DVN · 10-Q · 2026Q3 · Full report

Production Expense Trends

DEVON ENERGY CORP/DE · 2026-11-06 · Importance 64 · Surprise 56 · Matches filing data

Third-quarter production expenses increased to $1.651 billion from $1.393 billion in Q2 2026, primarily because the quarter included a full quarter of costs for Coterra legacy assets. For the first nine months of 2026, production expenses were $3.938 billion versus $2.706 billion in the prior-year period, reflecting the May 7 merger and partly offset by the pre-merger business optimization plan. Lease operating expense per Boe fell 16% year over year to $5.33, while gathering, processing and transportation expense per Boe rose to $3.05 from $2.78. Production taxes increased with higher oil, gas and NGL sales following the merger.

Key facts

• Devon’s third-quarter 2026 production expenses totaled $1.651 billion, compared with $1.393 billion in the second quarter, primarily due to a full quarter of Coterra legacy asset expenses. source
• For the first nine months of 2026, Devon’s LOE per Boe decreased 16% to $5.33, while gathering, processing and transportation per Boe increased to $3.05 from $2.78, reflecting a different post-merger asset and product mix. source
• Devon’s production taxes were 6.3% of oil, gas and NGL sales in Q3 2026, down from 7.0% in Q2 2026, primarily due to a different post-merger asset and product mix. source
• For the first nine months of 2026, Devon’s production expenses increased primarily due to the May 7, 2026 merger closing, partly offset by positive results from its pre-merger business optimization plan. source
• For the first nine months of 2026, Devon’s production taxes increased primarily due to higher oil, gas and NGL sales driven by higher production volumes following the merger. source

Impact estimates