Oklahoma City-based Devon Energy Corporation recently released its August 2018 Investor Presentation. Key elements of the report focus on the following:
Concentrated Activity in Delaware Basin and STACK
Devon touts its multi-decade growth platform which features over 30,000 potential locations in the Delaware Basin and STACK area.
Expanding Cash Flow
The company intends to optimize returns and maximize cash flow by aggressively lowering the cost structure and leveraging technology to optimize base production.
Devon established a net debt to EBITDA target of 1.0x – 1.5x and reported that it is in the target range. The company is also focused on executing a disciplined hedging program designed to mitigate pricing risk.
Shareholder Dividend Initiatives
A $4 billion share-repurchase program was initiated by Devon. A $1 billion debt reduction plan is underway, with an estimated $827 million of debt retired to date. Devon also plans to retire approximately $257 million of maturing debt by early 2019. The company reported a 33% increase in the quarterly cash dividend during the first quarter of 2018. Devon established a 5%-10% target cash flow payout ratio.
Devon reported several divestitures and expects to exceed a $5 billion target by the end of 2018. The company has announced a total of $4.2 billion of divestitures to date. Devon will continue to streamline its portfolio.
To review a complete copy of Devon’s August 2018 Investor Presentation slide deck, click here.