DVN · 10-Q · 2026Q3 · Full report
Operating Expense Trends
DEVON ENERGY CORP/DE · 2026-11-06 · Importance 30 · Surprise 40 · In source text
General and administrative expense increased in Q3 2026 compared with Q2, primarily due to a full quarter of labor and benefits costs associated with the merger. G&A per Boe nevertheless declined 17% sequentially to $1.18 as production volumes grew faster than G&A following the change in asset mix. For the first nine months of 2026, G&A per Boe declined 13% year over year to $1.36 for the same volume and mix reasons. Merger-related restructuring and transaction costs totaled $298 million for the first nine months of 2026, with most recorded in Q2; additional cash outflows are expected primarily through the end of 2027.
Key facts
- Devon expected additional merger-related restructuring and transaction cash costs to be paid primarily through the end of 2027, mainly for employee costs and severance, vendor contract modifications or abandonment, and accelerated employee benefits. source
- Devon’s G&A per Boe decreased 17% to $1.18 in Q3 2026 from $1.41 in Q2 2026 as post-merger production volumes drove Boe growth faster than G&A increased. source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| operating_income | negative | probable | — | Devon expected additional merger-related restructuring and transaction cash costs to be paid primarily through the end of 2027, mainly for… |
| cash | negative | probable | — | Devon expected additional merger-related restructuring and transaction cash costs to be paid primarily through the end of 2027, mainly for… |