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DEVON ENERGY CORP/DE Annual Report 2019

Jun 5, 2019

30251_rns_2019-06-05_91cf409d-66e5-4765-bad4-c81616af690a.zip

Annual Report

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11-K 1 dvn-11k_20181231.htm FORM 11-K HTML PUBLIC "-//W3C//DTD HTML 4.01 Transitional//EN" "http://www.w3.org/TR/html4/loose.dtd" dvn-11k_20181231.htm NG Converter v5.0.19114.148

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 11-K

☑ ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended December 31, 2018

or

☐ TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission File Number 001-32318

A. Full title of the plan and the address of the plan, if different from that of the issuer named below:

Devon Energy Corporation Incentive Savings Plan

B. Name of the issuer of the securities held pursuant to the plan and the address of its principal executive office:

Devon Energy Corporation

333 West Sheridan Avenue

Oklahoma City, OK 73102-5015

Table of Contents

DEVON ENERGY CORPORATION INCENTIVE SAVINGS PLAN

FORM 11-K

TABLE OF CONTENTS

Report of Independent Registered Public Accounting Firm 3
Financial Statements
Statements of Net Assets Available for Benefits 4
Statement of Changes in Net Assets Available for Benefits 5
Notes to Financial Statements 6
Supplemental Schedule
Schedule H, Line 4i – Schedule of Assets (Held at End of Year) 12
Signature 19

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Table of Contents

Report of Independent R egistered Public Accounting Firm

Plan Administrator and Plan Participants

Devon Energy Corporation Incentive Savings Plan

Opinion on the financial statements

We have audited the accompanying statements of net assets available for benefits of Devon Energy Corporation Incentive Savings Plan (the “Plan”) as of December 31, 2018 and 2017, the related statement of changes in net assets available for benefits for the year ended December 31, 2018, and the related notes (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the net assets available for benefits of the Plan as of December 31, 2018 and 2017, and the changes in net assets available for benefits for the year ended December 31, 2018 in conformity with accounting principles generally accepted in the United States of America.

Basis for opinion

These financial statements are the responsibility of the Plan’s management. Our responsibility is to express an opinion on the Plan’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Plan in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Plan is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Plan’s internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

Supplemental information

The supplemental information in the accompanying schedule of assets (held at end of year) as of December 31, 2018 has been subjected to audit procedures performed in conjunction with the audit of the Plan’s financial statements. The supplemental information is the responsibility of the Plan’s management. Our audit procedures included determining whether the supplemental information reconciles to the financial statements or the underlying accounting and other records, as applicable, and performing procedures to test the completeness and accuracy of the information presented in the supplemental information. In forming our opinion on the supplemental information, we evaluated whether the supplemental information, including its form and content, is presented in conformity with the Department of Labor’s Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974. In our opinion, the supplemental information is fairly stated, in all material respects, in relation to the financial statements as a whole.

/s/ GRANT THORNTON LLP

We have served as the Plan’s auditor since 2006.

Oklahoma City, Oklahoma

June 5, 2019

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DEVON ENERGY CORPORATION INCENTIVE SAVINGS PLAN

STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS

December 31, — 2018 2017
ASSETS
Investments, at fair value $ 657,107,169 $ 768,781,501
Employer contributions receivable 4,651,475 5,576,542
Notes receivable from participants 7,732,609 8,768,683
Other receivables 738,550 2,138,866
Total assets 670,229,803 785,265,592
LIABILITIES
Other liabilities 1,679,231 1,665,144
Total liabilities 1,679,231 1,665,144
NET ASSETS AVAILABLE FOR BENEFITS $ 668,550,572 $ 783,600,448

See accompanying notes to financial statements.

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DEVON ENERGY CORPORATION INCENTIVE SAVINGS PLAN

STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS

Year Ended December 31,
2018
Additions:
Investment income:
Net depreciation in fair value of investments $ (85,762,700)
Dividend income 28,276,310
Interest income 205,011
Net investment loss (57,281,379)
Contributions:
Participant, including rollovers 26,053,743
Employer, net of forfeitures 36,814,131
Total contributions 62,867,874
Interest income on notes receivable from participants 393,625
Total additions 5,980,120
Deductions:
Distributions to participants 118,719,628
Administrative expenses 2,310,368
Total deductions 121,029,996
Net decrease in net assets available for benefits (115,049,876)
Net assets available for benefits:
Beginning of year 783,600,448
End of year $ 668,550,572

See accompanying notes to financial statements.

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DEVON ENERGY CORPORATION INCENTIVE SAVINGS PLAN

NOTES TO FINANCIAL STATEMENTS

  1. Descripti on of Plan

The following description of the Devon Energy Corporation Incentive Savings Plan (the “Plan”) is provided for general information purposes only. Participants should refer to the plan agreement and respective amendments for a more complete description of the Plan’s provisions.

General

The Plan is a defined contribution plan covering substantially all United States employees of Devon Energy Corporation (“Devon”) and is subject to the provisions of the Employee Retirement Income Security Act of 1974 (“ERISA”), as amended. Employees are eligible to participate in the Plan as soon as administratively possible following the completion of one hour of service. There is no minimum age requirement for employees to be eligible.

The plan administrator is a committee of Devon employees who are appointed by and serve at the direction of Devon (the “Benefits Committee”). The Benefits Committee is responsible for administration of the Plan, except for the duties related to selecting and monitoring the Plan’s investment options. The selection and monitoring of investment options, and related functions, is the responsibility of a separate committee of Devon employees who are appointed by and serve at the direction of Devon (the “Investments Committee”).

Devon’s Board of Directors, or a committee thereof, has the sole responsibility for appointing and removing the Plan’s trustee, which is currently Fidelity Management Trust Company (the “Trustee”). Under the terms of an agreement between the Trustee and the Plan, the Trustee administers the Plan’s trust in accordance with instructions provided by the Benefits Committee.

Contributions

As defined in the Plan, participants may elect to contribute from 1% to 50% of their compensation to the Plan on a pre-tax basis or on an after-tax, designated Roth basis. The combined pre-tax and designated Roth contributions are subject to limitations under the Internal Revenue Code (the “Code”). Participants who have attained age 50 before the end of the Plan year are eligible to make pre-tax or designated Roth catch-up contributions. Participants may also contribute amounts representing distributions from other qualified defined benefit or defined contribution plans (“Rollover Contributions”). Participant Rollover Contributions were approximately $1,765,000 during 2018.

New employees who do not take action to either enroll or decline to enroll in the Plan are automatically enrolled in the Plan with a pre-tax deferral contribution rate equal to 3%.

Participants may receive an employer match on their contribution to the Plan in an amount determined annually by Devon. The amount of the matching contribution will vary according to the participant’s years of service. Participants employed subsequent to October 1, 2007 and participants who opted out of a separate defined benefit plan sponsored by Devon are eligible for enhanced contributions. During 2018, for all participants with at least five years of service, Devon contributed amounts equal to 100% of each participant’s contributions to the Plan, with the matching contribution being limited to the lesser of 6% of the participant’s compensation or $16,500. For participants with less than five years of service, Devon’s matching contributions in 2018 were limited to the lesser of 3% of the participant’s compensation or $8,250.

Participants eligible for enhanced contributions also receive additional, nondiscretionary contributions by Devon calculated as a percentage of their compensation, as defined in the Plan. In 2018, the enhanced contribution percentage ranged from 8% to 16%, depending upon a participant’s years of service.

Participant Accounts

Each participant’s account is credited with the participant’s contribution, Devon’s contribution and allocations of earnings or losses on the investments selected by the participant and charged with an allocation of administrative expenses. Allocations are based on participant earnings, account balances or specific participant transactions, as defined. The benefit to which a participant is entitled is the benefit that can be provided from the participant’s vested account.

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DEVON ENERGY CORPORATION INCENTIVE SAVINGS PLAN

NOTES TO FINANCIAL STATEMENTS – CONTINUED

Investments

Participants direct their account balances to be invested in a number of investment options. Participants may change their investment options on a daily basis. Investment options of the Plan as of December 31, 2018 consist of mutual funds, equity securities, Devon common stock, collective trust funds, stable value fund and Brokerage Link. Brokerage Link is a self-directed brokerage account that allows participants to invest in a wide variety of funds.

Vesting and Forfeitures

Participants are vested immediately in their contributions, plus the associated investment income or losses. For each year of service up to four years, a participant becomes 25% vested in employer contributions to their account and the associated investment income or losses. Participants will become vested upon a change of control of Devon, as defined in the Plan or if the participant dies, becomes totally disabled or reaches age 65 while employed by Devon.

Upon a termination of service that results in nonvested amounts in a participant’s account, the nonvested portion is forfeited and used to reduce Devon’s future contributions or pay Plan expenses. Employer contributions were reduced by approximately $1,000,000 in 2018 due to forfeitures. In 2018, Plan expenses of approximately $188,000 were paid by forfeitures. As of December 31, 2018 and 2017, there were approximately $637,000 and $293,000, respectively, of forfeitures available to reduce future employer contributions or pay expenses.

Notes Receivable from Participants

Participants may borrow from their fund accounts and may have up to two loans outstanding at any time. Participants may borrow from their fund accounts a minimum of $1,000 up to a maximum equal to the lesser of $50,000 or 50% of their vested account balance. The loans are secured by the balance in the participants’ accounts. The loans bear interest at a fixed rate, which approximates the rate generally charged for consumer loans secured by certificates of deposit or marketable securities. The interest rates ranged from 4.25% to 6.25% at December 31, 2018. The terms of the loans may not exceed five years, except for loans used to purchase a primary residence, in which case the loan term generally will not exceed 15 years. Maturity dates ranged from January 2019 to December 2033 at December 31, 2018. Principal and interest is repaid through biweekly payroll deductions from the participants’ wages.

Payment of Benefits

While still employed, a participant who is age 59½ or older may withdraw all or part of the vested interest in their account at any time. Participants who are still employed also may withdraw their Rollover Contributions regardless of age. In addition, participants who are still employed and who have taken all other withdrawals and loans available under the Plan may also request a withdrawal in an amount necessary to satisfy an immediate and heavy financial need.

On termination of service due to death, disability or upon retirement, participants (or a beneficiary in the case of death) may elect to receive either a lump-sum amount equal to the value of the participant’s vested interest in their account or equal installments (monthly, quarterly, semi-annually or annually) for any period less than the life expectancy of the participant and their beneficiary. For termination of service for other reasons, participants may receive the value of the vested interest in their account as a lump-sum distribution. Depending on the value of the participant’s vested interest in their account at the time of their termination of service, the value of the participant’s vested interest may be automatically paid in a lump-sum distribution, paid in a direct rollover or automatically rolled over to an individual retirement account or annuity established in the participant’s or beneficiary’s name.

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DEVON ENERGY CORPORATION INCENTIVE SAVINGS PLAN

NOTES TO FINANCIAL STATEMENTS – CONTINUED

  1. Summary of Significant Accounting Policies

The following are the significant accounting policies followed by the Plan in preparing the accompanying financial statements.

Basis of Presentation

The financial statements have been prepared on the accrual basis of accounting in conformity with accounting principles generally accepted in the United States of America.

Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities and changes therein and disclosure of contingent assets and liabilities. Actual results could differ from those estimates.

Investment Valuation and Income Recognition

The Plan’s investments are stated at fair value. Fair value is the price that would be received to sell the investment in an orderly transaction between market participants. This price is commonly referred to as the “exit price.” Fair value measurements are classified according to a hierarchy that prioritizes the inputs underlying the valuation techniques. This hierarchy consists of three broad levels:

• Level 1 – Inputs consist of unadjusted quoted prices in active markets for identical assets and have the highest priority. When available, Level 1 inputs are used to measure fair value because they generally provide the most reliable evidence of fair value.

• Level 2 – Inputs consist of quoted prices that are generally observable for the asset. Common examples of Level 2 inputs include quoted prices for similar assets in active markets or quoted prices for identical assets in markets not considered to be active.

• Level 3 – Inputs are not observable from objective sources and have the lowest priority. The most common Level 3 fair value measurement is an internally developed cash flow model.

Realized gains or losses are calculated based on proceeds from the sale of investments and the fair value of the investments at the beginning of the plan year or at time of purchase if acquired during the current plan year. Unrealized appreciation or depreciation of the investments is calculated based on the fair value of the investments at the end of the plan year and the fair value of the investments at the beginning of the plan year or at time of purchase if acquired during the current plan year. Purchases and sales of securities are recorded on a trade-date basis. Interest income is recorded on the accrual basis. Dividends are recorded on the ex-dividend date.

Notes Receivable from Participants

Notes receivable from participants are measured at their unpaid principal balance plus any accrued but unpaid interest. Interest income is recorded on the accrual basis. No allowance for credit losses has been recorded as of December 31, 2018 or 2017. Delinquent participant loans are reclassified as distributions based upon the terms of the plan document.

Payment of Benefits

Benefits are recorded when paid.

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DEVON ENERGY CORPORATION INCENTIVE SAVINGS PLAN

NOTES TO FINANCIAL STATEMENTS – CONTINUED

Administrative Expenses

Trustee, audit and certain other administrative fees are paid by Devon on behalf of the Plan and are excluded from these financial statements. Fees related to the administration of notes receivable from participants are charged directly to the participant’s account and are included in administrative expenses. Investment management fees related to the equity securities and collective trusts are included in administrative expenses. All other investment-related expenses are included in net appreciation or depreciation of fair value of investments.

  1. Fair Value Measurements

The following tables provide the Plan’s investments at fair value according to the fair value hierarchy. The Plan had no Level 2 or Level 3 investments as of December 31, 2018 and 2017. There have been no changes in the methodologies used at December 31, 2018 and 2017.

As of December 31, 2018 — Total Level 1 Inputs
Mutual funds $ 212,599,351 $ 212,599,351
Self-directed brokerage account 32,895,897 32,895,897
Common stock 185,329,363 185,329,363
Total assets in the fair value hierarchy $ 430,824,611 $ 430,824,611
Investments measured at net asset value 226,282,558
Investments at fair value $ 657,107,169
As of December 31, 2017
Total Level 1 Inputs
Mutual funds $ 244,897,426 $ 244,897,426
Self-directed brokerage account 37,017,592 37,017,592
Common stock 230,170,187 230,170,187
Total assets in the fair value hierarchy $ 512,085,205 $ 512,085,205
Investments measured at net asset value 256,696,296
Investments at fair value $ 768,781,501

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DEVON ENERGY CORPORATION INCENTIVE SAVINGS PLAN

NOTES TO FINANCIAL STATEMENTS – CONTINUED

The following table summarizes investments for which fair value is measured using the net asset value per share practical expedient as of December 31, 2018 and 2017, respectively.

December 31, 2018 Fair Value Unfunded Commitments Redemption Frequency Redemption Notice Period
Commingled funds:
US Equity $ 89,067,100 None Daily None
International Equity 72,355,026 None Daily None
World Equity 23,303,916 None Daily None
Real Estate 1,234,563 None Daily None
Total commingled funds 185,960,605
Stable value collective:
Trust fund 40,321,953 None Daily 12 months
Investments measured at net asset value $ 226,282,558
December 31, 2017 Fair Value Unfunded Commitments Redemption Frequency Redemption Notice Period
Commingled funds:
US Equity $ 104,968,336 None Daily None
International Equity 86,136,854 None Daily None
World Equity 24,601,478 None Daily None
Real Estate 1,539,780 None Daily None
Total commingled funds 217,246,448
Stable value collective:
Trust fund 39,449,848 None Daily 12 months
Investments measured at net asset value $ 256,696,296

The following methods and assumptions were used to estimate the fair values in the tables above.

Mutual funds. Valued at the daily closing price as reported by the fund. Mutual funds held by the Plan are open-end mutual funds that are registered with the SEC. These funds are required to publish their daily net asset value (“NAV”) and to transact at that price. The mutual funds held by the Plan are deemed to be actively traded.

Self-directed brokerage accounts. Accounts primarily consist of mutual funds that are valued on the basis of readily determinable market prices.

Common stocks. Valued at the closing price reported on the active market on which the individual securities are traded.

Commingled funds. Valued based on the net asset value of the commingled funds’ underlying investments using information reported by the investment advisor. The net asset value is used as a practical expedient to estimate fair value.

Stable value collective trust fund. Valued at the net asset value of units of the collective trust. The net asset value is used as a practical expedient to estimate fair value. The practical expedient would not be used if it is determined to be probable that the fund will sell the investment for an amount different from the reported net asset value. Participant transactions (purchases and sales) may occur daily. If the Plan initiates a full redemption of the collective trust, the issuer reserves the right to require 12 months’ notification in order to ensure that securities liquidations will be carried out in an orderly business manner.

The methods described above may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, although these valuation methods are appropriate and consistent with those used by other market participants, the use of different methodologies or assumptions to

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DEVON ENERGY CORPORATION INCENTIVE SAVINGS PLAN

NOTES TO FINANCIAL STATEMENTS – CONTINUED

determine the fair value of certain financial instruments could result in a different estimate of fair value at the reporting date.

  1. Plan Termination

Although Devon has not expressed any intent to terminate the Plan, it may do so at any time. Benefits owed to participants are not actuarially determined and the aggregate vested benefits are limited to the Plan’s net assets available for plan benefits. In the event of the Plan’s termination, participants would become 100% vested in their accounts.

  1. Related Party and Parties in Interest Transactions

The Trustee and Devon are parties in interest as defined by ERISA. Certain plan investments are shares of mutual funds managed by Fidelity Management & Research Company, which is an affiliate of the Trustee. The Trustee also invests certain Plan assets in the Devon Stock Fund. Such transactions qualify as party-in-interest transactions permitted by the Department of Labor regulations.

  1. Tax Status

The Internal Revenue Service has determined and informed Devon by a letter dated July 10, 2017 that the Plan and related trusts are designed in accordance with applicable sections of the Code. Prior to July 10, 2017 the Plan operated under a determination letter dated November 3, 2015. Although the Plan has been amended since receiving the determination letter, the Benefits Committee believes that the Plan is designed and is currently being operated in compliance with the applicable provisions of the Code and, therefore, believe that the Plan is qualified and the related trust is tax-exempt.

Accounting principles generally accepted in the United States of America require plan management to evaluate tax positions taken by the Plan and recognize a tax liability if the Plan has taken an uncertain position that more likely than not would not be sustained upon examination by the Internal Revenue Service. The Benefits Committee has analyzed the tax positions taken by the Plan and has concluded that there are no uncertain positions taken or expected to be taken that would require recognition of a liability or disclosure in the financial statements as of December 31, 2018 and 2017.

The Plan is subject to routine audits by taxing jurisdictions; however, there are currently no audits for any tax periods in progress.

  1. Risk and Uncertainties

In general, the investments provided by the Plan are exposed to various risks, such as interest rate, credit and overall market volatility risks. Because of the risks associated with investment securities, it is reasonably possible that changes in the values of investment securities will occur in the near term and that such change could materially affect the participants’ account balances and the amounts reported in the statements of net assets available for benefits.

  1. Subsequent Event

Effective July 15, 2019, the Devon Stock Fund will be removed as an investment fund option under the Plan. Any participant balances remaining in the Devon Stock Fund in the fourth quarter of 2020 (exact date yet to be determined) will be liquidated and invested in an age-appropriate target date fund.

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Devon Energy Corporation Incentive Savings Plan
EIN: 73-1567067 Plan Number: 002
Schedule H, Line 4i - Schedule of Assets (Held at End of Year)
December 31, 2018
Identity of issue, borrower, lessor or similar party Description of investment Number of shares or units Current Value
Devon Energy Corporation** Devon common stock 554,343 $ 12,494,891
Cash equivalent fund:
The Vanguard Group Vanguard Money Market Fund 9,982,258 9,982,258
Interest-bearing cash Money-market securities 7,707,736
Mutual Funds and Common Collective Trust:
TCW Investment Management Company TCW Core Fixed Income Fund 5,274,562 56,543,303
PIMCO Funds PIMCO All Asset All Authority 5,289,049 41,889,268
SEI Trust Company PIMCO Stable Income Fund 375,577 40,321,953
Aberdeen Aberdeen Emerging Markets Fund 1,149,419 15,586,117
Harbor Funds Harbor International Fund 1,232,659 41,577,590
Neuberger Berman Neuberger Berman High Yield Bond Fund 2,642,086 21,215,947
Blackrock, Inc. US Equity Index 3,126,533 89,067,100
Blackrock, Inc. International Equity Index 5,305,982 72,355,026
Blackrock, Inc. Blackrock MSCI ACWI Minimum Volatility Fund 1,896,044 23,303,916
Capital Research & Management Company Europacific Growth Fund 182,364 8,204,574
Invesco Invesco Equity Real Estate Securities Trust 8,880 1,234,563
Western Asset Inflation Indexed Plus Bond Portfolio 928,007 9,892,558
Equity Investments:
2U INC Common stock 5,539 275,399
ABBOTT LAB Common stock 14,920 1,079,164
ABIOMED INC Common stock 371 120,590
ACI WORLDWIDE INC Common stock 7,500 207,525
ACTIVISION BLIZZARD INC Common stock 2,505 116,658
ADOBE INC Common stock 8,634 1,953,356
ADTALEM GLOBAL EDUCATION Common stock 15,710 743,397
ADVANCE AUTO PARTS INC Common stock 5,132 808,085
ADVANSIX INC Common stock 12,500 304,250
AECOM Common stock 18,700 495,550
AERCAP HLDGS NV Common stock 11,600 459,360
AGNC INVESTMENT CORP Common stock 21,900 384,126
AIR PRODUCTS & CHEMICALS Common stock 8,503 1,360,905
ALASKA AIR GROUP INC Common stock 5,800 352,930
ALIBABA GROUP HLDGS LTD S Common stock 6,462 885,746
ALLEGHANY CORP DEL Common stock 1,400 872,648
ALLIANT ENERGY CORPORATIO Common stock 9,000 380,250
ALLY FIN INC Common stock 17,200 389,752
ALPHABET INC CL C Common stock 3,212 3,326,379

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ALTABA INC Common stock 8,773 508,308
ALTRIA GROUP INC Common stock 10,710 528,967
AMAZON.COM INC Common stock 2,874 4,316,662
AMC ENTERTAINMENT HLDS CL Common stock 10,500 128,940
AMC NETWORKS INC CL A Common stock 3,400 186,592
AMERCO INC Common stock 1,905 625,050
AMERICAN EXPRESS CO Common stock 9,068 864,362
AMERICAN INTL GROUP Common stock 10,471 412,662
ANTERO RES CORP Common stock 59,100 554,949
ANTHEM INC Common stock 4,481 1,176,845
APPLE INC Common stock 9,527 1,502,789
APPLIED MATERIALS INC Common stock 23,148 757,865
APTIV PLC Common stock 4,219 259,764
ARAMARK Common stock 16,869 488,695
ARCH CAPITAL GROUP LTD Common stock 14,700 392,784
ASPEN TECH Common stock 4,766 391,670
AT&T INC Common stock 11,600 331,064
AUTOMATIC DATA PROCESSING Common stock 432 56,644
AVNET INC Common stock 4,900 176,890
AXALTA COATING SYS LTD Common stock 11,692 273,827
AXIS CAPITAL HLDGS LTD Common stock 16,700 862,388
BALL CORP Common stock 18,713 860,424
BANK OF NEW YORK MELLON C Common stock 18,807 885,245
BERKSHIRE HATHAWAY INC CL Common stock 4,503 919,423
BIOGEN INC Common stock 801 241,037
BIOMARIN PHARMACEUTICAL I Common stock 1,890 160,934
BOEING CO Common stock 3,018 973,305
BOOZ ALLEN HAMILTON HLDG Common stock 18,791 846,910
BOSTON SCIENTIFIC CORP Common stock 41,534 1,467,812
BP PLC SPON ADR Common stock 21,081 799,391
BRIGHTSPHERE INVESTMENT G Common stock 14,909 159,228
BRISTOL-MYERS SQUIBB CO Common stock 1,506 78,282
BROADCOM INC Common stock 5,891 1,497,963
BROOKDALE SENIOR LIVING I Common stock 28,800 192,960
BURLINGTON STORES INC Common stock 4,296 698,830
BWX TECH INC Common stock 20,472 782,645
CABLE ONE INC W/I Common stock 284 232,908
CAESARS ENTMT CORP Common stock 70,600 479,374
CAMBREX CORP Common stock 8,522 321,791
CASEY GEN STORES Common stock 3,400 435,676
CATALENT INC Common stock 14,350 447,433
CBOE GLOBAL MARKETS INC Common stock 8,712 852,295
CDK GLOBAL INC Common stock 17,200 823,536
CELANESE CORP Common stock 5,558 500,053
CENTENNIAL RESOURCE DEVEL Common stock 14,173 156,186
CHARTER COMM INC A Common stock 1,291 367,896
CHEVRON CORP Common stock 7,188 781,982
CIGNA CORP Common stock 8,764 1,664,459
CINTAS CORP Common stock 3,255 546,807
CIT GROUP INC Common stock 15,900 608,493
CITIGROUP INC Common stock 2,713 141,239
COCA-COLA EUROPEAN PARTNE Common stock 17,211 789,124

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COLLIERS INTL GROUP INC Common stock 3,319 182,678
COLONY CAPITAL INC Common stock 85,200 398,736
COLUMBIA PROPERTY TR INC Common stock 24,900 481,815
COMCAST CORP CL A Common stock 26,463 901,065
COMPASS MINERALS INTL INC Common stock 10,000 416,900
CONAGRA BRANDS INC Common stock 9,888 211,208
CONOCOPHILLIPS Common stock 12,847 801,010
COPART INC Common stock 21,519 1,028,178
CORELOGIC INC Common stock 22,000 735,240
COSTAR GROUP INC Common stock 2,757 930,046
COTY INC CL A Common stock 68,700 450,672
CVS HEALTH CORP Common stock 13,350 874,692
DANAHER CORP Common stock 8,908 918,593
DEERE & CO Common stock 1,413 210,777
DENTSPLY SIRONA INC Common stock 8,000 297,680
DEXCOM INC Common stock 4,589 549,762
DIEBOLD NIXDORF INC Common stock 22,800 56,772
DISH NETWORK CORP A Common stock 11,300 282,161
DISNEY (WALT) CO Common stock 7,312 801,761
DOLLAR GEN CORP Common stock 9,935 1,073,775
DOLLAR TREE INC Common stock 2,384 215,323
DOMINION ENERGY INC Common stock 12,821 916,189
DOMINOS PIZZA INC Common stock 2,148 532,682
DOWDUPONT INC Common stock 15,896 850,118
DYCOM INDU INC Common stock 5,500 297,220
E TRADE FIN CORP Common stock 14,792 649,073
EAST WEST BANCORP INC Common stock 4,390 191,097
ECHOSTAR CORP CL A Common stock 27,000 991,440
ENCOMPASS HEALTH CORP Common stock 10,537 650,133
ENCORE CAP GROUP INC Common stock 10,152 238,572
EQT CORPORATION Common stock 20,500 387,245
EQUINIX INC Common stock 906 319,419
EQUITY COMMONWEALTH Common stock 23,300 699,233
EURONET WORLDWIDE INC Common stock 8,028 821,907
EXACT SCIENCES CORP Common stock 8,263 521,395
EXELON CORP Common stock 20,052 904,345
FACEBOOK INC CL A Common stock 12,061 1,581,076
FERROGLOBE REP&WARRANTY I Common stock 42,600 -
FIDELITY NATIONAL FINL Common stock 14,201 446,479
FIRSTCASH INC Common stock 6,694 484,311
FIRSTSVCS CORP Common stock 4,985 341,373
FOOT LOCKER INC Common stock 9,100 484,120
FORTINET INC Common stock 6,081 428,285
GAMING AND LEISURE PROPRT Common stock 16,500 533,115
GCI LIBERTY INC CL A Common stock 9,000 370,440
GEN ELECTRIC CO Common stock 88,710 671,535
GENESEE & WYOMING INC CL Common stock 5,155 381,573
GLAUKOS CORP Common stock 8,738 490,813
GODADDY INC CL A Common stock 8,155 535,131
GRAND CANYON EDUCATION IN Common stock 6,015 578,282
GRUBHUB INC Common stock 957 73,507
GUIDEWIRE SOFTWARE INC Common stock 4,059 325,654

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GULFPORT ENERGY CORP Common stock 56,700 371,385
GW PHARMACEUTICALS PLC AD Common stock 1,957 190,592
HANESBRANDS INC Common stock 24,584 308,038
HEALTHCARE SVCS GROUP INC Common stock 13,754 552,636
HEICO CORP CL A Common stock 9,194 579,222
HESS CORP Common stock 16,274 659,097
HEWLETT PACKARD ENTERPRIS Common stock 30,161 398,427
HILTON GRAND VACATIONS IN Common stock 10,607 279,919
HOME DEPOT INC Common stock 5,336 916,831
HONEYWELL INTL INC Common stock 6,270 828,392
HORIZON PHARMA PLC Common stock 23,193 453,191
HOUGHTON MIFFLIN HARCOURT Common stock 31,400 278,204
ICHOR HLDGS LTD Common stock 11,900 193,970
ILLUMINA INC Common stock 2,702 810,411
INOGEN INC Common stock 2,092 259,764
INSULET CORP Common stock 7,316 580,305
INTERCONTINENTAL EXCHANGE Common stock 9,567 720,682
INTUITIVE SURGICAL INC Common stock 1,036 496,161
INVESTORS BANCORP INC Common stock 83,700 870,480
IRON MOUNTAIN INC Common stock 11,200 362,992
J2 GLOBAL INC Common stock 4,611 319,911
JEFFERIES FIN GROUP INC Common stock 64,000 1,111,040
JETBLUE AIRWAYS CORP Common stock 28,200 452,892
JOHNSON CONTROLS INTL PLC Common stock 18,448 546,983
JONES LANG LASALLE INC Common stock 2,696 341,314
JPMORGAN CHASE & CO Common stock 11,104 1,083,972
KEYCORP Common stock 40,697 601,502
KOSMOS ENERGY LTD Common stock 78,718 320,382
L3 TECH INC Common stock 649 112,705
LAMB WESTON HLDGS INC Common stock 4,014 295,270
LAREDO PETROLEUM INC Common stock 51,300 185,706
LEIDOS HLDGS INC Common stock 12,200 643,184
LENNAR CORP CL A Common stock 10,981 429,906
LIBERTY EXPEDIA HLDGS INC Common stock 11,500 449,765
LIBERTY PROPERTY TR - REI Common stock 13,559 567,851
LIGAND PHARMACEUTICALS Common stock 3,384 459,209
LINDE PLC Common stock 5,938 926,565
LIVE NATION ENTERTAINMENT Common stock 14,968 737,174
LKQ CORP Common stock 23,800 564,774
LOWES COS INC Common stock 10,787 996,287
LULULEMON ATHLETICA INC Common stock 1,655 201,265
LYONDELLBASELL INDS CLASS Common stock 5,455 453,638
MANPOWERGROUP INC Common stock 5,800 375,840
MARTIN MARIETTA MATERIALS Common stock 4,027 692,120
MARVELL TECH GROUP LTD Common stock 4,805 77,793
MAXIMUS INC Common stock 5,800 377,522
MAXLINEAR INC Common stock 8,563 150,709
MCDERMOTT INTL INC Common stock 28,066 183,552
MCDONALDS CORP Common stock 1,694 300,804
MEDNAX INC Common stock 5,300 174,900
MEDTRONIC PLC Common stock 15,355 1,396,691
MERCK & CO INC NEW Common stock 5,520 421,783

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METHODE ELECTRONICS INC Common stock 24,000 558,960
MFA FINANCIAL INC Common stock 93,000 621,240
MGM GROWTH PPTYS LLC CL A Common stock 21,395 565,042
MGM RESORTS INTL Common stock 12,110 293,789
MICHAELS COS INC Common stock 30,900 418,386
MICROCHIP TECH Common stock 8,945 643,324
MICROSOFT CORP Common stock 58,647 5,956,776
MIDDLEBY CORP Common stock 5,090 522,896
MOHAWK INDU INC Common stock 2,300 269,008
MORGAN STANLEY Common stock 5,439 215,656
MR COOPER GROUP INC Common stock 24,758 288,926
NATIONAL CINEMEDIA INC Common stock 29,029 188,108
NATIONAL INSTRUMENT CORP Common stock 9,259 420,173
NAVIENT CORP Common stock 37,223 327,935
NCR CORP Common stock 20,600 475,448
NET 1 UEPS TECH INC Common stock 41,837 196,216
NETFLIX INC Common stock 1,656 443,245
NEW YORK COMMUNITY BANCOR Common stock 54,025 508,375
NEWS CORP NEW CL A Common stock 49,500 561,825
NICE LTD SPON ADR Common stock 3,772 408,168
NIELSEN HLDGS PLC Common stock 39,539 922,445
NORWEGIAN CRUISE LINE HLD Common stock 25,512 1,081,454
NOVANTA INC Common stock 3,571 224,973
NU SKIN ENTERPRISES INC C Common stock 4,241 260,101
NUTANIX INC CL A Common stock 1,358 56,479
OCCIDENTAL PETROLEUM CORP Common stock 6,912 424,259
ORACLE CORP Common stock 18,161 819,969
O'REILLY AUTOMOTIVE INC Common stock 1,247 429,380
OWENS CORNING INC Common stock 11,195 492,356
PALO ALTO NETWORKS INC Common stock 2,094 394,405
PARSLEY ENERGY INC CL A Common stock 36,911 589,838
PATTERSON COMPANIES INC Common stock 16,000 314,560
PAYPAL HLDGS INC Common stock 11,558 971,912
PENUMBRA INC Common stock 2,752 336,294
PFIZER INC Common stock 24,201 1,056,374
PG&E CORP Common stock 11,900 282,625
PHILIP MORRIS INTL INC Common stock 7,574 505,640
PHILLIPS 66 Common stock 8,429 726,158
PIONEER NATURAL RESOURCES Common stock 1,647 216,613
PORTOLA PHARMACEUTICALS I Common stock 8,377 163,519
POST HLDGS INC Common stock 7,300 650,649
PROGRESSIVE CORP OHIO Common stock 9,962 601,007
PURE STORAGE INC CL A Common stock 31,971 514,094
PVH CORP Common stock 1,443 134,127
QUALCOMM INC Common stock 11,602 660,270
RADIAN GROUP INC Common stock 28,900 472,804
RAYONIER ADVANCED MATERIA Common stock 18,900 201,285
REALOGY HLDGS CORP Common stock 15,500 227,540
RED HAT INC Common stock 1,695 297,710
RETAIL OPPORTUNITY INVTS Common stock 23,100 366,828
RITCHIE BROS AUCTIONEERS Common stock 11,867 388,288
ROGERS CORP Common stock 5,114 506,593

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ROYAL CARIBBEAN CRUISES L Common stock 10,128 990,417
S&P GLOBAL INC Common stock 1,834 311,670
SABRE CORP Common stock 18,984 410,814
SALESFORCE.COM INC Common stock 14,230 1,949,083
SANOFI SPON ADR Common stock 13,072 567,455
SAREPTA THERAPEUTICS INC Common stock 4,339 473,515
SBA COMM CORP Common stock 2,881 466,405
SHERWIN WILLIAMS CO Common stock 1,337 526,056
SITEONE LANDSCAPE SUPPLY Common stock 4,785 264,467
SIX FLAGS ENTERTAINMENT C Common stock 8,931 496,832
SLM CORP Common stock 94,357 784,107
SOUTH STATE CORP Common stock 5,600 335,720
SP PLUS CORP Common stock 4,400 129,976
SPECTRUM BRANDS HLDGS INC Common stock 11,800 498,550
SPIRIT AEROSYS HLD INC CL Common stock 9,871 711,600
STANLEY BLACK & DECKER IN Common stock 6,966 834,109
STATE STREET CORP Common stock 11,446 721,899
STERICYCLE INC Common stock 10,200 374,238
STEWART INFORMATION SVCS Common stock 11,300 467,820
STONERIDGE INC Common stock 8,300 204,595
SVCSMASTER GLOBAL HLDGS I Common stock 4,554 167,314
SYNEOS HEALTH INC Common stock 7,400 291,190
TANDEM DIABETES CARE INC Common stock 813 30,870
TELEDYNE TECH INC Common stock 3,080 637,776
TELEFLEX INC Common stock 2,658 687,040
TEVA PHARMACEUTICAL IND A Common stock 17,571 270,945
TEXAS CAPITAL BANCSHARES Common stock 7,600 388,284
TEXAS INSTRUMENTS INC Common stock 7,412 700,434
THE STARS GROUP INC Common stock 19,600 323,792
THERMO FISHER SCIENTIFIC Common stock 3,459 774,090
TIFFANY & CO Common stock 2,248 180,986
TIVO CORP Common stock 49,786 468,486
T-MOBILE US INC Common stock 7,692 489,288
TORO CO Common stock 4,028 225,085
TRANSUNION Common stock 10,981 623,721
TREEHOUSE FOODS INC Common stock 7,100 360,041
TREX CO INC Common stock 5,989 355,507
TRINITY INDU INC Common stock 18,600 382,974
UNION PACIFIC CORP Common stock 2,714 375,156
UNITED NATURAL FOODS INC Common stock 27,100 286,989
UNITED TECH CORP Common stock 8,683 924,566
UNITED THERAPEUTICS CORP Common stock 3,400 370,260
UNITEDHEALTH GROUP INC Common stock 4,751 1,183,569
UNITEDHEALTH GROUP INC Common stock 9,850 2,453,832
UNITI GROUP INC Common stock 14,785 230,202
UNIVERSAL ELECTRONICS INC Common stock 4,613 116,617
UNUM GROUP Common stock 5,700 167,466
US BANCORP DEL Common stock 11,293 516,090
US FOODS HLDGS CORP Common stock 18,700 591,668
VAIL RESORTS INC Common stock 5,294 1,116,081
VALERO ENERGY CORP Common stock 6,319 473,735
VEEVA SYS INC CL A Common stock 7,920 707,414

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VEREIT INC Common stock 76,700 548,405
VERMILION ENERGY (USD) Common stock 26,106 550,053
VERSUM MATERIALS INC Common stock 4,958 137,436
VERTEX PHARMACEUTICALS IN Common stock 6,211 1,029,225
VIACOM INC CL B Common stock 11,200 287,840
VIRTU FIN INC- CL A Common stock 13,746 354,097
VISA INC CL A Common stock 20,976 2,767,573
VONAGE HLDGS CORP Common stock 21,900 191,187
VULCAN MATERIALS CO Common stock 9,154 904,415
WEIGHT WATCHERS INTL INC Common stock 5,987 230,799
WELLS FARGO & CO Common stock 20,110 926,669
WEST PHARMACEUTICAL SVCS Common stock 2,784 272,916
WESTINGHOUSE AIR BRAKE TE Common stock 7,855 551,814
WEX INC Common stock 2,846 398,611
WHITE MOUNTAINS INS GROUP Common stock 700 600,383
WILLIS TOWERS WATSON PLC Common stock 5,953 904,023
WORLDPAY INC Common stock 4,836 369,615
WYNN RESORTS LTD Common stock 272 26,904
ZAYO GROUP HLDGS INC Common stock 18,100 413,404
ZIMMER BIOMET HLDGS INC Common stock 1,914 198,520
Brokerage Link Participant directed accounts including certain Fidelity investment funds** 32,895,897
NOTES RECEIVABLE FROM PARTICIPANTS** Installment loans due from participants with maturity dates ranging from January 2019 to December 2033 and interest rates ranging from 4.25% to 6.25%. 7,732,609
$ 664,839,778
**Represents party in interest to the Plan.

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SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the Plan Administrator of the Plan has duly caused this annual report to be signed on its behalf by the undersigned thereunto duly authorized.

Devon Energy Corporation Incentive Savings Plan
Date: June 5, 2019 /s/ Tana K. Cashion
Tana K. Cashion
Senior Vice President Human Resources

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