Devon Energy beats third-quarter profit estimates on higher production

Nov 5 (Reuters) - Devon Energy DVN.N surpassed Wall Street expectations for third-quarter profit on Wednesday, as the U.S. shale producer benefited from higher output.

Shares of the company rose 1.8% after the bell.

U.S. oil and gas production rose to record highs in August, data from the Energy Information Administration showed. U.S. crude oil output rose 86,000 barrels per day, while gross natural gas production from the lower 48 states rose to a record 122.8 billion cubic feet per day (bcfd).

Devon also benefited from a 26% jump in U.S. natural gas prices NGc1 during the July-September period from a year earlier, driven by soaring demand to power data centers as well as a rise in liquefied natural gas exports.

The energy sector has been benefiting from a rise in demand for natural gas, supported by LNG exports and increasing power consumption due to hotter temperatures and data center operations.

Devon's third-quarter production rose to 390,000 barrels of oil per day, from 335,000 boepd a year ago.

Its average realized prices — or the price received for production — came in at $36.46 per boe during the reported period, compared with $40.71 per boe last year.

The firm slightly lowered its 2025 capital expenditure budget to a range of $3.5 billion to $3.7 billion from a prior forecast of $3.6 billion to $3.8 billion.

Top U.S. oil and gas producers have cut their capital expenditure forecasts for 2025 by about $2 billion amid lower oil prices and a wave of industry consolidation.

Devon's total output rose 17% to 853,000 barrels of oil equivalent per day during the quarter, while natural gas output rose nearly 3% to 1.41 million cubic feet per day.

The Oklahoma City-based company posted an adjusted profit of $1.04 per share for the three months ended September 30, compared with the analysts' average estimate of 93 cents apiece, according to data compiled by LSEG.