Devon Energy (NYSE: DVN) delivered a steady second quarter of 2025, balancing multi-basin strength with ongoing headwinds from weak natural gas prices. The company drilled 309 wells year-to-date, led by New Mexico activity, while maintaining production of 841,000 BOE/D with nearly half from oil. Strong operating cash flow of $1.5 billion supported $589 million in free cash flow, keeping Devon’s balance sheet resilient as it navigates gas oversupply and positions for long-term LNG-driven demand growth.
Permian Oil & Gas Operator Account Directory – $10
Includes: Account Name, Location, Phone, Website, Wells Drilled….
North American Drilling
- Wells Drilled Since 2022
- 2022 → 419 records
- 2023 → 475 records
- 2024 → 441 records
- 2025 (YTD) → 309 records
- Wells Drilled in 2025
- New Mexico (NM) → 182 wells
- North Dakota (ND) → 43 wells
- Texas → 41 wells
- Oklahoma (OK) → 26 wells
- Wyoming (WY) → 12 wells
- Montana (MT) → 5 wells
Financial Performance – Q2 2025
- Net Income: $899M ($1.41/share)
- Core Earnings: $536M ($0.84/share) excl. asset sales
- Operating Cash Flow: $1.5B
- Free Cash Flow: $589M
- Balance Sheet (June 30, 2025):
- Liabilities: $16.1B (LT debt $8.4B)
- Assets: $31.4B
- Debt/Asset Ratio: 51%
- Liabilities: $16.1B (LT debt $8.4B)
Production Profile
- Total: 841,000 BOE/D
- Oil: 46% (387,000 BPD)
- NGLs: 26%
- Natural Gas: 28%
- Oil: 46% (387,000 BPD)
- By Basin (Q2 2025):
- Permian Delaware: 498,000 BOE/D (46% oil) – core focus
- Rockies: 189,000 BOE/D (55% oil, includes Grayson Mill Bakken assets)
- Eagle Ford: 60,000 BOE/D (65% oil)
- Anadarko: 90,000 BOE/D (14% oil, gas-heavy)
- Permian Delaware: 498,000 BOE/D (46% oil) – core focus
Gas Price Realizations
- Permian Delaware gas: $1.34/MCF ($8.04/BOE) – improved but still weak
- Rockies gas: -$0.50/MCF (negative pricing)
- Company avg. realized gas: $1.56/MCF ($9.36/BOE), boosted by hedges/derivatives
Guidance (FY 2025)
- Oil Production: 384–390k BPD
- Total Production: 825–842k BOE/D
- Capex: $3.6–$3.8B (slightly reduced)
- Pricing Outlook:
- Oil: 95–99% of WTI
- Gas: 50–55% of Henry Hub
- Oil: 95–99% of WTI
Reserves (Year-End 2024)
- PV-10: $19.8B (down on weaker gas prices)
- Proved Reserves: 2.16B BOE
- Oil: 42%
- NGL: 29%
- Gas: 29% (3.8 Tcf)
- Oil: 42%
Macro Environment
- Oil: WTI ~$62.69/bbl (Sept 13, 2025)
- Gas: Henry Hub ~$2.94/MMBTU vs Asian LNG ~$11.3/MMBTU
- Challenges:
- OPEC+ supply growth outpacing demand
- Permian/Rockies gas oversupply + takeaway constraints
- Gassier wells as Permian matures
- OPEC+ supply growth outpacing demand
- Tailwinds:
- Rising LNG export demand
- Gas-fired power demand (AI data centers, renewables backup)
- 7-year contract (2028–2035) to supply 65 MMCF/D to Competitive Power Ventures, indexed to ERCOT West
- Rising LNG export demand
Competitive Position
- Multi-basin portfolio (Permian, Eagle Ford, Williston/Bakken, Anadarko, PRB)
- Competes directly with nearly all major U.S. E&Ps in Permian and Bakken
- Strength in scale and low-cost Delaware acreage but exposed to gas price weakness
