Nov 6 U.S. oil and gas producer Devon Energy
Corp posted a higher-than-expected quarterly profit on
Wednesday, helped by a jump in production from properties in the
Permian basin of Texas and a rise in commodity prices.
Devon and other U.S. exploration companies, including EOG
Resources Inc and Apache Corp, are investing
heavily in domestic shale formations like the Eagle Ford and
Permian basins as a means of increasing production.
In the third quarter, Devon earned $429 million, or $1.05
per 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 as
other one-time items, the profit was $1.29 per share. By that
measure, analysts on average expected $1.20, according to
Thomson Reuters I/B/E/S.
Oil production rose 16 percent to an average of 165,000
barrels per day. Much of the growth came in the company's
operations in the Permian.
Devon's realized price for oil jumped 14 percent to $86.51
per barrel during the quarter.
Shares of Devon rose 0.5 percent to $64.10 in premarket
trading. The stock has gained 23 percent so far this year.