Acquisition and Business Expansion - The company acquired Grayson Mill's Williston Basin business for approximately $5.0 billion, consisting of $3.5 billion in cash and 37.3 million shares of common stock[148]. - The Grayson Mill acquisition was completed for $3.5 billion in cash and approximately 37.3 million shares of common stock, enhancing production and operational scale[184]. - The company acquired Grayson Mill in 2024, contributing total assets of $5.6 billion and total revenues of $687 million[257]. Production and Operational Performance - In 2024, oil production totaled 347 MBbls/d, an 8% increase year over year, with significant contributions from the Delaware Basin and Rockies[150][160]. - The company expects production volumes to increase in 2025, ranging from approximately 805 to 825 MBoe/d due to the Grayson Mill acquisition[161]. - Total production expenses increased by 9% from $2,928 million in 2023 to $3,183 million in 2024, driven by higher activity levels and the Grayson Mill acquisition[166]. Financial Performance - Net earnings for 2024 were $2.9 billion, down from $3.8 billion in 2023, reflecting changes in commodity prices and production volumes[158]. - The company generated $6.6 billion of operating cash flow in 2024, consistent with 2023, despite a decline in commodity prices[153]. - Total revenues for the year ended December 31, 2024, were $15.94 billion, an increase from $15.26 billion in 2023, representing a growth of 4.5%[270]. - Oil, gas, and NGL sales increased to $11.18 billion in 2024 from $10.79 billion in 2023, marking a rise of 3.6%[270]. - The company recorded a depletion expense of $3.3 billion for the year ended December 31, 2024[265]. Shareholder Returns and Capital Management - The company returned approximately $2.0 billion to shareholders through dividends and share repurchases in 2024[154]. - The company repurchased 24.2 million shares for $1.1 billion in 2024, compared to 19.1 million shares for $979 million in 2023[189]. - The company raised its fixed dividend by 9% to $0.24 per share, expected to total approximately $156 million in the first quarter of 2025[210]. Cost and Expense Management - General and administrative expenses rose by 23% from $408 million in 2023 to $500 million in 2024, largely due to higher employee compensation and non-labor costs related to technology upgrades[170]. - Depreciation, depletion, and amortization (DD&A) increased by 27% from $2,554 million in 2023 to $3,255 million in 2024, primarily due to higher production volumes and increased DD&A rates[169]. - The company expects to mitigate cost inflation through operational efficiencies and long-standing supplier relationships[200]. Commodity Price and Risk Management - WTI oil prices averaged $75.79 per Bbl in 2024, a decrease from $77.62 per Bbl in 2023, indicating ongoing price volatility[155]. - Realized prices for oil, gas, and NGLs contributed to a $700 million decrease in earnings from 2023 to 2024, primarily due to lower WTI and Henry Hub index prices[163]. - The company has approximately 30% of its anticipated 2025 oil and gas production hedged to mitigate commodity price volatility[155][152]. - The company systematically hedges a portion of its production to manage pricing volatility in oil and gas markets[247]. Debt and Liquidity - Total debt as of December 31, 2024, was $8.9 billion, with $7.9 billion in fixed-rate debt averaging 5.7%[249]. - The company maintains a debt-to-capitalization ratio of 26.5%, well below the 65% limit set by its credit facility[203]. - As of December 31, 2024, the company had approximately $3.0 billion of available borrowing capacity under its 2023 Senior Credit Facility[202]. Asset Management and Reserves - 89% of the company's proved reserves were subjected to third-party audits in 2024, reflecting a commitment to transparency and accuracy in reserve estimates[225]. - The company has approximately $1.9 billion of undeveloped leasehold costs as of December 31, 2024, with none scheduled to expire in 2025[224]. - Devon's oil and gas properties are accounted for using the successful efforts method, with exploration costs charged against earnings as incurred[329].

Devon Energy (DVN) Q4 2024 Earnings Call February 19, 2025 11:00 AM ET Company Participants Rosy Zuklic - VP - Investor RelationsRick Muncrief - President and CEOClay Gaspar - EVP & COOJeff Ritenour - EVP & CFOScott Hanold - Managing Director - Energy ResearchNeal Dingmann - Managing Director - Energy ResearchNeil Mehta - Head of Americas Natural Resources Equity ResearchArun Jayaram - Vice PresidentKevin MacCurdy - Managing DirectorJohn Freeman - Managing DirectorMatthew Portillo - Partner & Head of Resear ...

A much more stark dichotomy of opinions seems to have formed regarding what the near future holds for Devon (NYSE: DVN ). If one were to listen to every opinionAnalyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in DVN over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not re ...

Q4 2024 Earnings Presentation February 18, 2025 NYSE: DVN devonenergy.com 2024 – A Year of Outstanding Achievement CONSISTENT PRODUCTION GROWTH TOTAL PRODUCTION BY PRODUCT (MBOED) 0 200 400 600 800 2021 2022 2023 2024 OIL NGLs GAS 572 610 658 737 | Q4 2024 Earnings Presentation 2 Q4 2024 – Executing on Our Operating Plan Efficient capital spending Upstream capital ($ in millions) Q4 24 Guidance Q4 2024 Result 3% CAPITAL BEAT $895 $872 Expanding oil production Oil production (MBOD) Q4 24 Guidance Q4 2024 Res ...

Core Insights - Devon Energy reported revenue of $4.4 billion for the quarter ended December 2024, reflecting a 6.2% increase year-over-year and a surprise of +3.93% over the Zacks Consensus Estimate of $4.24 billion [1] - The company's EPS was $1.16, down from $1.41 in the same quarter last year, with an EPS surprise of +16.00% compared to the consensus estimate of $1.00 [1] Financial Performance - Total oil equivalent production was 848 million barrels per day, exceeding the seven-analyst average estimate of 821 million barrels [4] - Average daily oil production was 398 million barrels, surpassing the six-analyst average estimate of 386.04 million barrels [4] - Average daily gas production reached 1,371 million cubic feet, above the six-analyst average estimate of 1,321.45 million cubic feet [4] - Average daily NGL production was 221 million barrels, compared to the six-analyst average estimate of 214.77 million barrels [4] Revenue Breakdown - Marketing and midstream revenues were reported at $1.40 billion, exceeding the average estimate of $1.22 billion and representing a year-over-year increase of +29.2% [4] - Oil, gas, and NGL sales amounted to $3.09 billion, surpassing the four-analyst average estimate of $2.96 billion, with a year-over-year change of +12.8% [4] - Oil, gas, and NGL derivatives reported a loss of -$84 million, contrasting with the two-analyst average estimate of $74.38 million, indicating a year-over-year change of -125.9% [4] Stock Performance - Devon Energy's shares have returned -8.7% over the past month, while the Zacks S&P 500 composite increased by +4.7% [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]

Devon Energy (DVN) came out with quarterly earnings of $1.16 per share, beating the Zacks Consensus Estimate of $1 per share. This compares to earnings of $1.41 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 16%. A quarter ago, it was expected that this oil and gas exploration company would post earnings of $1.06 per share when it actually produced earnings of $1.10, delivering a surprise of 3.77%.Over the last four quarters, ...

OKLAHOMA CITY, Feb. 18, 2025 (GLOBE NEWSWIRE) -- Devon Energy Corp. (NYSE: DVN) today reported financial and operational results for the fourth-quarter 2024. The company also declared its quarterly dividend and provided a 2025 outlook. Devon’s earnings release, supplemental financial tables, guidance and related earnings presentation can be accessed via the Investor Relations section of Devon’s website, www.devonenergy.com. The company’s fourth-quarter conference call will be held at 10:00 a.m. Central time ...

Core Viewpoint - Analysts project that Devon Energy (DVN) will report quarterly earnings of $1 per share, reflecting a year-over-year decline of 29.1%, while revenues are expected to reach $4.24 billion, an increase of 2.2% from the same quarter last year [1]. Earnings Estimates - Over the past 30 days, the consensus EPS estimate for the quarter has been revised upward by 11.3%, indicating a collective reassessment by covering analysts [2]. - Revisions to earnings estimates are crucial indicators for predicting investor actions regarding the stock, with empirical research showing a strong correlation between earnings estimate trends and short-term stock price performance [3]. Revenue Projections - Analysts estimate that 'Revenues - Oil, gas and NGL sales' will reach $2.96 billion, representing an 8.3% increase year-over-year [5]. - 'Revenues - Marketing and midstream revenues' are projected to be $1.22 billion, suggesting a 13% year-over-year change [5]. - 'Revenues - Oil, gas and NGL derivatives' are expected to decline to $74.38 million, indicating a significant drop of 77% year-over-year [5]. Production Estimates - Total oil equivalent production is estimated at 821 million barrels per day, up from 662 million barrels per day in the same quarter last year [6]. - Average daily production of total oil is projected at 386.04 million barrels, compared to 317 million barrels in the same quarter last year [6]. - Average daily production of total gas is expected to be 1,321.45 million cubic feet, up from 1,061 million cubic feet in the same quarter last year [7]. - Average daily production of total NGL is forecasted to reach 214.77 million barrels, compared to 169 million barrels in the same quarter last year [7]. Specific Production Areas - Production of oil in the Anadarko Basin is expected to be 13.89 million barrels per day, slightly up from 13 million barrels per day in the same quarter last year [8]. - Production of oil in other areas is projected at 3.48 million barrels per day, down from 4 million barrels per day in the same quarter last year [8]. - NGL production in the Delaware Basin is estimated at 128.26 million barrels per day, up from 112 million barrels per day in the same quarter last year [9]. - NGL production in the Powder River Basin is expected to decline to 2.50 million barrels per day, down from 3 million barrels per day in the same quarter last year [9]. - NGL production in the Eagle Ford area is projected at 17.47 million barrels per day, compared to 15 million barrels per day in the same quarter last year [10]. Stock Performance - Devon Energy shares have decreased by 10.9% over the past month, contrasting with a 4.9% increase in the Zacks S&P 500 composite [11].

In the latest trading session, Devon Energy (DVN) closed at $34.22, marking a +0.74% move from the previous day. The stock's change was less than the S&P 500's daily gain of 1.04%. On the other hand, the Dow registered a gain of 0.77%, and the technology-centric Nasdaq increased by 1.51%.Heading into today, shares of the oil and gas exploration company had lost 11.61% over the past month, lagging the Oils-Energy sector's loss of 1.08% and the S&P 500's gain of 3.92% in that time.The investment community wil ...

Core Viewpoint - Devon Energy Corporation (DVN) is anticipated to show an increase in revenues but a decrease in earnings when it reports its 2024 results on February 18, after market close [1]. Revenue and Earnings Estimates - The Zacks Consensus Estimate for DVN's fourth-quarter revenues is $4.24 billion, reflecting a growth of 2.2% compared to the previous year [2]. - The Zacks Consensus Estimate for earnings is $1.00 per share, indicating a decline of 29.08% from the year-ago figure [2]. - For the current quarter (ending December 2024), the Zacks Consensus Estimate for earnings is $1.00, with a year-over-year growth estimate of -29.08% [3]. - The number of estimates for the current quarter is 9, with a high estimate of $1.08 and a low estimate of $0.94 [3]. Earnings Surprise History - DVN has consistently beaten the Zacks Consensus Estimate in the last four quarters, with an average surprise of 4.99% [4][5]. Earnings Prediction Model - The model predicts a likely earnings beat for DVN, supported by a positive Earnings ESP of +3.11% and a Zacks Rank of 3 (Hold) [6]. Factors Influencing Q4 Earnings - Devon's multi-basin portfolio and high-margin assets are expected to contribute positively to earnings [8]. - The acquisition of Grayson Mill Energy is projected to significantly increase production volumes from the Williston Basin, tripling to 150,000 Boe/d [8]. - Fourth-quarter production volumes are expected to be between 811,000 and 830,000 Boe/d, benefiting from hedging against price fluctuations [9]. - The company has reduced its outstanding debt by $1.5 billion, which is likely to lower annual interest expenses and boost earnings [10]. - Effective cost management and cash flow generation have allowed for share buybacks, positively impacting earnings [11]. Price Performance and Valuation - DVN shares have decreased by 13.7% over the past three months, compared to a 20.1% decline in the industry [14]. - The current trailing 12-month EV/EBITDA for DVN is 4.16X, significantly lower than the industry average of 11.39X, indicating relative undervaluation [15]. Investment Thesis - Devon's productive multi-basin assets and the acquisition of Grayson Mill Energy are expected to sustain high-margin production and strong free cash flow [17]. - The company is focused on reducing debt and lowering interest expenses, which will enhance financial flexibility [17]. - The competitive oil and gas industry may pose challenges for Devon in acquiring new drilling rights or properties [18]. Summary - Devon's high-quality domestic assets and balanced exposure to oil, natural gas, and NGL production, along with a low-cost production structure, are expected to enhance margins [19]. - The company is currently trading at a discount, making it an attractive option for investors [19].