Devon Energy & Chesapeake: Feeling the Oil Pinch
We have been pretty bullish on Devon Energy (DVN) lately, but this story reads a little differently. Devon definitely hit a low point, but I have faith it will make a come back. Check out the details provided by Paul Ausick.
"…Devon’s disappointing results stem from a pre-tax loss of $254 million on a change in the fair value of the company’s hedges. The derivatives loss mirrors yesterday’s announcement from Chesapeake Energy Corp. (NYSE: CHK), which posted a $725 million loss on its hedges. Another energy E&P company that posted a derivatives loss yesterday was Anadarko Petroleum Corp. (NYSE: APC). Anadarko, like Apache Corp. (NYSE: APA) and Occidental Petroleum Corp. (NYSE: OXY) produce more (higher priced) oil than do Chesapeake or Devon, and that is what made the difference."
Read the entire article here: http://247wallst.com/2011/05/04/oil-gas-hedging-woes-devon-energy-falters-with-cheasapeake-dvn-chk-apc-apa-oxy/