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Devon Energy reported third-quarter earnings Wednesday of $499 million, or $1.12 per share, on revenue of $2.1 billion, with weaker energy prices resulting in a steep plunge from an exceptionally robust profit of $2.6 billion, or $5.88 per share, on revenue of nearly $6 billion in the third quarter of 2008.
Oklahoma City-based Devon, the leading producer in the natural gas-rich Barnett Shale in North Texas, saw its earnings plummet despite a 6 percent increase in production of oil, natural gas and natural gas liquids to the equivalent of 61.9 million barrels of oil per day, the highest third-quarter production in the company’s history.Devon’s solid production growth and lower overall costs "were more than offset by significantly lower product prices," the company said. Its average realized natural gas price was $3.37 in the third quarter, which ended Sept. 30, or slightly less than half the average of $7.81 in the third quarter of 2008.Devon drilled 233 wells in the third quarter of this year, only slightly more than one-third of the 636 wells it drilled in the 2008 third quarter. But the company has had some strong drilling results recently, including a giant Haynesville Shale gas well in San Augustine County in East Texas that flowed at an average continuous 24-hour rate equivalent to 30.7 million cubic feet of natural gas per day. Devon is the well operator and has a 48 percent working interest.JACK Z. SMITH, 817-390-7724
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