For Oklahoma City’s Devon Energy, 2021 was a record setting year. But Rick Muncrief, Devon’s President and CEO says the company is just getting started.
It’s what he told a conference call this week where leaders of the energy company discussed the quarterly financial results.
“While 2021 was a record year, we’re only getting started.,” said Muncrief.
“At Devon, we have the right mix of assets, proven management, the right team and a shareholder business — a shareholder-friendly business model, designed to continue to lead the energy industry and capital disciplines and cash returns.”
Muncrief credited the merger of Devon and WPX Energy with producing net earnings of $1.15 billion or $2.23 per diluted share in the fourth quarter of the year. Operating cash flow was $1.6 billion in the quarter—a 173% increase from a year earlier.
He also said Devon was positioned to deliver free cash flow growth of more than 70% compared to 2021.
“With this powerful stream of free cash flow, we delivered on exactly what our shareholder-friendly business model was designed for, and that is to lead the industry in cash returns,” said Muncrief. “—simply put, we expect 2022 to be another great year for Devon.”
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In turn, Muncrief said it should also be another good year for shareholders. Devon also has increased its dividend payout for five consecutive quarters, paying out $1.3 billion in dividends in 2021—a per share increase of roughly 2 times that of 2020.
“Importantly, we expect our dividend growth story to only strengthen in 2022,” he added. “—we are on pace to essentially double our dividend again in the upcoming year, which equates to around 8%.”
Devon is also moving ahead with an increased shareholders buyback plan totaling $1.6 billion.
“Given this favorable setup, we have put our money where our mouth is by aggressively repurchasing $589 million of shares just in the fourth quarter alone,” said the Devon CEO.