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Devon Energy (DVN) Q3 Earnings & Revenues Beat Estimates
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Devon Energy Corp. (DVN - Free Report) reported third-quarter 2021 adjusted earnings of $1.08 per share, beating the Zacks Consensus Estimate of 92 cents by 17.4%. In the year-ago quarter, the company incurred a loss of 4 cents per share.
GAAP earnings for the third quarter were $1.24 compared with 38 cents per share in the year-ago period.
Revenues
Total revenues of $3,466 million surpassed the Zacks Consensus Estimate by 8.8%. The top line also improved 43.4% from the year-ago figure.
Devon Energy Corporation Price, Consensus and EPS Surprise
Total net production for third-quarter 2021 touched 608,000 barrels of oil equivalent per day (Boe/d), up 86.5% year over year. Third-quarter production was better than the guided range of 566,000-594,000 Boe/d.
Oil production averaged 303,000 barrels per day (Bbl/d), which increased 107.5% on a year-over-year basis, primarily due to strong contributions from Delaware and Williston Basin assets. Natural gas liquids production was also up 78.3% year over year to 148,000 BBl/d.
Realized Prices
Realized oil prices for the quarter were $57.59 per barrel, up 50.7% from $38.21 in the year-ago period. Realized prices for natural gas liquids were up 155.4% to $30.8 per barrel from $12.06 in the prior-year quarter.
Realized gas prices were up 79.9% to $2.77 per thousand cubic feet from $1.54 in the prior-year quarter.
Total oil equivalent realized prices — including cash settlements — were $40.48 per Boe, up 76.5% year over year.
Other Highlights
Total production expenses for the third quarter were $555 million, increasing 104.8% year over year.
The board of directors authorized a $1-billion share buyback, representing 4% of Devon’s market capitalization. Free cash flow generation was $1.1 billion, an eight-fold increase from the fourth-quarter 2020 level.
Financing costs for the reported quarter were $86 million, up 30.3% from $66 million in the year-ago period.
Financial Highlights
As of Sep 30, 2021, the company had cash and cash equivalents including restricted cash of $2,321 million, up from $2,237 million on Dec 31, 2020. It exited the third quarter with $2.3 billion of liquidity and no debt maturities till 2023.
As of Sep 30, 2021, long-term debt amounted to $6,492 million, up from $4,298 million on Dec 31, 2020.
Devon Energy’s net cash from operating activities for third-quarter 2021 was $1,598 million compared with $427 million in the year-ago period.
Guidance
It expects total production for the fourth quarter in the range of 583,000-601,000 Boe/d. Fourth-quarter expenditure is projected in the range of $465-$535 million.
The company’s 2022 total production is expected in the range of 570,000-600,000 Boe/d and upstream capital investment within $1.9-$2.2 billion.
Zacks Rank
Currently, Devon Energy holds a Zacks Rank #2 (Buy).
CNX Resources Corporation (CNX - Free Report) reported third-quarter 2021 adjusted earnings of 74 cents per share, which surpassed the Zacks Consensus Estimate of 33 cents by 124.4%.
ConocoPhillips (COP - Free Report) reported third-quarter 2021 earnings of $1.77 per share, which surpassed the Zacks Consensus Estimate of $1.53 by 15.7%.
Marathon Petroleum Corporation (MPC - Free Report) reported third-quarter 2021 adjusted earnings of 73 cents, beating the Zacks Consensus Estimate of 72 cents per share by 1.4%.
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Devon Energy (DVN) Q3 Earnings & Revenues Beat Estimates
Devon Energy Corp. (DVN - Free Report) reported third-quarter 2021 adjusted earnings of $1.08 per share, beating the Zacks Consensus Estimate of 92 cents by 17.4%. In the year-ago quarter, the company incurred a loss of 4 cents per share.
GAAP earnings for the third quarter were $1.24 compared with 38 cents per share in the year-ago period.
Revenues
Total revenues of $3,466 million surpassed the Zacks Consensus Estimate by 8.8%. The top line also improved 43.4% 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 third-quarter 2021 touched 608,000 barrels of oil equivalent per day (Boe/d), up 86.5% year over year. Third-quarter production was better than the guided range of 566,000-594,000 Boe/d.
Oil production averaged 303,000 barrels per day (Bbl/d), which increased 107.5% on a year-over-year basis, primarily due to strong contributions from Delaware and Williston Basin assets. Natural gas liquids production was also up 78.3% year over year to 148,000 BBl/d.
Realized Prices
Realized oil prices for the quarter were $57.59 per barrel, up 50.7% from $38.21 in the year-ago period. Realized prices for natural gas liquids were up 155.4% to $30.8 per barrel from $12.06 in the prior-year quarter.
Realized gas prices were up 79.9% to $2.77 per thousand cubic feet from $1.54 in the prior-year quarter.
Total oil equivalent realized prices — including cash settlements — were $40.48 per Boe, up 76.5% year over year.
Other Highlights
Total production expenses for the third quarter were $555 million, increasing 104.8% year over year.
The board of directors authorized a $1-billion share buyback, representing 4% of Devon’s market capitalization. Free cash flow generation was $1.1 billion, an eight-fold increase from the fourth-quarter 2020 level.
Financing costs for the reported quarter were $86 million, up 30.3% from $66 million in the year-ago period.
Financial Highlights
As of Sep 30, 2021, the company had cash and cash equivalents including restricted cash of $2,321 million, up from $2,237 million on Dec 31, 2020. It exited the third quarter with $2.3 billion of liquidity and no debt maturities till 2023.
As of Sep 30, 2021, long-term debt amounted to $6,492 million, up from $4,298 million on Dec 31, 2020.
Devon Energy’s net cash from operating activities for third-quarter 2021 was $1,598 million compared with $427 million in the year-ago period.
Guidance
It expects total production for the fourth quarter in the range of 583,000-601,000 Boe/d. Fourth-quarter expenditure is projected in the range of $465-$535 million.
The company’s 2022 total production is expected in the range of 570,000-600,000 Boe/d and upstream capital investment within $1.9-$2.2 billion.
Zacks Rank
Currently, Devon Energy holds a Zacks Rank #2 (Buy).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Other Releases
CNX Resources Corporation (CNX - Free Report) reported third-quarter 2021 adjusted earnings of 74 cents per share, which surpassed the Zacks Consensus Estimate of 33 cents by 124.4%.
ConocoPhillips (COP - Free Report) reported third-quarter 2021 earnings of $1.77 per share, which surpassed the Zacks Consensus Estimate of $1.53 by 15.7%.
Marathon Petroleum Corporation (MPC - Free Report) reported third-quarter 2021 adjusted earnings of 73 cents, beating the Zacks Consensus Estimate of 72 cents per share by 1.4%.