Devon Energy’s 3Q production climbs, as earnings fall

Devon Energy Corp.’s net earnings for the third quarter 2009 dropped 81 percent to $499 million, as compared to $2.6 billion for the same three-month period in 2008, due to declining revenues from oil, natural gas and natural gas liquids sales.

The Oklahoma City-based energy exploration and production company reported revenues of $1.7 billion, or 54 percent less than third quarter 2008, due to the large drop in commodity prices.

Meanwhile, production grew 6 percent to 673 thousand barrels of oil equivalent per day during the third quarter 2009. U.S. onshore natural gas production fell slightly to 171.7 billion cubic feet, while onshore oil production increased to 2.8 million barrels.

“Year to date, Devon increased oil and gas production 8 percent compared with 2008,” said company President John Richels in a statement. “The performance of the company’s oil and gas properties has continued to exceed our expectations throughout 2009.”

According to the Nov. 4 results, Devon Energy has posted a $3.1 billion net loss; however, excluding a first quarter value loss on oil and gas properties, the company has had earnings of $4.7 billion.

The company drilled 233 wells during the quarter – including its first Haynesville Shale well in Saint Augustine County, Texas – as compared to 636 wells during 2008’s third quarter. Devon Energy is drilling another east Texas well northwest in Shelby County.

jtronche@bizpress.net