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 & Revenues Beat Estimates
Read MoreHide Full Article
Devon Energy Corp. (DVN - Free Report) reported first-quarter 2017 adjusted earnings per share of 41 cents, beating the Zacks Consensus Estimate of 40 cents by a penny. Notably, the company had reported a loss of 53 cent in the prior-year quarter.
The year-over-year improvement was attributable to strong production growth, higher commodity prices and an improved cost structure.
On a GAAP basis, the company reported earnings of $1.07 per share, while the year-ago quarter figure reflected a loss of $6.44. The difference between operating and GAAP figures in the reported quarter was due to gain from deferred tax valuation allowance of 32 cents and foreign currency adjustments of 36 cents. The gains were marginally offset by loss of 1 cent each from asset sales as well as asset impairments.
Revenues
Devon’s quarterly revenues of $3,547 million surpassed the Zacks Consensus Estimate of $2,977 million by 18.9%. Total revenue was also up 66.8% from the year-ago figure of $2,126 million.
Highlights of the Release
In the first quarter of 2017, total production touched 563,000 barrels of oil equivalent (Boe) per day, higher than the guidance range of 535,000–555,000 boe per day provided by the company. Solid production from U.S. assets and Canada heavy oil resulted in the stronger-than-expected production.
At the field level, the company is effectively controlling costs. Thanks to its initiatives, lease operating expenses (LOE) were down 13.1% year over year to $386 million.
Total operating expenses in the reported quarter is $2,841 million, down 49.5% from $5,626 million spent in the year-ago quarter.
Operating income in the reported quarter was $706 million. In the year-ago quarter, the company had incurred operating loss of $3,500 million.
Devon Energy Corporation Price, Consensus and EPS Surprise
Realized oil prices in the quarter were $37.83 per barrel, up 88.6% from $20.06 per barrel in the year-ago quarter. Realized prices for natural gas were up 59.6% to $2.65 per thousand cubic feet (Mcf) from $1.66 in the year-ago quarter.
Total realized prices in the first quarter, including cash settlements, were $25.97 per boe, up 91.9% year over year due to higher commodities prices.
Financial Health
As of Mar 31, 2017, the company had a cash balance of $2,119 million, up from $1,959 million as of Dec 31, 2016.
Long-term debt as of Mar 31, 2016 was $10,381 million, compared with $10,154 million as of Dec 31, 2016.
Devon’s cash flow from operating activities in first-quarter 2017 was $834 million, compared with $165 million in the year ago quarter.
Capital expenditure was $747 million, marginally lower than $749 million a year ago.
Guidance
Devon Energy estimates total production from its assets in the second quarter of 2017 and full-year 2017 to be in the range of 519,000–540,000 boe per day and 539,000–561,000 boe per day, respectively.
Capital expenditure (capex) in the second quarter of 2017 and full-year 2017 is expected to be in the range of $600–$675 million and $2,285–$2,690 million, respectively.
Devon Energy has also provided its 2017 second-quarter and full-year LOE outlook in the range of $370–$420 million and $1,500–$1,600 million, respectively.
Devon Energy has reaped the benefit of improving commodity prices and its emphasis to control costs. Thanks to the positive initiatives, the company is able to surpass both top-line and earnings expectation.
Thanks to solid oil production and performance from its domestic oil plays, the company is well poised to deliver 13–17% growth in U.S. oil production in 2017 from 2016 levels.
Devon Energy is enjoying the benefit of cost management, which is expected to further benefit the company in the second half of this year.
Peer Releases
Anadarko Petroleum Corp. reported first-quarter 2017 adjusted loss of 60 cents per share, wider than the Zacks Consensus Estimate of a loss of 26 cents.
EQT Corporation (EQT - Free Report) reported first-quarter 2017 earnings of 44 cents per share, lagging the Zacks Consensus Estimate of 45 cents by a penny.
Noble Energy, Inc. reported adjusted loss of 5 cents per share for the first quarter of 2017, narrower than the Zacks Consensus Estimate of a loss of 13 cents.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
Image: Bigstock
Devon Energy (DVN) Q1 Earnings & Revenues Beat Estimates
Devon Energy Corp. (DVN - Free Report) reported first-quarter 2017 adjusted earnings per share of 41 cents, beating the Zacks Consensus Estimate of 40 cents by a penny. Notably, the company had reported a loss of 53 cent in the prior-year quarter.
The year-over-year improvement was attributable to strong production growth, higher commodity prices and an improved cost structure.
On a GAAP basis, the company reported earnings of $1.07 per share, while the year-ago quarter figure reflected a loss of $6.44. The difference between operating and GAAP figures in the reported quarter was due to gain from deferred tax valuation allowance of 32 cents and foreign currency adjustments of 36 cents. The gains were marginally offset by loss of 1 cent each from asset sales as well as asset impairments.
Revenues
Devon’s quarterly revenues of $3,547 million surpassed the Zacks Consensus Estimate of $2,977 million by 18.9%. Total revenue was also up 66.8% from the year-ago figure of $2,126 million.
Highlights of the Release
In the first quarter of 2017, total production touched 563,000 barrels of oil equivalent (Boe) per day, higher than the guidance range of 535,000–555,000 boe per day provided by the company. Solid production from U.S. assets and Canada heavy oil resulted in the stronger-than-expected production.
At the field level, the company is effectively controlling costs. Thanks to its initiatives, lease operating expenses (LOE) were down 13.1% year over year to $386 million.
Total operating expenses in the reported quarter is $2,841 million, down 49.5% from $5,626 million spent in the year-ago quarter.
Operating income in the reported quarter was $706 million. In the year-ago quarter, the company had incurred operating loss of $3,500 million.
Devon Energy Corporation Price, Consensus and EPS Surprise
Devon Energy Corporation Price, Consensus and EPS Surprise | Devon Energy Corporation Quote
Realized Prices
Realized oil prices in the quarter were $37.83 per barrel, up 88.6% from $20.06 per barrel in the year-ago quarter. Realized prices for natural gas were up 59.6% to $2.65 per thousand cubic feet (Mcf) from $1.66 in the year-ago quarter.
Total realized prices in the first quarter, including cash settlements, were $25.97 per boe, up 91.9% year over year due to higher commodities prices.
Financial Health
As of Mar 31, 2017, the company had a cash balance of $2,119 million, up from $1,959 million as of Dec 31, 2016.
Long-term debt as of Mar 31, 2016 was $10,381 million, compared with $10,154 million as of Dec 31, 2016.
Devon’s cash flow from operating activities in first-quarter 2017 was $834 million, compared with $165 million in the year ago quarter.
Capital expenditure was $747 million, marginally lower than $749 million a year ago.
Guidance
Devon Energy estimates total production from its assets in the second quarter of 2017 and full-year 2017 to be in the range of 519,000–540,000 boe per day and 539,000–561,000 boe per day, respectively.
Capital expenditure (capex) in the second quarter of 2017 and full-year 2017 is expected to be in the range of $600–$675 million and $2,285–$2,690 million, respectively.
Devon Energy has also provided its 2017 second-quarter and full-year LOE outlook in the range of $370–$420 million and $1,500–$1,600 million, respectively.
Zacks Rank
Devon Energy currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Our View
Devon Energy has reaped the benefit of improving commodity prices and its emphasis to control costs. Thanks to the positive initiatives, the company is able to surpass both top-line and earnings expectation.
Thanks to solid oil production and performance from its domestic oil plays, the company is well poised to deliver 13–17% growth in U.S. oil production in 2017 from 2016 levels.
Devon Energy is enjoying the benefit of cost management, which is expected to further benefit the company in the second half of this year.
Peer Releases
Anadarko Petroleum Corp. reported first-quarter 2017 adjusted loss of 60 cents per share, wider than the Zacks Consensus Estimate of a loss of 26 cents.
EQT Corporation (EQT - Free Report) reported first-quarter 2017 earnings of 44 cents per share, lagging the Zacks Consensus Estimate of 45 cents by a penny.
Noble Energy, Inc. reported adjusted loss of 5 cents per share for the first quarter of 2017, narrower than the Zacks Consensus Estimate of a loss of 13 cents.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
It's not the one you think.
See This Ticker Free >>