Business UpdateJun 9, 2026, 04:57 PM
Devon Energy Sets 2026 Outlook: 1.38M BOE/d Production, $4.9B Capex
AI Summary
Devon Energy provided an updated outlook for the combined company following its merger with Coterra Energy. The company expects 2026 production to average 1.380 million barrels of oil equivalent per day, with capital spending projected at approximately $4.9 billion, primarily focused on the Permian Basin. Devon aims to return up to 70% of free cash flow to shareholders through a fixed dividend and an $8 billion share repurchase program. The company also plans to retire $1.25 billion of debt in 2026 and accelerate synergy capture to $1.0 billion annually by year-end 2027.
Key Highlights
- 2026 production outlook: 1.380 million BOE/d, including 500,000 bbl/d oil.
- Full year 2026 capital spending expected to total approximately $4.9 billion.
- Over 60% of capital investment allocated to the Permian Basin.
- Targeting return of up to 70% of free cash flow to shareholders.
- Quarterly fixed dividend of $0.32 per share and $8 billion share repurchase authorization.
- Plans to retire $1.25 billion of debt in 2026.
- Expects to capture $600 million in synergies in 2027.
- On track to deliver $1.0 billion of annual pretax synergies by year-end 2027.
Price Impact
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