Devon Energy Narrows Losses on Cost Cuts

By Ezequiel Minaya 

Devon Energy Corp. on Tuesday posted narrower losses for its first quarter, helped in part by a 36% decline in expenses as the oil-and-gas producer responded to depressed energy prices with a deep cut of its workforce.

During the three-month period ended in March, the Oklahoma City-based Devon reduced its workforce by 20%, resulting in $234 million in charges. Most of the charges will produce cash payments, with the vast majority in coming quarters. According to FactSet, Devon has 6,600 employees.

The company previously announced that it would cut 20% of its workforce in the first quarter, a move that could save the company up to $500 million a year when combined with other cost cuts. The company also expects to reduce its field-level costs by $300 million to $400 million this year.

Shares of the Oklahoma City-based Devon climbed 3.2% to $33.80 after hours Tuesday.

Overall, Devon reported a first-quarter loss of $3.1 billion, or $6.44 a share, compared with a year-earlier loss of $3.6 billion, or $8.88 a share. Excluding certain items, the company posted a loss of 53 cents a share.

Total operating revenue tumbled 34% to $2.13 billion. Expenses declined 36% to $5.6 billion.

Analysts polled by Thomson Reuters expected per-share loss of 64 cents and revenue of $2.57 billion.

Devon's reported oil production averaged 285,000 barrels a day in the first quarter.

Write to Ezequiel Minaya at [e-mail]

(END) Dow Jones Newswires

May 03, 2016 18:50 ET (22:50 GMT)

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