Breaking News
Investing Pro 0
Cyber Monday Extended SALE: Up to 60% OFF InvestingPro+ CLAIM OFFER

U.S. shale companies top Wall Street estimates, focus on returns

Commodities May 02, 2022 05:47PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: A pump jack operates at a well site leased by Devon Energy Production Company near Guthrie, Oklahoma September 15, 2015. REUTERS/Nick Oxford
 
DVN
+0.26%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
FANG
+0.53%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

By Liz Hampton and Arunima Kumar

(Reuters) -U.S. shale producers Devon Energy (NYSE:DVN), Diamondback (NASDAQ:FANG) Energy and Coterra Energy on Monday reported sharp increases in profit that beat Wall Street estimates, but held production plans steady as they stressed a focus on shareholder returns.

U.S. oil and gas producers are facing a windfall from higher energy prices, as Russia's invasion of Ukraine has stoked global supply concerns and sent oil futures to their highest levels in years. On Monday, WTI was trading around $105 a barrel.

Devon and Coterra reported more than a four-fold rise in quarterly income on Monday, while Diamondback's profit rose more than three-fold. All three increased their dividends.

Devon raised its dividend payout by 27% to a record high of $1.27 per share and also increased its share repurchase program by 25% to $2 billion. Diamondback boosted its base dividend by 17% to $2.80 a share, while Coterra's payout was 7% higher at 60 cents per share.

Devon said its total oil production rose to 575,000 barrels of oil equivalent per day (boepd) for the reported quarter, from 499,000 boepd a year ago. Excluding hedges, Devon said its realized price rose to $61.40 per boe in the quarter from $39.14.

Diamondback's average production for the quarter was 222,800 barrels of oil per day. The company stressed it would maintain current output plans, and called current operating conditions challenging, pointing to inflation and labor and materials shortages.

"Diamondback is committed to maintaining our current production levels," Chief Executive Officer Travis Stice said in a release.

"While we believe that efficiently growing our production base is achievable over the long-term, we do not feel that today is the appropriate time," he added, warning that the market outlook was still too uncertain to warrant investing in boosting production.

Coterra reported an adjusted profit of $818 million, or $1.01 per share, topping analysts' forecasts of 83 cents, according to Refinitiv IBES. Diamondback's adjusted net income was $929 million, o $5.20 a share, also topping estimates of $4.51.

Oklahoma City-based Devon's earnings rose to $1 billion, or $1.48 per share, for the quarter ended March 31, from $213 million, or 32 cents per share, last year.

Shares of Coterra were up 2.6% in after-hours trading to $28.92 and Devon rose 3.2% to $60.22. Diamondback was up 0.61% to $128.28.

U.S. shale companies top Wall Street estimates, focus on returns
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email