Devon Energy

"Devon Corporation" redirects here. For the fictional company in the Pokémon games, see Hoenn § Devon Corporation.

Devon Energy Corporation is an energy company engaged in hydrocarbon exploration in the United States. 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, and the Rocky Mountains.[1]

In 2023 the company ranked 216th on the Fortune 500[2] and 445th on the Forbes Global 2000.[3]

As of December 31, 2021, the company had proved reserves of 1,625 million barrels of oil equivalent (9.94×109 GJ), of which 44% was petroleum, 27% was natural gas liquids, and 29% was natural gas.[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.[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]

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 [18]
2 1996 Kerr-McGee $250 million North American onshore oil and gas properties; 370,000 net acres of undeveloped drilling rights [19]
3 1998 Northstar Energy $750 million Oil and gas properties in Canada [20]
4 1999 PennzEnergy $2.2 billion Oil and gas properties in the Gulf of Mexico [21]
5 2000 Santa Fe Snyder $3.35 billion Oil and gas properties in the Permian Basin, Rocky Mountains, and the Gulf of Mexico [5][22]
6 2001 Anderson Exploration $4.6 billion Oil and gas properties in Canada [23]
7 2002 Mitchell Energy $3.1 billion Oil and gas 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 leaseholds [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 Oil and gas properties in the Powder River Basin and Anadarko Basin [29]
13 2021 WPX Energy $2.56 billion Oil and gas properties in the Williston Basin and the Permian Basin [30]
14 2022 Validus Energy $1.8 billion Eagle Ford assets [31]

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.[32] 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.[33]

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.[34]

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.[35]

References

  1. ^ a b c "Devon Energy Corporation 2021 Form 10-K Annual Report". U.S. Securities and Exchange Commission.
  2. ^ "Fortune 500: Devon Energy". Fortune.
  3. ^ "Forbes Global 2000". Forbes.
  4. ^ a b c Miller, Stephen (August 9, 2008). "Former Accountant Worked to Build Devon Energy Into Industry Giant". The Wall Street Journal.
  5. ^ a b "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-2rele&/claa">"D"a> ohFa0d0eaciteo"> "xt" hwww1rTgy-Announces-340-Million-Non-Core-Assaric3"/2017iro1sic=rebrei>nrc Ss1nre>ntgrDevon Energyo-Nor1ionrrgy-AgrDero1sic3"-Millevoaric.5 DilC3"lliona8Anl2ASs1nre>ntgr-cit/b>ohFa0oDerr1Agrre&/clt">-3"S-cit-.ns="ecate_ibkrcetextcey-Anlur17iel="2Srsl,iocseEnergyoo-roprs1nre>ntgrDevon-roprs1l"aiel="mw-de-rolssprecrDevone_ /"Fs1irol:ee9el="mw-de-rolssprecrD1siusc-ae"n msewkre/tih,ierspre/tDe_tirocse_ibSs1nre>ntgr1nre>ntgrDevoDe"r1-ntgrDevo-e/b>o-roprs1l"aiel="mDero1si5 DilC imri"iaiel="mw-den-Corere/tihSrlC imri"iaiel="mc-an EnenSrlC imri"re2 t+ia29lC imri"iaiel="mc-an 0"mc-rsousicro"aonl2ASs1nre eioe rwi1si"ao/si"acnsDevnscrc e)dlC uprfd1rc SsiC.CdnSrlursc3