Quarterly earnings after paying preferred dividends decreased to $703 million, or $1.57 per share, from $742 million, or $1.63 per share, during the same period last year.
Excluding special items totaling $38 million, or 9 cents per share, related to the use of derivatives and a reduction in the carrying value of oil and gas properties, the company earned $1.66 per share, in the latest period.
Analysts polled by Thomson Financial forecast a profit of $1.52 per share. Thomson estimates usually exclude special items.
Revenue grew less than 1 percent to $2.72 billion from $2.7 billion during the same period a year ago, but came in above analysts' estimate of $2.65 billion.
The company said its realized price for natural gas shrank 21 percent to $5.62 per thousand cubic feet in the quarter, compared woth $7.13 per thousand cubic feet in the year-ago period. Devon Energy said it also incurred higher operating expenses, such as higher oil field service and supply costs, lease operating expenses, higher production taxes and greater labor costs.
Devon Energy drilled 740 wells in the period, with 731 successful. Combined oil, gas and natural gas production in the quarter averaged 602,000 oil equivalent barrels per day, an increase of 1 percent versus last year.
