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Dec 31, 2021

Devon Energy Q4 2021 Earnings Report

Devon Energy reported strong Q4 2021 financial results driven by Delaware Basin production growth and margin expansion. The company generated record free cash flow and increased shareholder returns through dividends and share repurchases.

Key Takeaways

Devon Energy reported Q4 2021 net earnings of $1.5 billion, or $2.23 per diluted share, and core earnings of $935 million, or $1.39 per diluted share. Operating cash flow was $1.6 billion, resulting in $1.1 billion of free cash flow. The company's total production averaged 611,000 Boe per day, exceeding guidance by 3 percent.

Operating cash flow tripled in 2021 and free cash flow reached the highest level in Devon’s 50-year history

Disciplined capital allocation limited reinvestment rates to 32 percent of operating cash flow in the fourth quarter

Delaware Basin production growth and margin expansion drove fourth-quarter operating results

Fourth-quarter dividend payout improved to record high of $1.00 per share

Total Revenue
$4.27B
Previous year: $1.28B
+233.8%
EPS
$1.39
Previous year: $0.01
+13800.0%
Total Net Production
611K
Previous year: 333K
+83.5%
Gross Profit
$1.83B
Previous year: $90M
+1927.8%
Cash and Equivalents
$2.3B
Previous year: $2.6B
-11.5%
Free Cash Flow
$1.1B
Previous year: $263M
+318.3%
Total Assets
$21B
Previous year: $9.91B
+112.1%

Devon Energy

Devon Energy

Forward Guidance

Devon remains committed to a disciplined maintenance capital program in 2022 and has not made any modifications to its previously announced plan to sustain production in the range of 570,000 to 600,000 Boe per day, with an upstream capital investment of $1.9 billion to $2.2 billion. Production in the first quarter of 2022 is estimated to be reduced by 3 percent or 15,000 Boe per day due to the impact of severe winter weather. Adjusting for this downtime, the company expects production to approximate 570,000 Boe per day in the first quarter.