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Devon Energy (DVN) Q4 Earnings & Revenues Surpass Estimates
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Devon Energy Corp. (DVN - Free Report) reported fourth-quarter 2023 earnings per share (EPS) of $1.41, outpacing the Zacks Consensus Estimate of $1.39 by 1.4%. The bottom line, however, declined 15.1% year over year.
In 2023, EPS was $5.71, declining 31.3% from $8.31 in 2022.
Revenues
Total revenues for the quarter were $4.1 billion, which surpassed the Zacks Consensus Estimate of $3.87 billion by 5.9%.
However, the top line decreased by 3.6% from the year-ago quarter’s figure. Despite year-over-year improvements in production volumes, softness in commodity prices impacted the top line.
Total revenues in 2023 were $15.3 billion compared with $19.2 billion in 2022.
Devon Energy Corporation Price, Consensus and EPS Surprise
Net production for the fourth- quarter totaled 662,000 barrels of oil equivalent per day (Boe/d), up 4.1% year over year. Actual production volume exceeded the upper end of the guided range of 640,000-660,000 Boe/d. Strong performance from Delaware Basin boosted year-over-year production volumes.
Natural gas liquids production increased 14.2% year over year to 169,000 barrels per day (Bbl/d). Oil production amounted to 317,000 Bbl/d, up 0.3% on a year-over-year basis, primarily due to higher oil production at Delaware Basin.
Realized Prices
Realized oil prices (including cash settlements) for the quarter were $76.98 per barrel, down 0.6% from $77.44 in a year ago. Realized prices for natural gas liquids were $19.67 per barrel, down 19.1% from $24.32 in the prior year.
Realized gas prices were $2.02 per thousand cubic feet, reflecting a 49.6% decline from $4.01 a year ago.
Total oil equivalent realized prices, including cash settlements, were $45.07 per barrel of oil equivalent, down nearly 11% year over year.
Other Highlights
Total production expenses in fourth-quarter 2023 were $759 million, up 6.2% year over year.
Devon Energy has repurchased 5.2 million shares at a total cost of $234 million in fourth-quarter 2023 from its $3 billion share-repurchase program. The company is on course to reduce its outstanding shares by 9%.
Production costs, including taxes, averaged $12.46 per barrels of oil equivalent (Boe) in the quarter. This low-cost structure coupled with the benefits of high-margin production resulted in field-level cash margins of $32.47 per Boe in the reported-quarter.
Management increased fixed dividend by 10% to 22 cents per share, making fixed-plus-variable dividend to 44 cents. This resulted in annualized dividend of $1.76.
Financial Highlights
As of Dec 31, 2023, the company had cash and cash equivalents (including restricted cash) of $0.87 billion compared with $1.45 billion as of Dec 31, 2022. Total liquidity as of Dec 31, 2023, was $3.9 billion, including cash and credit facility.
As of Dec 31, 2023, long-term debt amounted to $5.7 billion, down from $6.2 million as of Dec 31, 2022.
Devon Energy’s net cash from operating activities was $1.73 billion in the fourth quarter compared with $1.91 billion a year ago. Capital expenditures, excluding acquisitions, totaled $910 million, marking a 13.2% increase from the previous quarter.
Guidance
In January, severe winter weather led to unplanned power outages and production disruptions across the company’s portfolio. These weather-related curtailments are estimated to reduce first-quarter production by 2%. Due to these curtailments, Devon Energy expects first-quarter production to be approximately 640,000 Boe per day (48% oil).
The company expects total production volumes in 2024 in the range of 640,000-660,000 Boe/d. Capital expenditure is projected in the band of $3.3-$3.6 billion for 2024.
Zacks Rank
Devon Energy currently carries a Zacks Rank #4 (Sell).
TotalEnergies SE (TTE - Free Report) reported fourth-quarter 2023 operating earnings of $2.16 (€2.02) per share, lagging the Zacks Consensus Estimate of $2.35 by 8.1%. The bottom line declined 27% from the year-ago figure of $2.97 (€2.93). The year-over-year decline was due to a correction in commodity prices.
TTE’s long-term (three-to-five years) earnings growth rate is currently pinned at 4.45%. The Zacks Consensus Estimate for 2024 EPS is pegged at $9.28, indicating an increase of 3.6% in the last 30 days.
Occidental Petroleum Corporation (OXY - Free Report) reported fourth-quarter 2023 earnings of 74 cents per share, which was on par with the Zacks Consensus Estimate. In the year-ago quarter, the company recorded earnings of $1.61.
OXY’s long-term (three-to-five years) earnings growth rate is currently pinned at 8.56%. The Zacks Consensus Estimate for 2024 EPS is pegged at $3.88, indicating a decline of 9.3% in the last 30 days.
Halliburton Company (HAL - Free Report) reported fourth-quarter 2023 adjusted net income per share of 86 cents, surpassing the Zacks Consensus Estimate of 80 cents and well above the year-ago figure of 72 cents. The outperformance reflects strength in the international markets, partly offset by weak performance in the North America region.
HAL’s long-term (three-to-five years) earnings growth rate is currently pinned at 11.68%. The Zacks Consensus Estimate for 2024 EPS is pegged at $3.43, remained same over the last 30 days.
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Devon Energy (DVN) Q4 Earnings & Revenues Surpass Estimates
Devon Energy Corp. (DVN - Free Report) reported fourth-quarter 2023 earnings per share (EPS) of $1.41, outpacing the Zacks Consensus Estimate of $1.39 by 1.4%. The bottom line, however, declined 15.1% year over year.
In 2023, EPS was $5.71, declining 31.3% from $8.31 in 2022.
Revenues
Total revenues for the quarter were $4.1 billion, which surpassed the Zacks Consensus Estimate of $3.87 billion by 5.9%.
However, the top line decreased by 3.6% from the year-ago quarter’s figure. Despite year-over-year improvements in production volumes, softness in commodity prices impacted the top line.
Total revenues in 2023 were $15.3 billion compared with $19.2 billion in 2022.
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 fourth- quarter totaled 662,000 barrels of oil equivalent per day (Boe/d), up 4.1% year over year. Actual production volume exceeded the upper end of the guided range of 640,000-660,000 Boe/d. Strong performance from Delaware Basin boosted year-over-year production volumes.
Natural gas liquids production increased 14.2% year over year to 169,000 barrels per day (Bbl/d). Oil production amounted to 317,000 Bbl/d, up 0.3% on a year-over-year basis, primarily due to higher oil production at Delaware Basin.
Realized Prices
Realized oil prices (including cash settlements) for the quarter were $76.98 per barrel, down 0.6% from $77.44 in a year ago. Realized prices for natural gas liquids were $19.67 per barrel, down 19.1% from $24.32 in the prior year.
Realized gas prices were $2.02 per thousand cubic feet, reflecting a 49.6% decline from $4.01 a year ago.
Total oil equivalent realized prices, including cash settlements, were $45.07 per barrel of oil equivalent, down nearly 11% year over year.
Other Highlights
Total production expenses in fourth-quarter 2023 were $759 million, up 6.2% year over year.
Devon Energy has repurchased 5.2 million shares at a total cost of $234 million in fourth-quarter 2023 from its $3 billion share-repurchase program. The company is on course to reduce its outstanding shares by 9%.
Production costs, including taxes, averaged $12.46 per barrels of oil equivalent (Boe) in the quarter. This low-cost structure coupled with the benefits of high-margin production resulted in field-level cash margins of $32.47 per Boe in the reported-quarter.
Management increased fixed dividend by 10% to 22 cents per share, making fixed-plus-variable dividend to 44 cents. This resulted in annualized dividend of $1.76.
Financial Highlights
As of Dec 31, 2023, the company had cash and cash equivalents (including restricted cash) of $0.87 billion compared with $1.45 billion as of Dec 31, 2022. Total liquidity as of Dec 31, 2023, was $3.9 billion, including cash and credit facility.
As of Dec 31, 2023, long-term debt amounted to $5.7 billion, down from $6.2 million as of Dec 31, 2022.
Devon Energy’s net cash from operating activities was $1.73 billion in the fourth quarter compared with $1.91 billion a year ago. Capital expenditures, excluding acquisitions, totaled $910 million, marking a 13.2% increase from the previous quarter.
Guidance
In January, severe winter weather led to unplanned power outages and production disruptions across the company’s portfolio. These weather-related curtailments are estimated to reduce first-quarter production by 2%. Due to these curtailments, Devon Energy expects first-quarter production to be approximately 640,000 Boe per day (48% oil).
The company expects total production volumes in 2024 in the range of 640,000-660,000 Boe/d. Capital expenditure is projected in the band of $3.3-$3.6 billion for 2024.
Zacks Rank
Devon Energy currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Releases
TotalEnergies SE (TTE - Free Report) reported fourth-quarter 2023 operating earnings of $2.16 (€2.02) per share, lagging the Zacks Consensus Estimate of $2.35 by 8.1%. The bottom line declined 27% from the year-ago figure of $2.97 (€2.93). The year-over-year decline was due to a correction in commodity prices.
TTE’s long-term (three-to-five years) earnings growth rate is currently pinned at 4.45%. The Zacks Consensus Estimate for 2024 EPS is pegged at $9.28, indicating an increase of 3.6% in the last 30 days.
Occidental Petroleum Corporation (OXY - Free Report) reported fourth-quarter 2023 earnings of 74 cents per share, which was on par with the Zacks Consensus Estimate. In the year-ago quarter, the company recorded earnings of $1.61.
OXY’s long-term (three-to-five years) earnings growth rate is currently pinned at 8.56%. The Zacks Consensus Estimate for 2024 EPS is pegged at $3.88, indicating a decline of 9.3% in the last 30 days.
Halliburton Company (HAL - Free Report) reported fourth-quarter 2023 adjusted net income per share of 86 cents, surpassing the Zacks Consensus Estimate of 80 cents and well above the year-ago figure of 72 cents. The outperformance reflects strength in the international markets, partly offset by weak performance in the North America region.
HAL’s long-term (three-to-five years) earnings growth rate is currently pinned at 11.68%. The Zacks Consensus Estimate for 2024 EPS is pegged at $3.43, remained same over the last 30 days.