Devon Energy, the Oklahoma-based independent oil and natural gas producer, said its fourth-quarter profit slid 16% to $562 million, or $1.29 per share, from $667 million, or $1.49 per share, a year earlier as revenue fell by 13% to $2.14 billion. The company said the results were hampered by charges related to hedges used to protect against fluctuating energy prices.
Devon (DVN) earned $683 million, or $1.57 per share, excluding one-time items. Analysts were expecting a profit of $1.40 a share on revenue of $2.28 billion. The company increased oil and gas production by about 1% in the quarter, and prices increased by about 4 percent to $35.77 per barrel of oil equivalent, according to the Associated Press.
Devon said proved reserves now stand at an all-time high of 2.9 billion barrels of oil and natural gas. The company sold more than $10 billion in international and offshore assets last year as part of its plan to focus on onshore oil and gas exploration in the U.S. and Canada.
Devon has been shifting its focus to oil production away from natural gas as natural gas prices have languished for more than two years, but the company said that it expects its 2011 oil production to grow by the high teens down from a previous forecast of 20%-21%.