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Devon Energy Corp. DVN reported first-quarter 2022 adjusted earnings of $1.88 per share, beating the Zacks Consensus Estimate of $1.75 by 8%. Earnings were up 35.3% from the year-ago quarter. The year-over-year improvement was due to the company’s oil-weighted production mix and low operating costs as well as recovery in commodity prices.
GAAP earnings for the first quarter were $1.48 compared with $2.23 per share in the year-ago period.
Revenues
Total revenues of $3,812 million lagged the Zacks Consensus Estimate by 5.1%. The top line improved 85.9% from the year-ago figure.
Devon Energy Corporation Price, Consensus and EPS Surprise
Devon Energy Corporation price-consensus-eps-surprise-chart | Devon Energy Corporation Quote
Production
Total net production for first-quarter 2022 touched 575,000 barrels of oil equivalent per day (Boe/d), up 15.2% year over year. First-quarter production was near the high end of the guided range of 560,000-580,000 Boe/d. Production for the quarter was driven by high-margin production growth in the Delaware Basin.
Oil production averaged 288,000 barrels per day (Bbl/d), which increased 7.5% on a year-over-year basis, primarily due to strong contributions from Delaware Basin assets. Natural gas liquids production was also up 37.4% year over year to 136,000 BBl/d.
Realized Prices
Realized oil prices for the quarter were $81.62 per barrel, up 76.9% from $46.15 in the year-ago period. Realized prices for natural gas liquids were up 52.2% to $37.76 per barrel from $24.81 in the prior-year quarter.
Realized gas prices were up 17.1% to $3.15 per thousand cubic feet from $2.69 in the prior-year quarter.
Total oil equivalent realized prices — including cash settlements — were $54.75 per Boe, up 61.2% year over year.
Other Highlights
Total production expenses for the first quarter were $618 million, increasing 34.9% year over year.
The board of directors expanded the company’s share-repurchase authorization by 25% to $2 billion, which is equivalent to 5% of Devon’s market capitalization. Since the announcement of the program, Devon has repurchased 19.1 million shares for $891 million.
Devon’s free cash flow for first-quarter 2022 was $1.3 billion. Financing costs for the reported quarter were $85 million, up 10.4% from $77 million in the year-ago period.
Financial Highlights
As of Mar 31, 2022, the company had cash and cash equivalents, including restricted cash of $2,625 million, up from $2,271 million as of Dec 31, 2021. Total liquidity as of Mar 31, 2022, was $5,625 million.
As of Mar 31, 2022, long-term debt amounted to $6,471 million, down from $6,482 million as of Dec 31, 2021.
Devon Energy’s net cash from operating activities for first-quarter 2022 was $1,837 million compared with $592 million in the year-ago period.