Devon Energy Q3 2026 earnings rise to $1.01B
The Eagle Ford sale is expected to generate approximately $3.5 billion in net proceeds for debt reduction and share repurchases.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Rhea-AI Filing Summary
Devon Energy Corporation (DVN) reported third-quarter 2026 net earnings of $1.008 billion, or $0.88 per diluted share, and non-GAAP core earnings of $1.633 billion, or $1.42 per diluted share. Total revenues were $6.860 billion versus $4.331 billion in third-quarter 2025; operating cash flow was $2.808 billion versus $1.690 billion. This was Devon’s first full quarter of combined operations.
Production averaged 1,668,000 Boe per day. Adjusted free cash flow was $2.010 billion; Devon retired the remaining $750 million of its term loan and repurchased 8.9 million shares for $414 million. The board declared a $0.32-per-share fourth-quarter dividend, payable December 30, 2026.
The $4.2 billion cash sale of Eagle Ford assets, subject to customary closing adjustments, is expected to close in early 2027, subject to regulatory approvals and customary closing conditions. Net proceeds are expected to be approximately $3.5 billion for repurchases and debt reduction. Devon expects an approximately $350 million annualized pre-tax synergy run rate exiting 2026. Fourth-quarter guidance calls for production of 1,660,000–1,700,000 Boe per day and total capital of $1,290 million–$1,395 million.
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Positive
- Moderate pointNet earnings were $1.008 billion, compared with $693 million in Q3 2025.
- Moderate pointOperating cash flow was $2.808 billion, versus $1.690 billion in Q3 2025.
Negative
- None.
8-K Event Classification
Key Figures
Key Terms
Core earnings financial
EBITDAX financial
Net debt-to-EBITDAX financial
Adjusted free cash flow financial
Earnings Snapshot
For fourth-quarter 2026, total production is expected to average 1,660,000–1,700,000 Boe per day and total capital is expected to be $1,290 million–$1,395 million.
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What were DVN’s Q3 2026 earnings and revenue?
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AI-generated analysis. How Rhea-AI works. Not financial advice.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported):
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| (State or other jurisdiction of incorporation) |
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Not Applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class |
Trading |
Name of each exchange | ||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
| Item 2.02 | Results of Operations and Financial Condition. |
On November 5, 2026, Devon Energy Corporation (the “Company”) announced its financial and operational results for the quarterly period ended September 30, 2026. In connection with this announcement, the Company provided an earnings release and certain supplemental financial information (including guidance and hedging information). Copies of these documents are furnished as Exhibits 99.1 and 99.2, respectively, to this report and, along with certain other materials (including a letter to stockholders) will be available on the Company’s website at www.devonenergy.com.
The information contained in this report and the exhibits hereto shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and shall not be incorporated by reference into any filings made by the Company under the Securities Act of 1933, as amended, or the Exchange Act, except as may be expressly set forth by specific reference in such filing.
| Item 9.01 | Financial Statements and Exhibits. |
(d) Exhibits
| Exhibit No. |
Description of Exhibits | |
| 99.1 | Earnings release, dated November 5, 2026. | |
| 99.2 | Supplemental financial information (including guidance and hedging information). | |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). | |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| DEVON ENERGY CORPORATION | ||
| By: | /s/ Gregory F. Conaway | |
| Gregory F. Conaway | ||
| Vice President and Chief Accounting Officer | ||
Date: November 5, 2026
Exhibit 99.1
|
Devon Energy Corporation Three Memorial City Plaza 840 Gessner Road, Suite 1400 Houston, TX 77024 |
Devon Energy Reports Third-Quarter 2026 Results
HOUSTON, TX – November 5, 2026 – Devon Energy Corporation (NYSE: DVN) today reports third-quarter 2026 results and has published a letter to shareholders from President and CEO Clay Gaspar. The shareholder letter, supplemental financial tables, and forward-looking guidance are available on the company’s website at www.devonenergy.com.
KEY FINANCIAL, OPERATIONAL & STRATEGIC HIGHLIGHTS
| • | Delivering on 2026, Providing Initial 2027 Outlook: Maintaining full-year 2026 guidance. Expect 2027 oil production growth of 1-3%, with approximately 525,000 barrels per day of oil and 1,600,000 Boe (barrels of oil equivalent) per day for total capital of approximately $5.3 billion, pro forma for the Eagle Ford sale |
| • | Robust Cash Flow Generation: Operations generated $2.8 billion of operating cash flow, adjusted operating cash flow of $3.5 billion, and $2.0 billion of adjusted free cash flow during the third quarter |
| • | Eagle Ford Divestiture: As announced on October 8, agreed to sell the Eagle Ford assets for $4.2 billion in cash; closing expected in early 2027 |
| • | Accelerating Share Repurchases: Ramping to greater than $1 billion in the fourth quarter with further acceleration in early 2027, post-Eagle Ford sale proceeds |
| • | Shareholder Returns and Balance Sheet: Returned $1,530 million during the quarter through the $0.32 per share dividend ($366 million), $414 million of share repurchases and the retirement of the remaining $750 million term loan, bringing debt reduction since merger close to $1.25 billion |
| • | Synergy Outlook Raised: Raised the expected year-end 2026 synergy run rate to approximately $350 million, 75% above the plan laid out in August, with approximately $700 million of average synergies expected in 2027, up $100 million from our prior outlook, on the way to at least $1.0 billion of expected annual synergies by year-end 2027 |
| • | Solitude Pipeline Investment: Acquired a 25% interest in the Solitude Pipeline System with firm transportation capacity, connecting Permian natural gas to Gulf Coast and LNG-linked pricing |
OPERATING RESULTS
Devon’s operational activity in the third quarter averaged 32 operated drilling rigs and 8 completion crews. This level of activity resulted in 124 net operated wells being placed online, with an average lateral length of 11,400 feet. Capital expenditures, excluding acquisitions, totaled $1,496 million.
Production averaged 1,668,000 Boe per day in the third quarter, within guidance. Oil totaled 553,000 barrels per day in the quarter, with natural gas liquids of 382,000 barrels per day and natural gas of 4.4 Bcf (billion cubic feet) per day. Eagle Ford oil volumes were below expectations due to the timing of completions during the quarter, offset by solid performance across the rest of the portfolio, led by Permian Basin oil production of 389,000 barrels per day.
For the third quarter, Devon’s oil, gas, and NGL sales totaled $5.9 billion. The company’s realized price during the period, including commodity hedges, was $79.54 per barrel of oil, $23.81 per barrel of NGL and $2.16 per Mcf (thousand cubic feet) of natural gas. Unhedged natural gas realizations improved to 66% of Henry Hub, above the guidance range, as additional Permian takeaway capacity commenced service and narrowed Waha differentials.
Cash costs, including production expenses, general and administrative expenses, and financing costs, totaled $12.89 per Boe in the third quarter, approximately 2% below the midpoint of guidance. Gathering, processing, and transportation expense of $3.20 per Boe and general and administrative expense of $1.18 per Boe both came in below their guidance ranges, while lease operating expenses were slightly above the quarterly guidance range due to higher workover activity and third-party water disposal.
1
FINANCIAL RESULTS
Devon reported net earnings of $1.0 billion, or $0.88 per diluted share, in the third quarter of 2026. Adjusting for items analysts typically exclude from estimates, the company’s core earnings were $1.6 billion, or $1.42 per diluted share.
Devon’s operating cash flow totaled $2.8 billion in the third quarter, the company’s first full quarter of combined operations. The company funded its capital requirements and had $2.0 billion in adjusted free cash flow for the quarter.
During the quarter, Devon retired the remaining $750 million of its term loan, bringing total debt reduction since merger close to $1.25 billion. Supported by free cash flow and the Eagle Ford sale proceeds, the company plans to retire an additional $1.5 billion of long-term debt, reaching its $9 billion gross debt target in early 2027.
At the end of the third quarter, Devon had a cash balance of $0.4 billion and an undrawn credit facility of $3.0 billion. Outstanding debt totaled $10.6 billion and net debt totaled $10.2 billion, 0.9 times trailing twelve-month EBITDAX.
RETURN OF CAPITAL
Devon’s board of directors declared a fixed quarterly cash dividend of $0.32 per share for the fourth quarter, payable on December 30, 2026, to shareholders of record at the close of business on December 15, 2026, consistent with the company’s strategic priority of delivering value to shareholders through a sustainable, annually growing fixed dividend. The third-quarter dividend totaled $366 million and was paid on September 30, 2026.
The company also returned capital to shareholders through its $8.0 billion share repurchase program. During the third quarter, the company repurchased 8.9 million shares for $414 million, bringing repurchases since the program began in May to 13.3 million shares for $617 million, leaving $7.4 billion of remaining capacity on the authorization, which extends through mid-2029. The company expects share repurchases to step up to more than $1 billion in the fourth quarter and to rise further in 2027, fueled in part by the net proceeds from the Eagle Ford sale.
ACCELERATING SYNERGIES
Merger integration is running ahead of plan. Devon now expects to exit 2026 at an annualized pre-tax synergy run rate of approximately $350 million, 75% above the $200 million exit rate outlined in August, with the increase spread across capital optimization, operating margin improvements, and corporate cost reductions. The company now expects approximately $700 million of average synergies in 2027, up from $600 million, and continues to expect at least $1.0 billion of annual pre-tax run-rate synergies by year-end 2027. Shared best practices and technology applied across the combined portfolio are strengthening margins and increasing capital efficiency.
OUTLOOK
The company is reaffirming its full-year 2026 production and capital guidance with the Eagle Ford included through closing. For the fourth quarter of 2026, total production is expected to average between 1,660,000 and 1,700,000 Boe per day and oil production is expected to average between 550,000 and 560,000 barrels per day. Capital spending in the fourth quarter is expected to be between $1,290 million and $1,395 million.
Devon also provided an initial view of 2027. On a pro forma basis, adjusted for the Eagle Ford sale, the company expects 2027 oil production of approximately 525,000 barrels per day and total production of approximately 1,600,000 Boe per day on total capital of approximately $5.3 billion. Full 2027 guidance will be provided with fourth-quarter results in February.
Additional details of Devon’s forward-looking guidance are available on the company’s website at www.devonenergy.com.
2
EAGLE FORD DIVESTITURE
As announced on October 8, 2026, Devon has entered into a definitive agreement to sell its Eagle Ford assets for total consideration of $4.2 billion in cash, subject to customary closing adjustments. The transaction has an effective date of July 1, 2026 and is expected to close in early 2027, subject to regulatory approvals and customary closing conditions. After taxes and effective-date adjustments, net proceeds are expected to be approximately $3.5 billion and will be used to accelerate share repurchases and to reduce debt.
SOLITUDE PIPELINE INVESTMENT
During the third quarter, Devon acquired a 25% interest in the Solitude Pipeline System, a joint venture constructing two natural gas pipelines from the Permian Basin to the Texas Gulf Coast and secured firm transportation capacity on the system. The investment, funded by cash flow, connects a portion of Devon’s Permian natural gas production to Gulf Coast and LNG-linked pricing and is expected to improve realized natural gas prices once the system enters service.
CONFERENCE CALL WEBCAST AND SUPPLEMENTAL EARNINGS MATERIALS
Also provided with today’s release is the company’s earnings presentation, available on the company’s website at www.devonenergy.com. The company’s third-quarter conference call will be held at 10:00 a.m. Central (11:00 a.m. Eastern) on November 6, 2026, and will serve primarily as a forum for analyst and investor questions and answers.
ABOUT DEVON ENERGY
Devon Energy is a leading oil and gas producer in the U.S. with a diversified multi-basin portfolio headlined by a world-class acreage position in the Delaware Basin. Devon’s disciplined cash-return business model is designed to achieve strong returns, generate free cash flow and return capital to shareholders, while focusing on safe and sustainable operations. For more information, please visit www.devonenergy.com.
| Investor Contact | Media Contact | |
| investor.relations@dvn.com | devonmediarelations@dvn.com | |
| 281-589-5705 | 405-552-7460 |
NON-GAAP DISCLOSURES
This press release includes non-GAAP (generally accepted accounting principles) financial measures. Such non-GAAP measures are not alternatives to GAAP measures, and you should not consider these non-GAAP measures in isolation or as a substitute for analysis of results as reported under GAAP. Reconciliations of these non-GAAP measures and other disclosures are provided within the supplemental financial tables that are available on the company’s website.
FORWARD-LOOKING STATEMENTS
This press release includes “forward-looking statements” within the meaning of the federal securities laws. Such statements include those concerning strategic plans, our expectations and objectives for future operations, as well as other future events or conditions, and are often identified by use of the words and phrases “expects,” “believes,” “will,” “would,” “could,” “continue,” “may,” “aims,” “likely to be,” “intends,” “forecasts,” “projections,” “estimates,” “plans,” “expectations,” “targets,” “opportunities,” “potential,” “anticipates,” “outlook” and other similar terminology. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that Devon expects, believes or anticipates will or may occur in the future are forward-looking statements. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond our control. Consequently, actual future results could differ materially and adversely from our expectations due to a number of factors, including, but not limited to: the volatility of oil, gas and NGL prices, including from the impact of ongoing or escalating armed conflicts, wars and geopolitical instability and from changes in trade relations and policies, such as the imposition of new or increased tariffs or other trade protection measures by the U.S., China or other countries; uncertainties inherent in estimating oil, gas and NGL reserves; the extent to which we are successful in acquiring and discovering additional reserves; the uncertainties, costs and risks involved in our operations; risks related to our hedging activities; our limited control over third parties who operate some of our oil and gas properties and investments; midstream capacity constraints and potential interruptions in production, including from limits to the build out of midstream infrastructure; competition for assets, materials, people and capital, which can be exacerbated by supply chain disruptions, including as a result of tariffs or other changes in trade policy; regulatory restrictions, compliance costs and other risks relating to governmental regulation, including with respect to federal lands, environmental matters, water disposal and tax matters; climate change and risks related to regulatory, social and market efforts to address climate change; risks relating to our sustainability initiatives; claims, litigation, audits and other proceedings impacting our business, including with respect to historic and legacy operations; governmental interventions in energy markets; counterparty credit risks; risks relating to our indebtedness; cybersecurity risks; risks associated with artificial intelligence and other emerging technologies; the extent to which insurance covers any losses we may experience; risks related to shareholder activism; our ability to successfully complete mergers, acquisitions and divestitures, including the pending sale of our Eagle Ford assets; our ability to pay dividends and make share repurchases; risks related to the merger with Coterra, including the risk that we may not realize the anticipated synergies or other benefits of the merger or successfully integrate the two legacy businesses; and any of the other risks and uncertainties discussed in Devon’s 2025 Annual Report on Form 10-K (the “2025 Form 10-K”) or other filings with the Securities and Exchange Commission (the “SEC”).
The forward-looking statements included in this press release speak only as of the date of this press release, represent management’s current reasonable expectations as of the date of this press release and are subject to the risks and uncertainties identified above as well as those described elsewhere in the 2025 Form 10-K and in other documents we file from time to time with the SEC. We cannot guarantee the accuracy of our forward-looking statements, and readers are urged to carefully review and consider the various disclosures made in the 2025 Form 10-K and in other documents we file from time to time with the SEC. All subsequent written and oral forward-looking statements attributable to Devon, or persons acting on its behalf, are expressly qualified in their entirety by the cautionary statements above. We do not undertake, and expressly disclaim, any duty to update or revise our forward-looking statements based on new information, future events or otherwise.
3
Exhibit 99.2
Devon Energy Third-Quarter 2026
Supplemental Tables
| TABLE OF CONTENTS: | PAGE: | |||
| Consolidated Statements of Earnings |
2 | |||
| Supplemental Information for Consolidated Statements of Earnings |
3 | |||
| Consolidated Balance Sheets |
4 | |||
| Consolidated Statements of Cash Flows |
5 | |||
| Production |
6 | |||
| Capital Expenditures and Supplemental Information for Capital Expenditures |
7 | |||
| Realized Pricing |
8 | |||
| Asset Margins |
9 | |||
| Core Earnings |
10 | |||
| EBITDAX |
11 | |||
| Net Debt, Net Debt-to-EBITDAX, Adjusted Operating Cash Flow and Adjusted Free Cash Flow and Reinvestment Rate |
12 | |||
1
CONSOLIDATED STATEMENTS OF EARNINGS
| (in millions, except per share amounts) | 2026 | 2025 | ||||||||||||||||||
| Quarter 3 | Quarter 2 | Quarter 1 | Quarter 4 | Quarter 3 | ||||||||||||||||
| Oil, gas and NGL sales |
$ | 5,939 | $ | 5,106 | $ | 2,977 | $ | 2,578 | $ | 2,809 | ||||||||||
| Oil, gas and NGL derivatives (1) |
(914 | ) | 414 | (701 | ) | 184 | 80 | |||||||||||||
| Marketing and midstream revenues |
1,835 | 1,897 | 1,531 | 1,359 | 1,442 | |||||||||||||||
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| Total revenues |
6,860 | 7,417 | 3,807 | 4,121 | 4,331 | |||||||||||||||
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| Production expenses (2) |
1,651 | 1,393 | 894 | 861 | 895 | |||||||||||||||
| Exploration expenses |
14 | 16 | 25 | 5 | 8 | |||||||||||||||
| Marketing and midstream expenses |
1,855 | 1,874 | 1,547 | 1,389 | 1,453 | |||||||||||||||
| Depreciation, depletion and amortization |
1,684 | 1,416 | 904 | 890 | 879 | |||||||||||||||
| Asset dispositions |
— | (25 | ) | 1 | (1 | ) | (37 | ) | ||||||||||||
| General and administrative expenses |
180 | 175 | 125 | 135 | 114 | |||||||||||||||
| Financing costs, net (3) |
147 | 125 | 109 | 107 | 109 | |||||||||||||||
| Restructuring and transaction costs |
69 | 246 | 19 | — | 9 | |||||||||||||||
| Other, net |
8 | (187 | ) | 17 | (12 | ) | (11 | ) | ||||||||||||
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| Total expenses |
5,608 | 5,033 | 3,641 | 3,374 | 3,419 | |||||||||||||||
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| Earnings before income taxes |
1,252 | 2,384 | 166 | 747 | 912 | |||||||||||||||
| Income tax expense (4) |
244 | 473 | 46 | 185 | 219 | |||||||||||||||
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| Net earnings |
1,008 | 1,911 | 120 | 562 | 693 | |||||||||||||||
| Net earnings attributable to noncontrolling interests |
— | — | — | — | 6 | |||||||||||||||
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| Net earnings attributable to Devon |
$ | 1,008 | $ | 1,911 | $ | 120 | $ | 562 | $ | 687 | ||||||||||
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| Net earnings per share: |
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| Basic net earnings per share |
$ | 0.88 | $ | 2.04 | $ | 0.19 | $ | 0.91 | $ | 1.09 | ||||||||||
| Diluted net earnings per share |
$ | 0.88 | $ | 2.03 | $ | 0.19 | $ | 0.90 | $ | 1.09 | ||||||||||
| Weighted average common shares outstanding: |
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| Basic |
1,142 | 937 | 616 | 621 | 628 | |||||||||||||||
| Diluted |
1,146 | 940 | 618 | 622 | 629 | |||||||||||||||
2
SUPPLEMENTAL INFORMATION FOR CONSOLIDATED STATEMENTS OF EARNINGS
(1) OIL, GAS AND NGL DERIVATIVES
| (in millions) | 2026 | 2025 | ||||||||||||||||||
| Quarter 3 | Quarter 2 | Quarter 1 | Quarter 4 | Quarter 3 | ||||||||||||||||
| Derivative cash settlements |
$ | (185 | ) | $ | (116 | ) | $ | (57 | ) | $ | 125 | $ | 50 | |||||||
| Derivative valuation changes |
(729 | ) | 530 | (644 | ) | 59 | 30 | |||||||||||||
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| Oil, gas and NGL derivatives |
$ | (914 | ) | $ | 414 | $ | (701 | ) | $ | 184 | $ | 80 | ||||||||
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(2) PRODUCTION EXPENSES
| (in millions) | 2026 | 2025 | ||||||||||||||||||
| Quarter 3 | Quarter 2 | Quarter 1 | Quarter 4 | Quarter 3 | ||||||||||||||||
| Lease operating expense |
$ | 764 | $ | 626 | $ | 486 | $ | 479 | $ | 481 | ||||||||||
| Gathering, processing & transportation |
490 | 391 | 191 | 195 | 213 | |||||||||||||||
| Production taxes |
376 | 357 | 205 | 172 | 184 | |||||||||||||||
| Property taxes |
21 | 19 | 12 | 15 | 17 | |||||||||||||||
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| Production expenses |
$ | 1,651 | $ | 1,393 | $ | 894 | $ | 861 | $ | 895 | ||||||||||
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(3) FINANCING COSTS, NET
| (in millions) | 2026 | 2025 | ||||||||||||||||||
| Quarter 3 | Quarter 2 | Quarter 1 | Quarter 4 | Quarter 3 | ||||||||||||||||
| Interest based on debt outstanding |
$ | 150 | $ | 144 | $ | 118 | $ | 119 | $ | 125 | ||||||||||
| Interest income |
(7 | ) | (22 | ) | (14 | ) | (14 | ) | (18 | ) | ||||||||||
| Other |
4 | 3 | 5 | 2 | 2 | |||||||||||||||
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| Financing costs, net |
$ | 147 | $ | 125 | $ | 109 | $ | 107 | $ | 109 | ||||||||||
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(4) INCOME TAX EXPENSE
| (in millions) | 2026 | 2025 | ||||||||||||||||||
| Quarter 3 | Quarter 2 | Quarter 1 | Quarter 4 | Quarter 3 | ||||||||||||||||
| Current expense (benefit) |
$ | 276 | $ | 378 | $ | (188 | ) | $ | 23 | $ | (44 | ) | ||||||||
| Deferred expense (benefit) |
(32 | ) | 95 | 234 | 162 | 263 | ||||||||||||||
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| Income tax expense (1) |
$ | 244 | $ | 473 | $ | 46 | $ | 185 | $ | 219 | ||||||||||
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| (1) | Devon recognized a one-time current tax benefit of approximately $218 million in Q1 2026 related to new tax guidance under the One Big Beautiful Bill Act. With that benefit pulled into Q1 and higher oil pricing, Q3’s 2026 current tax rate reflects a normalized go-forward run-rate. |
3
CONSOLIDATED BALANCE SHEETS
| (in millions) | 2026 | 2025 | ||||||||||||||||||
| Quarter 3 | Quarter 2 | Quarter 1 | Quarter 4 | Quarter 3 | ||||||||||||||||
| Current assets: |
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| Cash, cash equivalents and restricted cash |
$ | 413 | $ | 1,009 | $ | 1,815 | $ | 1,434 | $ | 1,278 | ||||||||||
| Accounts receivable |
3,539 | 3,162 | 2,250 | 1,792 | 1,835 | |||||||||||||||
| Inventory |
382 | 356 | 319 | 336 | 361 | |||||||||||||||
| Other current assets |
490 | 522 | 378 | 444 | 393 | |||||||||||||||
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| Total current assets |
4,824 | 5,049 | 4,762 | 4,006 | 3,867 | |||||||||||||||
| Oil and gas property and equipment, based on successful efforts accounting, net |
60,970 | 60,899 | 23,912 | 23,731 | 23,591 | |||||||||||||||
| Other property and equipment, net |
2,212 | 2,199 | 1,686 | 1,688 | 1,698 | |||||||||||||||
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| Total property and equipment, net |
63,182 | 63,098 | 25,598 | 25,419 | 25,289 | |||||||||||||||
| Goodwill |
753 | 753 | 753 | 753 | 753 | |||||||||||||||
| Right-of-use assets |
566 | 509 | 312 | 299 | 247 | |||||||||||||||
| Investments |
1,074 | 992 | 715 | 727 | 679 | |||||||||||||||
| Other long-term assets |
415 | 492 | 403 | 395 | 386 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total assets |
$ | 70,814 | $ | 70,893 | $ | 32,543 | $ | 31,599 | $ | 31,221 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Current liabilities: |
||||||||||||||||||||
| Accounts payable |
$ | 1,637 | $ | 1,626 | $ | 975 | $ | 790 | $ | 934 | ||||||||||
| Revenues and royalties payable |
2,375 | 2,451 | 1,678 | 1,491 | 1,464 | |||||||||||||||
| Short-term debt |
822 | 1,497 | 999 | 998 | 998 | |||||||||||||||
| Other current liabilities |
2,015 | 1,466 | 1,082 | 807 | 646 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total current liabilities |
6,849 | 7,040 | 4,734 | 4,086 | 4,042 | |||||||||||||||
| Long-term debt |
9,814 | 9,891 | 7,387 | 7,391 | 7,393 | |||||||||||||||
| Lease liabilities |
404 | 356 | 206 | 197 | 158 | |||||||||||||||
| Asset retirement obligations |
1,188 | 1,169 | 986 | 863 | 850 | |||||||||||||||
| Other long-term liabilities |
931 | 1,043 | 940 | 907 | 962 | |||||||||||||||
| Deferred income taxes |
9,615 | 9,647 | 2,862 | 2,627 | 2,466 | |||||||||||||||
| Stockholders’ equity: |
||||||||||||||||||||
| Common stock |
114 | 115 | 62 | 62 | 63 | |||||||||||||||
| Additional paid-in capital |
29,673 | 30,045 | 5,316 | 5,388 | 5,618 | |||||||||||||||
| Retained earnings |
12,352 | 11,712 | 10,171 | 10,200 | 9,788 | |||||||||||||||
| Accumulated other comprehensive loss |
(119 | ) | (120 | ) | (121 | ) | (122 | ) | (119 | ) | ||||||||||
| Treasury stock |
(7 | ) | (5 | ) | — | — | — | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total stockholders’ equity |
42,013 | 41,747 | 15,428 | 15,528 | 15,350 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total liabilities and equity |
$ | 70,814 | $ | 70,893 | $ | 32,543 | $ | 31,599 | $ | 31,221 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
4
CONSOLIDATED STATEMENTS OF CASH FLOWS
| (in millions) | 2026 | 2025 | ||||||||||||||||||
| Quarter 3 | Quarter 2 | Quarter 1 | Quarter 4 | Quarter 3 | ||||||||||||||||
| Cash flows from operating activities: |
||||||||||||||||||||
| Net earnings |
$ | 1,008 | $ | 1,911 | $ | 120 | $ | 562 | $ | 693 | ||||||||||
| Adjustments to reconcile net earnings to net cash from operating activities: |
||||||||||||||||||||
| Depreciation, depletion and amortization |
1,684 | 1,416 | 904 | 890 | 879 | |||||||||||||||
| Leasehold impairments |
7 | 9 | 3 | (2 | ) | 1 | ||||||||||||||
| Accretion of liabilities |
8 | 7 | 4 | 3 | 4 | |||||||||||||||
| Total (gains) losses on commodity derivatives |
914 | (414 | ) | 701 | (184 | ) | (80 | ) | ||||||||||||
| Cash settlements on commodity derivatives |
(185 | ) | (116 | ) | (57 | ) | 125 | 50 | ||||||||||||
| (Gains) losses on asset dispositions |
— | (25 | ) | 1 | (1 | ) | (37 | ) | ||||||||||||
| Deferred income tax expense (benefit) |
(32 | ) | 95 | 234 | 162 | 263 | ||||||||||||||
| Share-based compensation |
51 | 71 | 22 | 22 | 24 | |||||||||||||||
| Other |
10 | (204 | ) | 22 | (5 | ) | (45 | ) | ||||||||||||
| Changes in assets and liabilities, net |
(657 | ) | 924 | (299 | ) | (38 | ) | (62 | ) | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Net cash from operating activities |
2,808 | 3,674 | 1,655 | 1,534 | 1,690 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Cash flows from investing activities: |
||||||||||||||||||||
| Cash acquired in Merger |
— | 581 | — | — | — | |||||||||||||||
| Capital expenditures |
(1,464 | ) | (1,318 | ) | (839 | ) | (832 | ) | (870 | ) | ||||||||||
| Acquisitions of property and equipment |
(320 | ) | (2,729 | ) | (190 | ) | (101 | ) | (197 | ) | ||||||||||
| Divestitures of property and equipment and investments |
6 | 88 | 2 | 2 | 38 | |||||||||||||||
| Distributions from investments |
10 | 13 | 9 | 11 | 7 | |||||||||||||||
| Contributions to investments and other |
(95 | ) | (10 | ) | (2 | ) | (50 | ) | (2 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Net cash from investing activities |
(1,863 | ) | (3,375 | ) | (1,020 | ) | (970 | ) | (1,024 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Cash flows from financing activities: |
||||||||||||||||||||
| Repayments of long-term debt |
(750 | ) | (500 | ) | — | — | (485 | ) | ||||||||||||
| Repurchases of common stock |
(414 | ) | (197 | ) | (69 | ) | (250 | ) | (250 | ) | ||||||||||
| Dividends paid on common stock |
(366 | ) | (366 | ) | (155 | ) | (149 | ) | (151 | ) | ||||||||||
| Acquisition of noncontrolling interests |
— | — | — | — | (260 | ) | ||||||||||||||
| Repayment of finance leases |
(3 | ) | (2 | ) | (3 | ) | (8 | ) | — | |||||||||||
| Shares exchanged for tax withholdings and other |
(9 | ) | (44 | ) | (27 | ) | — | (1 | ) | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Net cash from financing activities |
(1,542 | ) | (1,109 | ) | (254 | ) | (407 | ) | (1,147 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Effect of exchange rate changes on cash |
1 | 4 | — | (1 | ) | — | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Net change in cash, cash equivalents and restricted cash |
(596 | ) | (806 | ) | 381 | 156 | (481 | ) | ||||||||||||
| Cash, cash equivalents and restricted cash at beginning of period |
1,009 | 1,815 | 1,434 | 1,278 | 1,759 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Cash, cash equivalents and restricted cash at end of period |
$ | 413 | $ | 1,009 | $ | 1,815 | $ | 1,434 | $ | 1,278 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Reconciliation of cash, cash equivalents and restricted cash: |
||||||||||||||||||||
| Cash and cash equivalents |
$ | 352 | $ | 950 | $ | 1,763 | $ | 1,384 | $ | 1,229 | ||||||||||
| Restricted cash |
61 | 59 | 52 | 50 | 49 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total cash, cash equivalents and restricted cash |
$ | 413 | $ | 1,009 | $ | 1,815 | $ | 1,434 | $ | 1,278 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
5
PRODUCTION
| 2026 | 2025 | |||||||||||||||||||
| Quarter 3 | Quarter 2 | Quarter 1 | Quarter 4 | Quarter 3 | ||||||||||||||||
| Oil (MBbls/d) |
||||||||||||||||||||
| Permian |
389 | 329 | 225 | 234 | 223 | |||||||||||||||
| Rockies |
101 | 105 | 103 | 102 | 111 | |||||||||||||||
| Eagle Ford |
37 | 48 | 43 | 39 | 41 | |||||||||||||||
| Anadarko |
22 | 17 | 12 | 12 | 12 | |||||||||||||||
| Marcellus |
— | — | — | — | — | |||||||||||||||
| Other |
4 | 4 | 4 | 3 | 3 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total |
553 | 503 | 387 | 390 | 390 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Natural gas liquids (MBbls/d) |
||||||||||||||||||||
| Permian |
256 | 206 | 137 | 146 | 134 | |||||||||||||||
| Rockies |
48 | 47 | 46 | 51 | 53 | |||||||||||||||
| Eagle Ford |
13 | 15 | 11 | 10 | 11 | |||||||||||||||
| Anadarko |
65 | 45 | 24 | 24 | 30 | |||||||||||||||
| Marcellus |
— | — | — | — | — | |||||||||||||||
| Other |
— | 1 | — | — | — | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total |
382 | 314 | 218 | 231 | 228 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Gas (MMcf/d) |
||||||||||||||||||||
| Permian |
1,543 | 1,274 | 831 | 848 | 834 | |||||||||||||||
| Rockies |
230 | 237 | 230 | 234 | 245 | |||||||||||||||
| Eagle Ford |
69 | 85 | 76 | 56 | 70 | |||||||||||||||
| Anadarko |
538 | 396 | 235 | 246 | 261 | |||||||||||||||
| Marcellus |
2,018 | 1,258 | — | — | — | |||||||||||||||
| Other |
2 | 2 | 1 | 1 | — | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total |
4,400 | 3,252 | 1,373 | 1,385 | 1,410 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total oil equivalent (MBoe/d) |
||||||||||||||||||||
| Permian |
901 | 748 | 501 | 521 | 496 | |||||||||||||||
| Rockies |
187 | 192 | 187 | 192 | 205 | |||||||||||||||
| Eagle Ford |
61 | 77 | 66 | 57 | 63 | |||||||||||||||
| Anadarko |
177 | 128 | 75 | 77 | 85 | |||||||||||||||
| Marcellus |
336 | 210 | — | — | — | |||||||||||||||
| Other |
6 | 4 | 4 | 4 | 4 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total |
1,668 | 1,359 | 833 | 851 | 853 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
6
CAPITAL EXPENDITURES
| (in millions) | 2026 | 2025 | ||||||||||||||||||
| Quarter 3 | Quarter 2 | Quarter 1 | Quarter 4 | Quarter 3 | ||||||||||||||||
| Permian |
$ | 937 | $ | 731 | $ | 451 | $ | 454 | $ | 465 | ||||||||||
| Rockies |
203 | 196 | 218 | 231 | 191 | |||||||||||||||
| Eagle Ford |
112 | 97 | 120 | 137 | 141 | |||||||||||||||
| Anadarko |
83 | 129 | 38 | 32 | 25 | |||||||||||||||
| Marcellus |
98 | 70 | — | — | — | |||||||||||||||
| Other |
7 | 3 | 1 | 2 | 1 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total upstream capital |
$ | 1,440 | $ | 1,226 | $ | 828 | $ | 856 | $ | 823 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Midstream and Corporate |
56 | 43 | 20 | 27 | 36 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Capital expenditures |
$ | 1,496 | $ | 1,269 | $ | 848 | $ | 883 | $ | 859 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Acquisitions |
320 | 2,729 | 151 | 141 | 197 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total capital |
$ | 1,816 | $ | 3,998 | $ | 999 | $ | 1,024 | $ | 1,056 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
SUPPLEMENTAL INFORMATION FOR CAPITAL EXPENDITURES
GROSS OPERATED SPUDS
| 2026 | 2025 | |||||||||||||||||||
| Quarter 3 | Quarter 2 | Quarter 1 | Quarter 4 | Quarter 3 | ||||||||||||||||
| Permian |
103 | 103 | 57 | 48 | 60 | |||||||||||||||
| Rockies |
29 | 26 | 27 | 26 | 21 | |||||||||||||||
| Eagle Ford |
6 | 7 | 12 | 18 | 24 | |||||||||||||||
| Anadarko |
6 | 11 | 7 | 8 | 10 | |||||||||||||||
| Marcellus |
— | 3 | — | — | — | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total |
144 | 150 | 103 | 100 | 115 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
GROSS OPERATED WELLS TIED-IN
| 2026 | 2025 | |||||||||||||||||||
| Quarter 3 | Quarter 2 | Quarter 1 | Quarter 4 | Quarter 3 | ||||||||||||||||
| Permian |
100 | 88 | 53 | 45 | 61 | |||||||||||||||
| Rockies |
24 | 31 | 33 | 17 | 22 | |||||||||||||||
| Eagle Ford |
6 | 14 | 24 | 23 | 10 | |||||||||||||||
| Anadarko |
18 | 13 | — | 10 | 9 | |||||||||||||||
| Marcellus |
5 | 11 | — | — | — | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total |
153 | 157 | 110 | 95 | 102 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
NET OPERATED WELLS TIED-IN
| 2026 | 2025 | |||||||||||||||||||
| Quarter 3 | Quarter 2 | Quarter 1 | Quarter 4 | Quarter 3 | ||||||||||||||||
| Permian |
84 | 67 | 49 | 35 | 40 | |||||||||||||||
| Rockies |
17 | 21 | 27 | 14 | 18 | |||||||||||||||
| Eagle Ford |
6 | 14 | 23 | 19 | 10 | |||||||||||||||
| Anadarko |
12 | 7 | — | 4 | 5 | |||||||||||||||
| Marcellus |
5 | 11 | — | — | — | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total |
124 | 120 | 99 | 72 | 73 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| AVERAGE LATERAL LENGTH |
2026 | 2025 | ||||||||||||||||||||||||||||||||||
| (based on wells tied-in) | Quarter 3 | Quarter 2 | Quarter 1 | Quarter 4 | Quarter 3 | |||||||||||||||||||||||||||||||
| Permian |
10,700’ | 10,600’ | 11,000’ | 11,800’ | 11,100’ | |||||||||||||||||||||||||||||||
| Rockies |
12,300’ | 11,500’ | 12,500’ | 11,600’ | 13,000’ | |||||||||||||||||||||||||||||||
| Eagle Ford |
10,800’ | 8,900’ | 7,000’ | 5,900’ | 7,200’ | |||||||||||||||||||||||||||||||
| Anadarko |
11,800’ | 10,000’ | — | 10,100’ | 10,000’ | |||||||||||||||||||||||||||||||
| Marcellus |
20,100’ | 14,000’ | — | — | — | |||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
| Total |
11,400’ | 10,800’ | 10,500’ | 10,200’ | 10,300’ | |||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
7
REALIZED PRICING
BENCHMARK PRICES
| (average prices) | 2026 | 2025 | ||||||||||||||||||
| Quarter 3 | Quarter 2 | Quarter 1 | Quarter 4 | Quarter 3 | ||||||||||||||||
| Oil ($/Bbl) - West Texas Intermediate (Cushing) |
$ | 85.63 | $ | 92.47 | $ | 72.10 | $ | 59.09 | $ | 64.92 | ||||||||||
| Natural Gas ($/Mcf) - Henry Hub |
$ | 2.96 | $ | 2.90 | $ | 5.05 | $ | 3.55 | $ | 3.07 | ||||||||||
| NGL ($/Bbl) - Mont Belvieu Blended |
$ | 29.55 | $ | 29.23 | $ | 24.86 | $ | 23.67 | $ | 24.25 | ||||||||||
|
REALIZED PRICES
|
||||||||||||||||||||
| 2026 | 2025 | |||||||||||||||||||
| Quarter 3 | Quarter 2 | Quarter 1 | Quarter 4 | Quarter 3 | ||||||||||||||||
| Oil (Per Bbl) |
||||||||||||||||||||
| Permian |
$ | 84.88 | $ | 96.08 | $ | 70.89 | $ | 57.94 | $ | 63.89 | ||||||||||
| Rockies |
83.41 | 92.01 | 67.14 | 54.99 | 61.14 | |||||||||||||||
| Eagle Ford |
84.91 | 95.89 | 68.98 | 58.18 | 64.87 | |||||||||||||||
| Anadarko |
85.50 | 94.92 | 70.24 | 57.46 | 63.68 | |||||||||||||||
| Marcellus |
— | — | — | — | — | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Realized price without hedges |
84.69 | 95.10 | 69.66 | 57.19 | 63.21 | |||||||||||||||
| Cash settlements |
(5.15 | ) | (7.01 | ) | (1.72 | ) | 2.47 | 0.78 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Realized price, including cash settlements |
$ | 79.54 | $ | 88.09 | $ | 67.94 | $ | 59.66 | $ | 63.99 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Natural gas liquids (Per Bbl) |
||||||||||||||||||||
| Permian |
$ | 24.77 | $ | 23.29 | $ | 19.60 | $ | 18.42 | $ | 18.25 | ||||||||||
| Rockies |
16.30 | 15.11 | 7.83 | 9.02 | 10.26 | |||||||||||||||
| Eagle Ford |
27.11 | 27.44 | 24.54 | 22.28 | 22.85 | |||||||||||||||
| Anadarko |
24.71 | 26.17 | 23.23 | 21.50 | 20.94 | |||||||||||||||
| Marcellus |
— | — | — | — | — | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Realized price without hedges |
23.81 | 22.70 | 17.80 | 16.86 | 17.01 | |||||||||||||||
| Cash settlements |
— | — | — | 0.23 | 0.17 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Realized price, including cash settlements |
$ | 23.81 | $ | 22.70 | $ | 17.80 | $ | 17.09 | $ | 17.18 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Gas (Per Mcf) |
||||||||||||||||||||
| Permian |
$ | 1.74 | $ | (2.03 | ) | $ | 0.73 | $ | 0.96 | $ | 1.50 | |||||||||
| Rockies |
(0.32 | ) | (0.64 | ) | 1.80 | 0.33 | (0.42 | ) | ||||||||||||
| Eagle Ford |
2.55 | 2.36 | 4.01 | 3.14 | 2.78 | |||||||||||||||
| Anadarko |
2.54 | 2.40 | 4.03 | 3.13 | 2.57 | |||||||||||||||
| Marcellus |
2.18 | 2.17 | — | — | — | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Realized price without hedges |
1.97 | 0.35 | 1.66 | 1.33 | 1.43 | |||||||||||||||
| Cash settlements |
0.19 | 0.70 | 0.02 | 0.25 | 0.15 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Realized price, including cash settlements |
$ | 2.16 | $ | 1.05 | $ | 1.68 | $ | 1.58 | $ | 1.58 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total oil equivalent (Per Boe) |
||||||||||||||||||||
| Permian |
$ | 46.59 | $ | 45.28 | $ | 38.44 | $ | 32.72 | $ | 36.18 | ||||||||||
| Rockies |
48.75 | 53.31 | 41.18 | 32.04 | 35.33 | |||||||||||||||
| Eagle Ford |
59.83 | 67.86 | 53.11 | 45.82 | 48.85 | |||||||||||||||
| Anadarko |
27.57 | 29.02 | 31.29 | 25.62 | 23.97 | |||||||||||||||
| Marcellus |
13.07 | 13.02 | — | — | — | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Realized price without hedges |
38.70 | 41.30 | 39.70 | 32.92 | 35.82 | |||||||||||||||
| Cash settlements |
(1.20 | ) | (0.94 | ) | (0.76 | ) | 1.60 | 0.64 | ||||||||||||
|
|
|
|
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| Realized price, including cash settlements |
$ | 37.50 | $ | 40.36 | $ | 38.94 | $ | 34.52 | $ | 36.46 | ||||||||||
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8
ASSET MARGINS
BENCHMARK PRICES
| (average prices) | 2026 | 2025 | ||||||||||||||||||
| Quarter 3 | Quarter 2 | Quarter 1 | Quarter 4 | Quarter 3 | ||||||||||||||||
| Oil ($/Bbl) - West Texas Intermediate (Cushing) |
$ | 85.63 | $ | 92.47 | $ | 72.10 | $ | 59.09 | $ | 64.92 | ||||||||||
| Natural Gas ($/Mcf) - Henry Hub |
$ | 2.96 | $ | 2.90 | $ | 5.05 | $ | 3.55 | $ | 3.07 | ||||||||||
| NGL ($/Bbl) - Mont Belvieu Blended |
$ | 29.55 | $ | 29.23 | $ | 24.86 | $ | 23.67 | $ | 24.25 | ||||||||||
| PER-UNIT CASH MARGIN BY ASSET (per Boe) |
||||||||||||||||||||
| 2026 | 2025 | |||||||||||||||||||
| Quarter 3 | Quarter 2 | Quarter 1 | Quarter 4 | Quarter 3 | ||||||||||||||||
| Permian |
||||||||||||||||||||
| Realized price |
$ | 46.59 | $ | 45.28 | $ | 38.44 | $ | 32.72 | $ | 36.18 | ||||||||||
| Lease operating expenses |
(5.70 | ) | (5.39 | ) | (5.19 | ) | (5.11 | ) | (5.38 | ) | ||||||||||
| Gathering, processing & transportation |
(2.60 | ) | (2.81 | ) | (2.57 | ) | (2.57 | ) | (2.94 | ) | ||||||||||
| Production & property taxes |
(3.34 | ) | (3.69 | ) | (2.91 | ) | (2.44 | ) | (2.52 | ) | ||||||||||
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| Field-level cash margin |
$ | 34.95 | $ | 33.39 | $ | 27.77 | $ | 22.60 | $ | 25.34 | ||||||||||
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| Rockies |
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| Realized price |
$ | 48.75 | $ | 53.31 | $ | 41.18 | $ | 32.04 | $ | 35.33 | ||||||||||
| Lease operating expenses |
(9.30 | ) | (8.87 | ) | (10.02 | ) | (9.05 | ) | (8.27 | ) | ||||||||||
| Gathering, processing & transportation |
(1.01 | ) | (1.03 | ) | (1.04 | ) | (1.03 | ) | (0.99 | ) | ||||||||||
| Production & property taxes |
(4.10 | ) | (4.43 | ) | (3.32 | ) | (2.64 | ) | (3.04 | ) | ||||||||||
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| Field-level cash margin |
$ | 34.34 | $ | 38.98 | $ | 26.80 | $ | 19.32 | $ | 23.03 | ||||||||||
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| Eagle Ford |
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| Realized price |
$ | 59.83 | $ | 67.86 | $ | 53.11 | $ | 45.82 | $ | 48.85 | ||||||||||
| Lease operating expenses |
(8.67 | ) | (6.72 | ) | (7.98 | ) | (7.90 | ) | (7.83 | ) | ||||||||||
| Gathering, processing & transportation |
(2.33 | ) | (2.34 | ) | (2.14 | ) | (1.98 | ) | (2.27 | ) | ||||||||||
| Production & property taxes |
(3.17 | ) | (3.41 | ) | (2.81 | ) | (2.43 | ) | (2.89 | ) | ||||||||||
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| Field-level cash margin |
$ | 45.66 | $ | 55.39 | $ | 40.18 | $ | 33.51 | $ | 35.86 | ||||||||||
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| Anadarko |
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| Realized price |
$ | 27.57 | $ | 29.02 | $ | 31.29 | $ | 25.62 | $ | 23.97 | ||||||||||
| Lease operating expenses |
(2.77 | ) | (3.18 | ) | (3.76 | ) | (3.19 | ) | (3.25 | ) | ||||||||||
| Gathering, processing & transportation |
(4.75 | ) | (5.45 | ) | (6.64 | ) | (6.19 | ) | (5.98 | ) | ||||||||||
| Production & property taxes |
(1.46 | ) | (1.55 | ) | (1.71 | ) | (1.22 | ) | (1.30 | ) | ||||||||||
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| Field-level cash margin |
$ | 18.59 | $ | 18.84 | $ | 19.18 | $ | 15.02 | $ | 13.44 | ||||||||||
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| Marcellus |
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| Realized price |
$ | 13.07 | $ | 13.02 | — | — | — | |||||||||||||
| Lease operating expenses |
(0.82 | ) | (0.59 | ) | — | — | — | |||||||||||||
| Gathering, processing & transportation |
(5.40 | ) | (5.36 | ) | — | — | — | |||||||||||||
| Production & property taxes |
(0.16 | ) | (0.18 | ) | — | — | — | |||||||||||||
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| Field-level cash margin |
$ | 6.69 | $ | 6.89 | — | — | — | |||||||||||||
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| Devon - Total |
||||||||||||||||||||
| Realized price |
$ | 38.70 | $ | 41.30 | $ | 39.70 | $ | 32.92 | $ | 35.82 | ||||||||||
| Lease operating expenses |
(4.98 | ) | (5.06 | ) | (6.48 | ) | (6.11 | ) | (6.14 | ) | ||||||||||
| Gathering, processing & transportation |
(3.20 | ) | (3.16 | ) | (2.54 | ) | (2.49 | ) | (2.71 | ) | ||||||||||
| Production & property taxes |
(2.58 | ) | (3.05 | ) | (2.90 | ) | (2.39 | ) | (2.56 | ) | ||||||||||
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| Field-level cash margin |
$ | 27.94 | $ | 30.03 | $ | 27.78 | $ | 21.93 | $ | 24.41 | ||||||||||
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9
NON-GAAP MEASURES
(all monetary values in millions, except per share amounts)
Devon’s earnings materials include non-GAAP financial measures. These non-GAAP measures are not alternatives to GAAP measures, and you should not consider these non-GAAP measures in isolation or as a substitute for analysis of our results as reported under GAAP. Below is additional disclosure regarding each of the non-GAAP measures used in the earnings materials, including reconciliations to their most directly comparable GAAP measure.
The earnings materials may include forward-looking non-GAAP measures. The company is unable to provide reconciliations of these forward-looking non-GAAP measures, because components of the calculations are inherently unpredictable, such as changes to current assets and liabilities, the timing of changes in capital accruals, unknown future events and estimating certain future GAAP measures. The inability to reliably quantify certain components of the calculation would significantly affect the usefulness and accuracy of a reconciliation.
CORE EARNINGS
Devon’s reported net earnings include items of income and expense that are typically excluded by securities analysts in their published estimates of the company’s financial results. Accordingly, the company also uses the measures of core earnings and core earnings per share attributable to Devon. Devon believes these non-GAAP measures facilitate comparisons of its performance to earnings estimates published by securities analysts. Devon also believes these non-GAAP measures can facilitate comparisons of its performance between periods and to the performance of its peers. The following tables summarize the effects of these items on third-quarter 2026 and second-quarter 2026 earnings.
| Quarter Ended September 30, 2026 | ||||||||||||
| Before-tax | After-tax | Per Diluted Share |
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| Total |
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| Earnings (GAAP) |
$ | 1,252 | $ | 1,008 | $ | 0.88 | ||||||
| Adjustments: |
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| Asset and exploration impairments |
9 | 7 | 0.01 | |||||||||
| Fair value changes in financial instruments |
729 | 563 | 0.48 | |||||||||
| Restructuring and transaction costs |
69 | 55 | 0.05 | |||||||||
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| Core earnings (Non-GAAP) |
$ | 2,059 | $ | 1,633 | $ | 1.42 | ||||||
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| Quarter Ended June 30, 2026 | ||||||||||||
| Before-tax | After-tax | Per Diluted Share |
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| Total |
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| Earnings (GAAP) |
$ | 2,384 | $ | 1,911 | $ | 2.03 | ||||||
| Adjustments: |
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| Asset dispositions |
(25 | ) | (20 | ) | (0.02 | ) | ||||||
| Asset and exploration impairments |
8 | 6 | 0.01 | |||||||||
| Deferred tax asset valuation allowance |
— | (56 | ) | (0.06 | ) | |||||||
| Fair value changes in financial instruments |
(528 | ) | (408 | ) | (0.43 | ) | ||||||
| Restructuring and transaction costs |
246 | 201 | 0.21 | |||||||||
| Gain on equity investment |
(201 | ) | (155 | ) | (0.17 | ) | ||||||
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| Core earnings (Non-GAAP) |
$ | 1,884 | $ | 1,479 | $ | 1.57 | ||||||
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10
EBITDAX
Devon believes EBITDAX provides information useful in assessing operating and financial performance across periods. Devon computes EBITDAX as net earnings before financing costs, net; income tax expense; exploration expenses; depreciation, depletion and amortization; asset disposition gains and losses; non-cash share-based compensation; non-cash valuation changes for derivatives and financial instruments; restructuring and transaction costs; gain on equity investments; accretion on discounted liabilities; and other items not related to normal operations. EBITDAX as defined by Devon may not be comparable to similarly titled measures used by other companies.
| Q3 ‘26 | Q2 ‘26 | Q1 ‘26 | Q4 ‘25 | Q3 Annualized |
Q3 ‘25 | |||||||||||||||||||
| Net earnings (GAAP) |
$ | 1,008 | $ | 1,911 | $ | 120 | $ | 562 | $ | 4,032 | $ | 693 | ||||||||||||
| Financing costs, net |
147 | 125 | 109 | 107 | 588 | 109 | ||||||||||||||||||
| Income tax expense |
244 | 473 | 46 | 185 | 976 | 219 | ||||||||||||||||||
| Exploration expenses |
14 | 16 | 25 | 5 | 56 | 8 | ||||||||||||||||||
| Depreciation, depletion and amortization |
1,684 | 1,416 | 904 | 890 | 6,736 | 879 | ||||||||||||||||||
| Asset dispositions |
— | (25 | ) | 1 | (1 | ) | — | (37 | ) | |||||||||||||||
| Share-based compensation |
40 | 33 | 22 | 22 | 160 | 21 | ||||||||||||||||||
| Derivative & financial instrument non-cash val. changes |
729 | (530 | ) | 644 | (59 | ) | 2,916 | (30 | ) | |||||||||||||||
| Restructuring and transaction costs |
69 | 246 | 19 | — | 276 | 9 | ||||||||||||||||||
| Gain on equity investment |
— | (201 | ) | — | — | — | — | |||||||||||||||||
| Accretion on discounted liabilities and other |
8 | 14 | 17 | (12 | ) | 32 | (11 | ) | ||||||||||||||||
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| EBITDAX (Non-GAAP) |
$ | 3,943 | $ | 3,478 | $ | 1,907 | $ | 1,699 | $ | 15,772 | $ | 1,860 | ||||||||||||
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11
NET DEBT
Devon defines net debt as debt (includes short-term and long-term debt) less cash, cash equivalents and restricted cash. Devon believes that netting these sources of cash against debt provides a clearer picture of the future demands on cash from Devon to repay debt.
| 2026 | 2025 | |||||||||||||||||||
| Quarter 3 | Quarter 2 | Quarter 1 | Quarter 4 | Quarter 3 | ||||||||||||||||
| Total debt (GAAP) |
$ | 10,636 | $ | 11,388 | $ | 8,386 | $ | 8,389 | $ | 8,391 | ||||||||||
| Less: |
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| Cash, cash equivalents and restricted cash |
(413 | ) | (1,009 | ) | (1,815 | ) | (1,434 | ) | (1,278 | ) | ||||||||||
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| Net debt (Non-GAAP) |
$ | 10,223 | $ | 10,379 | $ | 6,571 | $ | 6,955 | $ | 7,113 | ||||||||||
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NET DEBT-TO-EBITDAX
Devon defines net debt-to-EBITDAX as net debt divided by an annualized EBITDAX measure. Devon believes this ratio provides information useful to investors in assessing the company’s credit position and debt leverage.
| 2026 | 2025 | |||||||||||||||||||
| Quarter 3 | Quarter 2 | Quarter 1 | Quarter 4 | Quarter 3 | ||||||||||||||||
| Net debt (Non-GAAP) |
$ | 10,223 | $ | 10,379 | $ | 6,571 | $ | 6,955 | $ | 7,113 | ||||||||||
| EBITDAX (Non-GAAP) (1) |
$ | 11,027 | $ | 8,944 | $ | 7,234 | $ | 7,413 | $ | 7,845 | ||||||||||
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| Net debt-to-EBITDAX (Non-GAAP) |
0.9 | 1.2 | 0.9 | 0.9 | 0.9 | |||||||||||||||
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| (1) | EBITDAX is an annualized measure using a trailing twelve-month calculation. |
ADJUSTED OPERATING CASH FLOW AND ADJUSTED FREE CASH FLOW
Devon defines adjusted operating cash flow as total operating cash flow before balance sheet changes adjusted for after-tax restructuring costs. Devon defines adjusted free cash flow as adjusted operating cash flow less accrued capital expenditures (excluding acquisitions). Devon believes these measures provide a useful measure of available cash generated by operating activities for other investing and financing activities.
| 2026 | 2025 | 2024 | ||||||||||||||||||
| Quarter 3 | Quarter 2 | Quarter 1 | Full Year | Full Year | ||||||||||||||||
| Total operating cash flow (GAAP) |
$ | 2,808 | $ | 3,674 | $ | 1,655 | $ | 6,711 | $ | 6,600 | ||||||||||
| Changes in assets and liabilities, net |
657 | (924 | ) | 299 | (151 | ) | 217 | |||||||||||||
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| Cash from operations before balance sheet changes (Non-GAAP) |
3,465 | 2,750 | 1,954 | 6,560 | 6,817 | |||||||||||||||
| Cash restructuring and transaction costs, net of tax (Non-GAAP) (1) |
41 | 174 | 19 | 26 | 9 | |||||||||||||||
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| Adjusted operating cash flow (Non-GAAP) |
3,506 | 2,924 | 1,973 | 6,586 | 6,826 | |||||||||||||||
| Capital expenditures (Accrued) (2) |
(1,496 | ) | (1,269 | ) | (848 | ) | (3,638 | ) | (3,631 | ) | ||||||||||
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| Adjusted free cash flow (Non-GAAP) |
$ | 2,010 | $ | 1,655 | $ | 1,125 | $ | 2,948 | $ | 3,195 | ||||||||||
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| (1) | Cash restructuring and transaction costs is net of the associated current tax benefit, after taking into account permanently non-deductible transaction costs. |
| (2) | Excludes acquisition capital. Q3 2026, Q2 2026, Q1 2026, full-year 2025 and full-year 2024 exclude acquisition costs of $320 million, $2,729 million, $151 million, $362 million and $243 million, respectively. |
REINVESTMENT RATE
Devon defines reinvestment rate as accrued capital expenditures (excluding acquisitions) divided by adjusted operating cash flow. Devon believes reinvestment rate provides useful information to our investors as an indicator of the capital demands of our business relative to the cash flow generated from normal business operations.
| 2026 | 2025 | 2024 | ||||||||||||||||||
| Quarter 3 | Quarter 2 | Quarter 1 | Full Year | Full Year | ||||||||||||||||
| Capital expenditures (Accrued) (1) |
$ | 1,496 | $ | 1,269 | $ | 848 | $ | 3,638 | $ | 3,631 | ||||||||||
| Adjusted operating cash flow (Non-GAAP) |
$ | 3,506 | $ | 2,924 | $ | 1,973 | $ | 6,586 | $ | 6,826 | ||||||||||
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| Reinvestment rate (Non-GAAP) |
43 | % | 43 | % | 43 | % | 55 | % | 53 | % | ||||||||||
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| (1) | Excludes acquisition capital. Q3 2026, Q2 2026, Q1 2026, full-year 2025 and full-year 2024 exclude acquisition costs of $320 million, $2,729 million, $151 million, $362 million and $243 million, respectively. |
12
| FOURTH-QUARTER 2026 GUIDANCE |
|
Note: Devon’s fourth-quarter 2026 guidance includes the Eagle Ford assets through the expected closing of the sale, expected in early 2027.
PRODUCTION GUIDANCE
| Quarter 4 | ||||||||
| Low | High | |||||||
| Oil (MBbls/d) |
550 | 560 | ||||||
| Natural gas liquids (MBbls/d) |
377 | 387 | ||||||
| Gas (MMcf/d) |
4,400 | 4,500 | ||||||
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| Total oil equivalent (MBoe/d) |
1,660 | 1,700 | ||||||
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CAPITAL EXPENDITURES GUIDANCE
| Quarter 4 | ||||||||
| (in millions) | Low | High | ||||||
| Upstream capital |
$ | 1,275 | $ | 1,350 | ||||
| Midstream and other capital |
15 | 45 | ||||||
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| Total capital |
$ | 1,290 | $ | 1,395 | ||||
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PRICE REALIZATIONS GUIDANCE
| Quarter 4 | ||||||||
| Low | High | |||||||
| Oil - % of WTI |
97 | % | 100 | % | ||||
| NGL - % of WTI |
23 | % | 26 | % | ||||
| Natural gas - % of Henry Hub |
60 | % | 70 | % | ||||
OTHER GUIDANCE ITEMS
| Quarter 4 | ||||||||
| ($ millions, except Boe and %) | Low | High | ||||||
| LOE per BOE |
$ | 4.90 | $ | 5.20 | ||||
| GP&T per BOE |
$ | 2.95 | $ | 3.15 | ||||
| Production and property taxes as % of upstream sales |
6.0 | % | 7.0 | % | ||||
| Exploration expenses |
$ | 5 | $ | 15 | ||||
| Depreciation, depletion and amortization per BOE |
$ | 10.75 | $ | 11.25 | ||||
| General and administrative expenses per BOE |
$ | 1.10 | $ | 1.30 | ||||
| Financing costs, net |
$ | 120 | $ | 150 | ||||
INCOME TAX GUIDANCE
| Quarter 4 | ||||||||
| (% of pre-tax earnings) | Low | High | ||||||
| Current income tax rate |
17 | % | 21 | % | ||||
| Effective income tax rate |
22 | % | 23 | % | ||||
1
| 2026, 2027 & 2028 HEDGING POSITIONS |
|
Oil Commodity Hedges
| Price Swaps | Price Collars | |||||||||||||||||||
| Period |
Volume (Bbls/d) | Weighted Average Price ($/Bbl) |
Volume (Bbls/d) |
Weighted Average Floor Price ($/Bbl) |
Weighted Average Ceiling Price ($/Bbl) |
|||||||||||||||
| Q4 2026 |
47,000 | $ | 72.01 | 87,000 | $ | 56.38 | $ | 73.98 | ||||||||||||
| Q1-Q4 2027 |
37,000 | $ | 73.59 | 94,466 | $ | 59.61 | $ | 88.38 | ||||||||||||
| Q1-Q4 2028 |
9,250 | $ | 73.59 | — | $ | — | $ | — | ||||||||||||
| Three Way Collars | ||||||||||||||||
| Period |
Volume (Bbls/d) | Weighted Average Floor Sold Price ($/ Bbl) |
Weighted Average Floor Purchased Price ($/Bbl) |
Weighted Average Ceiling Price ($/Bbl) |
||||||||||||
| Q4 2026 |
113,000 | $ | 49.36 | $ | 59.36 | $ | 72.36 | |||||||||
| Q1-Q4 2027 |
57,397 | $ | 47.25 | $ | 57.25 | $ | 73.14 | |||||||||
Oil Basis Swaps
| Period |
Index |
Volume (Bbls/d) |
Weighted Average Differential to WTI ($/Bbl) |
|||||||
| Q4 2026 |
WTI/NYMEX | 87,000 | $ | 0.96 | ||||||
| Q4 2026 |
Midland Sweet | 46,000 | $ | 1.10 | ||||||
| Q4 2026 |
WTI/Brent | 8,000 | $ | (5.66 | ) | |||||
| Q4 2026 |
NYMEX Roll | 113,000 | $ | 2.03 | ||||||
| Q1-Q4 2027 |
WTI/NYMEX | 32,466 | $ | 1.04 | ||||||
| Q1-Q4 2027 |
Magellan East Houston | 43,000 | $ | 1.83 | ||||||
| Q1-Q4 2027 |
Midland Sweet | 78,000 | $ | 1.05 | ||||||
| Q1-Q4 2027 |
NYMEX Roll | 16,575 | $ | 1.14 | ||||||
Natural Gas Commodity Hedges - Henry Hub
| Price Swaps | Price Collars | |||||||||||||||||||
| Period |
Volume (MMBtu/d) | Weighted Average Price ($/MMBtu) |
Volume (MMBtu/d) |
Weighted Average Floor Price ($/MMBtu) |
Weighted Average Ceiling Price ($/MMBtu) |
|||||||||||||||
| Q4 2026 |
247,500 | $ | 3.80 | 1,130,000 | $ | 3.36 | $ | 5.47 | ||||||||||||
| Q1-Q4 2027 |
— | $ | — | 490,000 | $ | 3.17 | $ | 5.33 | ||||||||||||
Natural Gas Basis Swaps
| Period |
Index |
Volume (MMBtu/d) | Weighted Average Differential to Henry Hub ($/MMBtu) |
|||||||
| Q4 2026 |
Houston Ship Channel | 50,000 | $ | (0.29 | ) | |||||
| Q4 2026 |
Transco Leidy | 250,000 | $ | (0.78 | ) | |||||
| Q4 2026 |
Transco Zone 6 Non-NY | 250,000 | $ | (0.16 | ) | |||||
| Q4 2026 |
WAHA | 350,000 | $ | (1.86 | ) | |||||
| Q1-Q4 2027 |
Transco Leidy | 47,500 | $ | (0.65 | ) | |||||
| Q1-Q4 2027 |
Transco Zone 6 Non-NY | 150,000 | $ | 0.35 | ||||||
| Q1-Q4 2027 |
WAHA | 135,041 | $ | (1.30 | ) | |||||
Devon’s oil derivatives settle against the average of the prompt month NYMEX West Texas Intermediate futures price. Devon’s natural gas derivatives settle against the Inside FERC first of the month Henry Hub index. Devon’s NGL derivatives settle against the average of the prompt month OPIS Mont Belvieu, Texas index. Commodity hedge positions are shown as of September 30, 2026.
2