DENVER (Reuters) -U.S. shale producer Devon Energy on Wednesday said it was anticipating a 15% rise in costs this year compared to 2021, due to inflation and supply chain constraints.
“Inflationary pressure and supply chain disruptions are a reality,” Clay Gaspar, Devon’s chief operating officer, told investors during its fourth quarter conference call.
Shares of Devon were up about 5.7% to $54.35 on Wednesday, outpacing gains in rivals, after the company boosted its fixed dividend by 45% and increased a share repurchase program by 60% to $1.6 billion.
In the fourth quarter, Devon’s free cash flow was $1.1 billion. The company generated a record $2.9 billion of free cash flow for the full-year 2021.
(Reporting by Liz Hampton in Denver; editing by Barbara Lewis)
