Income Tax Expense (Benefit)
Effective Income Tax Rate (EITR)
Components of Deferred Tax Assets and Liabilities
Deferred Tax Assets and Liabilities, Classification
Adjustments to Financial Statements: Removal of Deferred Taxes
Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)
Adjusted Net Profit Margin
Adjusted Total Asset Turnover
Adjusted Financial Leverage
Adjusted Return on Equity (ROE)
Adjusted Return on Assets (ROA)

Devon Energy Corp., income tax expense (benefit), continuing operations

US$ in millions

12 months ended:	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
U.S. federal	501)	10)	(219)	(3)	(14)
Various states	65)	9)	—)	(2)	(3)
Canada	(7)	(3)	—)	—)	(53)
Current income tax expense (benefit)	559)	16)	(219)	(5)	(70)
U.S. federal	1,090)	18)	(304)	8)	248)
Various states	82)	22)	(24)	(33)	63)
Canada	7)	9)	—)	—)	(85)
Deferred income tax expense (benefit)	1,179)	49)	(328)	(25)	226)
Income tax expense (benefit)	1,738)	65)	(547)	(30)	156)

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

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Item	Description	The company
Current income tax expense (benefit)	Amount of current income tax expense (benefit) pertaining to taxable income (loss) from continuing operations.	Devon Energy Corp. current income tax expense (benefit) increased from 2020 to 2021 and from 2021 to 2022.
Deferred income tax expense (benefit)	Amount of deferred income tax expense (benefit) pertaining to income (loss) from continuing operations.	Devon Energy Corp. deferred income tax expense (benefit) increased from 2020 to 2021 and from 2021 to 2022.
Income tax expense (benefit)	Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.	Devon Energy Corp. income tax expense (benefit) increased from 2020 to 2021 and from 2021 to 2022.

Devon Energy Corp., effective income tax rate (EITR) reconciliation

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
U.S. statutory income tax rate	21.00%	21.00%	21.00%	21.00%	21.00%
Change in tax legislation	0.00%	0.00%	4.00%	0.00%	0.00%
State income taxes	1.00%	1.00%	1.00%	24.00%	5.00%
Change in unrecognized tax benefits	0.00%	0.00%	0.00%	-13.00%	-2.00%
Audit settlements	0.00%	0.00%	0.00%	15.00%	-2.00%
Other	0.00%	2.00%	-1.00%	-19.00%	2.00%
Deferred tax asset valuation allowance	0.00%	-22.00%	-7.00%	0.00%	0.00%
Effective income tax rate	22.00%	2.00%	18.00%	28.00%	24.00%

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

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Item	Description	The company
Effective income tax rate	Percentage of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.	Devon Energy Corp. effective income tax rate decreased from 2020 to 2021 but then increased from 2021 to 2022 exceeding 2020 level.

Devon Energy Corp., components of deferred tax assets and liabilities

US$ in millions

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Net operating loss carryforwards	526)	1,075)	238)	306)	287)
Capital loss carryforwards	523)	559)	547)	—)	609)
Accrued liabilities	209)	262)	125)	35)	50)
Fair value of derivative financial instruments	—)	129)	33)	—)	—)
Asset retirement obligation	119)	109)	94)	123)	300)
Investment in subsidiary	—)	—)	441)	—)	—)
Other, including tax credits	14)	138)	106)	105)	131)
Deferred tax assets before valuation allowance	1,391)	2,272)	1,584)	569)	1,377)
Valuation allowance	(814)	(893)	(1,355)	(106)	(640)
Net deferred tax assets	577)	1,379)	229)	463)	737)
Property and equipment	(1,969)	(1,630)	(213)	(800)	(1,473)
Fair value of derivative financial instruments	(33)	—)	—)	—)	—)
Other	(38)	(29)	—)	(4)	(141)
Deferred tax liabilities	(2,040)	(1,659)	(213)	(804)	(1,614)
Net deferred tax asset (liability)	(1,463)	(280)	16)	(341)	(877)

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

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Item	Description	The company
Deferred tax assets before valuation allowance	Amount before allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards.	Devon Energy Corp. deferred tax assets before valuation allowance increased from 2020 to 2021 but then decreased significantly from 2021 to 2022.
Net deferred tax assets	Amount after allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards.	Devon Energy Corp. net deferred tax assets increased from 2020 to 2021 but then slightly decreased from 2021 to 2022 not reaching 2020 level.
Net deferred tax asset (liability)	Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, without jurisdictional netting.	Devon Energy Corp. net deferred tax asset (liability) decreased from 2020 to 2021 and from 2021 to 2022.

Devon Energy Corp., deferred tax assets and liabilities, classification

US$ in millions

		Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
	Deferred tax assets	—)	7)	16)	—)	—)
	Deferred tax liabilities	1,463)	287)	—)	341)	877)

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

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Item	Description	The company
Deferred tax assets	Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, with jurisdictional netting and classified as noncurrent.	Devon Energy Corp. deferred tax assets decreased from 2020 to 2021 and from 2021 to 2022.
Deferred tax liabilities	Amount, after deferred tax asset, of deferred tax liability attributable to taxable differences, with jurisdictional netting and classified as noncurrent.	Devon Energy Corp. deferred tax liabilities increased from 2020 to 2021 and from 2021 to 2022.

Devon Energy Corp., adjustments to financial statements

US$ in millions

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Adjustment to Total Assets
Total assets (as reported)	23,721)	21,025)	9,912)	13,717)	19,566)
Less: Noncurrent deferred tax assets, net	—)	7)	16)	—)	—)
Total assets (adjusted)	23,721)	21,018)	9,896)	13,717)	19,566)
Adjustment to Total Liabilities
Total liabilities (as reported)	12,425)	11,626)	6,893)	7,797)	10,380)
Less: Noncurrent deferred tax liabilities, net	1,463)	287)	—)	341)	877)
Total liabilities (adjusted)	10,962)	11,339)	6,893)	7,456)	9,503)
Adjustment to Stockholders’ Equity Attributable To Devon
Stockholders’ equity attributable to Devon (as reported)	11,167)	9,262)	2,885)	5,802)	9,186)
Less: Net deferred tax assets (liabilities)	(1,463)	(280)	16)	(341)	(877)
Stockholders’ equity attributable to Devon (adjusted)	12,630)	9,542)	2,869)	6,143)	10,063)
Adjustment to Net Earnings (loss) Attributable To Devon
Net earnings (loss) attributable to Devon (as reported)	6,015)	2,813)	(2,680)	(355)	3,064)
Add: Deferred income tax expense (benefit)	1,179)	49)	(328)	(25)	226)
Net earnings (loss) attributable to Devon (adjusted)	7,194)	2,862)	(3,008)	(380)	3,290)

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

Devon Energy Corp., Financial Data: Reported vs. Adjusted

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Devon Energy Corp., adjusted financial ratios

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Net Profit Margin
Reported net profit margin	31.38%	23.05%	-55.51%	-5.71%	28.54%
Adjusted net profit margin	37.53%	23.45%	-62.30%	-6.11%	30.65%
Total Asset Turnover
Reported total asset turnover	0.81	0.58	0.49	0.45	0.55
Adjusted total asset turnover	0.81	0.58	0.49	0.45	0.55
Financial Leverage
Reported financial leverage	2.12	2.27	3.44	2.36	2.13
Adjusted financial leverage	1.88	2.20	3.45	2.23	1.94
Return on Equity (ROE)
Reported ROE	53.86%	30.37%	-92.89%	-6.12%	33.36%
Adjusted ROE	56.96%	29.99%	-104.84%	-6.19%	32.69%
Return on Assets (ROA)
Reported ROA	25.36%	13.38%	-27.04%	-2.59%	15.66%
Adjusted ROA	30.33%	13.62%	-30.40%	-2.77%	16.81%

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

Financial ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by total revenue.	Devon Energy Corp. adjusted net profit margin ratio improved from 2020 to 2021 and from 2021 to 2022.
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Devon Energy Corp. adjusted total asset turnover ratio improved from 2020 to 2021 and from 2021 to 2022.
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	Devon Energy Corp. adjusted financial leverage ratio decreased from 2020 to 2021 and from 2021 to 2022.
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity.	Devon Energy Corp. adjusted ROE improved from 2020 to 2021 and from 2021 to 2022.
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by adjusted total assets.	Devon Energy Corp. adjusted ROA improved from 2020 to 2021 and from 2021 to 2022.

Devon Energy Corp., Financial Ratios: Reported vs. Adjusted

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	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
As Reported
Selected Financial Data (US$ in millions)
Net earnings (loss) attributable to Devon	6,015)	2,813)	(2,680)	(355)	3,064)
Revenues	19,169)	12,206)	4,828)	6,220)	10,734)
Profitability Ratio
Net profit margin¹	31.38%	23.05%	-55.51%	-5.71%	28.54%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net earnings (loss) attributable to Devon	7,194)	2,862)	(3,008)	(380)	3,290)
Revenues	19,169)	12,206)	4,828)	6,220)	10,734)
Profitability Ratio
Adjusted net profit margin²	37.53%	23.45%	-62.30%	-6.11%	30.65%

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

2022 Calculations

¹ Net profit margin = 100 × Net earnings (loss) attributable to Devon ÷ Revenues
= 100 × 6,015 ÷ 19,169 = 31.38%

² Adjusted net profit margin = 100 × Adjusted net earnings (loss) attributable to Devon ÷ Revenues
= 100 × 7,194 ÷ 19,169 = 37.53%

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Profitability ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by total revenue.	Devon Energy Corp. adjusted net profit margin ratio improved from 2020 to 2021 and from 2021 to 2022.

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
As Reported
Selected Financial Data (US$ in millions)
Revenues	19,169)	12,206)	4,828)	6,220)	10,734)
Total assets	23,721)	21,025)	9,912)	13,717)	19,566)
Activity Ratio
Total asset turnover¹	0.81	0.58	0.49	0.45	0.55
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Revenues	19,169)	12,206)	4,828)	6,220)	10,734)
Adjusted total assets	23,721)	21,018)	9,896)	13,717)	19,566)
Activity Ratio
Adjusted total asset turnover²	0.81	0.58	0.49	0.45	0.55

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

2022 Calculations

¹ Total asset turnover = Revenues ÷ Total assets
= 19,169 ÷ 23,721 = 0.81

² Adjusted total asset turnover = Revenues ÷ Adjusted total assets
= 19,169 ÷ 23,721 = 0.81

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Activity ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Devon Energy Corp. adjusted total asset turnover ratio improved from 2020 to 2021 and from 2021 to 2022.

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
As Reported
Selected Financial Data (US$ in millions)
Total assets	23,721)	21,025)	9,912)	13,717)	19,566)
Stockholders’ equity attributable to Devon	11,167)	9,262)	2,885)	5,802)	9,186)
Solvency Ratio
Financial leverage¹	2.12	2.27	3.44	2.36	2.13
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted total assets	23,721)	21,018)	9,896)	13,717)	19,566)
Adjusted stockholders’ equity attributable to Devon	12,630)	9,542)	2,869)	6,143)	10,063)
Solvency Ratio
Adjusted financial leverage²	1.88	2.20	3.45	2.23	1.94

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

2022 Calculations

¹ Financial leverage = Total assets ÷ Stockholders’ equity attributable to Devon
= 23,721 ÷ 11,167 = 2.12

² Adjusted financial leverage = Adjusted total assets ÷ Adjusted stockholders’ equity attributable to Devon
= 23,721 ÷ 12,630 = 1.88

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Solvency ratio	Description	The company
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	Devon Energy Corp. adjusted financial leverage ratio decreased from 2020 to 2021 and from 2021 to 2022.

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
As Reported
Selected Financial Data (US$ in millions)
Net earnings (loss) attributable to Devon	6,015)	2,813)	(2,680)	(355)	3,064)
Stockholders’ equity attributable to Devon	11,167)	9,262)	2,885)	5,802)	9,186)
Profitability Ratio
ROE¹	53.86%	30.37%	-92.89%	-6.12%	33.36%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net earnings (loss) attributable to Devon	7,194)	2,862)	(3,008)	(380)	3,290)
Adjusted stockholders’ equity attributable to Devon	12,630)	9,542)	2,869)	6,143)	10,063)
Profitability Ratio
Adjusted ROE²	56.96%	29.99%	-104.84%	-6.19%	32.69%

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

2022 Calculations

¹ ROE = 100 × Net earnings (loss) attributable to Devon ÷ Stockholders’ equity attributable to Devon
= 100 × 6,015 ÷ 11,167 = 53.86%

² Adjusted ROE = 100 × Adjusted net earnings (loss) attributable to Devon ÷ Adjusted stockholders’ equity attributable to Devon
= 100 × 7,194 ÷ 12,630 = 56.96%

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Profitability ratio	Description	The company
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity.	Devon Energy Corp. adjusted ROE improved from 2020 to 2021 and from 2021 to 2022.

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
As Reported
Selected Financial Data (US$ in millions)
Net earnings (loss) attributable to Devon	6,015)	2,813)	(2,680)	(355)	3,064)
Total assets	23,721)	21,025)	9,912)	13,717)	19,566)
Profitability Ratio
ROA¹	25.36%	13.38%	-27.04%	-2.59%	15.66%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net earnings (loss) attributable to Devon	7,194)	2,862)	(3,008)	(380)	3,290)
Adjusted total assets	23,721)	21,018)	9,896)	13,717)	19,566)
Profitability Ratio
Adjusted ROA²	30.33%	13.62%	-30.40%	-2.77%	16.81%

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

2022 Calculations

¹ ROA = 100 × Net earnings (loss) attributable to Devon ÷ Total assets
= 100 × 6,015 ÷ 23,721 = 25.36%

² Adjusted ROA = 100 × Adjusted net earnings (loss) attributable to Devon ÷ Adjusted total assets
= 100 × 7,194 ÷ 23,721 = 30.33%

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Profitability ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by adjusted total assets.	Devon Energy Corp. adjusted ROA improved from 2020 to 2021 and from 2021 to 2022.

Devon Energy Corp. (NYSE:DVN)

Analysis of Income Taxes

Income Tax Expense (Benefit)

Effective Income Tax Rate (EITR)

Components of Deferred Tax Assets and Liabilities

Deferred Tax Assets and Liabilities, Classification

Adjustments to Financial Statements: Removal of Deferred Taxes

Devon Energy Corp., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)

Devon Energy Corp., Financial Ratios: Reported vs. Adjusted

Adjusted Net Profit Margin

Adjusted Total Asset Turnover

Adjusted Financial Leverage

Adjusted Return on Equity (ROE)

Adjusted Return on Assets (ROA)