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Devon Energy to Report Q3 Earnings: What's in Store for the Stock?

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Key Takeaways

  • Devon Energy expects Q3 revenue growth of 2.34% despite a projected 15.45% earnings decline.
  • Oil output is seen at 387,000 barrels per day, with total production expected in range of 829-847 Mboe/d.
  • Cost control, hedging and improved price realizations supported DVN's Q3 performance stability.

Devon Energy Corporation (DVN - Free Report) is expected to register an improvement in the top line and a decline in the bottom line when it reports third-quarter 2025 results on Nov. 5, after market close. The company reported an earnings surprise of 1.2% in the last reported quarter.

Let us focus on how things might have shaped up for the company this season.

Factors That Might Have Influenced DVN’s Q3 Earnings

Devon Energy is predicted to deliver stable oil volumes in the third quarter. The company is expected to have sustained the positive momentum generated in the first half of the year. DVN expects oil production of 387,000 barrels per day in the third quarter. Strong production across its diverse multi-basin portfolio, particularly from the Delaware Basin, has contributed to elevated output levels.
 
To mitigate market volatility in oil, natural gas liquids (“NGL”) and natural gas prices, the company has hedged its third-quarter 2025 production, providing additional stability to its earnings performance.

Devon Energy’s prudent cost management has helped maintain tight control over operating expenses. Strong cash flow generation has supported its share repurchase program, which is likely to have provided an additional lift to quarterly earnings. Moreover, the company’s U.S.-centric operations have insulated it from significant geopolitical and regulatory risks, which are likely to have benefited its third-quarter performance.

The company has been working on restructuring NGL contracts to improve price realizations and enhancing downstream oil realizations by expanding access to export markets, which is expected to have a positive impact on third-quarter earnings.

Q3 Expectation From DVN

Devon Energy expects its third-quarter production volume to be in the range of 829-847 thousand barrels of oil equivalents per day (Mboe/d). The Zacks Consensus Estimate for third-quarter production volume is pegged at 838.7 Mboe/d, which indicates year-over-year growth of 15.2%.

The Zacks Consensus Estimate for DVN’s third-quarter revenues is pegged at $4.12 billion, indicating growth of 2.34% from the year-ago reported figure.

The Zacks Consensus Estimate for earnings is pegged at 93 cents per share. The consensus mark for DVN’s third-quarter earnings indicates a decline of 15.45% from the year-ago reported figure.

What the Zacks Model Unveils for DVN

Our model does not conclusively predict a likely earnings beat for DVN this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. That is not the case here, as you can see below.

Devon Energy Corporation Price and EPS Surprise

Devon Energy Corporation Price and EPS Surprise

Devon Energy Corporation price-eps-surprise | Devon Energy Corporation Quote

You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.

DVN’s Earnings ESP: DVN has an Earnings ESP of -0.07%.

DVN’s Zacks Rank: Devon currently carries a Zacks Rank #3.

Stocks to Consider This Season

Here are some stocks in the same sector that have the combination of factors indicating an earnings beat this season.

Canadian Natural Resources Limited (CNQ - Free Report) , Delek US Holdings (DK - Free Report) and Northern Oil and Gas, Inc. (NOG - Free Report) possess the right combination of two factors to report an earnings beat this season.

CNQ, DK and NOG’s Earnings ESP are currently pegged at +1.55%, +98.57% and +1.83% respectively. CNQ has a Zacks Rank #2 and DK and NOG carry a Zacks Rank #3 each. You can see the complete list of today’s Zacks #1 Rank stocks here.

 

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