By Denny Deady | Published Thursday, August 27, 2009
Devon Energy has reported net earnings of $314 million for the quarter ended June 30. Last year at this time, the company reported net earnings of $1.3 billion.
Production of oil, natural gas and natural gas liquids increased 12 percent to a record 65.4 million oil-equivalent barrels in the second quarter. Lower prices for all three products led to the decrease in quarterly net earnings.
For the first half of the year, Devon reported a net loss of $3.6 billion or $8.21 per common share.
Devon's second quarter 2009 financial results were impacted by certain items securities analysts typically exclude from their published estimates. Excluding those items, Devon earned $379 million in the second quarter of 2009.
Combined oil, gas and natural gas liquids production averaged 719,000 Boe per day in the second quarter, the highest average daily production of any quarter in Devon's history and compares with 643,000 Boe per day in the second quarter of 2008. Average daily production in the second quarter increased five percent.
The 12 percent increase, 2009 over 2008, was driven by growth in all major operating segments. U.S. onshore natural gas production, led by the Barnett Shale field in Texas showed significant growth. Despite the strong production growth, revenues from oil, gas and natural gas liquids sales decreased 58 percent to $1.7 billion in the second quarter. Dramatically lower prices for all three products more than offset the increases in production.
Devon's average price for natural gas decreased 70 percent in the second quarter, compared to the second quarter of 2008, to $2.91 per thousand cubic feet. The company's average oil price decreased 53 percent to $52.44 per barrel in the second quarter and Devon's average natural gas liquids price decreased 59 percent to $22.24 per barrel.
