Devon Energy misses first-quarter profit estimates on lower oil prices

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(Reuters) -Devon Energy missed Wall Street estimates for first-quarter profit on Tuesday, as lower oil prices offset higher production.

Shares were down about 1% at $30.29 in extended trading.

Average Brent crude futures fell on average in the first quarter from a year earlier on fears that U.S. tariffs and the ensuing trade war would slow global economic growth and slash energy demand, even as OPEC+ ramps up supply.

Devon said realized price, including cash settlements for oil during the quarter was down 8% year-over-year at $69.15 per barrel.

However, Oklahoma City-based Devon’s total quarterly production rose 22.7% from a year earlier to 815 thousand barrels of oil equivalent per day (MBoepd), aided by contributions from its recent acquisitions.

Last year, the company acquired certain assets of Bakken-focused energy producer Grayson Mill Energy, which is owned by private equity firm EnCap, in a cash-and-stock deal worth $5 billion.

The company also raised its current-year oil production forecast by 1% to between 382,000 and 388,000 barrels per day.

Meanwhile, it cut capital expenditure plan by $100 million to between $3.7 billion and $3.9 billion following early achievement of its recently launched business optimization plan.

Last month, the U.S. oil and gas producer said it plans to boost its annual free cash flow by $1 billion by the end of 2026 by reducing drilling and completion costs and improving operating margins.

The U.S. oil and gas producer reported an adjusted profit of $1.21 per share for the quarter ended March 31, compared with analysts’ average estimate of $1.25, according to data compiled by LSEG.

(Reporting by Tanay Dhumal in Bengaluru; Editing by Leroy Leo)