The multi-year transformation of Okla. City-based Devon Energy is nearly complete—and shareholders like what they see. Three years ago, this independent faced the toughest decisions any company has to make when the writing’s on the wall. For Devon, this would include layoffs, asset sales, and slashed dividends to regain its foothold and survive.

Devon Energy

Devon Energy Corporation is a leading independent oil and natural gas exploration and production company. Devon’s operations are focused onshore in the United States.

www.devonenergy.com

But survive it has.

RMR is following news from Devon, which just announced its 3Q earnings results. Total net production increased 19% from the same period in 2018, averaging 148,000 Bbls of oil per day and exceeding the company’s expectations. Corporate costs decreased. Operating cash flow increased 22% to $597 million compared to the quarter before, which funded all 3Q capital requirements and still left $56 million in free cash flow. Devon also completed $550 million of share repurchases, returning $35 million in quarterly dividends to shareholders.

As a final step to that transformation back in February this year, Devon announced it would part ways with its Canadian assets to focus exclusively on production in the Delaware, Powder River, Eagle Ford and STACK. CEO David Hager also made several projections at the time that caught the ear of Wall Street.  During a year when equity lenders have shifted their mindsets from “Here’s the money!” to “Where’s the money?”, Hager and Devon have been hellbent for leather to check off every necessary box to ensure its ultimate survival and a return to prosperity.

Oh, and in case you’re wondering, Devon sold its Canadian assets for $2.8 billion in May. Congrats all around, Devon. That’s how you do it.

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