Shale play Devon Energy $DVN reported better than expected second quarter earnings after the market close Tuesday. Devon lowered CAPEX spending alomg with other key Shale names in the Permian, Marcellus and Utica.
Shale play Devon Energy $DVN reported better than expected second quarter earnings after the market close Tuesday. DVN lowered it’s CAPEX guidance in line with many other energy names.
Devon joined other key Shale names with footprints in the main shale basins the Permian, Marcellus and Utica including Diamondback Energy $FANG and EOG Resources $EOG.
Earnings: EPS of 34 cents on revenue of $3.27 billion. Expected were EPS profit of 32 cents, revenue up to $3.25 billion.
Reaction: Devon Energy Corp NYSE: DVN After-hours: 32.80 0.18 (-0.55%)
Production fell nearly 17 percent to 536,000 barrels of oil equivalent per day.
Realized oil equivalent (boe) was higher at $24.94 per barrel up from $17.97 a year earlier
Devon on Monday announced it sold Eagle Ford Assets to Penn Virginia for $205 Million as part of its $1 billion divestiture plan, first announced in May.
“Devon achieved another high-quality operating performance in the second quarter, building operational momentum in our U.S. resource plays and accelerating efficiency gains across our portfolio,” said Dave Hager, president and CEO. “These successful efforts resulted in record-setting well results that drove our U.S. oil production above guidance expectations with a capital investment that was 17 percent below our budget year to date. As a result of this strong capital efficiency, we are lowering our full-year capital outlook by $100 million and, importantly, we have not made any changes to our planned activity levels in 2017.
Full-year capital investment is now seen at $1.9 billion-$2.2 billion, a $100 million decrease compared to previous guidance, due to operational efficiencies $DVN left activity guidance is unchanged.
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