Back to top

Image: Bigstock

Devon Energy to Report Q2 Earnings: How Should You Play the Stock?

Read MoreHide Full Article

Key Takeaways

  • {\"0\":\"DVN expects Q2 revenues of $4.01B, up 2.46%, but EPS is forecasted to drop 41.13% to 83 cents.\",\"1\":\"Strong output from the Delaware Basin and cost discipline support Devon\'s operational strength.\",\"2\":\"Restructured NGL contracts and export expansion aim to boost DVN\'s pricing and downstream margins.\"}

Devon Energy Corporation (DVN - Free Report) is expected to register an improvement in the top line and a decline in the bottom line when it reports second-quarter 2025 results on Aug. 5, after market close. The company reported a negative earnings surprise of 4.72% in the last reported quarter.

Let us focus on how things might have shaped up for the company this season.

Factors That Might Have Influenced DVN’s Q2 Earnings

Devon Energy is predicted to deliver solid second-quarter results, supported by strong production across its diverse multi-basin portfolio, particularly from the Delaware Basin, which has contributed to elevated output levels. To mitigate market volatility in oil, natural gas liquids (“NGL”) and natural gas prices, the company has hedged its second-quarter 2025 production, providing additional stability to its earnings performance.

Devon Energy’s disciplined approach to cost management has effectively kept operating expenses in check. Robust cash flow generation has supported share repurchase efforts, which are expected to have further boosted quarterly earnings. Additionally, the company’s U.S.-focused operations shield it from many geopolitical and regulatory risks. This is likely to have contributed positively to its second-quarter earnings performance.

The company has been working on restructuring NGL contracts to improve price realizations and enhancing downstream oil realizations with expanding access to export markets, which is expected to have a positive impact on earnings.

Q2 Expectation

Devon Energy expects its second-quarter production volume to be in the range of 810-828 thousand barrels of oil equivalents per day (Mboe/d). The Zacks Consensus Estimate for second-quarter production volume is pegged at 817.7 Mboe/d, which indicates year-over-year growth of 15.7%.

The Zacks Consensus Estimate for DVN’s second-quarter revenues is pegged at $4.01 billion, indicating growth of 2.46% from the year-ago reported figure.

The Zacks Consensus Estimate for earnings is pegged at 83 cents per share. The consensus mark for DVN’s second-quarter earnings indicates a decline of 41.13% from the year-ago reported figure.

What the Zacks Model Unveils

Our model does not conclusively predict a likely earnings beat for DVN this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. That is not the case here, as you can see below.

Devon Energy Corporation Price and EPS Surprise

Devon Energy Corporation Price and EPS Surprise

Devon Energy Corporation price-eps-surprise | Devon Energy Corporation Quote

You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.

DVN’s Earnings ESP: DVN has an Earnings ESP of 0.00%.

DVN’s Zacks Rank: Devon currently carries a Zacks Rank #3.

Stocks to Consider This Season

Here are some stocks in the same sector that have the combination of factors indicating an earnings beat this season.

ARRAY Technologies, Inc. (ARRY - Free Report) is expected to beat second-quarter earnings estimates when it reports results on Aug. 7, 2025.  The company currently has an Earnings ESP of +76.19% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Long-term (three to five years) earnings growth of the company is pegged at 21.63%. The Zacks Consensus Estimate of ARRY’s 2025 and 2026 earnings per share indicates year-over-year growth of 10% and 35.35% respectively.

Plains GP Holdings (PAGP - Free Report) is expected to beat second-quarter earnings estimates when it reports results on Aug. 8, 2025.  The firm currently has an Earnings ESP of +50.00% and sports a Zacks Rank #1.

The Zacks Consensus Estimate of PAGP’s 2025 and 2026 earnings per unit indicates year-over-year growth of 205.77% and 23.79% respectively.

HighPeak Energy, Inc. (HPK - Free Report) is expected to beat second-quarter earnings estimates when it reports results on Aug. 11, 2025.  The company currently has an Earnings ESP of +58.33% and a Zacks Rank #2.

The Zacks Consensus Estimate of HPK’s 2025 and 2026 earnings per share indicates year-over-year growth of 2.99% and 3.62% respectively.

 

Published in