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Devon Energy (DVN) Beats on Q1 Earnings, Raises 2024 View
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Devon Energy Corp. (DVN - Free Report) reported first-quarter 2024 earnings per share (EPS) of $1.16, outpacing the Zacks Consensus Estimate of $1.10 by 5.5%. Strong production volumes and efficient cost management allowed the company to enjoy the benefit of rising oil prices during the quarter.
GAAP earnings per share in the reported quarter were 94 cents compared with $1.81 in the year-ago quarter. The difference between GAAP and operating earnings in the first quarter was due to a 22-cent impact of fair value changes in financial instruments.
Revenues
Total revenues for the quarter were $3.56 billion, which lagged the Zacks Consensus Estimate of $3.61 billion by 0.6%.
The top line decreased by 5.9% from the year-ago quarter’s figure.
Devon Energy Corporation Price, Consensus and EPS Surprise
Net production for the first quarter totaled 664,000 barrels of oil equivalent per day (Boe/d), up 3.6% year over year. Actual production volume exceeded the guidance of 640,000 Boe/d. Strong performance from Delaware Basin and Williston Basin boosted year-over-year production volumes.
Natural gas liquids production increased 10.7% year over year to 165,000 barrels per day (Bbl/d). Oil production amounted to 319,000 Bbl/d, down 0.3% on a year-over-year basis due to lower contribution from Anadarko and Williston Basin.
Realized Prices
Realized oil prices (including cash settlements) for the quarter were $75.15 per barrel, up1.3% from $74.22 a year ago. Realized prices for natural gas liquids were $20.73 per barrel, down 14.1% from $24.12 in the prior-year quarter.
Realized gas prices were $1.62 per thousand cubic feet, reflecting a 34.4% decline from $2.47 a year ago.
Total oil equivalent realized prices, including cash settlements, were $43.91 per barrel of oil equivalent, down nearly 5.9% year over year.
Other Highlights
Total production expenses in first-quarter 2024 were $751 million, up 8.4% year over year.
Devon Energy has repurchased 4.7 million shares at a total cost of $205 million in the first quarter from its $3 billion share-repurchase program. Since the inception of the buyback program in late 2021, the company has repurchased 49.5 million shares at a total cost of $2.5 billion.
Production costs, including taxes, averaged $12.43 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 $31.09 per Boe in the reported quarter.
Management declared a fixed-plus-variable dividend of 35 cents per share. This resulted in an annualized dividend of $1.40.
Financial Highlights
As of Mar 31, 2024, the company had cash and cash equivalents (including restricted cash) of $1.14 billion compared with $0.87 billion as of Dec 31, 2023. Total liquidity as of Mar 31, 2024, was $4.1 billion, including cash and credit facility.
As of Mar 31, 2024, long-term debt amounted to $5.66 billion, down from $5.67 billion as of Dec 31, 2023.
Devon Energy’s net cash from operating activities was $1.74 billion in the first quarter compared with $1.67 billion a year ago. Capital expenditures totaled $894 million, down 11.7% from the previous quarter.
Guidance
The company added a fourth Delaware completion crew in January. As a result of this activity timing, second-quarter production is expected to increase to a range 670,000-690,000 Boe per day and capital spending is estimated at nearly $950 million.
Courtesy of strong first-quarter results, Devon is increasing its full-year 2024 production forecast by 2% to a range of 655,000-675,000 Boe per day from the prior guidance range of 640,000-660,000 Boe/d. This incremental production in 2024 is expected to be delivered without an increase in capital.
Devon reiterated its capital expenditure in the band of $3.3-$3.6 billion for 2024.
Zacks Rank
Devon Energy currently carries a Zacks Rank #3 (Hold).
TotalEnergies SE (TTE - Free Report) reported first-quarter 2024 operating earnings of $2.14 (€1.97) per share, surpassing the Zacks Consensus Estimate of $1.96 by 9.2%.
TTE’s long-term (three-to-five years) earnings growth rate is currently pinned at 4.38%. The Zacks Consensus Estimate for 2024 EPS is pegged at $9.28, indicating no change in the last 60 days.
Chevron Corporation (CVX - Free Report) reported adjusted first-quarter earnings per share of $2.93, ahead of the Zacks Consensus Estimate of $2.84 by 3.2%. The outperformance could be attributed to higher-than-expected U.S. production.
CVX’s long-term earnings growth rate is currently pinned at 5%. The Zacks Consensus Estimate for 2024 EPS is pegged at $13.53, indicating an increase of 5.1% in the last 60 days.
Halliburton Company (HAL - Free Report) reported first-quarter 2024 adjusted net income per share of 76 cents, surpassing the Zacks Consensus Estimate of 74 cents by 2.7% and improving from the year-ago quarter earnings of 72 cents by 5.5%.
HAL’s long-term earnings growth rate is currently pinned at 11.6%. The Zacks Consensus Estimate for 2024 EPS is pegged at $3.39, indicating a decrease of 1.7% in the last 60 days.
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Devon Energy (DVN) Beats on Q1 Earnings, Raises 2024 View
Devon Energy Corp. (DVN - Free Report) reported first-quarter 2024 earnings per share (EPS) of $1.16, outpacing the Zacks Consensus Estimate of $1.10 by 5.5%. Strong production volumes and efficient cost management allowed the company to enjoy the benefit of rising oil prices during the quarter.
GAAP earnings per share in the reported quarter were 94 cents compared with $1.81 in the year-ago quarter. The difference between GAAP and operating earnings in the first quarter was due to a 22-cent impact of fair value changes in financial instruments.
Revenues
Total revenues for the quarter were $3.56 billion, which lagged the Zacks Consensus Estimate of $3.61 billion by 0.6%.
The top line decreased by 5.9% 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 first quarter totaled 664,000 barrels of oil equivalent per day (Boe/d), up 3.6% year over year. Actual production volume exceeded the guidance of 640,000 Boe/d. Strong performance from Delaware Basin and Williston Basin boosted year-over-year production volumes.
Natural gas liquids production increased 10.7% year over year to 165,000 barrels per day (Bbl/d). Oil production amounted to 319,000 Bbl/d, down 0.3% on a year-over-year basis due to lower contribution from Anadarko and Williston Basin.
Realized Prices
Realized oil prices (including cash settlements) for the quarter were $75.15 per barrel, up1.3% from $74.22 a year ago. Realized prices for natural gas liquids were $20.73 per barrel, down 14.1% from $24.12 in the prior-year quarter.
Realized gas prices were $1.62 per thousand cubic feet, reflecting a 34.4% decline from $2.47 a year ago.
Total oil equivalent realized prices, including cash settlements, were $43.91 per barrel of oil equivalent, down nearly 5.9% year over year.
Other Highlights
Total production expenses in first-quarter 2024 were $751 million, up 8.4% year over year.
Devon Energy has repurchased 4.7 million shares at a total cost of $205 million in the first quarter from its $3 billion share-repurchase program. Since the inception of the buyback program in late 2021, the company has repurchased 49.5 million shares at a total cost of $2.5 billion.
Production costs, including taxes, averaged $12.43 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 $31.09 per Boe in the reported quarter.
Management declared a fixed-plus-variable dividend of 35 cents per share. This resulted in an annualized dividend of $1.40.
Financial Highlights
As of Mar 31, 2024, the company had cash and cash equivalents (including restricted cash) of $1.14 billion compared with $0.87 billion as of Dec 31, 2023. Total liquidity as of Mar 31, 2024, was $4.1 billion, including cash and credit facility.
As of Mar 31, 2024, long-term debt amounted to $5.66 billion, down from $5.67 billion as of Dec 31, 2023.
Devon Energy’s net cash from operating activities was $1.74 billion in the first quarter compared with $1.67 billion a year ago. Capital expenditures totaled $894 million, down 11.7% from the previous quarter.
Guidance
The company added a fourth Delaware completion crew in January. As a result of this activity timing, second-quarter production is expected to increase to a range 670,000-690,000 Boe per day and capital spending is estimated at nearly $950 million.
Courtesy of strong first-quarter results, Devon is increasing its full-year 2024 production forecast by 2% to a range of 655,000-675,000 Boe per day from the prior guidance range of 640,000-660,000 Boe/d. This incremental production in 2024 is expected to be delivered without an increase in capital.
Devon reiterated its capital expenditure in the band of $3.3-$3.6 billion for 2024.
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 first-quarter 2024 operating earnings of $2.14 (€1.97) per share, surpassing the Zacks Consensus Estimate of $1.96 by 9.2%.
TTE’s long-term (three-to-five years) earnings growth rate is currently pinned at 4.38%. The Zacks Consensus Estimate for 2024 EPS is pegged at $9.28, indicating no change in the last 60 days.
Chevron Corporation (CVX - Free Report) reported adjusted first-quarter earnings per share of $2.93, ahead of the Zacks Consensus Estimate of $2.84 by 3.2%. The outperformance could be attributed to higher-than-expected U.S. production.
CVX’s long-term earnings growth rate is currently pinned at 5%. The Zacks Consensus Estimate for 2024 EPS is pegged at $13.53, indicating an increase of 5.1% in the last 60 days.
Halliburton Company (HAL - Free Report) reported first-quarter 2024 adjusted net income per share of 76 cents, surpassing the Zacks Consensus Estimate of 74 cents by 2.7% and improving from the year-ago quarter earnings of 72 cents by 5.5%.
HAL’s long-term earnings growth rate is currently pinned at 11.6%. The Zacks Consensus Estimate for 2024 EPS is pegged at $3.39, indicating a decrease of 1.7% in the last 60 days.