Devon’s profit up, production down

Petroleum News Houston staff

Big U.S. independent Devon Energy saw its profit soar on robust commodity prices in the 2003 first quarter, despite a 9 percent decline in production due largely to property divestitures, the company disclosed May 8.

Devon recently merged with Houston-based independent Ocean Energy, but Devon was required to report earnings separately because the merger occurred after the end of the first quarter. Oklahoma-based Devon reported first-quarter net income of $436 million or $2.76 per share, compared to $84 million or 52 cents a share in the prior quarter and $62 million or 41 cents a share for the same period last year.

Net cash flow from operations rocketed to $827 million in the first quarter from $368 million in the year-ago quarter. Sales of oil, gas and natural gas liquids increased 66 percent over the first quarter of 2002 to $1.2 billion.

However, Devon said its combined production for the first quarter dropped to 44.3 million barrels of oil equivalent from 48.6 million barrels in the year-ago period. The company sold $1.4 billion worth of producing properties in 2002, which contributed to the decline.