Oil and gas company Devon Energy Corp. (DVN) on Wednesday reported a profit for the third quarter that more than tripled from a year ago, boosted by a gain on oil and gas derivative instruments as well as higher realized energy prices. Revenue for the quarter more than doubled from the prior-year period.
Third Quarter Results
For the third quarter, the Oklahoma-based company's net earnings applicable to common shareholders rose to $2.62 billion, or $5.87 per share, from $0.73 billion, or $1.63 per share, in the previous- year quarter.
Results for the latest quarter include a non-cash, unrealized gain on oil and natural gas derivative instruments of $1.2 billion after tax. The company noted that a change in fair value of other financial instruments decreased net earnings by $29 million after tax.
Excluding adjusting items, Devon reported earnings for the quarter of $1.4 billion, or $3.09 per share in the quarter. On average, twenty-four analysts polled by First Call/Thomson Financial expected the company to report earnings for the quarter of $3.06 per share.
Earnings from continuing operations for the quarter rose to $2.51 billion, or $5.63 per share, from $0.64 billion, or $1.43 per share, in the previous-year quarter.
Quarterly revenues more than doubled to $5.98 billion from $2.76 billion in the previous year quarter. Wall Street analysts expected revenues for the quarter of $4.02 billion.
Sales of oil, natural gas and natural gas liquids from continuing operations during the quarter surged 62% to $3.8 billion from $2.3 billion in the year-ago period, boosted by increased oil and gas production combined with increased oil, natural gas and natural gas liquids pricing.
Oil sales surged to $1.29 billion from $905 million in the same period last year. Gas sales in the quarter were $2.11 billion, higher than $1.18 billion recorded a year ago. Sales of natural gas liquids climbed to $362 million from $242 million in the previous-year quarter.
Earnings from discontinued operations for the quarter were $109 million, or $0.24 per share, compared to earnings from discontinued operations of $91 million, or $0.20 per share, in the same period last year.
The company's combined oil, natural gas and natural gas liquids production from continuing operations in the third quarter reached 58.6 million oil-equivalent barrels, or Boe, up 3% from 56.8 million Boe a year ago. Devon produced 637 thousand Boe per day in the quarter, up from 618 thousand Boe per day in the same period last year.
Devon noted that much of its U.S. offshore oil and gas production and a portion of its U.S. onshore oil and gas production were curtailed in the month of September due to Hurricanes Gustav and Ike. The company estimates that the hurricanes reduced oil and gas production for the quarter by about 1.5 million Boe.
The company's realized price, including cash settlements, for the quarter was $60.19 per Boe, up 46.4% from $41.10 per Boe a year ago. The company's realized price for natural gas during the quarter was $7.81, up 46% from the prior-year quarter. Realized price for oil rose 58% from a year ago to $106.94 per bbl.
Devon funded $2.4 billion of capital expenditures in the third quarter, leaving $265 million of free cash flow. During the quarter, the company used free cash flow and cash on hand to redeem $983 million of exchangeable debentures. Also in the quarter, the company repurchased about 3.6 million shares of its common stock for about $363 million.
Year-To-Date Results
For the nine months, Devon's net earnings applicable to common shareholders rose to $4.66 billion, or $10.40 per share, from $2.28 billion, or $5.07 per share, in the same period last year.
Earnings from continuing operations for the period climbed to $3.75 billion, or $8.36 per share, from $2.04 billion, or $4.52 per share, in the previous-year period.
Total revenues for the period climbed to $12.50 billion from $8.17 billion in the year-ago period.
Stock Quotes
In Wednesday's regular trading session, DVN is trading at $82.33, down $0.67 or 0.81% on a volume of 0.70 million shares. In the 52-week period, the stock has been trading in a range of $54.40-$127.43.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.