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Dec 31, 2023
Devon Energy Q4 2023 Earnings Report
Devon Energy reported strong fourth-quarter results, exceeding operational and financial targets. The company generated significant free cash flow and increased its fixed quarterly dividend by 10 percent.
Key Takeaways
Devon Energy reported net earnings of $1.2 billion, or $1.81 per diluted share, in the fourth quarter of 2023. The company's core earnings were $902 million, or $1.41 per diluted share. Operating cash flow totaled $1.7 billion, resulting in $827 million of free cash flow. Production averaged 662,000 oil-equivalent barrels (Boe) per day.
Fourth-quarter production exceeded the top end of guidance, averaging 662,000 oil-equivalent barrels per day.
Operating cash flow totaled $1.7 billion and free cash flow reached $827 million in the fourth quarter.
The board approved a 10 percent increase to the fixed quarterly dividend.
Balance sheet continued to strengthen with cash balances increasing $114 million to a total of $875 million.
Devon Energy
Devon Energy
Forward Guidance
Devon has reaffirmed its previously issued outlook for production and capital in 2024. The company plans to sustain oil production at around 315,000 barrels per day, with total volumes approximating 650,000 Boe per day.
Positive Outlook
- Sustain oil production at around 315,000 barrels per day
- Total volumes approximating 650,000 Boe per day
- Capital requirements to deliver this production are expected to decline approximately 10 percent year-over-year
- Successfully restored the affected production across all its operating areas
- Does not expect this weather-related downtime to impact production targets for the full-year 2024
Challenges Ahead
- Severe winter weather across the company’s portfolio led to unplanned power outages and production disruptions.
- These weather-related curtailments are estimated to reduce first-quarter production by 2 percent.
- Devon expects first-quarter production to approximate 640,000 Boe per day (48 percent oil).
- Capital program in 2024 is expected to be weighted towards the first half of the year.
- First-quarter capital spending is estimated to range from $915 million to $965 million.