US oil flows drive Devon

Strong domestic oil production numbers helped push US independent Devon Energy to a higher profit in the second quarter.

The Oklahoma City-based player had operations in the Permian basin, Barnett shale and Eagle Ford shale in particular to thank for the improved showing.

Net profit for the three months to the end of June was $700 million, an advance on the $683 million seen a year earlier.

Revenues rose from $3.09 billion to $4.51 billion, even as the company was hit with a reversal on energy derivatives - a $366 million gain last year matched by a $399 million loss this time around.

Oil, gas and natural has liquids sales boomed from $2.22 billion to $2.68 billion, while marketing and midstream revenues soared from $500 million to $2.23 billion.

Average production totalled 667,000 barrels of oil equivalent per day in the period, with divested assets accounting for 47,000 boepd of that - 77% of the latter figure being gas.

The production hike was mainly due to strong domestic oil flows, up 79% year-on-year.

Permian basin production went up 25% to 95,000 boepd on average - 60% of which was light oil.

In the Eagle Ford, the net average was 65,000 boepd. However, the company took an 8000 boepd hit due to third-party gathering system downtime. Full-year output guidance from the Eagle Ford is between 70,000 boepd and 80,000 boepd.

In the Barnett shale, net production was maintained at 1.3 billion cubic feet equivalent per day, with liquids output up 2% at 57,000 barrels per day - accounting for 27% of the Barnett total.

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