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Researched by Industrial Info Resources (Sugar Land, Texas)--Buoyed by the strong first-quarter performances of its STACK and Delaware basin assets, Devon Energy Corporation (NYSE:DVN) (Oklahoma City) now expects to increase U.S. oil production by 16% this year, up from its earlier guidance of 14%. Industrial Info is tracking nine active Devon-related projects in the U.S. worth $715 million.
Devon's total North American production for the just-ended quarter averaged 544,000 oil-equivalent barrels (BOE) per day, the company said in its first-quarter earnings report. U.S. production averaged 413,000 BOE per day. The strongest performance in the U.S. was driven by the company's Delaware and STACK assets, where combined oil production increased 16% compared with the prior quarter.
"This strong growth was driven by record selling well productivity," said Chief Operating Officer Tony Vaughn said during Devon's earnings conference call. "For the quarter this activity was headlined by two stunningly prolific Boundary Raider wells in the Delaware Basin that achieved a combined 24-hour IP [initial production] rate of approximately 24,000 BOEs per day, of which approximately 80% is oil. These are the highest rate wells brought on in the 100-year history of the Delaware Basin."
Devon's estimated exploration and production capital expenditure for this year is $2.2 billion to $2.4 billion.
Capital expenditures for the first quarter totaled $701 million. Chief Executive Officer David Hager said during the company's earnings conference call that upstream capital spending will trend toward the top half of its capital guidance range, "because we're completing our plan 2018 program quicker than anticipated, and we'll most likely accelerate some 2019 program into 2018. This is a good news story."
The company reported a $197 million net loss for first-quarter 2018, compared with a $303 million profit in first-quarter 2017. Devon attributed the loss to a $312 million charge related to the early retirement of debt.
One of Devon's midstream projects is the $300 million Thunderbird cryogenic natural gas processing plant in Kingfisher, Oklahoma. To be built by EnLink Midstream Partners LP (NYSE:ENLK) (Dallas, Texas), of which Devon has 23% ownership, the 200 million-standard-cubic-foot-per-day facility would be completed in early 2019. Kahuna Ventures LLC (Westminster, Colorado) is the engineering, procurement and construction (EPC) firm for the project. For more information, see Industrial Info's project report. For more information on projects in Oklahoma, see April 24, 2018, article - Oklahoma! Where Nearly $11 Billion in Projects Are Sweeping Down the Plain.
In Texas, the $150 million Ajax (Lobo) Cryogenic Natural Gas Plant III Expansion project is under construction near Mentone. Saulsbury Industries (Odessa, Texas) is performing the engineering, procurement and construction (EPC) work on the project, which would increase natural gas processing capacity by 200,000 standard cubic feet per day, bringing the facility's total capacity to 370,000 standard cubic feet per day. Completion of the expansion is expected by late 2018. For more information, see industrial info's project report. For more on Saulsbury Industries, see April 24, 2018, article - Saulsbury at Work on $3 Billion in Projects, Cryogenic Plants Topping List.
Devon's U.S. projects are easily outweighed by its Canadian developments, which total nearly $5 billion in value. Devon Canada Corporation and BP Canada Energy Corporation are 50:50 owners of the $1.05 billion Phase 1A of a steam-assisted gravity drainage (SAGD) bitumen processing plant in Lac La Biche, Alberta. The facility would produce 35,000 barrels per day (BBL/d) of bitumen upon its planned completion in 2021. Fluor Corporation (NYSE:FLR) (Irving, Texas) has been awarded the front end engineering design work. For more information, see Industrial Info's project report. For more on Fluor, see April 19, 2018, article - Fluor's Top-Valued Work Spans Ethylene, LNG Production and NGCC Plants.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com.
Devon's total North American production for the just-ended quarter averaged 544,000 oil-equivalent barrels (BOE) per day, the company said in its first-quarter earnings report. U.S. production averaged 413,000 BOE per day. The strongest performance in the U.S. was driven by the company's Delaware and STACK assets, where combined oil production increased 16% compared with the prior quarter.
"This strong growth was driven by record selling well productivity," said Chief Operating Officer Tony Vaughn said during Devon's earnings conference call. "For the quarter this activity was headlined by two stunningly prolific Boundary Raider wells in the Delaware Basin that achieved a combined 24-hour IP [initial production] rate of approximately 24,000 BOEs per day, of which approximately 80% is oil. These are the highest rate wells brought on in the 100-year history of the Delaware Basin."
Devon's estimated exploration and production capital expenditure for this year is $2.2 billion to $2.4 billion.
Capital expenditures for the first quarter totaled $701 million. Chief Executive Officer David Hager said during the company's earnings conference call that upstream capital spending will trend toward the top half of its capital guidance range, "because we're completing our plan 2018 program quicker than anticipated, and we'll most likely accelerate some 2019 program into 2018. This is a good news story."
The company reported a $197 million net loss for first-quarter 2018, compared with a $303 million profit in first-quarter 2017. Devon attributed the loss to a $312 million charge related to the early retirement of debt.
One of Devon's midstream projects is the $300 million Thunderbird cryogenic natural gas processing plant in Kingfisher, Oklahoma. To be built by EnLink Midstream Partners LP (NYSE:ENLK) (Dallas, Texas), of which Devon has 23% ownership, the 200 million-standard-cubic-foot-per-day facility would be completed in early 2019. Kahuna Ventures LLC (Westminster, Colorado) is the engineering, procurement and construction (EPC) firm for the project. For more information, see Industrial Info's project report. For more information on projects in Oklahoma, see April 24, 2018, article - Oklahoma! Where Nearly $11 Billion in Projects Are Sweeping Down the Plain.
In Texas, the $150 million Ajax (Lobo) Cryogenic Natural Gas Plant III Expansion project is under construction near Mentone. Saulsbury Industries (Odessa, Texas) is performing the engineering, procurement and construction (EPC) work on the project, which would increase natural gas processing capacity by 200,000 standard cubic feet per day, bringing the facility's total capacity to 370,000 standard cubic feet per day. Completion of the expansion is expected by late 2018. For more information, see industrial info's project report. For more on Saulsbury Industries, see April 24, 2018, article - Saulsbury at Work on $3 Billion in Projects, Cryogenic Plants Topping List.
Devon's U.S. projects are easily outweighed by its Canadian developments, which total nearly $5 billion in value. Devon Canada Corporation and BP Canada Energy Corporation are 50:50 owners of the $1.05 billion Phase 1A of a steam-assisted gravity drainage (SAGD) bitumen processing plant in Lac La Biche, Alberta. The facility would produce 35,000 barrels per day (BBL/d) of bitumen upon its planned completion in 2021. Fluor Corporation (NYSE:FLR) (Irving, Texas) has been awarded the front end engineering design work. For more information, see Industrial Info's project report. For more on Fluor, see April 19, 2018, article - Fluor's Top-Valued Work Spans Ethylene, LNG Production and NGCC Plants.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com.
