Devon Energy

Devon Energy Corporation is an American energy company engaged in hydrocarbon exploration in the American market. It is organized in Delaware and its corporate operative headquarters are in the 50-story Devon Energy Center in Oklahoma City, Oklahoma. Its primary operations are in the Barnett Shale, STACK Formation in Oklahoma, Delaware Basin, Eagle Ford Group shale, and the Rocky Mountains.[1]

"Devon Corporation" redirects here. For the fictional company in the Pokémon games, see Hoenn § Devon Corporation.
Devon Energy Corporation
TypePublic company
NYSE: DVN
S&P 500 Index component
IndustryPetroleum industry
Founded1971 (1971)
FounderJohn Nichols
J. Larry Nichols
HeadquartersDevon Energy Center
Oklahoma City, Oklahoma, United States
Key people
David A. Hager, CEO & President
Jeffrey L. Ritenour, CFO
ProductsPetroleum
Natural gas
Natural gas liquids
Production output
327 thousand barrels of oil equivalent (2,000,000 GJ) per day (2019)
Revenue $6.220 billion (2019)
-$0.355 billion (2019)
Total assets $13.717 billion (2019)
Total equity $5.920 billion (2019)
Number of employees
1,800 (2019)
Websitewww.devonenergy.com
Footnotes / references
[1]

The company is ranked 297th on the Fortune 500.[2] In the 2019 Forbes Global 2000, Devon Energy was ranked as the 627th -largest public company in the world.[3]

As of December 31, 2019, the company had proved reserves of 757 million barrels of oil equivalent (4.63×109 GJ).[1]

History

Devon was founded in 1971 by John Nichols and his son, J. Larry Nichols.[4]

In 1988, the company became a public company via an initial public offering.[4]

In August 2000, the company was added to the S&P 500 Index.[5]

In 2004, Devon was one of several companies in the petroleum industry for which shareholder resolutions were introduced that would have required the companies to monitor their effects on climate change.[6]

In August 2008, co-founder John Nichols died.[4]

In March 2010, the company sold assets in Brazil, Azerbaijan, and the Gulf of Mexico to BP for $7 billion.[7]

In October 2012, the company completed construction of its current headquarters, the 50-story Devon Energy Center in Oklahoma City, Oklahoma and closed its office in the Allen Center in Downtown Houston.[8]

In April 2014, the company sold its conventional assets in Canada to Canadian Natural Resources for C$3.125 billion.[9]

In June 2014, the company sold assets to Linn Energy for $2.3 billion.[10]

In August 2015, Dave Hager was named president and chief executive officer of the company.[11]

In February 2016, Devon announced plans to lay off 1,000 employees, including 700 in Oklahoma City, and cut its dividend as part of a cost-cutting effort due to low prices of its products.[12][13]

In 2017, the company sold its Lavaca County assets in the Eagle Ford.[14]

In June 2019, the company sold its assets in Canada to Canadian Natural Resources for CAD $3.8 billion.[15][16]

In November 2019, the company almost capped a blowout at a natural gas well, which prompted authorities to seal off thousands of acres of land near the Eagle Ford Shale towns of Yorktown and Nordheim. Crews were able to install a capping stack on the well to reduce natural gas flowing from the well.[17]

In September 2020, the company announced it will acquire WPX Energy, Inc. for $2.56 billion.[18] The transaction closed in January 2021.

Acquisitions
# Year Company Price Description of Assets Ref(s).
1 1992 Hondo Oil and Gas $122 million Oil and gas reserves and seven natural gas processing plants [19]
2 1996 Kerr-McGee $250 million North American onshore oil and gas properties, 370,000 net acres of undeveloped drilling rights [20]
3 1998 Northstar Energy $750 million Oil and gas properties in Canada [21]
4 1999 PennzEnergy $2.2 billion Oil and gas properties in the Gulf Of Mexico [22]
5 2000 Santa Fe Snyder $2.35 billion [5]
6 2001 Anderson Exploration $4.6 billion Canadian properties [23]
7 2002 Mitchell Energy $3.5 billion Properties in the Barnett Shale of Texas [24]
8 2003 Ocean Energy $5.3 billion Deepwater sites in the Gulf of Mexico [25]
9 2006 Chief Oil and Gas $2.2 billion Barnett Shale leasehold [26]
10 2014 GeoSouthern Energy $6.1 billion Eagle Ford assets [27]
11 2014 Crosstex Energy Merger of midstream assets to form EnLink Midstream, LLC [28]
12 2015 Felix Energy $2.5 billion Assets in the Powder River Basin & Anadarko Basin [29]
13 2021 WPX Energy $2.56 billion [18]

Political activity

Devon contributed over $1 million in each of the last 3 U.S. election cycles, almost entirely to organizations and individuals affiliated with the Republican Party.[30] In 2016, the company contributed $750,000 to the Senate Leadership Fund, whose goal is to protect the Republican majority in the United States Senate. It also gave $500,000 to the Congressional Leadership Fund, whose goal is to protect the Republican majority in the United States House of Representatives.[31]

Devon and its lobbyists have been noted to have close ties to government officials. In 2014, an investigation by The New York Times uncovered that a three-page letter signed by Scott Pruitt, then the Attorney General of Oklahoma, to the United States Environmental Protection Agency advocating for a relaxing of laws related to hydraulic fracturing was actually written by lobbyists for Devon Energy and not by Pruitt.[32]

In 2015, a shareholder resolution was introduced that would have required the company to disclose its lobbying activity against regulations to prevent climate change. The resolution received votes of support by approximately 20% of shareholders.[33]

References
  1. "Devon Energy Corporation 2019 Form 10-K Annual Report". U.S. Securities and Exchange Commission.
  2. "Fortune 500: Devon Energy". Fortune.
  3. "Forbes Global 2000". Retrieved 31 October 2020.
  4. Miller, Stephen (August 9, 2008). "Former Accountant Worked to Build Devon Energy Into Industry Giant". The Wall Street Journal.
  5. "Devon Energy and Santa Fe Snyder Complete Merger" (Press release). U.S. Securities and Exchange Commission. August 29, 2000.
  6. Feder, Barnaby J. (February 27, 2004). "Funds Want Oil Companies To Report On Climate". The New York Times.
  7. "BP pays Devon Energy $7bn for Brazilian, Azeri, and Gulf of Mexico assets". The Daily Telegraph. Reuters. March 11, 2010.
  8. Pulsinelli, Olivia (October 11, 2012). "Devon Energy cutting 1,000 jobs, slashing dividend". American City Business Journals.
  9. "Devon Energy Completes Sale of Canadian Conventional Assets" (Press release). Business Wire. April 2, 2014.
  10. "LINN Energy Announces $2.3 Billion Acquisition of Assets from Devon Energy" (Press release). GlobeNewswire. June 30, 2014.
  11. "Devon Energy Completes Leadership Transition as Board of Directors Elects Dave Hager New President and CEO, Succeeding Retiring John Richels" (Press release). Business Wire. August 3, 2015.
  12. Wilmoth, Adam (February 16, 2016). "Devon Energy to lay off 700 in Oklahoma City". The Oklahoman.
  13. Baker, Max B. (February 17, 2016). "Devon Energy cutting 1,000 jobs, slashing dividend". Fort Worth Star Telegram.
  14. "Devon Energy Announces $340 Million of Non-Core Asset Sales" (Press release). Business Wire. July 31, 2017.
  15. "Devon Energy Completes Sale of Canadian Business" (Press release). Globe Newswire. June 27, 2019.
  16. "Devon Energy Announces Final Step to Complete Transformation to U.S. Oil Growth Company" (Press release). Business Wire. February 19, 2019.
  17. Chapa, Sergio (November 12, 2019). "Devon Energy one step away from capping blowout in DeWitt County". Houston Chronicle.
  18. "Shale producer Devon Energy to buy peer WPX Energy for $2.56 billion". 2020-09-28. Retrieved 2020-09-28.
  19. "Hondo Oil Offer". The New York Times. February 29, 1992.
  20. Vandewater, Bob (January 1, 1997). "Devon Obtains Kerr-McGee Oil, Gas Properties". The Oklahoman.
  21. "Devon Energy and Northstar Energy to Combine: US$2 Billion Oil and Gas Company Would be Created" (Press release). U.S. Securities and Exchange Commission. June 29, 1998.
  22. "Devon Energy and PennzEnergy Announce Completion of Merger" (Press release). U.S. Securities and Exchange Commission. August 17, 1999.
  23. "Devon Energy to Acquire Anderson Exploration and Become North America's Largest Independent Producer of Oil and Natural Gas" (Press release). U.S. Securities and Exchange Commission. September 4, 2001.
  24. "Mitchell Energy & Development Corp acquired by Devon Energy Corp". TechCrunch.
  25. WILMOTH, ADAM (April 26, 2003). "Devon completes $5.3 billion merger with Ocean Energy; More than 98 percent approve companies' deal". The Oklahoman.
  26. "Devon acquiring Barnett shale acreage from Chief". Oil & Gas Journal. May 8, 2006.
  27. "Devon Energy Completes Acquisition of Eagle Ford Assets from GeoSouthern Energy" (Press release). Business Wire. February 28, 2014.
  28. "Devon Energy and Crosstex Energy to Create New Midstream Business" (Press release). Business Wire. October 21, 2013.
  29. "Devon Energy Sharpens Focus on Core Assets" (Press release). Business Wire. December 7, 2015.
  30. "Devon Energy: Total Contributions by Party of Recipient". Center for Responsive Politics.
  31. "Devon Energy: Profile for 2016 Election Cycle". Center for Responsive Politics.
  32. Lipton, Eric (December 6, 2014). "Energy Firms in Secretive Alliance With Attorneys General". The New York Times.
  33. Bogoslaw, David (January 11, 2016). "Shareholders ask oil producers for climate lobbying disclosure". Corporate Secretary.
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