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OKLAHOMA CITY - Devon Energy Corp. (NYSE:DVN) reported first-quarter earnings that exceeded analyst expectations, driven by strong oil production and effective cost management. The company also raised its full-year production forecast while lowering capital expenditure guidance.
The company’s stock dipped 1.1% following the earnings release.
Devon reported adjusted earnings of $1.21 per share for Q1, beating the analyst consensus of $1.17. Revenue came in at $4.45 billion, surpassing estimates of $4.34 billion. The company’s oil production reached 388,000 barrels per day, exceeding guidance by 5,000 barrels.
"Devon delivered a strong first quarter, driven by operating excellence and financial discipline," said Clay Gaspar, president and CEO. "Oil production once again exceeded our expectations driven by robust base performance and exceptional well results across our assets."
Devon generated $1.9 billion in operating cash flow and $1.0 billion in free cash flow during the quarter. It returned $464 million to shareholders through dividends and share repurchases.
Looking ahead, Devon raised its full-year 2025 oil production forecast by 1% to a range of 382,000 to 388,000 barrels per day. The company also lowered its full-year capital guidance to $3.7-$3.9 billion, down $100 million from previous estimates.
"We are pulling forward some progress into this year and are cutting 2025 full year capital by $100 million while maintaining our productive capacity for the remainder of the year," Gaspar noted.
Devon declared a fixed quarterly dividend of $0.24 per share, payable on June 30, 2025. The company ended the quarter with $1.2 billion in cash and a net debt-to-EBITDAX ratio of 1.0 times.
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