Devon Energy Corporation DVN is scheduled to release first-quarter 2026 results on May 5, after market close. In the last reported quarter, the company delivered an earnings surprise of 1.23%.
Let’s discuss the factors that are likely to be reflected in the upcoming quarterly results.
Key Factors That May Have Influenced DVN’s Q1 Earnings
Devon Energy’s effective cost management has enabled it to maintain firm control over operating expenses. Solid cash flow generation has supported its share repurchase program, likely offering an added boost to quarterly earnings. The company’s U.S.-focused operations have reduced exposure to major geopolitical and regulatory risks, which may have supported its first-quarter performance.
To lower exposure to volatility in oil, natural gas liquids (NGL) and natural gas prices, the company is likely to have hedged its first-quarter 2026 production, helping provide greater stability to its earnings performance.
Devon Energy has been restructuring its NGL contracts to enhance price realizations while improving downstream oil realizations through greater access to export markets, which is expected to have impacted first-quarter earnings.
However, the company expects first-quarter 2026 production to decline by around 1%, or 10,000 barrels of oil equivalent per day (50% oil), due to the impact of severe winter weather.
Q1 Expectations for DVN
The Zacks Consensus Estimate for DVN’s revenues is pegged at $4.16 billion, indicating a decline of 6.6%.
The Zacks Consensus Estimate for earnings is pegged at $1 per share, which suggests a year-over-year decline of 17.4%.
Devon Energy expects its first-quarter production volume to be in the range of 823-843 thousand barrels of oil equivalents per day (Mboe/d). The Zacks Consensus Estimate for first-quarter production volume is pegged at 835.5 Mboe/d, which indicates year-over-year growth of 2.5%.
What Our Quantitative Model Predicts for DVN
Our proven model predicts an earnings beat for Devon Energy this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is the case here, as you will see below.
Devon Energy Corporation Price and EPS Surprise
Devon Energy Corporation price-eps-surprise | Devon Energy Corporation Quote
Earnings ESP: The company’s Earnings ESP is +3.23%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Currently, Devon Energy carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Other Stocks to Consider
Investors may consider the following players from the same industry, as these also have the right combination of elements to post an earnings beat this reporting cycle.
EOG Resources, Inc. EOG is slated to report its first-quarter 2026 results on May 5, after market close. It has an Earnings ESP of +7.62% and a Zacks Rank of 2 at present.
EOG’s long-term (three to five years) earnings growth rate is 5.44%. The Zacks Consensus Estimate for earnings stands at $3.05 per share, which implies a year-over-year increase of 6.3%.
APA Corporation APA is slated to report its first-quarter 2026 results on May 6, after market close. It has an Earnings ESP of +14.52% and a Zacks Rank of 2 at present.
The Zacks Consensus Estimate for earnings stands at 94 cents per share. The Zacks Consensus Estimate for sales is pegged at $2.11 billion.
Evolution Petroleum Corporation EPM is scheduled to report its third-quarter fiscal 2026 results on May 12, after market close. It has an Earnings ESP of +50.00% and a Zacks Rank of 2 at present.
The Zacks Consensus Estimate for sales is pegged at $23 million, which implies a year-over-year increase of 1.8%. The Zacks Consensus Estimate for earnings stands at 2 cents per share.
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Devon Energy Corporation (DVN): Free Stock Analysis Report
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Evolution Petroleum Corporation, Inc. (EPM): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).