Devon Energy reported a Q1 net loss of $3.1 billion, or $6.44 per share, bringing the red ink down a shade lighter from 1Q15’s net loss of $3.6 billion, or $8.88 a share.
Revenue fell to $2.1 billion from $3.3 billion a year ago, and the company closed out the quarter with $10.9 billion in net debt. Low commodity prices were the culprit in the loss as well as a $2.1 billion writedown of impaired assets. A year ago, the company wrote down $5.46 billion. President and CEO Dave Hager laid out the top priority of maintaining a strong balance sheet: “We are balancing capital requirements with cash ow and enhancing our nancial strength by utilizing asset sale proceeds to reduce debt.ˮ Capex was $749 million in Q1 compared with $1.7 billion a year ago. Acquisitions of property, equipment and businesses were slightly above $1.6 billion in the quarter against $404 million a year ago.
Devon expects to spend in the $1.17-1.44 billion range in 2016 compared with $5.3 billion in 2015.