Document And Entity Information
Document And Entity Information - shares shares in Millions | 6 Months Ended | |
Jun. 30, 2017 | Jul. 19, 2017 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2017 | |
Amendment Flag | false | |
Trading Symbol | DVN | |
Entity Registrant Name | DEVON ENERGY CORP/DE | |
Entity Central Index Key | 1,090,012 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2,017 | |
Entity Filer Category | Large Accelerated Filer | |
Document Fiscal Period Focus | Q2 | |
Entity Common Stock, Shares Outstanding | 525.6 |
Consolidated Comprehensive Stat
Consolidated Comprehensive Statements Of Earnings - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Income Statement [Abstract] | ||||
Oil, gas and NGL sales | $ 1,206 | $ 1,085 | $ 2,515 | $ 1,910 |
Oil, gas and NGL derivatives | 126 | (142) | 358 | (109) |
Marketing and midstream revenues | 1,927 | 1,545 | 3,937 | 2,813 |
Asset dispositions and other | 14 | 10 | ||
Total revenues and other | 3,273 | 2,488 | 6,820 | 4,614 |
Lease operating expenses | 399 | 416 | 785 | 860 |
Marketing and midstream operating expenses | 1,703 | 1,338 | 3,506 | 2,404 |
General and administrative expenses | 164 | 147 | 345 | 341 |
Production and property taxes | 71 | 75 | 156 | 153 |
Depreciation, depletion and amortization | 381 | 484 | 762 | 1,026 |
Asset impairments | 1,497 | 7 | 4,532 | |
Restructuring and transaction costs | 24 | 271 | ||
Other operating items | 13 | 4 | 11 | 24 |
Total operating expenses | 2,731 | 3,985 | 5,572 | 9,611 |
Operating income (loss) | 542 | (1,497) | 1,248 | (4,997) |
Net financing costs | 116 | 163 | 243 | 327 |
Other nonoperating items | (32) | 85 | (51) | 106 |
Earnings (loss) before income taxes | 458 | (1,745) | 1,056 | (5,430) |
Income tax expense (benefit) | 7 | (182) | 26 | (399) |
Net earnings (loss) | 451 | (1,563) | 1,030 | (5,031) |
Net earnings (loss) attributable to noncontrolling interests | 26 | 7 | 40 | (405) |
Net earnings (loss) attributable to Devon | $ 425 | $ (1,570) | $ 990 | $ (4,626) |
Net earnings (loss) per share attributable to Devon: | ||||
Basic | $ 0.81 | $ (3.04) | $ 1.88 | $ (9.33) |
Diluted | $ 0.80 | $ (3.04) | $ 1.87 | $ (9.33) |
Comprehensive earnings (loss): | ||||
Net earnings (loss) | $ 451 | $ (1,563) | $ 1,030 | $ (5,031) |
Other comprehensive earnings, net of tax: | ||||
Foreign currency translation | 2 | 3 | 26 | |
Pension and postretirement plans | 4 | 5 | 9 | 9 |
Other | (2) | (2) | ||
Other comprehensive earnings, net of tax | 4 | 8 | 7 | 35 |
Comprehensive earnings (loss) | 455 | (1,555) | 1,037 | (4,996) |
Comprehensive earnings (loss) attributable to noncontrolling interests | 26 | 7 | 40 | (405) |
Comprehensive earnings (loss) attributable to Devon | $ 429 | $ (1,562) | $ 997 | $ (4,591) |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Cash flows from operating activities: | ||||
Net earnings (loss) | $ 451 | $ (1,563) | $ 1,030 | $ (5,031) |
Adjustments to reconcile net earnings (loss) to net cash from operating activities: | ||||
Depreciation, depletion and amortization | 381 | 484 | 762 | 1,026 |
Asset impairments | 1,497 | 7 | 4,532 | |
Gains on asset sales | (11) | (7) | ||
Deferred income tax benefit | (5) | (179) | (6) | (386) |
Commodity derivatives | (126) | 142 | (358) | 109 |
Cash settlements on commodity derivatives | 11 | (16) | 19 | 3 |
Other derivatives and financial instruments | 16 | 81 | 7 | 308 |
Cash settlements on other derivatives and financial instruments | 2 | (28) | (151) | |
Asset retirement obligation accretion | 14 | 20 | 31 | 39 |
Share-based compensation | 43 | 32 | 89 | 140 |
Other | (49) | 36 | (49) | (158) |
Net change in working capital | 72 | (143) | 87 | 71 |
Change in long-term other assets | 9 | (40) | 10 | 13 |
Change in long-term other liabilities | 2 | 22 | 22 | (5) |
Net cash from operating activities | 810 | 345 | 1,644 | 510 |
Cash flows from investing activities: | ||||
Capital expenditures | (721) | (489) | (1,468) | (1,238) |
Acquisitions of property, equipment and businesses | (13) | (11) | (33) | (1,638) |
Proceeds from sale of investment | 190 | |||
Divestitures of property and equipment | 76 | 191 | 114 | 209 |
Other | (1) | (26) | (4) | (27) |
Net cash from investing activities | (659) | (335) | (1,201) | (2,694) |
Cash flows from financing activities: | ||||
Borrowings of long-term debt, net of issuance costs | 982 | 450 | 1,795 | 846 |
Repayments of long-term debt | (798) | (290) | (1,385) | (549) |
Payment of installment payable | (250) | |||
Net short-term debt repayments | (626) | |||
Issuance of common stock | 1,469 | |||
Issuance of subsidiary units | 17 | 49 | 72 | 776 |
Dividends paid on common stock | (33) | (33) | (65) | (158) |
Contributions from noncontrolling interests | 8 | 3 | 29 | 6 |
Distributions to noncontrolling interests | (82) | (74) | (163) | (147) |
Shares traded for tax withholdings | (3) | (10) | (64) | (28) |
Other | (5) | (2) | (6) | |
Net cash from financing activities | 91 | 90 | (33) | 1,583 |
Effect of exchange rate changes on cash | 8 | (12) | 14 | |
Net change in cash and cash equivalents | 250 | 88 | 410 | (587) |
Cash and cash equivalents at beginning of period | 2,119 | 1,635 | 1,959 | 2,310 |
Cash and cash equivalents at end of period | $ 2,369 | $ 1,723 | $ 2,369 | $ 1,723 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 2,369 | $ 1,959 |
Accounts receivable | 1,248 | 1,356 |
Assets held for sale | 193 | |
Other current assets | 469 | 264 |
Total current assets | 4,086 | 3,772 |
Oil and gas, based on full cost accounting: | ||
Subject to amortization | 77,326 | 75,648 |
Not subject to amortization | 3,048 | 3,437 |
Total oil and gas | 80,374 | 79,085 |
Midstream and other | 10,908 | 10,455 |
Total property and equipment, at cost | 91,282 | 89,540 |
Less accumulated depreciation, depletion and amortization | (74,460) | (73,350) |
Property and equipment, net | 16,822 | 16,190 |
Goodwill | 3,964 | 3,964 |
Other long-term assets | 1,942 | 1,987 |
Total assets | 26,814 | 25,913 |
Current liabilities: | ||
Accounts payable | 692 | 642 |
Revenues and royalties payable | 949 | 908 |
Other current liabilities | 891 | 1,066 |
Total current liabilities | 2,532 | 2,616 |
Long-term debt | 10,558 | 10,154 |
Asset retirement obligations | 1,078 | 1,226 |
Other long-term liabilities | 657 | 894 |
Deferred income taxes | 659 | 648 |
Stockholders’ equity: | ||
Common stock, $0.10 par value. Authorized 1.0 billion shares; issued 526 million and 523 million shares in 2017 and 2016, respectively | 53 | 52 |
Additional paid-in capital | 7,211 | 7,237 |
Accumulated deficit | (656) | (1,646) |
Accumulated other comprehensive earnings | 291 | 284 |
Total stockholders’ equity attributable to Devon | 6,899 | 5,927 |
Noncontrolling interests | 4,431 | 4,448 |
Total stockholders’ equity | 11,330 | 10,375 |
Total liabilities and stockholders’ equity | $ 26,814 | $ 25,913 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2017 | Dec. 31, 2016 |
Statement Of Financial Position [Abstract] | ||
Common stock, par value (in dollars per share) | $ 0.10 | $ 0.10 |
Common stock, shares authorized (in shares) | 1,000,000,000 | 1,000,000,000 |
Common stock, shares issued (in shares) | 526,000,000 | 523,000,000 |
Consolidated Statements Of Stoc
Consolidated Statements Of Stockholders' Equity - USD ($) shares in Millions, $ in Millions | Total | Common Stock [Member] | Additional Paid-In Capital [Member] | Retained Earnings (Accumulated Deficit) [Member] | Accumulated Other Comprehensive Earnings [Member] | Treasury Stock [Member] | Noncontrolling Interests [Member] |
Balance at Dec. 31, 2015 | $ 10,989 | $ 42 | $ 4,996 | $ 1,781 | $ 230 | $ 3,940 | |
Balance, shares at Dec. 31, 2015 | 418 | ||||||
Net earnings (loss) | (5,031) | (4,626) | (405) | ||||
Other comprehensive earnings, net of tax | 35 | 35 | |||||
Restricted stock grants, net of cancellations, shares | 3 | ||||||
Common stock repurchased | (21) | $ (21) | |||||
Common stock retired | (21) | 21 | |||||
Common stock dividends | (158) | (33) | (125) | ||||
Common stock issued | 2,127 | $ 10 | 2,117 | ||||
Common stock issued, shares | 103 | ||||||
Share-based compensation | 123 | 123 | |||||
Subsidiary equity transactions | 1,002 | 318 | 684 | ||||
Distributions to noncontrolling interests | (147) | (147) | |||||
Balance at Jun. 30, 2016 | 8,919 | $ 52 | 7,500 | (2,970) | 265 | 4,072 | |
Balance, shares at Jun. 30, 2016 | 524 | ||||||
Balance at Dec. 31, 2016 | 10,375 | $ 52 | 7,237 | (1,646) | 284 | 4,448 | |
Balance, shares at Dec. 31, 2016 | 523 | ||||||
Net earnings (loss) | 1,030 | 990 | 40 | ||||
Other comprehensive earnings, net of tax | 7 | 7 | |||||
Restricted stock grants, net of cancellations, value | 1 | $ 1 | |||||
Restricted stock grants, net of cancellations, shares | 2 | ||||||
Common stock repurchased | (41) | (41) | |||||
Common stock retired | (41) | $ 41 | |||||
Common stock dividends | (65) | (65) | |||||
Share-based compensation | 69 | 69 | |||||
Share-based compensation, shares | 1 | ||||||
Subsidiary equity transactions | 117 | 11 | 106 | ||||
Distributions to noncontrolling interests | (163) | (163) | |||||
Balance at Jun. 30, 2017 | $ 11,330 | $ 53 | $ 7,211 | $ (656) | $ 291 | $ 4,431 | |
Balance, shares at Jun. 30, 2017 | 526 |
Summary Of Significant Accounti
Summary Of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2017 | |
Accounting Policies [Abstract] | |
Summary Of Significant Accounting Policies | 1. The accompanying unaudited interim financial statements and notes of Devon have been prepared pursuant to the rules and regulations of the SEC. Pursuant to such rules and regulations, certain disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been omitted. The accompanying unaudited interim financial statements and notes should be read in conjunction with the financial statements and notes included in Devon’s 2016 Annual Report on Form 10-K. The accompanying unaudited interim financial statements furnished in this report reflect all adjustments that are, in the opinion of management, necessary for a fair statement of Devon’s results of operations and cash flows for the three-month and six-month periods ended June 30, 2017 and 2016 and Devon’s financial position as of June 30, 2017. Recently Adopted Accounting Standards In January 2017, Devon adopted ASU 2016-09, Compensation – Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting As the result of adoption, Devon made certain income tax presentation changes, most notably prospectively presenting excess tax benefits and deficiencies in the consolidated comprehensive statements of earnings and as operating cash flows in the consolidated statements of cash flows. In January 2017, the FASB issued ASU 2017-04, Intangibles - Goodwill And Other (Topic 350) Simplifying the Test for Goodwill Impairment Issued Accounting Standards Not Yet Adopted The FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606) Revenue Recognition Extractive Activities – Oil and Gas – Revenue Recognition increase the usefulness of Revenue from Contracts with Customers – Deferral of the Effective Date to be adopted using either the retrospective transition method, which requires restating previously reported results or the cumulative effect (modified retrospective) transition method, which utilizes a cumulative-effect adjustment to retained earnings in the period of adoption to account for prior period effects rather than restating previously reported results. Devon intends to use the cumulative effect transition method and does not anticipate this ASU will have a material impact on its balance sheet or related consolidated statement of earnings, stockholders’ equity or cash flows. Devon does not expect its annual disclosures will materially change upon adopting this ASU. However, Devon’s quarterly disclosures will materially expand upon adoption of this ASU. Devon is implementing a process to gather and provide the quarterly disclosures required by the ASU. The FASB issued ASU 2016-02, Leases (Topic 842) Leases Recently, several companies, including certain upstream oil and gas companies, met with the FASB to discuss whether contracts for easements and rights-of-way are subject to the scope of ASU 2016-02 or other existing accounting standards. For Devon, these contracts represent a relatively small percentage of the aggregate value of contracts being evaluated but represent approximately 80% of the number of contracts. Therefore, this scoping decision could have a significant impact on the amount of effort required for Devon to adopt this ASU. Regardless, The FASB issued ASU No. 2017-07, Compensation – Retirement Benefits (Topic 715), Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost. require entities to present the service cost component of net periodic benefit cost in the same line item as other employee compensation costs and present the other components of net periodic benefit cost outside of operating income in the income statement. Only the service cost component of net periodic benefit cost is eligible for capitalization. T |
Acquisitions And Divestitures
Acquisitions And Divestitures | 6 Months Ended |
Jun. 30, 2017 | |
Business Combinations [Abstract] | |
Acquisitions and Divestitures | 2. Acquisitions and Divestitures Devon Acquisitions On January 7, 2016, Devon acquired approximately 80,000 net acres (unaudited) and assets in the STACK play for approximately $1.5 billion. Devon funded the acquisition with $849 million of cash, after adjustments, and $659 million of common equity shares. The purchase price allocation was approximately $1.3 billion to unproved properties and approximately $200 million to proved properties. Devon Asset Divestitures In May 2017, Devon announced a program to divest approximately $1 billion of upstream assets. The non-core assets identified for monetization include select portions of the Barnett Shale focused primarily in and around Johnson County and other properties located principally within Devon’s U.S. resource base. Devon expects the divestiture process will take 12 to 18 months to complete. Devon plans to deploy divestiture proceeds toward its U.S. resource plays and to further strengthen its investment-grade financial position. The non-core divestiture plan is also expected to accelerate Devon’s transition to higher-margin production. Subsequent to June 30, 2017, Devon reached an agreement to sell its non-core Eagle Ford assets in Lavaca County for $205 million, subject to certain adjustments. The transaction is expected to close in the second half of 2017. No gain or loss is expected to be recognized under the full cost method of accounting. In June 2016, Devon divested its non-core Mississippian assets for approximately $200 million. Estimated proved reserves associated with these assets were approximately 11 MMBoe, or less than 1% of total U.S. proved reserves. Under full cost accounting rules, sales or dispositions of oil and gas properties are generally accounted for as adjustments to capitalized costs, with no recognition of a gain or loss. No gain or loss was recognized on the sale of the Mississippian assets. EnLink Acquisitions On January 7, 2016, EnLink acquired Anadarko Basin gathering and processing midstream assets, along with dedicated acreage service rights and service contracts, for approximately $1.4 billion. The purchase price allocation was $1.0 billion to intangible assets and approximately $400 million to property and equipment. EnLink funded the acquisition with approximately $215 million of General Partner common units and approximately $800 million of cash, primarily funded with the issuance of EnLink preferred units. The remaining $500 million of the purchase price was to be paid within one year with the option to defer $250 million of the final payment 24 months from the close date. The first installment payment of $250 million was paid in January 2017. T EnLink Asset Divestitures D uring the first quarter of 2017, EnLink divested its ownership interest in Howard Energy Partners for approximately $190 million. |
Derivative Financial Instrument
Derivative Financial Instruments | 6 Months Ended |
Jun. 30, 2017 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | 3. Derivative Financial Instruments Objectives and Strategies Devon periodically enters into derivative financial instruments with respect to a portion of its oil, gas and NGL production to hedge future prices received. Additionally, Devon and EnLink periodically enter into derivative financial instruments with respect to a portion of their oil, gas and NGL marketing activities. These commodity derivative financial instruments include financial price swaps, basis swaps and costless price collars. Devon periodically enters into interest rate swaps to manage its exposure to interest rate volatility and foreign exchange forward contracts to manage its exposure to fluctuations in the U.S. and Canadian dollar exchange rates. As of June 30, 2017, Devon did not have any open foreign exchange contracts. Devon does not intend to hold or issue derivative financial instruments for speculative trading purposes and has elected not to designate any of its derivative instruments for hedge accounting treatment. Counterparty Credit Risk By using derivative financial instruments, Devon is exposed to credit risk. Credit risk is the failure of the counterparty to perform under the terms of the derivative contract. To mitigate this risk, the hedging instruments are placed with a number of counterparties whom Devon believes are acceptable credit risks. It is Devon’s policy to enter into derivative contracts only with investment-grade rated counterparties deemed by management to be competent and competitive market makers. Additionally, Devon’s derivative contracts generally contain provisions that provide for collateral payments, if Devon’s or its counterparty’s credit rating falls below certain credit rating levels. As of June 30, 2017, Devon held $34 million of cash collateral, which represented the estimated fair value of certain derivative positions in excess of Devon’s credit guidelines and is reported in other current liabilities in the accompanying consolidated balance sheets. As of December 31, 2016, Devon held no collateral from counterparties. Commodity Derivatives As of June 30, 2017, Devon had the following open oil derivative positions. The first table presents Devon’s oil derivatives that settle against the average of the prompt month NYMEX WTI futures price. The second table presents Devon’s oil derivatives that settle against the respective indices noted within the table. Price Swaps Price Collars Period Volume (Bbls/d) Weighted Average Price ($/Bbl) Volume (Bbls/d) Weighted Average Floor Price ($/Bbl) Weighted Average Ceiling Price ($/Bbl) Q3-Q4 2017 76,380 $ 54.22 66,500 $ 45.76 $ 58.01 Q1-Q4 2018 11,592 $ 52.15 17,921 $ 46.77 $ 56.77 Oil Basis Swaps Period Index Volume (Bbls/d) Weighted Average Differential to WTI ($/Bbl) Q3-Q4 2017 Midland Sweet 20,000 $ (0.41 ) Q3-Q4 2017 Western Canadian Select 81,745 $ (14.47 ) Q1-Q4 2018 Western Canadian Select 32,748 $ (15.29 ) As of June 30, 2017, Devon had the following open natural gas derivative positions. The first table presents Devon’s natural gas derivatives that settle against the Inside FERC first of the month Henry Hub index. The second table presents Devon’s natural gas derivatives that settle against the respective indices noted within the table. 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) Q3-Q4 2017 235,000 $ 3.25 435,000 $ 3.03 $ 3.42 Q1-Q4 2018 115,107 $ 3.13 66,433 $ 3.19 $ 3.52 Natural Gas Basis Swaps Period Index Volume (MMBtu/d) Weighted Average Differential to Henry Hub ($/MMBtu) Q3-Q4 2017 Panhandle Eastern Pipe Line 150,000 $ (0.34 ) Q3-Q4 2017 El Paso Natural Gas 80,000 $ (0.13 ) Q3-Q4 2017 Houston Ship Channel 35,000 $ 0.06 Q3-Q4 2017 Transco Zone 4 205,000 $ 0.03 Q1-Q4 2018 Panhandle Eastern Pipe Line 50,000 $ (0.29 ) As of June 30, 2017, Devon had the following open NGL derivative positions. Devon’s NGL positions settle against the average of the prompt month OPIS Mont Belvieu, Texas index. Price Swaps Price Collars Period Product Volume (Bbls/d) Weighted Average Price ($/Bbl) Volume (Bbls/d) Weighted Average Floor Price ($/Bbl) Weighted Average Ceiling Price ($/Bbl) Q3-Q4 2017 Propane 1,000 $ 29.61 1,000 $ 27.83 $ 29.93 Interest Rate Derivatives As of June 30, 2017, Devon had the following open interest rate derivative positions: Notional Rate Received Rate Paid Expiration (Millions) $ 750 Three Month LIBOR 2.98% December 2048 (1) $ 100 1.76% Three Month LIBOR January 2019 (1) Mandatory settlement in December 2018. Financial Statement Presentation The following table presents the net gains and losses by derivative financial instrument type followed by the corresponding individual consolidated comprehensive statements of earnings caption. Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 (Millions) Commodity derivatives: Oil, gas and NGL derivatives $ 126 $ (142 ) $ 358 $ (109 ) Marketing and midstream revenues 4 (6 ) 8 (6 ) Interest rate derivatives: Other nonoperating items (20 ) (71 ) (15 ) (143 ) Foreign currency derivatives: Other nonoperating items — (4 ) — (159 ) Net gains (losses) recognized $ 110 $ (223 ) $ 351 $ (417 ) The following table presents the derivative fair values by derivative financial instrument type followed by the corresponding individual consolidated balance sheet caption. June 30, 2017 December 31, 2016 (Millions) Commodity derivative assets: Other current assets $ 189 $ 9 Other long-term assets 14 1 Interest rate derivative assets: Other current assets 1 1 Other long-term assets 1 — Total derivative assets $ 205 $ 11 Commodity derivative liabilities: Other current liabilities $ 47 $ 187 Other long-term liabilities 1 16 Interest rate derivative liabilities: Other current liabilities 1 — Other long-term liabilities 57 41 Total derivative liabilities $ 106 $ 244 |
Share-Based Compensation
Share-Based Compensation | 6 Months Ended |
Jun. 30, 2017 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Share-Based Compensation | 4. Share-Based Compensation In the second quarter of 2017, Devon’s stockholders approved the 2017 Plan. The 2017 Plan replaces the 2015 Plan. From the effective date of the 2017 Plan, no further awards may be made under the 2015 Plan, and awards previously granted will continue to be governed by the terms of the respective award documents. Subject to the terms of the 2017 Plan, awards may be made for a total of 33.5 million shares of Devon common stock, plus the number of shares available for issuance under the 2015 Plan (including shares subject to outstanding awards under the 2015 Plan that are transferred to the 2017 Plan in accordance with its terms). The 2017 Plan authorizes the Compensation Committee, which consists of independent, non-management members of Devon’s Board of Directors, to grant nonqualified and incentive stock options, restricted stock awards or units, Canadian restricted stock units, performance units and stock appreciation rights to eligible employees. The 2017 Plan also authorizes the grant of nonqualified stock options, restricted stock awards or units and stock appreciation rights to non-employee directors. To calculate the number of shares that may be granted in awards under the 2017 Plan, options and stock appreciation rights represent one share and other awards represent 2.3 shares. The following table presents the effects of share-based compensation included in Devon’s accompanying consolidated comprehensive statements of earnings. Gross G&A expense for the first six months of 2017 and 2016 includes $21 million and $12 million, respectively, of unit-based compensation related to grants made under EnLink’s long-term incentive plans. The vesting for certain share-based awards was accelerated in 2016 in conjunction with the reduction of workforce described in Note 6. For the six months ended June 30, 2016, approximately $67 million of associated expense for these accelerated awards is included in restructuring and transaction costs in the accompanying consolidated comprehensive statements of earnings. Six Months Ended June 30, 2017 2016 (Millions) Gross G&A for share-based compensation $ 100 $ 80 Share-based compensation expense capitalized pursuant to the full cost method of accounting for oil and gas properties $ 20 $ 21 Related income tax benefit $ 2 $ 2 Under its approved long-term incentive plan, Devon granted share-based awards to certain employees in the first six months of 2017. The following table presents a summary of Devon’s unvested restricted stock awards and units, performance-based restricted stock awards and performance share units granted under the plan. Restricted Stock Performance-Based Performance Awards and Units Restricted Stock Awards Share Units Awards and Units Weighted Average Grant-Date Fair Value Awards Weighted Average Grant-Date Fair Value Units Weighted Average Grant-Date Fair Value (Thousands, except fair value data) Unvested at 12/31/16 6,407 $ 34.40 585 $ 37.60 2,604 $ 46.66 Granted 2,683 $ 44.90 223 $ 44.85 1,010 $ 52.58 Vested (2,168 ) $ 39.38 (225 ) $ 41.04 (832 ) $ 78.19 Forfeited (149 ) $ 35.91 — $ — (7 ) $ 37.41 Unvested at 6/30/17 6,773 $ 36.94 583 $ 39.04 2,775 (1 ) $ 41.22 (1) A maximum of 5.5 million common shares could be awarded based upon Devon’s final TSR ranking relative to Devon’s peer group established under applicable award agreements. The following table presents the assumptions related to the performance share units granted in 2017, as indicated in the previous summary table. 2017 Grant-date fair value $ 51.05 — $ 53.12 Risk-free interest rate 1.50% Volatility factor 45.8% Contractual term (years) 2.89 The following table presents a summary of the unrecognized compensation cost and the related weighted average recognition period associated with unvested awards and units as of June 30, 2017. Performance-Based Restricted Stock Restricted Stock Performance Awards and Units Awards Share Units Unrecognized compensation cost (millions) $ 185 $ 8 $ 42 Weighted average period for recognition (years) 2.7 2.0 2.1 EnLink Share-Based Awards In March 2017, the General Partner and EnLink issued restricted incentive units as bonus payments to officers and certain employees. The combined grant fair value was $10 million, and the total cost was recognized in the first quarter of 2017 due to the awards vesting immediately. The following table presents a summary of the unrecognized compensation cost and the related weighted average recognition period associated with the General Partner’s and EnLink’s unvested restricted incentive units and performance units as of June 30, 2017. General Partner EnLink Restricted Performance Restricted Performance Incentive Units Units Incentive Units Units Unrecognized compensation cost (millions) $ 17 $ 7 $ 18 $ 7 Weighted average period for recognition (years) 1.9 2.1 1.9 2.1 |
Asset Impairments
Asset Impairments | 6 Months Ended |
Jun. 30, 2017 | |
Asset Impairment Charges [Abstract] | |
Asset Impairments | 5. Asset Impairments Oil and Gas Impairments Under the full cost method of accounting, capitalized costs of oil and gas properties, net of accumulated DD&A and deferred income taxes, may not exceed the full cost “ceiling” at the end of each quarter. The ceiling is calculated separately for each country and is based on the present value of estimated future net cash flows from proved oil and gas reserves, discounted at 10% per annum, net of related tax effects. Estimated future net cash flows are calculated using end-of-period costs and an unweighted arithmetic average of commodity prices in effect on the first day of each of the previous 12 months. Devon recognized $885 million and $2.5 billion in oil and gas asset impairments for its U.S. operations and $612 million and $1.2 billion for its Canadian operations for the three months ended and six months ended June 30, 2016, respectively. The oil and gas impairments resulted from declines in the U.S. and Canada full cost ceilings. The lower ceiling values resulted primarily from significant decreases in the 12-month average trailing prices for oil, bitumen, gas and NGLs, which significantly reduced proved reserves values and, to a lesser degree, proved reserves. EnLink Goodwill Impairments In the first quarter of 2016, EnLink recognized $873 million in goodwill impairments. See Note 12 for additional details. |
Restructuring And Transaction C
Restructuring And Transaction Costs | 6 Months Ended |
Jun. 30, 2017 | |
Restructuring And Related Activities [Abstract] | |
Restructuring And Transaction Costs | 6. Restructuring and Transaction Costs The following table summarizes restructuring and transaction costs presented in the accompanying consolidated comprehensive statement of earnings. June 30, 2016 Three Months Ended Six Months Ended (Millions) 2016 reduction in workforce: Employee related costs $ 2 $ 236 Lease obligations 17 17 Asset impairments 3 3 Transaction costs 2 15 Restructuring and transaction costs $ 24 $ 271 The following table summarizes Devon’s restructuring liabilities. Other Other Current Long-term Liabilities Liabilities Total (Millions) Balance as of December 31, 2016 $ 48 $ 62 $ 110 Changes due to 2016 workforce reductions (24 ) — (24 ) Changes related to prior years' restructurings 7 (12 ) (5 ) Balance as June 30, 2017 $ 31 $ 50 $ 81 Balance as of December 31, 2015 $ 13 $ 63 $ 76 Changes due to 2016 workforce reductions 107 13 120 Changes related to prior years' restructurings 3 (6 ) (3 ) Balance as of June 30, 2016 $ 123 $ 70 $ 193 Reduction in Workforce In the first six months of 2016, Devon recognized $236 million in employee-related costs associated with a reduction in workforce. Of these employee-related costs, approximately $67 million resulted from accelerated vesting of share-based grants, which are noncash charges. Additionally, approximately $30 million resulted from estimated settlements of defined retirement benefits. As a result of the reduction of workforce, Devon ceased using certain office space that was subject to non-cancellable operating lease arrangements. Devon recognized restructuring costs that represent the present value of its future obligations under the leases and impairment charges for leasehold improvements and furniture associated with the office space it ceased using. Transaction Costs In the first six months of 2016, Devon and EnLink recognized transaction costs primarily associated with the closing of the acquisitions discussed in Note 2. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 7. Income Taxes The following table presents Devon’s total income tax expense (benefit) and a reconciliation of its effective income tax rate to the U.S. statutory income tax rate. Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 (Millions) Current income tax expense (benefit) $ 12 $ (3 ) $ 32 $ (13 ) Deferred income tax benefit (5 ) (179 ) (6 ) (386 ) Total income tax expense (benefit) $ 7 $ (182 ) $ 26 $ (399 ) U.S. statutory income tax rate 35 % 35 % 35 % 35 % Deferred tax asset valuation allowance (27 %) (27 %) (29 %) (24 %) Non-deductible goodwill impairments 0 % 0 % 0 % (6 %) Taxation on Canadian operations 0 % (3 %) 0 % (2 %) State income taxes 0 % 2 % 0 % 1 % Other (6 %) 3 % (4 %) 3 % Effective income tax rate 2 % 10 % 2 % 7 % Devon estimates its annual effective income tax rate in recording its quarterly provision for income taxes in the various jurisdictions in which it operates. Statutory tax rate changes and other significant or unusual items are recognized as discrete items in the quarter in which they occur. Throughout 2016 and through the first six months of 2017, Devon continued to maintain a 100% valuation allowance against its U.S. deferred tax assets resulting from prior year cumulative financial losses largely due to full cost impairments. Devon provided an additional $1.3 billion to the U.S. segment valuation allowance in the first six months of 2016 based on the financial loss recorded during the period. Devon reduced its U.S. segment valuation allowance by $320 million in the first six months of 2017 based on the financial income recorded during the period. Furthermore, a partial allowance continues to be held against certain Canadian segment deferred tax assets. In the first quarter of 2016, EnLink recorded goodwill impairments totaling $873 million. These impairments are not deductible for purposes of calculating income tax and, therefore, have an impact on the effective tax rate. Devon is under audit in the U.S. and various foreign jurisdictions as part of its normal course of business. The timing of resolution of income tax examinations is uncertain as are the amounts and timing of tax payments that are part of any audit settlement process. Devon believes that within the next 12 months it is reasonably possible that certain tax examinations will be resolved by settlement with the taxing authorities. |
Net Earnings (Loss) Per Share A
Net Earnings (Loss) Per Share Attributable to Devon | 6 Months Ended |
Jun. 30, 2017 | |
Earnings Per Share [Abstract] | |
Net Earnings (Loss) Per Share Attributable to Devon | 8. Net Earnings (Loss) Per Share Attributable to Devon The following table reconciles net earnings (loss) attributable to Devon and weighted-average common shares outstanding used in the calculations of basic and diluted net earnings (loss) per share. Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 (Millions, except per share amounts) Net earnings (loss): Net earnings (loss) attributable to Devon $ 425 $ (1,570 ) $ 990 $ (4,626 ) Attributable to participating securities (5 ) (1 ) (11 ) (1 ) Basic and diluted earnings (loss) $ 420 $ (1,571 ) $ 979 $ (4,627 ) Common shares: Common shares outstanding - total 526 524 525 502 Attributable to participating securities (6 ) (6 ) (6 ) (6 ) Common shares outstanding - basic 520 518 519 496 Dilutive effect of potential common shares issuable 3 — 3 — Common shares outstanding - diluted 523 518 522 496 Net earnings (loss) per share attributable to Devon: Basic $ 0.81 $ (3.04 ) $ 1.88 $ (9.33 ) Diluted $ 0.80 $ (3.04 ) $ 1.87 $ (9.33 ) Antidilutive options (1) 2 3 2 3 (1) Amounts represent options to purchase shares of Devon’s common stock that are excluded from the diluted net earnings (loss) per share calculations because the options are antidilutive. |
Other Comprehensive Earnings
Other Comprehensive Earnings | 6 Months Ended |
Jun. 30, 2017 | |
Other Comprehensive Income Loss Net Of Tax Period Increase Decrease [Abstract] | |
Other Comprehensive Earnings | 9. Other Comprehensive Earnings Components of other comprehensive earnings consist of the following: Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 (Millions) Foreign currency translation: Beginning accumulated foreign currency translation $ 454 $ 447 $ 456 $ 424 Change in cumulative translation adjustment 13 2 14 53 Income tax benefit (expense) (11 ) 1 (14 ) (27 ) Ending accumulated foreign currency translation 456 450 456 450 Pension and postretirement benefit plans: Beginning accumulated pension and postretirement benefits (167 ) (190 ) (172 ) (194 ) Recognition of net actuarial loss and prior service cost in earnings (1) 4 8 9 13 Income tax expense — (3 ) — (4 ) Ending accumulated pension and postretirement benefits (163 ) (185 ) (163 ) (185 ) Other (2 ) — (2 ) — Accumulated other comprehensive earnings, net of tax $ 291 $ 265 $ 291 $ 265 (1) These accumulated other comprehensive earnings components are included in the computation of net periodic benefit cost, which is a component of G&A on the accompanying consolidated comprehensive statements of earnings. See Note 16 for additional details. |
Supplemental Information To Sta
Supplemental Information To Statements Of Cash Flows | 6 Months Ended |
Jun. 30, 2017 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Information To Statements Of Cash Flows | 10. Supplemental Information to Statements of Cash Flows Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 (Millions) Net change in working capital accounts, net of assets and liabilities assumed: Accounts receivable $ 82 $ (140 ) $ 130 $ 6 Income taxes receivable 7 (14 ) 8 101 Other current assets (33 ) (107 ) (55 ) 144 Accounts payable 46 (30 ) 50 (151 ) Revenues and royalties payable (44 ) 95 29 (6 ) Other current liabilities 14 53 (75 ) (23 ) Net change in working capital $ 72 $ (143 ) $ 87 $ 71 Interest paid (net of capitalized interest) $ 144 $ 174 $ 236 $ 289 Income taxes paid (received) $ (4 ) $ 5 $ (1 ) $ (123 ) Devon’s acquisition of certain STACK assets during the first three months of 2016 included the noncash issuance of Devon common stock. See Note 2 for additional details. EnLink’s acquisition of Anadarko Basin gathering and processing midstream assets during the first three months of 2016 included noncash issuance of General Partner common units. See Note 2 for additional details. |
Accounts Receivable
Accounts Receivable | 6 Months Ended |
Jun. 30, 2017 | |
Accounts Receivable Net [Abstract] | |
Accounts Receivable | 11. Accounts Receivable Components of accounts receivable include the following: June 30, 2017 December 31, 2016 (Millions) Oil, gas and NGL sales $ 440 $ 487 Joint interest billings 101 110 Marketing and midstream revenues 665 708 Other 58 69 Gross accounts receivable 1,264 1,374 Allowance for doubtful accounts (16 ) (18 ) Net accounts receivable $ 1,248 $ 1,356 |
Goodwill And Other Intangible A
Goodwill And Other Intangible Assets | 6 Months Ended |
Jun. 30, 2017 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill And Other Intangible Assets | 12. Goodwill and Other Intangible Assets Goodwill Devon performs an annual impairment test of goodwill at October 31, or more frequently if events or changes in circumstances indicate that the carrying value of a reporting unit may not be recoverable. Sustained weakness in the overall energy sector driven by low commodity prices, together with a decline in EnLink’s unit price, caused a noncash goodwill impairment of $873 million in the first quarter of 2016. This consisted of a full impairment charge of $93 million related to EnLink’s Crude and Condensate reporting unit and partial impairments to EnLink’s Texas and General Partner reporting units of $473 million and $307 million, respectively. Other Intangible Assets The following table presents other intangible assets reported in other long-term assets in the accompanying consolidated balance sheets. June 30, 2017 December 31, 2016 (Millions) Customer relationships $ 1,796 $ 1,796 Accumulated amortization (231 ) (172 ) Net intangibles $ 1,565 $ 1,624 The weighted-average amortization period for other intangible assets is 14 years. Amortization expense for intangibles was $30 million for both the three months ended June 30, 2017 and 2016, respectively, and $59 million and $58 million for the six months ended June 30, 2017 and 2016, respectively. The remaining amortization expense is estimated to be $118 million for each of the next five years. |
Other Current Liabilities
Other Current Liabilities | 6 Months Ended |
Jun. 30, 2017 | |
Other Liabilities Disclosure [Abstract] | |
Other Current Liabilities | 13. Other Current Liabilities Components of other current liabilities include the following: June 30, 2017 December 31, 2016 (Millions) Installment payment - see Note 2 $ 237 $ 249 Derivative liabilities 48 187 Accrued interest payable 133 130 Restructuring liabilities 31 48 Other 442 452 Other current liabilities $ 891 $ 1,066 |
Debt And Related Expenses
Debt And Related Expenses | 6 Months Ended |
Jun. 30, 2017 | |
Debt Disclosure [Abstract] | |
Debt and Related Expenses | 14. Debt and Related Expenses A summary of debt is as follows: June 30, 2017 December 31, 2016 (Millions) Devon debt: Debentures and notes $ 6,933 $ 6,933 Net discount on debentures and notes (30 ) (30 ) Debt issuance costs (42 ) (44 ) Total Devon debt 6,861 6,859 EnLink debt: Credit facilities 231 148 Debentures and notes 3,500 3,163 Net premium (discount) on debentures and notes (6 ) 9 Debt issuance costs (28 ) (25 ) Total EnLink debt 3,697 3,295 Total long-term debt $ 10,558 $ 10,154 Credit Lines Devon has a $3.0 billion Senior Credit Facility. As of June 30, 2017, Devon had $58 million in outstanding letters of credit under the Senior Credit Facility. There were no outstanding borrowings under the Senior Credit Facility at June 30, 2017. The Senior Credit Facility contains only one material financial covenant. This covenant requires Devon’s ratio of total funded debt to total capitalization, as defined in the credit agreement, to be no greater than 65%. Under the terms of the credit agreement, total capitalization is adjusted to add back noncash financial write-downs such as full cost ceiling impairments or goodwill impairments. As of June 30, 2017, Devon was in compliance with this covenant with a debt-to-capitalization ratio of 19.3%. EnLink Debt All of EnLink’s and the General Partner’s debt is non-recourse to Devon. EnLink has a $1.5 billion unsecured revolving credit facility. As of June 30, 2017, there were $9 million in outstanding letters of credit and $166 million in outstanding borrowings at an average rate of 2.8% under the $1.5 billion credit facility. The General Partner has a $250 million secured revolving credit facility. As of June 30, 2017, the General Partner had $65 million in outstanding borrowings at an average rate of 3.2%. EnLink and the General Partner were in compliance with all financial covenants in their respective credit facilities as of June 30, 2017. In May 2017, EnLink issued $500 million of 5.45% unsecured senior notes due in 2047. The proceeds were used to repay outstanding borrowings under its revolving credit facility and for general partnership purposes. Additionally, in June 2017, EnLink redeemed its $163 million 7.125% senior unsecured notes due in 2022. EnLink redeemed the notes at 103.6% of the principal amount, plus accrued unpaid interest, for aggregate cash consideration of $174 million, which resulted in a gain on extinguishment of debt of $9 million for both the three and six months ended June 30, 2017. The gain is included in net financing costs in the consolidated comprehensive statement of earnings. |
Asset Retirement Obligations
Asset Retirement Obligations | 6 Months Ended |
Jun. 30, 2017 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Asset Retirement Obligations | 15. Asset Retirement Obligations The following table presents the changes in Devon’s asset retirement obligations. Six Months Ended June 30, 2017 2016 (Millions) Asset retirement obligations as of beginning of period $ 1,272 $ 1,414 Liabilities incurred and assumed through acquisitions 15 15 Liabilities settled and divested (26 ) (51 ) Revision of estimated obligation (184 ) 70 Accretion expense on discounted obligation 31 39 Foreign currency translation adjustment 14 30 Asset retirement obligations as of end of period 1,122 1,517 Less current portion 44 44 Asset retirement obligations, long-term $ 1,078 $ 1,473 During the first quarter of 2017, Devon reduced its estimated asset retirement obligations by $184 million primarily due to changes in the assumed inflation rate and retirement dates for its oil and gas assets. |
Retirement Plans
Retirement Plans | 6 Months Ended |
Jun. 30, 2017 | |
Compensation And Retirement Disclosure [Abstract] | |
Retirement Plans | 16. Retirement Plans The following table presents the components of net periodic benefit cost for Devon’s pension and postretirement benefit plans. Pension Benefits Postretirement Benefits Three Months Ended Six Months Ended Three Months Ended Six Months Ended June 30, June 30, June 30, June 30, 2017 2016 2017 2016 2017 2016 2017 2016 (Millions) Service cost $ 4 $ 3 $ 8 $ 9 $ — $ — $ — $ — Interest cost 11 11 21 23 — — — — Expected return on plan assets (14 ) (13 ) (27 ) (26 ) — — — — Amortization of prior service cost (1) — 1 1 1 (1 ) — (1 ) (1 ) Net actuarial loss (1) 5 7 9 13 — — — — Net periodic benefit cost (2) $ 6 $ 9 $ 12 $ 20 $ (1 ) $ — $ (1 ) $ (1 ) (1) These net periodic benefit costs were reclassified out of other comprehensive earnings in the current period. (2) |
Stockholders' Equity
Stockholders' Equity | 6 Months Ended |
Jun. 30, 2017 | |
Stockholders Equity Note [Abstract] | |
Stockholders' Equity | 17. Stockholders’ Equity Common Stock Issued In January 2016, Devon issued approximately 23 million shares of common stock in conjunction with the STACK asset acquisition discussed in Note 2. In February 2016, Devon issued 79 million shares of common stock to the public, inclusive of 10 million shares sold as part of the underwriters’ option. Net proceeds from the offering were $1.5 billion. Dividends The table below summarizes the dividends Devon paid on its common stock. Amounts Rate (Millions) (Per Share) Quarter Ended 2017: First quarter 2017 $ 32 $ 0.06 Second quarter 2017 33 $ 0.06 Total year-to-date $ 65 Quarter Ended 2016: First quarter 2016 $ 125 $ 0.24 Second quarter 2016 33 $ 0.06 Total year-to-date $ 158 In response to the depressed commodity price environment, Devon reduced its quarterly dividend to $0.06 per share in the second quarter of 2016. |
Noncontrolling Interests
Noncontrolling Interests | 6 Months Ended |
Jun. 30, 2017 | |
Noncontrolling Interest [Abstract] | |
Noncontrolling interests | 18. Noncontrolling Interests Subsidiary Equity Transactions EnLink has the ability to sell common units through an “at the market” equity offering program. During the first six months of 2017, EnLink issued and sold 4 million common units though its “at the market” program and generated $72 million in net proceeds. During the first quarter of 2016, EnLink issued preferred units in conjunction with its acquisition of Anadarko Basin gathering and processing midstream assets as discussed in Note 2. As of June 30, 2017, Devon’s ownership interest in EnLink was 23%, excluding the interest held by the General Partner. Devon’s ownership interest in the General Partner as of June 30, 2017 was 64%. The net gains and losses and related income taxes resulting from these transactions have been recorded as an adjustment to equity, with the change in ownership reflected as an adjustment to noncontrolling interests. Distributions to Noncontrolling Interests EnLink and the General Partner distributed $163 million and $147 million to non-Devon unitholders during the first six months of 2017 and 2016, respectively. |
Commitments And Contingencies
Commitments And Contingencies | 6 Months Ended |
Jun. 30, 2017 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments And Contingencies | 19. Commitments and Contingencies Devon is party to various legal actions arising in the normal course of business. Matters that are probable of unfavorable outcome to Devon and which can be reasonably estimated are accrued. Such accruals are based on information known about the matters, Devon’s estimates of the outcomes of such matters and its experience in contesting, litigating and settling similar matters. None of the actions are believed by management to involve future amounts that would be material to Devon’s financial position or results of operations after consideration of recorded accruals. Actual amounts could differ materially from management’s estimates. Royalty Matters Numerous oil and natural gas producers and related parties, including Devon, have been named in various lawsuits alleging royalty underpayments. The suits allege that the producers and related parties used below-market prices, made improper deductions, used improper measurement techniques and entered into gas purchase and processing arrangements with affiliates that resulted in underpayment of royalties in connection with oil, natural gas and NGLs produced and sold. Devon is also involved in governmental agency proceedings and is subject to related contracts and regulatory controls in the ordinary course of business, some that may lead to additional royalty claims. Devon does not currently believe that it is subject to material exposure with respect to such royalty matters. Environmental Matters Devon is subject to certain environmental, health and safety laws and regulations, including with respect to environmental remediation activities associated with past operations, such as the Comprehensive Environmental Response, Compensation, and Liability Act and similar state statutes. In response to liabilities associated with these activities, loss accruals primarily consist of estimated uninsured remediation costs. Devon’s monetary exposure for environmental matters is not expected to be material. Other Matters Devon is involved in other various legal proceedings incidental to its business. However, to Devon’s knowledge, there were no other material pending legal proceedings to which Devon is a party or to which any of its property is subject. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 20. Fair Value Measurements The following table provides carrying value and fair value measurement information for certain of Devon’s financial assets and liabilities. None of the items below are measured using Level 3 inputs. The carrying values of cash, accounts receivable, other current receivables, accounts payable, other current payables and accrued expenses included in the accompanying consolidated balance sheets approximated fair value at June 30, 2017 and December 31, 2016. Therefore, such financial assets and liabilities are not presented in the following table. Additionally, the fair values of oil and gas assets, goodwill and other intangible assets and related impairments are measured as of the impairment date using Level 3 inputs. More information on these items is provided in Note 5 and Note 12, respectively. Fair Value Measurements Using: Carrying Total Fair Level 1 Level 2 Amount Value Inputs Inputs (Millions) June 30, 2017 assets (liabilities): Cash equivalents $ 1,868 $ 1,868 $ 1,653 $ 215 Commodity derivatives $ 203 $ 203 $ — $ 203 Commodity derivatives $ (48 ) $ (48 ) $ — $ (48 ) Interest rate derivatives $ 2 $ 2 $ — $ 2 Interest rate derivatives $ (58 ) $ (58 ) $ — $ (58 ) Debt $ (10,558 ) $ (11,446 ) $ — $ (11,446 ) Installment payment $ (237 ) $ (238 ) $ — $ (238 ) Capital lease obligations $ (5 ) $ (4 ) $ — $ (4 ) December 31, 2016 assets (liabilities): Cash equivalents $ 1,542 $ 1,542 $ 1,298 $ 244 Commodity derivatives $ 10 $ 10 $ — $ 10 Commodity derivatives $ (203 ) $ (203 ) $ — $ (203 ) Interest rate derivatives $ 1 $ 1 $ — $ 1 Interest rate derivatives $ (41 ) $ (41 ) $ — $ (41 ) Debt $ (10,154 ) $ (10,760 ) $ — $ (10,760 ) Installment payment $ (473 ) $ (477 ) $ — $ (477 ) Capital lease obligations $ (7 ) $ (6 ) $ — $ (6 ) The following methods and assumptions were used to estimate the fair values in the table above. Level 1 Fair Value Measurements Cash equivalents – Amounts consist primarily of money market investments. The fair value approximates the carrying value. Level 2 Fair Value Measurements Cash equivalents – Amounts consist primarily of commercial paper and Canadian agency and provincial securities investments. The fair value approximates the carrying value. Commodity and interest rate derivatives – The fair values of commodity and interest rate derivatives are estimated using internal discounted cash flow calculations based upon forward curves and data obtained from independent third parties for contracts with similar terms or data obtained from counterparties to the agreements. Debt – Devon’s debt instruments do not actively trade in an established market. The fair values of its debt are estimated based on rates available for debt with similar terms and maturity. The fair values of commercial paper and credit facility balances are the carrying values. Installment payment – The fair value of the EnLink installment payment was based on Level 2 inputs from third-party market quotations. Capital lease obligations – The fair value was calculated using inputs from third-party banks. |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2017 | |
Segment Reporting [Abstract] | |
Segment Information | 21. Segment Information Devon manages its operations through distinct operating segments, which are defined primarily by geographic areas. For financial reporting purposes, Devon aggregates its U.S. operating segments into one reporting segment due to the similar nature of the businesses. However, Devon’s Canadian E&P operating segment is reported as a separate reporting segment primarily due to the significant differences between the U.S. and Canadian regulatory environments. Devon’s U.S. and Canadian segments are both primarily engaged in oil and gas E&P activities. Devon considers EnLink, combined with the General Partner, to be an operating segment that is distinct from the U.S. and Canadian operating segments. EnLink’s operations consist of midstream assets and operations located across the U.S. Additionally, EnLink has a management team that is primarily responsible for capital and resource allocation decisions. Therefore, EnLink is presented as a separate reporting segment. U.S. Canada EnLink Eliminations Total (Millions) Three Months Ended June 30, 2017: Revenues from external customers $ 1,891 $ 274 $ 1,094 $ — $ 3,259 Intersegment revenues $ — $ — $ 170 $ (170 ) $ — Depreciation, depletion and amortization $ 180 $ 64 $ 137 $ — $ 381 Interest expense $ 81 $ 11 $ 39 $ (12 ) $ 119 Asset impairments $ — $ — $ — $ — $ — Earnings before income taxes $ 409 $ 12 $ 37 $ — $ 458 Income tax expense $ 2 $ 1 $ 4 $ — $ 7 Net earnings $ 407 $ 11 $ 33 $ — $ 451 Net earnings attributable to noncontrolling interests $ — $ — $ 26 $ — $ 26 Net earnings attributable to Devon $ 407 $ 11 $ 7 $ — $ 425 Capital expenditures, including acquisitions $ 463 $ 76 $ 218 $ — $ 757 Three Months Ended June 30, 2016: Revenues from external customers $ 1,365 $ 266 $ 857 $ — $ 2,488 Intersegment revenues $ — $ — $ 176 $ (176 ) $ — Depreciation, depletion and amortization $ 256 $ 103 $ 125 $ — $ 484 Interest expense $ 108 $ 33 $ 47 $ (23 ) $ 165 Asset impairments $ 885 $ 612 $ — $ — $ 1,497 Restructuring and transaction costs $ 19 $ 4 $ 1 $ — $ 24 Loss before income taxes $ (1,097 ) $ (647 ) $ (1 ) $ — $ (1,745 ) Income tax benefit $ (6 ) $ (174 ) $ (2 ) $ — $ (182 ) Net earnings (loss) $ (1,091 ) $ (473 ) $ 1 $ — $ (1,563 ) Net earnings attributable to noncontrolling interests $ 1 $ — $ 6 $ — $ 7 Net loss attributable to Devon $ (1,092 ) $ (473 ) $ (5 ) $ — $ (1,570 ) Capital expenditures, including acquisitions $ 284 $ 29 $ 139 $ — $ 452 Six Months Ended June 30, 2017: Revenues from external customers $ 3,972 $ 593 $ 2,245 $ — $ 6,810 Intersegment revenues $ — $ — $ 341 $ (341 ) $ — Depreciation, depletion and amortization $ 361 $ 136 $ 265 $ — $ 762 Interest expense $ 161 $ 31 $ 84 $ (27 ) $ 249 Asset impairments $ — $ — $ 7 $ — $ 7 Earnings before income taxes $ 966 $ 41 $ 49 $ — $ 1,056 Income tax expense $ 5 $ 14 $ 7 $ — $ 26 Net earnings $ 961 $ 27 $ 42 $ — $ 1,030 Net earnings attributable to noncontrolling interests $ — $ — $ 40 $ — $ 40 Net earnings attributable to Devon $ 961 $ 27 $ 2 $ — $ 990 Property and equipment, net $ 7,659 $ 2,651 $ 6,512 $ — $ 16,822 Total assets $ 13,096 $ 3,505 $ 10,265 $ (52 ) $ 26,814 Capital expenditures, including acquisitions $ 900 $ 172 $ 466 $ — $ 1,538 Six Months Ended June 30, 2016: Revenues from external customers $ 2,667 $ 383 $ 1,564 $ — $ 4,614 Intersegment revenues $ — $ — $ 359 $ (359 ) $ — Depreciation, depletion and amortization $ 567 $ 212 $ 247 $ — $ 1,026 Interest expense $ 215 $ 67 $ 91 $ (43 ) $ 330 Asset impairments $ 2,493 $ 1,166 $ 873 $ — $ 4,532 Restructuring and transaction costs $ 255 $ 10 $ 6 $ — $ 271 Loss before income taxes $ (3,162 ) $ (1,396 ) $ (872 ) $ — $ (5,430 ) Income tax benefit $ (11 ) $ (382 ) $ (6 ) $ — $ (399 ) Net loss $ (3,151 ) $ (1,014 ) $ (866 ) $ — $ (5,031 ) Net earnings (loss) attributable to noncontrolling interests $ 1 $ — $ (406 ) $ — $ (405 ) Net loss attributable to Devon $ (3,152 ) $ (1,014 ) $ (460 ) $ — $ (4,626 ) Property and equipment, net $ 7,823 $ 2,832 $ 6,160 $ — $ 16,815 Total assets $ 12,856 $ 4,283 $ 10,162 $ (57 ) $ 27,244 Capital expenditures, including acquisitions $ 2,177 $ 110 $ 684 $ — $ 2,971 |
Summary Of Significant Accoun28
Summary Of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2017 | |
Accounting Policies [Abstract] | |
Recent Accounting Standards | Recently Adopted Accounting Standards In January 2017, Devon adopted ASU 2016-09, Compensation – Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting As the result of adoption, Devon made certain income tax presentation changes, most notably prospectively presenting excess tax benefits and deficiencies in the consolidated comprehensive statements of earnings and as operating cash flows in the consolidated statements of cash flows. In January 2017, the FASB issued ASU 2017-04, Intangibles - Goodwill And Other (Topic 350) Simplifying the Test for Goodwill Impairment Issued Accounting Standards Not Yet Adopted The FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606) Revenue Recognition Extractive Activities – Oil and Gas – Revenue Recognition increase the usefulness of Revenue from Contracts with Customers – Deferral of the Effective Date to be adopted using either the retrospective transition method, which requires restating previously reported results or the cumulative effect (modified retrospective) transition method, which utilizes a cumulative-effect adjustment to retained earnings in the period of adoption to account for prior period effects rather than restating previously reported results. Devon intends to use the cumulative effect transition method and does not anticipate this ASU will have a material impact on its balance sheet or related consolidated statement of earnings, stockholders’ equity or cash flows. Devon does not expect its annual disclosures will materially change upon adopting this ASU. However, Devon’s quarterly disclosures will materially expand upon adoption of this ASU. Devon is implementing a process to gather and provide the quarterly disclosures required by the ASU. The FASB issued ASU 2016-02, Leases (Topic 842) Leases Recently, several companies, including certain upstream oil and gas companies, met with the FASB to discuss whether contracts for easements and rights-of-way are subject to the scope of ASU 2016-02 or other existing accounting standards. For Devon, these contracts represent a relatively small percentage of the aggregate value of contracts being evaluated but represent approximately 80% of the number of contracts. Therefore, this scoping decision could have a significant impact on the amount of effort required for Devon to adopt this ASU. Regardless, The FASB issued ASU No. 2017-07, Compensation – Retirement Benefits (Topic 715), Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost. require entities to present the service cost component of net periodic benefit cost in the same line item as other employee compensation costs and present the other components of net periodic benefit cost outside of operating income in the income statement. Only the service cost component of net periodic benefit cost is eligible for capitalization. T |
Commitments And Contingencies | Devon is party to various legal actions arising in the normal course of business. Matters that are probable of unfavorable outcome to Devon and which can be reasonably estimated are accrued. Such accruals are based on information known about the matters, Devon’s estimates of the outcomes of such matters and its experience in contesting, litigating and settling similar matters. None of the actions are believed by management to involve future amounts that would be material to Devon’s financial position or results of operations after consideration of recorded accruals. Actual amounts could differ materially from management’s estimates. |
Derivative Financial Instrume29
Derivative Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Derivative [Line Items] | |
Schedule Of Derivative Financial Instruments Included In Consolidated Comprehensive Statements Of Earnings And Consolidated Balance Sheets | The following table presents the net gains and losses by derivative financial instrument type followed by the corresponding individual consolidated comprehensive statements of earnings caption. Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 (Millions) Commodity derivatives: Oil, gas and NGL derivatives $ 126 $ (142 ) $ 358 $ (109 ) Marketing and midstream revenues 4 (6 ) 8 (6 ) Interest rate derivatives: Other nonoperating items (20 ) (71 ) (15 ) (143 ) Foreign currency derivatives: Other nonoperating items — (4 ) — (159 ) Net gains (losses) recognized $ 110 $ (223 ) $ 351 $ (417 ) The following table presents the derivative fair values by derivative financial instrument type followed by the corresponding individual consolidated balance sheet caption. June 30, 2017 December 31, 2016 (Millions) Commodity derivative assets: Other current assets $ 189 $ 9 Other long-term assets 14 1 Interest rate derivative assets: Other current assets 1 1 Other long-term assets 1 — Total derivative assets $ 205 $ 11 Commodity derivative liabilities: Other current liabilities $ 47 $ 187 Other long-term liabilities 1 16 Interest rate derivative liabilities: Other current liabilities 1 — Other long-term liabilities 57 41 Total derivative liabilities $ 106 $ 244 |
Interest Rate Derivatives [Member] | |
Derivative [Line Items] | |
Schedule Of Open Derivative Positions | Notional Rate Received Rate Paid Expiration (Millions) $ 750 Three Month LIBOR 2.98% December 2048 (1) $ 100 1.76% Three Month LIBOR January 2019 (1) Mandatory settlement in December 2018. |
Open Oil Derivative Positions [Member] | |
Derivative [Line Items] | |
Schedule Of Open Derivative Positions | 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) Q3-Q4 2017 76,380 $ 54.22 66,500 $ 45.76 $ 58.01 Q1-Q4 2018 11,592 $ 52.15 17,921 $ 46.77 $ 56.77 Oil Basis Swaps Period Index Volume (Bbls/d) Weighted Average Differential to WTI ($/Bbl) Q3-Q4 2017 Midland Sweet 20,000 $ (0.41 ) Q3-Q4 2017 Western Canadian Select 81,745 $ (14.47 ) Q1-Q4 2018 Western Canadian Select 32,748 $ (15.29 ) |
Open Natural Gas Derivative Positions [Member] | |
Derivative [Line Items] | |
Schedule Of Open Derivative Positions | 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) Q3-Q4 2017 235,000 $ 3.25 435,000 $ 3.03 $ 3.42 Q1-Q4 2018 115,107 $ 3.13 66,433 $ 3.19 $ 3.52 Natural Gas Basis Swaps Period Index Volume (MMBtu/d) Weighted Average Differential to Henry Hub ($/MMBtu) Q3-Q4 2017 Panhandle Eastern Pipe Line 150,000 $ (0.34 ) Q3-Q4 2017 El Paso Natural Gas 80,000 $ (0.13 ) Q3-Q4 2017 Houston Ship Channel 35,000 $ 0.06 Q3-Q4 2017 Transco Zone 4 205,000 $ 0.03 Q1-Q4 2018 Panhandle Eastern Pipe Line 50,000 $ (0.29 ) |
Open NGL Derivative Positions [Member] | |
Derivative [Line Items] | |
Schedule Of Open Derivative Positions | Price Swaps Price Collars Period Product Volume (Bbls/d) Weighted Average Price ($/Bbl) Volume (Bbls/d) Weighted Average Floor Price ($/Bbl) Weighted Average Ceiling Price ($/Bbl) Q3-Q4 2017 Propane 1,000 $ 29.61 1,000 $ 27.83 $ 29.93 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Schedule Of The Effects Of Share-Based Compensation Included In The Consolidated Comprehensive Statements Of Earnings | Six Months Ended June 30, 2017 2016 (Millions) Gross G&A for share-based compensation $ 100 $ 80 Share-based compensation expense capitalized pursuant to the full cost method of accounting for oil and gas properties $ 20 $ 21 Related income tax benefit $ 2 $ 2 |
Summary Of Unvested Restricted Stock Awards and Units, Performance-Based Restricted Stock Awards And Performance Share Units | Restricted Stock Performance-Based Performance Awards and Units Restricted Stock Awards Share Units Awards and Units Weighted Average Grant-Date Fair Value Awards Weighted Average Grant-Date Fair Value Units Weighted Average Grant-Date Fair Value (Thousands, except fair value data) Unvested at 12/31/16 6,407 $ 34.40 585 $ 37.60 2,604 $ 46.66 Granted 2,683 $ 44.90 223 $ 44.85 1,010 $ 52.58 Vested (2,168 ) $ 39.38 (225 ) $ 41.04 (832 ) $ 78.19 Forfeited (149 ) $ 35.91 — $ — (7 ) $ 37.41 Unvested at 6/30/17 6,773 $ 36.94 583 $ 39.04 2,775 (1 ) $ 41.22 (1) A maximum of 5.5 million common shares could be awarded based upon Devon’s final TSR ranking relative to Devon’s peer group established under applicable award agreements. |
Summary Of Performance Share Units Grant-Date Fair Values And Their Related Assumptions | 2017 Grant-date fair value $ 51.05 — $ 53.12 Risk-free interest rate 1.50% Volatility factor 45.8% Contractual term (years) 2.89 |
Summary of Unrecognized Compensation Cost And Weighted Average Period For Recognition | Performance-Based Restricted Stock Restricted Stock Performance Awards and Units Awards Share Units Unrecognized compensation cost (millions) $ 185 $ 8 $ 42 Weighted average period for recognition (years) 2.7 2.0 2.1 |
General Partner And EnLink [Member] | |
Summary of Unrecognized Compensation Cost And Weighted Average Period For Recognition | General Partner EnLink Restricted Performance Restricted Performance Incentive Units Units Incentive Units Units Unrecognized compensation cost (millions) $ 17 $ 7 $ 18 $ 7 Weighted average period for recognition (years) 1.9 2.1 1.9 2.1 |
Restructuring And Transaction31
Restructuring And Transaction Costs (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Restructuring And Related Activities [Abstract] | |
Schedule Of The Components Of Restructuring And Transaction Costs Included In The Consolidated Comprehensive Statements Of Earnings | June 30, 2016 Three Months Ended Six Months Ended (Millions) 2016 reduction in workforce: Employee related costs $ 2 $ 236 Lease obligations 17 17 Asset impairments 3 3 Transaction costs 2 15 Restructuring and transaction costs $ 24 $ 271 |
Schedule Of The Activity And Balances Associated With Restructuring Liabilities | Other Other Current Long-term Liabilities Liabilities Total (Millions) Balance as of December 31, 2016 $ 48 $ 62 $ 110 Changes due to 2016 workforce reductions (24 ) — (24 ) Changes related to prior years' restructurings 7 (12 ) (5 ) Balance as June 30, 2017 $ 31 $ 50 $ 81 Balance as of December 31, 2015 $ 13 $ 63 $ 76 Changes due to 2016 workforce reductions 107 13 120 Changes related to prior years' restructurings 3 (6 ) (3 ) Balance as of June 30, 2016 $ 123 $ 70 $ 193 |
Income Taxes (Tables)
Income Taxes (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
Schedule Of Effective Income Tax Rate Reconciliation | Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 (Millions) Current income tax expense (benefit) $ 12 $ (3 ) $ 32 $ (13 ) Deferred income tax benefit (5 ) (179 ) (6 ) (386 ) Total income tax expense (benefit) $ 7 $ (182 ) $ 26 $ (399 ) U.S. statutory income tax rate 35 % 35 % 35 % 35 % Deferred tax asset valuation allowance (27 %) (27 %) (29 %) (24 %) Non-deductible goodwill impairments 0 % 0 % 0 % (6 %) Taxation on Canadian operations 0 % (3 %) 0 % (2 %) State income taxes 0 % 2 % 0 % 1 % Other (6 %) 3 % (4 %) 3 % Effective income tax rate 2 % 10 % 2 % 7 % |
Net Earnings (Loss) Per Share33
Net Earnings (Loss) Per Share Attributable to Devon (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Earnings Per Share [Abstract] | |
Net Earnings (Loss) Per Share Computations | Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 (Millions, except per share amounts) Net earnings (loss): Net earnings (loss) attributable to Devon $ 425 $ (1,570 ) $ 990 $ (4,626 ) Attributable to participating securities (5 ) (1 ) (11 ) (1 ) Basic and diluted earnings (loss) $ 420 $ (1,571 ) $ 979 $ (4,627 ) Common shares: Common shares outstanding - total 526 524 525 502 Attributable to participating securities (6 ) (6 ) (6 ) (6 ) Common shares outstanding - basic 520 518 519 496 Dilutive effect of potential common shares issuable 3 — 3 — Common shares outstanding - diluted 523 518 522 496 Net earnings (loss) per share attributable to Devon: Basic $ 0.81 $ (3.04 ) $ 1.88 $ (9.33 ) Diluted $ 0.80 $ (3.04 ) $ 1.87 $ (9.33 ) Antidilutive options (1) 2 3 2 3 (1) Amounts represent options to purchase shares of Devon’s common stock that are excluded from the diluted net earnings (loss) per share calculations because the options are antidilutive. |
Other Comprehensive Earnings (T
Other Comprehensive Earnings (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Other Comprehensive Income Loss Net Of Tax Period Increase Decrease [Abstract] | |
Components Of Other Comprehensive Earnings | Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 (Millions) Foreign currency translation: Beginning accumulated foreign currency translation $ 454 $ 447 $ 456 $ 424 Change in cumulative translation adjustment 13 2 14 53 Income tax benefit (expense) (11 ) 1 (14 ) (27 ) Ending accumulated foreign currency translation 456 450 456 450 Pension and postretirement benefit plans: Beginning accumulated pension and postretirement benefits (167 ) (190 ) (172 ) (194 ) Recognition of net actuarial loss and prior service cost in earnings (1) 4 8 9 13 Income tax expense — (3 ) — (4 ) Ending accumulated pension and postretirement benefits (163 ) (185 ) (163 ) (185 ) Other (2 ) — (2 ) — Accumulated other comprehensive earnings, net of tax $ 291 $ 265 $ 291 $ 265 (1) These accumulated other comprehensive earnings components are included in the computation of net periodic benefit cost, which is a component of G&A on the accompanying consolidated comprehensive statements of earnings. See Note 16 for additional details. |
Supplemental Information To S35
Supplemental Information To Statements Of Cash Flows (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Supplemental Cash Flow Elements [Abstract] | |
Schedule Of Supplemental Information To Statements Of Cash Flows | Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 (Millions) Net change in working capital accounts, net of assets and liabilities assumed: Accounts receivable $ 82 $ (140 ) $ 130 $ 6 Income taxes receivable 7 (14 ) 8 101 Other current assets (33 ) (107 ) (55 ) 144 Accounts payable 46 (30 ) 50 (151 ) Revenues and royalties payable (44 ) 95 29 (6 ) Other current liabilities 14 53 (75 ) (23 ) Net change in working capital $ 72 $ (143 ) $ 87 $ 71 Interest paid (net of capitalized interest) $ 144 $ 174 $ 236 $ 289 Income taxes paid (received) $ (4 ) $ 5 $ (1 ) $ (123 ) |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Accounts Receivable Net [Abstract] | |
Schedule Of Components Of Accounts Receivable | Components of accounts receivable include the following: June 30, 2017 December 31, 2016 (Millions) Oil, gas and NGL sales $ 440 $ 487 Joint interest billings 101 110 Marketing and midstream revenues 665 708 Other 58 69 Gross accounts receivable 1,264 1,374 Allowance for doubtful accounts (16 ) (18 ) Net accounts receivable $ 1,248 $ 1,356 |
Goodwill And Other Intangible37
Goodwill And Other Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Schedule Of Other Intangible Assets | June 30, 2017 December 31, 2016 (Millions) Customer relationships $ 1,796 $ 1,796 Accumulated amortization (231 ) (172 ) Net intangibles $ 1,565 $ 1,624 |
Other Current Liabilities (Tabl
Other Current Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Other Liabilities Disclosure [Abstract] | |
Schedule Of Other Current Liabilities | June 30, 2017 December 31, 2016 (Millions) Installment payment - see Note 2 $ 237 $ 249 Derivative liabilities 48 187 Accrued interest payable 133 130 Restructuring liabilities 31 48 Other 442 452 Other current liabilities $ 891 $ 1,066 |
Debt And Related Expenses (Tabl
Debt And Related Expenses (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Debt Disclosure [Abstract] | |
Schedule Of Debt Instruments | June 30, 2017 December 31, 2016 (Millions) Devon debt: Debentures and notes $ 6,933 $ 6,933 Net discount on debentures and notes (30 ) (30 ) Debt issuance costs (42 ) (44 ) Total Devon debt 6,861 6,859 EnLink debt: Credit facilities 231 148 Debentures and notes 3,500 3,163 Net premium (discount) on debentures and notes (6 ) 9 Debt issuance costs (28 ) (25 ) Total EnLink debt 3,697 3,295 Total long-term debt $ 10,558 $ 10,154 |
Asset Retirement Obligations (T
Asset Retirement Obligations (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Summary Of Changes In Asset Retirement Obligations | Six Months Ended June 30, 2017 2016 (Millions) Asset retirement obligations as of beginning of period $ 1,272 $ 1,414 Liabilities incurred and assumed through acquisitions 15 15 Liabilities settled and divested (26 ) (51 ) Revision of estimated obligation (184 ) 70 Accretion expense on discounted obligation 31 39 Foreign currency translation adjustment 14 30 Asset retirement obligations as of end of period 1,122 1,517 Less current portion 44 44 Asset retirement obligations, long-term $ 1,078 $ 1,473 |
Retirement Plans (Tables)
Retirement Plans (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Compensation And Retirement Disclosure [Abstract] | |
Schedule Of Net Periodic Benefit Cost For Pension And Postretirement Benefit Plans | Pension Benefits Postretirement Benefits Three Months Ended Six Months Ended Three Months Ended Six Months Ended June 30, June 30, June 30, June 30, 2017 2016 2017 2016 2017 2016 2017 2016 (Millions) Service cost $ 4 $ 3 $ 8 $ 9 $ — $ — $ — $ — Interest cost 11 11 21 23 — — — — Expected return on plan assets (14 ) (13 ) (27 ) (26 ) — — — — Amortization of prior service cost (1) — 1 1 1 (1 ) — (1 ) (1 ) Net actuarial loss (1) 5 7 9 13 — — — — Net periodic benefit cost (2) $ 6 $ 9 $ 12 $ 20 $ (1 ) $ — $ (1 ) $ (1 ) (1) These net periodic benefit costs were reclassified out of other comprehensive earnings in the current period. (2) |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Stockholders Equity Note [Abstract] | |
Summary Of Dividends Paid On Common Stock | Amounts Rate (Millions) (Per Share) Quarter Ended 2017: First quarter 2017 $ 32 $ 0.06 Second quarter 2017 33 $ 0.06 Total year-to-date $ 65 Quarter Ended 2016: First quarter 2016 $ 125 $ 0.24 Second quarter 2016 33 $ 0.06 Total year-to-date $ 158 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Schedule Of Carrying Value And Fair Value Measurement Information For Financial Assets And Liabilities | Fair Value Measurements Using: Carrying Total Fair Level 1 Level 2 Amount Value Inputs Inputs (Millions) June 30, 2017 assets (liabilities): Cash equivalents $ 1,868 $ 1,868 $ 1,653 $ 215 Commodity derivatives $ 203 $ 203 $ — $ 203 Commodity derivatives $ (48 ) $ (48 ) $ — $ (48 ) Interest rate derivatives $ 2 $ 2 $ — $ 2 Interest rate derivatives $ (58 ) $ (58 ) $ — $ (58 ) Debt $ (10,558 ) $ (11,446 ) $ — $ (11,446 ) Installment payment $ (237 ) $ (238 ) $ — $ (238 ) Capital lease obligations $ (5 ) $ (4 ) $ — $ (4 ) December 31, 2016 assets (liabilities): Cash equivalents $ 1,542 $ 1,542 $ 1,298 $ 244 Commodity derivatives $ 10 $ 10 $ — $ 10 Commodity derivatives $ (203 ) $ (203 ) $ — $ (203 ) Interest rate derivatives $ 1 $ 1 $ — $ 1 Interest rate derivatives $ (41 ) $ (41 ) $ — $ (41 ) Debt $ (10,154 ) $ (10,760 ) $ — $ (10,760 ) Installment payment $ (473 ) $ (477 ) $ — $ (477 ) Capital lease obligations $ (7 ) $ (6 ) $ — $ (6 ) |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Segment Reporting [Abstract] | |
Condensed Statements Of Comprehensive Earnings And Balance Sheets Of Reportable Segments | U.S. Canada EnLink Eliminations Total (Millions) Three Months Ended June 30, 2017: Revenues from external customers $ 1,891 $ 274 $ 1,094 $ — $ 3,259 Intersegment revenues $ — $ — $ 170 $ (170 ) $ — Depreciation, depletion and amortization $ 180 $ 64 $ 137 $ — $ 381 Interest expense $ 81 $ 11 $ 39 $ (12 ) $ 119 Asset impairments $ — $ — $ — $ — $ — Earnings before income taxes $ 409 $ 12 $ 37 $ — $ 458 Income tax expense $ 2 $ 1 $ 4 $ — $ 7 Net earnings $ 407 $ 11 $ 33 $ — $ 451 Net earnings attributable to noncontrolling interests $ — $ — $ 26 $ — $ 26 Net earnings attributable to Devon $ 407 $ 11 $ 7 $ — $ 425 Capital expenditures, including acquisitions $ 463 $ 76 $ 218 $ — $ 757 Three Months Ended June 30, 2016: Revenues from external customers $ 1,365 $ 266 $ 857 $ — $ 2,488 Intersegment revenues $ — $ — $ 176 $ (176 ) $ — Depreciation, depletion and amortization $ 256 $ 103 $ 125 $ — $ 484 Interest expense $ 108 $ 33 $ 47 $ (23 ) $ 165 Asset impairments $ 885 $ 612 $ — $ — $ 1,497 Restructuring and transaction costs $ 19 $ 4 $ 1 $ — $ 24 Loss before income taxes $ (1,097 ) $ (647 ) $ (1 ) $ — $ (1,745 ) Income tax benefit $ (6 ) $ (174 ) $ (2 ) $ — $ (182 ) Net earnings (loss) $ (1,091 ) $ (473 ) $ 1 $ — $ (1,563 ) Net earnings attributable to noncontrolling interests $ 1 $ — $ 6 $ — $ 7 Net loss attributable to Devon $ (1,092 ) $ (473 ) $ (5 ) $ — $ (1,570 ) Capital expenditures, including acquisitions $ 284 $ 29 $ 139 $ — $ 452 Six Months Ended June 30, 2017: Revenues from external customers $ 3,972 $ 593 $ 2,245 $ — $ 6,810 Intersegment revenues $ — $ — $ 341 $ (341 ) $ — Depreciation, depletion and amortization $ 361 $ 136 $ 265 $ — $ 762 Interest expense $ 161 $ 31 $ 84 $ (27 ) $ 249 Asset impairments $ — $ — $ 7 $ — $ 7 Earnings before income taxes $ 966 $ 41 $ 49 $ — $ 1,056 Income tax expense $ 5 $ 14 $ 7 $ — $ 26 Net earnings $ 961 $ 27 $ 42 $ — $ 1,030 Net earnings attributable to noncontrolling interests $ — $ — $ 40 $ — $ 40 Net earnings attributable to Devon $ 961 $ 27 $ 2 $ — $ 990 Property and equipment, net $ 7,659 $ 2,651 $ 6,512 $ — $ 16,822 Total assets $ 13,096 $ 3,505 $ 10,265 $ (52 ) $ 26,814 Capital expenditures, including acquisitions $ 900 $ 172 $ 466 $ — $ 1,538 Six Months Ended June 30, 2016: Revenues from external customers $ 2,667 $ 383 $ 1,564 $ — $ 4,614 Intersegment revenues $ — $ — $ 359 $ (359 ) $ — Depreciation, depletion and amortization $ 567 $ 212 $ 247 $ — $ 1,026 Interest expense $ 215 $ 67 $ 91 $ (43 ) $ 330 Asset impairments $ 2,493 $ 1,166 $ 873 $ — $ 4,532 Restructuring and transaction costs $ 255 $ 10 $ 6 $ — $ 271 Loss before income taxes $ (3,162 ) $ (1,396 ) $ (872 ) $ — $ (5,430 ) Income tax benefit $ (11 ) $ (382 ) $ (6 ) $ — $ (399 ) Net loss $ (3,151 ) $ (1,014 ) $ (866 ) $ — $ (5,031 ) Net earnings (loss) attributable to noncontrolling interests $ 1 $ — $ (406 ) $ — $ (405 ) Net loss attributable to Devon $ (3,152 ) $ (1,014 ) $ (460 ) $ — $ (4,626 ) Property and equipment, net $ 7,823 $ 2,832 $ 6,160 $ — $ 16,815 Total assets $ 12,856 $ 4,283 $ 10,162 $ (57 ) $ 27,244 Capital expenditures, including acquisitions $ 2,177 $ 110 $ 684 $ — $ 2,971 |
Summary Of Significant Accoun45
Summary Of Significant Accounting Policies (Narrative) (Details) $ in Millions | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2017Contract | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
ASU 2016-02, Leases [Member] | ||||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||||
Percentage of lease contracts being evaluated for scoping requirements of ASU | 80.00% | |||
ASU 2016-02, Leases [Member] | Minimum [Member] | ||||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||||
Number of lease contracts | Contract | 11,500 | |||
ASU 2017-07, Compensation – Retirement Benefits [Member] | ||||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||||
Reclassification of non-service cost components of net periodic benefit costs | $ 14 | $ 16 | ||
ASU 2017-07, Compensation – Retirement Benefits [Member] | Scenario, Forecast [Member] | ||||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||||
Reclassification of non-service cost components of net periodic benefit costs | $ 7 |
Acquisitions And Divestitures (
Acquisitions And Divestitures (Narrative) (Details) $ in Millions | Jan. 07, 2016USD ($)a | May 31, 2017USD ($) | Jan. 31, 2017USD ($) | Jun. 30, 2016USD ($)MMBoe | Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Jun. 30, 2016USD ($) | Dec. 31, 2017USD ($) | Jun. 30, 2017USD ($) | Jun. 30, 2016USD ($) |
Business Acquisition [Line Items] | ||||||||||
Divestitures of upstream assets | $ 76 | $ 191 | $ 114 | $ 209 | ||||||
Gain on asset dispositions | 14 | 10 | ||||||||
Installment payment, paid | 250 | |||||||||
Proceeds from sale of investment | $ 190 | |||||||||
EnLink [Member] | Howard Energy Partners [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Proceeds from sale of investment | $ 190 | |||||||||
Forecasted | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Divestitures of upstream assets | $ 1,000 | |||||||||
Mississippian [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Divestitures of upstream assets | $ 200 | |||||||||
Estimated proved reserves associated with divestitures | MMBoe | 11 | |||||||||
Gain on asset dispositions | $ 0 | |||||||||
Lavaca County Non Core Assets | Forecasted | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Divestitures of upstream assets | $ 205 | |||||||||
Gain on asset dispositions | $ 0 | |||||||||
US [Member] | Mississippian [Member] | Maximum [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Percentage of Estimated proved reserves associated with divestiture assets | 1.00% | |||||||||
STACK [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Close date of acquisition | Jan. 7, 2016 | |||||||||
Number of net acres acquired | a | 80,000 | |||||||||
Aggregate purchase price | $ 1,500 | |||||||||
Cash payment to acquire interest | 849 | |||||||||
Unproved properties | 1,300 | $ 1,300 | ||||||||
Proved properties | 200 | $ 200 | ||||||||
STACK [Member] | Common Stock [Member] | Equity Issued in Business Combination [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Equity units value | 659 | |||||||||
Anadarko Basin [Member] | EnLink [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Close date of acquisition | Jan. 7, 2016 | |||||||||
Aggregate purchase price | 1,400 | |||||||||
Cash payment to acquire interest | 800 | |||||||||
Intangible assets | 1,000 | $ 1,000 | ||||||||
Property, plant and equipment | 400 | 400 | ||||||||
Amount committed to pay | $ 500 | |||||||||
Commitment to pay cash due date | 1 year | |||||||||
Installment payable, current | $ 250 | $ 250 | ||||||||
Installment payment, paid | $ 250 | |||||||||
Anadarko Basin [Member] | Installment Payable, Noncurrent [Member] | EnLink [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Commitment to pay cash due date | 24 months | |||||||||
Installment payable, noncurrent | $ 250 | |||||||||
Anadarko Basin [Member] | Equity Issued in Business Combination [Member] | General Partner [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Equity units value | $ 215 |
Derivative Financial Instrume47
Derivative Financial Instruments (Narrative) (Details) - USD ($) | Jun. 30, 2017 | Dec. 31, 2016 |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | ||
Derivative collateral held | $ 34,000,000 | $ 0 |
Derivative Financial Instrume48
Derivative Financial Instruments (Schedule Of Open Oil Derivative Positions) (Details) | 6 Months Ended |
Jun. 30, 2017$ / bblbbl | |
NYMEX West Texas Intermediate Price Swaps Oil Q3-Q4 2017 [Member] | |
Derivative [Line Items] | |
Volume Per Day (Bbls/d) | bbl | 76,380 |
Weighted Average Price Swap | 54.22 |
NYMEX West Texas Intermediate Price Swaps Oil Q1-Q4 2018 [Member] | |
Derivative [Line Items] | |
Volume Per Day (Bbls/d) | bbl | 11,592 |
Weighted Average Price Swap | 52.15 |
NYMEX West Texas Intermediate Price Collars Oil Q3-Q4 2017 [Member] | |
Derivative [Line Items] | |
Volume Per Day (Bbls/d) | bbl | 66,500 |
Weighted Average Floor Price | 45.76 |
Weighted Average Ceiling Price | 58.01 |
NYMEX West Texas Intermediate Price Collars Oil Q1-Q4 2018 [Member] | |
Derivative [Line Items] | |
Volume Per Day (Bbls/d) | bbl | 17,921 |
Weighted Average Floor Price | 46.77 |
Weighted Average Ceiling Price | 56.77 |
Midland Sweet Basis Swaps Oil Q3-Q4 2017 [Member] | |
Derivative [Line Items] | |
Volume Per Day (Bbls/d) | bbl | 20,000 |
Weighted Average Differential To WTI | (0.41) |
Western Canadian Select Basis Swaps Oil Q3-Q4 2017 [Member] | |
Derivative [Line Items] | |
Volume Per Day (Bbls/d) | bbl | 81,745 |
Weighted Average Differential To WTI | (14.47) |
Western Canadian Select Basis Swaps Oil Q1-Q4 2018 [Member] | |
Derivative [Line Items] | |
Volume Per Day (Bbls/d) | bbl | 32,748 |
Weighted Average Differential To WTI | (15.29) |
Derivative Financial Instrume49
Derivative Financial Instruments (Schedule Of Open Natural Gas Derivative Positions) (Details) | 6 Months Ended |
Jun. 30, 2017MMBTU$ / MMBTU | |
FERC Henry Hub Price Swaps Natural Gas Q3-Q4 2017 [Member] | |
Derivative [Line Items] | |
Volume Per Day (MMBtu/d) | MMBTU | 235,000 |
Weighted Average Price Swap | 3.25 |
FERC Henry Hub Price Swaps Natural Gas Q1-Q4 2018 [Member] | |
Derivative [Line Items] | |
Volume Per Day (MMBtu/d) | MMBTU | 115,107 |
Weighted Average Price Swap | 3.13 |
FERC Henry Hub Price Collars Natural Gas Q3-Q4 2017 [Member] | |
Derivative [Line Items] | |
Volume Per Day (MMBtu/d) | MMBTU | 435,000 |
Weighted Average Floor Price | 3.03 |
Weighted Average Ceiling Price | 3.42 |
FERC Henry Hub Price Collars Natural Gas Q1-Q4 2018 [Member] | |
Derivative [Line Items] | |
Volume Per Day (MMBtu/d) | MMBTU | 66,433 |
Weighted Average Floor Price | 3.19 |
Weighted Average Ceiling Price | 3.52 |
PEPL Basis Swaps Natural Gas Q3-Q4 2017 [Member] | |
Derivative [Line Items] | |
Volume Per Day (MMBtu/d) | MMBTU | 150,000 |
Weighted Average Differential To Henry Hub | (0.34) |
El Paso Natural Gas Basis Swaps Q3-Q4 2017 [Member] | |
Derivative [Line Items] | |
Volume Per Day (MMBtu/d) | MMBTU | 80,000 |
Weighted Average Differential To Henry Hub | (0.13) |
Houston Ship Channel Natural Gas Basis Swaps Q3-Q4 2017 [Member] | |
Derivative [Line Items] | |
Volume Per Day (MMBtu/d) | MMBTU | 35,000 |
Weighted Average Differential To Henry Hub | 0.06 |
Transco Zone 4 Natural Gas Basis Swaps Q3-Q4 2017 [Member] | |
Derivative [Line Items] | |
Volume Per Day (MMBtu/d) | MMBTU | 205,000 |
Weighted Average Differential To Henry Hub | 0.03 |
PEPL Basis Swaps Natural Gas Q1-Q4 2018 [Member] | |
Derivative [Line Items] | |
Volume Per Day (MMBtu/d) | MMBTU | 50,000 |
Weighted Average Differential To Henry Hub | (0.29) |
Derivative Financial Instrume50
Derivative Financial Instruments (Schedule Of Open NGL Derivative Positions) (Details) | 6 Months Ended |
Jun. 30, 2017$ / bblbbl | |
OPIS Mont Belvieu Texas Propane Price Swaps NGL Q3-Q4 2017 [Member] | |
Derivative [Line Items] | |
Volume Per Day (Bbls/d) | bbl | 1,000 |
Weighted Average Price Swap | 29.61 |
OPIS Mont Belvieu Texas Propane Price Collars NGL Q3- Q4 2017 [Member] | |
Derivative [Line Items] | |
Volume Per Day (Bbls/d) | bbl | 1,000 |
Weighted Average Floor Price | 27.83 |
Weighted Average Ceiling Price | 29.93 |
Derivative Financial Instrume51
Derivative Financial Instruments (Schedule Of Open Interest Rate Swap Derivative Positions) (Details) $ in Millions | 6 Months Ended | |
Jun. 30, 2017USD ($) | ||
Interest Rate Contract 2.98% Expiration December 2048 [Member] | ||
Derivative [Line Items] | ||
Notional | $ 750 | |
Rate Received | Three Month LIBOR | |
Rate Paid, percent | 2.98% | |
Expiration | Dec. 31, 2018 | |
Reference period end date | Dec. 31, 2048 | [1] |
Interest Rate Contract 1.76% Expiration January 2019 [Member] | ||
Derivative [Line Items] | ||
Notional | $ 100 | |
Rate Received, percent | 1.76% | |
Rate Paid | Three Month LIBOR | |
Expiration | Jan. 31, 2019 | |
[1] | Mandatory settlement in December 2018. |
Derivative Financial Instrume52
Derivative Financial Instruments (Schedule Of Derivative Financial Instruments Included In The Consolidated Comprehensive Statements Of Earnings) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Derivative [Line Items] | ||||
Net gains (losses) recognized in consolidated comprehensive statements of earnings | $ 110 | $ (223) | $ 351 | $ (417) |
Commodity Derivatives [Member] | Oil, Gas And NGL Derivatives [Member] | ||||
Derivative [Line Items] | ||||
Net gains (losses) recognized in consolidated comprehensive statements of earnings | 126 | (142) | 358 | (109) |
Commodity Derivatives [Member] | Marketing And Midstream Revenues [Member] | ||||
Derivative [Line Items] | ||||
Net gains (losses) recognized in consolidated comprehensive statements of earnings | 4 | (6) | 8 | (6) |
Interest Rate Derivatives [Member] | Other Nonoperating Items [Member] | ||||
Derivative [Line Items] | ||||
Net gains (losses) recognized in consolidated comprehensive statements of earnings | $ (20) | (71) | $ (15) | (143) |
Foreign Currency Derivatives [Member] | Other Nonoperating Items [Member] | ||||
Derivative [Line Items] | ||||
Net gains (losses) recognized in consolidated comprehensive statements of earnings | $ (4) | $ (159) |
Derivative Financial Instrume53
Derivative Financial Instruments (Schedule Of Derivative Financial Instruments Included In The Consolidated Balance Sheets) (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Derivatives Fair Value [Line Items] | ||
Fair value of derivative assets | $ 205 | $ 11 |
Fair value of derivative liabilities | 106 | 244 |
Other Current Liabilities [Member] | ||
Derivatives Fair Value [Line Items] | ||
Fair value of derivative liabilities | 48 | 187 |
Commodity Derivatives [Member] | Other Current Assets [Member] | ||
Derivatives Fair Value [Line Items] | ||
Fair value of derivative assets | 189 | 9 |
Commodity Derivatives [Member] | Other Long-Term Assets [Member] | ||
Derivatives Fair Value [Line Items] | ||
Fair value of derivative assets | 14 | 1 |
Commodity Derivatives [Member] | Other Current Liabilities [Member] | ||
Derivatives Fair Value [Line Items] | ||
Fair value of derivative liabilities | 47 | 187 |
Commodity Derivatives [Member] | Other Long-Term Liabilities [Member] | ||
Derivatives Fair Value [Line Items] | ||
Fair value of derivative liabilities | 1 | 16 |
Interest Rate Derivatives [Member] | Other Current Assets [Member] | ||
Derivatives Fair Value [Line Items] | ||
Fair value of derivative assets | 1 | 1 |
Interest Rate Derivatives [Member] | Other Long-Term Assets [Member] | ||
Derivatives Fair Value [Line Items] | ||
Fair value of derivative assets | 1 | |
Interest Rate Derivatives [Member] | Other Current Liabilities [Member] | ||
Derivatives Fair Value [Line Items] | ||
Fair value of derivative liabilities | 1 | |
Interest Rate Derivatives [Member] | Other Long-Term Liabilities [Member] | ||
Derivatives Fair Value [Line Items] | ||
Fair value of derivative liabilities | $ 57 | $ 41 |
Share-Based Compensation (Narra
Share-Based Compensation (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Mar. 31, 2017 | Jun. 30, 2017 | Jun. 30, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unit-based compensation | $ 100 | $ 80 | ||
Reduction of workforce [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expense associated with accelerated awards | 67 | |||
EnLink [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unit-based compensation | $ 21 | $ 12 | ||
General Partner And EnLink [Member] | Restricted Stock Awards And Units [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unit-based compensation | $ 10 | |||
2017 Long-Term Incentive Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares authorized for issuance | 33,500,000 | 33,500,000 | ||
Number of shares used to calculate shares that may be granted under the Long-Term Incentive Plan, options and stock appreciation rights | 1 | |||
Number of shares used to calculate shares that may be granted under the Long-Term Incentive Plan, other awards | 2.3 |
Share-Based Compensation (Sched
Share-Based Compensation (Schedule Of The Effects Of Share Based Compensation Included In The Consolidated Comprehensive Statement Of Earnings) (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Share Based Compensation [Abstract] | ||
Gross G&A for share-based compensation | $ 100 | $ 80 |
Share-based compensation expense capitalized pursuant to the full cost method of accounting for oil and gas properties | 20 | 21 |
Related income tax benefit | $ 2 | $ 2 |
Share-Based Compensation (Summa
Share-Based Compensation (Summary Of Unvested Restricted Stock Awards and Units, Performance-Based Restricted Stock Awards And Performance Share Units) (Details) shares in Thousands | 6 Months Ended | |
Jun. 30, 2017$ / sharesshares | ||
Restricted Stock Awards And Units [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unvested at December 31, 2016 | shares | 6,407 | |
Granted, awards and units | shares | 2,683 | |
Vested, awards and units | shares | (2,168) | |
Forfeited, awards and units | shares | (149) | |
Unvested at June 30, 2017 | shares | 6,773 | |
Unvested weighted average grant-date fair value at December 31, 2016 | $ / shares | $ 34.40 | |
Granted, weighted average grant-date fair value | $ / shares | 44.90 | |
Vested, weighted average grant-date fair value | $ / shares | 39.38 | |
Forfeited, weighted average grant-date fair value | $ / shares | 35.91 | |
Unvested weighted average grant-date fair value at June 30, 2017 | $ / shares | $ 36.94 | |
Performance-Based Restricted Stock Awards [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unvested at December 31, 2016 | shares | 585 | |
Granted, awards and units | shares | 223 | |
Vested, awards and units | shares | (225) | |
Unvested at June 30, 2017 | shares | 583 | |
Unvested weighted average grant-date fair value at December 31, 2016 | $ / shares | $ 37.60 | |
Granted, weighted average grant-date fair value | $ / shares | 44.85 | |
Vested, weighted average grant-date fair value | $ / shares | 41.04 | |
Unvested weighted average grant-date fair value at June 30, 2017 | $ / shares | $ 39.04 | |
Performance Share Units [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unvested at December 31, 2016 | shares | 2,604 | |
Granted, awards and units | shares | 1,010 | |
Vested, awards and units | shares | (832) | |
Forfeited, awards and units | shares | (7) | |
Unvested at June 30, 2017 | shares | 2,775 | [1] |
Unvested weighted average grant-date fair value at December 31, 2016 | $ / shares | $ 46.66 | |
Granted, weighted average grant-date fair value | $ / shares | 52.58 | |
Vested, weighted average grant-date fair value | $ / shares | 78.19 | |
Forfeited, weighted average grant-date fair value | $ / shares | 37.41 | |
Unvested weighted average grant-date fair value at June 30, 2017 | $ / shares | $ 41.22 | |
[1] | A maximum of 5.5 million common shares could be awarded based upon Devon’s final TSR ranking relative to Devon’s peer group established under applicable award agreements. |
Share-Based Compensation (Sum57
Share-Based Compensation (Summary Of Unvested Restricted Stock Awards and Units, Performance-Based Restricted Stock Awards And Performance Share Units) (Parenthetical) (Details) shares in Millions | 6 Months Ended |
Jun. 30, 2017shares | |
Performance Share Units [Member] | Maximum [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Maximum common shares that could be awarded based upon total shareholder return | 5.5 |
Share-Based Compensation (Sum58
Share-Based Compensation (Summary Of Performance Share Units Grant-Date Fair Values And Their Related Assumptions) (Details) - Performance Share Units [Member] | 6 Months Ended |
Jun. 30, 2017$ / shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Grant-date fair value | $ 52.58 |
Risk-free interest rate | 1.50% |
Volatility factor | 45.80% |
Contractual term (years) | 2 years 10 months 21 days |
Minimum [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Grant-date fair value | $ 51.05 |
Maximum [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Grant-date fair value | $ 53.12 |
Share-Based Compensation (Sum59
Share-Based Compensation (Summary of Unrecognized Compensation Cost And Weighted Average Period For Recognition) (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2017USD ($) | |
Restricted Stock Awards And Units [Member] | |
Unrecognized Compensation And Weighted Average Recognition [Line Items] | |
Unrecognized compensation cost (millions) | $ 185 |
Weighted average period for recognition (years) | 2 years 8 months 12 days |
Performance-Based Restricted Stock Awards [Member] | |
Unrecognized Compensation And Weighted Average Recognition [Line Items] | |
Unrecognized compensation cost (millions) | $ 8 |
Weighted average period for recognition (years) | 2 years |
Performance Share Units [Member] | |
Unrecognized Compensation And Weighted Average Recognition [Line Items] | |
Unrecognized compensation cost (millions) | $ 42 |
Weighted average period for recognition (years) | 2 years 1 month 6 days |
Share-Based Compensation (Sum60
Share-Based Compensation (Summary of Unrecognized Compensation Cost And Weighted Average Period For Recognition General Partner And EnLink) (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2017USD ($) | |
Restricted Stock Awards And Units [Member] | |
Unrecognized Compensation And Weighted Average Recognition [Line Items] | |
Unrecognized compensation cost (millions) | $ 185 |
Weighted average period for recognition (years) | 2 years 8 months 12 days |
Performance Share Units [Member] | |
Unrecognized Compensation And Weighted Average Recognition [Line Items] | |
Unrecognized compensation cost (millions) | $ 42 |
Weighted average period for recognition (years) | 2 years 1 month 6 days |
General Partner [Member] | Restricted Stock Awards And Units [Member] | |
Unrecognized Compensation And Weighted Average Recognition [Line Items] | |
Unrecognized compensation cost (millions) | $ 17 |
Weighted average period for recognition (years) | 1 year 10 months 25 days |
General Partner [Member] | Performance Share Units [Member] | |
Unrecognized Compensation And Weighted Average Recognition [Line Items] | |
Unrecognized compensation cost (millions) | $ 7 |
Weighted average period for recognition (years) | 2 years 1 month 6 days |
EnLink [Member] | Restricted Stock Awards And Units [Member] | |
Unrecognized Compensation And Weighted Average Recognition [Line Items] | |
Unrecognized compensation cost (millions) | $ 18 |
Weighted average period for recognition (years) | 1 year 10 months 25 days |
EnLink [Member] | Performance Share Units [Member] | |
Unrecognized Compensation And Weighted Average Recognition [Line Items] | |
Unrecognized compensation cost (millions) | $ 7 |
Weighted average period for recognition (years) | 2 years 1 month 6 days |
Asset Impairments (Narrative) (
Asset Impairments (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Mar. 31, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Impaired Long-Lived Assets Held and Used [Line Items] | ||||
Asset impairment charges | $ 1,497 | $ 7 | $ 4,532 | |
General Partner And EnLink [Member] | ||||
Impaired Long-Lived Assets Held and Used [Line Items] | ||||
Goodwill, impairment loss | $ 873 | |||
U.S. Oil And Gas Assets [Member] | ||||
Impaired Long-Lived Assets Held and Used [Line Items] | ||||
Asset impairment charges | 885 | 2,500 | ||
Canada Oil And Gas Assets [Member] | ||||
Impaired Long-Lived Assets Held and Used [Line Items] | ||||
Asset impairment charges | $ 612 | $ 1,200 |
Restructuring And Transaction62
Restructuring And Transaction Costs (Schedule Of The Components Of Restructuring And Transaction Costs Included In The Consolidated Comprehensive Statements Of Earnings) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended |
Jun. 30, 2016 | Jun. 30, 2016 | |
Restructuring Cost And Reserve [Line Items] | ||
Restructuring and transaction costs | $ 24 | $ 271 |
Employee Related Costs [Member] | Reduction of workforce [Member] | ||
Restructuring Cost And Reserve [Line Items] | ||
Restructuring and transaction costs | 2 | 236 |
Lease Obligations [Member] | Reduction of workforce [Member] | ||
Restructuring Cost And Reserve [Line Items] | ||
Restructuring and transaction costs | 17 | 17 |
Asset Impairments [Member] | Reduction of workforce [Member] | ||
Restructuring Cost And Reserve [Line Items] | ||
Restructuring and transaction costs | 3 | 3 |
Transaction Costs [Member] | ||
Restructuring Cost And Reserve [Line Items] | ||
Restructuring and transaction costs | $ 2 | $ 15 |
Restructuring And Transaction63
Restructuring And Transaction Costs (Schedule Of The Activity And Balances Associated With Restructuring Liabilities) (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Restructuring Cost And Reserve [Line Items] | ||
Beginning balance | $ 110 | $ 76 |
Ending balance | 81 | 193 |
Reduction of workforce [Member] | ||
Restructuring Cost And Reserve [Line Items] | ||
Restructuring reserve activity | (24) | 120 |
Prior years' restructurings [Member] | ||
Restructuring Cost And Reserve [Line Items] | ||
Restructuring reserve activity | (5) | (3) |
Other Current Liabilities [Member] | ||
Restructuring Cost And Reserve [Line Items] | ||
Beginning balance | 48 | 13 |
Ending balance | 31 | 123 |
Other Current Liabilities [Member] | Reduction of workforce [Member] | ||
Restructuring Cost And Reserve [Line Items] | ||
Restructuring reserve activity | (24) | 107 |
Other Current Liabilities [Member] | Prior years' restructurings [Member] | ||
Restructuring Cost And Reserve [Line Items] | ||
Restructuring reserve activity | 7 | 3 |
Other Long-Term Liabilities [Member] | ||
Restructuring Cost And Reserve [Line Items] | ||
Beginning balance | 62 | 63 |
Ending balance | 50 | 70 |
Other Long-Term Liabilities [Member] | Reduction of workforce [Member] | ||
Restructuring Cost And Reserve [Line Items] | ||
Restructuring reserve activity | 13 | |
Other Long-Term Liabilities [Member] | Prior years' restructurings [Member] | ||
Restructuring Cost And Reserve [Line Items] | ||
Restructuring reserve activity | $ (12) | $ (6) |
Restructuring And Transaction64
Restructuring And Transaction Costs (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended |
Jun. 30, 2016 | Jun. 30, 2016 | |
Restructuring Cost And Reserve [Line Items] | ||
Restructuring and transaction costs | $ 24 | $ 271 |
Reduction of workforce [Member] | ||
Restructuring Cost And Reserve [Line Items] | ||
Expense associated with accelerated awards | 67 | |
Employee Related Costs [Member] | Reduction of workforce [Member] | ||
Restructuring Cost And Reserve [Line Items] | ||
Restructuring and transaction costs | $ 2 | 236 |
Estimated Defined Benefit Settlements [Member] | Reduction of workforce [Member] | ||
Restructuring Cost And Reserve [Line Items] | ||
Restructuring and transaction costs | $ 30 |
Income Taxes (Schedule Of Effec
Income Taxes (Schedule Of Effective Income Tax Rate Reconciliation) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Income Tax Disclosure [Abstract] | ||||
Current income tax expense (benefit) | $ 12 | $ (3) | $ 32 | $ (13) |
Deferred income tax benefit | (5) | (179) | (6) | (386) |
Total income tax expense (benefit) | $ 7 | $ (182) | $ 26 | $ (399) |
U.S. statutory income tax rate | 35.00% | 35.00% | 35.00% | 35.00% |
Deferred tax asset valuation allowance | (27.00%) | (27.00%) | (29.00%) | (24.00%) |
Non-deductible goodwill impairments | 0.00% | 0.00% | 0.00% | (6.00%) |
Taxation on Canadian operations | 0.00% | (3.00%) | 0.00% | (2.00%) |
State income taxes | 0.00% | 2.00% | 0.00% | 1.00% |
Other | (6.00%) | 3.00% | (4.00%) | 3.00% |
Effective income tax rate | 2.00% | 10.00% | 2.00% | 7.00% |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | |
Mar. 31, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | |
Income Tax [Line Items] | ||||
Valuation allowance against U.S. deferred tax assets, percent | 100.00% | 100.00% | ||
General Partner And EnLink [Member] | ||||
Income Tax [Line Items] | ||||
Goodwill, impairment loss | $ 873 | |||
United States [Member] | ||||
Income Tax [Line Items] | ||||
Change in deferred tax valuation allowance | $ (320) | $ 1,300 |
Net Earnings (Loss) Per Share67
Net Earnings (Loss) Per Share Attributable To Devon (Earnings Per Share Computations) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | ||
Net earnings (loss): | |||||
Net earnings (loss) attributable to Devon | $ 425 | $ (1,570) | $ 990 | $ (4,626) | |
Attributable to participating securities | (5) | (1) | (11) | (1) | |
Basic and diluted earnings (loss) | $ 420 | $ (1,571) | $ 979 | $ (4,627) | |
Common shares: | |||||
Common shares outstanding - total | 526 | 524 | 525 | 502 | |
Attributable to participating securities | (6) | (6) | (6) | (6) | |
Common shares outstanding - basic | 520 | 518 | 519 | 496 | |
Dilutive effect of potential common shares issuable | 3 | 3 | |||
Common shares outstanding - diluted | 523 | 518 | 522 | 496 | |
Net earnings (loss) per share attributable to Devon: | |||||
Basic | $ 0.81 | $ (3.04) | $ 1.88 | $ (9.33) | |
Diluted | $ 0.80 | $ (3.04) | $ 1.87 | $ (9.33) | |
Antidilutive options | [1] | 2 | 3 | 2 | 3 |
[1] | Amounts represent options to purchase shares of Devon’s common stock that are excluded from the diluted net earnings (loss) per share calculations because the options are antidilutive. |
Other Comprehensive Earnings (C
Other Comprehensive Earnings (Components Of Other Comprehensive Earnings) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | ||
Foreign currency translation: | ||||||
Beginning accumulated foreign currency translation | $ 454 | $ 447 | $ 456 | $ 424 | ||
Change in cumulative translation adjustment | 13 | 2 | 14 | 53 | ||
Income tax benefit (expense) | (11) | 1 | (14) | (27) | ||
Ending accumulated foreign currency translation | 456 | 450 | 456 | 450 | ||
Pension and postretirement benefit plans: | ||||||
Beginning accumulated pension and postretirement benefits | (167) | (190) | (172) | (194) | ||
Recognition of net actuarial loss and prior service cost in earnings | [1] | 4 | 8 | 9 | 13 | |
Income tax expense | (3) | (4) | ||||
Ending accumulated pension and postretirement benefits | (163) | (185) | (163) | (185) | ||
Other | (2) | (2) | ||||
Accumulated other comprehensive earnings, net of tax | $ 291 | $ 265 | $ 291 | $ 265 | $ 284 | |
[1] | These accumulated other comprehensive earnings components are included in the computation of net periodic benefit cost, which is a component of G&A on the accompanying consolidated comprehensive statements of earnings. See Note 16 for additional details. |
Supplemental Information To S69
Supplemental Information To Statements Of Cash Flows (Schedule Of Supplemental Information To Statements Of Cash Flows) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Net change in working capital accounts, net of assets and liabilities assumed: | ||||
Accounts receivable | $ 82 | $ (140) | $ 130 | $ 6 |
Income taxes receivable | 7 | (14) | 8 | 101 |
Other current assets | (33) | (107) | (55) | 144 |
Accounts payable | 46 | (30) | 50 | (151) |
Revenues and royalties payable | (44) | 95 | 29 | (6) |
Other current liabilities | 14 | 53 | (75) | (23) |
Net change in working capital | 72 | (143) | 87 | 71 |
Interest paid (net of capitalized interest) | 144 | 174 | 236 | 289 |
Income taxes paid (received) | $ (4) | $ 5 | $ (1) | $ (123) |
Accounts Receivable (Schedule O
Accounts Receivable (Schedule Of Components Of Accounts Receivable) (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Joint interest billings | $ 101 | $ 110 |
Other | 58 | 69 |
Gross accounts receivable | 1,264 | 1,374 |
Allowance for doubtful accounts | (16) | (18) |
Net accounts receivable | 1,248 | 1,356 |
Oil, Gas And NGL Sales [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Gross accounts receivable | 440 | 487 |
Marketing And Midstream Revenues [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Gross accounts receivable | $ 665 | $ 708 |
Goodwill And Other Intangible71
Goodwill And Other Intangible Assets (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Mar. 31, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Goodwill [Line Items] | |||||
Weighted average amortization period, other intangible assets | 14 years | ||||
Amortization expense of intangible assets | $ 30 | $ 30 | $ 59 | $ 58 | |
Amortization Expense, Next Five Years | $ 118 | ||||
General Partner And EnLink [Member] | |||||
Goodwill [Line Items] | |||||
Goodwill impairments | $ 873 | ||||
Crude And Condensate [Member] | General Partner And EnLink [Member] | |||||
Goodwill [Line Items] | |||||
Goodwill impairments | 93 | ||||
Texas [Member] | General Partner And EnLink [Member] | |||||
Goodwill [Line Items] | |||||
Goodwill impairments | 473 | ||||
General Partner [Member] | General Partner And EnLink [Member] | |||||
Goodwill [Line Items] | |||||
Goodwill impairments | $ 307 |
Goodwill And Other Intangible72
Goodwill And Other Intangible Assets (Schedule Of Other Intangible Assets) (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Goodwill And Intangible Assets Disclosure [Abstract] | ||
Customer relationships | $ 1,796 | $ 1,796 |
Accumulated amortization | (231) | (172) |
Net intangibles | $ 1,565 | $ 1,624 |
Other Current Liabilities (Sche
Other Current Liabilities (Schedule Of Other Current Liabilities) (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Other Liabilities, Current [Abstract] | ||
Derivative liabilities | $ 106 | $ 244 |
Accrued interest payable | 133 | 130 |
Restructuring liabilities | 31 | 48 |
Other | 442 | 452 |
Other current liabilities | 891 | 1,066 |
Installment Payable, Current [Member] | ||
Other Liabilities, Current [Abstract] | ||
Installment payment - see Note 2 | 237 | 249 |
Other Current Liabilities [Member] | ||
Other Liabilities, Current [Abstract] | ||
Derivative liabilities | $ 48 | $ 187 |
Debt And Related Expenses (Sche
Debt And Related Expenses (Schedule Of Debt Instruments) (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Debt Instrument [Line Items] | ||
Debentures and notes | $ 6,933 | $ 6,933 |
Net (discount) premium on debentures and notes | (30) | (30) |
Debt issuance costs | (42) | (44) |
Total debt | 10,558 | 10,154 |
EnLink [Member] | ||
Debt Instrument [Line Items] | ||
Credit facilities | 231 | 148 |
Debentures and notes | 3,500 | 3,163 |
Net (discount) premium on debentures and notes | (6) | 9 |
Debt issuance costs | (28) | (25) |
Total debt | 3,697 | 3,295 |
Devon [Member] | ||
Debt Instrument [Line Items] | ||
Total debt | $ 6,861 | $ 6,859 |
Debt And Related Expenses (Narr
Debt And Related Expenses (Narrative) (Details) | 1 Months Ended | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2017USD ($) | Jun. 30, 2017USD ($) | Jun. 30, 2017USD ($) | May 31, 2017USD ($) | |
EnLink [Member] | Senior Notes [Member] | 5.45% due 2047 [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, face amount | $ 500,000,000 | |||
Debt interest rate, stated percentage | 5.45% | 5.45% | 5.45% | |
Debt maturity year | 2,047 | |||
EnLink [Member] | Senior Notes [Member] | 7.125% due June 2022 [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt interest rate, stated percentage | 7.125% | 7.125% | 7.125% | |
Debt maturity year | 2,022 | |||
Debt instrument, carrying amount | $ 163,000,000 | $ 163,000,000 | $ 163,000,000 | |
Redeemed percentage of principal amount | 103.60% | |||
Aggregate cash consideration | $ 174,000,000 | |||
Gain on extinguishment of debt | 9,000,000 | 9,000,000 | ||
Senior Credit Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Credit Facility, borrowing capacity | 3,000,000,000 | 3,000,000,000 | 3,000,000,000 | |
Outstanding credit facility borrowings | $ 0 | $ 0 | $ 0 | |
Debt-to-capitalization ratio | 0.193 | 0.193 | 0.193 | |
Outstanding letters of credit | $ 58,000,000 | $ 58,000,000 | $ 58,000,000 | |
Unsecured Revolving Credit Facility [Member] | EnLink [Member] | ||||
Debt Instrument [Line Items] | ||||
Credit Facility, borrowing capacity | 1,500,000,000 | 1,500,000,000 | 1,500,000,000 | |
Outstanding credit facility borrowings | 166,000,000 | 166,000,000 | 166,000,000 | |
Outstanding letters of credit | 9,000,000 | 9,000,000 | $ 9,000,000 | |
Line of credit average interest rate during period | 2.80% | |||
Revolving Credit Facility [Member] | General Partner [Member] | ||||
Debt Instrument [Line Items] | ||||
Credit Facility, borrowing capacity | 250,000,000 | 250,000,000 | $ 250,000,000 | |
Outstanding credit facility borrowings | $ 65,000,000 | $ 65,000,000 | $ 65,000,000 | |
Line of credit average interest rate during period | 3.20% | |||
Maximum [Member] | Senior Credit Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt-to-capitalization ratio | 0.65 | 0.65 | 0.65 |
Asset Retirement Obligations (S
Asset Retirement Obligations (Summary Of Changes In Asset Retirement Obligations) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2017 | Mar. 31, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | |
Asset Retirement Obligation Disclosure [Abstract] | ||||||
Asset retirement obligations as of beginning of period | $ 1,272 | $ 1,272 | $ 1,414 | |||
Liabilities incurred and assumed through acquisitions | 15 | 15 | ||||
Liabilities settled and divested | (26) | (51) | ||||
Revision of estimated obligation | $ (184) | (184) | 70 | |||
Accretion expense on discounted obligation | $ 14 | $ 20 | 31 | 39 | ||
Foreign currency translation adjustment | 14 | 30 | ||||
Asset retirement obligations as of end of period | 1,122 | 1,517 | 1,122 | 1,517 | ||
Less current portion | 44 | 44 | 44 | 44 | ||
Asset retirement obligations, long-term | $ 1,078 | $ 1,473 | $ 1,078 | $ 1,473 | $ 1,226 |
Asset Retirement Obligations (N
Asset Retirement Obligations (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |
Mar. 31, 2017 | Jun. 30, 2017 | Jun. 30, 2016 | |
Asset Retirement Obligation [Abstract] | |||
Revisions of asset retirement obligations | $ (184) | $ (184) | $ 70 |
Retirement Plans (Schedule Of N
Retirement Plans (Schedule Of Net Periodic Benefit Cost For Pension And Postretirement Benefit Plans) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | ||
Pension Benefits [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Service cost | $ 4 | $ 3 | $ 8 | $ 9 | |
Interest cost | 11 | 11 | 21 | 23 | |
Expected return on plan assets | (14) | (13) | (27) | (26) | |
Amortization of prior service cost | [1] | 1 | 1 | 1 | |
Net actuarial loss | [1] | 5 | 7 | 9 | 13 |
Net periodic benefit cost | [2] | 6 | $ 9 | 12 | 20 |
Postretirement Benefits [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Amortization of prior service cost | [1] | (1) | (1) | (1) | |
Net periodic benefit cost | [2] | $ (1) | $ (1) | $ (1) | |
[1] | These net periodic benefit costs were reclassified out of other comprehensive earnings in the current period. | ||||
[2] | Net periodic benefit cost is a component of G&A in the accompanying consolidated comprehensive statements of earnings. |
Stockholders' Equity (Narrative
Stockholders' Equity (Narrative) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||||
Feb. 29, 2016 | Jan. 31, 2016 | Jun. 30, 2017 | Mar. 31, 2017 | Jun. 30, 2016 | Mar. 31, 2016 | Jun. 30, 2016 | |
Stockholders Equity [Abstract] | |||||||
Net proceeds from offering | $ 1,469 | ||||||
Common stock dividends, rate per share | $ 0.06 | $ 0.06 | $ 0.06 | $ 0.24 | |||
Common Stock [Member] | |||||||
Stockholders Equity [Abstract] | |||||||
Common stock, shares issued | 103 | ||||||
Common Stock Offering [Member] | |||||||
Stockholders Equity [Abstract] | |||||||
Common stock, shares issued | 79 | ||||||
Net proceeds from offering | $ 1,500 | ||||||
Common Stock Offering [Member] | Underwriters [Member] | |||||||
Stockholders Equity [Abstract] | |||||||
Common stock, shares issued | 10 | ||||||
Equity Issued in Business Combination [Member] | Common Stock [Member] | STACK [Member] | |||||||
Stockholders Equity [Abstract] | |||||||
Equity issued for acquisition | 23 |
Stockholders' Equity (Summary O
Stockholders' Equity (Summary Of Dividends Paid On Common Stock) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2017 | Mar. 31, 2017 | Jun. 30, 2016 | Mar. 31, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Stockholders Equity Note [Abstract] | ||||||
Common stock dividends paid, Amount | $ 33 | $ 32 | $ 33 | $ 125 | $ 65 | $ 158 |
Common stock dividends, rate per share | $ 0.06 | $ 0.06 | $ 0.06 | $ 0.24 |
Noncontrolling Interests (Narra
Noncontrolling Interests (Narrative) (Details) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Noncontrolling Interest [Line Items] | ||||
Net proceeds of common units sold | $ 17 | $ 49 | $ 72 | $ 776 |
Distributions to unitholders other than Devon | $ 82 | $ 74 | $ 163 | 147 |
EnLink [Member] | ||||
Noncontrolling Interest [Line Items] | ||||
Ownership interest by Devon | 23.00% | 23.00% | ||
EnLink [Member] | Equity Distribution Agreements [Member] | ||||
Noncontrolling Interest [Line Items] | ||||
Common units sold | 4 | |||
Net proceeds of common units sold | $ 72 | |||
General Partner [Member] | ||||
Noncontrolling Interest [Line Items] | ||||
Ownership interest by Devon | 64.00% | 64.00% | ||
General Partner And EnLink [Member] | ||||
Noncontrolling Interest [Line Items] | ||||
Distributions to unitholders other than Devon | $ 163 | $ 147 |
Fair Value Measurements (Schedu
Fair Value Measurements (Schedule Of Carrying Value And Fair Value Measurement Information For Financial Assets And Liabilities) (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives, assets | $ 205 | $ 11 |
Derivatives, liabilities | (106) | (244) |
Carrying Amount [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 1,868 | 1,542 |
Debt | (10,558) | (10,154) |
Installment payment | (237) | (473) |
Capital lease obligations | (5) | (7) |
Carrying Amount [Member] | Commodity Derivatives [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives, assets | 203 | 10 |
Derivatives, liabilities | (48) | (203) |
Carrying Amount [Member] | Interest Rate Derivatives [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives, assets | 2 | 1 |
Derivatives, liabilities | (58) | (41) |
Total Fair Value [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 1,868 | 1,542 |
Debt | (11,446) | (10,760) |
Installment payment | (238) | (477) |
Capital lease obligations | (4) | (6) |
Total Fair Value [Member] | Commodity Derivatives [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives, assets | 203 | 10 |
Derivatives, liabilities | (48) | (203) |
Total Fair Value [Member] | Interest Rate Derivatives [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives, assets | 2 | 1 |
Derivatives, liabilities | (58) | (41) |
Level 1 Inputs [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 1,653 | 1,298 |
Level 2 Inputs [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 215 | 244 |
Debt | (11,446) | (10,760) |
Installment payment | (238) | (477) |
Capital lease obligations | (4) | (6) |
Level 2 Inputs [Member] | Commodity Derivatives [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives, assets | 203 | 10 |
Derivatives, liabilities | (48) | (203) |
Level 2 Inputs [Member] | Interest Rate Derivatives [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives, assets | 2 | 1 |
Derivatives, liabilities | $ (58) | $ (41) |
Segment information (Condensed
Segment information (Condensed Statements Of Comprehensive Earnings And Balance Sheets Of Reportable Segments) (Details) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017USD ($) | Jun. 30, 2016USD ($) | Jun. 30, 2017USD ($)segment | Jun. 30, 2016USD ($) | Dec. 31, 2016USD ($) | |
Segment Reporting Information [Line Items] | |||||
Revenues from external customers | $ 3,259 | $ 2,488 | $ 6,810 | $ 4,614 | |
Depreciation, depletion and amortization | 381 | 484 | 762 | 1,026 | |
Interest expense | 119 | 165 | 249 | 330 | |
Asset impairments | 1,497 | 7 | 4,532 | ||
Restructuring and transaction costs | 24 | 271 | |||
Earnings (loss) before income taxes | 458 | (1,745) | 1,056 | (5,430) | |
Income tax expense (benefit) | 7 | (182) | 26 | (399) | |
Net earnings (loss) | 451 | (1,563) | 1,030 | (5,031) | |
Net earnings (loss) attributable to noncontrolling interests | 26 | 7 | 40 | (405) | |
Net earnings (loss) attributable to Devon | 425 | (1,570) | 990 | (4,626) | |
Property and equipment, net | 16,822 | 16,815 | 16,822 | 16,815 | $ 16,190 |
Total assets | 26,814 | 27,244 | 26,814 | 27,244 | $ 25,913 |
Capital expenditures, including acquisitions | 757 | 452 | 1,538 | 2,971 | |
Eliminations [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Interest expense | (12) | (23) | (27) | (43) | |
Total assets | (52) | (57) | (52) | (57) | |
Eliminations [Member] | Intersegment [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues from external customers | (170) | (176) | $ (341) | (359) | |
United States [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Number of reportable segments | segment | 1 | ||||
United States [Member] | Operating Segments [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues from external customers | 1,891 | 1,365 | $ 3,972 | 2,667 | |
Depreciation, depletion and amortization | 180 | 256 | 361 | 567 | |
Interest expense | 81 | 108 | 161 | 215 | |
Asset impairments | 885 | 2,493 | |||
Restructuring and transaction costs | 19 | 255 | |||
Earnings (loss) before income taxes | 409 | (1,097) | 966 | (3,162) | |
Income tax expense (benefit) | 2 | (6) | 5 | (11) | |
Net earnings (loss) | 407 | (1,091) | 961 | (3,151) | |
Net earnings (loss) attributable to noncontrolling interests | 1 | 1 | |||
Net earnings (loss) attributable to Devon | 407 | (1,092) | 961 | (3,152) | |
Property and equipment, net | 7,659 | 7,823 | 7,659 | 7,823 | |
Total assets | 13,096 | 12,856 | 13,096 | 12,856 | |
Capital expenditures, including acquisitions | 463 | 284 | 900 | 2,177 | |
Canada [Member] | Operating Segments [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues from external customers | 274 | 266 | 593 | 383 | |
Depreciation, depletion and amortization | 64 | 103 | 136 | 212 | |
Interest expense | 11 | 33 | 31 | 67 | |
Asset impairments | 612 | 1,166 | |||
Restructuring and transaction costs | 4 | 10 | |||
Earnings (loss) before income taxes | 12 | (647) | 41 | (1,396) | |
Income tax expense (benefit) | 1 | (174) | 14 | (382) | |
Net earnings (loss) | 11 | (473) | 27 | (1,014) | |
Net earnings (loss) attributable to Devon | 11 | (473) | 27 | (1,014) | |
Property and equipment, net | 2,651 | 2,832 | 2,651 | 2,832 | |
Total assets | 3,505 | 4,283 | 3,505 | 4,283 | |
Capital expenditures, including acquisitions | 76 | 29 | 172 | 110 | |
General Partner And EnLink [Member] | Operating Segments [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues from external customers | 1,094 | 857 | 2,245 | 1,564 | |
Depreciation, depletion and amortization | 137 | 125 | 265 | 247 | |
Interest expense | 39 | 47 | 84 | 91 | |
Asset impairments | 7 | 873 | |||
Restructuring and transaction costs | 1 | 6 | |||
Earnings (loss) before income taxes | 37 | (1) | 49 | (872) | |
Income tax expense (benefit) | 4 | (2) | 7 | (6) | |
Net earnings (loss) | 33 | 1 | 42 | (866) | |
Net earnings (loss) attributable to noncontrolling interests | 26 | 6 | 40 | (406) | |
Net earnings (loss) attributable to Devon | 7 | (5) | 2 | (460) | |
Property and equipment, net | 6,512 | 6,160 | 6,512 | 6,160 | |
Total assets | 10,265 | 10,162 | 10,265 | 10,162 | |
Capital expenditures, including acquisitions | 218 | 139 | 466 | 684 | |
General Partner And EnLink [Member] | Operating Segments [Member] | Intersegment [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues from external customers | $ 170 | $ 176 | $ 341 | $ 359 |