UPDATE 1-Devon ready to boost drilling, spending if oil prices keep climbing

(Adds context on other producers' plans, details on hedging and
Canada operations amid wildfires, stock price)
HOUSTON, May 4 (Reuters) - Devon Energy Corp (NYSE:DVN) DVN.N will
ramp up drilling and spending if oil prices continue to recover,
executives said on Wednesday, joining a growing list of
companies expecting an increase in activity as the commodity
price picture improves.
The Oklahoma City-based oil and gas driller could start
adding incremental drilling activity if oil prices hit $50 a
barrel and could double capital spending if they reach $60,
Chief Executive Officer Dave Hager told investors on a
conference call to discuss first-quarter results.
It would "probably take $60 oil or more to really get back
to a capital spend level of close to $2 billion versus a $1
billion, where we're at now," Hager said.
His comments come after rival producers Pioneer Natural
Resources Co PXD.N and Whiting Petroleum Corp WLL.N said
they could see a ramp-up of drilling and fracking, contributing
to a growing consensus that a price rise above $50 could fuel a
resurgence in the U.S. shale industry.
U.S. oil CLc1 prices have rebounded since hitting a trough
just above $26 per barrel in February, and traded above $43 on
Wednesday. O/R
Devon shares slid 7 percent to $30.47.
Devon had said it expected its 2016 oil output to exceed
expectations by as much as 3 percent, even without additional
capital spending.
The company has also taken advantage of the recent price
spike to hedge 25 percent of its expected 2016 oil output, using
a "collar" strategy to guarantee a price floor of $39 a barrel
and see benefits from spikes above $44 a barrel.
Hager said the company had recently changed its hedging
strategy, hedging some output each quarter on a "consistent
programmatic basis" as far forward as six quarters, rather than
relying solely on "opportunistic" hedges as it has historically.
Devon, which is active in the oil sands of Alberta, Canada,
said operations were unaffected by the wildfires that swept the
Fort McMurray area on Tuesday and Wednesday, prompting the
evacuation of 88,000 people.
The company posted a loss of 53 cents per share, excluding
items, in the first quarter, less than analysts' consensus
estimate of 64 cents. Revenue of $2.1 billion was below
expectations of $2.6 billion.