-- Devon Energy (DVN) reported Q1 earnings Tuesday with oil production averaging 387,000 barrels of oil equivalent per day, accounting for 46% of total production and reaching the top end of guidance.
Total production averaged 833,000 boe/d for the quarter ended March 31, in line with guidance.
The upstream energy firm brought 110 operated wells online during the quarter, driven by a concentrated development program in the Delaware Basin.
The company expects Q2 oil production between 389,000 barrels per day and 395,000 b/d, while total production is projected between 851,000 boe/d and 868,000 boe/d.
Devon targets total capital spending of $875 million to $925 million in Q2.
The company is advancing its business optimization plan, targeting $1 billion in pre-tax cash flow improvements, driven by higher production and lower costs, Devon added.
Devon said it is expanding commercial opportunities with two long-term natural gas marketing agreements, including a 10-year deal to supply 50 million cubic feet per day to LNG export markets starting in 2028.
The firm also signed a separate seven-year agreement to deliver 65 MMcf/d for in-basin power generation starting the same year.
Devon is progressing its merger with Coterra Energy (CTRA), which is expected to create a combined company with over 1.6 million boe/d of production.