Devon Energy Q3 Earnings Preview: All eyes on impact of Grayson Mill purchase

Devon Energy (NYSE:DVN) is scheduled to announce Q3 earnings results on Tuesday, November 5th, after market close.

The company last generated better-than-expected Q2 adjusted earnings and raised its full-year oil production guidance after total production for the quarter rose well above its previous production.

Devon’s (DVN) core Delaware Basin operations remains a key catalyst, and TD Cowen also views its productivity improvements in the Bakken, supplemented by the Grayson Mill acquisition, as a driver for the upcoming quarterly results.

TD Cowen expects continued efficiency gains to keep down capex for Q3, although the inclusion of Grayson Mill will raise total expenditure for the year.

An analysis by Seeking Alpha contributor Steven Fiorillo also has a bullish outlook on the company, supported by its strong production performance, enhanced capital return program, including a $5B buyback, and the addition of significant assets with Grayson Mill.

The consensus EPS Estimate is $1.10 (-33.3% Y/Y) and the consensus Revenue Estimate is $3.55B (-7.6% Y/Y).

Over the last 2 years, DVN has beaten EPS estimates 75% of the time and has beaten revenue estimates 63% of the time.

Over the last 3 months, EPS estimates have seen 0 upward revisions and 20 downward. Revenue estimates have seen 0 upward revisions and 6 downward.