Devon Energy Q2 Profit Climbs On Higher Output - Update

(RTTNews) - Oil and gas company Devon Energy Corp. (DVN) Wednesday reported a higher second-quarter profit, as quarterly production increased, benefited from better than expected results from several core development areas, including Permian Basin and Barnett Shale.

Total production increased to an average of 698,000 oil-equivalent barrels, or boe per day in quarter, that exceeded the top-end of its guidance range by 8,000 barrels per day, the company said.

Oil production averaged 169,000 barrels per day, a 14 percent increase from the prior year. The company delivered 36 percent growth in U.S. oil production driven by Permian basin.

In Permian basin, production averaged 76,000 Boe per day. Oil production increased 32 percent, and now accounted for 60 percent of Devon's total Permian production.

Total oil equivalent production increased to 63.5 MMBoe from 61.8 MMBoe in the year-ago period.

The company's realized price per barrel of oil equivalent or Boe, including cash settlements, was $35.23 in the quarter, up from $30.51 in the same period last year.

John Richels, president and chief executive officer of the company said, "The second quarter was an outstanding one for Devon as we continued to successfully grow high-margin oil production. We remain on track to deliver total companywide oil production growth in the high teens for 2013, led by light-oil growth of nearly 40 percent in the U.S."

In the second quarter, the company's net earnings increased to $683 million or $1.68 per share from $477 million or $1.18 per share reported last year.

Adjusting for items, earnings were $1.21 per share in the recent second quarter.

On average, 27 analysts polled by Thomson Reuters expected the company to earn $0.95 per share for the quarter. Analysts' estimates typically exclude special items.

Total revenues grew to $3.09 billion from $2.56 billion in the prior year. Analysts expected revenue of $2.65 billion for the quarter. Oil, gas and NGL sales were $2.22 billion, significantly up from $1.62 billion a year ago.

DVN is currently trading at $57.43, up 2.92 percent on the NYSE.