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Jun 30, 2023

Devon Energy Q2 2023 Earnings Report

Devon Energy reported record oil production and solid financial results, driven by Delaware Basin performance and disciplined capital allocation.

Key Takeaways

Devon Energy reported net earnings of $690 million, or $1.07 per diluted share, in the second quarter of 2023. Core earnings were $755 million, or $1.18 per diluted share. The company generated $1.4 billion in operating cash flow and $326 million of free cash flow. Oil production reached a record high of 323,000 barrels per day.

Oil production reached an all-time high of 323,000 barrels per day in the second quarter.

Wolfcamp B appraisal success enhances resource quality in Delaware Basin.

Declared fixed-plus-variable dividend payout of $0.49 per share based on second quarter results.

Share-repurchase program retired 3.8 million shares at a total cost of $200 million in the second quarter.

Total Revenue
$3.45B
Previous year: $5.63B
-38.6%
EPS
$1.18
Previous year: $2.59
-54.4%
Oil Production (boe/d)
662K
Gross Profit
$1.05B
Previous year: $2.67B
-60.8%
Cash and Equivalents
$488M
Previous year: $3.5B
-86.1%
Free Cash Flow
$326M
Previous year: $2.1B
-84.5%
Total Assets
$23.4B
Previous year: $23.2B
+0.7%

Devon Energy

Devon Energy

Forward Guidance

For the full-year 2023, Devon expects to sustain production in the range of 643,000 to 663,000 Boe per day. Total capital investment for the year is expected to range from $3.6 billion to $3.8 billion. For the third quarter, Devon expects oil production to a range of 322,000 to 330,000 barrels per day.

Positive Outlook

  • Sustain production in the range of 643,000 to 663,000 Boe per day for full year 2023.
  • Capital requirements in 2023 are estimated to be self-funded at pricing levels as low as a $40 WTI oil price.
  • Place online around 90 gross wells in the third quarter.
  • Oil production to a range of 322,000 to 330,000 barrels per day in the third quarter.
  • Capital spending expected to approximate $900 million in the third quarter.