Oklahoma City-based Devon Energy said last week it will increase spending in Delaware Basin in 2024. Rick Muncrief, president and CEO, said capital spending for Devon in 2024 will be $3.3 billion to $3.6 billion – a 10 percent decline from estimated $3.8 billion in 2023. But 70 percent will be dedicated to Delaware Basin compared to 60 percent this year.
In third quarter the average 30-day initial production from Devon’s wells in Delaware Basin increased more than 20 percent from first half 2023, Muncrief said, and an additional 10 percent increase in productivity could be realized in 2024 by focusing on Wolfcamp and a more efficient infrastructure network around wells. Devon’s 3Q production in Delaware Basin averaged 440,000 boed (66 percent of the company’s total production) and 215,000 b/d of oil – up from 421,000 boed and 210,000 b/d of oil in 2022Q3.
Muncrief added Nov. 7, “Devon’s performance once again demonstrates the strength of our disciplined operating strategy leading to another quarter of strong financial growth… Looking ahead to 2024 we plan to refine our capital allocation by further concentrating investment in the Delaware Basin. By shifting more capital to the core of this world-class basin and high-grading activity across our diversified portfolio, we expect to deliver a step-change improvement in capital efficiency.” Devon controls 400,000 net Delaware acres.