Devon Energy (DVN) has reported fourth-quarter 2024 financial results that topped Wall Street forecasts on both the top and bottom lines.
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The Oklahoma-based oil and natural gas company reported earnings per share (EPS) of $1.16, which beat the consensus estimate of $1. Revenue in the October through December quarter totaled $4.40 billion, which was better than the $4.17 billion expected on Wall Street.
Devon Energy said that its oil production reached 398,000 barrels a day during Q4 2024, about 3% ahead of the company’s guidance. The company said it generated $1.70 billion in operating cash flow and $738 million in free cash flow during the quarter.
Dividend Increase
Devon Energy returned $444 million to shareholders through dividends and stock buybacks during the final quarter of last year. The company announced that it is raising its quarterly fixed dividend to $0.24, a 60% increase from $0.15 previously. Devon Energy pays both a fixed and fluctuating dividend to its stockholders. Management said they ended the quarter with cash on hand of $846 million.
In terms of guidance, Devon Energy said that it expects oil production to average 380,000 to 386,000 barrels per day in the current first quarter of 2025. The company anticipates first-quarter capital spending of about $1 billion. DVN stock has declined 17% over the past 12 months.
Is DVN Stock a Buy?
The stock of Devon Energy has a consensus Moderate Buy rating among 19 Wall Street analysts. That rating is based on 13 Buy and six Hold recommendations issued in the last three months. The average DVN price target of $47.94 implies 37.44% upside from current levels. These ratings are likely to now change following the company’s latest financial results.
