Devon Energy beats profit estimates, raises production forecast
Adds share movement, forecast and details about results in paragraphs 1, 2, 6 and 7
Nov 5 (Reuters) -Oil and gas firm Devon Energy DVN.N on Tuesday reportedthird-quarter profit above estimates on strongproduction and forecast higher output for the current quarter on the back of its $5 billion Grayson Mill acquisition.
Shares of the company were up 1.5% at $39.92 in after-market trading.
Data from the U.S. Energy Information Administration showed that the country's total oil consumption rose in July to the highest seasonal level since 2019.
Demand for gasoline was also at the highest seasonal levels since 2019, whereas jet fuel demand the highest for any month since August 2019, benefiting oil firms like Devon.
Devon's quarterly net production was up 9.5% at 728,000 barrels of oil equivalent per day (boepd) from the previous year.
Oklahoma City-based Devon also raised its fourth quarter production forecast to a range of 811,000 to 830,000 boepd, of which 110,000 boepd will be contributed from the Grayson Mill acquisition.
In September, Devon completed its acquisition of Williston Basin business of Grayson Mill Energy, a company owned by private equity firm EnCap.
Devon reported an adjusted profit of $1.10 per share for the quarter ended Sept. 30, compared with analysts' average estimate of $1.09 per share, according to data compiled by LSEG.
Reporting by Tanay Dhumal in Bengaluru; Editing by Maju Samuel
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