After a Record-Setting Year, Devon Energy Is Taking Its Foot Off the Gas in 2024
Devon Energy (NYSE: DVN) boosted its crude oil production by 8% in 2023 to a record level for the company. Its high-margin output helped fuel strong free cash flow, and the oil company returned the bulk of that money to shareholders via a gusher of dividends and share repurchases.
Devon doesn't expect to set another production record in 2024, though. Instead, it plans to trim its capital spending, which will impact its production. However, that strategy positions it to produce even more free cash in 2024 if oil prices cooperate, potentially giving it more money to return to investors.
On Tuesday, Devon Energy reported its fourth-quarter and full-year results. The oil company produced 662,000 barrels of oil equivalent per day (BOE/d) during the fourth quarter, including 317,000 barrels of oil per day. That exceeded the high end of its guidance range. Meanwhile, total production for the year averaged 658,000 BOE/d (up 8% from 2022), while crude oil output averaged a record-setting 320,000 barrels per day. The oil and natural gas company benefited from two acquisitions that closed in 2022 (Validus Energy and RimRock Oil & Gas), as well as solid organic production growth fueled by its Delaware Basin position.
Source Fool.com
