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Devon Energy (DVN) Q4 Earnings Beat Estimates, Revenues Lag

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Devon Energy Corp. (DVN - Free Report) reported fourth-quarter 2019 adjusted earnings per share of 33 cents, which beat the Zacks Consensus Estimate of 29 cents by 13.8%.
 
Revenues

However, quarterly revenues of $1,589 million missed the Zacks Consensus Estimate of $1,835 million by 13.4%. Moreover, total revenues declined 55% from the year-ago quarter’s figure of $3,530 million.

Highlights of the Release

Total net production from Devon’s retained assets in fourth-quarter 2019 touched 340,000 barrels of oil equivalent per day (Boe/d). Oil production averaged 160,000 barrels per day, touched the upper end of the guidance of 154,000-160,000 barrels per day. Oil production increased 28% on a year over year basis courtesy of strong well productivity and timing of completions in the Delaware Basin.

To reward shareholders, the company is paying out steady quarterly common stock dividend. The company announced that its board of directors approved a 22% increase to its quarterly common stock dividend to 11 cents per share, up from the prior rate of 9 cents. The new quarterly dividend rate is effective in the second quarter of 2020.

During the reported quarter, total expenses declined 7% year over year to $1,610 million.
 
Devon repurchased shares worth $1.85 billion in 2019. The company’s board of directors announced its new $1 billion share repurchase program.

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

 

Realized Prices

Realized oil prices in the quarter were $56.89 per barrel, up 0.6% from $56.56 in the year-ago quarter’s figure. Realized prices for natural gas were down 21.4% to $1.83 per thousand cubic feet from $2.33 in the prior-year quarter.

Total realized prices, including cash settlements, were $34.14 per Boe, down 0.6% year over year.

Financial Health

As of Dec 31, 2019, the company generated cash and cash equivalents of $1,464 million, down from $2,414 million recorded in the corresponding period of 2018. As of Dec 31, 2019, long-term debt amounted to $4,294 million, up from $4,292 million on Dec 31, 2018.

Devon Energy’s net cash from operating activities from continuing operations in 2019 was $2,043 million.
 
Guidance

Devon Energy estimates total production from its assets in the first quarter of 2020 in the range of 328,000-342,000 Boe/d. The same for 2020 is expected in the range of 328,000-339,000 Boe/d.
 
Capital expenditure for 2020 is expected within $1,720-$1,880 million, while $425-$480 million is anticipated to be invested in the first quarter.

Other Releases

CNX Resources Corporation (CNX - Free Report) reported fourth-quarter 2019 adjusted earnings of 12 cents per share against the Zacks Consensus Estimate of a loss of 5 cents.

Murphy Oil Corporation (MUR - Free Report) reported fourth-quarter 2019 adjusted earnings of 16 cents per share, which beat the Zacks Consensus Estimate of 12 cents by 33.3%.

Panhandle Oil & Gas came out with quarterly earnings of 23 cents per share against the Zacks Consensus Estimate of a loss of 1 cent per share.

Zacks Rank

Devon Energy currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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