Devon’s Multibasin Presence and Low-Cost Operations Should Translate to Attractive Free Cash Flow

In 2018, Devon embarked on a series of shrewd capital allocation moves that saw it sell its Enlink Midstream interest, divest its Canadian heavy oil and Barnett Shale interests, and merge with WPX. These astute steps allowed Devon to recycle cash by shedding interests that were either noncore or higher on the cost curve. Recycled cash allowed Devon to meaningfully pivot toward the Delaware and enjoy newfound exposure in the Bakken. Previously, both Canadian Heavy Oil and Barnett Shale made up 40%-50% of its production.