Shares of Devon Energy Corp. fell 5.2% to $60.65 in after-hours trading on Tuesday after the oil and gas producer reported a decline in fourth-quarter profit and warned of issues weighing on 1Q production.
Net income attributable to the company fell to $1.20 billion, or $1.83 per share, compared with $1.51 billion, or $2.23 per share, the year prior. Adjusted per-share earnings came to $1.66, below the $1.75 per share that analysts were expecting, according to FactSet.
The Oklahoma City-based company warned last month that severe winter weather across its operations would reduce fourth-quarter production. Devon’s production was roughly 636,000 oil-equivalent barrels a day. Oil volumes reached 316,000 barrels a day, which the company said was an all-time high.
For the first quarter, the company said it expects production of about 635,000 oil-equivalent barrels a day, down slightly from the fourth quarter. Analysts polled by FactSet were expecting roughly 657,600 barrels a day.
The company said volumes in the quarter are temporarily impacted by infrastructure outages in the Delaware Basin, timing of wells placed online and ethane rejection.