Devon (DVN) in their Q3 earnings call on November 6, provided some insight into how producers in the Permian are able to remain productive even as prices decline.
In the third quarter, Devon produced about 390 Mb/d of crude oil, a little over 200 Mb/d coming out of the Delaware, and about 100 Mb/d from the Rockies. Q3 production came in above previous guidance and at a lower-than-expected cost.
Their 2026 guidance points towards producing around 845 Mboe/d, with oil production at ~390 Mb/d, inline with the current 2025 year-end guidance. The executive team explained that macroeconomic uncertainty and signals of a well-supplied crude market influenced their decision to not add incremental production in the near-term. Devon anticipates they can fund their 2026 drilling program below a $45/bbl WTI price.
