Devon Energy Reports Strong Q4 2024 Earnings, Sets Up for a Promising 2025
Devon Energy (NYSE: DVN) delivered a solid performance in Q4 2024,...
Devon Energy (NYSE: DVN) delivered a solid performance in Q4 2024, capping off a year of record production and strong financial results. The company reported impressive oil and total volume growth, generated substantial free cash flow, and executed strategic acquisitions to strengthen its portfolio. Looking ahead, Devon has outlined an ambitious 2025 strategy that prioritizes capital efficiency, operational improvements, and shareholder returns.
Q4 2024 Performance Highlights
Devon continued to execute its operating plan effectively, achieving record oil production of 398,000 barrels per day, surpassing its guidance. The company generated $738 million in free cash flow, reinforcing its commitment to disciplined capital allocation. Shareholder returns remained a priority, with $444 million in cash distributed during the quarter through dividends and share repurchases.
Operationally, Devon maintained efficient capital spending, spending $872 million—3% below its guidance. The successful integration of the Grayson Mill acquisition in the Rockies has also exceeded expectations, contributing to production growth and operational synergies.
Strategic Moves and Future Growth
One of the key developments in Q4 was Devon’s decision to dissolve its Eagle Ford partnership with BPX, securing operatorship of 46,000 net acres in the Blackhawk field. This move grants the company greater development flexibility and is expected to result in significant drilling and completion (D&C) savings, enhancing the asset’s net present value (NPV) and overall returns.
For 2025, Devon projects production growth of 10% year-over-year, with total volumes expected to range between 805,000 and 825,000 barrels of oil equivalent per day (BOE/d). The company anticipates generating $3.0 billion in free cash flow at $70 WTI, while total capital expenditures are expected to be between $3.8 billion and $4.0 billion, slightly lower than previous guidance.
Key asset focus areas for 2025 include:
Delaware Basin: This core asset will receive over 50% of Devon’s capital allocation, with an emphasis on balancing internal rate of return (IRR) and NPV while optimizing inventory.
Rockies – Grayson Mill: Continued integration will drive cost synergies and operational efficiencies.
Eagle Ford: Operatorship is expected to reduce well costs and improve returns.
Anadarko Basin: The company extended its 49-well joint venture with Dow, with the first well expected to be drilled in Q2 2025.
Senior officials from both countries, including US Secretary of State...
Senior officials from both countries, including US Secretary of State Marco Rubio and Russian Foreign Minister Sergey Lavrov, met in Saudi Arabia yesterday for the first high-level talks in years to discuss the war in Ukraine. Notably absent were any Ukrainian officials—namely, President Volodymyr Zelensky, who postponed a different trip to Saudi Arabia to protest being left in the cold. The US’ allies in Europe and experts around the world have expressed concern that the talks are likely to end on favorable terms for Vladimir Putin and Russia. In addition to negotiating how to end the war, the officials also reportedly discussed the potential to rekindle business ties between the two countries, which were largely severed following Russia’s invasion of Ukraine in 2022.
New York Gov. Kathy Hochul mulls removing NYC Mayor Eric Adams. Hochul...
New York Gov. Kathy Hochul mulls removing NYC Mayor Eric Adams. Hochul met with leaders in the Democratic Party to determine if Adams is fit to remain mayor in the wake of corruption allegations. Meanwhile, a federal judge ordered Adams and Justice Department prosecutors to appear in court today to explain the DOJ’s request to dismiss those charges. Danielle Sassoon, an interim US attorney and a Trump appointee, resigned last week rather than carry out the DOJ’s order. Hochul, who has the power to remove Adams from his post, could make a decision shortly after Adams meets with the judge today.
Lime, the e-bike and scooter company, reported 30% growth in bookings last year as it reportedly eyes going public.
Huawei launched its trifold Mate XT phone outside of China for the first time at a hefty $3,660 price point.
Coca-Cola launched a prebiotic soda brand, Simply Pop, to challenge industry leaders Poppi and Olipop—the latter of which recently earned a $1.85 billion valuation.
Southwest Airlines cut 15% of its corporate workforce in a cost-cutting move its CEO said was “unprecedented.”
The Saturday Night Live 50th anniversary special was watched by nearly 15 million people, making it NBC’s most-watched prime-time entertainment broadcast in five years, the Associated Press reported.
OKC Winter Storm: Roads remain hazardous as bitter cold persists
A significant winter storm has made its way into Oklahoma, bringing a...
A significant winter storm has made its way into Oklahoma, bringing a combination of freezing rain, sleet, and snow.
Road conditions remain hazardous across much of Oklahoma, particularly in northern and central areas. Highways and city streets are still covered in ice and snow, making travel dangerous.
Snow continues to fall in central and eastern Oklahoma, with areas east of Tulsa receiving up to 5-6 inches. In the Oklahoma City metro, snowfall totals range from a dusting to over an inch in some spots.
By 8 p.m., the snow is expected to be east of I-35, with lingering flurries possible. By 10 p.m., the system should exit Oklahoma completely.
Oil prices end higher after drone attack on Russian pipeline
Oil futures were lifted Tuesday, ending with gains after...
Oil futures were lifted Tuesday, ending with gains after a drone attack by Ukraine on a pipeline carrying crude from Kazakhstan across southern Russia curtailed flows.
At the same time, preliminary talks between Russia and the U.S. aimed at ending the war in Ukraine capped upside due to the potential for negotiations to result in the easing of sanctions on Russia’s energy sector.
West Texas Intermediate crude for March delivery rose $1.11, or 1.6%, to finish at $71.85 a barrel on the New York Mercantile Exchange. WTI futures didn’t close Monday due to the Presidents Day holiday in the U.S.
April Brent crude , the global benchmark, settled with a gain of 62 cents, or 0.8%, at $75.84 a barrel on ICE Futures Europe.
Back on Nymex, March gasoline fell 0.2% to $2.087 a gallon, while March heating oildeclined 0.9% to $2.441 a gallon.
March natural gas jumped 7.6% to finish at $4.007 per million British thermal units.
