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• Oil Production: 388,000 barrels per day, exceeding the upper limit of guidance.

• Free Cash Flow: $1 billion generated in Q1.

• Core Earnings: $779 million or $1.21 per share.

• EBITDAX: $2.1 billion.

• Operating Cash Flow: $1.9 billion.

• Dividends and Share Buybacks: $464 million returned to shareholders.

• Share Repurchases: $301 million spent, total buyback program at $3.6 billion.

• Full Year Oil Production Outlook: Increased to 382,000 to 388,000 barrels per day.

• Full Year Capital Investment: Reduced by $100 million to $3.7 billion to $3.9 billion.

• Cash Balances: Increased by $388 million, reaching $1.2 billion.

• Net Debt-to-EBITDA Ratio: 1 times.

• Interest in Matterhorn Pipeline Sale: Approximately $375 million, expected to close late Q2.

• Business Optimization Plan: Targeting $1 billion in annual free cash flow improvements by year-end 2026.

• Capital Efficiency Improvements: Targeting $300 million by year-end 2026.

• Production Optimization Improvements: Targeting $250 million by reducing downtime and optimizing costs.

• Commercial Opportunities Improvements: Targeting $300 million through increased realizations and lower costs.

• Corporate Cost Reductions: Targeting $150 million from lower interest expense and G&A.

• Warning! GuruFocus has detected 4 Warning Sign with DVN.

Release Date: May 07, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Devon Energy Corp (NYSE:DVN) delivered a strong first quarter with oil production exceeding guidance, reaching 388,000 barrels per day.

• The company generated $1 billion in free cash flow in Q1, with nearly half returned to shareholders through dividends and share buybacks.

• Devon Energy Corp (NYSE:DVN) is implementing a business optimization plan expected to deliver an additional $1 billion in annual free cash flow by year-end 2026.

• The company successfully closed the dissolution of the partnership with BPX in the Blackhawk field, leading to significant drilling improvements and cost reductions.

• Devon Energy Corp (NYSE:DVN) has a strong financial position with an investment-grade balance sheet and a net debt-to-EBITDA ratio of 1 times.

Negative Points

• Despite strong performance, Devon Energy Corp (NYSE:DVN) faces a challenging macro environment with potential impacts from lower commodity prices.

• The company has reduced its rig count in the Delaware Basin, which may impact future production capacity.

• There are concerns about the variability in oil production from the Wolfcamp B formation, which could affect overall output.

• Devon Energy Corp (NYSE:DVN) is experiencing elevated capital expenditures in the Powder River Basin, which may impact overall capital efficiency.

• The company is on high alert for potential further reductions in activity levels if oil prices continue to decline.