Devon Energy Q3 core profit beats on Permian Basin output
Overview
U.S. oil and gas producer's Q3 core EPS and adjusted net income beat analyst expectations
Q3 revenue totaled $5.9 bln
Company agreed to sell Eagle Ford assets for $4.2 bln, closing expected early 2027
Outlook
Devon expects Q4 2026 production of 1.66 mln-1.7 mln Boe per day
Company sees Q4 2026 oil production between 550,000 and 560,000 barrels per day
Devon forecasts Q4 2026 capital spending of $1.29 bln-$1.395 bln
Result Drivers
PERMIAN BASIN OUTPUT - Solid performance in Permian Basin oil production offset lower Eagle Ford volumes due to timing of completions
LOWER OPERATING COSTS - Production, gathering, and administrative expenses came in below guidance ranges
IMPROVED GAS REALIZATIONS - Additional Permian takeaway capacity helped improve natural gas price realizations above guidance
Company press release: Full Story
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Revenue | $5.90 bln | ||
Q3 Core EPS | Beat | $1.42 | $1.33 (25 Analysts) |
Q3 EPS | $0.88 | ||
Q3 Adjusted Net Income | Beat | $1.60 bln | $1.49 bln (18 Analysts) |
Q3 Net Income | $1 bln | ||
Q3 Free Cash Flow | $1.50 bln |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 28 "strong buy" or "buy", 1 "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the oil & gas exploration and production peer group is "buy"
Wall Street's median 12-month price target for Devon Energy Corporation is $62.00, about 40.5% above its November 4 closing price of $44.12
The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 9 three months ago
Reuters Recommended Reads
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Nov 4 - Shale producer APA tops quarterly profit estimates on higher oil prices
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)