uploads/2017/12/DVN.png

Key Factors That Drove Devon Energy’s Cash Flow Growth This Year

By

Updated

Devon Energy’s cash flow

Devon Energy’s (DVN) CFO (cash flow from operations) came in at ~$2.4 billion in the first nine months of 2017 (ended September 30), compared with ~$1.2 billion in the first nine months of 2016.

DVN’s 3Q17 cash flow from operations

DVN’s 3Q17 CFO came in at $776 million, compared with ~$727 million in 3Q16 and $810 million in 2Q17. The YoY (year-over-year) rise was due to the effect of commodity derivatives, with the sequential drop was primarily due to a drop in net income in 3Q17 compared with 2Q17.

DVN’s net income trends

DVN’s net profit in 3Q17 was $247 million, compared with its net profit of ~$1.01 billion in 3Q16. Its net profit in the first nine months 2017 came to ~$1.27 billion, compared with its net loss of ~$4.0 billion in the corresponding period of 2016.

Trends in DVN’s revenues

DVN’s revenues in the first nine months of 2017 came to ~$10 billion, compared with ~$8.9 billion during the same period of 2016. The improvement in DVN’s revenues was driven by the higher average realized price of $25.70 per barrel of oil equivalent, compared with the average realized price of $17.39 per barrel of oil equivalent in the corresponding period of 2016.

2017 net income drove cash flow

DVN’s CFO in the first nine months of 2017 was primarily due to higher net income. The company’s higher net income was driven by lower operating expenses in 2017 compared with 2016. In the first nine months of 2017, DVN’s total operating expenses came to $8.4 billion, compared with ~$12.4 billion in the first nine months of 2016.

In the next part, we’ll move on to Apache’s CFO comparison and discuss key drivers.

More From Market Realist