Striving for increased transparency

This report was prepared with content correlated to voluntary frameworks and standards established by the Task Force on Climate-Related Financial Disclosures (TCFD), Ipieca, Sustainability Accounting Standards Board (SASB) and United Nations Sustainable Development Goals. Devon continues to strive for increased transparency on issues that are top-of-mind for our stakeholders, as we believe ESG transparency is important to building a sustainable and economically competitive company.



TCFD
Recommendations of the Task Force on Climate-related Financial Disclosures (Oct. 2021)

The TCFD seeks to develop recommendations for voluntary climate-related financial disclosures as a tool for investors and other stakeholders to assess risks associated with climate change. Devon published its fourth Climate Change Assessment Report in 2023, a direct result of our ongoing commitment to transparency.


IPIECA
Sustainability reporting guidance for the oil and gas industry (4th edition, 2020)

The primary framework for this report is the Sustainability reporting guidance for the oil and gas industry developed by Ipieca, the American Petroleum Institute (API) and the International Association of Oil & Gas Producers (IOGP). The issues and indicators in this guidance have been selected based on industry consensus, together with significant insights and suggestions from an independent panel of stakeholders with expertise in the sector and sustainability reporting. The Ipieca index identifies where the referenced data may be found in this report or other publicly available disclosures.


SASB
Oil and Gas Exploration and Production Sustainability Accounting Standard (version 2023-12)

The Sustainability Accounting Standards Board (SASB) connects businesses and investors on the financial impacts of sustainability. SASB’s mission is to help businesses around the world identify, manage and report on the sustainability topics that matter most to their investors.

In response to growing investor interest in SASB, Devon conducted a comparative analysis using SASB indicators against our current reporting process. As of 2023, we still rely heavily on CDP Climate and our own materiality assessment to determine our top issues and methodologies for reporting. Various SASB indicators request different reporting methodologies but use the same underlying raw data that we use for our CDP responses. As such, Devon intends to use the SASB materiality profile for the oil and gas industry as an additional reference point when assessing the sustainability issues most likely to impact our business. We will determine what additional SASB-specific measurements Devon may adopt in the future based upon future assessments.



United Nations Sustainable Development Goals

At Devon, one way we reflect on our role in society is by viewing our work through the lens of the U.N. Sustainable Development Goals, or SDGs. The SDGs are the globally agreed-upon action plan for providing affordable and clean energy, protecting our planet, and promoting peace and prosperity for all people. We identified nine SDGs for which we believe Devon makes the greatest contribution. The following table summarizes those nine SDGs and where discussion of those topics can be found in this report.


American Exploration & Production Council Framework

The American Exploration and Production Council (AXPC) is a national trade association representing the largest independent oil and natural gas exploration and production companies in the United States. To promote transparency and consistency in ESG reporting among U.S. upstream exploration and production companies, AXPC launched its voluntary ESG Metrics Framework and Template in February 2021. AXPC’s framework includes five key metrics groupings – Greenhouse Gas Emissions, Flaring, Spills, Water Use and Safety. Note, Devon’s performance data presented in this AXPC framework table may differ in scope, definition and methodology from Devon’s reported data elsewhere in this report.

American Petroleum Institute Framework*


* Assets operated by the company as of December 31 are reported as if owned for the entire reporting year as required by the United States Environmental Protection Agency’s Greenhouse Gas Reporting Program.

Disclaimer

This report contains terms, standards and reporting metrics used by Ipieca, Task Force on Climate-Related Financial Disclosures (TCFD), Sustainability Accounting Standards Board (SASB) and United Nations’ Sustainable Development Goals (UNSDG, together with Ipieca, TCFD and SASB, the “Frameworks”). The contents of this report are intended as guidance only and may not be comprehensive in scope or coverage, including as to such Frameworks. Devon does not intend to and is not endorsing or adopting phrases, specific terms or recommendations from the Frameworks. Nonfinancial and non-GAAP information, such as that included in this report, is subject to more potential limitations than financial information, given the methods used for calculating or estimating such information. Devon does not make any express or implied representations or warranties and shall not assume any liability whatsoever for providing guidance or using these Frameworks, or for any errors, mistakes or omissions in this report.

Additionally, the concept of materiality used in this report is not intended to correspond to the concept of materiality associated with the disclosures required by the U.S. Securities and Exchange Commission (the “SEC”). Please refer to our 2024 Annual Report on Form 10-K and our other filings with the SEC for information about the risks and uncertainties to our business and operations, and our industry in general. This report also incorporates a greater number of estimates and assumptions than many of our required disclosures, as well as longer time frames. This means that many of the matters discussed in this report are not, or currently cannot be ascertained to be, “material” as that term is defined by the U.S. federal securities laws. While certain matters discussed in this report may be significant, any significance should not be read as necessarily rising to the level of materiality used for the purposes of complying with the U.S. federal securities laws, even where we use the word “material” or “materiality” in this report. Moreover, given the inherent uncertainty of the estimates, assumptions and timelines contained in this report, we may not be able to
anticipate whether or the degree to which we will be able to meet our plans, targets or goals in advance.

This report covers our owned and operated businesses and does not address the performance or operations of our suppliers, contractors and partners unless otherwise noted. This report does not distinguish between the activities and operations of our ultimate parent company (Devon Energy Corporation) and those of our subsidiaries.

This report includes “forward-looking statements” as defined by the SEC and federal securities laws. Any statement that is not a historical statement of fact should be treated as a forward-looking statement. Such statements include, without limitation, statements that relate to the manner in which Devon intends to conduct certain of its activities, based on management’s current plans and expectations. Such statements are not promises or guarantees of future conduct or policy and are subject to a number of assumptions, risks and uncertainties, many of which are beyond our control. See the Safe Harbor disclosure at the end of this report. Devon’s actual activities, including the development, implementation or continuation of any goal, program, target or initiative discussed in this report may differ materially in the future. The forward-looking statements in this report speak only as of the date this report is originally published, even if subsequently made available by Devon on its website or otherwise, and are based on management’s expectations as of such date. Devon does not undertake, and expressly disclaims, any obligation to update the forward-looking statements as a result of new information, future events or otherwise.

Safe Harbor

Some of the information provided in this report includes “forward-looking statements” as defined by the SEC and federal securities laws, including, but not limited to, those statements regarding our net zero targets, emission reduction targets and other climate and environmental-related goals, strategies and plans. Forward-looking statements are often, but not always, identified by use of the words “goals,” “achievements,” “forecasts,” “projections,” “estimates,” “plans,” “expectations, “targets,” “opportunities,” “potential,” “outlook” and other similar terminology. Such statements concerning future performance are subject to a variety of risks and uncertainties that could cause Devon’s actual results to differ materially, and adversely, from the forward-looking statements contained herein. Readers should not place undue reliance on any forward-looking statement. Moreover, many of the assumptions, standards, metrics and measurements used in preparing this report continue to evolve and are based on assumptions believed to be reasonable at the time of preparation, but should not be considered guarantees or promises of future performance. Actual results, conditions and outcomes, whether financial or otherwise, may differ materially, and adversely, from those expressed or implied by any of the forward-looking statements contained in this report due to a variety of factors, including, among others, global socio-demographic and economic trends, energy prices, technological innovations (including, but not limited to, the pace of technological developments with respect to leak detection), climate-related conditions and weather events, legislative and regulatory changes, our ability to gather and verify data regarding environmental impacts, our ability to successfully implement various initiatives throughout the organization under expected time frames, the compliance of various third parties, including our contractors, with our policies and procedures, and legal requirements and other unforeseen events or conditions. Other risks and uncertainties are described in more detail in the “Risk Factors” section of our most recent Form 10-K and in our other filings with the SEC and other disclosures. Devon has not, and does not intend to, independently verify third-party data.

The forward-looking statements provided in this report are based on management’s examination of historical operating trends, the information which was used to prepare reserve reports and other data in Devon’s possession or available from third parties. Devon cautions that its future oil, natural gas and natural gas liquids (“NGL”) production, revenues and expenses are subject to all of the risks and uncertainties normally incident to the exploration for and development, production and sale of oil, natural gas and NGLs. These risks include, but are not limited to, price volatility, inflation or lack of availability of goods and services, environmental risks, drilling risks, political changes, changes in laws or regulations, the uncertainty inherent in estimating future oil and gas production or reserves and, as noted above, other risks identified in our Form 10-K and our other filings with the SEC.