**Devon Energy Again Raises 2024 Guidance, Sticking to Capital Expenditure Plan**
In a recent development, Devon Energy Corporation, a leading oil and gas producer in the United States, has once again upgraded its production guidance for the rest of 2024. This move follows the company’s impressive performance in the second quarter, where improved well performance and efficient operations contributed to better-than-expected production.
Devon’s total output from its assets in the Delaware, Eagle Ford, Anadarko, Williston, and Powder River basins reached a significant milestone of 707,000 barrels of oil-equivalent per day (boe/d) during the second quarter. This represents a nearly 7% year-over-year increase and more than a 6% rise from the first quarter of the year. Initially, the company had projected output to be between 670,000 and 690,000 boe/d.
The robust performance in the Delaware Basin was particularly noteworthy, where production surged to 461,000 boe/d, up from 420,000 boe/d in the prior-year quarter. Chief Executive Officer Rick Muncrief lauded the team’s efforts during the second quarter, describing the performance as “superb.” Moreover, Muncrief highlighted that the wells brought online this year are on track to be 10% more efficient than their 2023 counterparts.
These efficiency gains translated into lower capital expenditures during the second quarter. Despite the initial guidance of $915 to $985 million, Devon managed to capex at $890 million—a significant reduction from nearly $1.02 billion in the same period last year.
Looking ahead to the third quarter, the company expects capital spending to range between $870 and $930 million. When asked about potential cost-cutting measures given well efficiencies and potentially softer demand and broader economic conditions, both Muncrief and Chief Operating Officer Clay Gaspar remained confident in maintaining their momentum. Gaspar noted that Devon is on the