Devon Energy's Earnings Top Estimates

Devon Energy

(DVN) - Get Report

reported higher second-quarter oil and gas production, earnings and revenue, with some help coming from the company's merger with Ocean Energy in April.

The company earned $356 million, or $1.62 a share, in the quarter, including items that resulted in a net gain of 6 cents a share. Devon lost $104 million, or 68 cents a share, last year.

Analysts surveyed by Thomson First Call expected earnings of $1.52 a share before items.

Revenue rose to $1.81 billion from $1.15 billion, but assuming the merger with Ocean had been completed last year, revenue in the 2002 second quarter would have been $1.91 billion.

Combined production of oil, gas and natural-gas liquids reached 56 million barrels of oil equivalent in the second quarter, an all-time quarterly production record and up 13% from a year ago. Devon's merger with Ocean drove the production increase, more than offsetting the impact of property divestitures.

Sales of oil, gas and natural gas liquids rose 67% from a year ago to $1.5 billion. The company attributed the gain to higher production volumes and product prices.

Devon closed Tuesday at $46.85 on the American Stock Exchange.