A premier portfolio of assets with a deep inventory of opportunities.
Devon Energy explores for, develops and produces oil, natural gas and natural gas liquids in areas where the oil and gas industry has long been active onshore in the United States and Canada. Founded in 1971, we have a formidable portfolio of exploration and production assets and operations that provide stable, environmentally responsible production and a platform for future growth. Devon’s main objectives are to optimize returns and deliver capital-efficient cash-flow growth from our premier asset portfolio and deep inventory of opportunities. We seek to achieve this through our strategic priorities which include expanding high-margin production, employing capital discipline, simplifying our portfolio and maintaining significant financial strength. For more information on our progress, see our detailed quarterly updates.
Focus on the Delaware Basin and the STACK Play
As part of a focused development program, our drilling activity is concentrated in the Delaware Basin of southeast New Mexico and the STACK play in west-central Oklahoma. These two highly desirable plays are top-tier in North America and franchise assets for Devon, creating a platform for long-term growth. Through a strategy of developing large-scale, multi-zone projects, we are improving operational efficiency, reducing costs and boosting recovery rates. All of this is driving higher rates of return for Devon.
The Delaware Basin exposes Devon to world-class oil opportunities across 1.3 million net acres by formation. We are ramping up multi-zone projects focused on the oil-rich Bone Spring, Leonard Shale and Wolfcamp formations. Among our recent achievements in the Delaware Basin are faster drill times and higher well productivity. To expedite future drilling and realize our immense resource potential, we are using a new permitting process in conjunction with the U.S. Bureau of Land Management for our multi-zone development plans in the Delaware Basin.
Devon has the industry’s premier position in the STACK, with more than 600,000 net acres by formation in the heart of the play. We have generated strong production growth, continually lowering our cost structure and improving drilling efficiencies. Our full-field development in the STACK is accelerating, with multizone activity shifting to the oil window of the Meramec formation.
Our Rocky Mountain operations focus primarily on emerging oil opportunities in the Powder River basin. We are targeting the Turner, Parkman, Teapot and Niobrara formations, where we have expanded our drilling inventory, particularly in Converse County, Wyoming.
Cash-flow generating assets
In our top-tier cash flow-generating assets, Devon’s strategy is to efficiently manage base production, maintain a low cost structure, and redeploy cash flow mainly into our Delaware Basin and STACK growth opportunities.
In Alberta, Canada, Devon produces strong cash flow from our heavy oil operations in the Athabasca oil sands. We own a 100 percent working interest in the Jackfish complex, where we use the steam-assisted gravity drainage (SAGD) process to recover oil. In SAGD, heat from a steam-injection well liquefies the dense bitumen, allowing it to migrate to a production well located beneath. Devon uses only saline water to create steam in our SAGD operations. The mixture of bitumen and water is pumped to the surface, where the water is recovered and recycled.
Devon’s cold-flow heavy oil activities in the Bonnyville and Lloydminister areas of Alberta, use an extraction process called cold heavy oil production with sand (CHOPS). Gas that is entrained in the heavy oil solution is also produced.
Devon’s Eagle Ford operations are located in the economic core of the play in DeWitt County in south Texas, where light-oil wells are delivering excellent rates of return. We benefit from Eagle Ford’s low-cost access to premium Gulf Coast pricing for our production.
Since 2002, Devon has drilled more than 5,000 wells in the Barnett Shale of North Texas, one of the top-producing natural gas fields in North America. We are focused on enhancing existing production in our Barnett Shale wells through refracturing, artificial lift and line-pressure reduction projects, as well as divesting select properties in the field.