US-based energy company Devon Energy intends to keep to its liquids-rich basins and remain as “oily” a producer as possible due to crude’s ability to drive superior margins compared with natural gas, CEO Rick Muncrief said Feb. 28.
Looking ahead to 2024, we have designed a plan to deliver a step-change improvement in capital efficiency. By allocating additional capital to the core of the Delaware Basin and high-grading activity across our diversified portfolio, we expect to efficiently sustain our oil production for roughly 10 percent less capital.
Reports suggest Devon is in talks with Canadian-based Enerplus and made an acquisition offer. Devon declined comment. Enerplus did not immediately respond to a request for a comment reported Reuters.
Devon Energy announced a new partnership with Folds of Honor, a nonprofit dedicated to providing life-changing scholarships to spouses and children of America’s fallen or disabled military and first responders.
Rick Muncrief and other executives said they are planning 2024 capital spending of $3.3-3.6 billion, a 10% drop from this year’s estimated $3.8 billion. About 70% of those investments will be dedicated to the Delaware basin, where Devon controls about 400,000 net acres.
Devon Energy (NYSE:DVN) is considering major acquisition targets as it seeks to gain scale in U.S. shale, and has held preliminary talks in recent months about a combination with Marathon Oil (NYSE:MRO), Bloomberg reported Wednesday.
Devon Energy recently filed completion reports on two wells drilled on a single pad in Canadian County with production of more than 1,100 barrels of oil a day.
Devon Total capital investment for the year is expected to range from $3.6 billion to $3.8 billion. These capital requirements in 2023 are estimated to be self-funded at pricing levels as low as a $40 WTI oil price.
Devon Energy had four wells on a single pad in Blaine County with production of more than 1,500 barrels of oil a day and nearly 29,000 Mcf of natural gas.
Devon highlighted the Hornet super pad development in Blaine County, Oklahoma, which it said delivered initial 30-day rates as high as 4,000 boe/d.
