DVN - Earnings call transcript Q1 2024 | Devon Energy Corporation

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Operator

Welcome to Devon Energy's First Quarter 2024 Conference Call. [Operator Instructions]. This call is being recorded.

I'd now like to turn the call over to Mr. Scott Coody, Vice President of Investor Relations. begin. may you Sir,

Scott Coody

thank joining and call on today. you morning, us for the Good

issued and to outlook earnings Devon's night, Chief to call are an Last CEO; we be make joining our Officer; will me team. release remarks, of call Throughout the our references and quarter our today, we today remainder Also Clay Ritenour, earnings results on and on first senior presentation President website. Rick prepared and Officer; our the our presentation for found the our XXXX. the support Chief slides for cover that and can other Muncrief, Jeff a management Operating Gaspar, members the Financial few these of

that law. and to U.S. of statements Comments provided filings today and language statements. are actual earnings could our will forward-looking our forward-looking and These SEC risk assumptions, take risks are Please include securities subject uncertainties to that materially from materials. results cause note estimates under differ plans, in cautionary comments and the factors forecasts

turn With Rick. over to I'll the call that,

Richard Muncrief

a Scott. join pleasure us. be morning. We here It's appreciate time everyone you, Thank to this taking the to

we've time, I helping to our personally off stage Devon surpassed had wide in of outstanding an first quarter quickly start to our and us start. to to for At business want the great targets XXXX setting this our continue a get established in service employees, to thank the partners This margin. impressive infrastructure that By set providers that our strengthen. set the measures, the all momentum financial delivered and a operational results we by demonstrates XXXX

I our outlook quarter my the underpinning outperformance first drivers on improved of of the focus remainder will the our year. comments remainder and factors for the the for today, For of

higher off beat across by came had on than do a start X% let's delivered in and with noteworthy Slide results volumes we all highlights. BOE several review the per averaging X first where of was production, production products quarter, first our This factors. about our X, XXX,XXX quarter planned key So for Starting quick to day. driven

expectations most placed the average, with more performance was productivity strong we we top production driving the to the the quarter. online rates wells activity in achieved were and last initial our excellent Basin, Delaware Overall, online well than high-impact productivity during again, those than the curve once from XX% achieved significant wells exceeded XXX-plus results. higher On we placed First, well these our that year. this contributor that this

through continue. these I progress year, recoveries that this anticipate strong will we As

Secondly, and cycle another efficiency detail online a than key operations. we factor to gains and activity us that was across improved quarter quarter little drove simply capture planned. more the completion our delivered we had put, drilling into go much production will forward allowed in higher bring But Clay the in these more later. times the days

world-class compression, for times of deploy better achieve allow activity us our to this base electrification. These and additions incremental to water positioned basin. the processing, us capacity along with the contributed improvement And Basin partners our easing steps related we've constraints was our third the that invest was Delaware third-party during directly to quarter taken the a our across factor was infrastructure assets. performance positively of the This to build-out in crucial gas run of to to core handling production have and more

deliver in realize better Another XXXX, cost expectations the we with line pace X% delivering in deflation by go especially activity. position This from accelerated positive us was cost were management. notable we this that with and operating savings capital in through expenditures demonstrated to team's if start a great the as of year. year incremental puts that efficiencies to This from effective were even the than costs guidance was an achievement lower quarter

of through line, value Cutting consecutive XXth flow to across led quarter continue create the team's to free buybacks shareholders of supplemented execution durability our the aspects cash by return plan framework, the cash the through free showcasing resulted cash of bottom our in our dividend we by stock all comprehensive consistently was which the cycle. this flow, reward and payout. to another With attractive plan

Now the to year moving achieved the we Slide ahead full XXXX. of are expectations guidance with performance year-to-date, And XX. strong operational raising for

production you target top per day. or a key of contributor range XX,XXX improved BOE is our left, can the a to see day X% increasing BOE to on As to this outlook per by XXX,XXX XXX,XXX XXXX

better-than-expected higher over expectations the I earlier, what the reiterate achieved year. slate have quality course volume of touched projects year-to-date confidence in we up to are this performance of the due To well lined these on that our and

last Importantly, the delivering breakeven compared of this capital within is This our ultra-low maintain lowest is original barrel, budget to -- steady any $X.X of incremental fully capital expected the in around billion we per are industry. confines less $X.X the investment to of at funded of one $XX equates levels of about production to company profile which level This program production of XX% for year. billion. of to breakeven a about

flow will flow attractive we capital reward X%, With XXXX year of free that opportunity, this to our best to This Xx flow unwavering higher dividends. or at discipline cash levels. our flow, whether cash our will and nearly With the cash stream free is than commitment pricing allocate we what improved offer. broader into we buybacks which of positioned cash returns. seek are be translates yield With full cash free outlook, in generate flexible versus market greater toward can year XX% cash today's our with growing the than higher framework, to in more shareholders remain now last free return

these heavily prioritize low to plan that at we the to buybacks offers historically value to valuation continue discounting incredible that Given Devon equity capture still over energy variable the the is to market share valuations. sector, dividend the

what would do an in We on XXXX off and So exactly said in we more much to first is quarter. summary, delivered the we excellent start.

Our year. year current and And to the the could is improved this thing stock get our upon this the outlook Devon and back valuations is start. build better space, to to for continues going business a be in strong momentum, value. team best great this energized with we capture do reflected to our and for build It's buy in is the this

that, I'll And the Clay. to Clay? with now call over turn

Clay Gaspar

morning, Thank you, everyone. Rick, and good

the was outperformance for board, operational of quarter production execution delivered each and first Devon's that where exceeded across results result team asset capital efficiency. the strong targets

times productivity, year start Rick on, outstanding As great was factors: improved X production by results. and base the cycle the of key underpinned excellent touched well

Devon's outlook of plan that cover for momentum I and remainder remarks, and prepared that asset-specific improved business this the For positive my observations insights highlights to are drive XXXX. driving provide

of Delaware on in We for completion same overview of program flow per that volume X,XXX aggregate, with in operated begin more a years. Basin growth these wells performance a net wells well the Wolfcamp Slide of -- crews rigs brought results online wells our Let's This day. formation. our position predominantly and these activity, productivity This capital than Delaware X% investment X the assets Basin average XX for production than BOE X of targeted growth high-impact rates best by quarter. X last across impact in in period the which play, an initial new accounted resulting our XX XX% achieved In was the compared acre from year. XXX,XXX more our to the of driven

that impressive to quarter. Slide projects outperformance I'd down basin, X, while we like results high drill on economic On drivers biggest delivered were the X of our across the the for

of showcased this one rates in believed weeks this the side left by pay reached upfront all further project our further planning a why area per frac Van was area online simul slide, of the reinforces our and of Cotton success far -- of STACK The ahead the oil Draw the plan. nearly quarter of was Draw Lea of massive County. of scale This of brought largest development gross the improved tranches peak in efficiencies thoughtful in potential nearly Dah in Doo team operations, project be the to XX,XXX successful the the On barrels best America. Van day. Doo Devon's XX-well With Dah I from North acreage Cotton flow X that

this in of level projected in of Upper history Wolfcamp X-mile that initial BOE highest X of also the to project X,XXX expected the XX-day noteworthy This a an rates possible reached this was project day. productivity Very was rates Delaware project BOE quarter, CBR area. made Basin achieved are few and the per well. recovery any per have the development from by of production Another million our recorded Stateline in average extraordinary trade projects exceed the XX-XX acreage

area. single of rates success Delaware that derisking the This day. appraisal in resource exceeding peak Wolfcamp depth to cover And approximately the positive the This X,XXX our adds lastly, came would in interval with significantly locations had for appraisal like in I Thistle quarter XX BOE the expectations by proof-of-concept B predrill well area. our in result above per the a key well to we in our

the intervals to strong this oil higher cuts in our gas for the the enough While hydrocarbon are rates, shift deeper stream compete portfolio. effectively opportunity Wolfcamp very in generally capital for the towards

beyond. Wolfcamp we more plan this, we into as and for B our our program incorporate developments Given multi-zone expect wells future to 'XX

Slide to Turning X.

our XXXX plan great the We are clearly a off with in to start Delaware.

our well on left, productivity improve track to is you year-over-year. see As on can the materially

that reminder, New length is to these this It to note our spacing of a to to or driven a is inventory returning higher improvement lateral Mexico, the As not greatest. allocation where capital is changed depth important have we by achieve improvements.

for can improved segment in continue of Delaware pairing -- our but of rig times, this high-grading with also overall of cycle you to with contributing. want board gains. this the segment well compressed frac this see of as is the work I across to of our congratulate adoption the we to well efficiency teams through as Basin The we're the the right way productivity Importantly, down activity been across key and expect driver drive momentum a simul broader has Delaware cost also to the slide, the the this in success, fleets year.

just XX from. that participated in included everyone the remind build-out of to We Slide are recent either we or benefiting infrastructure led,

perspective as highly in the Our breathing area from this well room environmental as an standpoint. decision this prolific economics some mature infrastructure to an was for right giving patience

Slide XX the updated Basin remaining is inventory view top producers. of Delaware an of Enverus's

in this parties largest have we drive As operators enterprise-wide perspective, for years resource us inventories among the will performance one with many you can of from see that third the multi-decade basin, providing credible to come. a

Basin in basins the oil liquids-rich value force United portfolio the across performance, and Delaware the our best the diversified behind While States. we a do driving is very

steps oil the successful would have I we yielding that tighten briefly Ford, also are highlight basins. the XX of infill items few we from the a In like In a growth refracs efficiency handful resulted year-over-year. wells online capital in results. X% first to taken of those highly rate quarter, to brought Eagle and our

Importantly, capital balanced program efficiency we're improved while to along versus our across this our the assets of in rate advance is the to counties. DeWitt appraisal of driven average run with growth Karnes and benefits This requirements the of able tactically XX% deliver less redevelopment less field, more XXXX. spending capital by a

play well better In projects Bull X% in of North our performance to and Elk Moose and internal quarter. the core excellent productions. our the in uptimes Williston base This expectations the from productivity production increased Basin, exceeded the John due our from

this year, asset for to cash full for on the flow stream company. up the generate the million oil-weighted For of is $XXX production to track

wells Powder last River rates the is XXXX by flow we in designed XX% increased year historic where upon build gains the achieved activity to levels. our Basin, well productivity Niobrara X our Moving from to

Niobrara view we our in to completions the of acreage area plan on and drive is objective rest XX County. towards our around The this as advance bring For optimize spacing of we development. Converse wells designs online to activity field across XXXX, this to costs down refine full

the XX% but and very capital with Allen pad wells project weakness our activity production Woodford in limited both of rates gas first formations impressive. online peak achieved the the recent XX,XXX in exceeding the for that Lastly, in to per price, Meramec pad nearly of Anadarko day the one BOE rates this comprising mix. with flow the was co-developed placed X cumulative The were quarter, Basin, liquids

majority to we activity look our XXXX, to rest capture in activity JV X of in the the intend As the reducing expected Dow and the year the online in rigs to to higher second half months. area we're gas the winter of price bring of the

the strong the our to of plan the that over quarter In results capital-efficient and as has and beyond. summary, I'm delivered look on this that we remainder the we momentum proud built team year of execute our have

Jeff financial the review. over I'll that, Jeff? for to turn with call And a

Jeffrey Ritenour

Thanks, Clay.

quarter into the spend rest time for results the drivers covering financial I'll our provide today my first the outlook year. and our key of of some insights

Beginning driving our results first had very improved across strong with the production. quarter, year the We in outlook. board full

second New to This crew is the to at beginning day. completion XXX,XXX core Southeast at production expect with resulting work to Basin, of Delaware the the XXX,XXX volumes specifically in quarter, the of Looking higher continue growth fourth year this increasing in of expected activity a to driven the range per the momentum by BOE frac we we Mexico. put from

of activity. the XX% first X guidance our to in full the lower due range move of for Spending capital in the primarily be as the year, frac in half the the spending to slightly in to Delaware budget, second Delaware the completion will to On capital confident begin from roughly skewed crews half cadence we resulting of year. we front, spending our will of X the This moderate a profile year. remain

recent pricing, cash and impact of in provided generation flow capabilities. our the oil With a price strength returns regard meaningful has to to

$XXX For annual flow. generate dollar in uplift around every WTI, we of million incremental cash

as weakness Permian. side, gas WAHA is within But our the given are takeaway hedging. a our in and the On firm basis experiencing we reminder, exposure limited pricing

we Looking later improve Matterhorn the pipeline to situation to year. expect scheduled come online ahead, the this with

quarter. the field expenses. job to controlling during a good costs Moving level did We

costs of Our GP&T end per lease totaled and below BOE quarter in the our coming guidance $X.XX in range. bottom the operating

feel our year, full comfortable to Looking of the rest guidance we ahead very level remain to year field our the we expect stable, with ranges. cost relatively and

bringing in With operating this the cash the to to billion million growth to in line. of quarter. Moving flow free to million program's place, plenty compound our the quarter. flow during This quarter, total we cash for year. capital $X.X we flow, $X.X $XXX repurchased late We cash all billion resulted repurchases of level of a With of prioritize in share XXXX. requirements the funded bottom share quarter. way free $XXX We cash first generated flow inception we our $X continue of and as the the through authorization runway have in stock billion the in work since our activity per

program, quarter another dividend was at use In the excess paid This of of our addition plus payout funding distribution share. $X.XX in a of to our our buyback with the be the fixed key per June. cash will end variable the board declaring of

total healthy In out first this prepared financial increased like cash brief the billion. I'd update a very X.Xx. $XXX investment-grade morning, our to With by with balances our to And increased round give ratio exited to on remarks million Devon of position. $X.X net the my a of a liquidity, debt-to-EBITDA quarter, quarter this

balance sheet, accrues free retire debt. Looking our to maturing ahead, we build that liquidity and cash plan excess flow the with to

year, of of another have we'll late $XXX in million, to retire notes the $XXX debt opportunity next XXXX. September maturity million comes totaling in this Our due and

to with back the And that, turn closing call comments. Rick for now I'll some over

Richard Muncrief

Thank you, Jeff.

up the To remarks exactly this prepared one, promised a in few to first on I then wrap and reinforce want do key we're morning, some to delivering quarter. messages. what our we Number

demonstrates business setting we've plan year. the go to and execution established of the the disciplined we stage the through for outperformance our Our momentum as that strengthen

efficiency anchored well to and our times franchise Delaware. by Secondly, underpinned into gains outlook better faster this our productivity, base from production production This XXXX with is year, we're asset results, start great the excellent guidance. improved raising by cycle

manifesting that cash translate outlook free also will is shareholders. in higher for flow into higher improved cash Number three, returns furthermore, our this

we Given the offer, prioritize value best proposition do can repurchasing that is our the thing we shares.

is And lastly, any one our there. company base resource of the of deepest out long-duration

We to find add to ways resource. continue

positive in Ford redevelopment You continued River morning. in Wolfcamp this Powder success Basin. Eagle and This B, the productivity some heard of was our evidenced by breakthroughs results in that

the I'll for to that, turn call with back And Scott now over Q&A.

Scott Coody

yourself question Thanks, on a call your will open one call allow now of get the follow-up. to the limit questions and Rick. to Q&A. us Please more to to We'll This today.

we'll question. our take first that, With operator,

Operator

from comes question Arun with first Our Jayaram JPMorgan.

Arun Jayaram

was -- midstream given in I Delaware improvement Team, if to about in is the XQ you in conservative elaborate the guide just despite and any the there outperformed on that one Basin. coming the could fact half issues? questions the the the of you wondering talk some situation second And in of just is weather in built

Jeffrey Ritenour

up and spend the has other $XXX team alluding electricity. in the cleared out Yes, million, that. compression served and Arun, of availability that in The of bottlenecks that XXXX of think in the freed spending, water we And us around of as lot here remarks, to well last had year, to you're move challenges walked job of ahead Delaware we that $XXX really it, that gas us as getting has his a lot the movement great in infrastructure gathering. million the had has I prepared we which and mentioned call to We're for a capacity a done Clay the some year a and to molecules. processing up build

quarter. how that across operationally here we in as the basin, really core really half still out. to our our gotten But as say, we've comfortable of move areas. frankly, feel laid we guide, good relates progress, the we we needless ahead. and progress updates about of working things and all in provide you to guys it are the the good things back monitor As continue to feel We've guide We'll with first obviously,

Arun Jayaram

could Clay, performance program that development? Ford. see the for of types returns of was how Great. relative the from seeing I you seeing from what program primary one some you're more the refrac in this more maybe as Eagle And as good wondering the the well And light in do here if activity? highlighted opportunity Eagle shed you you in Bakken refrac you're for to of an maybe Ford type Clay.

Clay Gaspar

more Yes. becoming a Thanks piece for question. is what do. core It the of we

think encouraging bit trying performance. say I working, of look and you And of of the not, lot a When would the sure And look on understand of performance, of that's on when of then to that we got what's we're fine-tuning this back recent see our standpoint, at we're a really construction, the do back that start what's refining opportunities. these obviously, also, completion of some best at well results. little some some you a post out opportunity industry we've work initial is the the geology appraise I to really operations. you figure doing, that focusing and kind design and years making that results. mixed using on more from techniques the

would new we're that very putting compete say online the construction. well the refracs, wells basis I favorably wells are drilling XX approximately a this on with heads-up we year, that

we're there's about and So runway what very think encouraged go. more seeing to I

where -- on resource amount opportunities in in place. a total a value bag. would the as of smarter Williston post it's the of very earlier resource a I mixed it's in to still opportunities. high-quality a encouraged very I we the from still mean, continue like, I'm Basin, Again, big little small the company create recovering we little you get every bit basins, very of I still one do I'm highly encouraged. the a characterize more what think Williston, to highly, refracs a in On some amazing in these sit how about draw look Williston multi-basin the prolific play very you around circle process. these we're And appraise

more come so And that. on to

Operator

Neil turn Sachs. Mehta now We with to Goldman

Neil Mehta

that love year? towards see the in about past, the bit time think the that's towards leaned you Good little to talking buyback I'd return have in return course we program. share shift the Delaware magnitude the to you how this do inflection you think a guys on quarter. the And capital should noticeable about of a of spend Why right capital. of There's the And variable of over decision? dividend. the

Jeffrey Ritenour

Yes. Thanks, Neil.

then of quarters As maturities back of know, is change a to made slight to free in and rolled a And to cash repo go we you sheet opening I couple share and flow out shareholders on leaned ago, our manage a our comments. also, we the cash dividend, referenced via the to XX% framework building fixed in commitment our balance the variable. to then that my to some going

So thing and based and game our without our to expectations, buyback, a on we question, underperformance absolute the on our for basis the be saw last share with equity specific we in the around to and relative do share all year we internally, that continues plan shares, market work us flow that intrinsic that is pretty do that free buyback. be doing work all modeling the cash we on in clear it's the with the leaning can to value, the that best

And continue that's would so walk to do what XXXX. that the last couple you've expect into seen we and quarters, forward as of us we

a a quarter, will comments, This this we capital work it, $XXX pace as talked and we've share to repurchase $XXX well. through our would feel in on spending good results million, million that that opening about way as the I of, our that we about the feels think a our leaning right. there's expect But about been really moderate potential program, Obviously, currently, even there as year continue. call incremental and we little for that pace delivering

Neil Mehta

they're under online a lot for to of just That's local helpful. we come as in gas Permian. And on the Obviously, prices. pressure then wait is follow-up Matterhorn the

we have thoughts it? any out, next over pipeline. timing need on of that of picture couple you do visibility big next the long pipe, years, how into the And before just but as we So look

Jeffrey Ritenour

Yes.

This externally. certainly about Jeff You been bet, lot a Great something and question and talking we've again. is Neil. internally

is months. that highlight Matterhorn, that expect answer on say issues haven't third the to quarter, pricing and any downward come I'll want the the the in feel over the call to it it, of end of all, like the had despite of we we We volatility at moving pricing X to First your I month, our question trajectory just kind you've directly. we're WAHA that X.X last, of here seen obviously as reminder, to to quarter. move our a X/X pretty via out we gas a that Coast in help gas place. going firm XX% third our get good position. the the execute And back have transport half then the of But of of hedge basin when about is that another each to we we just the in Gulf we via of Delaware program the Matterhorn quarter. protected molecules

as helping well. that's So

That to first remaining that in to exposed XX% about gas gas is keep month. that is one mind WAHA, thing of a is

happen don't all other we the it you see So out that screen looking as relates when issues the the in basin. on the challenges to volatility day-to-day maintenance are at and

So that well bit and we help get feel relieve third the into expect exposure like some we that of Matterhorn have we're is from the we going that protected to do quarter. pressure certainly pretty when of

our pipeline there's that third-party a are other projects, of teams projects relates other to discussions engaged handful providers. it As in with

actually it to XX of the As it a can't but be see FID I think do investment of you And the got whether X to certainly, timing, leaning pipe. record I case an to as relates as projects help or we Matterhorn, those commitments the off equity in get well. we've track answer, in ground, another historically, know, made Devon volume a specific months, a we'll within in next give you

that supportive with going think others certainly pipeline most we to be you're industry, XX months. like we're to in and the -- of here projects going need XX, those another So another

Operator

comes question from Kumar next with Mizuho. Our Nitin

Nitin Kumar

what the New the X. you infrastructure help sustainable bit sounds of went could Slide like, quantify Mexico perhaps Delaware you is drilling is into track. was driving the the but back on Good you efficiencies as the that's X things? improvement, and what expected that was how and the forward? us kind little and going on a back And that saying, really to of it's completion see to the It onion I on here based improvement peel want productivity Clay contribution

Clay Gaspar

Thanks clarification, remarks. -- the about Yes. one in sorry I that. Rick for question. And covered both and prepared the our this Number I'm

question covered drove X to the the this. outperformance. was outperformance both this list, I Sorry. well in XX% asking clarify the prepared productivity. That the We on Thanks our Rick X to big outperformance. allowing for probably us remarks, there's really and Number but and of contributions the --

them online efficiency We of that days in. and up. more there. here had Second couple a was bringing the adds we're at Cumulatively, which

very from third, a operating our standpoint, from standpoint, how we just importantly, performance historical we're a then base And from a there. both outperformed weather really standpoint, midstream wells,

the for we that. that. clear thanks weren't Maybe on opportunity to So clarify

Nitin Kumar

And that talked my just is industry. I to the I wanted in a Great. No. Rick. in scale make of guess lot sure. importance about question And know the second new for M&A of seen We've the I you've business. shale

feel further? like your current are there you look it optimize you areas you As you could portfolio? with at the remaining where comfortable Or landscape, are

Richard Muncrief

portfolio. High comfortable makes and that us with game high we and very stronger, I are portfolio. consider line is our things, with we the a changed. bottom comfortable multiple our really, we're highest recognize one have our what have plan where bar, it's always quality one, look the think, we we to very, Number bar, portfolios got very find at not of We day, basins, -- doubt. Nitin, at. that and we're are something very -- we of in our the the but Can plays has But We'll we advantage. we end without think quality at of would our a

We about coming this results portfolio. very the sustainability. seeing good You're from feel

showing left of we And view. our that's our in just just fact, of a our we portfolio It's not slide our as deck -- -- many put at quality you of a look peers. -- matter can versus slide our

capital the And that end at after we'll shareholders. year, flow on leaderboard of is, back want get of so be generate efficiency, our plan -- and year to game to our the we top right day, cash the to continue at the free we

participated, -- this the plan as have. of helped we several think I question worked We solid well, how lot all, our and years had that's game been far we've around consolidation, and developed portfolio honestly, quite really So for that we consolidation as the a has now. kick but great

Operator

with We turn to Citi. now Scott Gruber

Scott Gruber

on Just improved and a feel production both could full the the the curious you half? be year like smoother, the the on second productivity, in a bit surface for in the profile with the bit more Permian. stable wells Do

Clay Gaspar

Thanks for Yes. question, the Scott.

past, comes that that's half and years in in done year, more by back year, the front have of front growth. with really that fourth are we of front-loaded the XX% about capital online frac driven in wells XX% the on As in the half Obviously, more we crew. the

And running crews, we're pent-up running frac also we crews, it And building bit that frac little about bit, of think are inventory. of is then over DUCs. we're DUC we're the a a a consuming some rolling those production our so X but when X

we've I the bag. in expect, as so And and is to guided first quarter

guided we've little quarter, additional to a bit growth. of Second

with Third in ready a we'll to lower in or frac and and building likely fourth, the see back the crew we'll DUCs, either completions rollover those of work on early bit year a late be more then 'XX. get little fourth a back to of activity probably

Scott Gruber

to Texas the D&C the remarks, starting prepared to particularly loosen equipment frac mentioned into some see and start migrate Eagle markets Got rig the deflation. it. from you in you see the the up? the additional more the then to Haynesville potential and And and Ford into Permian Are

Clay Gaspar

to about we mindset. X% 'XX. continued We've -- are deflation with 'XX we Scott, from baked that in

you feels our that would we to I a efficient seeing potential But a know you There's well. is think pressure a we at on more deflation. it's run as specifically reiterated an opportunities, really year range this could rig little our of pretty that and bit can near positive bit acceleration caution that capital continue more also rate of more completions, see we bit drilling, I on efficient to little what which guidance little capital a materializing we're put of like that number. why

of sure both to the the I make Now of to are bottom and news, opportunities. all this, line and accretive we're gains good deflation want the efficiency each drilling these on clear

our reiterating just still range good capital that I about So reiterate we're there. we are at want winning to and on are both sides. feel we where

Operator

Dingmann comes with question from next Truist. Neal Our

Neal Dingmann

guess. one for I Clay, Just you,

how mean, looks X laid Slide look looked plan -- we that too we 'XX it's start we quite when I'm seeing areas -- different when Delaware for I at But get good. those 'XX. that plan, it's are the just XXXX, versus the 'XX? going look at if about on Looking start far it play that plan, to at plan like maybe like talking wondering, out,

Clay Gaspar

the for thanks question. Neal, asking

now. reverting were we We pre same have back in that we about -- to are 'XX 'XX proportions the that are we

with the commensurate we Mexico ratio portfolio Delaware that's balance the so Basin of approximate that Texas, to to overall New of the have, rest And company. the

Mexico 'XX a about New XX% And as from XX% more of that bit inflection be to norm. overall Mexico, little to 'XX productivity. moved of was average so a the of little of was anomaly. well bit seen think New an able and in about roughly We little in the bit

little a we're say, what we is of doing I bit more, really beyond. forward 'XX rolling what kind and XXXX to state is steady back for expect for now and moving So would

Neal Dingmann

those. quickly Haven't we add about to you much are the And relatively the exit just maybe hear on on you either think secondly, one that. or again, of 'XX I those, Again, Eagle and say those for about would might love anything wonder as mean then you of We Anadarko same. on both when even think Ford. plays? either about should I remaining heard those too flattish? No. producing

Clay Gaspar

say roughly. would I Yes,

to there. We evaluate near-term opportunities will continue

continue depth inventory. to about We be of the excited

that ahead find inventory We to aren't really out continue our in current us of even models. reflected new things

the is to keep this And We're evaluating I really the kind an think to of screens both of continues kind excited. front that to your of us answer of list. always what So questions.

nearly the wells the we're leading that these years our in didn't ago, Remember, it's performance. it's -- couple A the specifically we're of seeing bringing just where Delaware online, today. because results screen

really bit always and those a it a how good to little all basins optimism away of operationally of couple that what's little ideas based fact high people our remain very in improve more portfolio bit just got in really chipping our lot a we've from coming So efficiently. a about of now, the smart at recoveries on the on years do up more

Operator

from question comes next Our with Wells Read Roger Fargo.

Roger Read

potentially earlier, to back think pay is or a like front, of trying on already asked little little terms comments in cash on think about of strong? down quarter debt need? the on sheet Is acquisition the about bit we make that come -- is to front about your and terms of does has a the build a I'd more either bit sense like been there of shareholders to here. Congrats repaying the should to just another opening cash little balance use something here uses from of in back it debt in cash given

Jeffrey Ritenour

committed Roger, we Jeff. debt maturities Yes, this next that the and have year. remain we upcoming this year Again, to is

it continue prices We us week-to-week, important we have, that quarter-to-quarter. optionality just in sheet the that whether acquisition given that that the and capacity to provides maintain from, this Rick wide with frankly, the business incremental our balance us opportunity, for It's within the find And day-to-day, repurchases be of can in swings it certainly or us frankly, we'll the will go believe have we as do, that balance on option commodity share a the to to we be that should an sheet. for strength volatility right described front, in lot stability. have that

balance there. see bit from to this we'll point the on But at and to to cash building then continue those to in sheet little things where maturities, we're going focus upcoming of time, handle go a

Roger Read

enough. Fair

to efficiencies, Slide are completion The on just -- the other efficiencies on come X. that question, efficiencies the, capital it, back call let's broadly

had What environment, -- say, from rates improvement? to would frac one? overall costs deflationary credit, think the of to let's the between about the a more it difference say kind placing or relative If within the lower rig you lower is a you important

Clay Gaspar

was far good materially. would But put in seeing a about feel about some roll more seen by category. -- pretty we're there's guide more push We where the of bit well come actually We've pipe. to bigger to I over highest 'XX our objective completions in but cost. that We costs deflation overall a little now. because we're pretty it's X, there, I steel would we're those ahead you're ticket. that probably the just at Between -- in Hopefully, the

mentioned bit the the line inflation, on capital I but very little efficiency me that hoping realistic I'm gains more guide. As that for earlier, I'm a also we make hold our have

Roger Read

just I question. could, wanted clarify to kind I If the of

for day of per So could a footage flat lower companies? kind which you lower more of per to if service directly the gains, about cost, it just like, efficiencies do you the into cost here? just day or Is basis I'm one services, more continued a efficiency lean thinking relative from footage example, cost think on aggressively

Clay Gaspar

itself, cost run we service the We're is. ground always with capabilities on numbers days own the based I spud on efficiencies, deflation, per that that's we and days cost head always think rig for best their the day market continuing there. we direction. continue to to great foot and The -- see somewhat pressing what TD. -- actual right the the to evaluate make providers inflation, -- I those opportunity,

best company So category, the pretty for the we're particular create opportunity our beholding line. objective bottom value one taking about to we're particular or most not one to

Operator

Kevin to Partners. MacCurdy turn now Energy Pickering with We

Kevin MacCurdy

Congratulations on quarter. a good

question year, does in XXXX? to maintenance guide but XXXX, the targeting are what ex small on level but follow-up of kind Is You your I full optionality of flat were initially new year resulting kind the oil growth. give trajectory, heading in it's early production new rate a this forward? this As still results for better know you

Clay Gaspar

but Yes. in question, say a to early I models. would it's mentioned model, XXXX, we talk have prior I good as a too little we certainly,

to and right We get always have internal looks reserve for 'XX, the 'XX, we then smarter.

which prior I publicly, expectations, up of expectations about continue don't So I years. what talked it would as to expect do in materially to haven't moves But now. our 'XX we're doing our they think we migrate internal

that's In then procedure our little is how resource folks, extract of a our I I'm doing. continue subsurface roll to I bit little production on more what expect my to little mind, the efficiently. bit building savvy something And smarter more about into part we in be always and to We're the we're magic the D&C do for be a kind this more operationally We excited overall. as a see move to teams and and what that is that of creative teams standard we efficient. this operating 'XX. on just expecting bit And always think

Kevin MacCurdy

investments successful monetization to you in of to What of catalyst assets guys for years, near-term the a be the those as value have midstream including And Great. over follow-up, you a made number any the Matterhorn. realize plans? would start

Richard Muncrief

what to get at. butts think right will, how have And continue differential, if midstream strategy our we we look need. that where up we commodity, and influence the time the always when to deliver that you clearly at our We'll we is we and making we're -- are the to sure that multiples

but And pretty we to close pulse monitor, will continue keep we'll something that. in come to and it's so try it on time, a due probably

you to anything else there? add Jeff, want

Jeffrey Ritenour

certainly it to and And as the support can on the Rick, the investments, cycle of be of evolution asset well, work said is kind I think you that. we of Rick needed projects tried as where No, and to of which we're that. to adverse we equity is function as are the some it opportunistic not to really a mentioned, where doing we've want well, with put those life

And they've more as little from governance mature, that mentioned, there situations time a want to usually, tends we Rick a are some to standpoint, look that assets have where likely as dissipate, but those becomes a we'll control, and sort that where as the in or bit our good about I dynamics move we're with market we and molecules. exit monetization. to have But consider hand, investments the working and some feel well sit served where us we of at today

Operator

with Johnson question Our comes Meade Rice. from Charles next

Charles Meade

lines number I there's reluctant this had you a feel that expect you we you should what extent along know quarter of the up I should you're commit Clay, questions this publicly. understand guys be And continue. reluctant to of to that bang to -- morning to

infrastructure and extent really was there's new you is, It there -- guys You're but that it well the probably pads And way. what to going producing cycle I'm lot helpful balance well constraints? So that higher my the -- easing well bound above performance be a that Delaware way when internally. different commit allocated in about reluctant of the understanding interaction question. of here's the constraints. talking in the a to question with that is But to these infrastructure XX% is it between and to a between you're the to try could constraints. But easing is there's lot for performance you the times trick

that the easing rates -- those And above so Delaware your is you to enabled highlighted pads? those that you've on industry X that deliver

Clay Gaspar

way, bit a that that's and it. talk our pursue some and And that's a by that bait asymmetric I'll objectives. else take of about think we're take of I'll the great of little out more always something I to beats -- question, operations, the to heck happy

adding talked X, about That the both we and things: Referring really productivity Rick completions prepared base. efficiencies. X on talk really base we outperformance Slide about components to that our, was well and in and back critical well. the And remarks, X as my then

was I productivity, bringing days was XX% with projects think outperformance really just XX% those more well XX% about and in was and associated of the forward less online, really constraints we historically. maybe about than As or uptime saw proportionate, about really the so 'XX overall

We're tuned way the the a X or to really incredibly There's midstream just those on constraints. not electrification, watch we prolific and in didn't of it's Now we that working any of And we're questions in all in the processing, of build-out, in to basin this very does the kind there's watch juggle on Permian buildout. what not world. resource. more disadvantages specifically, hottest seeing oil gotten But the We advantages highly X have dimensional chess categories, develop the Delaware. water, have say that. around that and we that's Jeff's gas.

continues play landing highlighted We number and of complication other is zones, as to evolve. the The that that larger Wolfcamp something to B probably specific a the role. will Delaware differential the

we needs. the about the in, that as that and also infrastructure need to roll changes So think to we

volumes about of doesn't anything yes, those infrastructure the of that And into do a we minimize We've to course going wells disposal we was, always percentages. back fees good over try very flaring there's few on our some gas. really because want We that incredibly then -- kind down. I something. certainly not want One push have asked the We're the are constraints? to thoughtful also don't last held paying reverse basically to systems. for categorically, not you drawn our way progress along We're just we say, and questions system pay those years of going would And made and of gains.

lot a performance on. happy and pleased the quarter. there's such on a with successful to really Really, So team's the be represent going team here to

Charles Meade

is the the And then When you new that a is quick well just that base? one Or wells wells? say clarification for follow-up. new brought new performance, XX% the of wells plus online, performance

Clay Gaspar

in I'm the into that wells, other that I about base performing forecast. separating for -- we It new base talked wells. new is are also had activities of outperforming baked what is wells XX% kind the that the the the the existing XX%

Operator

We to now Scott turn RBC. Hanold with

Scott Hanold

interesting the I'd sounds similarly any kind year the like targeted be but can through we course of in? the that this a pivoted same lot when of the to And in Clay, from a is next very on areas talk hear of in the high expect terms the And this the quite it rest spacing? on coming And are completions Permian, of in really it of bit Bakken color quarter too. grading. like what

Clay Gaspar

little we've well Basin ready and productivity the for harder 'XX, the loved infrastructure a was we time. pushed a for. probably In than the Scott, Williston long

again, that or accelerate the the of Basin And great improve down. latitude ready. a quite so asset not that in move to infrastructure slowed wells us benefit over a capital to franchise we just gives we've Delaware that have not that And that's efficiency, into

the and online. be John the are opportunities core of Elk the some And that you to all bring to Moose able so to until the basin stars needed we see aligned what on wait Bull North

or the baked consistency, ready basin first results the Again, on in the to some it and probably Again, rig about the into But back incredible being We've oil from year. for release of that that year the drill quality prime very will going it's to that we're some the asset, approach you'll wells, We're pushing the to there and actually plan. in running that probably prove next that a cut. core consistently another in rig weren't opportunity opportunity come when more available, got drilling see time. them it. take of forced into take Basin all going either next late than continues to the presents, out the XX that's Williston of what's bring wells quite rig, back rather

and out, pointed amount As to of from the valuable core business right organization. Rick approach that very is comes basin believe the of flow what our incredible that line we for cash bottom our the is

Scott Hanold

just but on then, that production, we to clarify So flat like should terms expect gyrations it should in quarter-to-quarter year-on-year, production? some be relatively in of

Clay Gaspar

would it's everything into right and in the I flow have a a growth more it others. for yes, this else some believe some roughly, doing. I say will bringing should have that's you I we're then Yes, quarters a disrupt certainly, Williston. while, again, absent some But will the in we asset, on little selective, are of peaks valley as visuals, and kind But bit it's pad in you as rollover doesn't approach the that hope some correct. and we're

Scott Hanold

what is would you're that locations upside locations? think then other in there the B. Permian, to you the add well? And How And turning is looking the that to zones focus to terms inventory Got are at beyond that the it. XX back Wolfcamp of identify that extensive as

Clay Gaspar

of it's Wolfcamp extends quarters an a different certainly part The interesting. the It a the drilled. on across Well, Basin. all the really the little the in was And of This kind about highlighting little talked there ago, success the in more area. way position Northeast our haven't obviously it's of We B we couple from a basin. bit Delaware less a as area that well. It's Thistle B. mature, was just B

produced have so-so, that I our expectations pretty B, moderate. wells and kind first of were were X the just the X think so there's

see these it try developing we're to as and of we significantly But modern and It's best thinking about completion put again, areas, looks really outperformed. like. kind wanted a on our what give

today, taking that excited And really we're so uplift. that the with about we're approach differential

is wells just really area. XX our The in Thistle

now B wells on reason competes that the of are The hunt and very opportunity. well, forward for we me, other more will capital this beyond basin for bringing is this in of other favorably continue inventory. highlighted XX. is investment the other areas we're have to Thistle in that today. the that is -- not We'll above We reflected those we our bringing and This excuse more upside as be that wells

Operator

final with Matthew TPH. question from comes Our Portillo

Matthew Portillo

Maybe a question for start. Clay to

constructive if Anadarko, have On ahead looking a like to more I thoughts XX the to updated bit the to It capital on price [indiscernible] environment. see opportunity down gas asset X And dropping in this what's sounds for accelerate more commodity to a good guess, in a the of was kind slowdown the then, price XX beyond drill given the set rigs environment to constructive environment? XXXX, the here. I any year? you curious potentially

Clay Gaspar

Dow. question. the got Thanks great a partner for with We've

that is make partner, with we're this we them. so coordination working good And something in we're that want to sure and being

you presented, I aligned is would would want the So very of nature the right accelerating. to partnership. appreciate be aligned, I value creation I the is if been we've my ahead certainly get tell to in not belief just the continue the but What say partnership, of can don't opportunity myself. from that we

be is really our -- I ability what just Now we for challenging. at into dollars Delaware tell portfolio not looking that an Basin just the we and it's forward continues have curve, I'm the see balanced to that's the fully Again, the with being the to to don't carry to it you gas area have, rewarded. need pretty company, push

this these midstream has well actually commodity, Now our we pretty that that still with Dow done but said, know doing value value. for most the really returns. A creating are and Wolfcamp the well, extract Not we're can to that really carry the with team on we work

the Dow we area, rigs to and with we're think in from that So to we'll great both continue above well for beyond X JV benefited beyond and team, those at then very JV enjoy partnership, and Dow it. potentially I continue even today. the extend look run Again, opportunities where working

Matthew Portillo

strategy able just any an you maybe gas might just be marketing a and thinking question perspective? longer-term on global LNG of molecules front. on a on you're gas us thoughts the Perfect. Delfin of And about how and on the your provide then the Curious to if update updated perspective kind

Jeffrey Ritenour

market without updates And new a to question, what past. Matt, as including it Yes, gas Jeff. want LNG the with this the continues molecules. us that with relates conversations water and to to to continue as the have But the earlier, -- having on Delaware the portion mentioned get as exposure we to exposure different we're That I from relates as heard mentioned. progress. the to is our No Delfin, gas, the the Gulf to you've to in of beyond Yes, on some gas Coast. we LNG, Specific interest to some front. we're getting active both oil significant in folks, in it you gas

Some that get and of demand away the of the Louisiana the the today us built into market. incremental future. Katy lot of kind that a LNG from that into into resides that capacity got Katy hub will We've where goes out takes

well feel parties. incremental And and we're having that active take so of conversations to advantage with like positioned we demand multiple again,

Scott Coody

comes anything Thank interest later a it I you, we've day, out If day. please any time. through looks -- Well, queue everyone's the right. the to please like feel team else to Investor made today. and in reach at the on questions. free up have Relations It Devon feel All appreciate good of

Operator

today's to participation. concluded. for We'd gentlemen, and you your thank call Ladies like has now

You lines. disconnect may your now

Devon Energy (DVN) 2 May 242024 Q1 Earnings call transcript