After increased oil production along with gains in cash flow and cash balances and reduction in debt during its third quarter, Oklahoma City’s Devon Energy will be releasing its fourth quarter financial report this week.
The company will release the report following the close of markets on Tuesday. It will be followed by a conference call on Wednesday at 10 a.m. central time where company leaders will discuss the results and answer questions from analysts and investors.
In the third quarter, Devon reported net earnings of $910 million or $1.42 per share. The company’s core earnings totaled $1.1 billion or $1.65 per share which represented a 40% increase from the previous quarter.
Devon generated $843 million of cash flow in the quarter, a more than two-fold increase versus the second quarter. As a result, Devon leadership said last fall it planned to devote more capital expenditures and exploration effort in the Permian Basin this year.
“Looking ahead to 2024, we plan to refine our capital allocation by further concentrating investment in the Delaware Basin,“said Rick Muncrief, President and CEO.
“By shifting more capital to the core of this world-class basin and high-grading activity across our diversified portfolio, we expect to deliver a step-change improvement in capital efficiency, and we are well positioned to generate growth in free cash flow that can once again be harvested for shareholders.”
Investors will learn soon whether the shift of more capital to the Delaware Basin paid off for the company.