Devon Q4 Earnings & Revenues Beat Estimates, Production Increases

Core Viewpoint - Devon Energy Corp. reported strong fourth-quarter 2024 earnings, exceeding expectations, driven by increased production volumes despite lower realized prices for commodities [1][4][7]. Financial Performance - The company reported fourth-quarter earnings per share (EPS) of $1.16, surpassing the Zacks Consensus Estimate of $1 by 16% [1]. - GAAP EPS for the quarter was 98 cents, down from $1.81 in the same quarter last year, with adjustments due to fair value changes and other factors [2]. - Adjusted earnings for 2024 were $4.82 per share, compared to $5.71 in 2023 [3]. - Total revenues for the quarter were $4.4 billion, exceeding the Zacks Consensus Estimate of $4.23 billion by 3.9%, and up 6.2% from the previous year [4]. Production Metrics - Net production in Q4 totaled 848,000 barrels of oil equivalent per day (Boe/d), a 28.1% increase year-over-year, exceeding guidance [5]. - Natural gas liquids production rose 30.8% year-over-year to 221,000 barrels per day (Bbl/d), while oil production increased 25.5% to 398,000 Bbl/d [6]. Price Realization - Realized oil prices for the quarter were $69.19 per barrel, down 10.1% from $76.98 a year ago, while realized prices for natural gas liquids increased by 6.8% [7]. - Total oil equivalent realized prices were $40.32 per Boe, reflecting a nearly 10.5% decline year-over-year [10]. Operational Highlights - The company achieved a 154% proven reserve replacement ratio in 2024 [8]. - Total production expenses in Q4 were $881 million, up 16.1% year-over-year, while production costs averaged $11.30 per Boe, a 1% decline from the prior period [8][9]. Shareholder Returns - Devon repurchased shares worth $301 million in Q4 and paid dividends of $144 million, with a 9% increase in the quarterly dividend for Q1 2025 [8]. Financial Position - As of December 31, 2024, cash and cash equivalents were $846 million, while long-term debt rose to $8.39 billion [13]. - Net cash from operating activities was $6.6 billion in 2024, compared to $6.54 billion in 2023, with capital expenditures totaling $3.64 billion, down 52% from the previous year [13]. Guidance - For Q1 2025, production is expected to be in the range of 805,000-825,000 Boe per day, with capital spending estimated between $0.98-$1.04 billion [14].