Devon profit beats Street on jump in Permian production

Reuters

Nov 6 (Reuters) - U.S. oil and gas producer Devon EnergyCorp posted a higher-than-expected quarterly profit onWednesday, helped by a jump in production from properties in thePermian basin of Texas and a rise in commodity prices.

Devon and other U.S. exploration companies, including EOGResources Inc and Apache Corp, are investingheavily in domestic shale formations like the Eagle Ford andPermian basins as a means of increasing production.

In the third quarter, Devon earned $429 million, or $1.05per share, compared with a year-earlier loss of $719 million, or$1.80 per share.

Excluding a gain on oil and natural gas hedges, as well asother one-time items, the profit was $1.29 per share. By thatmeasure, analysts on average expected $1.20, according toThomson Reuters I/B/E/S.

Oil production rose 16 percent to an average of 165,000barrels per day. Much of the growth came in the company'soperations in the Permian.

Devon's realized price for oil jumped 14 percent to $86.51per barrel during the quarter.

Shares of Devon rose 0.5 percent to $64.10 in premarkettrading. The stock has gained 23 percent so far this year.

View Comments (0)