Devon Energy, the largest producer in North Texas' Barnett Shale, said today it earned $1 billion in the third quarter, down from the $2.1 billion reported a year earlier on the strength of a big asset sale. Revenues were up 25 percent to $2.1 billion on higher production and prices for natural gas and crude oil. The most recent quarter included a $642 million non-cash gain on the value of its oil and gas hedges. After adjusting for unusual items, Oklahoma City-based Devon earned $638 million, or $1.54 a share, topping analysts' consensus estimate of $1.47. The company's shares (ticker: DVN) were up about 6 percent in early trading.
Devon said total production of natural gas, natural gas liquids and crude oil rose 8 in the quarter to the equivalent of 661,000 barrels a day. That included a 17 percent rise in oil and natural gas liquids, which command better prices than natural gas in the market. Barnett Shale production was up 8 percent to the equivalent of 1.3 billion cubic feet a day, which includes 46,000 barrels a day of liquids, up 15 percent from a year earlier.
-- Jim Fuquay