Devon Energy posts loss on asset write-down
OKLAHOMA CITY (AP) — Devon Energy Corp. on Wednesday posted a fourth-quarter loss due to an $896 million write-down related to its value of its gas and oil assets, but its adjusted results beat market expectations.
The Oklahoma City-based oil and gas exploration company reported a net loss of $357 million, or 89 cents per share, for the three months ended Dec. 31. That's compared with net income of $507 million, or $1.25 per share, in the fourth quarter of 2011.
Excluding the impairment charge and other special items, Devon said its adjusted earnings came to 78 cents per share in the most recent quarter.
Devon's total revenue slipped slightly to $2.58 billion from $2.59 billion.
Analysts, on average, were expecting the company to earn 75 cents per share on revenue of $2.24 billion, according to FactSet.
Oil production averaged 151,000 barrels per day, a 13 percent increase compared to the 2011 fourth quarter. The company said the most significant growth in oil production came from the U.S., where quarterly year-over-year oil production increased 30 percent.
"In spite of a challenging commodity price environment that impacted our financial results, Devon delivered solid operating results in 2012," John Richels, Devon's president and chief executive officer, said in a statement. "This is evident through the strong oil production growth we delivered during the year and the impressive growth in oil reserves."