Devon Energy Center

[OKC74]

I guess there's no new news since this thread is inching closer to the bottom of the 2nd page...LOL... But no news is good news!!

[Architect2010]

i'd also like to see more of an OKC presence on skyscrapercity!

Ditto. We need to band together and promote OKC on national sites as well. You can carry the same topics here on there while letting people across the nation in on our city and its related discussions.

Theres probably 5 active people on there and Skyscraperpage. Its pathetic.

I'd support okctalk over that anyday, but still.

[Richard at Remax]

whats wrong with the southwest forum on skyscraperpage is that if you say something positive about your city, it turns into "well San Antonio has this and is better or Austin has this and is better".

if you have been on there then you know what Im talking about.

[warreng88]

The most important part of this article as it relates to the building is toward the end:

Devon Energy reports record loss
BY RANDY ELLIS

Published: February 4, 2009

Oklahoma City-based Devon Energy Corp. today reported a record $6.8 billion loss for the fourth quarter of 2008 — a sudden turn of events since the company reported a record $2.6 billion profit the previous quarter.

The $6.8 billion quarterly loss amounted to $15.42 per common share. For the year, Devon lost $2.1billion, or $4.85 a share. That was also a record.

Devon stock was trading down more than 5 percent in mid-morning trading as financial results did not meet analysts expectations.

The dramatic reversal at Devon is not the result of any major change in the way the company does business, said Vince White, Devon's senior vice president of investor relations. Instead, he said it is a reflection of oil prices that plunged from about $140 a barrel in mid-2008 to about $40 a barrel at the end of the year.

Securities and Exchange Commission rules required the company to value its oil and natural gas properties based on oil and gas prices on Dec. 31, resulting in a $7.1 billion non-cash charge, White said.

Accounting rules will change next year so that oil and gas properties will be valued at average prices throughout the year. Had those rules been in effect this year, Devon would not have had a loss, he said.

Despite the fourth quarter loss, Devon remains in good financial shape, White said.

Devon, Oklahoma's largest publicly traded company, has more than $3 billion in cash and unused credit lines and the non-cash charge does not impact the company's cash flow, cash position or access to credit lines, he said.

“It does not change the value of what we own at all,” White said. “It is purely an artifact of accounting.”

J. Larry Nichols, Devon's chairman and chief executive officer, was similarly optimistic about the company's underlying performance last year and its prospects for the future.

“Despite the effects of the sharp fourth-quarter declines in oil and natural gas prices, 2008 was a very successful year for the company,” Nichols said. “Cash flow reached an all-time record of nearly $10 billion. We increased oil and gas production by six percent and drilled 2,441 wells with a 98 percent success rate. In addition, we added 584 million barrels of proved reserves before price revisions at a very attractive cost per barrel.”

White said the loss does not alter Devon's plans to build a new office skyscraper in downtown Oklahoma City.

“We will need this building to accommodate our future growth,” he said.

http://newsok.com/article/3343215

[metro]

warreng, what is the source of that article, you didn't cite your source

[Richard at Remax]

it's from newsok.com

[warreng88]

warreng, what is the source of that article, you didn't cite your source

Fixed it, thanks for the heads up.

[SouthsideSooner]

This has everything to do with the decline in the price of oil and very little to do with Devons performance as a company...

The dramatic reversal at Devon is not the result of any major change in the way the company does business, said Vince White, Devon's senior vice president of investor relations. Instead, he said it is a reflection of oil prices that plunged from about $140 a barrel in mid-2008 to about $40 a barrel at the end of the year.

Securities and Exchange Commission rules required the company to value its oil and natural gas properties based on oil and gas prices on Dec. 31, resulting in a $7.1 billion non-cash charge, White said.

Accounting rules will change next year so that oil and gas properties will be valued at average prices throughout the year. Had those rules been in effect this year, Devon would not have had a loss, he said.

[OKC74]

Even with them saying that they have no plans to alter their plans on the building...is anyone else worried? What if prices keep DROPPING??

[sethsrott]

No I don't really fear it. Prices have, for the most part stabilized. Devon is a massive company, spread over three (is it four) different buildings downtown, efficiency is key in maintaining competitiveness, I have observed loads of Devon employees walking the concourse, to get from one building to another, that is time, that if added up over loads of employees that are being paid to walk from one building to another. (Very nicely I might add)

I think that Larry and the board understand that THEY stand to benefit from the completion of their tower. They have put off the construction of it so that it would benefit Downtown AND Devon. These plans have been made long ago, and I don't see them scraping them because of a slight change in trends.

[mcgrawsdad]

Oil won't keep dropping. Opec is about to make more cuts...it will keep prices stable at best, but imo, we will have $60 bbl by the 4th of July.

[ndmoore]

Devon is a massive company, spread over three (is it four) different buildings downtown,

It is 6 buildings now.

[DaveSkater]

Yes, as far as all my construction indicators point, they will be building it. My company is in talks for the electrical portion of the job. They already hired a construction manager, and the drawings are well underway, if not nearly complete. They're on track to do this thing!

[okcpulse]

Even with them saying that they have no plans to alter their plans on the building...is anyone else worried? What if prices keep DROPPING??

If they do keep dropping then those involved in the market need to back to school. Oil is a finite resource, and to under-value a finite resource regardless of demand is a move that will bite in the ass severely in the near future.

[jmlight]

They've closed down Harvey south of Park (where it feeds the City Center Parking Garage). Not sure if it has anything to do with building construction.

[hoya]

Oil is a finite resource. So is the sun. Both will eventually run out.

Oil priced at $50 a barrel is historically quite high. It's just not as high as we saw last year. It's like someone is kicking you in the nuts. They stop, and then start punching you in the face. It still hurts, but not nearly as much as it did.

Devon can still make lots of money with oil at its current price. If oil drops below $20/barrel, that's when we should start to worry.

[TStheThird]

Historically, China and India (37% of the world's population) did not consume oil like they do now.

In 1980, China consumed 1.694 mb/d (2.7%); in 2006 it consumed 7.445 mb/d or 8.9%. In 1980, India consumed 0.643 mb/d or 1.0% of the world's total; in 2006 it consumed 2.575 mb/d or 3.1% of the world's total.

If their economies continue to grow, we will see oil well into the hundreds again. This worldwide recession will keep oil somewhat low, but as soon as the world economy recovers, oil consumption will rise as fast as China and India rise. Price will follow.

[OUGrad05]

Oil is a finite resource. So is the sun. Both will eventually run out.

Oil priced at $50 a barrel is historically quite high. It's just not as high as we saw last year. It's like someone is kicking you in the nuts. They stop, and then start punching you in the face. It still hurts, but not nearly as much as it did.

Devon can still make lots of money with oil at its current price. If oil drops below $20/barrel, that's when we should start to worry.

Inflation adjusted 50 dollars a barrel is not quite high.

Its high compared with the 90s which was a period of artificially depressed prices due to a variety of factors.

A LOT of projects are not profitable at 50 dollar or less oil. Once the world economy rebounds prices will bounce back to a more reasonable level, probably somewhere in the 70 to 90 range and hopefully the SEC will overhaul their rules so that speculators must put 20% money in the pot instead of the 10% it is currently at. That would help decrease some of the volatility.

[OUGrad05]

Historically, China and India (37% of the world's population) did not consume oil like they do now.

In 1980, China consumed 1.694 mb/d (2.7%); in 2006 it consumed 7.445 mb/d or 8.9%. In 1980, India consumed 0.643 mb/d or 1.0% of the world's total; in 2006 it consumed 2.575 mb/d or 3.1% of the world's total.

If their economies continue to grow, we will see oil well into the hundreds again. This worldwide recession will keep oil somewhat low, but as soon as the world economy recovers, oil consumption will rise as fast as China and India rise. Price will follow.

bingo

[dmoor82]

any1 worried about this tower not being built?Or alterations to it or height reductions?I personally think it will be built by 2013(early) and the TIF already passed and the colcord was already bought so not too much to worry about-right?

[jbrown84]

Why do people keep asking the same question? We've been over this...

[Thunder]

Well, they do have plenty of cash reserved for the tower, so it should go as planned. I dunno why they would reduce anything, cuz the prices is pretty good for Devon, so they should be increasing more features (hopefully).

[fromdust]

Well, they do have plenty of cash reserved for the tower, so it should go as planned. I dunno why they would reduce anything, cuz the prices is pretty good for Devon, so they should be increasing more features (hopefully).

thats what i think. if they have all that cash on hand, this is the perfect time to build since all construction materials are down and will continue to creep down over the course of the year. they will end up spending less than the estimated $750 million.

Free Steel Price Charts
Recession KO’s Inflation in 2009 | ENR: Engineering News Record | McGraw-Hill Construction

[Thunder]

True. And the construction companies will be bidding like crazy to get those jobs.

Thx to Devon, thats more jobs in OKC. More taxes locally, further helping the economy floating.

[sethsrott]

I propose we lock this thread...I am so tired of every six posts it seems like, someone is asking "Is anyone worried?"

PLEASE READ THE PREVIOUS POSTS BEFORE POSTING!!!!!!