U.S. oil producer Devon Energy Corp. (NYSE: DVN) on July 31 missed Wall Street estimates for quarterly profit as expenses rose, offsetting gains from higher oil production.
Devon’s stock fell 4.6% to $43 in after-hours trading.
The Oklahoma City-based company said total costs rose 39.4% to $2.73 billion in the three months ended June 30, as marketing expenses increased.
Devon produced 541,000 barrels of oil-equivalent per day (boe/d) in second-quarter 2018, compared with 536,000 boe/d a year ago. The results were largely higher than its expected 524,000 to 549,000 boe/d range.
The company also cut its yearly oil production target to account for discontinued operations following the more than $3 billion sale of its interest in oil pipeline company EnLink Midstream.
Net loss attributable to Devon was $425 million or 83 cents per share in the second quarter, compared with a profit of $219 million or 41 cents per share a year earlier.
Excluding one-time items, the company earned 34 cents per share, below analysts' average estimate of 36 cents, according to Thomson Reuters I/B/E/S.
Revenue rose to $2.25 billion from $2.17 billion.
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