1. Economic and Fiscal Impacts of Devon Energy in the Barnett Shale of North Texas: An Update Bernard L. Weinstein, Ph.D.* Terry L. Clower, Ph.D. University of North Texas December 2006 * Professor and assistant professor of applied economics. Views expressed are the authors’ alone and do not necessarily reflect those of the University of North Texas, its officers, or Regents.

2. Barnett Shale Figure

3. Oil and Gas Property Tax Values Source: Texas Comptroller of Public Accounts

4. Oil, Gas, and Minerals in School District Tax Base, 2005 Source: Texas Comptroller of Public Accounts

5. Economic and Property Income Impacts of Devon Operations: Nine County Barnett Shale Operating Area 2005 * Includes indirect and induced property income impacts to rents, royalties, dividends, and corporate profits. Study area includes Denton, Erath, Hill, Hood, Johnson, Palo Pinto, Parker, Tarrant, and Wise counties.

6. Economic and Property Income Impacts of Devon Operations on the Overall Texas Economy, 2005 * Includes indirect and induced property income impacts to rents, royalties, dividends, and corporate profits.

7. Economic and Property Income Impacts of Devon Operations, Barnett Shale Operating Area, 2006-2010 Estimates not adjusted for inflation. * Includes indirect and induced property income impacts to rents, royalties, dividends, and corporate profits. Study area includes Denton, Erath, Hill, Hood, Johnson, Palo Pinto, Parker, Tarrant, and Wise counties.

8. Employment Change Aug. 2000 – Aug. 2006 Source: Texas Workforce Commission

9. Change in Personal Income 1990-2004 Source: Bureau of Economic Analysis

10. Population Projections 2005-2030 Source: Texas State Data Center Note: All projections based on “0.5 Scenario”

11. Employment Projections 2005-2030 Sources: Texas State Data Center; U.S. Census Bureau; Bureau of Labor Statistics; The Real Estate Center at Texas A&M; and Authors’ Estimates

12. Conclusions Gas exploration and production is playing an important role in the North Texas economy. Devon’s activities are generating almost 9,000 local jobs, creating economic activity, and boosting local tax revenues. As a result of increasing North American demand for clean-burning natural gas, Devon will continue to be a major contributor to the regional economy in the years ahead.