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Why Is Devon Energy (DVN) Up 16.5% Since Last Earnings Report?
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A month has gone by since the last earnings report for Devon Energy (DVN - Free Report) . Shares have added about 16.5% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Devon Energy due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
Devon Energy Q1 Earnings Beat Estimates, Sales Miss
Devon Energy Corp. reported first-quarter 2022 adjusted earnings of $1.88 per share, beating the Zacks Consensus Estimate of $1.75 by 8%. Earnings were up 35.3% from the year-ago quarter. The year-over-year improvement was due to the company’s oil-weighted production mix and low operating costs as well as recovery in commodity prices.
GAAP earnings for the first quarter were $1.48 compared with $2.23 per share in the year-ago period.
Revenues
Total revenues of $3,812 million lagged the Zacks Consensus Estimate by 5.1%. The top line improved 85.9% from the year-ago figure.
Production
Total net production for first-quarter 2022 touched 575,000 barrels of oil equivalent per day (Boe/d), up 15.2% year over year. First-quarter production was near the high end of the guided range of 560,000-580,000 Boe/d. Production for the quarter was driven by high-margin production growth in the Delaware Basin.
Oil production averaged 288,000 barrels per day (Bbl/d), which increased 7.5% on a year-over-year basis, primarily due to strong contributions from Delaware Basin’s assets. Natural gas liquids production was also up 37.4% year over year to 136,000 Bbl/d.
Realized Prices
Realized oil prices for the quarter were $81.62 per barrel, up 76.9% from $46.15 in the year-ago period. Realized prices for natural gas liquids were up 52.2% to $37.76 per barrel from $24.81 in the prior-year quarter.
Realized gas prices were up 17.1% to $3.15 per thousand cubic feet from $2.69 in the prior-year quarter.
Total oil equivalent realized prices — including cash settlements — were $54.75 per Boe, up 61.2% year over year.
Other Highlights
Total production expenses for the first quarter were $618 million, increasing 34.9% year over year.
The board of directors expanded the company’s share-repurchase authorization by 25% to $2 billion, which is equivalent to 5% of Devon’s market capitalization. Since the announcement of the program, Devon has repurchased 19.1 million shares for $891 million.
Devon’s free cash flow for first-quarter 2022 was $1.3 billion. Financing costs for the reported quarter were $85 million, up 10.4% from $77 million in the year-ago period.
Financial Highlights
As of Mar 31, 2022, the company had cash and cash equivalents, including restricted cash of $2,625 million, up from $2,271 million as of Dec 31, 2021. Total liquidity as of Mar 31, 2022, was $5,625 million.
As of Mar 31, 2022, long-term debt amounted to $6,471 million, down from $6,482 million as of Dec 31, 2021.
Devon Energy’s net cash from operating activities for first-quarter 2022 was $1,837 million compared with $592 million in the year-ago period.
Guidance
Devon expects total production in the range of 585,000-604,000 Boe/d for the second quarter. Second-quarter capital expenditure is projected in the range of $570-$640 million.
Devon reiterated its 2022 total production guidance in the range of 570,000-600,000 Boe/d and upstream capital investment within $1.9-$2.2 billion. Total capital expenditure for 2022 is expected in the range of $2.06-$2.44 billion.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended upward during the past month.
VGM Scores
Currently, Devon Energy has a strong Growth Score of A, a grade with the same score on the momentum front. However, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Devon Energy has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
Performance of an Industry Player
Devon Energy belongs to the Zacks Oil and Gas - Exploration and Production - United States industry. Another stock from the same industry, Matador Resources (MTDR - Free Report) , has gained 16.6% over the past month. More than a month has passed since the company reported results for the quarter ended March 2022.
Matador reported revenues of $565.69 million in the last reported quarter, representing a year-over-year change of +112%. EPS of $2.32 for the same period compares with $0.71 a year ago.
Matador is expected to post earnings of $3.04 per share for the current quarter, representing a year-over-year change of +198%. Over the last 30 days, the Zacks Consensus Estimate has changed +4.3%.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #1 (Strong Buy) for Matador. Also, the stock has a VGM Score of B.
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Why Is Devon Energy (DVN) Up 16.5% Since Last Earnings Report?
A month has gone by since the last earnings report for Devon Energy (DVN - Free Report) . Shares have added about 16.5% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Devon Energy due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
Devon Energy Q1 Earnings Beat Estimates, Sales Miss
Devon Energy Corp. reported first-quarter 2022 adjusted earnings of $1.88 per share, beating the Zacks Consensus Estimate of $1.75 by 8%. Earnings were up 35.3% from the year-ago quarter. The year-over-year improvement was due to the company’s oil-weighted production mix and low operating costs as well as recovery in commodity prices.
GAAP earnings for the first quarter were $1.48 compared with $2.23 per share in the year-ago period.
Revenues
Total revenues of $3,812 million lagged the Zacks Consensus Estimate by 5.1%. The top line improved 85.9% from the year-ago figure.
Production
Total net production for first-quarter 2022 touched 575,000 barrels of oil equivalent per day (Boe/d), up 15.2% year over year. First-quarter production was near the high end of the guided range of 560,000-580,000 Boe/d. Production for the quarter was driven by high-margin production growth in the Delaware Basin.
Oil production averaged 288,000 barrels per day (Bbl/d), which increased 7.5% on a year-over-year basis, primarily due to strong contributions from Delaware Basin’s assets. Natural gas liquids production was also up 37.4% year over year to 136,000 Bbl/d.
Realized Prices
Realized oil prices for the quarter were $81.62 per barrel, up 76.9% from $46.15 in the year-ago period. Realized prices for natural gas liquids were up 52.2% to $37.76 per barrel from $24.81 in the prior-year quarter.
Realized gas prices were up 17.1% to $3.15 per thousand cubic feet from $2.69 in the prior-year quarter.
Total oil equivalent realized prices — including cash settlements — were $54.75 per Boe, up 61.2% year over year.
Other Highlights
Total production expenses for the first quarter were $618 million, increasing 34.9% year over year.
The board of directors expanded the company’s share-repurchase authorization by 25% to $2 billion, which is equivalent to 5% of Devon’s market capitalization. Since the announcement of the program, Devon has repurchased 19.1 million shares for $891 million.
Devon’s free cash flow for first-quarter 2022 was $1.3 billion. Financing costs for the reported quarter were $85 million, up 10.4% from $77 million in the year-ago period.
Financial Highlights
As of Mar 31, 2022, the company had cash and cash equivalents, including restricted cash of $2,625 million, up from $2,271 million as of Dec 31, 2021. Total liquidity as of Mar 31, 2022, was $5,625 million.
As of Mar 31, 2022, long-term debt amounted to $6,471 million, down from $6,482 million as of Dec 31, 2021.
Devon Energy’s net cash from operating activities for first-quarter 2022 was $1,837 million compared with $592 million in the year-ago period.
Guidance
Devon expects total production in the range of 585,000-604,000 Boe/d for the second quarter. Second-quarter capital expenditure is projected in the range of $570-$640 million.
Devon reiterated its 2022 total production guidance in the range of 570,000-600,000 Boe/d and upstream capital investment within $1.9-$2.2 billion. Total capital expenditure for 2022 is expected in the range of $2.06-$2.44 billion.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended upward during the past month.
VGM Scores
Currently, Devon Energy has a strong Growth Score of A, a grade with the same score on the momentum front. However, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Devon Energy has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
Performance of an Industry Player
Devon Energy belongs to the Zacks Oil and Gas - Exploration and Production - United States industry. Another stock from the same industry, Matador Resources (MTDR - Free Report) , has gained 16.6% over the past month. More than a month has passed since the company reported results for the quarter ended March 2022.
Matador reported revenues of $565.69 million in the last reported quarter, representing a year-over-year change of +112%. EPS of $2.32 for the same period compares with $0.71 a year ago.
Matador is expected to post earnings of $3.04 per share for the current quarter, representing a year-over-year change of +198%. Over the last 30 days, the Zacks Consensus Estimate has changed +4.3%.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #1 (Strong Buy) for Matador. Also, the stock has a VGM Score of B.