Nov 7 Devon Energy Corp reported a
third-quarter loss and wrote down the value of some assets, like
many other natural gas-focused companies, as gas prices remained
Devon, a producer of natural gas liquids (NGLs) such as
propane and ethane, took a $1.1 billion non-cash asset
impairment charge as the carrying value of its oil and gas
U.S. oil and gas companies such as Chesapeake Energy Corp
and Anadarko Petroleum Corp have written off the
value of their assets over the past few months, as natural gas
prices hit a decade-low earlier this year.
Low natural gas prices sent many exploration and production
companies in search of NGLs such as butane, propane and ethane,
but excess supplies of these liquids have put pressure on their
Prices for pentanes and butane have held up because of
demand from the booming oil industry, but ethane prices have fallen more than 60 percent this year.
"As we have pursued higher-returning oil projects, we also
have de-emphasized natural gas drilling, limiting overall
production growth," Devon Chief Executive John Richels said in a
Devon reported a loss of $719 million, or $1.80 per share,
compared with a profit of $1 billion, or $2.51 per share, a year
Excluding items, the company earned 88 cents per share.
Revenue fell 47 percent to $1.87 billion as average realized
prices for natural gas fell 27 percent, and that for natural gas
liquids fell 37 percent.
Analysts on average expected a profit of 69 cents per share
on revenue of $2.27 billion, according to Thomson Reuters
Shares of Devon, valued at $24.12 billion, closed at $59.62
on the New York Stock Exchange on Tuesday.