- Devon Energy‘s core earnings per share (EPS) for the second quarter were $1.41, outperforming the previous year’s $1.18 EPS and the estimated $1.28 EPS.
- The company’s production for the second quarter was 707,000 barrels of oil equivalent per day (mboed), up from 662,000 mboed year-over-year and above the estimated 681,541 mboed.
- Free cash flow for the second quarter stood at $587 million, marking an 80% increase year-over-year.
- For the third quarter, Devon forecasts production between 670,000 and 690,000 mboed, compared to the estimated 677,956 mboed.
- The company expects a marketing and midstream operating loss ranging from $5 million to $15 million in the third quarter.
- Exploration expenses for the third quarter are anticipated to be between $0 to $5 million, against the estimate of $5.75 million.
- Projected capital expenditure for the third quarter is $900 million, compared to the estimate of $810.4 million.
- Devon revised its full-year production forecast to 677,000 to 688,000 mboed, up from the previous forecast of 655,000 to 675,000 mboed, but slightly lower than the estimate of 689,892 mboed.
- Full-year marketing and midstream operating losses are expected to be $50 million, consistent with prior estimates of a $40 million to $50 million loss.
- Full-year exploration expenses are projected between $15 million to $25 million, in line with the estimate of $25.6 million.
- Full-year capital expenditure is forecasted to be between $3.3 billion to $3.6 billion, close to the estimate of $3.57 billion.
- In the third quarter, Devon expects capital spending to be around $900 million and oil production to average between 319,000 to 325,000 barrels per day.
- The company has increased its full-year 2024 production guidance by 5% based on strong first-half performance.
- Devon repurchased 5.2 million shares of common stock at a total cost of $256 million in the second quarter.
- A fixed-plus-variable dividend payout of $0.44 per share has been declared based on second-quarter results.
- Analyst recommendations include 21 buys, 11 holds, and 0 sells for Devon Energy.
Devon Energy on Smartkarma
Analyst coverage of Devon Energy on Smartkarma reveals positive sentiment towards the company’s recent performance and future prospects. Baptista Research, in their report “Devon Energy Corporation: Leveraging Technology and Methodologies to Improve Extraction Efficiency! – Major Drivers,” highlights how Devon Energy exceeded operational and financial targets in Q1 2024. The company demonstrated strong production output, driven by factors such as improved well productivity and infrastructure optimization in the Delaware Basin.
In another report by Baptista Research titled “Devon Energy: Enhancements In Bakken & Eagle Ford Resources & 5 Other Growth Drivers,” the focus is on Devon Energy‘s fourth-quarter earnings, which showed promising signs for future growth. The report emphasizes the company’s achievements in 2023, positive projections for 2024, valuable resources in their portfolio, and strategic allocation of free cash flow. Baptista Research‘s evaluation aims to provide insights into potential influences on Devon Energy‘s stock price and conducts an independent valuation using a Discounted Cash Flow (DCF) methodology.
A look at Devon Energy Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 4 | |
| Growth | 5 | |
| Resilience | 3 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 3.6 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Devon Energy Corporation, an independent energy company with a primary focus on oil and gas exploration, production, and transportation, has received varying Smart Scores across different factors. The company scores well in areas such as Dividend and Growth, indicating a positive outlook for investors seeking stable returns and potential growth opportunities. This suggests that Devon Energy may be a favorable choice for those interested in companies with strong dividend policies and potential for expansion.
While the company scores moderately in Value, Resilience, and Momentum, it indicates that Devon Energy may have some room for improvement in these areas to enhance its overall performance. Investors looking for companies with good value propositions and strong momentum trends might find Devon Energy slightly below top-performing companies in these aspects. However, with a strong emphasis on growth and dividends, Devon Energy presents itself as a promising long-term investment option in the energy sector.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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