let's bring on larry nichols, ceo of devon energy. welcome back to "mad money." >> good to be here. glad to be here. >> all right. some exciting things at your company. the gulf of mexico, perhaps. we get some news there. obviously you're drilling like mad in hainesville. is that why we're having that great growth, and shouldn't that eventually close the disparity between some of the other guys that have moved up more? >> it will. as you mentioned, we have not hedged. there are a lot of people who rewarded hedging. >> you guys are the play. >> that was the big drag on us. those hedges roll off for everybody else, that -- that advantage the other has will go away. >> and then we'll go back to production growth. >> and then we'll go back to honest, real production growth. and we're having that across the board, whether it's the heavy oil in canada, the shale hit a record. we have record production growth in the second quarter. that's incredible. >> yeah. that is amazing. it really is. now, interesting fact. back in july when natural gas was 25% higher, your stock was 20% lower. how do

first on cnbc from devin's headquarters in oklahoma city, larry nichols, devin energy ceo. , welcome back to the program. good to see you again. >> good morning. >> production awfully good. i guess the pricing is still problematic, is that right? >> gas pricing is problematic. oil pricing has come back nicely, substantially over the first quarter of this year. in fact, our gain in oil prices more than offset the decline in gas prices, shows one of the advantage of devon is the balance we have between oil and gas. as you said the real story is production growth. we hit a record high of our company of production growth. to do that at a time when we have slashed our budget in half, budget for drilling, we're delighted with that result. >> how long can you keep up that trajectory for production. >> we don't intend to keep it up very long. we know gas prices are weak. we're going to actively retrain gas production, not putting as much money into that. gas prices will cover going into next we're and we want to be poised to take advantage of that, which is where we'll be. >> where