v3.26.1
Share-Based Compensation
6 Months Ended
Jun. 30, 2026
Share-Based Payment Arrangement [Abstract]  
Share-Based Compensation
4.
Share-Based Compensation

The table below presents the share-based compensation expense included in Devon’s accompanying consolidated statements of comprehensive earnings.

 

 

Six Months Ended June 30,

 

 

 

2026

 

 

2025

 

G&A

 

$

56

 

 

$

46

 

Restructuring and transaction costs

 

 

37

 

 

 

7

 

Total

 

$

93

 

 

$

53

 

 

 

 

 

 

 

 

Related income tax benefit

 

$

18

 

 

$

8

 

 

Under its approved long-term incentive plans, Devon grants share-based awards to its employees. The following table presents a summary of Devon’s unvested restricted stock awards and units and performance share units granted under the plans.

 

 

Restricted Stock Awards & Units

 

 

Performance Share Units

 

 

 

Awards/Units

 

 

Weighted
Average
Grant-Date
Fair Value

 

 

Units

 

 

Weighted
Average
Grant-Date
Fair Value

 

 

 

(Thousands, except fair value data)

 

Unvested at 12/31/25

 

 

4,653

 

 

$

40.79

 

 

 

1,293

 

 

$

58.82

 

Granted (1)

 

 

9,201

 

 

$

45.95

 

 

 

439

 

 

$

61.73

 

Vested

 

 

(3,690

)

 

$

45.75

 

 

 

(200

)

 

$

81.70

 

Forfeited

 

 

(139

)

 

$

42.90

 

 

 

(117

)

 

$

81.70

 

Unvested at 6/30/26

 

 

10,025

 

 

$

43.67

 

 

 

1,415

 

(2)

$

54.59

 

(1)
Pursuant to the terms of the Merger Agreement, certain of Coterra’s outstanding time-based and performance-based equity awards converted into the right to receive Devon restricted stock units based, in part, on the 0.70 exchange ratio. As a result, approximately 7.2 million awards relate to the conversion of Coterra equity awards to Devon restricted stock unit awards.
(2)
A maximum of 2.8 million common shares could be awarded based upon Devon’s final TSR ranking.

The following table presents the assumptions related to the performance share units granted in 2026, as indicated in the previous summary table.

 

 

2026

 

 Grant-date fair value

 

$

61.73

 

 Risk-free interest rate

 

 

3.52

%

 Volatility factor

 

 

33.80

%

 Contractual term (years)

 

 

2.89

 

The following table presents a summary of the unrecognized compensation cost and the related weighted average recognition period associated with unvested awards and units as of June 30, 2026.

 

 

Restricted Stock

 

 

Performance

 

 

 

Awards/Units

 

 

Share Units

 

Unrecognized compensation cost

 

$

295

 

 

$

35

 

Weighted average period for recognition (years)

 

 

2.5

 

 

 

2.1