Devon Energy

"Devon Corporation" redirects here. For the fictional company in the Pokémon games, see Hoenn § Devon Corporation.
Devon Energy Corporation
Public company
Traded as NYSE: DVN
S&P 500 Component
Industry Petroleum industry
Founded 1971 [1]
Founder John Nichols
Headquarters Oklahoma City, Oklahoma
Key people
J. Larry Nichols, Executive Chairman
Dave Hager, Chief Executive Officer
Products Petroleum
Natural Gas
Natural Gas Liquids
Production output
600 thousand barrels of oil equivalent (3,700,000 GJ) per day [2]
Revenue Decrease US$13.145 billion (2015)[1]
Decrease -US$20.727 billion (2015)[1]
Decrease -US$15.203 billion (2015)[1]
Total assets Decrease US$29.532 billion (2015)[1]
Total equity Decrease US$10.989 billion (2015)[1]
Number of employees
6,600, including 1,400 employed by EnLink (2015)[1]

Devon Energy Corporation is an independent natural gas, natural gas liquids, and petroleum producer focused on onshore exploration and production in North America. The company is headquartered in the 50-story Devon Energy Center, completed in 2012, in Oklahoma City, Oklahoma.

Current operations

In 2015, the company ranked #152 on the Fortune 500[3]


As of December 31, 2015, the company had 2.182 billion barrels of oil equivalent (1.335×1010 GJ) in proved reserves, of which approximately 75% was in the United States and 25% was in Canada.[1]

It is one of the largest energy producers in the Barnett Shale, where it controls 600,000 acres.[4]

Of the company's total proved reserves as of December 31, 2015, 39% were in the Barnett Shale, 25% were heavy oil in Alberta, Canada, and 12% were in the STACK formation in Oklahoma.[1]


The company expects to produce approximately 600 thousand barrels of oil equivalent (3,700,000 GJ) per day in 2016.[1]

In the fourth quarter of 2015, the company produced 66 thousand barrels of oil equivalent (400,000 GJ) per day from the Delaware Basin, 70 thousand barrels of oil equivalent (430,000 GJ) per day from the STACK Formation in Oklahoma, 111 thousand barrels of oil equivalent (680,000 GJ) per day from the Eagle Ford shale, 126 thousand barrels of oil equivalent (770,000 GJ) per day from heavy oil, and 175 thousand barrels of oil equivalent (1,070,000 GJ) per day from the Barnett Shale.[1]


Devon was founded in 1971 by John Nichols and his son, J. Larry Nichols. It became a public company in 1988, and expanded through mergers and acquisitions.[5]

In 2000, the company was added to the S&P 500 Index.[6]

In 2012, the company completed construction of its current headquarters, the 50-story Devon Energy Center in Oklahoma City, Oklahoma and closed its Houston office, which was located in the Allen Center in Downtown Houston.[7]

In 2016, Devon announced plans to lay off 1,000 employees, including 700 in Oklahoma City, as part of a cost-cutting effort due to low prices of natural gas, natural gas liquids, and oil.[8] The company reduced its drilling budget by 75 percent. Earlier in 2016, the company hired the Jefferies Group investment bank to sell assets to reduce debt. The company hopes to raise $2 billion to $3 billion from the sales. Devon also cut its quarterly dividend from 24 cents to 6 cents per share.[4]

Mergers and 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 [9]
2 1996 Kerr-McGee $250 million North American onshore oil and gas properties, 370,000 net acres of undeveloped drilling rights [10]
3 1998 Northstar Energy $750 million Oil and gas properties in Canada [11]
4 1999 PennzEnergy $2.2 billion Oil and gas properties in the Gulf Of Mexico [12]
5 2000 Santa Fe Snyder $2.35 billion [6]
6 2001 Anderson Exploration $4.6 billion Canadian properties [13]
7 2002 Mitchell Energy $3.5 billion Properties in the Barnett Shale of Texas [14]
8 2003 Ocean Energy $5.3 billion Deepwater sites in the Gulf of Mexico [15]
9 2006 Chief Oil and Gas $2.2 billion Barnett Shale leasehold [16]
10 2014 GeoSouthern Energy $6.1 billion Eagle Ford assets [17]
11 2014 Crosstex Energy Merger of midstream assets to form EnLink Midstream, LLC [18]
12 2015 Felix Energy $2.5 billion Assets in the Powder River Basin & Anadarko Basin [19]

Legal Issues

Environmental record

In October 2011, the company stated that its efforts to reduce greenhouse gas emissions have resulted in company-wide emission reductions of 31 billion cubic feet of methane since 1990.[20]

Shareholders have introduced several resolutions that would require the company to monitor its effect on climate change[21] and to disclose its lobbying activity against regulations to prevent climate change.[22]


The company is a member of the Western Energy Alliance, a lobbying group that represents oil and gas drillers.[23]

In the third quarter of 2014, just before the midterm elections, Devon CEO J. Larry Nichols made a $136,000 contribution to the Republican "Targeted State Victory" committee.[24]

In 2014, an investigation by the New York Times uncovered that a three-page letter from Oklahoma's Attorney General Scott Pruitt to the U.S. Environmental Protection Agency, bluntly accusing regulators of grossly overestimating the amount of air pollution caused by drilling of new natural gas wells, was actually written by an attorney for Devon. The investigation found that "attorneys general in at least a dozen states are working with energy companies and other corporate interests, which in turn are providing them with record amounts of money for their political campaigns, including at least $16 million this year."[25]

In 2015, Devon CEO J. Larry Nichols agreed to lead the energy steering committee of Florida Senator Marco Rubio. Nichols stated that "excessive regulation squashes" energy innovation. Nichols also made a $50,000 contribution to the super PAC supporting Marco Rubio.[26]

Awards and recognition

In 2015, the company was ranked #38 among the best companies to work for by Fortune Magazine and was noted for its local community involvement.[27]


  1. 1 2 3 4 5 6 7 8 9 10 11 Devon Energy Corporation 2015 Form 10-K Annual Report
  2. "Devon Energy Reports Fourth-Quarter and Full-Year 2015 Results; Provides 2016 Capital and Production Outlook". Business Wire. February 16, 2016.
  3. "Devon Energy #152". Fortune Magazine.
  4. 1 2 Baker, Max B. (17 February 2016). "Devon Energy cutting 1,000 jobs, slashing dividend". Star-Telegram (Fort Worth). Retrieved 20 February 2016.
  5. Devon Energy: History
  6. 1 2 "Devon Energy and Santa Fe Snyder Complete Merger" (Press release). PRNewswire. August 29, 2000.
  7. Pulsinelli, Olivia. "Devon Energy to close Houston office, will affect 500 employees." Houston Business Journal. Thursday October 11, 2012. Retrieved on October 14, 2012.
  8. Wilmoth, Adam (February 16, 2016). "Devon Energy to lay off 700 in Oklahoma City". NewsOK. Retrieved February 17, 2016.
  9. "Hondo Oil Offer". New York Times. February 29, 1992.
  10. "Devon Energy and Kerr-McGee transaction completed". Alexander's Gas & Oil Connections. December 31, 1996.
  11. "Devon Energy and Northstar Energy to Combine: US$2 Billion Oil and Gas Company Would be Created" (Press release). PRNewswire. June 29, 1998.
  12. "Devon Energy and PennzEnergy Announce Completion of Merger" (Press release). PRNewswire. August 17, 1999.
  13. "Devon Energy to Acquire Anderson Exploration and Become North America's Largest Independent Producer of Oil and Natural Gas" (Press release). PRNewswire. September 4, 2001.
  14. "Devon Energy Completes Acquisition of Mitchell Energy" (Press release). PRNewswire. January 24, 2002.
  15. "Devon Energy and Ocean Energy Complete Merger; Creating Largest U.S. Independent Oil and Gas Producer" (Press release). PRNewswire. April 25, 2003.
  16. "Devon Energy Completes Acquisition of Chief Holdings; Boosts Activity in the Barnett Shale" (Press release). PRNewswire. June 29, 2006.
  17. "Devon Energy Completes Acquisition of Eagle Ford Assets from GeoSouthern Energy" (Press release). PRNewswire. February 28, 2014.
  18. "Devon Energy and Crosstex Energy to Create New Midstream Business" (Press release). Business Wire. October 21, 2013.
  19. "Devon Energy Sharpens Focus on Core Assets" (Press release). Business Wire. December 7, 2015.
  20. "What is Natural Gas STAR?" (PDF). Environmental Protection Agency. October 2011.
  21. Feder, Barnaby J. (27 February 2004), "Funds Want Oil Companies To Report On Climate", New York Times, retrieved 21 March 2015
  22. "Shareholders ask oil producers for climate lobbying disclosure". Corporate Secretary. January 11, 2016.
  23. "Western Energy Alliance".
  24. Choma, Russ (7 October 2014). "Super JFC Donors Emerge in Third Quarter". Open Secrets. Retrieved 23 October 2014.
  25. Lipton, Eric (6 December 2014). "Energy Firms in Secretive Alliance With Attorneys General". The New York Times. Retrieved 20 February 2016.
  26. "Fracking Pioneer Agrees to Guide Energy Policy for Rubio". Bloomberg L.P. February 22, 2016.
  27. "Devon Energy". Fortune Magazine.

Further reading

External links

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