Devon Energy Corporation (DVN) swung to a net profit for the quarter ended Dec. 31, 2016. The company has made a net profit of $331 million, or $ 0.63 a share in the quarter, against a net loss of $4,532 million, or $11.12 a share in the last year period. On an adjusted basis, the company has earned $131 million, or $0.25 a share for the quarter. Revenue during the quarter grew 16.08 percent to $3,350 million from $2,886 million in the previous year period. Gross margin for the quarter expanded 896 basis points over the previous year period to 41.04 percent.
Operating income for the quarter was $637 million, compared with an operating loss of $5,425 million in the previous year period.
"For Devon, 2016 was a transformational year," said Dave Hager, president and chief executive officer. "We successfully reshaped our asset portfolio to focus on our top two franchise assets, the STACK and Delaware Basin, providing us a sustainable, multi-decade growth platform. With these world-class assets, we delivered outstanding operational performance throughout the year. Our drilling programs generated the best well productivity in Devon’s 45-year history and we maximized the value of every barrel produced with cost-reduction efforts that reached $1.3 billion of annual savings."
Operating cash flow drops significantlyDevon Energy Corporation has generated cash of $1,746 million from operating activities during the year, down 67.50 percent or $3,627 million, when compared with the last year. The company has spent $872 million cash to meet investing activities during the year as against cash outgo of $6,324 million in the last year.
The company has spent $1,164 million cash to carry out financing activities during the year as against cash inflow of $1,858 million in the last year period.
Cash and cash equivalents stood at $1,959 million as on Dec. 31, 2016, down 15.19 percent or $351 million from $2,310 million on Dec. 31, 2015.
Debt comes down
Devon Energy Corporation has recorded a decline in total debt over the last one year. It stood at $10,154 million as on Dec. 31, 2016, down 22.08 percent or $2,878 million from $13,032 million on Dec. 31, 2015. Total debt was 39.18 percent of total assets as on Dec. 31, 2016, compared with 44.13 percent on Dec. 31, 2015. Debt to equity ratio was at 0.98 as on Dec. 31, 2016, down from 1.19 as on Dec. 31, 2015. 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: editor@irisindia.net
