Devon Energy Corp (NYSE:DVN) stock fell 11.06% (As on February 15, 11:23:21 AM UTC-4, Source: Google Finance) after the company missed the earnings estimates for the fourth quarter of FY 22 due to a hit to production from severe cold weather in the United States during the period, as well as higher expenses on personnel. Operating cash flow totaled $1.9 billion in the fourth quarter, up 18% year-over-year, resulting in $1.1 billion in free cash flow for the quarter. Devon Energy said production averaged 636,000 oil-equivalent barrels per day in the fourth quarter. The company’s production was reduced by 2% due to the impact of severe winter weather across its portfolio. The company’s investment-grade financial position continued to strengthen in the fourth quarter with cash balances increasing by $144 million to a total of $1.5 billion. Devon exited the quarter with an outstanding debt balance of $6.4 billion and a net debt-toEBITDAX ratio of 0.5 times.

DVN in the fourth quarter of FY 22 has reported the adjusted earnings per share of $1.66,missing the analysts’ estimates for the adjusted earnings per share of $1.75, according to Refinitiv data.

Devon Energy sees first-quarter production of approximately 635,000 oil-equivalent barrels per day. Full-year 2023 production is expected to range from 643,000 to 663,000 oil-equivalent barrels per day. The company’s output averaged 636,000 boepd in the October-December quarter. It also said that it expects total capital investment between $3.6 billion and $3.8 billion in 2023 with higher spending in the first half due to a temporary fourth frac crew in the Delaware Basin.

Additionally, Devon Energy also declared a fixed-plus-variable dividend of 89 cents per share. The dividend is payable on March 31 to shareholders of record at the close of business on March 15. As part of the fourth-quarter dividend announcement, the board approved an increase in the fixed dividend of 11 percent, or $0.02 per share. After the fixed dividend is funded, up to 50 percent of the excess free cash flow each quarter will be distributed to shareholders through the variable dividend. Devon also returned capital to shareholders through the ongoing execution of its $2.0 billion share-repurchase authorization. To date, the company has repurchased 26 million shares since the commencement of the program, at a total cost of $1.3 billion. With this repurchase program, Devon is on track to decrease its outstanding share count by 5 percent.