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) Q2 Earnings Beat Estimates, '24 View Raised
Read MoreHide Full Article
Devon Energy Corp. (DVN - Free Report) reported second-quarter 2024 earnings per share (EPS) of $1.41, outpacing the Zacks Consensus Estimate of $1.29 by 9.3%. Strong production volumes and efficient cost management allowed the company to enjoy the benefit of rising oil prices in the quarter.
GAAP earnings per share in the reported quarter were $1.34 compared with $1.07 in the year-ago quarter. The difference between GAAP and operating earnings in the second quarter was due to a 4-cent impact of fair value changes in financial instruments, 2 cents related to assets dispositions and one cent related to referred tax asset valuation allowance.
Revenues
Total revenues for the quarter were $3.91 billion, which surpassed the Zacks Consensus Estimate of $3.87 billion by 1.1%.
The top line increased 13.4% from the year-ago quarter’s figure.
Devon Energy Corporation Price, Consensus and EPS Surprise
Net production for the second quarter totaled 707,000 barrels of oil equivalent per day (Boe/d), up 7% year over year. Actual production volume exceeded the guided range of 670,000- 690,000 Boe/d. Strong performance from Delaware Basin, Eagle Ford and Williston Basin boosted year-over-year production volumes.
Natural gas liquids production increased 10.9% year over year to 182,000 barrels per day (Bbl/d). Oil production amounted to 335,000 Bbl/d, up 3.7% on a year-over-year basis, attributed to a strong contribution from the Delaware Basin.
Realized Prices
Realized oil prices (including cash settlements) for the quarter were $78.95 per barrel, up 10.05% from $71.74 a year ago. Realized prices for natural gas liquids were $19.71 per barrel, up 10.8% from $17.79 in the prior-year quarter.
Realized gas prices were $1.10 per thousand cubic feet, reflecting a 33.7% decline from $1.66 a year ago.
Total oil equivalent realized prices, including cash settlements, were $44.29 per barrel of oil equivalent, up nearly 5.5% year over year.
Other Highlights
Total production expenses in second-quarter 2024 were $788 million, up 9.6% year over year.
Devon has repurchased 5.2 million shares at a total cost of $256 million in the second quarter from its $3 billion share-repurchase program. Since the inception of the buyback program in late 2021, the company has repurchased 54.7 million shares at a total cost of $2.7 billion.
Given this substantial progress and the expected free cash flow accretion from the recent Grayson Mill acquisition, Devon’s management has increased its share-repurchase authorization by 67% to $5 billion. The expanded authorization extends through mid-year 2026.
Production costs, including taxes, averaged $12.25 per barrels of oil equivalent (Boe) in the quarter, a decline of 1% from the prior period. This low-cost structure, coupled with the benefits of high-margin production, resulted in field-level cash margins of $31.19 per Boe in the reported quarter.
Management declared a fixed-plus-variable dividend of 44 cents per share. This resulted in an annualized dividend of $1.76.
Financial Highlights
As of Jun 30, 2024, the company had cash and cash equivalents (including restricted cash) of $1.16 billion compared with $0.87 billion as of Dec 31, 2023.
As of Jun 30, 2024, long-term debt amounted to $5.66 billion, down from $5.67 billion as of Dec 31, 2023.
Devon’s net cash from operating activities was $1.53 billion in the second quarter compared with $1.40 billion a year ago. Capital expenditures totaled $948 million, down 12.1% from the previous year quarter.
Guidance
Third-quarter production is expected in the range of 670,000-690,000 Boe per day and capital spending is estimated in the band of $870-$930 million.
Courtesy of strong first-half results, Devon is increasing its full-year 2024 production forecast to a range of 677,000-688,000 Boe per day from the prior guided range of 655,000-675,000 Boe/d. This incremental production in 2024 is expected to be delivered without an increase in capital.
Devon reiterated its capital expenditure in the band of $3.3-$3.6 billion for 2024.
TotalEnergies SE (TTE - Free Report) reported second-quarter 2024 operating earnings of $1.98 (€1.85) per share, missing the Zacks Consensus Estimate of $2.11 by 6.2%.
TTE’s long-term (three-to-five years) earnings growth rate is currently pinned at 4.4%. The Zacks Consensus Estimate for 2024 EPS is pegged at $8.94, indicating no change in the last 7 days.
Chevron Corporation (CVX - Free Report) reported adjusted second-quarter earnings per share of $2.55, lagging the Zacks Consensus Estimate of $2.88 and declining from the year-ago adjusted profit of $3.08.
CVX’s long-term earnings growth rate is currently pinned at 5%. The Zacks Consensus Estimate for 2024 EPS is pegged at $12.3, indicating a decline of 1.2% in the last 7 days.
Halliburton Company (HAL - Free Report) reported second-quarter 2024 adjusted net income per share of 80 cents, in line with the Zacks Consensus Estimate and above the year-ago quarter’s profit of 77 cents (adjusted).
HAL’s long-term earnings growth rate is currently pinned at 9.33%. The Zacks Consensus Estimate for 2024 EPS is pegged at $3.18, indicating no change in the last 7 days.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Devon Energy (DVN) Q2 Earnings Beat Estimates, '24 View Raised
Devon Energy Corp. (DVN - Free Report) reported second-quarter 2024 earnings per share (EPS) of $1.41, outpacing the Zacks Consensus Estimate of $1.29 by 9.3%. Strong production volumes and efficient cost management allowed the company to enjoy the benefit of rising oil prices in the quarter.
GAAP earnings per share in the reported quarter were $1.34 compared with $1.07 in the year-ago quarter. The difference between GAAP and operating earnings in the second quarter was due to a 4-cent impact of fair value changes in financial instruments, 2 cents related to assets dispositions and one cent related to referred tax asset valuation allowance.
Revenues
Total revenues for the quarter were $3.91 billion, which surpassed the Zacks Consensus Estimate of $3.87 billion by 1.1%.
The top line increased 13.4% from the year-ago quarter’s figure.
Devon Energy Corporation Price, Consensus and EPS Surprise
Devon Energy Corporation price-consensus-eps-surprise-chart | Devon Energy Corporation Quote
Production
Net production for the second quarter totaled 707,000 barrels of oil equivalent per day (Boe/d), up 7% year over year. Actual production volume exceeded the guided range of 670,000- 690,000 Boe/d. Strong performance from Delaware Basin, Eagle Ford and Williston Basin boosted year-over-year production volumes.
Natural gas liquids production increased 10.9% year over year to 182,000 barrels per day (Bbl/d). Oil production amounted to 335,000 Bbl/d, up 3.7% on a year-over-year basis, attributed to a strong contribution from the Delaware Basin.
Realized Prices
Realized oil prices (including cash settlements) for the quarter were $78.95 per barrel, up 10.05% from $71.74 a year ago. Realized prices for natural gas liquids were $19.71 per barrel, up 10.8% from $17.79 in the prior-year quarter.
Realized gas prices were $1.10 per thousand cubic feet, reflecting a 33.7% decline from $1.66 a year ago.
Total oil equivalent realized prices, including cash settlements, were $44.29 per barrel of oil equivalent, up nearly 5.5% year over year.
Other Highlights
Total production expenses in second-quarter 2024 were $788 million, up 9.6% year over year.
Devon has repurchased 5.2 million shares at a total cost of $256 million in the second quarter from its $3 billion share-repurchase program. Since the inception of the buyback program in late 2021, the company has repurchased 54.7 million shares at a total cost of $2.7 billion.
Given this substantial progress and the expected free cash flow accretion from the recent Grayson Mill acquisition, Devon’s management has increased its share-repurchase authorization by 67% to $5 billion. The expanded authorization extends through mid-year 2026.
Production costs, including taxes, averaged $12.25 per barrels of oil equivalent (Boe) in the quarter, a decline of 1% from the prior period. This low-cost structure, coupled with the benefits of high-margin production, resulted in field-level cash margins of $31.19 per Boe in the reported quarter.
Management declared a fixed-plus-variable dividend of 44 cents per share. This resulted in an annualized dividend of $1.76.
Financial Highlights
As of Jun 30, 2024, the company had cash and cash equivalents (including restricted cash) of $1.16 billion compared with $0.87 billion as of Dec 31, 2023.
As of Jun 30, 2024, long-term debt amounted to $5.66 billion, down from $5.67 billion as of Dec 31, 2023.
Devon’s net cash from operating activities was $1.53 billion in the second quarter compared with $1.40 billion a year ago. Capital expenditures totaled $948 million, down 12.1% from the previous year quarter.
Guidance
Third-quarter production is expected in the range of 670,000-690,000 Boe per day and capital spending is estimated in the band of $870-$930 million.
Courtesy of strong first-half results, Devon is increasing its full-year 2024 production forecast to a range of 677,000-688,000 Boe per day from the prior guided range of 655,000-675,000 Boe/d. This incremental production in 2024 is expected to be delivered without an increase in capital.
Devon reiterated its capital expenditure in the band of $3.3-$3.6 billion for 2024.
Zacks Rank
Devon currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Releases
TotalEnergies SE (TTE - Free Report) reported second-quarter 2024 operating earnings of $1.98 (€1.85) per share, missing the Zacks Consensus Estimate of $2.11 by 6.2%.
TTE’s long-term (three-to-five years) earnings growth rate is currently pinned at 4.4%. The Zacks Consensus Estimate for 2024 EPS is pegged at $8.94, indicating no change in the last 7 days.
Chevron Corporation (CVX - Free Report) reported adjusted second-quarter earnings per share of $2.55, lagging the Zacks Consensus Estimate of $2.88 and declining from the year-ago adjusted profit of $3.08.
CVX’s long-term earnings growth rate is currently pinned at 5%. The Zacks Consensus Estimate for 2024 EPS is pegged at $12.3, indicating a decline of 1.2% in the last 7 days.
Halliburton Company (HAL - Free Report) reported second-quarter 2024 adjusted net income per share of 80 cents, in line with the Zacks Consensus Estimate and above the year-ago quarter’s profit of 77 cents (adjusted).
HAL’s long-term earnings growth rate is currently pinned at 9.33%. The Zacks Consensus Estimate for 2024 EPS is pegged at $3.18, indicating no change in the last 7 days.