8-KOther Events

DEVON ENERGY CORP/DE 8-K Report (May 24, 2004)

Filed May 24, 2004For Securities:DVN

Summary

This SEC filing from Devon Energy Corporation (DVN), filed on May 24, 2004, provides updated forward-looking estimates for the fiscal year 2004. The company is revising its original projections released in February 2004, with the updated figures reflecting the company's performance and outlook after the first quarter. These estimates cover key operational and financial metrics including production volumes, pricing assumptions, marketing and midstream revenues and expenses, operating costs, depreciation, depletion and amortization (DD&A), and interest expense. The filing details production estimates for oil, natural gas, and natural gas liquids (NGLs) across various geographic segments: United States Onshore, United States Offshore, Canada, and International. It also outlines expected price differentials relative to benchmarks like NYMEX for both oil and gas, highlighting the company's exposure to market price volatility. Significant capital expenditure plans are also presented, broken down by project type (proved reserves, lower risk/reward, higher risk/reward) and geographic region, indicating the company's investment strategy for the year.

Key Highlights

  • 1Devon Energy is updating its 2004 forward-looking financial and operational estimates after Q1 2004.
  • 2Total estimated oil, gas, and NGL production for 2004 is projected between 251 and 256 Million barrels of oil equivalent (MMBoe).
  • 3Oil production is estimated between 78 and 80 Million barrels (MMBbls), with 32 MMBbls from International operations.
  • 4Gas production is estimated between 900 and 918 Billion cubic feet (Bcf), with 285-290 Bcf from Canada.
  • 5Marketing and midstream revenues are projected between $1.44 billion and $1.55 billion, with expenses between $1.19 billion and $1.28 billion.
  • 6Total estimated capital expenditures for drilling and development are between $2.14 billion and $2.54 billion.
  • 7The company anticipates its capital resources will be adequate to fund planned expenditures, with approximately $1.3 billion available under its Senior Credit Facility as of April 30, 2004.

Frequently Asked Questions

This 8-K filing serves to update Devon Energy's previously issued forward-looking estimates for the fiscal year 2004. It provides revised projections for production volumes, pricing, revenues, expenses, and capital expenditures based on the company's performance and outlook after the first quarter of 2004.

Devon Energy estimates its total oil, gas, and NGL production for 2004 will be between 251 and 256 MMBoe. Specifically, oil production is expected to be between 78 and 80 MMBbls, natural gas production between 900 and 918 Bcf, and NGL production approximately 23 MMBbls.

The filing indicates that a portion of Devon Energy's oil and natural gas production has prices that are not fixed, exposing the company to market price volatility. The report details expected price differentials relative to benchmarks like NYMEX for both oil and gas in different regions, highlighting the potential impact of fluctuating commodity prices on revenue.

Devon Energy plans to spend between $2.14 billion and $2.54 billion on drilling and development activities for 2004. These expenditures are categorized into projects related to proved reserves, lower risk/reward projects, and higher risk/reward projects, distributed across its operational geographies.