February storm resulted in 8% production drop for Devon Energy

 

 

Devon Energy on Monday indicated in a guidance for the first quarter and full-year 2021 that the severe winter weather in February caused an expected 8% reduction in production.

The company stated that it has restored its production to levels prior to the storm and expects the weather-related downtime to be confined to the first quarter.

Devon said its expected oil production in the first quarter will be 261,000 to 265,000 barrels a day and total production of 485,000 to 499,000 oil-equivalent barrels a day.

“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,” said Rick Muncrief, president and CEO.

He said per-unit expenses are expected to increase by nearly 5% in the first quarter as a result of the weather impact across Devon’s operations. Devon showed that its first quarter capital expenditures will range from $490 million to $530 million.

The guidance did not include WPX results prior to the acquisition close date of Jan. 7, 2021. Devon also indicated in the guidance announcement that its sale of Wind River assets in Wyoming will reduce 2021 oil production by nearly 2,000 barrels a day.

The Wind River closing was on March 3 as part of Devon’s divestiture efforts.

Additional details of Devon’s forward-looking guidance for the first quarter and full-year 2021 are available on the company’s website at www.devonenergy.com.

 

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