Devon Energy expects to produce 1.38 million boepd in 2026 after Coterra's acquisition

After the completion of their merger with Coterra Energy, Devon Energy forecasted that its production in 2026 would average 1,38 million barrels per day.

The $58 billion merger completed in May created one of the biggest independent oil and?gas?producers? in the U.S., with a presence in a half dozen regions, led by the Delaware part of the Permian basin in Texas and?New Mexico.

The company forecasts capital expenditures of $4.9 billion for the full year, of which more than 60% will be allocated to the Permian basin, where it is focusing its activities around its core assets.

Devon said it would be providing timely updates in its efforts to focus the portfolio around Permian to improve shareholder returns.

"Optimizing the portfolio is a priority and we are in the process of reviewing our financial and strategic criteria," said CEO?Clay Gaspar.

The shale producers said they aim to return up 70% of their free cash flow back to shareholders through a quarterly fixed?dividend of $0.32 per share?and an $8 billion share purchase program.

Devon expects to pay back $1.25 billion in debt this year.

It said that it was accelerating merger-related synergies and aiming to capture $600,000,000 in 2027, as well as $1 billion annually in pre-tax synergies by the end of that year.

Last month, Devon acquired 16,300 acres of undeveloped land in the Delaware Basin area in New Mexico. The purchase price was $2.6 billion. (Reporting and editing by Joyjeet Das in Bengaluru, Sumit Saha from Bengaluru)

(source: Reuters)