Devon acquired the Williston Basin business of Grayson Mill for $5.0 billion, expected to increase volumes by approximately 110 MBoe/d in Q4 2024. The acquisition expands Devon's operating scale and production, delivering sustainable accretion to earnings and free cash flow.

Management reiterated its commitment to moderating production growth, emphasizing capital and operational efficiencies, and optimizing reinvestment rates to maximize free cash flow. This strategy prioritizes value creation and cash returns to shareholders.

Capital expenditures for the first nine months of 2024 totaled $2.719 billion, primarily related to oil and gas exploration and development operations. Capital investment program is driven by a disciplined allocation process focused on moderating production growth and maximizing returns.

Oil production totaled 335 MBbls/d in Q3 2024, exceeding the company's plan by 4%. This outperformance was primarily driven by strong results in the Delaware Basin.

Production expenses decreased during the third quarter of 2024 primarily due to cost efficiencies, lower workover activity and lower production taxes resulting from decreased oil prices.

Devon remains committed to capital discipline and delivering the objectives that underpin their current plan. Those objectives prioritize value creation through moderated capital investment and production growth, particularly with a view of the volatility in commodity prices, supply chain constraints and the economic uncertainty arising from inflation and geopolitical events.

The most uncertain and volatile variables for operating cash flow are the prices of oil, gas and NGLs. Prices are determined primarily by prevailing market conditions, which are influenced by regional and worldwide economic activity, weather and other highly variable factors.

The Company has been engaging with the EPA to resolve each of these matters, and Devon is actively negotiating a draft consent decree with the EPA and the Department of Justice with respect to the North Dakota NOV matter. If finalized, the consent decree may include monetary sanctions and obligations to complete mitigation projects and implement specific injunctive relief.

Pursuant to various sale agreements relating to divested businesses and assets, Devon has indemnified various purchasers against liabilities that they may incur with respect to the businesses and assets acquired from Devon. Depending upon the outcome of these bankruptcy proceedings, amounts available under decommissioning bonds and a cash security account and other factors, Devon may be required to perform or fund certain decommissioning obligations associated with the East Bay Field under state and federal regulations applicable to predecessor operators.

The Delaware Basin continues to be a core area for Devon, contributing a significant portion of its oil, gas, and NGL production. Oil production from the Delaware Basin was 227 MBbls/d in Q3 2024, representing 68% of total oil production.

The acquisition of the Williston Basin business of Grayson Mill is expected to increase Devon's production volumes and enhance its position in the market. The transaction is expected to increase volumes in 2025 by approximately 100 MBoe/d.

Devon is focused on cost efficiencies to mitigate the impact of cost inflation on its margins. Management expects to mitigate the impact of cost inflation through efficiencies gained from the scale of their operations as well as by leveraging long-standing relationships with their suppliers.

LOE and gathering, processing & transportation expenses increased for the first nine months of 2024 primarily due to increased activity.

Production expenses decreased during the third quarter of 2024 primarily due to cost efficiencies, lower workover activity and lower production taxes resulting from decreased oil prices.

Capital investment program is driven by a disciplined allocation process focused on moderating production growth and maximizing returns.

Devon committed to invest approximately $100 million in Fervo, a company that generates energy from geothermal wells. As of September 30, 2024, Devon has funded approximately $78 million of the commitment and expects to fund the remaining $22 million commitment in the fourth quarter of 2024.

The 10Q does not detail any specific R&D investments or technological capabilities. There is no mention of digital transformation efforts or intellectual property position.

The 10Q does not detail any specific innovation initiatives or investments.

Devon repurchased approximately 16.3 million shares of common stock for $744 million in Q3 2024. As of September 30, 2024, approximately 60% of the authorized $5.0 billion share repurchase program has been completed.

Devon paid dividends of $272 million in Q3 2024, including both fixed and variable components. Devon has raised its fixed dividend multiple times over the past two calendar years and most recently raised it by 10% from $0.20 to $0.22 per share in the first quarter of 2024.

In the third quarter of 2024, Devon issued $1.25 billion of 5.20% senior notes due 2034 and $1.0 billion of 5.75% senior notes due 2054. Additionally, in the third quarter of 2024, Devon borrowed $1.0 billion on the Term Loan. These debt issuances helped fund the Grayson Mill acquisition. In the third quarter of 2024, Devon retired $472 million of debt.

The 10Q does not detail any specific ESG initiatives or investments. There is no mention of environmental commitments and progress, social responsibility initiatives, or governance practices.

The Company has been engaging with the EPA to resolve each of these matters, and Devon is actively negotiating a draft consent decree with the EPA and the Department of Justice with respect to the North Dakota NOV matter. If finalized, the consent decree may include monetary sanctions and obligations to complete mitigation projects and implement specific injunctive relief.

Pursuant to various sale agreements relating to divested businesses and assets, Devon has indemnified various purchasers against liabilities that they may incur with respect to the businesses and assets acquired from Devon. Depending upon the outcome of these bankruptcy proceedings, amounts available under decommissioning bonds and a cash security account and other factors, Devon may be required to perform or fund certain decommissioning obligations associated with the East Bay Field under state and federal regulations applicable to predecessor operators.

From the second quarter of 2024 to the third quarter of 2024, realized prices contributed to a $182 million decrease in earnings. Unhedged oil and NGL prices decreased primarily due to lower WTI and Mont Belvieu index prices, respectively. Unhedged gas prices decreased primarily due to the expanded regional gas price differential in the Delaware Basin driven by infrastructure constraints.

Unhedged gas prices decreased primarily due to the expanded regional gas price differential in the Delaware Basin driven by infrastructure constraints.

The most uncertain and volatile variables for operating cash flow are the prices of the oil, gas and NGLs. Prices are determined primarily by prevailing market conditions, which are influenced by regional and worldwide economic activity, weather and other highly variable factors.