Devon Energy 1Q Swings To 1Q Loss On $4.2 Billion Write-Down

   DOW JONES NEWSWIRES 
 

Devon Energy Corp. (DVN) said Wednesday it swung to a first-quarter loss on a $4.2 billion write-down of the value of its oil and gas properties.

The oil and gas independent - meaning it produces oil and gas but doesn't refine - has grown through its unconventional natural gas sources, such as shale. Falling commodity prices have hit the industry hard, however, driving many companies to cut back production and capital spending.

The company had $1.54 billion in capital expenditures during the quarter, down from $2 billion a year earlier. Devon said in December it was delaying the release of its capital budget until early this year, citing market volatility, though it projected activity would decrease. It didn't give any forecasts for spending with its results.

Devon posted a loss of $3.96 billion, or $8.92 a share, compared-with year-earlier income of $749 million, or $1.66 a share, a year earlier. The latest results included the write-down, while the prior year's included 22 cents in income from discontinued operations. Excluding items, earnings were 48 cents.

Revenue decreased 32% to $2.03 billion.

Analysts surveyed by Thomson Reuters expected earnings of 28 cents on revenue of $1.84 billion.

The company does most of its business in North America. Devon shed its West African properties in 2007 and 2008, but it still has assets in China, Brazil and Azerbaijan.

Production from continuing operations rose 7% to 685,000 barrels of oil equivalent a day. Total natural gas production rose 9.8% as realized prices, excluding hedging effects, dropped 49%. Oil production fell 4.9% as prices plunged 62%.

Devon's shares closed Tuesday at $54.48 and haven't traded premarket.

-By Kerry E. Grace, Dow Jones Newswires; 201-938-5089; [e-mail]