Devon Energy to Report Q4 Earnings: What's in Store This Season?

Devon Energy Corporation DVN is expected to register a decline in the top line and a decline in the bottom line when it reports fourth-quarter 2025 results on Feb. 17, after market close. The Zacks Consensus Estimate is currently pegged at 86 cents per share.

The Zacks Consensus Estimate for fourth-quarter earnings estimates have declined 10.4% over the past 60 days. The bottom-line projection indicates a decrease of 25.9% from the year-ago number.

DVN Stock’s Earnings Surprise History

Devon Energy’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed once, resulting in an average surprise of 6.08%.

What the Zacks Model Unveils for DVN

Our model does not conclusively predict an earnings beat for DVN this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. That is not the case here, as you can see below.

Devon Energy Corporation Price and EPS Surprise

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

You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.

DVN’s Earnings ESP: DVN has an Earnings ESP of -5.48%.

DVN’s Zacks Rank: Devon currently carries a Zacks Rank #4 (Sell).

Stocks to Consider This Season

Here are some stocks in the same sector that have the combination of factors indicating an earnings beat this season.

Sunrun RUN, South Bow Corporation SOBO and Cameco CCJ possess the right combination of two factors to report an earnings beat this season.

RUN, SOBO and CCJ’s Earnings ESP are currently pegged at +87.34%, +2.99% and +2.35%, respectively. The stocks currently carry a Zacks Rank #2 each. You can see the complete list of today’s Zacks #1 Rank stocks here.

Factors That Might Have Influenced DVN’s Q4 Earnings

Devon Energy continues to generate significant free cash flow through its efficient operations. DVN is utilizing it to strengthen its balance sheet, pay dividends and buy back shares, which is likely to have a positive impact on fourth-quarter earnings.

DVN’s cost management initiatives are likely to have lowered operating costs and likely to have a positive impact on earnings. To mitigate market volatility in oil, natural gas liquids (“NGL”) and natural gas prices, the company has hedged its fourth-quarter 2025 production, providing additional stability to its earnings performance.

DVN’s U.S.-centric operations have insulated it from significant geopolitical and regulatory risks, which are likely to have benefited its fourth-quarter performance.

Devon Energy has completed some strategic acquisitions, which further expanded its operations and contributed to production volumes. The synergies from acquired assets are likely to have a positive impact on fourth-quarter earnings.

Q4 Expectation From DVN

Devon Energy expects its fourth-quarter production volume to be in the range of 828-844 thousand barrels of oil equivalents per day (Mboe/d). The Zacks Consensus Estimate for fourth-quarter production volume is pegged at 841.1 Mboe/d, which indicates a year-over-year decline of 0.8%.

DVN Stock Trades at a Discount

Devon’s shares are inexpensive on a relative basis, with its current trailing 12-month Enterprise Value/Earnings before Interest, Tax, Depreciation and Amortization (EV/EBITDA TTM) being 4.45X compared with its industry average of 10.89X.

Devon Stock Returns Better Than Industry

The return on equity (“ROE”) measures how well a company generates returns on the money it invests. ROE helps to figure out how the company is utilizing the shareholders’ funds to generate returns.

Devon’s ROE has outperformed the industry average in the trailing 12 months. ROE of DVN was 18.14% compared with the industry average of 16.18%
DVN’s ROE

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This article originally published on Zacks Investment Research (zacks.com).

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