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Devon Energy Corp. (DVN - Free Report) reported third-quarter 2022 adjusted earnings of $2.18 per share, beating our estimate and Zacks Consensus Estimate of $2.13 by 2.4%. Earnings were up 101.9% from the year-ago quarter. The year-over-year improvement was due to a recovery in commodity prices.
GAAP earnings for the second quarter were $2.88 compared with $1.24 per share in the year-ago period.
Revenues
Total revenues of $5,432 million surpassed the Zacks Consensus Estimate by 10.6%. Total revenues were better than our estimate of $4,752 million. The top line also improved 56.7% from the year-ago figure.
Devon Energy Corporation Price, Consensus and EPS Surprise
Total net production for third-quarter 2022 touched 614,000 barrels of oil equivalent per day (Boe/d), up nearly 1% year over year. Third-quarter production exceeded the company’s guidance of 593,000-613,000 Boe/d. Total production for the quarter was driven by high-margin production growth in the Delaware Basin.
Natural gas liquids production was also up 4.1% year over year to 154,000 Bbl/d. Oil production averaged 294,000 barrels per day (Bbl/d), which dropped 2.8% on a year-over-year basis, primarily due to lower oil production in all Devon-operated basins.
Realized Prices
Realized oil prices for the quarter were $84.38 per barrel, up 47% from $57.59 in the year-ago period. Realized prices for natural gas liquids were up 11.8% to $34.44 per barrel from $30.8 in the prior-year quarter.
Realized gas prices were up 110.5% to $5.83 per thousand cubic feet from $2.77 in the prior-year quarter.
Total oil equivalent realized prices — including cash settlements — were $58.48 per Boe, up 44.5% year over year.
Other Highlights
Total production expenses for the third quarter were $735 million, up 32.4% year over year.
Devon Energy’s share repurchase authorization is $2 billion, which is equivalent to 5% of the company’s market capitalization. In the first nine months of 2022, Devon repurchased shares worth $661 million.
The board of directors approved a total dividend of $1.35 per share (including fixed and variable) for third-quarter 2022, which reflects a 61% increase from the year-ago quarter’s level.
Devon Energy’s free cash flow for third-quarter 2022 was nearly $1.5 billion. Financing costs for the reported quarter were $67 million, up 22.1% from $86 million in the year-ago period.
During the third quarter, Devon Energy closed on acquisitions in the Williston Basin and Eagle Ford for $2.5 billion. This fourth-quarter production volume will be driven by 35,000 Boe/d of incremental production from the company’s Eagle Ford acquisition.
Financial Highlights
As of Sep 30, 2022, the company had cash and cash equivalents, including restricted cash, of $1,310 million, down from $2,271 million as of Dec 31, 2021. Total liquidity as of Sep 30, 2022, was $4,300 million, which includes cash of $1.3 billion.
As of Sep 30, 2022, long-term debt amounted to $6,196 million, down from $6,482 million as of Dec 31, 2021.
Devon Energy’s net cash from operating activities for third-quarter 2022 was $2,104 million compared with $1,598 million in the year-ago period. Capital expenditure was $628 million in the third quarter compared with $474 million in the year-ago quarter.
Guidance
Devon Energy expects total production of 640,000-660,000 Boe/d for the fourth quarter, taking into consideration the accretive acquisitions of Williston Basin and Eagle Ford. Fourth-quarter production reflects 6% year-over-year growth. Fourth-quarter capital expenditure is projected to be $845-$915 million.
ConocoPhillips (COP - Free Report) is scheduled to report third-quarter 2022 results on Nov 3. The Zacks Consensus Estimate for earnings for the quarter is pegged at $3.78 per share.
ConocoPhillips’ long-term (three to five-year) earnings growth is projected at 19.3%. The Zacks Consensus Estimate for COP’s 2022 earnings per share indicates year-over-year growth of 133.1%.
Cheniere Energy, Inc. (LNG - Free Report) is scheduled to report third-quarter 2022 results on Nov 3. The Zacks Consensus Estimate for Q3 earnings is pegged at $5.45 per share.
The Zacks Consensus Estimate for LNG’s 2022 and 2023 earnings per share indicates year-over-year growth of 205.1% and 103.2%, respectively.
Occidental Petroleum Corporation (OXY - Free Report) is scheduled to report third-quarter 2022 results on Nov 8. The Zacks Consensus Estimate for Q3 earnings is pegged at $2.48 per share.
Occidental’s long-term earnings growth is projected at 13.98%. The Zacks Consensus Estimate for OXY’s 2022 earnings per share indicates year-over-year growth of 294.9%.
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Devon's (DVN) Q3 Earnings & Sales Beat Estimates, Rise Y/Y
Devon Energy Corp. (DVN - Free Report) reported third-quarter 2022 adjusted earnings of $2.18 per share, beating our estimate and Zacks Consensus Estimate of $2.13 by 2.4%. Earnings were up 101.9% from the year-ago quarter. The year-over-year improvement was due to a recovery in commodity prices.
GAAP earnings for the second quarter were $2.88 compared with $1.24 per share in the year-ago period.
Revenues
Total revenues of $5,432 million surpassed the Zacks Consensus Estimate by 10.6%. Total revenues were better than our estimate of $4,752 million. The top line also improved 56.7% 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 third-quarter 2022 touched 614,000 barrels of oil equivalent per day (Boe/d), up nearly 1% year over year. Third-quarter production exceeded the company’s guidance of 593,000-613,000 Boe/d. Total production for the quarter was driven by high-margin production growth in the Delaware Basin.
Natural gas liquids production was also up 4.1% year over year to 154,000 Bbl/d. Oil production averaged 294,000 barrels per day (Bbl/d), which dropped 2.8% on a year-over-year basis, primarily due to lower oil production in all Devon-operated basins.
Realized Prices
Realized oil prices for the quarter were $84.38 per barrel, up 47% from $57.59 in the year-ago period. Realized prices for natural gas liquids were up 11.8% to $34.44 per barrel from $30.8 in the prior-year quarter.
Realized gas prices were up 110.5% to $5.83 per thousand cubic feet from $2.77 in the prior-year quarter.
Total oil equivalent realized prices — including cash settlements — were $58.48 per Boe, up 44.5% year over year.
Other Highlights
Total production expenses for the third quarter were $735 million, up 32.4% year over year.
Devon Energy’s share repurchase authorization is $2 billion, which is equivalent to 5% of the company’s market capitalization. In the first nine months of 2022, Devon repurchased shares worth $661 million.
The board of directors approved a total dividend of $1.35 per share (including fixed and variable) for third-quarter 2022, which reflects a 61% increase from the year-ago quarter’s level.
Devon Energy’s free cash flow for third-quarter 2022 was nearly $1.5 billion. Financing costs for the reported quarter were $67 million, up 22.1% from $86 million in the year-ago period.
During the third quarter, Devon Energy closed on acquisitions in the Williston Basin and Eagle Ford for $2.5 billion. This fourth-quarter production volume will be driven by 35,000 Boe/d of incremental production from the company’s Eagle Ford acquisition.
Financial Highlights
As of Sep 30, 2022, the company had cash and cash equivalents, including restricted cash, of $1,310 million, down from $2,271 million as of Dec 31, 2021. Total liquidity as of Sep 30, 2022, was $4,300 million, which includes cash of $1.3 billion.
As of Sep 30, 2022, long-term debt amounted to $6,196 million, down from $6,482 million as of Dec 31, 2021.
Devon Energy’s net cash from operating activities for third-quarter 2022 was $2,104 million compared with $1,598 million in the year-ago period. Capital expenditure was $628 million in the third quarter compared with $474 million in the year-ago quarter.
Guidance
Devon Energy expects total production of 640,000-660,000 Boe/d for the fourth quarter, taking into consideration the accretive acquisitions of Williston Basin and Eagle Ford. Fourth-quarter production reflects 6% year-over-year growth. Fourth-quarter capital expenditure is projected to be $845-$915 million.
Zacks Rank
Devon Energy currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Upcoming Releases
ConocoPhillips (COP - Free Report) is scheduled to report third-quarter 2022 results on Nov 3. The Zacks Consensus Estimate for earnings for the quarter is pegged at $3.78 per share.
ConocoPhillips’ long-term (three to five-year) earnings growth is projected at 19.3%. The Zacks Consensus Estimate for COP’s 2022 earnings per share indicates year-over-year growth of 133.1%.
Cheniere Energy, Inc. (LNG - Free Report) is scheduled to report third-quarter 2022 results on Nov 3. The Zacks Consensus Estimate for Q3 earnings is pegged at $5.45 per share.
The Zacks Consensus Estimate for LNG’s 2022 and 2023 earnings per share indicates year-over-year growth of 205.1% and 103.2%, respectively.
Occidental Petroleum Corporation (OXY - Free Report) is scheduled to report third-quarter 2022 results on Nov 8. The Zacks Consensus Estimate for Q3 earnings is pegged at $2.48 per share.
Occidental’s long-term earnings growth is projected at 13.98%. The Zacks Consensus Estimate for OXY’s 2022 earnings per share indicates year-over-year growth of 294.9%.