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Devon Energy misses its first-quarter profit forecast due to lower oil prices

Devon Energy's first-quarter profits missed Wall Street expectations on Tuesday as lower oil prices offset increased production.

In extended trading, shares were down about 1 % at $30.29.

Brent crude futures averages have fallen on average by a year in the first quarter on fears of U.S. trade tariffs and the ensuing war on energy. OPEC+ is also ramping up production.

Devon reported that the realized price of oil, including cash settlements during the quarter, was down by 8% compared to last year at $69.15 per barrel.

Devon, based in Oklahoma City, increased its total quarterly production by 22.7% compared to a year ago. This was boosted by recent acquisitions.

In a $5 billion cash-and stock deal, Grayson Mill Energy owned by EnCap acquired some assets from the Bakken-focused energy company Grayson Mill Energy.

The company has also increased its forecast for current-year oil output by 1%, to between 382,000 barrels and 388,000 per day.

a time when the business optimization plan was achieving early success, the capital expenditure plan was cut by $100 millions to $3.7-3.9 billion.

Last month, U.S. Oil and Gas Producer said that it intends to increase its annual free cashflow by $1 billion before the end of 2026. This will be achieved by reducing the drilling and completion costs as well as improving the operating margins.

According to LSEG, the U.S. oil producer reported a profit adjusted of $1.21 for the quarter ending March 31. This compares with an average analyst estimate of $1.25. Reporting by Tanay in Bengaluru, Editing by Leroy Leo

(source: Reuters)