May 7--Oklahoma City-based Devon Energy Corp. Wednesday reported a $4 billion loss for the first quarter of 2009 as a continued decline in commodity prices forced the company to reduce the carrying value of its oil and gas properties by $4.2 billion.

The loss amounted to $8.92 a share.

Vincent White, senior vice president of investor relations for Devon, said the $4.2 million non-cash charge was a consequence of the company using the conservative full cost accounting method.

The method bases calculations of oil and gas property values on the prices of the commodities on the last day of the quarter. The accounting method is being changed at the end of 2009 so that values will be calculated on a 12-month trailing average of prices. Had the new accounting method been in place now, Devon would not have taken the non-cash charge, White said.

Securities analysts typically exclude write-downs in oil and gas property values due to lower commodity prices and certain other items in discussing the financial performance of energy companies. Excluding those items, Devon earned $216 million or 48 cents per share for the quarter. That was well above analysts' expectations of about 34 cents a share.

Devon's stock rose $6.53 a share Wednesday to close at $61.01.

This is the second straight quarter that Devon has reported a multi-billion loss due to write-downs caused by sliding commodity prices. The company recorded a $6.8 billion loss for the previous quarter, bringing the six-month loss to $10.8 billion.

Despite low oil and natural gas prices, "Devon had a very good quarter," said J. Larry Nichols, Devon's chairman and chief executive officer.

"The earnings before the impairment charge were well above the expectations due to higher than forecasted overall production, lower than expected operating cost, better than expected performance from marketing and in midstream, and a lower than expected overall tax rate," Nichols said.

Devon reported combined oil, gas and natural gas liquids production averaged 684,900 barrels of oil equivalent a day -- a 7 percent increase over the first quarter of 2008 when the company recorded a $749 million profit while producing 44,600 fewer barrels of oil equivalent.

Despite increased production, Devon's sales of oil, natural gas and natural gas liquids decreased 53 percent to $1.5 billion for the first quarter of 2009, compared to the same quarter in 2008. Dramatically lower prices for all three commodities were the reason.

Devon reported a number of operating highlights.