Devon Energy(US:DVN)2025-05-07 16:00Financial Performance - Net earnings for Q1 2025 were $494 million, or $0.77 per diluted share, while core earnings were $779 million, or $1.21 per diluted share[156]. - Net earnings for Q1 2025 were $509 million, down from $609 million in Q1 2024, reflecting a decrease of approximately 16.4%[175]. - Core earnings attributable to Devon (Non-GAAP) for Q1 2025 were $794 million, compared to $743 million in Q1 2024, reflecting a 6.9% increase[232]. - EBITDAX for Q1 2025 was $2.086 billion, up from $1.791 billion in Q1 2024, indicating a 16.5% growth[238]. - Field-level cash margin for Q1 2025 was $2,214 million, with a cash margin per BOE of $30.16, slightly down from $31.09 in Q1 2024[184]. - Field-level cash margin for Q1 2025 reached $2.214 billion, compared to $1.878 billion in Q1 2024, marking an 17.9% increase[238]. - The effective income tax rate remained stable at 21% for both Q1 2025 and Q1 2024, with total income tax expense decreasing to $137 million from $159 million[191]. Production and Operations - In Q1 2025, oil production totaled 388 MBbls/d, exceeding the plan by 1%[156]. - Total production volumes increased by 23% from Q1 2024 to Q1 2025, reaching 815 MBoe/d, driven by the Grayson Mill acquisition and new well activity[177][178]. - Production expenses increased by 4% to $912 million in Q1 2025, primarily due to new well activity in the Delaware Basin and Rockies[166]. - Production expenses rose by 21% to $912 million in Q1 2025, primarily due to increased activity in the Rockies related to the Grayson Mill acquisition[182]. - The company has approximately 30% and 35% of its remaining anticipated 2025 oil and gas production hedged, respectively[163]. - Devon's production expenses include lease operating, gathering, processing, and transportation expenses, which are critical for calculating Field-Level Cash Margin[233]. Cash Flow and Capital Expenditures - The company generated $1.9 billion of operating cash flow in Q1 2025, with a total of $6.8 billion for the past twelve trailing months[156]. - Operating cash flow for Q1 2025 was $1,942 million, up from $1,738 million in Q1 2024, representing an increase of approximately 12%[193]. - Total capital expenditures for Q1 2025 were $934 million, compared to $894 million in Q1 2024, reflecting a year-over-year increase of about 4.5%[196]. - The company expects capital expenditures for the remainder of 2025 to be approximately $2.7 billion to $2.9 billion[223]. Shareholder Returns - The company completed approximately 73% of its $5.0 billion share repurchase program, purchasing about 77.5 million shares for approximately $3.6 billion[156]. - Share repurchases amounted to $301 million in Q1 2025, compared to $205 million in Q1 2024, indicating a 46.8% increase in shareholder return through buybacks[201]. - The fixed dividend was raised by 9% from $0.22 to $0.24 per share in Q1 2025, with total dividends paid amounting to $163 million[203]. Asset Management - The company reported asset impairments of $254 million in Q1 2025, resulting from the rationalization of two headquarters-related real estate assets[169]. - Devon's asset impairments for Q1 2025 totaled $254 million, compared to no impairments reported in Q1 2024[238]. - Devon agreed to sell its investment in Matterhorn for approximately $375 million, with proceeds aimed at strengthening its financial position[224]. Cost Management - G&A costs decreased by 16% to $130 million in Q1 2025, primarily due to lower labor and benefit costs[171]. - General and administrative expenses increased by 14% to $130 million in Q1 2025, driven by higher employee compensation, although G&A per BOE decreased by 6%[187]. - Net financing costs increased to $123 million in Q1 2025, up from $76 million in Q1 2024, reflecting changes in debt management strategies[188]. - The company recognized a $542 million increase in earnings due to higher production volumes from the Grayson Mill acquisition and new well activity[178]. Market Conditions - Realized prices for unhedged oil increased by 2% to $69.13 per barrel, while unhedged gas prices rose by 96% to $2.55 per Mcf[162]. - Realized prices for oil decreased by 8% to $69.13 per Bbl in Q1 2025, while gas prices increased by 97% to $2.55 per Mcf, contributing to a $45 million decrease in earnings[179]. - A 10% change in the forward curves of commodity derivatives would have impacted Devon's net positions by approximately $275 million as of March 31, 2025[240].