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Devon Energy beats production estimates in fourth quarter

 Devon Energy beats production estimates in fourth quarter

(Reuters) - Oil and gas producer Devon Energy Corp reported a better-than-expected quarterly production on Tuesday, aided by more output from its U.S. shale assets, sending its shares up 6 percent after the bell.

The Oklahoma-based company also said its board had authorized the sale of its assets in Canada and in the gas-rich Barnett shale patch in the United States, to become a pure-play oil producer.

Devon said its production in the Delaware basin rose 49 percent in the quarter ended Dec. 31 to 84,000 barrels of oil equivalent per day (boe/d), from a year earlier.

The Delaware and Midland basins of the oil-rich Permian shale field are among the largest in the region. While the Midland basin is the more heavily drilled of the two, recent research by U.S. Geological Survey has found Delaware to contain twice as much crude.

The company reported production of 532,000 barrels of oil equivalent per day (boe/d) in the quarter, while analysts had expected 527,060 boe/d, according to IBES data from Refinitiv.

Net income rose to $1.15 billion or $2.48 per share, from $304 million or 35 cents per share, a year earlier.

(Reporting by Debroop Roy in Bengaluru; Editing by Shinjini Ganguli)

This story has not been edited by Firstpost staff and is generated by auto-feed.

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Updated Date: Feb 20, 2019 04:05:28 IST