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Devon Energy Reports Second - Quarter 2021 Financial and Operational Results OKLAHOMA CITY - Aug. 3 , 2021 - Devon Energy Corp. ( NYSE : DVN ) today reported financial and operational results for the second - quarter 2021. Supplemental financial tables and forward - looking guidance are available on the company's website at www.devonenergy.com . KEY FINANCIAL AND OPERATIONAL HIGHLIGHTS devon ● Fixed - plus - variable dividend increased by 44 percent to $ 0.49 per share ● Investment - grade financial strength enhanced with redemption of $ 1.2 billion of debt year - to - date Operating cash flow increased 85 percent from the prior quarter to $ 1.1 billion Free cash flow generation accelerated to $ 589 million , a 6 - fold increase from the prior quarter Oil production exceeded midpoint guidance , averaging 291,000 barrels per day in the second quarter Delaware Basin efficiency gains drove capital expenditures 9 percent below guidance Merger synergies improved corporate cost structure by 27 percent year over year ● ● CEO PERSPECTIVE Devon Energy Corporation 333 West Sheridan Avenue Oklahoma City , OK 73102-5015 " 2021 is shaping up to be an excellent year for Devon that can best be defined as one of comprehensive execution across all elements of our strategy , resulting in expanded margins , growth in free cash flow and the return of significant value to our shareholders through higher dividends and the reduction of debt , " said Rick Muncrief , president and CEO . " With our business building momentum and generating increasing amounts of free cash flow , a clear differentiator for Devon is the ability to accelerate cash returns through our fixed - plus - variable dividend framework , " said Muncrief . " The power of this uniquely designed dividend strategy was demonstrated by our announcement to increase the dividend by 44 percent this quarter . " " As I look to the second half of the year , the investment proposition for Devon only continues to strengthen , " Muncrief added . " With our disciplined capital allocation framework , we are positioned to have the highest forward dividend yield in the entire S & P 500 index that is accompanied by a strong balance sheet projected to have a leverage ratio of less than 1 - turn by year end . " FINANCIAL SUMMARY Devon reported net earnings of $ 256 million , or $ 0.38 per diluted share , in the second quarter of 2021. Adjusting for items analysts typically exclude from estimates , Devon's core earnings were $ 408 million or $ 0.60 per diluted share . The company's operating cash flow totaled $ 1.1 billion in the second quarter , an 85 percent increase from the prior quarter . This level of cash flow funded all capital requirements and generated $ 589 million of free cash flow . Based on the strong financial performance in the second quarter , Devon's board declared a fixed - plus - variable dividend of $ 0.49 per share . This represents a 44 percent increase compared to the payout declared for the evious quarter . The dividend is payable on Sep. 30 , 2021 to shareholders of record at the close of business on Sep. 13 , 2021 . Devon's investment - grade financial position also continued to strengthen with the redemption of $ 710 million of debt in the quarter . This action brings the total amount of debt reduced to $ 1.2 billion year to date and the company exited the quarter with excellent liquidity of $ 1.5 billion of cash on hand . 1