Devon plans $2bn spend in 2022
US producer Devon Energy said February 15 it plans to spend $1.9bn-$2.2bn on upstream capital projects in 2022, a roughly 10% increase from last year.
Devon reported Q4 2021 net earnings of $1.5bn on revenues of nearly $4.3bn, an increase from a loss of $102mn in Q4 2020. Operating cash flow was $1.6bn in the fourth quarter, a 173% increase from the first quarter of 2021 when Devon's merger with WPX Energy closed. Free cash flow reached $1.1bn, the highest in Devon’s 50-year history.
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“Our business is streamlined to capture the benefits of higher commodity prices and we will remain extremely disciplined by prioritising value over the pursuit of volume,” CEO Rick Muncrief said. “This shareholder-friendly approach will once again translate into differentiated cash returns and excellent returns on capital employed.”
Total production during Q4 averaged 611,000 barrels of oil equivalent (boe)/day, exceeding guidance by 3%, driven by high-margin production growth in the Delaware basin. Devon's production is 50% weighted to oil, with natural gas and natural gas liquids each contributing 25%.
The Delaware basin will continue to be a focus in 2022 with plans to bring up to 220 new wells on. In 2022, the company expects to operate an average of 14 rigs.
Approximately 60% of the activity will be directed toward development opportunities in New Mexico, with the remaining investment allocated to well-delineated opportunities across the company’s acreage in Texas.