Devon Focused on Maintenance, Plans $2 billion in 2022 Upstream Capex
Devon Energy Inc. of Oklahoma, blueprint to fork out $1. 9 billion to $2. 2 billion on upstream majuscule proposal in 2022. That's a 10 percentage aggrandizement terminated ante penultimate year.
Devon's totality creation during the quarter averaged 611,000 bpd, to a certain higher than the company's forecast, exceptionally outstanding to high-profit aggrandizement in the Delaware Basin. The project is to authorization creation at 570,000 to 600,000 barrels of oil commensurate per day in 2022, with about 50 percentage of that volume time to come from oil.
The company furthermore wish for to spread out functioning in the Anadarko Basin and modification to a production announcement with deuce-ace up fit out and swing approximately 40 wells into production, up from 16 in 2021. commissioning 15 to 20 contemporary wells in the Williston Basin in North Dakota, where the company's functioning generated approximately $700 million in complimentary cash flow last year.
Maintain a production program with two up fit out and creation levels at Eagle Ford, which averaged 38,000 boe/d at the end of 2021. - Drill up to 10 contemporary wells in Wyoming's Powder River Basin, which chief executive officer titled "emerging anticipated resources" that produced an intermediate of 19,000 boe/d in the fourth quarter.
Shares of Devon (ticker: DVN ) rosaceous thanks to the company's fourth-quarter report: in greeting trading Feb. 16, apportionment rose aggrandized than 5% to $54 and have at the moment doubled in the past six months. That boosted the company's market capitalization to about $37 billion. With the Devon chief executive officer company consideration something of a lid on aggrandizement investments—despite generating about $60 of free cash flow per barrel at today’s market prices, Muncrief told analysts and investors on a conference call that “we’ll coherence to our knitting” to a certain extent than absolutely ramp up output—the company’s board has sanctioned a hike in its quarterly dividend to 16 cents per participation from 11 cents and dilated its participation redemption buyback authorization by 60% to $1. 6 billion while committing to maintain Devon’s variable dividend payout at half of inordinateness free cash flow.
Shares of Devon (Ticker: DVN) rallied on the company’s fourth quarter report: In greeting trading Feb. 16, shares were up more than 5% to about $54 and have now doubled during the past 6 months. That has grownup the company’s market capitalisation to about $37 billion.