Thursday, May 9, 2013

Devon runs red on impairment

Revenues were also well down due both to a drop in production as well as a negative reversal on derivatives fortunes.

The net loss for the three months to the end of March was $1.34 billion as compared with a profit of $393 million a year earlier.

This was mainly due to a $1.91 billion non-cash asset impairment charge taken due to lower oil and gas liquids prices in North America.

Revenues were also well down at $1.97 billion as against $2.5 billion, with oil, gas and natural gas liquids revenues sinking from $1.92 billion to $1.8 billion.

Devon also ran up a $320 million derivatives loss on energy commodities as compared with a profit of $145 million a year earlier.

Total average production sank from 693,600 barrels of oil equivalent per day to 686,900 boepd, although this was still just slightly above the company's top end guidance figure.

Natural gas production was also down but oil and bitumen production actually increased in both the US and Canada, rising from 142,000 barrels of oil per day to 162,300 bopd overall. Much of this was driven by increased activity in the Permian basin with US production alone up 23%.


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