Devon Energy: Prized Production ($BNO $DVN $USO)
We are big cheerleaders for Devon Energy. They have worked really hard to gain momentum. Currently, they are majorly increasing oil production. The details are key! So, here they are from Dividend Kings.
The company recently released plans to increase its capital expenditures this year by over $1 billion. The money is going to be used to increase exploration and leasehold acquisitions in a play to expand crude oil production. Previously, the company had planned to spend $5.1-$5.5 billion in 2012 on improvements with only 10% allocated to oil and natural gas liquid exploration. Of the $1 billion, Devon is planning on investing $350 million in its Cline Shale play, $500 million for an undisclosed onshore target in the US, and the rest on other oil and gas liquid investments. Devon is estimating that it will grow production by 6%-8% over the next four years, with crude and liquid production growing by 16%-18%. Devon increased total liquids production by over 20% in the fourth quarter of 2011 alone and is on pace to continue.
Devon is also capitalizing on its current reserve pipeline. It recently received close to $2.2 billion from Sinopec International Petroleum Exploration in exchange for a one-third interest in five of its new venture plays in shale deposits across the western portion of the US.
Like the details? They are definitely putting their best foot forward and putting a lot of money into this increased production. Follow this company, because it will be worth it!
Quotes taken from report by Dividend Kings, Read the entire article here.
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