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Devon Energy (DVN) to Post Q4 Earnings: What's in the Cards?

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Devon Energy Corp. (DVN - Free Report) is scheduled to release fourth-quarter 2019 results on Feb 18. In the last reported quarter, the company delivered a positive earnings surprise of 36.8%.

Let’s see how things have shaped up before the upcoming earnings announcement.

Factors to Consider

Higher production from the Powder River and Delaware basins is likely to have had a positive impact on fourth-quarter average daily oil production. Devon Energy estimates total oil production from retained assets for the fourth quarter of 2019 within 154,000-160,000 barrels per day. Total production for the quarter is expected in the range of 420,000-448,000 barrels of oil equivalent per day.

Fourth-quarter earnings are likely to have benefited from lower shares outstanding, debt reduction and cost-reduction initiatives undertaken by the company.

The Zacks Consensus Estimate for fourth-quarter earnings is pegged at 29 cents per share, indicating growth of 190% from the prior-year reported figure.

What Our Quantitative Model Predicts

Our proven model does not conclusively predict an earnings beat for Devon Energy this time around. A stock needs to have both a positive Earnings ESP  and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) to surpass estimates. That is not the case here as you will 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

Earnings ESP: The company’s Earnings ESP is 0.00%.

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

Zacks Rank: Devon Energy currently carries a Zacks Rank #2.

Stocks to Consider

Here are a few companies worth considering from the same industry that have the right combination of elements to beat on earnings in the upcoming releases.

Berry Petroleum Corporation (BRY - Free Report) is set to release fourth-quarter results on Feb 26. It has an Earnings ESP of +2.50% and a Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank stocks here.

California Resources Corporation (CRC - Free Report) is slated to release fourth-quarter results on Feb 26. It has an Earnings ESP of +0.51% and a Zacks Rank #2.

WPX Energy Inc. (WPX - Free Report) is set to release fourth-quarter results on Feb 26. It has an Earnings ESP of +0.23% and a Zacks Rank of 2.

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