EXHIBIT 99.1

20 North Broadway	Telephone: (405) 235-3611
Oklahoma City, Oklahoma 73102-8260	Fax: (405) 552-4667

NEWS RELEASE

Investor contact:	Zack Hager
	(405) 552-4526
Media contact:	Brian Engel
	(405) 228-7750

DEVON ENERGY EARNS $651 MILLION IN FIRST QUARTER 2007; INCREASES OIL AND GAS PRODUCTION 12 PERCENT

OKLAHOMA CITY — May 2, 2007 — Devon Energy Corporation (NYSE:DVN) today reported net earnings of $651 million, or $1.46 per common share, ($1.44 per diluted common share), for the quarter ended March 31, 2007. In the first quarter of 2006, Devon earned $700 million, or $1.58 per common share ($1.56 per diluted common share).

     The company’s reported net earnings increased 12 percent compared with the fourth quarter of 2006. Fourth-quarter 2006 net earnings were $582 million, or $1.31 per common share ($1.29 per diluted common share).

     Securities analysts typically exclude certain items from their published estimates. In aggregate, these items were offsetting and had no effect upon Devon’s first-quarter 2007 net earnings. The adjusting items are discussed in detail later in this news release.

12 Percent Production Growth Underpinned by Operational Milestones

     Oil and gas production from continuing operations increased 12 percent in the first quarter of 2007 to 52.9 million oil-equivalent barrels (Boe). This was Devon’s fourth consecutive quarter of production increases from retained properties. The steady growth in production reflects the strength of the company’s underlying property base. Further production growth in the remaining quarters of 2007 and in 2008 will be fueled by growth in all the company’s geographic regions.

     Devon drilled 585 successful wells in the first quarter of 2007. This represents an overall success rate of 98 percent. Following are highlights of operations conducted in the first quarter of 2007.

• Devon’s net production in the Barnett Shale field in north Texas averaged a record 730 million cubic feet of gas equivalent per day in the first quarter of 2007. This was a 28 percent increase compared with first-quarter 2006 average production and a six percent increase compared with the fourth quarter of 2006.

Page 1 of 12

• The company drilled its 700^th operated horizontal well in the Barnett Shale in the first quarter of 2007. Devon plans to drill more than 385 wells in the Barnett in 2007, and more than 90 percent of the planned wells will be horizontals.

• In the Gulf of Mexico, subsea preparations continued at the Merganser field. Devon expects to produce about 50 million cubic feet of gas per day from Merganser when the deepwater Independence Hub becomes operational in the third quarter of this year.

• Offshore Brazil, the Polvo platform was readied for drilling and commissioning. Devon expects to commence oil production at Polvo in the next few months.

• In Azerbaijan, Devon achieved its first full quarter of increased production following payout of its carried interest in the ACG field. Devon’s net production from ACG averaged more than 35,000 barrels of oil per day in the quarter.

Increased Production Boosts Revenues

     Combined oil, gas and natural gas liquids production from continuing operations averaged 588 thousand Boe per day in the quarter ended March 31, 2007. This was a 12 percent increase in production from continuing operations over the first quarter of 2006. The production growth was largely driven by the United States onshore and Azerbaijan.

     Combined daily production from continuing operations climbed two percent in the first quarter 2007 over the fourth quarter of 2006. Devon expects to produce 219 to 221 million Boe from continuing operations in the full year of 2007, representing a 10 percent increase over 2006.

     Sales of oil, natural gas and natural gas liquids increased three percent to $2.1 billion in the first quarter of 2007 compared with the same quarter in 2006. The 12 percent increase in daily oil and gas production more than offset lower realized natural gas and natural gas liquids prices.

     Devon’s first-quarter 2007 average realized price for natural gas decreased 15 percent to $6.07 per thousand cubic feet compared with $7.16 per thousand cubic feet in the first quarter of 2006. The company’s average realized oil price increased one percent to $52.11 per barrel in the first quarter of 2007 compared with $51.70 per barrel in the year-ago period. The realized natural gas liquids price decreased three percent to $29.33 per barrel from $30.18 per barrel in the first quarter of 2006.

     Marketing and midstream operating profit was $109 million in the quarter ended March 31, 2007, compared with $120 million in the comparable period in 2006. The quarterly decrease was primarily due to lower natural gas prices and lower third-party throughput volumes.

Rising Expenses Reflect Rising Production

     Lease operating expenses (LOE) in the first quarter of 2007 increased to $430 million. On a unit of production basis, first-quarter 2007 LOE was $8.13 per Boe, or 16 percent higher than in the first quarter of 2006. The increase in unit LOE in the 2007 quarter reflects higher oil transportation costs, casualty insurance premiums, increased workover activity and generally higher industry prices for oilfield services and supplies. The increase in oil transportation costs is largely related to higher production volumes in Azerbaijan.

Page 2 of 12

     Depreciation, depletion and amortization (DD&A) of oil and gas properties increased 32 percent to $587 million in the first quarter of 2007. Unit DD&A increased 18 percent to $11.09 per Boe.

     First-quarter general and administrative expenses (G&A) increased 33 percent to $119 million in 2007 compared with 2006. Higher employee-related costs were the largest contributor to the quarterly increase in G&A. Devon has increased the size of its technical workforce in response to expanding levels of exploration and development activity and opportunities.

     Interest expense for the first quarter of 2007 increased nine percent to $110 million. The increase reflects higher commercial paper balances offset in part by an increase in capitalized interest and lower long-term debt balances.

African Divestitures Progressing; Reported as Discontinued Operations

     In the fourth quarter of 2006, Devon announced its intention to divest its assets and terminate operations in Egypt. In April 2007, Devon entered into an agreement to sell its Egyptian assets for $375 million. The sale is expected to close in the third quarter of 2007.

     In the first quarter of 2007, the company announced its intentions to divest its remaining assets in Africa and terminate African operations. Data rooms are now open in Houston and London for divestiture of the West African assets, and bids are expected in the third quarter.

     In accordance with accounting standards, Devon has reclassified the assets, liabilities and results of its operations in Egypt and West Africa as discontinued operations for all accounting periods presented in this release. Although revenues and expenses for prior periods were reclassified, there was no impact upon previously reported net earnings. Included with the financial information that follows is a table of revenues, expenses and production categories and the amounts reclassified as discontinued operations for each period presented.

Balance Sheet Remains Strong

     Cash flow before balance sheet changes totaled $1.5 billion in the first quarter of 2007. The company used cash flow and cash on hand to fund $1.3 billion of exploration and development expenditures and $300 million of other capital expenditures during the quarter.

     Devon also repaid $348 million of commercial paper during the first quarter of 2007 utilizing cash and short term investments. The company’s net debt to adjusted capitalization was approximately 23 percent at March 31, 2007. Reconciliations of cash flow before balance sheet changes, net debt and adjusted capitalization, which are non-GAAP measures, are provided in this release.

Items Excluded from Published Earnings Estimates

     Devon’s reported net earnings include items of income and expense that are typically excluded by securities analysts in their published estimates of the company’s financial results. These items and their effects upon reported earnings for the first quarter of 2007 were as follows:

• A change in fair value of financial instruments decreased first-quarter earnings by $1 million pre-tax (no effect after tax).

Page 3 of 12

• An unrealized loss on natural gas derivative instruments decreased first-quarter 2007 earnings by $32 million pre-tax ($21 million after tax).

• The decisions to exit Egypt and West Africa generated financial benefits that increased first-quarter 2007 earnings by $40 million pre-tax ($21 million after tax).

     The following table summarizes the effects of these items on first-quarter 2007 earnings and income taxes.

Summary of Items Typically Excluded by Securities Analysts — First Quarter 2007
(in millions)

	Pretax											After-tax			Cash Flow Before
	Earnings			Income Tax Effect								Earnings			Balance Sheet
	Effect			Current		Deferred			Total			Effect			Changes Effect
Change in fair value of financial instruments	$	(1	)		—		(1	)		(1	)		—			—
Unrealized loss on natural gas derivatives		(32	)		—		(11	)		(11	)		(21	)		—
Financial benefits generated by decision to exit Africa		40			—		19			19			21			—
Totals	$	7			—		7			7			—			—

     In aggregate, these items had no effect on first-quarter 2007 net earnings.

Conference Call to be Webcast Today

     Devon will discuss its first-quarter 2007 financial and operating results in a conference call webcast today. The webcast will begin at 10 a.m. Central Time (11 a.m. Eastern Time). The webcast may be accessed from Devon’s internet home page at www.devonenergy.com.

This press release includes “forward-looking statements” as defined by the Securities and Exchange Commission. Such statements are those concerning 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. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the company. Statements regarding future drilling and production are subject to all of the risks and uncertainties normally incident to the exploration for and development and production of oil and gas. These risks include, but are not limited to, inflation or lack of availability of goods and services, environmental risks, drilling risks and regulatory changes. Investors are cautioned that any such statements are not guarantees of future performance and that actual results or developments may differ materially from those projected in the forward-looking statements.

     Devon Energy Corporation is an Oklahoma City-based independent energy company engaged in oil and gas exploration and production. Devon is one of the world’s leading independent oil and gas producers and is included in the S&P 500 Index. For more information about Devon, please visit our website at www.devonenergy.com.

Page 4 of 12

DEVON ENERGY CORPORATION
FINANCIAL AND OPERATIONAL INFORMATION

PRODUCTION DATA (net of royalties)	Quarter Ended
All periods exclude discontinued operations from Egypt and West Africa	March 31,
	2007		2006
Total Period Production
Natural Gas (Bcf)
U.S. Onshore		127.6		113.5
U.S. Offshore		18.6		16.5
Total U.S.		146.2		130.0
Canada		55.4		59.1
International		0.3		0.6
Total Natural Gas		201.9		189.7
Oil (MMBbls)
U.S. Onshore		2.8		2.8
U.S. Offshore		1.7		2.2
Total U.S.		4.5		5.0
Canada		3.5		3.2
International		5.3		1.6
Total Oil		13.3		9.8
Natural Gas Liquids (MMBbls)
U.S. Onshore		4.8		4.5
U.S. Offshore		0.1		0.1
Total U.S.		4.9		4.6
Canada		1.1		1.2
International		—		—
Total Natural Gas Liquids		6.0		5.8
Oil Equivalent (MMBoe)
U.S. Onshore		28.9		26.2
U.S. Offshore		4.9		5.1
Total U.S.		33.8		31.3
Canada		13.8		14.3
International		5.3		1.7
Total Oil Equivalent		52.9		47.3
Average Daily Production
Natural Gas (MMcf)
U.S. Onshore		1,418.5		1,261.2
U.S. Offshore		206.4		182.9
Total U.S.		1,624.9		1,444.1
Canada		615.0		656.3
International		3.0		7.0
Total Natural Gas		2,242.9		2,107.4
Oil (MBbls)
U.S. Onshore		30.7		31.2
U.S. Offshore		19.1		24.3
Total U.S.		49.8		55.5
Canada		39.0		35.7
International		58.6		17.9
Total Oil		147.4		109.1
Natural Gas Liquids (MBbls)
U.S. Onshore		53.2		49.8
U.S. Offshore		1.4		1.4
Total U.S.		54.6		51.2
Canada		12.3		13.6
International		—		—
Total Natural Gas Liquids		66.9		64.8
Oil Equivalent (MBoe)
U.S. Onshore		320.3		291.2
U.S. Offshore		54.9		56.3
Total U.S.		375.2		347.5
Canada		153.8		158.6
International		59.2		19.1
Total Oil Equivalent		588.2		525.2

Page 5 of 12

DEVON ENERGY CORPORATION
FINANCIAL AND OPERATIONAL INFORMATION

REALIZED PRICE DATA	Quarter Ended
(average realized prices)	March 31,
	2007		2006
Realized Prices
Natural Gas ($/Mcf)
U.S. Onshore	$	5.76	$	6.89
U.S. Offshore	$	7.19	$	8.26
Total U.S.	$	5.94	$	7.07
Canada	$	6.43	$	7.37
International	$	3.21	$	6.07
Total Natural Gas	$	6.07	$	7.16
Oil ($/Bbl)
U.S. Onshore	$	51.04	$	57.58
U.S. Offshore	$	54.13	$	60.13
Total U.S.	$	52.22	$	58.70
Canada	$	43.51	$	38.14
International	$	57.72	$	56.95
Total Oil	$	52.11	$	51.70
Natural Gas Liquids ($/Bbl)
U.S. Onshore	$	27.54	$	26.61
U.S. Offshore	$	29.51	$	36.65
Total U.S.	$	27.59	$	26.89
Canada	$	37.03	$	42.56
International	$	—	$	—
Total Natural Gas Liquids	$	29.33	$	30.18
Oil Equivalent ($/Boe)
U.S. Onshore	$	34.98	$	40.58
U.S. Offshore	$	46.60	$	53.81
Total U.S.	$	36.68	$	42.72
Canada	$	39.71	$	42.73
International	$	57.40	$	55.69
Total Oil Equivalent	$	39.56	$	43.20

BENCHMARK PRICES	Quarter Ended
(average prices)	March 31,
	2007		2006
Benchmark Prices
Natural Gas ($/Mcf) — Henry Hub	$	6.77	$	9.01
Oil ($/Bbl) — West Texas Intermediate (Cushing)	$	58.33	$	63.41

PRICE DIFFERENTIALS, EXCLUDING EFFECTS OF HEDGES	Quarter Ended
(average floating price differentials from benchmark prices)	March 31,
	2007			2006
Price Differentials
Natural Gas ($/Mcf)
U.S. Onshore	$	(0.85	)	$	(2.12	)
U.S. Offshore	$	0.42		$	(0.75	)
Total U.S.	$	(0.69	)	$	(1.94	)
Canada	$	(0.12	)	$	(1.38	)
International	$	(3.56	)	$	(2.94	)
Total Natural Gas	$	(0.54	)	$	(1.78	)
Oil ($/Bbl)
U.S. Onshore	$	(7.29	)	$	(5.83	)
U.S. Offshore	$	(4.20	)	$	(3.28	)
Total U.S.	$	(6.11	)	$	(4.71	)
Canada	$	(14.82	)	$	(25.27	)
International	$	(0.61	)	$	(6.46	)
Total Oil	$	(6.22	)	$	(11.71	)

Page 6 of 12

DEVON ENERGY CORPORATION
FINANCIAL AND OPERATIONAL INFORMATION

CONSOLIDATED STATEMENTS OF OPERATIONS	Quarter Ended
(in millions, except per share data)	March 31,
	2007			2006
Revenues
Oil sales	$	691			508
Gas sales		1,226			1,358
Natural gas liquids sales		177			176
Marketing & midstream revenues		379			458
Total revenues		2,473			2,500
Expenses and other income, net
Lease operating expenses		430			331
Production taxes		80			83
Marketing & midstream operating costs and expenses		270			338
Depreciation, depletion and amortization of oil and gas properties		587			443
Depreciation and amortization of non-oil and gas properties		46			41
Accretion of asset retirement obligation		18			10
General & administrative expenses		119			90
Interest expense		110			101
Change in fair value of financial instruments		1			12
Other income, net		(26	)		(29	)
Total expenses and other income, net		1,635			1,420
Earnings from continuing operations before income tax expense		838			1,080
Income tax expense
Current		189			224
Deferred		75			140
Total income tax expense		264			364
Earnings from continuing operations		574			716
Discontinued operations
Earnings from discontinued operations before income tax expense		137			47
Income tax expense		60			63
Earnings (loss) from discontinuing operations		77			(16	)
Net earnings		651			700
Preferred stock dividends		2			2
Net earnings applicable to common stockholders	$	649		$	698
Net earnings per weighted average common share outstanding
Basic	$	1.46			1.58
Diluted	$	1.44			1.56
Basic weighted average shares outstanding		444			442
Diluted weighted average shares outstanding		450			449

Page 7 of 12

DEVON ENERGY CORPORATION
FINANCIAL AND OPERATIONAL INFORMATION

CONSOLIDATED BALANCE SHEETS
(in millions)	March 31, 2007		December 31, 2006
			(Audited)
Assets
Current assets
Cash and cash equivalents	$	615	$	692
Short-term investments		275		574
Accounts receivable		1,361		1,324
Deferred income taxes		66		102
Current assets held for sale		252		232
Other current assets		167		288
Total current assets		2,736		3,212
Property and equipment, at cost, based on the full cost method of accounting for oil and gas properties ($3,276 and $3,293 excluded from amortization in 2007 and 2006, respectively)		41,536		39,585
Less accumulated depreciation, depletion and amortization		17,128		16,429
Net property and equipment		24,408		23,156
Investment in Chevron Corporation common stock, at fair value		1,049		1,043
Goodwill		5,741		5,706
Assets held for sale		1,680		1,619
Other assets		364		327
Total Assets	$	35,978	$	35,063
Liabilities and Stockholders’ Equity
Current liabilities
Accounts payable — trade	$	1,236	$	1,154
Revenues and royalties due to others		476		522
Income taxes payable		192		82
Short-term debt		1,857		2,205
Accrued interest payable		81		114
Current portion of asset retirement obligation		55		53
Current liabilities associated with assets held for sale		222		173
Accrued expenses and other current liabilities		321		342
Total current liabilities		4,440		4,645
Debentures exchangeable into shares of Chevron Corporation common stock		732		727
Other long-term debt		4,839		4,841
Fair value of financial instruments		309		302
Asset retirement obligation		1,152		804
Liabilities associated with assets held for sale		450		429
Other liabilities		630		583
Deferred income taxes		5,270		5,290
Stockholders’ equity
Preferred stock		1		1
Common stock		44		44
Additional paid-in capital		6,897		6,840
Retained earnings		10,055		9,114
Accumulated other comprehensive income		1,159		1,444
Treasury stock		—		(1	)
Stockholders’ Equity		18,156		17,442
Total Liabilities & Stockholders’ Equity	$	35,978	$	35,063
Common Shares Outstanding		445		444

Page 8 of 12

DEVON ENERGY CORPORATION
FINANCIAL AND OPERATIONAL INFORMATION

CONSOLIDATED STATEMENTS OF CASH FLOWS
(in millions)	Quarter Ended March 31,
	2007			2006
Cash Flows From Operating Activities
Net earnings	$	651		$	700
(Earnings) loss from discontinued operations, net of tax		(77	)		16
Adjustments to reconcile net earnings from continuing operations to net cash provided by operating activities:
Depreciation, depletion and amortization		633			484
Deferred income tax expense		75			140
Net gain on sales of non-oil and gas property and equipment		—			(5	)
Other non-cash charges		75			39
Changes in assets and liabilities:
(Increase) decrease in:
Accounts receivable		(29	)		241
Other current assets		(10	)		(10	)
Long-term other assets		(25	)		4
Increase (decrease) in:
Accounts payable		20			(162	)
Income taxes payable		207			80
Other current liabilities		(118	)		(160	)
Long-term other liabilities		(2	)		(6	)
Cash provided by operating activities — continuing operations		1,400			1,361
Cash provided by operating activities — discontinued operations		117			161
Net cash provided by operating activities		1,517			1,522
Cash Flows From Investing Activities
Proceeds from sales of property and equipment		25			19
Capital expenditures		(1,484	)		(1,249	)
Purchases of short-term investments		(424	)		(495	)
Sales of short-term investments		723			441
Cash used in investing activities — continuing operations		(1,160	)		(1,284	)
Cash used in investing activities — discontinued operations		(53	)		(68	)
Net cash used in investing activities		(1,213	)		(1,352	)
Cash Flows From Financing Activities
Net commercial paper repayments, net of issuance costs		(348	)		—
Debt repayments, including current maturities		—			(3	)
Proceeds from stock options		23			20
Repurchases of common stock		—			(253	)
Excess tax benefits related to share-based compensation		5			4
Dividends paid on common stock		(62	)		(49	)
Dividends paid on preferred stock		(2	)		(2	)
Net cash used in financing activities		(384	)		(283	)
Effect of exchange rate changes on cash		2			1
Net decrease in cash and cash equivalents		(78	)		(112	)
Cash and cash equivalents at beginning of period (including assets held for sale)		756			1,606
Cash and cash equivalents at end of period (including assets held for sale)	$	678		$	1,494
Supplementary cash flow data:
Interest paid	$	162		$	159
Income taxes (received) paid	$	(24	)	$	160

Page 9 of 12

DEVON ENERGY CORPORATION
FINANCIAL AND OPERATIONAL INFORMATION

DRILLING ACTIVITY	Quarter Ended
	March 31,
	2007			2006
Exploration Wells Drilled
U.S.		22			21
Canada		55			66
International		1			—
Total		78			87
Exploration Wells Success Rate
U.S.		77	%		90	%
Canada		100	%		98	%
International		0	%		—
Total		92	%		97	%
Development Wells Drilled
U.S.		264			283
Canada		252			273
International		3			7
Total		519			563
Development Wells Success Rate
U.S.		98	%		99	%
Canada		100	%		100	%
International		100	%		100	%
Total		99	%		99	%
Total Wells Drilled
U.S.		286			304
Canada		307			339
International		4			7
Total		597			650
Total Wells Success Rate
U.S.		97	%		98	%
Canada		100	%		99	%
International		75	%		100	%
Total		98	%		99	%

COMPANY OPERATED RIGS	March 31,
	2007		2006
Number of Company Operated Rigs Running
U.S.		65		55
Canada		5		13
International		—		—
Total		70		68

CAPITAL EXPENDITURES DATA (in millions)
Quarter Ended March 31, 2007	U.S. Onshore		U.S. Offshore		Canada		International		Devon Total
Capital Expenditures
Exploration	$	42		70		39		34	$	185
Development		638		60		375		59		1,132
Exploration and development capital	$	680		130		414		93	$	1,317
Capitalized G&A										64
Capitalized interest										20
Discontinued operations										55
Property acquisitions										3
Midstream capital										99
Other capital										20
Total capital expenditures									$	1,578

Page 10 of 12

DEVON ENERGY CORPORATION
FINANCIAL AND OPERATIONAL INFORMATION

DETAIL OF RECLASSIFICATION FOR DISCONTINUED	Quarter Ended
OPERATIONS IN EGYPT AND WEST AFRICA	March 31,
	2007		2006
Production from Discontinued Operations
Oil (MMBbls)		3.1		3.6
Natural Gas (Bcf)		1.4		1.6
Total Oil Equivalent (MMBoe)		3.3		3.8

STATEMENTS OF DISCONTINUED OPERATIONS DATA	Quarter Ended
(in millions)	March 31,
	2007		2006
Revenues
Oil sales	$	170	$	207
Gas sales		4		6
Marketing & midstream revenues		1		5
Total revenues		175		218
Expenses and other income, net
Lease operating expenses		20		19
Marketing & midstream operating costs and expenses		1		1
Depreciation, depletion and amortization of oil and gas properties		16		64
Depreciation and amortization of non-oil and gas properties		—		1
Accretion of asset retirement obligation		1		1
Reduction of carrying value of oil and gas properties		—		85
Total expenses and other income, net		38		171
Earnings before income tax expense		137		47
Income tax (benefit) expense
Current		44		79
Deferred		16		(16	)
Total income tax expense		60		63
Earnings from discontinued operations	$	77	$	(16	)

Page 11 of 12

DEVON ENERGY CORPORATION
FINANCIAL AND OPERATIONAL INFORMATION

Non-GAAP Financial Measures

     The United States Securities and Exchange Commission has adopted disclosure requirements for public companies such as Devon concerning Non-GAAP financial measures. (GAAP refers to generally accepted accounting principles.) The company must reconcile the Non-GAAP financial measure to related GAAP information. Cash flow before balance sheet changes is a Non-GAAP financial measure. Devon believes cash flow before balance sheet changes is relevant because it is a measure of cash available to fund the company’s capital expenditures, dividends and to service its debt. Cash flow before balance sheet changes is also used by certain securities analysts as a measure of Devon’s financial results.

RECONCILIATION TO GAAP INFORMATION	Quarter Ended
(in millions)	March 31,
	2007			2006
Net Cash Provided By Operating Activities (GAAP)	$	1,517		$	1,522
Changes in assets and liabilities — continuing operations		(43	)		13
Changes in assets and liabilities — discontinued operations		(6	)		(43	)
Cash flow before balance sheet changes (Non-GAAP)	$	1,468		$	1,492

     Devon believes that using net debt, defined as debt less cash, short-term investments and the market value of Chevron common stock, for the calculation of “net debt to adjusted capitalization” provides a better measure than using debt. Devon believes that because cash and short-term investments can be used to repay indebtedness, netting cash and short-term investments against debt provides a clearer picture of the future demands on cash to repay debt. Included in Devon’s indebtedness are $732 million of debentures exchangeable into 14.2 million shares of Chevron common stock owned outright by Devon. As of March 31, 2007, the market value of the shares ($1.0 billion) exceeded the related debt obligation. Devon believes deducting the market value of the stock provides a clearer picture of future demands on cash to repay debt. This methodology is also utilized by various lenders, rating agencies and securities analysts as a measure of Devon’s indebtedness.

RECONCILIATION TO GAAP INFORMATION
(in millions)	March 31,
	2007			2006
Total debt (GAAP)	$	7,428		$	6,619
Adjustments:
Cash and short-term investments		(890	)		(2,128	)
Market value of Chevron Corporation common stock		(1,049	)		(822	)
Net Debt (Non-GAAP)	$	5,489		$	3,669
Total Capitalization
Total debt	$	7,428		$	6,619
Stockholders’ equity		18,156			15,302
Total Capitalization (GAAP)	$	25,584		$	21,921
Adjusted Capitalization
Net debt	$	5,489		$	3,669
Stockholders’ equity		18,156			15,302
Adjusted Capitalization (Non-GAAP)	$	23,645		$	18,971

Page 12 of 12