Despite its name, independent oil and gas producer Devon Energy puts its energy into oil and gas fields far from England's southwestern coast. It focuses on exploration and production assets in Oklahoma, Texas, Wyoming, and western Canada. In 2013 Devon Energy reported proved reserves of almost 3 billion barrels of oil equivalent. Devon Energy produces about 2.4 billion cu. ft. of of gas equivalent a day (3% of all the gas consumed in North America). It also has midstream and marketing assets. The company is the largest producer and lease holder in the Barnett Shale (Texas) and is looking to replicate its success there in other unconventional plays.

Geographic Reach

In 2013 the company's US operations included the Anardarko Basin, Barnett Shale, Cana-Woodford Shale, Permian Basin, Gulf Coast/East Texas, Rocky Mountains, Granite Wash, and Mississippian. Its Canadian assets included Oil Sands and the Lloydminster heavy oil operations.


The Anadarko Basin has rapidly emerged as one of the most economic shale plays in North America. Devon Energy is the largest leaseholder and the largest producer in the Anadarko Basin, and increased its production there by 14% in 2013. In 2014 the company announced plans to drill 95 wells there.

The Barnett Shale, a non-conventional reservoir, producing natural gas, NGLs and condensate, is the company's  largest property both in terms of production and proved reserves. Devon Energy'd leases are located in Denton, Johnson, Parker, Tarrant, and Wise counties in north Texas.

Sales and Marketing

Devon Energy sells its production under both long-term and short-term agreements at prices negotiated with third parties. In Canada, the national government and the governments of Alberta, British Columbia, and Saskatchewan regulate the volume of natural gas that may be shipped from those provinces.

Financial Performance

Devon Energy's revenues have been restated due to the divestiture its international operations. In 2013 the company’s revenues grew by 9% due to a 15% increase in liquids production, partially offset by a 7% decline in gas production. Oil production was the largest driver of the increase, accounting for 85% of the higher sales. Largely due to continued development of properties in the Permian Basin, the Mississippian-Woodford Trend and the Anadarko Basin, oil sales increased $531 million. Bitumen (from oil sands) sales increased $65 million due to development of Jackfish thermal heavy oil projects in Canada. Additionally, NGL sales grew by $181 million as a result of continued drilling in the liquids-rich gas portions of the Barnett Shale and the Anadarko Basin.

After experiencing two continuous years of profits, in 2012 company reported net loss of $206 million, due to higher operating expenses and asset impairment charges reflecting reduced proved reserve values. In 2013 Devon Energy posted a net loss of $20 million due to higher operating and income tax expenses.

In 2013 the company’s operating cash inflow increased to $5.4 billion (from $4.96 billion in 2012) primarily due to higher commodity prices and production growth, partially offset by higher expenses.


Once active in major oil patches worldwide such as Azerbaijan, Brazil, and China, in the late-2000s the company decided to focus on safer and increasingly productive unconventional onshore exploration opportunities (shales and oil sands) in North America. As a result, Devon Energy sold all of its international properties for about $10 billion.

It is pursuing a series of measures to increase capital and reduce debt.

To raise cash, in 2014 Devon Energy sold its conventional liquids-rich gas assets in Western Canada, as well as six gas plants and related infrastructure, to Canadian Natural Resources for C$3.1 billion.

In 2013 it combined all of its midstream assets with the assets of the former Crosstex Energy, Inc. and Crosstex Energy, L.P. to form EnLink Midstream, LLC and EnLink Midstream Partners, LP. The creation of EnLink improves the diversification and growth of midstream holdings, while preserving Devon’s capital for its core business.

That year the company agreed to sell all of its non-core US oil and gas properties to Linn Energy for $2.3 billion. The agreement covers Devon Energy’s remaining assets targeted for divestiture and includes properties in the Rockies, onshore Gulf Coast, and Mid-Continent regions of the US. Devon Energy is now concentrated in some of the most attractive North America resource plays, with liquids expected to approach 60% of production by the end of 2014 and multi-year oil production growth projected to be in excess of 20%.

Devon Energy is looking to build on this momentum with an emphasis on superior execution of its capital program. The company’s activity will focus on its highest rate-of-return oil development opportunities which are expected to drive a 35% year-over-year increase in companywide oil production from improved property bases. This will be led by a 75% year-over-year increase in US oil production, driven by strong growth in the Permian Basin and Eagle Ford.

In a cost savings move, in 2013 the company closed its office in Houston and consolidated its US personnel into a single operations group at its corporate headquarters in Oklahoma City.

Mergers and Acquisitions

Growing its US shale portfolio, in 2014 the company agreed to acquire GeoSouthern Energy’s assets in the Eagle Ford oil play (53,000 barrels of oil equivalent per day and 82,000 net acres) for $6 billion.

In 2014 the company agreed to acquire 50,000 net acres and associated production primarily in the Cana-Woodford Shale for $249 million. The acquired properties represent half of the interests Cimarex Energy agreed to acquire in a cash transaction. Devon’s portion of the agreed acquisition includes current production of 5,800 barrels of oil equivalent per day (37% liquids) and proved reserves of 23 million barrels of oil equivalent. These assets directly overlap Devon Energy's existing core Cana position and expands its exposure to other western Oklahoma oil and gas plays.


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333 W Sheridan Ave
Oklahoma City, OK 73102-5015
Phone: 1 (405) 235-3611
Fax: 1 (405) 552-4550


  • Employer Type: Public
  • Stock Symbol: DVN
  • Stock Exchange: NYSE
  • Vice Chairman,President, and CEO: John Richels
  • Chairman: J. Larry Nichols
  • Vice Chairman,President, and CEO: John Richels

Major Office Locations

  • Oklahoma City, OK

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