Devon Energy Corp Q2 2021 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Paul Cheng - Scotiabank Global Banking and Markets, Research Division - Analyst : Two questions, please. I think first is maybe for Jeff. At $70-plus oil, I think in the past that you guys are talking about you won't be a cash taxpayer due towards the latter half of the decade. Just want to see that how that progression is or may not have changed? And also, can you talk about the earnout accounting? It look like with today's pricing that you should get the earnout money on that. So that in terms of the cash flow and the -- on the P&L accounting, maybe that you can help us understand a little bit better on that. The second question, I mean, I think it's for Clay. Can you talk about the inflation, whether -- I mean how much inflation that you're seeing, particularly in the Permian at all? And then finally, I just want to make a comment on the hedging. I appreciate that you guys maybe the shipping down the activity level. And quite frankly, with the Shell 3.0 business model, if we are serious on that, I'm not sure that why you will need hedging at all. I think your shareholders will actually be better off given the industry pool record in terms of hedging in the long run, that seems like we all lost money every single company.

Question: Paul Cheng - Scotiabank Global Banking and Markets, Research Division - Analyst : For $70-plus oil prices, Jeff, that when that in terms of the cash tax paying, if that trajectory has been changed from what you have said in the past?

Question: Paul Cheng - Scotiabank Global Banking and Markets, Research Division - Analyst : Yes. And then how about the earnout accounting, given your commodity prices that you should be able to get some money from the earnout?

Question: Paul Cheng - Scotiabank Global Banking and Markets, Research Division - Analyst : And do you have any P&L impact?