Devon Energy Corp. (NYSE: DVN) reported first-quarter 2016 results after markets closed on Tuesday. The independent oil and gas company posted adjusted diluted earnings per share (EPS) of $0.53 on revenues of $2.13 billion. In the same period a year ago, the company reported EPS of $0.22 on revenues of $3.26 billion. First-quarter results compare to the Thomson Reuters consensus estimates for a per share loss of $0.64 and $2.57 billion in revenues.

On a GAAP basis Devon posted a net loss of $3.06 billion, or $6.44 per share, primarily due to a non-cash, after tax impairment charge of $2.3 billion and a deferred tax asset valuation allowance of $800 million.

Devon raised production guidance for the second quarter and the full year. For the second quarter the company now projects oil-equivalent production  of 616,000 too 653,000 barrels a day. For the full year the estimates have risen to 611,000 to 648,000 barrels of oil equivalent production. Crude oil comprises about 40% of projected production.

CEO Dave Hager said:

In spite of the challenging industry conditions, Devon achieved another high-quality operating performance in the first quarter as we continued to take the appropriate steps to deliver significant cost reductions and accelerate efficiency gains across our portfolio. These successful efforts resulted in production exceeding the midpoint of guidance for all products and operating costs declining by more than 20 percent year over year. Additionally, G&A costs savings remain on track to reduce overhead by up to $500 million on an annual basis.

Capital spending for the first quarter totaled $363 million, 9% below Devon’s estimated mid-point.

The consensus analysts’ earnings per share and revenue estimates call for a loss of $0.38 per share on revenues of $2.63 billion in the second quarter and a full-year loss per share of $1.31 and revenues of $11.01 billion.

In our preview of Devon’s earnings, we thought the company might announce further asset sales. That did not happen, probably because crude prices are rising and the company has added substantially to its liquidity since the end of last year. Devon’s lease operating expenses dropped more than $7 a barrel in the first quarter (a total of $6 million) and the company has lowered its full-year estimate of those costs by $50 million.

Shares traded up about 1.7% in Tuesday’s after-hours session, at $33.30 in a 52-week range of $18.07 to $70.48. Thomson Reuters had a consensus analyst price target of around $34.95 before today’s report.

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