Members of the Oklahoma Energy Workforce heard from Devon Energy’s Davis Harris, Executive Vice President and Chief Corporate Development Officer.
The Energy Workforce and Technology Council reported on the meeting.
Energy Workforce hosted David Harris, Executive Vice President and Chief Corporate Development Officer, Devon Energy Corporation, as keynote speaker at the Oklahoma Chapter luncheon last week at the Hamm Institute for American Energy in Oklahoma City.
He discussed Devon’s new business model, which starts with a disciplined growth strategy from a production perspective, targeting a flat 5% production growth with a 50% oil mix.
He said having oil as the product with the goal of 5% growth rate allows Devon to generate excess cash that can be used to strengthen the balance sheet and provide returns to investors.
He also noted that scale matters, as it enhances profitability, adding that Devon has been able to drive a lot of costs out of the system and add considerable efficiency. Being active in the core of the major basins gives a low break-even cost that insulates the capital program and the return profile from what the industry knows will be the inevitable commodity price volatility.
“We like the geographic and product diversity we have. We’ve never aspired to be a single basin pure play company,” he said.
Harris said Devon is seeing the early signs that investors are recognizing that oil and gas is not going away and will be needed for decades to come, and investors appreciate and understand the medium- to long-term thesis for their business.
“Creating the value for our shareholders is how we bring them back to this sector,” Harris said.
Harris also drew attention to recent discussions surrounding well production on a lateral length basis, particularly emphasizing compelling data that indicates the maturation of unconventional resources in the United States and certain basins where Devon has been actively operating. Devon places importance on consistently maintaining high well productivity year after year, he said, as it directly impacts the longevity and sustainability of the company’s operations.
He noted Devon has set aggressive emission reduction targets, focusing on Scope 1 and Scope 2 emissions. Reducing the methane and GHG intensity to get routine flaring to zero by the middle to end of the decade is a big focus for Devon.
“We are 52 years into this, we think about what year 100 looks like and ESG is an important part of being around for the long term,” he said.
Joe Hoepfl, Co-Founder and Partner, PPHB, also delivered a market outlook for the Members, after an introduction by Chapter Chair Dustin Anderson, Kimray, Inc.
Energy Workforce would like to thank the Oklahoma Chapter Steering Committee for their vision and leadership.
Thank you to sponsors Baker Hughes, Brigade Energy Services, Estis Compression, Kimray, Liberty Energy, NexTier Oilfield Solutions, Petroleum Equipment Company, SLB and TechnipFMC, as well as strategic partners Chevron, NexTier and SLB.
Source: press release