April 22 (Reuters) - Devon Energy DVN.N said on Tuesday it plans to boost its annual free cash flow by $1 billion by the end of 2026.
The U.S. oil and gas producer aims to achieve this by reducing drilling and completion costs and improving operating margins.
"Given the challenging market and shifting competitive landscape, this is the right moment to focus internally and improve our profitability," CEO Clay Gaspar said in a statement.
Devon expects to save $300 million through capital efficiency, another $250 million by cutting production and operating costs and an additional $300 million through enhancing commercial contracts.
Nearly 30% of the estimated improvements are expected to be achieved by the end of 2025, with the remaining by the end of 2026, the company said.
(Reporting by Pooja Menon in Bengaluru; Editing by Sriraj Kalluvila)
((Pooja.Menon@thomsonreuters.com;))
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.