Devon Energy Posts Q1 Loss On Charges; Raises 2015 Production Outlook

(RTTNews) - Devon Energy Corp. (DVN) reported that, due to a non-cash, full-cost ceiling charge, it had a net loss of $3.6 billion for the first-quarter 2015. In the first-quarter of prior year, reported net earnings were $324 million. Loss per share was $8.88, compared to profit of $0.79. Core earnings was $89 million, or $0.22 per share, for the first quarter of 2015.

On average, 33 analysts polled by Thomson Reuters expected the company to report profit per share of $0.26 for the quarter. Analysts' estimates typically exclude special items.

Revenue from oil, natural gas and natural gas liquids sales totaled $1.3 billion in the first quarter of 2015. Total operating revenues were $3.27 billion, compared to $3.73 billion, prior year. Analysts expected revenue of $3.75 billion for the quarter.

Total production from Devon's retained asset base averaged 685,000 oil-equivalent barrels (Boe) per day during the first quarter of 2015, which represents a 22 percent increase compared to the first quarter of 2014.

Devon raised its 2015 total oil production growth to a range of 25 to 35 percent, a substantial increase from the company's previous full-year growth guidance of 20 to 25 percent. Due to the improving outlook for oil production, the company has also raised its top-line production growth guidance in 2015 to a range of 5 to 10 percent.

The company's 2015 E&P capital program is now expected to range from $3.9 to $4.1 billion. This represents a $250 million reduction in capital spending compared to the previous guidance.