Devon Energy to Cut 1,000 Jobs

Devon Energy Q4 2015
Devon Energy Q4 2015

Devon Energy released its fourth quarter earnings this week at the same time they announced new layoffs.

Related: Devon Energy Reports Exceptional Q4 for 2014

In a recent press release, Devon announced today announced core earnings of $319 million for the fourth quarter of 2015. The company also reported oil production averaged 278,000 barrels per day in the fourth quarter, a 16 percent increase compared to the fourth quarter of 2014.

Devon has 72,000 net acres located in DeWitt and Lavaca counties in the Eagle Ford and reports production averaging 111,000 barrels a day for full year 2015.

Devon also announced it would lay off 20 percent of its workforce, or 1,000 employees company wide.

Devon has begun its previously announced employee reductions and expects to complete the process at its Oklahoma City headquarters by midday Thursday. At field-level offices, the company expects to complete notifications Feb. 22.
  • Delivered oil production growth of 26 percent from year-ago quarter
  • Reduced field-level costs by nearly $400 million in 2015
  • Maintained significant financial flexibility with nearly $4 billion of liquidity
  • Decreased 2016 E&P capital spending outlook by 75 percent
  • Reduced operating and G&A expense outlook by $800 million annually
  • Adjusted quarterly dividend to improve cash flow by $320 million annually

Just one year ago Devon Energy announced it finished an “outstanding year” as it rebounded from a $20 million net loss in 2013 to end 2014 with net earnings of $1.6 billion. In 2016, Devon’s E&P capital investment is estimated to range from $900 million to $1.1 billion, a decrease of 75 percent from 2015.