Devon Energy Provides Operational Update for Jackfish Complex; Announces Third-Quarter Production and Capital Results
October 16 2018 - 6:55AM
Business Wire
Devon Energy Corp. (NYSE: DVN) today reported that additional
facilities work at its Jackfish 1 heavy oil project in Alberta,
Canada, is now complete and full-scale operations have been
restored. The work at Jackfish 1 was related to minor facility
repairs the company identified during recent turnaround startup
activities. Devon elected to perform the incremental maintenance
work that temporarily curtailed production as opposed to deferring
the repairs to a future date.
Devon estimates that its third-quarter 2018 net production in
Canada will be approximately 104,000 barrels of oil equivalent
(Boe) per day as a result of the maintenance at Jackfish 1. The
temporary curtailment of volumes at Jackfish represents less than 1
percent of total expected company-wide production in 2018.
Production at the company’s Jackfish 2 and Jackfish 3 facilities
were at nameplate capacity for the entire third quarter.
With the Jackfish complex resuming full-scale operations, the
company expects fourth quarter net production in Canada, after the
impact of higher sliding-scale royalties, to increase to an average
of 115,000 to 120,000 Boe per day. This operational momentum will
carry into 2019, with Canadian net production estimated to exit the
current year in excess of 120,000 Boe per day.
Third-Quarter U.S. Production Exceeds Guidance; Capital
Spending Below Expectations
Devon estimates that net production in the U.S. will be
approximately 418,000 Boe per day during the third quarter of 2018.
During the quarter, Devon monetized minor, non-core assets with an
associated production impact of approximately 2,000 Boe per day.
This production result exceeds the company’s third-quarter guidance
range, adjusted for the non-core asset sales, of 398,000 to 417,000
Boe per day.
A key driver of the third-quarter production outperformance was
higher natural gas liquids yields and recoveries, which benefit
from access to premium pricing in the Mont Belvieu market. Devon’s
U.S. oil production in the third quarter was in line with the
midpoint of guidance.
The company effectively controlled capital costs during the
third quarter. Devon’s upstream capital spending was $523 million
in the quarter, which was $52 million, or 9 percent below the
company’s midpoint guidance.
About Devon Energy
Devon Energy is a leading independent energy company engaged in
finding and producing oil and natural gas. Based in Oklahoma City
and included in the S&P 500, Devon operates in several of the
most prolific oil and natural gas plays in the U.S. and Canada with
an emphasis on achieving strong returns and capital-efficient,
cash-flow growth. For more information, please visit
www.devonenergy.com.
Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of the federal securities laws. Such statements are
subject to a number of assumptions, risks and uncertainties, many
of which are beyond the control of the company. These risks
include, but are not limited to: any additional maintenance work at
the Jackfish facilities, midstream constraints in Canada and other
issues that may arise and adversely impact the company’s Canadian
operations; and the other risks identified in the company’s Annual
Report on Form 10-K and its other filings with the Securities and
Exchange Commission. In addition, this press release includes
preliminary results for the third quarter of 2018 that are not a
comprehensive statement of our financial and operational results
for the quarter and are provided prior to completion of typical
quarterly reviews and procedures and therefore may be subject to
adjustment. Investors are cautioned that any such statements are
not guarantees of future performance and that actual results or
developments may differ materially from those projected in the
forward-looking statements. The forward-looking statements in this
press release are made as of the date hereof, and the company does
not undertake any obligation to update the forward-looking
statements as a result of new information, future events or
otherwise.
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version on businesswire.com: https://www.businesswire.com/news/home/20181016005190/en/
Devon Energy Corp.Investor Contacts:Scott Coody,
405-552-4735Chris Carr, 405-228-2496Media Contact:John
Porretto, 405-228-7506
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