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Why Is Devon Energy (DVN) Up 22.1% Since Last Earnings Report?
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It has been about a month since the last earnings report for Devon Energy (DVN - Free Report) . Shares have added about 22.1% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Devon Energy due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
Devon Energy Q1 Earnings Beat Estimates, Revenues Lag
Devon Energy Corp. reported first-quarter 2021 adjusted earnings of 45 cents, beating the Zacks Consensus Estimate of 35 cents per share by 28.6%. In the year-ago quarter, the company reported earnings of 13 cents per share.
GAAP earnings for the first quarter were 32 cents compared with 27 cents per share in the year-ago period.
Revenues
Total revenues of $1,762 million lagged the Zacks Consensus Estimate by 20.5%. The top line also declined 15.6% from the year-ago figure.
Production
Total net production for first-quarter 2021 touched 499,000 barrels of oil equivalent per day (Boe/d), up 43.4% year over year. Oil production averaged 268,000 barrels per day (Bbl/d), which increased 71.8% on a year-over-year basis, primarily due to strong contribution from Delaware and Williston Basin assets. Natural gas liquids production was also up 23.8% year over year.
Realized Prices
Realized oil prices for the quarter were $47.23 per barrel, down 5.1% from $49.73 in the year-ago period. Realized prices for natural gas liquids, however, were up 125.3% to $24.81 per barrel from $11.01 in the prior-year quarter.
Realized gas prices were up 75.8% to $2.76 per thousand cubic feet from $1.57 in the prior-year quarter.
Total oil equivalent realized prices — including cash settlements — were $34.67 per Boe, up 21.1% year over year.
Other Highlights
Total production expenses for the first quarter were $489 million, increasing 53.4% year over year. With capital programs focused on developing higher-margin production opportunities, oil and natural gas liquids volumes reached 74% of Devon Energy’s product mix for the quarter.
Financing costs for the reported quarter were $77 million, up from $65 million in the year-ago period.
Financial Highlights
As of Mar 31, 2021, the company had cash and cash equivalents including restricted cash of $1,878 million, up from $2,237 million as of Dec 31, 2020. It exited the first quarter with $4.9 billion of liquidity and no debt maturities till 2023.
As of Mar 31, 2021, long-term debt amounted to $7,042 million, up marginally from $4,298 million on Dec 31, 2020.
Devon Energy’s net cash from operating activities for first-quarter 2021 was $592 million, up 11.9% from the year-ago period.
Guidance
It expects total production for the second quarter in the range of 538,000-561,000 Boe/d.
Devon Energy’s oil production guidance for 2021 is projected in the range of 280,000-290,000 BBl/d. For 2021, total production is expected in the range of 529,000-559,000 Boe/d.
Capital expenditure for 2021 is expected within $1,720-$1,980 million, including upstream expenditure in the range of $1,600-$1,800 million.
Through cost-management initiatives, the company is on course to achieve cost savings of $600 million by 2021-end.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended downward during the past month.
VGM Scores
At this time, Devon Energy has a strong Growth Score of A, though it is lagging a bit on the Momentum Score front with a B. Charting a somewhat similar path, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Devon Energy has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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Why Is Devon Energy (DVN) Up 22.1% Since Last Earnings Report?
It has been about a month since the last earnings report for Devon Energy (DVN - Free Report) . Shares have added about 22.1% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Devon Energy due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
Devon Energy Q1 Earnings Beat Estimates, Revenues Lag
Devon Energy Corp. reported first-quarter 2021 adjusted earnings of 45 cents, beating the Zacks Consensus Estimate of 35 cents per share by 28.6%. In the year-ago quarter, the company reported earnings of 13 cents per share.
GAAP earnings for the first quarter were 32 cents compared with 27 cents per share in the year-ago period.
Revenues
Total revenues of $1,762 million lagged the Zacks Consensus Estimate by 20.5%. The top line also declined 15.6% from the year-ago figure.
Production
Total net production for first-quarter 2021 touched 499,000 barrels of oil equivalent per day (Boe/d), up 43.4% year over year. Oil production averaged 268,000 barrels per day (Bbl/d), which increased 71.8% on a year-over-year basis, primarily due to strong contribution from Delaware and Williston Basin assets. Natural gas liquids production was also up 23.8% year over year.
Realized Prices
Realized oil prices for the quarter were $47.23 per barrel, down 5.1% from $49.73 in the year-ago period. Realized prices for natural gas liquids, however, were up 125.3% to $24.81 per barrel from $11.01 in the prior-year quarter.
Realized gas prices were up 75.8% to $2.76 per thousand cubic feet from $1.57 in the prior-year quarter.
Total oil equivalent realized prices — including cash settlements — were $34.67 per Boe, up 21.1% year over year.
Other Highlights
Total production expenses for the first quarter were $489 million, increasing 53.4% year over year. With capital programs focused on developing higher-margin production opportunities, oil and natural gas liquids volumes reached 74% of Devon Energy’s product mix for the quarter.
Financing costs for the reported quarter were $77 million, up from $65 million in the year-ago period.
Financial Highlights
As of Mar 31, 2021, the company had cash and cash equivalents including restricted cash of $1,878 million, up from $2,237 million as of Dec 31, 2020. It exited the first quarter with $4.9 billion of liquidity and no debt maturities till 2023.
As of Mar 31, 2021, long-term debt amounted to $7,042 million, up marginally from $4,298 million on Dec 31, 2020.
Devon Energy’s net cash from operating activities for first-quarter 2021 was $592 million, up 11.9% from the year-ago period.
Guidance
It expects total production for the second quarter in the range of 538,000-561,000 Boe/d.
Devon Energy’s oil production guidance for 2021 is projected in the range of 280,000-290,000 BBl/d. For 2021, total production is expected in the range of 529,000-559,000 Boe/d.
Capital expenditure for 2021 is expected within $1,720-$1,980 million, including upstream expenditure in the range of $1,600-$1,800 million.
Through cost-management initiatives, the company is on course to achieve cost savings of $600 million by 2021-end.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended downward during the past month.
VGM Scores
At this time, Devon Energy has a strong Growth Score of A, though it is lagging a bit on the Momentum Score front with a B. Charting a somewhat similar path, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Devon Energy has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.