Analyst Note| Dave Meats, CFA |
Devon Energy delivered total volumes of 499 thousand barrels of oil equivalent per day in the first quarter. Oil production was 268 mboe/d, exceeding the midpoint of post-Uri guidance by 5 mbbl/d, even though capital spending was slightly below guidance. These volumes include a nearly full quarterly contribution from WPX Energy, which was acquired Jan. 7 (sequential growth was 50%). Management attributed the outperformance to operations in the Delaware Basin, where pro forma production increased 19% year over year and completed well costs reached a record low of $534 per lateral foot. But despite the beat, the firm’s outlook for 2021 production and guidance was unchanged.