(Reuters) - U.S. oil and gas producer Devon Energy Corp (DVN.N) raised its annual production forecast on Tuesday, saying it expected total output to rise 16 percent from last year compared with an earlier forecast of 14 percent.
The Oklahoma City-based shale company’s production for the first quarter was near the high end of its outlook after disappointing fourth-quarter results. Its shares jumped more than 3 percent to $37.45 in late trading.
Devon produced 544,000 barrels of oil-equivalent per day in the quarter ended March 31, compared with 563,000 boepd in the same period a year earlier. Results were near the high end of a February projection of between 530,000 and 554,000 boepd.
Net loss attributable to shareholders was $197 million, or 38 cents per share, compared with a profit of $303 million, or 58 cents per share, a year earlier. The loss reflected a $312 million charge to earnings to retire debt during the period.
Excluding the charge, Devon earned 20 cents per share, in line with analysts’ average estimate, according to Thomson Reuters I/B/E/S.
Total revenue rose to $3.81 billion from $3.55 billion in the same period a year ago.
The company also said it reached an agreement with DowDupont (DWDP.N) in which the chemicals producer will pay $75 million over five years for a half interest in 116 undrilled locations in the Barnett shale region of Texas. Devon will drill and operate up to 24 wells per year as part of agreement.
Devon forecast production for the current quarter of between 524,000 and 549,000 boepd and estimated full year output of between 536,000 and 560,000 boepd.
Reporting by Yashaswini Swamynathan and Diptendu Lahiri in Bengaluru; Editing by Patrick Graham and Dan Grebler