Devon’s marketing and midstream business includes marketing the company’s U.S. and Canadian production. Construction and operation of pipelines, storage and treating facilities, compression and gas processing plants are also within the scope of marketing and midstream.
Marketing responsibilities not only include the sale of oil, gas and natural gas liquids (ethane, propane, butane and natural gasoline) but also related activities such as transportation, storage, processing and treating of hydrocarbons. Employees at the company’s headquarters in Oklahoma City perform these marketing functions for Devon’s domestic production, while employees in Calgary, Alberta, manage the marketing efforts for Devon’s Canadian production.
Devon’s net production totals approximately 2.5 billion cubic feet of natural gas, 150,000 barrels of oil and 110,000 barrels of natural gas liquids (NGLs) each day. In addition to marketing its own production, Devon often markets oil and gas on behalf of third parties. In total, the company sells in excess of 3 billion cubic feet of natural gas per day throughout North America, which represents approximately four percent of all gas consumption in Canada and the United States. Devon’s gas customers include pipeline companies, utilities, gas marketing firms, industrial users and local distribution companies.
The company’s domestic midstream operations are the largest among U.S. independent producers, encompassing approximately 6,500 miles of pipelines, 300 compressor units, and 6 gas processing plants with net inlet capacity approaching 1.4 billion cubic feet per day, including expansions due to come online in mid-2013. Of these 6 plants, Devon’s Bridgeport plant is one of the largest plants in the U.S. with more than 63,000 barrels per day of NGL production capacity (after its expansion). In Canada, Devon owns an interest in another 56 plants with a net inlet capacity of 1.2 billion cubic feet per day. The majority of these facilities are concentrated near Devon’s core operating areas in the U.S. and western Canada, enabling the company to gather and process its gas.