Devon Energy's 3rd-quarter profit declines

Devon Energy posts decline in 3rd-quarter profit, tops analysts forecast

• On 11:38 am EST, Wednesday November 4, 2009

OKLAHOMA CITY (AP) -- Independent oil and gas producer Devon Energy Corp. on Wednesday said its third-quarter tumbled as lower crude oil and natural gas prices offset higher production and lower costs.

Quarterly earnings declined to $499 million, or $1.12 per share, compared with $2.6 billion, or $5.88 per share, in the year-ago period.

Excluding special items, adjusted earnings totaled $491 million, or $1.10 per share.

In a survey by Thomson Reuters, analysts on average predicted a profit of 90 cents per share. Analysts typically exclude nonrecurring items.

Revenue fell 65 percent to $2.10 billion from $5.98 billion in the prior-year period. Analysts expected revenue of $2.04 billion, on average.

Sales from oil, gas and natural gas liquids fell 54 percent to $1.17 billion in the third quarter. Significantly lower product prices more than offset the growth in natural gas and liquids production.

Shares of Devon rose $1.19, or 1.8 percent, to $67.64 in late morning trading.