(Corrects paragraph 2 to say Johnson County is in Texas, not
May 2 U.S. oil producer Devon Energy Corp
said it would divest about $1 billion of its assets, and
also reported a quarterly profit that beat analysts' estimates.
The assets include certain portions of its Barnett shale
properties focused around Johnson County, Texas.
"This divestiture program ... supports our capital program
and places us firmly on track to achieve our production growth
targets in 2017 and 2018," Chief Executive Dave Hager said in a
Net earnings attributable to Devon was $565 million, or
$1.07 per share, in the first quarter ended March 31, compared
with a loss of $3.06 billion, or $6.44 per share, a year
The year-ago quarter included an asset impairment charge of
$3.04 billion and restructuring and transaction costs of $247
On an adjusted basis, Devon earned 41 cents per share, while
analysts on average had expected 40 cents, according to Thomson
The company said its total operating expenses nearly halved
to $2.84 billion.
Devon, like other oil and gas companies, has been keeping a
tight leash on costs since a slide in global crude oil prices
started in mid-2014.
Revenue jumped 67 percent to $3.55 billion. However, total
production, net of royalties, fell 17.8 percent to 563,000
barrels of oil equivalent per day.
Shares of the company rose 2.8 percent to $39.97 in
after-hours trading on Tuesday.
(Reporting by Sruthi Shankar and John Benny in Bengaluru;
Editing by Maju Samuel)