Devon Energy Corp. reported net earnings of $706 million ($1.58/share) in 2Q2010, a 125% increase compared with year-ago net earnings of $314 million (71 cents), the company reported Wednesday. Excluding one-time items the Oklahoma City-based independent earned $685 million ($1.53/share).

The independent said it drilled 315 wells in the latest quarter with an overall success rate of 100%. North American onshore oil and liquids production totaled 197,000 b/d, which is 6% higher than in the first three months of this year. In the Permian Basin, where it has assembled 700,000 net acres targeting the Avalon Shale, Bone Spring and Wolfberry plays, 26 wells were drilled, including what it said was its best well to date in the play. The company currently is running 11 rigs to derisk and develop its Permian Basin acreage position.

In the Cana-Woodford Shale, average production jumped to 105 MMcfe/d in 2Q2010, an increase of more than 200% from 2Q2009. Two Granite Wash wells, in which Devon holds a working interest of 70% each, were ramped up in the quarter; initial production averaged 29 MMcfe/d.

Net production from the Barnett Shale field exceeded 1.1 Bcfe/d in the quarter, which was 3% higher than in the first three months of this year. Devon expects to reach its previous Barnett production record of 1.2 Bcfe/d before the end of September.

Earnings from continuing operations increased 85% year/year to $352 million. Sales of oil, natural gas and natural gas liquids were 23% higher to $1.8 billion. Higher realized prices for all three products more than offset a 3% decrease in overall production, Devon said.

Oil and gas production from continuing operations averaged 643,000 boe/d in 2Q2010 versus average production of 666,000 boe/d in the year-ago period. The most significant component of this production decline was the impact of property divestitures in the Gulf of Mexico, Devon said.

©Copyright 2010 Intelligence Press Inc. All rights reserved. The preceding news report may not be republished or redistributed, in whole or in part, in any form, without prior written consent of Intelligence Press, Inc.