Devon Energy Corp. on Wednesday reported second-quarter earnings of $477 million, or $1.18 a share, down from $2.7 billion, or $6.50 a share, in the same period last year, when asset sales boosted earnings.
Devon's stock dipped $2.06 a share Wednesday, closing at $57.06.
CEO John Richels acknowledged earnings fell short of expectations, but he said the company remains on track with its long-term strategic plan.
“We continued to deliver strong growth in oil production, driving companywide oil production up 26 percent,” he said in Wednesday's earnings call.
Richels said oil accounted for almost 60 percent of Devon's upstream revenue in the quarter, despite “unusually weak” prices in Canada.
He said Devon's joint ventures, including a $1.4 billion deal with Japan's Sumitomo Corp. announced Wednesday morning, will allow the company to invest more of its cash flow in development opportunities.
Richels said Devon has amassed an additional 400,000 acres in the Mississippian oil play, beyond the area covered in its joint venture with China's Sinopec International Petroleum Exploration & Production Corp.