Devon Energy Establishes New Environmental Performance Targets Including Net Zero GHG Emissions

Rhea-AI Summary

Devon Energy Corp (DVN) announced aggressive new environmental targets to enhance its sustainability efforts, aiming for net zero greenhouse gas emissions by 2050. Key goals include a 50% reduction in GHG emissions intensity by 2030 and 65% reduction in methane emissions intensity by 2030 from a 2019 baseline. Additionally, the company plans to achieve a flaring intensity of 0.5% or lower by 2025 and eliminate routine flaring by 2030. Devon emphasizes its commitment to water conservation, targeting over 90% use of non-freshwater in completions activities.

Positive

• Targets net zero GHG emissions for Scopes 1 and 2 by 2050.
• Aims for a 50% reduction in GHG emissions intensity by 2030.
• Plans to reduce methane emissions intensity by 65% by 2030.
• Sets a flaring intensity goal of 0.5% or lower by 2025.
• Will utilize 90% or more non-freshwater for completions in Delaware Basin.

Negative

• Challenges in implementing new technologies and practices for emissions targets may arise.
• Potential for higher-than-expected costs during implementation.
• Risk of operational disruptions affecting financial performance.

KEY TARGET HIGHLIGHTS

• Achieve net zero greenhouse gas (GHG) emissions for Scopes 1 and 2 by 2050
• Reduce Scopes 1 and 2 GHG emissions intensity by 50% by 2030
• Reduce methane emissions intensity by 65% by 2030
• Achieve flaring intensity of 0.5% or lower by 2025 and eliminate routine flaring by 2030
• Continue to advance water recycling rate and to use 90% or more non-freshwater for completions activities in the most active operating areas within the Delaware Basin
• Engage value chain in assessment of performance in key environmental, social, and governance (ESG) areas

OKLAHOMA CITY, June 21, 2021 (GLOBE NEWSWIRE) -- Devon Energy Corp. (NYSE: DVN) announced today it is establishing new environmental performance targets focused on reducing the carbon intensity of its operations, minimizing freshwater use, and engaging constructively with its value chain.

“We know that strong environmental performance is essential to protecting the communities in which we live and operate, managing risk, and generating long-term value for stakeholders,” said Rick Muncrief, President and CEO. “Devon is setting aggressive goals to lower its carbon impact, while continuing to return value to shareholders. We know the need for oil and gas will remain for decades, but as good stewards, it is incumbent on us to improve how we produce and deliver it.”

NET ZERO GHG EMISSIONS

Since its founding in 1971, Devon has been at the forefront of technological innovation in the oil and natural gas industry. The company’s long history of using advanced technologies to improve efficiencies across the business will be key to delivering on its ambition to achieve net zero GHG emissions for Scopes 1 and 2 by 2050.

In pursuit of continued transparency, Devon will refresh its Climate Change Assessment Report by year-end 2021, outlining its approach to proactively address climate-related risks and opportunities.

GHG AND METHANE EMISSIONS REDUCTIONS

To demonstrate Devon’s progress in achieving its longer-term net zero ambition, the company is targeting reductions of its Scopes 1 and 2 GHG emissions intensity by 50% and methane emissions intensity by 65% by 2030 from a 2019 baseline.

Devon’s emission reduction strategy will involve a range of potential actions including expanding its leak detection and repair program; implementing advanced leak detection technologies; reducing the volume of natural gas that is flared; electrifying facilities to reduce the use of natural gas and diesel consumed onsite, including transitioning from gas-driven to air-driven pneumatic controllers; and optimizing facility design to minimize leaks and eliminate common equipment failures.

FLARING PERFORMANCE

A key component of Devon's broader emissions reduction strategy is to focus on reducing flared volumes to protect the environment.

Devon is establishing a two-pronged approach to improve its flaring performance — targeting a flaring intensity of 0.5% of gross natural gas produced by 2025 and eliminating routine flaring, as defined by the World Bank, by 2030. The company expects to drive results by continuing to engage in pre-production planning, optimize facility design and operating conditions, assess and deploy beneficial reuse technologies, and collaborate with service providers to prevent and mitigate midstream and downstream constraints.

WATER CONSERVATION

Devon is committed to conserving and reusing water and has set a target to advance its recycled water rate and use 90% or more non-freshwater for completions activities in its most active operating areas within the Delaware Basin. To minimize freshwater use, the company employs economically and operationally feasible freshwater alternatives wherever possible and has a dozen water recycling facilities throughout the basin.

VALUE CHAIN ENGAGEMENT

Devon will continue evaluating how it can constructively engage stakeholders upstream and downstream of operations to improve ESG performance across its value chain. By 2023, Devon’s contractors who perform work on Devon locations will begin undergoing annual evaluations to assess their ESG performance in key areas.

“Devon is proud to produce affordable, accessible energy that is vital to powering modern life, while further minimizing our carbon footprint,” said Clay Gaspar, Chief Operating Officer. “Our new targets reflect our dedication and commitment to achieving meaningful emissions reductions while pursuing our ultimate goal of net zero GHG emissions.”

ABOUT DEVON ENERGY

Devon Energy is a leading oil and gas producer in the U.S. with a premier multi-basin portfolio headlined by a world-class acreage position in the Delaware Basin. Devon’s disciplined cash-return business model is designed to achieve strong returns, generate free cash flow and return capital to shareholders, while focusing on safe and sustainable operations. For more information, please visit www.devonenergy.com.

Investor Contacts	Media Contact
Scott Coody, 405-552-4735	Lisa Adams, 405-228-1732
Chris Carr, 405-228-2496

FORWARD LOOKING STATEMENTS

This press release contains “forward-looking statements” within the meaning of the federal securities laws. Such statements are not promises or guarantees of future conduct or policy and are subject to a number of assumptions, risks and uncertainties, many of which are beyond our control. Consequently, Devon’s actual activities and future results, including the development, implementation or continuation of any program, target or initiative discussed in this press release, may differ materially in the future due to a number of factors, including, but not limited to, the risk that Devon is unable to implement the new technologies and practices contemplated to achieve the environmental performance targets successfully or on a timely basis; the risk that such technologies and practices result in higher than anticipated costs or cause operational disruptions that adversely impact Devon’s financial performance; and the other risks identified in Devon’s 2020 Annual Report on Form 10-K and its other filings with the Securities and Exchange Commission. The forward-looking statements in this press release are made as of the date hereof, and Devon does not undertake, and expressly disclaims, any duty to update or revise our forward-looking statements based on new information, future events or otherwise.

FAQ

What are Devon Energy's new environmental targets for 2023?

Devon Energy aims to achieve net zero greenhouse gas emissions for Scopes 1 and 2 by 2050, along with a 50% reduction in GHG emissions intensity and a 65% reduction in methane emissions intensity by 2030.

When does Devon plan to eliminate routine flaring?

Devon plans to eliminate routine flaring by 2030, with an intermediate goal of achieving a flaring intensity of 0.5% or lower by 2025.

What percentage of non-freshwater does Devon intend to use for completions activities?

Devon aims to use 90% or more non-freshwater for completions activities in its most active areas within the Delaware Basin.

How does Devon Energy plan to achieve its emissions reduction targets?

Devon will expand its leak detection programs, implement advanced technologies, and electrify facilities to reduce emissions.

What is the significance of Devon's sustainability goals for investors?

These goals reflect Devon's commitment to managing risks and generating long-term value, which is vital for investor confidence and stock performance.