Devon Energy misses profit forecasts for the first quarter due to production decline

As a result of lower production, Devon Energy's first-quarter profits fell short of Wall Street expectations on Tuesday. Results of a shale oil producer.

The first-quarter production dropped to 387,000 barrels equivalent per day (boepd) from 388,000 boepd one year ago.

U.S. spot natural gas prices at Waha Hub Permian Shale prices in West Texas remain in the 'negative territory' for a record-breaking 61 consecutive days, as pipeline restrictions trap gas in this region. This is America's largest oil producing shale basin.

Oil prices have increased by more than 88% in the past year due to supply chain disruptions and conflict in the Middle East. However, producers are not increasing production because of geopolitical uncertainties.

Devon expects to produce between 851,000 and 868,000?boepd?, with capital expenditures of $925 millions.

According to LSEG, the Oklahoma City-based firm?posted a profit adjusted of $1.04 for the three-month period ended March '31. This compares with analysts' average estimates of $1.06??per share.

(source: Reuters)