"Despite higher benchmark strip prices, continued production growth, cost savings and efficiency improvements, we expect 2016 earnings to be significantly below the 2015 level, which benefits from hedging gains," Oppenheimer analysts said.
The firm estimates that Devon Energy will face cash flow deficits of $0.9 billion this year and $1.9 billion next year, Oppenheimer noted.
Devon Energy is an independent energy company engaged in the exploration, development and production of oil, natural gas and natural gas liquids (NGLs) in the U.S. and Canada.
Shares of Devon Energy are up 0.08% to $62.51 in morning trading Wednesday.
Separately, TheStreet Ratings team rates DEVON ENERGY CORP as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:
"We rate DEVON ENERGY CORP (DVN) a HOLD. The primary factors that have impacted our rating are mixed some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its good cash flow from operations and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and a generally disappointing performance in the stock itself."