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Devon Energy Corporation (DVN) is scheduled to report its Q2 2012 results on August 1, 2012, before market opens. The street expects EPS and revenue of $0.81 and $2.38B, respectively.

In this article I will recap the historical results of the company, its latest EPS estimates vs. surprises, the latest news from DVN and the news from its closest competitors.

Devon Energy Corporation Revenue and Net Income History

Recent EPS Actuals vs. Estimates

In the last quarter it reported $1.05 EPS, failing to meet analyst estimates of $1.43.

Devon Energy Corporation EPS Historical Results vs Estimates

The consensus EPS estimate is $0.81 based on 24 analysts' estimates, down from $1.71 a year ago. Revenue estimates are $2.38B, down from $3.22B a year ago. The median target price by analysts for the stock is $75.00.

Average recommendation: Overweight

Source: Marketwatch

Analyst Upgrades and Downgrades

  • On February 10, 2012, FBR Capital downgraded the company from Outperform to Mkt Perform.

Latest News

  • On June 6, 2012, Devon Energy Corporation announced that its board of directors declared a quarterly cash dividend on Devon's common stock for the third quarter of 2012. The dividend is payable on September 28, 2012 at a rate of $0.20 per share based on a record date of September 14, 2012.
  • On May 2, 2012, Devon Energy Corporation reported net earnings of $393 million for the quarter ended March 31, 2012, or $0.97 per common share ($0.97 per diluted share). This compares with first-quarter 2011 net earnings of $416 million, or $0.97 per common share ($0.97 per diluted share).
  • On March 7, 2012, Devon Energy Corporation announced that its Board Of Directors declared a quarterly cash dividend on the Company's common stock for the second quarter of 2012.
  • On February 15, 2012, Devon Energy Corporation announced that its Board of Directors has approved an approximate 18% increase to its quarterly cash dividend on Devon's common stock from $0.17 per share to $0.20 per share.

Competitors

Chesapeake Energy Corporation (CHK), Encana Corporation (ECA), EOG Resources (EOG), Linn Energy (LINE), and Southwestern Energy (SWN) are considered major competitors for Devon Energy Corporation and the table below provides the key metrics for these companies and the industry.

Devon Energy Corporation key ratio comparison with direct competitors

The chart below compares the stock price changes as a percentage for the selected companies for the last one year period.

DVN Chart

DVN data by YCharts

Competitors' Latest Development

  • On July 26, 2012, Linn Energy LLC announced that for fiscal 2012, it expects mid-point of adjusted EBITDA to be approximately $1.35 billion.
  • On July 25, 2012, Encana Corp announced that for fiscal 2013, it projects average daily liquids production to range from 60,000 bbls/d to 70,000 bbls/d, about 40% of which is expected to be comprised of light oil and field condensate.
  • On July 24, 2012, Linn Energy LLC announced a cash distribution for the second fiscal quarter of 2012 of $0.725 per unit, or $2.90 per unit on an annualized basis, for all of its outstanding units.
  • On July 3, 2012, Reuters reported that The U.S. Justice Department is probing Chesapeake Energy Corp and Encana Corp for possible collusion after a Reuters report showed that top executives of the two rivals plotted in 2010, to avoid bidding against each other in Michigan land deals, a source close to the probe said.
  • On July 2, 2012, Chesapeake Energy Corp announced that Global Infrastructure Partners (GIP) has closed the previously announced acquisition of all of Chesapeake's ownership interests in Chesapeake Midstream Partners LP for $2.0 billion, resulting in an anticipated pretax gain to Chesapeake of approximately $1.0 billion.
  • On June 25, 2012, Linn Energy LLC announced that it has signed a definitive purchase agreement to acquire properties in the Jonah Field, located in the Green River Basin of southwest Wyoming, from BP America Production Company for a contract price of $1.025 billion.
  • On June 25, 2012, LINN Energy, LLC announced that Linn Co, LLC (LinnCo), a wholly-owned subsidiary of LINN has filed a registration statement on Form S-1 with the U.S. Securities and Exchange Commission (SEC) relating to its proposed initial public offering of common shares.
  • On June 25, 2012, Attorneys with Allen Stewart, P.C. announced that a group of Pennsylvania landowners represented by the Dallas-based law firm have settled their claims against oil and gas giant Chesapeake Energy Corp for $1.6 million.
  • On June 21, 2012, Chesapeake Energy Corp announced that Archie W. Dunham, has been appointed by the Board as Chesapeake's new independent Non-Executive Chairman. Aubrey K. McClendon has relinquished the position of Chairman but remains a Director and will continue to serve as Chesapeake's Chief Executive Officer and as President.
  • On June 20, 2012, Zamansky & Associates, LLC announced the filing of a class action lawsuit under the Employee Retirement Income Security Act (ERISA) on behalf of all employee and former employee participants in the Chesapeake Energy Corp`s Savings and Incentive Stock Bonus Plan (Plan).
  • On June 19, 2012, Reuters reported that Chesapeake Energy Corp is eliminating about 70 jobs from its North Texas operations as the U.S. oil and gas producer seeks to fill funding gap. The cuts, primarily in areas such as public affairs and community relations, represent 8% of its workforce in the prolific Barnett Shale field.
  • On June 12, 2012, Chesapeake Energy Corp announced that its Board of Directors has declared a $0.0875 per share quarterly dividend that will be paid on July 31, 2012 to common shareholders of record on July 16, 2012.
  • On June 8, 2012, Chesapeake Midstream Partners LP (CHKM) announced that Global Infrastructure Partners has agreed to acquire all of Chesapeake Energy Corporation's ownership interest in CHKM for $2.0 billion.
  • On June 6, 2012, Reuters reported that Chesapeake Energy Corp is in late-stage talks to sell nearly all of its pipeline assets for over $4 billion to Global Infrastructure Partners (GIP), according to a person familiar with the matter, as the Company scrambles to close a $9 billion to $10 billion funding shortfall.
  • On June 6, 2012, Grant & Eisenhofer P.A. announced that it has filed a class action lawsuit asserting claims under the Securities Exchange Act of 1934 on behalf of those who purchased or otherwise acquired shares of Chesapeake Energy Corp. between and including April 30, 2009 and May 10, 2012.
  • On May 30, 2012, Reuters reported that Chesapeake Energy Corp seeking to sell around 57,000 acres of leaseholdings in East Texas, as the Company works to raise cash to meet an expected funding gap, according to a prospectus released by one of its advisers.
  • On May 26, 2012, Faruqi & Faruqi, LLP, a national securities law firm, announced that it is investigating potential securities fraud at Chesapeake Energy Corporation. Chesapeake CEO Aubrey K. McClendon (McClendon) currently owns roughly 1.35 million shares of Chesapeake stock (presently worth approximately $24 million).
  • On May 26, 2012, Reuters reported that Carl Icahn revealed he had bought a 7.6% stake in Chesapeake Energy Corp and called for the natural gas producer to replace at least four directors, saying the board has failed "in a dramatic fashion" in its oversight of management.
  • On May 25, 2012, Reuters reported that Carl Icahn has purchased a stake in Chesapeake Energy Corp, according to Bloomberg, which sourced the information to a person with knowledge of the matter.
  • On May 24, 2012, Reuters reported that Chesapeake Energy Corporation has put 504,000 acres in the DJ Basin in Wyoming and Colorado up for sale, as the U.S. energy company scrambles to raise cash to close a $9 billion to $10 billion funding shortfall.
  • On May 11, 2012, Pomerantz Haudek Grossman & Gross LLP announced that it has filed a securities class action the federal District Court in Oklahoma City on behalf of all persons who purchased Chesapeake Energy Corporation common stock between April 30, 2009 and April 17, 2012.
  • On May 3, 2012, Chesapeake Energy Corporation announced that the Company and its Chairman and CEO, Aubrey K. McClendon, have been notified by the Securities and Exchange Commission (SEC) that its Fort Worth Regional Office has commenced an informal inquiry and requested that the Company and Mr. McClendon retain certain documents.
  • On May 3, 2012, EOG Resources, Inc. announced that it has declared a dividend of $0.17 per share on EOG's Common Stock, payable July 31, 2012, to stockholders of record as of July 17, 2012.
  • On May 3, 2012, Southwestern Energy Company announced that it expects that its production for fiscal 2012 should range between approximately 560 Bcfe and 570 Bcfe.
  • On May 1, 2012, Chesapeake Energy Corporation announced that its Board of Directors has renegotiated the terms of the Company's Founder Well Participation Program with Chairman and Chief Executive Officer Aubrey K. McClendon to provide for the early termination of the FWPP on June 30, 2014, 18 months before the end of its current term on December 31, 2015.
  • On May 1, 2012, Law Firm Johnson & Weaver, LLP announced that it is investigating whether certain officers and directors of Chesapeake Energy Corp. breached their fiduciary duties and committed securities fraud.

Technical Overview


The stock has a market capitalization of $23.43B and is currently trading at $57.95 with a 52 week range of $50.74 - $80.25. The stock's year-to-date performance has been -5.94%. It is currently trading above 20 SMA, but below 50 and 200 SMA.

Sources: Yahoo Finance, Google Finance, Marketwatch, Finviz, Reuters.

Source: Earnings Preview: Devon Energy Corporation