Devon Energy Plans To Divest $1B Assets; Profit Beats
May 2 (Reuters) - U.S. oil producer Devon Energy Corp said it would divest about $1 billion of its assets, and also reported a quarterly profit that beat analysts' estimates.
The assets include certain portions of its Barnett shale properties focused around Johnson County, Texas.
"This divestiture program ... supports our capital program and places us firmly on track to achieve our production growth targets in 2017 and 2018," Chief Executive Dave Hager said in a statement.
Net earnings attributable to Devon was $565 million, or $1.07 per share, in the first quarter ended March 31, compared with a loss of $3.06 billion, or $6.44 per share, a year earlier.
The year-ago quarter included an asset impairment charge of $3.04 billion and restructuring and transaction costs of $247 million.
On an adjusted basis, Devon earned 41 cents per share, while analysts on average had expected 40 cents, according to Thomson Reuters I/B/E/S.
The company said its total operating expenses nearly halved to $2.84 billion.
Devon, like other oil and gas companies, has been keeping a tight leash on costs since a slide in global crude oil prices started in mid-2014.
Revenue jumped 67 percent to $3.55 billion. However, total production, net of royalties, fell 17.8 percent to 563,000 barrels of oil equivalent per day.
Shares of the company rose 2.8 percent to $39.97 in after-hours trading on Tuesday.
(Reporting by Sruthi Shankar and John Benny in Bengaluru; Editing by Maju Samuel)
WHAT DO YOU THINK?
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
- Weatherford CEO's Rebound Plan Relies On Getting Smaller
- Iran Says Oil Market Is Too Tight For US Zero Exports Target
- China's Squeezed 'Teapots' Eye Petchem Path To Riches
- Baker Hughes: US Drillers Add Oil Rigs For Second Week In Three
- Venezuela Hands China More Oil Presence, But No Mention Of New Funds
- ExxonMobil Racks Up Discoveries in Guyana Block Eyed by Chevron
- Oil Market Sentiment Has Improved Significantly
- EU, US Eye Collaboration on Nuclear Materials
- USA Driving Activity to Increase to All-Time Highs
- EU Electricity Export to Ukraine Up 94 Percent in Two Years
- China Coal Output Falls for First Time since Government Ordered More
- TC Energy to Sell Prince Rupert Gas Pipeline Project to First Nation
- BP Pulse Buys One of Europe's Largest Truck Stops
- UK CCUS Plans Outdated: Think Tank
- I Squared Eyes Full Ownership of Europe Gas Storage Firm
- Norway Regulator Blasts Proposal to Halt New Oil and Gas Permits
- Chinese Mega Company Makes Major Oilfield Discovery
- EIA Drops 2024 Henry Hub Gas Price Forecast
- EIA and Standard Chartered Offer Up Latest Oil Price Predictions
- Red Sea Region Sees Another Watershed Incident
- Chevron Oil Project in Kazakhstan to Cost $48.5B
- OPEC Voices Encouragement after IEA Affirms Support for Oil Security
- Biden Govt Bares Strategy for Freight Charging, Hydrogen Fueling Infra
- Ukraine Hits Third Russian Refinery In Escalating Drone Strikes
- Rystad Looks at the Buzz Around White Hydrogen
- VIDEO: Missile Attack Kills Crew Transiting Gulf of Aden
- Norway Regulator Blasts Proposal to Halt New Oil and Gas Permits
- Chinese Mega Company Makes Major Oilfield Discovery
- What Is the Biggest Risk to Offshore Oil and Gas Personnel in 2024?
- Is Peak Oil Demand Close?
- Vessel Sinks in Red Sea After Missile Strike
- JP Morgan, Standard Chartered Reveal Latest Oil Price Forecasts
- Exxon Rights in Stabroek Do Not Apply to Hess Merger with Chevron: Hess
- Rystad Forecasts Net Production of Top Permian Producers in 2024
- Analysts Reveal Latest Oil Price Outlook Following OPEC+ Cut Extension