Devon Energy Earnings Beat Expectations

By Neil Haggerty 

Devon Energy Corp. reported better-than-expected earnings for its most recent quarter, helped by growth in its U.S. operations and cost reduction initiatives.

Shares rose 2.52% to $49.97 in after-hours trading.

The news comes as the company transitioned former Chief Operating Officer Dave Hager into the chief executive position. Mr. Hager replaced John Richels, who announced in December his plans to retire.

The company has been shifting its focus to oil, from its roots as a natural-gas producer, through a series of acquisitions and sales. It has seen its most significant growth from its U.S. operations, largely attributable to its Eagle Ford and Delaware Basin assets. The company reported average oil production in the U.S. of 172,000 barrels a day, a 35% year-over-year increase.

For the quarter ended June 30, the company reported a loss of $2.82 billion, or $6.94 a share, compared with earnings of $675 million, or $1.64 a share a year earlier. Excluding a noncash, full-cost ceiling charge, the company reported core earnings of $320 million, or 78 cents a share.

Revenue fell 25% to $3.39 billion.

Analysts polled by Thomson Reuters were looking for 42 cents a share on $3.74 billion in revenue.

Write to Neil Haggerty at [e-mail]

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