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Devon Energy’s 2Q16 Cash Flow Estimates

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Devon Energy’s 2Q16 cash flow estimates

For 2Q16, Devon Energy (DVN) expects a cash flow of $0.83 per share, which is ~69% lower than the 2Q15 figure.

As seen in above chart, Devon Energy has reported lower cash flows since 3Q14, mainly due to lower realized crude oil (USO) and natural gas (UNG) prices. In 1Q15 and 3Q15, DVN’s cash flow increased due to deferred income tax benefits. In 1Q16, Devon Energy reported the lowest cash flow since 1999 of $0.31 per share. For 2Q16, Wall Street analysts expect Devon Energy to report positive free cash flow of ~$0.16 per share.

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Other upstream players

Due to the steep downward trend in energy prices, most S&P 500 (SPY) energy companies have reported lower year-over-year cash flows. Marathon Oil (MRO), WPX Energy (WPX), and Occidental Petroleum (OXY) reported cash flows of $0.10 per share, $0.06 per share, and $0.90 per share, respectively, in 1Q16.

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