From staff reports Profits are flowing for Devon Energy as oil pr oduction increases, repeating their record $1.7 billion cash flow from operating activities in the f irst quarter of the year.
The $1.7 billion pr oved to be their highest quarter of the 2023 fiscal year, allowing Devon to repurchase 4.7 million s hares of common stock at a to tal cost of $205 million.
During the quarter, Devon saw a 4% production increase, averaging 664,000 oil- equivalent barrels daily. Additionally, there was a 5% gain in production in the De laware Basin compared to the f irst 2023 quarter. The production increase resulted in a str engthened balance sheet with cash balances increasing by $274 million to a total of $1.1 billion.
“By all measures, Devon delivered an outstanding set of results in the f irst quarter that demonstrated the comprehensive execution we achieved across every element of our disciplined strategy,” said Rick Muncrief, president and CEO. “Based on the impressive operating momentum we have established year to date, we have raised our second quarter and full-year 2024 guidance.”
Devon reported $596 million in net earnings, or $0.94 per dil uted share, in the f irst quarter of 2024. When adjusting for items analysts typically exclude from estimates, the core earnings were $730 million, or $1.16 per dil uted share.
In the f irst quarter, Devon declared a $0.35 di vidend per share, payable on June 28, 2024, to shareholders on record as of June 14, 2024. The payout includes a fixed dividend of $0.22 a nd a variable distribution of $0.13.
Their capital activity averaged 24 drilling rigs and seven completion crews, leading to 102 o perated wells online, with an average lateral length of 9,300 f eet.
Results were driven by improved well productivity, accelerated activity and reduced infrastructure constraints in the De laware Basin. Devon’s oil production reached 319,000 barrels per day, accounting for 48% of to tal volumes.
Upstream capital spending for the first quarter totaled $842 mil lion, representing a 3% decr ease in upstream spending compared to Q4 of 2023. Midstr eam, carbon and corporate capital totaled $95 million in the qua rter. Devon’s first quarter operating performance was boosted by its Delaware Basin asset, accounting for 66% of companywide volumes at 437,000 Boe per d ay. This result represents a 5% growth rate compared to the prior y ear, driven by 59 gross operated wells being placed online during the quarter.
Average 30-day production rates from this activity reached 3,200 Boe per day, representing a 20%plus improvement in well productivity versus the year ago period.