Devon Energy Reports 2016 Q3
Devon Energy resumes Eagle Ford completion activity during third quarter 2016.
Related: Eagle Ford Brings Highest Margins
Devon Energy reported third quarter results earlier this month, highlighting outstanding performance for their operations and financial picture. The company’s development programs generated the best quarterly drill-bit results in Devon’s 45 year history.
Eagle Ford Operations
The company’s Eagle Ford operations has a net production of 61,000 Boe per day in the third quarter, with liquids accounting for 77% of Eagle Ford volumes. Completion activity in the Eagle Ford resumed in Q3 and 7 new wells were tied-in, with 30-day rates averaging a quarterly record of 2,700 Boe per day per well. Devon’s Eagle Ford operations continued to achieve significant cost savings during the quarter. LOE totaled $27 million in Q3, an improvement of >50% compared to peak costs in 2015.
“We’re real pleased with where we are in the Eagle Ford. And if you go back and look at the pace of our activity, it’s greatly slowed down in 2016 versus 2014 and early 2015. In fact, we were bringing on about 70 to 75 wells per quarter in that timeframe. In Q1 of this year, we were down to 22 wells brought on in the quarter. Second quarter there was only five, third quarter was only five. So we’ve seen the rate drop off there, but it is now stabilized, and we have four frac crews in the field that are lowering our DUC inventory down.”
Other Q2 highlights include:
- Decreased lease operating expenses 37 percent from peak rates
- Expected cost savings to reach $1 billion in 2016
- Completed $3.2 billion asset divestiture program
- Repurchased $1.2 billion of debt
- Raising Meramec and Woodford type curves
- Increased STACK production 38 percent year over year
- Accelerating Delaware Basin rig activity
- Wolfcamp drilling to ramp up in 2017
- Jackfish complex production exceeds nameplate capacity
- Total production averaged 577,000 oil-equivalent barrels (Boe) per day