The third quarter was a mixed bag for Devon Energy Corp.
The Oklahoma City-based oil and natural gas producer logged adjusted earnings of $526 million, or $1.29 a share, to beat analysts' estimates by 9 cents a share, but its revenue was about $40 million lower than predicted at $2.72 billion.
“Devon delivered another quarter of solid results, both operationally and financially,” CEO John Richels said.
Devon on Wednesday reported net earnings of $429 million, or $1.05 a share, for the third quarter. That reversed the net loss of $719 million, or $1.80 a share, Devon posted in the same period of last year.
Richels said Devon increased its U.S. oil production by 38 percent in the quarter.
The company's overall production averaged 165,000 barrels of oil equivalent a day, up 16 percent over the third quarter of 2012.
Richels said Devon has doubled its domestic light oil production over the past two years, largely due to its efforts in west Texas' Permian Basin.
“Our success in growing our U.S. light oil production has resulted in higher margins and improved profitability in the current commodity price environment,” he said.
Richels said Devon officials are optimistic about the company's progress in emerging oil plays in Oklahoma and Wyoming, while its oil sands projects in Canada continue to hold long-term growth potential.
Devon also is working to control costs, as Richels noted the company kept its upstream cash costs flat in the third quarter despite its growing oil production.
Jeff Agosta, Devon's chief financial officer, said the company is poised to bring another $2 billion from its international asset sales back to the United States.
Devon had left proceeds from those sales in 2010 and 2011 to avoid a larger tax hit.
Agosta said the company expects to pay between 4 and 6 percent in taxes on the repatriated funds, while another $500 million was transferred to Canada tax-free earlier this year.
He said those moves saved Devon shareholders about $700 million, or roughly $1.75 a share.
Richels said Devon's creation of a midstream master limited partnership with Dallas-based Crosstex Energy LP will unlock unrecognized asset value within the company.