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Sep 30, 2020
Devon Energy Q3 2020 Earnings Report
Devon Energy reported financial and operational results for the third-quarter 2020.
Key Takeaways
Devon Energy reported a net loss of $92 million, but generated $223 million of free cash flow. The company's oil production exceeded guidance, driven by strong well productivity in the Delaware Basin. Devon also announced a transformational merger with WPX Energy and paid a special dividend to shareholders.
Third-quarter oil production totaled 146,000 barrels per day, exceeding midpoint guidance by 6,000 barrels per day.
Delaware Basin efficiency gains drove capital expenditures below midpoint guidance in the quarter.
Operating cash flow expanded quarter over quarter to $427 million.
Free cash flow generation reached $223 million in the third quarter.
Devon Energy
Devon Energy
Forward Guidance
Devon is raising its full-year 2020 oil production forecast and lowering its full-year 2020 E&P capital expenditure guidance.
Positive Outlook
- Raising full-year 2020 oil production forecast to a range of 152,000 to 154,000 barrels per day.
- Improved outlook is due to better than expected well productivity.
- Strong base production performance across its asset portfolio.
- Lowering the top end of its full-year 2020 E&P capital expenditure guidance by $10 million to a range of $950 million to $990 million in 2020.
- Capital efficiency gains in the Delaware Basin.