8-KOther Events

DEVON ENERGY CORP/DE 8-K Report, Corporate Update (Feb 15, 2012)

Filed February 15, 2012For Securities:DVN

Summary

Devon Energy Corporation's Form 8-K filing on February 15, 2012, provides forward-looking estimates and discusses key operational and financial data for 2012. The report details expected production volumes, commodity prices relative to benchmarks, and strategies for managing commodity price risk through various derivative instruments for both oil and natural gas. Investors can gain insight into the company's projected operational performance and its approach to mitigating market volatility.

Key Highlights

  • 1Projected total oil, gas, and NGL production for 2012 is estimated between 253 to 257 MMBoe.
  • 2U.S. operations are expected to contribute 187 MMBoe, while Canadian operations are projected at 68 MMBoe.
  • 3Estimated oil prices are expected to range from 74% to 84% of NYMEX prices, with natural gas prices at 82% to 92% of NYMEX.
  • 4Devon Energy has substantial oil derivative positions, including price swaps, collars, and sold call options, to manage 2012 production prices.
  • 5The company utilizes various natural gas derivative strategies, such as swaps, collars, and sold call options, and also employs basis swaps for specific pipeline regions.
  • 6Total capital expenditures for 2012 are projected to be between $6.23 billion and $6.83 billion, with a significant portion allocated to oil and gas development and exploration.
  • 7A quarterly per share dividend rate of $0.20 is maintained.

Frequently Asked Questions

Devon Energy projects its combined oil, gas, and NGL production for 2012 to be between 253 to 257 Million barrels of oil equivalent (MMBoe).

The company employs various derivative instruments, including price swaps, price collars, and sold call options for both oil and natural gas. Additionally, basis swaps are used to manage price differentials in specific pipeline regions.

Devon Energy's total capital expenditures for 2012 are estimated to range from $6.23 billion to $6.83 billion, with the majority directed towards oil and gas exploration and development.

The company anticipates maintaining a quarterly per share dividend rate of $0.20.