The Oklahoma City-based energy company made $582 million, or $1.29 a share, down from the year-ago $970 million, or $2.14 a share. Revenue slipped to $2.61 billion from $3.19 billion a year earlier.
Excluding certain items, earnings were $1.36 a share in the latest quarter. Analysts were looking for a $1.36-a-share profit on sales of $2.62 billion.
"From almost every perspective, 2006 was an outstanding year for Devon," said CEO J. Larry Nichols. "We invested over $5 billion in exploration and development projects, adding more than 400 million barrels of proved reserves. These investments fortified our North American onshore production base and moved our major development projects toward completion in 2007. In addition, our successful production test in the Gulf of Mexico's Lower Tertiary Trend validated our long-term growth strategy and set the stage to extend Devon's growth trajectory well into the next decade."