Devon Energy Corp on Thursday reported $656 million in net profit adjusted for nonrecurring items, topping expectations as production exceeded guidance.
Adjusted earnings per share landed at $1.04 per diluted share. That beat the Zacks Consensus Estimate, which averages brokerage analysts’ projections, of 93 cents.
Q3 adjusted net income rose from $536 million for the prior three-month period as production and realized prices increased, according to results published online by the Oklahoma City-based Delaware Basin-focused oil and gas producer.
Net income before adjustment was $687 million, down from $899 million for Q2 2025 largely due to higher derivatives revenue for the prior quarter.
Q3 total revenue was $4.33 billion, up from $4.28 billion for Q2. Sales of oil, gas and natural gas liquids (NGLs) accounted for $2.81 billion of Q3 revenue, up from $2.71 billion for Q2.
Devon produced 853,000 barrels of oil equivalent a day (boed) in Q3, exceeding the upper end of its guidance of 847,000 boed and increasing from 841,000 boed in Q2. “This positive result was driven by better-than-expected well performance primarily in the Rockies and Eagle Ford”, Devon said.
Of the Q3 total production, oil accounted for 390,000 barrels per day (bpd), gas comprised 1.41 billion cubic feet per day and natural gas liquids contributed 228,000 bpd.
The Delaware Basin accounted for 496,000 boed of total Q3 production, followed by the Rockies at 205,000 boed, the Anadarko Basin at 85,000 boed and the Eagle Ford at 63,000 boed.
Price realizations increased to $36.46 per boe “primarily driven by higher crude benchmark pricing, partially offset by lower natural gas and NGL prices”, Devon said. “Natural gas pricing was impacted by expanded regional gas price differentials in the Delaware Basin driven by infrastructure constraints”.
Q3 operating activities generated $1.69 billion in net cash. Free cash flow was $820 million.
Devon is maintaining its quarterly dividend at $0.24 per share. In Q3 it repurchased 7.3 million shares for $250 million, under Devon’s ongoing buyback package of $5 billion. “Since inception of the program, the company has returned $4.1 billion to shareholders by retiring approximately 13 percent of its outstanding shares”, Devon said.
Devon ended Q3 with $1.28 billion in cash, cash equivalents and restricted cash. Short-term debt stood at $998 million.
“In the third quarter, Devon delivered another outstanding performance, achieving our best results of the year across all major value drivers”, said president and chief executive Clay Gaspar. “Production exceeded guidance, capital investments were at their lowest level year-to-date and LOE reached its most efficient mark”.
“Our business optimization program continues to accelerate, with more than 60 percent of targeted improvements achieved within the first seven months”, Gaspar added.
To contact the author, email jov.onsat@rigzone.com
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