Devon Energy (DVN) Stock Gains on Earnings Beat, High Oil Production

Devon Energy (DVN) shares are higher after the company beat analysts' estimates for earnings and its own estimates for oil production in the third quarter.
By Lindsay Ingram ,

NEW YORK (TheStreet) -- Shares of Devon Energy (DVN) - Get Report were gaining 3.1% to $46.63 on Wednesday after the oil company beat analysts' estimates for earnings in the third quarter.

After the market closed on Tuesday, Devon Energy reported earnings of 76 cents a share for the third quarter, above analysts' estimates of 52 cents a share for the quarter. Revenue fell 32.6% year over year to $3.6 billion for the quarter, below analysts' estimates of $3.98 billion.

"Devon delivered another outstanding operational performance in the third quarter," President and CEO Dave Hager said in a statement. "Our strategy of operating in North America's best resource plays, coupled with a focus on delivering best-in-class execution, continues to generate top-tier results."

The company said it reached record oil production of 282,000 barrels of oil a day in the third quarter, a 31% increase from the year-ago quarter. The production total surpassed the company's guidance by 2,000 barrels a day, making it the fifth quarter the company exceeded its oil production forecast.

Devon raised its 2015 oil production forecast by 2% to a midpoint of 276,000 barrels a day due to its higher quarterly output. The company now expects 2015 oil production growth of 31% to 33% compared to 2014.

TheStreet Ratings team rates DEVON ENERGY CORP as a Sell with a ratings score of D+. TheStreet Ratings Team has this to say about their recommendation:

We rate DEVON ENERGY CORP (DVN) a SELL. This is driven by a number of negative factors, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, weak operating cash flow, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share.

You can view the full analysis from the report here: DVN

DVN data by YCharts

Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of Jim Cramer, TheStreet or any of its contributors.

Loading ...