NYSE$DVN

Devon Energy Corp · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

Devon Energy reported strong fourth-quarter results, exceeding operational and financial targets. The company generated significant free cash flow and increased its fixed quarterly dividend by 10 percent.

Devon Energy reported net earnings of $1.2 billion, or $1.81 per diluted share, in the fourth quarter of 2023. The company's core earnings were $902 million, or $1.41 per diluted share. Operating cash flow totaled $1.7 billion, resulting in $827 million of free cash flow. Production averaged 662,000 oil-equivalent barrels (Boe) per day.

  • Fourth-quarter production exceeded the top end of guidance, averaging 662,000 oil-equivalent barrels per day.
  • Operating cash flow totaled $1.7 billion and free cash flow reached $827 million in the fourth quarter.
  • The board approved a 10 percent increase to the fixed quarterly dividend.
  • Balance sheet continued to strengthen with cash balances increasing $114 million to a total of $875 million.

Headline financials

Total Revenue

$3.82B

Previous: $4.3B-11.1%
EPS (adj)

$1.41

Previous: $1.66-15.1%
Total Production (Boe/d)

662.0K

Previous: 636.0K+4.1%
Capital Expenditures

-$920M

No prior period
Net Income

$1.2B

Previous: $1.2B+0.0%
Operating Income

$1.7B

No prior period
Gross Profit

$1.32B

Previous: $1.73B-23.9%
Stock-Based Comp

$23M

Previous: $23M+0.0%

Revenue & EPS history

Devon Energy · Revenue · Quarterly

$3.82B

Q4 2023-11.1%vs Q4 2022
Beat estimate in 8 of 14 quarters(57%)
ActualEstimate

Forward guidance

Devon has reaffirmed its previously issued outlook for production and capital in 2024. The company plans to sustain oil production at around 315,000 barrels per day, with total volumes approximating 650,000 Boe per day.

Tailwinds

  • Sustain oil production at around 315,000 barrels per day
  • Total volumes approximating 650,000 Boe per day
  • Capital requirements to deliver this production are expected to decline approximately 10 percent year-over-year
  • Successfully restored the affected production across all its operating areas
  • Does not expect this weather-related downtime to impact production targets for the full-year 2024

Headwinds

  • Severe winter weather across the company’s portfolio led to unplanned power outages and production disruptions.
  • These weather-related curtailments are estimated to reduce first-quarter production by 2 percent.
  • Devon expects first-quarter production to approximate 640,000 Boe per day (48 percent oil).
  • Capital program in 2024 is expected to be weighted towards the first half of the year.
  • First-quarter capital spending is estimated to range from $915 million to $965 million.

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 Q4 2023

Historical avgQ4 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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