The fourth quarter will likely be a busy one for Oklahoma City-based Devon Energy as it anticipates drilling and completing 100 more wells in the oil plays where it carries out exploration.
The 100 wells would top the 81 wells brought online in the third quarter, according to the financial report recently released by Devon. Those wells also had an average lateral length of 9,300 feet. Devon said it averaged two dozen drilling rigs during the third quarter and had 5 completion crews.
Devon spent $896 million on its capital expenditures, a 12% drop from the second quarter of the year. The company explained the decline in capital was driven by the timing of completions in the Delaware Basin where Devon temporarily reduced activity to 3 completion crews in the second half of the year.
Its production averaged 665,000 oil-equivalent barrels a day, an 8% increase compared to a year ago. But it was also 1% below midpoint expectations because of select well performance in the Williston Basin and temporary constraints in the Delaware, reported the company.
Oil totaled 321,000 barrels per day in the quarter, which was 48 percent of total volumes. Devon’s operating performance was driven by its Delaware Basin asset, which accounted for 66 percent of the company’s production at 440,000 Boe per day. This production result represents a growth rate of 5 percent compared to the year-ago period, driven by 59 gross operated wells being placed online during the quarter.
Average 30-day production rates from this activity reached 3,000 Boe per day, representing a 20 percent-plus improvement in well productivity from the first half of 2023.
Devon’s fourth quarter capital is expected to range from $870 million to $930 million. With this level of investment, the company expects to bring online around 100 gross operated wells during the quarter. Fourth-quarter production is expected to
range from 640,000 to 660,000 Boe per day, with oil production approximating 315,000 barrels per day. This decrease in
production from the third quarter is driven by declines in the Williston Basin and timing of completions in the Delaware Basin.
In 2024, the company plans to sustain oil production at around 315,000 barrels per day, with total volumes approximating
650,000 Boe per day. Capital requirements are expected to decline approximately 10 percent from 2023 levels to a range of
$3.3 billion to $3.6 billion. This program is estimated to be funded at pricing levels below $40 per barrel.
Source: Devon release