May 2 (Reuters) – U.S. oil producer Devon Energy Corp said it would divest about $1 billion of its assets, and also reported a quarterly profit that beat analysts’ estimates.
The assets include certain portions of its Barnett shale properties focused around Johnson County, Texas.
“This divestiture program … supports our capital program and places us firmly on track to achieve our production growth targets in 2017 and 2018,” Chief Executive Dave Hager said in a statement.
Net earnings attributable to Devon was $565 million, or $1.07 per share, in the first quarter ended March 31, compared with a loss of $3.06 billion, or $6.44 per share, a year earlier.
The year-ago quarter included an asset impairment charge of $3.04 billion and restructuring and transaction costs of $247 million.
On an adjusted basis, Devon earned 41 cents per share, while analysts on average had expected 40 cents, according to Thomson Reuters I/B/E/S.
The company said its total operating expenses nearly halved to $2.84 billion.
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.
Revenue jumped 67 percent to $3.55 billion. However, total production, net of royalties, fell 17.8 percent to 563,000 barrels of oil equivalent per day.
Shares of the company rose 2.8 percent to $39.97 in after-hours trading on Tuesday.
(Reporting by Sruthi Shankar and John Benny in Bengaluru; Editing by Maju Samuel)
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