Devon Energy Corp. (NYSE: DVN) has reported results for the quarter ended Sept. 30, 2014.
Devon generated cash flow from operations totaling $1.6 billion in the third quarter. Combined with $2.3 billion of pre-tax proceeds from the sale of non-core U.S. assets, Devon’s total cash inflows for the quarter approached $4 billion.
In the third quarter, total production from Devon’s retained assets averaged 640,000 oil-equivalent barrels (boe) per day. This result exceeded the company’s guidance range and represents a 19% increase year over year. Oil and liquids production accounted for 55% of the company’s retained asset production mix in the third quarter.
Devon delivered record oil production in North America during the third quarter of 2014. Oil production from retained assets averaged 216,000 barrels per day, exceeding the top end of the company’s guidance range by 6,000 barrels per day. This represents a 44% increase compared to the third quarter of 2013. The most significant growth came from the company’s U.S. operations, where oil production increased a substantial 77% year over year.
Growth in U.S. production was largely attributable to strong results from Devon’s oil development plays. In the third quarter, the company’s world-class Eagle Ford assets continued to deliver prolific well results. Net production in the Eagle Ford increased to an average of 87,000 boe per day in September, an increase of 76% compared to Devon’s first month of ownership in March 2014. In the Permian Basin, led by outstanding results from the Bone Spring play, total production increased to 98,000 boe per day. This represents a 20% increase in Permian production compared to the year-ago quarter.
Based on year-to-date results and Devon’s fourth-quarter outlook, most operating and financial metrics remain relatively unchanged compared to previous full-year guidance disclosures. A notable update is the company raising the midpoint of its 2014 production outlook from retained assets by 3% to approximately 617,000 Boe per day. This incremental production growth is expected to be delivered without additional capital spending.
The company is based in Oklahoma City.
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