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Devon Energy (DVN) Beats on Q4 Earnings, Gives '17 View
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Devon Energy Corp. (DVN - Free Report) reported fourth-quarter 2016 adjusted earnings per share of 25 cents, beating the Zacks Consensus Estimate of 19 cents by 31.6%. Quarterly earnings, however, dropped 67.5% from the year-ago tally of 77 cents.
On a GAAP basis, the company reported earnings of 63 cents per share, while the year-ago quarter figure reflected a loss of $11.12. The difference between operating and GAAP figures in the reported quarter was due to asset impairment of 19 cents, gain of 87 cents on asset sales, deferred tax valuation allowance of 3 cents, early retirement of debt charges of 22 cents and foreign currency adjustments of 11 cents.
Revenues
Devon’s quarterly revenues of $3,350 surpassed the Zacks Consensus Estimate of $2,770 million by 20.9%. Total revenue was also up 16.1% from the year-ago figure of $2,886 million.
Revenues for the full-year 2016 came in at $12,197 million, beating the Zacks Consensus Estimate of $11,010 billion by 10.8%. Yearly revenues, however, dropped 7.2% from the year-ago figure of $13,145 million.
Highlights of the Release
In the fourth quarter of 2016, total production touched 537,000 Boe per day, down 21.2% year over year, taking in to account the divested assets production was down 10.6% year over year
At the field level, the company is effectively controlling costs. Thanks to its initiatives, lease operating expenses (LOE) were down 23.4% year over year to $367 million. The decline in LOE was primarily due to improved power and water-handling infrastructure, declining labor expense and lower supply chain cost.
Operating income in the reported quarter was $637 million. In the year-ago quarter, the company had incurred operating loss of $5,425 million.
Realized Prices
Realized oil prices in the quarter were $34.90 per barrel, down 35% from $53.67 per barrel in the year-ago quarter. Realized prices for natural gas were down 9% to $2.23 per thousand cubic feet (Mcf) from $2.45 in the year-ago quarter.
Total realized prices in the fourth quarter, including cash settlements, were $23.17 per boe, down 21.3% year over year due to lower commodities prices.
Financial Health
As of Dec 31, 2016, the company had a cash balance of $1,959 million, down from $2,310 million as of Dec 31, 2015.
Long-term debt as of Dec 31, 2016 was $10,154 million, compared with $12,056 million as of Dec 31, 2015. The company used divesture proceeds to repay debts and strengthen its balance sheet.
Devon’s cash flow from operating activities in fourth-quarter 2016 was $536 million, compared with $1,071 million in the year ago quarter.
Capital expenditure was $671 million, lower than $1,079 million a year ago.
Devon Energy Corporation Price, Consensus and EPS Surprise
Devon Energy estimates total production from its assets in the first quarter of 2017 and full-year 2017 to be in the range of 535,000–555,000 boe per day and 539,000–561,000 boe per day, respectively.
Capital expenditure (capex) in the first quarter of 2017 and full-year 2017 is expected to be in the range of $525–$595 million and $2,285–$2,690 million, respectively.
Devon Energy further has provided its 2017 first-quarter and full-year LOE outlook in the range of $350–$400 million and $1,500–$1,600 million, respectively.
Peer Releases
Anadarko Petroleum Corp. reported fourth-quarter 2016 adjusted loss of 50 cents per share, wider than the Zacks Consensus Estimate of a loss of 48 cents.
Murphy Oil Corp. (MUR - Free Report) reported fourth-quarter 2016 loss of 16 cents per share, narrower than the Zacks Consensus Estimate of a loss of 19 cents.
Noble Energy, Inc. reported adjusted earnings of 26 cents per share for the fourth quarter of 2016 against the Zacks Consensus Estimate of a loss of 9 cents.
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Devon Energy (DVN) Beats on Q4 Earnings, Gives '17 View
Devon Energy Corp. (DVN - Free Report) reported fourth-quarter 2016 adjusted earnings per share of 25 cents, beating the Zacks Consensus Estimate of 19 cents by 31.6%. Quarterly earnings, however, dropped 67.5% from the year-ago tally of 77 cents.
On a GAAP basis, the company reported earnings of 63 cents per share, while the year-ago quarter figure reflected a loss of $11.12. The difference between operating and GAAP figures in the reported quarter was due to asset impairment of 19 cents, gain of 87 cents on asset sales, deferred tax valuation allowance of 3 cents, early retirement of debt charges of 22 cents and foreign currency adjustments of 11 cents.
Revenues
Devon’s quarterly revenues of $3,350 surpassed the Zacks Consensus Estimate of $2,770 million by 20.9%. Total revenue was also up 16.1% from the year-ago figure of $2,886 million.
Revenues for the full-year 2016 came in at $12,197 million, beating the Zacks Consensus Estimate of $11,010 billion by 10.8%. Yearly revenues, however, dropped 7.2% from the year-ago figure of $13,145 million.
Highlights of the Release
In the fourth quarter of 2016, total production touched 537,000 Boe per day, down 21.2% year over year, taking in to account the divested assets production was down 10.6% year over year
At the field level, the company is effectively controlling costs. Thanks to its initiatives, lease operating expenses (LOE) were down 23.4% year over year to $367 million. The decline in LOE was primarily due to improved power and water-handling infrastructure, declining labor expense and lower supply chain cost.
Operating income in the reported quarter was $637 million. In the year-ago quarter, the company had incurred operating loss of $5,425 million.
Realized Prices
Realized oil prices in the quarter were $34.90 per barrel, down 35% from $53.67 per barrel in the year-ago quarter. Realized prices for natural gas were down 9% to $2.23 per thousand cubic feet (Mcf) from $2.45 in the year-ago quarter.
Total realized prices in the fourth quarter, including cash settlements, were $23.17 per boe, down 21.3% year over year due to lower commodities prices.
Financial Health
As of Dec 31, 2016, the company had a cash balance of $1,959 million, down from $2,310 million as of Dec 31, 2015.
Long-term debt as of Dec 31, 2016 was $10,154 million, compared with $12,056 million as of Dec 31, 2015. The company used divesture proceeds to repay debts and strengthen its balance sheet.
Devon’s cash flow from operating activities in fourth-quarter 2016 was $536 million, compared with $1,071 million in the year ago quarter.
Capital expenditure was $671 million, lower than $1,079 million a year ago.
Devon Energy Corporation Price, Consensus and EPS Surprise
Devon Energy Corporation Price, Consensus and EPS Surprise | Devon Energy Corporation Quote
Guidance
Devon Energy estimates total production from its assets in the first quarter of 2017 and full-year 2017 to be in the range of 535,000–555,000 boe per day and 539,000–561,000 boe per day, respectively.
Capital expenditure (capex) in the first quarter of 2017 and full-year 2017 is expected to be in the range of $525–$595 million and $2,285–$2,690 million, respectively.
Devon Energy further has provided its 2017 first-quarter and full-year LOE outlook in the range of $350–$400 million and $1,500–$1,600 million, respectively.
Peer Releases
Anadarko Petroleum Corp. reported fourth-quarter 2016 adjusted loss of 50 cents per share, wider than the Zacks Consensus Estimate of a loss of 48 cents.
Murphy Oil Corp. (MUR - Free Report) reported fourth-quarter 2016 loss of 16 cents per share, narrower than the Zacks Consensus Estimate of a loss of 19 cents.
Noble Energy, Inc. reported adjusted earnings of 26 cents per share for the fourth quarter of 2016 against the Zacks Consensus Estimate of a loss of 9 cents.
Zacks Rank
Devon Energy currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Zacks' Top Investment Ideas for Long-Term Profit
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