Devon Energy Corporation (DVN): New Analyst Report from Zacks Equity Research - Zacks Equity Research Report

Oklahoma City-based Devon Energy Corporation is an independent energy company engaged primarily in exploration, development and production of oil and natural gas. The company's oil and gas operations are mainly concentrated in the onshore areas of North America, including the U.S. and Canada.

Besides the exploration and production (E&P) business, Devon has marketing and midstream operations, primarily in North America. The marketing and midstream business includes selling gas, crude oil and natural gas liquids NGL constructing and operating pipelines storage and treating facilities and natural gas processing plants. These midstream facilities are used to transport oil, gas, and NGLs and process natural gas. Over the last few years, Devon's capital spending has been primarily directed towards expanding and developing its oil and liquids-rich assets to achieve a more balanced portfolio.

Devon manages its business by geographic regions and reports financials under the following two segments: U.S. and Canada. The U.S. operations are spread over four major areas: Permian Basin, Mid-Continent, Rocky Mountains and Gulf Coast. The Canadian holdings are located in the central and southern plains of Alberta and Saskatchewan, northwestern Alberta and northeastern British Columbia, Lloydminster region, the Horn River basin and the Deep Basin.

At the end of 2012, Devon had proved reserves of approximately 2.96 billion barrels of oil equivalent BOE, of which about 53% were natural gas and the rest were liquids. In 2012, Devon's combined production volume was 682.3 thousand BOE per day, 4% higher than the 2011 level.

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