Devon Energy, the third largest oil producer in Wyoming’s Converse County, is focusing operations on Oklahoma and West Texas, officials said in a call with investors Wednesday.
The Oklahoma City-based firm’s shares took a sharp dip Wednesday after the firm announced fourth-quarter earnings that disappointed some analysts expectations by a surprising 25 cents per share.
Part of the disappointment was logistical, including the delay of 50 wells that were expected to come online in the final quarter of 2017. Those wells will boost production in the coming year by 35 percent, the company noted in a press release.
Though Devon’s executives mentioned positive results from Wyoming, they said other regions will continue to be the core of their business.
In response to whether the company’s assets in the Powder River Basin were prepped for sale or likely to be part of its core assets going forward, Dave Hagar demurred.
“Specifically in regard to the Powder, we like the opportunities we’re drilling there in the Turner [formation]. We see some potential there in the Niobrara [formation] as well, and we’re going to be drilling some wells there,” Hager said. “We think there’s a good growth opportunity. But again, it’s not going to reach the scale of the STACK and the Delaware.”
Wyoming represented about 3 percent of Devon’s production in 2017.
“Our acreage in the Rockies is focused on emerging oil opportunities in the Powder River Basin and the Wind River Basin,” the company reported in its financial statements.
“Recent drilling success in these formations has expanded our drilling inventory, and we expect further growth as we continue to de-risk this emerging light-oil opportunity.”