Devon Energy reported third‑quarter 2025 results that exceeded Wall Street expectations, posting an adjusted earnings per share of $1.04 versus a consensus estimate of $0.93, and total revenue of $4.33 billion against a consensus of $4.11 billion. The company also announced a quarterly dividend of $0.24 per share.
The earnings beat was driven by a 16.4% year‑over‑year increase in oil production and a 17.5% rise in natural‑gas‑liquids output, largely from the Delaware and Rockies basins. Production volumes outpaced guidance, while realized gas prices jumped 88.1% year‑over‑year, offsetting a modest decline in realized oil and NGL prices. Combined with disciplined cost management that lowered production costs to $11.41 per barrel of oil equivalent, the company achieved a 5.5% year‑over‑year decline in adjusted EPS but still surpassed expectations.
Revenue growth of 7.6% year‑over‑year was supported by higher volumes, even though oil, gas, and NGL sales totaled $2.8 billion—below some analyst estimates of $4.12 billion. The overall revenue beat reflects the company’s ability to capture upside from higher production while maintaining pricing power in a volatile commodity market.
Looking ahead, Devon updated its 2025 outlook, projecting capital expenditures of $890 million to $950 million for the fourth quarter and a production target of 828,000 to 844,000 barrels of oil equivalent per day. For 2026, the company plans to keep production near 835,000 to 855,000 barrels of oil equivalent per day while reducing capital spending by $100 million compared with 2025, signaling confidence in sustaining growth with lower investment.
CEO Clay Gaspar highlighted the quarter as the company’s best performance of the year, noting that production exceeded guidance, capital investments were the lowest year‑to‑date, and lease operating expenses reached their most efficient level. He also emphasized progress on the business‑optimization program and the continued reduction of debt, which has strengthened Devon’s balance sheet.
Investors responded positively to the results, underscoring confidence in Devon’s operational execution, cost discipline, and commitment to returning capital to shareholders through dividends and share repurchases.
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