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Devon Q3 Earnings & Sales Beat Estimates on Strong Production Volumes

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Key Takeaways

  • Devon posted Q3 EPS of $1.04, beating estimates but down 5.5% year over year.
  • Quarterly revenues of $4.33B exceeded expectations, driven by strong production gains.
  • Production rose 17.2% to 853,000 Boe/d, surpassing guidance on Delaware and Rockies strength.

Devon Energy Corp. (DVN - Free Report) reported third-quarter 2025 earnings per share (EPS) of $1.04, beating the Zacks Consensus Estimate of 93 cents by 11.8%. The third-quarter earnings were down 5.5% year over year.

GAAP EPS in the reported quarter was $1.09 compared with $1.41 in the year-ago quarter. The difference between GAAP and operating earnings in the third quarter was due to a gain of 4 cents from asset disposition, an impact of 4 cents from fair value changes in financial instruments, a charge of 2 cents from changes in tax laws and 1 cent from restructuring and transaction costs.

Revenues of DVN

Total revenues for the quarter were $4.33 billion, which beat the Zacks Consensus Estimate of $4.11 billion by 5.17%.

Devon Energy Corporation Price, Consensus and EPS Surprise

Devon Energy Corporation Price, Consensus and EPS Surprise

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

Production of DVN

Net production in the third quarter totaled 853,000 barrels of oil equivalent per day (Boe/d), up 17.2% year over year. Actual production volume exceeded the guided range of 829,000-847,000 Boe/d. Improvement in production volumes from the Delaware and Rockies regions boosted the metric.

Natural gas liquids production increased 17.5% year over year to 228,000 barrels per day (Bbl/d). Oil production amounted to 390,000 Bbl/d, up 16.4% on a year-over-year basis, due to a strong contribution from the Rockies region.

DVN’s Realized Prices

Realized oil prices (including cash settlements) for the quarter were $63.99 per barrel, down 13.8% from $74.26 in the year-ago period. Realized prices for natural gas liquids were $17.18 per barrel, down 11.3% from $19.36 in the prior-year quarter.

Realized gas prices were $1.58 per thousand cubic feet, indicating an increase of 88.1% from 84 cents a year ago.

Total oil equivalent realized prices, including cash settlements, were $36.46 per Boe, down nearly 10.4% year over year.

Highlights of DVN’s Q3 Release

Total production expenses in the third quarter were $895 million, up 17.3% year over year.

Devon repurchased shares worth $250 million in the third quarter and paid dividends worth $151 million to its shareholders.

Production costs, including taxes, averaged $11.41 per Boe in the third quarter, a decline of 3% sequentially.

Devon’s realized price during the period, including commodity hedges, was $36.36 per Boe. The figure dropped $4.25 per Boe from the year-ago quarter’s actual. This decline in price realization was primarily due to lower oil price realized.

Financial Highlights of DVN

As of Sept. 30, 2025, the company had cash and cash equivalents (including restricted cash) of $1.28 billion compared with $0.85 billion as of Dec. 31, 2024.

Long-term debt amounted to $7.39 billion as of Sept. 30, 2025, down from $8.88 billion as of Dec. 31, 2024.

Devon’s net cash from operating activities was $1.69 billion in third-quarter 2025, compared with $1.66 billion in third-quarter 2024. Capital expenditures in third-quarter 2025 totaled $0.87 billion, on par with the level of third-quarter 2024.

During the quarter, the company retired debts worth $485 million ahead of schedule, which further strengthened its balance sheet.

Devon’s Guidance

Fourth-quarter production is expected in the range of 828,000-844,000 Boe/d and capital spending is estimated in the band of $0.89-$0.95 billion. Devon expects its fourth-quarter general and administrative expenses to be in the range of $120-$130 million and Financing costs, net, in the range of $100-$110 million.

In 2026, the company aims to maintain total production nearly at 835,000-855,000 Boe/d, including about 388,000 barrels of oil per day. Devon expects its capital expenditure in 2026 to be in the range of $3.5 billion to $3.7 billion.

Devon’s Zacks Rank

Devon currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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