Devon Energy’s 2Q16 production
For 2Q16, Devon Energy (DVN) reported total production of 644 Mboe (thousand barrels of oil equivalent) per day, which is within its 2Q16 production guidance range of 616–653 Mboe per day. Even though Devon Energy’s 2Q16 production met the guidance, it’s lower by ~4% when compared with 2Q15 production of 674.3 Mboe per day.
Devon Energy’s 2Q16 production is also lower sequentially by ~6% when compared with 1Q16.
Devon Energy’s 2Q16 crude oil production falls
For 2Q16, DVN reported crude oil production of 259 MBbls (thousand barrels) per day, natural gas liquids production of 131 MBbls per day, and natural gas production of 1,527 MMcf (million cubic feet) per day. When compared with 2Q15, Devon Energy’s crude oil production is down by ~4%, natural gas liquids production is down by ~2%, and natural gas production is down by ~6%.
Lower crude oil production in 2Q16 caused Devon Energy’s crude oil percentage of the production mix to fall from 44% in 1Q16 to ~40% in 2Q16. As per DVN’s 2Q16 operations report, crude oil is its highest margin product.
Devon Energy’s production guidance
Due to the earlier-than-expected completion of Devon Energy’s asset divestiture program, DVN has updated its 3Q16 and full-year 2016 production guidance for its retained, go-forward asset base. The most significant change to DVN’s previous guidance is its decision to retain select assets in the Midland Basin that were previously categorized as “noncore.”
For 3Q16, Devon Energy expects total production from its divested and retained asset base in a range of 560–590 Mboe per day, a midpoint decrease of ~15% when compared with 3Q15 production.
For 2016, Devon Energy expects total production from its divested and retained asset base in the range of 598–623 Mboe per day, a midpoint decrease of ~10% when compared with 2015 production.