Devon Energy's profit forecast for the second quarter was missed due to low oil prices
The U.S. oil-and-gas producer Devon Energy narrowly missed Wall Street's expectations for the second quarter profit on Tuesday as lower commodity prices offset an increase in production.
As a result of the growing demand for natural gas, the company has also announced two new supply agreements.
Benchmark Brent crude oil prices dropped during the quarter of April-June compared to a year ago, due to a combination of growing market insecurity caused by tariffs, weak demand globally and an increase in supply from OPEC+.
The average realized price was $36.30 for a barrel of oil-equivalent (boe) in the period reported, down from $44.29 last year.
The company's production in the second quarter increased to 841,000 barrels equivalent per day (boepd) from 707,000 boepd one year earlier.
The U.S. oil producer has also increased its forecast for current-year production to range between 384,000-390,000. This is up from an earlier view of 382,000-388,000.
Capital expenditures are now expected to be between $3.6 and $3.8 billion compared to earlier estimates of $3.7 to $3.9 billion.
According to data compiled and analyzed by LSEG, the Oklahoma City-based firm posted an adjusted profit per share of 84 cents for the three months ending June 30. This compares with analysts' consensus estimates of 85 cents. Reporting by Vallari Shrivastava, Bengaluru. Editing by Alan Barona.
(source: Reuters)
