Devon Energy (DVN) to Post Q4 Earnings: What's in Store?
Devon Energy Corporation DVN is set to report fourth-quarter 2023 results on Feb 27, after market close. This oil and gas company delivered an average earnings surprise of 1.63% in the last four reported quarters.
Let us discuss the factors that are likely to have affected the company's quarterly performance.
Factors at Play
Devon Energy’s fourth-quarter production volumes are expected to have fallen sequentially due to a decline in production volumes in the Williston Basin and timing of completions in the Delaware Basin.
Stable free cash flow generation is expected to have continued in the fourth quarter as well, which have assisted in increasing shareholders value in the fourth quarter. The ongoing share repurchases have lowered shares outstanding level of the company, which is likely to have a positive impact on fourth-quarter earnings.
Q4 Expectations
Devon Energy expects total production in the range of 640,000 to 660,000 Boe/d, including 312,000 to 318,000 barrels of oil per day. It expects its natural gas liquid (NGL) production volume in the range of 160,000-166,000 barrels per day.
The Zacks Consensus Estimate for oil production is pegged at 315,000 barrels per day, suggesting a decline of 0.3% from the year-ago reported quarter. The Zacks Consensus Estimate for NGL production is pinned at 162,640 barrels per day, indicating a rise of 9.9% from the year-ago reported quarter.
What Our Quantitative Model Predicts
Our proven model does not conclusively predict 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 not the case here, as you will see below.
Devon Energy Corporation Price and EPS Surprise
Devon Energy Corporation price-eps-surprise | Devon Energy Corporation Quote
Earnings ESP: Devon Energy has an Earnings ESP of +0.96%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Devon Energy currently carries a Zacks Rank #4 (Sell).
Stocks to Consider
Investors can consider the following players from the same sector that have the right combination of elements to beat on earnings in this reporting cycle.
Constellation Energy Corporation CEG is likely to deliver an earnings surprise when it posts fourth-quarter earnings on Feb 27, 2024. CEG has an Earnings ESP of +2.05% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for CEG’s fourth-quarter 2023 earnings has gone down by 10.9% in the last 60 days.
Delek US Holdings DK is likely to deliver an earnings surprise when it posts fourth-quarter earnings on Feb 27, 2024. DK has an Earnings ESP of +6.40% and a Zacks Rank #3.
The Zacks Consensus Estimate for DK’s fourth-quarter 2023 earnings implies a decline of 245.9% in the last 60 days.
Crescent Energy Company CRGY is likely to deliver an earnings surprise when it posts fourth-quarter earnings on Mar 5, 2024. CRGY has an Earnings ESP of +3.13% and a Zacks Rank #3.
The Zacks Consensus Estimate for CRGY’s fourth-quarter 2023 earnings implies a decline of 27.6% in the last 60 days.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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Devon Energy Corporation (DVN) : Free Stock Analysis Report
Constellation Energy Corporation (CEG) : Free Stock Analysis Report
Delek US Holdings, Inc. (DK) : Free Stock Analysis Report
Crescent Energy Company (CRGY) : Free Stock Analysis Report
