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Devon Energy (DVN) Q3 Earnings & Revenues Beat Estimates

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Devon Energy Corp. DVN reported third-quarter 2021 adjusted earnings of $1.08 per share, beating the Zacks Consensus Estimate of 92 cents by 17.4%. In the year-ago quarter, the company incurred a loss of 4 cents per share.

GAAP earnings for the third quarter were $1.24 compared with 38 cents per share in the year-ago period.

Revenues

Total revenues of $3,466 million surpassed the Zacks Consensus Estimate by 8.8%. The top line also improved 43.4% 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 third-quarter 2021 touched 608,000 barrels of oil equivalent per day (Boe/d), up 86.5% year over year. Third-quarter production was better than the guided range of 566,000-594,000 Boe/d.

Oil production averaged 303,000 barrels per day (Bbl/d), which increased 107.5% on a year-over-year basis, primarily due to strong contributions from Delaware and Williston Basin assets. Natural gas liquids production was also up 78.3% year over year to 148,000 BBl/d.

Realized Prices

Realized oil prices for the quarter were $57.59 per barrel, up 50.7% from $38.21 in the year-ago period. Realized prices for natural gas liquids were up 155.4% to $30.8 per barrel from $12.06 in the prior-year quarter.

Realized gas prices were up 79.9% to $2.77 per thousand cubic feet from $1.54 in the prior-year quarter.

Total oil equivalent realized prices — including cash settlements — were $40.48 per Boe, up 76.5% year over year.

Other Highlights

Total production expenses for the third quarter were $555 million, increasing 104.8% year over year.

The board of directors authorized a $1-billion share buyback, representing 4% of Devon’s market capitalization. Free cash flow generation was $1.1 billion, an eight-fold increase from the fourth-quarter 2020 level.

Financing costs for the reported quarter were $86 million, up 30.3% from $66 million in the year-ago period.

Financial Highlights

As of Sep 30, 2021, the company had cash and cash equivalents including restricted cash of $2,321 million, up from $2,237 million on Dec 31, 2020. It exited the third quarter with $2.3 billion of liquidity and no debt maturities till 2023.

As of Sep 30, 2021, long-term debt amounted to $6,492 million, up from $4,298 million on Dec 31, 2020.

Devon Energy’s net cash from operating activities for third-quarter 2021 was $1,598 million compared with $427 million in the year-ago period.

Guidance

It expects total production for the fourth quarter in the range of 583,000-601,000 Boe/d. Fourth-quarter expenditure is projected in the range of $465-$535 million.

The company’s 2022 total production is expected in the range of 570,000-600,000 Boe/d and upstream capital investment within $1.9-$2.2 billion.

Zacks Rank

Currently, Devon Energy holds a Zacks Rank #2 (Buy).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Other Releases

CNX Resources Corporation CNX reported third-quarter 2021 adjusted earnings of 74 cents per share, which surpassed the Zacks Consensus Estimate of 33 cents by 124.4%.

ConocoPhillips COP reported third-quarter 2021 earnings of $1.77 per share, which surpassed the Zacks Consensus Estimate of $1.53 by 15.7%.

Marathon Petroleum Corporation MPC reported third-quarter 2021 adjusted earnings of 73 cents, beating the Zacks Consensus Estimate of 72 cents per share by 1.4%.


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CNX Resources Corporation. (CNX) : Free Stock Analysis Report

Marathon Petroleum Corporation (MPC) : Free Stock Analysis Report

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