Devon Energy profit misses as output hit by winter storm
Feb 14 (Reuters) - Shale oil producer Devon Energy (DVN.N) on Tuesday missed Wall Street estimates for fourth-quarter profit due to a hit to production from severe cold weather in the United States during the period, as well as higher expenses on personnel.
Shares of the company fell 5% to $60.65 in extended trading.
Winter Storm Elliott brought subfreezing temperatures and extreme weather to about two-thirds of the United States in December, forcing oil and gas wells freeze-ins, where ice crystals halt oil and gas production.
Devon had said in January that it estimated its fourth-quarter production to be 2% lower, with operations at its Williston basin in North Dakota affected the most.
For 2023, the company forecast production in the range of 643,000 to 663,000 barrels of oil equivalent per day (boepd). The company's output averaged 636,000 boepd in the October-December quarter.
Devon said its expenses increased 1% in 2022, driven by higher personnel costs in the reported quarter.
It also said that it expects total capital investment between $3.6 billion and $3.8 billion in 2023 with higher spending in the first half due to a temporary fourth frac crew in the Delaware Basin. The company also hiked its fixed quarterly dividend by 11%.
Excluding hedges, Devon said its realized price slightly rose to $53.66 from $53.12 for the fourth quarter.
The Oklahoma City-based company posted adjusted earnings of $1.66 per share for the quarter ended Dec. 31, compared with average analysts' estimate of $1.75 per share, according to Refinitiv data.
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