Devon Energy Corp. (NYSE: DVN) detailed its financial results for the first-quarter 2014 on May 7. The quarter ended March 31, the company said.
The company said that upstream revenues increased 42% from first-quarter 2013. Oil, natural gas and NGL generated $2.6 billion in the first-quarter, and this was due to growth in high-margin oil production and improved price realizations for all products, Devon Energy noted. Out of the total amount, oil sales comprised 50% of the revenues, the company added.
The higher-margin oil production, improved price realizations and a low cost structure improved the company’s cash flow, Devon Energy said. The operating cash flow stood at $1.4 billion, a 41% increase from first-quarter 2013, the company added.
Net earnings for the time period were $324 million, compared to first-quarter 2013’s net loss of $1.3 billion, the company said.
Devon Energy’s balance sheet was strong over the quarter, with a $2 billion cash balance and investment-grade credit ratings. Net debt totaled $13.5 billion on March 31, and the company noted that $1.5 billion of this was due to the EnLink Midstream consolidation.
The company drew $2 billion on its senior term loans in first-quarter 2014, and the proceeds, alongside a portion of cash, funded its Eagle Ford acquisition, Devon Energy said.
Regarding the upcoming second-quarter, the company noted that proceeds from its ongoing asset divestiture program will be used to reduce debt.
Oklahoma City-based Devon Energy Corp. produces onshore oil and natural gas in North America.
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