Fiscal 2016 capital program
In June 2016, Devon Energy raised its fiscal 2016 upstream capital program to $1.1 billion–$1.3 billion, an increase of $200 million from the previous guidance. Still, the program is ~69% lower than its 2015 upstream capital program of ~$3.9 billion.
4Q16 activity and capital program
Due to rising crude oil (USO) and natural gas (UNG) prices, Devon Energy (DVN) plans to accelerate drilling activity across its US resource plays. Devon Energy, which exited 3Q16 with five rigs in operation, planned to add five more rigs in 4Q16. This activity is expected to result in E&P (exploration and production) capital expenditure of $400 million–$425 million in 4Q16.
In 4Q16, Devon is expecting total capital expenditure of $470 million–$520 million. Devon’s total capital expenditure includes E&P capital expenditure, capitalized G&A (general and administration) expenses, capitalized interest, and other expenses.