Back to top

Image: Bigstock

What to Expect From Devon Energy's (DVN) Q4 Earnings

Read MoreHide Full Article

Devon Energy Corporation (DVN - Free Report) is set to report fourth-quarter earnings on Feb 15, after market close. This oil and gas company delivered an earnings surprise of 17.4% in the last reported quarter.

Let’s discuss the factors that are likely to get reflected in the upcoming quarterly results.

Factors at Play

Strong oil production from the high-margin Delaware Basin region is expected to have boosted fourth-quarter oil production. Improvement in commodity prices is likely to have boosted fourth-quarter performance.

Efficient management of debt and the reduction of $1.2 billion debt in the first nine months of 2021 are likely to have lowered capital service expenses in the fourth quarter. Efficient cost management is also expected to have aided earnings in the quarter.

Expectations

The Zacks Consensus Estimate for fourth-quarter oil production is pegged at 296,000 barrels of oil equivalent per day (Boe/d), which indicates 89.8% growth from the year-ago reported figure. Devon Energy expects oil production for the fourth quarter in the range of 293,000-298,000 Boe/d.

Devon Energy expects total production for the fourth quarter in the range of 583,000-601,000 Boe/d.

The Zacks Consensus Estimate for fourth-quarter earnings is pegged at $1.21 per share. DVN reported break-even earnings in the prior-year period.

What Our Quantitative Model Predicts

Our proven model predicts an earnings beat for Devon Energy this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That is the case as you see below

Devon Energy Corporation Price and EPS Surprise

Devon Energy Corporation Price and EPS Surprise

Devon Energy Corporation price-eps-surprise | Devon Energy Corporation Quote

Earnings ESP: Devon Energy has an Earnings ESP of +0.64%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Devon Energy currently sports a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Other Stocks to Consider

Investors can also consider the following players from the same industry that too have the right combination of elements to beat on earnings this reporting cycle.

Viper Energy Partner LP (VNOM - Free Report) is scheduled to release fourth-quarter 2021 numbers on Feb 22. VNOM has an Earnings ESP of +14.92% and is currently a #3 Ranked stock.

Viper Energy delivered an average surprise of 103.1% in the last four quarters. The Zacks Consensus Estimate for 2022 earnings of Viper Energy Partner implies year-over-year growth of 42.8%.

Coterra Energy Inc. (CTRA - Free Report) is scheduled to release fourth-quarter 2021 numbers on Feb 23. CTRA has an Earnings ESP of +1.21% and is currently a #3 Ranked stock.

Coterra Energy delivered an average surprise of 8.3% in the last four quarters. The Zacks Consensus Estimate for 2022 earnings of Coterra Energy has moved 2.5% upward in the past seven days to $3.30.

Diamondback Energy Inc. (FANG - Free Report) is scheduled to release fourth-quarter 2021 numbers on Feb 23. FANG has an Earnings ESP of +0.37% and is currently a #3 Ranked stock.

Diamondback Energy delivered an average surprise of 11.7% in the last four quarters. The Zacks Consensus Estimate for 2022 earnings of Diamondback Energy implies year-over-year growth of 68%.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

Published in