Chart in Focus: DVN’s Debt Normalized to Its Quarterly Production

In 3Q16, Devon Energy (DVN) reported total debt of ~$214 per boe (barrel of oil equivalent) of production, ~12% higher compared to 3Q15. 

Sequentially, Devon Energy’s total debt normalized to quarterly production in 3Q16 was slightly lower than it was in 2Q16.

As seen in the chart above, Devon Energy’s total debt normalized to its quarterly production has been much higher in the last four quarters, mainly due to its falling production. In 2Q16, Devon Energy reported its highest total debt normalized to quarterly production of ~$217 per boe.

Other upstream companies Denbury Resources (DNR), Marathon Oil (MRO), and Diamondback Energy (FANG) have total debt normalized to quarterly productions of ~$525 per boe, ~$204 per boe, and ~$139 per boe, respectively. 

The SPDR S&P Oil & Gas Exploration & Production ETF (XOP) generally invests at least 80% of its total assets in oil and gas exploration companies.