Devon Energy(DVN) - 2025 Q3 - Quarterly Results

Financial Performance - Total revenues for Q3 2025 reached $4.33 billion, a slight increase from $4.28 billion in Q3 2024[3] - The company reported net earnings of $693 million for Q3 2025, compared to $975 million in Q3 2024, representing a decrease of 29%[3] - Basic net earnings per share were $1.09 in Q3 2025, down from $1.42 in Q3 2024[3] - Total GAAP earnings for Q3 2025 were $693 million, down from $917 million in Q2 2025, reflecting a decrease of approximately 24.5%[23] - Core earnings (Non-GAAP) for Q3 2025 were $662 million, compared to $554 million in Q2 2025, representing an increase of about 19.5%[23] Revenue Sources - Oil, gas, and NGL sales amounted to $2.80 billion in Q3 2025, compared to $2.71 billion in Q3 2024, reflecting a year-over-year growth of 3.3%[3] Expenses and Costs - Production expenses totaled $895 million in Q3 2025, down from $912 million in Q2 2025, indicating a reduction of 1.4%[5] - Lease operating expenses were $481 million in Q3 2025, slightly lower than $483 million in Q2 2025[5] - Production taxes were reported at $184 million in Q3 2025, slightly up from $180 million in Q2 2025[5] - Net financing costs decreased to $109 million in Q3 2025 from $116 million in Q2 2025, reflecting a reduction in interest income[6] - Income tax expense for Q3 2025 was $219 million, a decrease from $244 million in Q2 2025, primarily due to a current tax benefit of $44 million[7] Cash Flow and Capital Management - Free cash flow for Q3 2025 was not explicitly stated but is a key metric for assessing financial health and reinvestment potential[3] - Net cash from operating activities was $1,690 million in Q3 2025, up from $1,545 million in Q2 2025, indicating strong operational performance[9] - Capital expenditures for Q3 2025 were $870 million, a decrease from $956 million in Q2 2025, reflecting a more disciplined investment approach[9] - The company repurchased $250 million of common stock in Q3 2025, consistent with its strategy to return capital to shareholders[9] - Free cash flow for Q3 2025 was $820 million, up from $589 million in Q2 2025, marking a significant increase of about 39.2%[33] Assets and Liabilities - Total current assets decreased to $3,867 million in Q3 2025 from $4,323 million in Q2 2025, driven by a decline in cash and cash equivalents[8] - Total liabilities increased to $15,871 million in Q3 2025 from $15,537 million in Q2 2025, with long-term debt decreasing to $7,393 million[8] - Net debt as of Q3 2025 was $7,113 million, slightly down from $7,119 million in Q2 2025, indicating a stable debt position[30] Production and Capital Expenditures - Total upstream capital expenditures for Q3 2025 were $810 million, a decrease from $860 million in Q2 2025[11] - The Delaware Basin accounted for $457 million in capital expenditures in Q3 2025, down from $472 million in Q2 2025[11] - Total capital expenditures, including acquisitions, reached $1,056 million in Q3 2025, compared to $948 million in Q2 2025[11] Pricing and Margins - Realized oil pricing for Q3 2025 was $64.92 per barrel, slightly up from $63.95 in Q2 2025[16] - Natural gas pricing averaged $3.07 per Mcf in Q3 2025, down from $3.44 in Q2 2025[16] - The realized price for oil in the Delaware Basin was $63.89 per barrel in Q3 2025, a decrease from $74.24 in Q3 2024, reflecting a year-over-year decline of approximately 14.0%[17] - The average realized price for natural gas liquids in the Delaware Basin was $18.25 per barrel in Q3 2025, down from $19.21 in Q3 2024, indicating a decrease of about 5.0%[17] - The total oil equivalent realized price in the Delaware Basin was $36.18 per Boe in Q3 2025, compared to $39.85 in Q3 2024, representing a decline of approximately 9.0%[19] - The field-level cash margin for the Delaware Basin was $25.34 per Boe in Q3 2025, an increase from $24.58 in Q2 2025, showing a quarter-over-quarter growth of about 3.1%[19] - The realized price for Eagle Ford oil was $48.85 per barrel in Q3 2025, a slight decrease from $50.89 in Q3 2024, reflecting a decline of about 4.1%[19] - The field-level cash margin for the Eagle Ford was $35.86 per Boe in Q3 2025, consistent with $35.84 in Q2 2025, indicating stability in margins[19] Guidance and Future Outlook - Production guidance for Q4 2025 estimates oil output between 383 MBbls/d and 388 MBbls/d[37] - Total capital expenditures guidance for Q4 2025 is projected to be between $890 million and $950 million[38] - Current income tax rate guidance for Q4 2025 is expected to be between 7% and 9%[41]