Devon, Diamondback Energy Power Past Estimates on Oil Price Surge

Both U.S. shale producers sweetened the pot for investors by announcing higher returns, with Devon Energy raising its quarterly dividend to $1.55 from $1.27 and Diamondback Energy hiking share repurchases by $2 billion to $4 billion.

Shariq Khan and Ruhi Soni, Reuters

U.S. shale companies Devon Energy Corp. and Diamondback Energy Inc. on Aug. 1 surpassed estimates for second-quarter profit, joining global oil majors in posting bumper earnings on red-hot energy prices.

Oil and gas prices have skyrocketed as sanctions on major producer Russia throttle supply amid a rebound in demand from pandemic lows thanks to economies reopening after restrictions.

Benchmark Brent futures ave risen more than 140% over the past year and averaged around $114/bbl during the second quarter, helping U.S. and European heavyweights Exxon Mobil Corp., Chevron Corp., Shell Plc and TotalEnergies SE post record profits.

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