“Exceptionally strong results,” is how Devon Energy’s President and CEO, Rick Muncrief, described the fourth quarter financial earnings for the Oklahoma City-based oil and gas company.
Strong indeed. Net earnings for the quarter totaled $639 million or 98 cents a share while for all of 2024, Devon Energy’s net earnings were $2.9 billion or $4.56 per share.
Devon reported $756 million in core earnings for the fourth quarter or $1.16 a share and record oil production of 398,000 barrels a day, beating the company’s guidance by 3%. It also generated $1.7 billion in operating cash flow and $738 million of free cash flow. The company also returned $444 million to shareholders and at the same time, boosted its cash balance to $846 million.
Devon reported full-year 2024 results of $3.1 billion in core earnings or $4.82 per share and record production performance of 737,000 Boe a day. During the year, it generated $6.6 billion of operating cash flow and $3 billion of free cash flow while also returning $2 billion to shareholders through dividends and share repurchases.
“I am proud to report that Devon ended 2024 with exceptionally strong results,” said Muncrief, president and CEO. “Our
operational performance was outstanding, underpinning robust financial outcomes and generating significant free cash flow. This
success is a testament to the dedication and hard work of our entire team.”
As a result of the strong earnings, Devon expects its 2025 capital program to be $3.8 to $4 billion and more than half of it will be allocated to the Delaware Basin. The firm expects production to be up to 825,000 Boe a day and oil production of 386,000 a day.
During the year, Devon carried out share repurchases, buying approximately $1.1 billion for the entire year.
A breakdown of operations showed Devon averaged 24 operated drilling rigs and 6 completion crews during the fourth quarter, resulting in 128 gross operated wells being placed online. The company also executed $116 million in multiple leasehold acquisitions across its portfolio, including in the Delaware, Williston and Anadarko Basins.
Devon’s oil production in the fourth quarter reached a record 398,000 barrels per day, exceeding guidance by 3 percent. Total
companywide production averaged 848,000 oil-equivalent barrels (Boe) per day in the fourth quarter. This represents a 16 percent increase in production compared to the previous quarter. Production in the quarter benefited from the closing on the company’s Grayson Mill acquisition in late September, which contributed 117,000 Boe per day and 63,000 barrels of oil per day to the quarterly average.
Devon’s remaining production outperformance was primarily driven by its Eagle Ford asset, which reached 92,000 Boe per day. This production result represents a growth rate of 23 percent quarter-over-quarter, driven by 23 gross operated wells being placed online during the quarter.
For the fourth quarter, Devon’s oil, gas and NGL sales totaled $3.1 billion, a 16 percent increase in revenues compared to the
prior quarter. The improvement was primarily due to the increased oil production quarter over quarter, as well as from higher natural gas liquids (NGL) and natural gas pricing.
The company’s realized price during the period, including commodity hedges, was $40.32 per Boe, down $0.39 per Boe from prior quarter. The decreased price realization largely reflected lower crude benchmark prices, partially offset by higher NGL and natural gas prices.
Production costs, including taxes, averaged $11.30 per Boe in the fourth quarter, a decline of 1 percent from the prior period. The
largest component of production costs is lease operating expense and gathering, processing and transportation costs, which totaled
$8.44 per Boe in the quarter. Effective cost management efforts and lower well workovers drove per-unit rates 10 percent below
guidance expectations for the quarter.
Additional details of Devon’s forward-looking guidance are available on the company’s website at www.devonenergy.com
