Devon Energy Falls Short on Q1 Earnings Despite Production Boost

Published 16 hours agoDVN

Devon Energy Falls Short on Q1 Earnings Despite Production Boost

Devon Energy reported adjusted earnings per share of $1.21 for the first quarter of 2025, falling short of analysts' expectations of $1.25. This miss was attributed to an 8% decline in realized oil prices year-over-year, with prices averaging $69.15 per barrel, according to Reuters. Following the earnings report, Devon Energy's shares dropped about 1% in extended trading.

Despite the earnings shortfall, Devon Energy achieved a growth in production, increasing by 22.7% year-over-year to 815,000 barrels of oil equivalent per day. This rise was supported by strategic acquisitions, including a significant $5 billion purchase from Grayson Mill Energy. The company has also raised its full-year oil production forecast slightly and lowered its capital expenditure guidance by $100 million, reflecting early progress on its business optimization plan.

In response to market conditions, Devon Energy aims to increase its annual free cash flow by $1 billion by the end of 2026. This goal will be pursued through cost reductions and enhanced operating margins. The stock traded at $30.59 USD with minimal change in recent market activity, as reported by Reuters.

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