Why Is Devon Energy (DVN) Up 16.3% Since Last Earnings Report?

It has been about a month since the last earnings report for Devon Energy (DVN). Shares have added about 16.3% in that time frame, outperforming the S&P 500.But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Devon Energy due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the latest earnings report in order to get a better handle on the important catalysts.Devon Q3 Earnings & Sales Beat Estimates on Strong Production VolumesDevon Energy Corp. reported third-quarter 2025 earnings per share (EPS) of $1.04, beating the Zacks Consensus Estimate of 93 cents by 11.8%. The third-quarter earnings were down 5.5% year over year.GAAP EPS in the reported quarter was $1.09 compared with $1.41 in the year-ago quarter. The difference between GAAP and operating earnings in the third quarter was due to a gain of 4 cents from asset disposition, an impact of 4 cents from fair value changes in financial instruments, a charge of 2 cents from changes in tax laws and 1 cent from restructuring and transaction costs.Revenues of DevonTotal revenues for the quarter were $4.33 billion, which beat the Zacks Consensus Estimate of $4.11 billion by 5.17%.Production of DevonNet production in the third quarter totaled 853,000 barrels of oil equivalent per day (Boe/d), up 17.2% year over year. Actual production volume exceeded the guided range of 829,000-847,000 Boe/d. Improvement in production volumes from the Delaware and Rockies regions boosted the metric.Natural gas liquids production increased 17.5% year over year to 228,000 barrels per day (Bbl/d). Oil production amounted to 390,000 Bbl/d, up 16.4% on a year-over-year basis, due to a strong contribution from the Rockies region.Devon’s Realized PricesRealized oil prices (including cash settlements) for the quarter were $63.99 per barrel, down 13.8% from $74.26 in the year-ago period. Realized prices for natural gas liquids were $17.18 per barrel, down 11.3% from $19.36 in the prior-year quarter.Realized gas prices were $1.58 per thousand cubic feet, indicating an increase of 88.1% from 84 cents a year ago.Total oil equivalent realized prices, including cash settlements, were $36.46 per Boe, down nearly 10.4% year over year.Highlights of Devon’s Q3 ReleaseTotal production expenses in the third quarter were $895 million, up 17.3% year over year.Devon repurchased shares worth $250 million in the third quarter and paid dividends worth $151 million to its shareholders.Production costs, including taxes, averaged $11.41 per Boe in the third quarter, a decline of 3% sequentially.Devon’s realized price during the period, including commodity hedges, was $36.36 per Boe. The figure dropped $4.25 per Boe from the year-ago quarter’s actual. This decline in price realization was primarily due to lower oil price realized.Financial Highlights of DevonAs of Sept. 30, 2025, the company had cash and cash equivalents (including restricted cash) of $1.28 billion compared with $0.85 billion as of Dec. 31, 2024.Long-term debt amounted to $7.39 billion as of Sept. 30, 2025, down from $8.88 billion as of Dec. 31, 2024.Devon’s net cash from operating activities was $1.69 billion in third-quarter 2025, compared with $1.66 billion in third-quarter 2024. Capital expenditures in third-quarter 2025 totaled $0.87 billion, on par with the level of third-quarter 2024.During the quarter, the company retired debts worth $485 million ahead of schedule, which further strengthened its balance sheet.Devon’s GuidanceFourth-quarter production is expected in the range of 828,000-844,000 Boe/d and capital spending is estimated in the band of $0.89-$0.95 billion. Devon expects its fourth-quarter general and administrative expenses to be in the range of $120-$130 million and Financing costs, net, in the range of $100-$110 million.In 2026, the company aims to maintain total production nearly at 835,000-855,000 Boe/d, including about 388,000 barrels of oil per day. Devon expects its capital expenditure in 2026 to be in the range of $3.5 billion to $3.7 billion.How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a downward trend in estimates revision.The consensus estimate has shifted -5.79% due to these changes.VGM ScoresCurrently, Devon Energy has a average Growth Score of C, however its Momentum Score is doing a lot better with an A. Following the exact same course, the stock was allocated a score of A on the value side, putting it in the top quintile for this investment strategy.Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.OutlookEstimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, Devon Energy has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.Performance of an Industry PlayerDevon Energy belongs to the Zacks Oil and Gas - Exploration and Production - United States industry. Another stock from the same industry, Coterra Energy (CTRA), has gained 3.7% over the past month. More than a month has passed since the company reported results for the quarter ended September 2025.Cabot reported revenues of $1.82 billion in the last reported quarter, representing a year-over-year change of +33.7%. EPS of $0.41 for the same period compares with $0.32 a year ago.For the current quarter, Cabot is expected to post earnings of $0.58 per share, indicating a change of +18.4% from the year-ago quarter. The Zacks Consensus Estimate has changed -5.6% over the last 30 days.Cabot has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of C.Quantum Computing Stocks Set To SoarArtificial intelligence has already reshaped the investment landscape, and its convergence with quantum computing could lead to the most significant wealth-building opportunities of our time.Today, you have a chance to position your portfolio at the forefront of this technological revolution. In our urgent special report, Beyond AI: The Quantum Leap in Computing Power, you'll discover the little-known stocks we believe will win the quantum computing race and deliver massive gains to early investors.Access the Report Free Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Devon Energy Corporation (DVN): Free Stock Analysis Report Coterra Energy Inc. (CTRA): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks