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OKLAHOMA CITY (TheStreet) -- Devon Energy (DVN) - Get Devon Energy Corporation Report managed to beat Wall Street earnings expectations for the second quarter, despite posting a steep decline in both its bottom and top lines as oil and natural gas prices flagged.

The company, which also produced more oil and gas in the quarter than ever before, said that excluding a series of losses related to hedging trades and severance paid to laid off workers, the company posted an adjusted profit of $379 million, or 85 cents a share -- far ahead of the 59 cents a share that analysts' had collectively forecast.

Including the items, Devon reported net earnings of $314 million, or 70 cents a share, down 76% from the $1.3 billion, or $2.91 a share, it earned in the same quarter of 2008.

It was the same story on the top line: Revenue tumbled 40% to $2.1 billion from $3.54 billion a year ago.

Devon said it boosted oil and gas production by 12% to a record 65.4 million oil-equivalent barrels. Most of that growth came from the company's Barnett shale field in Texas and its Jackfish oil sands project in Canada.

Devon also cited cost cuts for its better-than-expected performance. Specifically, it said lease expenses for its oil and gas properties decreased 15% from a year ago.

Overall, the news appeared to please investors in Wednesday's early going: Devon shares were higher by nearly 4% to $63.57.

Other oil- and energy-based stocks slated to report earnings today include

XTO Energy

( XTO) ,

Baker Hughes


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-- Reported by Scott Eden in New York

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