Devon Business Practices

[PhiAlpha]

More layoffs coming. Their stack acreage is a bust as well. If you short stocks, short this.

Yeah Devon is selling a lot of their NW Stack acreage and shifting most of their focus to the Permian. They drilled two of the best wells in the Delaware Basin a few months ago.

[gopokes88]

Yeah Devon is selling a lot of their NW Stack acreage and shifting most of their focus to the Permian. They drilled two of the best wells in the Delaware Basin a few months ago.

Wyoming as well. They sold (not announced yet) their western Wyoming assets and will continue to ramp up in the powder river.

[chuck5815]

it sounds like upper-management hasn't the slightest clue about how to operate an oil and gas concern (buying into prospects late, questionable deployment of capital, too many infill wells in some areas, etc.).

[jonny d]

it sounds like upper-management hasn't the slightest clue about how to operate an oil and gas concern (buying into prospects late, questionable deployment of capital, too many infill wells in some areas, etc.).

What? You do realize just how large Devon is, right?

[chuck5815]

What? You do realize just how large Devon is, right?

You do realize that Devon's peers have consistently outperformed it over the last decade?

Being large doesn't necessarily mean you're good. Best recent example of that is GE.

[gopokes88]

it sounds like upper-management hasn't the slightest clue about how to operate an oil and gas concern (buying into prospects late, questionable deployment of capital, too many infill wells in some areas, etc.).

Agreed, the C suite seems clueless. Some of it is just big large lumbering companies just behave this way, but Devon seems to be going backwards at a time when oil prices have doubled. That’s partially why the stock has stalled in the low 40s.

[Pete]

^

Their stock price would be lower -- and maybe much lower -- without Devon's massive stock buy-back program.

[LocoAko]

https://newsok.com/article/5616320/d...ces-retirement

[Plutonic Panda]

https://newsok.com/article/5623407/d...et-sales-plans

[Dob Hooligan]

I recall they been working to be a lower 48 company for the last few years. Looks like the effort continues. I read this morning (if I read correctly) that Continental has a big jump in profit in Q4 2018 due to the tax cuts. I'm guessing the big jump in Devon Q4 profit was from the same.

[BG918]

Hearing another round of layoffs is currently happening

[Of Sound Mind]

It was announced publicly yesterday...

https://newsok.com/article/5624899/d...ut-200-for-now

Devon Energy Corp. is cutting loose about 200 of its employees in February and March as it works on plans to either sell or spin off its Canadian and north Texas assets, the company confirmed Tuesday.
Additional layoffs are expected later this year.

[gopokes88]

Going from 2500 company wide to 1200

[catch22]

Yikes...I don’t follow this industry, are they in trouble?

[Bellaboo]

They recently sold their Canadian Tar Sands. I imagine a lot of those employees will go with the new company.

[jedicurt]

Yikes...I don’t follow this industry, are they in trouble?

no... mostly just selling off assets in less productive areas to concentrate on those areas that are more productive.

[jedicurt]

They recently sold their Canadian Tar Sands. I imagine a lot of those employees will go with the new company.

yep... this^^^^^^^

[Teo9969]

Did they sell to a local firm?

[gopokes88]

Did they sell to a local firm?

Dk yet. V unlikely the canada assets get sold locally. It won’t affect okc as much as you think though. They have a regional HQ in Calgary that takes care of that asset. It will either be spun off as a separate company or sold to another company most likely a Canadian producer.

https://www.shutterstock.com/image-p...ower-230986531

[BoulderSooner]

Going from 2500 company wide to 1200

What??

where are you getting this from ??

[Dob Hooligan]

From 3-6-2019 Oklahoman: Devon has about 2850 employees companywide and about 1360 in OKC HQ. layoffs are about 200 through March 2019. Some employees are getting the word today.

[Pete]

They have been letting people go at their HQ this entire week.

[gopokes88]

What??

where are you getting this from ??

I have a pretty good track record around here when it comes to energy. So don’t worry about where it comes from.

[DowntownMan]

I have a pretty good track record around here when it comes to energy. So don’t worry about where it comes from.

You’re saying they are going from 2800 to 1200 employees company wide?

That seems unlikely. That would mean they would have less employees than Continental.
Continental is known for being lean. I doubt Devon would be able to run a larger operation with less employees

I could however see them taking the okc head count from 1500 to 1200 just not companywide total

[chuck5815]

You’re saying they are going from 2800 to 1200 employees company wide?

That seems unlikely. That would mean they would have less employees than Continental.
Continental is known for being lean. I doubt Devon would be able to run a larger operation with less employees

I could however see them taking the okc head count from 1500 to 1200 just not companywide total

I could see 1200 being an accurate number after the Canadian asset is fully divested or otherwise spun off.