Oklahoma City-based Devon Energy said in its fourth quarter earnings report that Delaware Basin in Permian will be the top funded asset in its portfolio in 2023 with 60 percent of capital expenses. Devon said Feb. 22 total capex for 2023 is $3.6 billion to $3.8 billion with production of 643,000 to 663,000 boed. Rick Muncrief, president and CEO, said Feb. 14, “There will be no change to our disciplined approach to business (in 2023). We have designed a capital program to efficiently sustain production, deliver high returns on capital employed, and generate significant free cash flow.”
In Delaware Basin, production in Q4 was 407,000 boed (50 percent oil) with oil volumes at an all-time high of 316,000 b/d. Production in Q4 was down 2 percent due to severe weather, and Devon said production in 2023Q1 of about 635,000 boed (flat with Q4) is impacted by infrastructure outages in Delaware Basin (fire in January at third-party compressor station, online by mid-March) and other factors.
Devon will temporarily add a fourth fracturing crew in Delaware Basin in first half of 2023 when its capex will be $1.8 billion to $1.9 billion.