Company News

UPDATE 1-Devon Energy profit misses on weaker-than-forecast energy output

(Adds details on results, share price)

HOUSTON, Feb 20 (Reuters) - Oil and gas producer Devon Energy Corp on Tuesday reported quarterly results that fell short of analyst profit estimates on weaker-than-expected production.

The Oklahoma City-based company reported profit of $183 million, or 35 cents a share, in the quarter ended Dec. 31, compared with $207 million, or 41 cents a share, a year earlier. The profit was below analysts’ forecasts for 60 cents a share, according to Thomson Reuters data.

Devon shares shed $1.65, or nearly 5 percent, to $33 apiece in late trading.

Dave Hager, Devon’s chief executive, said in a statement the company will continue on a track to reduce debt in its upstream business by $1.5 billion and plans to use excess cash to pursue share buybacks and dividend expansion.

Devon said its oil production missed its own forecasts by about 14,000 barrels per day during the period, citing delayed well tie-ins in the United States and temporary steam-plant problems in its Canadian operations. It reported output totaled 548,000 barrels of oil equivalent (boepd) in the quarter.

The company forecast production in the current quarter of between 530,000 and 554,000 boepd.

Devon forecast full-year production would rise to between 552,000 and 576,000 boepd with U.S. oil production increasing about 14 percent this year over 2017. (Reporting by Gary McWilliams; Editing by Diane Craft and James Dalgleish)