Devon Energy (DVN) Q2 Results - Aug 2

[dan_s]

I am now at the point where the quarterly results are coming out faster than I can keep up with.
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OKLAHOMA CITY – August 1, 2023 – Devon Energy Corp. (NYSE: DVN) today reported financial and operational results for the
second-quarter 2023. Supplemental financial tables and forward-looking guidance are available on the company’s website at
www.devonenergy.com.
KEY FINANCIAL AND OPERATIONAL HIGHLIGHTS
• Oil production reached an all-time high of 323,000 barrels per day in the second quarter < Beat my forecast of 320,000 BOPD
• Wolfcamp B appraisal success enhances resource quality in Delaware Basin
• Declared fixed-plus-variable dividend payout of $0.49 per share based on second quarter results < Lower than my forecast.
• Share-repurchase program retired 3.8 million shares at a total cost of $200 million in the second quarter
• Balance sheet improved with the retirement of $242 million of debt < Devon has a very strong balance sheet and no debt problems.
• Delaware Basin completion activity positions Devon for oil volume growth in the third quarter

Devon reported net earnings of $690 million, or $1.07 per diluted share, in the second quarter of 2023. Adjusting for items analysts
typically exclude from estimates, the company’s core earnings were $755 million, or $1.18 per diluted share. < Matched my forecast.

Devon’s operating cash flow totaled $1.4 billion in the second quarter. This level of cash flow funded all the company’s capital
requirements and resulted in $326 million of free cash flow for the quarter.

At the end of the second quarter, the company had a cash balance of $488 million and an undrawn credit facility of $3 billion.
Outstanding debt totaled $6.4 billion and the company’s net debt-to-EBITDAX ratio was 0.7 times. Subsequent to quarter-end, Devon
retired $242 million of outstanding debt upon maturity
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I am updating my forecast model now. I will get to PXD this afternoon.