Devon Energy's Loss Narrows
August 02 2016 - 6:10PM
Dow Jones News
Devon Energy Corp. said its second-quarter loss narrowed as the
oil-and-gas company benefited from its cost-cutting efforts, along
with a decline in asset write-downs and other items.
The Oklahoma City company has cut costs, shed noncore assets and
slashed its dividend as part of its efforts to improve its balance
sheet amid a commodities downturn.
Devon last month completed its goal of divesting itself of $2
billion to $3 billion in assets with a deal to sell its 50%
ownership stake in Access Pipeline to Wolf Midstream Inc., which
brought Devon's asset-sale tally to $3.2 billion.
Devon, which has been increasing its focus on North America in
recent years, on Tuesday raised its 2016 production guidance for
its remaining operations by 3%.
Chief Executive Dave Hager said in prepared remarks that the
company's production from U.S. resource plays again topped
expectations. He added that with cost-savings so far this year,
Devon is on track to reduce its overhead costs by nearly $1 billion
this year.
Over all, Devon reported a loss of $1.57 billion, or $3.04 a
share, compared with a year-earlier loss of $2.82 billion, or $6.94
a share. Excluding asset write-downs, restructuring-related
expenses and other items, adjusted per-share earnings were 6 cents.
Revenue dropped 27% to $2.49 billion amid lower average selling
prices.
Analysts polled by Thomson Reuters expected a per-share loss of
19 cents and revenue of $2.33 billion.
Lease operating expenses declined by 26%, driven by improved
power and water-handling infrastructure, declining labor expense
and lower supply-chain costs. Overhead costs declined 31%.
The company raised its estimated 2016 upstream capital spending
budget by $200 million to between $1.1 billion and $1.3 billion,
with the potential to add as many as seven rigs in key U.S.
resource plays.
Write to Tess Stynes at tess.stynes@wsj.com
(END) Dow Jones Newswires
August 02, 2016 17:55 ET (21:55 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
Devon Energy (NYSE:DVN)
Historical Stock Chart
From Aug 2024 to Sep 2024
Devon Energy (NYSE:DVN)
Historical Stock Chart
From Sep 2023 to Sep 2024