Devon Energy surpassed Wall Street expectations for third-quarter profit on Thursday, as a surge in crude oil prices and higher production boosted business.
The Iran war, now in its ninth month, has disrupted Middle East energy supplies and shipping through the Strait of Hormuz, a key maritime chokepoint. The average price of benchmark Brent crude was 31% higher at $89.27 per barrel for the September quarter compared with a year earlier.
Devon became one of the largest independent oil and gas producers in the US after acquiring Coterra Energy for $58 billion earlier this year.
Devon’s average realized price, including hedges, was $79.54 per barrel (bbl) of oil produced for the quarter, compared with $63.99 per bbl a year earlier.
Third-quarter production rose to 1.66 million barrels of oil equivalent per day from 853,000 boepd a year earlier.
The Houston, Texas-based shale producer posted an adjusted profit of $1.42 per share for the three months ended September 30, compared with analysts’ expectations of $1.33 per share, according to data compiled by LSEG.
(Reporting by Vallari Srivastava in Bengaluru; Editing by Leroy Leo)