Devon Energy Announces Natural Gas and Oil Hedges

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OKLAHOMA CITY, Feb. 4 /PRNewswire-FirstCall/ -- Devon Energy Corporation (NYSE: DVN) announced today that it has entered into natural gas and oil hedges for the year 2008. The hedges cover approximately 40 percent of Devon's total 2008 forecasted production on an oil-equivalent basis. The company reported volumes and average prices applicable to the hedges.

Natural Gas Hedges

Devon's natural gas price hedges are composed of financial price collar contracts and price swap contracts. The price collar contracts set floor and ceiling prices for a portion of Devon's natural gas production. The price swap contracts fix the price for a portion of Devon's natural gas production. The floor and ceiling prices and swap prices are based on the NYMEX price. The NYMEX price is based on first-of-the-month Henry Hub price as published monthly by Inside FERC. If the NYMEX price is outside of the ranges set by the floor and ceiling prices in the various collars, Devon and the counterparty to the collars will settle the difference. Any such settlements will either increase or decrease Devon's gas revenues for the period.

The following table lists the natural gas price collar contracts and price swap contracts for 2008 entered into through February 1, 2008.


                             Price Collar Contracts       Price Swap Contracts
                            Floor Price    Ceiling Price
                                                 Weighted          Weighted
                              Floor    Ceiling    Average           Average
                     Volume   Price     Range      Price   Volume    Price
    Quarter        (MMBtu/d)($/MMBtu) ($/MMBtu)  ($/MMBtu)(MMBtu/d)($/MMBtu)
    First Quarter    625,495 $7.50  $9.00 - $10.25 $9.43   364,670   $8.23
    Second Quarter 1,055,000 $7.50  $9.00 - $10.25 $9.42   620,000   $8.24
    Third Quarter  1,055,000 $7.50  $9.00 - $10.25 $9.42   620,000   $8.24
    Fourth Quarter 1,055,000 $7.50  $9.00 - $10.25 $9.42   620,000   $8.24
    2008 Average     948,210 $7.50  $9.00 - $10.25 $9.42   556,516   $8.24



    Oil Hedges

Devon's oil price hedges are composed of financial price collar contracts. The price collar contracts set a floor and ceiling price for a portion of Devon's oil production. The floor and ceiling prices are based on the NYMEX price. The NYMEX price is the monthly average of settled prices on each trading day for West Texas Intermediate Crude oil delivered at Cushing, Oklahoma. If the NYMEX price is outside of the ranges set by the floor and ceiling prices in the various collars, Devon and the counterparty to the collars will settle the difference. Any such settlements will either increase or decrease Devon's oil revenues for the period.

The following table lists the oil price collar contracts for 2008 entered into through February 1, 2008.

                                         Price Collar Contracts
                                   Floor Price           Ceiling Price
                                                                     Weighted
                                      Floor           Ceiling         Average
                           Volume     Price            Range           Price
    Quarter               (Bbl/d)   ($/Bbl)          ($/Bbl)         ($/Bbl)
    First Quarter          21,011     $70.00     $132.50 - $148.00    $140.31
    Second Quarter         22,000     $70.00     $132.50 - $148.00    $140.20
    Third Quarter          22,000     $70.00     $132.50 - $148.00    $140.20
    Fourth Quarter         22,000     $70.00     $132.50 - $148.00    $140.20
    2008 Average           21,754     $70.00     $132.50 - $148.00    $140.23


Devon Energy Corporation is an Oklahoma City-based independent energy company engaged in oil and gas exploration and production. Devon is the largest U.S.-based independent oil and gas producer and is included in the S&P 500 Index. For additional information, visit http://www.devonenergy.com.

This press release includes "forward-looking statements" as defined by the Securities and Exchange Commission. Such statements are those concerning the 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. These statements are based on certain assumptions made by the company based on its experience and perception of historical trends, current conditions, expected future developments and other factors it believes are appropriate in the circumstances. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the company.

SOURCE Devon Energy Corporation

CONTACT: investors, Zack Hager, +1-405-552-4526, or media, Chip Minty, +1-405-228-8647, both of Devon Energy Corporation