May 5, 2020 / 8:37 PM / 23 days ago

Devon Energy posts bigger loss on $2.8 billion asset writedown, cuts output view

FILE PHOTO: A pump jack operates at a well site leased by Devon Energy Production Company near Guthrie, Oklahoma, September 15, 2015. REUTERS/Nick Oxford

(Reuters) - Oil and gas producer Devon Energy (DVN.N) posted a bigger quarterly loss on Tuesday as it took an asset writedown of $2.8 billion and said it expects to cut 10,000 barrels of a day in the second quarter as oil prices crater.

The company also cut its 2020 production forecast to between 300,000 to 319,000 barrels of oil equivalent per day (boepd) from 328,000 to 339,000 boepd.

The Oklahoma-based company, which has been selling its assets to become a pure-play U.S. oil producer, has cut its annual budget twice in March.

With the oil prices at their lowest in decades due to weak demand as well as a supply glut, it has also put off activities across its portfolio except at its assets in the Permian’s Delaware Basin.

Most shale companies have cut their annual budget, slashed or suspended dividends and reduced jobs as they try to shore up cash.

Net loss attributable to the company rose to $1.82 billion, or $4.82 per share, in the first quarter, from $317 million, or 74 cents per share, a year earlier. [bit.ly/2YBAQxC]

Total production rose to 348,000 boepd from 313,000 boepd a year earlier, led by output from the Delaware Basin.

Reporting by Shanti S Nair in Bengaluru; Editing by Vinay Dwivedi and Arun Koyyur

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