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Devon Energy (DVN) Q2 Earnings & Revenues Surpass Estimates
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Devon Energy Corp. (DVN - Free Report) reported second-quarter 2021 adjusted earnings of 60 cents, beating the Zacks Consensus Estimate of 53 cents per share by 13.2%. In the year-ago quarter, the company incurred a loss of 18 cents per share.
GAAP earnings for the second quarter were 38 cents compared with 32 cents per share in the year-ago period.
Revenues
Total revenues of $2,417 million surpassed the Zacks Consensus Estimate by 1.5%. The top line also improved 17.9% from the year-ago figure.
Devon Energy Corporation Price, Consensus and EPS Surprise
Total net production for second-quarter 2021 touched 567,000 barrels of oil equivalent per day (Boe/d), up 74.5% year over year. Oil production averaged 291,000 barrels per day (Bbl/d), which increased 90.2% on a year-over-year basis, primarily due to strong contribution from Delaware and Williston Basin assets. Natural gas liquids production was also up 86.9% year over year.
Realized Prices
Realized oil prices for the quarter were $50.34 per barrel, up 37.9% from $36.5 in the year-ago period. Realized prices for natural gas liquids were up 151.5% to $23.64 per barrel from $9.4 in the prior-year quarter.
Realized gas prices were up 40.1% to $2.2 per thousand cubic feet from $1.57 in the prior-year quarter.
Total oil equivalent realized prices — including cash settlements — were $34.64 per Boe, up 56% year over year.
Other Highlights
Total production expenses for the second quarter were $513 million, increasing 95% year over year. With capital programs focused on developing higher-margin production opportunities, oil and natural gas liquid volumes accounted for 74% of Devon Energy’s product mix for the quarter.
Financing costs for the reported quarter were $80 million, up from $69 million in the year-ago period.
Financial Highlights
As of Jun 30, 2021, the company had cash and cash equivalents including restricted cash of $1,539 million, up from $2,237 million on Dec 31, 2020. It exited the second quarter with $4.5 billion of liquidity and no debt maturities till 2023.
As of Jun 30, 2021, long-term debt amounted to $6,502 million, up from $4,298 million on Dec 31, 2020.
Devon Energy’s net cash from operating activities for second-quarter 2021 was $1,093 million compared with $150 million in the year-ago period.
Guidance
It expects total production for the third quarter in the range of 566,000-594,000 Boe/d.
Devon Energy’s oil production guidance for 2021 is projected in the range of 280,000-290,000 BBl/d. For 2021, total production is expected in the range of 539,000-569,000 Boe/d.
Capital expenditure for 2021 is expected within $1,720-$1,980 million, including upstream expenditure in the range of $1,600-$1,800 million. Third-quarter expenditure is projected in the range of $420-$490 million.
Zacks Rank
Currently, Devon Energy sports a Zacks Rank #1 (Strong Buy).
Occidental Petroleum Corporation (OXY - Free Report) reported second-quarter 2021 earnings of 32 cents per share versus the Zacks Consensus Estimate of a breakeven.
CNX Resources Corporation (CNX - Free Report) reported second-quarter 2021 adjusted earnings of 18 cents per share, which lagged the Zacks Consensus Estimate of 25 cents by 28%.
Continental Resources reported second-quarter 2021 adjusted earnings of 91 cents, beating the Zacks Consensus Estimate of 57 cents per share by 59.6%.
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Devon Energy (DVN) Q2 Earnings & Revenues Surpass Estimates
Devon Energy Corp. (DVN - Free Report) reported second-quarter 2021 adjusted earnings of 60 cents, beating the Zacks Consensus Estimate of 53 cents per share by 13.2%. In the year-ago quarter, the company incurred a loss of 18 cents per share.
GAAP earnings for the second quarter were 38 cents compared with 32 cents per share in the year-ago period.
Revenues
Total revenues of $2,417 million surpassed the Zacks Consensus Estimate by 1.5%. The top line also improved 17.9% from the year-ago figure.
Devon Energy Corporation Price, Consensus and EPS Surprise
Devon Energy Corporation price-consensus-eps-surprise-chart | Devon Energy Corporation Quote
Production
Total net production for second-quarter 2021 touched 567,000 barrels of oil equivalent per day (Boe/d), up 74.5% year over year. Oil production averaged 291,000 barrels per day (Bbl/d), which increased 90.2% on a year-over-year basis, primarily due to strong contribution from Delaware and Williston Basin assets. Natural gas liquids production was also up 86.9% year over year.
Realized Prices
Realized oil prices for the quarter were $50.34 per barrel, up 37.9% from $36.5 in the year-ago period. Realized prices for natural gas liquids were up 151.5% to $23.64 per barrel from $9.4 in the prior-year quarter.
Realized gas prices were up 40.1% to $2.2 per thousand cubic feet from $1.57 in the prior-year quarter.
Total oil equivalent realized prices — including cash settlements — were $34.64 per Boe, up 56% year over year.
Other Highlights
Total production expenses for the second quarter were $513 million, increasing 95% year over year. With capital programs focused on developing higher-margin production opportunities, oil and natural gas liquid volumes accounted for 74% of Devon Energy’s product mix for the quarter.
Financing costs for the reported quarter were $80 million, up from $69 million in the year-ago period.
Financial Highlights
As of Jun 30, 2021, the company had cash and cash equivalents including restricted cash of $1,539 million, up from $2,237 million on Dec 31, 2020. It exited the second quarter with $4.5 billion of liquidity and no debt maturities till 2023.
As of Jun 30, 2021, long-term debt amounted to $6,502 million, up from $4,298 million on Dec 31, 2020.
Devon Energy’s net cash from operating activities for second-quarter 2021 was $1,093 million compared with $150 million in the year-ago period.
Guidance
It expects total production for the third quarter in the range of 566,000-594,000 Boe/d.
Devon Energy’s oil production guidance for 2021 is projected in the range of 280,000-290,000 BBl/d. For 2021, total production is expected in the range of 539,000-569,000 Boe/d.
Capital expenditure for 2021 is expected within $1,720-$1,980 million, including upstream expenditure in the range of $1,600-$1,800 million. Third-quarter expenditure is projected in the range of $420-$490 million.
Zacks Rank
Currently, Devon Energy sports a Zacks Rank #1 (Strong Buy).
You can see the complete list of today’s Zacks #1 Rank stocks here.
Other Releases
Occidental Petroleum Corporation (OXY - Free Report) reported second-quarter 2021 earnings of 32 cents per share versus the Zacks Consensus Estimate of a breakeven.
CNX Resources Corporation (CNX - Free Report) reported second-quarter 2021 adjusted earnings of 18 cents per share, which lagged the Zacks Consensus Estimate of 25 cents by 28%.
Continental Resources reported second-quarter 2021 adjusted earnings of 91 cents, beating the Zacks Consensus Estimate of 57 cents per share by 59.6%.