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Devon Energy (DVN) to Post Q2 Earnings: What's in the Cards?

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Devon Energy Corporation DVN is set to report second-quarter earnings on Aug 3, after market close. This oil and gas company delivered an earnings surprise of 28.6% in the last reported quarter.

Let’s discuss the factors that are likely to get reflected in the upcoming quarterly results.

Factors at Play

Strong oil production from the high-margin Delaware Basin region is expected to have boosted second-quarter oil production. Production from its assets in four onshore basins is likely to have positively impacted earnings in the second quarter.

Efficient management of debt year to date lowered capital services expenses. Strong cost control is also anticipated to have aided earnings in the quarter.

Expectations

The Zacks Consensus Estimate for second-quarter oil production is pegged at 290,000 barrels of oil equivalent per day (Boe/d), which indicates year-over-year growth of 89.5%.

Devon Energy expects production for the second quarter in the range of 538,000-561,000 Boe/d.

The Zacks Consensus Estimate for the bottom line for the second quarter is pegged at 52 cents per share, indicating a 388.9% increase from the prior-year reported figure.

What Our Quantitative Model Predicts

Our proven model predicts an earnings beat for Devon Energy this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That is the case here as you will see below. You can see the complete list of today’s Zacks #1 Rank stocks here.

Devon Energy Corporation Price and EPS Surprise

Devon Energy Corporation Price and EPS Surprise
Devon Energy Corporation Price and EPS Surprise

Devon Energy Corporation price-eps-surprise | Devon Energy Corporation Quote

Earnings ESP: The company has an Earnings ESP of +0.19%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Devon Energy currently sports a Zacks Rank #1.

Other Stocks to Consider

Investors can also consider the following players from the same industry that too have the right combination of elements to post an earnings beat in the to-be-reported quarter.

Continental Resources, Inc. CLR is scheduled to release second-quarter 2021 numbers on Aug 2. It has an Earnings ESP of +4.61% and sports a Zacks Rank #1.

Apache Corporation APA is scheduled to release second-quarter 2021 numbers on Aug 4. It has an Earnings ESP of +7.02% and sports a Zacks Rank #1.

EOG Resources Inc. EOG is scheduled to release second-quarter 2021 numbers on Aug 5. It has an Earnings ESP of +0.50% and sports a Zacks Rank #1.


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Devon Energy Corporation (DVN) : Free Stock Analysis Report

APA Corporation (APA) : Free Stock Analysis Report

EOG Resources, Inc. (EOG) : Free Stock Analysis Report

Continental Resources, Inc. (CLR) : Free Stock Analysis Report

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