In today’s edition, Paul and Matt discuss Devon Energy’s latest results. Production at this North American oil and gas producer was up 3% year over year to 679,000 BOE. Despite the low overall production growth, oil production was up a strong 26% year over year. However, weak pricing led to results that the market didn't enjoy. Also, capital spending came in higher than expected because of front-end loaded capital spending and additional leasehold spending.
All told, Devon still turned in a solid quarter. The company forecasts 680,000 to 690,000 BOE of production in the third quarter and will continue testing new plays such as the Utica, the Mississippian, and the Tuscaloosa Marine Shale. That should help drive production growth in the future as these plays progress.
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Matthew Argersinger has options on Devon Energy. Paul Chi owns shares of Chesapeake Energy and Devon Energy and has options on SandRidge Energy. The Motley Fool owns shares of Devon Energy and has options on Chesapeake Energy. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.