Devon Energy (NYSE: DVN) reported Q2 EPS of $0.34, $0.02 better than the analyst estimate of $0.32. Revenue for the quarter came in at $3.27 billion versus the consensus estimate of $3.25 billion.

Highlights

• Oil production from U.S. resource plays exceeds guidance
• Operational momentum builds with high-rate wells in STACK and Delaware Basin
• Efficiencies drive 2017 capital outlook $100 million lower
• Free cash flow generation increases cash balances to $2.4 billion
• Divestiture program advances with $340 million of asset sales

Lowering 2017 Capital Outlook by $100 Million

In the first half of 2017, the company’s E&P capital expenditures have been 17 percent below the midpoint of guidance, or 39 percent of the full-year budget. This strong performance has been driven by drilling and completion efficiency gains in the STACK and Delaware Basin combined with innovative supply chain initiatives that have completely offset industry inflation year to date.

Due to these positive operating trends, Devon now expects E&P capital investment to range from $1.9 billion to $2.2 billion in 2017, a $100 million decrease compared to previous guidance. With this updated outlook, the company has not made any changes to its planned activity levels in 2017 and is on track to increase to approximately 20 rigs by the end of 2017.

For earnings history and earnings-related data on Devon Energy (DVN) click here.