Devon Energy

Devon Energy Corporation

Type	Public
Traded as	NYSE: DVN S&P 500 Component
Industry	Oil and Gas
Founded	1971
Headquarters	Oklahoma City, U.S.
Key people	J. Larry Nichols (Executive Chairman) John Richels (CEO)
Products	Oil Natural Gas
Revenue	US$ 10,397.0 million (2013) [1] US$ 9,501.0 million (2012) [1]
Operating income	US$ 621.0 million (2013) [1] US$ 148.0 million (2012) [1]
Net income	US$ -20.0 million (2013) [1] US$ -206.0 million (2012) [1]
Total assets	US$ 42,877.0 million (2013) [2] US$ 43,326.0 million (2012) [1]
Total equity	US$ 20,499.0 million (2013) [2] US$ 21,278.0 million (2012) [2]
Number of employees	5,900 (December 2013)[3]
Website	www.devonenergy.com

Devon Energy Corporation is among the largest U.S.-based independent natural gas and oil producers. Based in Oklahoma City, Oklahoma, the company's operations are focused on North American onshore exploration and production. Devon is one of North America’s larger processors of natural gas liquids and owns natural gas pipelines and treatment facilities in many of the company’s producing areas.

The company is ranked among Fortune's 500 largest corporations in America, and is also included on the publication's 100 Best Companies to Work For and Most Admired Companies lists. Devon is also included in the S&P 500 Index and trades on the New York Stock Exchange under the ticker symbol DVN.

Headquarters

Devon Energy is headquartered in Oklahoma City, at the 50-story Devon Energy Center, which was completed in 2012.

History

Devon was founded in 1971 by John Nichols and his son, Larry. It became a public company in 1988, and expanded greatly through mergers and acquisitions.

In 2008, Devon announced plans to build a new 925-foot (282 m) tall, 1,900,000-square-foot (180,000 m²) corporate tower in downtown Oklahoma City. In 2012, The company closed its Houston office, which was located in the Allen Center in Downtown Houston.^[4]

Upon becoming a public company in 1988, Devon was listed on the American Stock Exchange under the ticker symbol DVN. Devon was added to S&P 500 Index in 2000 and to the Fortune 500 in 2002. In 2004, Devon transferred its common stock listing to the New York Stock Exchange (NYSE: DVN).

Mergers and acquisitions

• 1992 - acquisition of Hondo Oil and Gas for $122 million
• 1996 - acquired Kerr-McGee’s North American onshore oil and gas properties for $250 million
• 1998 - acquired Northstar Energy for $750 million.
• 1999 - The $2.6 billion acquisition of PennzEnergy establishes Devon as a significant offshore Gulf Of Mexico operator
• 2000 - merged with Santa Fe Snyder in a $3.5 billion deal
• 2001 - acquisition of Anderson Exploration for $4.6 billion, making Devon the third-largest independent gas producer in Canada.
• 2002 - acquires Mitchell Energy for $3.5 billion, making Devon the largest operator in the Barnett Shale of Texas.
• 2003 - $5.3 billion merger with Ocean Energy creates the largest U.S.-based independent oil and gas producer.
• 2006 - acquired Chief Oil and Gas Barnett Shale leasehold for $2.2 billion
• 2009 - announced plans to sell all of the company's international and Gulf of Mexico assets during 2010.^[5]
• 2014 - Devon Energy completes acquisition of GeoSouthern Energy Corp's Eagle Ford asset for $6.1 billion.^[6]
• 2014 - Devon Energy combines midstream assets with Crosstex Energy, Inc. to form EnLink Midstream, LLC.^[7]

Corporate social responsibility

According to a report in The Daily Oklahoman dated August 3, 2007, Devon is one of the first independent oil and natural gas companies to file a corporate responsibility report. The report focuses on the company's environmental initiatives and community involvement. Since 1990, Devon has been taking measures to reduce greenhouse gas emissions from natural gas production and transportation operations in the United States, resulting in companywide emission reductions of six billion cubic feet of methane, or 2.6 million tons of carbon dioxide equivalents in 2005.

Devon is a member of the Environmental Protection Agency’s Natural Gas STAR Program, a voluntary partnership between the energy industry and government to reduce methane emissions. Devon was named the Natural Gas STAR Rookie of the Year in 2004 and Natural Gas STAR Production Partner of the Year in 2005.^[8]

Devon also is a forerunner in the use of mobile recycling technology to reclaim wastewater produced from gas well completions in the Barnett Shale natural gas field in north Texas. The technology reduces Devon’s demand for fresh water and leaves more of the resource for surrounding communities. Recycling units stationed in several locations in the Barnett Shale treat a half million gallons of water per day. The process removes hydrocarbons, dissolved salts and other impurities, allowing the company to reuse up to 85 percent of the recovered water for other well completion projects.

Devon also has water conservation programs in Wyoming and Canada.^[9]

Devon has been recognized by FORTUNE magazine, appearing on FORTUNE's 100 Best Companies to Work For, the magazine's list of Most Admired Companies and the annual list of the top 500 US companies.

Community outreach

Devon contributes financial resources to law enforcement agencies, fire departments, schools, youth programs, and civic organizations through the company’s community outreach program. It is the corporate sponsor of the Wise Eyes community watch program, begun in 1993 in and named for Wise County, Texas, which is located in the Barnett Shale, where Devon has a large presence. Devon's Community Outreach and Ambassador Program, created and developed by Brian Engel, includes the Barnet Shale and 17 other operation regions nationwide. The program is also in at least 20 other mostly rural counties where Devon operates.^[10]

The company also has a robust volunteer program. In 2003, Devon established a partnership with Mark Twain Elementary School, an inner-city, multicultural school located near downtown Oklahoma City. Hundreds of volunteer tutors work with over 150 elementary students every year on a one-on-one basis.^[11][12] In September 2006, Mark Twain Elementary was removed from the Oklahoma State Department of Education’s School Improvement List, also known as the “at risk” list.

Environmental Record

In 2004, Devon Energy was targeted by a shareholder resolution that would have required it to monitor its effect on climate change. Devon Energy was described as among a number that had previously not been targeted by shareholder activists, because it was a mid-size business. If passed, the resolution would have required Devon to report to investors its plans to deal with its effect on climate change.^[13]

Devon Energy Corporation received an award from the Bureau of Land Management (BLM) in 2005 for their outstanding showing of exceeding the required environmental standards in the Worland, Wyoming area. They initiated contact with BLM regularly on their field related projects in order to work closely with them to help maintain the standards the BLM was aiming for.^[14]

Devon Canada, part of Devon Energy Corporation, holds the Voluntary Challenge & Registry (VCR) Gold Champion Level Reporting Status for implementing and reporting greenhouse gas reduction initiatives to the VCR. The gold champion level is the highest status ranking awarded by the VCR. They have voluntarily been providing the VCR with an annual report on their actions taken since 1995.^[15]

Lobbying

After a first disclosure report from October 15, 2014 the largest check for Republican "Targeted State Victory committee" came from J. Larry Nichols, chairman of Devon Energy. The Targeted State Victory committee reported it had raised $2.3 million from 14 individuals and 70 PACs. Fourteen individuals accounted for more than $1 million in donations.^[16]

Advocacy

Devon Energy's representative on the Board of Directors of Western Energy Alliance is Dru Bower-Moore.

References

Further reading

• Burke, Robert. Deals, Deals, and More Deals: The Life of John W. Nichols. Oklahoma Heritage Association. 2004.

External links

• Devon Energy Homepage
• Devon Energy Careers
• The Devon Energy stock chart
• Voices of Oklahoma interview with Larry Nichols. First person interview conducted with Larry Nichols on October 26, 2011. Original audio and transcript archived with Voices of Oklahoma oral history project.