10-QPeriod: Q1 FY2025

DEVON ENERGY CORP/DE Quarterly Report for Q1 Ended Mar 31, 2025

Filed May 7, 2025For Securities:DVN

Summary

Devon Energy Corp. (DVN) reported its first quarter 2025 financial results, demonstrating resilience in a volatile commodity price environment. While net earnings attributable to Devon decreased to $494 million ($0.77 per diluted share) compared to $596 million ($0.94 per diluted share) in the first quarter of 2024, the company's operational performance remained strong, driven by increased production volumes, particularly in the Delaware Basin and Rockies, partly due to the acquisition of Grayson Mill. Despite lower realized oil prices year-over-year, higher gas and NGL prices, along with effective expense management, supported robust operating cash flow of $1.9 billion. The company continues to prioritize shareholder returns, repurchasing approximately $301 million of common stock and declaring a $0.24 per share dividend. Liquidity remains strong with $1.2 billion in cash and cash equivalents and $3.0 billion in available borrowing capacity under its revolving credit facility. Devon also announced a business optimization plan aimed at improving annual pre-tax cash flow by $1.0 billion, showcasing a commitment to efficiency and value creation amidst market uncertainties.

Financial Highlights

42 data points
Beta

Revenue

$4.45B

Net Income

$494.00M

11.1% Net Margin

EPS (Diluted)

$0.77

Total Assets

$30.93B

Cash & Equivalents

$1.23B

Free Cash Flow

$1.94B

Financial Statements
Beta
Revenue$4.45B
Operating Expenses$3.94B
Interest Expense$127.00M
Net Income$494.00M
EPS (Basic)$0.77
EPS (Diluted)$0.77
Shares Outstanding (Basic)643.00M
Shares Outstanding (Diluted)645.00M

Key Highlights

  • 1Net earnings attributable to Devon were $494 million ($0.77 per diluted share) for Q1 2025, down from $596 million ($0.94 per diluted share) in Q1 2024.
  • 2Total revenues increased to $4.45 billion in Q1 2025 from $3.60 billion in Q1 2024, driven by higher oil, gas, NGL sales, and marketing/midstream revenues.
  • 3Production volumes saw a significant increase of 22% year-over-year, reaching 815 MBoe/d in Q1 2025, largely attributable to the Grayson Mill acquisition and new well activity.
  • 4Operating cash flow remained strong at $1.94 billion for Q1 2025, enabling significant capital expenditures and shareholder returns.
  • 5The company repurchased $301 million of common stock and paid $163 million in dividends during Q1 2025, demonstrating a commitment to shareholder returns.
  • 6Asset impairments of $254 million were recorded in Q1 2025 related to the rationalization of headquarters-related real estate assets.
  • 7Devon announced a business optimization plan targeting a $1.0 billion improvement in annual pre-tax cash flow, to be achieved by the end of 2026.

Frequently Asked Questions

Net earnings attributable to Devon decreased to $494 million ($0.77 per diluted share) in the first quarter of 2025, down from $596 million ($0.94 per diluted share) in the first quarter of 2024. This decline was primarily influenced by lower realized oil prices, partially offset by increased production volumes and higher gas and NGL prices.

The acquisition of the Williston Basin business of Grayson Mill, which closed in September 2024, has significantly boosted Devon's production volumes, particularly in the Rockies region, contributing to a 22% year-over-year increase in total production. This acquisition is a key driver behind the company's expanded operating scale and production base.

Devon utilizes derivative financial instruments to hedge a portion of its future production against unfavorable price movements. The company also maintains a strong liquidity position with $1.2 billion in cash and cash equivalents and an available credit facility, coupled with a disciplined capital allocation strategy focused on maximizing free cash flow and delivering shareholder returns.

Devon Energy is committed to returning capital to shareholders through a combination of dividends and share repurchases. In the first quarter of 2025, the company repurchased approximately $301 million of its common stock and paid a dividend of $163 million ($0.24 per share). A $5.0 billion share repurchase program is ongoing, with a June 30, 2026 expiration.