Devon Energy (DVN) Q2 Earnings & Revenues Surpass Estimates

Devon Energy Corp. DVN reported second-quarter 2021 adjusted earnings of 60 cents, beating the Zacks Consensus Estimate of 53 cents per share by 13.2%. In the year-ago quarter, the company incurred a loss of 18 cents per share.

GAAP earnings for the second quarter were 38 cents compared with 32 cents per share in the year-ago period.

Revenues

Total revenues of $2,417 million surpassed the Zacks Consensus Estimate by 1.5%. The top line also improved 17.9% from the year-ago figure.

Devon Energy Corporation Price, Consensus and EPS Surprise

Devon Energy Corporation Price, Consensus and EPS SurpriseDevon 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 second-quarter 2021 touched 567,000 barrels of oil equivalent per day (Boe/d), up 74.5% year over year. Oil production averaged 291,000 barrels per day (Bbl/d), which increased 90.2% on a year-over-year basis, primarily due to strong contribution from Delaware and Williston Basin assets. Natural gas liquids production was also up 86.9% year over year.

Realized Prices

Realized oil prices for the quarter were $50.34 per barrel, up 37.9% from $36.5 in the year-ago period. Realized prices for natural gas liquids were up 151.5% to $23.64 per barrel from $9.4 in the prior-year quarter.

Realized gas prices were up 40.1% to $2.2 per thousand cubic feet from $1.57 in the prior-year quarter.

Total oil equivalent realized prices — including cash settlements — were $34.64 per Boe, up 56% year over year.

Other Highlights

Total production expenses for the second quarter were $513 million, increasing 95% year over year. With capital programs focused on developing higher-margin production opportunities, oil and natural gas liquid volumes accounted for 74% of Devon Energy’s product mix for the quarter.

Financing costs for the reported quarter were $80 million, up from $69 million in the year-ago period.

Financial Highlights

As of Jun 30, 2021, the company had cash and cash equivalents including restricted cash of $1,539 million, up from $2,237 million on Dec 31, 2020. It exited the second quarter with $4.5 billion of liquidity and no debt maturities till 2023.

As of Jun 30, 2021, long-term debt amounted to $6,502 million, up from $4,298 million on Dec 31, 2020.

Devon Energy’s net cash from operating activities for second-quarter 2021 was $1,093 million compared with $150 million in the year-ago period.

Guidance

It expects total production for the third quarter in the range of 566,000-594,000 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 539,000-569,000 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. Third-quarter expenditure is projected in the range of $420-$490 million.

Zacks Rank

Currently, Devon Energy sports a Zacks Rank #1 (Strong Buy).

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

Other Releases

Occidental Petroleum Corporation OXY reported second-quarter 2021 earnings of 32 cents per share versus the Zacks Consensus Estimate of a breakeven.

CNX Resources Corporation CNX reported second-quarter 2021 adjusted earnings of 18 cents per share, which lagged the Zacks Consensus Estimate of 25 cents by 28%.

Continental Resources CLR reported second-quarter 2021 adjusted earnings of 91 cents, beating the Zacks Consensus Estimate of 57 cents per share by 59.6%.

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By Matt Earle

Matthew Earle is the Founder of MiningFeeds. In 2005, Matt founded MiningNerds.com to provide data and information to the mining investment community. This site was merged with Highgrade Review to form MiningFeeds. Matt has a B.Sc. degree with a minor in geology from the University of Toronto.

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