NYSE$DVN

Devon Energy Corp · Q1 2020 earnings

Q1 2020 earnings · · Investor relations

Briefing

Devon Energy's financial and operational results were reported for Q1 2020, with key highlights including exceeding oil production guidance, increasing operating cash flow, and maintaining a strong financial position.

Devon Energy reported first-quarter 2020 results, highlighting oil production exceeding guidance, increased operating cash flow, and a strong financial position. The company is reducing capital investment and improving cost outlook for 2020.

  • Upstream capital expenditures were 12 percent below midpoint guidance due to efficiencies.
  • First-quarter oil production exceeded guidance by 3,000 barrels per day.
  • Operating cash flow increased 21 percent year-over-year to $529 million.
  • Free cash flow generation reached $104 million.

Headline financials

Total Revenue

$2.09B

Previous: $1.5B+39.0%
EPS (adj)

$0.13

Previous: $0.36-63.9%
Total Production (Boe/d)

348.0K

No prior period
Capital Expenditures

-$4M

Previous: -$11M+63.6%
Free Cash Flow

-$1.82B

Previous: -$328M-454.9%
Net Income

-$1.82B

Previous: -$317M-472.9%
Operating Income

-$1.39B

Previous: $542M-355.5%
Gross Profit

$1.51B

Previous: $742M+103.4%
Cash & Equivalents

$1.53B

Previous: $1.33B+15.1%
Total Assets

$11.1B

Previous: $18.1B-38.4%
Stock-Based Comp

$20M

Previous: $44M-54.5%

Revenue & EPS history

Devon Energy · Revenue · Quarterly

$2.09B

Q1 2020+39%vs Q1 2019
Beat estimate in 11 of 16 quarters(69%)
ActualEstimate

Forward guidance

Devon Energy has reduced its capital expenditures by $800 million for the full-year 2020. The revised capital outlook of approximately $1 billion represents a reduction of nearly 45 percent compared to the company’s original 2020 capital budget.

Tailwinds

  • Capital investment reduced 45 percent from original plan to $1 billion
  • Oil production expected to be essentially flat compared to 2019
  • Hedges protect approximately 90 percent of oil volumes at $42 per barrel
  • Full-year cost outlook improved by $250 million, includes executive pay reductions
  • Barnett Shale asset sale process on track to close by year-end

Headwinds

  • Guidance assumes 10,000 barrels per day of oil curtailments in the second quarter
  • The COVID-19 pandemic and its related repercussions have created significant volatility, uncertainty and turmoil in the global economy and our industry.
  • This turmoil has included an unprecedented supply-and-demand imbalance for oil and other commodities, resulting in a swift and material decline in commodity prices in early 2020.
  • Our future actual results could differ materially from the forward-looking statements in this press release due to the COVID-19 pandemic and related impacts, including, by, among other things: contributing to a sustained or further deterioration in commodity prices; causing takeaway capacity constraints for production, resulting in further production shut-ins and additional downward pressure on impacted regional pricing differentials; limiting our ability to access sources of capital due to disruptions in financial markets; increasing the risk of a downgrade from credit rating agencies; exacerbating counterparty credit risks and the risk of supply chain interruptions; and increasing the risk of operational disruptions due to social distancing measures and other changes to business practices.
  • The volatility of oil, gas and NGL prices

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2020

Historical avgQ1 2020

-0.0%

Avg return

Earnings day

+2.0%

Avg return

5 days after

+2.9%

Avg return

30 days after

55%

40 / 73 earnings

Positive

+13.6%

Q2 2020

Best reaction

-12.8%

Q3 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-4.7%-8.3%-13.2%
Q4 2025+1.5%-0.8%+10.5%
Q3 2025+0.4%+8.7%+15.9%
Q2 2025-0.2%+2.7%+7.1%
Q1 2025-1.1%+9.7%+5.6%
Q4 2024+7.7%+7.0%+3.6%
Q3 2024+2.2%-0.7%-8.1%
Q2 2024+4.1%+8.3%+1.4%
Q1 2024-1.6%-0.6%-4.1%
Q4 2023+0.5%+1.3%+14.5%
Q3 2023-5.4%-2.4%-7.0%
Q2 2023-7.9%-5.9%-5.4%
Q1 2023-2.4%-5.6%-0.6%
Q4 2022-10.0%-16.1%-27.2%
Q3 2022-12.8%-7.6%-11.7%
Q2 2022-3.5%-9.9%+12.4%
Q1 2022+10.5%+19.8%+31.5%
Q4 2021+3.0%+4.8%+10.1%
Q3 2021-0.0%+3.8%-1.0%
Q2 2021-0.8%+6.0%+15.0%
Q1 2021+6.8%+11.0%+32.0%
Q4 2020+8.8%+4.3%+11.9%
Q3 2020+10.2%+19.0%+82.5%
Q2 2020+13.6%+14.2%-1.2%
Q1 2020+0.6%+11.2%+11.4%
Q4 2019-0.4%-8.1%-71.3%
Q3 2019-2.2%+1.5%-2.2%
Q2 2019+0.4%-0.0%-2.3%
Q1 2019-2.7%-4.5%-21.2%
Q4 2018+6.5%+4.3%+11.4%
Q3 2018+2.3%-0.3%-16.2%
Q2 2018-3.5%-4.5%-4.3%
Q1 2018+5.2%+4.2%+14.4%
Q4 2017-10.4%-7.9%-5.3%
Q3 2017+8.6%+9.1%+7.0%
Q2 2017+0.3%+1.1%-5.7%
Q1 2017-2.9%-3.3%-12.8%
Q4 2016-2.3%-2.4%-10.0%
Q3 2016+4.4%+6.1%+26.3%
Q2 2016+5.8%+10.0%+21.7%
Q1 2016-9.4%
Q4 2015-6.3%
Q3 2015+7.8%
Q2 2015-2.9%
Q1 2015-2.2%
Q4 2014-3.8%
Q3 2014+5.3%
Q2 2014-1.5%
Q1 2014+1.1%
Q4 2013+2.6%
Q3 2013-6.3%
Q2 2013+5.1%
Q1 2013+2.9%
Q4 2012-9.4%
Q3 2012-9.4%
Q2 2012-6.3%
Q1 2012-5.9%
Q4 2011+0.1%
Q3 2011+5.8%
Q2 2011-7.8%
Q1 2011+0.4%
Q4 2010+3.5%
Q3 2010+3.8%
Q2 2010-0.7%
Q1 2009-4.3%
Q1 2010+2.2%
Q4 2007+0.7%
Q4 2009+0.7%
Q3 2009+1.4%
Q3 2008+1.4%
Q2 2009+0.9%
Q2 2008+0.9%
Q4 2008+0.9%

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