Devon Energy Misses Q1 Profit Estimates as Production Slips, Provides Combined Q2 Guidance
Summary
Devon Energy reported first-quarter adjusted profit of $1.04 per share, falling short of analyst estimates of $1.06 per share. The company's Q1 production also saw a slight year-over-year decline to 387,000 barrels of oil equivalent per day (boepd). This earnings miss and production slide occur shortly after shareholders overwhelmingly approved the all-stock merger with Coterra Energy (CTRA), a significant corporate event for Devon. The company also provided new Q2 production guidance for the combined entity, projecting 851,000 to 868,000 boepd and $925 million in capital expenditure. The operational miss, even if modest, could temper investor enthusiasm following the merger approvals, especially given ongoing negative natural gas prices in the Permian. Traders will be closely monitoring the integration of Coterra and the combined company's performance against the new guidance.
At the time of this announcement, DVN was trading at $50.05 on NYSE in the Energy & Transportation sector, with a market capitalization of approximately $31.7B. The 52-week trading range was $29.70 to $52.71. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: Reuters.