FINWIRES · TerminalLIVE
FINWIRES

Devon Energy Q1 Output Hits High End of Guidance; Firm Expands Gas Deals, Advances Merger Plans

By

-- Devon Energy (DVN) reported Q1 earnings Tuesday with oil production averaging 387,000 barrels of oil equivalent per day, accounting for 46% of total production and reaching the top end of guidance.

Total production averaged 833,000 boe/d for the quarter ended March 31, in line with guidance.

The upstream energy firm brought 110 operated wells online during the quarter, driven by a concentrated development program in the Delaware Basin.

The company expects Q2 oil production between 389,000 barrels per day and 395,000 b/d, while total production is projected between 851,000 boe/d and 868,000 boe/d.

Devon targets total capital spending of $875 million to $925 million in Q2.

The company is advancing its business optimization plan, targeting $1 billion in pre-tax cash flow improvements, driven by higher production and lower costs, Devon added.

Devon said it is expanding commercial opportunities with two long-term natural gas marketing agreements, including a 10-year deal to supply 50 million cubic feet per day to LNG export markets starting in 2028.

The firm also signed a separate seven-year agreement to deliver 65 MMcf/d for in-basin power generation starting the same year.

Devon is progressing its merger with Coterra Energy (CTRA), which is expected to create a combined company with over 1.6 million boe/d of production.

Related Articles

Research

Research Alert: Emerson Electric: Fq2 Eps Beats Despite Sales Growth Slowdown

CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:EMR delivered operating EPS growth of 4% Y/Y to $1.54, though underlying sales growth moderated to 0.5%, impacted by the U.S.-Iran conflict according to management. The beat was supported by share buyback activity. We see 5% underlying orders growth signaling a future recovery, with bookings centered in the high-margin Software & Systems business. Management expects Software segment profitability to enter modest recovery in 2H FY 26. The Software & Systems platform delivered 4% reported growth, with Test & Measurement achieving 16% reported growth, reflecting sustained demand in EMR's growth verticals including semiconductor and aerospace markets. Geographic performance revealed mixed fortunes, with Americas leading growth at 5% Y/Y, while Europe declined 4% and Asia/MEA fell 5%, reflecting broader geopolitical tensions. Adjusted segment EBITA margin compressed 40 bps Y/Y to 27.6% despite favorable mix shift toward higher-margin Software & Systems, with Software margins declining 250 bps to 29.2%.

$EMR
International

South Korea's Inflation Rises to 2.6% in April; Core Inflation Steady at 2.2%

$^KOSDAQ$^KS11
Asia

Regis Resources, Vault Minerals Merger of Equals Creates Meaningful Scale, Says Euroz Hartleys

Regis Resources (ASX:RRL) and Vault Minerals (ASX:VAU) proposed a merger of equals that would create a mid-tier gold producer of meaningful scale and a combined market capitalization of roughly AU$10.7 billion, Euroz Hartleys said in a note on Tuesday.Under the proposed deal, Vault shareholders will receive 0.6947 shares in Regis for each Vault share owned. Regis shareholders will own about 51% of the merged company and Vault shareholders the remaining 49%, as per a Tuesday joint filing with the Australian bourse.The merger, which will translate to over 700,000 ounces of gold production per year through five operating assets across Western Australia, benefits from a debt-free balance sheet, a robust and growing reserve and resource base, and potential operational synergies that could cut costs.The increased capitalization will also bolster liquidity, lower the cost of capital and support future growth and shareholder returns, it added.Euroz Hartleys maintained a buy rating for Vault and is reviewing a price target for the company.

$ASX:RRL$ASX:VAU