Based on the strength of its first quarter results, Oklahoma City-based Devon Energy said last month it is increasing its fullyear 2024 production forecast by 2 percent to a range of 655,000 to 675,000 boed. Production averaged 664,000 boed in Q1 to exceed the company’s guidance by 4 percent. Devon said that “results were driven by better-than-planned well productivity, cycle time improvements that brought forward activity, and the easing of infrastructure constraints in the Delaware Basin.” Devon’s oil output was 319,000 b/d in Q1 – 48 percent of total volumes. Devon’s Q1 operating performance was driven by its Delaware Basin assets, which accounted for 66 percent of company volumes at 437,000 boed.
Rick Moncrief, president and CEO, said, “Based on the impressive operating momentum we have established year to date, we have raised our Q2 and fullyear 2024 guidance. This improved outlook raises production targets and increases free cash flow projections.”
Upstream capital spending was at the bottom end of guidance in Q1 at $842 million. Devon said it has a “premier multi-basin portfolio headlined by a world-class acreage position in Delaware Basin.”