SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934
DATE OF REPORT (DATE OF EARLIEST EVENT REPORT): JULY 27, 2000
DEVON ENERGY CORPORATION
(EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)
DELAWARE 001-30176 73-1567067
(STATE OR OTHER JURISDICTION OF (COMMISSION (IRS EMPLOYER
INCORPORATION OR ORGANIZATION) FILE NUMBER) IDENTIFICATION NUMBER)
20 NORTH BROADWAY, SUITE 1500, OKLAHOMA CITY, OK 73102
(ADDRESS OF PRINCIPAL EXECUTIVE OFFICES) (ZIP CODE)
REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE: (405) 235-3611
PAGE 1 OF 11 PAGES
<PAGE>
ITEM 5. Other Events
The Company announced net earnings for the quarter ended June 30, 2000
in a press release. Net earnings for the quarter ended June 30, 2000 were
$90.7 million.
ITEM 7. Financial Statements and Exhibits
(c) Exhibits
99 Press Release dated July 27, 2000.
SIGNATURES
Pursuant to the requirements of the Securities and Exchange Act of
1934, the registrant has duly caused this report to be signed on its behalf
by the undersigned hereto duly authorized.
DEVON ENERGY CORPORATION
By: /s/ Danny J. Heatly
----------------------------
Danny J. Heatly
Vice President - Accounting
Date: July 27, 2000
<PAGE>
[Devon Energy Corporation Letterhead]
NEWS RELEASE
FOR IMMEDIATE RELEASE
CONTACT: ZACK HAGER
INVESTOR RELATIONS
(405) 552-4526
DEVON ENERGY'S NET EARNINGS SOAR 460 PERCENT:
SECOND QUARTER 2000 EARNINGS PER SHARE TOP $1.00
OKLAHOMA CITY, OKLAHOMA, JULY 27, 2000--Devon Energy Corporation (AMEX:
DVN, TSE: NSX) today reported record revenues and net earnings for the
quarter ended June 30, 2000. Record second quarter oil and gas production
and higher product prices led to the increases in revenues and net
earnings. For the quarter ended June 30, 2000, net earnings were $90.7
million or $1.02 per common share ($1.00 per diluted common share). This
compares to second quarter 1999 net earnings of $16.2 million or 33 cents
per common share.
Net earnings for the first six months of 2000 were $151.8 million or $1.70
per share ($1.67 per diluted share), also record highs. This compares to
net earnings of $22.2 million or 46 cents per common share in the first six
months of 1999.
HIGHER PRODUCTION AND PRICES PUSH REVENUES TO RECORD LEVELS
Sales of Devon's oil, gas and natural gas liquids (NGLs) were up 281
percent in the second quarter of 2000 to $389.4 million, another record.
This compares with second quarter 1999 sales of oil, gas and NGLs of $102.1
million. Significant gains in both production and prices contributed to the
increase in revenues.
Total production of oil, gas and NGLs was up 111 percent over the second
quarter of 1999 to 19.1 million barrels of oil equivalent (Boe). The record
pace of year 2000 production growth is largely the result of Devon's August
17, 1999, merger with PennzEnergy Company.
Oil, natural gas and NGLs prices were all dramatically higher in the second
quarter of 2000. Devon's second quarter average oil price increased 73
percent from $14.71 per barrel in 1999 to $25.47 per barrel in 2000. The
average price for Devon's second quarter natural gas production increased
83 percent from $1.64 per thousand cubic feet in 1999 to $3.00 per thousand
cubic feet in 2000. The average price received for the company's NGLs
increased 67 percent from $11.33 per barrel in 1999 to $18.87 per barrel in
2000.
Allen Turner, Senior Vice President, remarked, "Many oil and gas companies
are reporting earnings growth in this period of robust oil and gas prices.
In addition to higher commodity prices, Devon has enjoyed strong production
growth. The expansion brought by the PennzEnergy merger late last year is
the largest contributing factor.
"However, we are also quite pleased with the production growth in our Gulf
of Mexico/Gulf Coast division during the last three months. In this
particular geologic area it can be difficult to offset normal production
decline. In the most recent quarter, we not only sustained production in
this area, we actually grew production. Second quarter 2000 production for
this division was eight percent higher than in the first quarter of this
year.
"In many of our previous mergers and acquisitions, we have gained not only
existing production, but also exploitation opportunities. This is proving
true with the PennzEnergy assets, particularly in the Gulf of Mexico."
PENNZENERGY MERGER INCREASES EXPENSES; BUT PRE-TAX EARNINGS STILL RISE
In addition to driving revenues higher, the PennzEnergy merger caused
expenses to rise. Total pre-tax expenses jumped $170.3 million to $247.5
million for the second quarter of 2000. However, this expense increase was
far less than the $296.5 million revenue gain. As a result, pre-tax
earnings rose 466 percent in the second quarter to $153.4 million.
Nonetheless, most of Devon's expenses were higher, reflecting the expanded
scope of operations. Lease operating expenses increased 161 percent in the
most recent quarter to $70.8 million. Production taxes were up 230 percent
to $11.4 million in the second quarter of 2000. Second quarter
depreciation, depletion and amortization of property and equipment
increased $77.4 million to $113.2 million in 2000. General and
administrative expenses increased by $9.2 million to $16.1 million in the
most recent quarter. Total second quarter financing costs increased by
$21.7 million to $25.7 million in 2000.
INCOME TAXES
Income tax expense for the most recent quarter was $62.6 million or
41 percent of pre-tax earnings. This compares to second quarter 1999 income
tax expense of $10.9 million or 40 percent of pre-tax earnings.
Approximately $29.0 million of second quarter 2000 income tax expense was
deferred, not requiring the use of cash.
ZERO COUPON CONVERTIBLE DEBENTURES ISSUED AT ATTRACTIVE INTEREST RATE
On June 22, 2000, the company announced a private placement of
20-year zero coupon convertible debentures. Net proceeds of the issue were
approximately $346 million. Devon intends to use the proceeds to repay
higher cost existing debt and for other corporate purposes. The effective
interest rate on the debentures is 3.875 percent per annum. Because the
debentures bear no coupon interest rate, there are no cash interest
payments required until redemption. Each debenture, which was priced at
$464.13, is convertible into 5.7593 shares of Devon common stock.
MERGER WITH SANTA FE SNYDER ON SCHEDULE
Devon's proposed merger with Santa Fe Snyder Corporation, originally
announced on May 26, 2000, has moved a step closer to completion. As
reported on July 13, 2000, the Registration Statement on Form S-4 was
declared effective by the SEC on July 12, 2000. Definitive proxy materials
were filed with the SEC on July 21, 2000. Distribution of printed proxy
materials began on July 25, 2000. Shareholders of each company will meet on
August 29, 2000 to vote on the merger. Assuming shareholders of both
companies approve the transaction, completion of the merger will follow
shortly thereafter. The merger of Devon and Santa Fe Snyder will make Devon
one of the five largest independent oil and gas companies based in the
United States.
This press release includes "forward-looking statements" as defined by the
Securities and Exchange Commission. Such statements are those concerning
the company's plans, expectations and objectives for future operations. All
statements included in this press release, other than statements of
historical facts, 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. 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.
Devon Energy Corporation is an independent energy company engaged in oil
and gas property acquisition, exploration and production. It is one of the
top 10 public independent oil and gas companies based in the United States,
as measured by oil and gas reserves. Devon's Canadian operations are
conducted by its subsidiary, Northstar Energy Corporation. Shares of Devon
Energy Corporation trade on the American Stock Exchange under the symbol
DVN.
INVESTOR NOTICES
INVESTORS AND SECURITY HOLDERS ARE ADVISED TO READ THE JOINT PROXY
STATEMENT/ PROSPECTUS INCLUDED IN THE REGISTRATION STATEMENT ON FORM S-4
FILED WITH THE SEC IN CONNECTION WITH THE PROPOSED MERGER BECAUSE IT
CONTAINS IMPORTANT INFORMATION. THE JOINT PROXY STATEMENT/PROSPECTUS HAS
BEEN FILED WITH THE SEC BY DEVON AND SANTA FE SNYDER. INVESTORS AND
SECURITY HOLDERS MAY OBTAIN A FREE COPY OF THE JOINT PROXY
STATEMENT/PROSPECTUS AND OTHER DOCUMENTS FILED BY DEVON AND SANTA FE SNYDER
WITH THE SEC AT THE SEC'S WEB SITE AT WWW.SEC.GOV. THE JOINT PROXY
STATEMENT/PROSPECTUS AND SUCH OTHER DOCUMENTS (RELATING TO DEVON) MAY ALSO
BE OBTAINED FOR FREE FROM DEVON BY DIRECTING SUCH REQUEST TO: DEVON ENERGY
CORPORATION, 20 NORTH BROADWAY, SUITE 1500, OKLAHOMA CITY, OKLAHOMA
73102-8260, ATTENTION: INVESTOR RELATIONS, TELEPHONE: (405) 552-4570,
E-MAIL: [email protected]. THE JOINT PROXY STATEMENT/PROSPECTUS AND SUCH
OTHER DOCUMENTS (RELATING TO SANTA FE SNYDER) MAY ALSO BE OBTAINED FOR FREE
FROM SANTA FE SNYDER BY DIRECTING SUCH REQUEST TO: SANTA FE SNYDER
CORPORATION, 840 GESSNER, SUITE 1400, HOUSTON, TEXAS 77024, ATTENTION:
INVESTOR RELATIONS, TELEPHONE: (713) 507-5307, E-MAIL:
[email protected].
Devon, its directors, executive officers and certain members of management
and employees may be considered "participants in the solicitation" of
proxies from Devon's shareholders in connection with the merger.
Information regarding such persons and a description of their interests in
the merger is contained in the joint proxy statement/prospectus and in
Devon's filing with the SEC under Rule 425 on May 26, 2000.
Santa Fe Snyder, its directors, executive officers and certain members of
management and employees may be considered "participants in the
solicitation" of proxies from Santa Fe Snyder's shareholders in connection
with the merger. Information regarding such persons and a description of
their interests in the merger is contained in the joint proxy
statement/prospectus and Santa Fe Snyder's filing with the SEC under Rule
14a-12 on May 26, 2000.
FINANCIAL INFORMATION FOLLOWS
<PAGE>
DEVON ENERGY CORPORATION
STATEMENT OF OPERATIONS DATA (US$)
(IN THOUSANDS, EXCEPT PER SHARE AND % CHANGE DATA)
<TABLE>
<CAPTION>
QUARTER ENDED JUNE 30, SIX MONTHS ENDED JUNE 30,
---------------------- -------------------------
2000 1999 % CHANGE 2000 1999 % CHANGE
---- ---- -------- ---- ---- --------
<S> <C> <C> <C> <C> <C> <C>
Oil sales $148,249 $36,871 302% $293,793 $64,784 353%
Gas sales 210,754 59,387 255% 366,286 112,938 224%
Natural gas liquids sales 30,433 5,835 422% 65,703 9,764 573%
Other 11,407 2,219 414% 22,772 4,092 457%
Total revenues $400,843 $104,312 284% $748,554 $191,578 291%
Net earnings $90,734 $16,209 460% $151,821 $22,189 584%
Net earnings applicable to
common shareholders $88,300 $16,209 445% $146,953 $22,189 562%
Net earnings per common share
Basic $1.02 $0.33 209% $1.70 $0.46 270%
Diluted $1.00 $0.33 203% $1.67 $0.46 263%
Weighted average common
shares outstanding
Basic 86,756 48,679 78% 86,481 48,575 78%
</TABLE>
BALANCE SHEET DATA (US$)
(IN THOUSANDS, EXCEPT % CHANGE DATA)
JUNE 30, DECEMBER 31,
2000 1999 % CHANGE
Total assets $4,827,936 $4,623,160 4%
Debentures exchangeable into shares
of Chevron Corporation common stock $760,313 $760,313 --%
Senior convertible debentures $352,853 - NM
Other long-term debt $672,661 $1,026,808 -34%
Stockholders' equity $2,177,620 $2,025,520 8%
Working capital $356,097 $189,750 88%
Common shares outstanding $86,982 86,085 1%
NM Not Meaningful
###
<PAGE>
DEVON ENERGY CORPORATION
STATEMENT OF OPERATIONS DATA (US$)
(IN THOUSANDS, EXCEPT PER SHARE AND % CHANGE DATA)
<TABLE>
<CAPTION>
QUARTER ENDED JUNE 30, SIX MONTHS ENDED JUNE 30,
---------------------- -------------------------
2000 1999 % CHANGE 2000 1999 % CHANGE
---- ---- -------- ---- ---- --------
<S> <C> <C> <C> <C> <C> <C>
Oil sales $148,249 $36,871 302% $293,793 $64,784 353%
Gas sales 210,754 59,387 255% 366,286 112,938 224%
Natural gas liquids sales 30,433 5,835 422% 65,703 9,764 573%
Other 11,407 2,219 414% 22,772 4,092 457%
Total revenues $400,843 $104,312 284% $748,554 $191,578 291%
Net earnings $90,734 $16,209 460% $151,821 $22,189 584%
Net earnings applicable to
common shareholders $88,300 $16,209 445% $146,953 $22,189 562%
Net earnings per common share
Basic $1.02 $0.33 209% $1.70 $0.46 270%
Diluted $1.00 $0.33 203% $1.67 $0.46 263%
Weighted average common
shares outstanding
Basic 86,756 48,679 78% 86,481 48,575 78%
</TABLE>
BALANCE SHEET DATA (US$)
(IN THOUSANDS, EXCEPT % CHANGE DATA)
JUNE 30, DECEMBER 31,
2000 1999 % CHANGE
Total assets $4,827,936 $4,623,160 4%
Debentures exchangeable into shares
of Chevron Corporation common stock $760,313 $760,313 --%
Senior convertible debentures $352,853 - NM
Other long-term debt $672,661 $1,026,808 -34%
Stockholders' equity $2,177,620 $2,025,520 8%
Working capital $356,097 $189,750 88%
Common shares outstanding $86,982 86,085 1%
NM Not Meaningful
###
<PAGE>
DEVON ENERGY CORPORATION
SUPPLEMENT TO NEWS RELEASE OF JULY 27, 2000
UNAUDITED QUARTERLY INFORMATION
PAGE 1 OF 5
<TABLE>
<CAPTION>
QUARTER ENDED JUNE 30, SIX MONTHS ENDED JUNE 30,
------------------------ -----------------------
PRODUCTION DATA (net of royalties) 2000 1999 % CHANGE 2000 1999 % CHANGE
---- ---- -------- ---- ---- --------
<S> <C> <C> <C> <C> <C> <C>
TOTAL PERIOD PRODUCTION
Gas (Bcf)
U.S.- Northern 28.7 16.4 75% 58.8 32.3 82%
U.S.- Southern 25.1 0.5 NM 47.4 1.0 NM
Canada 16.4 19.4 -15% 32.8 38.1 -14%
-------- -------- ------- --------
Total Gas 70.2 36.3 93% 139.0 71.4 95%
======== ======== ======= ========
Oil (MBbls)
U.S.- Northern 2,889 1,222 136% 5,733 2,513 128%
U.S.- Southern 1,413 9 NM 2,764 17 NM
Canada 1,162 1,275 -9% 2,364 2,541 -7%
Other International 357 - NM 655 - NM
-------- -------- ------- --------
Total Oil 5,821 2,506 132% 11,516 5,071 127%
======== ======== ======= ========
Natural Gas Liquids (MBbls)
U.S.- Northern 1,083 351 209% 2,235 665 236%
U.S.- Southern 362 - NM 812 - NM
Canada 168 164 2% 342 326 5%
-------- -------- ------- --------
Total Natural Gas Liquids 1,613 515 213% 3,389 991 242%
======== ======== ======= ========
AVERAGE DAILY PRODUCTION
Gas (Mcf)
U.S.- Northern 315,181 180,582 75% 323,188 178,431 81%
U.S.- Southern 276,074 5,495 NM 260,553 5,547 NM
Canada 180,308 212,604 -15% 180,143 210,541 -14%
-------- -------- ------- --------
Total Gas 771,563 398,681 94% 763,884 394,519 94%
======== ======== ======= ========
Oil (Bbls)
U.S.- Northern 31,750 13,428 136% 31,500 13,884 127%
U.S.- Southern 15,533 99 NM 15,188 94 NM
Canada 12,769 14,011 -9% 12,989 14,039 -7%
Other International 3,918 - NM 3,598 - NM
-------- -------- ------- --------
Total Oil 63,970 27,538 132% 63,275 28,017 126%
======== ======== ======= ========
Natural Gas Liquids (Bbls)
U.S.- Northern 11,904 3,857 209% 12,280 3,674 234%
U.S.- Southern 3,978 - NM 4,459 - NM
Canada 1,846 1,802 2% 1,879 1,801 4%
-------- -------- ------- --------
Total Natural Gas Liquids 17,728 5,659 213% 18,618 5,475 240%
======== ======== ======= ========
NM: Not meaningful.
</TABLE>
DEVON ENERGY CORPORATION
SUPPLEMENT TO NEWS RELEASE OF JULY 27, 2000
UNAUDITED QUARTERLY INFORMATION
PAGE 2 OF 5
<TABLE>
<CAPTION>
QUARTER ENDED JUNE 30, SIX MONTHS ENDED JUNE 30,
--------------------- ----------------------
PRICE DATA 2000 1999 % CHANGE 2000 1999 % CHANGE
---- ---- -------- ---- ---- --------
<S> <C> <C> <C> <C> <C> <C>
AVERAGE REALIZED PRICES (US$)
Gas ($/Mcf)
U.S.- Northern $ 3.15 $ 1.91 65% $ 2.73 $ 1.82 50%
U.S.- Southern $ 3.41 $ 2.02 69% $ 2.99 $ 1.85 62%
Canada $ 2.10 $ 1.39 51% $ 1.95 $ 1.37 42%
All Gas $ 3.00 $ 1.64 83% $ 2.63 $ 1.58 66%
Oil ($/Bbl)
U.S.- Northern $ 27.64 $ 16.19 71% $27.55 $ 13.61 102%
U.S.- Southern $ 26.89 $ 14.56 85% $27.09 $ 12.12 124%
Canada $ 23.02 $ 13.29 73% $23.38 $ 11.96 95%
Other International $ 10.21 - NM $ 8.69 - NM
All Oil $ 25.47 $ 14.71 73% $25.51 $ 12.78 100%
Natural Gas Liquids ($/Bbl)
U.S.- Northern $ 17.83 $ 10.49 70% $17.57 $ 9.33 88%
U.S.- Southern $ 19.24 NM NM $22.07 NM NM
Canada $ 24.78 $ 13.11 89% $24.95 $ 10.92 128%
All Liquids $ 18.87 $ 11.33 67% $19.39 $ 9.85 97%
AVERAGE BENCHMARK PRICES (US$)
Gas ($/Mcf) - Texas Gulf
Coast Index $ 3.35 $ 2.07 62% $ 2.89 $ 1.86 55%
Gas ($/Mcf) - NYMEX $ 3.44 $ 2.15 60% $ 2.99 $ 1.95 53%
Oil ($/Bbl) - West Texas
Intermediate $25.95 $ 15.10 72% $25.94 $ 12.75 103%
</TABLE>
DEVON ENERGY CORPORATION
SUPPLEMENT TO NEWS RELEASE OF JULY 27, 2000
UNAUDITED QUARTERLY INFORMATION
PAGE 3 OF 5
<TABLE>
<CAPTION>
STATEMENT OF OPERATIONS DATA (US$) QUARTER ENDED JUNE 30, SIX MONTHS ENDED JUNE 30,
-------------------------- ----------------------------
(IN THOUSANDS, EXCEPT PER SHARE AND % CHANGE DATA 2000 1999) % CHANGE 2000 1999 % CHANGE
---- ---- -------- ---- ---- --------
<S> <C> <C> <C> <C> <C> <C>
TOTAL REVENUES (NET OF ROYALTIES) $ 400,843 $ 104,312 284% $ 748,554 $ 191,578 291%
Oil sales 148,249 36,871 302% 293,793 64,784 353%
Gas sales 210,754 59,387 255% 366,286 112,938 224%
Natural gas liquids sales 30,433 5,835 422% 65,703 9,764 573%
Other 11,407 2,219 414% 22,772 4,092 457%
TOTAL PRE-TAX EXPENSES $ 247,474 $ 77,221 220% $ 487,005 $ 153,323 218%
Lease operating expenses 70,794 27,100 161% 136,687 54,520 151%
Production taxes 11,370 3,446 230% 21,790 6,415 240%
-------- --------- --------- --------
Total production and operating expenses 82,164 30,546 169% 158,477 60,935 160%
Depreciation, depletion and amortization
of property & equipment 113,151 35,763 216% 221,703 69,321 220%
Amortization of goodwill 10,361 - NM 20,693 - NM
General and administrative expenses 16,123 6,952 132% 32,773 13,175 149%
Interest expense 25,675 7,115 261% 50,951 13,779 270%
Deferred effects of change in currency
rates on subsidiary's long-term debt - (5,585) NM 2,408 (8,746) NM
Distributions on preferred securities - 2,430 -100% - 4,859 -100%
EARNINGS BEFORE INCOME TAXES 153,369 27,091 466% 261,549 38,255 584%
TOTAL INCOME TAX EXPENSE 62,635 10,882 476% 109,728 16,066 583%
Current 33,658 2,399 1303% 63,505 4,302 1376%
Deferred 28,977 8,483 242% 46,223 11,764 293%
NET EARNINGS $ 90,734 $ 16,209 460% $ 151,821 $ 22,189 584%
======== ======== ========= =========
NET EARNINGS APPLICABLE TO COMMON STOCKHOLDERS $ 88,300 $ 16,209 445% $ 146,953 $ 22,189 562%
EARNINGS PER COMMON SHARE
Basic $ 1.02 $ 0.33 209% $ 1.70 $ 0.46 270%
======== ======== ======== =========
Diluted $ 1.00 $ 0.33 203% $ 1.67 $ 0.46 263%
======== ======== ========= =========
WEIGHTED AVERAGE SHARES OUTSTANDING
Basic 86,756 48,679 78% 86,481 48,575 78%
</TABLE>
<TABLE>
<CAPTION>
DEVON ENERGY CORPORATION
SUPPLEMENT TO NEWS RELEASE OF JULY 27, 2000
UNAUDITED QUARTERLY INFORMATION
Page 4 of 5
PRO FORMA STATEMENT of OPERATIONS and PRODUCTION DATA (US$) (1)
(in thousands, except per share and % change data) Quarter Ended June 30, Six Months Ended June 30,
--------------------------------------------------------------------------------
2000 1999 % Change 2000 1999 % Change
---- ---- -------- ---- ---- --------
<S> <C> <C> <C> <C> <C> <C>
Total Revenues (net of royalties) $ 637,943 $216,912 194% $ 1,188,354 $372,778 219%
Oil sales 272,649 98,171 178% 540,593 167,484 223%
Gas sales 319,054 107,887 196% 552,086 186,238 196%
Natural gas liquids sales 33,533 7,935 323% 70,903 13,564 423%
Other 12,707 2,919 335% 24,772 5,492 351%
Total Pre-Tax Expenses $ 383,474 $636,221 -40% $ 754,305 $781,923 -4%
Lease operating expenses 114,494 59,600 92% 223,887 115,820 93%
Production taxes 21,470 6,246 244% 39,990 12,215 227%
------------- ----------- ------------- ------------
Total production and operating expenses 135,964 65,846 106% 263,877 128,035 106%
Depreciation, depletion and amortization
of property & equipment 172,251 60,063 187% 337,503 119,821 182%
Amortization of goodwill 10,361 - NM 20,693 - NM
General and administrative expenses 24,023 15,452 55% 48,873 26,775 83%
Expenses related to prior merger - 16,800 -100% - 16,800 -100%
Interest expense 40,875 17,415 135% 80,951 30,579 165%
Deferred effects of change in currency
rates on subsidiary's long-term debt - (5,585) NM 2,408 (8,746) NM
Distributions on preferred securities - 2,430 -100% - 4,859 -100%
Reduction in carrying value of oil and gas properties - 463,800 -100% - 463,800 -100%
Earnings (Loss) Before Income Taxes 254,469 (419,309) NM 434,049 (409,145) NM
Total Income Tax Expense 101,135 (137,018) NM 175,528 (133,434) NM
Current 36,358 1,799 1921% 72,505 4,402 1547%
Deferred 64,777 (138,817) NM 103,023 (137,836) NM
Net Earnings (Loss) Before Extraordinary Item 153,334 (282,291) NM 258,521 (275,711) NM
Extraordinary item - 4,200 -100% - 4,200 -100%
Net Earnings (Loss) $ 153,334 $ (286,491) NM $ 258,521 $ (279,911) NM
============= =========== ============= ============
Net Earnings (Loss) Applicable to Common
Stockholders $ 150,900 $ (286,491) NM $ 253,653 $ (279,911) NM
Earnings (Loss) per Common Share
Basic before extraordinary item $ 1.19 $ (3.50) NM $ 2.00 $ (3.64) NM
============= =========== ============= ============
Basic after extraordinary item $ 1.19 $ (3.55) NM $ 2.00 $ (3.69) NM
============= =========== ============= ============
Diluted before extraordinary item $ 1.17 $ (3.50) NM $ 1.97 $ (3.64) NM
============= =========== ============= ============
Diluted after extraordinary item $ 1.17 $ (3.55) NM $ 1.97 $ (3.69) NM
============= =========== ============= ============
Weighted Average Shares Outstanding
Basic 126,994 80,645 57% 126,675 75,833 67%
Production Data:
Oil (MBbls) 11,179 7,726 45% 22,094 12,877 72%
Gas (MMcf) 106,201 71,235 49% 209,970 113,264 85%
NGLs (MBbls) 1,762 673 162% 3,696 1,523 143%
Mboe 30,641 20,272 51% 60,785 33,277 83%
(1) Prepared under the pooling-of-interests method of accounting for business
combinations which combines the results of both Devon and Santa Fe Snyder
as if the two companies had always been combined. Santa Fe Snyder's
historical financial data has been restated to conform to Devon's
accounting policies. The pro forma information is presented for
illustrative purposes only. If the merger had occurred in the past, the
combined company's operating results might have been different from those
presented. Please refer to Form 10-Q for the period ended June 30, 2000 for
a more complete discussion of pro forma information.
</TABLE>
<TABLE>
<CAPTION>
DEVON ENERGY CORPORATION
SUPPLEMENT TO NEWS RELEASE OF JULY 27, 2000
UNAUDITED QUARTERLY INFORMATION
Page 5 of 5
BALANCE SHEET DATA (US$) June 30, December 31,
(in thousands, except % change data) 2000 1999 % Change
---- ---- --------
<S> <C> <C> <C>
Total Assets $ 4,827,936 $ 4,623,160 4%
Cash and cash equivalents 298,971 167,167 79%
Other current assets 329,671 250,027 32%
--------------- -------------
Total current assets 628,642 417,194 51%
Property and equipment (net) 3,179,761 3,155,920 1%
Investment in Chevron Corporation common stock 601,527 614,382 -2%
Goodwill, net of amortization 299,481 322,800 -7%
Other assets 118,525 112,864 5%
Total Liabilities $ 2,650,316 $ 2,597,640 2%
Current liabilities 272,545 227,444 20%
Other liabilities 160,062 192,210 -17%
Debentures exchangeable into shares of Chevron
Corporation common stock 760,313 760,313 --%
Senior convertible debentures 352,853 - NM
Other long-term debt 672,661 1,026,808 -34%
Deferred income taxes 431,882 390,865 10%
Stockholders' equity $ 2,177,620 $ 2,025,520 8%
Total Liabilities & Stockholders' Equity $ 4,827,936 $ 4,623,160 4%
Common Shares Outstanding 86,982 86,085 1%
STATEMENT of CASH FLOWS DATA (US$) Six Months Ended June 30,
(in thousands, except % change data) -------------------------------------------
2000 1999 % Change
---- ---- --------
Cash Flows From Operating Activities
Net earnings $ 151,820 $ 22,189 584%
Depreciation, depletion and amortization of property
and equipment 221,703 69,321 220%
Amortization of goodwill 20,693 - NM
Amortization of debt premium, net (1,932) - NM
Deferred effect of changes in currency rates
on subsidiary's long-term debt 2,408 (8,746) NM
Loss (gain) on sale of assets 44 (33) NM
Deferred income taxes 46,223 11,764 293%
Changes in assets and liabilities net of
effects in acquisitions of businesses (59,418) (8,584) 592%
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Net cash provided by operating activities $ 381,541 $ 85,911 344%
Cash Flows From Investing Activities
Capital Expenditures (303,826) (139,895) 117%
Other 42,850 5,476 683%
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Net cash used by investing activities $ (260,976) $ (134,419) 94%
Cash Flows From Financing Activities
Net cash provided by financing activities $ 12,003 $ 43,281 -72%
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