Devon Energy Trims Full-Year Spending

Reuters

Aug 1 (Reuters) - Devon Energy Corp trimmed its full-year exploration spending by $100 million, joining a growing list of U.S. shale producers who have cut their budgets for the year.

Producers have started to trim their 2017 capital spending budgets citing weaker-than-expected oil prices this year.

Devon on Tuesday said it now expects to spend $1.9 billion to $2.2 billion on exploration and production in 2017.

Last week, Anadarko Petroleum Corp, ConocoPhillips , Whiting Petroleum Corp and Hess Corp cut a combined $750 million from their total capex plans.

Devon also said it expects annualized savings of $1.4 billion this year.

On Monday, Devon said it would sell assets in the Eagle Ford shale in Texas for $205 million, as part of its $1 billion divestiture plan, first announced in May.

The company, like other oil and gas producers, has been keeping a tight leash on costs since a slide in global crude oil prices started in mid-2014.

Net income attributable to Devon was $425 million, or 80 cents per share, in the second quarter ended June 30, compared with a loss of $1.57 billion, or $3.04 per share, a year earlier.

Excluding items, the company earned 34 cents per share, beating the average analyst estimate of 32 cents, as higher average realized prices offset a drop in production.

Devon realized $24.94 per barrel of oil equivalent (boe), higher than $17.97 a year earlier.

Production fell nearly 17 percent to 536,000 barrels of oil equivalent per day.

Shares of Devon were down 1.8 percent in after-market trading on Tuesday.

(Reporting by John Benny in Bengaluru; Editing by Sriraj Kalluvila and Maju Samuel)

Copyright 2017 Thomson Reuters. Click for Restrictions.

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