Devon Energy beats fourth-quarter profit estimate on higher production

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Feb 18 (Reuters) - Oil and gas firm Devon Energy DVN.N beat analysts' estimate for fourth-quarter profit on Tuesday, as higher production helped counter the impact from lower prices.

Total oil production in the U.S. rose to a record high of 13.6 million barrels per day in December, data from the U.S. Energy Information Administration showed, as improved efficiencies helped oil producers pump more.

Devon's production jumped 28% over the year earlier to 848,000 barrels of oil equivalent per day (boepd) during the quarter. The output was aided by the contribution from the Williston Basin business, which the company acquired from Grayson Mill Energy in a $5 billion deal.

The company's assets in the Rockies and Eagle Ford basins exceeded estimates on "strong new well productivity and solid base performance", Devon's outgoing CEO Rick Muncrief said.

Muncrief will be succeeded by Clay Gaspar, currently Devon's chief operating officer, on March 1.

Devon's total revenue from sales of oil, gas, midstream and natural gas liquids was $4.4 billion, a 6% increase over the prior-year quarter. That compares with analysts' estimate of $4.21 billion.

The company's quarterly average realized prices came in at $40.32 per boe, lower than the $45.07 per boe a year earlier.

Devon expects to produce between 805,000 and 825,000 boepd in 2025.

It expects to spend $3.8 billion to $4.0 billion in this year, with more than half of the amount to be allocated to the Delaware basin. Devon spent $3.87 billion in 2024.

The company's net income fell to $639 million during the fourth quarter, from $1.15 billion a year earlier, largely due to higher expenses.

Devon posted an adjusted profit of $1.16 per share for the quarter ended December 31, compared with analysts' average estimate of $1 per share, according to data compiled by LSEG.

It also raised its quarterly dividend by 9%.