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How Did Devon Energy Fare in 4Q15?

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Devon Energy’s 4Q15 revenue

Devon Energy (DVN) reported its 4Q15 earnings on February 16, 2016. Devon Energy’s 4Q15 revenue was ~$2.8 billion, which was lower than the estimate of $3.6 billion. Revenue in 4Q14 came in at $5.3 billion while revenue in 3Q15 was $3.6 billion.

As we can see in the above graphs, Devon’s revenue came in lower than expected in 4Q15, as it did in the preceding quarters. This was on account of lower realized prices. Realized oil prices including the effect of hedges were $53.67 per barrel in 4Q15 versus $69.80 per barrel in 4Q14. Realized natural gas liquids prices including the effect of hedges were $8.81 per barrel in 4Q15 versus ~$17.8 per barrel in 4Q14. Realized natural gas prices including the effect of hedges were ~$2.5 per Mcf (thousand cubic feet) in 4Q15 versus ~$3.7 per Mcf in 4Q14.

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Devon’s 4Q15 EPS

DVN announced adjusted earnings per share (or EPS) of $0.77. The consensus Wall Street EPS estimate was ~$0.71. However, the 4Q15 EPS was 7.2% lower than the 4Q14 EPS of $0.83.

Devon’s peers Anadarko Petroleum (APC) and Hess Corporation (HES) announced 4Q15 adjusted losses per share of $0.57 and $1.4, respectively. DVN’s other peers such as Apache (APA) are yet to release their 4Q15 earnings. APA’s 4Q15 loss per share estimate is ~$0.50. These companies make up ~7% of the Energy Select Sector SPDR Fund (XLE).

Devon’s 2015 earnings and revenue

For fiscal 2015, DVN reported adjusted earnings per share of $2.5. The comparable earnings in 2014 were $4.9 per share. DVN’s 2015 revenue came in at $13 billion. Comparable revenue in 2014 was $19.5 billion.

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