By Katherine Hamilton
Devon Energy shares climbed after the company said it expects to be more efficient this year than was previously expected and that its wells are producing more.
The stock rose 10% to $38.45 on Wednesday, putting it on track for its largest percent increase since May 2022.
Devon's 2025 plan was more capital efficient than many analysts expected, J.P. Morgan analysts led by Arun Jayaram said. The company plans to spend $3.8 billion to $4 billion--below analysts' forecast of $4.1 billion--and produce 805,000 to 825,000 barrels of oil a day. Analysts were guiding for 813,000 barrels a day.
Devon also beat expectations with its fourth-quarter earnings and revenue. Its Rockies and Eagle Ford sites were more productive than expected, it said.
The Oklahoma City company plans to put more than half of its 2025 expenditures into its highest-producing site, Delaware Basin, where it is conducting a 14-rig drilling project. At Delaware, Devon expects to turn 250 to 270 wells from drilling to production this year.
Write to Katherine Hamilton at katherine.hamilton@wsj.com
(END) Dow Jones Newswires
February 19, 2025 12:03 ET (17:03 GMT)
Copyright (c) 2025 Dow Jones & Company, Inc.
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