Devon Energy Co. saw its oil production increase 8.6% year over year. The increase comes from the company’s Delaware Basin, which currently produces an average of 300,000 barrels per day (Bbl/d). Natural gas production also rose 20.9% year over year. What impact has this had on DVN stock?
The Highs and Lows of DVN Stock
On March 20, 2020, at the start of the COVID-19 pandemic, DVN stock fell to $6.08. It was in 1992 that the market last saw Devon Energy Corp. (NYSE: DVN) shares are trading at this price. Since then, however, the stock has done nothing but reward investors, soaring to $77.85 in early June 2022. That’s an increase of 1180.43%.
However, shortly after this massive surge, analysts made a major negative revision to their short-term outlook for DVN Stock in June 2022. Earnings estimates were cut by 11%, warning investors to curb their enthusiasm , at least temporarily. At that time, Devon Energy’s revenue estimates for 2022 were paced at $14 billion. This would mean a 4.4% reduction in overall sales over the past 12 months.
At that time, the most optimistic analysts valued Devon Energy at $102. While the most bearish came around $48. The consensus price target fell somewhere in the middle at $80.07. It was a sign that lower sales numbers might not affect the overall market value of DVN stock.
But a few weeks later, at the end of July 2022, the tide started to turn again for Devon Energy. Ahead of the company’s August 1 earnings report date, market positivity began to grow.
DVN Stock – Latest Earnings Report
Last Monday, DVN reported adjusted earnings of $2.59 per share for the second quarter of 2022, beating Zacks’ consensus estimate of $2.38 by 8.8%.
Also during the same report, the board of directors of Devon Energy Corp. declared a fixed and variable dividend of $1.55 per share. The payout is based on the company’s strong performance in the second quarter and represents a 22% increase over the first quarter. The board also approved a 13% increase in the company’s fixed dividend ($0.02 per share). In addition, on September 30 of this year, the company’s fixed and variable dividend will be payable to DVN shareholders at the close of business on September 12.
Rick Muncrief, President and CEO had this to say:
“In the second quarter, our business continued to strengthen and grow as we implemented systematic execution of the financial, operational and strategic principles of our cash yield business model,” said Rick Muncrief. , President and CEO.
“This success was evidenced by the production of our Delaware-focused program which exceeded forecast expectations, our streamlined cost structure took full advantage of rising raw material prices and we returned record amounts of liquidity to shareholders, and we have taken significant steps to strengthen the quality and depth of our asset portfolio.
“Due to the strong financial and operational performance achieved since the beginning of the year, we have updated our guidance for the full year 2022,” commented Muncrief. “This improved outlook raises production targets, increases free cash flow projections and improves our ability to accelerate the return of capital to shareholders.”
Devon Energy Update
DVN stock has certainly been on a wild ride this year. Even with the recent price increase, the stock has fallen nearly 6% in the past week. The energy market has been in a state of flux lately and this may continue for some time. Despite everything, the company seems solid. Operating cash flow more than doubled year over year and free cash flow is at an all time high. Production from the Delware Basin increased and cash balances increased by $832 million to a total of $3.5 billion. Keep an eye on DVN stock as it has a history of rapid share price increases.
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Ben Broadwater is the Director of Investment U. He has over 15 years of content creation experience. He has worked and written for many companies in the financial publishing industry, including Charles Street Research, The Oxford Club and now Investment U. When Ben isn’t busy running Investment U, you can usually find him with a pair chopsticks or a guitar. in his hand.