Name: Devon Energy Corp. (NYSE:DVN) | Liabilities and Stockholders’ Equity
Creator: Stock Analysis on Net

Balance Sheet: Liabilities and Stockholders’ Equity

The balance sheet provides creditors, investors, and analysts with information on company resources (assets) and its sources of capital (its equity and liabilities). It normally also provides information about the future earnings capacity of a company assets as well as an indication of cash flows that may come from receivables and inventories.

Liabilities represents obligations of a company arising from past events, the settlement of which is expected to result in an outflow of economic benefits from the entity.

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Devon Energy Corp., consolidated balance sheet: liabilities and stockholders’ equity

US$ in millions

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Accounts payable	859)	500)	242)	428)	662)
Revenues and royalties payable	1,506)	1,456)	662)	730)	898)
Short-term debt	251)	—)	—)	—)	162)
Current finance lease liabilities	8)	8)	8)	7)	—)
Current operating lease liabilities	13)	18)	1)	10)	—)
Current lease liabilities	21)	26)	9)	17)	—)
Other current liabilities	468)	1,105)	527)	293)	435)
Current liabilities associated with discontinued operations	—)	—)	—)	459)	69)
Current liabilities	3,105)	3,087)	1,440)	1,927)	2,226)
Long-term debt	6,189)	6,482)	4,298)	4,294)	5,785)
Long-term finance lease liabilities	249)	247)	244)	240)	—)
Long-term operating lease liabilities	8)	5)	2)	4)	—)
Long-term lease liabilities	257)	252)	246)	244)	—)
Asset retirement obligations	511)	468)	358)	380)	1,030)
Other long-term liabilities	900)	1,050)	551)	426)	462)
Deferred income taxes	1,463)	287)	—)	341)	877)
Long-term liabilities associated with discontinued operations	—)	—)	—)	185)	—)
Long-term liabilities	9,320)	8,539)	5,453)	5,870)	8,154)
Total liabilities	12,425)	11,626)	6,893)	7,797)	10,380)
Common stock, $0.10 par value	65)	66)	38)	38)	45)
Additional paid-in capital	6,921)	7,636)	2,766)	2,735)	4,486)
Retained earnings	4,297)	1,692)	208)	3,148)	3,650)
Accumulated other comprehensive earnings (loss)	(116)	(132)	(127)	(119)	1,027)
Treasury stock, at cost	—)	—)	—)	—)	(22)
Stockholders’ equity attributable to Devon	11,167)	9,262)	2,885)	5,802)	9,186)
Noncontrolling interests	129)	137)	134)	118)	—)
Total equity	11,296)	9,399)	3,019)	5,920)	9,186)
Total liabilities and equity	23,721)	21,025)	9,912)	13,717)	19,566)

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).

The financial position of the company from 2018 to 2022 is characterized by significant volatility, featuring a period of contraction peaking in 2020 followed by a rapid expansion in both liabilities and equity. Total liabilities and equity decreased from 19,566 million US dollars in 2018 to a low of 9,912 million US dollars in 2020, before rebounding sharply to 23,721 million US dollars by the end of 2022.

Current Liabilities and Short-Term Obligations: Current liabilities exhibited a U-shaped trend, decreasing from 2,226 million US dollars in 2018 to 1,440 million US dollars in 2020, before rising to 3,105 million US dollars in 2022. A primary driver of this increase was the growth in revenues and royalties payable, which rose from 662 million US dollars in 2020 to 1,506 million US dollars in 2022. Additionally, accounts payable saw a significant increase in the final year, reaching 859 million US dollars. Short-term debt remained negligible for several years but reappeared at 251 million US dollars in 2022.
Long-Term Debt and Non-Current Liabilities: Long-term liabilities followed a similar trajectory to current liabilities, contracting to 5,453 million US dollars in 2020 before escalating to 9,320 million US dollars in 2022. Long-term debt was a central component of this movement, dropping to 4,298 million US dollars in 2020 and subsequently increasing to 6,189 million US dollars by 2022. A notable surge in deferred income taxes occurred in 2022, jumping to 1,463 million US dollars from 287 million US dollars in 2021, indicating a substantial shift in future tax obligations.
Stockholders' Equity and Capital Structure: Total equity experienced a severe decline between 2018 and 2020, falling from 9,186 million US dollars to 3,019 million US dollars. This contraction was largely mirrored by a collapse in retained earnings, which plummeted from 3,650 million US dollars in 2018 to only 208 million US dollars in 2020. However, a strong recovery occurred in 2021 and 2022, with total equity reaching 11,296 million US dollars. This recovery was supported by a massive increase in additional paid-in capital, which spiked to 7,636 million US dollars in 2021, suggesting significant capital infusion through equity issuance, and a recovery of retained earnings to 4,297 million US dollars by 2022.
Overall Leverage and Solvency Trends: The relationship between total liabilities and total equity shifted markedly over the five-year period. In 2020, the company reached a point of peak relative leverage, where total liabilities (6,893 million US dollars) were more than double the total equity (3,019 million US dollars). By 2022, the capital structure stabilized, with total equity (11,296 million US dollars) nearly offsetting total liabilities (12,425 million US dollars), indicating a strengthened solvency position compared to the 2020 trough.

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