Devon Energy Corp’s (DVN.N) oil output exceeded its expectations by 5,000 barrels per day in the first quarter, the company said on Tuesday, prompting it to raise its 2016 production forecast.
The Oklahoma City-based company produced 285,000 barrels per day in the quarter, with output from its core assets up 10 percent year-over-year, Devon said in an earnings release.
Devon said it expected to produce 253,000-268,000 barrels per day in 2016, 3 percent more than its prior estimate, without additional capital spending.
The big quarterly increase came as a global rout in crude oil prices CLc1 has prompted many U.S. shale drillers to cut back new drilling activity. The total U.S. rig count stands at 332, the lowest since 2009, oil services company Baker Hughes Inc (BHI.N) said on Friday.
A crude glut has persisted, with U.S. inventories rising to 539.7 million barrels in the week to April 29.
Devon posted a 53 cent loss per share, excluding items, in the quarter, less than analysts’ consensus estimate of 64 cents. Revenue of $2.1 billion was below analysts’ expectations of $2.6 billion. Source.