Devon Energy Posts Adjusted Core Earnings of $1.42 per Share in Third Quarter
Key Facts
Devon Energy reported adjusted core earnings of $1.42 per share in the third quarter of 2026, topping Zacks’ estimate of $1.24, according to Zacks. The figure compares with earnings of $1.04 per share in the same period a year earlier. Zacks’ measure adjusts earnings for nonrecurring items and therefore describes the company’s adjusted core profitability. The result comes as Devon reshapes its asset portfolio following an agreement to sell Eagle Ford assets and directs more capital to the Permian Basin. The company is scheduled to review its results on a call with analysts and investors on November 6.
For comparison with the previous quarter, Devon reported operating cash flow of $3.7 billion and adjusted free cash flow of $1.7 billion in the second quarter. That was the first period to include combined operating results after the company completed its merger with Coterra on May 7. The adjusted free cash flow figure excluded after-tax restructuring costs. These figures provide context on cash flows following the merger, while third-quarter earnings reflect an adjusted per-share figure. The company links its portfolio reshaping to using asset-sale proceeds for share repurchases and debt reduction.
On October 8, Devon announced a definitive agreement to sell its Eagle Ford assets to Crescent Energy for $4.2 billion in cash. The assets include approximately 90,000 net acres in Karnes, DeWitt and Gonzales counties in Texas, and account for about 4% of Devon’s total oil-equivalent production. Chief Executive Clay Gaspar said the sale followed a portfolio review, adding: "It enhances our focus on higher-return, longer-lived assets." He said the deal allows the company to accelerate share repurchases and strengthen its balance sheet. In a November 5 shareholder letter, Devon estimated net proceeds from the sale after taxes at about $3.5 billion.
Devon said it expects share repurchases to exceed $1 billion in the fourth quarter and increase further in 2027, with some proceeds from the Eagle Ford sale directed to that purpose. It also plans to repay an additional $1.5 billion of long-term debt during 2027, bringing it to a total debt target of $9 billion. In its capital allocation, the company aims to direct about 75% to the Permian Basin in 2027, up from about 63% in 2026. These plans reflect a greater focus on the Permian alongside debt reduction and returning money to shareholders. The stock closed at $42.88 on November 5, down $1.24, or 2.81%, from the previous close, according to company data.
Devon shares closed at $44.12 on November 4 before ending the November 5 session at $42.88, according to EL7 data. Company data for the latest session showed a daily decline of $1.24, or 2.81%. As for the next step, Devon scheduled its third-quarter earnings call for November 6 at 10 a.m. Central Time, or 11 a.m. Eastern Time. The company said the call would focus primarily on questions from analysts and investors. The call follows the shareholder letter published on November 5, which outlined plans for repurchases, debt repayment and capital allocation in 2027.