Devon Q3 Earnings & Sales Beat Estimates on Strong Production Volumes

Core Insights - Devon Energy Corp. reported third-quarter 2025 earnings per share (EPS) of $1.04, exceeding the Zacks Consensus Estimate of 93 cents by 11.8%, although down 5.5% year over year [1][9] - Total revenues for the quarter were $4.33 billion, surpassing the Zacks Consensus Estimate of $4.11 billion by 5.17% [3][9] Financial Performance - GAAP EPS for the quarter was $1.09, compared to $1.41 in the same quarter last year, with differences attributed to asset disposition gains and other financial adjustments [2] - Net cash from operating activities was $1.69 billion, slightly up from $1.66 billion in the third quarter of 2024 [11] - Total production expenses increased to $895 million, reflecting a 17.3% year-over-year rise [7] Production Metrics - Net production totaled 853,000 barrels of oil equivalent per day (Boe/d), marking a 17.2% increase year over year and exceeding the guidance range of 829,000-847,000 Boe/d [4][9] - Oil production reached 390,000 barrels per day, up 16.4% year over year, driven by strong performance in the Rockies region [5] Pricing and Realized Prices - Realized oil prices were $63.99 per barrel, down 13.8% from $74.26 a year ago, while realized prices for natural gas liquids decreased by 11.3% to $17.18 per barrel [6] - Total oil equivalent realized prices, including cash settlements, were $36.46 per Boe, down nearly 10.4% year over year [6][8] Shareholder Returns and Debt Management - Devon repurchased shares worth $250 million and paid dividends of $151 million to shareholders during the quarter [7] - Long-term debt decreased to $7.39 billion as of September 30, 2025, down from $8.88 billion at the end of 2024 [10] Future Guidance - For the fourth quarter, production is expected to be in the range of 828,000-844,000 Boe/d, with capital spending estimated between $0.89 billion and $0.95 billion [12] - In 2026, the company aims to maintain production levels between 835,000-855,000 Boe/d, with capital expenditures projected at $3.5 billion to $3.7 billion [13]