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Devon Energy's Q1 Earnings Beat Estimates, Coterra Merger on Course
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Key Takeaways
DVN posted Q1 EPS of $1.04 vs. $1.00; revenues of $3.80B missed the $4.16B estimate.
Devon Energy output hit 833k Boe/d (up 2.2%); production costs fell 19.7% to $894M.
DVN-Coterra deal approved on May 4, post-closure new $5B buyback, higher dividend planned.
Devon Energy Corp. (DVN - Free Report) reported first-quarter 2026 earnings per share (EPS) of $1.04, surpassing the Zacks Consensus Estimate of $1 by 4%. The metric was down 14% year over year.
GAAP EPS in the reported quarter was 19 cents compared with 77 cents in the year-ago quarter. The difference between GAAP and operating earnings in the first quarter was due to an impact of 81 cents from fair value changes in financial instruments, 1 cent for asset and exploration impairments, and 3 cents from restructuring and transaction costs.
DVN’s Q1 Revenue Details
Total revenues for the quarter were $3.80 billion, which lagged the Zacks Consensus Estimate of $4.16 billion by 8.5%. The top line decreased 14.5% from the year-ago quarter’s figure
Devon Energy Corporation Price, Consensus and EPS Surprise
Net production in the first quarter totaled 833,000 barrels of oil equivalent per day (Boe/d), up 2.2% year over year. The production volume was within the guided range of 823,000-843,000 Boe/d. Improvement in production volumes from the Delaware Basin boosted the metric.
Natural gas liquids production increased 7.4% year over year to 218,000 barrels per day (Bbl/d). Oil production amounted to 387,000 Bbl/d, down marginally by 0.2% on a year-over-year basis, due to a weaker contribution from the Delaware Basin.
DVN’s Realized Prices
Realized oil prices (including cash settlements) for the quarter were $67.94 per barrel, down 1.7% from $69.15 in the year-ago period. Realized prices for natural gas liquids were $17.80 per barrel, down 18.8% from $21.93 in the prior-year quarter.
Realized gas prices were $1.68 per thousand cubic feet, indicating a decline of 32.3% from $2.48 a year ago.
Total oil equivalent realized prices, including cash settlements, were $38.94 per Boe, down nearly 8.3% year over year.
Highlights of DVN’s Q1 Release
Total production expenses in the first quarter were $894 million, down 19.7% year over year.
Devon Energy bought back $69 million worth of shares in the first quarter. Looking ahead, management has outlined plans to introduce a new share repurchase program exceeding $5 billion and to raise the quarterly fixed dividend, subject to board approval following the completion of the Coterra merger.
Devon Energy’s Merger Update
On Feb. 2, 2026, Devon Energy agreed to merge with Coterra Energy in an all-stock deal, creating one of the world’s largest shale operators with a strong foothold in the core of the Delaware Basin. The combined company, which will retain the Devon Energy name, is expected to drive significant shareholder value through greater scale, improved margins, higher free cash flow and about $1 billion in annual pre-tax synergies by the end of 2027.
The merger received shareholder approval on May 4 and is expected to close around May 7, 2026. After completion, Devon Energy’s shareholders will hold roughly 54% of the combined entity, while Coterra/’s shareholders will own about 46% on a fully diluted basis.
Financial Highlights of DVN
As of March 31, 2026, the company had cash and cash equivalents (including restricted cash) of $1.81 billion compared with $1.43 billion as of Dec. 31, 2025.
Long-term debt amounted to $7.387 billion as of March 31, 2026, down from $7.391 billion as of Dec. 31, 2025.
Devon Energy’s net cash from operating activities was $1.65 billion in first-quarter 2026 compared with $1.94 billion in first-quarter 2025. Capital expenditures in first-quarter totaled $839 million, down $934 million invested in first-quarter 2025.
Devon Energy’s Guidance
Second-quarter production is expected in the range of 851,000-868,000 Boe/d and capital spending is estimated in the band of $875-$925 million.
TotalEnergies SE (TTE - Free Report) reported first-quarter 2026 operating earnings of $2.45 (€2.10) per share, which surpassed the Zacks Consensus Estimate of $1.99 by 23.1%. The bottom line improved 34% from the year-ago figure of $1.83 (€1.74).
Total revenues for the first quarter were $49.51 billion, which increased from the year-ago reported figure of $47.9 billion by 3.36%. The metric beat the Zacks Consensus Estimate of $46.85 billion by 5.9%.
Occidental Petroleum Corporation (OXY - Free Report) reported first-quarter 2026 operating earnings of $1.06 per share, which beat the Zacks Consensus Estimate of 65 cents by 63.08%. The bottom line also increased 21.8% from 87 cents in the year-ago quarter.
The company reported revenues of $5.1 billion, which lagged the Zacks Consensus Estimate of $5.49 billion by 7.04%. The top line also dropped 25.3% from the prior-year quarter’s $6.84 billion.
CNX Resources Corporation (CNX - Free Report) reported first-quarter 2026 operating earnings of $1.21 per share, which beat the Zacks Consensus Estimate of 93 cents by 30.11%. The bottom line increased 55.13% in the year-ago quarter.
The company reported revenues of $722 million, which topped the Zacks Consensus Estimate of $522 million by 38.31%. The top line rose 63.72% from the prior-year quarter’s $441 million.
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Devon Energy's Q1 Earnings Beat Estimates, Coterra Merger on Course
Key Takeaways
Devon Energy Corp. (DVN - Free Report) reported first-quarter 2026 earnings per share (EPS) of $1.04, surpassing the Zacks Consensus Estimate of $1 by 4%. The metric was down 14% year over year.
GAAP EPS in the reported quarter was 19 cents compared with 77 cents in the year-ago quarter. The difference between GAAP and operating earnings in the first quarter was due to an impact of 81 cents from fair value changes in financial instruments, 1 cent for asset and exploration impairments, and 3 cents from restructuring and transaction costs.
DVN’s Q1 Revenue Details
Total revenues for the quarter were $3.80 billion, which lagged the Zacks Consensus Estimate of $4.16 billion by 8.5%. The top line decreased 14.5% 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 at DVN
Net production in the first quarter totaled 833,000 barrels of oil equivalent per day (Boe/d), up 2.2% year over year. The production volume was within the guided range of 823,000-843,000 Boe/d. Improvement in production volumes from the Delaware Basin boosted the metric.
Natural gas liquids production increased 7.4% year over year to 218,000 barrels per day (Bbl/d). Oil production amounted to 387,000 Bbl/d, down marginally by 0.2% on a year-over-year basis, due to a weaker contribution from the Delaware Basin.
DVN’s Realized Prices
Realized oil prices (including cash settlements) for the quarter were $67.94 per barrel, down 1.7% from $69.15 in the year-ago period. Realized prices for natural gas liquids were $17.80 per barrel, down 18.8% from $21.93 in the prior-year quarter.
Realized gas prices were $1.68 per thousand cubic feet, indicating a decline of 32.3% from $2.48 a year ago.
Total oil equivalent realized prices, including cash settlements, were $38.94 per Boe, down nearly 8.3% year over year.
Highlights of DVN’s Q1 Release
Total production expenses in the first quarter were $894 million, down 19.7% year over year.
Devon Energy bought back $69 million worth of shares in the first quarter. Looking ahead, management has outlined plans to introduce a new share repurchase program exceeding $5 billion and to raise the quarterly fixed dividend, subject to board approval following the completion of the Coterra merger.
Devon Energy’s Merger Update
On Feb. 2, 2026, Devon Energy agreed to merge with Coterra Energy in an all-stock deal, creating one of the world’s largest shale operators with a strong foothold in the core of the Delaware Basin. The combined company, which will retain the Devon Energy name, is expected to drive significant shareholder value through greater scale, improved margins, higher free cash flow and about $1 billion in annual pre-tax synergies by the end of 2027.
The merger received shareholder approval on May 4 and is expected to close around May 7, 2026. After completion, Devon Energy’s shareholders will hold roughly 54% of the combined entity, while Coterra/’s shareholders will own about 46% on a fully diluted basis.
Financial Highlights of DVN
As of March 31, 2026, the company had cash and cash equivalents (including restricted cash) of $1.81 billion compared with $1.43 billion as of Dec. 31, 2025.
Long-term debt amounted to $7.387 billion as of March 31, 2026, down from $7.391 billion as of Dec. 31, 2025.
Devon Energy’s net cash from operating activities was $1.65 billion in first-quarter 2026 compared with $1.94 billion in first-quarter 2025. Capital expenditures in first-quarter totaled $839 million, down $934 million invested in first-quarter 2025.
Devon Energy’s Guidance
Second-quarter production is expected in the range of 851,000-868,000 Boe/d and capital spending is estimated in the band of $875-$925 million.
Devon Energy’s Zacks Rank
Devon currently carries a Zacks Rank #2 (Buy). 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 2026 operating earnings of $2.45 (€2.10) per share, which surpassed the Zacks Consensus Estimate of $1.99 by 23.1%. The bottom line improved 34% from the year-ago figure of $1.83 (€1.74).
Total revenues for the first quarter were $49.51 billion, which increased from the year-ago reported figure of $47.9 billion by 3.36%. The metric beat the Zacks Consensus Estimate of $46.85 billion by 5.9%.
Occidental Petroleum Corporation (OXY - Free Report) reported first-quarter 2026 operating earnings of $1.06 per share, which beat the Zacks Consensus Estimate of 65 cents by 63.08%. The bottom line also increased 21.8% from 87 cents in the year-ago quarter.
The company reported revenues of $5.1 billion, which lagged the Zacks Consensus Estimate of $5.49 billion by 7.04%. The top line also dropped 25.3% from the prior-year quarter’s $6.84 billion.
CNX Resources Corporation (CNX - Free Report) reported first-quarter 2026 operating earnings of $1.21 per share, which beat the Zacks Consensus Estimate of 93 cents by 30.11%. The bottom line increased 55.13% in the year-ago quarter.
The company reported revenues of $722 million, which topped the Zacks Consensus Estimate of $522 million by 38.31%. The top line rose 63.72% from the prior-year quarter’s $441 million.