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Devon Energy (DVN) Q2 Earnings Beat Estimates, Revenues Miss
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Devon Energy Corp. (DVN - Free Report) reported second-quarter 2023 earnings of $1.18 per share, which outpaced the Zacks Consensus Estimate of $1.17 by 0.8%. The bottom line, however, declined 54.4% from the year-ago quarter’s earnings of $2.59 per share.
Revenues
Total revenues for the quarter totaled $3,454 million, which missed the Zacks Consensus Estimate of $3,805 million by 9.2%. The top line also decreased by 38.6% from the year-ago quarter’s figure. Despite year-over-year improvement in production volumes, softness in commodity prices impacted the top line.
Devon Energy Corporation Price, Consensus and EPS Surprise
Net production for the reported quarter totaled 662,000 barrels of oil equivalent per day (Boe/d), up 7.5% year over year. Actual production volume came in toward the upper end of the guidance range of 643,000-664,000 Boe/d. Strong performance from Eagle Ford, Anadarko Basin and Williston Basin boosted year-over-year production volumes.
Natural gas liquids production increased 5.1% year over year to 164,000 barrels per day (Bbl/d). Oil production amounted to 323,000 Bbl/d, up 7.7% on a year-over-year basis, primarily due to higher oil production in Eagle Ford.
Realized Prices
Realized oil prices for the quarter were $71.74 per barrel, down 25.1% from $95.80 in the year-ago period. Realized prices for natural gas liquids were $17.79 per barrel, down 55.8% from $40.28 in the prior-year quarter.
Realized gas prices were $1.66 per thousand cubic feet, indicating a 67.2% deterioration from $5.06 a year ago.
Total oil equivalent realized prices, including cash settlements, were $42 per barrel of oil equivalent, down 35.1% year over year.
Other Highlights
Total production expenses were $719 million, up 1.4% from that recorded in the corresponding period of 2022.
In the second quarter, Devon repurchased 3.8 million shares at a total cost of $200 million. Since the inception of the share repurchase program in late 2021, the company has repurchased 39.6 million shares at a total cost of $2.1 billion.
DVN’s free cash flow for the quarter totaled nearly $326 million. Financing costs amounted to $78 million, down 7.1% from $84 million in the year-ago period.
Financial Highlights
As of Jun 30, 2023, the company had cash and cash equivalents (including restricted cash) of $488 million compared with $1,454 million as of Dec 31, 2022. Total liquidity as of Jun 30, 2023, was $3.95 billion, including cash and credit facility.
As of the same date, long-term debt amounted to $6,169 million, down from $6,189 million as of Dec 31, 2022.
Devon Energy’s net cash from operating activities was $1,405 million in the second quarter compared with $2,678 million in the year-ago period. Capital expenditures totaled $1,079 million compared with $573 million in the corresponding period of 2022.
Guidance
The company expects total production of 658,000-680,000 Boe/d in the third quarter of 2023. Devon expects its third-quarter oil production volume in the range of 322,000-330,000 Boe/d. Our model currently projects oil volume of 322,300 Boe/d for the third quarter.
The production volume is anticipated in the range of 643,000-663,000 Boe/d for the entire year. Our model projects total production of 652,400 Boe/d, with 420,400 Boe/d expected from Delaware Basin.
Capital expenditure is projected in the band of $855-$925 million and $3,600-$3,800 million for third-quarter and full-year 2023, respectively. Our model projects capital expenditures of $869.5 million and $3,723.3 million for third-quarter and full-year 2023, respectively.
TotalEnergies SE (TTE - Free Report) reported second-quarter 2023 operating earnings of $1.99 (€1.84) per share, lagging the Zacks Consensus Estimate of $2.21 by 9.6%.
TTE’s long-term (three- to five-year) earnings growth rate is currently pinned at 9.3%. The Zacks Consensus Estimate for 2023 EPS stands at $9.91, indicating a year-over-year decline of 28.9%.
Schlumberger Limited (SLB - Free Report) announced second-quarter 2023 earnings of 72 cents per share (excluding charges and credits), which beat the Zacks Consensus Estimate by a penny.
SLB’s long-term earnings growth rate is currently pinned at 26.6%. The Zacks Consensus Estimate for 2023 EPS stands at $2.99, indicating a year-over-year improvement of 37.2%.
Halliburton (HAL - Free Report) reported second-quarter 2023 adjusted net income per share of 77 cents, surpassing the Zacks Consensus Estimate of 75 cents.
HAL’s long-term earnings growth rate is currently pinned at 19.8%. The Zacks Consensus Estimate for 2023 EPS stands at $3.04, indicating a year-over-year improvement of 41.4%.
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Devon Energy (DVN) Q2 Earnings Beat Estimates, Revenues Miss
Devon Energy Corp. (DVN - Free Report) reported second-quarter 2023 earnings of $1.18 per share, which outpaced the Zacks Consensus Estimate of $1.17 by 0.8%. The bottom line, however, declined 54.4% from the year-ago quarter’s earnings of $2.59 per share.
Revenues
Total revenues for the quarter totaled $3,454 million, which missed the Zacks Consensus Estimate of $3,805 million by 9.2%. The top line also decreased by 38.6% from the year-ago quarter’s figure. Despite year-over-year improvement in production volumes, softness in commodity prices impacted the top line.
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 662,000 barrels of oil equivalent per day (Boe/d), up 7.5% year over year. Actual production volume came in toward the upper end of the guidance range of 643,000-664,000 Boe/d. Strong performance from Eagle Ford, Anadarko Basin and Williston Basin boosted year-over-year production volumes.
Natural gas liquids production increased 5.1% year over year to 164,000 barrels per day (Bbl/d). Oil production amounted to 323,000 Bbl/d, up 7.7% on a year-over-year basis, primarily due to higher oil production in Eagle Ford.
Realized Prices
Realized oil prices for the quarter were $71.74 per barrel, down 25.1% from $95.80 in the year-ago period. Realized prices for natural gas liquids were $17.79 per barrel, down 55.8% from $40.28 in the prior-year quarter.
Realized gas prices were $1.66 per thousand cubic feet, indicating a 67.2% deterioration from $5.06 a year ago.
Total oil equivalent realized prices, including cash settlements, were $42 per barrel of oil equivalent, down 35.1% year over year.
Other Highlights
Total production expenses were $719 million, up 1.4% from that recorded in the corresponding period of 2022.
In the second quarter, Devon repurchased 3.8 million shares at a total cost of $200 million. Since the inception of the share repurchase program in late 2021, the company has repurchased 39.6 million shares at a total cost of $2.1 billion.
DVN’s free cash flow for the quarter totaled nearly $326 million. Financing costs amounted to $78 million, down 7.1% from $84 million in the year-ago period.
Financial Highlights
As of Jun 30, 2023, the company had cash and cash equivalents (including restricted cash) of $488 million compared with $1,454 million as of Dec 31, 2022. Total liquidity as of Jun 30, 2023, was $3.95 billion, including cash and credit facility.
As of the same date, long-term debt amounted to $6,169 million, down from $6,189 million as of Dec 31, 2022.
Devon Energy’s net cash from operating activities was $1,405 million in the second quarter compared with $2,678 million in the year-ago period. Capital expenditures totaled $1,079 million compared with $573 million in the corresponding period of 2022.
Guidance
The company expects total production of 658,000-680,000 Boe/d in the third quarter of 2023. Devon expects its third-quarter oil production volume in the range of 322,000-330,000 Boe/d. Our model currently projects oil volume of 322,300 Boe/d for the third quarter.
The production volume is anticipated in the range of 643,000-663,000 Boe/d for the entire year. Our model projects total production of 652,400 Boe/d, with 420,400 Boe/d expected from Delaware Basin.
Capital expenditure is projected in the band of $855-$925 million and $3,600-$3,800 million for third-quarter and full-year 2023, respectively. Our model projects capital expenditures of $869.5 million and $3,723.3 million for third-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
TotalEnergies SE (TTE - Free Report) reported second-quarter 2023 operating earnings of $1.99 (€1.84) per share, lagging the Zacks Consensus Estimate of $2.21 by 9.6%.
TTE’s long-term (three- to five-year) earnings growth rate is currently pinned at 9.3%. The Zacks Consensus Estimate for 2023 EPS stands at $9.91, indicating a year-over-year decline of 28.9%.
Schlumberger Limited (SLB - Free Report) announced second-quarter 2023 earnings of 72 cents per share (excluding charges and credits), which beat the Zacks Consensus Estimate by a penny.
SLB’s long-term earnings growth rate is currently pinned at 26.6%. The Zacks Consensus Estimate for 2023 EPS stands at $2.99, indicating a year-over-year improvement of 37.2%.
Halliburton (HAL - Free Report) reported second-quarter 2023 adjusted net income per share of 77 cents, surpassing the Zacks Consensus Estimate of 75 cents.
HAL’s long-term earnings growth rate is currently pinned at 19.8%. The Zacks Consensus Estimate for 2023 EPS stands at $3.04, indicating a year-over-year improvement of 41.4%.