DVN - Earnings call transcript Q2 2020 | Devon Energy Corporation

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Operator

Due to an audio issue on the webcast, this replay only includes the Q&A portion of the conference call. Please visit Devon’s website for a transcript of the prepared remarks from the Devon management team.

Unidentified Analyst

Hi, good morning, guys. I don’t know if you can hear me, because the voice is breaking up pretty bad on my home.

I think two questions. tender And us since that mechanism maturity? that Thank going be from using the the special tell are billion for the Is you just stock the to you. valuation buyback, given is that dividend the reduction you’re debt secondly, on you is? why a can what’s buy and of the public $X.X we it going is currently One, market? to that money or have not how no cheap

Jeff Ritenour

Hi. Yes, this is Jeff.

that debt market So do expectation highlighted, relates conditions. going probably to as dependent to tender. and it repurchase, the the is be open $X.X billion market to we’ve a That’s between mix upon our

the sits. work this best where So we’re year curve rest through into going and next And as well. we we’ll as to value enact our that way and likely of the across the year evaluate then maturities the

We to as want So we’ve going down going leverage. run it’s our – see highlighted come focus interest rate, certainly to as likely a also reducing new on be me, costs to are we reduction absolute annual mixed excuse interest but a have bag.

to going balance it’s two. a So the between be

the They’re in clear. to looking dividend, relates has feedback for and the the probably continuation from As space it could hear, specifically incredibly remarks, as a my cash I special which mentioned prepared not all Devon. investors from dividends you from been of our

cash returns our And to those the we’re shareholders. within so around uniquely sector we’ve done our cost we with break-even, structure, lowering that think the work provide to positioned

of with quarterly as and to forward shareholders. evaluate conditions. the for dividend, what with through couple consistent not market years dividends hearing we’re it’s largest excited our from move move next variable And but potential the only we we’re So our really

Unidentified Analyst

the can you think have Do it? will timeline complete that just follow-up you reduction? Jeff, when I debt on a you

Jeff Ritenour

Yes.

over way move look allow, the that to well. likely, will as as do next several XXXX some then to again, here our market conditions into of months, that and certainly We’re going of some

a conditions see So, be is to debt with again, trading. it’s of what going and the how we function the market

We’re the point the that balance is want proposition that, to isn’t extent the value the to holding But sheet the also there. cash repayment. we earmarked debt is that on comfortable key make for cash

continue So to leverage to lower time. absolute we over absolutely are our expecting

Unidentified Analyst

Thank you.

Operator

Your question Arun Jayaram. next from comes

Your open. line is

Arun Jayaram

maybe million Yes, good CapEx morning. from could I in $XXX million. reduction wondering was elaborate the $X.X sustaining you if $XXX to on billion

broad material the drove decline pretty about think that buckets us that help there? Just

Dave Hager

is Arun, Dave. Hi, this

to I Harris information think going David is around that. have some good

David Harris

carry driven of for can the levels impact the level seeing, efficiencies capital perspective. would good between Arun, tell we from lot continue you our in this saw base from we focus Yes, XXXX has year level you’ve production in to down is that prior the note we’re and this I’d outperformance David. In a equally buckets, about capital we Yes, that’s noted, as think about we’ve million. $XXX $XXX that question. to thanks million split the disclosure XXXX broad base maintenance out I a had Wolfcamp, that a as our lower as of decline well we outperform of come we’ve on from the production rates. particularly

to need we other then So to here about think believe that would maintenance And be have we certainly savings given in. we’re environment cost the us just drive boost those of decline rates forward. as we sight the line the lower half a business give service the we capital

Arun Jayaram

the Got David? or future it, that it. it. call Got permanent, view much How as, would in you more sustainable

David Harris

permanent reductions. of tell supply-cost pretty seen believe would as this always we to material past, told look and Certainly, to in we’ve mean, we I a question. as all try in from as some cycle this you good part the We I’ve of I can. can it’s make we that. perspective, Well, you, as here, the sustainable capture

We have sight of haven’t and of forward. going that baked line that, to we lot don’t a

think to next see going with it’s consistent over XX we what think to I XX So we’re the months. here

Dave Hager

Arun, might that service even we’ve seen what beyond I some add we’ve point. this at cost built into just reductions this

that leading-edge not of we’re this the all $XXX million. into So building reductions cost we have

Arun Jayaram

the the How, Delaware Great. around automatic I just was backlog in it, extension get – two-year appreciate guess, up are process? permit PRB. to the you – years I understanding for valid federal is permits extension the My that is those. on call disclosure can that a and my on follow-up the two and your both are

Dave Hager

Arun, you’re correct.

they’re Our two-year a eligible then expire. Typically, extensions, assessments that months years. our a initial it’s for permits business. And declined period it’s three file a for will have period. a out extension very federal We’ve part those the importantly, and a environmental routine We term Typically, for good permits from those say, of of when underlie process. those two-year are an extension. never quick permits fie approval been

Arun Jayaram

Great.

under so contemplated next would be years the that permits sustaining And that hand? four Is of in kind that mode correct understanding? over today a CapEx activity saying you’re the with your XX% of

Dave Hager

Yes. That’s absolutely correct.

Arun Jayaram

lot. a Thanks Okay.

Operator

Leggate from America. comes question Bank next Douglas with Your of

open. is line Your

Doug Leggate

magic seems fine. wand know the everyone. what there, you it I audio but is swung now Thanks, don’t

My call, Jeff received okay. getting explain backwards I you intend I’ll by you sometime. that commend by how hear can mechanism a windfall and words introducing from I market. you want just for the really on be the could however, think is use to differentiated if your Dave, what share, model sorted I’ll have forwards out. and you wonder question, me last for with is for flows or you curious guys Hopefully, investors. to I you model, and this I thank gone how to see is cash this the So

Dave Hager

quickly we we business have to probably think quick as model. in And the I think right continue proud certainly, of the industry. And as follow actions and we to model the and is already thanks, it up like – Well, started anybody we as Doug, very hopefully, others this moved feel here. with and do we’re model it have

first thing to that capital our actually then maintenance is the around we funded capital our our dividend – – maintenance WTI. break-even – is is funds and the that think normal around plus then And keep mind $XX in WTI. I $XX dividend the now

we in cash to start growth shareholders. WTI, above really where our the that you the you look how environment And if whether when free we return return $XX do call an whether we’re undertake start make at with it’s above going certainly, to that balance shareholders to better we’re select you to time that So to at economic flow cash getting the opportunities beyond that. would issue is, or into opportunities growth climate think we’re of move as – that balance to in the we

of we’re sit obviously the middle a in still global we here As today, pandemic.

sitting and I with And somewhere would error it point though strip strip. the right describe this bar is. currently so that a even sustainable on today, of is there that big the strip is at there’s There’s how way uncertainty associated that at lot around $XX a

say, are not, $XX this it’s to prepared point, "Okay, we So strip. at

more more to shareholders. closer incremental to into going at we’re going capital capital or mode.” and return maintenance stay process to dollars growth going we’re maintenance to Now Our start thought is those

don’t pricing is may as feel Now be where that future an oil pandemic on as now, global under. given the in there we risk we’re much there right still environment the

return to to on we’re where So where going be that the and to make $XX point time best start shareholders. little we of how to we say all into $XX, there value – at may as some to at the bit growth But a mix with going to take towards conditions we we’re do above and economic account the get in judgment.

going absolute be not formula. to it’s So an

find an think, whenever I it you inevitably, well you doesn’t that to formula, as wish by work live – as I the you try formula if had. absolute you will think,

going to and so where the fund that now judgment our in we right involve feel level of could it’s maintenance change the But And judgment, is some at capital appropriate some future. return it’s business at more shareholder. at that point to incremental dollars to level business

Doug Leggate

Dave. in a dividend If is dividend. appreciate I offer may there comment, difference variable think, answer, between a and special I I a subtle perception the a

talking dividend. variable a about you’re presumably, So

Dave Hager

variable Yes, I are And one, a special a when And really think too. talking difference, subtle yes, you about yes, is it. special dividend. a we we do see it’s there’s actually

call why And so we it. done it special that’s and we’ve

Doug Leggate

Okay.

follow-up is my So hopefully…

Dave Hager

a you. there little I’m being funny for

Doug Leggate

how as the rate I growth if level capital you. and capital I’m if well? reset you’re X%, there. allocation to capital the obviously it that slowing really up drilling portfolio? upward leave productivity high-grading wondering allocation, the inventory. another And activity across …yes. change about does a down question the activity just sees efficiency, because guess, your slowing it’s you’re I’ll Thank incremental down Dave, in

Dave Hager

for can to us continue you capital drive I Well, think, to in into business efficiency the general. look more

seeing costs continuing drive Basin. the down capital the improve drilling how completion You’re Delaware and and to we’re efficiency in the

that going look our wells things really we we we’re if than – time there, redesigned for that to we can a at last go play, stack there. there, those out the were less when feel you we where the You drilling completing done of we’ve and out back be couple when wells. have significantly And

costs where essentially Dow, with given a paying we’ll did well in XX% our promoted In of where addition, be of in the working one-third transaction our we interest. brought capital, for we

on well mode been capital efficient. is in Ford, really And lot the opportunities an there work we’re economics there the Powder about drive particularly as with the we the capital appraisal up just very we’re as the and so that River learning seeing redevelopment efficiency. closely have the to So going development in we are remaining inventory, Niobrara. very efficiency certainly to finally, Eagle awfully far. drive really And BP Basin,

the into Basin, in those go we as move dramatically full development potentially down you well. as well see So will costs River Powder

sense, to been on are we So we’ll improve because best absolutely, internally. a opportunities. in drilling going opportunities that continue of be these to of we’ll the all the be high grading But – by have executing measures

Doug Leggate

guys. Thank thank, you. and appreciate Congrats, I again.

Operator

Neal next comes Securities. Your Truist Dingmann from with question

Your line is open.

Neal Dingmann

Dave, maybe production sort talked lot is growth you about levels. and of a debt morning, dividends. my Good question I’ll the around and guys – cash I mean, these

down think minimum to more to certain a sort variable debt sort should to I we So there of of or and before of you just would frequent you certain how like make sure want production that? considering level clear. want dividends, about growth a get Is these level

Dave Hager

– tried EBITDAR or I is debt, less. X.X down mean, the say debt around to Well, first, pricing mid-cycle our get I target in the the on –

probably there it. not do yet we’re to pricing better need going quite bit and we’re little to Now a

outlook economic as a dividend, depend variable how in want limited somewhat lay the confidence I our to just invest as much opportunities of of much up so we On to to our pricing shareholders tried versus would cash going amount forward it’s growth to on return the in and X%. how to that we perception to out

So in of uncertainty the the confident – now, of going around it. tried we’re we’re pandemic, to I but economic prove outlook in It to highlight a that time. so may we’re the there’s better, assess Right that prices. still particularly middle lot at not and on a

leaning we’d towards more it so. side be the of cash right return So now,

Jeff Ritenour

the is debt Devon our hand I we our would this a objectives, accomplish target to of have thing is, on Jeff. our levels. But some distinction peers Neal, versus add one just debt is for cash

Dave on then generate as in go break-evens and hand. with unique take and created So free their sector lower folks But we’ve position A to then free we’re we flow care are flow to and accomplish We back to a generate lot have articulated. returned to the to the generate shareholders. cash of lower have any free objectives. cash can going then that shareholders, of leverage cash can flow with cash the try other that we in that that that

Neal Dingmann

where for boosting ties one with Great It you mentioned is – clarification. follow-up. obvious in On about. would And Delaware, of to when the start thinking continue a talking Eagle just you you all. confidence Powder, – Anadarko, this – point behind initially that, about it does cetera? or the have you would activity plan get looking cash just you Dave, certain But this the whole options. and cause essentially more strip, been gives just still the Ford, if focus with sort strip you certainly – then The at you up I’m doesn’t be would more a et to with you’ve of think lot

David Harris

Neal, David this is Harris.

as pretty see you’ll us bring program I with see of alluded continue the of to as all heavy do I high-quality portfolio take think think across think a as have and move we Dave areas we Delaware opportunity emphasis. activity you have advantage those and, a diversity into I back us the set areas the across well. some in capital will XXXX, three But to, those

Neal Dingmann

Great details. Thanks, guys.

Operator

comes question Jeanine from Wai. next Your

Your line is open.

Jeanine Wai

good can Hi, hear hope me. morning, everyone. you I

Dave Hager

hear now. you fine. We Hope Yes. can us you hear

Jeanine Wai

you. got Thank We Okay. you.

is I your cash XX% first at question prepared provide sensitivities the various looked mid-cycle XX% mid-cycle apologies band So ratios? price. mentioned price or in target if reinvestment for price flow, you framework. any is a this guess, CapEx the reinvestment addressed to and And the you’ve my the payout on using? that to you color you What on remarks. But this at are you could around And

Jeff Ritenour

$XX we when oil. about mid-cycle Hey, Jeanine, we talked talk Yes, about this so generally pricing, is Jeff.

to mid-cycle that kind our dividend pricing, low levels break-evens, that sorts So you all kind objectives Prior those and XX% WTI X% of flow on we ratio we our it maintenance to going focused of as that accomplish kicks limit the really reinvestment that when it that that get generating flow and our when level. again, makes of we’re free to sense But to effectively, XX%, do to pricing. XX% cash to quarterly you to can growth, get those think reinvestment to returning of and levels. be of to to free once obviously generating Dave cash has the shareholders. our the get articulated, of in you And type about given higher talked that, we capital XX%

Jeanine Wai

between for Okay, following that talk it you you’ve the the like just maybe Thank in follow-up a acreage? Delaware federal mitigated you. Delaware good of risk lot to up Arun’s terms question permitting. great. clarification. about well In does is vary But your productivity, of forward you productivity, and the maintenance in My on how non-federal significant and a the moving amount on of through looks can federal. this Thank well mode,

David Harris

it’s Jeanine, David.

that’s highest before, As the Eddy in we’ve you Certainly, federal is in opportunities although as and federal. acreage are. County, said where think Lea core – about Delaware of some XX% our our return our about the of

the we in that’s of of to for so program those two permits years. highlight, from the have to And XXX a drilling Delaware, our we standpoint, the so expect why permitting that half those by next wanted or fall about include

they’re what to those and expect So we would specific see. programs to

us expect that so, And I on lean would then and wells need that state wells drill you’ll continue to those it and where see inventory, to. with supplement can permit we

Jeanine Wai

very Thank you much. Okay.

Operator

question TPH. from Matt next Your with comes Portillo

Your line open. is

Matthew Portillo

all. morning, Good

Dave Hager

Good morning, Matt.

Matthew Portillo

Two asset-specific questions.

specifically with allocation forward into carrier gas the stack, XXXX, as thinking curious out you you to the curve, with in how Dow curious Just JV? look the about capital improvement with you’re have the that the

David Harris

David. it’s Matt,

commodity that price activity. scheduled that a and from seen year. pandemic to what we’ve were standpoint, this – we We’re begin we’ve Obviously, a with activity deferred

activity with XXXX. working contemplate and would that currently our restarting in partner We’re

that and on program is of laying based a discussions sort XXXX guess partnership. the stages the something initial potentially two-rig would out our how prosecute plan we see to best in I of that those probably Dow think like

Matthew Portillo

Perfect. And follow-up then just a question.

about partner as capital next Eagle Ford curious thinking how years. the are strategy significant the Your the Ford I allocation a XX And laid you with Eagle guys in shift out pretty was to that just the over backdrop?

Dave Hager

very with the on allocation we closely there. Well, work capital BP

not best, remained the extremely BHP BP, the and think, the asset and, they’ve best this I up And probably up feel picked with assets from happy that’s so one to but I think, in far, will they picked if transaction. of overall, I we’ve aligned. they’re better say, hear that

highlighted that they’re So even I having I one going be to shift, within continue would suspect think a their that’s though this is portfolio. strategy would that to

be remain their aligned. right that to we’d we as talk very them But asset you to about far, not consider that. alignment tell with now, issues well. they very portfolio, I to some significant them So we in love there’s have can don’t any point that if valuable seen around Obviously,

Matthew Portillo

much. very you Thank

Operator

from Your next question comes Scott Hanold.

is line open. Your

Scott Hanold

Yes, thanks. DUCs. plan on Question XXXX in the the

And through all the about you points? I should expect that? those in mean, we think decision work so DUCs XXXX? Or what how do are to

Dave Hager

capital finalizing still our we’re XXXX Well, allocation.

that I premature a So quarter. to have the the we’ve know XX in – say DUCed it’d we be little how we’d in do that that been second DUCs much. have down Ford that Eagle there

XXXX, And drawn in XXXX production. will so down be early give those a are us to definitely really going start good which to

to right consider we’re and going the may I – how that consider level to may we’re we which inventory, and whether that, think working down have doing beyond deciding we that much drawing at now that. on

would would down part, that most few probably think, inventory, that that to of some to working seems the have it draw I For you just if there normal DUCs always appropriate. going level a – consider could we you be but are

Scott Hanold

Right.

So it just clarify. XXX the DUCs. roughly was I to think, – Of

include Some is normal that, you work in right? inventory, would of that

Dave Hager

right. That’s right. That’s

Scott Hanold

Yes, yes.

we’re some and but quarter, commodity and Or statement? what a designing the guys going we shareholders other for plan get know to don’t this things. Is something you the to to that? have be enough. that And if understand is, and going could be it’s dividend be special correct on, consistent Fair The you way forward to you doesn’t it initiate it regards once Okay. I wrong. it me – that highly the off start then like and and out, of this to of you’re going guys to guess, it view sort your I’m sound depending are going something fair macro some a on laid can with it

Dave Hager

probably dedicated with take to that, a frankly, feel One cash where do cash anticipating dividend. variable shareholders. Well, different a we’re I can are couple are make ones this we’re special to the because frankly. the to use return and we very where some action first or have words model is synonymously, actually There Barnett in of you extra And we cases Shale. no the case, this mistake the that of we

believe, our talked flow The about that be well. as we’re same excess business, Pioneer and probably the doing to other that, we thing, returning is we that be is will from I this cash as generate morning to certainly, shareholders ongoing going

to much No. we be going say we’re are do approach so to formulaic Now that quarter? around and every absolutely going

when But generated that. saying we limiting not to growth beyond as the again, we for We’re you are in our we’re business company shareholders. our environment what right need cash can have flow us that excess we then confident to a that look to cash return X%, and,

so as might exactly just being it to be. specific We’re not how say

Now, few Jeff, have has I know well, some a he that or may this comments so. around thoughts as additional had

Jeff Ritenour

quarterly dividend, dividend cash into our our no, on year. return going flow Dave articulated, sense conditions, well. special. should just the The at the capital our think, both price relates Scott, our But we cash dividend. the variable thing then to have you evaluate generating is would would depending I maintenance But prefer. deck obviously, articulated, as shareholders break-even said is, is, Dave is use with – to we’ve quarterly our it point Yes. that one break-even the can throughout be future. as shareholders and to to that whatever via traditional And dividend we’ll level, return game I we our quarterly the the all you foreseeable it traditional I again, the makes time to plan and the market levels you expectation free in as dividends, what And add to

debate Board. timing, it As to relates we’ll with our obviously, that

and what the throughout makes times trying objectives multiple quarterly conditions we’re meets based time. to other the the at Board year, the evaluate market least, at sense achieve on Our and

Dave Hager

– shows various also you at in might at could XX of cash report, what at capital we we Slide amounts our maintenance free you And WTI operations – look too, that prices. flow yield

anticipate return cash to free we be there look is that said, to we to significant would Jeff as shareholders. going flow just that that and So

Scott Hanold

you. Thank Understood.

Operator

Your Nitin Wells comes from next question with Fargo. Kumar

is open. line Your

Nitin Kumar

been taking side. questions. lot for morning, guess, my and gentlemen, a covered return I on ground cash has thanks this Good of

mention component how still help Can shareholder the the your component share you cash us of your the the did understand at in prioritization – You is buyback you of slides for is return. different are that a of looking return? avenues buyback a

Jeff Ritenour

Yes, Nitin, this is Jeff.

we’ve share return to to as Certainly, approach well. utilized shareholders a way right. buyback the You’re past, in the cash as

feedback been As you has hear from our I didn’t audio loud that and But cash the said, appreciate I and them, difficulties. got and our cash clear returns in given around prepared dividends. consistent and pretty we’ve remarks, shareholders

absolute forward, buyback. going dividend versus to versus so excuse – the the expectation is our cash stock to the cash return And return me, via

Nitin Kumar

be parts $XX Great. about That’s on improving cost be Slide may reductions understand what the And you forward? is improving helpful. there And about many Jeff. mentioned for just here. in financing targets? you’ve your well, LOE Granted GP&T. you us to then you’re interested going particularly, million how going how this million, the as $XXX are talked But are And I’m reductions but help in GP&T and then your moving you from XX, could also But you of LOE?

Jeff Ritenour

Yes.

of that Oklahoma million we and cost our – that. happy to MVC about an So have I’m $XX GP&T million $XXX of we in is stack reduction that LOE that and The and highlighted, asset… answer

Dave Hager

commitment. Volume

Jeff Ritenour

off in …sorry, have we minimum volume XXXX. is Oklahoma in that commitment rolling

work whether changed that some can job about that’s our cadence done costs in So of add really of seeing all of David our a then earlier, beyond But hard to the cost. – it work teams we’ve level and compression, to our activity be chemicals, have we’re great more he frankly, lower as our of of And $XXX that, this of million. mentioned detail. lower half categories.

is that may into from lock that future. he is the that and, David any seeing benefit deflation have. we’re to lately. the let the of Some keep ability believe add we we’ve an of again, course, here sustainable seen some what color of in cost teams I’ll lower But of that, the really those

David Harris

it Yes. Jeff, well. covered I you think,

with operating to feed I is, what an LOE centers always basis. decision support the tell operations trying our best as a got on would we perspective on start we data our downtime real-time you We’ve side, on us can. from reduce think I that

so only them able more and in to we to downtime we’re get are many in not able front quickly them. And cases, events, respond predict to of

keeping running, chemical across up we’re the some well. of the and compression Ford are In items Rockies, the business. technology first varies both it given we little automate covered order that work. just Certainly, costs, costs piloting way attack assets. area operations the the opportunities as our the Anadarko that’s But and different things always, doing I pretty of we It bit the Jeff, a we’re line on by additional think, so we’re heavily. And nature – Eagle focused the how to

far, half those our and our environmental improving year-over-year, cut in us those downtime performance. So to allowed have while costs

$X.XX And our order so got in on mid-Xs. of the the target the stretch a believe there, to we down we’ve something from recurring there down Rockies to get LOE

to our believe step costs of in important get. to leveraging of continue a lot we a keep otherwise water as but then got standpoint we’ve manage things well, there change And and So the types that we’re and infrastructure there’s down. we those a that there can those both from obviously, Delaware,

Nitin Kumar

you much. so Excellent. Thank

Operator

next Brian Your Singer. question from comes

Your line open. is

Brian Singer

Good morning. Thank you.

Dave Hager

morning, Good Brian.

Brian Singer

still max would the the any really it’s growth you X% i.e., outlook? mid-cycle that above So on growth be the just if scenario, consider. X% max an were ask follow-up and $XX, outlook, to they would to wanted price is above price, I is

Dave Hager

Yes.

Brian Singer

today… think you as then And

Dave Hager

Yes.

Brian Singer

at having I little the participate or would consideration part limit have And as maybe that you about impact guess, impact – does and that’s or M&A was that then a a growth rate either think consolidation? a of sometime, it of be slower even you than Devon in maybe to the Okay. that

Dave Hager

is – say, there. be companies, can extent the E&P too between and consolidation I’d also, much cases, recognize there. there of may there there which system. obviously Well, in benefits synergies M&A various that be can some something overhead entire we to some many And that that operational out that capture the benefit some exist in sitting there overhead There’s is be could consolidation eliminate and

growth the significant I limitation or other. that has the really So don’t rate one of a see way the impact

think, the frankly, are. that many of I to same the are we companies model pivoting

just we’re than the little model more implementation this think with advanced are. of a they I

So I that answer. be be – quick acquisitions with this rate. think answer, one-word that yes, I on if the X% absolutely mean, strategy And cut could The very all and understand make doesn’t for grow would to I it’s is just count why is just think – on demand that rationale industry gave for than a think, appropriate. can that, it the – us behind a the I on it sense rate I our on does there to we the higher the that, make to is, answer, OPEC sense to any growth at supplies much bail something we limited product out is prices.

their is And think, lesson – and that. that. I everyone I think lesson And so the hopefully, on think, industry I learning learning is on their frankly,

answer did. just it why so straightforward the it’s that’s So us to way for I

Brian Singer

with And my enough. rates. regards decline follow-up base Fair to then is

lower in X% base recently? or you how that about where growth the Assuming of evolution rate? decline see here can at managing your more been you’ve corporate talk decline you do you’re that level, most And base effective

David Harris

it’s Brian, David.

high-XXs about on we basis. our XXXX, as in decline on the BOE rate percent was came oil As talked the and we’ve probably a into previously, low-XX%

areas. BOE into low-XXs think, say for oil a asset emphasis the a And mid-XXs we and to that, us so. then we rate production from I really, become our roll on I across expect it’s basis would as that decline big of standpoint, the or moves a would all year, base forward a

return an try we rates as and some accretively as as all think these deploying I an creative teams of in arresting to And job can. teams our certainly, shallow to declines capital solutions done much excellent base workover have and don’t. you, decline out cash But part a for people can model times with rate, maybe extremely past. of granted that’s this I into that more certainly took move business moderate growth tell we our important the

Brian Singer

Great. Thank you.

Operator

[Operator Brian comes Instructions] Downey Citigroup. question Your with from next

open. is line Your

Brian Downey

morning, Good surprise changed prepared conditions. understandably that the are you’re on experience basis, if management you’re a thanks pressure From any the due questions. newer there how time thinking X, curious Slide on if process throughout that learnings for restricting I’m has whole flowback on quarter? still during or remarks taking to go-forward market flowback my and about early initial wells

David Harris

It’s about approach of how terms that any David. any good strategy, would in our there to Brian, we of flowback how think that. surprises say Hey, it’s talk has you No, an Certainly, we important that’s or part I again. to develop been we asset. wouldn’t as differences

time time, we do so restricting of we’ll changes Certainly, doing interference projects or you experiment for that with big should bit. how And we as terms the where have but business. that in shattering we’re a expect no conduct revelations we’re appraisal like, work, and testing some from or the to flowback

Brian Downey

Okay.

the of normal the back sort should there? to second-half the of in on year, completions So anticipate we

David Harris

Yes.

think that’s I right.

Brian Downey

Okay, great. I appreciate.

Scott Coody

everyone’s then looks prepared them post issues viewing. All we’ve the Devon the got everyone’s today. the for had, appreciate think of we’ll given for questions. And audience, It right. to in the the we’ve again, all send remarks and of out convenience We some the we’ll like also interest I and we’re hour, on at website our through once audio top

don’t to If day. the time. you you, have Thank any well, Investor and out questions a at any other please further Relations team have reach as good to hesitate

Operator

conference today’s call. concludes This

disconnect. now You may

Scott Coody	Vice President, Investor Relations
Dave Hager	President and Chief Executive Officer
David Harris	Executive Vice President, Exploration and Production
Jeff Ritenour	Executive Vice President and Chief Financial Officer
Arun Jayaram	JPMorgan
Doug Leggate	Bank of America Merrill Lynch
Neal Dingmann	Truist Securities
Jeanine Wai	Barclays Capital
Matthew Portillo	Tudor, Pickering, Holt & Co.
Scott Hanold	RBC Capital Markets
Nitin Kumar	Wells Fargo Securities, LLC
Brian Singer	Goldman Sachs
Brian Downey	Citigroup

Devon Energy (DVN) 10 Aug 202020 Q2 Earnings call transcript