Devon Energy Announces Industry-First Variable Cash Dividend for Common Stockholders

KEY MESSAGES

• Board declares $0.19 per share variable cash dividend based on fourth-quarter results
• Variable dividend is in addition to previously declared fixed quarterly dividend of $0.11 per share
• Both fixed and variable dividends are payable on Mar. 31, 2021
  

OKLAHOMA CITY, Feb. 16, 2021 (GLOBE NEWSWIRE) -- Devon Energy Corp. (NYSE: DVN) announced today that its board of directors has declared a $128 million variable cash dividend in the amount of $0.19 per share based on the company’s pro forma fourth-quarter 2020 financial results. The variable dividend is in addition to Devon’s previously declared fixed quarterly dividend of $0.11 per share. Both the fixed and variable dividends are payable on Mar. 31, 2021 to shareholders of record at the close of business on Mar. 15, 2021.

“We are excited to reward shareholders and differentiate ourselves from peers by declaring an industry-first variable dividend,” said Rick Muncrief, president and CEO. “With our business scaled to consistently generate free cash flow, this innovative ‘fixed plus variable’ dividend framework is uniquely designed to enhance our ability to return meaningful and appropriate amounts of cash to shareholders across a variety of market conditions.”

The company’s “fixed plus variable” dividend framework was implemented following closing of the merger with WPX Energy on Jan. 7, 2021. This cash-return strategy is designed to pay a sustainable fixed dividend and evaluate a variable dividend on a quarterly basis. After the fixed dividend is funded, up to 50 percent of the remaining excess free cash flow in each quarter may be distributed to shareholders through a variable dividend.

ABOUT DEVON ENERGY

Devon Energy is a leading oil and gas producer in the U.S. with a premier multi-basin portfolio headlined by a world-class acreage position in the Delaware Basin. Devon’s disciplined cash-return business model is designed to achieve strong returns, generate free cash flow and return capital to shareholders, while focusing on safe and sustainable operations. For more information, please visit www.devonenergy.com.

FORWARD LOOKING STATEMENTS

This press release contains “forward-looking statements” within the meaning of the federal securities laws. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of Devon. These risks include, but are not limited to: the risk that Devon may reduce, suspend or totally eliminate dividend payments in the future, whether variable or fixed, due to insufficient liquidity or other factors; and the other risks identified in Devon’s 2020 Annual Report on Form 10-K and its other filings with the Securities and Exchange Commission. Investors are cautioned that any such statements are not guarantees of future performance and that actual results or developments may differ materially and adversely from those projected in the forward-looking statements. The forward-looking statements in this press release are made as of the date hereof, and Devon does not undertake, and expressly disclaim, any duty to update or revise our forward-looking statements based on new information, future events or otherwise.