Back to top

Image: Bigstock

Devon Energy (DVN) to Report Q2 Earnings: What's in Store?

Read MoreHide Full Article

Devon Energy Corporation (DVN - Free Report) is set to report second-quarter earnings on Aug 1, after market close. This oil and gas company delivered an earnings surprise of 8.05% in the last reported quarter.

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

Factors at Play

Devon Energy’s multi-basin, high-quality assets ensure strong production volumes. The recovery in commodity prices is also likely to have enhanced second-quarter performance. Strong oil production from the high-margin Delaware Basin region is expected to have boosted second quarter oil production

A high percentage of Devon’s second-quarter production volumes, nearly 74%, are expected to have been liquids. To safeguard against the sudden fluctuation in commodity prices, Devon has hedged 20% of its production volume, which will safeguard it against price fluctuation.

Expectations

The Zacks Consensus Estimate for second quarter oil production is pegged at 294,000 barrels of oil equivalent per day (Boe/d), which indicates 1.1% growth from the year-ago reported figure. Devon Energy expects oil production for the second quarter in the range of 289,000-296,000 Boe/d.

The Zacks Consensus Estimate for second quarter natural gas liquid (NGL) production is pegged at 147,000 boe/d, which indicates 13.9% growth from the year-ago reported figure. Devon Energy expects NGL production for the second quarter in the range of 146,000-151,000 Boe/d.

Devon Energy expects total production for the second quarter in the range of 585,000-604,000 Boe/d.

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 +1.16%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Devon Energy currently carries a Zacks Rank #2. 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 also have the right combination of elements to beat on earnings this reporting cycle.

Coterra Energy Inc. (CTRA - Free Report) is scheduled to release second-quarter 2022 numbers on Aug 2. CTRA has an Earnings ESP of +9.16% and currently a Zacks Rank of 3.

Coterra Energy delivered an average surprise of 0.3% in the last four quarters. The Zacks Consensus Estimate for 2022 earnings of Coterra Energy implies year-over-year growth of 97.8%.

Denbury Inc. is scheduled to release second-quarter 2022 numbers on Aug 4. DEN has an Earnings ESP of +4.13% and a Zacks Rank of 2.

Denbury delivered an average surprise of 17.6% in the last four quarters. The Zacks Consensus Estimate for 2022 earnings of Denbury implies year-over-year growth of 196.5%.

EQT Corporation (EQT - Free Report) is scheduled to release second-quarter 2022 numbers on July 27. EQT has an Earnings ESP of +3.22% and currently has a Zacks Rank of 2.

EQT delivered an average surprise of 93.3% in the last four quarters. The Zacks Consensus Estimate for 2022 earnings of EQT Corporation implies year-over-year growth of 288%.

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


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Devon Energy Corporation (DVN) - free report >>

EQT Corporation (EQT) - free report >>

Coterra Energy Inc. (CTRA) - free report >>

Published in