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 |  Reuters -
Nov-04-2009WRAPUP 1-Devon, XTO profits down but output up(topic overview)
CONTENTS:
- XTO, a leading independent natural gas and oil exploration and production firm, posted earnings of $500 million, or 86 cents per share of stock, on revenues of $2.29 billion, only a 4 percent decrease from third-quarter 2008 earnings of $521 million, or 95 cents per share, despite a sharp decline in gas prices in the past year. (More...)
- Devon Energy Corp. ( DVN ) Q3 earnings fell by 81%, but the natural-gas and oil producer still managed to beat Wall Street expectations on higher production and lower costs. (More...)
- '''Looking towards 2010, with about 55 percent of our anticipated production already hedged at $9.62 per Mcfe,''' said Bob R. Simpson, chairman and founder, '''we expect to deliver another year of strong financial returns and substantial free cash flow, while generating double-digit production growth.''' (More...)
- Devon Energy Corp. (NYSE: DVN ]] DVN ]] DVN ) stock chart, presently pegged around $71.9, suggests that the stock will continue to remain strong, as long as the it does not breach below its 20 days MA of $68.5. (More...)
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XTO, a leading independent natural gas and oil exploration and production firm, posted earnings of $500 million, or 86 cents per share of stock, on revenues of $2.29 billion, only a 4 percent decrease from third-quarter 2008 earnings of $521 million, or 95 cents per share, despite a sharp decline in gas prices in the past year. XTO has realized higher revenues from its gas production, however, by entering into hedging contracts on the futures market. [1] XTO Energy Inc. reported net income of $500 million, or $0.86 per share, for its third quarter 2009 results, a 4 percent decline from the same three-month period last year, and record production of 2.95 billion cubic feet equivalent per day.[2] 'Notwithstanding volatile natural gas markets, XTO reported another quarter of record production and cash flow, demonstrating our ability to grow efficiently through the cycles,' Chairman Bob Simpson said. 'Looking towards 2010, with about 55 percent of our anticipated production already hedged at $9.62 (per 1,000 cubic feet) we expect to deliver another year of strong financial returns and substantial free cash flow, while generating double-digit production growth.' XTO CEO Keith Hutton said the company's 23 percent third-quarter production growth 'is a testament to both the strength of our operating teams and the underlying asset base.' The output gain resulted from both drilling new wells and acquisitions made in 2008. XTO said its Barnett Shale production in North Texas was basically flat at the equivalent of about 610 million cubic feet of natural gas per day.[1] The company's third-quarter revenues actually increased 8 percent from $2.13 billion in the third quarter of 2008. Its third-quarter production soared to the equivalent of 2.95 billion cubic feet of natural gas per day, up 23 percent from 2.39 billion a year earlier.[1]
In the third quarter, average sales price of natural gas equivalents fell to $8.33 per thousand cubic feet equivalent, or Mcfe, from prior year's $9.47 per Mcfe.[3]
Natural gas prices fell 62 percent from a year ago in the third quarter, while the average price of crude oil was just over half of that of a year ago. To help offset the decline in oil and gas prices, both companies worked to hold down costs. XTO said its total production expense declined 5 percent, while Devon's lease operating expenses fell 15 percent in the quarter. Both Devon and XTO reported higher oil and gas output.[4] HOUSTON, Nov 4 (Reuters) - Devon Energy Corp ( DVN.N ) and XTO Energy Inc ( XTO.N ) reported lower quarterly earnings on Wednesday as crude oil and natural gas prices fell from a year ago, but higher output and cost-cutting helped the U.S. independents top Wall Street expectations.[4] HOUSTON, Nov 4 (Reuters) - Devon Energy Corp ( DVN.N ) reported a steep slide in third-quarter earnings on Wednesday as lower crude oil and natural gas prices offset higher production and lower costs, but results surpassed expectations.[5] XTO Energy Inc.' s (XTO) third-quarter earnings fell 4% amid lower natural gas prices, though production rose 23% and the results beat analysts' estimates. XTO also gain raised its 2009 production-growth target to 23% from August's boosted view of 20%.[6] FORT WORTH, Texas -- XTO Energy Inc. on Wednesday said its third-quarter earnings fell 4 percent, but the oil and natural gas producer raised its full-year production outlook.[7]
Energy research firm Tudor, Pickering, Holt & Co characterized Devon's results as "strong" and said the company's stock -- which has underperformed peers by 34 percent year-to-date -- would get a boost from the results. The company's revenue from oil, gas and natural gas liquids sales fell 54 percent to $1.7 billion, while XTO saw its revenue rise 8 percent to a record $2.29 billion.[4] Revenues from oil, gas and natural gas liquids sales dropped 54% to $1.7 billion from the year-ago quarter, as significantly lower product prices more than offset the growth in natural gas and liquids production.[8] In the quarter, revenues from gas and natural gas liquids rose to $1.61 billion from prior year's $1.59 billion, and Oil and condensate revenues grew to $654 million from $495 million a year ago.[3]
On average, Wall Street analysts expected a much lower profit of 90 cents per share, on smaller revenue of $2 billion. Oil and gas companies have been hit hard this year, following last year's record high selling prices.[9] On average, Wall Street analysts expected a lower profit of 84 cents per share, on smaller revenue of $2.22 billion. The company boosted its full-year production growth target to 23% from a prior 20%, praising its "low-cost drilling inventory."[10]
Quarterly adjusted earnings per share fell from last year, yet topped the market projections, with revenue also beating Street view. The Fort Worth, Texas-based company provided fourth-quarter production forecast, and also lifted its targeted annual production growth for 2009.[3]
The Fort Worth-based company reported third quarter net income of $500 million, or 86 cents per share, compared with $521 million, or 95 cents per share, in the same quarter last year.[10] The Oklahoma City-based company reported third quarter net income of $499 million, or $1.12 per share, down from $2.6 billion, or $5.88 per share, in the year-ago period.[9] The Oklahoma City, Oklahoma-based company reported net income of $499 million or $1.12 per share for the third quarter, sharply lower than $2.62 billion or $5.88 per share in the prior-year quarter.[8]
Devon, the third-largest U.S. independent oil and gas company by market value, had a profit of $499 million, or $1.12 per share, compared with $2.6 billion, or $5.88 per share, a year earlier.[5] Excluding one-time items, Devon reported a profit of $491 million, or $1.10 per share, above the 90 cents that analysts had expected, according to Thomson Reuters I/B/E/S.[4] Excluding loss on the value of trading positions, XTO's profit of 88 cents per share topped the 84 cents that analysts had forecast, according to Thomson Reuters I/B/E/S.[11] Analysts polled by Thomson Reuters estimated profit of 84 cents per share. Analysts typically exclude one-time items from their estimates.[7]
Third-quarter profit was $500 million, or 86 cents per share, compared with $521 million, or 94 cents per share in the same quarter a year earlier.[11] Third-quarter net income dropped 4% to $500 million or $0.86 per share from prior year's $521 million or $0.94 per share.[3] Excluding the derivative loss, adjusted earnings were $509 million or $0.87 per share, compared to $545 million or $0.98 per share in the prior year quarter.[3] Earnings for the three months ended Sept. 30 dropped to $500 million, or 86 cents per share, from $521 million, or 94 cents per share, during the same period last year.[7]
Excluding items, Devon reported earnings for the latest quarter of $491 million, or $1.10 per share.[8] The year-ago quarter had earnings from discontinued operations of $109 million or $0.25 per share.[8]
On average, 29 analysts polled by Thomson Reuters expected the company to report earnings of $0.84 per share.[3]
Net income declined to $1.50 billion or $1.00 per share from $5.19 billion or $3.39 per share last year.[8] Income from continuing operations for the quarter plunged to $499 million, or $1.12 per share from $2.51 billion, or $5.64 per share in the year-ago quarter.[8]
Devon ( DVN ) profit for the three months ended Sept. dropped to $499 million, or $1.12 a share, from $2.6 billion, on a year to year basis.[12]
Oil sales for the quarter fell to $845 million from $1.30 billion in the same quarter last year.[8] Total revenues for the quarter plunged to $2.10 billion from $5.98 billion in the same quarter last year, but topped nine Wall Street analysts' consensus estimate of $1.84 billion.[8] Total revenues grew 8% to $2.29 billion from $2.13 billion in the same quarter a year ago, and beat seventeen Wall Street analysts' consensus estimate of $2.23 billion.[3]
Devon Energy Corp. ( DVN ) Q3 earnings fell by 81%, but the natural-gas and oil producer still managed to beat Wall Street expectations on higher production and lower costs. [12] Despite a massive 80% drop from last year, independent oil and gas producer Devon Energy Corporation's ( ]] ) third quarter earnings still came in ahead of analyst expectations.[9] Among Devon's peers, ConocoPhillips (COP: News ) reported last week a sharp year-over-year decline in profit for the third quarter of fiscal 2009, hurt by lower crude oil and natural gas prices as well as lower refining margins.[8] Natural gas producer XTO Energy Inc. ( ]] ) on Wednesday posted better-than-expected third quarter profit, helped by larger revenue amid higher production.[10] NEW YORK, Nov 4 (Reuters) - XTO Energy Inc ( XTO.N ) posted better-than-expected third quarter profit on Wednesday and raised its full-year production target growth to 23 percent from 20 percent.[11]
Quarterly production climbed 23 percent to 2.95 billion cubic feet equivalent per day. Looking to the full year, XTO raised its 2009 annual production growth target to 23 percent from 20 percent.[7] The company's total equivalent production was 2.95 billion cubic feet equivalent, or Bcfe, per day in the quarter, up 23% from last year's production of 2.39 Bcfe per day, and up 2% from 2.89 Bcfe per day in the second quarter 2009.[3]
XTO Energy is maintaining Barnett Shale production flat at about 610 million cubic feet equivalent per day with nine rigs running, said CEO Keith Hutton.[2]
Natural gas liquids production climbed 42% to 22,010 barrels per day from the prior year quarter rate of 15,517 barrels per day.[3] Natural gas liquids prices averaged $30.59 per barrel for the quarter, 43 percent lower than the 2008 quarter average price of $53.65.[2] The third quarter average oil price was 16 percent higher than the previous year'''s price, to $108.04 per barrel, up from 2008'''s $93.40.[2] Crude oil prices were $108.04 per barrel on average, a 16 percent increase from the prior-year period.[7]
With the economic crisis curtailing demand for oil, companies operating in the oil sector have had a tough time. Lower commodity prices and a decline in margins have hurt the bottom line of many of them. Oil prices have almost halved from an all-time high of $147 per barrel in July 2008, although they have improved from a yearly low of less than $34 a barrel in February this year.[8]
The average realized gas price decreased 18% to $6.93 per thousand cubic feet, or Mcf, from $8.42 per Mcf a year ago.[3] XTO's average realized gas price decreased 18 percent from the prior-year period to $6.93 per 1,000 cubic feet.[7]
'''Looking towards 2010, with about 55 percent of our anticipated production already hedged at $9.62 per Mcfe,''' said Bob R. Simpson, chairman and founder, '''we expect to deliver another year of strong financial returns and substantial free cash flow, while generating double-digit production growth.''' [2] The Fort Worth, Texas company also said it also expects double-digit production growth in 2010.[4]
The Fort Worth company'''s quarterly production was a 23 percent jump from third quarter 2008 and a 2 percent increase from second quarter 2009, according to the Nov. 4 results.[2] The company predicted fourth quarter production between 2.89 billion cubic feet equivalent and 2.93 billion cubic feet equivalent.[7]
Daily oil production for the quarter was 65,822 barrels, a 14% increase from prior year's 57,637 barrels.[3] The latest quarter results included $9 million non-cash derivative fair value loss, compared to prior year's loss of $24 million.[3]
Sales of natural gas liquids declined to $195 million from $362 million in the prior-year quarter.[8] Gas sales were $691 million, sharply down from $2.11 billion a year ago.[8]
Quarterly revenues and other income dropped to $41.31 billion from $71.37 billion in the prior-year quarter.[8] Revenues rose 8 percent to $2.29 billion, slightly above the $2.23 billion that analysts had forecast.[11] Revenue rose 8% from the year-ago period to $2.29 billion, bolstered by a 23% rise in production.[10] FORT WORTH XTO Energy reported impressive third-quarter results today, with strong earnings, record revenues and record production.[1]
Excluding one-time items, earnings amounted to 87 cents per share in the latest quarter.[7] In 1999, HP's stock was valued at $52 per share, but it had dropped to $21 per share by the time Fiorina was ousted in 2005.[13] We recently removed shares of XTO from our "recommended" list back on May 23, when the stock was trading at $42.70.[10]
Devon shares rose slightly in early trading, while XTO shares climbed 2.4 percent. The global economic slowdown has hurt demand for both natural gas and crude oil.[4]
XTO's output jumped a hefty 23 percent, while Devon reported a 6 percent increase.[4] XTO also said it now expects 2009 production to rise 23 percent compared with an earlier forecast for an increase of 20 percent.[4]
Third-quarter daily gas production averaged 2.42 Bcf, up 24% from production of 1.95 Bcf a year ago.[3]
Devon Energy Corp. (NYSE: DVN ]] DVN ]] DVN ) stock chart, presently pegged around $71.9, suggests that the stock will continue to remain strong, as long as the it does not breach below its 20 days MA of $68.5. [12] The company has a dividend yield of.96%, based on last night'''s closing stock price of $66.45.[9]
If the shares can firm up, we see overhead resistance around the $46 price level.[10]
Stockpiles swelled in the third quarter and prices tumbled, cutting into profits at energy companies.[4]
SOURCES
1. XTO Energy reports strong quarterly earnings | Business | Star-Telegram.com
2. XTO Energy income falls 4 percent as production jumps 23 percent - Fort Worth Business Press
3. RTTNews - Latest Earnings,Upcoming Earnings, Pos Pre Announcements, Pos Pre Announcements , Positive Surprises, Negative Surprises, Hot Stocks, Stock Split Calendar, Stock Buybacks, Dividends, Negative, Positive PreAnnouncements,Surprises .
4. WRAPUP 1-Devon, XTO profits down but output up | Stocks | Reuters
5. UPDATE 1-Devon Energy Q3 profit lower but tops Street | Reuters
6. XTO 3Q Profit Falls 4% As Hedging Limits Earnings Drop - WSJ.com
7. XTO Energy 3rd-quarter profit falls 4 pct - Forbes.com
8. RTTNews - Latest Earnings,Upcoming Earnings, Pos Pre Announcements, Pos Pre Announcements , Positive Surprises, Negative Surprises, Hot Stocks, Stock Split Calendar, Stock Buybacks, Dividends, Negative, Positive PreAnnouncements,Surprises .
9. Dividend Stocks The Dividend Daily » Blog Archive » Devon Energy's Q3 Profit Plunges 80%, Still Beats Estimates (DVN)
10. Dividend Stocks The Dividend Daily » Blog Archive » XTO Energy Q3 Profit Falls 4%, but Beats View (XTO)
11. UPDATE 1-XTO Energy Q3 beats Wall St, raise output view | Reuters
12. Devon Energy Corp. (DVN) remains strong above $68.7 level | Benzinga.com
13. Former HP Executive Carly Fiorina Says She Is Running For Senate
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