General News | Capital Markets | Capital Expenditure
Devon's Jackfish Heavy Oil Ops Back on Track; Q3 Output Exceeds Guidance
Print
|
Devon Energy reported that additional facilities work at its Jackfish 1 heavy oil project in Alberta, Canada, is now complete and full-scale operations have been restored.
The work at Jackfish 1 was related to minor facility repairs the company identified during recent turnaround startup activities. Devon elected to perform the incremental maintenance work that temporarily curtailed production as opposed to deferring the repairs to a future date.
Devon estimates that its third-quarter 2018 net production in Canada will be approximately 104,000 BOEPD as a result of the maintenance at Jackfish 1. The temporary curtailment of volumes at Jackfish represents less than 1% of total expected company-wide production in 2018.
With the Jackfish complex resuming full-scale operations, the company expects fourth quarter net production in Canada, after the impact of higher sliding-scale royalties, to increase to an average of 115,000 to 120,000 Boe per day. This operational momentum will carry into 2019, with Canadian net production estimated to exit the current year in excess of 120,000 Boe per day.
Q3 U.S. Output Exceeds Guidance; Spending Below Expectations
Devon estimates that net production in the U.S. will be approximately 418,000 Boe per day during the third quarter of 2018. During the quarter, Devon monetized minor, non-core assets with an associated production impact of approximately 2,000 Boe per day. This production result exceeds the company's third-quarter guidance range, adjusted for the non-core asset sales, of 398,000 to 417,000 Boe per day.
- A key driver of the third-quarter production outperformance was higher natural gas liquids yields and recoveries.
The company effectively controlled capital costs during the third quarter. Devon's upstream capital spending was $523 million in the quarter, which was $52 million, or 9% below the company's midpoint guidance.
More Corporate Production Rates News
Petrus Resources Ltd. First Quarter 2023 Results
Petrus Resources Ltd. announced first quarter 2023 results. Highlights Higher production – Production was up 54% from 7,379 boe/d(1) in the first quarter of 2022 to 11,385 boe/d…
Cardinal Energy Ltd. First Quarter 2023 Results
Cardinal Energy Ltd. announced first quarter 2023 results. Highlights Production increased 5% over the same period in 2022 due to ongoing strong base performance and excellent 2022 drilling…
Headwater Exploration Inc. First Quarter 2023 Results
Headwater Exploration Inc. announced first quarter 2023 results. Highlights Declared second cash dividend of $0.10 per common share and returned $23.5 million to shareholders in April 2023. Production…
Rubellite Energy Inc. First Quarter 2023 Results
Rubellite Energy Inc. announced first quarter 2023 results. Highlights Achieved first quarter conventional heavy oil sales production of 2,990 bbl/d, exceeding the Company’s guidance range of 2,800 to…
Bonterra Eneergy Corporation First Quarter 2023 Results
Bonterra Eneergy Corporation announced first quarter 2023 results. Highlights Production in Q1 2023 averaged 13,464 BOE per day, four percent higher than Q4 2022, driven by an active,…
Canada News
Western Canada Upstream M&A: Q1 2026 Transaction Report
Western Canadian M&A activity in Q1 2026 was characterized by a 87% decrease in total deal value compared to Q1 2025, totaling $0.8 billion C$. However, transaction volume…
A Quiet Capital Pattern Is Forming in North American Upstream — and Almost No One Is Talking About It
A handful of recent transactions and capital raises point to a subtle pattern in North American upstream—one that is easy to miss because each event, on its own,…
Canadan E&P 2026 Program Calls for 448 Net Wells, Up 24% vs. 2025 Plan
Canadian Natural Resources outlined a 2026 operating capital budget of approximately $6.3 billion (total capital budget $6,425 million, including $125 million for carbon capture) targeting 1,590–1,650 MBOE/d of…
EIA’s “Glut” Calls: The 2025 Surplus Claim — and How 2021–2024 Forecasts Actually Held Up
The “~2.2 MMb/d glut in 2025” framing traces to the EIA’s Short-Term Energy Outlook (STEO), December 2025. EIA doesn’t usually write “glut” in the tables—what they publish is…
Whitecap Details 2026 Duvernay & Montney Program
Whitecap Resources reported strong third quarter 2025 operating and financial results, marking its first full quarter following the strategic combination with Veren that closed on May 12, 2025.…
United States News
ARC Resources: Lower 2026 Capex, Higher Volumes
ARC Resources used its third quarter update to reinforce a familiar message to Canadian E&P executives: disciplined capital, structurally better market access, and a growing shareholder return program…
Baytex 2026 Development Plans
Baytex’s 2026 development plan reflects a post–Eagle Ford sale capital program and a sharpened focus on its core Canadian assets. The Company approved 2026 exploration and development expenditures…
Tourmaline: 2026 Capital Program Locked In at $2.9B
Tourmaline’s 2026 exploration and production (EP) program is set at $2.9 billion and targets average production of 690,000–710,000 boepd, with the company maintaining the multi-year EP Plan released…
Cenovus Outlines 2026 Development Plan Following MEG Integration
Cenovus’ 2026 plan targets capital investment of $5.0 billion to $5.3 billion (including ~$350 million of capitalized turnaround costs) and upstream production of 945,000 BOE/d to 985,000 BOE/d,…
Gran Tierra Energy To Step Down Activity in 2026
Gran Tierra Energy’s 2026 development plan reflects a step-down in spending and activity as the company transitions from fulfilling Ecuador exploration commitments in 2025 toward a free-cash-flow-focused program.…