Business Analysis of Devon Energy

 Analyze Historical Performance, Strategic Priorities, And Business Improvement Opportunities of Devon Energy

DEVON ENERGY

Business Overview

Devon Energy Corporation is an independent energy company. The Company also controls EnLink Midstream Partners, L.P. (EnLink). The Company's segments include U.S., Canada and EnLink. The Company is engaged primarily in the exploration, development and production of oil, natural gas and natural gas liquids (NGLs). The Company's operations are concentrated in various North American onshore areas in the United States and Canada. The Company's U.S. and Canada segments are primarily engaged in oil and gas exploration and production activities. EnLink is a master limited partnership (MLP) with a midstream business and operations located across the United States. EnLink focuses on providing gathering, transmission, processing, storage, fractionation and marketing to upstream oil and natural gas producers. The Company's properties include Barnett Shale, Delaware Basin, Eagle Ford, Heavy Oil, Rockies Oil and STACK.

Devon Energy

Devon Energy


R&P Rank: 231
Sector: Oil & Gas
Industry:Oil & Gas Production
H.Q Location:Oklahoma
Website: www.devonenergy.com
Company Address:
333 W. SHERIDAN AVENUE, OKLAHOMA CITY OK 73102
Ph:405-552-8183

Business Analysis of Devon Energy

The Oil & Gas Sector is witnessing a major shakeup, new age business models in the industry are transforming both customers and businesses. Faced with this uncertainity, companies are investing resources to transform their business. An in-depth business analysis is a valuable resource to identify and articulate the need for a business model change. At R&P Research we believe, the starting point for a business analysis is Benchmarking. Business benchmarking can be done at various levels: 1) Industry Benchmarking 2) Peer Benchmarking 3) Disruptors Benchmarking. In this report, we share the snapshot of how Devon Energy compares against the industry on the major performance indicators. This analysis, along with peer group/disruptors benchmarking and revenue model understanding can help identify growth and cost optimization opportunities to maximize the value delivered by Devon Energy to its stakeholders. R&P Research Industry Intelligence Platform provides historical data for last 15 years with an easy to use benchmarking interface for an in-depth comparative business analysis.

Here is the performance snapshot of Devon Energy with an interactive chart.

  1. Revenue Growth: Devon Energy reported a revenue growth of -7.2% year-on-year during 2016. Oil & Gas Production Industry grew at -15.5% in the same period
  2. COGS share of Revenues: As a percentage of revenue, Devon Energy spent 60.3% of its total revenues on COGS. Oil & Gas Production industry average (COGS share of revenue) in the same period was 78.0%
  3. R&D share of Revenues: Devon Energy R&D share of Revenues details are not available because either company does not share the data or we do not have it
  4. SG&A share of Revenues: As a percentage of revenue, Devon Energy spent 5.3% of its total revenues on Sales, Marketing, and General Administration (SG&A). Oil & Gas Production industry average SG&A spending in the same period was 4.3%
  5. Inventory share of Revenues: Devon Energy Inventory share of Revenues details are not available because either company does not share the data or we do not have it
  6. Accounts Payable share of Revenues: As a percentage of revenue, Devon Energy invested 12.7% of its total revenues on Accounts Payable (A/P) Oil & Gas Production industry average Accounts Payable investment in the same period was 12.4%
  7. Accounts Receivable share of Revenues: As a percentage of revenue, Devon Energy invested 11.1% of its total revenues on Accounts Receivable (A/R). Oil & Gas Production industry average Accounts Receivable investment in the same period was 10.5%
  8. PP&E share of Revenues: As a percentage of revenue, Devon Energy invested 132.7% of its total revenues on Property, Plants, and Equipments (PP&E). Oil & Gas Production industry average PPE investment in the same period was 132.9%
  9. Intangibles share of Revenues: As a percentage of revenue, Devon Energy invested 32.5% of its total revenues on Intangibles. Oil & Gas Production industry average Intangibles investment in the same period was 4.1%
  10. Net Margins: Devon Energy Net Margins in the year 2016 were -27.1%. Oil & Gas Production industry average Net Margins in the same period were -4.2%

Sector and Industry Association of Devon Energy

For the purpose of performance benchmarking of a company with a sector or industry average, R&P Research associates every company with one sector and one industry. An industry consists of companies with related/similar business models. A sector comprises of a group of related/similar industries.

Devon Energy is associated with Oil & Gas Sector and Oil & Gas Production Industry.

Oil & Gas sector is comprised of the following industries: Oil & Gas Production; Oil & Gas Distribution; Oil & Gas Equipment and Services; Alternative Energy. The definitions for each of the industries is as follows:

  • Oil & Gas Production industry includes companies primarily engaged in operating oil & gas properties. Key activities may include exploration for crude petroleum and natural gas; drilling, completing, and equipping wells; and all other activities in the preparation of oil and gas up to the point of shipment from the producing property. It also includes companies engaged in crude petroleum refining and producing gasoline, kerosene, distillate fuel oils, residual fuel oils, and lubricants, through fractionation or straight distillation of crude oil.
  • Oil & Gas Distribution industry includes companies primarily engaged in the pipeline transportation of petroleum, natural gas, and other commodities. It also includes companies primarily engaged in the wholesale and retail distribution of petroleum and petroleum products.
  • Oil & Gas Equipment and Services industry includes companies primarily engaged in drilling wells for oil or gas field operations for others on a contract or fee basis. It also includes companies providing exploration services and machinery & equipment for oil and gas field operations.
  • Alternative Energy industry includes companies that develop or manufacture renewable energy equipment utilizing sources such as solar, wind, geothermal, hydro, and waves. It also includes companies that produce alternative fuels such as methanol, ethanol, hydrogen and biofuels that are mainly used to power vehicles.

Industry Ranking of Devon Energy

With $12.2 billion revenues, Devon Energy ranked number 10 of all the companies in the US Oil & Gas Production industry. There were a total of 89 public companies in the US Oil & Gas Production industry that had revenues greater than $50 million during 2016.

The top-10 companies in the US Oil & Gas Production industry by revenues during 2016 were:

  1. ExxonMobil ($226.1 billion)
  2. Chevron ($114.5 billion)
  3. Phillips 66 ($85.8 billion)
  4. Valero Energy ($75.7 billion)
  5. Marathon Petroleum ($63.4 billion)
  6. Imperial Oil ($27.4 billion)
  7. Tesoro ($24.6 billion)
  8. ConocoPhillips ($24.4 billion)
  9. PBF Energy ($15.9 billion)
  10. Devon Energy ($12.2 billion)

Business Model Analysis (BMA) Framework

We use the following framework to assess the business model of a company. Business Model Analysis framework can be used by organizations to articulate growth strategies and identify cost optimization opportunities. Technology and consulting companies can use this framework to identify the value drivers and pain points of their targeted customers. Entrepreneurs can use this framework to understand the language of business and identify promising business opportunities. This framework can be used by any professional aspiring to take up a leadership role to better understand the businesses challenges, articulate growth strategy, and monitor the business improvement requirements for the organization.

Next Steps

  • Conduct a holistic benchmarking; to identify and target additional sources of value
  • Get in touch with us to learn more about Business Model Analysis Framework
  • Get free data, charts, and analysis of Devon Energyand its peers on select key performance indicators by clicking the reports provided below

Industry Peers and Competitors of devon-energy

Tesoro (TSO) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

Tesoro Corp with $25 billion revenues in the year 2016 was the number 7 Oil & Gas Production company. Read this report to know the top competitors of Tesoro and identify growth and cost optimization opportunities of Tesoro

ConocoPhillips (COP) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

ConocoPhillips with $24 billion revenues in the year 2016 was the number 8 Oil & Gas Production company. Read this report to know the top competitors of ConocoPhillips and identify growth and cost optimization opportunities of ConocoPhillips

PBF Energy (PBF) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

PBF Energy Inc. with $16 billion revenues in the year 2016 was the number 9 Oil & Gas Production company. Read this report to know the top competitors of PBF Energy and identify growth and cost optimization opportunities of PBF Energy

HollyFrontier (HFC) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

HollyFrontier Corp with $11 billion revenues in the year 2016 was the number 11 Oil & Gas Production company. Read this report to know the top competitors of HollyFrontier and identify growth and cost optimization opportunities of HollyFrontier

Occidental Petroleum (OXY) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

Occidental Petroleum Corp with $10 billion revenues in the year 2016 was the number 12 Oil & Gas Production company. Read this report to know the top competitors of Occidental Petroleum and identify growth and cost optimization opportunities of Occidental Petroleum

Chesapeake Energy (CHK) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

Chesapeake Energy Corp with $8 billion revenues in the year 2016 was the number 13 Oil & Gas Production company. Read this report to know the top competitors of Chesapeake Energy and identify growth and cost optimization opportunities of Chesapeake Energy

Revenues Analysis

Devon Energy (DVN) Revenues And Revenue Growth From 2012 To 2016

This report provides the last five years revenues and revenue growth of Devon Energy Corp (DVN) from 2012 to 2016. Devon Energy generated a total of $12.2 billion revenues during 2016. Devon Energy reported a revenue growth of -7.2% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in December.

Devon Energy (DVN) Revenues And Revenue Growth From 2002 To 2016

This report provides the last fifteen years revenues and revenue growth of Devon Energy Corp (DVN) from 2002 to 2016. Devon Energy generated a total of $12.2 billion revenues during 2016. Devon Energy reported a revenue growth of -7.2% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in December.

Devon Energy (DVN) Revenue Growth Comparison With Industry Growth From 2012...

This report provides a comparison of Devon Energy Corp (DVN) revenue growth with Oil & Gas Production industry growth during the last five years from 2012 to 2016. Devon Energy reported a revenue growth of -7.2% year-over-year during 2016. The Oil & Gas Production industry growth was -15.5% year-over-year during 2016. Devon Energy growth was faster than the industry during 2016.