Financial Performance - Devon Energy delivered $1.0 billion in free cash flow in Q1 2025[2] - The company returned $464 million to shareholders through dividends and share repurchases[3] - Q1 2025 saw $163 million paid in dividends and $301 million in share repurchases[3, 21] - The company's cash balance increased to $1.2 billion[2] Operational Highlights - Oil production averaged 388,000 barrels per day, exceeding guidance[2, 11] - Capital spending was $964 million, 5% under midpoint guidance[2, 11] - The reinvestment rate was reduced to 50% of operating cash flow[2, 11] Future Outlook and Strategy - Devon launched a Business Optimization Plan targeting $1 billion in annual pre-tax free cash flow improvement by year-end 2026[3, 35] - The company anticipates $3.7 - $3.9 billion in total capital spending[22] - Devon expects to retire $2.5 billion in absolute debt[27]

分组1 - Devon Energy reported quarterly earnings of $1.21 per share, missing the Zacks Consensus Estimate of $1.27 per share, but showing an increase from $1.16 per share a year ago, resulting in an earnings surprise of -4.72% [1] - The company posted revenues of $4.45 billion for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 2.05%, compared to year-ago revenues of $3.6 billion [2] - Over the last four quarters, Devon Energy has surpassed consensus EPS estimates three times and topped consensus revenue estimates four times [2] 分组2 - The stock has underperformed the market, losing about 6.5% since the beginning of the year, compared to the S&P 500's decline of -3.9% [3] - The current consensus EPS estimate for the coming quarter is $0.98 on $4.06 billion in revenues, and for the current fiscal year, it is $4.34 on $16.81 billion in revenues [7] - The Zacks Industry Rank for Oil and Gas - Exploration and Production - United States is currently in the bottom 24% of over 250 Zacks industries, indicating potential challenges for stock performance [8]

Financial Performance - Total revenues for Q1 2025 reached $4.45 billion, a slight increase from $4.40 billion in Q4 2024[3] - The company reported net earnings of $509 million for Q1 2025, down from $653 million in Q4 2024[3] - Basic net earnings per share were $0.77 in Q1 2025, compared to $0.98 in Q4 2024[3] - Net financing costs for Q1 2025 were $123 million, consistent with Q4 2024, and up from $76 million in Q1 2024[6] - Total income tax expense for Q1 2025 was $137 million, a decrease from $187 million in Q4 2024 and $239 million in Q3 2024[7] - Devon's net earnings for Q1 2025 were $509 million, with core earnings (non-GAAP) at $794 million, translating to $1.21 per diluted share[23] - EBITDAX (non-GAAP) for Q1 2025 was $2.086 billion, reflecting a net debt-to-EBITDAX ratio of 1.0[29] - Free cash flow (non-GAAP) for Q1 2025 was $1.008 billion, with total operating cash flow at $1.942 billion[31] Production and Sales - Oil, gas, and NGL sales amounted to $3.12 billion in Q1 2025, compared to $3.08 billion in Q4 2024[3] - Total production in Q1 2025 was 388 MBoe/d, a decrease from 398 MBoe/d in Q4 2024[11] - Production guidance for Q2 2025 includes oil at 381-387 MBbls/d and total oil equivalent at 810-828 MBoe/d[35] Expenses and Capital Expenditures - Production expenses totaled $912 million in Q1 2025, up from $881 million in Q4 2024, reflecting a 3.5% increase[5] - Lease operating expenses increased to $479 million in Q1 2025, compared to $445 million in Q4 2024, marking a 7.6% rise[5] - Capital expenditures in Q1 2025 were $934 million, slightly higher than $926 million in Q4 2024[10] - Total capital expenditures for Q1 2025 amounted to $964 million, an increase from $926 million in Q4 2024[12] - Upstream capital expenditures reached $908 million in Q1 2025, compared to $872 million in Q4 2024, reflecting a 4.1% increase[12] - The company plans to increase capital expenditures by 10% in 2025 to support new projects and technology advancements[3] - Upstream capital expenditures guidance for 2025 is set between $3.475 billion and $3.625 billion[36] Debt and Equity - The net debt-to-EBITDAX ratio was reported at 1.5x, indicating a stable leverage position[3] - Total debt as of Q1 2025 was $8.880 billion, with net debt (non-GAAP) at $7.646 billion after accounting for cash and cash equivalents[27] - Long-term debt remained stable at $8,395 million in Q1 2025 compared to $8,398 million in Q4 2024[9] - Total stockholders' equity attributable to the company increased to $14,545 million in Q1 2025 from $14,496 million in Q4 2024[9] Cash Flow and Assets - Net cash from operating activities for Q1 2025 was $1,942 million, up from $1,664 million in Q4 2024[10] - Cash, cash equivalents, and restricted cash at the end of Q1 2025 were $1,234 million, up from $846 million at the end of Q4 2024[10] - Total current assets increased to $3,905 million in Q1 2025 from $3,427 million in Q4 2024, driven by higher cash and accounts receivable[9] Market and Pricing - Realized price for oil in the Delaware Basin was $70.28 per barrel in Q1 2025, slightly up from $69.06 in Q4 2024[17] - The realized price for natural gas in the Delaware Basin was $2.47 per Mcf in Q1 2025, significantly higher than $1.01 in Q4 2024[17] - Field-level cash margin in the Delaware Basin was $31.13 per barrel in Q1 2025, up from $28.90 in Q4 2024[19] Hedging and Guidance - Devon has hedged 15,000 Bbls/d at an average price of $72.18 for Q2 2025[40] - Q2 2025 natural gas price swaps volume is 342,000 MMBtu/d at an average price of $3.36/MMBtu[42] - Oil price realizations guidance for Q2 2025 is projected at 95%-99% of WTI[37] - Current income tax rate guidance for Q2 2025 is estimated between 14% and 16%[39]

Core Viewpoint - Devon Energy Corp. reported its financial and operational results for Q1 2025, declared its quarterly dividend, and provided an updated outlook for 2025 [1] Financial Results - The company’s earnings release, supplemental financial tables, guidance, and related earnings presentation are available on its Investor Relations website [1] Conference Call - A conference call for Q1 results will take place on May 7, 2025, at 10:00 a.m. Central time, primarily for analyst and investor Q&A [2] Company Overview - Devon Energy is a leading oil and gas producer in the U.S. with a diversified multi-basin portfolio, particularly noted for its position in the Delaware Basin [3] - The company employs a disciplined cash-return business model aimed at achieving strong returns, generating free cash flow, and returning capital to shareholders while maintaining safe and sustainable operations [3]

Core Viewpoint - Devon Energy (DVN) is expected to report quarterly earnings of $1.27 per share, a 9.5% increase year-over-year, with revenues projected at $4.36 billion, reflecting a 21.3% year-over-year increase [1]. Earnings Estimates - Over the past 30 days, the consensus EPS estimate has been revised downward by 13.7%, indicating a reassessment by analysts [2]. - Changes in earnings estimates are crucial for predicting investor reactions, as empirical studies show a strong correlation between earnings estimate revisions and short-term stock performance [3]. Revenue Projections - Analysts project 'Revenues - Marketing and midstream revenues' to reach $1.27 billion, a 14% increase from the previous year [5]. - 'Revenues - Oil, gas and NGL sales' are expected to be $3.10 billion, representing a 17.9% year-over-year increase [5]. Production Estimates - Total oil equivalent production is estimated at 817.20 million barrels per day, up from 664 million barrels in the same quarter last year [6]. - Average Daily Production - Total Oil is projected at 383.85 million barrels, compared to 319 million barrels in the previous year [6]. - Average Daily Production - Total Gas is expected to be 1,329.95 million cubic feet, an increase from 1,079 million cubic feet year-over-year [7]. - Average Daily Production - Total NGL is estimated at 211.10 million barrels, up from 165 million barrels in the same quarter last year [7]. Price Estimates - The average realized price per barrel of oil is forecasted to be $68.99, down from $75.15 in the previous year [8]. - Production - Oil - Other is expected to reach 3.91 million barrels per day, compared to 4 million barrels in the same quarter last year [8]. Regional Production Insights - Production - Oil - Anadarko Basin is projected at 12.65 million barrels per day, up from 11 million barrels last year [9]. - Production - Oil - Eagle Ford is expected to reach 46.66 million barrels per day, compared to 43 million barrels in the same quarter last year [9]. - Production - NGL - Eagle Ford is estimated at 19.91 million barrels per day, up from 14 million barrels year-over-year [10]. - Production - NGL - Anadarko Basin is projected to be 29.44 million barrels per day, compared to 26 million barrels last year [10]. Stock Performance - Devon Energy shares have decreased by 6% over the past month, contrasting with a -0.5% change in the Zacks S&P 500 composite [11].

Devon Energy Corporation (DVN) is expected to report an improvement in its top line and a decline in its bottom line when it reports 2024 results on May 6, after market close. (See the Zacks Earnings Calendar to stay ahead of market-making news.)The Zacks Consensus Estimate for DVN’s first-quarter revenues is pegged at $4.36 billion, indicating growth of 21.31% from the year-ago reported figure.The Zacks Consensus Estimate for earnings is pegged at $1.27 per share. The Zacks Consensus Estimate for DVN’s fir ...

Industry Overview - The oil and gas industry is crucial for the global economy, providing primary energy sources for various sectors including transportation and manufacturing [1] - Despite the shift towards renewable energy, oil and gas remain essential due to their high energy density and established infrastructure [1] Devon Energy Corporation (DVN) - Devon Energy is a leading independent oil and natural gas exploration and production company in the U.S., focusing on high-quality assets and strategic acquisitions to enhance production [2] - The company has been managing costs effectively by selling higher-cost assets and bringing lower-cost production assets online [2] - Devon's earnings estimates indicate a year-over-year decline of 5.81% for 2025, with a slight growth of 1.1% expected in 2026 [5] - Current dividend yield for Devon Energy is 3.07%, with 11 dividend increases in the past five years [20] - Devon Energy's debt to capital ratio is 36.35%, indicating a lower reliance on debt compared to its peers [14] - The company plans to invest between $3.8 billion and $4 billion in 2025, following a $3.64 billion investment in 2024 [18] Occidental Petroleum Corporation (OXY) - Occidental Petroleum operates across upstream exploration, midstream logistics, and chemical manufacturing, focusing on strong hydrocarbon volumes [3] - The company's earnings estimates suggest a significant year-over-year decline of 26.01% for 2025, with a recovery of 19.42% expected in 2026 [9] - Current dividend yield for Occidental Petroleum is 2.38%, with five dividend increases in the past five years [20] - Occidental's debt to capital ratio stands at 42.01%, indicating a higher reliance on debt compared to Devon [14] - The company plans to invest between $7.4 billion and $7.6 billion in 2025, following over $7 billion in investments to strengthen operations [19] Comparative Analysis - Devon Energy has a higher return on equity (ROE) of 22.52% compared to Occidental's 16.33%, both exceeding the sector average of 15.44% [11] - Devon Energy is trading at a lower EV/EBITDA ratio of 3.76X compared to Occidental's 5.09X, while the sector average is 4.38X [15] - In the past three months, Devon Energy shares declined by 11.1%, while Occidental's shares fell by 15.8% [22] - Devon Energy's strategic focus on multi-basin domestic assets provides a competitive edge, helping to mitigate geopolitical and regulatory risks faced by Occidental [24][25]

Devon Energy (DVN) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended March 2025. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.The earnings report, which is expected to be released on May 6, 2025, might help the stock move higher if these key numbers are better than expect ...

Group 1 - The company is implementing a business optimization plan aimed at enhancing margins and achieving $1,000 million in annual pre-tax cash flow improvements by the end of 2026 [1] - The oil and gas industry is experiencing rising commodity prices and shareholder dividends, which presents both opportunities and risks for income investors [3] - The platform offers deep dive analysis covering a wide range of companies in the oil and gas sector, including pipelines, renewables, and producers, with a track record of outperforming benchmarks [4]

Company Performance - Devon Energy's stock closed at $31.47, reflecting a +1.25% change from the previous day, underperforming the S&P 500's +2.03% gain [1] - Over the past month, Devon Energy shares have decreased by 17.05%, compared to a 10.82% loss in the Oils-Energy sector and a 5.07% loss in the S&P 500 [1] Upcoming Earnings - The upcoming earnings report for Devon Energy is scheduled for May 6, 2025, with analysts expecting earnings of $1.25 per share, indicating a year-over-year growth of 7.76% [2] - Revenue is forecasted to be $4.36 billion, representing a 21.26% increase compared to the same quarter last year [2] Full Year Estimates - For the full year, earnings are projected at $4.54 per share, a decrease of 5.81% from the previous year, while revenue is expected to reach $17.01 billion, reflecting a growth of 6.72% [3] - Recent changes in analyst estimates for Devon Energy are crucial as they indicate shifting business trends, with positive revisions suggesting a favorable business outlook [3] Valuation Metrics - Devon Energy currently has a Forward P/E ratio of 6.85, which is lower than the industry average of 7.65, indicating a valuation discount [5] - The company has a PEG ratio of 0.62, compared to the industry average PEG ratio of 0.92, suggesting that the stock may be undervalued relative to its growth expectations [6] Industry Context - The Oil and Gas - Exploration and Production - United States industry, which includes Devon Energy, has a Zacks Industry Rank of 197, placing it in the bottom 21% of over 250 industries [7] - The Zacks Industry Rank measures the strength of industry groups, with the top 50% rated industries outperforming the bottom half by a factor of 2 to 1 [7]