X
<

A Deep Dive into Devon Energy’s Operational Performance

PART:
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
Part 6
A Deep Dive into Devon Energy’s Operational Performance PART 6 OF 15

Chart in Focus: Devon Energy’s Realized Price Effectiveness

Devon Energy’s realized price effectiveness

Realized price effectiveness tells us that Devon Energy’s (DVN) realized price for 1Q17, without hedging benefit, was ~68% above its production cash cost and ~13% above its total production cost for the same quarter.

Sequentially, DVN’s 1Q17 realized price effectiveness in terms of cash cost increased from ~26% in 4Q16 to ~68% in 1Q17. This higher realized price effectiveness in terms of cash cost can be attributed to the ~10% sequential increase in DVN’s 1Q17 total realized price.

Chart in Focus: Devon Energy’s Realized Price Effectiveness

Interested in DVN? Don't miss the next report.

Receive e-mail alerts for new research on DVN

Success! You are now receiving e-mail alerts for new research. A temporary password for your new Market Realist account has been sent to your e-mail address.

Success! has been added to your Ticker Alerts.

Success! has been added to your Ticker Alerts. Subscriptions can be managed in your user profile.

Realized price effectiveness

Realized price effectiveness is defined as the excess or shortfall of the realized price to the cost item, scaled by cost item.

In 1Q17, DVN’s peer Diamondback Energy (FANG) reported realized price effectiveness in terms of production cash cost of ~350%. Diamondback Energy operates in the Permian Basin.

Other definitions

Realized price = Oil and gas revenue scaled by total production

Production cash cost = LOE (lease operating expenses) + production and ad valorem taxes + transportation expenses + G&A (general and administration) cash expenses + interest cash expenses

Total production cost = Cash cost + DD&A (depletion, depreciation and amortization)

X

Please select a profession that best describes you: