Why Crude Oil Prices Drive Devon Energy’s Stock Price
Devon Energy’s oil and gas revenue mix
The year-over-year increase in DVN’s 1Q17 oil and gas revenues was primarily due to the higher year-over-year realized prices. We’ll study DVN’s realized prices in the next article.
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As seen in the chart above, ~67% (or ~$876 million) of Devon Energy’s 1Q17 operating revenues came from crude oil (USO) sales, and ~22% (or ~$296 million) of its operating revenues came from natural gas (UNG) sales. Only ~10% (or ~$136 million) of DVN’s operating revenues came from natural gas liquids sales.
The majority of Devon Energy’s revenues comes from crude oil sales and hence, the crude oil price trend is the key driving factor for DVN’s stock price.