U.S. Oil and Gas producers Occidental Petroleum Corp and Devon Energy Corp blew past Wall Street’s profit expectations on Tuesday, as easing travel curbs and rising vaccinations boosted fuel demand and crude prices. Shares of Occidental rose nearly 2 percent to $26.95 in extended trade, while Devon climbed 1.9 percent to $26.70.
After a crushing 2020, oil prices , have rebounded to multi-year highs and are now trading at over $70 a barrel, thanks to output curbs by the OPEC+ and a pick-up in economic activity. Devon also announced a fixed-plus-variable dividend of 49 cents per share, 44 percent higher than last quarter’s payout, underscoring the energy industry’s focus on shareholder returns over spending to expand production.
The company’s average price for worldwide crude oil rose to $60.05 per barrel from $55.65 barrel in the prior quarter. The Oil and Gas producer’s adjusted profit attributable to common stockholders stood at $311 million, or 32 cents per share, for the three months ended June 30. Analysts had estimated 3 cents per share, according to Refinitiv IBES. Devon posted core earnings of 60 cents per share, beating an estimate of 52 cents per share.After the pandemic crushed, oil prices, have rebounded to a multi-year high. They are now trading at over $70 a barrel, thanks to output curbs by the OPEC+ and a pick-up in economic activity.