Devon Energy beats profit estimates, raises production forecast

Devon Energy, an oil and gas company, reported a third-quarter profit that was above expectations due to strong production. It also forecast higher production for the current quarter as a result of its $5 billion Grayson Mill purchase.

In after-market trading, shares of the company rose 1.5% to $39.92.

The U.S. Energy Information Administration reported that total oil consumption in the United States reached its highest level for the season since 2019.

The demand for jet fuel was the highest since August 2019. Oil companies like Devon benefited from this.

Devon's quarterly production increased by 9.5% to 728,000 barrels equivalent per day (boepd).

Devon, based in Oklahoma City, also increased its fourth-quarter production forecast from 811,000 to 830.000 boepd. Of this amount 110,000 boepd is expected to come from the Grayson Mill purchase.

Devon completed its completion in September.

Purchase

Grayson Mill Energy's Williston Basin division, which is owned by the private equity firm EnCap.

Devon reported an adjusted loss of $1.10 for the quarter ending Sept. 30 compared to analysts' average estimates of $1.09, according data compiled by LSEG. Tanay Dhumal reported from Bengaluru, and Maju Samuel edited the story.

(source: Reuters)