Devon Energy Corp. (NYSE: DVN) raised its annual production forecast on May 1, saying it expected total output to rise 16% from last year compared with an earlier forecast of 14%.
The Oklahoma City-based shale company's production for the first quarter was near the high end of its outlook after disappointing fourth-quarter results. Its shares jumped more than 3% to $37.45 in late trading.
Devon produced 544,000 barrels of oil equivalent per day (boe/d) in the quarter ended March 31, compared with 563,000 boe/d in the same period a year earlier. Results were near the high end of a February projection of between 530,000 boe/d and 554,000 boe/d.
Net loss attributable to shareholders was $197 million, or 38 cents per share, compared with a profit of $303 million, or 58 cents per share, a year earlier. The loss reflected a $312 million charge to earnings to retire debt during the period.
Excluding the charge, Devon earned 20 cents per share, in line with analysts' average estimate, according to Thomson Reuters I/B/E/S.
Total revenue rose to $3.81 billion from $3.55 billion in the same period a year ago.
The company also said it reached an agreement with DowDupont in which the chemicals producer will pay $75 million over five years for a half interest in 116 undrilled locations in the Barnett Shale region of Texas. Devon will drill and operate up to 24 wells per year as part of agreement.
Devon forecast production for the current quarter of between 524,000 boe/d and 549,000 boe/d and estimated full-year output of between 536,000 boe/d and 560,000 boe/d.
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