Devon Energy Q3 preview: Another earnings beat expected

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Devon Energy (NYSE:DVN) is scheduled to announce Q3 earnings results on Tuesday, Nov. 1, after market close.

The consensus EPS estimate is $2.13 (+97.2% Y/Y) and the consensus revenue estimate is $4.79B (+38% Y/Y).

Over the last 2 years, DVN has beaten EPS estimates 88% of the time and revenue estimates 75% of the time.

Over the last 3 months, EPS estimates have seen 3 upward revisions and 15 downward. Revenue estimates have seen 1 upward revision and 2 downward.

Devon’s (DVN) results would’ve likely benefited from high crude prices, as was the case with other oil majors including Exxon Mobil (XOM) and Chevron (CVX), which posted a combined $31B in quarterly profits.

Shares of the oil and gas producer slipped despite its better-than-expected Q2 earnings as well as a 22% dividend increase. Devon (DVN) also raised FY production guidance to 600K-610K boe/day on strong well performance YTD and impact from the recent Williston Basin bolt-on acquisition.

SA contributor Jonathan Weber said Devon (DVN) is highly profitable, but rated it Hold due to the stock’s recent rally and other cheaper energy stocks.

Devon (DVN) stock climbed 73.7% YTD, outperforming the S&P 500 Energy and Dow Jones U.S. Oil & Gas indices by a wide margin.

Recent news:

  • Devon (DVN) entered into an LNG export partnership with Delfin Midstream, which also provides opportunity for additional future investments in Delfin by Devon (DVN).
  • Devon (DVN) will acquire Eagle Ford shale operator Validus Energy for $1.8B, which will provide high cash operating margins through access to premium Gulf Coast pricing and low per-unit costs.

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