News Release
		Exhibit 99.1 Devon Energy Corporation 20 North Broadway Oklahoma City, OK 73102-8260

Investor Contact		Shea Snyder		405 552 4782
Media Contact		Chip Minty		405 228 8647

DEVON ENERGY REPORTS RECORD 2010 NET EARNINGS AND PROVED RESERVES

OKLAHOMA CITY — February 16, 2011 — Devon Energy Corporation (NYSE:DVN) today reported record net earnings for the year ended December 31, 2010, of $4.6 billion, or $10.35 per common share ($10.31 per diluted common share). This compares to a full-year 2009 net loss of $2.5 billion, or $5.58 per common share ($5.58 per diluted common share). The company’s 2009 financial results were impacted by a $4.2 billion non-cash, after-tax reduction in the carrying value of oil and gas properties.

For the quarter ended December 31, 2010, Devon reported net earnings of $562 million, or $1.30 per common share ($1.29 per diluted common share). In the fourth quarter of 2009, the company reported net earnings of $667 million, or $1.50 per common share ($1.49 per diluted common share).

Devon’s fourth-quarter 2010 financial results were impacted by certain items securities analysts typically exclude from their published estimates. Excluding these adjusting items, the company earned $683 million, or $1.57 per diluted common share. The adjusting items are discussed in detail later in this news release.

“2010 was an outstanding year for Devon. The company’s record earnings were accompanied by excellent operating results and the successful execution of our strategic repositioning,” commented John Richels, president and chief executive officer. “Our focused North American onshore capital program helped grow proved reserves to an all-time record of 2.9 billion equivalent barrels, and we are nearing completion of our strategic repositioning with total asset sales of more than $10 billion.”

Proved Oil and Gas Reserves Climb to Record Levels

In accordance with accounting standards, Devon’s year-end 2009 reserve balances include the reserves associated with the company’s Gulf of Mexico properties that were divested in 2010. Following is a discussion of proved reserves related only to Devon’s retained North American onshore assets, excluding the impact of the divested properties.

At year-end 2010, Devon’s North American onshore estimated proved reserves were a record 2,873 million oil-equivalent barrels (Boe), a nine percent increase over year-end 2009. During 2010 Devon added 389 million oil-equivalent barrels through successful drilling (discoveries, extensions and performance revisions). Drill-bit capital applicable to its North American onshore properties totaled $6.1 billion, including $1.2 billion of unproved leasehold capture. Revisions related to changes in oil, natural gas, and natural gas liquids prices increased North American onshore proved reserves by an additional 71 million Boe.

Proved developed reserves were 2,042 million Boe at December 31, 2010, or 71 percent of total proved reserves. Year-end proved reserves were composed of 681 million barrels of crude oil, 10.3 trillion cubic feet of natural gas and 479 million barrels of natural gas liquids.

“Devon delivered outstanding results with our North American onshore drilling program in 2010,” said Dave Hager, executive vice president, exploration and production. “Our drill-bit reserve additions were 175 percent of our production output for the year. In addition, the reserves were added at very competitive finding costs in spite of adding $1.2 billion of unproved acreage during the year.”

Drill-bit Capital and Reserves Summary⁽¹⁾

		Year Ended December 31,
		North American Onshore
		2010				2009
Drill-bit Capital (in millions)		$	6,123			$	3,244
Reserves Data (MMBoe)
Extensions and discoveries			352				446
Revisions other than price			37				46
Drill-bit and performance reserve additions			389				492

(1)		Detailed tables and non-GAAP reconciliations are also provided in this release.

Liquids Production Growth and Cana-Woodford Development Lead 2010 Operating Highlights

Devon drilled 1,588 wells in 2010 applicable to its continuing operations with a 99 percent success rate. Following are operational highlights from the past year:

•		Devon increased oil and natural gas liquids production from its North American onshore properties by six percent in 2010, to an average of 193,000 barrels per day.
•		During the year, Devon completed 87 wells in the Cana-Woodford Shale play in western Oklahoma and more than doubled its industry-leading leasehold position in the play to 243,000 net acres. Fourth-quarter production from the Cana-Woodford increased more than 200 percent over the year-ago quarter to an average of 137 million cubic feet of gas equivalent per day. The company also completed construction and commenced operation of its Cana gas processing plant in 2010.
•		In the Permian Basin, Devon increased fourth-quarter production 16 percent over the fourth quarter of 2009, to 45,000 Boe per day. Devon has nearly 1 million net acres of leasehold in the region targeting various oil and liquids-rich play types. In 2011, the company plans to run 17 operated rigs and drill more than 300 wells to continue de-risking and developing these plays.
•		In 2010, production from the Devon-operated Jackfish oil sands project averaged 26,000 gross barrels per day or 25,000 barrels per day net to the company. Following scheduled facilities maintenance in the third quarter and the Enbridge pipeline system outage in the fourth quarter, Jackfish production ramped back up to 31,000 gross barrels per day at year-end.
•		Construction of the company’s second Jackfish project is now complete. Devon expects to begin injecting steam at Jackfish 2 in the second quarter, with first oil production expected by the end of 2011. Devon applied for regulatory approval of a third phase of Jackfish in the third quarter of 2010.
•		During the year, Devon added to its Canadian oil position by acquiring a 50 percent interest in the Pike oil sands leases. The Pike acreage lies immediately adjacent to the company’s highly successful Jackfish project and has estimated gross recoverable resources of up to 1.5 billion barrels. Devon is the operator of the project and is currently drilling appraisal wells to determine an optimal development configuration.
•		The company’s net production from the Barnett Shale field in north Texas averaged 1.2 billion cubic feet of natural gas equivalent per day in the fourth quarter, including 42,000 barrels per day of liquids production. This represents a 14 percent increase in production compared to fourth quarter of 2009.

Oil and Gas Sales Increase 19 Percent

Sales of oil, gas and natural gas liquids from continuing operations increased 19 percent to $7.3 billion in the year ended December 31, 2010. Comparable sales for the year ended December 31, 2009, were $6.1 billion. Devon’s average full-year 2010 realized price per Boe, including the impact of hedges, increased 26 percent over the prior year to $35.81 per barrel. Higher commodity prices more than offset a decrease in production resulting from the Gulf of Mexico properties that were divested during 2010.

Full-year 2010 production from the company’s North American onshore properties grew by 3 million Boe over the prior year to a total of 223 million oil-equivalent barrels. The improvement was driven entirely by higher oil and natural gas liquids production.

Devon’s fourth quarter production was impacted by a number of minor operational issues including volume curtailments attributable to the Enbridge pipeline outage, completion delays, and interruptions due to severe weather. In aggregate, these items reduced fourth quarter production by 11,000 equivalent barrels per day. In spite of these operational issues, North American onshore production in the fourth quarter averaged 619,000 Boe per day, an eight percent increase over the fourth quarter of 2009.

Repositioning Drives Cost Savings

Cost efficiencies realized through Devon’s strategic repositioning were reflected in the company’s 2010 results. In spite of a rising industry cost environment, expenses in most categories declined or increased only modestly.

Lease operating expenses (LOE) in 2010 increased one percent over 2009 to $1.7 billion. The increase in LOE is primarily attributable to the strengthening of the Canadian dollar. Devon’s divestiture of higher cost Gulf of Mexico properties helped offset the effects of rising oilfield service and supply costs.

Depreciation, depletion and amortization (DD&A) of oil and gas properties decreased nine percent in 2010 to $1.7 billion. The lower DD&A expense was primarily driven by the disposition of Devon’s Gulf of Mexico properties.

General and administrative expenses declined 13 percent in 2010 to $563 million. Lower employee costs related to the company’s strategic repositioning drove the improvement.

Interest expense in 2010 increased $14 million to $363 million. However, 2010 interest expense included a $19 million charge attributable to the early redemption of the company’s senior notes. Absent the early redemption charge, interest expense declined by $5 million when compared to 2009.

Cash Flow Before Balance Sheet Changes Increases 21 Percent;

Share Repurchases and Debt Reduction Total $3 Billion

Cash flow before balance sheet changes in 2010 reached $5.7 billion, a 21 percent increase over the prior year. During 2010, divestiture sale proceeds from the company’s strategic repositioning efforts provided an additional $7 billion of cash flow. In total, these sources of cash allowed Devon to fund its total capital demands, to repurchase 18.3 million shares of common stock for $1.2 billion, and to retire $1.8 billion of debt during the year.

As of December 31, 2010, the company’s cash balances totaled $3.4 billion, reducing net debt to 10 percent of adjusted capitalization compared with 29 percent at year-end 2009. Reconciliations of cash flow before balance sheet changes, net debt and adjusted capitalization, which are non-GAAP measures, are provided in this release.

Strategic Repositioning Nears Completion

In 2010, the company divested its Gulf of Mexico operations and closed on the sale of its assets in Azerbaijan and China for aggregate pre-tax proceeds of $7 billion. The company’s remaining divestiture package, consisting of its assets in Brazil, is under contract for $3.2 billion. Total proceeds for Devon’s strategic repositioning will exceed $10 billion with after-tax proceeds approximating $8 billion.

In accordance with accounting standards, Devon has reclassified the assets, liabilities, and results of its international segment as discontinued operations for all accounting periods presented in this release. Although revenues and expenses for prior periods were reclassified, previously reported net earnings were not impacted. Included with this release is a table of revenues, expenses, production categories, and the amounts reclassified as discontinued operations for each period presented.

Although Devon successfully completed the divestiture of its Gulf of Mexico operations, results from these assets do not qualify as discontinued operations under accounting standards and reside within continuing operations. However, information is provided within this release to enable the reader to isolate results of the company’s North American onshore operations.

Items Excluded from Published Earnings Estimates

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. These items and their effects upon reported earnings for the full year and fourth quarter of 2010 were as follows:

Items affecting continuing operations:

•		A change in the fair value of oil, gas and NGL derivative instruments decreased full-year earnings by $77 million pre-tax ($50 million after tax) and decreased fourth-quarter earnings by $371 million pre-tax ($244 million after tax).
•		A change in fair value of interest-rate and other financial instruments decreased full-year earnings by $30 million pre-tax ($19 million after tax) and increased fourth-quarter earnings by $128 million pre-tax ($86 million after tax).
•		U.S. income taxes on foreign earnings now expected to be repatriated to the U.S. decreased full-year earnings by $144 million and decreased fourth-quarter earnings by $70 million.
•		Income tax accrual adjustments increased full-year earnings by $57 million and increased fourth-quarter earnings by $72 million.
•		Restructuring costs decreased full-year earnings by $57 million pre-tax ($36 million after tax) and decreased fourth-quarter earnings by $2 million pre-tax ($1 million after tax).
•		Additional interest expense attributable to the early redemption of 7.25 percent senior notes decreased full-year earnings by $19 million pre-tax ($12 million after tax).

Items affecting discontinued operations:

•		Divestitures of assets increased full-year earnings by $1.8 billion pre-tax ($1.8 billion after tax) and decreased fourth-quarter earnings by $25 million pre-tax and increased after-tax earnings by $20 million.
•		The decision to divest all international assets generated financial benefits that increased full-year earnings by $143 million pre-tax ($93 million after tax) and increased fourth-quarter earnings by $29 million pre-tax ($19 million after tax).
•		Insurance settlement proceeds related to a business interruption claim in Azerbaijan increased full-year earnings by $60 million pre-tax ($60 million after tax).
•		Restructuring costs increased full-year earnings by $4 million pre-tax ($3 million after tax) and decreased fourth-quarter earnings by $4 million pre-tax ($3 million after tax).

The following tables summarize the full-year and fourth-quarter effects of these items on 2010 earnings, income taxes and cash flow.

Full-Year 2010 — Summary of Items Typically Excluded by Analysts (in millions)

Continuing Operations

		Pre-tax																After-tax				Cash Flow Before
		Earnings				Income Tax Effect												Earnings				Balance Sheet
		Effect				Current				Deferred				Total				Effect				Changes Effect
Oil, gas, and NGL derivatives		$	(77	)			—				(27	)			(27	)			(50	)			—
Interest-rate and other financial instruments			(30	)			—				(11	)			(11	)			(19	)			—
U.S. income taxes on foreign earnings			—				—				144				144				(144	)			—
Income tax accrual adjustment			—				(329	)			272				(57	)			57				329
Restructuring costs			(57	)			8				(29	)			(21	)			(36	)			(64	)
Additional interest costs on debt retirement			(19	)			(10	)			3				(7	)			(12	)			(17	)
Effects of oil and gas property divestitures			—				783				(783	)			—				—				(783	)
Totals		$	(183	)			452				(431	)			21				(204	)			(535	)

Discontinued Operations

		Pre-tax																After-tax				Cash Flow Before
		Earnings				Income Tax Effect												Earnings				Balance Sheet
		Effect				Current				Deferred				Total				Effect				Changes Effect
Effects of oil and gas property divestitures		$	1,818				84				(43	)			41				1,777				(84	)
Financial benefits of decision to divest assets			143				—				50				50				93				—
Insurance settlement			60				—				—				—				60				60
Restructuring costs			4				1				—				1				3				(2	)
Totals		$	2,025				85				7				92				1,933				(26	)

In aggregate, these items increased full-year 2010 net earnings by $1.7 billion, or $3.94 per common share ($3.92 per diluted share). These items and their associated tax effects decreased full-year 2010 cash flow before balance sheet changes by $561 million.

Fourth-Quarter 2010 — Summary of Items Typically Excluded by Analysts (in millions)

Continuing Operations

		Pre-tax																After-tax				Cash Flow Before
		Earnings				Income Tax Effect												Earnings				Balance Sheet
		Effect				Current				Deferred				Total				Effect				Changes Effect
Oil, gas, and NGL derivatives		$	(371	)			—				(127	)			(127	)			(244	)			—
Interest-rate and other financial instruments			128				—				42				42				86				—
U.S. income taxes on foreign earnings			—				—				70				70				(70	)			—
Income tax accrual adjustment			—				(72	)			—				(72	)			72				72
Restructuring costs			(2	)			(1	)			—				(1	)			(1	)			(1	)
Totals		$	(245	)			(73	)			(15	)			(88	)			(157	)			71

Discontinued Operations

		Pre-tax																After-tax				Cash Flow Before
		Earnings				Income Tax Effect												Earnings				Balance Sheet
		Effect				Current				Deferred				Total				Effect				Changes Effect
Effects of oil and gas property divestitures			(25	)			(45	)			—				(45	)			20				45
Financial benefits of decision to divest assets		$	29				—				10				10				19				—
Restructuring costs			(4	)			(1	)			—				(1	)			(3	)			(4	)
Totals		$	—				(46	)			10				(36	)			36				41

In aggregate, these items decreased fourth-quarter 2010 net earnings by $121 million, or $0.28 per common share ($0.28 per diluted share). These items and their associated tax effects increased fourth-quarter 2010 cash flow before balance sheet changes by $112 million.

Conference Call to be Webcast Today

Devon will discuss its 2010 financial and operating results in a conference call webcast today. The webcast will begin at 10 a.m. Central Time (11 a.m. Eastern Time). The webcast may be accessed from Devon’s internet home page at www.devonenergy.com.

This press release includes “forward-looking statements” as defined by the Securities and Exchange Commission. Such statements are those concerning strategic plans, expectations and objectives for future operations. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that the company 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 the control of the company. Statements regarding future drilling and production are subject to all of the risks and uncertainties normally incident to the exploration for and development and production of oil and gas. These risks include, but are not limited to the volatility of oil, natural gas and NGL prices; uncertainties inherent in estimating oil, natural gas and NGL reserves; drilling risks; environmental risks; and political or regulatory changes. Investors are cautioned that any such statements are not guarantees of future performance and that actual results or developments may differ materially from those projected in the forward-looking statements. The forward-looking statements in this press release are made as of the date of this press release, even if subsequently made available by Devon on its website or otherwise. Devon does not undertake any obligation to update the forward-looking statements as a result of new information, future events or otherwise.

Effective January 1, 2010, the United States Securities and Exchange Commission permits oil and gas companies, in their filings with the SEC, to disclose only proved, probable and possible reserves that meet the SEC’s definitions for such terms, and price and cost sensitivities for such reserves, and prohibits disclosure of resources that do not constitute such reserves. This release may contain certain terms, such as resource potential and exploration target size. These estimates are by their nature more speculative than estimates of proved, probable and possible reserves and accordingly are subject to substantially greater risk of being actually realized. The SEC guidelines strictly prohibit us from including these estimates in filings with the SEC. U.S. investors are urged to consider closely the disclosure in our Form 10-K for the fiscal year ended December 31, 2009, available from us at Devon Energy Corporation, Attn. Investor Relations, 20 North Broadway, Oklahoma City, OK 73102. You can also obtain this form from the SEC by calling 1-800-SEC-0330 or from the SEC’s website at www.sec.gov.

Devon Energy Corporation is an Oklahoma City-based independent energy company engaged in oil and gas exploration and production. Devon is a leading U.S.-based independent oil and gas producer and is included in the S&P 500 Index. For more information about Devon, please visit our website at www.devonenergy.com.

DEVON ENERGY CORPORATION
FINANCIAL AND OPERATIONAL INFORMATION

PRODUCTION (net of royalties)
Excludes discontinued operations

		Year Ended								Quarter Ended
		December 31,								December 31,
		2010				2009				2010				2009
Total Period Production
Natural Gas (Bcf)
U.S. Onshore			698.5				698.7				180.6				162.8
Canada			214.2				222.8				52.6				51.6
North American Onshore			912.7				921.5				233.2				214.4
U.S. Offshore			16.8				44.9				—				11.4
Total Natural Gas			929.5				966.4				233.2				225.8
Oil (MMBbls)
U.S. Onshore			13.5				11.6				3.7				2.9
Canada			25.2				25.3				6.1				6.6
North American Onshore			38.7				36.9				9.8				9.5
U.S. Offshore			1.9				5.0				—				1.3
Total Oil			40.6				41.9				9.8				10.8
Natural Gas Liquids (MMBbls)
U.S. Onshore			28.2				25.7				7.4				6.5
Canada			3.6				3.8				0.9				1.0
North American Onshore			31.8				29.5				8.3				7.5
U.S. Offshore			0.3				0.7				—				0.2
Total Natural Gas Liquids			32.1				30.2				8.3				7.7
Oil Equivalent (MMBoe)
U.S. Onshore			158.2				153.7				41.2				36.5
Canada			64.4				66.3				15.7				16.2
North American Onshore			222.6				220.0				56.9				52.7
U.S. Offshore			5.0				13.2				—				3.4
Total Oil Equivalent			227.6				233.2				56.9				56.1
Average Daily Production
Natural Gas (MMcf)
U.S. Onshore			1,913.8				1,914.3				1,963.0				1,769.7
Canada			586.9				610.5				571.7				560.5
North American Onshore			2,500.7				2,524.8				2,534.7				2,330.2
U.S. Offshore			46.0				123.0				—				123.8
Total Natural Gas			2,546.7				2,647.8				2,534.7				2,454.0
Oil (MBbls)
U.S. Onshore			37.0				31.6				40.0				31.3
Canada			68.9				69.3				66.0				72.0
North American Onshore			105.9				100.9				106.0				103.3
U.S. Offshore			5.2				13.8				—				13.7
Total Oil			111.1				114.7				106.0				117.0
Natural Gas Liquids (MBbls)
U.S. Onshore			77.3				70.4				80.8				71.1
Canada			9.8				10.4				9.2				10.2
North American Onshore			87.1				80.8				90.0				81.3
U.S. Offshore			0.9				2.0				—				2.2
Total Natural Gas Liquids			88.0				82.8				90.0				83.5
Oil Equivalent (MBoe)
U.S. Onshore			433.3				421.1				448.0				397.4
Canada			176.5				181.5				170.5				175.6
North American Onshore			609.8				602.6				618.5				573.0
U.S. Offshore			13.8				36.3				—				36.5
Total Oil Equivalent			623.6				638.9				618.5				609.5

DEVON ENERGY CORPORATION
FINANCIAL AND OPERATIONAL INFORMATION

BENCHMARK PRICES
(average prices)

		Year Ended								Quarter Ended
		December 31,								December 31,
		2010				2009				2010				2009
Natural Gas ($/Mcf) — Henry Hub		$	4.39			$	3.99			$	3.80			$	4.16
Oil ($/Bbl) — West Texas Intermediate (Cushing)		$	79.48			$	61.82			$	85.15			$	76.00

Quarter Ended December 31, 2010

		Oil				Gas				NGLs				Total
		(Per Bbl)				(Per Mcf)				(Per Bbl)				(Per Boe)
U.S. Onshore		$	80.79			$	3.21			$	33.19			$	27.27
Canada		$	60.80			$	3.69			$	47.46			$	38.46
North American Onshore		$	68.35			$	3.32			$	34.65			$	30.36
U.S. Offshore		$	—			$	—			$	—			$	—
Realized price without hedges		$	68.35			$	3.32			$	34.65			$	30.36
Cash settlements		$	—			$	1.32			$	—			$	5.41
Realized price, including cash settlements		$	68.35			$	4.64			$	34.65			$	35.77

Quarter Ended December 31, 2009

		Oil				Gas				NGLs				Total
		(Per Bbl)				(Per Mcf)				(Per Bbl)				(Per Boe)
U.S. Onshore		$	71.62			$	3.65			$	30.48			$	27.35
Canada		$	58.43			$	4.13			$	41.88			$	39.58
North American Onshore		$	62.43			$	3.77			$	31.92			$	31.10
U.S. Offshore		$	74.45			$	4.45			$	37.59			$	45.26
Realized price without hedges		$	63.84			$	3.80			$	32.07			$	31.95
Cash settlements		$	—			$	0.65			$	—			$	2.60
Realized price, including cash settlements		$	63.84			$	4.45			$	32.07			$	34.55

Year Ended December 31, 2010

		Oil				Gas				NGLs				Total
		(Per Bbl)				(Per Mcf)				(Per Bbl)				(Per Boe)
U.S. Onshore		$	75.53			$	3.73			$	30.78			$	28.42
Canada		$	58.60			$	4.11			$	46.60			$	39.11
North American Onshore		$	64.51			$	3.82			$	32.55			$	31.52
U.S. Offshore		$	77.81			$	5.12			$	38.22			$	49.06
Realized price without hedges		$	65.14			$	3.84			$	32.61			$	31.91
Cash settlements		$	—			$	0.96			$	—			$	3.90
Realized price, including cash settlements		$	65.14			$	4.80			$	32.61			$	35.81

Year Ended December 31, 2009

		Oil				Gas				NGLs				Total
		(Per Bbl)				(Per Mcf)				(Per Bbl)				(Per Boe)
U.S. Onshore		$	56.17			$	3.14			$	23.40			$	22.41
Canada		$	47.35			$	3.66			$	33.09			$	32.29
North American Onshore		$	50.11			$	3.27			$	24.65			$	25.38
U.S. Offshore		$	60.75			$	4.20			$	27.42			$	38.83
Realized price without hedges		$	51.39			$	3.31			$	24.71			$	26.15
Cash settlements		$	—			$	0.52			$	—			$	2.16
Realized price, including cash settlements		$	51.39			$	3.83			$	24.71			$	28.31

DEVON ENERGY CORPORATION
FINANCIAL AND OPERATIONAL INFORMATION

CONSOLIDATED STATEMENTS OF OPERATIONS
(in millions, except per share amounts)

		Year Ended								Quarter Ended
		December 31,								December 31,
		2010				2009				2010				2009
Revenues
Oil, gas, and NGL sales		$	7,262			$	6,097			$	1,727			$	1,791
Oil, gas, and NGL derivatives			811				384				(63	)			194
Marketing and midstream revenues			1,867				1,534				471				460
Total revenues			9,940				8,015				2,135				2,445
Expenses and other, net
Lease operating expenses			1,689				1,670				418				404
Taxes other than income taxes			380				314				92				65
Marketing and midstream operating costs and expenses			1,357				1,022				344				327
Depreciation, depletion and amortization of oil and gas properties			1,675				1,832				426				418
Depreciation and amortization of non-oil and gas properties			255				276				63				68
Accretion of asset retirement obligation			92				91				21				23
General and administrative expenses			563				648				164				176
Restructuring costs			57				105				2				105
Interest expense			363				349				83				86
Interest-rate and other financial instruments			(14	)			(106	)			(135	)			(86	)
Reduction of carrying value of oil and gas properties			—				6,408				—				—
Other, net			(45	)			(68	)			(11	)			(7	)
Total expenses and other, net			6,372				12,541				1,467				1,579
Earnings (loss) from continuing operations before income tax expense			3,568				(4,526	)			668				866
Income tax expense (benefit)
Current			516				241				(180	)			106
Deferred			719				(2,014	)			370				203
Total income tax expense (benefit)			1,235				(1,773	)			190				309
Earnings (loss) from continuing operations			2,333				(2,753	)			478				557
Discontinued operations
Earnings from discontinued operations before income taxes			2,385				322				65				124
Discontinued operations income tax expense (benefit)			168				48				(19	)			14
Earnings from discontinued operations			2,217				274				84				110
Net earnings (loss)		$	4,550			$	(2,479	)		$	562			$	667
Basic net earnings (loss) per share
Basic earnings (loss) from continuing operations per share		$	5.31			$	(6.20	)		$	1.10			$	1.25
Basic earnings from discontinued operations per share			5.04				0.62				0.20				0.25
Basic net earnings (loss) per share		$	10.35			$	(5.58	)		$	1.30			$	1.50
Diluted net earnings (loss) per share
Diluted earnings (loss) from continuing operations per share		$	5.29			$	(6.20	)		$	1.10			$	1.25
Diluted earnings from discontinued operations per share			5.02				0.62				0.19				0.24
Diluted net earnings (loss) per share		$	10.31			$	(5.58	)		$	1.29			$	1.49
Weighted average common shares outstanding
Basic			440				444				433				445
Diluted			441				446				434				447

DEVON ENERGY CORPORATION
FINANCIAL AND OPERATIONAL INFORMATION

CONSOLIDATED BALANCE SHEETS
(in millions)

		December 31,				December 31,
		2010				2009
Assets
Current assets:
Cash and cash equivalents		$	2,866			$	646
Accounts receivable			1,202				1,208
Current assets held for sale			563				657
Other current assets			924				481
Total current assets			5,555				2,992
Property and equipment, at cost:
Oil and gas, based on full cost accounting:
Subject to amortization			56,012				52,352
Not subject to amortization			3,434				4,078
Total oil and gas			59,446				56,430
Other			4,429				4,045
Total property and equipment, at cost			63,875				60,475
Less accumulated depreciation, depletion and amortization			(44,223	)			(41,708	)
Property and equipment, net			19,652				18,767
Goodwill			6,080				5,930
Long-term assets held for sale			859				1,250
Other long-term assets			781				747
Total Assets		$	32,927			$	29,686
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable — trade		$	1,411			$	1,137
Revenues and royalties due to others			538				486
Short-term debt			1,811				1,432
Current liabilities associated with assets held for sale			305				234
Other current liabilities			518				513
Total current liabilities			4,583				3,802
Long-term debt			3,819				5,847
Asset retirement obligations			1,423				1,418
Liabilities associated with assets held for sale			26				213
Other long-term liabilities			1,067				937
Deferred income taxes			2,756				1,899
Stockholders’ equity:
Common stock			43				45
Additional paid-in capital			5,601				6,527
Retained earnings			11,882				7,613
Accumulated other comprehensive earnings			1,760				1,385
Treasury stock, at cost			(33	)			—
Total Stockholders’ Equity			19,253				15,570
Total Liabilities and Stockholders’ Equity		$	32,927			$	29,686
Common Shares Outstanding			432				447

DEVON ENERGY CORPORATION
FINANCIAL AND OPERATIONAL INFORMATION

CONSOLIDATED STATEMENTS OF CASH FLOWS
(in millions)

		Year Ended								Quarter Ended
		December 31,								December 31,
		2010				2009				2010				2009
Cash Flows From Operating Activities
Earnings (loss) from continuing operations		$	2,333			$	(2,753	)		$	478			$	557
Adjustments to reconcile earnings (loss) from continuing operations to net cash provided by operating activities:
Depreciation, depletion and amortization			1,930				2,108				489				486
Deferred income tax expense (benefit)			719				(2,014	)			370				203
Reduction of carrying value of oil and gas properties			—				6,408				—				—
Unrealized change in fair value of financial instruments			107				55				243				(129	)
Other noncash charges			215				288				61				106
Net cash from operating activities before balance sheet changes			5,304				4,092				1,641				1,223
Net (increase) decrease in working capital			(273	)			149				(437	)			68
Decrease (increase) in long-term other assets			32				(6	)			4				(23	)
(Decrease) increase in long-term other liabilities			(41	)			(3	)			(98	)			29
Cash from operating activities — continuing operations			5,022				4,232				1,110				1,297
Cash from operating activities — discontinued operations			456				505				132				148
Net cash from operating activities			5,478				4,737				1,242				1,445
Cash Flows From Investing Activities
Proceeds from property and equipment divestitures			4,310				34				179				11
Capital expenditures			(6,476	)			(4,879	)			(1,683	)			(1,072	)
Purchases of short-term investments			(145	)			—				(145	)			—
Redemptions of long-term investments			21				7				1				1
Other			(19	)			(17	)			(6	)			(17	)
Cash from investing activities — continuing operations			(2,309	)			(4,855	)			(1,654	)			(1,077	)
Cash from investing activities — discontinued operations			2,197				(499	)			(101	)			(123	)
Net cash from investing activities			(112	)			(5,354	)			(1,755	)			(1,200	)
Cash Flows From Financing Activities
Net commercial paper (repayments) borrowings			(1,432	)			426				—				63
Debt repayments			(350	)			(178	)			—				(177	)
Proceeds from borrowings of long term debt, net of issuance costs			—				1,187				—				—
Proceeds from stock option exercises			111				42				93				23
Repurchases of common stock			(1,168	)			—				(239	)			—
Dividends paid on common stock			(281	)			(284	)			(70	)			(71	)
Excess tax benefits related to share-based compensation			16				8				9				2
Net cash from financing activities			(3,104	)			1,201				(207	)			(46	)
Effect of exchange rate changes on cash			17				43				12				14
Net increase (decrease) in cash and cash equivalents			2,279				627				(708	)			99
Cash and cash equivalents at beginning of period			1,011				384				3,998				912
Cash and cash equivalents at end of period		$	3,290			$	1,011			$	3,290			$	1,011

DEVON ENERGY CORPORATION
FINANCIAL AND OPERATIONAL INFORMATION

RESERVES RECONCILIATION

		Total																North American Onshore
		Oil				Gas				NGLs				Total				Oil				Gas				NGLs				Total
		(MMBbls)				(Bcf)				(MMBbls)				(MMBoe)				(MMBbls)				(Bcf)				(MMBbls)				(MMBoe)
As of December 31, 2009:
Proved developed			289				7,845				326				1,922				268				7,660				325				1,869
Proved undeveloped			397				1,912				95				811				385				1,755				94				772
Total proved			686				9,757				421				2,733				653				9,415				419				2,641
Revisions due to prices			(19	)			472				13				72				(20	)			470				13				71
Revisions other than price			13				62				15				38				11				88				12				37
Extensions and discoveries			79				1,226				70				354				78				1,219				70				352
Purchase of reserves			—				21				—				4				—				21				—				4
Production			(41	)			(930	)			(32	)			(228	)			(39	)			(913	)			(32	)			(223	)
Sale of reserves			(37	)			(325	)			(8	)			(100	)			(2	)			(17	)			(3	)			(9	)
As of December 31, 2010:
Proved developed			257				8,424				381				2,042				257				8,424				381				2,042
Proved undeveloped			424				1,859				98				831				424				1,859				98				831
Total Proved			681				10,283				479				2,873				681				10,283				479				2,873
		U.S. Onshore																Canada
		Oil				Gas				NGLs				Total				Oil				Gas				NGLs				Total
		(MMBbls)				(Bcf)				(MMBbls)				(MMBoe)				(MMBbls)				(Bcf)				(MMBbls)				(MMBoe)
As of December 31, 2009:
Proved developed			119				6,447				293				1,486				149				1,213				32				383
Proved undeveloped			20				1,680				92				392				365				75				2				380
Total proved			139				8,127				385				1,878				514				1,288				34				763
Revisions due to prices			4				449				14				92				(24	)			21				(1	)			(21	)
Revisions other than price			2				105				13				32				9				(17	)			(1	)			5
Extensions and discoveries			19				1,088				68				269				59				131				2				83
Purchase of reserves			—				12				—				2				—				9				—				2
Production			(14	)			(699	)			(28	)			(158	)			(25	)			(214	)			(4	)			(65	)
Sale of reserves			(2	)			(17	)			(3	)			(8	)			—				—				—				(1	)
As of December 31, 2010:
Proved developed			131				7,280				353				1,696				126				1,144				28				346
Proved undeveloped			17				1,785				96				411				407				74				2				420
Total Proved			148				9,065				449				2,107				533				1,218				30				766

		U.S. Offshore
		Oil				Gas				NGLs				Total
		(MMBbls)				(Bcf)				(MMBbls)				(MMBoe)
As of December 31, 2009:
Proved developed			21				185				1				53
Proved undeveloped			12				157				1				39
Total proved			33				342				2				92
Revisions due to prices			1				2				—				1
Revisions other than price			2				(26	)			3				1
Extensions and discoveries			1				7				—				2
Purchase of reserves			—				—				—				—
Production			(2	)			(17	)			—				(5	)
Sale of reserves			(35	)			(308	)			(5	)			(91	)
As of December 31, 2010:
Proved developed			—				—				—				—
Proved undeveloped			—				—				—				—
Total Proved			—				—				—				—

DEVON ENERGY CORPORATION
FINANCIAL AND OPERATIONAL INFORMATION

COSTS INCURRED
(in millions)

		Total								North American Onshore
		Year Ended December 31,								Year Ended December 31,
		2010				2009				2010				2009
Property Acquisition Costs:
Total proved		$	33			$	35			$	33			$	35
Total unproved			1,184				135				1,182				124
Exploration and development costs			5,327				3,917				4,941				3,120
Costs Incurred		$	6,544			$	4,087			$	6,156			$	3,279

		U.S. Onshore								Canada
		Year Ended December 31,								Year Ended December 31,
		2010				2009				2010				2009
Property Acquisition Costs:
Total proved		$	29			$	17			$	4			$	18
Total unproved			592				52				590				72
Exploration and development costs			3,465				2,133				1,476				987
Costs Incurred		$	4,086			$	2,202			$	2,070			$	1,077

		U.S. Offshore
		Year Ended December 31,
		2010				2009
Property Acquisition Costs:
Total proved		$	—			$	—
Total unproved			2				11
Exploration and development costs			386				797
Costs Incurred		$	388			$	808

Devon capitalizes certain general and administrative expenses related to property acquisition, exploration and development activities. These capitalized expenses were $311 million and $332 million in 2010 and 2009, respectively. Devon also capitalizes certain interest expenses related to property acquisition, exploration and development activities. These capitalized expenses were $37 million and $74 million in 2010 and 2009, respectively. These capitalized general and administrative expenses and interest expenses are included in the costs shown in the preceding tables.

DEVON ENERGY CORPORATION
FINANCIAL AND OPERATIONAL INFORMATION

DRILLING ACTIVITY
(Gross Wells Drilled)

		Year Ended
		December 31,
		2010				2009
Exploration Wells Drilled
U.S. Onshore			34				11
Canada			57				42
North American Onshore			91				53
U.S. Offshore			—				1
Total			91				54
Exploration Wells Success Rate
U.S. Onshore			91	%			82	%
Canada			98	%			100	%
North American Onshore			95	%			96	%
U.S. Offshore			n/a				0	%
Total			95	%			94	%
Development Wells Drilled
U.S. Onshore			1,180				734
Canada			313				343
North American Onshore			1,493				1,077
U.S. Offshore			4				4
Total			1,497				1,081
Development Wells Success Rate
U.S. Onshore			99	%			100	%
Canada			100	%			100	%
North American Onshore			100	%			100	%
U.S. Offshore			100	%			50	%
Total			100	%			99	%
Total Wells Drilled
U.S. Onshore			1,214				745
Canada			370				385
North American Onshore			1,584				1,130
U.S. Offshore			4				5
Total			1,588				1,135
Total Wells Success Rate
U.S. Onshore			99	%			99	%
Canada			100	%			100	%
North American Onshore			99	%			99	%
U.S. Offshore			100	%			40	%
Total			99	%			99	%