- Devon Energy (DVN +3.1%) is sharply higher after posting better than expected Q3 earnings and revenues, as it cut expenses and shifted to higher margin production.
- DVN, which has steadily been cutting its lease operating expenses including labor and supply costs, says total operating expenses fell 69% Y/Y in Q3 and expects cost savings to reach $1B this year.
- Total production averaged 577K boe/day in Q3, down 10.4% Q/Q and 15% Y/Y, but production from its retained asset base rose ~1% to 550K boe/day; output from the Jackfish complex in Canada surged 13% Q/Q following the completion of scheduled maintenance.
- DVN says it plans to increase its rig activity in the U.S. from five operated rigs running in Q3 to as many as 10 operated rigs by year end.