Devon Energy Announces Natural Gas and Oil Hedges

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Devon Energy Announces Natural Gas and Oil Hedges
    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
http://www.devonenergy.com
http://www.prnewswire.com/comp/118040.html /
CONTACT:
investors, Zack Hager, +1-405-552-4526, or
media, Chip Minty, +1-405-228-8647, both of Devon Energy
Corporation