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What Can We Expect from Devon Energy’s 2Q16 Earnings?

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Jul. 25 2016, Published 3:14 p.m. ET

Devon Energy’s 2Q16 revenue estimates

Devon Energy (DVN) is set to report its 2Q16 earnings on August 2, 2016, after the market closes. For 2Q16, Wall Street analysts expect Devon Energy to report revenues of ~$2.3 billion, which is ~32% lower than the 2Q15 revenues of ~$3.4 billion. However, compared sequentially with 1Q16 revenues, Devon Energy’s 2Q16 revenue expectations are ~9% higher.

Due to the steep downward trend in energy prices, upstream companies Energen (EGN), WPX Energy (WPX), and Consol Energy (CNX) are expecting ~48%, ~47% and ~12% year-over-year declines in their 2Q16 revenues, respectively. The Energy Select Sector SPDR ETF (XLE) generally invests at least 95% of its total assets in oil and gas companies.

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Devon Energy’s 2Q16 earnings per share estimates

For 2Q16, Wall Street analysts expect Devon Energy to report earnings per share of -$0.20, which is $0.98 per share lower than the 2Q15 profit of $0.78 per share. However, when compared sequentially with 1Q16, Devon Energy’s 2Q16 earnings expectations are higher by $0.33 per share.

Devon Energy’s 2Q16 earnings estimates

For 2Q16, Wall Street analysts expect Devon Energy to report EBITDA (earnings before interest, tax, depreciation, and amortization) of ~$530 million, ~62% lower than the 2Q15 adjusted EBITDA of ~$1.4 billion. However, when compared sequentially with 1Q16 EBITDA, DVN’s 2Q16 EBITDA expectations are higher by ~71%.

In this series

In addition to analyzing Devon Energy’s 2Q16 earnings expectations, we’ll look at Devon Energy’s earnings trends, production guidance, what Wall Street analysts are saying about Devon Energy ahead of its earnings results, and how DVN’s stock price has reacted to past earnings results.

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