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Devon Energy

DVN Q1 2026 Earnings

Reported May 5, 2026 at 4:58 PM ET · SEC Source

Q1 26 EPS

$1.04

Q1 26 Revenue

$3.81B

MISS 3.05%

Est. $3.93B

vs S&P Since Q1 26

-14.4%

TRAILING MARKET

DVN -13.9% vs S&P +0.5%

Market Reaction

Did DVN Beat Earnings? Q1 2026 Results

Devon Energy Corp delivered a mixed first quarter for 2026, falling short of Wall Street expectations on both the top and bottom lines as weaker commodity prices weighed on results ahead of its transformative merger with Coterra Energy. Core earnings… Read more Devon Energy Corp delivered a mixed first quarter for 2026, falling short of Wall Street expectations on both the top and bottom lines as weaker commodity prices weighed on results ahead of its transformative merger with Coterra Energy. Core earnings came in at $1.04 per diluted share, missing the $1.10 consensus estimate by 5.26%, while revenue of $3.81 billion trailed the $3.93 billion forecast by 3.05% and dropped 13.0% from the year-ago period. The headline numbers were overshadowed by a $701 million mark-to-market loss on derivatives that dragged GAAP net income down to just $120 million, compared with $509 million in Q1 2025. Operationally, the picture was more encouraging: oil production of 387,000 barrels per day hit the top end of guidance, free cash flow reached $816 million, and capital spending came in 6% below plan. Raymond James recently upgraded Devon to Strong Buy, citing valuation upside and free cash flow strength, themes that figure to intensify as the company projects $1 billion in annual synergies from the Coterra combination, with full combined-entity guidance expected in mid-June.

Key Takeaways

  • • Oil production of 387,000 barrels per day reached top-end of guidance
  • • Capital investment of $848 million came in 6% below midpoint guidance due to effective cost management and timing of facility spend
  • • Business optimization plan on track to fully achieve $1 billion annual pre-tax free cash flow improvement target ahead of schedule
  • • 110 gross operated wells placed online with average lateral length of 10,500 feet
  • • Reinvestment rate improved to 60% from 67% in Q4 2025
  • • Total field-level cash margin of $27.78 per Boe, up from $21.93 per Boe in Q4 2025
  • • One-time current tax benefit of approximately $218 million related to One Big Beautiful Bill Act

DVN Forward Guidance & Outlook

On a standalone basis, Devon expects Q2 2026 production of 851,000 to 868,000 Boe per day (46% oil), with oil production of 389,000 to 395,000 barrels per day. Q2 capital spending is expected to be approximately $875 million to $925 million. The company is not providing full-year 2026 guidance at this time due to the expected closing of the Coterra merger; guidance for the combined entity will be provided in mid-June 2026. Following the merger close, Devon expects to declare a quarterly dividend of $0.315 per share and establish a new share repurchase authorization in excess of $5 billion, subject to Board approval. The company expects to fully achieve its $1 billion annual pre-tax free cash flow improvement target well ahead of schedule with the upcoming repayment of the $1 billion term loan. The combination with Coterra is expected to unlock $1.0 billion in sustainable annual pre-tax synergies, fully achieved by year-end 2027.

24/7 Wall St

DVN YoY Financials

Q1 2026 vs Q1 2025, source: SEC Filings

“Devon delivered another strong quarter in the first quarter of 2026, beating guidance across major value drivers, including oil production and capital. Our relentless focus on operational excellence and cost discipline continues to drive significant free cash flow and meaningful returns to shareholders. We are also on track to achieve a significant milestone with the full delivery of our $1 billion business optimization target well ahead of schedule, further strengthening our future margins and positioning Devon for long-term success as we head into the close of our transformative merger with Coterra.”

— Clay Gaspar, Q1 2026 Earnings Press Release

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