Devon Energy Forecasts 1.38M boe/d, $4.9 B CapEx and 70% FCF Return
DVN•Devon Energy forecasts 2026 average production of 1.38 million barrels of oil equivalent per day, including 500,000 barrels per day of oil. The company plans $4.9 billion in capital spending, targets returning 70% of free cash flow via a $0.32 quarterly dividend and an $8 billion buyback program.
1. Combined 2026 Production Outlook
Devon Energy expects the merged entity to average 1.380 million barrels of oil equivalent per day in 2026, including 500,000 barrels per day of oil. This outlook reflects the scale of the combined Devon–Coterra platform and its diversified multi-basin portfolio.
2. Capital Investment Plan
The company plans $4.9 billion in capital spending for 2026, with over 60% allocated to the Permian Basin. The program will deploy 31 rigs and 10 completion crews to bring 460–480 net wells online, emphasizing free cash flow optimization.
3. Shareholder Returns and Balance Sheet
Devon targets returning up to 70% of free cash flow through a fixed quarterly dividend of $0.32 per share and an $8 billion share repurchase authorization. It also plans to retire $1.25 billion of debt while maintaining an investment grade balance sheet and ample liquidity.
4. Synergies and Portfolio Review
The company aims to capture $600 million of synergies in 2027 and reach $1 billion of annual pretax run-rate synergies by year-end 2027. A strategic portfolio review is underway to concentrate assets around its premier Permian position and enhance returns.
