The company’s reported net loss for the year was $2.5 billion ($5.58 per share) and net income in the quarter was $667 million ($1.50 per share). This compares to net loss of $2.1 billion ($4.85 per share) and $6.8 billion ($15.42 per share) reported in the respective year-ago periods.

Average oil and gas production in the quarter declined 4.9% to 56.1 million BOE (i.e. 609.5 thousand barrels of oil equivalent per day). In the quarter, daily production volumes of oil, natural gas and NGL averaged 117.0 thousand barrels (down 5.6%), 2.5 billion cubic feet (down 8.7%) and 83.5 thousand barrels (up 0.3%), respectively.

For the year, the combined oil, natural gas and NGL production volume soared 4.5% to 233.2 million BOE (i.e. 639 thousand BOE per day), driven by production growth at each of Devon’s operating segments. Daily production volumes of oil, natural gas and NGL averaged 114.7 thousand barrels (up 8.3%), 2.6 billion cubic feet (up 3.3%) and 82.8 thousand barrels (up 7.5%), respectively.

Revenues dipped 4% and 42% to $2.4 billion and $8.0 billion, respectively, in the fourth quarter and full year 2009. Revenues from oil, natural gas and NGL in the quarter totaled $1,791 million, down 6%, while revenue for the year declined 48% to $6.1 billion.

Sharp declines in the average prices of oil, gas and natural gas liquids led to a reduction in combined sales from continuing operations. Marketing and midstream revenues increased 16% to $460 million in the quarter, while it decreased 25% to $512 million in 2009, reflecting lower prices for natural gas and natural gas liquids.

Realized prices, excluding the impact of hedges, for oil, natural gas and NGL averaged $63.84 per barrel (up 48%), $4.45 per thousand cubic feet (up 24%) and $32.07 per barrel (up 41%), respectively, in the fourth quarter. For the full year, realized prices for oil, natural gas and NGL were $51.39 per barrel (down 39%), $3.83 per thousand cubic feet (down 47%), and $24.71 per barrel (down 44%), respectively.

Reserves Totals

The company ended the year with total proved reserves $2.7 billion. Devon increased North American onshore estimated proved reserves by 20% to a record 2.6 billion BOE, adding 669 million BOE to its North American onshore proved reserves from all sources. Costs incurred applicable to North American onshore properties were $3.3 billion. North American onshore oil and gas production increased more than 6% to 220 million BOE in 2009.

The reserve life index for the North American onshore properties is approximately 12 years.

Proved developed reserves of 1,869 million BOE as of December 31, 2009 represented 71% of total North American onshore proved reserves. Proved undeveloped reserves were 29% of the total. Year-end North American onshore proved reserves included 653 million barrels of crude oil, 9.4 trillion cubic feet of natural gas and 419 million barrels of natural gas liquids.

Devon maintains a healthy financial and liquidity position. Devon’s cash flow before balance sheet changes decreased 50% to $4.7 billion in the year. During the year, Devon funded $5.1 billion of capital expenditures and paid $284 million in dividends utilizing cash flow and short-term borrowing.

Devon exited the year with more than $646 million of cash on hand and $6.3 billion of net debt. At year-end, Devon’s net debt to adjusted capitalization was 29%.