Devon Energy Swings to Loss

Devon Energy Corp. swung to a third-quarter loss on an asset write-down as the oil-and-gas producer's revenue slumped on low commodities prices.

However, the Oklahoma City company's shares rose 2.4% to $46.30 in recent after-hours trading as per-share earnings, excluding the write-down and other one-time items, beat expectations.

Devon has shifted its focus to oil production from its roots as a natural-gas company through acquisitions and a series of divestitures in recent years. In the latest quarter, oil represented roughly 70% of Devon's exploration-and-production revenue, compared with 63% a year earlier.

Like other oil producers, Devon has been aiming to reduce costs amid low commodities prices and on Tuesday again reduced its 2015 capital-spending estimate, this time by $100 million, to a range between $3.8 billion and $4 billion.

New Chief Executive Dave Hager, who took the helm Aug. 1, said that looking ahead the company plans to aggressively pursue cost reductions and maintain the flexibility of capital programs.

He succeeded John Richels, who retired as CEO but remained on as vice chairman. Mr. Richels is expected to be named chairman when co-founder and Executive Chairman Larry Nichols is set to retire.

Overall, Devon reported a loss of $3.51 billion, or $8.64 a share, from $1.02 billion, or $2.47 a share, a year earlier. Excluding asset write-downs and other items, per-share earnings were 76 cents. Revenue slumped 33% to $3.6 billion as increased production was offset by lower average selling prices.

Analysts polled by Thomson Reuters expected per-share profit of 52 cents and revenue of $3.97 billion.

Write to Tess Stynes at [e-mail]

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(END) Dow Jones Newswires

November 03, 2015 19:35 ET (00:35 GMT)

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