Devon Energy

American energy company
Devon Energy Corporation
The Devon Energy Center in Oklahoma City, Oklahoma, the headquarters of Devon Energy.
Company typePublic company
Traded as
NYSE: DVN
S&P 500 component
IndustryPetroleum industry
Founded1971; 53 years ago (1971)
FounderJohn Nichols
J. Larry Nichols
HeadquartersDevon Energy Center,
Oklahoma City, Oklahoma
,
United States
Key people
Rick Muncrief, CEO & President
Jeffrey L. Ritenour, CFO
ProductsPetroleum
Natural gas
Natural gas liquids
Production output
658 thousand barrels of oil equivalent (4,030,000 GJ) per day (2023)
RevenueDecrease $15.258 billion (2023)
Decrease $3.747 billion (2023)
Total assetsIncrease $24.490 billion (2023)
Total equityIncrease $12.061 billion (2023)
Number of employees
1,900 (2023)
Websitewww.devonenergy.com
Footnotes / references
[1]

Devon Energy Corporation is a company engaged in hydrocarbon exploration in the United States. It is organized in Delaware and its corporate operative headquarters are in the 50-story Devon Energy Center in Oklahoma City, Oklahoma. Its primary operations are in the Barnett Shale STACK formation in Oklahoma, Delaware Basin, Eagle Ford Group, and the Rocky Mountains.[1]

In 2023, the company was ranked 216th on the Fortune 500[2] and 445th on the Forbes Global 2000.[3]

As of December 31, 2023, the company had proved reserves of 1,817 million barrels of oil equivalent (1.112×1010 GJ), of which 43% was petroleum, 28% was natural gas liquids, and 29% was natural gas.[1]

History

Devon was founded in 1971 by John Nichols (1914-2008) and his son, J. Larry Nichols.[4] In 1988, the company became a public company via an initial public offering.[4]

In October 2012, the company completed construction of its current headquarters, the 50-story Devon Energy Center in Oklahoma City, Oklahoma and closed its office in the Allen Center in Downtown Houston.[5]

In August 2015, Dave Hager was named president and chief executive officer of the company.[6]

In February 2016, Devon announced plans to lay off 1,000 employees, including 700 in Oklahoma City, and cut its dividend as part of a cost-cutting effort due to low prices of its products.[7][8]

In November 2019, a blowout at a natural gas well prompted authorities to seal off thousands of acres of land near the Eagle Ford Shale towns of Yorktown and Nordheim. Crews were able to install a capping stack on the well to reduce natural gas flowing from the well.[9]

Acquisitions

# Year Company Price Description of Assets Ref(s).
1 February 1992 Hondo Oil and Gas $122 million Oil and gas reserves and seven natural gas processing plants [10]
2 January 1996 Kerr-McGee $250 million North American onshore oil and gas properties; 370,000 net acres of undeveloped drilling rights [11]
3 July 1998 Northstar Energy $750 million Oil and gas properties in Canada [12]
4 August 1999 PennzEnergy $2.2 billion Oil and gas properties in the Gulf of Mexico [13]
5 May 2000 Santa Fe Snyder $3.35 billion Oil and gas properties in the Permian Basin, Rocky Mountains, and the Gulf of Mexico [14][15]
6 September 2001 Anderson Exploration $4.6 billion Oil and gas properties in Canada [16]
7 August 2002 Mitchell Energy $3.1 billion Oil and gas properties in the Barnett Shale of Texas [17]
8 April 2003 Ocean Energy $5.3 billion Deepwater sites in the Gulf of Mexico [18]
9 May 2006 Chief Oil and Gas $2.2 billion Barnett Shale leaseholds [19]
10 February 2014 GeoSouthern Energy $6.1 billion Eagle Ford assets [20]
11 October 2014 Crosstex Energy Merger of midstream assets to form EnLink Midstream, LLC [21]
12 December 2015 Felix Energy $2.5 billion Oil and gas properties in the Powder River Basin and Anadarko Basin [22]
13 January 2021 WPX Energy $2.56 billion Oil and gas properties in the Williston Basin and the Permian Basin [23]
14 July 2022 RimRock Oil and Gas $865 million Williston Basin assets [24]
15 September 2022 Validus Energy $1.8 billion Eagle Ford assets [25]

Divestitures

# Year Buyer Price Description of Assets Ref(s).
1 March 2010 BP $7 billion Assets in Brazil, Azerbaijan, and the Gulf of Mexico [26]
2 April 2014 Canadian Natural Resources C$3.125 billion Conventional assets in Canada [27]
3 June 2014 Linn Energy $2.3 billion 900,000 net acres in the Rockies, Mid-Continent, east Texas, north Louisiana, and south Texas [28][29]
4 July 2017 Penn Virginia $340 million Lavaca County assets in the Eagle Ford [30][31]
5 June 2019 Canadian Natural Resources C$3.8 billion Assets in Canada [32][33]

Political activity

Devon contributed over $1 million in each of the last 3 U.S. election cycles, almost entirely to organizations and individuals affiliated with the Republican Party.[34] In 2016, the company contributed $750,000 to the Senate Leadership Fund, whose goal is to protect the Republican majority in the United States Senate. It also gave $500,000 to the Congressional Leadership Fund, whose goal is to protect the Republican majority in the United States House of Representatives.[35]

Devon and its lobbyists have been noted to have close ties to government officials. In 2014, an investigation by The New York Times uncovered that a three-page letter signed by Scott Pruitt, then the Attorney General of Oklahoma, to the United States Environmental Protection Agency advocating for a relaxing of laws related to hydraulic fracturing was actually written by lobbyists for Devon Energy and not by Pruitt.[36]

References

  1. ^ a b c "Devon Energy Corporation 2023 Form 10-K Annual Report". U.S. Securities and Exchange Commission. February 28, 2024.
  2. ^ "Fortune 500: Devon Energy". Fortune.
  3. ^ "Forbes Global 2000". Forbes.
  4. ^ a b Miller, Stephen (August 9, 2008). "Former Accountant Worked to Build Devon Energy Into Industry Giant". The Wall Street Journal.
  5. ^ Pulsinelli, Olivia (October 11, 2012). "Devon Energy cutting 1,000 jobs, slashing dividend". American City Business Journals.
  6. ^ "Devon Energy Completes Leadership Transition as Board of Directors Elects Dave Hager New President and CEO, Succeeding Retiring John Richels" (Press release). Business Wire. August 3, 2015.
  7. ^ Wilmoth, Adam (February 16, 2016). "Devon Energy to lay off 700 in Oklahoma City". The Oklahoman.
  8. ^ Baker, Max B. (February 17, 2016). "Devon Energy cutting 1,000 jobs, slashing dividend". Fort Worth Star Telegram.
  9. ^ Chapa, Sergio (November 12, 2019). "Devon Energy one step away from capping blowout in DeWitt County". Houston Chronicle.
  10. ^ "Hondo Oil Offer". The New York Times. Bloomberg News. February 29, 1992.
  11. ^ Vandewater, Bob (January 1, 1997). "Devon Obtains Kerr-McGee Oil, Gas Properties". The Oklahoman.
  12. ^ "Devon Energy to acquire Canada's Northstar". Oil & Gas Journal. July 6, 1998.
  13. ^ "Devon Energy and PennzEnergy Announce Completion of Merger" (Press release). U.S. Securities and Exchange Commission. August 17, 1999.
  14. ^ "Devon Energy and Santa Fe Snyder Complete Merger" (Press release). U.S. Securities and Exchange Commission. August 29, 2000.
  15. ^ "Devon Energy to acquire Santa Fe Snyder in $3.35 billion deal". Oil & Gas Journal. May 26, 2000.
  16. ^ "Devon Energy to Acquire Anderson Exploration and Become North America's Largest Independent Producer of Oil and Natural Gas" (Press release). U.S. Securities and Exchange Commission. September 4, 2001.
  17. ^ "Devon to buy Mitchell Energy for $3.1 billion, boosting gas reserves". Oil & Gas Journal. August 14, 2001.
  18. ^ Wilmoth, Adam (April 26, 2003). "Devon completes $5.3 billion merger with Ocean Energy; More than 98 percent approve companies' deal". The Oklahoman.
  19. ^ "Devon acquiring Barnett shale acreage from Chief". Oil & Gas Journal. May 8, 2006.
  20. ^ "Devon Energy Completes Acquisition of Eagle Ford Assets from GeoSouthern Energy" (Press release). Business Wire. February 28, 2014.
  21. ^ "Devon Energy and Crosstex Energy to Create New Midstream Business" (Press release). Business Wire. October 21, 2013.
  22. ^ "Devon Energy Sharpens Focus on Core Assets" (Press release). Business Wire. December 7, 2015.
  23. ^ "Devon Energy and WPX Energy Complete Merger of Equals Transaction" (Press release). GlobeNewswire. January 7, 2021.
  24. ^ "Devon Closes $865 Million Cash Acquisition of RimRock Oil and Gas". Hart Energy. July 21, 2022.
  25. ^ Casey, Simon (August 9, 2022). "Devon Inks $1.8 Billion Shale Deal to Expand in Eagle Ford". Bloomberg News.
  26. ^ "BP pays Devon Energy $7bn for Brazilian, Azeri, and Gulf of Mexico assets". The Daily Telegraph. Reuters. March 11, 2010.
  27. ^ "Devon Energy Completes Sale of Canadian Conventional Assets" (Press release). Business Wire. April 2, 2014.
  28. ^ "LINN Energy Announces $2.3 Billion Acquisition of Assets from Devon Energy" (Press release). GlobeNewswire. June 30, 2014.
  29. ^ Pramanick, Anannya (June 30, 2014). "Devon to sell oil and gas assets to Linn Energy for $2.3 bln". Reuters.
  30. ^ Hiller, Jennifer (July 31, 2017). "Penn Virginia buys Devon's Eagle Ford Shale acreage". Houston Chronicle.
  31. ^ "Devon Energy Announces $340 Million of Non-Core Asset Sales" (Press release). Business Wire. July 31, 2017.
  32. ^ "Devon Energy Completes Sale of Canadian Business" (Press release). GlobeNewswire. June 27, 2019.
  33. ^ "Devon Energy Announces Final Step to Complete Transformation to U.S. Oil Growth Company" (Press release). Business Wire. February 19, 2019.
  34. ^ "Devon Energy: Total Contributions by Party of Recipient". OpenSecrets.
  35. ^ "Devon Energy: Profile for 2016 Election Cycle". OpenSecrets.
  36. ^ Lipton, Eric (December 6, 2014). "Energy Firms in Secretive Alliance With Attorneys General". The New York Times.

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