(Reuters) - Devon Energy Corp trimmed its full-year exploration spending by $100 million, joining a growing list of U.S. shale producers who have cut their budgets for the year.
Producers have started to trim their 2017 capital spending budgets citing weaker-than-expected oil prices this year. [O/R]
Devon on Tuesday said it now expects to spend $1.9 billion to $2.2 billion on exploration and production in full-year 2017.
“We have not made any changes to our planned activity levels in 2017,” Devon Chief Executive Dave Hager said in a statement.
Anadarko Petroleum Corp, ConocoPhillips, Whiting Petroleum Corp and Hess Corp last week cut a combined $750 million from their total capex plans. Devon also said it expects annualized savings of $1.4 billion this year.
On Monday, Devon said it would sell assets in the Eagle Ford shale in Texas for $205 million, as part of its $1 billion divestiture plan, first announced in May.
The company, like other oil and gas producers, has been keeping a tight leash on costs since a slide in global crude oil prices started in mid-2014.
Net income attributable to Devon was $425 million, or 80 cents per share, in the second quarter ended June 30, compared with a loss of $1.57 billion, or $3.04 per share, in the same period a year earlier.
Excluding items, the company earned 34 cents per share, beating analysts’ average estimate of 32 cents, as higher average realized prices offset a drop in production.
Devon realized $24.94 per barrel of oil equivalent (boe), higher than $17.97 a year earlier.
Production fell nearly 17 percent to 536,000 barrels of oil equivalent per day.
Shares of Devon were down 0.6 percent in after-hours trading on Tuesday.
Reporting by John Benny in Bengaluru and Ernest Scheyder in Houston; editing by Sriraj Kalluvila, Maju Samuel and G Crosse