Devon Energy Corp. (DVN - Free Report) reported break-even fourth-quarter 2020 adjusted earnings versus the Zacks Consensus Estimate of 5 cents per share. In the year-ago quarter, the company reported earnings of 33 cents per share.
GAAP loss for the fourth quarter was 27 cents compared with a loss of 25 cents per share in the year-ago period.
Revenues
Total revenues of $1,280 million outpaced the Zacks Consensus Estimate by 3.2%. The top line, however, declined 19.4% from the year-ago figure due to fall in commodity prices.
Production
Total net production for fourth-quarter 2020 touched 3333,000 barrels of oil equivalent per day (Boe/d), which was near the higher end of the guided range of 318,000-334,000 Boe/d and was up 2.1% sequentially. Oil production averaged 156,000 barrels per day (Bbl/d), which decreased 4.3% on a year-over-year basis. However, Delaware Basin assets’ performance remained solid and oil production from this region was up 17.9% year over year.
Natural gas liquids production was up 8.1% year over year.
Realized Prices
Realized oil prices for the quarter were $38.01 per barrel, down 33.2% from $56.89 in the year-ago period. Realized prices for natural gas liquids were also down 15.8% to $14.76 per barrel from $17.54 in the prior-year quarter.
Realized gas prices were up 7.1% to $1.96 per thousand cubic feet from $1.83 in the prior-year quarter.
Total oil equivalent realized prices — including cash settlements — were $24.77 per Boe, down 27.4% year over year.
Other Highlights
Total production expenses for the fourth quarter were $271 million, decreasing 16.4% year over year. The decline in expenses was due to improved cost structure due to lower lease operating expenses resulting from more efficient field-level operations and a decrease in production tax due to reduced commodity prices.
Devon Energy’s legacy estimated proved reserves were 752 million Boe at 2020-end. Drilling programs successfully added 135 million Boe of reserves through extensions and discoveries in 2020.
On Oct 1, Devon completed the sale of Barnett Shale assets and received a cash payment of $320 million at closing.
Financial Highlights
As of Dec 31, 2020, the company had cash and cash equivalents including restricted cash of $2,237 million, up from $1, 8444 million in the corresponding period of 2019. It exited the fourth quarter with $5.6 billion of liquidity and no debt maturities till 2025.
As of Dec 31, 2020, long-term debt amounted to $4,298 million, up marginally from $4,294 million in the comparable period of 2019.
Devon Energy’s net cash from operating activities for fourth-quarter 2020 was $358 million, down 38.1% from the year-ago period.
Guidance
Devon Energy revised its preliminary oil production guidance for 2021 of 280,000 Bbl/d to the range of 280,000-300,000 BBl/d. The company raised its 2021 oil production view, taking into account strong performance from Delaware Basin assets. For 2021, total production is expected in the range of 543,000-580,000 Boe/d.
Capital expenditure for 2021 is expected within $1,720-$1,980 million and upstream capital expenditure for 2021 is projected in the range of $1600-$1,800 million.
Through cost-management initiatives, the company is on course to achieve cost savings of $575 million by 2021-end.
Other Releases
CNX Resources Corporation (CNX - Free Report) reported earnings of 21 cents for the fourth quarter, which surpassed the Zacks Consensus Estimate of 18 cents per share.
Murphy Oil Corporation (MUR - Free Report) reported a loss of 9 cents for the fourth quarter, which was narrower than the Zacks Consensus Estimate of a loss of 10 cents.
Continental Resources reported a loss of 23 cents for the fourth quarter, which was wider than the Zacks Consensus Estimate of a loss of 10 cents.
Zacks Rank
Devon Energy currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Devon Energy Corp. (DVN - Free Report) reported break-even fourth-quarter 2020 adjusted earnings versus the Zacks Consensus Estimate of 5 cents per share. In the year-ago quarter, the company reported earnings of 33 cents per share.
GAAP loss for the fourth quarter was 27 cents compared with a loss of 25 cents per share in the year-ago period.
Revenues
Total revenues of $1,280 million outpaced the Zacks Consensus Estimate by 3.2%. The top line, however, declined 19.4% from the year-ago figure due to fall in commodity prices.
Production
Total net production for fourth-quarter 2020 touched 3333,000 barrels of oil equivalent per day (Boe/d), which was near the higher end of the guided range of 318,000-334,000 Boe/d and was up 2.1% sequentially. Oil production averaged 156,000 barrels per day (Bbl/d), which decreased 4.3% on a year-over-year basis. However, Delaware Basin assets’ performance remained solid and oil production from this region was up 17.9% year over year.
Natural gas liquids production was up 8.1% year over year.
Realized Prices
Realized oil prices for the quarter were $38.01 per barrel, down 33.2% from $56.89 in the year-ago period. Realized prices for natural gas liquids were also down 15.8% to $14.76 per barrel from $17.54 in the prior-year quarter.
Realized gas prices were up 7.1% to $1.96 per thousand cubic feet from $1.83 in the prior-year quarter.
Total oil equivalent realized prices — including cash settlements — were $24.77 per Boe, down 27.4% year over year.
Other Highlights
Total production expenses for the fourth quarter were $271 million, decreasing 16.4% year over year. The decline in expenses was due to improved cost structure due to lower lease operating expenses resulting from more efficient field-level operations and a decrease in production tax due to reduced commodity prices.
Devon Energy’s legacy estimated proved reserves were 752 million Boe at 2020-end. Drilling programs successfully added 135 million Boe of reserves through extensions and discoveries in 2020.
On Oct 1, Devon completed the sale of Barnett Shale assets and received a cash payment of $320 million at closing.
Financial Highlights
As of Dec 31, 2020, the company had cash and cash equivalents including restricted cash of $2,237 million, up from $1, 8444 million in the corresponding period of 2019. It exited the fourth quarter with $5.6 billion of liquidity and no debt maturities till 2025.
As of Dec 31, 2020, long-term debt amounted to $4,298 million, up marginally from $4,294 million in the comparable period of 2019.
Devon Energy’s net cash from operating activities for fourth-quarter 2020 was $358 million, down 38.1% from the year-ago period.
Guidance
Devon Energy revised its preliminary oil production guidance for 2021 of 280,000 Bbl/d to the range of 280,000-300,000 BBl/d. The company raised its 2021 oil production view, taking into account strong performance from Delaware Basin assets. For 2021, total production is expected in the range of 543,000-580,000 Boe/d.
Capital expenditure for 2021 is expected within $1,720-$1,980 million and upstream capital expenditure for 2021 is projected in the range of $1600-$1,800 million.
Through cost-management initiatives, the company is on course to achieve cost savings of $575 million by 2021-end.
Other Releases
CNX Resources Corporation (CNX - Free Report) reported earnings of 21 cents for the fourth quarter, which surpassed the Zacks Consensus Estimate of 18 cents per share.
Murphy Oil Corporation (MUR - Free Report) reported a loss of 9 cents for the fourth quarter, which was narrower than the Zacks Consensus Estimate of a loss of 10 cents.
Continental Resources reported a loss of 23 cents for the fourth quarter, which was wider than the Zacks Consensus Estimate of a loss of 10 cents.
Zacks Rank
Devon Energy currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Imagine getting in early on a young industry primed to skyrocket from $17.7 billion in 2019 to an expected $73.6 billion by 2027.
Although marijuana stocks did better as the pandemic took hold than the market as a whole, they’ve been pushed down. This is exactly the right time to get in on selected strong companies at a fraction of their value before COVID struck. Zacks’ Special Report, Marijuana Moneymakers, reveals 10 exciting tickers for urgent consideration.
Download Marijuana Moneymakers FREE >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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