Independent oil and gas producer Devon Energy Corp. (NYSE: DVN) will report first-quarter earnings after markets close Tuesday. The company is expected to post a loss per share of $0.64 on revenues of $2.57 billion. In the first quarter of 2015 Devon reported earnings per share of $0.22 and sales of $3.26 billion.
The company’s fourth-quarter earnings report in mid-February was nothing short of a disaster. Devon cut its dividend by 75% and its capital budget by the same amount. It also priced and issued an upsized offering of 69 million new shares at $18.75, a discount of about 7.8% to the previous day’s closing price.
At the same time, Devon said it would lay off about 20% of its workforce in the first quarter, raising its savings due to cost cuts to $400 million to $500 million, including savings from a workforce reduction in 2015 and cuts to its administrative spending. Last month Devon sold $200 million worth of non-core assets in northern Oklahoma to White Star Petroleum. Devon sold $2.3 billion in non-core assets to Linn Energy and another $2.7 billion to Canadian Natural Resources in 2014.
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