v3.25.2
Income Taxes
 6 Months Ended
Jun. 30, 2025
Income Tax Disclosure [Abstract]  
Income Taxes
6.
Income Taxes

The following table presents Devon’s total income tax expense and a reconciliation of its effective income tax rate to the U.S. statutory income tax rate.

 

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

 

 

2025

 

2024

 

2025

 

2024

 

Earnings before income taxes

 

$

1,161

 

$

1,040

 

$

1,807

 

$

1,808

 

 

 

 

 

 

 

 

 

 

 

Current income tax expense

 

$

226

 

$

146

 

$

322

 

$

265

 

Deferred income tax expense

 

 

18

 

 

39

 

 

59

 

 

79

 

Total income tax expense

 

$

244

 

$

185

 

$

381

 

$

344

 

 

 

 

 

 

 

 

 

 

 

U.S. statutory income tax rate

 

 

21

%

 

21

%

 

21

%

 

21

%

State income taxes

 

 

1

%

 

1

%

 

1

%

 

1

%

Income tax credits

 

 

(1

%)

 

(4

%)

 

(1

%)

 

(3

%)

Effective income tax rate

 

 

21

%

 

18

%

 

21

%

 

19

%

 

The increase in current income tax expense during the second quarter of 2025 is due to the sale of Devon’s investment in Matterhorn. For additional information, see Note 12.

On July 4, 2025, the OBBB was signed into law. The OBBB includes permanent reinstatement of 100% bonus depreciation and the expensing of domestic research costs. Devon is currently assessing the effects of the OBBB and, based on the enactment date, will recognize the impacts beginning in the third quarter of 2025. Devon anticipates that its current tax rates will be lower for the remainder of 2025 and in future periods.