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Devon Energy's Q3 Earnings and Revenues Beat Estimates
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Devon Energy Corp. (DVN - Free Report) reported third-quarter 2024 earnings per share (EPS) of $2.51, outpacing the Zacks Consensus Estimate of $2.47 by 1.6%.
GAAP earnings per share in the reported quarter were $1.30 compared with $1.34 in the year-ago quarter. The difference between GAAP and operating earnings in the third quarter was due to an impact of 20 cents from fair value changes in financial instruments, 1 cent from deferred tax asset valuation allowance, and 1 cent from restructuring and transaction costs.
Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.
Revenues
Total revenues for the quarter were $4.02 billion, which surpassed the Zacks Consensus Estimate of $3.75 billion by 7.2%. Strong production volumes from the Delaware Basin boosted performance, offset marginally by the drop in realized prices of the commodities.
The top line increased 4.9% from the year-ago quarter’s figure.
Devon Energy Corporation Price, Consensus and EPS Surprise
Net production for the third quarter totaled 728,000 barrels of oil equivalent per day (Boe/d), up 9.5% year over year. Actual production volume exceeded the guided range of 670,000-690,000 Boe/d. Strong performance from the Delaware Basin and Powder River Basin boosted year-over-year production volumes.
Natural gas liquids production increased 16.9% year over year to 194,000 barrels per day (Bbl/d). Oil production amounted to 335,000 Bbl/d, up 4.4% on a year-over-year basis, attributed to a strong contribution from the Delaware Basin.
Realized Prices
Realized oil prices (including cash settlements) for the quarter were $74.26 per barrel, down 6.95% from $79.81 a year ago. Realized prices for natural gas liquids were $19.36 per barrel, down 6.6% from $20.72 in the prior-year quarter.
Realized gas prices were 84 cents per thousand cubic feet, reflecting a 58.2% decline from $2.01 a year ago.
Total oil equivalent realized prices, including cash settlements, were $40.71 per barrel of oil equivalent, down nearly 13.2% year over year.
Other Highlights
Total production expenses in third-quarter 2024 were $763 million, up 0.8% year over year.
Devon repurchased shares worth $295 million in the third quarter from its $3 billion share-repurchase program. Since the inception of the buyback program in late 2021, the company has repurchased shares worth $3 billion.
Due to a year-over-year decline in realized price in the reported quarter and an increase in gathering, processing and transportation expenses, it resulted in field-level cash margins of $28.41 per Boe in the reported quarter, down 18.2% year-over-year.
Devon declared its fixed quarterly cash dividend of 22 cents per share, payable on Dec. 30, 2024, to shareholders of record at the close of business on Dec. 13, 2024. With the recent pullback in commodity prices and equities, as well as the additional leverage taken on by the company, Devon’s management has decided not to declare a variable dividend in the current quarter. Devon’s capital allocation will now focus on strengthening the balance sheet and returning capital to shareholders through the fixed dividend and share buybacks.
Financial Highlights
As of Sept. 30, 2024, the company had cash and cash equivalents (including restricted cash) of $676 million compared with $875 million as of Dec. 31, 2023.
As of Sept. 30, 2024, long-term debt amounted to $8.88 billion, up from $5.67 billion as of Dec. 31, 2023.
Devon’s net cash from operating activities was $1.66 billion in the fourth quarter compared with $1.72 billion a year ago. Capital expenditures totaled $877 million, down 3% from the previous year quarter.
Devon’s Q4 Guidance
Fourth-quarter production is expected in the range of 811,000-830,000 Boe per day and capital spending is estimated in the band of $915-$985 million. The fourth-quarter production guidance represents a 13% increase sequentially.
This fourth-quarter volume growth will be driven by an estimated 110,000 Boe/d of incremental production from Devon Energy’s Williston Basin acquisition.
TotalEnergies SE (TTE - Free Report) reported third-quarter 2024 operating earnings of $1.74 (€1.58) per share, which missed the Zacks Consensus Estimate of $1.84 by 5.4%.
TTE’s long-term (three-to-five years) earnings growth rate is currently pinned at 3.9%. The Zacks Consensus Estimate for 2024 EPS is pegged at $8.02, indicating a year-over-year decline of 14.68%.
Chevron Corporation (CVX - Free Report) reported adjusted third-quarter earnings per share of $2.51, beating the Zacks Consensus Estimate of $2.47 by 1.6%.
CVX’s long-term earnings growth rate is currently pinned at 4.22%. The Zacks Consensus Estimate for 2024 EPS is pegged at $10.65, indicating a year-over-year decline of 18.89%.
CNX Resources Corporation (CNX - Free Report) reported third-quarter 2024 operating earnings of 41 cents per share, which beat the Zacks Consensus Estimate of 32 cents by 28.1%. The bottom line also increased 17.1% from 35 cents in the year-ago quarter.
CNX’s long-term earnings growth rate is currently pinned at 15.31%. The Zacks Consensus Estimate for 2024 EPS is pegged at $1.56, indicating a year-over-year decline of 17.89%.
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Devon Energy's Q3 Earnings and Revenues Beat Estimates
Devon Energy Corp. (DVN - Free Report) reported third-quarter 2024 earnings per share (EPS) of $2.51, outpacing the Zacks Consensus Estimate of $2.47 by 1.6%.
GAAP earnings per share in the reported quarter were $1.30 compared with $1.34 in the year-ago quarter. The difference between GAAP and operating earnings in the third quarter was due to an impact of 20 cents from fair value changes in financial instruments, 1 cent from deferred tax asset valuation allowance, and 1 cent from restructuring and transaction costs.
Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.
Revenues
Total revenues for the quarter were $4.02 billion, which surpassed the Zacks Consensus Estimate of $3.75 billion by 7.2%. Strong production volumes from the Delaware Basin boosted performance, offset marginally by the drop in realized prices of the commodities.
The top line increased 4.9% 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 third quarter totaled 728,000 barrels of oil equivalent per day (Boe/d), up 9.5% year over year. Actual production volume exceeded the guided range of 670,000-690,000 Boe/d. Strong performance from the Delaware Basin and Powder River Basin boosted year-over-year production volumes.
Natural gas liquids production increased 16.9% year over year to 194,000 barrels per day (Bbl/d). Oil production amounted to 335,000 Bbl/d, up 4.4% on a year-over-year basis, attributed to a strong contribution from the Delaware Basin.
Realized Prices
Realized oil prices (including cash settlements) for the quarter were $74.26 per barrel, down 6.95% from $79.81 a year ago. Realized prices for natural gas liquids were $19.36 per barrel, down 6.6% from $20.72 in the prior-year quarter.
Realized gas prices were 84 cents per thousand cubic feet, reflecting a 58.2% decline from $2.01 a year ago.
Total oil equivalent realized prices, including cash settlements, were $40.71 per barrel of oil equivalent, down nearly 13.2% year over year.
Other Highlights
Total production expenses in third-quarter 2024 were $763 million, up 0.8% year over year.
Devon repurchased shares worth $295 million in the third quarter from its $3 billion share-repurchase program. Since the inception of the buyback program in late 2021, the company has repurchased shares worth $3 billion.
Due to a year-over-year decline in realized price in the reported quarter and an increase in gathering, processing and transportation expenses, it resulted in field-level cash margins of $28.41 per Boe in the reported quarter, down 18.2% year-over-year.
Devon declared its fixed quarterly cash dividend of 22 cents per share, payable on Dec. 30, 2024, to shareholders of record at the close of business on Dec. 13, 2024. With the recent pullback in commodity prices and equities, as well as the additional leverage taken on by the company, Devon’s management has decided not to declare a variable dividend in the current quarter. Devon’s capital allocation will now focus on strengthening the balance sheet and returning capital to shareholders through the fixed dividend and share buybacks.
Financial Highlights
As of Sept. 30, 2024, the company had cash and cash equivalents (including restricted cash) of $676 million compared with $875 million as of Dec. 31, 2023.
As of Sept. 30, 2024, long-term debt amounted to $8.88 billion, up from $5.67 billion as of Dec. 31, 2023.
Devon’s net cash from operating activities was $1.66 billion in the fourth quarter compared with $1.72 billion a year ago. Capital expenditures totaled $877 million, down 3% from the previous year quarter.
Devon’s Q4 Guidance
Fourth-quarter production is expected in the range of 811,000-830,000 Boe per day and capital spending is estimated in the band of $915-$985 million. The fourth-quarter production guidance represents a 13% increase sequentially.
This fourth-quarter volume growth will be driven by an estimated 110,000 Boe/d of incremental production from Devon Energy’s Williston Basin acquisition.
Devon’s Zacks Rank
Devon 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 third-quarter 2024 operating earnings of $1.74 (€1.58) per share, which missed the Zacks Consensus Estimate of $1.84 by 5.4%.
TTE’s long-term (three-to-five years) earnings growth rate is currently pinned at 3.9%. The Zacks Consensus Estimate for 2024 EPS is pegged at $8.02, indicating a year-over-year decline of 14.68%.
Chevron Corporation (CVX - Free Report) reported adjusted third-quarter earnings per share of $2.51, beating the Zacks Consensus Estimate of $2.47 by 1.6%.
CVX’s long-term earnings growth rate is currently pinned at 4.22%. The Zacks Consensus Estimate for 2024 EPS is pegged at $10.65, indicating a year-over-year decline of 18.89%.
CNX Resources Corporation (CNX - Free Report) reported third-quarter 2024 operating earnings of 41 cents per share, which beat the Zacks Consensus Estimate of 32 cents by 28.1%. The bottom line also increased 17.1% from 35 cents in the year-ago quarter.
CNX’s long-term earnings growth rate is currently pinned at 15.31%. The Zacks Consensus Estimate for 2024 EPS is pegged at $1.56, indicating a year-over-year decline of 17.89%.