Cost Cuts Allow Devon Energy to Post Adjusted Profit for Q2
On Tuesday, Devon Energy Corp, the U.S. oil producer posted adjusted quarterly profit and reported that it has narrowed its net loss with massive cost cuts, mostly in expenses related to labor and supply. That counterbalanced by the company from slumping crude prices.
Trimmings in cost emphasize the bleak choices which energy companies like Devon are facing along with its competitors in the oil and natural gas industry. Commodity prices have been reeling down with industry facing deep rooted troubles.
According to Devon, it trimmed lease operating costs by twenty six percent that include labor, supply along with other costs in the second quarter. The company also said it plans to reduce costs by $1 billion in the current year.
The Oklahoma City based company reported net loss of $1.57 billion or $3.04 per share for Q2 compared to loss of $2.82 billion or $6.94 a share, same period last year.
On Tuesday, Devon shares climbed a little during the after-hours trading to $36.13 a share. The company's production dropped five percent in the quarter to approximately 644,000 barrels of oil equivalent a day.