Oklahoma City-based Devon Energy said Feb. 15 its forecast for 2022 output remains 570,000 to 600,000 boed. Leading this production are the company’s assets in Delaware Basin (80 percent of Devon activity), including six wells in Cotton Draw in New Mexico, which accounted for 416,000 boed in 2021Q4. Devon plans to operate an average of 14 rigs and bring online 220 new wells this year – 60 percent in New Mexico. Upstream capital spending in 2022 is forecast at $1.9 billion to $2.2 billion – an increase of 10 percent over 2021. Production averaged 611,000 boed in 2021Q4 to exceed guidance. Devon’s position in New Mexico and Texas measures 400,000 net acres.
Rick Muncrief, president and CEO, said his company is committed to capital discipline. He added, “With our powerful suite of assets and financially driven strategy, we delivered on exactly what we promised by generating a record amount of free cash flow that was returned to shareholders… The value proposition of Devon only strengthens. Our business is streamlined to capture the benefits of higher commodity prices, and we will remain extremely disciplined by prioritizing value over the pursuit of volume.”