Devon Energy Issues Updated Guidance Including Impact from Winter Storm and Asset Sale
March 29 2021 - 7:45AM
Devon Energy Corp. (NYSE: DVN) today provided guidance for the
first quarter and full-year 2021 that incorporates the operational
impact from recent winter weather and a minor asset sale. The
company has restored its production to pre-storm levels and expects
the weather-related downtime to be confined to the first quarter.
First-quarter production is estimated to be reduced by 8 percent
due to the impact of severe winter weather. Adjusting for this
downtime, Devon expects oil production in the first quarter of
261,000 to 265,000 barrels per day and total production of 485,000
to 499,000 oil-equivalent barrels per day. The company’s guidance
also excludes WPX results prior to the acquisition close date of
Jan. 7, 2021, limiting production by an incremental 3 percent for
the first quarter.
“I would like to personally thank the team for their hard work
and dedication preparing for and safely responding to the
unprecedented severe weather conditions,” said Rick Muncrief,
president and CEO. “With our operations fully restored to pre-storm
levels, we are well positioned to execute on our disciplined
capital plan, accelerate free cash flow generation and return
increasing amounts of cash to shareholders.”
Per-unit expenses are expected to increase by approximately 5
percent in the first quarter as a result of the weather impact
across Devon’s operations.
The company’s full-year 2021 guidance was also adjusted for the
sale of the company’s Wind River asset in Wyoming which closed on
March 3, 2021. This divesture is expected to reduce oil production
by approximately 2,000 barrels per day for the full-year 2021.
Additional details of Devon’s forward-looking guidance for the
first quarter and full-year 2021 are available on the company’s
website at www.devonenergy.com.
ABOUT DEVON ENERGY
Devon Energy is a leading oil and gas producer in the U.S. with
a premier multi-basin portfolio headlined by a world-class acreage
position in the Delaware Basin. Devon’s disciplined cash-return
business model is designed to achieve strong returns, generate free
cash flow and return capital to shareholders, while focusing on
safe and sustainable operations. For more information, please visit
www.devonenergy.com.
Investor
Contacts |
Media Contact |
Scott Coody,
405-552-4735 |
Lisa Adams, 405-228-1732 |
Chris Carr,
405-228-2496 |
|
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 Devon. These risks include, but
are not limited to: the risk that we experience further production
downtime, higher-than expected expenses (including from third-party
claims) or other adverse impacts from Winter Strom Uri and its
effects; and the other risks identified in Devon’s 2020 Annual
Report on Form 10-K and its other filings with the Securities and
Exchange Commission. Investors are cautioned that any such
statements are not guarantees of future performance and that actual
results or developments may differ materially and adversely from
those projected in the forward-looking statements. The
forward-looking statements in this press release are made as of the
date hereof, and Devon does not undertake, and expressly disclaim,
any duty to update or revise our forward-looking statements based
on new information, future events or otherwise.
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