Although net earnings fell significantly, Devon Energy reported positive revenues for its third-quarter performance. Third-quarter 2011 net earnings of $1.0 billion, or $2.50 per diluted share represented a 50% decline to the company's bottom line from year-ago net earnings and per diluted shares result of $2.1 billion and $4.7 respectively.Devon’s third-quarter 2010 net earnings represented a one-time $1.5 billion gain in divestiture from sale of assets in Azerbaijan.
Revenues jumped 45% to 3.5 billion and operating margins expanded to 43.9% from 29.7%.
Overall, higher production and rising prices in oil and natural gas liquids reflected positively on sales. Total production of oil, natural gas and natural gas liquids averaged 661,000 oil-equivalent barrels per day (Boe), an 8% increase over year-ago quarter.
Respective to the balance sheet, Devon continued its share buy-back operations by repurchasing $697 million of common stocks. The company has purchased $3.2 billion of stocks till date since its announcement of a $3.5 billion repurchasing initiative.
Operating expenses, particularly lease operating expense (LOE) increased by 6% compared to lease operating expense from the third quarter of 2010.
The company’s decision on its recent divestiture gains is what many investors are anticipating going forward. Shares were up 3.59% on the news as of 1:00 PM today.
-Kelechi Nwokocha
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