Devon Energy Corp. issued an updated version of its hedging transactions, including previous hedged positions and its most recent transactions, going through the rest of 2001 and into 2002.

Regarding its natural gas production for the fourth quarter of 2001 and the first six months of 2002, Devon said it recently entered into costless collars covering approximately 149,000 MMBtu/d. The company reported that the average floor and ceiling prices for the costless collars are $2.89 and $4.39 per MMBtu, respectively. The costless collars will be settled using first-of-the-month published index prices in the regions in which the gas is produced.

To date, Devon said it has downside price protection in place for approximately 326,000 MMBtu/d in the fourth quarter of 2001 at an average price of $3.18/MMBtu. For comparison, Devon’s second quarter 2001 actual production was approximately 1.2 Bcf/d.

In aggregate, including previously disclosed transactions, Devon has downside price protection in place for approximately 466,000 MMBtu/d in 2002. This downside price protection is at an average price of $3.18/MMBtu.

The company also detailed its recent oil-related transactions. Based on the fourth quarter of 2001, Devon recently entered into price swaps covering approximately 15,000 b/d of oil at an average price of $27.10/bbl. The company said the price swaps will be settled utilizing the monthly average of the closing prices of the New York Mercantile Exchange’s light sweet crude contract.

In total, Devon now has downside price protection in place for approximately 25,000 b/d in the fourth quarter of 2001 at an average price of $22.96/bbl. For comparison, Devon’s second quarter 2001 actual oil production was approximately 110,000 b/d.

Devon also recently entered into price swaps covering approximately 8,000 b/d at an average price of $25.50/bbl for 2002. The company also entered into costless collars covering approximately 20,000 b/d at average floor and ceiling prices of $23.00 and $28.19 per barrel, respectively. In total, including previously disclosed transactions, Devon said it has downside price protection in place for approximately 35,000 b/d in 2002. This downside protection is at an average price of $22.36/bbl.

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