Aug 5 (Reuters) - Shale producer Devon Energy (DVN.N) , opens new tab narrowly missed Wall Street expectations for second-quarter profit on Tuesday, as weaker commodity prices offset a rise in output.

The company also announced two new natural gas supply agreements as it looks to diversify its portfolio amid growing demand for the heating fuel.

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Devon will supply 50 million cubic feet per day (mmcfd) of natgas to an undisclosed buyer, primarily for LNG exports over a 10-year period. The second agreement was inked with the CPV Basin Ranch Energy Center for the supply of 65 mmcfd for a seven-year term.

On Monday, Coterra Energy (CTRA.N) , opens new tab also announced a deal to supply 50 mmcfd of natgas to the Permian-based energy center.

Devon's quarterly performance was hurt by over a 20% fall in Brent crude prices from a year earlier, which came under pressure from growing market uncertainty. Its average realized price fell to $62.97 per barrel of oil produced during the quarter from $78.95 a barrel last year.

The impact of the weak prices was, however, cushioned by over a 15% rise in oil production, which came in at 387,000 bpd. Meanwhile, natural gas production jumped 22% to 1.39 billion cubic feet per day.

The U.S. oil and gas producer plans to boost its annual free cash flow by $1 billion by the end of 2026 by reducing drilling and completion costs, as well as by improving operating margins.

It reduced its current-year capital expenditure forecast by $100 million and now expects it to range between $3.6 billion and $3.8 billion.

The company also expects current-year oil production to be in the range of 384,000-390,000 bpd, compared with a prior view of 382,000-388,000 bpd.

The Oklahoma City-based company posted an adjusted profit of 84 cents per share for the second quarter, compared with the analysts' estimate of 85 cents apiece, according to data compiled by LSEG.

https://www.reuters.com/business/energy/devon-energy-misses-second-quarter-profit-estimates-weak-oil-prices-2025-08-05/