Devon Energy’s production guidance for 2Q17
For 2Q17, Devon Energy (DVN) expects a total production of 519.0–540.0 Mboepd (thousand barrels of oil equivalent per day). On a year-over-year basis, the midpoint of its 2Q17 production guidance range is ~18.0% lower than its 2Q16 production of 644.0 Mboepd. Sequentially, its 2Q17 production guidance is ~6.0% lower than its 1Q17 production of 563.0 Mboepd.
Why Devon Energy’s crude oil production could fall in 2Q17
For 2Q17, Devon Energy expects crude oil production of 230.0 Mboepd–240.0 Mboepd, which is lower than its 1Q17 crude oil production of 261.0 Mboepd. The company has attributed the lower crude oil production guidance to the planned turnaround activity at its Jackfish 3 facility as well as to the “timing of completions and new well tie-ins within the U.S.”
Devon Energy’s 1Q17 production
For 1Q17, Devon Energy reported total production (USO) (UNG) of 563.0 Mboepd, which is ~3.0% higher than the midpoint of its 1Q17 production guidance of 535.0 Mboepd–555.0 Mboepd. Its 1Q17 production is ~18.0% lower than its 1Q16 production of 685.0 Mboepd. However, on a sequential basis, its 1Q17 production is ~5.0% higher than 4Q16. According to Devon Energy’s 1Q17 operations report, its 1Q17 production was primarily driven by its US core assets where it reported production of ~422.0 MBoepd, which is ~12.0% lower than 1Q16.
DVN’s peer ConocoPhillips (COP) reported a total production of 1.584 MMBoepd (million barrels of oil equivalent per day) in 1Q17, which ~0.40% higher than its 1Q16 production of 1.578 MMboepd.
Devon Energy’s 2017 production guidance
For fiscal 2017, DVN expects a total production volume of 539.0 Mboepd–561.0 Mboepd. It expects crude oil (USO) and bitumen production of 249.0 Mboepd–258.0 Mboepd for the same period.