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Will Multi-Basin Assets Aid Devon Energy (DVN) in Q1 Earnings?
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Devon Energy Corporation (DVN - Free Report) is set to report first-quarter 2024 results on May 1, after market close. This oil and gas company delivered an average earnings surprise of 3.28% in the last four reported quarters.
The Zacks Consensus Estimate for earnings is pegged at $1.10 per share on revenues of $3.62 billion. The top and bottom-line estimates suggest a decline of 5.4% and 24.7%, respectively, from a year ago.
Per our proven model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chance of an earnings beat. This is not the case here.
At present, Devon Energy has an Earnings ESP of 0.00% and a Zacks Rank of 3.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Devon Energy continues to benefit from its multi-basin portfolio and high margin assets. Contribution from these assets allows the company to keep a stable production volume.
Severe weather condition across Devon’s portfolio in January 2024 resulted in unplanned power outages and production disruptions. Courtesy of its strong portfolio of assets, adverse weather condition is expected to have lowered the production volumes by just 2% in first quarter.
Due to unplanned outage, management expects its production to be nearly 640,000 barrels of oil equivalent (Boe) per day (48% oil). The Zacks Consensus Estimate is pegged at 641,220 Boe per day. The company has successfully restored the affected production across all its operating areas. It expects weather-related downtime to not have any impact on planned 2024 production volumes.
Stable free cash flow generation is expected to have continued in the first quarter as well, which assisted in increasing shareholders value. The ongoing share repurchases have lowered shares outstanding level of the company, which is likely to have had a positive impact on first-quarter earnings.
Stocks to Consider
Investors can consider the following players from the same sector that, per our model, have the right combination of elements to beat on earnings this reporting cycle.
The Zacks Consensus Estimate for COP’s first-quarter 2024 earnings has gone up 1.9% in the last 30 days.
EOG Resources (EOG - Free Report) is likely to deliver an earnings surprise when it posts first-quarter numbers on May 3, 2024. EOG has an Earnings ESP of +0.95% and a Zacks Rank #2.
The Zacks Consensus Estimate for EOG’s first-quarter 2024 earnings implies an increase of 3.4% in the last 30 days.
PBF Energy Inc. (PBF - Free Report) is likely to deliver an earnings surprise when it posts first-quarter figures on May 2, 2024. PBF has an Earnings ESP of +14.1% and a Zacks Rank #2.
The Zacks Consensus Estimate for PBF’s first-quarter 2024 earnings implies an increase of 7.8% in the last 30 days.
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Will Multi-Basin Assets Aid Devon Energy (DVN) in Q1 Earnings?
Devon Energy Corporation (DVN - Free Report) is set to report first-quarter 2024 results on May 1, after market close. This oil and gas company delivered an average earnings surprise of 3.28% in the last four reported quarters.
The Zacks Consensus Estimate for earnings is pegged at $1.10 per share on revenues of $3.62 billion. The top and bottom-line estimates suggest a decline of 5.4% and 24.7%, respectively, from a year ago.
Per our proven model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chance of an earnings beat. This is not the case here.
At present, Devon Energy has an Earnings ESP of 0.00% and a Zacks Rank of 3.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Devon Energy Corporation Price and EPS Surprise
Devon Energy Corporation price-eps-surprise | Devon Energy Corporation Quote
Factors at Play
Devon Energy continues to benefit from its multi-basin portfolio and high margin assets. Contribution from these assets allows the company to keep a stable production volume.
Severe weather condition across Devon’s portfolio in January 2024 resulted in unplanned power outages and production disruptions. Courtesy of its strong portfolio of assets, adverse weather condition is expected to have lowered the production volumes by just 2% in first quarter.
Due to unplanned outage, management expects its production to be nearly 640,000 barrels of oil equivalent (Boe) per day (48% oil). The Zacks Consensus Estimate is pegged at 641,220 Boe per day. The company has successfully restored the affected production across all its operating areas. It expects weather-related downtime to not have any impact on planned 2024 production volumes.
Stable free cash flow generation is expected to have continued in the first quarter as well, which assisted in increasing shareholders value. The ongoing share repurchases have lowered shares outstanding level of the company, which is likely to have had a positive impact on first-quarter earnings.
Stocks to Consider
Investors can consider the following players from the same sector that, per our model, have the right combination of elements to beat on earnings this reporting cycle.
ConocoPhillips (COP - Free Report) is likely to deliver an earnings surprise when it posts first-quarter results on May 2, 2024. COP has an Earnings ESP of +2.85% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for COP’s first-quarter 2024 earnings has gone up 1.9% in the last 30 days.
EOG Resources (EOG - Free Report) is likely to deliver an earnings surprise when it posts first-quarter numbers on May 3, 2024. EOG has an Earnings ESP of +0.95% and a Zacks Rank #2.
The Zacks Consensus Estimate for EOG’s first-quarter 2024 earnings implies an increase of 3.4% in the last 30 days.
PBF Energy Inc. (PBF - Free Report) is likely to deliver an earnings surprise when it posts first-quarter figures on May 2, 2024. PBF has an Earnings ESP of +14.1% and a Zacks Rank #2.
The Zacks Consensus Estimate for PBF’s first-quarter 2024 earnings implies an increase of 7.8% in the last 30 days.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.