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Devon Energy (DVN) Q1 Earnings Beat Estimates, Revenues Lag

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Devon Energy Corp. DVN reported first-quarter 2021 adjusted earnings of 45 cents, beating the Zacks Consensus Estimate of 35 cents per share by 28.6%. In the year-ago quarter, the company reported earnings of 13 cents per share.

GAAP earnings for the first quarter were 32 cents compared with 27 cents per share in the year-ago period.

Revenues

Total revenues of $1,762 million lagged the Zacks Consensus Estimate by 20.5%. The top line also declined 15.6% from the year-ago figure.

Devon Energy Corporation Price, Consensus and EPS Surprise

Devon Energy Corporation Price, Consensus and EPS Surprise
Devon Energy Corporation Price, Consensus and EPS Surprise

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

Production

Total net production for first-quarter 2021 touched 499,000 barrels of oil equivalent per day (Boe/d), up 43.4% year over year. Oil production averaged 268,000 barrels per day (Bbl/d), which increased 71.8% on a year-over-year basis, primarily due to strong contribution from Delaware and Williston Basin assets. Natural gas liquids production was also up 23.8% year over year.

Realized Prices

Realized oil prices for the quarter were $47.23 per barrel, down 5.1% from $49.73 in the year-ago period. Realized prices for natural gas liquids, however, were up 125.3% to $24.81 per barrel from $11.01 in the prior-year quarter.

Realized gas prices were up 75.8% to $2.76 per thousand cubic feet from $1.57 in the prior-year quarter.

Total oil equivalent realized prices — including cash settlements — were $34.67 per Boe, up 21.1% year over year.

Other Highlights

Total production expenses for the first quarter were $489 million, increasing 53.4% year over year. With capital programs focused on developing higher-margin production opportunities, oil and natural gas liquids volumes reached 74% of Devon Energy’s product mix for the quarter.

Financing costs for the reported quarter were $77 million, up from $65 million in the year-ago period.

Financial Highlights

As of Mar 31, 2021, the company had cash and cash equivalents including restricted cash of $1,878 million, up from $2,237 million as of Dec 31, 2020. It exited the first quarter with $4.9 billion of liquidity and no debt maturities till 2023.

As of Mar 31, 2021, long-term debt amounted to $7,042 million, up marginally from $4,298 million on Dec 31, 2020.

Devon Energy’s net cash from operating activities for first-quarter 2021 was $592 million, up 11.9% from the year-ago period.

Guidance

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

Devon Energy’s oil production guidance for 2021 is projected in the range of 280,000-290,000 BBl/d. For 2021, total production is expected in the range of 529,000-559,000 Boe/d.

Capital expenditure for 2021 is expected within $1,720-$1,980 million, including upstream expenditure in the range of $1,600-$1,800 million.

Through cost-management initiatives, the company is on course to achieve cost savings of $600 million by 2021-end.

Other Releases

CNX Resources Corporation CNX reported first-quarter 2021 adjusted earnings of 36 cents per share, which surpassed the Zacks Consensus Estimate of 28 cents by 28.6%.

Matador Resources Company MTDR reported first-quarter 2021 adjusted earnings of 71 cents per share, which surpassed the Zacks Consensus Estimate of 39 cents by 82.1%.

Hess Corporation HES reported adjusted first-quarter 2021 earnings per share of 82 cents, beating the Zacks Consensus Estimate of earnings of 44 cents by 86.4%.

Zacks Rank

Devon Energy currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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