Devon Vitality Corp. reported a $1.15 billion web earnings for the fourth quarter of 2023, just under the $1.20 billion reported for the corresponding quarter a yr prior.
The corporate stated in a press release that its working money move totaled $1.7 billion for the fourth quarter, representing the best quarterly quantity of the yr.
“Devon exited 2023 with constructive momentum, delivering a stable quarter of execution that surpassed our operational and monetary targets”, stated Rick Muncrief, president and CEO. “This efficiency rounded out one other yr of accomplishment, headlined by record-setting oil manufacturing and $2.7 billion of free money move technology. These achievements allowed us to reward shareholders with a powerful cash-return yield of 10 %, balanced between buybacks and dividends.”
Devon’s capital exercise within the fourth quarter averaged 24 operated drilling rigs and 6 completion crews. This degree of exercise resulted in 100 gross operated wells being positioned on-line, with a mean lateral size of 9,900 ft. Whole capital spending, excluding acquisitions, was $940 million within the fourth quarter, 1.0 % above the corporate’s steerage vary on account of cycle time enhancements that accelerated exercise and timing of midstream spending.
Manufacturing averaged 662,000 oil-equivalent barrels per day (boepd) within the fourth quarter, with oil averaging 317,000 barrels per day (bpd), exceeding the highest finish of the corporate’s steerage vary on account of better-than-planned effectively efficiency throughout the portfolio.
Devon stated that for the total yr 2023, record-setting oil volumes drove whole manufacturing 8.0 % larger yr over yr.
“Looking forward to 2024, now we have designed a plan to ship a step-change enchancment in capital effectivity. By allocating extra capital to the core of the Delaware Basin and high-grading exercise throughout our diversified portfolio, we anticipate to effectively maintain our oil manufacturing for roughly 10 % much less capital”, Muncrief stated.
Devon reaffirmed its beforehand issued outlook for manufacturing and capital in 2024. The corporate plans to maintain oil manufacturing at round 315,000 bpd, with whole volumes approximating 650,000 boepd. The capital necessities to ship this manufacturing are anticipated to say no roughly 10 % year-over-year to a variety of $3.3 billion to $3.6 billion.
As a result of addition of a fourth Delaware completion crew in January, the corporate’s capital program in 2024 is anticipated to be weighted in direction of the primary half of the yr. On account of this exercise timing, first-quarter capital spending is estimated to vary from $915 million to $965 million, based on the corporate.
It famous that in January, extreme winter climate throughout the corporate’s portfolio led to unplanned energy outages and manufacturing disruptions. These weather-related curtailments are estimated to scale back first-quarter manufacturing by 2.0 %, the corporate stated. As a consequence of these curtailments, Devon stated it expects first-quarter manufacturing to approximate 640,000 boepd (48 % oil).
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