Devon trims output forecast on Canada drop

HOUSTON (Reuters) – Independent oil and gas producer Devon Energy Corp. on Friday trimmed its forecast for fourth quarter production by 1 million to 2 million barrels of oil equivalent, hurt by reduced Canadian gas output.

The Oklahoma City-based company said it now expected fourth quarter production growth of 7 percent from the year-ago level to about 57 million barrels of oil equivalent (boe) rather than the 58 million to 59 million boe it had forecast last month.

Weakening prices for gas from Western Canada has hit margins, the company said, forcing it to trim output forecasts.

“Competitive pressure for equipment, service and supplies in Canada have created a highly inflationary cost environment. In addition, the strengthening of the Canadian dollar relative to the U.S. dollar has negatively impacted profit margins on these projects,” the company said in a statement.

Reuters