Devon Energy’s first-quarter 2025 results reflect a disciplined, high-performance approach to drilling and capital deployment. With strong operational momentum, the company delivered above-guidance production and implemented early phases of its business optimization strategy—cutting capital while maintaining output.

“Devon delivered a strong first quarter, driven by operating excellence and financial discipline,” said CEO Clay Gaspar.
“We stayed focused on capital allocation, prioritizing high-return investments… with a resilient portfolio positioned to thrive in any market environment.”

Let’s break down what Devon said and did across drilling, efficiency, and regional execution.

🛠️ What Devon Said About Drilling, Rigs, and Completions

“Devon’s capital activity in the first quarter averaged 23 operated drilling rigs and 6 completion crews… 136 gross operated wells were placed online, with an average lateral length of 10,700 feet.”

Capital investment: $964 million (5% under guidance)
Key drivers of underspend: Cost discipline and lower infrastructure outlay in the Delaware Basin

⚙️ Summary of Efficiency Themes

Devon emphasized multiple efficiency gains in Q1:

Efficiency Theme	Details
Production beat	Oil output of 388,000 bpd—5,000 above guidance
Cost control	LOE + transport at $9.31 per Boe, total production cost at $12.42 per Boe
Capital efficiency	$100 million cut to 2025 full-year capital guidance
Business optimization	$1 billion in targeted annual pre-tax free cash flow gains by 2026

“We are cutting 2025 full year capital by $100 million while maintaining our productive capacity… our team has already secured the majority of our 2025 year-end target,” added Gaspar.

📊 Devon Energy Quarterly Drilling Activity

Drilling activity grew 20% year-over-year in Q1:

Quarter	Wells Drilled
Q1 2024	99
Q1 2025	119

Bar chart: Devon Energy arterly drilling activity

This increase aligns with stronger base performance and better-than-expected well results in the Eagle Ford and Rockies.

🏗️ Top 10 Drilling Contractors by Q1 Activity

Here are Devon’s most active drilling contractors and rigs across Q1 2024 and Q1 2025 combined:

Contractor & Rig	Q1 2024	Q1 2025	Total
H&P 437	9	8	17
H&P 314	8	6	14
H&P 269	6	6	12
H&P 265	5	6	11
Nabors B13	5	6	11

These rigs are central to Devon’s multi-basin execution strategy, especially in the Delaware Basin.

🗺️ Devon Drilling Activity by State (Q1 2024 vs Q1 2025)

Drilling shifted significantly across Devon’s asset base. New Mexico remains dominant, but activity in North Dakota and Wyoming grew:

State	Q1 2024	Q1 2025	Total
NM	52	74	126
Texas	19	14	33
ND	13	16	29
OK	11	5	16
WY	4	5	9

This reflects Devon’s reallocation of capital to higher-return regions while maintaining operational scale.

📈 Final Takeaway

Devon Energy’s Q1 2025 update tells a clear story: more wells, less spending, and stronger execution. By increasing drilling efficiency and optimizing capital across its key assets, Devon is reinforcing its position as a low-cost, high-output operator ready to weather volatile markets.