Devon boosts dividend, share buybacks, not production

Devon Energy boosted its dividend to a record high and expanded share buybacks on the back of surging oil prices, but showed no signs of increasing output.

The company increased the first quarter payout by 27pc to a record $1.27/share. It also upped the share buyback program by 25pc to $2bn.

"Looking ahead, we are unwavering in our commitment to capital discipline," said chief executive Rick Muncrief. "Our pursuit of value over volume is further reinforced by the steep backwardation in commodity prices, supply chain constraints and the economic uncertainty arising from recent geopolitical events."

Production averaged 575,000 b/d of oil equivalent (boe/d) in the quarter, up from 499,000 boe/d a year earlier. Winter weather shut-ins reduced output by 15,000 boe/d.

The company kept its target for full-year output in the range of 570,000-600,000 boe/d, and upstream capital investment of $1.9bn-$2.2bn.

Profit of $1bn in the first quarter was up from $213mn in the same period of 2021.

By Stephen Cunningham