Devon Energy Rallied Nearly 15% in Q1 While the Nasdaq Had Its Worst Quarter Since the Bear Market

Here's a look astatine what fueled Devon's beardown first-quarter rally and whether it has the substance to proceed heading higher.

The archetypal 4th was a comparatively quiescent play for Devon Energy. The lone notable quality was the oil company's fourth-quarter net report, which came retired successful mid-February. In commenting connected the report, CEO Rick Muncrief stated: "I americium arrogant to study that Devon ended 2024 with exceptionally strong results. Our operational show was outstanding, underpinning robust fiscal outcomes and generating important escaped currency flow."

The institution produced a grounds 398,000 barrels of lipid per time during the period, a 3% summation from the anterior year. Meanwhile, full output averaged 848,000 barrels of lipid equivalent (BOE), a 16% increase. Devon benefited from its acquisition of Grayson Mill Energy and the beardown results from its Eagle Ford assets.

That accumulation maturation enabled Devon to nutrient robust currency flows. It generated $1.7 cardinal successful operating currency travel and $738 cardinal successful escaped currency flow. It returned $444 cardinal successful currency to shareholders done dividends and stock repurchases, retaining the remainder to fortify its equilibrium sheet.

Meanwhile, Devon provided investors with an adjacent much optimistic outlook for 2025 than its archetypal forecast. It expects accumulation to mean betwixt 805,000 and 825,000 BOE per day, a 2% summation from its anterior outlook. Devon anticipates delivering that higher accumulation contempt a astir 5% simplification successful its 2025 superior spending scope oregon $3.8 cardinal to $4 billion.

That operation of higher accumulation and little costs positions the institution to nutrient much escaped currency travel this twelvemonth if lipid prices cooperate. That was the lawsuit passim the archetypal quarter. The lipid marketplace was calm during the archetypal quarter, with crude prices ending the play fundamentally wherever they started. That means Devon should study beardown fiscal results for the archetypal quarter.

While the archetypal 4th was a quiescent play for crude oil, the 2nd 4th has been a precise antithetic story. Oil prices are down much than 10% implicit the past week implicit concerns astir however tariffs volition impact the economy. Devon Energy has already fixed backmost its first-quarter gains and past some.