Devon Energy's production increases help it beat the fourth-quarter profit forecast

Devon Energy, a Devon Oil subsidiary, beat the analysts' estimates for its fourth-quarter profits on Tuesday as higher production offset lower prices.

The U.S. Energy Information Administration reported that total oil production reached a record of 13.6 millions barrels per day during December. This was due to improved efficiency, which allowed oil producers to pump more.

Devon's quarterly production increased by 28% compared to the same period last year, reaching 848,000 barrels equivalent per day (boepd). The company's Williston Basin operation, which it acquired from Grayson Mill Energy for $5 billion, contributed to the increase in production.

Rick Muncrief, the outgoing CEO of Devon Energy, said that "strong new well productivity" and "solid base performance" exceeded expectations.

Clay Gaspar, the current chief operating officer of Devon, will succeed Muncrief on March 1.

Devon's total revenue was $4.4 billion from oil, gas, natural gas liquids, and midstream. This is a 6% growth over the previous quarter. Analysts had estimated $4.21 billion.

The average quarterly realized price for the company was $40.32/boe, down from $45.07/boe a year ago.

Devon anticipates producing between 805,000 to 825,000 boepd by 2025.

The Delaware basin is expected to receive more than half the total amount spent by the company. Devon spent $3.87 billion in 2024.

The company's fourth-quarter net income dropped to $639 millions from $1.15 Billion a year ago, due mainly to increased expenses.

According to LSEG data, Devon reported an adjusted profit per share of $1.16 for the quarter ending December 31 compared to analysts' average estimates of $1 per share.

The quarterly dividend was also increased by 9%.

(source: Reuters)