Devon Q2 Earnings & Sales Beat Estimates, Production Guidance Raised

Devon Energy Corp. DVN reported second-quarter 2025 earnings per share (EPS) of 84 cents, beating the Zacks Consensus Estimate of 83 cents by 1.2%. The second-quarter earnings were down 40.4% year over year from $1.41 per share.

GAAP EPS in the reported quarter was $1.41 compared with 77 cents in the year-ago quarter. The difference between GAAP and operating earnings in the second quarter was due to a gain of 38 cents from asset disposition, an impact of 21 cents from fair value changes in financial instruments, a charge of 1 cent from asset and exploration impairments, and 1 cent from restructuring and transaction costs.

Revenues of DVN

Total revenues for the quarter were $4.28 billion, which beat the Zacks Consensus Estimate of $4.01 billion by 6.75%.

Devon Energy Corporation Price, Consensus and EPS Surprise

Devon Energy Corporation price-consensus-eps-surprise-chart | Devon Energy Corporation Quote

Production of DVN

Net production in the second quarter totaled 841,000 barrels of oil equivalent per day (Boe/d), up 18.9% year over year. Actual production volume exceeded the guided range of 810,000-828,000 Boe/d. Improvement in production volumes from Delaware and Anadarko Basin boosted the metric.

Natural gas liquids production increased 21.9% year over year to 222,000 barrels per day (Bbl/d). Oil production amounted to 387,000 Bbl/d, up 15.5% on a year-over-year basis, due to a strong contribution from the Delaware Basin.

DVN’s Realized Prices

Realized oil prices (including cash settlements) for the quarter were $62.97 per barrel, down 20.24% from $78.95 in the year-ago period. Realized prices for natural gas liquids were $17.82 per barrel, down 9.6% from $19.71 in the prior-year quarter.

Realized gas prices were $1.56 per thousand cubic feet, indicating an increase of 41.8% from $1.10 a year ago.

Total oil equivalent realized prices, including cash settlements, were $36.30 per Boe, down nearly 18% year over year.

Highlights of DVN’s Q2 Release

Total production expenses in the second quarter were $899 million, down 1.4% year over year.

Devon repurchased shares worth $249 million in the second quarter and paid dividends worth $156 million to its shareholders.

Production costs, including taxes, averaged $11.75 per Boe in the second quarter, a decline of 5% from the prior-year period.

Devon’s realized price during the period, including commodity hedges, was $36.30 per Boe. The figure dropped $7.99 per Boe from the year-ago quarter’s actual. This decline in price realization was primarily due to lower natural gas liquids and oil pricing.
 
During the second quarter, Devon divested its equity interest in the Matterhorn Pipeline for $372 million, resulting in a $307 million gain and approximately $68 million of associated taxes.

Financial Highlights of DVN

As of June 30, 2025, the company had cash and cash equivalents (including restricted cash) of $1.75 billion compared with $0.85 billion as of Dec. 31, 2024.

Long-term debt amounted to $8.39 billion as of June 30, 2025. The figure was on par with the actual of Dec. 31, 2024.

Devon’s net cash from operating activities was $1.54 billion in second-quarter 2025 compared with $1.53 billion in second-quarter 2024. Capital expenditures in second-quarter 2025 totaled $0.96 billion, up marginally from $0.95 billion in second-quarter 2024.

Devon’s Guidance

Third-quarter production is expected in the range of 829,000-847,000 Boe/d and capital spending is estimated in the band of $0.87-$0.93 billion.
 
Production volume in 2025 is now expected in the band of 825,000-842,000 Boe/d, up from the previous range of 810,000-828,000 Boe/d. 

Capital spending is estimated in the band of $3.6-$3.8 billion, down from the previous estimated range of $3.8 billion. This reduction largely indicates the success of the company's business optimization plan, which has resulted in capital reductions for two consecutive quarters.

Production volume in 2025 includes expected production of 384,000-390,000 barrels of oil per day.

Devon’s Zacks Rank

Devon currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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