Devon Energy (DVN +1.49%) reported third-quarter results before the opening bell today.The company delivered adjusted net earnings of $1.29 per share, which was $0.08 higher than analysts were expecting on the quarter. That represents a 47% increase from the prior year. Devon also grew its operating cash flow by 18% over the prior year.
Devon's strong oil production growth fueled those results. The company delivered average daily production of 165,000 barrels per day, which was 16% higher than last year's third quarter. Oil production growth was strongest in the U.S., where it grew 38% over last year due to strength in the Permian Basin and the Mississippian-Woodford Trends.
Total production of oil, natural gas and natural gas liquids was strong as well. Devon's production averaged 691,000 barrels of oil equivalent per day. That exceeded the midpoint of the company's guidance. Overall, oil and natural gas liquids, Devon's two highest margin products, now represent 43% of total production and is up from 42% last quarter.
In commenting on the quarter, CEO John Richels noted that, "Once again we significantly increased light oil production in the U.S., reflecting our continued success in the Permian Basin and emerging oil plays. Additionally, Devon's disciplined pursuit of high-margin production has improved cash margins by 16% year over year to our highest level in the past eight quarters."
