Oil and natural gas firm Devon Energy (DVN) has reported a third-quarter profit that beat Wall Street forecasts and raised its production targets.
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The Oklahoma-based company announced earnings per share of $1.10 for the quarter ended September 30, which topped analysts’ consensus estimate of $1.09. Devon Energy’s quarterly production totaled 728,000 barrels of oil equivalent per day (boepd), up 9.5% from a year earlier.
The company also raised its fourth quarter production forecast to a range of 811,000 to 830,000 boepd. News of the strong results come as the U.S. Energy Information Administration reports that total oil and gasoline consumption in the U.S. remains strong.
Grayson Mill Energy Acquisition
Devon Energy attributed its higher production forecast to its $5 billion acquisition of Grayson Mill Energy, the Williston Basin business it purchased from private equity firm EnCap in September of this year. Devon said that Grayson Mill should contribute 110,000 boepd to its production in the current fourth quarter.
DVN stock was trading flat in after hours action on news of its Q3 print. The share price has declined 11% so far in 2024.
Is DVN Stock a Buy?
The stock of Devon Energy has a consensus Moderate Buy rating among 18 Wall Street analysts. That rating is based on 11 Buy and seven Hold recommendations made in the last three months. There are no Sell ratings on the stock. The average DVN price target of $51.24 implies 30.25% upside from current levels.
