Natural gas and oil explorer Devon Energy Corp. (DVN) reported Wednesday a decline in fourth-quarter profit, on a prior year gain from discontinued operations. However, higher production and improved oil prices boosted its results, excluding special items. Total revenues grew from last year and was in line with analysts' estimates.
The recent quarter results included a loss from discontinued operations, compared to a significant gain in the previous year.
Liquids production for the quarter increased 21 percent and it drove total North American onshore production 10 percent higher than the year-ago quarter. Average oil prices were higher, however, Natural gas prices were were slightly down from the previous year.
In the fourth quarter, the company's net earnings declined to $507 million or $1.25 per share from $562 million or $1.29 per share reported last year. Adjusted earnings were $1.55 per share for the recent quarter.
On average, 25 analysts polled by Thomson Reuters expected the company to earn $1.48 per share for the quarter. Analysts' estimates typically exclude special items.
Total revenues grew to $2.59 billion from $2.14 billion a year ago, which was in line with analysts' estimates.
For the full year 2011, production from Devon's North American onshore operations increased by 8 percent from last year. Sales of oil, gas and natural gas liquids from continuing operations increased 14 percent, helped by higher liquids production and pricing.
In 2011, liquids sales comprised nearly 60 percent of the company's total upstream revenues.
John Richels, president and chief executive officer of the company said, "We drove production from our North American onshore asset base up eight percent, increased proved reserves to an all-time high and completed our highly-successful strategic repositioning, including $3.5 billion of share repurchases."
As at December 31, Devon's estimated proved reserves reached 3 billion oil-equivalent barrels, or Boe. Proved reserves from oil and natural gas liquids increased to 42 percent of the company's total proved reserves at December 31.
DVN is currently trading at $68.98, up 3.11 percent on the NYSE.
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