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Devon Energy (DVN) Q3 Earnings Surpass Estimates, Sales Miss
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Devon Energy Corp. (DVN - Free Report) reported third-quarter 2023 earnings of $1.65 per share, outpacing the Zacks Consensus Estimate of $1.56 by 5.8%. The bottom line, however, declined 24.3% from the year-ago quarter’s earnings of $2.18 per share.
Revenues
Total revenues for the quarter were $3,836 million, which missed the Zacks Consensus Estimate of $4,030 million by 4.8%. The top line also decreased by 29.4% from the year-ago quarter’s figure. Despite year-over-year improvements 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 665,000 barrels of oil equivalent per day (Boe/d), up 8.3% year over year. Actual production volume came toward the upper end of the guidance range of 658,000-680,000 Boe/d. Strong performance from the Delaware Basin boosted year-over-year production volumes.
Natural gas liquids production increased 7.8% year over year to 166,000 barrels per day (Bbl/d). Oil production amounted to 321,000 Bbl/d, up 9.2% on a year-over-year basis, primarily due to higher oil production at the Delaware Basin.
Realized Prices
Realized oil prices (including cash settlements) for the quarter were $79.81 per barrel, down 5.4% from $84.38 in the year-ago period. Realized prices for natural gas liquids were $20.72 per barrel, down 39.8% from $34.44 in the prior-year quarter.
Realized gas prices were $2.01 per thousand cubic feet, indicating a 65.5% decline from $5.83 reported a year ago.
Total oil equivalent realized prices, including cash settlements, were $46.92 per barrel of oil equivalent, down 19.8% year over year.
Other Highlights
Total production expenses were $757 million, up 3% from that recorded in the corresponding period of 2022.
Since the inception of the share repurchase program in late 2021, Devon has repurchased 40 million shares at a total cost of $2.1 billion. The company is on course to reduce its outstanding shares by 9%.
DVN’s free cash flow for the quarter totaled nearly $843 million. Financing costs amounted to $81 million, up 20.9% from $67 million in the year-ago period.
Devon’s management increased the fixed-plus-variable dividend by 57% to 77 cents per share, making the annualized dividend $3.08 per share.
Financial Highlights
As of Sep 30, 2023, the company had cash and cash equivalents (including restricted cash) of $761 million compared with $1,454 million as of Dec 31, 2022. Total liquidity as of Sep 30, 2023, was $3.8 billion, including cash and credit facility.
As of the same date, long-term debt amounted to $5,675 million, down from $6,189 million as of Dec 31, 2022.
Devon Energy’s net cash from operating activities was $1,725 million in the third quarter compared with $2,104 million in the year-ago period. Capital expenditures, excluding acquisitions, totaled $896 million, indicating a 12% decrease from the previous quarter.
Guidance
The company expects total production of 640,000-660,000 Boe/d in the fourth quarter of 2023.
Devon expects its fourth-quarter oil production volume in the range of 312,000-318,000 Boe/d.
Our model currently projects an oil volume of 316,600 Boe/d for the fourth quarter.
The decrease in the fourth quarter’s production from the third quarter will be driven by declines in the Williston Basin and the timing of project completions in the Delaware Basin.
Capital expenditure is projected in the band of $870-$930 million for fourth-quarter 2023.
TotalEnergies SE (TTE - Free Report) reported third-quarter 2023 operating earnings of $2.63 (€2.41) per share, beating the Zacks Consensus Estimate of $2.5 by 5.2%.
TTE’s long-term (three- to five-year) earnings growth rate is currently pinned at 9.3%. The Zacks Consensus Estimate for 2023 EPS is pegged at $9.72, indicating an increase of 2.3% in the last 60 days.
Schlumberger Limited (SLB - Free Report) announced third-quarter 2023 earnings of 78 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 28.4%. The Zacks Consensus Estimate for 2023 EPS is pegged at $2.97, indicating a year-over-year improvement of 36.2%.
Halliburton (HAL - Free Report) reported third-quarter 2023 adjusted net income per share of 97 cents, surpassing the Zacks Consensus Estimate of 77 cents.
HAL’s long-term earnings growth rate is currently pinned at 21.3%. The Zacks Consensus Estimate for 2023 EPS is pegged at $3.07, indicating an improvement of 0.7% in the last 60 days.
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Devon Energy (DVN) Q3 Earnings Surpass Estimates, Sales Miss
Devon Energy Corp. (DVN - Free Report) reported third-quarter 2023 earnings of $1.65 per share, outpacing the Zacks Consensus Estimate of $1.56 by 5.8%. The bottom line, however, declined 24.3% from the year-ago quarter’s earnings of $2.18 per share.
Revenues
Total revenues for the quarter were $3,836 million, which missed the Zacks Consensus Estimate of $4,030 million by 4.8%. The top line also decreased by 29.4% from the year-ago quarter’s figure. Despite year-over-year improvements 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 665,000 barrels of oil equivalent per day (Boe/d), up 8.3% year over year. Actual production volume came toward the upper end of the guidance range of 658,000-680,000 Boe/d. Strong performance from the Delaware Basin boosted year-over-year production volumes.
Natural gas liquids production increased 7.8% year over year to 166,000 barrels per day (Bbl/d). Oil production amounted to 321,000 Bbl/d, up 9.2% on a year-over-year basis, primarily due to higher oil production at the Delaware Basin.
Realized Prices
Realized oil prices (including cash settlements) for the quarter were $79.81 per barrel, down 5.4% from $84.38 in the year-ago period. Realized prices for natural gas liquids were $20.72 per barrel, down 39.8% from $34.44 in the prior-year quarter.
Realized gas prices were $2.01 per thousand cubic feet, indicating a 65.5% decline from $5.83 reported a year ago.
Total oil equivalent realized prices, including cash settlements, were $46.92 per barrel of oil equivalent, down 19.8% year over year.
Other Highlights
Total production expenses were $757 million, up 3% from that recorded in the corresponding period of 2022.
Since the inception of the share repurchase program in late 2021, Devon has repurchased 40 million shares at a total cost of $2.1 billion. The company is on course to reduce its outstanding shares by 9%.
DVN’s free cash flow for the quarter totaled nearly $843 million. Financing costs amounted to $81 million, up 20.9% from $67 million in the year-ago period.
Devon’s management increased the fixed-plus-variable dividend by 57% to 77 cents per share, making the annualized dividend $3.08 per share.
Financial Highlights
As of Sep 30, 2023, the company had cash and cash equivalents (including restricted cash) of $761 million compared with $1,454 million as of Dec 31, 2022. Total liquidity as of Sep 30, 2023, was $3.8 billion, including cash and credit facility.
As of the same date, long-term debt amounted to $5,675 million, down from $6,189 million as of Dec 31, 2022.
Devon Energy’s net cash from operating activities was $1,725 million in the third quarter compared with $2,104 million in the year-ago period. Capital expenditures, excluding acquisitions, totaled $896 million, indicating a 12% decrease from the previous quarter.
Guidance
The company expects total production of 640,000-660,000 Boe/d in the fourth quarter of 2023.
Devon expects its fourth-quarter oil production volume in the range of 312,000-318,000 Boe/d.
Our model currently projects an oil volume of 316,600 Boe/d for the fourth quarter.
The decrease in the fourth quarter’s production from the third quarter will be driven by declines in the Williston Basin and the timing of project completions in the Delaware Basin.
Capital expenditure is projected in the band of $870-$930 million for fourth-quarter 2023.
Zacks Rank
Devon Energy currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Releases
TotalEnergies SE (TTE - Free Report) reported third-quarter 2023 operating earnings of $2.63 (€2.41) per share, beating the Zacks Consensus Estimate of $2.5 by 5.2%.
TTE’s long-term (three- to five-year) earnings growth rate is currently pinned at 9.3%. The Zacks Consensus Estimate for 2023 EPS is pegged at $9.72, indicating an increase of 2.3% in the last 60 days.
Schlumberger Limited (SLB - Free Report) announced third-quarter 2023 earnings of 78 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 28.4%. The Zacks Consensus Estimate for 2023 EPS is pegged at $2.97, indicating a year-over-year improvement of 36.2%.
Halliburton (HAL - Free Report) reported third-quarter 2023 adjusted net income per share of 97 cents, surpassing the Zacks Consensus Estimate of 77 cents.
HAL’s long-term earnings growth rate is currently pinned at 21.3%. The Zacks Consensus Estimate for 2023 EPS is pegged at $3.07, indicating an improvement of 0.7% in the last 60 days.