Devon Energy Reports 43% Earnings Increase
Devon Energy today reported second-quarter net earnings of $683 million, or $1.69 per diluted share. That is a 43% increase over second-quarter 2012 net earnings of $477 million, or $1.18 per diluted share.
The company produced an average daily 698,000 oil-equivalent barrels (Boe) per day for the quarter. That is the highest-ever average daily production it has gotten from its North American properties. Better-than-expected results from areas that included the Permian Basin and Barnett Shale contributed to the record production.
The Permian Basin delivered the highest growth with a 36% increase in oil production over last year's second quarter.
"The second quarter was an outstanding one for Devon as we continued to successfully grow high-margin oil production," said Devon CEO John Richels in the company's earnings statement.
Although it announced $1.4 billion of cash flow, an increase of 31% over Q2 2012, after deducting $1.6 billion for capital expenditures, it actually had negative free cash flow of $247 million.
Devon said it repatriated $2 billion of foreign cash to the U.S. at an estimated tax rate of 5% and transferred $500 million to Canada on a tax-free basis.
The company showed cash and short-term investments of $4.2 billion against $8 billion in long-term debt.
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