We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Devon Energy (DVN) Q1 Earnings Beat Estimates, Sales Miss
Read MoreHide Full Article
Devon Energy Corp. (DVN - Free Report) reported first-quarter 2022 adjusted earnings of $1.88 per share, beating the Zacks Consensus Estimate of $1.75 by 8%. Earnings were up 35.3% from the year-ago quarter. The year-over-year improvement was due to the company’s oil-weighted production mix and low operating costs as well as recovery in commodity prices.
GAAP earnings for the first quarter were $1.48 compared with $2.23 per share in the year-ago period.
Revenues
Total revenues of $3,812 million lagged the Zacks Consensus Estimate by 5.1%. The top line improved 85.9% from the year-ago figure.
Devon Energy Corporation Price, Consensus and EPS Surprise
Total net production for first-quarter 2022 touched 575,000 barrels of oil equivalent per day (Boe/d), up 15.2% year over year. First-quarter production was near the high end of the guided range of 560,000-580,000 Boe/d. Production for the quarter was driven by high-margin production growth in the Delaware Basin.
Oil production averaged 288,000 barrels per day (Bbl/d), which increased 7.5% on a year-over-year basis, primarily due to strong contributions from Delaware Basin assets. Natural gas liquids production was also up 37.4% year over year to 136,000 BBl/d.
Realized Prices
Realized oil prices for the quarter were $81.62 per barrel, up 76.9% from $46.15 in the year-ago period. Realized prices for natural gas liquids were up 52.2% to $37.76 per barrel from $24.81 in the prior-year quarter.
Realized gas prices were up 17.1% to $3.15 per thousand cubic feet from $2.69 in the prior-year quarter.
Total oil equivalent realized prices — including cash settlements — were $54.75 per Boe, up 61.2% year over year.
Other Highlights
Total production expenses for the first quarter were $618 million, increasing 34.9% year over year.
The board of directors expanded the company’s share-repurchase authorization by 25% to $2 billion, which is equivalent to 5% of Devon’s market capitalization. Since the announcement of the program, Devon has repurchased 19.1 million shares for $891 million.
Devon’s free cash flow for first-quarter 2022 was $1.3 billion. Financing costs for the reported quarter were $85 million, up 10.4% from $77 million in the year-ago period.
Financial Highlights
As of Mar 31, 2022, the company had cash and cash equivalents, including restricted cash of $2,625 million, up from $2,271 million as of Dec 31, 2021. Total liquidity as of Mar 31, 2022, was $5,625 million.
As of Mar 31, 2022, long-term debt amounted to $6,471 million, down from $6,482 million as of Dec 31, 2021.
Devon Energy’s net cash from operating activities for first-quarter 2022 was $1,837 million compared with $592 million in the year-ago period.
Guidance
Devon expects total production in the range of 585,000-604,000 Boe/d for the second quarter. Second-quarter capital expenditure is projected in the range of $570-$640 million.
Devon reiterated its 2022 total production guidance in the range of 570,000-600,000 Boe/d and upstream capital investment within $1.9-$2.2 billion. Total capital expenditure for 2022 is expected in the range of $2.06-$2.44 billion.
Cheniere Energy, Inc. (LNG - Free Report) is scheduled to report first-quarter 2022 results on May 4. The Zacks Consensus Estimate for earnings for the quarter is pegged at $3.16 per share.
Cheniere Energy’s long-term (three to five years) earnings growth is projected at 53.3%. The Zacks Consensus Estimate for LNG’s 2022 earnings per share indicates year-over-year growth of 233%.
ConocoPhillips (COP - Free Report) is scheduled to report first-quarter 2022 results on May 5. The Zacks Consensus Estimate for earnings for the quarter is pegged at $3.24 per share.
ConocoPhillips’ long-term (three to five years) earnings growth is projected at 19.1%. The Zacks Consensus Estimate for LNG’s 2022 earnings per share indicates year-over-year growth of 140.1%.
Occidental Petroleum Corporation (OXY - Free Report) is scheduled to report first-quarter 2022 results on May 10. The Zacks Consensus Estimate for earnings for the quarter is pegged at $1.97 per share.
Occidental’s long-term earnings growth is projected at 32.9%. The Zacks Consensus Estimate for OXY’s 2022 earnings per share indicates year-over-year growth of 264.3%.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Devon Energy (DVN) Q1 Earnings Beat Estimates, Sales Miss
Devon Energy Corp. (DVN - Free Report) reported first-quarter 2022 adjusted earnings of $1.88 per share, beating the Zacks Consensus Estimate of $1.75 by 8%. Earnings were up 35.3% from the year-ago quarter. The year-over-year improvement was due to the company’s oil-weighted production mix and low operating costs as well as recovery in commodity prices.
GAAP earnings for the first quarter were $1.48 compared with $2.23 per share in the year-ago period.
Revenues
Total revenues of $3,812 million lagged the Zacks Consensus Estimate by 5.1%. The top line improved 85.9% from the year-ago figure.
Devon Energy Corporation Price, Consensus and EPS Surprise
Devon Energy Corporation price-consensus-eps-surprise-chart | Devon Energy Corporation Quote
Production
Total net production for first-quarter 2022 touched 575,000 barrels of oil equivalent per day (Boe/d), up 15.2% year over year. First-quarter production was near the high end of the guided range of 560,000-580,000 Boe/d. Production for the quarter was driven by high-margin production growth in the Delaware Basin.
Oil production averaged 288,000 barrels per day (Bbl/d), which increased 7.5% on a year-over-year basis, primarily due to strong contributions from Delaware Basin assets. Natural gas liquids production was also up 37.4% year over year to 136,000 BBl/d.
Realized Prices
Realized oil prices for the quarter were $81.62 per barrel, up 76.9% from $46.15 in the year-ago period. Realized prices for natural gas liquids were up 52.2% to $37.76 per barrel from $24.81 in the prior-year quarter.
Realized gas prices were up 17.1% to $3.15 per thousand cubic feet from $2.69 in the prior-year quarter.
Total oil equivalent realized prices — including cash settlements — were $54.75 per Boe, up 61.2% year over year.
Other Highlights
Total production expenses for the first quarter were $618 million, increasing 34.9% year over year.
The board of directors expanded the company’s share-repurchase authorization by 25% to $2 billion, which is equivalent to 5% of Devon’s market capitalization. Since the announcement of the program, Devon has repurchased 19.1 million shares for $891 million.
Devon’s free cash flow for first-quarter 2022 was $1.3 billion. Financing costs for the reported quarter were $85 million, up 10.4% from $77 million in the year-ago period.
Financial Highlights
As of Mar 31, 2022, the company had cash and cash equivalents, including restricted cash of $2,625 million, up from $2,271 million as of Dec 31, 2021. Total liquidity as of Mar 31, 2022, was $5,625 million.
As of Mar 31, 2022, long-term debt amounted to $6,471 million, down from $6,482 million as of Dec 31, 2021.
Devon Energy’s net cash from operating activities for first-quarter 2022 was $1,837 million compared with $592 million in the year-ago period.
Guidance
Devon expects total production in the range of 585,000-604,000 Boe/d for the second quarter. Second-quarter capital expenditure is projected in the range of $570-$640 million.
Devon reiterated its 2022 total production guidance in the range of 570,000-600,000 Boe/d and upstream capital investment within $1.9-$2.2 billion. Total capital expenditure for 2022 is expected in the range of $2.06-$2.44 billion.
Zacks Rank
Devon Energy sports a Zacks Rank #1 (Strong Buy).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Upcoming Releases
Cheniere Energy, Inc. (LNG - Free Report) is scheduled to report first-quarter 2022 results on May 4. The Zacks Consensus Estimate for earnings for the quarter is pegged at $3.16 per share.
Cheniere Energy’s long-term (three to five years) earnings growth is projected at 53.3%. The Zacks Consensus Estimate for LNG’s 2022 earnings per share indicates year-over-year growth of 233%.
ConocoPhillips (COP - Free Report) is scheduled to report first-quarter 2022 results on May 5. The Zacks Consensus Estimate for earnings for the quarter is pegged at $3.24 per share.
ConocoPhillips’ long-term (three to five years) earnings growth is projected at 19.1%. The Zacks Consensus Estimate for LNG’s 2022 earnings per share indicates year-over-year growth of 140.1%.
Occidental Petroleum Corporation (OXY - Free Report) is scheduled to report first-quarter 2022 results on May 10. The Zacks Consensus Estimate for earnings for the quarter is pegged at $1.97 per share.
Occidental’s long-term earnings growth is projected at 32.9%. The Zacks Consensus Estimate for OXY’s 2022 earnings per share indicates year-over-year growth of 264.3%.