Devon Energy Corporation Q4 2007 Earnings Call Transcript

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2008-02-06 12:36:09.0

Tags: Devon Energy Corp.

Question-and-Answer Session

Operator

(Operator Instructions). Our first question will come from the line of Dave Kistler with Simmons & Company. Please proceed.

Dave Kistler - Simmons & Company

Good morning.

Larry Nichols

Good morning.

Dave Kistler - Simmons & Company

With respect to the Barnett, both you and the industry are having very prolific production growth there. It seems like kind of across the board people have a very deep inventory there, obliviously you guys have one of the deepest. Do you foresee any potential if the structure constraints in the near future, whether it would be transportation gathering, processing, and, if so, can we talk a little bit about your development plans for handling that?

Darryl Smette

Yeah, Dave, this is Darryl Smette. Obliviously you are correct that Devon and number of the other participants in the Barnett Shale are having success and that has put some strain on infrastructure not only gathering systems but export systems in processing plants.

Devon has in place, from transportation enough processing capacities assisting plants and our own gathering systems so we can handle all of the production that Devon for seasoning produce into the future. So while we do see something constraints in the area, we think that we have positioned ourselves not only to produce the volumes but they will have a gathered, processed and transported the variety markets throughout the United States.

Dave Kistler - Simmons & Company

Great. Kind of building off that a little bit. Kind of blocking in all of those plans. Do you guys or have you projected what you estimate to be kind of peak Barnett production for you guys or a goal for peak production?

Steve Hadden

Yeah, this is Steve Hadden, Dave. You saw that we talked earlier that we set a target or a stopping off point of a Bcf a day by the end of 2009, not too long ago, maybe a year or so ago and we belong to that pretty quickly.

Our goal is to continue to drive the efficiency with the drilling and completions that we are seeing across the business and continue to work to have those volumes grow. We are seeing better well performance as I mentioned in the earlier comments, better well performance year-over-year as we've been progressing.

We've also had success with our infill drilling program that continues to add to our inventory, and this inventory of drilling is very, very deep for us and will go on for a very long time. So as we look out for the foreseeable future for the Barnett Shale for Devon, we expect growth continue to occur and these efficiencies to continue to deliver good growth.

 

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