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Devon Energy (DVN) Q1 Earnings Top Estimates, Revenues Lag
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Devon Energy Corp. (DVN - Free Report) reported first-quarter 2023 earnings of $1.46 per share, which outpaced Zacks Consensus Estimate of $1.39 by 5.04%. The bottom line, however, declined 22.3% from the year-ago quarter’s $1.88.
Revenues
Total revenues for the quarter totaled $3,823 million, which missed the Zacks Consensus Estimate of $3,927 million by 2.65%. The top line improved 0.3% from the year-ago quarter’s figure.
Devon Energy Corporation Price, Consensus and EPS Surprise
Net production for the reported quarter totaled 641,000 barrels of oil equivalent per day (Boe/d), up 11.5% year over year.
Natural gas liquids production increased 9.6% year over year to 149,000 barrels per day (Bbl/d). Oil production amounted to 320,000 Bbl/d, up 11.1% on a year-over-year basis, primarily due to higher oil production in Eagle Ford.
Realized Prices
Realized oil prices for the quarter were $74.22 per barrel, down 9.1% from $81.62 in the year-ago period. Realized prices for natural gas liquids were $24.12 per barrel, down 36.1% from $37.76 in the prior-year quarter.
Realized gas prices were $2.47 per thousand cubic feet, indicating a 21.6% deterioration from $3.15 a year ago.
Total oil equivalent realized prices, including cash settlements, were $46.66 per barrel of oil equivalent, down 14.8% year over year.
Other Highlights
Total production expenses were $693 million, up 12.1% from that recorded in the corresponding period of 2022.
Devon Energy increased share repurchase authorization to $3 billion. The company had repurchased shares worth $692 million in the year-to-date period. The new share repurchase program represents 9% of outstanding shares.
DVN’s free cash flow for the quarter totaled nearly $665 million. Financing costs amounted to $72 million, down 15.3% from $85 million in the year-ago period.
Financial Highlights
As of Mar 31, 2023, the company had cash and cash equivalents (including restricted cash) of $887 million compared with $1,454 million as of Dec 31, 2022. Total liquidity as of Mar 31, 2023, was $3.9 billion, which included cash and credit facility.
As of the same date, long-term debt amounted to $6,175 million, down from $6,189 million as of Dec 31, 2022.
Devon Energy’s net cash from operating activities was $1,677 million compared with $1,837 million in the year-ago period. Capital expenditure totaled $1,012 million compared with $537 million in the corresponding period of 2022.
Guidance
The company expects total production of 643,000-664,000 Boe/d in the second quarter of 2023. The same is anticipated in the range of 643,000-663,000 Boe/d for the entire year.
Capital expenditure is projected in the band of $965-$1,045 million and $3,600-$3,800 million for second-quarter and full-year 2023, respectively.
ONEOK Inc. (OKE - Free Report) reported first-quarter 2023 operating earnings per share (EPS) of $2.34, which beat the Zacks Consensus Estimate of $2.07 by 13.04%.
OKE’s long-term (three to five years) earnings growth rate is currently pinned at 7.14%. The consensus estimate for 2023 EPS stands at $5.43, indicating a year-over-year increase of 41.4%.
Evergy, Inc. (EVRG - Free Report) reported first-quarter 2023 operating earnings of 59 cents per share, which outdid the Zacks Consensus Estimate of 56 cents by 5.4%.
EVRG’s long-term earnings growth rate is currently pegged at 5.2%. The consensus estimate for 2023 EPS stands at $3.61.
Plains All American Pipeline, L.P. (PAA - Free Report) reported first-quarter 2023 adjusted earnings of 41 cents per unit, which beat the Zacks Consensus Estimate of 36 cents by 13.9%.
The consensus mark for 2023 earnings stands at $1.2 per unit. It delivered an average earnings surprise of 11.5% in the last four quarters.
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Devon Energy (DVN) Q1 Earnings Top Estimates, Revenues Lag
Devon Energy Corp. (DVN - Free Report) reported first-quarter 2023 earnings of $1.46 per share, which outpaced Zacks Consensus Estimate of $1.39 by 5.04%. The bottom line, however, declined 22.3% from the year-ago quarter’s $1.88.
Revenues
Total revenues for the quarter totaled $3,823 million, which missed the Zacks Consensus Estimate of $3,927 million by 2.65%. The top line improved 0.3% from the year-ago quarter’s figure.
Devon Energy Corporation Price, Consensus and EPS Surprise
Devon Energy Corporation price-consensus-eps-surprise-chart | Devon Energy Corporation Quote
Production
Net production for the reported quarter totaled 641,000 barrels of oil equivalent per day (Boe/d), up 11.5% year over year.
Natural gas liquids production increased 9.6% year over year to 149,000 barrels per day (Bbl/d). Oil production amounted to 320,000 Bbl/d, up 11.1% on a year-over-year basis, primarily due to higher oil production in Eagle Ford.
Realized Prices
Realized oil prices for the quarter were $74.22 per barrel, down 9.1% from $81.62 in the year-ago period. Realized prices for natural gas liquids were $24.12 per barrel, down 36.1% from $37.76 in the prior-year quarter.
Realized gas prices were $2.47 per thousand cubic feet, indicating a 21.6% deterioration from $3.15 a year ago.
Total oil equivalent realized prices, including cash settlements, were $46.66 per barrel of oil equivalent, down 14.8% year over year.
Other Highlights
Total production expenses were $693 million, up 12.1% from that recorded in the corresponding period of 2022.
Devon Energy increased share repurchase authorization to $3 billion. The company had repurchased shares worth $692 million in the year-to-date period. The new share repurchase program represents 9% of outstanding shares.
DVN’s free cash flow for the quarter totaled nearly $665 million. Financing costs amounted to $72 million, down 15.3% from $85 million in the year-ago period.
Financial Highlights
As of Mar 31, 2023, the company had cash and cash equivalents (including restricted cash) of $887 million compared with $1,454 million as of Dec 31, 2022. Total liquidity as of Mar 31, 2023, was $3.9 billion, which included cash and credit facility.
As of the same date, long-term debt amounted to $6,175 million, down from $6,189 million as of Dec 31, 2022.
Devon Energy’s net cash from operating activities was $1,677 million compared with $1,837 million in the year-ago period. Capital expenditure totaled $1,012 million compared with $537 million in the corresponding period of 2022.
Guidance
The company expects total production of 643,000-664,000 Boe/d in the second quarter of 2023. The same is anticipated in the range of 643,000-663,000 Boe/d for the entire year.
Capital expenditure is projected in the band of $965-$1,045 million and $3,600-$3,800 million for second-quarter and full-year 2023, respectively.
Zacks Rank
Devon Energy currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Releases
ONEOK Inc. (OKE - Free Report) reported first-quarter 2023 operating earnings per share (EPS) of $2.34, which beat the Zacks Consensus Estimate of $2.07 by 13.04%.
OKE’s long-term (three to five years) earnings growth rate is currently pinned at 7.14%. The consensus estimate for 2023 EPS stands at $5.43, indicating a year-over-year increase of 41.4%.
Evergy, Inc. (EVRG - Free Report) reported first-quarter 2023 operating earnings of 59 cents per share, which outdid the Zacks Consensus Estimate of 56 cents by 5.4%.
EVRG’s long-term earnings growth rate is currently pegged at 5.2%. The consensus estimate for 2023 EPS stands at $3.61.
Plains All American Pipeline, L.P. (PAA - Free Report) reported first-quarter 2023 adjusted earnings of 41 cents per unit, which beat the Zacks Consensus Estimate of 36 cents by 13.9%.
The consensus mark for 2023 earnings stands at $1.2 per unit. It delivered an average earnings surprise of 11.5% in the last four quarters.