NYSE$DVN

Devon Energy Corp · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Devon Energy reported record oil production and solid financial results, driven by Delaware Basin performance and disciplined capital allocation.

Devon Energy reported net earnings of $690 million, or $1.07 per diluted share, in the second quarter of 2023. Core earnings were $755 million, or $1.18 per diluted share. The company generated $1.4 billion in operating cash flow and $326 million of free cash flow. Oil production reached a record high of 323,000 barrels per day.

  • Oil production reached an all-time high of 323,000 barrels per day in the second quarter.
  • Wolfcamp B appraisal success enhances resource quality in Delaware Basin.
  • Declared fixed-plus-variable dividend payout of $0.49 per share based on second quarter results.
  • Share-repurchase program retired 3.8 million shares at a total cost of $200 million in the second quarter.

Headline financials

Total Revenue

$3.45B

Previous: $5.63B-38.6%
EPS (adj)

$1.18

Previous: $2.59-54.4%
Total Production (Boe/d)

662.0K

No prior period
Free Cash Flow

$690M

Previous: $1.93B-64.3%
Net Income

$690M

Previous: $1.93B-64.3%
Operating Income

$3.38B

Previous: $5.54B-38.9%
Gross Profit

$3.45B

Previous: $5.63B-38.6%
Cash & Equivalents

$372M

Previous: $3.3B-88.7%
Total Assets

$23.4B

Previous: $23.2B+0.7%
Stock-Based Comp

$25M

Previous: $23M+8.7%

Revenue & EPS history

Devon Energy · Revenue · Quarterly

$3.45B

Q2 2023-38.6%vs Q2 2022
Beat estimate in 8 of 14 quarters(57%)
ActualEstimate

Forward guidance

For the full-year 2023, Devon expects to sustain production in the range of 643,000 to 663,000 Boe per day. Total capital investment for the year is expected to range from $3.6 billion to $3.8 billion. For the third quarter, Devon expects oil production to a range of 322,000 to 330,000 barrels per day.

Tailwinds

  • Sustain production in the range of 643,000 to 663,000 Boe per day for full year 2023.
  • Capital requirements in 2023 are estimated to be self-funded at pricing levels as low as a $40 WTI oil price.
  • Place online around 90 gross wells in the third quarter.
  • Oil production to a range of 322,000 to 330,000 barrels per day in the third quarter.
  • Capital spending expected to approximate $900 million in the third quarter.

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 Q2 2023

Historical avgQ2 2023

-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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