OKLAHOMA CITY--(BUSINESS WIRE)--
Devon Energy Corp. (NYSE: DVN) today reported that additional facilities
work at its Jackfish 1 heavy oil project in Alberta, Canada, is now
complete and full-scale operations have been restored. The work at
Jackfish 1 was related to minor facility repairs the company identified
during recent turnaround startup activities. Devon elected to perform
the incremental maintenance work that temporarily curtailed production
as opposed to deferring the repairs to a future date.
Devon estimates that its third-quarter 2018 net production in Canada
will be approximately 104,000 barrels of oil equivalent (Boe) per day as
a result of the maintenance at Jackfish 1. The temporary curtailment of
volumes at Jackfish represents less than 1 percent of total expected
company-wide production in 2018. Production at the company’s Jackfish 2
and Jackfish 3 facilities were at nameplate capacity for the entire
third quarter.
With the Jackfish complex resuming full-scale operations, the company
expects fourth quarter net production in Canada, after the impact of
higher sliding-scale royalties, to increase to an average of 115,000 to
120,000 Boe per day. This operational momentum will carry into 2019,
with Canadian net production estimated to exit the current year in
excess of 120,000 Boe per day.
Third-Quarter U.S. Production Exceeds Guidance; Capital Spending
Below Expectations
Devon estimates that net production in the U.S. will be approximately
418,000 Boe per day during the third quarter of 2018. During the
quarter, Devon monetized minor, non-core assets with an associated
production impact of approximately 2,000 Boe per day. This production
result exceeds the company’s third-quarter guidance range, adjusted for
the non-core asset sales, of 398,000 to 417,000 Boe per day.
A key driver of the third-quarter production outperformance was higher
natural gas liquids yields and recoveries, which benefit from access to
premium pricing in the Mont Belvieu market. Devon’s U.S. oil production
in the third quarter was in line with the midpoint of guidance.
The company effectively controlled capital costs during the third
quarter. Devon’s upstream capital spending was $523 million in the
quarter, which was $52 million, or 9 percent below the company’s
midpoint guidance.
About Devon Energy
Devon Energy is a leading independent energy company engaged in finding
and producing oil and natural gas. Based in Oklahoma City and included
in the S&P 500, Devon operates in several of the most prolific oil and
natural gas plays in the U.S. and Canada with an emphasis on achieving
strong returns and capital-efficient, cash-flow growth. For more
information, please visit www.devonenergy.com.
Forward-Looking Statements
This press release contains forward-looking statements within the
meaning of the federal securities laws. Such statements are subject to a
number of assumptions, risks and uncertainties, many of which are beyond
the control of the company. These risks include, but are not limited to:
any additional maintenance work at the Jackfish facilities, midstream
constraints in Canada and other issues that may arise and adversely
impact the company’s Canadian operations; and the other risks identified
in the company’s Annual Report on Form 10-K and its other filings with
the Securities and Exchange Commission. In addition, this press release
includes preliminary results for the third quarter of 2018 that are not
a comprehensive statement of our financial and operational results for
the quarter and are provided prior to completion of typical quarterly
reviews and procedures and therefore may be subject to adjustment.
Investors are cautioned that any such statements are not guarantees of
future performance and that actual results or developments may differ
materially from those projected in the forward-looking statements. The
forward-looking statements in this press release are made as of the date
hereof, and the company does not undertake any obligation to update the
forward-looking statements as a result of new information, future events
or otherwise.
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Devon Energy Corp.
Investor Contacts:
Scott Coody,
405-552-4735
Chris Carr, 405-228-2496
Media Contact:
John
Porretto, 405-228-7506
Source: Devon Energy Corporation