Devon Energy Corporation DVN is set to report third-quarter 2023 results on Nov 7, after market close. This oil and gas company delivered an earnings surprise of 0.85% in the last reported quarter.
Let’s discuss the factors that are likely to be reflected in the upcoming quarterly results.
Factors at Play
Devon Energy’s domestic focus and multi-basin, high-quality assets are likely to have strong production volumes in the third quarter. Delaware well completion activity is expected to increase production volumes in the quarter.
Stable free cash flow generation is expected to have continued in the third quarter as well. The ongoing share repurchase program and reduction in shares outstanding are likely to be accretive to its quarterly earnings.
Expectations
Devon Energy expects total production for the third quarter to be in the range of 658,000 to 680,000 Boe/d, including 322,000 to 330,000 barrels of oil per day. It expects its third-quarter natural gas liquid (“NGL”) production volume in the range of 164,000-170,000 barrels per day.
The Zacks Consensus Estimate for third-quarter oil production is pegged at 324,000 barrels per day, up 10.2% from the year-ago reported quarter.
The Zacks Consensus Estimate for third-quarter NGL production is pinned at 165,000 barrels per day, up 7.1% from the year-ago reported quarter.
What Our Quantitative Model Predicts
Our proven model predicts an earnings beat for Devon Energy this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That is the case here, as you will see below.
Devon Energy Corporation Price, Consensus and EPS Surprise
Devon Energy Corporation price-consensus-eps-surprise-chart | Devon Energy Corporation Quote
Earnings ESP: Devon Energy has an Earnings ESP of +0.78%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Devon Energy currently carries a Zacks Rank #2.
Other Stocks to Consider
Investors can consider the following players from the same sector that have the right combination of elements to beat on earnings in this reporting cycle.
W&T Offshore, Inc. WTI is likely to deliver an earnings surprise when it posts third-quarter earnings on Nov 7, 2023, after market close. WTI has an Earnings ESP of +50.00% and a Zacks Rank #2.
The Zacks Consensus Estimate for WTI’s 2023 earnings implies an increase of 16.7% in the last 90 days.
You can see the complete list of today’s Zacks #1 Rank stocks here.
Delek US Holdings DK is likely to deliver an earnings surprise when it posts third-quarter earnings on Nov 7, 2023. WTI has an Earnings ESP of +5.26% and a Zacks Rank #2.
The Zacks Consensus Estimate for DK’s 2023 earnings implies an increase of 28.6% in the last 90 days.
Par Pacific Holdings PARR is likely to deliver an earnings surprise when it posts third-quarter earnings on Nov 6, 2023, after market close. PARR has an Earnings ESP of +0.78% and a Zacks Rank #2.
The Zacks Consensus Estimate for PARR’s 2023 earnings implies an increase of 75.7% in the last 90 days.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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Devon Energy Corporation (DVN) : Free Stock Analysis Report
W&T Offshore, Inc. (WTI) : Free Stock Analysis Report
Delek US Holdings, Inc. (DK) : Free Stock Analysis Report
Par Pacific Holdings, Inc. (PARR) : Free Stock Analysis Report
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