Devon Energy Corp (NYSE:DVN) stock rose 0.32% (As on February 18, 11:29:36 AM UTC-4, Source: Google Finance) after the company narrowly beat Wall Street estimates for fourth-quarter profit and forecast lower first-quarter production after severe winter storms disrupted operations across key producing regions. The winter storm knocked out as much as 2 million barrels per day of U.S. oil production, roughly 15% of national output, according to analysts and traders’ estimates, before volumes began to recover, highlighting the scale of the disruption facing producers such as Devon. Global crude oil prices have been pressured by growing worries of a glut and the increasing prospect of more Venezuelan barrels returning to the market. Earlier this month, Devon and rival Coterra Energy, opens new tab announced a $58 billion merger, aimed at bolstering scale and cost efficiency as oil prices weaken. The merger is expected to close in the second quarter and the companies are targeting $1 billion in annual pre-tax savings by 2027.
Moreover, Fourth-quarter production rose to 851,000 boepd, from 848,000 boepd a year earlier. Including cash settlements, average realized prices were $34.52 per barrel of oil equivalent in the three months ended December 31, compared with $40.32 per barrel of oil equivalent a year earlier. WTI crude fell about 20% in 2025, and declined 8% in the October-December quarter. Devon said it had already delivered 85% of its $1 billion cost-savings target, and expects to reach the full goal by the end of 2026. As of Dec. 31, 2025, the company had cash and cash equivalents (including restricted cash) of $1.43 billion compared with $0.85 billion as of Dec. 31, 2024. Long-term debt amounted to $7.39 billion as of Dec. 31, 2025, down from $8.4 billion as of Dec. 31, 2024. Devon’s net cash from operating activities was $6.71 billion in 2025 compared with $6.6 billion in 2024. Capital expenditures in 2025 totaled $3.59 million, down 1.5% from $3.64 billion in 2024.
DVN in the fourth quarter of FY25 has reported the adjusted earnings per share of 82 cents, beating the analysts’ estimates for the adjusted earnings per share of 81 cents, according to the Zacks Consensus Estimate. The company had reported the adjusted revenue decline of 6.4 percent to $4.12 billion in the fourth quarter of FY25, beating the analysts’ estimates for revenue of $4.02 billion.
Devon expects first-quarter production to be between 823,000 barrels of oil equivalent per day (boepd) and 843,000 boepd.