Traders Cheer as Devon Energy (DVN) Swings to Q1 Profit; Stock Up 2% Today

Devon Energy Corp. (NYSE: DVN) said Wednesday that higher prices for oil and natural gas allowed the company, following a massive loss in Q109, to return to a profit during the most recent quarter.

The producer of natural gas and oil reported earnings of $1.19 billion, or $2.67 per share, compared with a loss of $4 billion or $8.92 per share in the same quarter last year. Excluding one-time items, Devon earned $1.85 per share, 37 cents higher than the analyst estimate of $1.48 per share.

Revenue during Devon's first quarter soared 70 percent from $1.9 billion last year to $3.22 billion, easily beating the market consensus of $2.4 billion.

“With Devon’s strategic repositioning nearing completion, we could not be more pleased with the results,” said J. Larry Nichols, chairman and chief executive officer. “Devon is emerging with a rock-solid balance sheet, a balanced portfolio of oil and gas projects and one of the lowest cost structures in the peer group. This positions the company to deliver low-risk, profitable, organic production growth on a sustainable basis.”

In addition to higher energy prices during the period, Devon's quarterly results reflect a boost from one-time gains associated to oil and natural gas contracts.

The company also announced that its Board of Directors has approved a $3.5 billion share repurchase program, which it plans to begin buying back immediately.

With about two hours left in today's trading session, shares of Devon are up $1.34 to $67.70.

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