morning. listening my and It and hope that sincerest everyone Thank Scott, good health. you, today good safe staying is is in
decline As extraordinary to related COVID-XX you call, time oil earnings with all an unprecedented know, rapid pricing. demand shock resulting historic since it's in and markets been in our last a an the energy in
has period range volatility impact the economy I firm global no extremely that am industry, one accurately to entered pandemic of While of or this or this have an timing Devon the could with foundation. predicted our wide confident
to capabilities well is our financial these strong portfolio, leverage, of Adding and talented to positioned top-tier liquidity, advantages leave operating navigate high-graded here team Devon. competitive times. challenging Our at through these low us effectively combination
this COVID-XX. all hard this Their work outstanding of dislocation to employees and take to want another of moment and due period to executing quarter business protecting time safely recognize I our And during value led dedication to of plan our unprecedented during focus results. a on for their operational shareholder
of for our initiatives The capital below than flow All-in-all, our by first expenditures plan, for cost free and previous production midpoint quarter are generated coming to XX% and want guidance, very higher the to at cash thank expectations, quarter. highlighted trend ahead oil savings high results in we a their we excellence. continue in commitment I the employees our to executing were level,
key into of possible. we'll remarks where rest times. of of our The provide that over call cover the your questions through as business answer handful prepared turn approach insight my to Then Q&A a messages managing to turbulent today will the I'll as these
key financial extended to message I an we is first want withstand convey The strength have the today to that downturn.
our three can of you of facility billion billion see $X.X As of of slide had of Devon quarter. earnings cash $X credit of capacity on presentation, $X.X undrawn consisting the the end at our billion on liquidity, and
which is contains cash XX%. This addition liquidity the material mature unsecured below by XXXX. facility, financial debt-to-capitalization not a enhanced senior balances, In further Devon's facility our substantial credit until one to covenant, of end ratio is our only
be lastly, Shale. us, XXXX ratio committed end, the is recently are facility a fully over was And liquidity to amended remainder the to semi-annual than Barnett agreement and XX%. to is less redeterminations. event additive this subject of key And quarter sell The to not will our at we our that
$XXX closing of to Shale $XXX sell our million. agreed up up payments and in $XXX of the Barnett terms, assets revised million to for million to of total at proceeds, we Under consisting cash contingent
margin by year-end. of $XXX and safety are close end Devon's financial we April, which on low until XXXX. obligations no the in adding agreement the track million to our deposit, of outstanding This is received average transaction with this to includes debt we Also
see debt you This side of On with three, our time price of that right-hand is comes first of group, competitive near-term extreme slide in X tranche maturity debt until runway within of commodity our a nearly due. the advantage this years can critical our is peer volatility. period best-in-class
key want living second The message that everyone cash to committed is understand is within flow. I to Devon
align to taken strength. in financial that, decisive priority costs. have protect actions top operating revenue Our with this to conditions we capital our and by industry to aggressively environment and do our our And business protect reducing is
for at Looking production $XX of our revenue, program average barrel. XX% XXXX the per specifically floor at Devon's disciplined of WTI of has an protected expected approximately remainder oil hedging price
We steps the our first taken prices half barrel. are volumes expected protect have for half nearly at XXXX of $XX oil to of per also that about
to for the widening the the vast for of pricing the protect to remainder volumes Basin risk Additionally, further our differentials, basis year. in-basin utilized Ford Eagle regional of Delaware and against in lock oil we've swaps of majority
value of go-forward position roughly our $XXX contributor a XXXX. market in estimated the our aggregate, In derivative flow million, to substantial is cash
changes of levels. the we are capital to related our On date have to activity most significant made cost the front, the reduction
original revised have and limited in budget. plan, spending billion our we capital outlook XXXX $X a decline our XX% compared of With to our
business and cash on preserve continue operate Delaware flow Ford, slide we continuity necessary plays market and to Eagle effectively suspending to conditions the capital to the Powder invest generate Basin the River improve. operational outlined seven, activity until Anadarko, while in our to all As in elected have
to I have tremendous is plans. pricing this environment, given do for our of While believe current want we the the depth with go-forward the capital we flexibility prudent program that regarding this uncertainty duration highlight a downturn, and
have contract minimal commitments. long-term We
expiration short-cycle projects, significant have onshore and we no Our opportunity issues. of set lease consists only
characteristics, these With as capable are adjust we market swiftly and willing to levels fully conditions evolve. activity
flow capital are cost cash million approximately we targeting end. In reductions, addition cash improving also the $XXX by in to our year reduction by
and operating plan reduction to reduction continue management expected team cash level to executive of cost year-over-year. in our range This compensation actions for XX% overhead. expenses organization's field This optimize to includes the includes an a lower
savings, want have are our we to while expect clear I structure, a reinforce are I on done. initiatives of cost trim and to There provide future on in that calls. million not these of further that sight underway updates cost this we will line initiatives several $XXX
see slide To the flow as impact you XX, summarize decisive made on can cash year-to-date. have swift we and changes
fully cash Our WTI of of intense have the while net the deck focus and at program for hedging dividend price on to positioned us $XX costs remainder requirements generating our a and year. capital inflows fund
completion topic With manage The to we want constrained -- storage commodity dynamically levels our to levels accelerate as conditions, these plan price first backdrop, to challenging being I production by next challenged the our and become on not touch production XX% to are course is pricing reduce To approximately activity mindful of weakens. markets. valuable weak into combat today's to first quarter. is our current these regional action
position those into online the bring online will wells backlog raise we with tough have these nearly the And that deliver not wells markets. flush limit we company-wide do to DUC decision recently, that to we we of restricted production brought This wells full us XXX year-end. a for at ensure
to the in various cost variable revenue. to exceeds detailed the analysis price the our Next, operate a decision shut wells curtail operating identify at to is well have or from portfolio. performed The with wells production to its levels uneconomic profile, made base across when expected existing our teams production regards generally
expect our other as influence we basis. factors involuntary the risks plan decision quarter, decision leasehold curtailment for second proceed primary roughly barrels mechanical day While the third-party portfolio. oil month-to-month decisions may We across considerations, as on XX,XXX point, But to per and this of well, constraints. such to a defer
Of deferral this is of the and in amount, back online by bringing second wells driven only curtailments The the higher flow rate of of related a to few the the quarter. vast shut-in of XX% production. majority wells were new restricted
team shut-in The minimal the the has reflects and good assets of done place our quality volumes. our to activity work
exposure West have Canadian we exceptionally prices. hubs know have light, recently many Bitumen the or Texas experienced pricing that weak well Clearbrook, North pricing Slope, First, other to no
May regional anticipated well team production and together, Powder decisive in early our would face variable resilient the key Ford conditions. in lock and plays revenue pricing, Taking pricing Eagle these like correctly marketing our costs in Basin, Furthermore, action we there took the be that are and challenging weak to River be our in to factors June. these at operations positioned of above all and
set in stake I in bold monetize emphasize our and to These next have we asset the capitalize quality want Enlink recovery the ability when strength, is position the ahead, financial improved moves shale heavy advantage decision Looking controlling have helped competitive marginal the foundation dramatically on our curve. operate Midstream position today. from the key oil Barnett normalize. our conditions to exit cost message for The and Canada, sell on to the industry our position
best large in Devon's the go-forward positions best of parts stack the plays the consists pay acreage now portfolio contiguous US. only of and
has excellence record supported by established track consistent gains. Importantly, efficiency of within a this portfolio, operational that Devon capital is
great our A is is our in invested XXXX. on the slide program, XX, this highlights of capital Wolfcamp which efficiency example majority of where
completion $XXX per in improved to Our foot. drilled costs XX% and quarter first the by
To everyone underpinned Basin. improvements in result the designs. optimized and peers Wolfcamp improving to I These success, compare Delaware our better encourage completion by are appreciate the steadily to times cycle top-tier this
we to efficiencies We even into remainder preserve efficiency limit gains have and throughout to these XXXX. These for investment. of continuity us XXXX allowed capital continue as the expectations have operational
no good quality production assuming go-forward beyond the requirements average and expect As our in that part compared are profile the you nearly a position our the testament asset showcases slide in of to see XXXX, is to capital This our XX, XXXX. the flat driving production middle we curtailment efficiencies a the lower. are to stabilize production year, be to and can we on of resiliency base oil of
improvement year estimating of will to we billion, $X.XX investment a that production required the is our Currently, are a capital, amount from keep be XX% flat which around maintenance ago.
we savings operations shower based improve to declines, projecting in as additional $X.X XXXX. expect capital as by are we maintenance around billion ongoing well improvement our With from
at drawdown not this we declines capital maintenance quickly oil of extra we maintain market into this Importantly, a able to efficiently to DUC production which positioned levels. should are invest to XXXX be are and by incentivize in does capital, stem capital maintenance XXXX, expect our conditions around rate year-end. we and to wells With inventory, us improvement maintenance low our assume XXX and
that get the maximize to present Devon today ultimately a message extreme caught key for long-term. the from has will be final bear experience challenging is we not right up my today's But over it value is model business our with oversupply Admittedly, that conditions. today's for absorbed. shareholders in know market And to
high have by acceptable be strategy to normalize, not and When belief investors. on creating is to industry reinvest successful. historic value is all cash that to prioritizing growth flow, a be of production it approach will It NAV leverage viable strong our industry’s conditions not count curtailments OPEC or
To returns additional cycle, the shareholders more balanced the that operating next that upfront a of convinced for win is cash required. in phase energy we prioritizes are model
model, of the must for to and E&P capital of to flow corporate to ability liquidity financially-driven compete cash for not more shareholders moderate scale dividends yields funding. levels structure, markets deliver successful of markets, maintain company broader With form capital leaner expansion a on pricing, operational windfall forward this dependent extremely supplemental sectors leverage directly you low the cash or time in must deliver investment going distributions and in margin or returning the through and be a that investment have in with other prioritize free
margin will philosophy This have of is Devon in this greater movement. result model shift new leader much industry This safety, is to in not which operating believe needed. been we in we and an critical balanced all a
on cash of such very and deployed dividends, reduction, that companies have E&P as the industry return model. normalize, nearly business XX% we is when debt XXXX, conditions buybacks. progressive will to actions, of capabilities deliver our the towards Devon have cash shareholder-friendly Since one And few inflows this
that, with over to I'll the And back for turn call Q&A. Scott
