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Why Is Devon Energy (DVN) Down 0.5% 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 lost about 0.5% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Devon Energy due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Devon Energy Q1 Earnings Top Estimates, Revenues Lag
Devon Energy Corp. reported first-quarter 2023 earnings of $1.46 per share, which outpaced Zacks Consensus Estimate of $1.39 by 5.04%. The bottom line, however, declined 22.3% from the year-ago quarter’s $1.88.
Revenues
Total revenues for the quarter totaled $3,823 million, which missed the Zacks Consensus Estimate of $3,927 million by 2.65%. The top line improved 0.3% from the year-ago quarter’s figure.
Production
Net production for the reported quarter totaled 641,000 barrels of oil equivalent per day (Boe/d), up 11.5% year over year.
Natural gas liquids production increased 9.6% year over year to 149,000 barrels per day (Bbl/d). Oil production amounted to 320,000 Bbl/d, up 11.1% on a year-over-year basis, primarily due to higher oil production in Eagle Ford.
Realized Prices
Realized oil prices for the quarter were $74.22 per barrel, down 9.1% from $81.62 in the year-ago period. Realized prices for natural gas liquids were $24.12 per barrel, down 36.1% from $37.76 in the prior-year quarter.
Realized gas prices were $2.47 per thousand cubic feet, indicating a 21.6% deterioration from $3.15 a year ago.
Total oil equivalent realized prices, including cash settlements, were $46.66 per barrel of oil equivalent, down 14.8% year over year.
Other Highlights
Total production expenses were $693 million, up 12.1% from that recorded in the corresponding period of 2022.
Devon Energy increased share repurchase authorization to $3 billion. The company had repurchased shares worth $692 million in the year-to-date period. The new share repurchase program represents 9% of outstanding shares.
DVN’s free cash flow for the quarter totaled nearly $665 million. Financing costs amounted to $72 million, down 15.3% from $85 million in the year-ago period.
Financial Highlights
As of Mar 31, 2023, the company had cash and cash equivalents (including restricted cash) of $887 million compared with $1,454 million as of Dec 31, 2022. Total liquidity as of Mar 31, 2023, was $3.9 billion, which included cash and credit facility.
As of the same date, long-term debt amounted to $6,175 million, down from $6,189 million as of Dec 31, 2022.
Devon Energy’s net cash from operating activities was $1,677 million compared with $1,837 million in the year-ago period. Capital expenditure totaled $1,012 million compared with $537 million in the corresponding period of 2022.
Guidance
The company expects total production of 643,000-664,000 Boe/d in the second quarter of 2023. The same is anticipated in the range of 643,000-663,000 Boe/d for the entire year.
Capital expenditure is projected in the band of $965-$1,045 million and $3,600-$3,800 million for second-quarter and full-year 2023, respectively.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended downward during the past month.
The consensus estimate has shifted -7.9% due to these changes.
VGM Scores
Currently, Devon Energy has a strong Growth Score of A, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of A on the value side, putting it in the top quintile 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.
Performance of an Industry Player
Devon Energy is part of the Zacks Oil and Gas - Exploration and Production - United States industry. Over the past month, Matador Resources (MTDR - Free Report) , a stock from the same industry, has gained 10.7%. The company reported its results for the quarter ended March 2023 more than a month ago.
Matador reported revenues of $560.28 million in the last reported quarter, representing a year-over-year change of -1%. EPS of $1.50 for the same period compares with $2.32 a year ago.
For the current quarter, Matador is expected to post earnings of $1.57 per share, indicating a change of -54.8% from the year-ago quarter. The Zacks Consensus Estimate has changed -2.2% over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Matador. Also, the stock has a VGM Score of B.
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Why Is Devon Energy (DVN) Down 0.5% Since Last Earnings Report?
It has been about a month since the last earnings report for Devon Energy (DVN - Free Report) . Shares have lost about 0.5% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Devon Energy due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Devon Energy Q1 Earnings Top Estimates, Revenues Lag
Devon Energy Corp. reported first-quarter 2023 earnings of $1.46 per share, which outpaced Zacks Consensus Estimate of $1.39 by 5.04%. The bottom line, however, declined 22.3% from the year-ago quarter’s $1.88.
Revenues
Total revenues for the quarter totaled $3,823 million, which missed the Zacks Consensus Estimate of $3,927 million by 2.65%. The top line improved 0.3% from the year-ago quarter’s figure.
Production
Net production for the reported quarter totaled 641,000 barrels of oil equivalent per day (Boe/d), up 11.5% year over year.
Natural gas liquids production increased 9.6% year over year to 149,000 barrels per day (Bbl/d). Oil production amounted to 320,000 Bbl/d, up 11.1% on a year-over-year basis, primarily due to higher oil production in Eagle Ford.
Realized Prices
Realized oil prices for the quarter were $74.22 per barrel, down 9.1% from $81.62 in the year-ago period. Realized prices for natural gas liquids were $24.12 per barrel, down 36.1% from $37.76 in the prior-year quarter.
Realized gas prices were $2.47 per thousand cubic feet, indicating a 21.6% deterioration from $3.15 a year ago.
Total oil equivalent realized prices, including cash settlements, were $46.66 per barrel of oil equivalent, down 14.8% year over year.
Other Highlights
Total production expenses were $693 million, up 12.1% from that recorded in the corresponding period of 2022.
Devon Energy increased share repurchase authorization to $3 billion. The company had repurchased shares worth $692 million in the year-to-date period. The new share repurchase program represents 9% of outstanding shares.
DVN’s free cash flow for the quarter totaled nearly $665 million. Financing costs amounted to $72 million, down 15.3% from $85 million in the year-ago period.
Financial Highlights
As of Mar 31, 2023, the company had cash and cash equivalents (including restricted cash) of $887 million compared with $1,454 million as of Dec 31, 2022. Total liquidity as of Mar 31, 2023, was $3.9 billion, which included cash and credit facility.
As of the same date, long-term debt amounted to $6,175 million, down from $6,189 million as of Dec 31, 2022.
Devon Energy’s net cash from operating activities was $1,677 million compared with $1,837 million in the year-ago period. Capital expenditure totaled $1,012 million compared with $537 million in the corresponding period of 2022.
Guidance
The company expects total production of 643,000-664,000 Boe/d in the second quarter of 2023. The same is anticipated in the range of 643,000-663,000 Boe/d for the entire year.
Capital expenditure is projected in the band of $965-$1,045 million and $3,600-$3,800 million for second-quarter and full-year 2023, respectively.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended downward during the past month.
The consensus estimate has shifted -7.9% due to these changes.
VGM Scores
Currently, Devon Energy has a strong Growth Score of A, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of A on the value side, putting it in the top quintile 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.
Performance of an Industry Player
Devon Energy is part of the Zacks Oil and Gas - Exploration and Production - United States industry. Over the past month, Matador Resources (MTDR - Free Report) , a stock from the same industry, has gained 10.7%. The company reported its results for the quarter ended March 2023 more than a month ago.
Matador reported revenues of $560.28 million in the last reported quarter, representing a year-over-year change of -1%. EPS of $1.50 for the same period compares with $2.32 a year ago.
For the current quarter, Matador is expected to post earnings of $1.57 per share, indicating a change of -54.8% from the year-ago quarter. The Zacks Consensus Estimate has changed -2.2% over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Matador. Also, the stock has a VGM Score of B.