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Devon Energy SWOT and PESTLE Analysis

ID : 521379453| Feb 2023| 21 pages

COMPANY PROFILE -Devon Energy

Business Sector :Oil and Natural gas

Operating Geography :United States, North America, Global

About Devon Energy :

Headquartered in Oklahoma City, United States, Devon Energy Corporation is an energy company engaged in hydrocarbon exploration. Its primary operations are in Delaware Basin, Barnett Shale, Rocky Mountains and Eagle Ford Group. Founded in 1971 by John Nichols and his son Larry Nichols, it deals with Petroleum, Natural Gas and Natural Gas Liquids. The company became a public company via an initial public offering. Devon’s company disciplined cash- return business model is designed to generate free cash flow, achieve strong returns and return capital to shareholders, while keeping the focus on sustainable and safe operations. As of early 2022, Devon Energy Corporation employs 1600 people approximately.

Devon Energy’s mission statement is “Devon is a result- oriented oil and gas company that builds value for shareholders through our employees by creating a culture of health, safety and environmental stewardship in an atmosphere of optimism, teamwork, creativity and resourcefulness and by dealing with everyone in an open and ethical manner.” Devon Energy vision statement reads “To be the premier independent oil and natural gas company in North America.” The USP or the Unique Selling Point of Devon Energy Company lies in being the leading independent natural gas and oil exploration and production company. The company ranks 520 on the Fortune list and provides stable, environmentally responsible production and a platform for future growth.

Devon Energy Revenue :


$ 9,531 million - FY ending 31st December 2021 (y-o-y growth 253%)
$ 2,695 million - FY ending 31st December 2020

Competitive Analysis of Devon Energy

SWOT
PESTLE
The SWOT analysis for Devon Energy is presented below in a matrix followed by the detailed analysis report:
StrengthsWeaknesses
1. Steady capacity expansion through several acquisitions.
2. Massive y-o-y improvement in cash flows, revenue and other KPIs.
3. Multi-basin diversified portfolio with scale of operations.
4. A history of handsome returns to shareholders.
1. High indebtedness could result in restrictions on the company’s future borrowings.
2. Rising risk of cyber-attacks as result of increasing dependence on technology.
3. Complete reliance on midstream facilities and third-party operators.
4. The company’s operations entails several environmentally hazardous activities.
OpportunitiesThreats
1. An opportunity in leveraging the fear of fuel shortages worldwide
2. Massive opportunity for LNG export in Europe amid crisis
1. Uncertain estimates of oil and natural gas reserves.
2. Volatility in oil and natural gas prices impacting business
3. Depletion of oil and natural gas reserves.
4. Rise of alternatives for oil and gas.
SWOT & PESTLE (combined)
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Detailed SWOT Analysis of Devon Energy

Strength

This section is available only in the 'Complete Report' on purchase.

Weakness

This section is available only in the 'Complete Report' on purchase.

Opportunity

This section is available only in the 'Complete Report' on purchase.

Threat

1. Uncertain estimates of oil and natural gas reserves: The process of estimation of oil and natural gas reserves is a complex process that demands significant judgment in the evaluation of available geological, engineering, and economic data for each reservoir, particularly for new discoveries. As a result, different reserve engineers may develop different estimates of reserve quantities and related revenue based on the same data. Furthermore, the reserve estimates for a given reservoir may change substantially over time as a result of several factors. Such revisions to prove reserves could have an adverse effect on Devon’s financial condition and the value of its properties, as well as the estimates of future net revenue and profitability.

The remaining section under "Threat" is available only in the 'Complete Report' on purchase.

Major Competitors :

  • XTO Energy
  • EOG Resources
  • ExxonMobil
  • Murphy Oil Corporation
  • Range Resources Corporation
SWOT & PESTLE (combined)
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TABLE OF CONTENTS
DELIVERY AND FORMAT
WHY CHOOSE US?

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References used in Devon Energy SWOT & PESTLE Analysis Report

1. Annual Report - https://s2.q4cdn.com/462548525/files/doc_financials/2021/ar/DVN-2021-10-K.pdf
2. Devon Energy Announces Bolt-On Acquisition in the Eagle Ford - https://www.devonenergy.com/news/2022/Devon-Energy-Announces-Bolt-On-Acquisition-in-the-Eagle-Ford
3. Investors Presentation - https://s2.q4cdn.com/462548525/files/doc_financials/quarterly/2022/q2/Q2-2022-DVN-Earnings-Presentation.pdf
4. US Fed may hike rates sharply in coming months - https://timesofindia.indiatimes.com/business/international-business/us-fed-may-hike-rates-sharply-in-coming-months/articleshow/93808762.cms
The detailed complete set of references are available on request in the 'Complete report' on purchase.

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In-text: (SWOT & PESTLE.com, 2024)

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Devon Energy SWOT and PESTLE analysis has been conducted by Uttiya Majumder and reviewed by senior analysts from Barakaat Consulting.

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