Devon Energy Corp (NYSE:DVN) stock fell 2.45% (As on November 8, 11:20:28 AM UTC-4, Source: Google Finance) after the company  posted mixed result for the third quarter of FY 23. Devon’s operating cash flow totaled $1.7 billion in the third quarter. With capital reinvestment rates at 52 percent of cash flow, Devon generated $843 million of free cash flow in the quarter, a more than two-fold increase versus the second quarter. In the third quarter, the company took steps to strengthen its financial position by retiring $242 million of outstanding debt. The company also increased its cash on hand by $273 million in the quarter to a total of $761 million. Outstanding debt declined to $6.2 billion and the company’s net debt-to-EBITDAX ratio was 0.7 times. The company’s core earnings were $1.1 billion, a 40 percent increase from the prior quarter.

DVN in the third quarter of FY 23 has reported the adjusted earnings per share of $1.65, beating the analysts’ estimates for the adjusted earnings per share of $1.56, according to Zacks Investment Research. The company had reported the adjusted revenue to $3.84 billion in the third quarter of FY 23, missing the analysts’ estimates for revenue of $4.03 billion.

Moreover, Devon’s capital activity in the third quarter averaged 24 operated drilling rigs and 5 completion crews across its asset portfolio. This level of activity resulted in 81 gross operated wells being placed online, with an average lateral length of 9,300 feet. Production averaged 665,000 oil-equivalent barrels (Boe) per day in the third quarter, representing an increase of 8 percent year over year. This result was 1 percent below midpoint expectations due to select well performance in the Williston Basin and temporary constraints in the Delaware. Oil totaled 321,000 barrels per day in the quarter, which was 48 percent of total volumes.   Devon’s operating performance was driven by its Delaware Basin asset, which accounted for 66 percent of the company’s production at 440,000 Boe per day. This production result represents a growth rate of 5 percent compared to the year-ago period, driven by 59 gross operated wells being placed online during the quarter. Production costs, including taxes, averaged $12.37 per Boe in the quarter. This low cost structure, coupled with the benefits of higher commodity prices, expanded field-level cash margins by 18 percent quarter-over-quarter to $34.73 per Boe.