OKLAHOMA CITY - Devon Energy Corp. (NYSE: NYSE:DVN) reported a modest beat on adjusted earnings per share (EPS) for the first quarter of 2024, surpassing analyst expectations by $0.04. The company announced an EPS of $1.16 against the consensus estimate of $1.12. However, revenue fell slightly short of expectations, coming in at $3.6 billion, just below the analyst forecast of $3.64 billion.
The oil and gas producer, known for its significant presence in the Delaware Basin, experienced a revenue increase from the same quarter last year, indicating a sustained growth trajectory. The company has also declared its quarterly dividend and provided an optimistic outlook for the rest of the year, without specifying the percentage increase in revenue compared to the previous year.
Devon's updated full-year 2024 production forecast reflects a 2% increase, with expected daily production ranging between 655,000 and 675,000 barrels of oil equivalent (Boe). Notably, this production boost is anticipated to be achieved without raising capital expenditure, which is projected to decrease by 10% from 2023, remaining between $3.3 billion and $3.6 billion.
For the second quarter of 2024, following the addition of a fourth Delaware completion crew in January, production is expected to climb, with estimates ranging from 670,000 to 690,000 Boe per day. The capital spending for the quarter is estimated to be around $950 million, indicating a front-loaded capital program for the year.
While the company did not provide specific guidance for the upcoming quarter or the full year in comparison to analyst consensus, the increased production forecast and reduced capital expenditure are positive indicators of efficient operations and financial discipline. Devon's focus on generating free cash flow and returning capital to shareholders, coupled with safe and sustainable operations, remains central to its business strategy.
The company's CEO commented on the results, stating, "Our first-quarter performance sets a strong foundation for the year. We are executing well on our operational plans, and our financial discipline is yielding tangible benefits for our shareholders."
Investors should note that the stock market reaction to Devon's earnings report was not provided, and therefore, no conclusions can be drawn from the stock's performance post-earnings release.
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