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Devon Energy revises 2020 CAPEX downwards

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Oilfield Technology,

Based on current market conditions, Devon Energy has elected to further reduce its CAPEX by an additional US$300 million for the full-year 2020. The revised capital outlook of approximately US$1 billion represents a reduction of nearly 45% compared to the company’s original 2020 capital budget.

The US$300 million of incremental capital reductions will be driven by the deferral of activity in the Eagle Ford, improved capital efficiencies in the Delaware Basin and lower service-cost pricing attained across the company’s asset portfolio. With the revised capital plan, Devon now expects to fund its 2020 capital programme within operating cash flow at current strip pricing. Beyond the spending cuts announced, Devon is prepared to further reduce capital activity should commodity prices remain weak to protect its financial strength.

“Our top priority in this environment is to protect Devon’s financial strength and liquidity,” said Dave Hager, president and CEO. “Our decisive actions to date have allowed us to rapidly recalibrate drilling and completion activity to ensure we can fund all our 2020 capital requirements within cash flow. We will continue to assess market conditions and adjust activity levels as necessary to ensure the long-term viability of our business.”

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