Oklahoma City-based Devon Energy Corp.’s first quarter oil and natural gas production, mostly pulled from the Permian Basin, is likely to be off by 8% because of the wintry freeze that gripped the country in February, the independent said Monday.
Production has since been restored to pre-storm levels, with weather-related downtime “confined to the first quarter,” management said.
“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,” CEO Rick Muncrief said.
The severe winter weather sent production down, but per-unit expenses up by around 5%.
Total production in 1Q2021 now is forecast at 485,000-499,000 boe/d, with oil output averaging 261,000-265,000 b/d. Full-year volumes in 2021 were reduced by 16,000 boe/d to 529,000-559,000 boe/d.
Oil output for 2021 is expected to average 280,000-290,000 b/d. Devon in February had boosted its full-year 2021 oil production forecast to 280,000-300,000 b/d. During 4Q2020, total output averaged 333,000 boe/d.
The updated guidance excludes the acquisition of WPX Energy Inc. prior to completing the takeover in early January, which limited production by an incremental 3%. Devon also sold its Wind River assets in Wyoming as of early March, which has trimmed another 2,000 b/d from 2021 production.
About 80% of this year’s capital budget of $1.6-1.8 billion is being directed to the Permian.
© 2021 Natural Gas Intelligence. All rights reserved.
ISSN © 2577-9877 | ISSN © 1532-1266 | ISSN © 2158-8023 |