DVN Devon Energy Corp

   By Micah Maidenberg 
 

Devon Energy Corp. (DVN) lifted oil and gas production in the second quarter as prices for both commodities rose, but the company reported a loss amid growing expenses.

Oklahoma City-based Devon said in its second-quarter earnings report Tuesday that the firm produced an average of 541,000 barrels of oil equivalent of petroleum and natural gas in the quarter, compared to 536,000 barrels a year ago. Analysts surveyed by FactSet expected 530,000 barrels.

Revenue ticked up 4% to $2.2 billion, surpassing expectations of analysts surveyed by FactSet, who predicted $1.6 billion.

The company struggled with higher costs, however, leading to a loss from continuing operations of $474 million, or 92 cents a share. Analysts expected income from continuing operations of 31 cents a share.

The company incurred higher marketing costs and restructuring spending, as well as production expenses that were elevated from a year earlier. For example, gathering, processing and transportation costs, a major component of production expenses, rose 40% to $224 million during the quarter.

Devon reported adjusted earnings of 26 cents a share, below the average analyst estimate of 37 cents on FactSet.

Shares of Devon fell slightly to $45.01 on Tuesday, and were down 2.8% in after-hours trading.

Earlier this month, the company completed its sale of interests in oil logistics company EnLink Midstream LLC for $3.1 billion and boosted the company's share repurchase program to $4 billion.

"With the EnLink transaction, we're further simplifying the Devon story," Devon Chief Financial Officer Jeffrey Ritenour said at a conference in June.

Write to Micah Maidenberg at micah.maidenberg@wsj.com

(END) Dow Jones Newswires

July 31, 2018 18:27 ET (22:27 GMT)

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