Devon Energy

From Wikipedia, the free encyclopedia
Jump to navigation Jump to search
Devon Energy Corporation
Public company
Traded asNYSEDVN
S&P 500 Index component
IndustryPetroleum industry
Founded1971; 47 years ago (1971)
FounderJohn Nichols
J. Larry Nichols
HeadquartersDevon Energy Center
Oklahoma City, Oklahoma, United States
Key people
David A. Hager, CEO & President
Jeffrey L. Ritenour, CFO
ProductsPetroleum
Natural Gas
Natural Gas Liquids
Production output
541 thousand barrels of oil equivalent (3,310,000 GJ) per day
RevenueIncrease $13.949 billion (2017)
Increase $0.898 billion (2017)
Total assetsIncrease $30.241 billion (2017)
Total equityIncrease $14.104 billion (2017)
Number of employees
4,900, including 1,500 employed by EnLink (2017)
Websitewww.devonenergy.com
Footnotes / references
[1]

Devon Energy Corporation is an American independent natural gas, natural gas liquids, and petroleum exploration company focused on onshore exploration and production in North America. The company is headquartered in the 50-story Devon Energy Center, completed in 2012, in Oklahoma City, Oklahoma.

As of 2018, the company ranks 213th on the Fortune 500 list of the largest United States Corporations.[2]

Current operations[edit]

Reserves and production[1][edit]

Formation Proved Reserves as of December 31, 2016
(% of total)
2017 Production
(thousand barrels of oil equivalent)
Barnett Shale 44% 153
Delaware Basin 5% 56
Eagle Ford Group shale 4% 62
Heavy crude oil in Alberta, Canada 24% 131
Rockies 1% 17
STACK Formation in Oklahoma 19% 107
Other formations 3% 15
Total 100% 568

As of December 31, 2017, the company had 2.152 billion barrels of oil equivalent in total proved reserves.[1]

Devon is one of the largest energy producers in the Barnett Shale, where it controls 600,000 acres.

History[edit]

Devon was founded in 1971 by John Nichols and his son, J. Larry Nichols.[3]

In 1988, the company became a public company via an initial public offering.[3]

In August 2000, the company was added to the S&P 500 Index.[4]

In August 2008, co-founder John Nichols died.[3]

In March 2010, the company sold assets in Brazil, Azerbaijan, and the Gulf of Mexico to BP for $7 billion.[5]

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.[6]

In April 2014, the company sold its conventional assets in Canada to Canadian Natural Resources for C$3.125 billion.[7]

In August 2015, Dave Hager was named president and chief executive officer of the company.[8]

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.[9][10]

In 2017, the company sold its Lavaca County assets in the Eagle Ford.[11]

Acquisitions[edit]

# Year Company Price Description of Assets Ref(s).
1 1992 Hondo Oil and Gas $122 million Oil and gas reserves and seven natural gas processing plants [12]
2 1996 Kerr-McGee $250 million North American onshore oil and gas properties, 370,000 net acres of undeveloped drilling rights [13]
3 1998 Northstar Energy $750 million Oil and gas properties in Canada [14]
4 1999 PennzEnergy $2.2 billion Oil and gas properties in the Gulf Of Mexico [15]
5 2000 Santa Fe Snyder $2.35 billion [4]
6 2001 Anderson Exploration $4.6 billion Canadian properties [16]
7 2002 Mitchell Energy $3.5 billion Properties in the Barnett Shale of Texas [17]
8 2003 Ocean Energy $5.3 billion Deepwater sites in the Gulf of Mexico [18]
9 2006 Chief Oil and Gas $2.2 billion Barnett Shale leasehold [19]
10 2014 GeoSouthern Energy $6.1 billion Eagle Ford assets [20]
11 2014 Crosstex Energy Merger of midstream assets to form EnLink Midstream, LLC [21]
12 2015 Felix Energy $2.5 billion Assets in the Powder River Basin & Anadarko Basin [22]

Controversies[edit]

Environmental record[edit]

Shareholders have introduced several resolutions that would require the company to monitor its effect on climate change[23] and to disclose its lobbying activity against regulations to prevent climate change.[24]

In 2014, an investigation by The New York Times uncovered that a three-page letter from Oklahoma's Attorney General Scott Pruitt to the United States Environmental Protection Agency, bluntly accusing regulators of grossly overestimating the amount of air pollution caused by drilling of new natural gas wells, was actually written by an attorney for Devon. The investigation found that "attorneys general in at least a dozen states are working with energy companies and other corporate interests, which in turn are providing them with record amounts of money for their political campaigns, including at least $16 million this year."[25]

Political contributions[edit]

Devon is a major contributor to political campaigns and organizations, almost entirely to organizations and individuals affiliated with the Republican Party.[26]

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.[27]

References[edit]

  1. ^ a b c "Devon Energy Corporation 2017 Form 10-K Annual Report". U.S. Securities and Exchange Commission.
  2. ^ "Fortune 500 Companies 2018: Who Made the List". Fortune. Retrieved 2018-11-23.
  3. ^ a b c "Former Accountant Worked to Build Devon Energy Into Industry Giant". The Wall Street Journal. August 9, 2008.(subscription required)
  4. ^ a b "Devon Energy and Santa Fe Snyder Complete Merger" (Press release). PR Newswire. August 29, 2000.
  5. ^ "BP pays Devon Energy $7bn for Brazilian, Azeri, and Gulf of Mexico assets". The Daily Telegraph. Reuters. March 11, 2010.
  6. ^ Pulsinelli, Olivia (October 11, 2012). "Devon Energy cutting 1,000 jobs, slashing dividend". American City Business Journals.
  7. ^ "Devon Energy Completes Sale of Canadian Conventional Assets" (Press release). Business Wire. April 2, 2014.
  8. ^ "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.
  9. ^ Wilmoth, Adam (February 16, 2016). "Devon Energy to lay off 700 in Oklahoma City". The Oklahoman.
  10. ^ Baker, Max B. (February 17, 2016). "Devon Energy cutting 1,000 jobs, slashing dividend". Fort Worth Star Telegram.
  11. ^ "Devon Energy Announces $340 Million of Non-Core Asset Sales" (Press release). Business Wire. July 31, 2017.
  12. ^ "Hondo Oil Offer". The New York Times. February 29, 1992.
  13. ^ Vandewater, Bob (January 1, 1997). "Devon Obtains Kerr-McGee Oil, Gas Properties". The Oklahoman.
  14. ^ "Devon Energy and Northstar Energy to Combine: US$2 Billion Oil and Gas Company Would be Created" (Press release). PR Newswire. June 29, 1998.
  15. ^ "Devon Energy and PennzEnergy Announce Completion of Merger" (Press release). PR Newswire. August 17, 1999.
  16. ^ "Devon Energy to Acquire Anderson Exploration and Become North America's Largest Independent Producer of Oil and Natural Gas" (Press release). PR Newswire. September 4, 2001.
  17. ^ "Devon Energy Completes Acquisition of Mitchell Energy" (Press release). PR Newswire. January 24, 2002.
  18. ^ "Devon Energy and Ocean Energy Complete Merger; Creating Largest U.S. Independent Oil and Gas Producer" (Press release). PR Newswire. April 25, 2003.
  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. ^ Feder, Barnaby J. (February 27, 2004). "Funds Want Oil Companies To Report On Climate". The New York Times.(subscription required)
  24. ^ Bogoslaw, David (January 11, 2016). "Shareholders ask oil producers for climate lobbying disclosure". Corporate Secretary.
  25. ^ Lipton, Eric (December 6, 2014). "Energy Firms in Secretive Alliance With Attorneys General". The New York Times.(subscription required)
  26. ^ "Devon Energy: Total Contributions by Party of Recipient". Center for Responsive Politics.
  27. ^ "Devon Energy: Profile for 2016 Election Cycle". Center for Responsive Politics.

External links[edit]