) Asset impairments 5,460 3,467 Fair value changes in financial instruments and foreign currency 319   221   Core earnings attributable to Devon (Non-GAAP) $ 89   Diluted share count 413 Core diluted earnings per share attributable to Devon (Non-GAAP) $ 0.22    

NET DEBT(in millions)

Devon defines net debt as debt less cash and cash equivalents and net debt attributable to the consolidation of EnLink Midstream as presented in the following table. Devon believes that netting these sources of cash against debt and adjusting for EnLink net debt provides a clearer picture of the future demands on cash from Devon to repay debt.

              March 31, 2015 2014   Total debt (GAAP) $ 11,749 $ 15,512 Cash and cash equivalents   (1,858 )   (2,027 ) Consolidated net debt (Non-GAAP) 9,891 13,485 Non-recourse EnLink obligations (2,494 ) (1,732 ) EnLink cash and cash equivalents   110     221   Net debt (Non-GAAP) $ 7,507   $ 11,974    

DEVON ENERGY CORPORATIONFORWARD LOOKING GUIDANCE

                        PRODUCTION GUIDANCE Quarter 2 Full Year Low High Low High   Oil and bitumen (MBbls/d) United States 165 170 160 170 Canada 95 100 100 110 Total 260 270 260 280 Natural gas liquids (MBbls/d) United States 130 140 128 134 Gas (MMcf/d) United States 1,600 1,650 1,550 1,600 Canada 20 20 20 20 Total 1,620 1,670 1,570 1,620 Oil equivalent (MBoe/d) United States 562 585 546 571 Canada 98 103 103 113 Total 660 688 649 684                           PRICE REALIZATIONS GUIDANCE Quarter 2 Full Year Low High Low High   Oil and bitumen - % of WTI United States 84 % 94 % 85 % 95 % Canada 52 % 62 % 49 % 59 % NGL - realized price $ 7 $ 12 $ 6 $ 16 Natural gas - % of Henry Hub 78 % 88 % 79 % 89 %                           OTHER GUIDANCE ITEMS Quarter 2 Full Year ($ millions, except Boe) Low High Low High   Marketing & midstream operating profit $ 185 $ 215 $

860

$

920

Lease operating expenses per Boe $ 9.00 $ 9.60 $ 9.00 $ 9.60 General & administrative expenses per Boe $ 3.60 $ 3.90 $ 3.75 $ 4.25 Production and property taxes as % of upstream sales 7.9 % 8.9 % 7.4 % 8.4 % Depreciation, depletion and amortization per Boe $ 13.50 $ 14.50 $ 13.75 $ 14.75 Other operating items $ 15 $ 20 $ 60 $ 80 Net financing costs $ 110 $ 130 $ 460 $ 520 Current income tax rate 4.0 % 9.0 % 4.0 % 9.0 % Deferred income tax rate   26.0 %   31.0 %   26.0 %   31.0 % Total income tax rate   30.0 %   40.0 %   30.0 %   40.0 %   Net earnings attributable to noncontrolling interests $ 5 $ 25 $ 50 $ 100                           CAPITAL EXPENDITURES GUIDANCE Quarter 2 Full Year (in millions) Low High Low High   Exploration and development $ 950 $ 1,050 $ 3,900 $ 4,100 Capitalized G&A and interest 100 120 400 500 Midstream (1) 20 40 110 160 Corporate and other   30   40   100   150 Devon capital expenditures $ 1,100 $ 1,250 $ 4,510 $ 4,910   (1) Excludes capital expenditures related to EnLink.                                             COMMODITY HEDGES Oil Commodity Hedges Price Swaps Price Collars Call Options Sold Period

Volume(Bbls/d)

WeightedAveragePrice ($/Bbl)

Volume(Bbls/d)

WeightedAverage FloorPrice ($/Bbl)

WeightedAverageCeiling Price($/Bbl)

Volume(Bbls/d)

WeightedAverage Price($/Bbl)

Q2-Q4 2015 106,442 $   91.07 31,500 $   89.67 $   97.84 28,000 $   116.43                       Oil Basis Swaps Period Index Volume (Bbls/d)

Weighted Average Differential toWTI ($/Bbl)

Q2-Q4 2015 Western Canadian Select 36,320 $(16.35)                                             Natural Gas Commodity Hedges Price Swaps Price Collars Call Options Sold Period

Volume(MMBtu/d)

WeightedAverage Price($/MMBtu)

Volume(MMBtu/d)

WeightedAverage FloorPrice($/MMBtu)

WeightedAverageCeiling Price($/MMBtu)

Volume(MMBtu/d)

WeightedAverage Price($/MMBtu)

Q2-Q4 2015 250,000 $ 4.32 391,964 $ 3.74 $ 4.04 550,000 $ 5.09  

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 Energy CorporationInvestor ContactsHoward Thill, 405-552-3693Scott Coody, 405-552-4735Shea Snyder, 405-552-4782Media ContactJohn Porretto, 405-228-7506