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Feb 14 Devon Energy Corp reported a
bigger-than-expected quarterly profit, as the U.S. oil producer
benefited from its cost-cutting initiatives.
Devon, like other oil and gas companies, has been keeping a
tight leash on costs since a slide in global crude oil prices
started in mid-2014.
The company said on Tuesday total operating expenses fell
67.4 percent to $2.71 billion in the fourth quarter ended Dec.
Total cost savings exceeded $1 billion in 2016, the company
Devon has also sold its non-core assets, completing a $3.2
billion divestiture program in October.
The shift to higher-margin production helped make oil the
largest component of the company's product mix in the fourth
The company said it expected 2017 production at between
539,000-561,000 barrels of oil equivalent per day (boe/d).
Total production was 611,000 boe/d in 2016.
Devon said it expected to spend $2.3 billion-$2.7 billion
this year. The company spent $3.11 billion in 2016.
Net earnings attributable to Devon was $331 million, or 63
cents per share, for the three months ended Dec. 31, compared
with a loss of $4.53 billion, or $11.12 per share, a year
The year-ago quarter included a non-cash, asset impairment
charge of $5.34 billion.
On an adjusted basis, the Oklahoma-based company earned 25
cents per share, while analysts on average had expected 21
cents, according to Thomson Reuters I/B/E/S.
Total revenue rose 16 percent to $3.35 billion.
Total production, net of royalties, fell 21 percent to
537,000 boe/d in the quarter.
Up to Tuesday's close, shares had more than doubled in the
past 12 months.
(Reporting by Ahmed Farhatha in Bengaluru; Editing by Sriraj