Devon Energy (NYSE:DVN) reported a strong second quarter on July 31, 2023, generating $1.7 billion in adjusted free cash flow, outpacing its production and capital-spending guidance. The company averaged oil production of 503,000 barrels per day, 1.6% above the midpoint of its projections, contributing to total production of 1.36 million barrels of oil equivalent per day.
During this quarter, total operating costs were $8.23 per barrel of oil equivalent, 2% better than anticipated, and capital expenditures reached $1.3 billion, which is 2.4% below expectations. Devon has tightened its full-year 2026 oil production target to between 495,000 and 505,000 barrels per day and plans for total volumes of approximately 1.4 million barrels of oil equivalent per day with capital spending between $4.8 billion and $5 billion.
In addition, Devon identified over 350 integration synergies from its May 7 merger with Coterra, aiming for annual synergies of at least $1 billion by 2027. The company ended the quarter with $4 billion in liquidity, including $1 billion in cash, and returned more than $1 billion to shareholders through dividends and share repurchases.
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