Devon Energy Corp (DVN) swung to a net profit for the quarter ended Mar. 31, 2017. The company has made a net profit of $565 million, or $ 1.07 a share in the quarter, against a net loss of $3,056 million, or $6.44 a share in the last year period. On an adjusted basis, the company has earned $217 million, or $0.41 a share for the quarter. Revenue during the quarter surged 66.84 percent to $3,547 million from $2,126 million in the previous year period. Gross margin for the quarter expanded 931 basis points over the previous year period to 38.29 percent.
Operating income for the quarter was $706 million, compared with an operating loss of $3,500 million in the previous year period.
"Devon’s development programs delivered strong growth in high-value production, significantly enhancing profitability in the first quarter," said Dave Hager, president and chief executive officer. "Driven by outstanding well productivity from our U.S. resource plays, light-oil production increased by 17 percent in the quarter, exceeding guidance by a wide margin. Importantly, we were able to deliver this outperformance with a low cost structure that is expected to further improve as we progress through the year."
Operating cash flow improves significantly
Devon Energy Corp has generated cash of $834 million from operating activities during the quarter, up 405.45 percent or $669 million, when compared with the last year period. The company has spent $542 million cash to meet investing activities during the quarter as against cash outgo of $2,359 million in the last year period. It has incurred net capital expenditure of $729 million on net basis during the quarter, down 69.08 percent or $1,629 million from year ago period.
The company has spent $124 million cash to carry out financing activities during the quarter as against cash inflow of $1,493 million in the last year period.
Cash and cash equivalents stood at $2,119 million as on Mar. 31, 2017, up 29.60 percent or $484 million from $1,635 million on Mar. 31, 2016.
Working capital increases sharply
Devon Energy Corp has recorded an increase in the working capital over the last year. It stood at $1,305 million as at Mar. 31, 2017, up 272.86 percent or $955 million from $350 million on Mar. 31, 2016. Current ratio was at 1.53 as on Mar. 31, 2017, up from 1.13 on Mar. 31, 2016.
Days sales outstanding went down to 33 days for the quarter compared with 49 days for the same period last year.
At the same time, days payable outstanding went down to 68 days for the quarter from 91 for the same period last year.
Debt comes down
Devon Energy Corp has recorded a decline in total debt over the last one year. It stood at $10,381 million as on Mar. 31, 2017, down 17.25 percent or $2,164 million from $12,545 million on Mar. 31, 2016. Total debt was 39.72 percent of total assets as on Mar. 31, 2017, compared with 43.81 percent on Mar. 31, 2016. Debt to equity ratio was at 0.95 as on Mar. 31, 2017, down from 1.19 as on Mar. 31, 2016. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: [email protected]
