Devon Energy Corp. DVN reported fourth-quarter 2024 earnings per share (EPS) of $1.16, outpacing the Zacks Consensus Estimate of $1 by 16%.
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GAAP EPS in the reported quarter was 98 cents compared with $1.81 in the year-ago quarter. The difference between GAAP and operating earnings in the fourth quarter was due to an impact of 17 cents from fair value changes in financial instruments, 1 cent from deferred tax asset valuation allowance,1 cent from asset and exploration impairments, and 1 cent gain from asset dispositions.
Adjusted earnings in 2024 were $4.82 per share compared with $5.71 in 2023.
Revenues of DVN
Total revenues for the quarter were $4.4 billion, which surpassed the Zacks Consensus Estimate of $4.23 billion by 3.9%. Strong production volumes from the Delaware Basin boosted performance, marginally offset by the drop in realized prices of the commodities. The top line increased 6.2% from the year-ago quarter’s figure.
Total revenues in 2024 were $15.94 billion compared with $15.26 billion in 2023.
Devon Energy Corporation Price, Consensus and EPS Surprise
Devon Energy Corporation price-consensus-eps-surprise-chart | Devon Energy Corporation Quote
Production of DVN
Net production in the fourth quarter totaled 848,000 barrels of oil equivalent per day (Boe/d), up 28.1% year over year. Actual production volume exceeded the guided range of 811,000-830,000 Boe/d. Strong performance from the Delaware Basin and Powder River Basin boosted year-over-year production volumes. The contribution from Eagle Ford and Anadarko Basin also boosted production volumes in the reported quarter.
Natural gas liquids production increased 30.8% year over year to 221,000 barrels per day (Bbl/d). Oil production amounted to 398,000 Bbl/d, up 25.5% on a year-over-year basis, attributed to a strong contribution from the Rockies region.
DVN’s Realized Prices
Realized oil prices (including cash settlements) for the quarter were $69.19 per barrel, down 10.1% from $76.98 a year ago. Realized prices for natural gas liquids were $21.01 per barrel, up 6.8% from $19.67 in the prior-year quarter.
Realized gas prices were $1.46 per thousand cubic feet, indicating a 27.7% decline from $2.02 a year ago.
Total oil equivalent realized prices, including cash settlements, were $40.32 per Boe, down nearly 10.5% year over year.
Highlights of DVN’s Q4 Release
The company achieved a 154% proven reserve replacement ratio in 2024.
Total production expenses in fourth-quarter 2024 were $881 million, up 16.1% year over year.
Devon repurchased shares worth $301 million in the fourth quarter and paid dividends worth $144 million to its shareholders. Management approved a 9% increase in the quarterly dividend for first-quarter 2025, the new quarterly rate will be 24 cents.
Production costs, including taxes, averaged $11.30 per Boe in the fourth quarter, a decline of 1% from the prior period. Effective cost management efforts and lower well workovers drove per-unit rates 10% below from the guidance for the quarter.
Devon Energy’s realized price during the period, including commodity hedges, was $40.32 per Boe, down $4.75 from the year-ago quarter. The decreased price realization largely reflected lower crude benchmark prices, partially offset by higher NGL and natural gas prices.
Other Events Post DVN’s Q4
On Jan. 22, 2025, Devon entered into an extension agreement with Dow to jointly develop a portion of the former’s Anadarko acreage in central Oklahoma. Under this agreement, Devon will monetize half of its working interest in 49 undrilled locations in exchange for approximately a $40 million drilling carry.
On Jan. 31, 2025, Devon and BPX, its partner in the Blackhawk Field in the Eagle Ford, agreed to dissolve the partnership within the play. The transaction is expected to close on April 1, 2025. Devon will gain greater flexibility to allocate capital and anticipates material drilling & completion savings per well, significantly enhancing returns.
Financial Highlights of DVN
As of Dec. 31, 2024, the company had cash and cash equivalents (including restricted cash) of $846 million compared with $875 million as of Dec. 31, 2023.
As of Dec. 31, 2024, long-term debt amounted to $8.39 billion, up from $5.67 billion as of Dec. 31, 2023.
Devon’s net cash from operating activities was $6.6 billion in 2024 compared with $6.54 billion in 2023. Capital expenditures in 2024 totaled $3.64 million, down 52% from $3.88 billion in 2023.
Devon’s Guidance
First-quarter production is expected in the range of 805,000-825,000 Boe per day and capital spending is estimated in the band of $0.98-$1.04 billion.
Production volume in 2025 is expected in the range of 805,000-825,000 Boe per day and capital spending is estimated in the band of $3.8-$4 billion. Production volume includes expected production of 380,000-386,000 barrels of oil per day.
Devon’s Zacks Rank
Devon currently carries a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Releases
TotalEnergies SE TTE reported fourth-quarter 2024 operating earnings of $1.90 (€1.78) per share, which surpassed the Zacks Consensus Estimate of $1.87 by 1.6%. The bottom line declined 12% from the year-ago figure of $2.16 (€2.02).
TTE’s long-term (three-to-five years) earnings growth rate is currently pinned at 7.8%. The Zacks Consensus Estimate for 2025 EPS is pegged at $8.02, indicating a year-over-year decline of 3.22%.
Chevron Corporation CVX reported adjusted fourth-quarter earnings per share of $2.06, missing the Zacks Consensus Estimate of $2.19 and down from the year-ago adjusted profit of $3.45.
CVX’s long-term earnings growth rate is currently pinned at 10.1%. The Zacks Consensus Estimate for 2025 EPS is pegged at $10.79, indicating year-over-year growth of 7.36%.
CNX Resources Corporation CNX reported fourth-quarter 2024 operating earnings of 57 cents per share, which beat the Zacks Consensus Estimate of 43 cents by 32.6%.
CNX’s long-term earnings growth rate is currently pinned at 32.02%. The Zacks Consensus Estimate for 2025 EPS is pegged at $2.36, indicating a year-over-year decline of 25.53%.
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