Log in
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Dynamic quotes 

MarketScreener Homepage  >  News  >  Economy & Forex

News : Latest News
Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance Pro.CalendarSectors 
All NewsEconomyCurrencies & ForexEconomic EventsCryptocurrenciesCybersecurityPress Releases

Devon cuts spending forecast again on improved well performance

10/29/2020 | 03:32pm EST

Oct 29 (Reuters) - Devon Energy Corp lowered its spending forecast slightly on Thursday, while raising production outlook for the year as it benefited from improved efficiency at oil and gas wells and a recovery in oil prices as coronavirus-related lockdowns eased.

A more than 30% plunge in crude prices this year forced cash-strapped shale operators to try to increase output from existing wells while cutting costs, laying off employees and, increasingly, consolidating to survive the downturn.

Last month, Devon agreed to buy shale rival WPX Energy Inc in an all-stock deal, as oil producers increasingly turn to consolidation to find ways to grow in a lower oil price environment while keeping their costs in check.

Fuel demand improved slightly over the third quarter as economies began to emerge from lockdowns, and Devon said full year oil production could be as much as 154,000 barrels per day (bpd), up from a previous forecast of between 148,000 and 152,000 bpd.

In light of improved natural gas prices, the company said it was also considering resumption of drilling in the Anadarko basin next year.

The company now sees exploration and production capital expenditure ranging between $950 million and $990 million, $10 million lower at the top end of an earlier forecast, its third reduction to the budget since March.

Devon, which has a foothold in the Delaware portion of the Permian basin of Texas and New Mexico, reported net production from retained assets of 326,000 barrels of oil equivalent per day in the third quarter, up marginally from last year.

On an adjusted basis, it lost 7 cents in the quarter, below analysts' average estimate of 10 cents per share according to Refinitv IBES data. (Reporting by Rithika Krishna; Editing by Maju Samuel, Shounak Dasgupta and Vinay Dwivedi)

© Reuters 2020
Stocks mentioned in the article
ChangeLast1st jan.
DEVON ENERGY CORPORATION -2.25% 14.78 Delayed Quote.-43.09%
LONDON BRENT OIL 1.13% 48.24 Delayed Quote.-27.73%
WPX ENERGY, INC. -2.97% 7.51 Delayed Quote.-45.34%
WTI 1.29% 45.54 Delayed Quote.-26.73%
Latest news "Economy & Forex"
12:42pTurkey's COVID curfew fails to contain surging second wave
12:22pBOX OFFICE : 'The Croods 2' Leads Sluggish Thanksgiving Holiday Weekend
12:19pAustralia considering WTO appeal against China barley tariffs as tensions rise
12:15pState, Local Governments Slashed Spending After Covid. Next Year Could Be Worse.
12:06pAMAZON COM : workers at German warehouse to strike again
11:59aSwiss firms narrowly avoid 'Responsible Business' liability as vote divides nation
11:55aMore than half of German retailers pessimistic about Christmas - HDE
11:54aBritain expects "very significant" week for Brexit talks as clock ticks down
11:40aInvestors weigh prospects for U.S. corporate earnings as stocks set records
11:31aRepublicans turn to Biden transition as Trump's legal options dwindle
Latest news "Economy & Forex"