Devon Energy (DVN) Down 9.3% Since Last Earnings Report: Can It Rebound?
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A month has gone by since the last earnings report for Devon Energy (DVN). Shares have lost about 9.3% in that time frame, underperforming the S&P 500.Will the recent negative trend continue leading up to its next earnings release, or is Devon Energy due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers. Devon Energy's Q3 Earnings and Revenues Beat EstimatesDevon Energy Corp. reported third-quarter 2024 earnings per share (EPS) of $2.51, outpacing the Zacks Consensus Estimate of $2.47 by 1.6%.GAAP earnings per share in the reported quarter were $1.30 compared with $1.34 in the year-ago quarter. The difference between GAAP and operating earnings in the third quarter was due to an impact of 20 cents from fair value changes in financial instruments, 1 cent from deferred tax asset valuation allowance, and 1 cent from restructuring and transaction costs.RevenuesTotal revenues for the quarter were $4.02 billion, which surpassed the Zacks Consensus Estimate of $3.75 billion by 7.2%. Strong production volumes from the Delaware Basin boosted performance, offset marginally by the drop in realized prices of the commodities.The top line increased 4.9% from the year-ago quarter’s figure.ProductionNet production for the third quarter totaled 728,000 barrels of oil equivalent per day (Boe/d), up 9.5% year over year. Actual production volume exceeded the guided range of 670,000-690,000 Boe/d. Strong performance from the Delaware Basin and Powder River Basin boosted year-over-year production volumes.Natural gas liquids production increased 16.9% year over year to 194,000 barrels per day (Bbl/d). Oil production amounted to 335,000 Bbl/d, up 4.4% on a year-over-year basis, attributed to a strong contribution from the Delaware Basin.Realized PricesRealized oil prices (including cash settlements) for the quarter were $74.26 per barrel, down 6.95% from $79.81 a year ago. Realized prices for natural gas liquids were $19.36 per barrel, down 6.6% from $20.72 in the prior-year quarter.Realized gas prices were 84 cents per thousand cubic feet, reflecting a 58.2% decline from $2.01 a year ago.Total oil equivalent realized prices, including cash settlements, were $40.71 per barrel of oil equivalent, down nearly 13.2% year over year.Other HighlightsTotal production expenses in third-quarter 2024 were $763 million, up 0.8% year over year.Devon repurchased shares worth $295 million in the third quarter from its $3 billion share-repurchase program. Since the inception of the buyback program in late 2021, the company has repurchased shares worth $3 billion.Due to a year-over-year decline in realized price in the reported quarter and an increase in gathering, processing and transportation expenses, it resulted in field-level cash margins of $28.41 per Boe in the reported quarter, down 18.2% year-over-year.Devon declared its fixed quarterly cash dividend of 22 cents per share, payable on Dec. 30, 2024, to shareholders of record at the close of business on Dec. 13, 2024. With the recent pullback in commodity prices and equities, as well as the additional leverage taken on by the company, Devon’s management has decided not to declare a variable dividend in the current quarter. Devon’s capital allocation will now focus on strengthening the balance sheet and returning capital to shareholders through the fixed dividend and share buybacks.Financial HighlightsAs of Sept. 30, 2024, the company had cash and cash equivalents (including restricted cash) of $676 million compared with $875 million as of Dec. 31, 2023.As of Sept. 30, 2024, long-term debt amounted to $8.88 billion, up from $5.67 billion as of Dec. 31, 2023.Devon’s net cash from operating activities was $1.66 billion in the fourth quarter compared with $1.72 billion a year ago. Capital expenditures totaled $877 million, down 3% from the previous year quarter.Devon’s Q4 GuidanceFourth-quarter production is expected in the range of 811,000-830,000 Boe per day and capital spending is estimated in the band of $915-$985 million. The fourth-quarter production guidance represents a 13% increase sequentially.This fourth-quarter volume growth will be driven by an estimated 110,000 Boe/d of incremental production from Devon Energy’s Williston Basin acquisition.How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a downward trend in estimates review.The consensus estimate has shifted -18.09% due to these changes.VGM ScoresAt this time, Devon Energy has an average Growth Score of C, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of A on the value side, putting it in the top 20% for this investment strategy.Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.OutlookEstimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Devon Energy has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.Performance of an Industry PlayerDevon Energy belongs to the Zacks Oil and Gas - Exploration and Production - United States industry. Another stock from the same industry, Cheniere Energy (LNG), has gained 13% over the past month. More than a month has passed since the company reported results for the quarter ended September 2024.Cheniere Energy reported revenues of $3.76 billion in the last reported quarter, representing a year-over-year change of -9.5%. EPS of $3.93 for the same period compares with $2.37 a year ago.For the current quarter, Cheniere Energy is expected to post earnings of $2.75 per share, indicating a change of -52.3% from the year-ago quarter. The Zacks Consensus Estimate has changed +0.8% over the last 30 days.The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Cheniere Energy. Also, the stock has a VGM Score of C.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Devon Energy Corporation (DVN): Free Stock Analysis Report Cheniere Energy, Inc. (LNG): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks
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Nachrichten zu Devon Energy Corp.
Analysen zu Devon Energy Corp.
Datum | Rating | Analyst | |
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16.01.2019 | Devon Energy Equal Weight | Barclays Capital | |
30.11.2018 | Devon Energy Market Perform | Cowen and Company, LLC | |
29.08.2018 | Devon Energy Overweight | Barclays Capital | |
12.04.2018 | Devon Energy Sector Outperform | Scotia Howard Weil | |
06.02.2018 | Devon Energy Neutral | B. Riley FBR, Inc. |
Datum | Rating | Analyst | |
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29.08.2018 | Devon Energy Overweight | Barclays Capital | |
12.04.2018 | Devon Energy Sector Outperform | Scotia Howard Weil | |
19.12.2017 | Devon Energy Buy | Seaport Global Securities | |
14.07.2017 | Devon Energy Outperform | BMO Capital Markets | |
13.04.2017 | Devon Energy Buy | Stifel, Nicolaus & Co., Inc. |
Datum | Rating | Analyst | |
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16.01.2019 | Devon Energy Equal Weight | Barclays Capital | |
30.11.2018 | Devon Energy Market Perform | Cowen and Company, LLC | |
06.02.2018 | Devon Energy Neutral | B. Riley FBR, Inc. | |
21.06.2017 | Devon Energy Neutral | Seaport Global Securities | |
10.08.2015 | Devon Energy Equal Weight | Barclays Capital |
Datum | Rating | Analyst | |
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08.12.2015 | Devon Energy Sell | UBS AG | |
06.10.2009 | Devon Energy underperform | Credit Suisse Group | |
12.12.2005 | Devon Energy underperform | Sanford C. Bernstein & Co |
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