Devon Energy Corp. (DVN - Free Report) reported fourth-quarter 2023 earnings per share (EPS) of $1.41, outpacing the Zacks Consensus Estimate of $1.39 by 1.4%. The bottom line, however, declined 15.1% year over year.
In 2023, EPS was $5.71, declining 31.3% from $8.31 in 2022.
Revenues
Total revenues for the quarter were $4.1 billion, which surpassed the Zacks Consensus Estimate of $3.87 billion by 5.9%.
However, the top line decreased by 3.6% from the year-ago quarter’s figure. Despite year-over-year improvements in production volumes, softness in commodity prices impacted the top line.
Total revenues in 2023 were $15.3 billion compared with $19.2 billion in 2022.
Production
Net production for the fourth- quarter totaled 662,000 barrels of oil equivalent per day (Boe/d), up 4.1% year over year. Actual production volume exceeded the upper end of the guided range of 640,000-660,000 Boe/d. Strong performance from Delaware Basin boosted year-over-year production volumes.
Natural gas liquids production increased 14.2% year over year to 169,000 barrels per day (Bbl/d). Oil production amounted to 317,000 Bbl/d, up 0.3% on a year-over-year basis, primarily due to higher oil production at Delaware Basin.
Realized Prices
Realized oil prices (including cash settlements) for the quarter were $76.98 per barrel, down 0.6% from $77.44 in a year ago. Realized prices for natural gas liquids were $19.67 per barrel, down 19.1% from $24.32 in the prior year.
Realized gas prices were $2.02 per thousand cubic feet, reflecting a 49.6% decline from $4.01 a year ago.
Total oil equivalent realized prices, including cash settlements, were $45.07 per barrel of oil equivalent, down nearly 11% year over year.
Other Highlights
Total production expenses in fourth-quarter 2023 were $759 million, up 6.2% year over year.
Devon Energy has repurchased 5.2 million shares at a total cost of $234 million in fourth-quarter 2023 from its $3 billion share-repurchase program. The company is on course to reduce its outstanding shares by 9%.
Production costs, including taxes, averaged $12.46 per barrels of oil equivalent (Boe) in the quarter. This low-cost structure coupled with the benefits of high-margin production resulted in field-level cash margins of $32.47 per Boe in the reported-quarter.
Management increased fixed dividend by 10% to 22 cents per share, making fixed-plus-variable dividend to 44 cents. This resulted in annualized dividend of $1.76.
Financial Highlights
As of Dec 31, 2023, the company had cash and cash equivalents (including restricted cash) of $0.87 billion compared with $1.45 billion as of Dec 31, 2022. Total liquidity as of Dec 31, 2023, was $3.9 billion, including cash and credit facility.
As of Dec 31, 2023, long-term debt amounted to $5.7 billion, down from $6.2 million as of Dec 31, 2022.
Devon Energy’s net cash from operating activities was $1.73 billion in the fourth quarter compared with $1.91 billion a year ago. Capital expenditures, excluding acquisitions, totaled $910 million, marking a 13.2% increase from the previous quarter.
Guidance
In January, severe winter weather led to unplanned power outages and production disruptions across the company’s portfolio. These weather-related curtailments are estimated to reduce first-quarter production by 2%. Due to these curtailments, Devon Energy expects first-quarter production to be approximately 640,000 Boe per day (48% oil).
The company expects total production volumes in 2024 in the range of 640,000-660,000 Boe/d. Capital expenditure is projected in the band of $3.3-$3.6 billion for 2024.
Zacks Rank
Devon Energy currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Releases
TotalEnergies SE (TTE - Free Report) reported fourth-quarter 2023 operating earnings of $2.16 (€2.02) per share, lagging the Zacks Consensus Estimate of $2.35 by 8.1%. The bottom line declined 27% from the year-ago figure of $2.97 (€2.93). The year-over-year decline was due to a correction in commodity prices.
TTE’s long-term (three-to-five years) earnings growth rate is currently pinned at 4.45%. The Zacks Consensus Estimate for 2024 EPS is pegged at $9.28, indicating an increase of 3.6% in the last 30 days.
Occidental Petroleum Corporation (OXY - Free Report) reported fourth-quarter 2023 earnings of 74 cents per share, which was on par with the Zacks Consensus Estimate. In the year-ago quarter, the company recorded earnings of $1.61.
OXY’s long-term (three-to-five years) earnings growth rate is currently pinned at 8.56%. The Zacks Consensus Estimate for 2024 EPS is pegged at $3.88, indicating a decline of 9.3% in the last 30 days.
Halliburton Company (HAL - Free Report) reported fourth-quarter 2023 adjusted net income per share of 86 cents, surpassing the Zacks Consensus Estimate of 80 cents and well above the year-ago figure of 72 cents. The outperformance reflects strength in the international markets, partly offset by weak performance in the North America region.
HAL’s long-term (three-to-five years) earnings growth rate is currently pinned at 11.68%. The Zacks Consensus Estimate for 2024 EPS is pegged at $3.43, remained same over the last 30 days.
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Devon Energy Corp. (DVN - Free Report) reported fourth-quarter 2023 earnings per share (EPS) of $1.41, outpacing the Zacks Consensus Estimate of $1.39 by 1.4%. The bottom line, however, declined 15.1% year over year.
In 2023, EPS was $5.71, declining 31.3% from $8.31 in 2022.
Revenues
Total revenues for the quarter were $4.1 billion, which surpassed the Zacks Consensus Estimate of $3.87 billion by 5.9%.
However, the top line decreased by 3.6% from the year-ago quarter’s figure. Despite year-over-year improvements in production volumes, softness in commodity prices impacted the top line.
Total revenues in 2023 were $15.3 billion compared with $19.2 billion in 2022.
Production
Net production for the fourth- quarter totaled 662,000 barrels of oil equivalent per day (Boe/d), up 4.1% year over year. Actual production volume exceeded the upper end of the guided range of 640,000-660,000 Boe/d. Strong performance from Delaware Basin boosted year-over-year production volumes.
Natural gas liquids production increased 14.2% year over year to 169,000 barrels per day (Bbl/d). Oil production amounted to 317,000 Bbl/d, up 0.3% on a year-over-year basis, primarily due to higher oil production at Delaware Basin.
Realized Prices
Realized oil prices (including cash settlements) for the quarter were $76.98 per barrel, down 0.6% from $77.44 in a year ago. Realized prices for natural gas liquids were $19.67 per barrel, down 19.1% from $24.32 in the prior year.
Realized gas prices were $2.02 per thousand cubic feet, reflecting a 49.6% decline from $4.01 a year ago.
Total oil equivalent realized prices, including cash settlements, were $45.07 per barrel of oil equivalent, down nearly 11% year over year.
Other Highlights
Total production expenses in fourth-quarter 2023 were $759 million, up 6.2% year over year.
Devon Energy has repurchased 5.2 million shares at a total cost of $234 million in fourth-quarter 2023 from its $3 billion share-repurchase program. The company is on course to reduce its outstanding shares by 9%.
Production costs, including taxes, averaged $12.46 per barrels of oil equivalent (Boe) in the quarter. This low-cost structure coupled with the benefits of high-margin production resulted in field-level cash margins of $32.47 per Boe in the reported-quarter.
Management increased fixed dividend by 10% to 22 cents per share, making fixed-plus-variable dividend to 44 cents. This resulted in annualized dividend of $1.76.
Financial Highlights
As of Dec 31, 2023, the company had cash and cash equivalents (including restricted cash) of $0.87 billion compared with $1.45 billion as of Dec 31, 2022. Total liquidity as of Dec 31, 2023, was $3.9 billion, including cash and credit facility.
As of Dec 31, 2023, long-term debt amounted to $5.7 billion, down from $6.2 million as of Dec 31, 2022.
Devon Energy’s net cash from operating activities was $1.73 billion in the fourth quarter compared with $1.91 billion a year ago. Capital expenditures, excluding acquisitions, totaled $910 million, marking a 13.2% increase from the previous quarter.
Guidance
In January, severe winter weather led to unplanned power outages and production disruptions across the company’s portfolio. These weather-related curtailments are estimated to reduce first-quarter production by 2%. Due to these curtailments, Devon Energy expects first-quarter production to be approximately 640,000 Boe per day (48% oil).
The company expects total production volumes in 2024 in the range of 640,000-660,000 Boe/d. Capital expenditure is projected in the band of $3.3-$3.6 billion for 2024.
Zacks Rank
Devon Energy currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Releases
TotalEnergies SE (TTE - Free Report) reported fourth-quarter 2023 operating earnings of $2.16 (€2.02) per share, lagging the Zacks Consensus Estimate of $2.35 by 8.1%. The bottom line declined 27% from the year-ago figure of $2.97 (€2.93). The year-over-year decline was due to a correction in commodity prices.
TTE’s long-term (three-to-five years) earnings growth rate is currently pinned at 4.45%. The Zacks Consensus Estimate for 2024 EPS is pegged at $9.28, indicating an increase of 3.6% in the last 30 days.
Occidental Petroleum Corporation (OXY - Free Report) reported fourth-quarter 2023 earnings of 74 cents per share, which was on par with the Zacks Consensus Estimate. In the year-ago quarter, the company recorded earnings of $1.61.
OXY’s long-term (three-to-five years) earnings growth rate is currently pinned at 8.56%. The Zacks Consensus Estimate for 2024 EPS is pegged at $3.88, indicating a decline of 9.3% in the last 30 days.
Halliburton Company (HAL - Free Report) reported fourth-quarter 2023 adjusted net income per share of 86 cents, surpassing the Zacks Consensus Estimate of 80 cents and well above the year-ago figure of 72 cents. The outperformance reflects strength in the international markets, partly offset by weak performance in the North America region.
HAL’s long-term (three-to-five years) earnings growth rate is currently pinned at 11.68%. The Zacks Consensus Estimate for 2024 EPS is pegged at $3.43, remained same over the last 30 days.
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With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.
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