Summary
Devon Energy Corporation reported revenues of $1.85 billion for the third quarter of 2019, a decrease from $2.16 billion in the same period of the prior year. This decline was primarily driven by lower marketing revenues and a decrease in commodity prices, particularly for NGLs, which was partially offset by an increase in upstream revenues due to higher oil and gas production from core U.S. assets. The company reported net earnings attributable to Devon of $109 million for the quarter, a significant decrease from $2.54 billion in the third quarter of 2018, which included a large gain from the sale of EnLink. Significant strategic actions were undertaken during the period, including the closing of the sale of Canadian operations for $2.6 billion, which is expected to streamline the company's portfolio and focus on "New Devon." The company also continued its share repurchase program, buying back $550 million in stock during the quarter, and declared a dividend of $0.09 per share. Despite challenges from commodity price volatility, Devon's management highlighted progress in cost reduction initiatives and capital efficiency, aiming to enhance shareholder value through its "returns-driven strategy."
Financial Highlights
46 data points| Revenue | $1.75B |
| Cost of Revenue | $684.00M |
| Gross Profit | $1.06B |
| Operating Income | -$91.00M |
| Interest Expense | $65.00M |
| Net Income | $109.00M |
| EPS (Basic) | $0.27 |
| EPS (Diluted) | $0.27 |
| Shares Outstanding (Basic) | 392.00M |
| Shares Outstanding (Diluted) | 394.00M |
Key Highlights
- 1Total revenues for Q3 2019 decreased to $1.85 billion from $2.16 billion in Q3 2018, largely due to lower marketing revenues and commodity prices.
- 2Net earnings attributable to Devon for Q3 2019 were $109 million, a substantial decrease from $2.54 billion in Q3 2018, which included a significant gain from discontinued operations (EnLink sale).
- 3The company closed on the sale of its Canadian operations for $2.6 billion in June 2019, a key step in its "New Devon" strategic transformation.
- 4Devon repurchased $550 million of its common stock in Q3 2019, continuing its share repurchase program.
- 5Production from core U.S. assets, particularly in the Delaware and Powder River Basins, showed strong growth compared to the prior year.
- 6The company reported $1.66 billion in cash, cash equivalents, and restricted cash at the end of Q3 2019, with $3.0 billion in available borrowings under its Senior Credit Facility.
- 7Management is focusing on a "returns-driven strategy" with emphasis on capital efficiency and cost reduction, including over $200 million in annualized G&A savings expected.